Saturday, September 30, 2023
The Governor of the Central Bank talks about 9 files, most notably the exchange rate and inflation, 30 SEPT
The Governor of the Central Bank talks about 9 files, most notably the exchange rate and inflation
9/30/2023
Central Bank Governor Ali Al-Alaq revealed the success of monetary policy in reducing the inflation rate in the country, and while announcing the date of abandoning the electronic platform, he pointed to the reasons for stopping the industrial initiative and imposing interest on housing loans.
The Governor of the Central Bank, Ali Al-Alaq, said in an interview with the Iraqi News Agency (INA), followed by “Al-Iqtisad News”: “The Central Bank views the exchange rate as something directly related to the general level of prices in the country, and that the bank has succeeded in covering the needs of importers at the official price.”
He stressed that the monetary policy succeeded in maintaining the general level of prices through the most important indicators of inflation, which witnessed a decline, and this is the main matter that the Central Bank focuses on in the success of its monetary policy.
He added that “maintaining the general level of prices and a low inflation rate indicates The success of the monetary policy, especially after real traders engaged in the conversion process at the official rate, which gave reassurance in the conduct of foreign trade.”
The electronic platform
He pointed out that “the electronic platform witnessed many difficulties at the beginning of its work, which led to the reluctance of some people to enter it,” indicating that “the implementation rate in the electronic platform has now increased from 20 percent to 95 percent, and this gave reassurance that entering the platform provides speed and safety.” .
He pointed out that "accessing the electronic platform in the external transfer process spares all parties from the risks of being exposed to local and international sanctions," warning of some merchants who cannot work in an organized atmosphere and are looking for chaos, and that the Central Bank is working to contain this challenge in coordination with the government to besiege it. These are the categories that are being diagnosed and followed up.”
Al-Alaq stated that “90% of the Central Bank’s sales are for the purposes of remittances and external transfers, and they are proceeding smoothly and at the official price (1320), but the problem lies in the cash side, which represents 10% of internal daily sales,” indicating that “ten percent is sufficient.” To meet the needs of travelers, but some are trying to dominate by withdrawing the amount allocated to travelers, which creates pressure and an increase in the cash price, and these parties have been identified as carrying out illegal and criminal operations.”
Al-Alaq revealed the process of developing the cash sales system allocated to the traveler within a system prepared by exchange companies, and it is being developed to fill the gaps, and does not accept repetition and the unreal traveler,” denying that there is a tendency to stop selling cash dollars to travelers, and that the Central Bank has no problem in covering requests.
The correct and legitimate ones are within the categories (travelers - study - treatment - private transfers), as the bank provided this through financial transfer companies represented by (Western Union and Mini Card).”
Direct transfer
He explained that "the electronic platform is now being gradually transitioned to direct transfer between the Iraqi Bank and the correspondent bank, with an international auditing company in the middle, stressing that the Central Bank has cut the 60 percent that does not pass through the platform, but rather is a direct transfer."
Al-Alaq noted that "next year The Central Bank will permanently cease being an intermediary in the process, and the electronic platform will end next year and become direct transfer operations as internationally approved. This is a major shift that will put things on the right path, accelerate transfer operations, and intertwine relations with international banks.”
The truth about Iraq's loss of 27 trillion
He pointed out that “the idea of linking the exchange rate to filling the general budget deficit is an inaccurate view, and that the central bank is responsible for determining monetary policy, determining the exchange rate within the indicators it has, and achieving the goal of monetary policy,” indicating that “the calculation process is for those who say that Iraq will lose 27 trillion.”
The difference between changing the exchange rate is a wrong process, and 30 percent of oil revenues do not enter the central bank, because the Ministry of Finance uses them for external payments, while the second part is that the exchange rate should not be linked to achieving balance in the budget.
US Treasury
Al-Alaq confirmed that “the US Assistant Secretary of the Treasury praised during her visit to Iraq the measures taken by the Central Bank to organize the external transfer process, implement compliance rules, combat money laundering and terrorist financing, and direct coordination between the Central Bank, the US Treasury and the Federal Bank, and there is very great American satisfaction.” In this context".
Penalties on banks.
He noted that “the Central Bank is conducting a review and audit process to diagnose violations on the 14 banks who were subject to restrictions and denial of access to the dollar,” indicating that “the Central Bank indicated the presence of a response and compliance from the 14 banks to the specified standards.”
