Al-Alaq: The US Federal Reserve is asking us about the truth about “Indomie”... Do you like it ?that much (not sure what Indomie is)
link I think it is ramen noodles a different article used this for the picture
The Governor of the Central Bank, Ali Al-Alaq, said, on Wednesday, that the international committees are asking the Iraqi authorities about the fact that .“Indomie” was imported in large quantities
This came during a meeting with editor-in-chiefs and representatives of media : organizations, which was attended by the 964 Network correspondent The world is surprised by the love of the new generation of Iraqis for indomie, because of its large number of imports (…) International committees always ask .me whether these large quantities are real
This came during a meeting with editor-in-chiefs and representatives of media : organizations, which was attended by the 964 Network correspondent The world is surprised by the love of the new generation of Iraqis for indomie, because of its large number of imports (…) International committees always ask .me whether these large quantities are real The US Federal Reserve is investigating these large amounts, because it .considered them strange breaks
Iraq is discussing its accession to the World Trade Organization
Today, Wednesday, Iraq discussed its accession file to the World Trade Organization.
A statement by the Ministry of Commerce, received by Earth News, stated that “Minister Atheer Al-Ghurairy met, in his office today, Wednesday, with experts from the United Nations Trade Center, the WTO organization, representatives of the World Food Program and the European Union, to discuss a formula for joint action to support the process of Iraq’s accession to the World Trade Organization, in the presence of the economic agent, Ghassan Farhan. Hamid and Director General of the Department of Economic Relations.
Al-Ghurairy stressed, “The government’s keenness, within its program, to communicate with countries of the world and discreet international organizations to benefit from its expertise in developing the Iraqi economy, which, after 2003, turned to a market economy through support and attribution with its expertise to take practical steps in this aspect.”
He continued, "Iraq needs to diversify its economy in a flexible manner, such as the agricultural, industrial and investment sectors, and for Iraq's accession to the World Trade Organization to be useful as one of the tools for building a market economy within the standards of the global market and a tool to achieve reforms and decisions to implement these measures."
The minister indicated, "His ministry is responsible for domestic and foreign economic policy and is continuing to work with steps and programs to implement this within its ministerial curriculum and at the specified times."
The statement pointed out that “Trade Center experts reviewed their work in assisting countries with economic policies, with a focus on business and the accession of countries to the WTO organization, noting that they” have been working in Iraq for three years, with the aim of strengthening trade policy in Iraq and developing the institutional capabilities of the relevant ministries. The Ministry of Commerce is fruitful and advanced in this aspect, in addition to achieving sustainable development goals, enhancing the capabilities of the private sector and small, medium and micro projects directed to local markets, supporting youth projects and increasing their skills. This is a great challenge to be the first to adopt reform in legislation, and we are ready to provide technical support and advice to expedite the completion of many accession files.”
The statement concluded, "Views were exchanged on the possibilities of support that the center will provide to Iraq, with a diagnosis of challenges and work to support Iraq's accession to the World Trade Organization by providing technical and legal advice and supporting trade policies to align with international standards."
Iraq is trying to join the World Trade Organization
Iraq discussed its accession to the World Trade Organization.
A statement by the Ministry of Commerce stated, "Minister Atheer Al-Ghurairy met, in his office, with experts from the United Nations Trade Center, the WTO organization, and representatives of the World Food Program and the European Union, to discuss a formula for joint action to support the process of Iraq's accession to the World Trade Organization, in the presence of the economic agent, Ghassan Farhan Hamid, and the director general of the department." economic relations".
Al-Ghurairy stressed, "The government's keenness, within its program, to communicate with countries of the world and discreet international organizations to benefit from its expertise in developing the Iraqi economy, which, after 2003, turned to a market economy through support and attribution with its expertise to take practical steps in this aspect."
He continued, "Iraq needs to diversify its economy in a flexible manner, such as the agricultural, industrial and investment sectors, and that Iraq's accession to the World Trade Organization be useful as one of the tools for building a market economy within the standards of the global market and a tool for achieving reforms and decisions to achieve these measures."
The statement pointed out that "Trade Center experts reviewed their work in assisting countries with economic policies with a focus on business and the accession of countries to the WTO organization, noting that they" have been working in Iraq for three years, with the aim of strengthening trade policy in Iraq and developing the institutional capabilities of the relevant ministries. The Ministry of Commerce is fruitful and advanced in this aspect, in addition to achieving the goals of sustainable development, strengthening the capabilities of the private sector and small, medium and micro projects directed to local markets, supporting youth projects and increasing their skills. This is a great challenge to be the first to adopt reform in legislation, and we are ready to provide technical support and advice to expedite the completion of many accession files."
