Wednesday, October 25, 2023
Al-Sudani Reveals The “Reasons” For The Rise In The Price Of The Dollar And Admits To A Legal Problem: We Need Strict Penalties, 26 OCT
Al-Sudani Reveals The “Reasons” For The Rise In The Price Of The Dollar And Admits To A Legal Problem: We Need Strict Penalties, 25 OCT
Politics Dollar prices breaking Sudanese 2023-10-24 Shafaq News/ Prime Minister Muhammad Shiaa Al-Sudani revealed, this evening, Tuesday, the reasons for the rise in the exchange rate of the US dollar against the Iraqi dinar, and while he acknowledged the need for “strict” legal penalties against currency speculators, he pointed out the presence of private banks and money changers seeking to keep dollar prices high..
Al-Sudani said during the weekly press conference attended by Shafaq News Agency, “There are problems in banking reform and major challenges facing the government, and the current dollar exchange rate in the markets is the price of currency speculators.”
He added, "There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price."
Al-Sudani stressed, "We support some banks that we trust are good and have achieved success, in order to be part of the solution," adding, "One of the problems we face is that Iraqi law does not contain strong and strict penalties against those who are arrested as speculators at the dollar exchange rate."
He pointed out that "despite the high exchange rate of the dollar, food prices are stable and good, and the government will take on the role of some merchants in some matters.
There is also a good initiative to provide medicines from international origins for chronic diseases and sell them in the market at subsidized prices, as well as construction materials that we will provide and sell." "At a subsidized price, this will force traders and speculators to reduce the price of the dollar in the market."
On the other hand, Al-Sudani pointed out that “the Development Fund is one of the important projects that we adopt and is supposed to have a special law, and the Fund project has been included in the budget law.” He said, "Today this fund was voted on, and this is a glimmer of hope for the Iraqi economy.
This fund will be exclusively for the private sector and will provide investment opportunities.
One of its priorities is building schools with approximately a thousand schools, and after that it will have a role in other sectors such as industry, environment, and housing."
Regarding the electricity file, Al-Sudani explained,
“The costs of producing electricity are very high, and the government today has given the green light to the Ministry of Electricity to adopt very modern electronic systems to measure the wages of electric energy consumption.
We will take into account those with limited income according to a specific mechanism.
This system will contribute to preventing the waste of electricity and provide energy stability.” He stated,
"There will be a trial for these organizations in 10 regions, with 10 sectors in each region, and 50,000 subscribers in each sector. They will receive electricity 24 hours a day." He stressed that
"these systems will be under the supervision of major companies, and the Prime Minister and the Iraqi government have granted the Ministry of Electricity a license to contract with companies. There will also be a treatment for any defect in reading the consumption fees recorded by the systems in a short time, and there will be teams dedicated to addressing any defect in record time."".
In another context, Al-Sudani said, "On the 27th of this October, a full year will have passed since the formation of the government, and we asked the House of Representatives to be a host to talk about the achievements and failures that have been achieved since the formation of the government until now."
ANALYSIS OF IRAQ NEWS BY MNT GOAT, 25 NOV
A SPECIALIST DIAGNOSES THE “REAL REASON” FOR THE DOLLAR’S RISE… AND THE CENTRAL BANK IS “RELUCTANT” ABOUT IT – URGENT
Today, Friday (October 13, 2023), the economic affairs specialist, Nabil Jabbar Al-Tamimi, revealed the reason for the rise in the dollar exchange rate, in light of the volume of daily “black transfers.”
Al-Tamimi told “Baghdad Today”, “The Central Bank of Iraq is failing to solve the problem of remittances with Iran, and the rise in the exchange rate is related to pressures on foreign exchange in the market and the continuation of black remittances.”
He stated, “Up to 30 million dollars a day cross the border as (black transfers) to feed remittance requests for trade with Iran, Syria, Lebanon, and Turkey as well, and the fluctuation will continue unless the remittance crisis with Iran is resolved in the first place and a suitable transfer mechanism is found for merchants, even if they are in other currencies.” other than the dollar.
