Parliamentary Finance: The Central Bank Has Come A Long Way In Its Mission To Get Rid Of The Dominance Of The Dollar
Mawazine News – Baghdad The head of the Parliamentary Finance Committee, Atwan Al-Atwani, confirmed today, Friday, that the Central Bank has come a long way in the mission of restoring market stability and getting rid of the dominance of the dollar.
Al-Atwani said in an interview followed by Mawazine News, “Diversifying the sources of foreign currency dependence in commercial transactions is the only way to address the problem of the increasing demand for the dollar.”
He added, "We stress the importance of this trend as it is an effective solution and a well-thought-out strategy to open new horizons that ensure the facilitation of commercial transaction procedures at various levels."
He continued, "We renew our full support for the steps of the Central Bank of Iraq as it moves steadily towards developing real solutions to the crisis." https://www.mawazin.net/Details.aspx?jimare=238471
Article: "Central Bank Governor: Washington responds to all that Iraq needs in terms of dollars and a meeting with it next month" Quote: "Al-Alaq said in a press interview that “the Iraqi Central Bank will hold a meeting with the US Treasury and the Federal Reserve early next month in Dubai, noting that “radical steps will be taken within the framework of reorganizing trade on the right foundations,” noting that the electronic platform will be completed early next year.”
Article: "US approval to increase the dollar balances of 10 Iraqi banks"
Quote: "The source explained that this agreement came in light of the recent meetings held by the Central Bank of Iraq with the American side, which resulted in an increase in the number of banks that can directly enhance their dollar balance to 10 banks, 5 of which are through Citibank, and the other five are through JP Morgan Bank."
Article: "The dollar in Iraq.. Baghdad is planning “permanent solutions” with Washington, and Parliament describes the dialogues as “successful”
Quote: "Monday (November 20, 2023), an informed source reported an expected meeting between the Central Bank of Iraq and the US Treasury Department next week."
Article: "An upcoming meeting between the Iraqi Central Bank and the US Treasury next week”
Quote "...new meeting between Iraq and the United States of America regarding the dollar...
On (last September 19) in New York, Iraqi Prime Minister Muhammad Shia al-Sudani informed the US Treasury Under Secretary of the expansion of his government’s work in reducing money laundering operations, while the latter indicated that the confidence of global financial institutions had been restored."
Article: "Iraqi Banks Association: The dollar will fall to the rate of 1,400 dinars... and the date is expected" Quote: " The advisor to the Iraqi Banks Association, Samir Al-Nusairi, expected dollar prices to fall to 1,400 dinars during the first quarter of next year. "
Article Written by: Baqir Jabr Al-Zubaidi - former Minister of Finance "The ongoing dollar crisis"
Quote: "The dollar crisis is a policy crisis of the continued American threat of sanctions, accompanied by the continued bleeding of the currency by private banks that are protected by some influential people, and this conflict is paid for by the citizen...
Solutions exist, and during our tenure at the Ministry of Finance (2006-2010), we succeeded in increasing the value of the dinar from (1,500 dinars to the dollar to 1,170 dinars to the dollar). We were planning to reach (1,000 dinars to the dollar) and then raise the zeros so that the dinar was equal to the dollar."
Article: "Ministry of Transport intends to open direct airlines towards Australia, America, Malaysia"
It's not just about a few regional countries. It's about many different places. Once you start opening up the airports all the investors can gain access to the country to take charge of their investment, produce their businesses. It's a really big thing to have an international airport full...they have their capacity...what they're using today is at 100% and they're not even international yet...
They're saying it's done. I really like that. I think you guys should be happy about it because if all the currency swaps are taken care of...I think it's a precursor to an exchange rate change in the future.
Article: " With the participation of 120 companies...the launch of the Iraq International Building, Construction and Infrastructure Exhibition"
This...being launched in Baghdad for the next few days is not surprising at all on the back of all the WTO meetings...since Oct 31st regarding Iraq's accession to the organization.
The 2023-2024-2025 budget is about investment primarily into infrastructure. It takes a lot of capital to build a country back...It will take massive amounts. It is far too expensive with 1310 exchange rate. An internationally accepted REER will likely make it far cheaper.
