Iraq’s Federal Government Transfers 700 Billion IQD to Kurdistan Regional Government
In the Kurdistan Region of Iraq, a monumental financial transaction has taken place, injecting hope and stability into the region’s economic fabric. A colossal 700 billion Iraqi Dinars (IQD) have been transferred to the Kurdistan Regional Government (KRG) from the federal government of Iraq, according to Shahaw Amin, a key figure in the KRG. This transfer is designed to alleviate the financial burden on the regional government, particularly in ensuring the timely disbursement of public sector wages.
A Lifeline for the Kurdistan Regional Government
The allocation of funds is an integral part of ongoing efforts to reconcile financial disputes and establish economic equilibrium in the region. The KRG, grappling with the strain of maintaining its infrastructure and meeting public sector wage demands, views this transfer as a much-needed lifeline. The 700 billion IQD will significantly bolster the KRG’s ability to sustain its public servants, who form the backbone of the region’s functioning.
Impact on the Region’s Economic Stability
The transfer of funds is expected to have an immediate and stabilizing effect on the region’s economy. By ensuring the swift payment of public sector salaries, the KRG can avert potential economic disruption and maintain the continuous delivery of essential services. The allocation also sends a strong signal of support from the federal government, reinforcing the commitment to resolve longstanding financial disputes and promote stability.
Significance of the Financial Transfer
The financial transfer to the KRG is not merely a monetary transaction; it is a testament to the federal government’s commitment to establishing economic harmony in the region. By injecting this significant sum into the KRG, the federal government is playing a crucial role in maintaining the functioning of the regional government and supporting its public servants. The move is a significant stride towards a more stable and prosperous Kurdistan Region of Iraq.
Advisor to the Prime Minister announces a platform for Iraqi and Chinese businessmen
Economy News-Baghdad
Advisorto the Prime Minister for Investment Affairs and Executive Director ofthe Iraq Fund for Development, Mohammed Al-Najjar, outlined on Saturdaythe importance of the relationship between Iraq and China, whileannouncing a platform for Iraqi and Chinese businessmen.
Al-Najjarsaid, during the founding ceremony of the Iraqi-Chinese BusinessCouncil, under the auspices of Prime Minister Mohammed Shia Al-Sudani, that "China was characterized by several qualities, including that it isthe only country that was able to save 400 million people from thepoverty line within 20 years, and this is a great experience thateveryone must benefit from, and the second characteristic is itstransition from a communist economy under the state by 100% to a realcommon economy that has become productive."
Headded: "The third characteristic, which is very important as it relatesto the experience gained by China through 4,000 years of civilization, which is how to develop a team capable of managing the variables of thestate," noting that "Iraq looks at China as a friend and as a countrythat shared its concerns at a stage that abandoned a lot of it."
Hecontinued: "We seek to learn a lot from China regarding how to changethe framework and systems of the state," noting that "China has aprinciple called special economic zones, and this is an experience thatmust be used in Iraq to change our economic reality."
Hepointed out that "China's GDP in 1979 did not exceed 120 billion, buttoday China is the second largest economy in the world through 40 yearsof changes that have occurred not only on a political basis, but on aneconomic and political basis at the same time," expressing his hope to "start a new phase of the relationship with China."
Hestressed that "renewed trade and industrial projects between Iraq andChina," pointing out that "the Iraqi-Chinese Business Council will be aplatform for businessmen of the two countries."
Wealthy Iraqis move to the Caribbean. Guess who's on the list? ...The leader of the Kurdistan region and the former governor of the Central Bank of Iraq and other businessmen suspected of corruption...Iraq's politician are monitored by the organized Crime and Corruption Report Project (OCCRP)...This is part of the effort to catch
individual involved in corruption....The project reported the purchase of Dominica (tiny Caribbean island) citizenship...enabling them to travel worldwide without a Visa...This country's visa is magical. Citizens can travel to 144 countries without a visa..
The country has no tax on foreign income, capital gains, inheritance, stock profits, wealth or gifts...The former Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhif, obtained Dominica citizenship in 2017 along with his wife and two children and did not renounce it upon his appointment as governor of the CBI which was clear violation of article 18 paragraph 4 of the Iraqi Constitution. He held the position of governor of the Central Bank of Iraq from September 2020 until his removal by the current prime minister on January 23, 2023...
