Al-Sudani Reveals The “Reasons” For The Rise In The Price Of The Dollar And Admits To A Legal Problem: We Need Strict Penalties, 26 OCT

 Al-Sudani Reveals The “Reasons” For The Rise In The Price Of The Dollar And Admits To A Legal Problem: We Need Strict Penalties, 25 OCT

 Politics     Dollar prices     breaking     Sudanese  2023-10-24 Shafaq News/ Prime Minister Muhammad Shiaa Al-Sudani revealed, this evening, Tuesday, the reasons for the rise in the exchange rate of the US dollar against the Iraqi dinar, and while  he acknowledged the need for “strict” legal penalties against currency speculators, he pointed out the presence of  private banks and money changers seeking to keep dollar prices high..

 Al-Sudani said during the weekly press conference attended by Shafaq News Agency,  “There are problems in banking reform and major challenges facing the government, and  the current dollar exchange rate in the markets is the price of currency speculators.”

He added,  "There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price."

Al-Sudani stressed,  "We support some banks that we trust are good and have achieved success, in order to be part of the solution," adding,  "One of the problems we face is that Iraqi law does not contain strong and strict penalties against those who are arrested as speculators at the dollar exchange rate."

He pointed out that  "despite the high exchange rate of the dollar, food prices are stable and good, and the government will take on the role of some merchants in some matters.

 There is also a good initiative to provide medicines from international origins for chronic diseases and sell them in the market at subsidized prices, as well as  construction materials that we will provide and sell." "At a subsidized price,  this will force traders and speculators to reduce the price of the dollar in the market."

 On the other hand, Al-Sudani pointed out that  “the Development Fund is one of the important projects that we adopt and is supposed to have a special law, and the Fund project has been included in the budget law.”  He said,  "Today this fund was voted on, and this is a glimmer of hope for the Iraqi economy.

This fund will be exclusively for the private sector and will provide investment opportunities.

 One of its priorities is building schools with approximately a thousand schools, and after that it will have a role in other sectors such as industry, environment, and housing."

 Regarding the electricity file, Al-Sudani explained,

“The costs of producing electricity are very high, and the government today has given the green light to the Ministry of Electricity to adopt very modern electronic systems to measure the wages of electric energy consumption.

 We will take into account those with limited income according to a specific mechanism.

This system will contribute to preventing the waste of electricity and provide energy stability.” He stated,

 "There will be a trial for these organizations in 10 regions, with 10 sectors in each region, and 50,000 subscribers in each sector. They will receive electricity 24 hours a day." He stressed that

 "these systems will be under the supervision of major companies, and the Prime Minister and the Iraqi government have granted the Ministry of Electricity a license to contract with companies. There will also be a treatment for any defect in reading the consumption fees recorded by the systems in a short time, and there will be teams dedicated to addressing any defect in record time."".

 In another context, Al-Sudani said,  "On the 27th of this October, a full year will have passed since the formation of the government, and  we asked the House of Representatives to be a host to talk about the achievements and failures that have been achieved since the formation of the government until now."

  https://shafaq.com/ar/سیاسة/السوداني-يكشف-سباب-ارتفاع-سعر-الدولار-ويعترف-ب-شكال-قانوني-نحتاج-لعقوبات-صارمة

ANALYSIS OF IRAQ NEWS BY MNT GOAT, 25 NOV

 A SPECIALIST DIAGNOSES THE “REAL REASON” FOR THE DOLLAR’S ​​RISE… AND THE CENTRAL BANK IS “RELUCTANT” ABOUT IT – URGENT

Today, Friday (October 13, 2023), the economic affairs specialist, Nabil Jabbar Al-Tamimi, revealed the reason for the rise in the dollar exchange rate, in light of the volume of daily “black transfers.”

Al-Tamimi told “Baghdad Today”, “The Central Bank of Iraq is failing to solve the problem of remittances with Iran, and the rise in the exchange rate is related to pressures on foreign exchange in the market and the continuation of black remittances.”

