Tuesday, December 26, 2023

The Iraqi dinar recovered against the dollar amid government measures to confront speculators, 27 DEC

The Iraqi dinar recovered against the dollar amid government measures to confront speculators, 27 DEC

On Tuesday, the Iraqi dinar gained against the dollar at the currency exchange in Baghdad. This is because the Iraqi government and monetary authorities are taking measures to combat the parallel market and punish currency speculators.

Today, on Tuesday, the Al-Kifah and Al-Harithiya Stock Exchanges in Baghdad, along with the Erbil Stock Exchange, witnessed a rise in the value of the Iraqi dinar as compared to the dollar. The dinar’s value increased by 1,490 dinars to one dollar, which is the highest it has been in more than eight months. However, it still remains quite far from the official value set by the Central Bank of Iraq, which is 1,320 dinars per dollar.

According to experts, the dinar’s exchange rate is expected to increase against the dollar due to several reasons gradually. One of the main factors is the recent agreement between the Iraqi Central Bank and the US Federal Reserve. This agreement aims to transfer operations gradually to enhance the advance balance of the dollar in the accounts of a number of Iraqi banks.

In addition to imports from countries sanctioned by the US, such as Iran, Syria, and Lebanon, the Iraqi market now has standard financial systems that reduce demand for the dollar.

While some believe that trade exchange operations stagnate and deals temporarily cease at the end of each year due to the holiday season, others disagree.

The topic is “The recovery of the Iraqi dinar.”

Economic expert Abdul Rahman Al-Sheikhli has predicted that the exchange rate in Iraq may drop to 1,450 dinars per dollar in the near future due to current intervention methods.

During an interview with Al-Arabi Al-Jadeed, Al-Sheikhli explained that the value of the dollar may decrease if Iraq diversifies its sources of income. This could be achieved through the development of industry, agriculture, trade, and investment in other areas of wealth.

He emphasized that by investing in modern and advanced methods in management, work, industry, and agriculture, the rate of imports from abroad can be reduced. This will lead to the recovery of the national economy, which in turn will have a positive impact on the gross domestic product of Iraq.

Jamal Kujar, a member of the Finance Committee in the Iraqi Parliament, confirmed that the decrease in the dollar exchange rate is not inevitable.

During an interview with Al-Araby Al-Jadeed, Cougar clarified that the recent decline in the exchange rate is due to a decrease in demand for it in commercial and financial exchange operations. This is mainly because countries are celebrating the New Year.

According to him, the Iraqi financial market is dominated by a group of speculators who dictate prices based on the demands of their work in the market. He emphasized that the Iraqi government has no control over these speculators.

Koger noted that Iraq’s economic and financial structure is facing a fundamental issue, which is the imbalance resulting from its heavy reliance on oil exports. This has led to a dollar crisis, as the country needs dollars to cover its foreign expenses while remaining heavily dependent on imports due to the lack of effective national production.

Ali Jassim Al-Hayani, an economic researcher, predicts that although there may be an increase in demand for the US dollar by the end of 2023 due to a significant number of Iraqis traveling abroad for the end-of-year vacation and the halt of commercial activities, the exchange rate may still decrease significantly if the Iraqi government implements strict measures against speculators.

During an interview with Al-Arabi Al-Jadeed, he stated that the decline was due to the reduction in black transfers following Iraq’s recent agreement to finance foreign trade using non-dollar means, particularly with Turkey.

“He cautioned against using money laundering networks and influential parties to gain direct control of the dollar in the market after a decrease in prices. He called on the government to implement economic security measures and enforce them in the market to prevent fraud and price manipulation.”

Government actions

Hisham Al-Rikabi, the Media Advisor to the Presidency of the Government, has announced that the Iraqi government is taking serious measures to address the issue of the dollar shortage. The government is implementing several legal and administrative measures to combat currency smuggling operations and to prevent manipulation of the exchange rate.

According to a press statement by Al-Rikabi, the government’s battle with the dollar is almost over and its financial system reform measures have strengthened confidence between Baghdad and Washington.

“He mentioned that the Iraqi government’s efforts to reform financial institutions and improve monetary systems were crucial and effective in restoring balance and building trust between Iraq and the United States. These efforts have resulted in positive steps towards achieving success in the Iraqi banking sector.”

He mentioned that the currency market is expected to undergo a significant change in the upcoming days. This is due to the government’s actions and instructions to the Central Bank to take decisive measures to tackle the issues of manipulation and smuggling.

The US Ambassador to Iraq, Alina Romanowski, said last Sunday that her country continues to provide dollar services to Iraq in the interest of economic stability.

On her account on the “X” platform, she stated that many Iraqi banks have established relationships with international banks. She described this as a positive step towards reforming the Iraqi banking sector.