The statement concluded, "Views were exchanged on the possibilities of support that the center will provide to Iraq, with a diagnosis of challenges and work to support Iraq's accession to the World Trade Organization by providing technical and legal advice and supporting trade policies to align with international standards."
A statement from the Pentagon regarding 'the presence of US military movements' in Iraq
A spokesman for the US Department of Defense (the Pentagon) denied, on Tuesday, what is being circulated in the local media and social media in Iraq about "US military movements there."
"There has been no such movement in the past few days, whether towards or inside Iraq," the official confirmed.
The official indicated that the video clips circulating as being of American convoys "have nothing to do with the American forces."
Local media and social media accounts in Iraq circulated news and video clips referring to what they described as "American military movements" and "American convoys" in the country, but the Pentagon confirmed that they were incorrect.
Baghdad hosts the Iraq International Investment Forum
Next October, Baghdad will host the Iraq International Investment Forum, which aims to select the best investment opportunities to implement development projects in the capital.
The governor, Muhammad Jaber Al-Atta, told Al-Sabah: The Baghdad Investment Commission, with the aim of studying the optimal investment opportunities before it, and choosing the best of them to implement the development projects needed by the capital, will hold, during the month of October, the Iraq International Investment Forum conference.
He explained that the conference seeks to draw the capital's investment map in coordination with all sectoral agencies and investment commissions in all governorates, pointing to Baghdad's need for real opportunities that must be studied extensively and presented to sober companies exclusively, provided that they are of great value and good return in raising the level of the capital from In terms of economic and investment activities.
Atta considered the aforementioned forum a good opportunity to select distinguished companies to establish important strategic projects for various sectors, especially housing, to contribute to covering the capital's need for housing, which is estimated at one million housing units, provided that it is implemented in the periphery areas to be attractive areas, in addition to other projects that raise the level of these areas.
like people did with the ppp loans hahaha
Adviser to the Prime Minister: The unemployed bought cars and married with work loans, and a proposal to end begging
link sounds like financial aid being abused
The advisor to the Prime Minister for Social Protection Affairs, Sanaa Al-Mousawi, revealed that only 2 percent of the small projects that were granted to applicants were implemented, while she reported that there is a proposal to include beggars in the social protection network to solve this problem.
Al-Moussawi said, in a press statement, that "the government should provide soft loans for unemployed youth and engage them in training and rehabilitation courses in order to open small projects that help them on the one hand, and also contribute to the development of the national economy," pointing out the need for "the Ministry of Labor to start following up on these projects and following up The amounts are according to a feasibility study prepared for it, in addition to actually supervising them after only 2 percent of the projects funded by the state for the applicants were implemented.
She added that "despite the lack of amounts granted to small projects, which were around 8 million dinars, some of them bought cars or got married," noting that "the amounts of small projects for the unemployed have increased at the present time to range between 20-50 million dinars, and therefore the Ministry of Labor It is called upon to tighten the follow-up of these projects through committees in all governorates, as it is a good opportunity to solve the unemployment and youth employment crisis, especially since it is in partnership between more than one person.
And the spokeswoman continued, "I suggested to the prime minister the formation of a committee of community police, national security, and the Ministry of Labor to count beggars throughout the country, provided that the Ministry of Labor includes those who deserve it in the protection network to solve the problem of increasing begging, with those included signing a pledge to leave this profession," explaining that " Whoever considers begging as a profession must be held accountable according to the laws, in addition to limiting migration from some provinces to the capital.”
And the advisor to the Prime Minister confirmed that "the government has put in its budget huge sums of money for the Ministry of Labor as loans and to solve the problem of unemployment and fix contracts, but the salaries of the protection network are few and need to count the beneficiaries to increase the salaries of the beneficiaries," expressing her belief that "the Ministry of Labor may not be able to solve this problem In the event that everyone is included in social protection salaries, then it needs to enumerate the most needy families of widows, divorcees, the disabled and the elderly to provide better salaries and plots of residential land.
The Iraqi Dinar, and the Conundrum over the Dollar and Iran
link what an image to use ... the old saddam dinars
A report in a major US publication that the US Treasury Department and the Federal Reserve Bank of New York banned 14 Iraqi banks from conducting cross-border dollar transfers rekindled misconceptions, and conspiracy theories that the Central Bank of Iraq (CBI)’s ‘Foreign Currency Selling Window’ is facilitating the siphoning of dollars to Iran, money laundering, and currency smuggling.
