Monday, September 18, 2023
Economic experts warn Iraq against staying with the US Federal Reserve, 18 SEPT
Economic experts warn Iraq against staying with the US Federal Reserve
Ali Al-Zubaidi is a researcher in political and media affairs. The Iraqi economy is currently experiencing a new shock as the dollar exchange rate in local markets has significantly risen. The parallel exchange rate has reached 1,540 dinars to the dollar, while the official exchange rate is only 1,320 dinars.
The recent rise in the exchange rate can be attributed to the sanctions imposed by the US Treasury Department on 14 banks. The Wall Street Journal reported about these sanctions a few weeks ago. It is noteworthy that earlier, four Iraqi banks were also subjected to similar sanctions after they were found guilty of money laundering.
According to a recent report by an American newspaper, several banks including Al-Mashshar, Al-Qartas, Al-Tif, Elaf, and Erbil, as well as the International Islamic Bank, the Trans-Iraq Bank, Mosul, Al-Rajeh, Sumer, Al-Thiqah, and Or, along with Al-Alam and Zain Iraq banks, have been banned from transferring US currency to Iran. The ban is part of a larger campaign aimed at preventing the transfer of US currency to Iran.
The recent US sanctions have caused a fresh wave of concern among Iraqis. This comes after several unsuccessful attempts by the government, during the tenure of Prime Minister Muhammad Shia al-Sudani, to bridge the gap between the parallel exchange rate and the official rate. The economic crises and setbacks faced by the American economy over the past few years have only added to the worries of the Iraqis.
It is important to note that the global economy is diversifying with the emergence of new currencies, including the Brexit currency, the euro, the Chinese yuan, and the Russian ruble. The introduction of the Brexit currency is anticipated in the financial markets next year once the legal procedures are completed. Recently, a meeting was held in South Africa where the number of members increased to over 24. These members include promising economies such as China, Russia, India, South Africa, Iran, Saudi Arabia, the Emirates, as well as some countries in the Americas like Brazil and Venezuela. It is expected that the number of members will continue to rise.
According to several researchers in economic affairs, there is a possibility that the Iraqi government will take measures to prevent banks from falling into the trap of the US Treasury’s sanctions, particularly those imposed on some banks from time to time.
It is important to note that Iraq has over 100 billion dollars in reserves in the United States. This highlights the need for the government to enhance its sovereignty over the 70+ private banks in the country.
The measures taken by the government may prevent America from imposing any further sanctions. Previously, America had imposed sanctions on 14 banks which caused a shortage of US dollars in the local market. The financial liquidity in the local market is still being managed in ways that are outdated and not modern.
It is important for the Central Bank to impose binding conditions on the development of banking in order to avoid any imposition of American guardianship through accusations of money laundering.
Evening News with MarkZ 09/18/2023
An Economic Analysis Of The Reasons For The Rise In The Exchange Rate In Iraq.. This Is America’s Role, 18 SEPT
An Economic Analysis Of The Reasons For The Rise In The Exchange Rate In Iraq.. This Is America’s Role
Information/private.. Today, Monday, an informed economic expert revealed the main reason behind the continued rise in dollar exchange rates in Iraqi markets, while he considered that the Central Bank’s negotiations with US Treasury aid “were not successful.”
Follow the “Al-Ma’louma” channel on Telegram.. News that does not require documentation..
The expert said, in an interview with the Maalouma Agency, that “the rise in the dollar exchange rates in the Iraqi markets came as a result of the recent decision of the Central Bank of Iraq, which stipulated reducing cash sales to exchange companies of various types by half, which was implemented since yesterday.”
He added, "The companies that used to get two million now have only one million, for example," noting that "this decision will lead to a large deficit in the local markets, because the exchange companies' sales go in parallel."
The economist (who preferred not to reveal his name) stated that “the decision to reduce the sales of exchange companies was taken at the request of the US Secretary of the Treasury during her visit to Baghdad.”
The expert stated, “The central bank negotiations with the American side were certainly not successful, and the evidence for this is the lack of control over the rise in exchange rates.”
Today, Monday, the dollar exchange rates witnessed a significant rise in the Iraqi markets, reaching more than 158 thousand dinars for every 100 dollars, amid fears that this rise will continue.
Earlier, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, discussed with the Assistant Secretary of the US Treasury, Elizabeth Rosenberg, bilateral relations and discussed the measures taken in the field of combating money laundering and terrorist financing. LINK
The Dollar Is Exhausting The Dinar.. The US Treasury Scatters Government Reforms And The Central Bank Negotiations “Fail”, 18 SEPT
The Dollar Is Exhausting The Dinar.. The US Treasury Scatters Government Reforms And The Central Bank Negotiations “Fail”
Information / private.. The series of rising dollar exchange rates in Iraqi markets continues, amid conflicting opinions about the real reasons that led to the exhaustion of the local currency again, especially as it began to rise to levels that warn of a great danger to the country's economy.
