Central Bank: New decisions will be issued next week to reduce the price of the dollar in Iraq
Today, Thursday (August 3, 2023), the Central Bank of Iraq revealed new decisions that will be issued next week to reduce the price of the dollar in Iraq.. to be continued
On Thursday, the Central Bank identified three categories of exchange companies for selling the dollar to travelers, and while it revealed a proposal regarding the entry of imported goods through the border crossings, it indicated that there are new decisions that will be issued next week that may contribute to lowering the price of the dollar.
Deputy Governor Ammar Hamad Khalaf said in a statement carried by the official agency, followed by “NAS” (3 August 2023), that “the central bank provides exchange companies with weekly quotas of dollars for the purpose of selling them to travelers at the official price and in limited quantities of 3 thousand dollars per traveler,” noting, These exchange companies are licensed by the Central Bank in accordance with controls and are in compliance with the Anti-Money Laundering Law.
He added, "One of the basic tasks of all exchange companies A, B, and mediation C is to provide dollars to travelers at the official rate and in the quantity specified by the Central Bank," noting, "There is an electronic platform that the Central Bank has been working on developing since the beginning of this year, and all dollar sales to citizens are done." Through this platform that is closely monitored by the Central Bank.
And he stated, “The Central Bank finances the market in dollars through this platform for categories of merchants and small traders and through exchange companies for travelers only,” pointing out, “Banks finance bonds of the private sector and the government sector through remittances and bond credits, and some of them sell cash dollars as the banks of Mesopotamia.” And Al-Rasheed through its outlets at airports, while exchange companies are specialized only in the process of selling dollars to travelers.
And he stated, “The Central Bank submitted a proposal to the ports and customs, which is that any goods entering Iraq must ensure that the merchant financed these imports through the Central Bank of Iraq,” pointing out, “The printing of the Iraqi currency will not be random.”
Regarding the increase in the monetary mass, Khalaf stressed that "the process of increasing the monetary mass is directly linked to the process of increasing the foreign reserves owned by the Central Bank, so any financing for the public treasury is through the exchange of dollars obtained from oil sales with dinars, and therefore any increase in the dinar mass comes mainly from foreign currency." ".
He stated, "There is no fear of any increase in the monetary mass."
On the exchange rate, Khalaf said, "The Central Bank issued several decisions related to the banking sector," explaining that "other decisions will be issued next week, which may contribute significantly to reducing the exchange rate of the dollar."
Parliamentary Finance: For these reasons, the implementation of the budget by the Ministry of Finance has been delayed
Today, Wednesday, the Finance Committee spoke about the reasons for the delay in the instructions for implementing the budget by the Ministry of Finance.
Member of the committee, Representative Mustafa Al-Karawi, said, in a statement to “Earth News” agency, that “the Ministry of Finance visited and met with Minister Taif Sami to search and inquire about the reasons for the delay in issuing the instructions for implementing the budget, and indicated that the amendment of the article on publishing the budget in Al-Waqi’ newspaper is the one that was delayed as a reason.” After it was sent to the State Council for discussion.
And the deputy believed that “there are many problems with the issue of transfers that occurred by the House of Representatives, as well as the problem of the items that were appealed against, and there are items, according to our information, that they will be challenged in the future. There is also an overlap in some items that caused some confusion, and the instructions will be issued tomorrow or Sunday.” Next, according to what the minister indicated, where instructions will be issued to proceed with implementation.
After an "important" meeting.. Al-Sudani issues a set of directives related to the work of exchange companies (document)
A government source revealed, on Thursday, a number of directives taken by the Prime Minister, Muhammad Shia'a Al-Sudani, regarding the work of exchange companies, after an "important" meeting.
he source told Shafaq News agency that an important meeting was held yesterday at the headquarters of the government palace between the delegation of the Association of Exchange Companies headed by the Chairman of the Board of Directors of the Association, and the government team in charge of the economic file by the Prime Minister, explaining that the latest developments on the scene and the most prominent obstacles and problems were reviewed. that impede the work of exchange companies and ways to overcome them and find appropriate solutions and proposals for their work in a safe and sound environment.
