Al-Fateh: Iraq has many options to respond to the American aggression
Al-Fateh - Iraq has many options to respond to the American aggressionInformation / Baghdad…
Representative from the Al-Fatah Alliance, Ahmed Rahim, confirmed on Thursday that Iraq has many options and cards that it can resort to in response to the unsurprising American actions towards the country.
Rahim told Al-Maalouma, “What the United States of America is doing is very expected and there is nothing surprising in its actions towards Iraq, at a time when the government holds many political and economic cards against Washington.”
He added, “Many countries are willing to cooperate economically with Iraq and have announced this explicitly. Therefore, cooperation in this field is not limited to the American administration, and there are many options that Iraq can resort to to dispense with its relations with America.”
He stated that “the eastern camp has great potential, especially on the economic level, and Iraq can conclude oil and financial agreements and exchange currencies with them, which confirms that Iraq has many options that do not make it tied to the American administration.”
Experts: Iraq Has Important Investment Laws, But They Are Ineffective money and business Specialists in economic affairs said that the investment law in the country is one of the best laws that can attract capital and international companies, in addition to being appropriate to the economic reality, indicating that those advantages provided by the law were not optimally exploited to bring about broad development or reconstruction moves, and were not exploited.
The provisions of the laws are widespread except in the oil field, indicating that legal legislation alone is not sufficient for the inward flow of investment capital.
In an image that confirms the government’s intention to activate investment laws, Muhammad al-Najjar, advisor to the Prime Minister for investment affairs and director of the Iraqi Fund for Development, during his hosting earlier by the Parliamentary Investment and Development Committee headed by Representative Hassanein al-Khafaji, stressed the necessity of reconsidering investment laws and some other laws to suit the objectives of Iraqi Fund for Development.
The advisor, according to a press release issued by the Investment Committee, provided a detailed explanation of the vision for the Fund’s work, the problems and obstacles that obstruct the workflow, as well as the opportunities for success that the Fund seeks to achieve, indicating that the most important goals that the Fund focuses on in its work are establishing partnerships with investment funds and completing investment projects. Through the private sector in Iraq.
Al-Najjar also confirmed that the most important projects that the Fund focuses on supporting are projects with social returns, such as schools and housing projects, as well as profitable projects such as environmental projects, the technology sector, raising production in the agricultural sector, and others, while
the Chairman of the Parliamentary Committee, Hassanein Al-Khafaji, stated that we cannot proceed. In building a strong Iraqi economy without an active and effective private sector, to contribute to creating job opportunities and reducing dependence on oil.
In this regard, the academic and economic researcher, Dr. Abdul Karim Al-Issawi, said in an interview with “Al-Sabah” followed by “Al-Iqtisad News” that “Iraq has begun a new era in its distinguished economic and political relations, and is striving towards openness to the outside and integration into the global economy after political isolation that extended for more than Two decades ago, the
first step towards that openness was the adoption of liberal laws on the investment level, and accordingly, Investment Law No. 13 of 2006 and its amendments were issued. Al-Issawi believes that
“this law is one of the best investment laws in the regional and Arab neighborhood, but it did not achieve the desired and expected goals of it, namely the flow of foreign funds to invest in the commodity and service economic sectors in Iraq, and
foreign investments were limited to the oil extractive sector largely through oil licensing rounds and in a small percentage.” " Very much so than other sectors."
Dr. Al-Issawi continued, “This reality affected national capital, which preferred toinvest abroad as a result of the failure to activate investment laws in their correct form, and the absence of an appropriate environment for work in Iraq at that time, which was determined by a group of economic, financial, political, and security determinants, as
legal legislation alone cannot It is sufficient for capital and investments to flow inward, but these legislations must be implemented in the correct manner in order to be compatible with the Iraqi economic reality.”
Al-Issawi pointed out that the current government trends are in the interest of attracting investors and capital, as the Sudanese government is working to activate laws that are in the interest of investment, so this trend should be exploited to create strategic projects relying on the private sector and foreign companies, indicating that
these positive factors were not available in Previous years, as the difference in visions regarding the quality and nature of investments constitutes a major obstacle to companies wishing to enter Iraq, in addition to the conditions that the country experienced in the past, which have completely disappeared now.
For his part, the specialist in economic affairs, Dr. Adnan Bahia, says that investment is one of the development arms of any country that is trying to move at an accelerated pace towards development and sustainable development.
It also contributes to the transfer of technology and modernity, employs a large number of workers, local experts and graduates, and reduces the burden on the state financially and planning. In the areas of development and shaping the future.
Bahia added that investment works to strengthen relations between countries and companies, especially in the field of long-term investments, but it needs a safe and stable environment, in addition to its need for an environment that protects it from routine and dealing with relevant institutions.
So, how long will us investors in the IQD have to wait before Iraq is allowed to liberate its own currency?
Why do I say “now is the time”? We know they are completely out of Chapter VII sanctions since December 2022, and so why not treat them as such?