(This article speaks directly to another article we read about the customs and tariffs issues. Simply put, not being on the Global Foreign Exchange such as FOREX, is putting damper on Iraq’s ability to conduct foreign trade with a multiple of other foreign currencies. Iraq MUST soon move back to FOREX or these problems will only worsen. You see Iraq keeps kicking the can down the road but they know what they must do. They can complain and complain about the issues with the dollar. The FACT still stands that to get off the dollar they must be able to go a central point of exchange. Its easy to trade with a sole source of currency but when you are dealing with potential of hundreds of currencies then what do you do? )
The $30 million per day is exactly equivalent to the cash sales that the Central Bank sells daily and is supposed to be intended for travelers.
Experts point out that some of these cash sales allocated to travelers leak into the black market and are purchased by merchants to finance their trade with countries banned from the dollar, led by Iran, from which Iraq’s annual import volume amounts to approximately 10 billion dollars.
Others warned of the repercussions of some banks not handing over dollars to “travelers,” while stressing that the continuation of the matter would lead to an increase in demand for the dollar in the parallel market and thus an increase in the exchange rate.
Many private banks and exchange companies are accused of being involved in smuggling the dollar, leaking it to the black market, and seizing large amounts of currency auction sales. The accusations also targeted the National Bank of Iraq (Jordan) of seizing 70% of the Central Bank’s daily dollar sales.
The dollar exchange rate witnessed a noticeable increase in the past few days, exceeding the barrier of 160 thousand dinars per 100 dollars, while the Central Bank took many measures and decisions to prevent the circulation of the dollar in local markets above the official price (1320), but to no avail, despite the fact that the dollar is its only source. The Central Bank, although those who take the dollar, namely private banks and exchange companies, are known to it, but it is unable to control them and oblige them not to leak dollars through fake transfers, according to observers.
"RV UPDATE" BY BREITLING, WALKINGSTICK & SANDY INGRAM, 25 OCT
Breitling
[On his approach to the Iraqi dinar]I am the ultimate puritan. I only believe in what I can prove. I don't have faith about nothing. I have faith about my abilities but if someone comes up to me and goes, 'Good, ole fashioned faith?' Nope...
Walkingstick
[Aki Iraqi bank friend update]
Iraqi Bank friend #1
[Aki's boss] told Aki you gotta stay put. Stay right where you are at [his bank in the south of a northern state].
As much as Aki wants to go stay in the north because in the north he has a home there... Obviously something's happening IMO.
Sandy Ingram
There is a global shortage of wheat due to Russia's invasion of Ukraine...Next year flour prices in the United States will skyrocket due to drought... Dunums is the unit of measurement of land in the Middle East.
One acre equals approximately 4 dunums. Iraq will plant 1.5 million dunums in irrigated areas of the desert and 4 million dunums in desert areas using underground water. This planning event will take place during the winter months (October and November) and will secure Iraq's food security for the coming year...
An economic expert talks about the gold reserve of the Central Bank in London... This is the relationship of its price to the dollar, 25 OCT
An economic expert talks about the gold reserve of the Central Bank in London... This is the relationship of its price to the dollar
An economic expert stressed the difficulty of predicting gold prices, specifying “the relationship in gold prices and the dollar.”
Salah Nouri said in a press interview seen by “Taqaddam” that “it is known to economists that the dollar currency and gold represent a reserve for central banks, and among them the Central Bank of Iraq adopts this diversification, and in practical life the relationship between the dollar and gold is an inverse relationship, as whenever there are signs of a decline in the price The dollar in the financial markets tends to invest in gold as a safe haven, and thus the global demand for gold increases and its price rises.”
He stated, “The Central Bank of Iraq owns a good amount of gold and it is stored in London, where the World Gold Council is located. The Central Bank of Iraq depends in determining the value of gold on its price on the London Stock Exchange.”
Nouri pointed out that “it is difficult to predict whether the price of gold will rise or fall because it is linked to the price of the dollar, and the latter is linked to unstable economic and political events in the world.” link
The government is withdrawing its hand from the dollar battle.. The solutions are over and the market is “free” at the exchange rate, 25 OCT
The government is withdrawing its hand from the dollar battle.. The solutions are over and the market is “free” at the exchange rate
Over the past weeks, silence has clearly overwhelmed the relevant authorities and authorities in Iraq at the governmental and banking levels in the face of the continued rise in exchange rates. In contrast to the past months, when the government and the central bank issued a package of quick decisions and measures immediately after the rise in exchange rates, except this time, with a break in... The exchange rate reached record numbers exceeding 160 thousand dinars per 100 dollars. It seems that the relevant authorities have “surrendered” in the battle for the dollar.
