Iraq Economic News and Points To Ponder Wednesday Evening 7-17-24
Through The Dollar And The Yuan... The US Treasury Continues To Impose Its Guardianship Over The Iraqi Economy
July 16 Information/report.. The Parliamentary Finance Committee indicated earlier that it would demand that the Central Bank address the issue of the exchange rate and the flow of foreign trade through the use of the currency basket diversification system, so that there would be more options for the Central Bank and Iraqi merchants.
The currency basket system is a monetary system used by the central banks of countries to determine the exchange rate of their local currencies.
The system is based on a group of currencies chosen by the central bank of each country, and the basket consists of a group of the most powerful banknotes affecting the global economy. In an “unsuccessful” step, as experts in economic affairs describe it, the Central Bank of Iraq stopped dealing in the Chinese yuan after the US Federal Reserve accused Iraq of “inflating remittances.”
While economic experts warned of the effects of this decision on the local market and its cause of an increase in the exchange rate of the US dollar and an increase in exchange rates.
Inflation, which has negative repercussions on the economic situation of the Iraqi family, presented 3 solutions to the Central Bank of Iraq to continue the flow of remittances to China.
Through the dollar and the yuan... the US Treasury continues to impose its guardianship over the Iraqi economy Clip_image004
In the latest Iraqi government move to stop dealing in the Chinese yuan, informed sources revealed to Shafaq News Agency, yesterday, Saturday, that the Governor of the Central Bank of Iraq, Ali Al-Alaq, is making an officially unannounced visit to the United States of America to discuss with officials in Washington regarding the US Federal Reserve’s decision to stop dealing in Baghdad. In Chinese yuan.
The Central Bank of Iraq had previously strengthened its assets denominated in the yuan through the Singapore Development Bank to finance Iraqi trade and imports with China by about 12 billion dollars annually,
but the US Federal Reserve’s policy is still putting the stick in the wheel of liberating the Iraqi dinar and achieving gains at the expense of the dollar exchange rate, Therefore,
when the US Federal Reserve saw that the Chinese yuan was being used in foreign transfers,
it quickly issued a decision to stop transfers under the pretext that there were suspicions in some transfers in the Chinese yuan.
A member of the Parliamentary Finance Committee, Representative Moeen Al-Kadhimi, described the
US Federal Reserve’s decision to stop remittances in the Chinese yuan as “arbitrary” against the Iraqi economy. Al-Kadhimi said in a statement to the Al-Ma’louma Agency,
“The decision to stop transfers in the Chinese yuan was issued by the US Federal Bank due to its claim that there were suspicions about some transfers in the Chinese yuan.” He pointed out that
"the Central Bank of Iraq has contracted with an international company to evaluate and monitor remittances, and this company is a supplier of acceptance and trust for the US Federal Reserve."
He pointed out that "after a short period, the Central Bank of Iraq will resume transferring remittances in Chinese yuan to Iraqi merchants and in general," noting that "these US Federal Reserve measures are considered arbitrary against Iraq and its national economy."
For his part, commenting on this decision, the economic expert, Zia Al-Mohsen, confirmed that
“stopping dealing in the Chinese yuan by the Central Bank of Iraq is an unsuccessful step if we take into account that trade dealing with China exceeds 65 billion dollars.”
Through the dollar and the yuan... the US Treasury continues to impose its guardianship over the Iraqi economy Clip_image006
Al-Mohsen said in a statement to the Maalouma Agency,
“This decision will have a negative impact on the local market, and the demand for the dollar will increase, which means an increase in the exchange rate of the US dollar in the local market, which will increase inflation rates, which will have negative effects on The economic situation of the Iraqi family.
The Central Bank of Iraq stopped trading in the Chinese yuan after the US Federal Reserve accused Iraq of "inflating remittances."
During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on private banks and banning the dollar under many pretexts, which in one way or another led to a severe financial crisis in the local markets.
It is noteworthy that the Central Bank of Iraq also moved to strengthen its assets in the UAE dirham and negotiated an increase in its assets denominated in euros to finance trade with the European Union. Iraq also began opening bank accounts in the Indian rupee for a number of Iraqi banks. https://almaalomah.me/news/70483/economy/عبر-الدولار-واليوان-الخزانة-الأمريكية-تواصل-فرض-وصايتها-على
A Former Deputy Reveals The “Hidden”... These Are The US Federal Reserve’s Restrictions
Information/private.. On Wednesday, former member of the Parliamentary Finance Committee, Abdul Hadi Al-Saadawi, revealed the US Federal Reserve’s restrictions on the Iraqi Central Bank. Al-Saadawi said in an interview with Al-Maalouma,
“The US Federal Reserve imposes restrictions on the Central Bank of Iraq, which is a reaction to the demand to remove American forces from the country.” He added,
"America is adopting an approach with specific paths in Iraq, which is to give more leeway to the work of foreign banks at the expense of Iraqi banks."
