Saturday Morning Iraq Economic News Highlights 12-31-22

State Law Accuses Washington Of Creating An Economic Crisis To Obstruct The Government

The State of Law parliamentary bloc described the rise in the dollar exchange rate as a “fabricated crisis,” stressing that the US Treasury’s decision carries a political aspect against the Sudanese government.

“The recent US Treasury measures to restrict the movement of foreign remittances with Iraq at this time carries political signals and aspects directed against the young Sudanese government, which is no more than three months old,” the bloc’s spokesman, Representative Bahaa al-Nouri, said in a press interview seen by Taqaddam.

Its purpose is to negatively affect the Iraqi street and the performance of the government in front of the people through the economic file, by creating crises and problems to obstruct the implementation of the government program by reducing the currency pumping into the local market by 70 million dollars, after it was no less than 200 million dollars per day. ''.

He added that “reducing the rate of currency sale from the Central Bank of Iraq by two-thirds from the natural need, represents signs of an economic crisis, both at the government and private sector levels, affecting the life and sustenance of the citizen,” noting that “the government took quick steps during which it was able to control the price hike.” in the market and ending the state of confusion, but it is temporary and requires other radical solutions.”

Al-Nouri called on "the Ministry of Foreign Affairs, the Parliamentary Foreign Relations Committee, and government decision-makers to find real understandings with the American side to end any unilateral action that harms Iraq's interest, especially by respecting sovereignty and balance in relations between the two parties in accordance with common interests.  https://takadum-news.com/archives/140163

The Dollar Crisis Opens The Eyes Of The Iraqis On The Association Of Private Banks.. An Entity Whose Effectiveness Is Unknown

Economy / Special Files |Yesterday, 22:36 | With the outbreak of the dollar crisis in the Iraqi markets during the past days, which came as a result of the involvement of private banks in smuggling dollars from Iraq and through the currency sale window in which dozens of private banks participate, the Iraqis turned their attention towards the "Association of Iraqi Private Banks."

This "mysterious entity", according to the description of popular circles, has an unknown role in Iraq, amid the presence of the Central Bank, which is responsible for regulating the work of banks, whether governmental or private, while this entity is known to be an "umbrella" for all banks, including private banks that have been found to be involved. By smuggling the currency and causing the dollar to rise in the Iraqi markets after the US Federal Reserve clamped down on it.

In browsing the most prominent thefts and corruption scandals that have emerged in the recent period and during this year that is nearing the end, we find that the heroes of these thefts are private banks or personalities and businessmen who own private banks "affiliated" under the umbrella of the Association of Banks, whose role is unknown or understood.

Amidst accusations of “covering up” the activities of private banks, especially those involved in currency smuggling, which immediately after being banned from the currency sale window from the Central Bank, went down to the markets and stock exchanges and made huge purchases of dollars from the market, which caused the dollar to rise to unprecedented levels until it touched 160 thousand dinars per 100 dollars, and caused an increase in the prices of commodities and foodstuffs for citizens.

Although the first accused of the dollar crisis are banks under the umbrella of the Association of Banks, the latter issued a statement that did not rise to the scale of the crisis.

The association began its statement by saying that it and its member banks are "monitoring" the recent rise in the exchange rate, while reviewing the Central Bank's procedures that the bank had previously revealed in its repeated statements.

This statement prompted a number of bankers to deplore the role of the Association and the weakness of its position on the implicated banks affiliated with it.

At the same time, the Association is accused of acquiring the Central Bank’s initiatives for loans in various sectors, which reached, as of the third quarter of this year, more than 2 trillion dinars, as most of these loans were given through the Association’s banks and benefiting from the benefits accrued from the lending.

Bankers and specialists stress the need to "dissolve" the association, which did not provide anything to the Iraqis or the banking sector in general amid its unknown and ambiguous role, while they called for the formation of a new association that includes private banks and organizes their work and has a tangible role in improving and reforming the banking sector.

Perhaps the most prominent indication of the failure of the banking sector in Iraq, especially the private one, is that the number of private private banks in Iraq has reached more than 40 banks, but the money accumulated in the homes of citizens amounts to 70 trillion dinars, or about 40% of the Iraqi monetary mass. It is outside the banking system, due to Citizens' lack of confidence in banks and the failure of these private banks to attract citizens' money and gain their trust.   LINK

An Expert Determines The Reason For The "Inability" Of The Central Bank's Measures To Solve The Dollar Crisis

economy |12-29-2022, 22:20 |Baghdad today-Baghdad  Today, Thursday, economist Nabil Al-Marsoumi revealed the reason for the "ineffectiveness" of the Central Bank's measures towards the dollar crisis, while noting that the Central Bank deals with cash sales, while the problem is in foreign remittances.

Al-Marsoumi said, in a clarification received by (Baghdad Today), that "the high exchange rate of the dollar against the dinar is linked to the restriction of bank transfers, meaning that the problem is with the remittance dollar or the import dollar, not the cash dollar."

He added, "Therefore, the Central Bank of Iraq's treatments in the face of the dinar crisis seem ineffective, which is summarized by increasing cash sales, which amounted to 84.900 million dollars per day, compared to 23 million dollars for foreign transfers, meaning that the percentage of cash sales amounted to 78%, while it did not exceed before the crisis." 10%.

