An Economic Analysis Of The Reasons For The Rise In The Exchange Rate In Iraq.. This Is America’s Role
Information/private.. Today, Monday, an informed economic expert revealed the main reason behind the continued rise in dollar exchange rates in Iraqi markets, while he considered that the Central Bank’s negotiations with US Treasury aid “were not successful.”
Follow the “Al-Ma’louma” channel on Telegram.. News that does not require documentation..
The expert said, in an interview with the Maalouma Agency, that “the rise in the dollar exchange rates in the Iraqi markets came as a result of the recent decision of the Central Bank of Iraq, which stipulated reducing cash sales to exchange companies of various types by half, which was implemented since yesterday.”
He added, "The companies that used to get two million now have only one million, for example," noting that "this decision will lead to a large deficit in the local markets, because the exchange companies' sales go in parallel."
The economist (who preferred not to reveal his name) stated that “the decision to reduce the sales of exchange companies was taken at the request of the US Secretary of the Treasury during her visit to Baghdad.”
The expert stated, “The central bank negotiations with the American side were certainly not successful, and the evidence for this is the lack of control over the rise in exchange rates.”
Today, Monday, the dollar exchange rates witnessed a significant rise in the Iraqi markets, reaching more than 158 thousand dinars for every 100 dollars, amid fears that this rise will continue.
Earlier, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, discussed with the Assistant Secretary of the US Treasury, Elizabeth Rosenberg, bilateral relations and discussed the measures taken in the field of combating money laundering and terrorist financing. LINK
The Dollar Is Exhausting The Dinar.. The US Treasury Scatters Government Reforms And The Central Bank Negotiations “Fail”
Information / private.. The series of rising dollar exchange rates in Iraqi markets continues, amid conflicting opinions about the real reasons that led to the exhaustion of the local currency again, especially as it began to rise to levels that warn of a great danger to the country's economy.
Despite the many reasons, the timing of the visit of the US Assistant Secretary of the Treasury to Iraq and the meeting of the US delegation with the Governor of the Central Bank, and the subsequent significant rise in prices, raises controversy and questions.
Today, Monday, the dollar exchange rates witnessed a significant rise in the Iraqi markets, reaching more than 158 thousand dinars for every 100 dollars, amid fears that this rise will continue.
"Political file"
The economic file is perhaps more important than politics and what is happening in it, and it is the aspect that is focused on to thwart any government if it achieves successes and is able to get closer to the people.
Former member of the House of Representatives, Fadel Al-Fatlawi, considered the issue of the rise in the dollar exchange rate in local markets “purely political,” in relation to the relationship of the visit of the US Assistant Secretary of the Treasury to the rise of the dollar.
Al-Fatlawi said, in an interview with the “Al-Ma’louma” agency, that “the rise in the dollar exchange rates in the local markets inside Iraq is a political file to put pressure on Muhammad Shiaa Al-Sudani,” pointing out that “the government is serious about reducing the exchange rate, especially since it approved the amount of 132 thousand for every 100 dollars.” .
He adds, "There is a large financial reserve with the government, in addition to the large financial habits achieved from selling oil prices in global markets, all of which contribute to securing the Iraqi economy and maintaining the stability of the price of the local currency."
The former MP explains that “this pressure is being exerted on the government in agreement with the US Federal Bank,” suggesting that “prices will decline in the coming days.”
Al-Fatlawi explains, “The visit of the US Assistant Secretary of the Treasury to Iraq, in addition to the sanctions imposed on some banks, are all factors that caused the exchange rate to rise to these levels.”
"America's role"
The visit of US Assistant Secretary of the Treasury, Elizabeth Rosenberg, to Iraq scattered all the papers and reforms that the government was able to undertake during the previous period, and this was not to the liking of the American side, which imposed a new condition that led to prices rising again.
In turn, a knowledgeable economic expert revealed the main reason behind the continued rise in the dollar exchange rates in Iraqi markets, while he considered the Central Bank’s negotiations with US Treasury assistance “not successful.”
The expert stated, in an interview with the “Al-Ma’louma” agency, that “the rise in the dollar exchange rates in the Iraqi markets came as a result of the recent decision of the Central Bank of Iraq, which stipulated reducing cash sales to exchange companies of various types by half, which was implemented since yesterday.”
He points out, “The companies that used to get two million now have only one million, for example,” noting that “this decision will lead to a large deficit in the local markets, because the exchange companies’ sales go in parallel.”
The economist (who preferred to remain anonymous) confirms that “the decision to reduce the sales of exchange companies was taken at the request of the US Secretary of the Treasury during her visit to Baghdad.”
The expert continues, "The central bank negotiations with the American side were certainly not successful, and the evidence for this is the lack of control over the rise in exchange rates."
