Saturday Morning Iraq Economic News Highlights 2-4-23
Saturday Morning Iraq Economic News Highlights 2-4-23
A Complete Halt To The Movement Of Buying And Selling The Dollar In The Exchange Offices In Diyala
economy |Today, Baghdad today – Diyala Today, Saturday, the exchange offices in Diyala witnessed a complete halt to the buying and selling of the dollar, after the exchange rates fell yesterday evening.
The owner of the exchange office, Muhammad Abdullah, told (Baghdad Today) that “Baquba and the rest of the cities of Diyala are currently witnessing a cessation of buying and selling dollars after the collapse of exchange rates yesterday evening, which was widely reported by social media platforms.”
He added, "Until now, there is no specific exchange rate to proceed with, and for this reason, exchange offices have resorted to waiting for what will result in the coming hours," noting that "money changers depend directly on the currency markets in Baghdad to determine the compass of the dollar exchange rate.”
He pointed out that "some offices adopt the price of adventure in meeting the requests of some customers who are forced to buy or sell dollars according to specific prices, in which the difference between buying and selling is between 5-7 thousand dinars for every 100." dollars.”
And Abdullah continued, "Most exchange offices are now making transfers through the Iraqi dinar in order to walk customers until the situation is clarified in the coming hours."
Yesterday, Friday, the Central Bank of Iraq issued the first package of facilities to meet the demand for dollars, on both sides of cash and foreign transfers, as it included a large number of categories, offices and commercial activities that are allowed to transfer dollars abroad according to the Central Bank's controls.
And the Governor of the Central Bank of Iraq, Ali Mohsen Ismail, and his accompanying delegation had concluded, on Friday evening, in Turkey, the meeting with Assistant Secretary of the US Treasury Brian Nelson, during which they discussed prospects for cooperation and coordination between the two sides in a way that contributes to achieving stability in the exchange rate in Iraq and the mechanisms related to that. , according to the Iraqi Central Bank statement.
The US Treasury confirmed, according to the statement, "its support for achieving economic stability in Iraq, in reference to strengthening what was discussed between the Iraqi Prime Minister and the US President in the phone call that took place between them last Thursday."
Since November 2022, the exchange rate of the US dollar against the Iraqi dinar has witnessed a gradual increase, reaching its highest levels in recent days, as it crossed the barrier of 170,000 dinars per 100 dollars. Editing: A.G LINK
Leaks.. Al-Sudani Puts Forward The “Idea” Of Selling The Dollar To Merchants For 1,350 Dinars
The Independent/- According to the leaks, the Prime Minister, Muhammad Shia'a al-Sudani, put forward the "idea" of selling the dollar to merchants and investors for 1,350 dinars.
According to semi-official Kurdish media affiliated with the Independent, “leaks from the Parliamentary Finance Committee revealed that Prime Minister Muhammad Shia al-Sudani proposed selling the US dollar to merchants and investors for 1,350 Iraqi dinars to control the market and stabilize the exchange rate .” LINK
Who Holds The Dollar In Iraq?
Saturday, February 4, 2023 - Muhammad Hassan Al-Saadi There is no doubt that the livelihood of the simple Iraqi citizen and his daily requirements is one of the most important priorities, as it touches his life and his daily strength, and any speculation or manipulation related to it will affect his life and livelihood. his family.
The process of the rise of the dollar against the Iraqi dinar has a political and economic aspect. The organized smuggling process practiced by some local banks to neighboring countries was one of the most important reasons that prompted the US Federal Bank to stop these banks and prevent dealing with them, especially with our knowledge that banking dealings in dollars is monitored. Strictly by the American side, and this is very self-evident economically and politically, which considers it the source of its strength in the world.
The international factor was also very influential on the political and economic scene alike, and it is now entering into changes on the ground, as the economic reality is closely linked to the political reality. The dollar and even the economy as a whole, and it monitors the smuggling operations practiced by some parties in the world and its countries, including Iraq, which affected the smuggling operations on its economy, and it was negatively, especially on the value of the dinar against the dollar, which really contributed to its rise and its negative impact on the life of the citizen and his daily strength.
