Saturday Morning Iraq Economic News Highlights 4-1-23
Saturday Morning Iraq Economic News Highlights 4-1-23
Central Bank: Opening A Window To Sell Dollars To Citizens Violates International Regulations And Norms
Economy| 12:56 - 01/04/2023 Baghdad - Mawazine News The Central Bank of Iraq confirmed, today, Saturday, that all financial transfers are monitored from the electronic platform, while indicating that opening a window to sell dollars to citizens violates international controls and norms.
"All financial transfers are followed up and monitored by the Central Bank of Iraq through the electronic platform and the cash sale platform," said the assistant general manager of the investment department at the bank, Muhammad Yunus, to the official news agency.
He added, "These operations come within the international standards for combating money laundering and terrorist financing, and are compatible with all international norms and laws, and do not affect the reputation of Iraq, the Central Bank and financial institutions in the event of any defect in those transfers."
He pointed out that "accepted remittances began to increase continuously, and we expect the Central Bank to reach very high levels."
Concerning the daily conversion rate of foreign currencies, Younis confirmed that "the bank publishes daily its cash sales and transfers, which currently range between 100 to 150 million dollars, in addition to cash sales," expecting "an increase in transfers in the coming days."
Regarding the possibility of the dollar exchange rate returning to its previous price, Younis said, "The parallel rate has begun to gradually decrease on a daily basis during the past days," pointing out that "the Central Bank is working hard to solve all the problems that banks and merchants suffer from in the financial transfer process."
Regarding the possibility of opening a window to sell the dollar to citizens with specific numbers per month, Yunus explained that "the dollar cannot be available to any citizen as it is not a national currency for Iraq," noting that "the dollar must be allocated for dealing outside Iraq for the purposes of financing trade, travel, treatment and study."
"Opening a window to sell dollars to citizens violates all international regulations and norms," Younis added. Ended 29/N33 https://www.mawazin.net/Details.aspx?jimare=223412
American Institute: Washington Will Lose From The Region's Oil Shutdown, And It Must Take These Steps
2023.04.01 - Baghdad - Nas A report by the American Washington Institute confirmed that American interests will be damaged by the cessation of oil exports from the Kurdistan region, calling for obtaining financing to "buy" the debts of the Kurdistan region to oil traders, which amounts to about $4 billion.
According to the report written by "Michael Knights" and translated by "NAS" (April 1, 2023), the removal of half a million barrels from global markets is not welcome at all, and constitutes a particularly dangerous development in the midst of the conflict in Ukraine, and at a time when it was US adversaries like Russia and Iran want to raise oil prices.
The report stressed that the United States has a direct interest in the case because American investors will be affected by the closure of the pipeline if it continues for a few weeks, not to mention the possible delay in the exports of the Iraqi Kurdistan region's much-needed gas to Iraq or Turkey and Europe.
The report concluded that the current situation is a loss for the United States, Iraq, Turkey and the Kurdistan region of Iraq. “In confusing situations, it is important to focus on what needs to happen to keep the oil flowing through the ITP.” The Iraqi government should instruct the State Oil Marketing Organization (SOMO) to send a letter to Turkey stating that it requests the reopening of the pipeline and all storage operations and Provides a set of tanker loading instructions to allow APR shipments to continue.
And the report indicated that both parties would recognize the arrangement as an emergency step limited in time to prevent economic damage to Iraq (including the Kurdistan region of Iraq) and global markets in Europe and Asia. It also gives Iraq and Turkey ample time to settle arbitration cases. Likewise, Baghdad and the Kurdistan region can take a break and return to the negotiating table, as the fundamentals of the recently approached deal are still valid.
The report presented proposals to the US administration and stressed the need to focus on the positive steps in its policy in the Middle East, not just fighting wars, and indicated that the most important and useful thing that it could do in Iraq is to help the country find peace with the Kurds, who represent the largest ethnic minority in the country because the deal The historic budget and oil law between Baghdad and the Kurdistan Region of Iraq are closer than ever” so Washington must go to great lengths to get it done. The pipeline is likely to reopen quickly — even in the coming days — but if it does not, states must the United States to act decisively."
Regarding the next steps, the report stated, "Expanding good offices to include all uncorrupted parties to help put the talks between Iraq, Turkey, Baghdad, and the Kurdistan region back on track."
