Wednesday Morning Iraq CBI & Economy News Highlights 12-21-22
Wednesday Morning Iraq CBI & Economy News Highlights 12-21-22
For The First Time.. Dollar Cash Sales To The Iraqi Central Bank Exceed Foreign Remittances
2022-12-21 04:46 Shafaq News/ The Central Bank of Iraq's cash sales of the US dollar increased today, Wednesday, to exceed for the first time foreign transfers, with the participation of 32 banks.
Shafaq News agency reporter stated that the Central Bank sold today, during its auction for buying and selling the US dollar, 126 million 67 thousand and 350 dollars, which the bank covered at a base exchange rate of 1460 dinars per dollar.
Our correspondent added that most of the sales went, for the first time, in the form of cash sales, amounting to 63 million and 70 thousand dollars, while the rest went to strengthening balances abroad (remittances, credits) and amounted to 62 million 997 thousand and 350 dollars.
Our correspondent indicated that the number of banks that bought the cash dollar amounted to 18, while the number of banks that met requests for strengthening balances abroad reached 14, while the total number of exchange and mediation companies participating in the auction was 186 companies. LINK
For The First Time... Dollar Cash Sales To The Iraqi Central Bank Exceed Foreign Remittances
December 21, 2022 4 Views Conscious / Baghdad / follow-up Today, Wednesday, the Central Bank of Iraq's cash sales of the US dollar currency increased, exceeding for the first time foreign transfers, with the participation of 32 banks.
The reporter (Iraqi Media News Agency / INA) stated that the Central Bank sold today, during its auction for buying and selling US dollars, 126 million 67 thousand and 350 dollars, which the bank covered at a basic exchange rate of 1460 dinars per dollar .
Our correspondent added that most of the sales went, for the first time, in the form of cash sales, amounting to 63 million and 70 thousand dollars, while the rest went to strengthening balances abroad (remittances, credits) and amounted to 62 million 997 thousand and 350 dollars.
Our correspondent indicated that the number of banks that bought the cash dollar amount amounted to 18, while the number of banks that met requests for strengthening balances abroad reached 14, while the total number of exchange and mediation companies participating in the auction was 186 companies.
The Central Bank Launches A Package Of Measures To Control The Exchange Rate Of The Dollar
2022-12-19 10:14 Shafaq News/ The Central Bank of Iraq launched, on Monday, a package of measures to improve the performance of dollar-related transactions, weeks after the rise in the exchange rate of the dollar against the Iraqi dinar.
In a statement received by Shafaq News agency, the bank said, "These measures would restore the foreign currency market to its normal state."
And the bank decided, “To allow the banks participating in the foreign currency buying and selling window to buy any amounts in foreign currency and deposit them with this bank in accounts used for external transfer purposes, and to pay interest / returns on those balances according to what this bank decides.”
The bank also decided, "Facilitating the financing of private sector trade through Iraqi banks and meeting the request for foreign transfers by strengthening the balances of banks with their correspondents in other currencies in addition to the US dollar (Chinese yuan, the euro, the UAE dirham, the Jordanian dinar, and others)."
And the bank announced, “Opening outlets for selling foreign currency in government banks to the public for the purposes of travel (treatment, Hajj Umrah, study, etc.)
The statement referred to "reducing the selling price of the dollar to the beneficiary (the card holder) that he uses while traveling or paying his purchases via the Internet, to be at a price of (1465) dinars to the dollar instead of (1470) dinars to the dollar. The dollar will be sold to electronic payment companies for the above purpose at a price of (1455). ) dinars to the dollar instead of (1460) dinars to the dollar. LINK
Parliamentary Finance: Controlling The Price Of The Dollar Needs Time And New Procedures
Posted On2022-12-21 By Sotaliraq Baghdad / Firas Adnan Yesterday, Tuesday, the Finance Committee in the House of Representatives called on the central bank to take more measures to control the emergency rise in dollar exchange rates, stressing that the process takes some time, accusing speculators and political parties of exploiting the crisis to reap profits.
A member of the committee, Representative Rebwar Abdul Rahman, said, “A meeting was held between the Central Bank of Iraq and private banks yesterday; To discuss the issue of the repercussions of the rise in dollar prices in the local markets and to control it.
And Abdul Rahman continued, "The results have not reached us to the committee until now," explaining that "the central bank is responsible for pumping larger amounts of hard currency to control the dollar."
He pointed out, "A measure was taken last week to increase the sale of the dollar in exchange for Iraqi cash, but this did not help to contain the crisis."