This matter can be reached not only from the absence of government and central bank measures that have come to prevent the smuggling of the dollar without taking measures to prevent its rise in the market, as the Central Bank previously issued various packages for this, but even in the statements of the Central Bank Governor, Ali Al-Alaq, and Prime Minister Muhammad Shiaa Al-Sudani, It clearly shows a “tone of surrender” and leaving the exchange rate without intervention, relying only on traders who buy dollars from the central bank and betting that commodity prices will not rise depending on these traders.
For example, the Governor of the Central Bank, Ali Al-Alaq, said last week during a session of the Ministerial Council for the Economy, that “the exchange rate depends mainly on imports and not on local production, and that the exchange rate in Iraq has peculiarities because it is linked to the price of oil as it is the largest source of providing hard currency,” noting. He pointed out that "many factors affect the exchange rate, the most important of which is the leakage of the dollar to neighboring countries and internal dealing in local markets in a currency other than the national currency, as well as the lack of complete control over ports and smuggling."
Which means that the exchange rate will continue to rise as long as there is import, uncontrolled outlets, and oil pricing in dollars, as all of these conditions are sustainable and cannot be changed.
For his part, Al-Sudani said in a press conference yesterday, Tuesday: “We support some banks that we trust are good and have achieved success, in order to be part of the solution to the dollar crisis,” adding, “One of the problems we face is that Iraqi law does not contain strong penalties.” And strict measures against those who are arrested as speculators in the dollar exchange rate.”
It is another indication that it is not possible to do anything, whether for speculators or for the rising dollar prices, in clear statements that are consistent with the Iraqi authorities’ tendency to leave the market dollar price file without interference, that is, more like a flotation.
This is confirmed by economic affairs researcher Haider Al-Sheikh, today, Wednesday (October 25, 2023), stressing the difficulty of ending the crisis of the rise of the dollar in Iraq.
The sheikh told "Baghdad Today", "The crisis of the rise in the dollar exchange rate does not end, and the central bank has become unable to control the market, and some banks, exchange companies, and merchants have manipulated the price of the dollar. "
He added, "This is because the Central Bank imposed any sanctions on banks, exchange companies, and merchants on the price of the dollar, which manipulate the exchange rate. Therefore, the dollar exchange rate will stabilize at 165 during the next two days, and will continue to rise further during the coming days. "
He pointed out that "there are problems in banking reform and major challenges facing the government, and the current dollar exchange rate in the markets is the price of currency speculators ."
He added, "There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price ." link
Evening news with MarkZ. 10/25/2023
"RV UPDATE" BY PIMPY, 25 OCT
Pimpy
Iraq continues to move forward to do what they can for the Iraqi people, improving more on the banking sector, trying to find ways to make their economy stronger but these conflicts are causing huge delays and huge issues in Iraq and we don't need that at this time.
Iraq continues to move forward to do what they can for the Iraqi people, improving more on the banking sector, trying to find ways to make their economy stronger but these conflicts are causing huge delays and huge issues in Iraq and we don't need that at this time.
Article: "Iraq recovers $70 million smuggled into Switzerland"
Remember I spoke about this before that there's a lot of unaccounted for Iraqi dinar that's somewhere. It's considered stolen.
So before they do any kind of RV or major RI they have to make sure to account for as much of it as possible to make sure when they do this they're not enriching some terrorist group...This is great news. That's a huge chunk of money they got from over there in Switzerland. Let's hope they continue to recover it all. The sooner the better.
Iranian proxy in Iraq vows to expand attacks on US bases in the region, 25 OCT
Iranian proxy in Iraq vows to expand attacks on US bases in the region
A shadowy Shiite militia in Iraq has threatened to strike US military bases across the Arabian Peninsula, expanding the number of recent attacks on American troops by Iran-backed military groups.
US forces in Iraq and Syria have faced a surge in rocket and drone attacks due to Washington's support for Israel's bombardment of the Gaza Strip after Hamas operatives killed more than 1,400 people, most of them civilians, in cross-border raids on October 7.
