Iraqi News Highlights Friday Afternoon 8-4-23
Iraqi News Highlights Friday Afternoon 8-4-23
Tlm724 Administrator Bondlady’s Corner
Central Bank: New decisions will be issued next week that may contribute to lowering the exchange rate
Thursday 03 August 2023 21:43 | Economical Number of readings: 752 Baghdad / NINA / - Today, Thursday, the Central Bank identified three categories of exchange companies for selling the dollar to travelers, and while revealing a proposal regarding the entry of imported goods through the border crossings, it indicated that there are new decisions that will be issued next week that may contribute to reducing the price of the dollar.
Deputy Governor Ammar Hamad Khalaf said to the official agency: “The central bank provides exchange companies with weekly quotas of dollars for the purpose of selling them to travelers at the official price and in limited quantities of 3 thousand dollars per traveler,” indicating, “These exchange companies are licensed through the central bank according to controls, which are in compliance with the Anti-Money Laundering Law.
He added, "One of the basic tasks of all exchange companies A, B, and mediation C is to provide dollars to travelers at the official rate and in the quantity specified by the Central Bank," noting, "There is an electronic platform that the Central Bank has been working on developing since the beginning of this year, and all dollar sales to citizens are done." Through this platform that is closely monitored by the Central Bank.
And he stated, “The Central Bank finances the market in dollars through this platform for categories of merchants and small traders and through exchange companies for travelers only,” pointing out, “Banks finance bonds of the private sector and the government sector through remittances and bond credits, and some of them sell cash dollars as the banks of Mesopotamia.” And Al-Rasheed through its outlets at airports, while exchange companies are specialized only in the process of selling dollars to travelers.
And he stated, “The Central Bank submitted a proposal to the ports and customs, which is that any goods entering Iraq must ensure that the merchant financed these imports through the Central Bank of Iraq,” pointing out, “The printing of the Iraqi currency will not be random.”
Regarding the increase in the monetary mass, Khalaf stressed that "the process of increasing the monetary mass is directly linked to the process of increasing the foreign reserves owned by the Central Bank, so any financing for the public treasury is through the exchange of dollars obtained from oil sales with dinars, and therefore any increase in the dinar mass comes mainly from foreign currency." ".
He stated, "There is no fear of any increase in the monetary mass."
And on the exchange rate, between Khalaf, "The Central Bank issued several decisions related to the banking sector," explaining that "other decisions will be issued next week, which may contribute significantly to reducing the exchange rate of the dollar."
https://ninanews.com/Website/News/Details?key=1068741
The Central Bank Launches A Package Of Measures That Will Reduce The Price Of The Dollar Next Week
Iraq Thursday, August 3, 2023 Baghdad / The National News Center Today, Thursday, the Central Bank identified three categories of exchange companies for selling the dollar to travelers, and while revealing a proposal regarding the entry of imported goods through the border crossings, it indicated that there are new decisions that will be issued next week that may contribute to reducing the price of the dollar.
Deputy Governor Ammar Hamad Khalaf said in a televised statement, followed by the National News Center, that “the central bank provides exchange companies with weekly quotas of dollars for the purpose of selling them to travelers at the official price and in limited quantities of 3 thousand dollars per traveler,” noting that “these exchange companies It is licensed by the Central Bank in accordance with controls and is in compliance with the Anti-Money Laundering Law.”
He added, “One of the basic tasks of all exchange companies A, B, and mediation C is to provide dollars to travelers at the official rate and in the quantity specified by the Central Bank.” Through this platform that is closely monitored by the Central Bank.
And he stated, “The Central Bank finances the market in dollars through this platform for categories of merchants and small traders and through exchange companies for travelers only,” pointing out, “Banks finance bonds of the private sector and the government sector through remittances and bond credits, and some of them sell cash dollars as the banks of Rafidain.” And Al-Rasheed through its outlets at airports, while exchange companies are specialized only in the process of selling dollars to travelers.