“Shocking number”… “Information” reveals new statistics about the numbers of American forces in Ain al-Assad
Shocking number... Information reveals new statistics about the numbers of American forces in Ain al-AssadInformation / Anbar..
On Friday, a security source revealed new statistics for the number of American forces present inside the building of the Ain al-Asad air base, west of Anbar.
The source said in a statement to the Maalouma Agency, “The number of American forces present inside the Ain al-Assad base in the Al-Baghdadi district of Hit district, west of Anbar, and according to estimates by the security leaders present inside the base building, they amount to about 6,000 fighters and advisors, including Australians of different nationalities.”
He added, “Most of those present are of American nationality. They were summoned from American bases in Kuwait and from within the country,” noting that “the current period has witnessed a significant increase in the number of American forces coinciding with the launch of Operation Al-Aqsa Flood.”
He explained, “The increase in the number of American forces inside the Ain al-Assad base came after the American forces established new buildings inside the base building,” stressing that “the security leaders inside the Ain al-Assad base building do not have sufficient information about the reasons for the large increase in the number of American forces inside the base building.”
It is noteworthy that a security source revealed, earlier, that planes carrying American soldiers and equipment landed at Ain al-Asad air base, west of Anbar.
I was included on an international call from several countries all over the world including US cities of NYC, Reno, Miami, plus Zurich, Hong Kong, and Iraq.
All the money reorganization to be introduced to the citizens this week and the CBI wanted this nation to announce our new currency in conjunction with them but if not then the CBI and Iraq would RV on their own. Effective date to be Wed. 22 Nov. of this coming week. Per several on the call all requirements such as FOREX have been satisfied. Remember I am just a messenger, but they sounded very confident of this info.
I received some preliminary information last evening (Fri. 17 Nov.) that I couldn’t confirm, then today (Sat. 18 Nov.) I was included on an international call from several countries all over the world including US cities of NYC, Reno, Miami, plus Zurich, Hong Kong, and Iraq.
The sum and substance of this call was all the in country banking and money reorganization to be introduced to the citizens this week and the CBI wanted this nation to announce our new currency in conjunction with them but if not then the CBI and Iraq would RV on their own.
Announcement dates are either Mon. 20 Nov. or Tuesday 21 Nov. with effective date to be Wed. 22 Nov. of this coming week. Per several on the call all requirements such as FOREX have been satisfied. Remember I am just a messenger, but they sounded very confident of this info.
Including leaving the electronic platform and reforming the banks.. The Governor of the Central Bank talks about 14 files, 25 NOV
Including leaving the electronic platform and reforming the banks.. The Governor of the Central Bank talks about 14 filesToday, Friday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, announced the start of supplying the dollar into the country through the accounts of Iraqi banks abroad, and while he indicated the end of the procedures to open accounts in the UAE dirham and the understanding with Turkey to make transfers in the euro or the Turkish currency, he revealed a broad plan to reform and develop private and government banks. .
Meeting with the US Treasury and the Federal Reserve
Al-Alaq said in an interview with the official news agency, followed by Al-Mutla’, that: “The Central Bank of Iraq is in constant communication with the US Treasury Department and with the US Federal Bank,” indicating that “this communication continues permanently, and there are quarterly meetings held to review all matters related to this framework.” Relationship”.
He added, “There is a meeting that will be held at the beginning of next month as part of the periodic quarterly meetings held between the Central Bank, the Federal Bank, and the Ministry of Treasury, where in these meetings we review all matters with emphasis and focus on the issue of regulating external transfer in a way that ensures the safety of the financial system, especially after the implementation of the new transfer system.” external environment, which requires a lot of coordination.
He stated that “these developments that have taken place are radical and not formal developments within the framework of reorganizing trade on sound foundations and organizing external transfer on sound foundations,” explaining that “the details related to this issue require coordination and joint cooperation between the Central Bank and those parties.”
He stressed that “the next meeting will be in the Emirati city of Dubai,” pointing out that “there are quarterly meetings in addition to emergency organizational meetings or communications via phone or video.”
