Monday, September 18, 2023
Economic experts warn Iraq against staying with the US Federal Reserve, 18 SEPT
Economic experts warn Iraq against staying with the US Federal Reserve
Ali Al-Zubaidi is a researcher in political and media affairs. The Iraqi economy is currently experiencing a new shock as the dollar exchange rate in local markets has significantly risen. The parallel exchange rate has reached 1,540 dinars to the dollar, while the official exchange rate is only 1,320 dinars.
The recent rise in the exchange rate can be attributed to the sanctions imposed by the US Treasury Department on 14 banks. The Wall Street Journal reported about these sanctions a few weeks ago. It is noteworthy that earlier, four Iraqi banks were also subjected to similar sanctions after they were found guilty of money laundering.
According to a recent report by an American newspaper, several banks including Al-Mashshar, Al-Qartas, Al-Tif, Elaf, and Erbil, as well as the International Islamic Bank, the Trans-Iraq Bank, Mosul, Al-Rajeh, Sumer, Al-Thiqah, and Or, along with Al-Alam and Zain Iraq banks, have been banned from transferring US currency to Iran. The ban is part of a larger campaign aimed at preventing the transfer of US currency to Iran.
The recent US sanctions have caused a fresh wave of concern among Iraqis. This comes after several unsuccessful attempts by the government, during the tenure of Prime Minister Muhammad Shia al-Sudani, to bridge the gap between the parallel exchange rate and the official rate. The economic crises and setbacks faced by the American economy over the past few years have only added to the worries of the Iraqis.
It is important to note that the global economy is diversifying with the emergence of new currencies, including the Brexit currency, the euro, the Chinese yuan, and the Russian ruble. The introduction of the Brexit currency is anticipated in the financial markets next year once the legal procedures are completed. Recently, a meeting was held in South Africa where the number of members increased to over 24. These members include promising economies such as China, Russia, India, South Africa, Iran, Saudi Arabia, the Emirates, as well as some countries in the Americas like Brazil and Venezuela. It is expected that the number of members will continue to rise.
According to several researchers in economic affairs, there is a possibility that the Iraqi government will take measures to prevent banks from falling into the trap of the US Treasury’s sanctions, particularly those imposed on some banks from time to time.
It is important to note that Iraq has over 100 billion dollars in reserves in the United States. This highlights the need for the government to enhance its sovereignty over the 70+ private banks in the country.
The measures taken by the government may prevent America from imposing any further sanctions. Previously, America had imposed sanctions on 14 banks which caused a shortage of US dollars in the local market. The financial liquidity in the local market is still being managed in ways that are outdated and not modern.
It is important for the Central Bank to impose binding conditions on the development of banking in order to avoid any imposition of American guardianship through accusations of money laundering.
Evening News with MarkZ 09/18/2023
An Economic Analysis Of The Reasons For The Rise In The Exchange Rate In Iraq.. This Is America’s Role, 18 SEPT
An Economic Analysis Of The Reasons For The Rise In The Exchange Rate In Iraq.. This Is America’s Role
Information/private.. Today, Monday, an informed economic expert revealed the main reason behind the continued rise in dollar exchange rates in Iraqi markets, while he considered that the Central Bank’s negotiations with US Treasury aid “were not successful.”
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The expert said, in an interview with the Maalouma Agency, that “the rise in the dollar exchange rates in the Iraqi markets came as a result of the recent decision of the Central Bank of Iraq, which stipulated reducing cash sales to exchange companies of various types by half, which was implemented since yesterday.”
He added, "The companies that used to get two million now have only one million, for example," noting that "this decision will lead to a large deficit in the local markets, because the exchange companies' sales go in parallel."
The economist (who preferred not to reveal his name) stated that “the decision to reduce the sales of exchange companies was taken at the request of the US Secretary of the Treasury during her visit to Baghdad.”
The expert stated, “The central bank negotiations with the American side were certainly not successful, and the evidence for this is the lack of control over the rise in exchange rates.”