In almost a replay of the dollar supply-demand mismatch following the introduction of the CBI’s enhanced beneficiary disclosure requirements for cross-border dollar transfers in November 2022, the parallel market premium (delta henceforth) over the official exchange rate of the US dollar ($, dollar henceforth) versus the Iraqi dinar (IQD, dinar henceforth), widened from the 13 percent at which it had stabilised in recent weeks (Figure 1). Unlike then, dollar sales at the ‘Foreign Currency Selling Window’, better known as the ‘Dollar Auction’ (auction henceforth), did not drop meaningfully, indicating somewhat different dollar supply-demand dynamics at play. This was mainly because the 14 banks that were banned from the auction by the CBI on July 20th, following audits of their cross-border transfers in 2022 (pre-November), have played only a limited role in the auction since then.
The dollar supply-demand mismatch and the increase in the delta, were technically caused by the enhanced beneficiary disclosure requirements and the CBI’s banning from the auction of four banks in November and the 14 banks in July. But, are fundamentally a consequence of the structural imbalances in the economy necessiating the auction’s role as a supplier of dollars for the payment of the private sector’s imports, and the issues that arise from the nature of a largely informal economy whose consumption of goods and services is mostly met by imports. These are addressed in an upcoming research paper entitled ‘A Fistful of Dinars: Demystifying Cross-Border Transfers, Imports, and the Dollar Auction’.
This article, in a similar vein, addresses the payments for Iraq’s private sector’s –people, merchants, and businesses– imports of goods and services from Iran, in which the goods component averaged 16 percent of Iraq’s total imports of goods in 2012–21. The controversy over the supposed ‘siphoning of dollars’ to Iran doesn’t factor-in the payments of these imports, which hinders both informed debate and evidence-based policy making. To boot, the private sector’s imports and payments are often mixed and confused with Iraq’s official imports, and payments for gas and electricity.
Private Sector’s Imports of Goods and Services from Iran
Iraq’s private sector imports of goods from Iran consists of formal imports of goods (solid green bars, Figure 2), followed by informal imports of goods, that are neither reported nor measured, taking place either as smuggled goods or goods bought directly by Iraqi merchants in their travels to Iran (referred to locally as ‘suitcase merchants’ or “تجار الچنطة”) (dashed green bars, Figure 2). While Iraq’s private sector imports of services from Iran are mostly the spending by Iraqi tourists (solid red bars, Figure 2) who accounted for about 32 percent of total tourists to Iran in 2012–21. Other service imports are expenditures of Iraqis studying in Iran’s universities and in its religious seminaries, with reports of 75,000 Iraqi students in Iran’s universities in March 2023, and 60,000 in July 2022.
All travelling Iraqis are allowed to exchange a set amount of dinars into physical dollars at the official exchange rate through the auction, accessed at retail counters of banks and money exchange houses. However, some of these physical dollars find their way back to the domestic market. In late 2018, the CBI prohibited all commercial transactions with Iran in dollars, including the sale of physical dollars to Iraqis travelling to Iran. Subsequenly, Iraqi tourists and suitcase merchants would pay for their expenditures in other currencies such as the euro or dinar, or in physical dollars acquired domestically at the parallel market rate. Other informal imports would have settled their trade in cash too.
Iraqi private sector’s formal imports of goods from the Iranian private sector, cannot take place without making and receiving payments; as the Iran-Iraq Chamber of Commerce pointed out in early July; ‘The private sector has no problem getting its money from Iraq. Our debts from Iraq are mainly related to government institutions, gas and electricity debts’ The CBI’s 2018 prohibition on using dollars in all transactions with Iran, shifted most payments to the euro, dinar and rial and some were conducted as barter trades. Irrespective of the currency used, the dollar likely was the medium of currency conversion, and such payments were unlikely to have been made via the banking system given the isolation that Iranian banks operate under. Therefore, an alternative opaque payment structure would have been used, however, there are two ways in which this structure could be made more transparent. The first is through the statement by Iraq’s prime minister, his economic advisor, and the CBI’s officials, which shed light on some of the workings of wire-transfers in the auction, and which essentially imply: (1) most wire-transfers were based on false invoices between a sender and a recipeint of funds, made possible by complicit local banks, and therefore did not meet the new enhanced beneficiary disclosure requirements; and (2) the high premium of the parallel market exchange over the official exchange rate (around 13 percent at the time) is due to the domestic demand for physical dollars to finance trade with Iran, which cannot meet the enhanced beneficiary disclosure requirements. The second way is the lightly regulated Hawala system, as used by private sector dealings with Iranian counterparts since sanctions increasingly isolated Iran’s banking system.