There are corruption questions...a legal complaint... has been filed due to the loss and depletion of millions of dollars regarding forged import documents.
The reason countries have foreign reserves is to make sure that a country has backup funds if its national currency rapidly devalues or becomes entirely worthless. It's common practice for central banks of different countries around the world to hold large amounts of reserves of foreign exchange. Most of these reserves are held in US dollars since it is the most traded currency in the world...The amount of monies a country holds in its reserves has a lot to do with the county's currency rate...Iraq has the largest foreign currency reserves in its' history.
The reason countries have foreign reserves is to make sure that a country has backup funds if its national currency rapidly devalues or becomes entirely worthless. It's common practice for central banks of different countries around the world to hold large amounts of reserves of foreign exchange. Most of these reserves are held in US dollars since it is the most traded currency in the world...
The amount of monies a country holds in its reserves has a lot to do with the county's currency rate...Iraq has the largest foreign currency reserves in its' history...
Article: "Good News for Investors: US Treasury Continues to Omit Vietnam Currency Off Currency Manipulator's List"
Vietnam was not included on the US Treasury Department currency manipulators list this time. The list comes out twice a year and includes countries that may have surpassed the value of their currency. When a country does this it cheats investors on potential profits...Iraq is rebuilding after the war so is not yet subject to currency manipulation lists...
On Wednesday the Prime Minister of Iraq's advisor took the lead from the Central Bank of Iraq and announced Iraq has the largest foreign currency reserves in its' history and that the exchange rate treatment package aims to prevent profiteering at the expense of the economy...
Iraqi-British Business Council Conference: A Step Towards Economic Transformation in Iraq, 25 NOV
The Iraqi-British Business Council is poised to host a landmark conference in Dubai on December 7th and 8th, with an ambitious intent of bolstering alliances and ushering economic transformation in Iraq. The conference aims to galvanize companies engaged in business and trade, in a bid to nurture investment opportunities and bolster Iraq’s industry and its populace.
Strengthening Economic Ties
The event underscores the UAE’s ascending role as the primary commercial hub for Iraq, reflecting a substantial growth in trade between the two nations, which has surged by over 60% in 2022. The UAE emerges as a common ground for diverse global entities ranging from the UK, EU, and US to India, Turkey, Iraq and the Gulf. This pivotal role of the UAE in facilitating international cooperation is highlighted, further augmenting its potential for investment in Iraq, and providing an efficient route for companies to penetrate the Iraqi market, bypassing administrative hurdles within Iraq itself.
Building a Sustainable Future
A keynote speech by Dr. Thani bin Ahmed Al Zeyoudi, the Minister of State for Foreign Trade, will be a centerpiece of the event, focusing on constructing a sustainable future. The conference comes at a crucial juncture, addressing cardinal issues such as economic sustainability, education, finance, and climate change. As part of the climate change discussion, a UN-led conference in Dubai recently concurred on a target to curtail carbon emissions from global aviation by 5 per cent by 2030 through the utilization of sustainable aviation fuels.
Driving Growth and Development
The conference is seen as a catalyst for socioeconomic progress in Iraq. As Christoph Michels, the conference’s Managing Director, emphasizes the import of the event, which is projected to draw key decision-makers and stimulate dialogue on critical issues. Fikas Handa, the UAE representative at the regional level in the council, also recognizes the conference’s potential to influence Iraq’s long-term development and foresight. With its focus on facilitating technology transfer, infrastructure development, and expertise sharing, the conference is set to promote growth and development in Iraq, contributing to its reconstruction and economic revival.
Political Engagement Among Kurdish Factions: A Step Toward Regional Stability, 25 NOV
In a significant political development, officials from the Gorran Movement hosted a delegation from the Patriotic Union of Kurdistan (PUK), led by Bafel Talabani, on Sulaymaniyah’s Zargata Hill. The event symbolizes a collaborative endeavor between two influential Kurdish political factions in the region, aiming to foster dialogue and potentially address pivotal issues concerning political cooperation, governance, and regional stability.
Collaborative Efforts in the Kurdish Region
This kind of political engagement is vital in the context of the Kurdish region of Iraq, where the balance of power and alliance-building among various parties can substantially mold the political landscape. The meeting signifies a dedicated effort by these factions to address key challenges and work towards regional stability.
