Thursday Morning Iraq Economic News Highlights 2-16-23

"There Is No Dollar Except In The Alleys, And The Price Is Black": Speculation That Will "Raise" Food Prices

economy |Today, 13:51    Baghdad today – Diyala   The head of the Diyala Governorate Chamber of Commerce, Muhammad Mulla Jawad, revealed today, Thursday, that the sale of the dollar in the exchange offices in the province has stopped and that it is satisfied with buying according to the official price, "then selling it at black market prices in the alleys to avoid censorship."

Mulla Jawad told (Baghdad Today) that "all exchange offices in Diyala never sell dollars, but they buy them at the central bank's rate of 130,000 dinars for every 100 dollars."

He added, "Obtaining dollars has become somewhat complicated, and sales to citizens take place in the alleys at prices ranging between 152-154 thousand dinars per 100 dollars, which makes a large difference between the selling price and the purchase price."

The head of the Chamber of Commerce in Diyala said, "These speculations occur due to the lack of sufficient liquidity to cover the daily needs of internal trade, which relies on the dollar by up to 75% to pay commercial dues."

He pointed out that this "will lead to a further rise in the prices of basic commodities, especially foodstuffs."

He pointed out, "The need for state companies specialized in importing foodstuffs to intervene by moving to the top of the leadership in importing materials, feeding the Iraqi markets, and securing the needs of merchants through selling in dinars."

He believed that "this may lead to a reduction in the demand for the dollar by up to 40% at least, thus stabilizing the prices of the currency market and ending the case of speculation."

Earlier today, the intelligence agency announced the arrest of a "currency smuggler in possession of $158,000."

Yesterday, the intelligence agency announced the arrest of 18 people on charges of manipulating exchange rates and seizing about 800 million dinars and 385 thousand dollars in their possession.

The agency closed exchange and money transfer offices that do not have licenses, and a security force launched a campaign of arrests in Ramadi against dollar traffickers.  LINK

Meeting Of The Iraqi-American Coordination Committee.. What About The Exchange Rate And Combating Money Laundering?

2023.02.16 - Baghdad - people    The Iraqi-American Coordination Committee on the strategic framework agreement discussed the challenges facing the Iraqi economy, while the American side renewed its support for efforts to protect the Iraqi banking system.    

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And a joint statement by the committee, which “NAS” received a copy of, stated that “the two sides discussed the challenges facing the Iraqi economy, including the parallel exchange rate markets, and the United States welcomed the efforts of the Iraqi government to enact economic reforms, as well as reforms in the field of monetary policy, and modernizing the sector.” Banking and financial, combating corruption, and preventing manipulation of the financial system - actions that will help enhance Iraq's economic prospects, including strengthening financial and exchange markets.

The statement added, "The American delegation renewed its support for Iraq's continuous efforts to build technical capabilities and implement international standards to protect the banking system from financial crimes, money laundering, and terrorist financing."

The two sides also affirmed, according to the statement, "the determination to continue working together to modernize the financial system in Iraq in order to improve the conditions of the Iraqi people."

And the statement continued, "The American and Iraqi delegations affirmed the convergence of views that pursuing an ambitious agenda for energy independence is necessary to achieve maximum economic prosperity for Iraq and protect its sovereignty. https://www.nasnews.com/view.php?cat=102164

Bilateral Talks: America Is Rushing To Impose Trusteeship On Iraq In Terms Of Energy, Dollars And Technology

February 16, 2023   Baghdad / Obelisk: The Iraqi-American statement, after the end of bilateral talks in Washington, is devoid of postponing US restrictions on the dollar exchange markets in Iraq, while focusing on achieving energy independence in reference to the dimensions of the Iranian partnership, as well as an American willingness to link the Iraqi technological system with American mechanisms. It means absolute domination of the political and economic tracks in Iraq.

In the statement, Washington affirmed that it would help Iraq achieve its independence in the field of energy and invest associated gas with the aim of achieving its liberation from Iranian gas, which it currently needs to provide electric power to its citizens.

Also, private US companies in the field of technology will have a strong entry to face the energy challenges in Iraq.

