Monday Morning Iraq Economic News Highlights 1-30-23
Monday Morning Iraq Economic News Highlights 1-30-23
The Central Bank Governor Presents Plans To Control The Dollar's Rise
Monday, 01-30-2023, Pm 2:36 Karrar Al-Asadi Today, Monday, the governor of the Central Bank, Ali Al-Alaq, presented plans to control the rise in dollar exchange rates in the Iraqi markets.
The media office of the First Deputy Speaker of Parliament, Mohsen Al-Mandalawi, stated in a statement received by the Nun news agency, that the latter "received the governor of the Central Bank, Ali Al-Alaq," noting that "Al- Mandalawi stressed the need for the return of financial stability - especially the exchange rate of the dollar - to the Iraqi markets soon."
According to the statement, the First Deputy stressed "the need to adhere to the legal procedures for financial transfers, and to protect the Iraqi economy from previous violations, and the need to apply global procedures and follow up on transfers and the work of private banks." and exchange companies, and to pursue all abuses according to the Iraqi laws in force in implementation of the obligations of the Central Bank of Iraq.”
The statement indicated that, "Al-Mandalawi listened to an extensive explanation of the relationship to the financial and control plan that the Central Bank of Iraq will work on, to control dollar exchange rates, prevent financial speculation, and follow up on suspicious purchases of hard currency that is intended to harm the national economy.
This comes in light of an unprecedented rise in the exchange rates of the dollar against the Iraqi dinar, with a significant rise in the prices of goods and services in the country.
The central Al-Kifah and Al-Harithiya stock exchanges in Baghdad recorded this morning an exchange rate of 166,000 Iraqi dinars against 100 US dollars, while yesterday morning, Sunday, prices were 164,000 dinars.
The correspondent of the Noon news agency said that the prices of selling and buying dollars rose in exchange shops in the local markets in Baghdad, where the selling price reached 167,000 Iraqi dinars per 100 US dollars, while the purchase prices reached 165,000 dinars per 100 dollars .
It is noteworthy that the Central Bank of Iraq announced, on December 19, 2020, officially the adjustment of the exchange rate of the US dollar to be 145 thousand dinars for every 100 dollars, according to the state's general budget for the year 2021 approved by Parliament, while some political parties and figures, most notably the current Prime Minister Muhammad Shiaa al- Sudanese objected at the time, calling for the return of the exchange rate to the previous price (118,200 dinars per $100).
The Central Bank of Iraq attributed the reasons for devaluing the dinar at the time to what it described as structural distortions in the Iraqi economy that impoverished public finances and restricted the reform capacity sought by the government and the Ministry of Finance.
Al-Mandalawi To Al-Alaq: Financial Stability Must Return To The Markets Soon
Political | 12:03 - 01/30/2023 Baghdad - Mawazine News, First Deputy Speaker of Parliament Mohsen Al-Mandalawi stressed, on Monday, that financial stability - especially the exchange rate of the dollar - must return to the Iraqi markets soon.
During his meeting with the Governor of the Central Bank, Ali Al-Alaq, Al-Mandalawi stressed, according to a statement from his office, which Mawazine News received, the need to "adhere to legal procedures for financial transfers, and to protect the Iraqi economy from previous violations."
He also stressed "the need to implement global procedures, follow up on transfers, the work of private banks and exchange companies, and pursue all abuses according to the Iraqi laws in force, in implementation of the obligations of the Central Bank of Iraq."
According to the statement, Al-Mandalawi listened to "an extensive explanation of the relationship to the financial and control plan that the Central Bank of Iraq will work on to control dollar exchange rates, prevent financial speculation, and follow up on suspicious purchases of hard currency that are intended to harm the national economy." https://www.mawazin.net/Details.aspx?jimare=217929
Will You Succeed In Dealing With The Rise Of The Dollar? An Economist Suggests Adding A Cash Currency Other Than The Dinar To The Market
Monday 30 January 2023 12:04 | Economical Number of readings: 224
Baghdad / NINA / The expert on economic affairs, Raad Twij, suggested adding a new cash currency to the market to absorb the hoarded dinar and control the rise of the dollar against the dinar.
Twigg said in a statement to the Iraqi National News Agency ( NINA ) that "Iraqi monetary policy has become linked to international monetary policy within the framework of the (Swift) system, which may work to zero currency smuggling operations."
He added that: “At the same time, the Iraqi monetary system suffers from high levels of the Iraqi dinar, which accumulated over a long period, and which turned in a large part into hoarded money,” noting that: “There must be a Corrective monetary process by adding a new currency, and replacing the Iraqi dinar.
He explained that "it is difficult to absorb the surplus and hoarded money supply, which carries with it many monetary risks, especially with the continuous suspension of the general budget, and the absence of a fiscal policy that supports monetary policy for many years, which led to a decline and shortcomings in the economic cycle.”