Agreement to strengthen banks with dollars
He stated that “the Federal Bank agrees with the Central Bank on the necessity of them being removed from the process of conducting the executive aspects of the external transfer, and their role is limited to supervision and control, and this is normal in central banks that do not exercise these executive roles or detailed operations with regard to external transfer, and therefore the plan was The agreement between us is for the Central Bank of Iraq and the Federal Bank to exit these procedural processes, confirming the development of a plan to transfer the external transfer process from the electronic platform that will be completed at the beginning of next year.”
He pointed to creating a new relationship between Iraqi banks and internationally accredited correspondent banks abroad, where the process would be limited between them, and the role of the Central Bank of Iraq and the US Federal Reserve would be the process of monitoring and supervision, and we began some time ago trying to find a relationship between correspondent banks and our Iraqi banks.
Opened more than 40 bank accounts
He stated: “We have greatly succeeded in this context, and we were able to open more than 40 accounts for Iraqi banks with correspondent banks or abroad.”
Diversify currencies
He stated, “To increase flexibility and facilitation in the external transfer process, we have diversified the currencies in which transfers are made abroad, and we now have transfers in addition to the dollar, euro and UAE dirham.”
Understandings for making transfers through Turkish banks
He stressed that “the procedures have been completed for opening accounts in the dirham, the Chinese yuan, and the Indian rupee,” pointing out that “there are preliminary understandings with the Turkish side to make transfers through Turkish banks in the euro or the Turkish currency.”
He stated that “this issue is important and is being conducted in coordination with the Federal Bank and the US Treasury, and they are helping us in this,” noting that “this is the opposite of what some understand as an escape from the pressures of the Federal Bank regarding the dollar, as these currencies are covered by the dollar and we buy them from the dollars in the bank.” The Federal Bank, which is not far from the Federal Bank, but rather with the coordination and support of the Federal Bank, as it wants to reach with us the desired goal, which is to have a relationship between Iraqi banks and correspondent banks.”
He stated, “This is happening for the first time by opening this number of accounts for our banks, and it is a very important step to strengthen the banking system in Iraq, because accepting these banks means that they now have systems capable of being accepted internationally,” explaining that “any correspondent bank currently accepts… By opening an account with an Iraqi bank after ensuring that this bank has the necessary systems, standards, conditions and rules under which it operates.”
Completion of work on the electronic platform
Al-Alaq confirmed that “this will lead to the end of work on the electronic platform in the year 2024,” explaining: “We have reached an advanced level, and with the completion of the other episodes, we will leave this method.”
He stated, “In this case, operations will be faster, easier, and more disciplined, because these internationally accredited correspondent banks have complete systems for conducting audit and monitoring operations before implementing this operation.”
Processing rejected transfers gradually
Al-Alaq pointed out that “this will gradually reduce the percentage of rejected transfers,” pointing out that “rejection of transfers has reasons, but the banks and transferring persons will learn the conditions and points that must be taken into account when submitting a transfer request, as there are formal issues, for example, coding and numbering, and there are documents.” What is required and reviewed by the final beneficiary is that there be well-known companies, reasonable prices, etc., and over time the importer or applicant gets used to adapting or providing the requirements for the transfer.”
The fact that the American side reduced the amount of dollars
He stated, “The Federal Reserve and the US Treasury respond to all requests related to the process of providing and enhancing the dollar Iraq needs by following sound rules and standards for the movement of money,” explaining that “this serves the interest of both countries and rids the financial system of any suspicious operations such as money laundering and terrorist financing operations, so the money is What is available abroad is Iraqi money with no restrictions, but there are requirements and standards, whether in the dollar currency or even if it is in European currencies or other currencies, and these have become among the required rules in all circumstances.”
He continued, “Some people believe that if this money were in another country, it would be without restrictions, but these have become international standards followed, even if it was in euros, yuan, or pounds sterling, and there will be the same business rules.”
Expanding the diversification of foreign transactions for all Iraqi banks
He stated, “Our goal is that all banks must have correspondent banks, and we emphasized this issue years ago, as a bank that does not have correspondent banks cannot carry out its real work and is cut off from the world,” explaining that “some banks are late in this regard.” There were easy methods available, so some did not bother to work seriously on this issue, but now all banks have realized that there is a necessity, so they began to intervene successively.”