The American side did not respond to Washington's request to postpone the recent banking restrictions imposed on Baghdad, but it welcomed the Iraqi monetary reforms.

The American Heritage organization, which is close to the White House, reported that the Iraqi delegation in Washington, after facing its requests for a period of exemption from US restrictions on the transfer of dollars to Iraq, retracted its previous demands and moved towards demanding a “relaxation” of the current restrictions, instead of canceling them temporarily.

Reuters had reported that US sanctions on Iraqi commercial banks aim to increase pressure on Iran's nuclear program and that America is using strict restrictions on the dollar in Iraq as warning messages to Al-Sudani to keep abreast of US interests.

The observer of Iraqi affairs, Ali al-Rubaie, believes that what is happening is an American tutelage. Despite Iraq’s exit from Chapter VII, according to Resolution 2621, which stipulates the termination of the mandate of the United Nations Compensation Commission and the lifting of all financial restrictions, the Central Bank of Iraq cannot withdraw money from American banks.

The statement of the US-Iraqi Higher Coordination Committee stated that “both Iraqi Deputy Prime Minister and Foreign Minister Fouad Hussein and US Secretary of State Anthony Blinken headed his country’s delegation at a meeting of the Higher Coordination Committee that was held in accordance with the strategic framework agreement signed between them in 2008. Where the two delegations stressed their determination Deepening the strategic relationship between the two countries across a full range of bilateral issues for the sake of the national interests of both countries and their common interests in regional stability.

The joint statement considered this meeting as the first for the Higher Coordination Committee to focus on economic cooperation, energy sector development, and climate change, which is a sign of a mature strategic partnership under the Strategic Framework Agreement.

The Iraqi delegation included high-level representatives of the ministries of oil, finance and foreign affairs, while the American delegation included representatives of the ministries of foreign affairs, treasury, energy and commerce, the global anti-corruption coordinator and the coordinator of the National Security Council for the Middle East.

The joint statement indicated that the two sides discussed the challenges facing the Iraqi economy, including the parallel exchange rate markets, where the United States welcomed the efforts of the Iraqi government to enact economic reforms, as well as reforms in the field of monetary policy, modernizing the banking and financial sector, combating corruption, and preventing manipulation of the financial system. - Measures that will help enhance Iraq's economic prospects, including strengthening the financial and exchange markets.

The US delegation affirmed its support for Iraq's continuous efforts to build technical capabilities and implement international standards to protect the banking system from financial crimes, money laundering and terrorist financing. They also affirmed their determination to continue working together to modernize the financial system in Iraq in order to improve the conditions of the Iraqi people.

The American and Iraqi delegations confirmed the convergence of views that pursuing an ambitious agenda for energy independence is necessary to achieve maximum economic prosperity for Iraq and protect its sovereignty.

The two delegations also agreed that Iraq has a historic opportunity to invest in energy infrastructure initiatives designed to improve electricity services for the Iraqi people, secure energy self-sufficiency for Iraq, and mitigate environmental damage to both the global climate and Iraqi public health.

Providing natural gas and modernizing the electrical infrastructure

. To this end, the two sides decided to accelerate efforts to capture the flared gas, modernize the infrastructure for natural gas distribution, reduce methane leakage, connect regionally to the Iraqi electricity grid, modernize the electricity infrastructure in Iraq, and explore renewable energy opportunities.

The US delegation praised Iraq's commitment to regional electrical interconnection projects with Jordan, Saudi Arabia and the GCC Electricity Interconnection Authority. https://almasalah.com/archives/42259

Money and business    Economy News-Baghdad  On Thursday, the weekly trading indicators of the Iraqi Stock Exchange showed an increase of 0.72%.

The number of shares traded during this week amounted to more than (28) billion shares, with a value of more than (36) billion dinars.

The trading index in the market closed for the first session of the week at (592.89) points, while the index closed at the end of the week at (597.18) points, achieving an increase of (0.72%) from its closing at the beginning of the session.