"RV UPDATE" BY NADER FROM MID EAST, 27 DEC

 Nader From The Mid East  

  I'm not saying the rate is going to change the 1st of January but things going to be stronger, a lot stronger.  Once they start using the dinar they're going to be a lot stronger...

Article quote:  "Salih the financial advisor to the Prime Minister confirmed that the dollar exchange rates in the parallel market began to approach the official price set at 1320 per dollar after recent measures taken by the central bank and the Iraqi government..."

That's what's slowing down all this process.  It's people still using the dollar in Iraq.  Even me, I use the dollar in Iraq.  When I was there last week I use a dollar in Iraq.  Why Because it's a lot easier.  It's smaller.  You don't carry a lot.  You carry $500, $600, $700 with you, $1000 max...If I didn't have the dollar and If the dinar for me to carry...it would be a lot in my pockets..

 The facts are the facts.  If they delete the dollar, if they take off the dollar from the markets in Iraq, they're going to have to come out with a small category of dinar.  That's it.  Why?  Because it's too much dinars to carry...I'm not going to cary 150,000 dinars in my pockets.   I'm not going to do that. I prefer to have $100 than 150,000.

 Everybody's asking me what's going on.  What's the news.  The news, you will see it on the 1st of January - what exactly is going on.  They already gave you a date.  I told you the 1st of January we'll be out of the dollar.  We will not work with the dollar anymore in Iraq.


 Everybody's asking me what's going on.  What's the news.  The news, you will see it on the 1st of January - what exactly is going on.  They already gave you a date.  I told you the 1st of January we'll be out of the dollar.  We will not work with the dollar anymore in Iraq.

A Deficit Of 39 Billion Dollars.. A Specialist Comments On International Reports That Warned Of The “Collapse Of The Iraqi Economy” , 27 DEC

 A Deficit Of 39 Billion Dollars.. A Specialist Comments On International Reports That Warned Of The “Collapse Of The Iraqi Economy

Economy |12-23-2023, Baghdad today – Baghdad   Today, Saturday (December 23, 2023), economic expert Manar Al-Obaidi commented on the international reports issued by the International Monetary Fund and the World Bank regarding the Iraqi economy.

Al-Obaidi told “Baghdad Today” that  “there is ambiguity in the reports issued about the Iraqi economy, and  there is a statement from the International Monetary Fund that was not positive, but rather wanted to formulate the matter in a diplomatic way that is more positive.”

 He added, "The second report was issued by the World Bank, which is an extensive report that talked about the various aspects of the Iraqi economy, pointed out its shortcomings, and mentioned some important information that if it is not taken seriously by the government, we will be facing a major and difficult challenge that may lead to the complete collapse of the Iraqi economy."

The expert in economic affairs stated,  “The World Bank report stated that if Iraq wants to spend all sections of the 2024 budget, the average selling price of a barrel of Iraqi oil must not be less than 112 dollars, but if the current price rates continue, it will lead to a deficit of 39 dollars.”

One billion dollars will be covered from the reserves achieved from previous years in which Iraq achieved a surplus, specifically in 2022 and 2023.”

Earlier today, Saturday (December 23, 2023), economic expert Nabil Al-Marsoumi summarized 7 risks facing Iraq that came in the latest report of the International Monetary Fund.

Al-Marsoumi said in a clarification received by “Baghdad Today” that

“despite the positive signals included in the report of the International Monetary Fund experts after their visit to Iraq on December 19, 2023, which included a recovery in economic activity in Iraq and a decline in inflation rates, the report indicated in detail some risks.” Challenging the Iraqi economy.

He explained that the most important of these risks are:  

First: The significant expansion of public finances within the framework of the effective three-year budget law imposes significant and important risks on the sustainability of the public finances and the external sector in the medium term.

Second: Exercising caution in public financial conditions and implementing structural reforms are considered extremely important factors in ensuring the protection of macroeconomic stability and sustainability, and achieving lasting and more comprehensive growth.

Third: The decline in oil production after the closure of the oil pipeline linking Iraq and Turkey, and the reduction in production at the request of the OPEC+ group, will work together to reduce the growth of the gross domestic product in the years 2023 and 2024.

Fourth: The public finance balance is expected to transform from a large surplus achieved in 2022 to a budget deficit in 2023. Experts expect the size of the government’s fiscal deficit to expand further in 2024, reflecting the full annual impact of budget measures.

Fifth: The significant expansion of public finances, including a fundamental increase in the numbers of members of the public sector and retirement, creates permanent requirements for public spending that will put pressure on public funds in the medium term.

Sixth: Mobilizing more non-oil revenues, containing the wage bill for government employees, and reforming the government retirement system. These measures must be supported by a move to a more targeted social safety net that works to provide better protection for vulnerable groups.

