Iraqi News Highlights Monday Afternoon 12-26-22
Iraqi News Highlights Monday Afternoon 12-26-22
Tlm724 Administrator Bondlady’s Corner
An Unprecedented Jump In Dollar Prices Confuses Local Markets And Unknown Processors
Posted On2022-12-26 By Sotaliraq Baghdad / Hussein Hatem Since the beginning of this December, the exchange rates of the dollar fluctuated mysteriously in the Iraqi Stock Exchange, but it jumped in an unprecedented way, yesterday evening, Sunday, recording 154,300 Iraqi dinars for 100 dollars, while the prices during the morning were 153,450 dinars for 100 dollars.
A member of the Parliamentary Finance Committee, Mueen Al-Kadhimi, said in an interview with (Al-Mada) that “Iraq has a balance of $ 100 billion in cash, in addition to gold, and we have no problem with the abundance of foreign currency,” stressing the need for “an economic policy for the state to confront the rise in dollar prices.” unjustified.”
Al-Kazemi added, "There are measures by the US Treasury Department to control the movement of the dollar through the window of selling the currency through the central bank to private banks."
And he continued, "The central bank was selling 200 million dollars a day to private banks under the pretext of buying goods from abroad, but what happens is that purchases do not exceed 40% only, while the rest is for financial speculation."
Al-Kazemi pointed out that “the government is obligated to deal with the rise in the price of the dollar, as it is the executive body,” noting that “Parliament is unable to deal with the rise in dollar prices, and the matter is in the hands of the government as it is the executive body by monitoring merchants and private banks.”
He pointed out, "The solution cannot be through reducing exchange only, but rather by encouraging the national industry, and there must be an industrial renaissance through the Youth Employment Law through small projects, for which the Central Bank allocated 6 trillion dinars."
He explained, “There are efforts being made to maintain the price of the dollar below 1,500 dinars,” considering that “returning it to its previous price requires a deliberate political and economic aspect to reduce the price because the rise harms the citizen and confuses the market.”
Al-Kazemi pointed out that "there is an exploitation of the high exchange rates by some merchants," calling on the Ministry of Commerce to "open credits for importers, and provide foodstuffs at the prices of imported goods."
In turn, the financial and economic advisor to the Prime Minister, Mazhar Muhammad Salih, says, “The government is seeking its relentless measures to protect economic stability, at a time when official reserves are enjoying their highest historical levels, which are approaching $100 billion, which is at the same time the highest reserve in Iraq’s financial history.” ".
Saleh explained, "The international financial system took another turn by imposing compliance controls and controlling the movement of funds in the United States dollar currency when conducting external transfer transactions, for many reasons that may have been imposed by the raging war in Ukraine and other international conflicts in the Middle East."
And he continued, “Despite that, there is no fear for Iraq’s financial capacity, as there are two ways to work according to it, the most important of which is improving reporting data and adopting extreme accuracy in private sector trade financing activities on the part of private banks constantly so that they are not rejected by the international platform for compliance, which requires The banking system itself has the utmost care and accuracy in including data on demand for foreign currency when making foreign transfers.
Saleh stressed that "the monetary authority is working hard to stabilize the exchange rate by granting advantages to external transfer requests that are made through the traditional means approved for financing foreign trade, foremost of which is the assignment of financing applications through documentary credits in international trade and other flexible means that it seeks to introduce to facilitate international exchange." LINK
“The Sleeping Wool Shelf” Pushes The Price Of The Dollar In Iraq To About 160,000 Dinars
Posted On2022-12-26 By Sotaliraq On Sunday, a member of the Iraqi Parliament, Alia Nassif, commented on the dinar’s decline against the US dollar, to 154 thousand, while she indicated that “shelf wool” is behind the exchange rate crisis.
And Nassif wrote, in a tweet she posted on her personal account via Twitter, on the occasion of the rise of the dollar to 154 thousand dinars and its direction towards 160, we say, “Sleeping, Sharif Al-Sawf, and the dollar is suffocating your people.”
And she explained, “(Sherif Al-Sawf) here is not a person, but rather a system that deserves to be cursed for its corruption, which starts with the owners of the idea of the exchange rate and ends with those who oppose its return to 120,000.”
And Nassif continued by saying: “I will see experts speaking about economic theories. Dad, we know your words. We have heard about economic theories at the hands of economics professors.”
For his part, Representative Mustafa Sanad said, “The reason for the rise of the dollar is to stop transferring Iraq’s entitlements from dollars by the US federal government, for the purpose of political blackmail and understanding.”
The financial and economic advisor to the Prime Minister, Mazhar Muhammad Salih, had attributed, earlier today, Sunday, the continued rise in the price of the dollar against the Iraqi dinar to several external factors, while confirming the government's endeavor to control the exchange rate and achieve its stability in the market.
And the local markets in Iraq recorded a remarkable increase in the exchange rates of the US dollar against the Iraqi dinar, reaching its peak today, Sunday, when the price of one dollar reached 1540 dinars. LINK
Dollar Prices In Iraq.. “A Single Obstacle” On The Way Back, And Warnings Of “Terrifying Numbers”
Posted On2022-12-26 By Sotaliraq About a month ago, the exchange rates of the dollar against the Iraqi dinar began to rise, which was reflected in market prices in general, as the prices of foodstuffs, medicines, and other materials of various kinds rose, which sparked a state of discontent among citizens, and in what the deputies confirm their determination to reduce the exchange rate and continue to demand this. Trend, economists warn of an increase in the exchange rate to “alarming” figures during the coming period, due to manipulation of Iraqi monetary policy.