During the week, more than (2400) buying and selling contracts were executed on the shares of the companies listed in the market.    https://economy-news.net/content.php?id=32504

Officials Embezzle 3 Billion Dinars Through Instruments From The Industrial Bank[/Size]

February 15, 2023   Baghdad / Obelisk: The Integrity Commission announced the implementation of an arrest warrant against suspects who embezzled nearly 3.5 billion dinars.

And the Investigation Department stated, in a statement received by Al-Masalla, that the staff of the Federal Integrity Commission managed to implement an arrest warrant against an official in the Industrial Bank and an employee in the State Real Estate Department on charges of embezzling approximately 3.4 billion dinars.

She added that a team from the Commission's Investigation Directorate in Baghdad managed to implement the arrest warrant issued against a treasurer in the Industrial Bank and an employee in the State Real Estate Department for embezzling an amount of 3,428,000,000 billion Iraqi dinars.

She explained that the defendants embezzled the amount according to 33 instruments issued by the Industrial Bank to the order of the State Real Estate Department, noting that the instruments relate to a public auction of real estate belonging to the Ministry of Finance, where the team was able to seize the instruments after the treasurer admitted that he was older - in agreement with a representative of the Department. State real estate - by issuing no need for sukuk, as a result of which these amounts are embezzled.

The department noted that a formal record of the operation had been organized and presented, along with the defendants and the seized exhibits, to the judge of the Rusafa Investigation Court, which is competent to hear integrity cases. Who decided to arrest them in accordance with the provisions of Article 315 of the Iraqi Penal Code, and after approving the statements of the accused, arrest warrants were issued against other suspects.    https://almasalah.com/archives/42197

Iraq Confirms US Approval To Help Modernize The Iraqi Financial System

byMoahmmad EditorIraq news   The joint statement of the US-Iraqi Higher Coordination Committee affirmed that the two countries will continue to “work together to modernize the financial system in Iraq in order to improve the conditions of the Iraqi people.”

The statement issued by Iraq and the United States stated that the two sides discussed “the challenges facing the Iraqi economy, including the parallel exchange rate markets.”

He pointed out that the Iraqi Deputy Prime Minister and Minister of Foreign Affairs, Fouad Hussein, headed the Iraqi delegation, while US Secretary of State Anthony Blinken headed the US delegation in the supreme coordination meeting, in accordance with the 2008 Strategic Framework Agreement.

The statement pointed out that "the meeting is the first meeting of the Higher Coordination Committee to focus on economic cooperation, energy sector development, and climate change, which is a sign of a mature strategic partnership under the Strategic Framework Agreement."

The United States welcomed "the positive developments in relations between the Iraqi federal government and the Kurdistan Regional Government and the ongoing negotiations regarding the federal budget for 2023 and the hydrocarbon law," according to the statement.

Below is the text of the statement:

“The Iraqi Deputy Prime Minister and Minister of Foreign Affairs, Dr. Fuad Hussein, headed the delegation of the Republic of Iraq, and the US Secretary of State Anthony J. Blinken, the delegation of the United States, held a meeting of the Higher Coordination Committee, in accordance with the 2008 Strategic Framework Agreement for the relationship of friendship and cooperation between the United States of America and the Republic of Iraq.

The two delegations renewed their determination to deepen the strategic relationship between the two countries across a full range of bilateral issues, for the sake of the national interests of both countries, and their common interests in regional stability.

This meeting is the first meeting of the Supreme Coordination Committee focusing on economic cooperation, energy sector development, and climate change, which is a sign of a mature strategic partnership under the Strategic Framework Agreement.

The Iraqi delegation included high-level representatives from the House of Representatives, the Central Bank, the Ministry of Foreign Affairs, and the Ministry of Foreign Affairs. Oil, the Ministry of Planning, the Ministry of Finance, the Ministry of Electricity, the Prime Minister's Office, Iraq's Climate Envoy, and the Kurdistan Regional Government.