Seventh: The necessity of creating equal opportunities for the private sector by implementing reforms in banking and the electricity sector, reducing distortions in the labor market, and continuing to make efforts aimed at strengthening governance and reducing the spread of corruption.

https://baghdadtoday.news/238390-عجز-بـ-39-مليار-دولار.-مختص-يعلق-على-تقارير-دولية-حذرت-من-انهيار-الاقتصاد-العراقيّ.html

"RV UPDATE" BY PIMPY, 27 DEC

 Pimpy   

Iraq has experienced multiple devaluations and revaluations of the currency...From 1988 to currently where we are these are the major events that affected currency.  1988 the IQD as introduced.  This was replacing the IQP (Iraqi pound).  This was done at a fixed rate of 1 to 1.  

You could exchange your IQP straight across 1 for 1 for the Iraqi dinar (IQD).  1990 when Bush went to war with Iraq of course the gulf war caused significant devaluation of the IQD.  The currency lost about 80% of its value against the US dollar.  You could exchange 1 Iraqi dinar for $0.31 cents US.

  The funny thing is I would take that right about now because I have about four or five million Iraqi dinars. If it jumped up to $0.31, woo, I'd be happy with that because I'd get over a million dollars back.  1995 the IQD was officially pegged to the US dollar at a fixed rate of 1 IQD for $2.85 USD.  2003 we know the US led an invasion of Iraq...

This led to economic instability and currency fluctuations.  The Iraqi dinar was devalued to around 1 IQD for $1.30 USD...Got rid of the ones with the faces of Saddam Hussein... 1 new IQD was equivalent to 1,000 old IQDs.  In 2012 the central bank...allowed the IQD to float freely.  This led to a significant devaluation of the currency with the IQD losing 20% of its value...

2014 IQD experienced another devaluation.  This time it was due to the decline in oil prices and conflict with ISIS.  The currency lost about 15% of its value against the USD.  [Later] the CBI implemented a new exchange regime allowing the IQD to float freely against the basket of currencies.  This led to further devaluation of the currency with the IQD losing another 10% of its value against the US dollar and then not even a year later to turn around and...increase the value of the Iraqi dinar exchange rate...So yeah at one time the Iraqi dinar was more valuable than the US dollar.  Do I think it can get there again?  Of course  I believe that absolutely but there are hurdles that Iraq has to get over.

The Council of Ministers approves the draft economic reform law and issues a number of decisions, 26 DEC

 The Council of Ministers approves the draft economic reform law and issues a number of decisions, 26 DEC

Politicy: Al-Furat News} Prime Minister Mohammed Shia Al-Sudani chaired today, the fifty-second regular session of the Council of Ministers, during which the general situation in the country was discussed, discussed the most prominent economic and service files included within the government program, deliberated on topics related to the agenda, and directions and decisions were taken on them.

In the framework of the government’s support for the sports sector, and in order to support the national team’s trip in the Asian Cup, which will start next month in Qatar, the Prime Minister directed the Ministry of Transport to operate discounted flights for Iraqis wishing to attend the tournament, who have official cards approved by the organizing committee. He also directed the Ministry of Foreign Affairs to communicate with the Qatari side in order to facilitate the obtaining of their entry visas.


In the context of the session, the Council of Ministers approved the ownership of displaced and displaced families from the (Saleen) area in the province of Basra, which number (250) families; the land previously allocated to them outside the borders of the municipality of Basra at the real price, an exception to the public bidding procedures stipulated in the amended Law on the Sale and Rent of State Funds (21 of 2013).
On the path of continuous government support for young people, the Council of Ministers approved the amendment of paragraph (29) of the Council of Ministers Resolution (23465 of 2023) on the proposals of youth, to become as follows:
– The funding of grants for the winning programs shall be from the amount of 5 billion dinars, allocated to the Department of Non-Governmental Organizations, in the General Secretariat of the Council of Ministers; to support voluntary organizations and teams.


Within the directives of the Prime Minister to proceed with the completion of the projects that have been delayed, including the Baghdad Metro project, the Council agreed to include (preparing designs and supervising the implementation of the Baghdad Metro project) within the investment budget schedules of the Baghdad Secretariat for 2023 at a total cost of (9138040000000) dinars, only nine hundred and thirteen billion, eight hundred and four million dinars, after completing the listing requirements by the Secretariat of Baghdad and later confirming the investor’s bearing the full cost of the project.