Organized smuggling operations and Iraqi money abroad are all reasons that affected the process of the rise of the dollar against the dinar, and made it exposed to this rise, which may increase little by little, unless there are quick measures capable of addressing the economic situation , and identifying the operations of manipulation and smuggling of currency, as well as on The government is finding ways to combat smuggling abroad, through legal procedures and strict supervision of some banks that have suspicious indicators.. In addition to returning smuggled funds abroad, through agreements concluded by the Iraqi government with these countries.
The Iraqi government cannot move on its own unless there is coordination between it and the US Federal Bank, and resorting to dialogue to find out the defects, and find mechanisms to address this rise.. There should also be internal measures, including "strengthening the Iraqi dinar at the expense of the dollar" and strengthening the Iraqi economy and its perpetuation, by paying attention to the private sector and activating investment laws, in a way that enhances the strength of this sector, and gives room for it to participate in strengthening the national economy on the one hand, and providing important job opportunities in it.
Today, the government of Mr. Al-Sudanese is required to find practical mechanisms to deal with the file of the currency exchange rate, and there may be close solutions as it is circulating, but it will not be quick and immediate. Its solution should be quick.. Any measure taken by the Sudanese government to deal with this file and others will guarantee a positive change towards a free and stable economy in Iraq.
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A Recommendation From An Economist For Those Who Own Dollars In Iraq
2023.02.04 - Baghdad - Nas On Saturday, the economic expert, Salam Sumaisem, made a recommendation to those who own dollars in Iraq.
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Sumaisem said in a post followed by "Nass" (February 4, 2023), "Beware of speculation and do not fall prey to rumors. Wait for the exchange rate to stabilize, otherwise some may tempt you to sell your dollars at a low price and then return to sell them at a higher price. Wait for the market to stabilize."
A recommendation from an economist for those who own dollars in Iraq Me_ga
Earlier, dollar exchange rates jumped again, amid turmoil in Iraqi market trading prices.
Prices in Sulaymaniyah now: 100$ = 167,000
The exchange rates of the dollar, according to the announcement of the exchange offices at the opening of the market in Erbil and Sulaymaniyah for today, Saturday, (February 4, 2023), were as follows: –
In Sulaymaniyah:-
100$ = 165,000
100€=107.5$/108.5$
100£ = $119.5/$120.5
100$ = 1850 / 1900 Turkish lira
1000k swede = 93.5$
1000k narwej=96.75$
1000 k danimark = 139 $
In Erbil Today, Saturday morning, the exchange rates of the dollar witnessed a "significant decline" in the Iraqi local markets, according to the monitoring of specialists.
The selling price of the dollar was 161,000 dinars per 100 dollars, while the buying price of the dollar was 159,500 dinars per 100 dollars.
Earlier, the political advisor to the Prime Minister and a leader in the Wisdom Movement, Fadi Al-Shammari, set a date for the stability of the exchange rate of the dollar against the dinar.
Al-Shammari said, in a tweet followed by "Nass" (February 4, 2023), "The success of the Istanbul meeting between the Central Bank of Iraq and the US Treasury."
He added, "The Central Bank announces a set of new measures that will contribute significantly to the decline in the exchange rate, accompanied by strict security measures in pursuing smugglers and speculators."
And he continued, "Within two weeks, the exchange rate will witness stability at its normal price, and there is no consolation for the speculators and the corrupt."
Earlier, Central Bank Governor Ali Mohsen and his accompanying delegation concluded his meetings with US Treasury Assistant Secretary Brian Nelson and his accompanying delegation in Turkey.
During the meeting, according to a statement by the Central Bank, of which "NAS" received a copy (February 3, 2023), "they discussed prospects for cooperation and coordination between the two sides in a way that contributes to achieving stability of the exchange rate in Iraq and the mechanisms related to that."
The US Treasury affirmed, "its support for achieving economic stability in Iraq, in reference to strengthening what was discussed between the Iraqi Prime Minister and the US President in the phone call that took place between them yesterday, Thursday, in emphasizing the importance of Iraq's stability to the region."
It also expressed its readiness for the necessary flexibility to achieve common goals. It was agreed to continue coordination and cooperation during the meetings to be held in Washington DC before the middle of this month, according to the statement.
And the Central Bank of Iraq issued, earlier, the first package of facilities to meet the demand for dollars, on both sides of cash and foreign transfers.
According to a statement by the Central Bank, of which “NAS” received a copy (February 3, 2023), the facilities were as follows: “
1- Increasing the ceiling of cash sales for travel purposes to (7000) dollars per month (seven thousand dollars per month), and selling them to adults (18 years and over) exclusively.