Simultaneously, Masoud Barzani, the renowned Kurdish leader and president of the Kurdistan Democratic Party (KDP), hosted a high-ranking British military delegation led by Marshal Sammy Sampson, the UK’s Senior Military Advisor for the Middle East and North Africa. The dialogue focused on essential developments within the ongoing Peshmerga reforms, reflecting a shared commitment to enhancing the capabilities of the Kurdish forces.
International Partnerships and Geopolitics
The talks emphasized the importance of coordination among the Kurdistan Peshmerga Forces, coalition forces, and the Iraqi army. The British delegation commended the resilience and dedication of the Peshmerga forces and pledged ongoing support in the face of evolving regional dynamics. This engagement marks another chapter in the collaborative efforts to address regional challenges and underscores the importance of international partnerships in navigating complex geopolitical landscapes.
Unrest in Iran
Iran’s religious leaders are attempting to depict the angry protests over the death of Mahsa Amini as a breakaway uprising by her fellow Kurds threatening the nation’s unity rather than its clerical rule. Protests, which began at Amini’s funeral in her Kurdish hometown of Saqez, spread swiftly across the country. Iranian state media have labeled the nationwide protests a political plot ignited by Kurdish separatist groups, particularly the Kurdistan Democratic Party of Iran (KDPI).
Meanwhile, Soheila Mohammadi, an Iranian Kurdish political prisoner held at Urmia central prison in northwestern Iran, has gone on hunger strike and sewn her lips shut as a protest against the mistreatment by prison officials. Mohammadi continues to be deprived of parole opportunities and conditional release despite completing three years of her five-year term.
Advisor to the Prime Minister: Starting a new phase of the relationship with China
The Prime Minister's Advisor for Investment Affairs, Muhammad Al-Najjar, announced today, Saturday, the importance of the relationship between Iraq and China, while announcing a platform for Iraqi and Chinese businessmen.
Muhammad al-Najjar told the official agency, during the establishment ceremony of the Iraqi-Chinese Business Council, under the patronage of Prime Minister Muhammad Shia al-Sudani, that “China was distinguished by several characteristics, including that it is the only country that was able to save 400 million people from the poverty line within 20 years, and this is an experience.” It is great and everyone must benefit from it.
The second characteristic is its transition from a 100% state-controlled communist economy to a real shared economy that has become productive.”
Al-Najjar added, “The third characteristic, which is very important as it relates to the experience that China has acquired over 4,000 years of civilization, is how to develop a team capable of managing the country’s variables,” indicating that “Iraq views China as a friend and as a country that shared its concerns in a stage of abandonment.” A lot about him.”
He continued, "We seek to learn a lot from China regarding how to change the framework and systems of the state," noting, "China has a principle called special economic zones, and this is an experience that must be benefited from in Iraq to change our economic reality."
Al-Najjar pointed out, “In 1979, China’s gross domestic product did not exceed 120 billion, but today China is the second largest economy in the world over 40 years of changes that occurred not only on a political basis, but on an economic and political basis simultaneously.” He expressed his hope to “begin a new phase of the relationship with China.”
He stressed that "renewable commercial and industrial projects will be held between Iraq and China," adding, "The Iraqi-Chinese Business Council will be a platform for businessmen from both countries." link
Two months ago a quick little pip movement took the exchange rate of the Iraqi dinar from 1460 to 1320...They were supposed to make the next step.
I told you at that time, 'Now that they've made this movement, let's say 1320 to 1, the next one will be 1,000 to 1 and when they do they will be in position to lift the three zeros and float the currency in a basket...'
Article quote: "Solutions exist, and during our tenure at the Ministry of Finance (2006-2010), we succeeded in increasing the value of the dinar from (1,500 dinars to the dollar to 1,170 dinars to the dollar). We were planning to reach (1,000 dinars to the dollar) and then raise the zeros so that the dinar was equal to the dollar." What?!?
Word for word of what we taught you...This is the last step. IMO the CBI is going to be going to the US Treasury next week...This is exactly what we want next.
Question: " What if you lost your receipt for your dinar?"
Try to get ahold of the individual you bought it from. If they have records...maybe they might help you. My broker does not...If you lost it. Oh, dear. That can be a problem financially for you because you want to hold your currency for one year...