The economist stressed the necessity: "The measures taken to resist rising prices should be correct in the short term, and to build a long-term monetary strategy for monetary reform."/ End 8[/rtl]
Expert: Solving The Dollar Problem Requires Breaking The Link Between It And Commodity Prices In The Market
Iraq: Baghdad Economic expert Majed Al-Suri considered today, Monday, that the solution to the problem of the high exchange rate of the dollar is not only related to the governor of the Central Bank, but also to the general economic situation in the country, so the work in the country must be organized in all respects, especially in the commercial aspects.
He said that the problem is due to the great linkage between the exchange rate and the prices of commodities traded in the Iraqi market, “because once the correlation between the exchange rate and the price of commodities is disengaged, it will lead to very great economic stability,” adding that “in Iraq there is a good amount of money in dollars and the central bank reserves can That covers the Iraqi trade needs from two to two and a half years and more, but the main problem is in controlling the trade process, especially since there are countries punished by America, which insist that the dollar not reach them.
At the same time, the economist stressed that “the US dollar is monitored by the United States, whether it is in cash or a transfer, just as there is no objection to the United States cooperating with the Central Bank in securing all the cash amounts it requests, but it must be used in the right direction, and the opposite of that will lead to the imposition of Restrictions on the circulation of the cash dollar, as happened a short time ago, and even on the circulation of the dollar with regard to banks and trade. The American side never allows the dollar to circulate in Iran, Syria, Lebanon, Russia, or some other countries, and it tries to cut off the full supply of dollars to these countries.
He explained that the Central Bank was able to prepare all the requirements on the electronic platform at the local and international levels, including the issue of relations with the SWIFT company, but the main problem is in “how to apply, and the local merchant does not accept this application, as the local merchant faces very large facilities regarding the use of the dollar in this way.” However, the main problem is how to reach the process of regulating trade as quickly as possible and knowing the final beneficiary of the dollar. LINK
Parliamentary Finance Urges Accelerating The Approval Of The 2023 Draft Budget
Iraq 01/30/2023 Baghdad: Muhannad Abdel Wahhab The Parliamentary Finance Committee considered the reason for the government’s delay in approving the 2023 draft budget to the desire of Prime Minister Muhammad al-Sudani to ensure that the federal budget matches the government program, especially in the investment aspect.
Committee member Mueen Al-Kadhimi said: "The Ministries of Finance and Planning completed the budget a month ago from now, but the postponement of its referral to Parliament came with the Prime Minister's directive for his desire for the budget to be compatible with his government program to meet actual needs, especially the investment aspect in projects implemented by the governorates and ministries." "The Council of Ministers' approval of the draft law and its transfer to the House of Representatives at the end of next week."
Al-Kazemi added, in an interview with "Al-Sabah", that "Parliament is completing the election of a speaker, first and second deputy for many of its committees, including the Finance Committee, which will assume responsibility for reviewing the draft law and presenting it for the first and second reading, amending and approving it during the second month," noting that "the previous eternal differences between The Kurdistan region and the federal government revolve around exporting oil outside the system of the Federal Ministry of Oil, without the control and supervision of the “SOMO” company responsible for oil marketing, in addition to the revenues of border crossings and taxes. .
He continued, "There are continuous dialogues that led to good results between the Kurdistan region and the federal government, but the decision of the Federal Court somewhat disturbed the atmosphere between the Kurdistan region and Baghdad."
And regarding the government's actions regarding the rise in dollar prices, he called on the Central Bank to "take measures regarding bank transfers outside Iraq for the benefit of importing merchants, in a way that contributes to putting them in a streamlined and simple manner."
The representative of the Finance Committee saw "the possibility of easing the tax on merchants and customs to encourage them to enter the currency window and obtain what they need away from the parallel prices on the black market that lead to a rise in the exchange rate," noting that "there are some obstacles by the US Federal Bank that does not release Transfers are only after being audited, which led to the rejection of some transfers and their return to the Central Bank, which contributed to the scarcity of the dollar in the Iraqi market and the rise in its prices as a result of the rising demand for hard currency. Edited by: Ali Abdel-Khalek https://alsabaah.iq/70949-.html
Al-Alaq Briefs The Iraqi Parliament On A "Financial Plan" To Control The Exchange Rate And Prevent Speculation
2023-01-30 03:12 Shafaq News/ On Monday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, briefed the Deputy Speaker of Parliament on a "financial plan" that he said he would work on to control the exchange rates of the dollar and prevent financial speculation.
A statement by the media office of the First Deputy Speaker of Parliament, Mohsen Al-Mandalawi, received by Shafaq News agency, stated that the latter "stressed, during his meeting with the Governor of the Central Bank of Iraq, Ali Al-Alaq, that financial stability - especially the dollar exchange rate - must return to the Iraqi markets soon."
Al-Mandalawi stressed the necessity of "compliance with the legal procedures for financial transfers, and protecting the Iraqi economy from previous violations," stressing "the need to implement global procedures, follow up on transfers and the work of private banks and exchange companies, and pursue all abuses according to the Iraqi laws in force in implementation of the obligations of the Central Bank of Iraq."
The First Deputy listened to an extensive explanation from Al-Alaq on “the financial and control plan that the Central Bank of Iraq will work on, to control dollar exchange rates, prevent financial speculation, and follow up on suspicious purchases of hard currency that are intended to harm the national economy.” LINK