Article: "The invitation to the organization to attend the introductory symposium on Iraq's entry into the World Trade Organization which is being held on 4th of October" The showcasing of them having had an international exchange rate has got to be coming because the WTO is not going to allow IMO ascension to the WTO without having a valuation of their country...
Al-Sudani came home from the United States of America. He showcased his presentation. He did it very very well, professionally, turns out people felt he was a statesman all around the world. When it comes down to it are you going to do a tripartite budget at 1310? The answer is probably 100% IMO no...
Walkingstick
The tender that put Kurdistan and Erbil, the last remaining banks that are outsid
e the reform process, inline... The tender for the currency and coins has been met per request, meaning the needed currency and coins, the count and the value, for the release of the new exchange rate has been fulfilled.
Baghdad And Washington Are Negotiating About Linking The Iraqi Market And Currency To The Dollar
Posted On2023-09-25 By Sotaliraq Baghdad and Washington are negotiating about linking the Iraqi market and currency to the dollar 20230924152721_original_45The Iraqi Foreign Minister, Dr. Fouad Hussein, confirmed that the provisions of the security agreement recently signed between Iraq and Iran have been fully implemented by the Iraqi side.
Hussein explained that the terms of the agreement were fully implemented by the Iraqi side, with regard to the return of militants present on the border between the two countries in the Kurdistan Region to refugee camps.
Regarding the political and security importance of this agreement, Hussein stressed that Iran’s cessation of bombing areas in the Kurdistan Region was a condition of the agreement, in exchange for removing militants from the border, which the federal government did in cooperation with the Kurdistan Regional Government, in an “important and successful” process for both sides. .
Regarding the possibility of signing a similar agreement with Turkey regarding the presence of Kurdistan Workers’ Party (PKK) militants, whom Ankara demands to be removed from the border, Hussein stated that Baghdad has always been in favor of dialogue, hoping for “intensive dialogue by the same means” with the Turkish side.
The Iraqi diplomat says that Ankara has not yet made room to discuss solutions to this problem in another way, far from the use of weapons and violence.
The Iraqi minister denied the existence of any agreement with Turkey to allow it to carry out repeated strikes on PKK militants in northern Iraq.
Regarding relations with the United States, Hussein said that the recent Iraqi-American discussions focused on bilateral relations and joint work in the fields of economy, energy, health and security, noting that the American-Iraqi relations are distinguished and have expanded to include various fields, after they were based on security and military cooperation, pointing out that Washington’s support for the Iraqi position in the international arena, and for economic reform and development in the country.
The Iraqi official revealed that among the important files raised at the level of dialogue with Washington is “the issue of linking the Iraqi market and currency to the dollar and the flows of American currency into the country,” noting that it is “a financial and banking issue related to the financial and economic situation of Iraq.”
Regarding whether security issues related to armed groups affiliated with Iran were among the files discussed, he said, “We did not discuss this issue, and all groups are subject to the Commander-in-Chief of the Armed Forces, that is, to the orders of the Iraqi Prime Minister.”
Regarding the relations between Saudi Arabia and Iran, the spokesman indicated that the two countries have declared and strong relations, after the exchange of ambassadors and visits by the two foreign ministers, indicating that Baghdad played a role in the restoration of their relations, but the discussions between them are now direct.
Regarding relations with Kuwait, the spokesman explained that the Iraqi Prime Minister held an “important meeting” with his Kuwaiti counterpart, during which he stressed “Iraq’s full commitment to all Security Council resolutions, bilateral agreements, and respect for Kuwait’s sovereignty.”LINK
Dollar Exchange Rates During Monday’s Transactions In Iraqi Markets
Economy 09-25-2023 | 6,121 views Alsumaria News – Economy Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in Iraqi local markets for Monday, September 25, 2023.
Exchange rates decreased in banking shops in local markets in Baghdad, as the selling price reached 154,500 Iraqi dinars, while the purchasing price reached 154,000 dinars for every 100 dollars.