If the Iraqi economy wants to get rid of American hegemony, it must think about radical solutions that are far from a rentier economy and complete dependence on oil. Considering that all of the country's financial revenues come through this resource, whose money goes to the US Federal Bank, which allows the country's economy to be managed instead of the government. LINK
Hey, Alaq, how clean is the CBI floor? 'It's dinner time.' ...I never thought I'd see the CBI floor so clean. Iran, Iraq, U.S. Treasury meeting with the CBI? Why would you let the wolf back in the chicken coop? ...Iran said we promise [to be good]. Whoa! How clean is that floor at the CBI Alaq? 'Spotless'
[CBI put out a RFP-Request for Proposal tender]
SHANGDODDLE: It appears to be the government of Iraq is seeking contractor bids for the purchase of machines used to count, sort and packet currency. IMO that would be for the new currency in the lower denominations in the new small category notes...
FRANK: This is fantastic. Then an article comes out and says, " This tender will be accomplished by October 22, 2023". October 22nd is simply the time limit parameters of this tender...You think it's going to take until October the 22nd? No.
Why would Iran be at the CBI governor's office dealing with international issues? I think you know why. They can't steal anymore. The floor is spotless. It's dinner time. Something is about to happen.
You have Iraq, Iran, the CBI official, US Treasury all in one room that doesn't make any senseunless you have have interest in changing the exchange rate and adding value to the Iraqi currency because there's security and stability in Iraq and it's all because Iran finally conceded, 'we give up'.
Iraq’s financial revenues exceed 65 trillion dinars within 7 months, and an expert comments, 18 SEPT
Iraqs financial revenues exceed 65 trillion dinars within 7 months and an expert commentsShafaq News/ The Ministry of Finance revealed, on Sunday, that the volume of Iraqi financial revenues in the federal budget during seven months exceeded 65 trillion dinars, confirming that the oil contribution to the budget has risen to 95%, while an economist believes that non-oil revenues “will not improve.”
Shafaq News Agency followed the data and tables issued by the Ministry of Finance this September for the accounts from January until last July for the current fiscal year, which showed that oil is still the main resource for Iraq’s general budget, reaching 95%, which It indicates that the rentier economy is the basis of Iraq’s general budget.
The financial tables indicated that the total revenues until last July amounted to 65 trillion and 195 billion and 3 million and 735 thousand and 974 dinars, after excluding transfer revenues, amounting to one trillion and 995 billion and 73 million and 713 thousand dinars, indicating that the total expenditures with advances amounted to 52 trillion and 916 dinars. One billion and 562 million and 761 thousand dinars.
According to the financial tables, oil revenues amounted to 62 trillion and 259 billion and 118 million and 923 thousand and 534 dinars, which constitute 95% of the general budget, while non-oil revenues amounted to two trillion and 935 billion and 884 million and 812 thousand and 439 dinars.
from his side; Economist Muhammad al-Hassani said in an interview with Shafaq News Agency, “Non-oil revenues will not improve or rise as long as Iraq lacks domestic industrial and agricultural production,” noting that “the Iraqi economy is a rentier economy that depends on taxes and customs for non-oil revenues.”
He pointed out that “the successive governments of the Iraqi state did not direct the surplus oil revenues resulting from the rise in oil prices towards investment and the development of the industrial and agricultural base, but rather relied on imports to meet local needs,” stressing that “Iraq has become a living off neighboring countries.”
The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed in March 2021, in an interview with Shafaq News Agency, that the reasons for the economy remaining rentier are due to wars and the imposition of the economic blockade on Iraq during the past era and the political conflicts we are witnessing today, which led to the dispersion of… for economic resources.
The Iraqi state’s continued reliance on oil as the sole source of the general budget puts Iraq at risk from the global crises that occur from time to time because oil is affected by them, which causes the country to turn every time to cover the deficit through borrowing from abroad or within, and thus indicates the inability to Managing state funds effectively, and the inability to find alternative financing solutions.
Everything we've been seeing...is showing Iraq is going to have a big week.
Al Sudani is set to arrive in New York on the 18th. I would imagine there's going to be sideline deals. If you look at the lineup from the U.N...Iraq is slated [to speak] on Friday the 22nd...Iraq is coming out to the world and we're going to be a part of it. I'm really excited to see it...
Article: "Instead of the President of the Republic, the Sudanese participates in the United Nations General Assembly meeting"
Quote: "The United Nations General Assembly meeting scheduled to be held on Monday, September 18, 2023" There is obvious motivation for him to move up his schedule up from the 20th to the 18th...Is there more to the story than meets the eye? ...
He would have to be awfully motivated to move things along so quickly now.
The UST apparently wrapped it up in Baghdad this week and from the successes of those meetings that were on going, they may have allowed for the urgency of him to arrive in the USA. I like it.
Al Sudani was denied access to come to...the US because he had three things to get done.
And now he is scheduled to be in the U.S. on the 20th which is Wednesday. I have a hard time thinking on the 20th he's going to show up smiling and waving doing International contracts without having changed from 1310 to a real effective exchange rate.