Earlier, the expert in financial and economic affairs, Nabil Jabbar Al-Tamimi, described today, Thursday, the solutions that the Iraqi government is working on to reduce the price of the dollar as "patchwork and temporary."

Al-Tamimi told (Baghdad Today) that "the government's measures to strengthen dollar cash in the markets is a temporary patchwork measure that contributes to a temporary reduction of exchange rates, but it will not represent a financial and economic solution."

And he added: "The Fed may object to the amount of money fed by the Central Bank of Iraq and the government as local cash, and the crisis may return again, and for this it is very necessary for the government and the Central Bank to contribute to resolving the issue of remittances, which are committed to international standards, and it is a priority to fully resolve the crisis, rather than any patchwork and temporary measure." ". LINK

Central Bank: Continuous Measures To Control The Exchange Rate Of The Dollar

Economy News-Baghdad   Deputy Governor of the Central Bank, Ammar Hamid, confirmed that the bank is continuing its measures to control the exchange rate of the dollar.

Hamid said in a press statement, "The Central Bank has taken several measures to control the stability of the exchange rate, including those related to merchants and citizens. As for citizens, the dollar is sold directly for travel purposes, through banks and using the salary card to obtain a lower price, which is 1465."

He added, "Al-Rasheed and Al-Rafidian Banks launched an initiative to issue a dollar card at a value of 10,000 dollars at a subsidized price."

Views 105   Added 12/31/2022 - 12:07 PM   Updated 12/31/2022 - 1:37 PM

https://economy-news.net/content.php?id=31611

Al-Jubouri: The Government Has A Set Of Options To Rectify US Policy And Control The Dollar

The head of the Al-Rafd Center for Strategic Studies, Abbas Al-Jubouri, confirmed on Friday that the government has many options that can reduce the exchange rate of the dollar and rectify US policies seeking to reduce the value of the dinar.

Al-Jubouri said in a press interview seen by “Takadum” that “America has practiced policies that would raise the exchange rate of the dollar in the local markets, with the help of some parties supporting its policies inside Iraq.”

He added, “There is a possibility to ensure a reduction in the exchange rate by disbursing some social protection salaries in foreign currency, especially since the salaries of this segment may not exceed $200 per person, and the process is repeated with retirees in the next month, as such a proposal was submitted to Prime Minister Muhammad Shia’ al-Sudani from through the center so as to reduce the demand for this currency by speculators.

And he indicated that "the outlets for selling the currency belong mostly to political parties, and despite the American policies, these parties are working to raise the exchange rate, while the government can control the price by tightening its control over the outlets for selling the currency."

https://takadum-news.com/archives/140091

Temporary Solutions.” An Economist Criticizes The Government's Measures To Address The Dollar Crisis

Today, Thursday, the economist Nabil Al-Ali criticized the government's measures to address the crisis of the dollar's high exchange rates in the local markets, while stressing the need to solve the issue of "remittances."

Al-Ali said, in a press interview seen by Taqaddam, that “the government’s measures to strengthen dollar cash in the markets to try to end the crisis of the recent rise in dollar exchange rates are patchwork and temporary.”

He added, "This measure contributes to a temporary reduction of exchange rates, but it will not represent a financial and economic solution," noting that "the Federal Bank may object to the amount of money fed by the central bank and the government as local cash, and the crisis may return again."

The economist stressed, “The need for the government and the central bank to contribute to resolving the issue of remittances that adhere to international standards, which is a priority to fully resolve the crisis.”

Earlier, the Central Bank took several decisions to reduce the exchange rates of the dollar after the major crisis that hit the local markets, which caused great boredom among the Iraqi people.

https://takadum-news.com/archives/139998

Will The Exchange Rate Reach “200,000 Dinars”?.. An Expert Explains And Monitors The Reasons For The Rise

That is, the Iraqi economist Ahmed Saddam, today, Monday, that one condition may save the stability of the exchange rates of the dollar in the local market, while he explained the possibility of prices reaching up to 200 thousand Iraqi dinars for every 100 dollars.

Saddam stated in a press interview seen by “Takadam” that “the reasons for the high exchange rate of the dollar are due to preventing 4 banks from selling the currency,” noting that “they previously acquired 40% of the currency sale in the central bank.”

Among other reasons, Saddam refers to “the platform that the Central Bank created in cooperation with a specialized company,” and the Central Bank of Iraq identified it in a previous statement.

The economist added, “This platform contains data for all banks, which are very accurate and with names, and are subject to the US Federal Bank, in order to notice whether there are suspicions, and therefore there is a slowdown in procedures, and these strict measures led to an increase in the exchange rate of the dollar.”

He stressed that "the central bank is required today to pump 170 million dollars daily in order to control the rise of the dollar in the Iraqi market, as a result of the heavy reliance on imports."

Saddam revealed, “The existence of an American decision that subjects Iraqi banks to the control of 3 regulatory bodies, as a result of the increasing demand for the dollar, due to the lack of internal production,” noting that “it is not possible to be pessimistic and say that the dollar will reach 200 thousand dinars for every 100 dollars, because this The matter is governed by supply and demand, the role of monetary policy in the country, and the extent of the Iraqi Central Bank's understanding with the US Federal Reserve regarding accelerating control procedures.

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.   https://takadum-news.com/archives/140142