The meeting stressed, according to the source, the need to continue joint work to achieve stability in the exchange rate of the dollar and support the national currency in a way that eases the burden on citizens and supports the stability of the national economy, referring to obtaining the approval of the Prime Minister on a number of decisions.
And the source indicated that the most important of these decisions is directing the Prime Minister to prevent the interference of all agencies in the work of exchange companies, and approving the implementation of Resolution No. 56 of 2004 that includes granting exclusive authority and powers to the Central Bank to monitor and inspect its financial institutions, and according to the Prime Minister’s directive to prevent interference in the work of exchange companies. Central Bank with other government agencies.
text of document:
Republic of Iraq Office of the Prime Minister
Issue: 3079/ 2396280 Date: 02/08/2023
To Mr. Governor of the Central Bank of Iraq
M / guide
May the peace, blessings, and mercy of God be upon you
In implementation of the directives of the Prime Minister - Commander-in-Chief of the Armed Forces, it was decided to adhere to work in accordance with the Central Bank of Iraq Law No. (56) of 2004, which stated that the Central Bank of Iraq is the only authority that has the authority to take all measures to regulate and monitor the work of banks and non-banking financial institutions to ensure their compliance With the exception of cases permitted by law and based on a judicial decision to coordinate
Advance with the bank above
Kindly inform us..with appreciation
Ihsan Yassin Al-Awadi, Director of the Office of the Prime Minister / Agency 2/8/2023
photocopy of it to /
General Secretariat of the Council of Ministers - Office of the Secretary General ]
. For the same purpose above..with appreciation..
Ministry of Finance B Minister - Mr. Personal Secretary to the Commander-in-Chief of the Armed Forces / For your kind design on the authorities
ah - mkt
related to appreciation.
- Office of the Prime Minister - Office of the Economic Adviser / your memorandum of number (2300372) 2/8/2023 for your kind information .. with appreciation
- Directorate of Secretarial Directorate of the Office of the Prime Minister / with a copy of the priorities for your kindly information .. with appreciation.
Follow-up department.
archives.
Document Evaluation (ABC)
(1-1)
2022/08/02
Al-Fateh: The oil and gas law needs political consensus before it is passed
A member of the Al-Fateh Alliance, Ali Al-Zubaidi, confirmed, on Thursday, that the oil and gas law needs a political consensus between the various parties in order to ripen it and proceed with its legislation in parliament, pointing out that the law needs some time before a vote on it.
Al-Zubaidi told Al-Maalouma, "The government seeks that the oil and gas law be in the interest of all of Iraq and everyone benefits from it without benefiting one province over another, including the provinces of the Kurdistan region."
He added, "There are attempts by the region to impose control on some of the lands of Kirkuk," pointing out that "the authorities of the region took control of some oil wells in Kirkuk during the period of the terrorist ISIS and continued to obtain its wealth, despite its ownership of the federal government."
And he indicated that "the oil and gas law needs some time in order to mature it politically, and then proceed to put it to parliament and pass it in one of the council's sessions."
A new reform paper on the parliament table.. What is it?
Today, Thursday (August 3, 2023), the media department in the House of Representatives announced the preparation of a comprehensive economic reform paper that contributes to moving the wheel of the Iraqi economy.
A statement of the department, which was received by "Baghdad Today", stated that "the Committee on Economy, Industry and Trade, headed by Representative Ahmed Salim Al-Kinani, and in the presence of its members, held a meeting on Wednesday to discuss the preparation of the items of the economic reform paper."
He added, "The committee has prepared a comprehensive economic reform paper for the Iraqi economy that will contribute effectively to moving the wheel of the Iraqi economy, which suffers from structural problems as a result of the conditions that Iraq went through . "
He continued, "The reform paper will be discussed in the House of Representatives, and after its approval, the government will be obligated to implement its provisions," noting that "the House of Representatives and the Economy Committee are supportive of the steps taken by the government to revitalize the economy."
The statement indicated that "the committee stressed the need for cooperation between the legislative and executive authorities to improve the reality of the Iraqi economy .
