Iraqi Cabinet pushes for State Contracts in Dinars
As part of financial and economic reforms, the Iraqi Cabinet has endorsed recommendations to conduct all state contracts within Iraq in Iraqi dinars.
Exceptions will be made for ongoing external grants, loans, and agreements. New contracts involving foreign grants, loans, and agreements may adhere to foreign currency terms agreed upon in the Ministry of Finance’s April 27, 2023 circular.
Beneficiaries can open documentary credits for importing project materials and transfer foreign currency for salaries, wages, and company dues, subject to the controls of the Central Bank of Iraq (CBI).
It looks like Iraq is pushing for its own monetary sovereignty... Article: "Iraq is moving towards applying the principle of monetary sovereignty. What does that mean?" This is actually really good news...This is what we've been bugging Iraq to do - get out of the shadow of the United States and do your own thing...
In other words, our little child is wanting to be all grown up and make a move to be on its own. This is exactly what we've been looking for...Once we kick the training wheels off of Iraq, you have to trust the people who are making the decisions about the Iraqi dinar make smart ones and not screw everything up...
In 2020 we know they almost went bankrupt and they ended up devaluing their currency. After about a year they increased it again. Not to where it was. We used to be able to get 1,190 for every dollar. Now we're getting what 1,310 for every dollar...We need it to go in the other direction.
The less amount of dinars we get per dollar the better it is for our investment. Eventually what you want...it to cost you more dollars than it does dinars. You want to spend $2.00 for 1 dinar. That's the direction we want to go in.
All those gurus out there making the claim that because of the amount of oil they have, 'Oh, my God, they're going to be reinstated. The Iraqi dinar is going be extremely valuable. Pimpy doesn't know what he's talking about.' What did I say? I say, stay grounded. That's not true. Not true at all.
There are other hurdles Iraq has to go through in order for the exchange rate to increase in value. I said this a million times, Iraq relies too much on oil to fund their government so it's not going to go up just because they got tons of oil.
A parliamentarian accuses the Central Bank of hiding the facts about the currency auction
On Thursday, MP Hadi Al-Salami confirmed the lack of transparency standards in the Central Bank auction and pointed out that the bank is concealing the details of its daily bulletin of complex currency sales.
During an interview with [publication name], Al-Salami revealed that the size of dollar amounts sold to companies and banks during auction operations is not disclosed through a daily bulletin.
The speaker expressed their concern regarding the Central Bank’s performance, stating that there seems to be confusion and a lack of control over the dollar exchange rate. They highlighted that the objectives of the Central Bank Law are to promote economic and sustainable development and support various segments of society, which they believe have not been achieved yet.
He noted the absence of transparency standards at the Central Bank in relation to the daily sales volume of the dollar.
Al-Salami noted that there is a lack of transparency regarding the volume of dollar sales to banks and companies.
Ahmed Brehi, a member of the Board of Directors of the Central Bank, refuted claims that the bank is experiencing any issues with its foreign currency balance or revenues. He stated that the supposed shortage of cash liquidity is a fabricated issue resulting from a lack of understanding about central banking.
Integrity enters the field of “illicit gain” and stops inflation by 266 billion dinars, 30 NOV
During a review on Thursday, Judge Haider Hanoun, the head of the Federal Integrity Commission, highlighted Iraq’s efforts to combat corruption in the past year. He urged international organizations to acknowledge the country’s achievements in deterrence, prevention, awareness, and education, which he described as “unprecedented.” However, he also pointed out that there were still challenges in tackling illicit gain, citing files inflated by over a quarter of a trillion dinars.
Hanoun delivered at the European Union mission forum in Iraq on International Anti-Corruption Day. The conference was titled “Iraq… Prospects and Challenges of Combating Corruption”. He mentioned that the Commission had made significant progress in the fight against corruption and that Iraq’s experience in this field is almost unparalleled globally. Hanoun urged international organizations to give Iraq its due recognition and rank it highly in the anti-corruption index.
Hanoun reviewed the Authority’s preventive education and awareness-raising efforts over a year. The Authority launched an extensive campaign to follow up on the debts of senior officials and the inflation occurring therein. Hanoun stressed that opening this file resulted in significant achievements. The funds amount to an amount that represented inflation in light of the technical reports of the Prevention Department. The referral of its files to the judiciary exceeds 266 billion dinars.
The head of the Integrity Commission expressed gratitude towards the judiciary and the current government for their support in the Commission’s efforts to combat corruption within state institutions. The Commission aims to recover the accused and the funds related to crime inside and outside Iraq. It has also cooperated with the international community to conclude agreements. Some of these efforts have resulted in the successful recovery of funds and the conviction of those who committed corruption.
Hanoun expressed his appreciation for the significant efforts made by international and regional organizations in assisting Iraq in combating corruption. He specifically mentioned the United Nations Development Program and the European Union mission, which funded the project entitled “Supporting Justice Initiatives to Combat Corruption and Promoting the Settlement of Commercial Disputes.” Hanoun also acknowledged the contributions of the United Nations Office on Drugs and Crime and the German Agency for International Cooperation (GIZ).
The European Union.
European Union Ambassador Thomas Seiler remarked that corruption is a global problem that affects even developed nations. Its impact can be seen in various sectors, such as healthcare, security, and education. He emphasized that effectively combating corruption is crucial to eradicating poverty and unemployment. On the other hand, the proliferation of corruption can lead to organized crime, which negatively affects the local economy and undermines public trust in the system and the government.
Seiler commended Iraq for its recent efforts in combating corruption, which have demonstrated to the European Union and countries worldwide that Iraq is committed to fighting this crime and adhering to the United Nations Convention against Corruption. He emphasized that a society governed by the rule of law creates an attractive environment for investments and facilitates the creation of a strong economy.
Baghdad resume
The Deputy President of the Baghdad Court of Appeal – Al-Rusafa, Judge Iyad Mohsen Damad, has acknowledged the cooperation and coordination between the judiciary and regulatory agencies in the fight against corruption. He highlighted that the Supreme Judicial Council plans to establish specialized courts to handle cases related to integrity issues. The council also seeks to support judges in their rulings against those who misuse public funds and help recover smuggled funds.
According to Damad, the collaboration and coordination among the Integrity Commission, Supervision Bureau, and Anti-Money Laundering Office led to the development of the Financial Investigation Guide. This guide is now available for investigative judges and investigators to utilize in their work.
Sudanese role
Moayad Al-Saadi, the advisor to the Prime Minister, has emphasized Al-Sudani’s commitment to progress with the anti-corruption agenda. He has also stated that the regulatory agencies will be supported in their efforts to hold accountable those who have stolen public funds, without any exceptions for government employees.
Al-Saadi concluded by stating that Al-Sudani encouraged taking legal action against anyone, whether a current or former official, who dares to misuse public funds. He praised the efforts of the Federal Integrity Commission in combating and preventing corruption.