For more than 7 months, and specifically since the Central Bank began operating the electronic platform and the international financial transfer system ““SWIFT,” the dollar exchange rates in Iraq have not witnessed stability despite the attempts of the government and the Central Bank to control the exchange rate in the parallel (black) market
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The Central Bank of Iraq decided earlier to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of buying the dollar from the Ministry of Finance reached 1,300 dinars per dollar and selling it at (1,310) dinars per dollar to banks through the electronic platform, and it is sold for (1,320) dinars per dollar. Dollars from banks and non-banking financial institutions to the final beneficiary. LINK
The Salary Crisis Raises Rates Of Domestic Violence In Kurdistan By 13 Percent
Posted On2023-09-25 By Sotaliraq The researcher in social and academic affairs at Sulaymaniyah University, Rikut Abdul Rahman, said yesterday, Sunday, that the economic crisis has greatly affected the situation in the region. The Federal Council of Ministers decided during its thirty-eighth regular session, headed by Muhammad Shiaa Al-Sudani, on Sunday (September 17, 2023),
Lending the Kurdistan Regional Government more than two trillion dinars, provided that it is repaid in three installments of (700) billion dinars before taking its entitlement from the budget for the year 2024. Abdul Rahman says, “The economic crisis affected the cohesion of Kurdish society, led to an increase in divorce cases and increased rates of domestic violence.”
He believes that “due to the delay in disbursing salaries and the economic crisis, divorce cases have increased by 13% over previous years, and the rates of domestic violence have increased according to the statistics of various organizations, in addition to the presence of a reluctance to marry among Kurdish youth, since the requirements of life are high, and there is no financial liquidity.” Because of the salary crisis.”
The delay in salaries in the Kurdistan region and the strike of health personnel there caused the death of two people yesterday, Saturday (September 23, 2023), including a child no more than two months old. According to a local source, “A person named (K, M, A), whose profession is a worker, lives in the Shahrazur district of the Sulaymaniyah Governorate. He was involved in a traffic accident on the Sulaymaniyah-Zaryan road, and after suffering serious injuries, he was transferred to (Martyr Raouf Bek) Hospital in the Shahrazur district.”
He added: “But due to the strike of doctors and nurses from working hours in the aforementioned hospital, he was transported by a regular car to Shar Hospital in Sulaymaniyah, but he died on the way.”
He pointed out that “also due to the strike of health personnel from work in Sayed Sadiq district, a two-month-old child died.”
On Wednesday (September 20, 2023), the Prime Minister of the Kurdistan Region, Masrour Barzani, directed the distribution of July salaries without delay upon the arrival of the first batch of Baghdad’s loan amounting to 700 billion dinars.
On Monday (September 18, 2023), a source in the Ministry of Finance of the Kurdistan Regional Government revealed the mechanism for distributing employee salaries in the region.
The source said, “The federal government will finance the salaries of employees in the Kurdistan region in three installments in the amount of two trillion and 100 billion dinars, and in the amount of 700 billion dinars for each month.”
He added, “The federal government will send the salaries for September after releasing the salaries of employees in other Iraqi provinces, but employees in the region have not received their salaries for July and August yet.”
The source indicated, “After receiving the amount of 700 billion dinars, the Ministry of Finance will distribute one salary, which is for the month of July, and next month it will distribute the salary for the month of August, and then the process will continue successively.” LINK
Despite The Abundance Of Cash Reserves, Why Does The Iraqi Government Not Pay Its Internal Debts?
The dinar is playing with the dollar at lost time, 26 SEPT
The prominent figure, Muhammad Hassan Al-Saadi, has returned to take charge of Iraq’s economic movement. However, Washington is also making its presence felt by asserting its leadership position in the game. It is evident that the people are well aware of the power dynamics at play and who is controlling the rounds of the match.
At times, we witness the Iraqi government expressing satisfaction with the performance of the US Federal Bank and their economic dealings with the World Bank. However, at other times, the government imposes new controls to regulate the movement of the dollar and announces punitive measures against private banks in Iraq that violate regulations in the local currency market.
Washington’s current stance is that Iraq is not complying with the Federal Bank’s regulations to restrict the illegal flow of dollars abroad, particularly to Iran, which is facing strict American sanctions. The US government believes that Baghdad has not taken necessary measures to curb currency smuggling, whether it originates from the Kurdistan region or other outlets linked to neighboring Iran.
Despite the Sudanese government’s efforts to prevent the smuggling of dollars abroad, control the internal market, and encourage the use of dinar in daily commercial transactions, Iraq continues to pursue traders and smugglers to curb the smuggling. However, these efforts have proven to be inadequate. In response to this, there has been an increase in the smuggling of currencies other than the dollar, such as the euro, Chinese yuan, and Emirati dirham. This is an attempt to reduce the demand for the dollar, diversify the traded currencies and provide support for Iraq’s foreign dealings.