In the energy file, the recommendation of the Ministerial Council for Energy (23101 I) for the year 2023 was approved regarding the approval of the recommendation of the opinion body in the Ministry of Electricity, according to the following:


Authorize the Minister of Electricity, or his authorized member, to sign a memorandum of principles of cooperation between the Ministry of Electricity and the company (Toyota Tsusho Corporation) in line with the ministry’s plan and the available financial allocations.
Also in the energy file, the recommendation of the Ministerial Council for Energy (23098 C) of 2023 was approved, as follows:
1. The financing of the share of the Ministry of Oil / Basra Oil Company in the West Qurna/1 field in the operation, based on what was stated in the Council of Ministers Decision (2 of 2022) in the amount of (250) million dollars, during the allocation of quantities of crude oil issued by the Oil Marketing Company and deposited in a bank account opened for this purpose (outside Iraq), and this is regulated by a special agreement with the new main operator of the field (Basra Oil Company).
2. The fact that the field is one of the components of the petroleum licensing rounds project included within the investment plan, which is financed in kind by crude oil, so the restriction settlement of the amount indicated in paragraph (1) mentioned above, from the allocations of the project included in the Federal Budget Law (13 of 2023) and the same mechanism followed by the Ministry of Finance, is regulated in conducting settlement restrictions for other oil fields.


3. Profitable wages, administrative charges and benefits resulting from its participation in the service contract for the West Qurna/1 field shall be for the benefit of the Basra Oil Company, similar to the company’s share in the Zubair oil field.


4. The signing of a share sale agreement between ExxonMobil and Basra Oil Company, entailing payment of the price of the sale of the share after the final settlement in kind with crude oil.


The Council of Ministers approved the increase of the capital of the General Company for the Management of Private Transport to become (30301762716) dinars, only thirty billion, three hundred and one million, seven hundred and sixty-two thousand, seven hundred and sixteen dinars, instead of its current capital of (675) million dinars, and by an increase of (29626762716) dinars, only twenty-nine billion, sixty-hundredred and twenty-two million, seven hundred and sixty-two thousand, seven hundred and sixteen dinars, based on the amended Public Companies Law (22 of 1997), and the Ministry of Transport shall take the necessary measures to implement what was mentioned in paragraph (1) mentioned above.
As part of the government approach to support antiquities and heritage, the recommendation of the Ministerial Council for Human Development (23037 b) for the year 2023 was approved, including the approval of the referral of the rehabilitation projects of the Nineveh Wall and the Qalaat Kirkuk (within the rehabilitation and maintenance projects of antiquities), to the discreet companies approved by UNESCO specialized, by adopting the direct invitation method, with the exception of the contracting methods described in the instructions for the implementation of government contracts (2 of 2014) for the specialized nature of those projects.


It was also agreed to correct the procedures carried out by the province of Babylon and to prepare a form of a contract, on the project to rehabilitate the road linking the governorate of Baghdad and the holy province of Karbala, to follow the fundamental procedures to disburse the entitlements of the two implementing companies (Babel Sarf Company and Al-Hussam Al-Arabi Company), with the contract to include the responsibility of the executing entity for the executed work and its commitment to maintenance work, provided that the governorate bear the validity and safety of the contracting procedures, and the governorate of Babylon shall be responsible for inventory of the work carried out and review their conformity with the required technical specifications, according to the schedule of pre-prepared quantities and the reality of the status of implementation and the reports of the hidden pretexts, with the support of the concerned technical committees.


The Council of Ministers approved the recommendations of the Ministry of Higher Education and Scientific Research, on the return of the headquarters of the Union of Arab Scientific Research Councils to Iraq, as follows:
1. The Ministry of Higher Education and Scientific Research prepares the headquarters of the Union of Arab Scientific Research Councils in Iraq, by conducting the restoration and rehabilitation of the building, completing the furnishing requirements, allowing the exercise of its activity, and from the revenues of the Higher Education Fund in the Ministry’s Center.
2. Instructing the Ministry of Finance to Iraq’s contributions be 50% of the Union’s annual budget, as of fiscal year 2025.
3. Instructing the Ministry of Foreign Affairs to facilitate the procedures of the employees of the Union of Arab Scientific Research Councils.
4. Private universities provide the necessary support to the Union in accordance with the Private Higher Education Law No. 25 of 2016.


The Council of Ministers continued to discuss other topics on the agenda, and the following decisions were taken:


First / Approve the draft economic reform law, and send it to the Council of State; for fundamentally scrutiny, and then return it to the General Secretariat of the Council of Ministers; to refer it directly to the House of Representatives, based on the provisions of the Constitution, taking into account the notes presented during the hearing.

Second / Amending the name (Baghdad International Film Festival / First Session), indicated in the Council of Ministers Resolution (23098 of 2023), to be the name (the first youth cinema festival for the year 2023).
Third / Approval of what came from the Ministry of Interior, regarding the project of establishing, equipping and installing an integrated camera system, and the cost of cameras is secured from the revenues of border ports (50%) the share of Baghdad Governorate, under the contract concluded between the implementing company and the Ministry of Interior.
Fourth: Reallocation of an amount to the Ministry of Health; to finance contracts of medicines, medical devices and medical supplies, based on the provisions of the Federal Budget Law (13 of 2023), recovered from the International Convention on Vaccines (GAVI).

https://alforatnews.iq/news/مجلس-الوزراء-يوافق%C2%A0على-مشروع-قانون-الإصلاح-الاقتصادي-ويصدر-جملة-قرارات

ANALYSIS OF IRAQ NEWS: NEW STATEMENTS FROM THE GOVERNOR OF THE CENTRAL BANK OF IRAQ BY MNT GOAT, 26 DEC

NEW STATEMENTS FROM THE GOVERNOR OF THE CENTRAL BANK OF IRAQ

The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Friday, the continuation of financing foreign trade in several foreign currencies in addition to the dollar. While he pointed out that the banking sector’s implementation of compliance rules strengthens Iraq’s financial position globally, he pointed out that there is international welcome from the US State Department and the International Monetary Fund for what the bank implemented measures that strengthened the banking sector’s commitment to these rules.