The report also suggested that the United States could help Iraq obtain financing to "buy" the Kurdistan region's debt to oil traders (which would likely be $2-4 billion). This would allow for several things: that trading be passed on to SOMO; That Iraq achieve better prices for a barrel of crude oil administered by the Kurdistan Region of Iraq; And for the oil to pass only to end users who are authorized by the Saudi Oil Marketing Company (SOMO). It may be an option for the United States. The government buys Iraqi oil to restock the Strategic Petroleum Reserve. https://www.nasnews.com/view.php?cat=104854
Central Bank Sales Approaching 900 Million Dollars In A Week
Money and business Economy News-Baghdad The total sales of the Central Bank of Iraq in US dollars during the past week amounted to more than 870 million dollars.
The "Economy News" correspondent stated that the Central Bank sold during the past week for the four days in which the auction was opened, while it did not sell the dollar on Monday because it coincided with an official holiday, indicating that the amount of sales amounted to 876 million and 229 thousand and 180 dollars at a daily rate of 219 million. And 057 thousand and 295 dollars, up by 1.37% from the record of the previous week, in which the sales rate reached 216 million, 607 thousand and 478 dollars.
Our correspondent added that the highest dollar sales during the past week were on Thursday, when sales amounted to 238,758,264 dollars, while the lowest sales were on Sunday, when sales amounted to 202,134,715 dollars.
He pointed out that sales of foreign remittances amounted to 714,629,180 dollars during the past week, an increase of 70.59% compared to cash sales, which amounted to 210,600,000 dollars.
He explained that the sales went in the form of cash payments and transfers abroad to finance foreign trade, while the selling price of documentary credits and international settlements for electronic cards amounted to 1,305 dinars per dollar, while the selling price of remittances abroad and the cash sale price amounted to 1,310 dinars per dollar. https://economy-news.net/content.php?id=33249
Parliamentary Finance Sets The Official Date For Putting The Budget On The Dialogue Table
Information / Baghdad.. A member of the Parliamentary Finance Committee, Faisal Al-Naeli, confirmed, on Saturday, the inclusion of the 2023 budget on the agenda of the parliament sessions this week for the first reading, stressing that the House of Representatives needs 45 days to review and vote on the federal budget law for the year 2023.
Al-Naeli said in an interview with the information agency, that "there are preliminary observations on the draft as it depends on the three-year system," noting that "the deficit, which amounts to 64 trillion dinars, is very large and will be repeated for three consecutive years."
He added, "The budget was approved on the basis of a price of 70 dollars per barrel, which requires a comprehensive review of the 2023 budget, stressing that" the fiscal deficit is large, at about 64 trillion, and all details of the amounts and the doors for their disbursement will be reviewed for the purpose of reducing the deficit.
And a member of the State of Law coalition, MP Muhammad Al-Sahyoud, had confirmed the inclusion of the draft budget law this week, indicating that the form and content of the budget necessitate delay in its presentation and discussion within the parliamentary committees. LINK
Al-Halbousi Is Accused Of Bargaining And Extortion For Refusing To Present The Budget
Information / Baghdad.. On Saturday, a member of the Rights Movement, Hussein Ali Al-Karawi, blamed the Parliament Speaker for the delay in approving the law, expressing his regret that the budget was not included in the parliament's agenda for the first reading.
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Al-Karawi said in an interview with Al-Maalouma agency, "Al-Halbousi is trying to impose his conditions in the budget to achieve personal goals."
He added, "Huquq demanded that the draft budget law be presented, from a legal, professional and political point of view, for the first reading, surprising that "the Parliament Presidency objected to presenting it for the first reading."
He pointed out that "Al-Halbousi is trying to achieve factional electoral gains, especially in light of the conflict on the Sunni arena, control of the political decision, and imposing what he wants, even at the expense of the rest of the people of Iraq from other provinces."
And a member of the Parliamentary Finance Committee, Mustafa Khalil, had confirmed to Al-Malooma, that “the work of the Finance Committee is now suspended, and a press conference will be held in the event that the budget is not sent from the Presidency of Parliament to the Finance Committee in order to complete the amendments in preparation for approval.” LINK
Al-Fath: The Budget Will Be Approved After The Eid Holiday And Under These Conditions
Information/Baghdad.. On Saturday, the representative of the Al-Fateh Alliance, Ali Turki, confirmed the launch of preliminary discussions to pass the budget within the Finance and Planning Committees, indicating that the budget will not be passed without achieving the interests of citizens and services.
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Turki said in a statement to Al-Maalouma, “The Presidency of the House of Representatives referred the draft law to the heads of the political blocs in the House of Representatives, which were sent by the Council of Ministers after the draft law was approved. "
He added, "After briefing the committee chairmen, the budget was referred to the relevant committees for study, which are the Financial and Legal Committee, Planning and Monitoring of the Government Program and the Regions and Governorates Committee."