The region's finances: Baghdad did not abide by the agreement to implement the budget
Statement from the Ministry of Finance and Economy
The Central Bank of Iraq has transferred 598 billion dinars to the Ministry of Finance in the Kurdistan region for the distribution of salaries (the sixth month), and the schedule of all ministries will be announced and to fill the deficit from local revenues.
It is worth noting that the Kurdistan Region needs more than 940 billion dinars per month for salaries alone, in addition to consumption expenditures, institutions, the investment budget, and electricity generation costs.
We would like to make it clear to everyone that the Iraqi federal government and the Iraqi Ministry of Finance did not abide by the agreement concluded between the Kurdistan Region and Baghdad and the implementation of the Iraqi budget law.
And according to the budget law, it reports
The monthly dues of the Kurdistan region are more than one trillion and 384 billion dinars.
According to the actual spending, which currently depends on the average monthly expenditure of the Iraqi Ministry of Finance, one trillion and 174 billion dinars should have been sent to the Kurdistan Region, as the amount sent is contrary to the budget law and all agreements concluded between the two sides.
Kurdistan Finance proceeds to pay salaries and says: Baghdad did not abide by the budget law and the agreements concluded
The Ministry of Finance and Economy of the Kurdistan Regional Government confirmed, on Thursday, that it had received about 600 billion dinars from the federal government, while announcing the start of distributing the salaries of the Ministry of Health.
The ministry said in a statement received by Shafaq News agency, "Today, Thursday, at exactly 9:30 am, the Central Bank of Iraq delivered the Erbil branch an amount of 598 billion dinars to the Ministry of Finance, and it was transferred to the banks. Today, the salaries of the Ministry of Health will begin to be distributed, and the salary schedule of all ministries will be announced." and plug the deficit.”
The statement added, "The regional government needs more than 940 billion dinars per month to pay salaries only, other than operating expenses, the production budget, and electricity production expenses."
The statement continued, "The federal government and the Iraqi Ministry of Finance did not adhere in any way to the agreement concluded between the regional government and Baghdad, and did not implement the federal budget law," explaining that "the dues of the Kurdistan Region according to the budget law amount to a monthly trillion and 384 billion dinars only for salaries and retirees and 906 billion to the Peshmerga forces.
The statement concluded, "According to the actual spending that the federal government deals with at the present time on the basis of total monthly expenditures, one trillion and 174 billion dinars should have been sent, and the amount that was sent violates the budget law and all agreements concluded between the two sides."
The Central Bank announces the re-operation of exchange companies that have been deprived of dollars since 2014
The Central Bank announced the re-operation of exchange companies that were previously deprived of dealing in dollars due to the ISIS invasion of Iraqi provinces.
And in a statement seen by “Ultra Iraq”, he said, “The Central Bank of Iraq announced the re-operation of a large number of exchange companies previously deprived of dealing in the dollar currency and located in the governorates (Nineveh, Anbar, Kirkuk, Salah al-Din), which led to security conditions and events.” After the terrorist ISIS, in those provinces to stop them from working.
The re-operation of these companies came, according to the Central Bank statement, "after the strenuous efforts that were made in cooperation with the security and auditing authorities."
And the statement believed that "the above decision would enhance the arrival of the dollar currency to these governorates to meet legitimate requests, which in turn helps to stabilize the exchange rate."
Al-Sudani directs to prevent the interference of all devices in the work of exchange companies
A government source revealed, on Thursday, a set of directives taken by Prime Minister Mohamed Shia Al-Sudani regarding the work of exchange companies after a meeting.
The source told Shafaq News Agency, followed by "Al-Iqtisad News": An important meeting was held yesterday at the government palace headquarters between the delegation of the Association of Exchange Companies, headed by the Chairman of the Association's Board of Directors, and the government team in charge of the economic file by the Prime Minister, explaining that the latest developments were reviewed. The most prominent obstacles and problems encountered in the work of exchange companies, ways to overcome them, and finding appropriate solutions and proposals for their work in a safe and sound environment have appeared on the scene.