Abdel Rahman pointed out, "There is a kind of deficit in the needs of remittances," stressing that "the cumulative escalation in the exchange rate occurred after the shortage that the market suffered from in the dollar."
He noted that "everyone is waiting for the central bank to address this crisis," expressing his belief that "the central bank needs some time in order to fully control exchange rates."
Abdel-Rahman believes that “the next two weeks will witness stability in the exchange rate,” stressing that “the role of the House of Representatives is through enacting laws to unify customs tariffs or forming committees on border crossings and customs, but the issue of the dollar is the prerogative of the Central Bank.”
Abdel-Rahman concluded, "There are political parties that have taken advantage of the dollar crisis in order to benefit financially, and we look forward to the Central Bank's procedures finding their way to proper implementation."
For his part, economic expert Bassem Jamil Antoine said, "The basis of the problem is linked to the Iraqi economy, which is of a consumer and import nature."
Antoine continued, "Reliance on imports imposes the existence of the dollar," and he talked about "mismanagement of the hard currency," stressing that "the problem started with it."
He pointed out that "some of the speculators took advantage of this process in order to raise the price of the dollar," noting that "the US Federal Bank had suspicions that foreign currency trading was marred by suspicions."
Antoine noted, "The American Bank has sent inquiries that include an audit of those who buy dollars in the currency auction."
And he stressed that "taking the audit for a period of time helped to create a scarcity in hard currency," adding that "this led to a contraction in supply with an increase in demand."
And Antoine continues, "Iraq does not produce locally, and depends on consumption on 90% of imports, and this means that we need large quantities of dollars in order to buy consumer goods from abroad."
And he believes that «the central bank had no idea of what would happen at the present time, although it is responsible for protecting cash by pumping larger quantities into the markets so that we have more supply than demand and prices have increased with it».
Antoine went on to say, "This omission is currently being addressed by pumping $138 million into sales, although it was previously $200 million, with other measures to reduce the price of the dollar for import purposes by opening credits."
He revealed, "New measures will be taken next week by the Central Bank, as a whole, we will be facing a kind of balance."
Antoine accused, "Speculators of exploiting this crisis to achieve large profits," and advised to "find other outlets to sell the dollar other than the currency auction."
Yesterday, the Central Bank took a number of decisions regarding the dollar crisis, including “allowing banks participating in the buying and selling window of foreign currency to buy any amounts in foreign currency and deposit them with this bank in accounts used for external transfer purposes, and pay interest / returns on those balances according to what this bank decides.” ».
The bank indicated, according to an official statement, to “facilitating the financing of private sector trade through Iraqi banks and meeting the request for foreign transfers by strengthening the balances of banks with their correspondents in other currencies as well as the US dollar (Chinese yuan, the euro, the Emirati dirham, the Jordanian dinar and others).”
The statement pointed out, “Opening outlets for selling foreign currency in government banks to the public for the purposes of travel (treatment, Hajj Umrah, study, etc.)
And the statement went on, to “reducing the selling price of the dollar to the beneficiary (the card holder) that he uses while traveling or paying his purchases via the Internet, to be at a price of (1465) dinars to the dollar instead of (1470) dinars to the dollar. The dollar will be sold to electronic payment companies for the above purpose at a price of (1455) dinars to the dollar instead of (1460) dinars to the dollar. LINK
A Researcher Reveals The Authority Of Parliament To Impose A Change In The Price Of The Dollar
2022-12-20 Yes Iraq: Baghdad Economic researcher Yousef Al-Nabhani explained that the monetary authority represented by the Central Bank is considered independent and has no legislative authority over it in making decisions regarding the exchange rate of the dollar against the dinar or other monetary matters.
Al-Nabhani said in a statement that the Central Bank is an independent authority, and the House of Representatives, which is the highest legislative authority, cannot impose monetary measures on it, adding that Parliament, even if it hosts the governor of the Central Bank in this regard, the latter will provide a briefing on his procedures and results to Parliament, which can present ideas and visions. Just to force something.
He recalled the decision to devalue the dinar against the dollar, indicating that it was previously taken by the Central Bank and the Ministry of Finance, and not in agreement with the House of Representatives, as some claimed.
The economic researcher's clarification comes with the continued rise in the exchange rate of the dollar against the Iraqi dinar and its crossing of the barrier of 150,000 dinars, amid statements by some deputies regarding what they described as a "parliamentary consensus" to restore the exchange rate of the dollar to its previous state. LINK