Monday Morning Iraq Economic News Highlights 1-23-23

Al-Sudani Relieves The Governor Of The Central Bank And Assigns The Relationship To Manage The Bank By Proxy

Political | 09:09 - 01/23/2023  Baghdad - Mawazine News, Prime Minister Muhammad Shia Al-Sudani decided, on Monday, to relieve Central Bank Governor Mustafa Ghaleb Makhaif of his post.  The official news agency quoted a government source as saying, "Prime Minister Muhammad Shiaa al-Sudani decided to relieve Central Bank Governor Mustafa Ghaleb Makhaif of his post, at his request."

The source added, "The Prime Minister assigned Ali Mohsen Al-Alaq to run the Central Bank by proxy."In the context, Al-Sudani decided to refer the director of the Iraqi Trade Bank, Salem Jawad Al-Jalabi, to retire.  The media office of the Prime Minister stated in a statement, "Al-Sudani decided to refer the director of the Iraqi Trade Bank, Salem Jawad Al-Jalabi, to retirement."  He added, "He assigned Bilal Al-Hamdani to manage the bank in addition to his duties." Ended 29/N33

https://www.mawazin.net/Details.aspx?jimare=217299

Dismissal Of The Governor Of The Central Bank, Dollar Prices Plummet.. It Is Likely That It Will Decline To 150 Thousand

Economie  2023-01-23 | Source:  Alsumaria News  8,318 views  Alsumaria News – Economy Economic expert Diaa Al-Mohsen saw today, Monday, that dismissing the governor of the Central Bank, Mustafa Ghaleb Makhaif, from his post, would contribute to the decline in exchange rates, while he described the governor's procedures as "improvised."

Al-Mohsen said, in an interview with Al-Sumaria News, that "the exchange rates will decline to less than 150,000 dinars for every 100 dollars, after exempting the governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif."

He added, "The defect is not represented by the person, but rather by management, as the management of the central bank governor was not at the required level," noting that the latter "did not know how to manage the Central Bank of Iraq since he took office today."

The economist pointed out that, "The central bank needs a wide knowledge of the financial and monetary policy and the management of the financial file in Iraq."

He explained, "The measures of the exempted central bank governor were improvised and unrealistic, and did not affect the real problem of the people," adding, "Mustafa Ghaleb Makhaif was a legal director at an earlier time, and he is supposed to be familiar with all financial policies and related currency smuggling."

Al-Mohsen pointed out that, "Most of the merchants took advantage of the improvised decisions of the Governor of the Central Bank of Iraq, and proceeded to raise the dollar and manipulate its prices."

He pointed out, "The Central Bank of Iraq is responsible for protecting citizens' money, and the citizen needs reassurance and protection for his money."

Earlier today, Monday, Prime Minister Mohamed Shia Al-Sudani decided to relieve Central Bank Governor Mustafa Ghaleb Makhaif of his post.

A government source told Alsumaria News, "Prime Minister Muhammad Shiaa al-Sudani decided to relieve Central Bank Governor Mustafa Ghaleb Makhaif of his post, at his request."

The source added, "The Prime Minister assigned Ali Mohsen Al-Alaq to run the Central Bank by proxy."  LINK

Revealing "Al-Kadhimi's Role".. An American Magazine: Washington Is Holding Iraq Hostage By Using The Dollar's Weapon

Baghdad Today - Translation   The American "The Cradle" magazine revealed today, Monday, new details related to the current dollar crisis in the country and the reasons that led to it, accusing Washington of using the US currency as a "weapon" against Iraq.

The magazine said in its report, which was translated by (Baghdad Today), that "Washington has forced Iraq, since 2003 until today, to send its oil revenues to only one account with the US Federal Treasury in New York, and it transfers dollars from the account to the Iraqi government upon request. Which enabled the US administration to use the dollar as a weapon to target the Iraqi dinar and reduce its value in the market," according to its description.

The magazine stated that "the US administration informed the government of the former prime minister and the Central Bank of the restrictions it has now imposed on transferring dollars from the US Federal Reserve to Iraq, asking them to take appropriate measures and prepare for that, which Al-Kazemi and the governor of the Central Bank ignored," according to the network.

