Parliamentary Economy Committee calls for forming a joint oversight committee to monitor all government contract
Today, Friday, the Deputy Chairman of the Parliamentary Economic Committee, Yasser, called on the Presidency of the House of Representatives to form a joint parliamentary committee with the judiciary, the Integrity Commission, and the Financial Supervision Bureau.
Al-Hussaini told Al-Maalouma Agency, "There are physical administrative and financial violations in most of the contracts concluded by the current government, indicating that its committee has discovered a clear flaw in the economic contracts file."
He added, "We asked the Parliament Presidency to form a joint committee with the judiciary, the Integrity Commission, and the Financial Supervision Bureau to audit the contracts concluded by the government."
He pointed out that "most of the contracts are marred by a waste of public money and these contracts are not economically feasible for the country and have many comments on them. We have indicated these comments in official letters." End / 25 H
After they stop the auction the nation of Iraq's currency has to be backed by something. It will no longer be backed by the American dollar.
But with a basket, the other currencies can back up the Iraqi dinar. But that's not the best way for it to go.
The best way is for the Iraq dinar to be backed by gold or by its assets inside of that basket giving it the most power for all the other currencies...No doubt the currency of Iraq is not just backed by oil but by endless amount of things.
Economic expert Ahmed Al-Tamimi predicted on Friday (December 27, 2024) that the dollar exchange rate in the parallel market will continue to rise in the coming days.
Al-Tamimi told “Baghdad Today” that “the dollar exchange rate in the parallel market has been rising continuously for days,” expecting “it to continue to rise during the next phase, and this is directly related to the proximity of the announcement of the suspension of the platform by the Central Bank of Iraq.”
He added that “this is a clear cause of confusion in the business,” pointing out that “there is a growing demand for the dollar in the parallel market, after this announcement due to the fears and the lack of knowledge of traders how it will be to deal with banks regarding foreign remittances.”
He stressed that “this increase increased the exchange rate and we expect it to increase the exchange rate, and for this the Central Bank of Iraq must clarify the new mechanisms of external transfers and how they will be through banks, in order to reassure the street.”
The specialist in economic affairs, Nasser Al-Tamimi, revealed earlier on Thursday, the reason for the continued rise in the dollar exchange rate in local markets for a few days.
Al-Tamimi told Baghdad Today that “there are two main reasons behind the reason why the dollar exchange rate has continued to rise in local markets for a few days,” noting that “the first reason is the proximity to stop the platform in the Central Bank, this is a reason for confusion in the market, especially among small traders, who increased their demand for the dollar from the parallel market.”
He added that “the other reason is the proximity of the New Year’s celebrations, there is a demand for the dollar in the parallel market for the purpose of travel as well as the purchase of some goods,” suggesting that “the rise will continue until the beginning of the new year, and then it may return to gradually and slowly decline.”
In the recent Dinar Guru updates, key discussions revolve around the potential changes in the Iraqi dinar’s valuation and the implications of the Central Bank of Iraq’s (CBI) policies.
The updates highlight an official announcement about the cessation of a currency conversion platform by the end of the year, which has raised questions about the future exchange rates. Mark Z, a prominent figure in this discourse, emphasizes that when the revaluation (RV) occurs, fluctuations in rates will be minimal, suggesting a narrow window for currency exchange. This cautionary note contrasts with the more optimistic views of some investors who believe they can capitalize on rate increases.
Frank 26 contributes to the conversation by indicating that the presence of lower notes in circulation is a preparatory step towards a potential RV.
He suggests that the discussions surrounding a new exchange rate are gaining traction, particularly as the cessation of currency auctions approaches.
The sentiments expressed by various commentators convey a mix of cautious optimism and skepticism regarding the prospects of the Iraqi economy.
Ceroni emphasizes that any increase in currency value must be tied to Iraq’s economic growth and diversification efforts, particularly beyond oil dependency. Overall, while there is some hope for the future of the Iraqi dinar, the pathway to significant valuation improvements appears to be gradual and contingent upon broader economic reforms.
Highlights
📉 Currency Conversion Platform Ending: The CBI has officially announced that the currency conversion platform will cease operations at the end of the year, raising concerns about future exchange rates.
💸 Minimal Rate Fluctuations: Mark Z states that upon RV, rates are unlikely to fluctuate significantly, cautioning against holding onto currency for potential increases.
