PM Barzani Urges Stronger Coordination to Eliminate Money Laundering, 20 OCT
ERBIL — Kurdistan Region Prime Minister Masrour Barzani on Thursday received the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, to stress the need to strengthen bilateral cooperation to uproot money laundering in the country.
During the meeting, the two officials underscored the importance of cementing coordination between the Kurdistan Region and federal government of Iraq, the Central Bank of Iraq in particular, to conduct comprehensive banking reforms, eliminate financial irregularities and money laundering across the country.
They emphasized the growing need to establish a stable and diversified economy, and agreed that continued cooperation between the two sides is essential for the development of the economy and stability throughout Iraq.
The Kurdish leader thanked the Central Bank of Iraq for its support and cooperation in helping develop the "my account program" in the Kurdistan Region, which is designed to transition salary payments of Kurdistan's civil servants into electronic payment.
The prime minister stressed that the development of the Kurdistan Region should be viewed as advancement of all Iraq and contribution to the common good of all peoples in the country.
PM Barzani Commends Cooperation Between Public, Law Enforcement, 20 OCT
ERBIL— Kurdistan Region Prime Minister Masrour Barzani on Thursday commended the strong cooperation between the general public and the law enforcement, which he said has significantly contributed to the Region's security and stability.
"Fortunately, one of the reasons behind Kurdistan's security and stability, which is a key achievement for the Region, is the cooperation, coordination, and strong relations between the people of Kurdistan and security institutions," the Kurdish leader said during the opening ceremony of a police training graduation ceremony in Erbil today.
He also urged the police, the security establishment, and all the other law enforcement agencies to continue proper compliance with the values of the rule of law and discipline in discharging their duties in order to ensure fair and just treatment of everyone alike.
The prime minister also emphasized the need to ensure social justice and equality in enforcing the rule of law in order to protect the human rights of every individual in the Region.
In the end, he extended his warmest wishes to the fresh graduates of the training course, which he hoped will help them better protect the safety and security of the general public in the Kurdistan Region.
In Iraq they have the ability IMO to do a controlled free float...People ask me,
'Why doesn't Iraqi dinar free float?'
Because it could be very very risky.
They could benefit from it. They might go in the right direction. People might think they have something to offer...worth investing into, that they have a bright strong future...which I think Iraq does and
I think they could benefit from being on the Forex but they have to have the restrictions removed off their currency...Iraqi dinar is on the local one [Forex]. They're not on the big Forex.
There's still problems with the exchange rate...Right now the solution they've come up with is increasing the interest rates for customers if they deposit their money and leave it there [In a bank]. 7.5% is a pretty good size interest rate if you're going to leave your money in a deposit at your bank. In the past we used to have stuff like that but we don't anymore unfortunately.
Article: "Al-Kadhimi: The decision to increase the interest rate will activate the banking system inside Iraq"
Will increasing interest rates on your account to 7.5% draw people in? Heck yeah it will! If a bank did that in American you would see a lot of people run to it...
Quote: " The Central bank's decision...falls within banking reform measures... of prime minister Al-Sudani's directives... The decision...will certainly encourage citizens to deposit in banks which will stimulate financial movement...in addition to... reducing the exchange rate of the dollar against the Iraqi dinar."
That's really what the goal is...If this doesn't work there's going to be other measures that need to be taken in order for them to do something about closing that gap between the parallel market and the set rate of 1320 dinar.
Breitling
LOP - If they're going to LOP they don't need to shut the dollar off in their country. They don't need to reduce their money supply. They don't need to get rid of the 50 dinar note.
They don't need to pass banking laws. They would have said that's what they wanted to do. They said they wanted to add value to their currency and that's it.
Parliamentary Finance Refuses To Hold “Foreign Banks” Alone Responsible For The Collapse Of The Dinar
Economy |Baghdad Today – Baghdad Today, Thursday (October 19, 2023), member of the Parliamentary Finance Committee, Mudar Al-Karawi, identified the impact of foreign banks in the collapse of the Iraqi dinar in the face of the rise in the dollar exchange rate.
Al-Karawi told “Baghdad Today” that “the opening of the headquarters of international banks, whether Arab or foreign, in Baghdad and the rest of the governorates
is a positive situation and it exists in all countries of the world, and it
comes within the framework of openness, attracting investments and
creating infrastructure in the world of finance to secure companies’ commitment and
receive their entitlements.” And transferring money, whether for investments or building new projects.”
He added, “The rise of the dollar and the decline in the value of the dinar have other dimensions and causes, some of which are internal and others external,” pointing out,
“The Finance Committee recently discussed with the management of the Central Bank its mechanisms for controlling the rhythm of the parallel market and limiting the rise of the dollar, and
there are a series of measures that will be adopted to overcome some of the negatives.” He stressed that “the dollar problem cannot be blamed on foreign banks, but rather applying a transparent road map to prevent its smuggling will have the most impact.”