He stated, “Up to 30 million dollars a day cross the border as (black transfers) to feed remittance requests for trade with Iran, Syria, Lebanon, and Turkey as well, and the fluctuation will continue unless the remittance crisis with Iran is resolved in the first place and a suitable transfer mechanism is found for merchants, even if they are in other currencies.” other than the dollar.

(This article speaks directly to another article we read about the customs and tariffs issues. Simply put, not being on the Global Foreign Exchange such as FOREX, is putting damper on Iraq’s ability to conduct foreign trade with a multiple of other foreign currencies. Iraq MUST soon move back to FOREX or these problems will only worsen. You see Iraq keeps kicking the can down the road but they know what they must do. They can complain and complain about the issues with the dollar. The FACT still stands that to get off the dollar they must be able to go a central point of exchange. Its easy to trade with a sole source of currency but when you are dealing with  potential of hundreds of currencies then what do you do? )

The $30 million per day is exactly equivalent to the cash sales that the Central Bank sells daily and is supposed to be intended for travelers.

Experts point out that some of these cash sales allocated to travelers leak into the black market and are purchased by merchants to finance their trade with countries banned from the dollar, led by Iran, from which Iraq’s annual import volume amounts to approximately 10 billion dollars.

Others warned of the repercussions of some banks not handing over dollars to “travelers,” while stressing that the continuation of the matter would lead to an increase in demand for the dollar in the parallel market and thus an increase in the exchange rate. 

Many private banks and exchange companies are accused of being involved in smuggling the dollar, leaking it to the black market, and seizing large amounts of currency auction sales. The accusations also targeted the National Bank of Iraq (Jordan) of seizing 70% of the Central Bank’s daily dollar sales.

The dollar exchange rate witnessed a noticeable increase in the past few days, exceeding the barrier of 160 thousand dinars per 100 dollars, while the Central Bank took many measures and decisions to prevent the circulation of the dollar in local markets above the official price (1320), but to no avail, despite the fact that the dollar is its only source. The Central Bank, although those who take the dollar, namely private banks and exchange companies, are known to it, but it is unable to control them and oblige them not to leak dollars through fake transfers, according to observers.

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

"RV UPDATE" BY BREITLING, WALKINGSTICK & SANDY INGRAM, 25 OCT

 Breitling    

  [On his approach to the Iraqi dinar]I am the ultimate puritan.  I only believe in what I can prove.  I don't have faith about nothing.  I have faith about my abilities but if someone comes up to me and goes, 'Good, ole fashioned faith?' Nope...

Walkingstick  

 [Aki Iraqi bank friend update]

   Iraqi Bank friend #1 

[Aki's boss] told Aki you gotta stay put.  Stay right where you are at [his bank in the south of a northern state]. 

 As much as Aki wants to go stay in the north because in the north he has a home there... Obviously something's happening IMO.

Sandy Ingram 

 There is a global shortage of wheat due to Russia's invasion of Ukraine...Next year flour prices in the United States will skyrocket due to drought... Dunums is the unit of measurement of land in the Middle East.  

One acre equals approximately 4 dunums. Iraq will plant 1.5 million dunums in irrigated areas of the desert and 4 million dunums in desert areas using underground water.  This planning event will take place during the winter months (October and November) and will secure Iraq's food security for the coming year...

An economic expert talks about the gold reserve of the Central Bank in London... This is the relationship of its price to the dollar, 25 OCT

  An economic expert talks about the gold reserve of the Central Bank in London... This is the relationship of its price to the dollar

An economic expert stressed the difficulty of predicting gold prices, specifying “the relationship in gold prices and the dollar.”