He continued: “All that provides the bank is the correspondent bank’s belief that it has the system required to control the movement of funds, provide conditions, and follow international standards, and the presence of a monitoring system on the issue of money laundering and terrorist financing will enter this field,” noting that “some banks have begun seeking the assistance of specialized international companies.” To organize these aspects until they become qualified.”
Importing various currencies comes into effect.
He pointed out that “import operations in various currencies have entered into force. For example, with the Chinese side and the euro, they were initiated some time ago, and the UAE dirham will begin next week.”
We aim to reduce the demand for the dollar
He stated, “These measures aim to reduce the pressure on the demand for the cash dollar, as we want all importers to carry out import operations through fundamental external transfer, but some trade in Iraq does not follow this path, but rather goes to put pressure on the dollar cash present in the market.” Therefore, the imbalance occurs in the price, that is, it results from the presence of groups that put pressure on cash while there are correct and fundamental procedures for transfer.” He announced work with the government to eliminate the episodes that put pressure on the cash exchange rate, and we found a group of categories, for example, some deal in dollars. Cash inside Iraq. The government issued a decision that it is not permissible to deal in the dollar locally. As for the second class, they are the merchants who import some materials and do not enter the platform or transfer in the proper manner. We began by analyzing these categories, such as the cigarette trade, which takes the dollar from the market by 100 percent, as we began. We analyze the materials that enter Iraq, such as some mobile phones and other materials. A decision was issued that these materials must have proof that they entered Iraq based on a formal external transfer. If these goods do not carry an official formal transfer, this means that they are goods that entered illegally.” .
Follow the market
He stated, “There will be follow-up operations in the market, and even in the warehouses, to ensure that these materials enter based on an official transfer so that we keep them away from pressure on the cash dollar market. We will expand this to other categories, and any category that we find is carrying out non-fundamental transfers or by paying… “Money, we will besiege it.”
Iraqi remittances in dollars
He pointed out that “the general principle is what was approved by the Council of Ministers that trading or payment inside Iraq is in dinars, but there are cases that are being studied at the present time, and there was a meeting in the Ministry of Planning regarding contracts in their various forms and how to pay possibilities, whether in dinars or dollars.” A set of proposals were put forward and we are now studying them,” noting that “some types of contracts or obligations with foreign companies previously will continue to be dealt with in dollars, and we are studying other cases to develop the best or most appropriate method for them.”
He pointed out that “in the past, inward transfers did not matter to the beneficiary if they were given in dinars, but now, because of the price difference, it is a temporary solution and we are working to solve the problem radically.”
The mechanism for private banks importing dollars
Al-Alaq announced the start of importing dollars into the country from the accounts of Iraqi banks abroad, explaining that “the supply of dollars from abroad comes from what is in the accounts of Iraqi banks abroad. For example, we have an account in a bank, so we can withdraw it in cash or a check, and it is transferred into cash, and it has interest on it.” The money should come internally instead of externally.”
He explained that the instructions of the Central Bank will not allow the bank to keep a large amount of foreign currency abroad, as there are certain percentages, in addition to preventing misuse of this currency coming into the country, and we have set rules for its use.
He warned that “the Central Bank is studying the request of the bank that supplies the dollar and its needs before giving approval and verifying the source of the amount and even the transporting company, in addition to verifying the uses of this amount.”
He pointed out that “because of the price difference, there was pressure on banks to withdraw their balances or transfers received from the dollar, which led to some banks becoming scarce in the currency,” explaining that “foreign currency can be available in more than one way, not only through the central bank.” We seek to deepen this practice.”
He stated: “As long as our Iraqi banks have balances abroad in foreign currencies, it is better for us to enter them, and this supports the reserves in the central bank, that is, instead of the bank using its foreign currency reserves, the currency will be available from the banks’ accounts, and this is an important point.”
A study to restructure banks in Iraq.
Al-Alaq confirmed that “there is a broad reform plan for private banks with mergers and correction operations in some of their situations, and there is a broad plan for government banks, some of whose details will be announced, and we are working with Prime Minister Muhammad Shiaa al-Sudani in this regard,” pointing out that “government banks It represents the greatest weight in the banking sector, and we must put it in the best possible way.”