Today, Monday, the dollar exchange rates witnessed a significant rise in the Iraqi markets, reaching more than 158 thousand dinars for every 100 dollars, amid fears that this rise will continue.
Earlier, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, discussed with the Assistant Secretary of the US Treasury, Elizabeth Rosenberg, bilateral relations and discussed the measures taken in the field of combating money laundering and terrorist financing. LINK
The Dollar Is Exhausting The Dinar.. The US Treasury Scatters Government Reforms And The Central Bank Negotiations “Fail”, 18 SEPT
The Dollar Is Exhausting The Dinar.. The US Treasury Scatters Government Reforms And The Central Bank Negotiations “Fail”
Information / private.. The series of rising dollar exchange rates in Iraqi markets continues, amid conflicting opinions about the real reasons that led to the exhaustion of the local currency again, especially as it began to rise to levels that warn of a great danger to the country's economy.
Despite the many reasons, the timing of the visit of the US Assistant Secretary of the Treasury to Iraq and the meeting of the US delegation with the Governor of the Central Bank, and the subsequent significant rise in prices, raises controversy and questions.
Today, Monday, the dollar exchange rates witnessed a significant rise in the Iraqi markets, reaching more than 158 thousand dinars for every 100 dollars, amid fears that this rise will continue.
"Political file"
The economic file is perhaps 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.
Former member of the House of Representatives, Fadel Al-Fatlawi, considered the issue of the rise in the dollar exchange rate in local markets “purely political,” in relation to the relationship of the visit of the US Assistant Secretary of the Treasury to the rise of the dollar.
Al-Fatlawi said, in an interview with the “Al-Ma’louma” agency, that “the rise in the dollar exchange rates in the local markets inside Iraq is a political file to put pressure on Muhammad Shiaa Al-Sudani,” pointing out that “the government is serious about reducing the exchange rate, especially since it approved the amount of 132 thousand for every 100 dollars.” .
He adds, "There is a large financial reserve with the government, in addition to the large financial habits achieved from selling oil prices in global markets, all of which contribute to securing the Iraqi economy and maintaining the stability of the price of the local currency."
The former MP explains that “this pressure is being exerted on the government in agreement with the US Federal Bank,” suggesting that “prices will decline in the coming days.”
Al-Fatlawi explains, “The visit of the US Assistant Secretary of the Treasury to Iraq, in addition to the sanctions imposed on some banks, are all factors that caused the exchange rate to rise to these levels.”
"America's role"
The visit of US Assistant Secretary of the Treasury, Elizabeth Rosenberg, to Iraq scattered all the papers and reforms that the government was able to undertake during the previous period, and this was not to the liking of the American side, which imposed a new condition that led to prices rising again.
In turn, a knowledgeable economic expert revealed the main reason behind the continued rise in the dollar exchange rates in Iraqi markets, while he considered the Central Bank’s negotiations with US Treasury assistance “not successful.”
The expert stated, in an interview with the “Al-Ma’louma” agency, that “the rise in the dollar exchange rates in the Iraqi markets came as a result of the recent decision of the Central Bank of Iraq, which stipulated reducing cash sales to exchange companies of various types by half, which was implemented since yesterday.”
He points out, “The companies that used to get two million now have only one million, for example,” noting that “this decision will lead to a large deficit in the local markets, because the exchange companies’ sales go in parallel.”
The economist (who preferred to remain anonymous) confirms that “the decision to reduce the sales of exchange companies was taken at the request of the US Secretary of the Treasury during her visit to Baghdad.”
The expert continues, "The central bank negotiations with the American side were certainly not successful, and the evidence for this is the lack of control over the rise in exchange rates."
If the Iraqi economy wants to get rid of American hegemony, it must think about radical solutions that are far from a rentier economy and complete dependence on oil. Considering that all of the country's financial revenues come through this resource, whose money goes to the US Federal Bank, which allows the country's economy to be managed instead of the government. LINK
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