Iraq Economic News and Points To Ponder Tuesday Evening 7-16-24
To Rein In The Dollar...The Central Bank “Confuses” Dinar Accounts
July 16, 2024 Baghdad/Iraq Observer The exchange rates of the dollar against the dinar rose today, Tuesday, on the main stock exchange in the capital, Baghdad.
Dollar prices on the Kifah and Harithiya stock exchanges recorded 149,000 dinars for every 100 dollars.
Prices in exchange shops in Baghdad markets also witnessed an increase, as the selling price reached 150,250 dinars, while the purchasing price reached 148,250 dinars for every 100 dollars.
In turn, the Central Bank of Iraq announced a new mechanism for travelers to receive foreign currency “dollars,” which will be exclusively through corporate and bank outlets at international airports, stressing that the goal of the new mechanism that will come into effect on July 14 is for the dollar to reach the real traveler.
The bank stated: “It facilitates proper transactions, as well as facilitating travelers’ access to the dollar faster.”
More Than One Share
It is noteworthy that the Central Bank allowed exchange companies to receive more than one share during the week in order to fully respond to travelers’ requests.
In turn, economists commented on the Central Bank’s decision by saying:
“The Central Bank’s announcement of stopping remittances using the Chinese currency and using the dollar, in addition to the continuing demand to deal with Iran in the dollar, and
this matter will lead to great momentum on the dollar.”
While they warned against linking the dollar to Baghdad International Airport, because it will exacerbate the rise of the dollar, and we will witness confusion in the local markets that are suffering from stagnation at the present time.
They pointed out that the rise in the dollar exchange rates remains dependent on the behavior of the Central Bank and the extent of its responses to it, and the
recent rise of the dollar came after the decision of the Central Bank of Iraq to transfer the operations of travelers obtaining the dollar exclusively through Baghdad Airport. According to a report,
“Airports are not prepared to receive this large number of companies;
There are many companies that sell the dollar, and if they are limited to only 6 offices,
it will be useless and the citizen will not be able to obtain the dollar, and previous experiences confirm this.
Where Is The Central Bank Spokesman?
Observers were surprised by the lack of an official spokesman despite his presence in all state ministries.
This is one of the problems with the Central Bank, which announced the procedures and results of the visits conducted by the governor to Washington.
All statements are confusing and confused due to the lack of accuracy and correct official information.”
In this context, the Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Saleh, confirms:
“The exchange rate in the parallel market does not affect the stability of the general level of prices. While he pointed out that the
parallel exchange market has begun to affect a narrow economic scope, he pointed out that the
stability of the dinar’s exchange rate against... The dollar is real and solid.”
Two Factors, Internal And External
Saleh said in a statement followed by the Iraq Observer Agency:
“There is an international factor that imposes controls on what is called banking compliance in financing the demand for dollars from our country’s international bank accounts in foreign currency, and
there is also an internal factor that benefits from the actions and pressure of the external factor in order to obtain profitable gains.” “Determined or emergency, especially in cash dollar transactions.”
He points out that:
“The dominance of the fixed exchange rate system in Iraq, which is based on a base of international reserves, is the highest in the history of Iraq and its monetary policy, as
the foreign currency covers a percentage of more than 100 percent of the total currency currently exported.”
He continued: “Through the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market in our country does not constitute any relative importance in affecting the stability of the general level of prices,
which have become stable in their components and trends as a result of the influence of the official exchange rate factor that prevails and currently dominates the exchange rate.” Financing “import” foreign trade, amounting to 1,320 dinars per dollar, is responsible for financing 90 percent of Iraq’s foreign trade. He stated,
“The stability of the official exchange rate leads to stability in the stable external value of the dinar, which is embodied in the state of stability in the relative prices of goods and services, as annual inflation in our country does not exceed only 3 percent, and
this is what was indicated in the reports of multilateral international financial and economic organizations.”
The Strength Of Foreign Reserves
Saleh added, “In light of the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds $100 billion, the official exchange market, as a general trend, will remain dominant in containing any noise with ambiguous information that is affected by the parallel exchange market in short periods, due to political events.” “International or regional emergency.” He stressed,
“After the decline of the phenomenon of dollarization in internal transactions, especially in contracts, obligations and payments within the country since last year and its legal ban, the parallel exchange market has begun to have its general effects only on a narrow economic scope of prohibited transactions, practiced by informal markets and at a rate of 10 percent of Total supply and demand transactions for the currency.”
He pointed out, “The stability of the exchange rate of the dinar to the dollar that the country is witnessing, even in the secondary markets, is a real and well-established stability. Rather,
it is derived from the strength of the influence of the price and quantitative factors of the monetary and financial policies and their integration in imposing overall price stability in the country, and containing the inflationary expectations that it was causing.” Parallel exchange market forces over the past years.” https://observeriraq.net/لكبح-جماح-الدولار-البنك-المركزي-يربك/
Has The Battle To Eliminate The Corrupt In Institutions Begun?
July 14, 2024 Baghdad/Iraq Observer The theft of the century case, which was revealed in mid-October, raises intense anger in oil-rich Iraq, where corruption is rampant.