And he stated, “The Central Bank submitted a proposal to the ports and customs, which is that any goods entering Iraq must ensure that the merchant financed these imports through the Central Bank of Iraq,” pointing out, “The printing of the Iraqi currency will not be random.”
Regarding the increase in the monetary mass, Khalaf stressed that “the process of increasing the monetary mass is directly linked to the process of increasing the foreign reserves owned by the Central Bank, so any financing for the public treasury is through the exchange of dollars obtained from oil sales with dinars, and therefore any increase in the dinar mass comes mainly from foreign currency.” ".
And he stated, “There is no fear of any increase in the monetary mass.”
And on the exchange rate, Khalaf indicated that “the Central Bank issued several decisions related to the banking sector,” explaining that “other decisions will be issued next week, which may contribute significantly to reducing the exchange rate of the dollar.” https://nnciraq.com/219972/
The Iraqi Central Bank Issues Several Decisions Regarding Dollar Transfers And The Exchange Rate
Economy | 03/08/2023 Baghdad - Mawazine News The Central Bank of Iraq issued, on Thursday, a new statement regarding dealing in dollars and the exchange rate, while it issued several decisions.
The bank stated, in a statement that Mawazine News received a copy of, that “following up on the recent developments in the local markets, especially with regard to trading an unofficial exchange rate in platforms, daily transactions, and its unreal and artificial fluctuations, requires us to clarify the basic facts related to foreign currency trading (the dollar). American) in the local markets, and the role of the Central Bank of Iraq in providing foreign currency through its official sources, which included all transactions permitted by law, and preventing other illegal transactions, and the need for all relevant parties to unite and cooperate in order to achieve the main general goals, including the stability of the exchange rate In the presence of sufficient foreign reserves to meet the legitimate needs of citizens, merchants and investors in foreign currency.
He added, "The source of the US dollar circulating in the local markets is the Central Bank of Iraq, which offers it through banks and exchange and mediation companies, at the official rate set (1320) dinars for one dollar.
Accordingly, what is called the "parallel market" has no reality, as it is called That description is when the market has its own sources of foreign currency, through private sector exports, local tourism, remittances of residents abroad, etc. As is the case in other countries, and then the role of the central bank is to work to achieve balance in the exchange rate, so it is a seller or buyer of the currency foreign market.
He continued, "In Iraq, the main source of foreign currency is the central bank, and based on that, the exchange market in which the dollar is traded is a speculative market in a currency with a fixed price and purposes. The competent authorities should stop platforms and websites that announce exchange rates for a fixed-price currency, which the Central Bank of Iraq is obligated to trade at its prescribed price, as long as it is its only source.
He pointed out that "to achieve the goal of controlling the movement of money and foreign trade, and in implementation of the law against money laundering and financing of terrorism, and to enhance the application of international standards, the new system is based on the implementation of all foreign transfers and documentary credits through the electronic platform, in which all operations are pre-checked from all aspects."
All, and verifying the final beneficiary, which protects the banking sector, non-bank financial institutions and all parties to these operations from the risks they face locally and internationally, and the electronic platform allows all legitimate transfers to be made without limits or restrictions, and the Central Bank does not set ceilings for banks authorized to conduct the transfer, but This depends on the bank's ability to attract customers, the correctness and accuracy of operations, and the number of its accredited correspondents abroad.
He stressed that "the implementation of personal transfers abroad, such as wages for studies, treatment, purchase of personal needs, remittances of residents, pensions for residents abroad and others, through international money transfer companies, such as" Western Union and Money Gram ", and citizens are also allowed to use electronic payment cards to be used in the purchase of goods. And services abroad, and all those operations and others are covered by the central bank at the official established exchange rate.
He pointed out that "providing cash dollars to travelers at the official rate set, through banks and exchange and mediation companies, and these operations are carried out through an electronic platform to verify the integrity of operations, and the validity of the use of those amounts for traveling citizens. This platform is currently being developed to tighten verification procedures and limit its use for the specific purpose." and at the prescribed price.