Because...your [tax] bracket is whatever the government says but if you don't have a receipt or if you don't hold it for a year and you go exchange...that's a different tax bracket. They're going to really bite you hard. It's the difference between 40% tax and 20% tax...[NOTE: Consult your tax professionals at the appropriate time to determinate proper tax for your unique circumstances]
The Iraqi dinar is now going to enter a basket in a float and that's why the CBI has been talking...about the basket and coins... All they talk about is the exchange rate of the Iraqi dinar, about the black market going away andthe only way that all of this can happen is if we have a new exchange rate and a new currency to match it. They are preparing [Iraqi citizens]. This is the monetary reform at its highest point..
Sudanese Advisor: The Battle For The Dollar Is Almost Over
The media advisor to the Prime Minister, Hisham Al-Rikabi, confirmed today, Friday, that the dollar battle is nearing its end.
Al-Rikabi said in a post on the “X” platform, followed by Earth News: “The reform plans for the financial and banking system undertaken by the government and the Central Bank of Iraq aim to build strong foundations for the stability of the economy and pave the way for creating a suitable climate for investment, and end the eras of illegal trade, dollar smuggling, and speculative operations in market".
He added, "In short, the battle for the dollar is nearing its end." LINK
Shafaq News/ Moody's Investors Service (Moody's) last week affirmed Iraq's long-term issuer ratings at Caa1 as it maintains a stable outlook.
The rating affirmation reflects Iraq's economic, fiscal and external dependence on the hydrocarbon sector, resulting in significant exposure to oil price volatility and carbon transition risks, a Moody report said.
"Very weak institutions and governance constrain policy effectiveness, the government's capacity to respond to domestic and external shocks, and the economy's competitiveness," it added.
Deep political fragmentation, Iraq's susceptibility to geopolitical tensions, and growing social pressures from high youth unemployment and inadequate access to basic services also expose Iraq to political event risk.
"The outlook is stable," Moody's report continued, "higher global oil prices have driven a significant turnaround in Iraq's fiscal and external accounts, supporting public debt reduction and a marked recovery in the Central Bank of Iraq's (CBI) foreign exchange reserve position to record highs."
The "expansionary" triennial budget and limited reform momentum are expected to underpin a "steady renewed deterioration" in fiscal metrics and further entrench Iraq's structural vulnerabilities.V
Iraq's local and foreign currency country ceilings remain unchanged.
"The local currency country ceiling at B3, one notch above the sovereign issuer rating, reflects heavy reliance of the economy on a single revenue source, very high political risk and highly unpredictable institutions."
The foreign currency country ceiling at Caa1, one notch below the LC ceiling, incorporates some albeit relatively modest transfer and convertibility risks, which "stem from the track record of weak fiscal policy effectiveness balanced by a relatively low level of external indebtedness and robust foreign currency reserves."
Across Moody's global sovereign universe, Iraq remains one of the hydrocarbon producers most exposed to carbon transition risks in view of the dominance of oil in government revenue and exports as well as limited capacity to adjust, the consequence of institutional, social and political obstacles to reform.
Notwithstanding Iraq's vulnerability to declines in oil demand and prices, credit mitigants are present through the favourable composition of government debt, the significant recovery in the CBI's foreign-exchange reserve position, and a contained amortisation profile for external debt in the next few years. "These factors limit the likelihood of a default on privately held external government debt in the near future, even in the absence of access to the international capital markets."
US dollar retreats against Iraqi dinar in Baghdad and Erbil
Shafaq News/ The US dollar value edged lower against the Iraqi dinar in Baghdad and Erbil on Saturday.
With the close of the Al-Kifah and Al-Harithiya stock exchanges in Baghdad, the exchange rate was 157,500 dinars for every 100 dollars, a drop from the morning rate of 158,650 dinars.
In local markets in Baghdad, exchange shop selling prices also decreased, with the selling price reaching 158,750 Iraqi dinars for every 100 dollars, while the purchase price was 156,750 dinars for every 100 dollars.
In Erbil, the dollar recorded a selling price of 157,200 dinars for every 100 dollars, with a purchase price of 157,000 dinars for every 100 dollars.