Under such a hypothetical payment structure, an importer would pay dinars (equivalent to dollars at the parallel market rate) to a Hawaladar (hawala broker) in Iraq, who would in turn instructs a Hawaladar counterparty outside Iraq (not necessarily in Iran) to pay the Iranian exporter in equivalent local currency. This is recorded as a debit and credit accounting entry between the Hawaladars, who would eventually settle this and other similar transactions, by transferring funds via the auction. This would be by creating a fictitious import-export invoice, followed by the Iraq based Hawaladar depositing dinars in a local bank, who in turn deposits them at the CBI. These are then proceesed as a dollar wire-transfer transaction in the auction exchanged at the official exchange rate. Subsequently, the dollars are deposited into the local bank’s account held at a bank outside Iraq, and further transferred to the counterparty Hawaladar in equivalent local currency or in dollars. Essentially, this transfer of dollars though the auction is between the Hawaladars, and not between the Iraqi exporter and Iranian importer who settled their transaction earlier.
Conundrums
The introduction of the new CBI measures in November effectively closed the door for such wire-transfers in the auction, and as a result, for some time physical dollars will likely be sought within Iraq to pay for the private sector’s imports from Iran, keeping the delta high. This is, however, not a viable solution, as the volumes of cash funded imports – due to the logistics of sourcing and transporting cash – would be much smaller than the hawaladar route funded exports, and would also be costly given the high delta. The high delat will simailry deter dollar cash transactions for Iraqi tourists and suitcase merchants, and same likely applies for the informal trade.
On the hand, the lopsided nature of Iraq’s trade balance with Iran – especially in goods with Iraq’s exports to Iran accounting for fraction of its imports from Iran (in 2022: Iraq exported about $0.2 billion to Iran, and imported about $9.9 billion) – means that Iraq cannot use the dinar or the rial to settle its trade with Iran as it staretd doing in yuan in settling is trade with China in late February. Consequenlty, a third currency is the only means of conducting cross-border trade in goods and services between the two.
The condunrum, is that Iraq’s infinitesimal traded goods and services sector, and thus its overwhelming dependence on oil exports implies that oil exports are its major source of a third cuurency. Implying that while these are traded in dollars, that dollars –directly or converted to other currencies– are the means wtih which Iraq settles its imports of goods and services from the outside world.
Final Thoughts
While sanctions continue to isolate Iran’s banking system from the rest of the world, and the high cost of the delat as well the CBI’s intensified measures agaisnt the absues in the parallel cash market, mean that Iraq’s imports of goods and services will either drop materially, or an alternative route is found.
A third route that might emerrge in time, is the adoption of a third currency other than the dollar to settle transactions. But that route is long and fraught with the conundrums of the need for both of Iraq and Iran to firstly have their own balanced trading relationship with the third’s currency’s trading partner; and secondly that these balanced trading relationships should generate enough surpluses to allow the two to use the third currency in their own transactions in goods and services.
Finally, as an unintended or an intended consequence, the enhanced beneficiary disclosure requirements and the CBI’s new requiremnts for banks to significantly increase their capital, has closed the rent-seeking opportunities for those who have access to the preferential exchange rate to the detriment of those who do not.
this is funny
The Central Bank of the Kurdistan Region distances itself from a vehicle full of cash that overturned: We have nothing to do with it
Today, Tuesday, the Central Bank of Kurdistan Region in Sulaymaniyah distanced itself from a wheel that some websites reported that it had been overturned in a traffic accident, and it was found that it contained a load of money.
A statement from the bank, received by Shafaq News agency, stated that the wheel that was carrying sums of money had been overturned. That "a number of pages and media institutions reported news about the overturning of a vehicle to transfer money in the Jemen area of Kirkuk Governorate, and claimed that the vehicle was carrying money coming from Baghdad to transfer it to the Central Regional Bank in Sulaymaniyah."
The statement indicated that it announces to the public opinion and all the media that any amounts in the name of salaries or wheat dues of the region's farmers were not sent directly from Baghdad to Sulaymaniyah, indicating that that haste that was mentioned has nothing to do with the central regional bank in Sulaymaniyah.
The governor of the Central Bank reveals a reason for the alienation of international banks from Iraq
The governor of the Central Bank, Ali Al-Alaq, said that international banks turned their face away from Iraq, because of the media confusion, stressing that they should "bear part of the crisis."
Al-Alaq mentioned during his meeting with a number of editor-in-chiefs and representatives of media institutions, (August 16, 2023): “The aim of the meeting is to give a picture of the scene, to stand on some aspects that serve to monitor and correct events, to correct what comes out of his analysis, and to answer the questions that arise.”