The meeting stressed, according to the source, the need to continue joint work to achieve stability in the exchange rate of the dollar and support the national currency in a way that eases the burden on citizens and supports the stability of the national economy, referring to obtaining the approval of the Prime Minister on a number of decisions.
And the source indicated that the most important of these decisions is directing the Prime Minister to prevent the interference of all agencies in the work of exchange companies, and approving the implementation of Resolution No. 56 of 2004 that includes granting exclusive authority and powers to the Central Bank to monitor and inspect its financial institutions, and according to the Prime Minister’s directive to prevent interference in the work of exchange companies. Central Bank with other government agencies.
In addition, the Central Bank of Iraq announced the re-operation of the exchange companies, which were suspended due to the security conditions in the hot provinces.
He said, in a statement received by "Al-Iqtisad News", that a large number of exchange companies previously deprived of dealing in the dollar currency, located in the governorates of (Nineveh, Anbar, Kirkuk, Salah al-Din), have been re-operated, and that the security conditions and events after "ISIS" in those governorates led to shutting it down.
And the Central Bank indicated that the re-operation of these companies came after the strenuous efforts that were made in cooperation with the security and auditing authorities, explaining that the decision would enhance the arrival of the dollar currency to these governorates to meet legitimate requests, which in turn helps to stabilize the exchange rate.
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Al-Sudani directs all institutions to abide by the Central Bank of Iraq law
On Thursday, Prime Minister Muhammad Shia al-Sudani directed all concerned institutions to adhere to work in accordance with what was stated in the Central Bank of Iraq Law No. 56 of 2004.
A statement by the Media Office of the Prime Minister, of which "NAS" received a copy, stated (August 3, 2023), that it is "an affirmation of the government's approach to continue reforming the financial and banking sector, and as a continuation of the efforts made by the regulatory agencies and financial institutions concerned with controlling transparency and integrity in this sector." Vital, Prime Minister Muhammad Shia Al-Sudani directed all concerned institutions to adhere to work in accordance with what was stated in the Central Bank of Iraq Law No. 56 of 2004.
He added, "The aforementioned law shows that the Central Bank of Iraq is the only body that has the authority to take all measures to regulate and monitor the work of banks and non-banking financial institutions to ensure their compliance."
He pointed out, "The Association of Exchange Companies took the initiative and pledged to work throughout the week to sell foreign currency to citizens at the approved official rate, according to the regulations and instructions of the Central Bank."
In order to follow up the work of companies and banks, the statement confirmed, "It was decided to form a permanent committee that includes representatives of the Central Bank, the Prime Minister's Office, and the Association of Exchange Companies, to address the obstacles in the work of this sector."
The Central Bank decides to increase the capital of banks
link these numbers may not be correct teh translations sometimes are not correct for numbers
article with the words:
The Central Bank of Iraq asked local and foreign banks to increase their capital, or to "merge or liquidate" in case they are unable.
A document issued by the bank, seen by Shafaq News agency, showed that, "Based on the decision of the bank's board of directors No. 27 of 2023 in its session numbered 1628 held on 7/18 2023, it was decided to increase the banks' capital to no less than 400 billion dinars within a maximum period of January 31. The first is 2024, and in three installments, provided that each installment is not less than 50 billion dinars on December 31, 2023, June 30, 2024, and December 31, 2024.
The document added that the bank may make the increase in one payment within a maximum period of December 31, 2023, noting that “the operating capital of foreign bank branches is increased by no less than 60% of the operating capital during a maximum period of December 31, 2023.”
And the Central Bank stressed in its document that, “in the event of non-compliance with the instructions, it initiates the merger or is subject to acquisition or liquidation.”
In 2010, the Central Bank called on banks to increase their capital to (250) billion dinars, and in the event that the capital is not completed to the required level within the specified period, the license granted to the bank will be cancelled.
The central bank complains about Iraqi banks of their inability to exercise credit and the small size of the banks and asked them several times to merge.