The reason why there's no news coming out of Iraq is because Iraq is done with everything. They finished everything needed to revalue. They're ready to revalue but they can't and they're not going revalue immediately because they have to clean up corruption. Article: "Al-Halbousi faces 4 criminal charges after the end of his presidency" Boom!... Halabousi is going to be facing 4 criminal charges.
In order for the 2023 budget to be implemented Iraq needed to have publicly posted in the Gazette the budget operating instructions. They never did that. That step never happened... Iraq has not implemented its '23 budget that's why they have to resort to financing salaries and have done so since July...If they had an active budget they would not need to finance.
You're like, why hasn't Iraq revalued? They've gotten everything done?' And they do! Iraq has everything done. They're ready to revalue but they're not going to revalue till they tackle corruption...They have to remove this corruption.
If you are being forced to rely on the US dollar that strengthens the US dollar. Think supply and demand. If the US keeps going around forcing these countries to have a dual currency and to take the US dollar, people will rather have the US dollars.
They believe those dollars to be stronger but as people start to de-dollarize and get away from using the US dollars and start using their currencies that strengthens their currency and weakens the US dollar..
[Response to Guru Nader below]
What I'm about to talk about proves Iraq has potential to be much much richer than Kuwait and could have much more valuable currency than a Kuwait dinar... [Guru] Nader is stating Iraq is 100, no, 1000 times richer than Kuwait. I've done a side-by-side comprising...
What makes Kuwait such a rich nation, Iraq absolutely has a lot more. But what's keeping Iraq behind is the following - ...Nader is right, when it comes to oil. Iraq has so much more than Kuwait does and Kuwait relies on their export of oil to make their country rich. The difference between Kuwait and Iraq is Kuwait has other things bringing money into their country besides oil.
They have things they can fall back on...GDP per capita...according to World Bank data Kuwait had a GDP per capita of approximately $29,000 in 2019 while Iraq was $5,000...Kuwait does share the wealth with the citizens, Iraq was not doing that. This substantial difference in GDP per capita clearly indicates Kuwait is wealthier on a person basis than Iraq.
Even thought that's true it doesn't mean Iraq can't turn around get their crap together because if they did they would easily smash Kuwait...Once the Iraqi people are becoming prosperous as well you're going see Iraq pass up Kuwait as far as being a rich nation...Kuwait's got their act together. We need Iraq to do the same thing.
Al-Allaq: There Will Be Blockade Operations For Each Category That Will Put Pressure On The Cash Dollar In The Market
Economy | 11/24/2023 Baghdad - Mawazine News Today, Friday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, announced the start of importing dollars into the country through the accounts of Iraqi banks abroad, and while he indicated the end of procedures to open accounts in the UAE dirham and the understanding with Turkey to make transfers in euros or the Turkish currency, he revealed a broad plan to reform and develop private and government banks. .
Meeting with the US Treasury and the Federal Bank. Al- Alaq said in an interview with the official agency, followed by Mawazine News, that “the Central Bank of Iraq is in constant communication with the US Treasury and with the US Federal Bank,” indicating that “this communication continues permanently, and there are quarterly meetings held.” To review all matters related to this relationship.”
He added, "There is a meeting that will be held at the beginning of next month as part of the periodic quarterly meetings held between the Central Bank, the Federal Bank, and the Ministry of Treasury, where in these meetings we review all matters with emphasis and focus on the issue of regulating external transfer in a way that ensures the safety of the financial system, especially after the implementation of the new transfer system." external environment, which requires a lot of coordination.
He stated that "these developments that have taken place are radical and not formal developments within the framework of reorganizing trade on sound foundations and organizing external transfer on sound foundations," explaining that "the details related to this issue require coordination and joint cooperation between the Central Bank and those parties."
He stressed that "the next meeting will be in the Emirati city of Dubai," pointing out that "there are quarterly meetings in addition to emergency organizational meetings or communications via phone or video."
He agreed to strengthen banks with dollars and stated that “the Federal Bank agrees with the Central Bank on the need for them to exit the process of conducting the executive aspects of external transfer and their role is limited to supervision and control, and this is normal in central banks that do not exercise these executive roles or detailed operations with regard to transfer.”
Therefore, the plan and agreement between us was for the Central Bank of Iraq and the Federal Bank to exit these procedural processes, confirming the development of a plan to shift the external transfer process from the electronic platform that will be completed at the beginning of next year.