He explained that "the aforementioned system, with its three dimensions, limits any practices that would expose Iraq and its banking sector and financial institutions to risks, and by providing these channels and opening them for legitimate purposes, it makes dealing in dollars outside it an illegal practice subject to legal accountability towards the parties involved in its practice, as it is not entitled For any party or person to trade in dollars issued by the Central Bank, and it sets a price, channels, limits, and purposes for its use, and its circulation and trading in it outside the licensed authorities is considered a prohibited activity according to the law, as the Banking Law No. (94) of 2004 stipulates in Article (3) that it is not entitled Any person may engage in the business of receiving deposits, or other funds payable by the public, without obtaining a license or permit issued by the Central Bank of Iraq.
He stressed that "the application of the system of foreign transfers, documentary credits, and cash sale of foreign currency involves achieving economic, control and legal goals, including the following:
- Strengthening measures to combat money laundering and terrorist financing, and warding off the risks of local and international sanctions on all relevant parties.
" Channels that ensure the integrity and transparency of operations, and the provision of databases and important information for the purposes of planning, regulation and control.-
Achieving additional revenues for the state by subjecting all imports to procedures for comprehensive registration of their details, and the resulting fees.-
Gaining the trust of accredited international banks, which expands the network of relations between the banking sector Domestic and foreign, and increasing the number of Iraqi bank correspondents.
- Closing the outlets for illegal foreign transfers, besieging the proceeds of crime and corruption, and preventing them from finding a way to escape abroad.
Not charging imported goods the exchange rate difference resulting from paying a higher price when buying them at the unofficial price on the black market, which leads to higher prices and a negative impact on the purchasing power of citizens.
And he continued, "The groups that buy dollars from the market and cause an opportunity for speculators and beneficiaries to trade in an unofficial exchange rate are:
- importers of merchants who do not follow the fundamental methods of external transfers (remittances and documentary credits) via the electronic platform, which is available to them at the official rate, Through attempts to collect cash dollars exclusively for citizens’ travel from the market, or by using electronic payment cards intended to pay citizens’ purchases and expenses abroad, or for personal transfers for legitimate purposes.
- Importers of prohibited or narcotic substances such as drug dealers and others, or of materials that do not pass through the official border crossings, to escape the requirements of the law or customs, such as importers of cigarettes and some importers of precision instruments, so they go to the market to buy dollars that are not allocated to them to pay their bills.
- The category that generates revenues from the proceeds of crimes, such as bribes, thefts, kidnapping, extortion, selling contraband, etc., and they transfer them abroad to hide them.
- Citizens who pay for their purchases of goods and services inside Iraq in dollars, which prompts them to buy dollars from the market, and since there is no allocation from the central bank’s sales of dollars for this purpose, then their purchase is from a share allocated for other purposes, especially travel.
And he indicated that "to address the aforementioned phenomena, and reduce the phenomenon of the illegal market, and an exchange rate higher than the prescribed one, work is being done with the government and the relevant authorities to take the following measures:
Merchants and importers use the prescribed channel for that, via the electronic platform, to achieve the objectives of this system and prevent the use of cash dollars in the market for other than its purposes, and this requires obligating this category to provide evidence that the amount of their imports has been duly transferred when their goods enter Iraq at the official border crossings.
- Motivating and supporting categories of merchants to enter the electronic platform by simplifying procedures, especially tax ones, and defining their ceilings in advance according to categories, and depositing them in the account of the General Tax Authority through its bank accounts.
- Tightening control over the official border crossings and closing the unofficial crossings, and coordination between the federal government and the regional government regarding organizing and unifying the entry procedures for goods and the fees imposed on them, and preventing the entry of prohibited and legally prohibited materials.
- The competent authorities will strictly implement Cabinet Resolution No. (23026) for the year 2023, which includes limiting the sale and purchase of goods and services in Iraqi dinars inside Iraq.