While Representative Ali Turki suggested that the budget be approved after the blessed month of Ramadan, because most of the political forces seek to approve it as soon as possible, “noting that the budget” will include all the necessary paragraphs to serve the citizens “until the end of / LINK
A Specialist Reveals The Fate Of Dollar Prices Within A Month
A specialist reveals the fate of dollar prices within a month %D8%AF%D9%88%D9%84%D8%A7%D8%B1
The head of the Chambers of Commerce in Diyala, Muhammad al-Tamimi, confirmed today, Friday, that the dollar will lose 10% of its value in Iraq within a month.
Al-Tamimi said, in a press interview seen by “Takadam”, that “the last exchange rate for selling the dollar amounted to 151 thousand dinars for every 100 dollars, which is the lowest price in weeks within what is known as the parallel market, which is an indication of a gradual decline.”
Al-Tamimi expected, “The dollar will lose 10% of its value, and perhaps more within a month in the Iraqi markets, and reach less than 140 thousand for every $ 100 if the central bank’s procedures continue in their current contexts, with strict measures to prevent currency smuggling and end the dollarization file of important internal sectors that depend on Years ago, at a rate of 90% on the dollar in sales and trade, including the automotive sector and internal trade.
He pointed out that "ending the parallel market is not impossible in Iraq, but it needs exceptional efforts, especially ending internal transactions in dollars, which constitute the most important pressure factors on the exchange rate at the present time." https://takadum-news.com/archives/157194
Al-Sudani's Advisor Identifies The Reasons For The Decline In The Parallel Price Of The Dollar In The Iraqi Market
Shafaq News/ Mazhar Muhammad Salih, the financial and economic advisor to the Prime Minister, Muhammad Shia'a al-Sudani, commented today, Saturday, on the decline in the exchange rate of the dollar in Iraq.
Saleh told Shafaq News agency, "Foreign trade financing operations in foreign exchange for the private commercial sector are currently in a stage of recovery and escalating adaptation to the new international compliance requirements that have been implemented since last November. Window sales are after the three packages launched by the Central Bank and procedures The government regulators that simplified foreign trade operations for the private sector are all undergoing an accelerated state of adaptation towards accelerating external transfer and financing trade at the official exchange rate
He added, "The Central Bank's window sales began to touch their previous normal rates of sale, to reach approximately $200 million per working day in the foreign currency auction, which is a very stable level of sales to meet the market demand for foreign exchange, and is supported at the same time by high reserves of foreign currency that It is in the possession of the monetary authority, which enables it to effectively intervene in the stability of the market in an easy and effective manner.
And the financial and economic advisor to the Prime Minister stated that "in light of the foregoing, the price differences between the official exchange rate of the dinar against the dollar and the price equivalent to it did not widen, but there are strong signals towards contraction and a clear gradual decline towards the convergence of the two prices, especially the decline of the dollar in the parallel price on a daily and tangible basis." .
On Tuesday, March 21, the Governor of the Central Bank of Iraq, Ali Al-Alaq, expected a decrease in the parallel dollar exchange rate (the market price and local exchange rates) during the coming period.
Al-Alaq said at the time, in a special statement to Shafaq News Agency, "The Central Bank launched several packages of measures, and the packages that were launched are dealt with seriously to control the exchange rate of the parallel dollar."
Al-Alaq indicated that "the central bank's measures are continuing to control the exchange rate, and we expect a decrease in the parallel exchange rate."
The parallel price means the exchange rate of the dollar in the market and exchanges, and not the official price set at 1132 dinars per dollar, according to the decision of the Board of Directors of the Central Bank of Iraq, which was approved by the Council of Ministers.
And the Central Bank of Iraq issued three reform packages, which it said came with the aim of addressing the rise in dollar exchange rates. LINK
The Budget Loses 18 Trillion Dinars After Reducing The Price Of The Dollar
Baghdad - Iraq today: A member of the Parliamentary Finance Committee in the Iraqi parliament, Mustafa Al-Karawi, said that the federal budget lost more than 18 trillion dinars due to the high exchange rate of the dollar.
And Al-Karawi indicated that: “In the event of a decline in the price of oil, it will affect the entire budget and will have a significant negative impact because “90%” of Iraq's imports depend on oil. And adding job grades, which exceeded the budget by approximately 21 trillion dinars, and this is one of the things we fear in preparing a budget for three consecutive years. LINK