With A Dollar Bill... Deputy: The US Treasury Is Putting Pressure On Iraq
Information / Baghdad.. Today, Sunday, the representative of the Fatah Alliance, Ola Al-Nashi, accused the US Treasury Department of obstructing the Iraqi government’s reforms in light of waving the economic card through the dollar file.
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Al-Nashi told Al-Maalouma, “The economics file is more important than politics and what is happening in it, and it is the aspect that is focused on to thwart any government if it achieves successes and is able to get closer to the people.”
He added, "The government is required to take strong decisions against them in order to control the dollar crisis, noting that the American administration changed its sights towards the economic card after its failure in the soft war against Iraq."
Al-Nashi pointed out that “the rise in the dollar exchange rates in local markets is a political file to put pressure on Muhammad Shiaa Al-Sudani.”
The dollar exchange rates are witnessing a significant increase in the Iraqi markets, as the price of one dollar has reached more than 152 dinars, amid fears that this rise will continue. LINK
The IMF is recognizing Iraq to be a financially inclusive banking system.
This means they have become an open banking system allowing free trade agreements to be made with them near and far.
The CBI article that goes with this writing indicates that the IMF has recognized Iraq to be a compliant, safe, and trustworthy institution for trade. It is well and it's way to digitizing products for trade beyond the oil sector and on the local level.
These new monetary mechanisms will shield them from money laundering that has plagued them for so many years, and it will enable them to move forward with the full confidence of a Global Economy.
Frank26: "EXAMPLE OF THE CURRENCIES FOR THE BASKET"...F26
The Iraqi Central Bank confirms to Shafaq News the provision of five foreign currencies as an alternative to the dollar for merchants
3/2/2024
The Central Bank of Iraq confirmed, on Saturday, that it has provided five alternative currencies to the dollar, for merchants to use in purchasing their goods from other countries using each country’s currency through the bank.
Deputy Governor of the Central Bank, Ammar Hamad, told Shafaq News Agency, “The Central Bank provided other foreign currencies to Iraqi merchants, which are (the euro, the Chinese yuan, the Turkish lira, the Emirati dirham, and the Indian rupee).
He added, "These currencies have become available to merchants for the purpose of financing foreign trade. When a merchant imports goods from China, he can now pay the Iraqi dinar to the Iraqi bank, and through the bank, the amount will be paid to the Chinese company and factory in the Chinese currency."
Last week, the Central Bank of Iraq's total sales of hard currency in US dollars amounted to more than one billion dollars.
Shafaq News Agency correspondent stated that the Central Bank sold during the past week, and for a period of five days during which the auction was opened, one billion and 52 million and 796 thousand and 86 dollars, at a daily rate of 210 million and 559 million and 217 dollars, lower than what it recorded the previous week, when it amounted to one billion and 62. One million 587 thousand and 198 dollars. LINK
To Achieve Economic Stability, The International Monetary Fund Directs 4 Requests To The Iraqi Government
Arab and international Economy News – Baghdad The International Monetary Fund called on the Iraqi government to adjust public finances, increase the public sector wage bill, expand the tax base, and increase non-oil revenues to achieve economic stability.
This came in a statement issued by the Fund, on Sunday, at the conclusion of Article Four consultations with Iraqi financial and economic officials, which took place in the Jordanian capital, Amman, during the period between 20-29 last February.
The fund said: “To overcome oil price fluctuations, Iraq must achieve high economic growth to accommodate the growing workforce, enhance non-oil exports, expand the tax base and adjust the wage bill.”
He considered that the government must "strive to enable the private sector to develop and grow, carry out labor market reforms, modernize the financial sector, restructure state-owned banks, reform the retirement and electricity sectors, and reduce corruption."
Iraq is the second largest producer of crude oil in OPEC after Saudi Arabia, with an average daily production of 4.6 million barrels per day under normal conditions, and relies on crude export revenues to provide 90 percent of the state’s financial income.
The Fund added: “Growth in the non-oil sector returned strongly during 2023... Growth in real non-oil GDP is estimated at 6 percent, and overall inflation declined from the high level of 7.5 percent in January 2023, to 4 percent by the end of the same year.” ".
He continued: "The decline in inflation is due to the decline in food and energy prices at the international level, and the impact caused by the revaluation of the price of the Iraqi currency in February 2023."
He estimated that the improvement in oil prices in 2022 and the first months of 2023 contributed to the rise in international reserves to 112 billion dollars, from an average of 88 billion at the end of 2021. He said: “If regional tensions escalate, an interruption in shipping routes or damage to "This may lead to losses in Iraqi oil production."
Article Four of the Agreement Establishing the International Monetary Fund stipulates that bilateral discussions with member countries usually take place on an annual basis. A team of Fund experts visits the member country, collects the necessary economic and financial information, and holds discussions with official officials about economic developments and policies in that country...