2- The sale of the dollar for the purposes of personal transfers will be through the agents of money transfer companies (Western Union and Money Gram) at the official price (1470) dinars to the dollar, and the Central Bank of Iraq is responsible for strengthening the balances of these agents in dollars at the official rate.
3- Expanding the scope of transactions allowed to be financed in foreign currency to include:
a) Importing goods and commodities that are legally permitted to be imported.
b) Purchasing and supplying services permitted by law, including shipping services.
c) Financing the import part of the contracts of contractors with state departments.
d) Requests received by the Central Bank of Iraq from governmental and public institutions and self-financed entities for their needs for which there is no allocation in dollars within the federal general budget of the state, supported by official documents that support these requests.
e) Enhancing the balances of sub-accounts of banks and electronic payment companies opened with (GB Morgan) Bank, which has a major membership with international card companies (Visa, Master).
F) Enhancing the balances of the sub-accounts of the Iraqi financial institutions opened with Citibank, which has a major membership with international money transfer companies (Western Union, MoneyGram) in order to settle its obligations with those companies after submitting the required statements.
g) Transfers for legal transactions for the purchase of real estate abroad.
h) Treatment abroad, and the transfer is from the account of the customer or one of his relatives of the first or second degree to the account of the hospital abroad after submitting a medical report from the concerned hospital.
i) Payment of tuition fees abroad, and the transfer shall be from the account of the student or one of his relatives of the first or second degree to the account of the university in which he is studying or to the account of the student himself in the country of study after submitting proof of his registration in the study certified by the Iraqi Cultural Attaché in the country of study.
j) Transfers related to foreign investments in Iraq.
k) Transferring the proceeds of the sale of shares distributed inside Iraq to an Iraqi residing abroad or a foreigner (the original value plus its returns, if any) in the event of selling them, provided that support is provided by the Iraq Stock Exchange.
l) Compensation decided or approved by Iraqi official authorities for foreigners, or for Iraqis residing abroad.
m) Profits of shareholders in companies duly registered in Iraq.
n) Amounts of financial proceeds (sale of real estate or other assets or their returns) in Iraq to an Iraqi residing abroad, provided that the transfer is from his account or his agent’s account inside Iraq to his account or his company’s account abroad exclusively.
o) Due payments related to banking and credit facilities that the customer has associated with banks outside Iraq.
4- Expanding and facilitating external transfer procedures for the categories below, as a first stage, to be followed by other categories later, namely:
a) All types of companies registered with the Companies Registration Department at the Federal Ministry of Trade.
b) Projects registered with the Directorate General of Industrial Development at the Federal Ministry of Industry and Minerals.
C) Simple companies duly incorporated by the chambers of commerce (according to an incorporation contract certified by a notary public) with an amount not exceeding (200,000) dollars (two hundred thousand dollars per month).
d) Branches of foreign companies registered with the Companies Registration Department at the Federal Ministry of Trade.
e) Investment projects of all kinds licensed by investment commissions.
f) Agricultural and animal projects licensed by the Animal Wealth Department, the Agricultural Investments Department, or the Veterinary Department at the Federal Ministry of Agriculture.
g) Scientific offices duly licensed by the Syndicate of Pharmacists.
h) Distributors of international factories who are fixed to be appointed from those factories for the purpose of working in Iraq, and agents whose appointment is approved by the distributor to work in the Iraqi market and who are duly licensed to work in Iraq.
i) Agents of international companies registered in accordance with the commercial agency law in force.
j) All types of companies, factories, laboratories and projects licensed in the Kurdistan Region of Iraq after presenting proof of incorporation or licensing from the relevant sectoral authorities, translated into Arabic, legally.
5- The Central Bank is obligated to cover all requests for dollars in cash and foreign transfers for all legitimate purposes, and thus every sale at a price higher than the official price becomes an act aimed at speculation or to cover illegal activity, and the Central Bank of Iraq is obligated to compensate the beneficiaries (importers) the amount of the difference that exceeds the official price decided, and this difference is deducted from our offending bank account.
6- Another important package will be issued soon to achieve the stability of the exchange rate and the general level of prices.
7- The Central Bank of Iraq is studying various proposals and scenarios related to the official exchange rate. https://www.nasnews.com/view.php?cat=101406