Al-Alaq said, “The Central Bank followed a plan that included mobilizing all requests for the dollar within the proper and proper channels, while attracting all merchants, importers, and those in need of external transfers within these frameworks and channels.”

(Oh… gee whiz there’s the mention of the “plan” again.)

He added, “The more the size of these channels and the number of participants expand in them, the more it affects two things positively. The first is the exchange rate and its stability, and the second is providing the correct compliance rules, which strengthens the reputation of the country and the banking sector externally and strengthens Iraq’s financial position globally. This matter is currently being done with an exceptional and great effort, as for the first time it is witnessing Iraq: Reorganizing the external transfer process through correspondent banks instead of the central bank or the Federal Bank being the executive interface for this process.

He continued, “In fact, this process is not the best practice in the world. Rather, it is better for all transfers to be through a relationship between the local Iraqi bank. The external correspondent bank and the Central Bank undertake the process of monitoring, supervising and enhancing foreign currency balances abroad to cover these needs.”

Al-Alaq stressed, “This matter was achieved by introducing a series of currencies into foreign trade, including the Chinese yuan, the Indian rupee, the euro, the Turkish lira, and the Emirati dirham, in addition to the dollar. Wherever there is a need that depends on the weight of trade between us and the country with which there is trade activity, we will use those currencies.”

He pointed out that “the US Department of the Treasury and the Federal Bank very much welcomed the central bank’s steps related to the use of correspondent banking channels, and also the application of compliance procedures and rules followed by the central bank. This also appeared in the recent International Monetary Fund report, which praised the central bank’s efforts within the framework of the banking sector’s compliance with anti-corruption rules.” Money laundering and terrorist financing,” according to the official agency.

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/

Advisor to the Sudanese: We aspire to the end of the parallel market for the dollar in the coming days, 26 DEC

 {Economic: Al-Furat News} The media adviser to Prime Minister Hisham Al-Rikabi announced that the government is committed to the implementation of the electronic payment decision in various ministries.

“In the coming days, we have an ambition to reach the end of the parallel market for the dollar,” Al-Rikabi said in a tweet on {X}.
It is noteworthy that local markets have been witnessing for days a noticeable decline in the exchange rate of the dollar, as it fell for the first time in months to below 1500 dinars per dollar.
Al-Rikabi said yesterday that “the battle with the dollar is nearing its end,” referring to government measures in limiting the rise of the currency in the parallel market and making it close to the official price of the Central Bank of 1320 dinars to the dollar.

https://alforatnews.iq/news/مستشار-للسوداني-نطمح-لنهاية-السوق-الموازي-للدولار-في-الأيام-المقبلة

ANALYSIS OF IRAQ NEWS : ALI AL-ALAQ: THE CENTRAL BANK FOLLOWED A PLAN THAT POSITIVELY AFFECTED THE DOLLAR EXCHANGE RATE AND ITS STABILITY BY MNT GOAT, 26 DEC

ALI AL-ALAQ: THE CENTRAL BANK FOLLOWED A PLAN THAT POSITIVELY AFFECTED THE DOLLAR EXCHANGE RATE AND ITS STABILITY

The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Friday, the continuation of financing foreign trade in several foreign currencies in addition to the dollar, while noting that the banking sector’s implementation of compliance rules strengthens Iraq’s financial position globally, pointing out that there is an international welcome from the US State Department and the International Monetary Fund. International Bank, with the procedures implemented by the bank that strengthened the banking sector’s commitment to these rules.

Al-Alaq added in a press statement to the official agency, followed by NRT Arabia, that “the Central Bank followed a plan that included mobilizing all requests for the dollar within the proper and original channels, while attracting all merchants, importers, and those in need of external transfers within these frameworks and channels.”

(Oh… gee Whiz have I not been talking about the 2011 plan all along. Now you see evidence of it and that they are following it)

He said, “The more the size of these channels and the number of participants expand in them, the more it affects two things positively.

1.The first is the exchange rate and its stability, and 

2.the second is providing the correct compliance rules, which strengthens the reputation of the country and the banking sector externally and strengthens Iraq’s financial position globally. 