General commercial banks
Know the capital of banks
A good quantum
Based on the decision of the Board of Directors of this Bank No. (127) for the year 223 in its session No. (1938) held on 18/20227, we decide the following
- Increasing the banks’ capital to no less than 400,000,000,000,000 dinars (Al-Raysana is a sophisticated maz, within a maximum period of 12/39/2024, by three installments, provided that each spot is not less than 500,000,000,000 dinars (fifty billion Iraqi dinars on 12/21/2022 and 20/6/2014 and 21/12/2024 and the bank has the right to make the increase in one payment within a maximum period of 31/12/2022
Increasing the operating capital of foreign bank branches by no less than (60%) of the capital
Operational money within a maximum period of 12/21/2022. In the event that your banks do not comply with what is mentioned above, they will take the initiative to merge, subject to acquisition, or (it stops here) but I think it should say to "merge or liquidate"
A new statement of the Central Bank regarding dealing in dollars and the exchange rate
Stop the platforms that advertise the exchange
On Thursday, the Central Bank issued a new statement regarding dealing in dollars and the exchange rate, while calling on the relevant authorities to stop platforms and websites that announce currency exchange rates.
A statement issued by the Central Bank of Iraq regarding dealing in dollars and the exchange rate
Following up on the recent developments in the local markets, especially with regard to trading an unofficial exchange rate in the platforms and daily transactions and its unreal and artificial fluctuations, requires us to clarify the basic facts related to the trading of foreign currency (the US dollar) in the local markets, and the role of the Central Bank of Iraq in providing the currency foreign affairs through its official sources, which included all legally permitted transactions, and prevented other illegal transactions. And the need for all relevant parties to unite and cooperate in order to achieve the main general goals, including the stability of the exchange rate in light of the presence of sufficient foreign reserves to meet the legitimate needs of citizens, merchants and investors in foreign currency.
Hence, we would like to state the following:
The source of the US dollar circulating in the local markets is the Central Bank of Iraq, which offers it through banks, exchange and mediation companies, at the official rate (1320) dinars per dollar. Accordingly, what is called the "parallel market" has no reality, as this description is given when the market has its own sources of foreign currency, through private sector exports, local tourism, remittances from residents abroad, and others.
In order to achieve the goal of controlling the movement of funds and foreign trade, and in implementation of the Anti-Money Laundering and Terrorist Financing Law, and in order to enhance the application of international standards, the new system is based on:
The implementation of all foreign transfers and documentary credits through the electronic platform, in which all operations are pre-checked in all respects, and the final beneficiary is verified, which protects the banking sector, non-bank financial institutions and all parties to those operations from the risks they face locally and internationally. Legitimate transfers without limits or restrictions, and the Central Bank does not set ceilings for banks authorized to conduct the transfer. Rather, this depends on the bank’s ability to attract customers, the validity and accuracy of operations, and the number of its accredited correspondents abroad.
Carrying out personal transfers abroad, such as wages for studies, treatment, purchasing personal needs, residents’ transfers, pensions for residents abroad, and others, through international money transfer companies, such as “Western Union and Money Gram.” Citizens are also allowed to use electronic payment cards to be used to purchase goods and services abroad. All these operations and others are covered by the Central Bank at the official established exchange rate.
Providing cash dollars to travelers at the official rate set, through banks and exchange and mediation companies, and these operations are carried out through an electronic platform to verify the safety of operations, and the correct use of those amounts for traveling citizens. This platform is currently being developed with strict verification procedures and limiting its use to the specified purpose and at the prescribed price.
The aforementioned system, with its three dimensions, limits any practices that would expose Iraq and its banking sector and financial institutions to risks, and by providing these channels and opening them for legitimate purposes, it makes dealing in dollars outside it an illegal practice subject to legal accountability towards the parties involved in its practice, as no party has the right Or a person trading in dollars issued by the Central Bank, which determines a price, channels, limits, and purposes for its use, and its circulation and trading in it outside the licensed authorities is considered a prohibited activity according to the law, as the Banking Law No. (94) of 2004 stipulates in Article (3) that no one has the right To engage in the business of receiving deposits, or other funds payable by the public, without obtaining a license or permit issued by the Central Bank of Iraq.