He stated that "the American side does not restrict the demand for the dollar, and there is coordination regarding cash shipments through an annual agreement on the number of shipments and their dates," stressing that the Central Bank prefers to use non-cash payment tools through the use of cards (Visa and MasterCard), which has recorded a significant increase. During the past months, this is a good indicator that reduces the focus on the use of cash, and reduces the trouble of reviewing companies to obtain cash dollars.”
Regulating trade with Iran
Al-Alaq added, "There are ongoing discussions to regulate the import process from the Iranian side in a way that does not expose Iraq to any problems by violating sanctions and agreements," indicating that "the Central Bank will reach a clear formula in organizing the trade process, especially since part of it is through barter."
He stated that "an agreement was reached to settle the debts incurred by Iraq from Iranian gas imports through a new method through which these amounts are paid."
Adopting new currencies.
He noted that “there is work to adopt the UAE dirham, the Turkish lira, the Indian rupee, and the euro as part of the process of facilitating external transfer by opening direct outlets in the currencies of the countries we deal with,” noting that “the trade balance with India amounts to 3 billion.” Dollar, and there are also high numbers for imports from the Emirates and Turkey.”
He stressed that "the Central Bank has reached advanced stages of understanding in adopting the currencies of these countries, which will facilitate the external transfer process."
Campaign to support the dinar.
Al-Alaq said, “The campaign to support the Iraqi dinar is multi-faceted and multi-party. Its goal is the sovereignty of the local currency in internal transactions instead of foreign currencies, which are being limited. There is a gradual transition process within the Prime Minister’s directive to limit dealing in the Iraqi dinar internally, and to oblige companies to do so, which A large percentage of them responded.”
The industrial initiative and housing loans.
Al-Alaq pointed out that “the industrial initiative has not stopped, but the amounts approved for it have been exhausted, and the volume of the loaned initiatives has reached more than 13 trillion dinars,” indicating that “the Central Bank has raised the interest on the housing initiative to 2 percent, and this is a low price compared to other countries.” Globalism".
He explained that "the stated interest does not include complexes that received previous payments, while it includes new complexes." LINK
Al-Fateh: The American decision still dominates Iraq.. What do we need to get rid of it?, 30 SEPT
Al-Fateh: The American decision still dominates Iraq.. What do we need to get rid of it?
Today, Saturday, the Al-Fatah Alliance said that the American decision is still “dominant” over Iraqi political decision-making, and while it confirmed that the country has not fully recovered, it indicated the possibility of removing Iraqi funds from American custody.
The leader of the coalition, Aed Sahib, said in an interview with the Maalouma Agency, “America is putting pressure on Iraq because it has not completely emerged from the UN resolutions, especially since the process of removing Iraqi funds from American custody may cause the loss and seizure of these funds.”
He added, "The Iraqi state's decision has not fully recovered. If we want to compare the strength of the Iraqi decision and Qatar's in dealing with the United States of America, we notice that the latter has a very great advantage, as it possesses large sovereign funds."
The leader of the Al-Amiri coalition explained, “These policies confirm one thing, which is that Iraq has not officially recovered, and the American decision is still dominant and in control of Iraqi political decision-making.”
Sahib said: “We need a long period for Iraq to get rid of these accumulations and control its economic situation away from America.”
The head of the Victory Alliance, Haider al-Abadi, had previously confirmed that America is imposing measures on us regarding the dollar without stopping its smuggling through the banks of Turkey and the Emirates, indicating that Washington considers Iraq a “wall of fate.”
During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on Iraqi banks and banning the dollar under many pretexts, which in one way or another led to a severe financial crisis in the Iraqi markets. link
Resolving Financial Relations: Iraq and Iran Settle Gas Debt, 30 SEPT
Resolving Financial Relations: Iraq and Iran Settle Gas Debt, 30 SEPT
New Approach to Settling Debts
The Iraqi Central Bank recently announced a significant shift in the financial relations between Iraq and Iran, marking a new chapter in their economic dealings. A new agreement has been reached between Baghdad and Tehran, addressing the longstanding issue of Iraq’s gas debt to Iran. The precise details of this novel approach remain undisclosed, but the announcement signals a resolution to the long-standing problem of Iraq’s debt to Iran.