We know they want the Iraq funds (nearly USD 115+ billion) released from the NY banks and put in their custody to do what they want with it... We know they have plans for yet more Sovereign Funds to invest their reserves. We know they are making agreements now for “currency swaps” and will no longer be using any US dollars in Iraq as of January 1st 2024
We know since January they have undertaken a massive “de-dollarization” program and told it should have taken 6 years but they decided to do it in 1 year (2023). Why such a hurry?
We know the value of the IQD right now without any further economic development does exceed even pre-1991 era ($3.22) but still at 1/6 of a penny? We know Iraq now pumps 2/3 more oil than in pre-1991 era. We know Iraq also has announced 132+ tons of GOLD reserves. We know they are pushing this year alone, more than any other year since 2005, for the passing of Oil and Gas law. Why?
We know for a FACT that it is the U.S. through the Treasury Dept. direction that will NOT give sign-off to allow the reinstatement. Why? Finally, we know, the CBI has told us that January is the most opportune time to reinstate for accounting purposes, since it begins their new FISCAL year. Just be patient, the reinstatement is coming and I firmly believe with what we now are 99% sure it is going to be a January 2024 event. WOW! Finally!!!
Read The Latest Central Bank Circular: Has Dollar Trading Become Available To Everyone?
Economy |Baghdad today – Baghdad The Central Bank of Iraq’s statement yesterday, Wednesday, that the dollar exchange rates are subject to “the forces of supply and demand in the market,” raised several questions from economists about the reasons that prompted the governor to issue a decision that only recently considered it an “economic crime” that would put the accused in prison under penalty of the Penal Code. Effective against speculators in exchange rates.
What economists have pointed out is that all the measures taken in cooperation with the American side for nearly two years have been put in vain by the return of the currency auction in a “parallel” manner, which is considered an implicit acknowledgment of the existence of a “parallel market” that imposes itself on the Iraqi economy and controls it, and there is no point in preventing it.
The Central Bank of Iraq had issued circulars to the licensed banks regarding their share and the sale of the dollar to citizens at the official price yesterday, Wednesday, as it confirmed that its circulars, No. 463/3/9, on 8/17/2023, paragraph (first), thereof, stated that the official price for selling the cash dollar to... The final beneficiary, the citizen, who amounts to (1,320) dinars/dollars, will go to the cash share received by the banks and exchange companies and mediate in buying and selling foreign currency directly from this bank/buying and selling window of foreign currency. It must be adhered to and sold according to the instructions communicated to you. Otherwise, the price is subject to the forces of supply. And market demand.
Economist Nabil Al-Marsoumi commented on this step, sarcastically, “The militarization of the dollar has ended, after the Central Bank recognized the existence of the parallel market!!!”
On the other hand, economic experts described the Central Bank’s action by saying that the bank was finally convinced of the futility of preventing parallel markets, and allows the exchange of the dollar currency according to supply and demand,” considering that “this step is good and will enhance the stability of the markets.”
The matter led to the raising of several questions by observers about how the Central Bank will ensure that the dollar does not go to prohibited channels, and
whether this means that the Central Bank will retreat from the step of preventing the delivery of dollar remittances to citizens, and
whether dollar circulation will become available and not be pursued and anyone can Banking can sell the dollar to anyone willing to buy the dollar, as well as
whether it will enhance the stability of the markets, especially since cash from the dollar will become available, which may lead to a balance of supply and demand and thus a decline in prices.
Saleh: Explained the Goad of the CBI regarding selling dollar outside the platform according to supply and demand, 24 Nov
Today, Thursday, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained the goal of the Central Bank’s circular today regarding trading the dollar outside the platform according to supply and demand, indicating that it will provide high flexibility in supply that contributes to market stability. Saleh told the official agency,
“Liberating the operations of buying and selling foreign exchange is not an alternative to the policy of defending price stability and the government’s plan to interfere in the stability of the general level of prices.”
Saleh added, “Families, natural and legal persons in Iraq are hoarding amounts of cash in foreign currency and outside the banking system amounting to billions of dollars and are subject to two phenomena.
The first is the difficulty of disposing of their circulation outside the laws of supply and demand that create the currently free exchange rate due to deterrent legal controls and
the second is the contraction of a large monetary supply from Liquid foreign currency, which has stopped moving in the form of a cash hoarding that is immobile and outside the circle of supply.” He continued,
"This exacerbates exchange rate fluctuations under the influence of (a liquidity trap in foreign currency resulting from an expected positive wealth due to the rise in the value of foreign exchange against the local currency)." Saleh added,
“Therefore, liberalizing the climate of dealing in foreign currency and giving it a white character will provide high flexibility in supply that contributes to reducing noise in the secondary exchange market,
which provides a flexible supply of foreign exchange that leads to market stability, supported by a government policy that provides commodity supply through the official price.” “For highly stable exchange and financed at an exchange rate of 1,320 dinars per dollar.”