The application of the system of foreign transfers, documentary credits and cash sale of foreign currency involves achieving economic, regulatory and legal objectives, including the following:
Enhancing anti-money laundering and terrorist financing measures, and preventing the risks of local and international sanctions from all relevant parties.
Bringing Iraq’s imports into channels that ensure the safety and transparency of operations, and providing important databases and information for planning, organizing and control purposes.
Achieving additional revenues for the state by subjecting all imports to procedures for comprehensive registration of their details and the resulting fees.
Gaining the trust of accredited international banks, which expands the network of relations between the local and foreign banking sector, and increases the number of Iraqi bank correspondents.
Closing the outlets for illegal foreign transfers, besieging the proceeds of crime and corruption, and preventing them from finding a way to escape abroad.
Not charging imported goods with the exchange rate difference resulting from paying a higher price when buying them at the unofficial rate on the black market, which leads to higher prices and a negative impact on the purchasing power of citizens.
The groups that buy the dollar from the market and create an opportunity for speculators and beneficiaries to trade an unofficial exchange rate are:
Importers of merchants who do not follow the fundamental methods of external transfers (remittances and documentary credits) via the electronic platform, which is available to them at the official price, through attempts to collect cash dollars that are exclusively for citizens’ travel from the market, or by using electronic payment cards designated to pay citizens’ purchases and expenses abroad. , or for personal transfers for legitimate purposes.
Importers of prohibited or narcotic substances such as drug dealers and others, or of materials that do not pass through the official border crossings, to escape the requirements of the law or customs, such as importers of cigarettes and some importers of precision instruments, so they go to the market to buy dollars that are not allocated to them to pay their bills.
The category that generates revenues from the proceeds of crimes, such as bribes, thefts, kidnapping, extortion, selling contraband, etc., and they transfer them abroad to hide them.
Citizens who pay for their purchases of goods and services inside Iraq in dollars, which prompts them to buy dollars from the market, and since there is no allocation from the central bank’s sales of dollars for this purpose, their purchase is from a share allocated for other purposes, especially travel.
In order to address the aforementioned phenomena, and reduce the phenomenon of the illegal market, and an exchange rate higher than the prescribed one, work is being done with the government and the relevant authorities to take the following measures:
Merchants and importers use the prescribed channel for that, via the electronic platform, to achieve the objectives of this system and prevent the use of cash dollars in the market for other than its purposes, and this requires obligating this category to provide evidence that the amount of their imports has been duly transferred when their goods enter Iraq at the official border crossings.
Stimulating and supporting categories of merchants to enter the electronic platform by simplifying procedures, especially tax ones, defining their ceilings in advance according to categories, and depositing them in the account of the General Tax Authority through its bank accounts.
Tightening control over the official border crossings and closing unofficial ones, coordinating between the federal government and the regional government regarding the organization and unification of entry procedures for goods and the fees imposed on them, and preventing the entry of prohibited and legally prohibited materials.
The competent authorities undertake the strict application of Cabinet Resolution No. (23026) for the year 2023, which includes limiting the sale and purchase of goods and services in Iraqi dinars inside Iraq.
We call for the provision of official, popular, and media national support in implementing the aforementioned, to achieve the aforementioned goals, in a way that preserves the safety and soundness of the movement of money and foreign trade, and staves off risks for the country, its banking sector, and its financial institutions, by adhering to the rules of the Anti-Money Laundering and Terrorist Financing Law, and international standards and practices. related to.
Exchange offices in Baghdad are closed for fear of arrest
The owners of exchange offices in the capital, Baghdad, reported, on Thursday, that they closed the doors of their offices for fear of the arrest campaigns carried out by the competent authorities.
Waad Al-Dulaimi, one of the owners of these offices, told Shafaq News agency, "We had to close the office for fear of arrests and confiscation of money by selling above the official price, with charges of illegal trade being charged."
He added, "The price of the dollar has become unknown in the markets because there is no parallel market, as it is prohibited to trade it in exchange offices except at the official rate," noting that "the exchange shops that opened their doors do not sell or buy dollars for fear of arrest."