Despite the many reasons, the timing of the visit of the US Assistant Secretary of the Treasury to Iraq and the meeting of the US delegation with the Governor of the Central Bank, and the subsequent significant rise in prices, raises controversy and questions.
Today, Monday, the dollar exchange rates witnessed a significant rise in the Iraqi markets, reaching more than 158 thousand dinars for every 100 dollars, amid fears that this rise will continue.
"Political file"
The economic file is perhaps more important than politics and what is happening in it, and it is the aspect that is focused on to thwart any government if it achieves successes and is able to get closer to the people.
Former member of the House of Representatives, Fadel Al-Fatlawi, considered the issue of the rise in the dollar exchange rate in local markets “purely political,” in relation to the relationship of the visit of the US Assistant Secretary of the Treasury to the rise of the dollar.
Al-Fatlawi said, in an interview with the “Al-Ma’louma” agency, that “the rise in the dollar exchange rates in the local markets inside Iraq is a political file to put pressure on Muhammad Shiaa Al-Sudani,” pointing out that “the government is serious about reducing the exchange rate, especially since it approved the amount of 132 thousand for every 100 dollars.” .
He adds, "There is a large financial reserve with the government, in addition to the large financial habits achieved from selling oil prices in global markets, all of which contribute to securing the Iraqi economy and maintaining the stability of the price of the local currency."
The former MP explains that “this pressure is being exerted on the government in agreement with the US Federal Bank,” suggesting that “prices will decline in the coming days.”
Al-Fatlawi explains, “The visit of the US Assistant Secretary of the Treasury to Iraq, in addition to the sanctions imposed on some banks, are all factors that caused the exchange rate to rise to these levels.”
"America's role"
The visit of US Assistant Secretary of the Treasury, Elizabeth Rosenberg, to Iraq scattered all the papers and reforms that the government was able to undertake during the previous period, and this was not to the liking of the American side, which imposed a new condition that led to prices rising again.
In turn, a knowledgeable economic expert revealed the main reason behind the continued rise in the dollar exchange rates in Iraqi markets, while he considered the Central Bank’s negotiations with US Treasury assistance “not successful.”
The expert stated, in an interview with the “Al-Ma’louma” agency, that “the rise in the dollar exchange rates in the Iraqi markets came as a result of the recent decision of the Central Bank of Iraq, which stipulated reducing cash sales to exchange companies of various types by half, which was implemented since yesterday.”
He points out, “The companies that used to get two million now have only one million, for example,” noting that “this decision will lead to a large deficit in the local markets, because the exchange companies’ sales go in parallel.”
The economist (who preferred to remain anonymous) confirms that “the decision to reduce the sales of exchange companies was taken at the request of the US Secretary of the Treasury during her visit to Baghdad.”
The expert continues, "The central bank negotiations with the American side were certainly not successful, and the evidence for this is the lack of control over the rise in exchange rates."
If the Iraqi economy wants to get rid of American hegemony, it must think about radical solutions that are far from a rentier economy and complete dependence on oil. Considering that all of the country's financial revenues come through this resource, whose money goes to the US Federal Bank, which allows the country's economy to be managed instead of the government. LINK
"RV UPDATE" BY FRANK26, 18 SEPT
FRANK26
Hey, Alaq, how clean is the CBI floor? 'It's dinner time.' ...I never thought I'd see the CBI floor so clean. Iran, Iraq, U.S. Treasury meeting with the CBI? Why would you let the wolf back in the chicken coop? ...Iran said we promise [to be good]. Whoa! How clean is that floor at the CBI Alaq? 'Spotless'
[CBI put out a RFP-Request for Proposal tender]
SHANGDODDLE: It appears to be the government of Iraq is seeking contractor bids for the purchase of machines used to count, sort and packet currency. IMO that would be for the new currency in the lower denominations in the new small category notes...
FRANK: This is fantastic. Then an article comes out and says, " This tender will be accomplished by October 22, 2023". October 22nd is simply the time limit parameters of this tender...You think it's going to take until October the 22nd? No.
Why would Iran be at the CBI governor's office dealing with international issues? I think you know why. They can't steal anymore. The floor is spotless. It's dinner time. Something is about to happen.
You have Iraq, Iran, the CBI official, US Treasury all in one room that doesn't make any sense unless you have have interest in changing the exchange rate and adding value to the Iraqi currency because there's security and stability in Iraq and it's all because Iran finally conceded, 'we give up'.