The Israeli attacks have killed more than 6,500 people so far, most of them civilians, leading to widespread anger across the Middle East.
“We affirm that our patience has limits,” Alwiyat Al Waad Al Haq – Abnaa Al Jazeera Al Arabiya (AWH), or the True Pledge Brigades – The Sons of the Arabian Peninsula, said on Telegram late on Tuesday.
The statement went on to say the group considered US bases in the region as targets.
AWH is considered to be one of many groups created by Tehran, comprising trusted fighters from its most powerful militias in Iraq.
The small, elite and fiercely loyal bands are highly trained in drone warfare, surveillance and online propaganda, and answer directly to officers in the Quds Force, an arm of the Islamic Revolutionary Guard Corps that controls allied militias abroad.
These militias have been responsible for a series of increasingly sophisticated attacks against the US and its allies in Iraq and abroad.
AWH claimed responsibility for drone attacks on the Arabian peninsula in 2021 and 2022.
No excuse for Iraq to obstruct Kurdish ‘financial entitlements’: KRG council, 25 OCT
No excuse for Iraq to obstruct Kurdish ‘financial entitlements’: KRG council
ERBIL (Kurdistan 24) – The Kurdistan Regional Government (KRG) Council of Ministers convened on Wednesday and was chaired by Prime Minister Masrour Barzani, according to a statement from the KRG.
The meeting began by discussing the results of the KRG delegation’s visit to Baghdad on Oct. 18, where it met with Iraqi finance ministers and auditors.
The council instructed the finance ministry and the delegation to remain in constant contact with their counterparts in Baghdad.
In terms of transparency, the council emphasized that the Kurdish government presents all information and figures candidly, and does not willingly withhold information from the public.
The ministers also ensured that the data, information, and figures are accurate, leaving, as they argue, no excuse for the Iraqi government to obstruct the distribution of the Region's “financial entitlements.”
Fariq Sulaiman, the audit head of the KRG, later highlighted necessary measures of the joint investigation process between Erbil and Baghdad.
To make the audit process successful, as Mr. Sulaiman reasoned, the finance ministers of the Kurdistan Region must coordinate with Baghdad to provide the necessary information and data related to revenues, expenditures, and public property.
Various reports were then submitted about revenues, expenditures, oil production, and civil servant salaries, providing an essential status update on the Region's crucial economy.
Sudanese announces a new measure regarding the dollar crisis in Iraq, 25 OCT
Sudanese announces a new measure regarding the dollar crisis in Iraq, 25 OCT
Tuesday, Prime Minister Muhammed Shiaa Al-Sudani announced legal measures to deter dollar speculators.
During a press conference, Al-Sudani stated that they have supported a set of measures that will play a crucial role in solving the dollar crisis in Iraq. He further added that the crisis has led to the emergence of a group of speculators who have turned some merchants and private banks into currency traders.
He said that they, along with the Central Bank, have legal procedures in place to prevent speculators. Additionally, there are security agencies and committees dedicated to enforcing these procedures.
The Prime Minister stated that the Central Banks of Iraq and Iran agreed to use the Toman instead of the US Dollar.
"RV UPDATE" BY SANDY INGRAM & NADER FROM MID EAST, 25 OCT
Sandy Ingram
There is a global shortage of wheat due to Russia's invasion of Ukraine...Next year flour prices in the United States will skyrocket due to drought...
Dunums is the unit of measurement of land in the Middle East. One acre equals approximately 4 dunums. Iraq will plant 1.5 million dunums in irrigated areas of the desert and 4 million dunums in desert areas using underground water.
This planning event will take place during the winter months (October and November) and will secure Iraq's food security for the coming year...
Nader From The Mid East
I believe it's going to get higher. I believe it's going to be 3 to 1...but we don't know.
Article: "The governor of the Central Bank Ali Al-Alaq...
considered the process of stabling the dinar exchange rate against the dollar as a big operation that requires changes to the Iraqi commercial system...This came in a speech during the first annual banking conference hosted by the city of Erbil under the slogan
The Banking Sector Opportunities for Advancement and the Future of International Companies."