In addition to the US State Department, the US delegation included USAID President Samantha Power, Special Presidential Envoy for Climate Change John Kerry, Deputy Secretary of the Treasury Wally Adeyo, Special Presidential Coordinator for Global Energy and Infrastructure Amos Hochstein, Global Anti-Corruption Coordinator Richard Nephew, Coordinator for Global Energy and Infrastructure Middle East National Security Council Brett McGurk, and senior officials from the Department of State, Treasury, Energy, and Commerce.

The two sides discussed the challenges facing the Iraqi economy, including the parallel exchange rate markets.

The United States welcomed the Iraqi government's efforts to enact economic reforms, as well as reforms in the field of monetary policy, modernizing the banking and financial sector, combating corruption, and preventing manipulation of the financial system—measures that would help enhance Iraq's economic prospects, including strengthening financial and financial markets. Exchange.

The US delegation renewed its support for Iraq's continuous efforts to build technical capabilities and implement international standards to protect the banking system from financial crimes, money laundering and terrorist financing.

The two sides also affirmed their determination to continue working together to modernize the financial system in Iraq in order to improve the conditions of the Iraqi people.

The American and Iraqi delegations confirmed the convergence of views that pursuing an ambitious agenda for energy independence is necessary to achieve maximum economic prosperity for Iraq and protect its sovereignty. Both delegations agreed that Iraq has a historic opportunity to invest in energy infrastructure initiatives designed to improve electricity services for the Iraqi people, secure energy self-sufficiency for Iraq, and mitigate environmental damage to both the global climate and Iraqi public health.

To this end, the two sides decided to accelerate efforts to capture the flared gas, modernize the infrastructure for natural gas distribution, reduce methane leakage, connect regionally to the Iraqi electricity grid, modernize Iraq's electricity infrastructure, and explore renewable energy opportunities. The American delegation praised Iraq's commitment to regional electrical interconnection projects with Jordan, the Kingdom of Saudi Arabia, and the Electricity Interconnection Authority of the Gulf Cooperation Council states.

The two countries stressed the importance of combating climate change and adapting to it, and the Iraqi delegation stated that Iraq will soon publish a comprehensive governmental strategy to combat climate change. And the United States reviewed its plan to expand climate change programs in Iraq, after it provided Iraq with more than $1.2 billion in development aid over the past five years.

The discussions also stressed the importance of the need for ambitious projects related to solar energy farms, and the establishment of a regulatory framework to attract investment in renewable energy.

The two sides also discussed the water crisis in Iraq, and the United States expressed its intention to continue its technical assistance to improve water management practices in Iraq. The United States called on Iraq to nominate experts in water management to participate in exchange programs with US leaders in this field, and the two delegations stressed the importance of benefiting from modern technologies in groundwater management and irrigation efficiency.

The United States welcomed the positive developments in relations between the Iraqi federal government and the Kurdistan Regional Government and the ongoing negotiations regarding the 2023 federal budget and the hydrocarbons law.

The United States assured the Iraqi delegation that the American private sector is the best in the field of technology and its unique ability to face the energy challenges in Iraq. The Iraqi-American Business Council at the American Chamber of Commerce hosted a round table for the Iraqi delegation with 40 American companies and industry leaders who are experts in the field of gas capture, modernization of electricity infrastructure, and renewable energy sources.

After this event, the Chamber of Commerce announced that it would lead two American trade missions to Iraq in June to explore investment opportunities.

In addition, the two delegations noted the intent of the Office of the United States Trade Representative and the Iraqi Ministry of Commerce to begin planning for the Trade and Investment Framework Agreement Council meeting in 2023.

This agreement between the United States and Iraq serves as a forum for resolving trade obstacles and promoting investment and bilateral trade opportunities between the two countries.

The US delegation announced that the US Embassy in Baghdad has gradually started providing non-immigrant visa services.

The United States and Iraq confirmed that they plan to hold meetings of joint coordination committees under the Strategic Framework Agreement, and additional meetings of the Higher Coordination Committee, to follow up on investments in the field of energy and economy, and the climate-related discussions that took place during the meetings of this Higher Coordination Committee. The American and Iraqi delegations affirmed their determination to strengthen the strategic relationship between the two countries.    https://altahreernews.com/43272/