Salah Nouri said in a press interview seen by “Taqaddam” that “it is known to economists that the dollar currency and gold represent a reserve for central banks, and among them the Central Bank of Iraq adopts this diversification, and in practical life the relationship between the dollar and gold is an inverse relationship, as whenever there are signs of a decline in the price The dollar in the financial markets tends to invest in gold as a safe haven, and thus the global demand for gold increases and its price rises.”

He stated, “The Central Bank of Iraq owns a good amount of gold and it is stored in London, where the World Gold Council is located. The Central Bank of Iraq depends in determining the value of gold on its price on the London Stock Exchange.”

Nouri pointed out that “it is difficult to predict whether the price of gold will rise or fall because it is linked to the price of the dollar, and the latter is linked to unstable economic and political events in the world.”  link

The government is withdrawing its hand from the dollar battle.. The solutions are over and the market is “free” at the exchange rate, 25 OCT

The government is withdrawing its hand from the dollar battle.. The solutions are over and the market is “free” at the exchange rate

 Over the past weeks, silence has clearly overwhelmed the relevant authorities and authorities in Iraq at the governmental and banking levels in the face of the continued rise in exchange rates. In contrast to the past months, when the government and the central bank issued a package of quick decisions and measures immediately after the rise in exchange rates, except this time, with a break in... The exchange rate reached record numbers exceeding 160 thousand dinars per 100 dollars. It seems that the relevant authorities have “surrendered” in the battle for the dollar.

This matter can be reached not only from the absence of government and central bank measures that have come to prevent the smuggling of the dollar without taking measures to prevent its rise in the market, as the Central Bank previously issued various packages for this, but even in the statements of the Central Bank Governor, Ali Al-Alaq, and Prime Minister Muhammad Shiaa Al-Sudani, It clearly shows a “tone of surrender” and leaving the exchange rate without intervention, relying only on traders who buy dollars from the central bank and betting that commodity prices will not rise depending on these traders.

For example, the Governor of the Central Bank, Ali Al-Alaq, said last week during a session of the Ministerial Council for the Economy, that “the exchange rate depends mainly on imports and not on local production, and that the exchange rate in Iraq has peculiarities because it is linked to the price of oil as it is the largest source of providing hard currency,” noting. He pointed out that "many factors affect the exchange rate, the most important of which is the leakage of the dollar to neighboring countries and internal dealing in local markets in a currency other than the national currency, as well as the lack of complete control over ports and smuggling."

Which means that the exchange rate will continue to rise as long as there is import, uncontrolled outlets, and oil pricing in dollars, as all of these conditions are sustainable and cannot be changed.

For his part, Al-Sudani said in a press conference yesterday, Tuesday: “We support some banks that we trust are good and have achieved success, in order to be part of the solution to the dollar crisis,” adding, “One of the problems we face is that Iraqi law does not contain strong penalties.” And strict measures against those who are arrested as speculators in the dollar exchange rate.” 

It is another indication that it is not possible to do anything, whether for speculators or for the rising dollar prices, in clear statements that are consistent with the Iraqi authorities’ tendency to leave the market dollar price file without interference, that is, more like a flotation. 

This is confirmed by economic affairs researcher Haider Al-Sheikh, today, Wednesday (October 25, 2023), stressing the difficulty of ending the crisis of the rise of the dollar in Iraq.

The sheikh told "Baghdad Today", "The crisis of the rise in the dollar exchange rate does not end, and the central bank has become unable to control the market, and some banks, exchange companies, and merchants have manipulated the price of the dollar. "

He added, "This is because the Central Bank imposed any sanctions on banks, exchange companies, and merchants on the price of the dollar, which manipulate the exchange rate. Therefore, the dollar exchange rate will stabilize at 165 during the next two days, and will continue to rise further during the coming days. "

He pointed out that "there are problems in banking reform and major challenges facing the government, and the current dollar exchange rate in the markets is the price of currency speculators ."

He added, "There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price ."  link

Goog nes the cbi start taking decisions

Whiskey and Wisdom with MarkZ. 10/25/2023