Iraq’s financial revenues exceed 65 trillion dinars within 7 months, and an expert comments, 18 SEPT
Iraq’s financial revenues exceed 65 trillion dinars within 7 months, and an expert comments, 18 SEPT
"RV UPDATE" BY MILITIAMAN, 18 SEPT
Militia Man
Everything we've been seeing...is showing Iraq is going to have a big week.
Al Sudani is set to arrive in New York on the 18th. I would imagine there's going to be sideline deals. If you look at the lineup from the U.N...Iraq is slated [to speak] on Friday the 22nd...Iraq is coming out to the world and we're going to be a part of it. I'm really excited to see it...
Article: "Instead of the President of the Republic, the Sudanese participates in the United Nations General Assembly meeting"
Quote: "The United Nations General Assembly meeting scheduled to be held on Monday, September 18, 2023" There is obvious motivation for him to move up his schedule up from the 20th to the 18th...Is there more to the story than meets the eye? ... He would have to be awfully motivated to move things along so quickly now.
The UST apparently wrapped it up in Baghdad this week and from the successes of those meetings that were on going, they may have allowed for the urgency of him to arrive in the USA. I like it.
Al Sudani was denied access to come to...the US because he had three things to get done.
And now he is scheduled to be in the U.S. on the 20th which is Wednesday. I have a hard time thinking on the 20th he's going to show up smiling and waving doing International contracts without having changed from 1310 to a real effective exchange rate.
Romanowski commends Iraq's efforts in budget resolution, 18 SEPT
Romanowski commends Iraq's efforts in budget resolution, 18 SEPT
Shafaq News / The United States praised the ongoing efforts between the Iraqi federal government and the Kurdistan Regional Government to resolve the budget issue, expressing optimism for further dialogue to achieve a lasting solution.
U.S. Ambassador to Baghdad, Elena Romanowski, shared her commendation on the "X" social media platform (formerly Twitter), emphasizing the importance of the joint efforts to find a solution regarding the budget and its implementation. She also noted the decision by the Iraqi Cabinet to transfer payments in the coming months.
Romanowski expressed her anticipation for continued dialogue to reach a more sustainable solution that serves the best interests of the entire Iraqi population.
In a related development, the federal cabinet approved funding for the Kurdistan Regional Government to cover the salaries of government employees for the last three months. Kurdish Prime Minister Masrour Barzani also announced an agreement with federal Prime Minister Mohammed Shia al-Sudani regarding the salaries of citizens.
High-Level delegation in Erbil to monitor implementation of Iraq-Iran security agreement, 18 SEPT
High-Level delegation in Erbil to monitor implementation of Iraq-Iran security agreement
Shafaq News / A high-level delegation from the Federal Government headed to the capital of the Kurdistan Region, Erbil, on Monday to oversee the implementation of the security agreement between Iraq and Iran.
In an official statement, it was noted that "Under the directive of the Commander-in-Chief of the Armed Forces and Prime Minister, Mohammed Shia Al-Sudani, the National Security Advisor, Qasim Al-Araji, led a prominent security delegation to Erbil to monitor the execution of the security agreement between Iraq and Iran."
Last month, Iran's Foreign Ministry spokesperson, Naser Kanaani, had stated that an agreement had been reached between Iran and Iraq in which "the Iraqi government committed to disarm armed separatist terrorist groups on Iraqi territory and in the Kurdistan Region," referring to the armed Iranian Kurdish opposition groups operating in the area.
Kanaani further added that Iraq had also "pledged to evacuate the military headquarters they use and relocate them to camps designated by the Iraqi government."
Al-Fateh: The Sudanese government thwarted the region’s attempt to push Washington into the crisis line, 18 SEPT
Al-Fateh: The Sudanese government thwarted the region’s attempt to push Washington into the crisis line
A shocking number in the number of electronic financial cards in Iraq, and this is the amount allowed to be withdrawn daily, 18 SEPT
A shocking number in the number of electronic financial cards in Iraq, and this is the amount allowed to be withdrawn daily
On Sunday, financial and banking experts revealed the number of electronic financial cards in Iraq and the size of the amount allowed to be withdrawn daily.
Financial and banking expert Dr. Mahmoud Dagher said in an interview with the Al-Thamia program presented by our colleague Ahmed Al-Tayeb told that “the number of electronic financial cards has exceeded 20 million cards in the country,” explaining that “the amount that is allowed to be dealt with daily via the card is $1,400.” For a regular card.
He pointed out that “a large portion of the dollar in Iraqi markets goes to Iran,” noting that “transfers through the platform do not allow any transfer to go to the sanctioned entities.”
Dagher continued, “Bank owners will no longer be involved in transfers to banned entities,” noting that “Iran will not be able to enter a single dollar except with the approval of the United States and through the European mechanism.”
He pointed out that “Iraq cannot solve Iran’s major problems with the international community,” explaining that “the stock exchange for selling the parallel dollar is not in Baghdad.”