He added, "One of the challenges facing the country is the confusion that occurs in portraying what is happening."
He explained, "Some of the matters that come out to the media entail external positions and conditions, and we face them during our meetings with organizations and others, and they cite media clips and others, and we bear a large part of the media confusion, and this matter is weekly that we face. Even some international banks turn their face because of what is happening."
Central Bank: Price inflation in the markets decreased from 7% to 5%
The Governor of the Central Bank, Ali Al-Alaq, confirmed, on Wednesday, the facilitation of tax and customs procedures for merchants, which will be announced soon, indicating that price inflation in the markets decreased from 7% to 5%.
Al-Alaq said, during his meeting with a number of journalists, that "the government's measures and recent instructions contributed to persuading small merchants to adhere to the platform."
He added, "The talk about the entry of 14 foreign banks into Iraq is incorrect," pointing out that "the banks that have correspondent banks have a sound, official, and easy status of foreign transfers."
And the governor of the Central Bank stated, “The percentage of remittances to China reached 30%.”
The Iraqi Central Bank: We are committed to the battle over dollar
smugglers
Keywords: US sanctions on some countries imposed restrictions on the central bank
The Governor of the Central Bank of Iraq, Ali Al-Alaq, attributed, on Wednesday, the dollar crisis in the country to US pressure and sanctions on some countries.
Al-Alaq said in a televised interview, followed by Al-Maalouma, that "US sanctions on some countries imposed restrictions on the Central Bank of Iraq and prevented it from selling dollars indirectly."
He added, "The Central Bank continues to set restrictions to prevent manipulation of the dollar price in the parallel market, and seeks to simplify the procedures for exchanging hard currency."
Al-Alaq continued, "The Central Bank seeks to simplify procedures for traders to buy hard currencies," noting that "30% of foreign currency goes in favor of imports from China."
The governor of the Central Bank reveals a reason for the alienation of international banks from Iraq
The governor of the Central Bank, Ali Al-Alaq, said that international banks turned their face away from Iraq, because of the media confusion, stressing that they should "bear part of the crisis."
Al-Alaq mentioned during his meeting with a number of editor-in-chiefs and representatives of media institutions, (August 16, 2023): “The aim of the meeting is to give a picture of the scene, to stand on some aspects that serve to monitor and correct events, to correct what comes out of his analysis, and to answer the questions that arise.”
He added, "One of the challenges facing the country is the confusion that occurs in portraying what is happening."
He explained, "Some of the matters that come out to the media entail external positions and conditions, and we face them during our meetings with organizations and others, and they cite media clips and others, and we bear a large part of the media confusion, and this matter is weekly that we face. Even some international banks turn their face because of what is happening."
Al-Alaq: The US Federal Reserve is asking us about the truth about “Indomie”... Do you like it ?that much (not sure what Indomie is)
link I think it is ramen noodles a different article used this for the picture
The Governor of the Central Bank, Ali Al-Alaq, said, on Wednesday, that the international committees are asking the Iraqi authorities about the fact that .“Indomie” was imported in large quantities
This came during a meeting with editor-in-chiefs and representatives of media : organizations, which was attended by the 964 Network correspondent The world is surprised by the love of the new generation of Iraqis for indomie, because of its large number of imports (…) International committees always ask .me whether these large quantities are real
This came during a meeting with editor-in-chiefs and representatives of media : organizations, which was attended by the 964 Network correspondent The world is surprised by the love of the new generation of Iraqis for indomie, because of its large number of imports (…) International committees always ask .me whether these large quantities are real The US Federal Reserve is investigating these large amounts, because it .considered them strange breaks
Al-Alaq: The international observer was amazed at the intelligence of the Iraqis.. They deceived everything
"Irrational transfers and cards"
link
The Governor of the Central Bank, Ali Al-Alaq, said on Wednesday that the international observer was amazed at the intelligence of the Iraqis, if they did not .leave a procedure to control foreign transfers, unless they circumvented it
Al-Alaq: There is no parallel market in Iraq.. The unofficial dollar comes from Al-Aswad – urgent
Central Bank Governor: Gold is the only one that will guarantee the future of the Iraqi currency reserves
The Governor of the Central Bank, Ali Al-Alaq, said, on Wednesday, that gold is the largest guarantor of the future of the currency in Iraq, while confirming that the .reserves of the yellow metal have now reached 132 tons
The Governor of the Central Bank, Ali Al-Alaq, said on Wednesday that the international observer was amazed at the intelligence of the Iraqis, if they did not .leave a procedure to control foreign transfers, unless they circumvented it
Card smugglers are now smuggling only a small part of it, at airports and .land ports
There is misuse of cards and others, but people do not know that they are .all monitored and the purchases are illogical The international observer is amazed at the intelligence of the
Iraqi people, .because they circumvented all measures taken to control remittances
Governor of the Central Bank of Iraq, Ali Al-Alaq, revealed the details of the US Federal Bank's audit of Iraq's imports.
