THE GOVERNMENT IS HELPLESS.. THE DOLLAR CONTINUES TO DESTABILIZE THE ECONOMY IN IRAQ, 6 NOV

 THE GOVERNMENT IS HELPLESS.. THE DOLLAR CONTINUES TO DESTABILIZE THE ECONOMY IN IRAQ

The dinar exchange rate crisis against the dollar has been ongoing in Iraq since late last year, and has been witnessing fluctuations despite measures taken by the country’s central bank to stabilize the currency.

It is worth noting that the fluctuation of the dollar exchange rate negatively affects the economic reality of Iraq in the first place, but there are those who exploit this issue for personal interests, such as currency smuggling traders and price speculators.

Regarding this matter, the economic expert Qasim Balshan says that the discrepancy in the dollar exchange rates is a door to corruption, given that there are private banks and companies that deal with the Central Bank of Iraq, and not everyone has the right to buy the currency auction.

Balshan said in an interview with Al-Maalouma Agency, “The state did not take real, actual measures to protect the Iraqi dinar, and all that was circulated were media statements that have no benefit on the ground.”

He pointed out that “there are influential political figures and blocs behind the rise in the dollar exchange rate.” Over the past years, the United States of America has prevented Iraq from achieving economic stability to achieve its strategic interests through its foreign policy and imposing sanctions and restrictions on financial transactions. 

In this context, State of Law MP Firas Al-Maslamawi says that the US Federal Reserve is besieging Iraqi liquidity through the dollar. 

Al-Maslamawi said in an interview with Al-Maalouma Agency, “The means of delivering the dollar and its restriction by the Federal Bank cast a shadow over the creation of liquidity in the Ministry of Finance,” noting that “the external liquidity file requires a high-level government effort in order to solve this issue and increase the quantities of dollars flowing into Iraq.”

Due to global sanctions, Iraq is forced to rely on the dollar for global trade, making its economy vulnerable to exchange rate fluctuations and US policy measures. 

FIREFLY: "THE IRAQI DINAR WILL GO ON FOREX SOON" , 6 NOV

  Frank26  

 [Iraq boots-on-the-ground report]

  FIREFLY: Some new financial guru here saying the new hybrid monetary plan will bring more alliance on the dinar instead of the dollar restrictions. 

 Saying it will make the dinar a base currency and a base currency is the main currency in a group of currencies that are traded in the international Forex...

He's saying they are going on Forex soon. 

 FRANK:  When they talk to you about a base currency, they are trying to tell you your nation will become a financial central hub with many currencies coming in from around the world that will play an important part in the international float of the Iraqi dinar in order to reach the real effective exchange rate.  Forex is but one example of how they will do this.  

REINALDO JC: "The dinar will return to the glory days" @DINARREVALUATION

 

PRIME MINISTER: THE NECESSITY OF STRENGTHENING IRAQ’S POSITION TO BE AT THE FOREFRONT OF THE REGION’S COUNTRIES IN THE TECHNOLOGICAL ASPECT, 6 NOV

 PRIME MINISTER: THE NECESSITY OF STRENGTHENING IRAQ’S POSITION TO BE AT THE FOREFRONT OF THE REGION’S COUNTRIES IN THE TECHNOLOGICAL ASPECT

Prime Minister Mohammed Shia al-Sudani stressed, on Sunday, the necessity of strengthening Iraq’s position to be at the forefront of the countries of the region in the technological aspect.

The Prime Minister’s Media Office said in a statement, seen by “Al-Eqtisad News”, that “Prime Minister Mohammed Shia Al-Sudani chaired the second meeting of the Supreme Committee for Artificial Intelligence.”

He added that “Al-Sudani listened, at the beginning of the meeting, to the government plans related to developing aspects related to artificial intelligence for employees, educational and educational sectors, and the agriculture and water resources sector, in addition to reviewing the legislative policy; in order to prepare a draft law regulating the work of artificial intelligence applications.”

