Thursday Morning Iraq Economic News Highlights 8-10-23

The Dollar Crisis In Iraq.. Learn About The Dangers Of The Parallel Market On The Dinar

Economy  2023-08-10 | Source:  Alsumaria News  2,097 views  Alsumaria News - Economics Today, Thursday, August 10, 2023, economist Nabil Al-Marsoumi revealed the dangers of the parallel market on the Iraqi dinar, at a time when the central Al-Kifah and Al-Harithiya stock exchanges in the capital, Baghdad, recorded an exchange rate of 152,000 Iraqi dinars against 100 US dollars.

Al-Marsoumi said in a post titled "The Risks of the Parallel Market," followed by Alsumaria News, that "the widening gap between the official and parallel prices of the dollar against the dinar weakens confidence in the Iraqi dinar, reduces incentives to deposit money in Iraqi banks, and pushes savers to exchange the Iraqi dinar for dollars and gold, or by investing in the purchase of land." And real estate leads to a rise in prices and a decrease in the real value or the purchasing power of the dinar.

Today, the two central stock exchanges of Al-Kifah and Al-Harithiya in Baghdad recorded an exchange rate of 152,000 Iraqi dinars for 100 US dollars. As for the dollar prices in exchange shops in the local markets in Baghdad, they decreased, as the selling price reached 153,000 dinars, while the purchase price reached 151,000 dinars for every 100 dollars.

And the Central Bank of Iraq  decided, earlier, to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of purchasing a dollar from the Ministry of Finance  reached 1,300 dinars per dollar and sold it at (1310) dinars per dollar to banks through the electronic platform, and sold at (1320) dinars per dollar. Dollars from banks and non-bank financial institutions to the final beneficiary.   LINK

Dollar Exchange Rates In The Iraqi Market Today

Economy  2023-08-10 | 5,567 views  Alsumaria News – Economy  Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in the Iraqi local markets for Thursday, August 10, 2023.

And the two central stock exchanges of Al-Kifah and Al-Harithiya in Baghdad recorded this morning, an exchange rate of 152,000 Iraqi dinars against 100 US dollars. As for the dollar prices in exchange shops in the local markets in Baghdad, they decreased, as the selling price reached 153,000 dinars, while the purchase price reached 151,000 dinars for every 100. dollar.

And the Central Bank of Iraq  decided, earlier, to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of purchasing a dollar from the Ministry of Finance  reached 1,300 dinars per dollar and sold it at (1310) dinars per dollar to banks through the electronic platform, and sold at (1320) dinars per dollar. dollars from banks and non-bank financial institutions to the final beneficiary.   LINK

The Ministry Of Finance Publishes The Amended Tables Related To Article (76) Of The Budget

Economy |  09/08/2023   Baghdad - Mawazine News  The Ministry of Finance announced the publication of the amended tables for Article (76) of the Federal General Budget Law.

And the ministry stated, in a statement, which Mawazine News received a copy of, that "according to the directives of the Minister of Finance, Taif Sami, the ministry published the amended schedules related to Article (76) of the Federal General Budget Law No. (13) for the year 2023."

The tables can be viewed via the following link:  https://t.me/mawazin/23548

https://www.mawazin.net/Details.aspx?jimare=232945

Conditions That Caused An Internal Crisis.. What Is The Importance Of Iraq Joining The Global Financial System?

Baghdad today – Baghdad  Today, Wednesday (August 9, 2023), the Parliamentary Finance Committee reviewed the benefits and importance of Iraq joining the global financial system, especially with Iraq beginning to implement the requirements and conditions required for that, which caused a crisis in the dollar market prices.

Committee member Jamal Cougar told "Baghdad Today" that "there is a real importance for Iraq's accession to the international financial system, as Iraq still needs to develop its financial and banking system in order to keep pace with developments."

And Cougar indicated that "Iraq's accession to the international financial system will enhance the world's confidence in the Iraqi financial and banking system, and this matter opens a new door for foreign investment in Iraq. Iraq needs the world's confidence in its financial and banking system and removes any suspicions about it."

It is noteworthy that the application of the Swift system, restrictions on the dollar, combating money laundering and terrorist financing, and other steps that Iraq began to initiate two years ago, which caused a crisis in exchange rates, are all requirements for joining the global financial system.

The Minister of Finance, Taif Sami, had discussed a few days ago with the British ambassador to Iraq, Iraq's steps to engage in the international financial system and the most prominent measures and reforms that the government is taking in the field of the banking and financial sector, in a way that contributes to enhancing economic development in Iraq.   LINK

The Senior Iraqi Delegation In Washington.. "Two Birds With One Stone".

Baghdad today - follow-up  The visit of Iraqi Defense Minister Thabet al-Abbasi, accompanied by senior military leaders, to Washington is the highest visit by Iraqi officials to the United States since the formation of the government of Prime Minister Muhammad Shia al-Sudani in October of last year, a step that could pave the way for further development in relations between the two countries. According to observers .