The information reported by the network indicated that “Washington, because of its special relationship with former Prime Minister Mustafa Al-Kazemi, preferred not to implement the restrictions while he remained in power, waiting for the formation of the new government to implement them,” adding that “the Sudanese government did not know of Washington’s previous notification of Al-Kazemi and the governor of the Central Bank before Two years with its intentions, which it said that ignoring it led to subjugating the dinar and the Iraqi economy as a victim, during which the United States managed to hold the Iraqi economy hostage, using the dollar weapon.   LINK

How Did The Coordinating Framework Receive The Decision To Exempt The Central Bank Governor? Leader Answers

2023-01-23 Shafaq News/ The coordination framework, which brings together the Shiite political forces, with the exception of the Sadrist movement, commented, on Monday, on the decision of the Prime Minister, Muhammad Shia' al-Sudani, to relieve the governor of the Central Bank from his post and assign Mohsen Al-Alaq to replace him.

"The coordination framework does not object to any measures that would address the rise in the exchange rate of the dollar and maintain market stability," said the prominent leader in the framework, Hassan Fada'am, to Shafaq News agency.

He added, "Prime Minister Muhammad Shia'a al-Sudani is supported by the coordination framework with these procedures and does not interfere in the details and rationale of treatment methods, but rather the matter is subject to the opinion of specialists and experts and the assessment of the appropriate position by the prime minister."

And today, Monday morning, Prime Minister Muhammad Shia al-Sudani decided to relieve the governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, from his post, while Ali Mohsen Al-Alaq was assigned to run the bank by proxy.

Yesterday, Sunday, Al-Sudani took urgent decisions to "address" the exchange rate of the US dollar against the local currency during his meeting with the Federation of Iraqi Chambers of Commerce to discuss solutions to the fluctuation of the exchange rate of foreign currency.

These decisions come at a time when the exchange rate of the US dollar against the Iraqi dinar has witnessed a gradual rise since November 2022, reaching its highest levels in recent days, as it crossed the barrier of 165 thousand dinars per 100 dollars.

Independent MP Sajjad Salem saw that relieving the governor of the Central Bank of Iraq from his post and assigning Mohsen Al-Alaq, who was chosen by former Prime Minister Nuri al-Maliki - the most prominent leader in the coordination framework - in his second government as governor of the bank, an attempt by the framework to take over the central bank.   LINK

"Fear Of Confinement" Disrupts Buying And Selling Of The Dollar On The Baghdad Stock Exchange

2023-01-23 04:48  Shafaq News/ A number of owners of exchange offices in the main stock exchange in Al-Kifah and Al-Harithiya confirmed that they no longer sell or buy dollars after raids by the Economic Security and the arrest of a group of owners of exchange offices.

The Iraqi markets are witnessing a continuous rise in the prices of foodstuffs and construction commodities as a result of the continued rise in the exchange rate of the Iraqi dinar against the US dollar, which today exceeded 165 thousand dinars per 100 dollars. And the arrest of a group of owners of dollar exchange offices, which it described as speculators.

One of the owners of the Al-Harithiya Stock Exchange, Raad Al-Dulaimi, said in an interview with Shafaq News agency: We have not sold or bought any dollar for two days after the raids on the Al-Kifah and Al-Harithiya Stock Exchanges, indicating that "our offices are open, but in fact they are closed to anyone who comes to us to carry out the buying or selling process." For fear of imprisonment, as sometimes they send people to spy on us by impersonating a person who wants to buy the dollar to find out the truth about the price we are buying or selling.

He added, "Economic Security told us that everyone must abide by government instructions, which is to sell at the price that was set by the Central Bank, otherwise legal measures will be taken against him."

He pointed out that "most of the non-licensed offices have been closed, and strict control has been imposed on other licensed offices," adding that "the process of selling dollars will shift from the parallel market stage to the black market."   LINK

The Dollar Crisis May Strain The Relaxed Relationship Between Sudani And The Central Bank Governor

January 22, 2023  Baghdad / Obelisk: The government of Muhammad al-Sudani and the governor of the Central Bank of Iraq are under criticism because of the dollar crisis.