For his part, Mustafa Akram Hantoush, an economic expert, said, “The US Treasury Assistant Secretary’s goal in visiting Iraq is to stop the smuggling of dollars across the border, and she is responsible for stopping the smuggling of dollars to banned groups.”
He pointed out that “there is a process of collecting small remittances in some non-sanctioned countries and then they are resold locally,” noting that “banning new Iraqi banks has become useless for the United States.” link
Coffee with MarkZ 09/18/2023
"RV UPDATE" BY MARKZ, 18 SEPT
MarkZ
[via PDK] Question: Fact or fiction…some dinar sellers are being told they can no longer sell? MarkZ answer: Fact. Some of the smaller dealers have had their supply and purchasing limited as to what they can buy at all…yes…I have talked to a couple of smaller dealers that have had their access cut off so they can no longer get it. They can no longer get dinar. So, is this important or is this the US stopping dinar from getting outside and flowing to Iran?
Member Comment: I am hearing Tuesday is our day. MarkZ: That timing certainly fits. We are also expecting an announcement from the Iraqi officials here in the states at that same time.
Most of the news we are expecting should start tomorrow or Monday coming out of Iraq...
we are expecting a lot of activity tomorrow and Monday.
Well…this surprised me, but I got it from 3 different sources that they are (with hopeful anticipation) keeping a skeleton crew in call centers/ redemption centers and working on how they are going to handle appointments... I think this is good news. I think it's comforting that the banking side of this is taking it seriously and has a small crew ready - just in case they pull the trigger.
Question: Do we know why Iraqi delegates are coming to DC on Sun-Tues?? MarkZ answer: I believe it is for an announcement that will make us all very happy. At least we sure hope so.
Al-Bayati: Iraq has its options to deal with currencies alternative to the dollar, 18 SEPT
Al-Bayati: Iraq has its options to deal with currencies alternative to the dollar
Deputy: The Continued Rise In The Exchange Rate Of The Dollar Against The Dinar Requires Serious Government Measures, 18 SEPT
Deputy: The Continued Rise In The Exchange Rate Of The Dollar Against The Dinar Requires Serious Government Measures, 18 SEPT
Economy 11:16 - 2023-09-18 Member of the Parliamentary Finance Committee, Mustafa Al-Karaawi, confirmed that the continued rise in the exchange rate of the dollar against the dinar requires real government measures.
Al-Karaawi said in a press interview, “The US Treasury Department’s imposition of new sanctions on Iraqi banks means that Iraqi banks have not adhered to the instructions,” warning of “major economic repercussions that the Iraqi financial market will witness, due to the United States imposing sanctions on a number of banks, including a rise in... Dollar exchange rate.
He added, “The rise in the dollar exchange rate will not stop, and there will be a gradual rise every day, and this matter requires a real government stance and measures to address this matter,” noting that “the issue may turn into a monetary crisis like the one that occurred during the past months with the beginning of the formation of the new government.” This matter requires an Iraqi diplomatic movement towards the US Treasury and the US Federal Reserve.”
The representative pointed out that “the Finance Committee will work to host the figures and responsible authorities in the Central Bank to discuss the repercussions of the crisis and to find out what the bank’s measures are to confront the significant rise in the exchange rate in the local market.”
The dollar exchange rates continued to rise on the black market, as the exchange rate reached 158,250 dinars per 100 dollars. https://kirkuktv.net/AR/Details/17453
An economist confirms the possibility of Iraq avoiding falling into the trap of the American treasury, 18 SEPT
An economist confirms the possibility of Iraq avoiding falling into the trap of the American treasury
"IRAQ BOOTS ON THE GROUND REPORT" BY FIREFLY, 18 SEPT
Frank26 (KTFA)
Why would Iran be at the CBI governor’s office dealing with international issues? I think you know why. They can’t steal anymore. The floor is spotless. It’s dinner time. Something is about to happen.
[CBI put out a RFP-Request for Proposal tender]
SHANGDODDLE: It appears to be the government of Iraq is seeking contractor bids for the purchase of machines used to count, sort and packet currency. IMO that would be for the new currency in the lower denominations in the new small category notes…
FRANK: This is fantastic. Then an article comes out and says, “This tender will be accomplished by October 22, 2023“. October 22nd is simply the time limit parameters of this tender…You think it’s going to take until October the 22nd? No.
[Iraq boots-on-the-ground report]
FIREFLY: Sudani said he’s not worried about the parallel black market. They have a mechanism which is about to be implemented that will down the dollar and make the dinar strongest.
FRANK: WHAT!?!…Good God almighty…Holy guacamole!
US delegation conveys “greetings” message from Biden and Blinken to Sudanese, 9 may
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