Impact of US Sanctions
Given the decades of conflict and international sanctions, Iraq relies heavily on gas imports from Iran to meet about a third of its energy needs. However, US sanctions on Iranian oil and gas have imposed restrictions on how Baghdad can pay for these imports. As a result, direct cash transfers to Iran are not possible, and payments must be held in a bank account, from which Tehran can fund imports of food and medicines. This system has left Iraq heavily in arrears, leading Iran to respond by periodically cutting off the gas supply.
Calls for Unlocking Payments
In response to the ongoing issue, a coalition of pro-Iran factions in Iraq, known as the Coordination Framework, has urged the government to press the United States to unlock pending payments for gas imports. This coalition, which holds significant influence over Iraqi parliament, voiced its concerns over frequent power outages experienced across the country during the hot summer months, when temperatures often reach 50 degrees Celsius (122 degrees Fahrenheit).
Alternative Solutions
To reduce dependence on Iranian gas, Iraq has been exploring several alternatives, including imports from Gulf countries like Qatar and recovering flared gas from oil fields. The government is also considering bartering oil for gas with Iran, a move designed to alleviate the worsening electricity crisis in Iraq. This move does not violate U.S. sanctions on Tehran, which apply to financial transactions but not to barter deals. However, the arrangement has not been officially communicated to Washington.
The Barter Agreement
According to a senior political official close to the Iraqi government, the barter agreement would see Iraq send 250,000 barrels of crude oil to Iran daily. This arrangement could potentially mitigate the severe power shortages in Iraq caused by Iran cutting off the gas supply due to unpaid debts. In return, Iran would resume its gas exports to Iraq, thereby restoring the energy supply to previous levels.
Future Outlook
Despite the challenges, Iraq is committed to meeting its energy needs and reducing its reliance on Iranian gas. The government recently announced a massive 27 billion energy deal with a French energy giant, TotalEnergies, which is expected to boost local electricity production. This deal is seen as a significant step towards shifting Iraq away from needing Iranian gas imports. The Iraqi Prime Minister has expressed optimism that these projects will end the need for imports within two to three years upon completion.
https://bnn.network/world/iraq/resolving-financial-relations-iraq-and-iran-settle-gas-debt/
Legacy of War: How Past Conflicts Fuel Present Resistance Movements, 30 sept
Legacy of War: How Past Conflicts Fuel Present Resistance Movements, 30 sept
The Shadow of the Past
The echo of past conflicts often lingers long after the final gunshot has faded into silence. This is strikingly true for the eight-year Iran-Iraq War, the memories of which continue to fuel resistance movements even today. A veteran’s perspective offers a unique insight into the enduring legacy of this conflict and how past wars influence present and future movements.
The Iran-Iraq War: A Memory Etched in Stone
For eight tumultuous years, the nations of Iran and Iraq were embroiled in a bitter conflict that would leave an indelible mark on both countries. Saddam Hussein, the then dictator of Iraq, forced this war onto Iran, and it was a war that received backing from various Western countries. The memory of this conflict remains a potent source of inspiration for resistance movements even today.
A Veteran’s Perspective
A veteran who lived through this conflict shares his belief that the war continues to fuel resistance movements. The memory of the conflict, the sacrifices, and the struggle for survival has not faded with time. Instead, it has become a rallying cry for those who seek to resist oppression and assert their rights. The war, in this sense, has become an enduring symbol of resistance and a source of inspiration for those who seek to challenge the status quo.
War as a Catalyst for Resistance
Wars have often served as catalysts for resistance movements. The shared experience of war, with its many sacrifices and hardships, can foster a strong sense of solidarity among those who lived through it. This sense of shared struggle can, in turn, fuel the desire for change and serve as a powerful motivator for resistance.
The Role of Western Countries
Another factor that contributes to the enduring legacy of this conflict is the role played by Western countries. The fact that these countries backed Saddam Hussein in his war against Iran is a memory that still rankles many. This perceived betrayal has served to fuel anti-Western sentiment and has become a rallying point for resistance movements. It serves as a potent reminder that the fight is not just against local oppressors, but also against foreign powers that seek to influence the region’s affairs.
Conclusion
The enduring legacy of the Iran-Iraq War and its impact on contemporary resistance movements is a testament to the profound effects of war. Far from being confined to the past, the memories and experiences of conflicts can continue to shape the present and influence the future. As we seek to understand current resistance movements and the forces that drive them, we must not overlook the shadow of past conflicts that looms large over the present.
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