This matter is currently being done with an exceptional and great effort, as for the first time it is witnessing Iraq: Reorganizing the external transfer process through correspondent banks instead of the central bank or the Federal Bank being the executive interface for this process.

He explained, “This process is true. It is not the best practice in the world. Rather, it is better for all transfers to be through a relationship between the local Iraqi bank and the external correspondent bank, and the central bank carries out the process of monitoring, supervising, and enhancing foreign currency balances abroad to cover these needs.”

Al-Alaq stressed that this matter was achieved by introducing a series of currencies into foreign trade, including the Chinese yuan, the Indian rupee, the euro, the Turkish lira, and the Emirati dirham, in addition to the dollar, and wherever there is a need that depends on the weight of trade between us and the country with which there is trade activity, we will use that currency. Currencies.

He pointed out, “The US Department of the Treasury and the Federal Bank very much welcomed the central bank’s steps related to the use of correspondent banking channels, and also the application of compliance procedures and rules followed by the central bank. This also appeared in the recent International Monetary Fund report, which praised the central bank’s efforts within the framework of the banking sector’s compliance with the rules.” Combating money laundering and the financing of outlaw groups.

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/


Al-Kadhimi: Iraq’s treatment of a basket of currencies reduces the dominance of the dollar and the government with an economic battle, 26 DEC

 Al-Kadhimi: Iraq’s treatment of a basket of currencies reduces the dominance of the dollar and the government with an economic battle, 26 DEC

{Economic: Al-Furat News} A member of the parliamentary financial committee, Moeen Al-Kadhimi, treated Iraq with a basket of currencies “reduces the dominance of the dollar,” while he waved to challenge the government with an economic battle.

Al-Kademi said, for the program of {State Dialogue} broadcast by the Al-Euphrates Satellite Channel this evening, that: “The committee hosted the Governor of the Central Bank of Iraq and a deputy for multiple sessions. The issue of the dollar was discussed, and the package of measures taken by him, the latest of which is the import of cash blocks of foreign currencies under certain conditions, in addition to the recent measures and the consensus with the US Federal to agree to deal with the UAE dirham, the euro, the Chinese yuan and the Indian ruppe, all contributed to reducing the exchange rate.”


He added, “Some banks have started to import the dollar, but they are not sufficient for the black market, and the sales of the central bank are large and we are surprised by their inadequacy for trade.”


Al-Kazimi pointed out that “the Finance Committee continues with the Central Bank and its follow-up and submitted proposals to take some of them and others are still in the bank’s commerge, including the industrial initiative, which will gradually work on some industries to become their production internally to reduce the demand for the dollar.”
He continued, “Control of customs and border crossings contributes to the stability of currency exchange internally, and the Central Bank, in cooperation with parliamentary finance, seeks to facilitate the work of Iraqi traders,” stressing “the need to start the allocation committees in the House of Representatives with their work, which is the responsibility of the heads of the committees.”


Al-Kazimi added, “The state of competition in the local market forces the trader to resort to the official price, and the regular distribution of the ration contributed to the stability of food prices,” calling on the Sudanese government to “address the Ministry of Commerce radically regarding the quality of the ratification items, which affects the lives of citizens.”
“There must be political solidarity and national vegetation; to bring back some industries and agriculture to promote the local market and imports should be controlled in order to strengthen Iraqi industry,” he continued.
Al-Kazemi pointed to “the reasons for the policy of the US federalism against Iraq as a matter of pressure on the Iraqi government for that central bank, explained these things and demanded that the Federal Reserve to explain the reason for the rejection of remittances without justification.”


He explained, “The regulation of financial transactions and foreign trade enhances Iraq’s position in financial politics, and Iraq must deal with a basket of currencies in addition to the dollar gradually so that it is not governed by federal instructions in addition to reducing import.”
“The government has a real battle to address the economic situation and the political blocs are required to strongly support this trend,” Al-Kazmi concluded.

From: Raghad Daham

https://alforatnews.iq/news/الكاظمي-تعامل-العراق-بسلة-عملات-يقلل-هيمنة-الدولار-والحكومة-بمعركة-اقتصادية

ANALYSIS OF IRAQ NEWS: PARLIAMENTARY OIL: APPROVAL OF THE OIL AND GAS LAW DEPENDS ON ONE CONDITION BY MNT GOAT, 26 DEC

 PARLIAMENTARY OIL: APPROVAL OF THE OIL AND GAS LAW DEPENDS ON ONE CONDITION

Member of the Parliamentary Oil and Gas Committee, Kazem Al-Touki, revealed the approval condition for approving the oil and gas law.

Al-Touki said {to Al-Furat News} that: “Approval of the oil and gas law at this stage depends on the Kurdish interlocutor, if the center’s entitlements are provided and the ceiling of demands that complicated the law are waived.”

He explained, “The law in general solves all problems in the budget and revenues, each according to its entitlement.” Al-Touki pointed out that “this matter depends on the political situation, stability and trust between the center and the region.”