Al-Abbasi arrived in Washington last Monday, at the head of a high-ranking delegation that included the Commander of the Counter-Terrorism Service, Lieutenant General Abd al-Wahhab al-Saadi, Chief of Staff of the Army, Lieutenant General of Special Forces Abd al-Amir Rashid Yarallah, Deputy Commander of Joint Operations Lieutenant General Qais al-Muhammadawi and other senior officials .

Al-Abbasi and his accompanying delegation met with many US military officials, led by Secretary of Defense Lloyd Austin and his assistant Celeste Wonder, and US representatives from the Joint Chiefs of Staff, the Defense Security Cooperation Agency, the US Central Command, the State Department and the National Security Council .

In a joint statement issued on Tuesday, the two sides affirmed their joint commitment to continue bilateral military cooperation in all fields, especially combating ISIS, working to prevent the return of its activity, and training the Iraqi military forces .

The two sides also stressed their commitment to developing Iraq's security and defense capabilities, and they consulted on opportunities to expand Iraqi participation in the military maneuvers led by the US Central Command .

The statement renewed Washington's support for Iraq's sovereignty and security, and stressed that the US forces are present in Iraq at the invitation of the Iraqi government only to support the Iraqi security forces in their war against ISIS .

The Government of Iraq reaffirmed its commitment to protecting the personnel and advisors of the United States and the international coalition, convoys and diplomatic facilities, according to the joint statement .

Commenting on the visit, writer and political analyst Aqil Abbas indicates that it falls within the framework of preparation for the next session related to the strategic framework agreement, whose "date may be announced soon ."

Abbas, who resides in the United States, adds that "the only two aspects that work well in the strategic framework agreement are the security and energy file and the American companies operating in Iraq ."

Abbas asserts that "usually there are initial meetings related to the strategic framework agreement, prior to reaching the summit meeting between the two parties," and it is likely that "this meeting will include US President Joe Biden and Prime Minister Muhammad Shia'a al-Sudani. "

According to a report published by the "Voice of America" ​​website,  Washington and Baghdad hope to take decisive steps to expand their partnership from one focused almost entirely on confronting ISIS to one that some US officials describe as a full-fledged government alliance .

After meeting Abbasi last Monday, Austin said the United States "realizes that its military mission will change in Iraq as local forces build their capabilities," describing the talks as part of "the next step in our strategic defense partnership." 

On the other hand, Abbasi stated that it is important to "preserve the victories" that the Iraqi and American forces have already achieved, "as well as to strengthen relations and cooperation with the United States .

The United States has about 2,500 soldiers in Iraq tasked with advising and assisting the Iraqi security forces as they pursue the remnants of ISIS .

Before Monday's meeting between Austin and Abbasi, US Deputy Assistant Secretary of Defense for the Middle East Dana Stroul said that her country is interested in establishing a permanent defense relationship with Iraq within a strategic partnership for many years to come .

US State Department officials say this includes focusing more on the Iraqi economy, noting that some US companies such as "Cinnabon" and "Burger King" have already opened stores in Baghdad .

And the "Voice of America" ​​website quotes a State Department official, who spoke on condition of anonymity, saying, "This is a very strong symbol and a sign that the Iraqis want American products and want American business, even if it is in the form of concessions. "

"We would like to continue to expand our involvement in the field of energy, particularly in helping Iraqis build greater self-sufficiency in their energy sector," the official added, stressing the focus on finding ways to "preserve the employment of Iraqi youth. "

US officials say they are also encouraged by Iraqi progress in fighting corruption, pointing to improvements in the banking sector in particular, although Washington's decision to blacklist 14 Iraqi banks for allegedly laundering money on behalf of Iran sparked protests last month .

American officials are also aware that there is competition from other countries that want to increase security cooperation with Iraq, such as China, Russia and Turkey .

"This is why this dialogue is so important," Stroul said. "We have to work with the Iraqis on a comprehensive picture to take advantage of those defense and security resources ."

Abbas asserts that the arrival of a delegation that includes the Minister of Defense, the Commander of the Anti-Terrorism Force and the Chief of Staff is "evidence of the US satisfaction with the file of relations with Baghdad and that cooperation between the two parties is progressing well ."

Abbas pointed out that the talk about the existence of "political objections to Al-Sudani's visit to Washington is incorrect ."

He added, "Iraq tried more than once to ensure the realization of this visit, but the American side informed them clearly that the issue is only related to the president's schedule, which is currently preoccupied with Ukraine and other files ."

And he believes that "the American assessment of the Sudanese government tends in general to be positive, as they see that it has adhered to its pledge not to target American forces in Iraq, which no previous Iraqi government has been able to abide by. "

It is believed that "this matter is essential for the Americans, who believe that Al-Sudani is making an effort to reform many files, especially with regard to financial issues and energy dependence on Iran."  LINK