{Economic: Al Furat News} The US dollar pushes the Iraqi dinar to confront and stabilize at a certain number, while local markets become stagnant.
Economic expert, Basem Jamil Antoine, told {Euphrates News} that: "The reasons for the stability of the dollar exchange rate are due to a number of factors, including the stagnation in economic and commercial activity, which is considered weak in all markets in Baghdad and Iraq, and shopping activity is weak during the month of Muharram."
He added, "During the month of Muharram, there is stagnation in commercial activity, no shopping, and inactivity, and economic activity in general is almost at a standstill, in addition to being in the hands of the state in general; therefore, there is no active commercial activity or demand for the dollar; because the private sector is mainly the one that buys the dollar to import, and in the absence of demand, it remains stable."
Antoine added, "Also, the rise in exchange rates is faster than their fall, and this process needs to be reviewed, as traders who bought the dollar do not sell it at a loss, which is one of the reasons for the stagnation, stagnation, and weak economic activity, in addition to the high temperatures that play a major role in the productivity of the individual or citizen, which is weak."
In addition, the Parliamentary Investment Committee confirmed the impact of the fluctuations in the dollar exchange rate on investment projects.
The buying and selling prices of the US dollar in local markets have ranged between 150,500 and 150,250 dinars for days.
The exchange rates of the US dollar against the Iraqi dinar today, Saturday, were as follows:
Selling price 150,250 dinars.
Buying price 148,250 dinars for every 100 dollars. LINK
💢 MORE helpful evidence that the News / rumors on Telegram stating that South Africa had begun EAS Alerts, widespread, and lockdowns commenced on Saturday 7.27.24 was entirely untrue.
To give you background of this reliable friend, Mac Daddy is one of our cherished Admins in GLL and also leads a South African GLL Humanitarian group with nearly 300 members.
Lots of resourceful friends all over the country to confirm details with. LOTS!
💢 Mac Daddy's Update: Ginger, FYI
Good morning 😁 (I awakened an hour ago - 6am here) Good evening 😁
I have spent the last hour trying to gain any confirmation relating to this post (EAS & Lockdowns), as I personally have received no such information or indication thereof.
There have been NO EAS alerts or lockdown announcements in South Africa this past week other than claims by certain individuals that have not been vetted.
If a real and true action of this nature happened in South Africa, the GLL family would certainly receive several messages from South Africans on the GLL SA Chat to notify or query anything that may have been heard “on the ground” here.
These posts/Intel reports are highly irresponsible as they give false narratives.
We are currently having stormy weather and rain in the Western Cape 😄 I can confirm that!
I wish everyone a blessed Sunday ahead / a good night’s rest for those still heading to bed 😊🙌🏼✝️🤗♥️
💢Ginger: Thanks Liberty Grandpa!! 😁 Posting on 7.28.24 1:30 AM EST- bedtime for me. Goodnight / Good morning wherever you are in the world. 😉
Recently, there have been reports that political parties are controlling the sale of dollars in the financial markets.
This news has raised widespread concern among citizens and investors, as it is feared that this control will lead to manipulation of exchange rates and the creation of a black market that will negatively affect the national economy.
These developments come amid volatile economic conditions and a turbulent political landscape, which increases the challenges facing the government in maintaining currency stability and providing a secure economic environment.
Economic expert, Diaa Al-Mohsen, says, “The dollar exchange rate on the black market will not rise to more than 1,500 dinars,” accusing “political parties of controlling the sale of the dollar, as well as colluding with the monetary authority.”
He added, “Restricting the sale of dollars to travelers to certain exchange companies confirms that these companies are owned by large political blocs that benefit from the process of buying and selling dollars, and they are intended to obtain the largest share of foreign currency sales.”
He explains that “the Central Bank and the executive authority are fully aware of the political parties that control the dollar sales operations in the country, after they were restricted to certain companies.”
Al-Mohsen continues, “The dollar exchange rate will not reach high levels, especially since there is cooperation between the monetary authority and those who sell dollars on the black market, such that this cooperation ensures that the parallel exchange rate does not rise to more than 1,500 dinars per dollar.”
For his part, the official spokesman for the currency market in Sulaymaniyah, Jabbar Kuran, revealed the reasons for the rise in the exchange rate of the US dollar against the Iraqi dinar in the parallel market.
Jabbar Kuran says, “The issue of the rise in the exchange rate of the dollar against the Iraqi dinar is related to the financial measures taken by the Central Bank of Iraq.”
“The Central Bank of Iraq took some good measures in the past, but the increase that has occurred now is due to other measures that the Central Bank has not taken yet, including that the bank decided that foreign dealings are not limited to the US dollar only,
but this measure has not been taken yet, as well as not linking all banks to the electronic platform and stopping work on it with the exception of only seven banks, which do not accommodate the foreign trade exchange process that reaches about 50 billion dollars annually, and I do not expect those seven banks to accommodate this volume of trade exchange.
”
He added, "One of the other reasons that led to the rise in the exchange rate of the dollar against the dinar is the reduction in cash injections by the Central Bank of Iraq, except for this day."