Citizen Abu Hussein says, “The markets are witnessing an unprecedented rise in the levels of prices of food commodities and clothing after the rise in the exchange rates of the dollar.” He calls, during his speech, “the Sudanese government to reduce the exchange rate, to serve the poor citizen,” noting that “the stability of the country depends on the stability of the economic situation, and vice versa. ".
The government of Muhammad Shia’ al-Sudani and prominent leaders in the “Coordination Framework” coalition to which he belongs promised, with the beginning of granting confidence to the government, a tendency to raise the value of the dinar against the dollar, blaming the previous government of Mustafa Al-Kazemi for reducing its value due to “mismanagement” and what they called “special agendas.” ".
However, what happened seemed to be the opposite, especially with successive jumps in the exchange rate of the dollar, which reached the equivalent of 153 dinars against one dollar, after it was equivalent to about 147 dinars or less.
And the government considered that the rise was “temporary,” holding the Central Bank responsible, and Al-Sudani’s office said in a statement, “The government affirms its commitment to maintaining the stability of the local market, by supporting the stability of the dollar exchange rate against the Iraqi dinar, and it supports the steps of the Central Bank in this regard.”
And he indicated that “the rise in the exchange rate is temporary, and it is the result of changing the mechanism by which the window for selling foreign currency in the Central Bank operates, and we assure all citizens that the financial situation of Iraq is in its best condition.”
"lone hurdle"
Aref al-Hamami, a representative of the State of Law coalition, confirms that “the state of law is with a reduction in the exchange rate of the dollar, and we are continuing to demand a reduction in it, and more than 100 signatures were collected before the legislative recess for this purpose, and the state of law was among the signatories, and we hope to reduce it, because It affects the poor and middle class.
Al-Hamami indicated in an interview that “it is government policy that delays the proceeding with lowering the rate, and that the only current obstacle is the central bank, and in the event of pressures, it will be reduced, as in the past when the central bank wanted to raise the exchange rate, but it did not obtain support from either the government or From the political blocs, until it was voted on in the House of Representatives, at which time the Central Bank was able to raise the price.
The Central Bank had commented on the high exchange rate, saying that Iraq is still complying with international requirements on the issue of the dollar, combating money laundering, and terrorist financing, and that some banks took time to implement these requests, stressing that it is working to return it to its price. , Within two weeks.
Height fears
The economist, Ahmed Fouad, says, “The problem of the US dollar began about a month ago, due to the Central Bank’s reduction in its sales of dollars, in order to audit some transactions and some of its clients from banks and exchange and remittance companies, after the Central Bank suspected that some of the money was being used for laundering.” And also in bank transfers outside Iraq, for the purpose of transferring hard currency only.
Fouad added during his speech, “Therefore, the amounts sold in the currency auction and transactions with existing companies and banks were reduced, in order to control this process, which led to the problem of increasing prices in the exchange of the dollar,” noting that “banking companies and financial dealers in Iraq raised the value of the dollar sold in Iraq's black markets, in Al-Harithiya and Al-Kifah, and this led to the exchange rate reaching 153 thousand dollars for every 100 dollars.
And he continues, “But the fears now are that the exchange rate will increase in the coming months to more than these numbers, and there are alarming numbers with an increase of two thousand dinars or more due to the lack of control of the government and the central bank over the currency auction, and also the endeavor of some external parties economically to raise the value of the US dollar in order to internal and external gains.
And the economist, at the end of his speech, suggests that “prices will decrease after the New Year’s holiday, in the event that the central bank increases its sales, and works through some mechanisms to reduce the price of the dollar immediately in the Iraqi market, but as long as the price of the dollar has been raised and lowered, it is certain that the price will not remain.” low, but the problem will repeat itself every period, and it is possible for prices to jump to what is not worthy of its consequences during the coming period, due to manipulation of Iraqi monetary policy. LINK
Because Of The Dollar.. Parliamentary Warnings Against Repeating The Lebanese And Iranian Scenarios In Iraq
political| 04:28 - 12/26/2022 Baghdad - Mawazine News, MP Ibtisam Al-Hilali warned, on Monday, the Iraqi government and the Central Bank of the collapse of the Iraqi dinar and the rise in the exchange rate of the dollar to more than 160,000 dinars, while indicating that the collapse of the currency may push Iraq to be similar to the economic situation in the Republic of Iran and Lebanon.
Al-Hilali said in a statement, which Mawazine News received a copy of, that "the exchange rate of $100 in the market exceeded 157 thousand dinars, and it is constantly increasing and may reach at the end of the week or on New Year's Eve to 165 thousand dinars, and this increase directly affected citizens." by the rise in food prices.
And she added, "Some private banks and merchants, with the support of some political parties, smuggle foreign currency abroad through unofficial outlets after buying the currency at the official price from the currency sale outlet in the Central Bank of Iraq, and this is a major reason for the high exchange rate of the dollar against the Iraqi dinar." .
And Al-Hilali continued, “Prime Minister Muhammad Shia’a Al-Sudani is required today to hold an urgent meeting of the Council of Ministers for the economy to discuss the exchange rate and the collapse of the Iraqi dinar, control the window for buying and selling foreign currency, and take strict measures against banks and electronic outlets to restore the exchange rate to the official price.”
And Al-Hilali indicated, "There are fears of the continued collapse of the Iraqi dinar and a continuous rise in the exchange rate of the dollar, exceeding 165,000 dinars on New Year's Eve, and that the economic situation in Iraq will be similar to the countries of Iran and Lebanon." Ended 29 / H
https://www.mawazin.net/Details.aspx?jimare=215182
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