He pointed to creating a new relationship between Iraqi banks and internationally accredited correspondent banks abroad, where the process would be limited between them, and the role of the Central Bank of Iraq and the US Federal Reserve would be the process of monitoring and supervision, and we began some time ago trying to find a relationship between correspondent banks and our Iraqi banks.
“Opening more than 40 He opened a bank account and stated: “We have greatly succeeded in this context, and we were able to open more than 40 accounts for Iraqi banks with correspondent banks or abroad,”
Diversifying Currencies
and stating that “to increase flexibility and facilitation in the external transfer process, we have diversified the currencies in which transfers are made to Abroad, and we now have transfers in addition to the dollar, euro and UAE dirham.”
Understandings For Making Transfers Through Turkish Banks
He stressed that "the procedures have been completed for opening accounts in the dirham, the Chinese yuan, and the Indian rupee," noting that "there are preliminary understandings with the Turkish side to make transfers through Turkish banks in the euro or the Turkish currency."
He stated that "this issue is important and is being conducted in coordination with the Federal Bank and the US Treasury, and they are helping us in this," noting that "this is the opposite of what some understand as an escape from the pressures of the Federal Bank regarding the dollar, as these currencies are covered by the dollar and we buy them from the dollars in the bank.
" The Federal Bank, which is not far from the Federal Bank, but rather with the coordination and support of the Federal Bank, as it wants to reach with us the desired goal, which is to have a relationship between Iraqi banks and correspondent banks.”
He stated, "This is happening for the first time by opening this number of accounts for our banks, and it is a very important step to strengthen the banking system in Iraq, because accepting these banks means that they now have systems capable of being accepted internationally," explaining that "any correspondent bank currently accepts... By opening an account with an Iraqi bank after ensuring that this bank has the necessary systems, standards, conditions and rules under which it operates.”
End Of Work On The Electronic Platform.
Al-Alaq confirmed that “this will lead to the end of work on the electronic platform in the year 2024,” explaining: “We have reached an advanced level and with the completion of the other episodes, we will leave this method.”
He stated, "In this case, operations will be faster, easier, and more disciplined, because these internationally accredited correspondent banks have complete systems for conducting audit and monitoring operations before implementing this operation."
Treating Rejected Transfers Gradually.
Al-Alaq pointed out that “this will gradually reduce the percentage of rejected transfers,” pointing out that “rejecting transfers has reasons, but the banks and transferring people will learn the conditions and points that must be taken into account when submitting a transfer request, as there are formal issues, for example, coding.
” The numbering, and there are required documents and review for the final beneficiary, is that there are well-known companies, and the prices are reasonable, etc., and over time, the importer or the applicant gets used to adapting or providing the requirements for the transfer.”
The fact that the American side is reducing the amount of dollars, and he stated that “the Federal Reserve and the US Treasury are responding to all requests related to the process of providing and strengthening the dollar that Iraq needs by following sound rules and standards for the movement of money,” explaining that “this is in the interest of the two countries and ridding the financial system of any suspicious operations such as laundering operations.
Understandings For Making Transfers Through Turkish Banks
He stressed that "the procedures have been completed for opening accounts in the dirham, the Chinese yuan, and the Indian rupee," noting that "there are preliminary understandings with the Turkish side to make transfers through Turkish banks in the euro or the Turkish currency."
He stated that "this issue is important and is being conducted in coordination with the Federal Bank and the US Treasury, and they are helping us in this," noting that "this is the opposite of what some understand as an escape from the pressures of the Federal Bank regarding the dollar, as these currencies are covered by the dollar and we buy them from the dollars in the bank.
" The Federal Bank, which is not far from the Federal Bank, but rather with the coordination and support of the Federal Bank, as it wants to reach with us the desired goal, which is to have a relationship between Iraqi banks and correspondent banks.”
He stated, "This is happening for the first time by opening this number of accounts for our banks, and it is a very important step to strengthen the banking system in Iraq, because accepting these banks means that they now have systems capable of being accepted internationally," explaining that "any correspondent bank currently accepts... By opening an account with an Iraqi bank after ensuring that this bank has the necessary systems, standards, conditions and rules under which it operates.”
End Of Work On The Electronic Platform.
Al-Alaq confirmed that “this will lead to the end of work on the electronic platform in the year 2024,” explaining: “We have reached an advanced level and with the completion of the other episodes, we will leave this method.”
