Some Thursday News from Iraq Posted by Tishwash at TNT 10-5-2023
TNT:
Tishwash: “The dollar is out of control.” What will happen in Iraq’s banks on Sunday?
Rueters
An informed banking source in Baghdad expected that next Sunday will be an “unusual day” in all Iraqi banks, and may witness unprecedented overcrowding and crowding at cash withdrawal windows, after a dramatic statement by an official from the Central Bank to Reuters, that withdrawing the dollar in cash will stop as of Early next year, in an effort by the government to limit transactions in dollars to the maximum extent, coinciding with approximately one year since the start of American strictness in transferring money to Iraq.
The banking source in an interview:
The statement of the remittance official at the Central Bank led to a crisis within the bank, and we expect this to affect bank customers.
I expect that customers will rush to the banks on Sunday morning to withdraw their balances in dollars, because things have gotten out of control, especially since the Treasury Department and the US Federal Reserve have not agreed to deliver the dollar in cash to Iraq since last February.
The most affected will be those who depend on periodic external transfers that reach them through Iraqi banks, such as salaries, rents, etc., and it is better for them to look for other banks outside Iraq to receive their money. link
Tishwash: Floating the dinar.. Specialist: A disastrous step and monetary policy must be reconsidered
Amid the failure of the Central Bank of Iraq to control the exchange rate of the dinar against the dollar and the continued smuggling of hard currency out of the country, calls are appearing here and there to float the Iraqi dinar.
In this regard, Hammam Al-Shamaa, professor of economics at the University of Baghdad, says, “If the Iraqi dinar is floated, it is possible that the price of one dollar will reach more than 10 thousand dinars, and this price will not serve the Iraqi economy and will burden the citizens.”
Al-Shamaa added in a press interview seen by “Taqaddam” that “Iraq is considered one of the ranks of the Gulf countries as it is an oil country and has great potential for hard currency, and therefore flotation does not serve the Iraqi economy,” indicating that “flotation serves the economies of poor countries.”
Al-Shamaa warned that “taking such a step will lead to the death of the Iraqi people from hunger, especially since Iraq is a country that, despite its enormous natural wealth, is an unproductive country,” pointing out that “the agricultural sector is declining and the industry is backward, as there are no productive sectors that can provide food.” “For the people.”
He pointed out that “the government has begun to take measures that lead to an increase in the dinar’s exchange rate, including delaying government spending,” calling for “a reconsideration of monetary policy in Iraq and assigning the task to those who lead it efficiently, professionally, and with knowledge, and not by bidding and searching for wealth creation and fundraising. link
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Tishwash: this was in Iraq's news
China and Brazil carry out a trade transaction in the national currency of both countries
For the first time in their history, China and Brazil completed a trade transaction in the national currency of both countries.
The commercial operation was the export of 43 boxes of pulp from El Dorado Brazil, which were shipped in August from the Brazilian port of Santos to the port of Qingdao in China. The financial transactions continued throughout the following month and ended in Brazilian currency on September 28.
The company had agreed for a Chinese import company to adopt the yuan as its nominal contract currency in August and identified the Brazilian central bank as a recipient bank to test the transaction settlement process. The bank received a deferred payment letter of credit in Chinese renminbi (yuan) issued by the importing company, and then notified the Brazilian company after completing the review of shipping documents and letters of credit. This trade transaction came in the wake of the signing of a memorandum of understanding on cooperation between the two governments to enhance trade in the local currency of both countries in April.
During his participation in the plenary session of the International Financial Security Olympiad, Russian President Vladimir Putin confirmed that the world is gradually getting rid of financial slavery to the West. He stressed the necessity of developing a new financial transactions system suitable for a multipolar world. link
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Tishwash: Putin: The Sudanese visit to Moscow will be fruitful and come at the right time
Russian President Vladimir Putin welcomed the upcoming visit of Prime Minister Muhammad Shiaa Al-Sudani to Russia.
Putin said in a press statement that he would discuss with the Sudanese "security in the region and inside Iraq," stressing his "confidence that the visit will be fruitful and come at the right time."
A government source and another informed person told Reuters yesterday that the Sudanese will go to Moscow to meet with Russian President Vladimir Putin on October 10 and 11 {next week}.
The government source stated that Al-Sudani will leave Iraq on October 9 and will meet with Putin on October 10, and they will hold working meetings on October 11.
Local media said that Al-Sudani will go to Moscow to discuss cooperation between the two countries in the economic and political fields. link
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Tishwash: The Bank of England pledges to support the efforts of the Central Bank of Iraq to achieve financial stability in Iraq
The Bank of England pledged to strengthen cooperation with the Central Bank of Iraq and support its continued efforts for economic growth and financial stability in Iraq.
The Iraqi embassy in London stated in a statement, “Deputy Governor of the Bank of England, Dave Ramsen, received in the bank building his Iraqi counterpart, Deputy Governor of the Central Bank of Iraq, Ammar Hamad, and in the presence of representatives of the Iraqi embassy, Counselor Ahmed Muhammad Khaled and First Secretary Ali Al-Khair Allah, and from the British side, Ben Norman is Deputy Executive Director of the Center for Central Banking Studies (CCBS) at the Bank of England, and Mohammed Al-Masari is Development Policy Advisor to the UK Embassy in Baghdad.
The statement added, “During the meeting, the following was discussed:
- Deposits of the Central Bank of Iraq, where the Deputy Governor of the Bank, Ammar Hamad, provided valuable insights into the size of the Central Bank of Iraq’s deposits with the Bank of England, stressing the importance of this financial cooperation.”
- Building the capabilities of Central Bank employees: The two sides stressed the importance of strengthening the capabilities of the employees of the Central Bank of Iraq, stressing their commitment to enhancing the skills and expertise of employees in the Central Bank.
- British banks in Iraq: The meeting also focused on encouraging British banks to participate more in Iraq, with the aim of strengthening financial ties between the two countries.
According to the statement, Ramsen emphasized “the historical relationship between the two institutions and the long-term relations between the United Kingdom and Iraq,” stressing “the Bank of England’s commitment to strengthening this partnership.”
The statement continued, "This meeting represents an important step towards strengthening economic and financial relations between the United Kingdom and Iraq. The Bank of England pledged to strengthen cooperation with the Central Bank of Iraq and support its continued efforts for economic growth and financial stability in Iraq link
Tishwash: The latest World Bank report talks about growth in the economies of the Gulf countries
The World Bank said today, Thursday, in its latest report on economic developments for the Middle East and North Africa region, that the real gross domestic product (GDP) of the United Arab Emirates will grow by 3.4% at the end of the current year 2023, rising to 3.7% in the next year 2024.
The bank expects the UAE's real GDP per capita to grow by 3.4% in 2023, with this growth rising to 3.7% next year, 2024.
The report indicated that the current account balance in the UAE will rise to 12.4% in 2023 and 11.8% in 2024, and that the UAE will achieve a surplus in the public finance balance by 5.2% in 2023, and by 4.6% in 2024.
The World Bank report estimated the growth of the economies of the Gulf Cooperation Council countries at 1% in 2023, rising to 3.6% next year.
He pointed out that the economy of the Kingdom of Saudi Arabia will grow by 4.1% in 2024, while the economy of Kuwait will grow by 0.8% in 2023, rising to 2.6% in 2024.
According to the report, the Qatari economy is expected to grow by 2.8% in 2023, and by 2.5% in 2024, while the Sultanate of Oman’s economy will grow by about 1.4% in 2023, rising to 2.7% in 2024, while Bahrain’s economy is expected to grow by 2.8% in 2023, rising. To 3.3% in 2024. link