Al-Alaq said, during his hosting of the journalists, "The international committees are asking the Iraqi authorities about the truth about importing 'Indomie', as the US Federal Bank checked it and said, 'Do you like it that much?'"
He added, "The world is surprised by the love of the new generation of Iraqis for Indomie, due to the large number of Iraq importing it, and international committees ask me if it is real or not. This is among the strange imports that the US Federal Bank investigated."
He pointed out, "Gold is the biggest guarantor of the future of the currency in Iraq," stressing that "the reserves of the yellow metal have now reached 132 tons."
He continued, "There is no parallel market in Iraq, and the unofficial dollar comes from the lions."
The Iraqi Central Bank expects to close some commercial banks
The Governor of the Central Bank of Iraq, Ali Al-Alaq, said that his country has made great strides in applying restrictions on the supply of the US dollar targeting Iran, but he is facing an uphill battle in light of a banking system that is not accustomed to strict control and currency smugglers sticking to their activities.
"It is really a battle because the beneficiaries of this situation and those affected (by the new measures) will try in various ways to continue their illegal activities," he added in an interview with Reuters.
Al-Alaq did not mention Iran by name, and said that he did not have data on the volume of dollars smuggled from Iraq to Iran or any neighboring country, including Turkey and Syria, before the United States tightened the rules in November.
US actions aimed at imposing sanctions on Iran are a sensitive issue in a country that has long been on the front line of the rivalry between Washington and Tehran.
Al-Alaq said Iraq's reserves are more than $100 billion, but he cannot intervene freely in the market to lower the exchange rate due to the restrictions.
Last month, US officials said the US Treasury Department and the Federal Reserve blocked 14 Iraqi banks from conducting dollar transactions as part of a broader campaign to smuggle dollars into Iran through the Iraqi banking system .
Al-Alaq said that the transactions that led to the sanctions took place in 2022, before the launch of a new platform aimed at improving transparency . The Iraqi Central Bank also imposed stricter regulations on dollar transfers, requiring dealers to enter an online platform and provide detailed information about the final future of the transfers.
He added that the central bank was conducting a review of the banking sector and would implement new regulations and rules that he said would likely see some banks closed.
"It will be very normal in the coming period to see a decrease in (the number of private banks)," he said.
He said, "There are always side effects, but at the same time we have a responsibility to protect the country's interests by trying to find the necessary means of monitoring and oversight so that we do not expose the country to any issues on this front."
Expert: Trade with banned countries is behind the rise in the dollar.. Al-Alaq: The exchange rate cannot be reduced
The financial and economic expert, Abd al-Rahman al-Mashhadani, attributed, on Wednesday, the high exchange rate of the dollar in the Iraqi market to trade with countries that have international sanctions, however, the governor of the Central Bank of Iraq stated that the country has made great strides in applying restrictions on the supply of the US dollar However, the country faces an "uphill battle" in light of a banking system that is not used to strict supervision and currency smugglers sticking to their activities.
Al-Mashhadani said in an interview with Shafaq News agency, "The electronic platform made the financial transfer operations known to the sources, so that the person transferring and the bank to which the transfer is being transferred can be identified, after the exchange companies previously controlled the transfer operations out of control.
He added, "Iraq imports from Iran annually from 8 to 10 billion dollars, which means that this requires providing between 21 to 25 million dollars per day for merchants," noting that "the Pervezkhan border port exports about 3 million dollars per day, and the merchant buys dollars from the parallel market." To finance this trade is not through the electronic platform of the Central Bank.
He pointed out, "The main problem is that Iraq has trade with the country that is banned and subject to sanctions by the United States of America, to which the dollar should not go, and this constitutes almost a quarter of Iraq's trade, and this is also funded from the parallel market."
Al-Mashhadani pointed out that "the state can solve the problem of the parallel market by finding a specific mechanism in agreement with the Americans to finance trade with officially banned countries.
The US Treasury imposed sanctions on 14 Iraqi banks because of Iran's dealings in dollars, noting that the move came after the disclosure of information indicating that the targeted banks were involved in money laundering and fraudulent transactions.
The price of the dollar in the parallel market increased dramatically when the electronic platform was imposed to meet the requests of companies, and to finance their imports of goods and services, which are subject to supervision by the Central Bank and the US Treasury.