On social media, the obelisk monitored criticism of the prime minister, even by those who support him in the media, for keeping the governor of the Central Bank, Mustafa Ghaleb, in his post.

In one of the steps against Al-Sudani's position, deputies from the coordination framework collected signatures to interrogate Ghalib to dismiss him.

Observers of Iraqi affairs say that al-Sudani will not dismiss the bank's governor because he is affiliated with the Sadrist movement, as the prime minister avoids clashing with him.

But the street revolution against the rise in the price of the dollar may force the government to dismiss Ghalib.

The head of the awareness movement, Salah al-Arabawi, said that the central bank governor had failed to control the dollar and the government should dismiss him and appoint a competent person capable of managing the crisis.

Representative Majid Shankali explained that the reason for the rise in the dollar is the central bank's failure to draw up monetary policy, to stop illegal foreign transfers, and to combat money laundering and laundering of some facades of blocs and parties, who were falsely named businessmen.

He wondered: Where is the central bank that did not make any statement on the subject, especially the governor who has nothing to do with money and the economy, but this is our case in which a legal person can assume the highest banking position in the state!

A member of the European Institute of Corporate Governance ECG, Wadah Taha, said that the Central Bank must exercise its role in accordance with the law in applying all means to achieve the national economic interest of Iraq and impose strict control on banks and transfers instead of imposing sanctions from abroad, which we are indispensable.

In an examination of the causes of the crisis, the advisor to the Prime Minister, Mazhar Muhammad Salih, explained, on Thursday, regarding fluctuations in the exchange rate of the dollar in the Iraqi market, that the external transfer platform meets 90% of the market demand for foreign currency.

Professor of Economics at the University of Basra, Nabil Al-Marsoumi, pointed out that the central bank is unable, until now, to use cash reserves to support the dollar, despite the insane rise in Iraq.

Coinciding with the wave of criticism, calls for the dismissal of the central bank governor, Mustafa Makhaif, rose, due to his failure to perform his duties after the current crisis.

And the former member of the Parliamentary Finance Committee, Abdul Hadi Al-Saadawi, called for changing the governor of the Central Bank, indicating that the current governor is not qualified to manage the Central Bank.

A member of the Finance Committee in the former parliament, Rahim al-Darraji, said that the central bank is the cause of all the problems in Iraq, revealing the reason for canceling a frightening interrogation.

Al-Darraji made it clear that many personalities called and intervened to cancel Al-Darraji's interrogation, and indeed that happened.

Social studies teacher Hatem Al-Ajibi said that the failure of the governor of the central bank to maintain the stability of the exchange rate of the dollar necessitates that the Sudanese dismiss him for failing in his duties.

Representative Bassem Khashan considered that the governor of the Central Bank is legal and does not have the slightest experience in managing banks, funds, accounting, or any specialization close to banking work.

He added that Mustafa Makhaif reached this position through a political party and influential bank owners, while he remains in his position and expands in the government of Muhammad Shia, surprisingly: we do not know the reason for his survival or the reasons for his expansion!

https://almasalah.com/archives/37716

The Coordination Framework Will Hold A Meeting To Discuss The Rise In The Exchange Rate Of The Dollar, In The Presence Of The Sudanese

Posted On2023-01-23 By Sotaliraq  01/22/2023:  A security source stated, on Sunday, that the leaders of the coordination framework will hold a meeting shortly in the office of the leader of the Al-Fateh Alliance, Hadi Al-Amiri.

The source said, "The leaders of the coordination framework will hold a meeting shortly in the office of the leader of the Al-Fateh Alliance, Hadi Al-Amiri, in the presence of Prime Minister Muhammad Shia'a Al-Sudani."

The statement added, "The meeting is held to discuss a number of political, as well as economic, files related to the rise in the exchange rate of the dollar."

The leaders of the coordination framework will hold a meeting to discuss the rise in the exchange rate of the dollar, in the presence of the Sudanese.   LINK