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/

Iraq’s forecast 2024: Will the mobile eliminate the “cash”.. And what do we know about FIB Bank?, 26 DEC

Iraq’s forecast 2024: Will the mobile eliminate the “cash”.. And what do we know about FIB Bank?

Baghdad – 964

Bankers and financial experts say that a remarkable jump in the number of Iraqis holding electronic payment cards, during the past months, is encouraging the expectation of major reforms in the type of commercial trading and financial services, and also leads to optimism for the success of the experience of “digital banks”, especially after the “first electronic bank” in Iraq (FIB) obtained a license from the Central Bank, to promote financial transactions through an application within mobile phones.

More than two million Iraqis have issued electronic bank cards over the past 10 months, according to the Association of Iraqi Banks.

The government says it is working to move towards electronic transactions with the aim of reducing corruption and money laundering and controlling the work of banks, instead of paying in fiat currency, but the process is proceeding slowly for various reasons, most notably the reluctance of citizens to adopt the card system, along with the failure of some commercial centers to deal with electronic POS points of sale.

Earlier this year, the government required malls, restaurants, private schools, universities, private colleges, gas processing stations of all kinds and locations and throughout Iraq, to open bank accounts and provide points of sale for electronic payment.

In addition to this path, which seems faltering despite its promising steps so far, local banks have dared to roll out the digital bank model that manages all its financial operations through mobile phones, according to specific criteria.

FIB says it is the first “Iraqi electronic bank” to offer online financial services, without having to check with the bank’s headquarters.

According to data published on its website, the bank relies more on technical experts than accountants, and the required jobs focus on programmers and technology engineers.

It is not yet clear the general indicators of the success of such banks in a country that has been accustomed to fiat currency for decades, and is now struggling to move to card payment late for all the countries of the region, but experts who spoke with the 964 network, said that the experience will constitute a paradigm shift in the Iraqi banking sector, although customers need to overcome their fears of digital transactions that are still new to the country.

Mahmoud Dagher, banker and financial expert for the 964 network:

An e-bank is a bank, like any traditional bank we do business with, but it doesn’t use routine methods that require meeting people in-person to complete and complete transactions.

The electronic bank conducts all its steps over the Internet, relying on digital tools in a special system.

Any citizen (or resident) can open online accounts, to withdraw and deposit funds in easy and secure steps.

Opening accounts and obtaining electronic cards is a good phenomenon, but an Iraqi gap in this area must be addressed, which has been exploited to withdraw the cash dollar outside Iraq and benefit from the price difference in the parallel market.

The e-bank move is a success for the banking sector by relying on electronic payment, but dollar exchange rates have not been affected by this issue so far.

Aland Saifuddin, Technical Director at FIB Bank, for Network 964:

FIB is the first digital bank in Iraq, operating with a license from the central bank.

The financial services we offer are very similar to what other banks offer, but through an in-mobile app.

Besides the digital service, there are branches of the bank in all governorates that provide their services to customers normally.

Anyone can open a bank account in the phone app, through easy and quick steps, and the customer can transfer or receive amounts while he is at home, within a very short time.

Customers’ rights are reserved because the central bank supervises the bank’s work and monitors the actions taken, as it does with the rest of the traditional banks.

Ali Tarek, Executive Director of the Association of Banks, Network 964:

The private banking sector has worked heavily on the development of infrastructure in terms of technology and many banking services are now available through electronic applications such as opening an account, issuing a bank card, transferring between funds, applying for loans and others.

The use of technology contributes to the access of banking services to all segments of society, and leads to increased financial inclusion.

Nabil Jabbar Al-Tamimi, financial expert for the 964 network:

The Iraqi government is trying with the Central Bank of Iraq to expand the work using electronic cards as one of the steps to localize funds for Iraqi government and private banks.

The first economic goal of the government is to provide cash primarily to banks to achieve development goals, and then other objectives that contribute to the process of pushing the commercial market, codifiing complexities and providing general facilities.

Iraqis rushed intensively to acquire electronic cards after government decisions that stipulated expanding the work of electronic cards, including limiting payment to gas stations with electronic payment cards, which may extend to exclusive means of payment for services provided by the government in general in the near future.

Electronic payment has several benefits, including the stability of the national currency, stimulus trade, tax discipline, ease of transactions, speed of trade and services, and control of state revenues.

Electronic payment requires the provision of appropriate infrastructures for such cash operations, such as servers, databases, control and protection programs, and payment and ATM ports.

https://964media.com/272719/


ANALYSIS OF IRAQ NEWS BY MNT GOAT,: PARLIAMENTARY RESPONSE: WHY DOES AMERICA NOT WANT POLITICAL STABILITY IN IRAQ? 26 DEC

PARLIAMENTARY RESPONSE: WHY DOES AMERICA NOT WANT POLITICAL STABILITY IN IRAQ?