For his part, the Governor of the Central Bank of Iraq, Ali Al-Alaq, described, in an interview with Reuters, combating the activity of currency smugglers in the country as a "really a battle," explaining that "the beneficiaries of this situation and those affected by the new measures will try in various ways to continue their illegal activities
Al-Alaq did not mention Iran by name, and indicated that he did not have data on the volume of dollars smuggled from Iraq to Iran or any neighboring country, including Turkey and Syria, before the United States tightened the rules in November.
He also said that Iraq has more than $100 billion in foreign currency reserves but cannot intervene freely in the market to lower the exchange rate because of those restrictions.
Al-Alaq also indicated that this procedure is related to transfers dating back to 2022 before the launch of new platform services aimed at improving transparency, pointing out that the Central Bank is carrying out a review of the banking sector and will implement new rules that he said are likely to cause the closure of some banks.
And he added, "It will be very normal in the coming period to see a decrease" in the number of private banks.
Al-Alaq continued, saying: "There are always side effects, but at the same time we have a responsibility to protect the country's interests by trying to find the necessary means of monitoring so that we do not expose the country to any problems."
Al-Alaq explained that the system, which is one of the features of economies dominated by informal sectors, was also used by thousands of small companies that are not registered with the state, a phenomenon widespread in Iraq that allows these companies to evade taxes and customs.
Since last January, the Central Bank of Iraq has asked banks to provide detailed information on the senders and recipients of money transfers through an online platform.
Al-Alaq said the companies began trying to use the platform in January, but US authorities approved less than 20 percent of the requests.
However, he indicated that this percentage has now risen to about 85%, which indicates greater familiarity with the new rules.
Al-Alaq stressed that the stricter rules, in addition to the government's plans to promote digital payment, are forcing a greater transformation in the Iraqi economy in a country where cash and liquid money are still prevalent and most adults do not have bank accounts.
He continued, "It is not just an electronic platform, it will lead to a complete reorganization of trade and the movement of money, and the control of many avenues for suspicious activity."
more Ali Alaq Aug 17th 23
A government bank adds new branches to sell dollars to travelers
Rasheed Bank announced today, Wednesday, the addition of new branches to sell dollars to travelers, while specifying their working hours.
The statement indicated that "the branches are (Al-Salihiya / Yarmouk / Al-Jawadin / Abu Ghraib / Al-Rabea neighborhood / Rabat / Al-Etimad Al-Tijari / Modern Exhibitions / Al-Shorja), in addition to the continuation of the previous branches to work during official working days only."
Al-Maliki and Romansky at one table.. discussing several files
The head of the State of Law coalition, Nuri al-Maliki, discussed today, Wednesday, during his reception with the US ambassador to Iraq, the future of bilateral relations between the two countries.
The head of the State of Law coalition pointed to "the importance of continuing cooperation between the two friendly countries in various fields," stressing that "the political and security stability the country is witnessing will contribute to the resumption of the construction process and the entry of major foreign companies, calling on American companies to work inIraqEspecially in the field of energy.
And on the local elections, Al-Maliki explained that "IraqHe is preparing to run in the local elections at the end of this year, and the Iraqis are ready to elect someone to represent them in local governments.”
In her turn, the US ambassador renewed her country’s support for the stabilityIraq", stressing "the continuation of providing the necessary assistance to the Iraqis within the strategic framework agreement between the two countries."
Sudanese discuss with al-Maliki, the situation of the government
The Prime Minister, Muhammad Shia'a al-Sudani, discussed with the head of the State of Law Coalition, Nuri al-Maliki, the overall economic and political situation.
Adviser to the Prime Minister Hisham Al-Rikabi said, in a tweet on the social networking site (X) (Twitter previously), that Al-Maliki received Al-Sudani, "and during the meeting they discussed the overall political and economic situation and issues at the national level."
Al-Rikabi added that the two sides also "discussed ways to support government efforts and levels of progress in performance."
To cover foreign imports.. The Iraqi Central Bank begins to open channels of financial cooperation with India
Today, Wednesday, the Central Bank of Iraq announced the start of opening channels of financial cooperation with India.
A statement of the bank, received by Earth News, stated that “the governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, received the Ambassador of the Republic of India in Iraq, Prashant Bisai, to discuss strengthening economic and banking relations between Baghdad and Delhi, and the desire of the two parties to open bank accounts in accredited Indian banks.”
He added, "This comes to facilitate external transfers to cover Iraq's imports, which amount to about (4) billion dollars, which facilitates and speeds up transfers for Iraqi importing merchants, as well as discussing India's experience in electronic payment and expanding financial inclusion to advanced levels."