He continued that “Al-Sudani reviewed the details and proposals related to introducing the subject of computers and artificial intelligence into the curricula of the Ministry of Education in the next academic year, stressing the need for every school to have a smart screen and an internet connection to establish a special laboratory for artificial intelligence, stressing the need to strengthen Iraq’s position to be at the forefront of the countries of the region in the technological aspect, with its various capabilities and potentials in this field.”

He explained that “Al-Sudani agreed to launch an initiative aimed at attracting competencies from abroad in the public and private sectors, including leaders and employees, by training 100 digital leaders as a first stage, and informing them of the latest experiences in this field, under the supervision of international experts, in order to create and implement policies in order to raise the quality of services provided to citizens.”

TIDBIT FROM BREITLING, 6 NOV

 Breitling  

[Iraq] is trying to be part of the international community. 

 What's blocking it is the international community won't invite Iraq in if they got Hezbollah or Hamas in their ranks.

  We understood from the beginning they had influence from Iran...But if they comply...they can expand their markets.  They're simply not doing that.

FIREFLY: IRAQ IS TAKING THE THREE ZEROS BILL TO PUTTING THEM IN AN ELECTRONIC PLATFORM

 

IMPORTS AND DEPENDENCE ON OIL ARE OBSTACLES TO IRAQ’S ACCESSION TO THE WORLD TRADE ORGANIZATION, 6 NOV

 IMPORTS AND DEPENDENCE ON OIL ARE OBSTACLES TO IRAQ’S ACCESSION TO THE WORLD TRADE ORGANIZATION

Membership in the World Trade Organization allows access to international trade policies. Despite the economic policies that Iraq has adopted over the past two decades in terms of international openness and the pursuit of establishing modern economic and legislative rules, attempts to obtain a seat in the World Trade Organization have not succeeded so far, noting that Iraq obtained observer status in the organization in 2004.

The financial advisor to the Prime Minister, Dr. Mazhar Mohammed Salih, said: The Iraqi economy lacks regulatory and supervisory regulations in the scope of trade relations and international requirements according to internationally approved standards.Supporters of joining the World Trade Organization believe that this path allows member states of the organization to have broader access to global markets, while membership in the World Trade Organization guarantees access to international trade policies.

Salih indicated that there is a lack of some important economic legislation, especially those related to the rights of workers in the private sector, the field of social security and trade union organization. He referred to the existence of two restrictions that weaken Iraq’s role in the international organization: the first is that Iraq is an importing country and does not have the competitive ability to export, and the second is the almost total dependence on oil.

For his part, academic Dr. Amr Hesham explained that supporters of joining the World Trade Organization have a number of reasons that encourage joining, including that international trade agreements provide broader vital access to global markets in the areas of goods and services, and the agreements and their rules create a commercial climate that allows for a reasonable degree of commercial forecasting, thus achieving the goal of preparing marketing and export plans.

He explained that trade agreements include obligations and rights, and the exercise of the rights contained in the agreements is limited to member states in the region and no one else, and resorting to the Trade Dispute Settlement Body imposes seriousness in applying the rules to all parties with the existence of a special mechanism to take punitive measures in the event of non-implementation.

Hesham pointed out that membership in the World Trade Organization guarantees access to other trade policies, and the procedures they include that may affect access to markets, and the extent of their consistency with international agreements, and participation in future negotiations in a way that ensures the defense of commercial interests that concern those countries, and the formulation of new agreements approved by ministerial meetings.  

The World Trade Organization (WTO): An intergovernmental organization that regulates and facilitates international trade among nations. Governments use the organization to establish, review, and enforce the rules governing international trade. The organization formally began operations on January 1, 1995, under the Marrakesh Agreement, replacing the GATT of 1948. The WTO is the world’s largest international economic organization, with 164 member states representing over 98 percent of world trade and global gross domestic product.