Former member of the House of Representatives, Muhammad Ibrahim, confirmed today, Friday, that the American administration does not want political stability in Iraq, while explaining the main reason behind this.

“Washington seeks to maintain the economic stability that exists in Iraq, as destabilizing the situation in Iraq will make the Middle East region unstable.”

He stated that “America seeks to ensure the instability of the political situation inside Iraq, to  ​​ensure that no decision is taken to remove its forces from the country, and thus it continues to be present in military bases and continues its provocative operations against the security services in various regions of Iraq.”

He added, “The situation in Iraq will continue to be stable despite America continuing its provocations and operations against the security services and the Popular Mobilization Forces, and this makes the situation unstable inside Iraq.”

(All I can say is I told you so. I remember reading a CIA paper on Iraq years ago and it said that according to the US Intelligence Agency that Iraq CAN NOT become power in the region and exploiting its wealth to it’s full potential would allow this. Can you see now what the US is doing to Iraq? Can you see now the policy of the US and what is holding up the reinstatement. However, in spite of the US Iraq will liberate its currency as all obstacles are now removed and there are no more excuses to be used by the US, IMF and the World Bank.)

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/

Government Advisor: Iraq enters the advanced digital age in early 2024, 26 DEC

Government Advisor: Iraq enters the advanced digital age in early 2024

Economy News-Baghdad

The financial adviser to Prime Minister Mazhar Mohammed Saleh confirmed on Tuesday that Iraq will enter the advanced digital era early next year 2024, with a large official announcement.

Saleh said, “The government curriculum of Prime Minister Mohammed Shia Al-Sudani focused on the principles of reform work in the public administration, which took two basic directions, namely the elimination of the phenomenon of corruption in general and systemic corruption in particular, which is the most serious corruption that contributes more than one detail within the executive branch, and the second trend is to maximize the state’s non-oil revenues and make its percentage in the estimates of the federal budget no less than 20% instead of its low percentages of about 10% or even less, to ensure the goals within the current reform years.”

He added that “the non-oil revenue devices, which are led today by customs and tax bodies, border crossings and others, are at the forefront of the trends of financial and administrative reform. At the level of international indicators, there are three elements that mostly frustrate the efforts of countries in confronting financial and administrative corruption. The first is summarized as follows: dealing with paper transactions with the public and direct human communication, the second: direct monetary dealing in the settlement of levies and others and the risks generated in behavior, and the third: the absence of digital systems in the conduct of transactions without human intervention.”

He continued: “Based on the above, and in order to achieve the goal of the government program in reforming and replacing digital systems in dealing with non-oil voluntary devices, an accurate digital program is being adopted rapidly adopted by the government today, and is based on assessment, examination and electronic collection without direct human intervention and according to advanced digital systems carried out with solid national experiences and in cooperation with major international digital companies, in addition to the experiences of the United Nations Development and Trade Organization, especially in the digital development sectors at border ports, customs and taxes. Thus, Iraq will in early in 2024, has entered the advanced digital era rapidly and there will be a large official announcement in this regard.”

He pointed out that “the replacement of payment systems and the spread of digital transactions, starting from the digital government levies and ending in large and small payments within economic activity, which will culminate in the new digital era for Iraq,” noting that “the acceleration in the use of electronic payments is one of the guarantees of the banking business and the safety and sobriety of its operations, due to the decrease in the so-called (liquidity risk) of the banking system because of its knowledge of daily flows and balances continuously without interruption, which makes banks deal with (dual) flexible cash demand that is not shrinked by liquidity or anticipation of its loss, that is, without the availability of sufficient information due to the high state of uncertainty, which is the prevailing attribute when the absence of digital payment systems, which is disrupted at the same time And the need for accelerated funding to support economic activity.”

He stressed that “such phenomena will undoubtedly all disappear in the digital banking system, and the risk of cash liquidity will decrease due to the high levels of certainty in the flow of funds provided by digital systems in transactions between the public on the one hand, the public and banks on the other, within the framework of the operation of a highly governable and financial transparency digital payments system and meets the needs of the growth of the economic business sector without doubts and hesitation imposed by liquidity risks due to lack of information.”

He pointed out that “there is a correlation between financial inclusion, which means the delivery of banking services to the weakest segments of economic society and the development of digital payments. The replacement of digital payments includes the expansion and upgrading of the number of bank accounts. The opening of a bank account represents the essence of digital financial inclusion. With the development of the digital payments market in Iraq, it is noted that the phenomenon of the opening of bank accounts has increased in a remarkable way recently and tens of thousands of bank accounts that have begun to open daily and continuously, according to what the Association of Private Banks said a few days ago, which means that the Iraqi banking system is in an accelerated movement of change and development commensurate with the new digital age of Iraq, which His principles laid the current government program.”

https://economy-news.net/content.php?id=38875