Al-Dulaimi believes that "the way the government deals with the dollar problem is wrong, as it confused the markets and disrupted their work," warning that the government's way of dealing with the problem "will increase the price of the dollar instead of decreasing it."
It is noteworthy that the exchange rate of the dollar rose to more than 156,000 thousand dinars, after US sanctions impounded 14 Iraqi banks on charges of smuggling the dollar abroad, before it decreased slightly to 151,000 dinars.
The bank is seeking to increase its sale of dollars to meet the local demand for it in the parallel market by introducing banking companies that were deprived of the currency sale window, and to increase the traveler’s share of the dollar to 3000 dollars instead of 2000.
The Central Bank is working to restore the exchange companies that were suspended due to the security conditions in the hot provinces
link they tweeted this too
The Central Bank of Iraq announces the re-operation of a large number of exchange companies that were previously deprived of dealing in the dollar currency and located in the governorates of (Nineveh, Anbar, Kirkuk, Salah al-Din), which the security conditions and events after (ISIS) in those governorates led to stopping them from working.
The Central Bank states that the re-operation of these companies came after the strenuous efforts made in cooperation with the security and auditing authorities, and that the above decision would enhance the arrival of the dollar currency to these governorates to meet legitimate requests, which in turn helps to stabilize the exchange rate.Central Bank of Iraq
Media Office
3 August 2023Baghdad and Erbil... accelerated steps to resolve the oil dispute
The Iraqi Prime Minister, Muhammad Shia' al-Sudani, believes that the political conditions in his country are currently conducive to reaching an agreement regarding the management of oil wealth between the central government in Baghdad and the Kurdistan Regional Government, especially in light of the agreement between the political forces that is embodied in the coalition government.
Prior to the preparation of a draft law regulating the exploitation of natural resources in Iraq , a high-ranking delegation from the Kurdistan region is conducting talks in Baghdad regarding the oil and gas law, which the federal government intends to resolve its points of contention.
Muhammad Shiaa al-Sudani said that political blocs will participate in the talks, given the need for some provisions of the law to reach political consensus.
Will the two parties succeed in reaching this agreement?
And the advisor to the Iraqi Prime Minister, Dr. Hussein Allawi, says to the “ News Room ” program on “Sky News Arabia”:
- It was mentioned that Al-Sudani wants to invest in the political agreement that took place in the State Administration Coalition, given that this coalition, which led to the formation of the Iraqi government, is characterized by a clear vision.
- He mentioned that the agreement between the political forces is on building the state, and one of the pillars of building the state is the oil and gas law.
- There were two attempts in 2007 and 2011, and two technical drafts on the oil law appeared, but the political conditions were not available. Now, the political climate is available to transform the budget agreement into a political, legal and constitutional framework that supports the path of the tripartite federal budget.
- He said that this matter helps the state to settle in the paths of the Ministry of Oil and the path of joint ownership of oil and gas and other paths of this wealth.
- He stated that there is a political will now to pass the technical draft that the Prime Minister called for to be discussed among the political forces, in the event that it is completed by the Ministry of Oil and the regional government, then it will be given a political and constitutional character.
- He stressed the importance of the constitutional framework in order for Iraq to have clarity in the field of oil policy, as international companies were expecting Iraq to reach a draft law in order to conclude long-term agreements with it.
Parliamentary Finance announces that it will take a set of measures after the rise in the price of the dollar
The Parliamentary Finance Committee announced that it had taken several measures after the rise in the exchange rate of the dollar.
This came according to a statement received by Mawazine News, a copy of which is below:
statement
the date
After the rise in the price of the dollar in the markets and its rebound on the life of the citizen and the economic situation, the Financial Committee took a set of measures, the first of which was hosting the Governor of the Central Bank, communicating with the Prime Minister and the crisis team, and daily communication with the relevant parties.
In this regard, the Finance Committee extends abundant thanks, appreciation and gratitude to the Prime Minister, the National Security Agency and the Crisis Cell for their tremendous efforts in pursuing currency smuggling mafias and arresting major currency smugglers. We also commend the cooperation of the regional government in arresting some smugglers present in the region.