Despite the Central Bank of Iraq taking numerous measures, it still lacks a mechanism to control the movement of the dollar in the market. Its reform steps have failed to control the exchange rate and have led to an exacerbation of the crisis and a decline in confidence between Iraq and the World Bank. As a result, the World Bank has taken strict measures towards international transaction requests coming from Iraq. Many of these requests were rejected under the pretext of not conforming to international economic dealing standards. Additionally, a number of banks have been included on the blacklist due to suspected unlicensed cash transactions.
The Central Bank of Iraq’s wrong monetary policy would have a negative impact on the financial reality of the country, highlighting the primitiveness of the financial system and its lack of modern means of financial dealing. Additionally, crime mafias have control over the internal Iraqi market and the movement of the dollar within it. The current government plans to control the dollar’s flow to achieve economic development and stabilize the dinar’s value by expanding its commercial uses and preventing smuggling, storage, or manipulation of its prices.
The positive aspect of the recent decision is to reduce the influence of the dollar on the Iraqi market. The aim is to limit its circulation and restore the prestige of the dinar, thereby giving it control over the internal market, at least. This presents an important opportunity to restore the dinar’s former prestige and restrict the dollar to foreign transactions only. The decision is also positive because it will put an end to traders’ control over the internal market and prevent the manipulation of the livelihoods of ordinary citizens.
Iraq is considering joining the BRICS bloc, with the aim of reducing its reliance on the US dollar. There is a growing acceptance among Iraqi citizens to use the Iraqi dinar in their financial transactions. The BRICS summit is expected to take place in Cape Town, South Africa, in August 2023, and 19 countries have already submitted official requests to join the alliance. This move could potentially damage the value of the dollar and its future prospects, as the BRICS currency is expected to be strong and competitive. Although the BRICS currency has not been issued yet, its emergence could signal the decline of the US dollar.
Question: What about the oil for dinar program…Is that still happening?
MarkZ Answer: I am told that is still happening. That is how we should get more than the street rate.
“Iraq to reopen embassy in Vietnam”
This is good news and showing their ties. Vietnam and Iraq are both major trading partners and of course we expect both currencies to revalue at the same time...Reopening embassies is important…
If Iraq is going to be international player…they are going to need an “International Currency”…
There are a number of articles and comments that we are to expect some kind of announcement out of Iraq on Tuesday…on how they plan to handle the exchange rate. Perhaps this means they are still fighting the rate in the parallel market…or perhaps it is our full blown revaluation. But we are expecting some kind of announcement on the value of the Iraqi dinar to the US dollar.
“Iraqi Central Bank to restrict internal trades to Dinar”
From Bloomberg…. They are de-dollarizing. Payments in dinar only …they cannot do that and handle trades without the dinar having a more meaningful value and is international…also they are expected to formally announce this on October 4th.
There is a lot happening on Oct 4th. To me this means they need a new value by October 4th. I am hearing they really do expect that dinar rate change by Oct. 4th.
Shafaq News / Four months have elapsed since the approval of the Federal General Budget Law, yet its implementation remains pending. Experts point to the delay in the legislative process and subsequent delays in issuing implementation instructions as the reasons behind this. Nevertheless, some individuals raise concerns about the allocation of funds for the forthcoming local elections set for December 18.
For the first time in its history, Iraq has adopted a three-year financial budget in a single law, passed by Parliament in June. The government defended this move, stating that it aims to establish essential development plans for the country and prevent the recurring issue of annual budget approval delays.
According to the budget law, the budget for the current year and the following two years amounts to $153 billion, with an expected deficit of up to $48 billion. The budget is based on an oil price of $70 per barrel, considering that Iraqi oil exports constitute over 96% of the country's financial revenues.
Despite several months having passed since its approval, allocations from the triennial budget have not yet materialized on the ground, leading to speculations and questions about the reasons behind the delay in its implementation.
The reasons for the delay
In this context, Nermeen Ma'rouf, a member of the Financial Committee in the Iraqi Parliament, explained, "The budget law was approved in June last year, and it took more than half a year for implementation instructions to be issued. Therefore, the budget's non-implementation can be attributed to delays in legislating the law and subsequently issuing implementation instructions by the Ministries of Finance and Planning."
Ma'rouf further detailed, "The government continued to spend 12.1% of the previous year's budget, which limited spending to current expenditures, particularly salaries."
She pointed out that "the government needs to allocate funds for investment projects in the current year. Ministries and governors need to submit their plans for investment projects. Investment project spending is different from current expenditures and involves multiple stages, including planning, approval, project clearance in the Ministry of Planning, and then public announcement, until the project is approved."