He called on the Central Bank to “provide official, popular and media national support in implementing the aforementioned, to achieve the aforementioned goals, in a manner that preserves the safety and health of the movement of money and foreign trade, and staves off risks for the country, its banking sector and financial institutions, by adhering to the rules of the Anti-Money Laundering and Terrorist Financing Law.” , and relevant international standards and practices.” Ended 29/h
https://www.mawazin.net/Details.aspx?jimare=232625
The Central Bank Issues A Statement Regarding Dealing In Dollars And The Exchange Rate
The Central Bank issued a new statement regarding dealing in dollars and the exchange rate, while calling on the competent authorities to stop platforms and websites that announce currency exchange rates.
A central bank statement stated, “Following up on the recent developments in the local markets, especially with regard to trading an unofficial exchange rate in platforms and daily transactions and its unreal and artificial fluctuations, requires us to clarify the basic facts related to the trading of foreign currency (the US dollar) in the local markets, and the role of foreign exchange.”
The Central Bank of Iraq in providing foreign currency through its official sources, which included all legally permitted transactions, and preventing other illegal transactions.
He stressed "the need for all relevant parties to unite and cooperate in order to achieve the main general goals, including the stability of the exchange rate in light of the presence of sufficient foreign reserves to meet the legitimate needs of citizens, merchants and investors in foreign currency,"
noting that "the source of the US dollar circulating in the local markets It is the Central Bank of Iraq, which offers it through banks, exchange and mediation companies, at the established official price (1320) dinars for one dollar, and accordingly, what is called (the parallel market) has no reality.
And he continued, “As this description is given when the market has its own sources of foreign currency, through private sector exports, local tourism, remittances from residents abroad and others, as is the case in other countries, and then the role of the central bank is to work to achieve balance in the exchange rate, So he is a seller or buyer of foreign currency in the market, while in Iraq, the main source of foreign currency is the central bank,”
pointing out that “the exchange market in which the dollar is traded is a speculative market in a currency with a fixed price and purposes, and it is illegal trading, and it cannot be legitimized.” , or announcing exchange rates fabricated by speculators, and the competent authorities should stop platforms and websites that announce exchange rates for a fixed-price currency, obligating the Central Bank of Iraq to trade it at its established price, as long as it is its only source.
And he stated, “In order to achieve the goal of controlling the movement of funds and foreign trade, and in implementation of the law against money laundering and financing of terrorism, and in order to enhance the application of international standards, the new system is based on the implementation of all foreign transfers and documentary credits through the electronic platform, in which all operations are pre-checked from all aspects.”
All, and verifying the final beneficiary, which protects the banking sector, non-bank financial institutions and all parties to those operations from the risks they face locally and internationally,” explaining that “the electronic platform allows all legitimate transfers to be made without limits or restrictions, and the Central Bank does not set ceilings for licensed banks.”
In fact, it depends on the bank's ability to attract customers, the correctness and accuracy of operations, and the number of its accredited correspondents abroad.
And he indicated that "the implementation of personal transfers abroad, such as wages for studies, treatment, purchase of personal needs, remittances of residents, pensions for residents abroad and others, through international money transfer companies, such as (Western Union and Money Gram), and citizens are also allowed to use electronic payment cards to be used to purchase goods." And services abroad, and all those operations and others are covered by the Central Bank at the official established exchange rate.
And he stated, “Providing cash dollars for travelers at the official rate set, will be through banks, exchange and mediation companies, and these operations are carried out through an electronic platform to verify the safety of operations, and the correct use of those amounts for traveling citizens, and that platform is currently being developed to tighten verification procedures and limit its use for the purpose.” specified and at the prescribed price.
He pointed out, "The electronic platform will limit any practices that would expose Iraq and its banking sector and financial institutions to risks, and by providing these channels and opening them for legitimate purposes, it makes dealing in dollars outside it an illegal practice subject to legal accountability towards the parties involved in its practice, as no one has the right to A party or person trading in dollars issued by the Central Bank, and its circulation and trading outside the licensed authorities is a prohibited activity according to the law.