He stated, "In this case, operations will be faster, easier, and more disciplined, because these internationally accredited correspondent banks have complete systems for conducting audit and monitoring operations before implementing this operation."
Treating Rejected Transfers Gradually.
Al-Alaq pointed out that “this will gradually reduce the percentage of rejected transfers,” pointing out that “rejecting transfers has reasons, but the banks and transferring people will learn the conditions and points that must be taken into account when submitting a transfer request, as there are formal issues, for example, coding.
” The numbering, and there are required documents and review for the final beneficiary, is that there are well-known companies, and the prices are reasonable, etc., and over time, the importer or the applicant gets used to adapting or providing the requirements for the transfer.”
The fact that the American side is reducing the amount of dollars, and he stated that “the Federal Reserve and the US Treasury are responding to all requests related to the process of providing and strengthening the dollar that Iraq needs by following sound rules and standards for the movement of money,” explaining that “this is in the interest of the two countries and ridding the financial system of any suspicious operations such as laundering operations.
The government issued a decision not to deal in dollars locally. As for the second class, they are the merchants who import some materials and do not enter the platform or transfer in the proper manner. We began by analyzing these categories, such as the cigarette trade, which takes the dollar from the market at a percentage 100 percent.
As we began to analyze the materials entering Iraq, such as some mobile phones and other materials, a decision was issued stating that these materials must have proof that they entered Iraq based on a fundamental external transfer. If these goods do not carry an official fundamental transfer, this means that they are goods. "I entered illegally."
Following Up On The Market
and stating that “there will be follow-up operations in the market, and even in the warehouses, to ensure that these materials enter based on an official transfer so as to keep them away from pressure on the cash dollar market, and we will expand this to other categories, and any category we find is making non-fundamental transfers.” Or by paying cash, we will besiege it.”
Transfers From Iraqis In Dollars
, and he pointed out that “the general principle is what was approved by the Council of Ministers that trading or payment inside Iraq is in dinars, but there are cases that are being studied at the present time, and there was a meeting in the Ministry of Planning regarding contracts in their various forms and how to make payment options, whether in dinars.” Or in dollars, as a group of proposals were put forward that we are now studying,” noting that “some types of contracts or obligations with foreign companies previously will continue to be dealt in dollars, and we are studying other cases to develop the best or most appropriate method for them.”
He pointed out that "in the past, inward transfers did not matter to the beneficiary if they were given in dinars, but now, because of the price difference, it is a temporary solution and we are working to solve the problem radically."
The mechanism for importing dollars by private banks. Al- Alaq announced the start of supplying dollars into the country from the accounts of Iraqi banks abroad, explaining that “the supply of dollars from abroad comes from what is in the accounts of Iraqi banks abroad. For example, we have an account in a bank, so we can withdraw it in cash or a check, and it is transferred.” In cash, and it has benefits, including that the amounts come into the country instead of abroad.”
He explained that the instructions of the Central Bank will not allow the bank to keep a large amount of foreign currency abroad, as there are certain percentages, in addition to preventing misuse of this currency coming into the country, and we put Rules for its uses.
He warned that "the Central Bank is studying the request of the bank that supplies the dollar and its needs before giving approval and verifying the source of the amount and even the transporting company, in addition to verifying the uses of this amount."
He pointed out that "because of the price difference, there was pressure on banks to withdraw their balances or transfers received from the dollar, which led to some banks becoming scarce in the currency," explaining that "foreign currency can be available in more than one way, not only through the central bank." We seek to deepen this practice.”
He stated: “As long as our Iraqi banks have balances abroad in foreign currencies, it is better for us to enter them, and this supports the reserves in the central bank, that is, instead of the bank using its foreign currency reserves, the currency will be available from the banks’ accounts, and this is an important point.”
A Study To Restructure Banks In Iraq.
Al-Alaq confirmed that “there is a broad reform plan for private banks with mergers and correction operations in some of their situations, and there is a broad plan for government banks, some of whose details will be announced, and we are working with Prime Minister Muhammad Shiaa al-Sudani in this regard,” pointing out that “government banks It represents the greatest weight in the banking sector, and we must put it in the best possible way.” https://www.mawazin.net/Details.aspx?jimare=238455