He explains, “The demand for the dollar these days is abnormal, and I do not expect that opening the dollar exchange window for travelers at airports will be a reason for the dollar exchange rate to rise, even though now is the travel season.”
He states that “the large number of exchange offices and companies in Iraq and Kurdistan and the inability of the Central Bank of Iraq to meet their needs for the US dollar, as there are about 1,200 exchange companies in Iraq, and about 2,500 companies in Kurdistan, so far, have not merged with each other to reach about 400 actual companies, so all of these companies and offices need more than 50 million dollars daily.”
Kuran confirms that “the rise of the dollar this time is not linked to a political or economic crisis or external factors, but rather is linked to the measures of the Central Bank of Iraq, and it is possible that the bank will control this rise,” expecting the exchange rate of the dollar to rise to more than 150 thousand dinars for every 100 dollars, while ruling out at the same time that it will reach high levels as happened in the past periods.”
Since Eid al-Adha, the dollar exchange rate has risen to more than 152,000 dinars in the parallel market and exchange offices, after hovering around 145,000 dinars per 100 dollars.
Prices have fallen again over the past week, with the dollar now hovering around 149,000 dinars per $100.
The Central Bank imposed a mechanism that prevents the delivery of dollars to travelers except at airports, which increased the demand for dollars in the parallel market after illegal trade was financed through the parallel market via travelers’ dollars. LINK
The word I have is that Thursday night, the US Treasury told Iraq that if they didn't revalue their currency per the agreements "immediately," UST would force the issue. Iraq responded that they were holding up because of concerns about some smaller banks that they suspected were doing business with the Iranians.
They are determined that no RV funds make their way to Iran, because the two countries are historic enemies. UST responded by seizing the 5 banks, consolidating them into a single, manageable entity, and pushing the RV through.
Today, the Central Bank of Iraq made the announcement regarding this transaction. As far as I know, this is the last hurdle to the revaluation. More as I get it.👇🏻👇🏻👇🏻
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The “Bondholder” still has not been paid. He is expecting a call today.
Other than the MarkZ report that an announcement about lower denominations has been made in Iraq, There is nothing else to put out right now.
The number of billionaires in Iraq rivals that of nine other countries combined, a stark reflection of the deeply rooted corruption within the state.
Corruption has plagued Iraq, exacerbated by the misuse of its budget, which official statements claim has led to the loss of $250 billion over the past 17 years. However, economists argue the actual figure could be nearly double.
The number of billionaires in Iraq rivals that of nine other countries combined, a stark reflection of the deeply rooted corruption within the state.
The Commission of Integrity (COI) is set to reveal the amount of money recovered and the measures taken to prevent further financial waste.
Many Iraqis are calling for transparency regarding governmental agreements, imports, and expenditures. On June 3, 2024, the Council of Representatives approved the amended Federal General Budget Law No. 2024, which allocates approximately 211.9 trillion dinars, a 7% increase from the previous year's budget.
Former Iraqi Finance Minister Ali Allawi previously stated that out of the over $1 trillion budget from 2003 to 2020, more than $250 billion was lost due to administrative corruption. Economists, however, estimate the loss to be between $400-450 billion, nearly 40% of Iraq's total budget. This squandered amount could have funded significant infrastructure projects, such as building 400,000 modern schools or 20,000 hospitals.
Experts cite fake and overpriced contracts, corrupt officials, mismanaged investment projects, and poor economic planning as major contributors to the financial drain. Since 2003, Iraq's workforce has grown from 850,000 to over 4.5 million, yet efficiency in public service sectors remains low, with only about 30% of the budget effectively utilized.
According to Haider Hanoun, head of the COI, Iraq ranks 154th out of 180 countries on the global corruption index. Hanoun admits that enormous sums have been stolen and transferred to international banks, with some funds even financing terrorism. The COI's 2023 report indicates that over 391 billion Iraqi dinars and $500,000 have been recovered, with an additional 82 billion dinars and $5 million prevented from being wasted.
Iraq’s Poverty Levels
The Strategic Center for Human Rights in Iraq reports that over 10 million Iraqis live below the poverty line, with the 2024 budget failing to support more than one million needy families.
The ongoing economic crisis and the appreciation of the dollar have driven up commodity prices, exacerbating poverty. Southern provinces are particularly affected, with Muthanna Governorate experiencing a 52% poverty rate, followed by al-Diwaniyah, Maysan, and Dhi Qar at 48%. Baghdad and Nineveh have poverty rates of 13% and 34.5%, respectively, while central provinces average an 18% poverty rate.
On July 21, 2023, Labor and Social Affairs Minister Ahmad al-Assad announced government measures to combat poverty, noting that Iraq has fallen 20 places in international rankings.
The economic challenges and rampant corruption in Iraq continue to hinder the country's development and exacerbate poverty. The COI's efforts to recover stolen funds and prevent further financial mismanagement are critical steps toward rebuilding trust and ensuring a more equitable distribution of wealth. link