A complete halt in the export of Iraqi oil to Jordan through the Trebil port, 25 OCT
A complete halt in the export of Iraqi oil to Jordan through the Trebil port, 25 OCT
A source in the Anbar local government reported on Wednesday that the export of petroleum derivatives through Trebil port to Jordan was halted.
According to a source’s statement, the export of petroleum derivatives from the Baiji refinery in Salah al-Din Governorate to Jordan through the Trebil port in the Rutba district, west of Anbar, has been completely halted. The reason behind this is that protesters stopped trucks carrying petroleum derivatives en route to Jordan.
According to the source, “The protesters took this action to prevent the transportation of Iraqi oil to the Israeli authorities.” The Trebil port officials have subsequently notified the relevant authorities to halt the export of oil derivatives to Jordan until further notice.
Today, protesters on the Iraqi-Jordanian border decided to prevent Iraqi oil from reaching Jordan via the Tarbil route in order to stop it from getting to Israel.
A deputy calls for stopping the dollar’s dominance in Iraq, 25 OCT
A deputy calls for stopping the dollar’s dominance in Iraq
"RV UPDATE" BY MNT GOAT, DESERT ADVISOR & WALKINGSTICK, 25 OCT
Mnt Goat
...I know for a FACT that the rate of 1/6 of a penny is a “suppressed” rate and being “artificially manipulated”.
Just with all the assets Iraq now has without any banking reforms or any other economic development, the rate should be at least what it was prior to the 1991 invasion and the 10 year boycott plus even more..
Desert Advisor
Article: "Iraq allows transactions in Chinese yuan as it seeks to avoid US restrictions on use of the dollar"
that's a big deal. They're getting away from the US dollar...
Quote "The decision came after the return of an Iraqi delegation from a visit...to Washington" They got approval from Washington it seems...They banned people from dealing in US dollars also [in their local markets], another big move...they don't want to use he dollar anymore.
Walkingstick
They never had a budget before. Now to have three in a row?
A three-year budget does not work with a program rate...Based on what you're seeing this monetary reform is really developing well.
Central Bank of Iraq Ushers in New Era with Photographic Measure, 25 OCT
Central Bank of Iraq Ushers in New Era with Photographic Measure, 25 OCT
In the heart of Iraq, a silent revolution is taking place. It’s a revolution not of guns and violence but led by the central financial institution of the country. The Central Bank of Iraq (CBI) is making a resolute stand against fraud and lack of transparency in foreign exchange transactions, ushering in a new era marked by a unique measure: the requirement of a photograph with each dollar sale request.
Transparency Through Photography
The Central Bank’s decision is rooted in a strategic effort to combat fraud and bolster transparency in the country’s foreign exchange transactions. With the implementation of this measure, the bank reported a sale of approximately $33 million in cash. Yet, this is just the tip of the iceberg in an ocean of change that the Central Bank is navigating.
Beyond this initiative, the CBI has also seen an 82% surge in foreign exchange transactions at its auction, reaching a total of $180 million. The majority of these dollar sales were allocated towards strengthening foreign balances through remittances and credits, amounting to a staggering $180,988,961. This rise marks a significant shift compared to cash sales, which stood at a relatively meager $32,840,000.
Exchange Rate Challenges
However, the landscape is not without its challenges. Despite the surge in foreign remittances, the exchange rate of the US dollar against the Iraqi dinar in the parallel markets continues its upward trajectory. This unnerving rise is attributed to a controversial policy of keeping ports of entry open to countries under sanctions.
The ramifications of this policy decision are evident in the local markets of Baghdad, where the rising exchange rate has led to higher dollar prices. With the closure of the main stock exchanges in Baghdad, dollar prices recorded 162,000 Iraqi dinars against 100 dollars. The selling price in the exchange shops in the local markets saw an upward trend as well, reaching 163,000 dinars for 100 dollars.
Navigating the Gold Reserves
As Iraq grapples with these economic challenges, the Central Bank of Iraq holds a significant amount of gold stored in London. These reserves are intrinsically linked to the price of the dollar, serving as a reserve for central banks. When the dollar shows signs of decline, the demand for gold increases, causing a rise in its price. However, predicting the future price of gold is akin to navigating a labyrinth, given its association with the dollar’s price, which is in turn influenced by a myriad of unstable economic and political events worldwide.