The statement noted, “Banking Law No. (94) of 2004 in Article (3) stipulates that no person has the right to engage in the business of receiving deposits, or other funds payable from the public, without obtaining a license or permit issued by the Central Bank.” Al-Iraqi," pointing out that "the application of the system of foreign transfers, documentary credits, and cash sale of foreign currency involves achieving economic, control and legal goals, including strengthening anti-money laundering and terrorist financing measures, staving off the risks of local and international sanctions on all relevant parties, and introducing Iraq's imports within channels." It ensures the safety and transparency of operations, and provides important databases and information for planning, organizing and control purposes, as well as generating additional revenues for the state by subjecting all imports to comprehensive registration procedures for their details, and the resulting fees.”
And he continued, "The system will work to gain the confidence of accredited international banks, which will expand the network of relations between the local and foreign banking sector, and increase the number of Iraqi bank correspondents, in addition to closing illegal external transfer outlets, besieging the proceeds of crime and corruption, and preventing them from finding a way to escape abroad."
In addition to not charging imported goods the exchange rate difference resulting from paying a higher price when buying it at the unofficial price on the black market, which leads to higher prices and a negative impact on the purchasing power of citizens.
He pointed out, "The groups that buy the dollar from the market and cause an opportunity for speculators and beneficiaries to trade an unofficial exchange rate are the importers of merchants who do not follow the fundamental methods in external transfers (remittances and documentary credits) via the electronic platform, which is available to them at the official price." Through attempts to collect cash dollars that are exclusively allocated for the travel of citizens from the market, or by using electronic payment cards designated to pay the purchases and expenses of citizens abroad, or for personal transfers for legitimate purposes,
n addition to importers of prohibited or narcotic substances such as drug dealers and others, or for materials that do not pass through the official border crossings To escape the requirements of the law or customs, such as importers of cigarettes and some importers of precision equipment, they go to the market to buy dollars that are not allocated to them to pay their bills, in addition to the category that generates returns from the proceeds of crimes, such as bribes, thefts, kidnapping, extortion, selling contraband, and others.
And they tend to transfer it abroad to hide it, just as the citizens who pay for their purchases of goods and services inside Iraq are in dollars, which drives them to buy dollars from the market, and since there is no allocation from the central bank’s sales of dollars for this purpose, then their purchase is from a share allocated for other purposes, nor Especially travel."
He pointed out, "In order to address the aforementioned phenomena, and to reduce the phenomenon of the illegal market, and an exchange rate higher than the prescribed one, work is being done with the government and the relevant authorities to take the following measures, which is the use of merchants and importers of the channel established for that, through the electronic platform, to achieve the objectives of this The system and preventing the use of cash dollars in the market for other than its purposes, and this requires obligating this category to provide evidence that the amount of their imports has been duly transferred when their goods enter Iraq at the official border crossings,
and motivating and supporting categories of merchants to enter the electronic platform by simplifying procedures, especially tax ones, Determining their ceilings in advance according to categories, and depositing them in the account of the General Tax Authority through its bank accounts, as well as tightening control over the official border crossings and closing unofficial ones, and coordination between the federal government and the regional government regarding organizing and unifying the procedures for entry of goods and the fees imposed on them,And prevent the entry of prohibited and prohibited materials by law.
And he stressed "the need for the competent authorities to strictly implement Cabinet Resolution No. (23026) for the year 2023, which includes limiting the sale and purchase of goods and services in Iraqi dinars inside Iraq," calling for "providing official, popular, and media national support in implementing the aforementioned, to achieve the aforementioned goals." To it, in a way that preserves the safety and soundness of the movement of money and foreign trade, and wards off risks from the country, its banking sector, and its financial institutions, by adhering to the rules of the Anti-Money Laundering and Terrorist Financing Law, and the relevant international standards and practices.
https://www.radionawa.com/all-detail.aspx?jimare=35298
To read more current and reliable Iraqi news please visit BondLady’s Corner: