Shafaq News/ Hadi Al-Salami, a member of Iraq's Integrity Committee, disclosed on Thursday that his committee has been investigating the prolonged appointment of Ali Al-Allaq as Governor of the Central Bank of Iraq (CBI) for over a year.
Al-Salami told Shafaq News Agency that the committee had repeatedly urged Prime Minister Mohammed Shia Al-Sudani to "terminate Al-Allaq's interim appointment due to numerous alleged violations," emphasizing that the government's agenda, as outlined by the Prime Minister during the formation of the government, mandates the termination of acting positions within six months. "Despite this, Al-Allaq continues to hold the position without any official action to end his appointment."
The Integrity Committee has referred several issues concerning CBI to the Integrity Commission and the Public Prosecutor. These issues include alleged mismanagement of exchange rates and concerns over substantial sums of money and benefits accruing to various Arab and foreign banks, including those from Jordan.
Al-Salami also revealed that the "Acting Speaker of the Parliament has agreed to host CBI's Governor in upcoming sessions," indicating that "numerous questions will be posed to Al-Allaq during this session."
In response, Al-Allaq stated to the Iraqi News Agency that meetings are scheduled with the Federal Reserve and the US Treasury Department at the end of August. "These discussions will focus on external transaction processes and the sanctions imposed on certain banks."
Al-Allaq defended his leadership, asserting that "the Central Bank has successfully managed external remittances and the sale of dollars."
Article: "PARLIAMENT RETURNS THE OIL AND GAS LAW TO THE GOVERNMENT: IT MUST ADD
PARAGRAPHS THAT KEEP PACE WITH GLOBAL DEVELOPMENTS" Quote: "the government must work on amending and adding new paragraphs to the law..." WOW! This is excellent news. This article shows us the Oil and Gas Law is actually farther ahead than the news has been telling us. It actually did reach parliament and the readings were conducted so far...
..what is actually occurring between the CBI, the Feds and the US Treasury. If you read the headlines today you might begin to panic...you might say things are looking really bad for Iraq. But I assure you that this is all actually VERY GOOD news for us investors... this recent move by the US Treasury was made for the benefit of the currency reform process so that they could move to the next step of the currency reform once these issues are fixed...
The US Central Command announced on Thursday the arrival of F-22 aircraft to the region as part of US reinforcements to confront threats from Iran and its proxies.
"F-22 aircraft have arrived in the region to mitigate the possibility of regional escalation," the US Central Command said.
The Middle East is bracing for a possible new wave of attacks by Iran and its allies following the assassination of the head of the political bureau of the Palestinian resistance movement (Hamas) in Tehran and a senior commander in the Lebanese Hezbollah group in Beirut, raising fears of a wider war in the Middle East.
US Secretary of State Antony Blinken said US officials were in contact with allies and partners in the region and that there was "unanimous agreement" that no party should take any actions that would escalate the situation. link
Article quote: "Even the measures taken by the government to try to down low dollar prices to 1320 to sell it in a supported manner didn't not reach the elimination of speculation in the markets reducing the price of a dollar in the black market."
It didn't work to kill the black market just yet but I got a strong feeling since the dollar auctions have gone from 250 million a day down to less than 25 million...consistently for over a week...we can see where their priorities lie.
Iraq is still being able to function. They told us their 2023-24 budget was legal, has always been and they're moving forward with it...Even though we haven't seen an exchange rate change they can still function, which is fine..
.Now they're starting to do things that are getting their banks in order and we're seeing the results of that.
Article: "Central Bank Governor's Resignation: Admission of Failure or Escape from the Repercussions of the Financial Crisis?"
Do we really think at this stage of where the reforms are now and how far they have come to even suggest Al-Alaq is going to go to Al-Sudani and give his resignation? ...Al-Alaq in present terms has kept the country in a state of financial stability to date...This is a hit piece. One that is not surprising as the dollar auctions have dried up. That is very painful to those that lived off the cash cow... We shall see if it arrives and he steps aside as they put it...
The Governor of the Central Bank, Ali Al-Alaq, confirmed the stability of the financial situation in Iraq, and revealed new mechanisms to facilitate foreign trade, including a new mechanism for small traders’ transfers. He also pointed to the importance of the upcoming meeting in New York to resolve the problem of sanctioned banks, stressing the existence of a government move to strengthen the banking sector.
Financial situation in Iraq
Al-Alaq confirmed in an interview with the Iraqi News Agency (INA) that "the financial situation in Iraq is still proceeding according to what is planned in the state's general budget, despite external and local challenges." He explained that "there is high coordination between the Central Bank, the Prime Minister and the Ministry of Finance to ensure the stability and sustainability of the financial aspect."
He added: "We are working closely with the Ministry of Finance to implement the financial plan drawn up in the general budget, which ensures that the objectives, programs and needs are covered." He also pointed out that "the rotation of allocations for governorates and ministries is happening for the first time, which contributes to providing the necessary balances for their role."
Foreign trade
Al-Alaq stated that “the Central Bank is making a major shift in organizing foreign trade to achieve transparency in foreign transfer operations, starting from the transfer and reaching the final beneficiary.” He explained that “this process includes international auditing institutions to ensure that the information is in line with local and international standards.”
Al-Alaq pointed out that "the audit process used to be conducted later, but now the process does not proceed unless all conditions and documents are met." He stressed that "large and medium-sized importing companies have adopted this new system, which contributes to securing their imports with high fluidity."
Other international currencies
Al-Alaq said: “The Central Bank has opened channels for Chinese, Turkish, Indian and Emirati currencies, which represent a significant weight in foreign trade.” He added that “the suspension of these operations for a period was aimed at providing sufficient oversight of these operations, and that a new audit mechanism has been put in place by an international company.”
He explained that "commercial foreign transfer operations are now subject to review by the competent international company, to ensure the safety of the operations."
The difference between the market and the official price
Al-Alaq confirmed that "the Central Bank sells more than $250 million daily at the official price to cover foreign trade, which explains the absence of inflation or price increases." He explained that "the parallel market consists of illegal trade or trade escaping from the fundamental procedures."
Al-Alaq pointed out that "the view of the dollar price should focus on the Central Bank's sales at the official price to settle various needs."
low inflation
"The central bank's main goal is to maintain the general price level and limit inflation," Al-Alaq said. "Monetary policy has succeeded in controlling this aspect, as the level of inflation in Iraq is much lower compared to other countries," he added.
Cooperation with the US Treasury
Al-Alaq praised the cooperation with international organizations such as the International Monetary Fund, the Federal Reserve and the US Treasury, explaining that "there is great praise for the transformations, management and organization of the external transfer process in the Central Bank of Iraq."
Al-Alaq pointed out that "the Central Bank is working to create a direct relationship between the Iraqi bank and the correspondent without going through the Federal Bank, with the aim of facilitating transfer operations."
Upcoming meeting in New York
Al-Alaq announced that "meetings will be held with the Federal Reserve and the US Treasury Department at the end of August to review all aspects related to external transfer operations and discuss sanctions on some banks."
Lifting restrictions on banks
Al-Alaq stressed that "lifting restrictions on some banks is of interest to the Central Bank," noting that "the banking reform plan includes auditing previous operations and contracting with an international consulting firm to develop a future strategy for the banking sector."
Housing Initiative
Al-Alaq revealed "a government move to increase capital to support the housing sector through the Real Estate Bank and the Housing Fund." He added that "the Central Bank plays an exceptional role in bridging the housing financing deficit."
Al-Alaq explained that "the government will increase the capital of the Real Estate Bank and the Housing Fund to support the housing sector," stressing that "the Real Estate Bank will work to meet all requests to purchase housing units." link