In conclusion, Iraq is at a crossroads, facing economic challenges, including the rising exchange rate of the US dollar against the Iraqi dinar and the need for comprehensive economic reforms. The Central Bank’s measures to increase transparency and combat fraud in foreign exchange transactions are steps in the right direction, but the road to stability is long, and it requires more concerted efforts to improve the overall economic situation in Iraq.
https://bnn.network/finance-nav/central-bank-of-iraq-ushers-in-new-era-with-photographic-measure/
Al-Sadr City Project: A New Dawn for Iraq Amidst Endemic Corruption, 25 oct
Al-Sadr City Project: A New Dawn for Iraq Amidst Endemic Corruption, 25 oct
On a recent afternoon in the capital city of Baghdad, enveloped by the radiant dapples of the setting sun that reflected off the Tigris River, Iraqi Prime Minister Mohamed Shaaa Al-Sudani was at the helm of the fifth meeting of the Al-Sadr City project. As the leaders convened around an imposing conference table, the air was tinged with a sense of anticipation, a collective holding of breath as the curtains were about to rise on a new chapter for Iraq.
A Promise of Revitalization
The discussions centered around the Al-Sadr City project, a transformative urban development initiative that seeks to revamp the eponymous region in the heart of Baghdad. Al-Sadr City, historically an underprivileged district, has often been synonymous with dilapidated infrastructure and poverty. However, the project promises to metamorphose the area into a modern urban hub, offering improved living conditions and opportunities for its residents.
Prime Minister Al-Sudani confirmed the impending commencement of the project, marking a significant milestone in Iraq’s journey towards urban regeneration. The first phase, known as Al-Wahdat, is slated to begin shortly. Al-Wahdat, meaning ‘Unity’ in Arabic, aptly encapsulates the spirit of the project: a united effort towards the upliftment of Al-Sadr City.
The Challenge of Corruption
While the Al-Sadr City project embodies hope and progress, it also confronts the specter of corruption deeply entrenched in Iraq’s muhasasa political system. This system, characterized by a power-sharing agreement among various political and sectarian groups, has often been criticized for fostering nepotism and graft.
This situation poses a formidable test for Al-Sudani. His predecessors have tried and failed to dismantle this deep-rooted corruption, their efforts often succumbing to the labyrinthine bureaucracy. The success of the Al-Sadr City project hinges on the Prime Minister’s ability to navigate these murky waters, making it a litmus test for his administration.
A New Dawn for Al-Sadr City
If successful, the Al-Sadr City project could be a beacon of hope for Iraq. It stands to redefine the urban landscape, uplift the socio-economic status of thousands of residents, and perhaps, most importantly, send a strong message that the country is ready to shed the vestiges of its past and stride confidently towards a brighter future.
The journey may be fraught with challenges, but the determination of the Iraqi leadership and the resilience of the people hold the promise of a new dawn for Al-Sadr City, and indeed, for Iraq.
https://bnn.network/arts/al-sadr-city-project-a-new-dawn-for-iraq-amidst-endemic-corruption/
Coffee with MarkZ and Andy Schectman. 10/25/2023
"IRAQ BOOTS ON THE GROUND REPORT" BY FIREFLY, 25 OCT
Frank26 (KTFA)
[Iraq boots-on-the-ground report]
FIREFLY: My bank guys says corruption is still the major holdup right now but even Sudani was on the news saying for parliament to stop calling out Alaq. He’s saying the parliament members are the problem…
FIREFLY: The television is talking about the Iraqi Development Fund that is inside of the budget…They keep talking about the budget, what’s in it and the development fund is what’s key.
FRANK: Profound…the Development Fund is what’s going to fund the budget. This development fund is the new exchange rate. They’re talking about it because they’re talking about the exchange rate…What they’re talking about is you have a new exchange rate that is coming for everything to work…
Question:
“Does the Iraqi dinar have to stop at one penny above the Kuwait dinar?”
Not anymore IMO. The reason why is because…you have Kumbaya. You have working relationships. You got Kuwait saying a lot of nice things they have never said in the last 20 years about Iraq…I don’t think that is the criteria anymore. The sky is the limit.