He pointed out "the necessity of reviewing the activities of foreign banks in the country and seeking to address corruption in local banks and uncovering fake banking windows that engage in money laundering."
is noteworthy that the dollar exchange rates in the Iraqi markets witnessed a state of instability in the past days in terms of rising and then falling again. https://almaalomah.me/news/70595/politics/نائب-سابق-يكشف-المستور-هذه-قيود-الفيدرالي-الامريكي
Our Financial And Banking System And The Global Economy
Economical 07/16/2024 Samir Al-Nusairi Most of the countries of the world have been suffering from successive economic crises since 2020 until the present.
They are the harshest and most harmful to the countries’ economies than the previous crises that swept the world previously, which began with the lockdown crisis as a result of the Corona pandemic and the (stagflation) crisis due to food shortages, high prices, the Russian-Ukrainian war, and economic conflicts between... America and China, most recently the Zionist war on Gaza and the occupied Palestinian territories, expectations of a new aggression against Lebanon, the struggle to control oil prices, and the attempts of the affected countries to find plans and deals to control this rise that has occurred over the past years.
From our follow-up, monitoring and analysis of the movement of the global economy, we notice that most countries in the world have increased inflation rates and exceeded one rank, and economic growth rates have decreased, especially regional countries and most countries with major economies and even emerging countries have tried to form new axes, poles and economic blocs and conclude agreements between themselves and other countries for transactions.
Trade and finance outside the Group of Seven major countries, such as the BRICS bloc.
The central banks in most countries have taken difficult decisions in order to control the prices of their local currencies from falling and maintain their foreign currency reserves at safe rates, thus reducing stagflation and maintaining relatively stable prices and economic growth balanced with economic conditions.
Currently prevailing by raising interest rates at a rate that is commensurate with its economic situation.
Therefore, as far as the matter is concerned with Iraq’s economic situation, although the reports of the World Bank and the International Monetary Fund to evaluate the Iraqi economy for the current year indicate that the inflation rate did not exceed 3 percent, and according to what the
Central Bank announced, it is better than the inflation rates in the regional and neighboring countries and that the growth rate in output The gross domestic product for this year is expected to be 6 percent, and Iraq still maintains a good foreign exchange reserve to cover its imports and cover its local currency in circulation.
However, it is a one-sided economy and
depends on oil revenues, and
its financial and banking sector is weak and suffers from sanctions and restrictions on the use of the US dollar in foreign banking transactions, and still
Its credit rating is within limits that are internationally classified as unstable and in the absence of...
New policy measures: The public finance deficit is expected to reach 7.6 percent in 2024 and expand further after that with the expected decline in oil prices in the medium term.
As a result, public debt will almost double from 44 percent in 2023 to 86 percent by 2029.
The sector also The real sector suffers from many problems that prevent it from achieving the necessary revenues to reduce the share of oil revenues in public budgets.
This means that the deficit in the balance of payments and the deficit in the trade balance are prevalent despite the fact that the government, finance and central bank are making great efforts to rebuild a solid and solid banking sector because
without the existence of a sector With developed banking, it is not possible to build a sound national economy.
The inherited and complex problem is the weak compliance of the Iraqi financial and banking sector with international standards, and the
foreign trade policy is unclear despite the measures taken by the Central Bank to regulate trade financing and the accreditation of some reputable foreign registered banks, but the
presence of informal border crossings and intra-trade is not Legitimate speculators in the foreign exchange trading market have led to fluctuations in exchange rates from time to time.
For the purpose of the Central Bank exercising its role in
reducing inflation,
controlling the general level of prices,
maintaining the dinar exchange rate within its target limits,
controlling the interest rate, and
maintaining its foreign cash reserves within the required rates, as well as
controlling the money supply, and certainly
all of these aspects are within the goals and interests of the Central Bank.
Its Board of Directors during the next stage and for the purpose of avoiding the harm that currently threatens the global economy.
This requires taking bold steps, as follows:
First - reconsider the structure and presentation of the general budget and determine the contribution percentages of the agricultural, industrial, tourism sectors and non-oil revenues at no less than 30 percent during the coming years until 2030.
The total expenditures must not exceed the total revenues in any case and the deficit must be zero.
Second - Adopting agricultural, industrial and commercial policies that are consistent with the trend to support and support the private sector and stimulate and encourage it to contribute to sustainable development projects and move to market leadership in 2030.
Third - Recreating a new strategy for the Central Bank for the years (27-2030) in the field of
monetary policy applications,
enhancing financial inclusion,
controlling exchange rate stability,
enhancing compliance with international standards,
comprehensive application of digital transformation in the banking sector, and
transforming Iraqi government banks into mixed joint-stock companies
in accordance with government procedures in this regard. Relevant and internationally classified.
It is managed in accordance with
modern banking techniques,
lifting sanctions on private banks,
developing their work in accordance with international standards,
not allowing the weak ones to remain working within the banking market, and
adopting the principle of competing for whichever is better and serving sustainable development.
https://alsabaah.iq/99579-.html
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