In turn, the ambassador expressed the readiness of the concerned institutions in this field to provide support and training to the cadres of the Central Bank of Iraq.
For his part, the Governor of the Central Bank of Iraq expressed his congratulations and blessings on the occasion of the (77th) Independence Day of the Republic of India, praising its experience in its distinguished development journey in all sectors and its attainment of an advanced economic position.
The Norwegian company "DNO" resumes oil production in the Kurdistan region
Today, Thursday (August 17, 2023), the Norwegian oil and gas company DNO announced the resumption of production from the main Tawki field in the Kurdistan region, after a four-month closure due to the closure of the pipeline export route between Iraq and Turkey.
Production resumed last month to conduct well safety tests and sync reservoir models, but continued in response to strong demand for Tawke oil.
The field's current average production is 40,000 barrels of oil per day.
Half of Tawke's production is handed over to the KRG and the remaining balance is sold by DNO on behalf of contractors to local trading companies and oil transported by land tankers.
On (March 29, 2023), the Norwegian company, DNO, said that it had begun to stop oil production from its fields in the Kurdistan region after Baghdad issued an order to stop exports via a pipeline to a Turkish port.
The company operating in the Kormor field: We will meet Kurdistan's gas needs in 2025
A British press report revealed today, Thursday, the continuation of work to expand the Kormor gas field in the Kurdistan Region according to the plan drawn for it, leading to achieving self-sufficiency in gas after two years.
The Kormor gas field is operated by Pearl Petroleum, a joint venture between UAE-based Dana Gas and Crescent Petroleum, Austria's OMV, Germany's RWEST, and the Hungarian Mol Group.
The British MEED magazine, quoting sources in the Dana Gas Company, said that the project to expand the production of the Kor More gas field in Iraqi Kurdistan is proceeding according to the schedule set earlier this year, noting that with the completion of the project, it will meet the need for gas in the entire region in 2025.
The expansion project, known as KM 250, is expected to boost the production of the Kour Mor field by 250 million cubic feet per day (cf/d), bringing total production to 700 million cubic feet/day.
The engineering, procurement, and construction (EPC) contract for the project was originally awarded to US-based Exterran, which was acquired by Enerflex on October 11, 2022. Enerflex is a Canadian engineering firm specializing in energy, oil and gas.
The expansion project secured a $250 million loan from the US International Development Finance Corporation in 2021.
Dana Gas has plans for two more projects to start immediately after the completion of the KM 250 project. These projects are designed to increase production from 700 million cubic feet per day to more than 1 billion cubic feet per day.
The company has previously said that it expects that these projects will be able to meet the gas demand for the entire Kurdistan Region of Iraq, starting in 2025.
I think he's going to New York."
What prevents the Sudanese from visiting Washington.. The American ambassador answers
The US Ambassador to Iraq, Elena Romanowski, denied the existence of any American objection to the visit of Iraqi Prime Minister Muhammad Shia al-Sudani to Washington.
The US Ambassador to Iraq, Elena Romanowski, denied the existence of any American objection to the visit of Iraqi Prime Minister Muhammad Shia al-Sudani to Washington.
The US Ambassador to Baghdad, Romanowski, in an interview
The current prime minister is going to New York to participate in the United Nations General Assembly meeting, they told me.
You can check with the prime minister's office about that.
In the US, there is no decision to prevent the Sudanese prime minister from visiting Washington.
It is important that we agree on a schedule that fits the dates of the leaders, and we discuss when the visit is suitable for both parties.
In another context, the US ambassador responded briefly to the Iranian ambassador in Baghdad accusing the United States of using electricity paper to fuel the street.
In his interview with the ambassador, journalist Saif Ali read a statement by the Iranian ambassador saying that Washington is using the electricity card to fuel the street, and Romanowski responded by saying, "This is what the Iranians are doing."
The US ambassador commented on the news of a US military build-up to cut the border between Iraq and Syria, stressing that “these issues were discussed between the US and Iraqi Ministries of Defense,” which had been previously denied by the Prime Minister's advisor, Mohamed Shia'a Al-Sudani.
A member of the Parliamentary Security Committee, Waad al-Quddo, had said earlier that the meeting between the US and Iraqi defense ministers in Washington witnessed a discussion of the movement of the US military build-up to carry out the “mission of cutting the borders between Iraq and Syria,” but the Sudanese advisor denied this.
Ambassador Elena Romanowski's statements were identical to those of Al-Quddo, as she said in an interview with journalist Saif Ali, that "military activity is part of the natural rotation of American forces to and from Iraq, and these issues were covered when the meeting was discussed."
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