She added, "These projects are funded in installments based on progress percentages, and this process takes several months until funds from the investment budget are disbursed on the ground. This is the primary obstacle to the implementation of the investment budget component in the current budget."
Budget funds
Regarding the fate of budget funds as the year-end approaches, Ma'rouf clarified, "The funds allocated for the investment budget are rolled over to the next year for project allocation. These funds do not expire, and disbursements for these projects continue until the end of the fiscal year."
She continued, "As for unspent funds from the current budget, these become surplus funds at the end of the year compared to the previous year. They are then carried over to the next year and added to the funds that will be allocated from the budget of the following year. This is as per the Budget Law and Financial Management Law."
Ma'rouf pointed out, "it is expected that before the end of the current year, the Ministry of Finance, through the Council of Ministers, will send new tables to estimate the revenues and expenditures for the next year, but based on the current legal provisions themselves."
She emphasized that "the provisions in the law, which consist of 78 legal articles, will not be changed. Only the expenditure and revenue tables estimated for the next year will be adjusted. Therefore, these tables must be submitted to the parliament for approval so that the government can implement the budget for the next year."
Exploitation for electoral purposes:
On the other hand, Iraqi politician Halim Salman mentioned that "the Prime Minister - according to leaks - has put a (freeze) on the flow of funds from the triennial budget for several reasons, including the fear of using budget funds to finance provincial council elections."
Salman added that "this explains the government's lack of trust in political parties and local governments that could potentially exploit budget funds for electoral purposes."
He cautioned, "these reasons have not been officially announced, but it seems that this is the case. Despite the budget's approval and the issuance of its instructions, there is still a delay in the process of releasing funds, which supports the claims made by some politicians."
Financial losses
Economic expert Jalil Al-Lami believes that "Al-Sudani's government is currently working to collect funds from the Emergency Support Law that was approved during the previous government's time to finance some projects that have achieved progress. The remaining time in the year is not sufficient for the government to announce and execute new projects or complete old projects, as they have faced setbacks and changes in estimated cost prices."
Al-Lami emphasized that "the delay in disbursing budget allocations will lead to contract cancellations with international and local companies for the development of new cities and provincial infrastructure. This will result in significant losses for Iraq due to penalty clauses that have been stipulated in contracts with these companies."
He concluded by saying that "the budget is the natural financial regulator for the functioning of institutions and administrations at all levels, civilian and military. To avoid the country's expenditure randomness at a rate of 12/1, there is no justification for the delay in implementing budget items."
Iraqi PM, Global Coalition Commander hold security talks attended by Romanowski: official, 26 SEPT
Shafaq News/ Iraqi Prime Minister Mohammed Shia al-Sudani, met with General Joel Vowell, the commander of the Global Coalition forces in Iraq and Syria, for security talks on Monday, an official press release by his bureau revealed.
The meeting, according to the press release, was also attended by the US ambassador to Iraq, Alina Romanowski.
Al-Sudani and his guests discussed ways to enhance the security cooperation between Iraq and the Coalition forces, laying emphasis on the latter's role in providing advice, intelligence, training, and weaponry to the Iraqi forces.
The Commander-in-Chief of the Iraqi Armed Forces and the Commander of the Global Coalition endorsed the ongoing work of the joint committee they agreed to form following the visit of the Iraqi Minister of Defense to the United States last August.
During the two-day visit, the US Defense Secretary Lloyd Austin and Iraqi Defense Minister Thabit Muhammad al-Abassi refined the terms of the security agreement between their respective countries.
"The joint security cooperation dialogue reflects our maturing strategic partnership building on the US-Iraq Strategic Dialogue in July 2021 when the US forces with a combat role, ended their mission," said Austin.
Ties will continue to grow after the Daesh/ISIS terrorist group is defeated, he added.
For its part, the official Iraqi News Agency said on Wednesday that "Iraq is committed to protecting American personnel and advisors, the international coalition, convoys, and diplomatic facilities."
The statement added that the delegations participating in the dialogue expressed their intention to "hold subsequent joint security cooperation dialogues and related meetings to discuss the evolving threat from Daesh/ISIS."
Both delegations also concurred on the need to "develop Iraq's security and defense capabilities" in a manner that ensures the advancement of the common interests of our two countries in the security and sovereignty of Iraq, as well as the stability of the region.
On July 26, 2021, Baghdad and Washington reached an agreement on the withdrawal of US combat forces from Iraq by the end of the same year. A small number remained to provide advice and training for Iraqi forces.