He pointed out that "the Finance Committee has a comprehensive assessment of the monetary and financial situation in the country and is dealing with the challenges," pointing out that "changing some of the Central Bank's mechanisms with the issue of pumping the dollar will be a priority in the next stage."
The Ministerial Council for the Economy hosted, in its session last Monday, the Governor of the Central Bank, Ali Al-Alaq, who indicated that the dollar exchange rate “depends primarily on imports and
not on local production,” pointing out that “many factors affect the exchange rate, the most important of which is the leakage of the dollar to countries.”
Neighborhood and internal dealing in local markets using other than the national currency, as well as the lack of complete control over ports and smuggling.”
Al-Alaq also announced that “the Central Bank raised the interest rate for amounts deposited in banks to 7.5 percent to encourage citizens to deposit their amounts in banks and withdraw the cash mass from the banks.”
There are many measures that the government has taken in order to control the price of the dollar,
but day after day it proves its failure to control it, which reflects negatively on the lives of citizens today because it is closely linked to their trade and their ability to purchase consumer goods.
The exchange rates of the dollar against the dinar stabilized in Baghdad this evening, Thursday, with the closure of the Al-Kifah and Al-Harithiya stock exchanges, recording 159,800 dinars for every 100 dollars, which are the same prices recorded this morning.
While prices rose slightly in Erbil with the closure, as the selling price reached 160,000 dinars for every 100 dollars, and the purchase price was 159,900 dinars for every 100 dollars.
They're going to be building roads, railways, building residential cities, industrial cities...
How are they going do that without being Article VIII complaint?
Their goal is to de-dollarize the country.
They've been working on this for a long time. Their job is not to specifically say, 'We're going to change the rate on Thursday of next week.' They're not going to do that. They just will not. I think everybody should understand that by now...
When they do direct banking to go international it's not going be at a rate like 1310, it's going to be something that's fair, real effective exchange rate, something similar to that...
This is good information. It's phenomenal. Central banks' involved, the appropriate ground has been set for the auction window to leave...
Biden’s Visit to Israel: A Call for Restraint and Humanitarian Action, 19 OCT
The American president’s recent visit to Israel was a mission of diplomacy, carrying a message of restraint and a call for humanitarian action. It was also a gesture of support, a firm hand extended to a long-standing ally in the face of a protracted conflict.
From 9/11 to Gaza: A Plea for Restraint
During his visit, Biden urged Israel not to let its reaction be driven by rage, drawing a chilling parallel to the mistakes the US made following the 9/11 terrorist attacks. The echoes of the past seemed to hang in the air as Biden made his plea, a plea born out of hard lessons learned. In the aftermath of 9/11, America, driven by anger and grief, launched an invasion of Iraq that resulted in countless civilian casualties and a lasting impact on the region’s stability.
The cautionary tale served as a reminder for Israel: to act with clarity and avoid the excesses that could lead to unnecessary loss of life and squander global sympathy. It was a call for restraint, a plea to not let overwhelming grief or anger push the country too far.
Humanitarian Aid: A Lifeline for Gaza
Alongside his call for restraint, Biden made an urgent plea for Israel to allow emergency aid into Gaza. He warned that Israel risked losing credibility worldwide if it did not alleviate the suffering of the people in Gaza. Following his appeal, Biden announced a deal to allow the first humanitarian aid trucks to enter Gaza, with Egypt’s president agreeing to open the Rafah crossing for up to 20 trucks of aid.
However, aid agencies have warned that this might be too little, too late. Gaza’s population, heavily dependent on humanitarian assistance, faces a dire situation. The ongoing conflict and blockade have left basic supplies such as water, fuel, and electricity scarce. The initial convoy of 20 trucks is seen as a drop in the ocean of need, and aid agencies have warned of health disasters and starvation if sufficient aid is not delivered promptly.
A Delicate Balance
Despite the show of support and call for humanitarian action, Biden’s visit was not without controversy. The president endorsed Israel’s denial of responsibility for a catastrophic explosion that struck a hospital in Gaza, causing skepticism in the Arab world. This highlights the delicate balance required in the region, a balance between supporting an ally and maintaining credibility.
Overall, President Biden’s visit to Israel was a testament to the complexities of global diplomacy. It highlighted the need for restraint in times of conflict, the importance of humanitarian aid in crisis situations, and the delicate balance required in maintaining relationships while ensuring justice and credibility. As the dust settles in Gaza, it remains to be seen how Biden’s visit will impact the region and whether his calls for restraint and humanitarian action will be heeded.