Although corruption is widespread in all state institutions in Iraq, the trials taking place in these cases have begun to become active, and if they occur, they target officials, whether junior or senior.
Stealing The Century
The day before yesterday, an informed source revealed the completion of the results of the investigations into what he described as “the
theft of the century,” as it was discovered that
billions of dinars were stolen by some employees in the local administration in Diyala Governorate, while he explained that
the results are currently ready, but they cannot be revealed to the public opinion. Public only after obtaining approval from higher authorities in Baghdad. He stated that
there are three main reasons behind the delay in announcing the final results, including the
complications associated with embezzlement and theft operations, and the
efforts made to recover the stolen funds and track down those involved, pointing out that the
general security conditions in Diyala also contributed to the delay in the official announcement.
The source added that the results clearly show the circumstances of the “theft of the century,” and the
identity of those involved in it has been identified, with
details currently being kept secret until the appropriate conditions for public disclosure are in place.
The acting governor of Diyala, Karim Ali Agha, announced in a press conference last April that the stolen amounts amounted to 7 billion and 394 million dinars, noting that the
embezzlement operations began in 2019, and
a number of those involved were arrested after identifying them and issuing arrest warrants against them.
It should be noted that investigations are still ongoing, and
it is expected that the official announcement of the results will be made after the formation of the local government in Diyala or at a specific later date.
Anti-Corruption
Yesterday, Prime Minister Muhammad Shiaa Al-Sudani made a visit to the headquarters of the Federal Integrity Commission.
While chairing a meeting, Al-Sudani
pointed out that the Integrity Commission represents an essential tool in implementing the government program and the priority of combating corruption,
praising the distinguished efforts of the Commission’s workers,
which have established hope among the general public that there is a real will to combat financial and administrative corruption.
Al-Sudani touched on the issue of the theft of tax deposits, which represents a black point in the state’s history due to the nature and size of the money stolen and under official cover, in collusion with state employees, and
half of this money was smuggled out of the country, stressing “continuing efforts to recover it.”
He stated, “The work of the Commission is clearly different from the previous stage,
stressing the necessity of continuing the same professional path in work, especially since public opinion was concerned about selectivity in combating corruption and the political nature of opening files, as happened in the Diwani Order Committee 29, which is what happened.”
It no longer exists, as work today is being carried out in accordance with the law and in cooperation with the executive and judicial authorities.”
Fault Handling
Al-Sudani stressed “the necessity of quickly addressing any defect that appears among integrity employees, and refusing any employee to exploit his position, especially if he is charged with oversight and protecting integrity,” stressing that
he “communicates daily with the Integrity Commission and its head for follow-up and directives.”
The Prime Minister directed all officers and commanders to “submit a statement of their financial liabilities.
He also directed all departments to continue setting and updating standards for the use of bribery by surveying the opinions of citizens, and providing a periodic position on the ministries’ procedures on the subject of integrity, and the speed of responding to the subject of information received.”
REDUCED BRIBERY
The Ministry of Interior said on Sunday that our forces carried out an important operation that resulted in the killing of terrorists in Diyala Governorate, while noting that
the intelligence agency arrested 34,000 people during the first half of this year.
According to the Ministry of Interior: 7,705 people accused of drug trafficking were arrested, while
it confirmed a decrease in premeditated murder crimes by 13% compared to last year.
It indicated a decrease in bribery by 10% and fraud by 8%. https://observeriraq.net/هل-بدأت-معركة-زوال-الفاسدين-من-المؤسسا/
Iraq Resumes Negotiations To Join WTO
Amr Salem July 16, 2024 Baghdad (IraqiNews.com) – The Iraqi Minister of Trade, Atheer Al-Ghurairi, declared on Monday that discussions to join the World Trade Organization (WTO) had resumed after more than a 16-year break.
A statement issued by the Trade Ministry revealed that Iraqi negotiating teams began their preparatory meetings at the WTO’s headquarters in Geneva, Switzerland, in preparation for the third meeting that will discuss Iraq’s accession, the Iraqi News Agency (INA) reported.
During his participation in the 13th Ministerial Conference of the WTO held last February in the UAE capital, Abu Dhabi, Al-Ghurairi affirmed that
Iraq fulfilled the conditions necessary to become a member of the WTO following the completion of economic reforms and the enhancement of the investment climate.
The Iraqi Trade Minister indicated that Baghdad finalized issues related to goods and services in accordance with the deadlines set for integration into the international trade system.
The Iraqi government expressed interest in joining the WTO after submitting a request to do so in 2004.
Iraq needed to be a member of the multilateral international trade system in order to regain its place as a major player in the global economy.
In addition to debating the future of the global trade movement in light of current challenges, Al-Ghurairi said that the conference sends a strong message to the countries of the world about the value of joining this organization.
The Iraqi official added that Iraq is attempting to expand its commercial and economic connections around the world in order to create new opportunities for collaboration.
https://www.iraqinews.com/iraq/iraq-resumes-negotiations-to-join-wto/
To read more current and reliable Iraqi news please visit : https://www.bondladyscorner.com/