📈 Optimistic Contacts: Mark Z reports that his Iraqi contacts are optimistic about imminent changes, suggesting readiness for potential RV developments.
📊 Iraq Stock Exchange Growth: The Iraq Stock Exchange has been recognized for achieving the highest trading volume growth in the Arab world, indicating positive trends in the financial market.
🏦 New Exchange Rate Discussions: Frank 26 mentions ongoing discussions about adjusting the exchange rate, which are gaining attention in Parliament.
🏗️ Economic Diversification Efforts: Ceroni stresses that the value of the currency is inherently linked to Iraq’s economic growth, particularly through diversification away from oil.
⌛ Limited Exchange Window: There is a warning that individuals must act quickly in exchanging currency as there may be a limited time frame before certain bills are no longer accepted.
Key Insights
📉 Implications of Stopping the Conversion Platform: The announcement regarding the cessation of the currency conversion platform by the CBI raises significant questions about liquidity and accessibility for currency exchange. The end of this service could lead to increased pressure on the market and may limit the options available to both investors and everyday citizens looking to exchange their dinar. This development could create volatility in the market as traders and investors scramble to adjust to the new reality.
💱 Cautious Approach to Currency Holding: Mark Z’s assertion that rates may not fluctuate more than 1 to 2% upon RV serves as a critical reminder for investors. The idea that holding onto currency in hopes of riding a float may result in missed opportunities emphasizes the need for strategic planning and timely action in currency exchange. Investors should be wary of falling into the trap of speculation without a solid understanding of the market dynamics at play.
📈 Positive Market Indicators: The Iraq Stock Exchange’s remarkable growth of 131.24% in November indicates a budding financial market that could provide a foundation for future economic stability. Such growth in trading volume suggests increased investor confidence and may reflect broader economic recovery efforts underway in Iraq. This positive trend could be a precursor to more favorable conditions for the dinar, contingent upon sustained growth and reform.
🌍 Economic Growth as a Currency Driver: Ceroni’s perspective that a currency’s value is intrinsically linked to the economic success of a country highlights the importance of solid economic fundamentals. The focus on rebuilding Iraq and diversifying its economy away from oil dependency signifies a commitment to long-term growth and stability. As the government continues to implement necessary reforms, the potential for a more robust currency valuation may gradually materialize.
⏰ Urgency in Currency Exchange Decisions: The warning about a limited window for exchanging currency underscores the importance of acting swiftly. Investors and holders of the dinar must stay informed and prepared to exchange their currency before it potentially loses acceptance. This urgency could drive market activity as individuals scramble to take advantage of the situation before it changes.
🏛️ Parliament’s Role in Economic Adjustments: The discussions in Parliament about a new exchange rate reflect the complexities involved in monetary policy and economic management. The government’s responsiveness to market conditions and its willingness to adjust policies will be critical in navigating the upcoming changes. The involvement of legislative bodies in economic discussions is essential for establishing a stable financial environment.
💡 Gradual Progress in Currency Value: The insights presented suggest that while there is potential for the dinar to appreciate in value, this will likely occur gradually rather than through a sudden RV. A focus on economic reforms, diversification, and sustained growth is vital for fostering an environment where the dinar can gain strength. Investors should remain patient and vigilant as the situation develops, understanding that meaningful changes may take time to materialize.
In conclusion, the updates from Dinar Guru reflect a complex interplay of optimism and caution surrounding the Iraqi dinar’s future. The landscape is influenced by forthcoming monetary policy decisions, the performance of the Iraqi economy, and broader market trends. Stakeholders must remain informed and prepared to act as the situation evolves.
Al-Sudani: We respect the will of the Syrians and look forward to a comprehensive political process
Baghdad / NINA /- Prime Minister, Mohammed Shia al-Sudani stressed: "Iraq respects the will of the Syrians and looks forward to a comprehensive political process, and will not allow the entry of armed groups and weapons into Syria."
Al-Sudani said in statements to Al-Arabiya Al-Hadath channel: "We informed the administration in Syria of our vision regarding the current situation, and we will not interfere in Syria's affairs and will not be part of tampering with its security."
He added: "We are keen to coordinate with Syria to control the borders, and any disruption in Syria's prisons will push us to confront terrorism," noting: "The conflict between Turkey and the SDF poses a real danger."
The Prime Minister continued: "The Assad regime did not ask Iraq to intervene militarily, and Maher al-Assad did not enter Iraq after the fall of the regime." / End