In this regard, we strongly demand to prevent interference from some officials and politicians who try to intervene in favor of smugglers. A detailed statement of all the Finance Committee's procedures in this matter will be issued later.
A specialist comments on the resumption of money exchange work in the liberated areas: Will it reduce the price of the dollar?
Today, Thursday (August 3, 2023), the researcher in economic affairs, Haider Al-Sheikh, commented on the decision to resume money exchange work in the governorates liberated by the Central Bank, while indicating that the decision will contribute to lowering the exchange rate of the dollar.
Al-Sheikh told “Baghdad Today,” that “the central bank’s decision to restore work to exchange companies that were suspended due to security conditions in (Nineveh, Salah al-Din, Anbar, and Kirkuk) is positive and contributes to the natural availability of dollars in the aforementioned governorates.”
And that "the central bank's decision aims primarily to reduce the exchange rate of the dollar and control the price in the parallel market," noting that "the coming days will witness a significant decline in the exchange rate after this important decision."
Earlier in the day, the Central Bank announced the re-operation of a number of exchange companies suspended due to security conditions in a number of governorates.
And the bank’s media stated, in a statement received by “Baghdad Today”, that “the Central Bank of Iraq announces the re-operation of a large number of exchange companies previously deprived of dealing in the dollar currency and located in the governorates (Nineveh, Anbar, Kirkuk, Salah al-Din), which led to security conditions and events.” After (ISIS) in those provinces to stop them from working.
He explained that "the re-operation of these companies came after the strenuous efforts that were made in cooperation with the security and auditing authorities, and that the above decision would enhance the arrival of the dollar currency to these governorates to meet legitimate requests, which in turn helps to stabilize the exchange rate."
Parliament votes on two new laws and sets a date for the ministers of interior and finance to answer the questions of the deputies
Thursday, the House of Representatives voted on two new laws, while setting a date for the Ministers of Interior and Finance to answer the questions of the representatives.
The Speaker of the House of Representatives said during today's parliament session, followed by / Mawazine News /, that "in order to activate the oversight role, Saturday, corresponding to 8-12, has been set as a date for answering oral questions to the Minister of Interior and the Minister of Finance submitted by the deputies."
And the media department of the Council stated in a statement, "The House of Representatives voted on a draft law on the accession of the Republic of Iraq to the 2005 Protocol related to the Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms on the Continental Shelf of 1988."
And she added, "The council also voted on the law of the Republic of Iraq joining a protocol to amend the agreement regarding crimes and some other acts committed on board aircraft."Parliament publishes the names of the deputies present and absent from today's session
The Presidency of the House of Representatives announced the names of the members of the House present at its seventh session today, Thursday 8/3/2023 of the second legislative term of the second legislative year of the fifth electoral cycle.
Post production articles
Day workers try to earn living in northern Iraq in temps higher than 113F
ERBIL, Iraq
Construction and transportation day workers in northern Erbil province in Iraq are trying Thursday to earn a living in temperatures of more than 45C (113F).
Residents do not usually go out because of the extreme heat but day workers line up on roads and try to earn wages for the day.
They get 20 - 50 dinars ($15 - $37) depending on the work while they generally handle construction or transportation.
Shivan Mohammed told Anadolu he has been taking care of his family this way for the last 15 years.
“We are waiting to get a job here lining up from 7 a.m. to 4 p.m. every day,” he said. “The hot weather seriously threatens my health.”
“The number of jobs available for us also decreased as the dinar has lost value against the US dollar,” he said.
Mohammed noted he has six children, who are students, but said: “We are about 200 workers here. Only a few of us get a job every day.”
No precautions for extreme heat
Adil Mohammed told Anadolu that he has been working like this for 20 years between 11 a.m. and 4 p.m. every day.
He cited the reduction in the number of jobs. “This situation has caused more and more people to line up on the streets,” he said.
He lamented that there are not any kind of precautions for extreme heat and said some workers have fainted.
“Our skins have burned and become more sensitive due to waiting under the sun,” he said. “We do not have any other option, and we have to wait here as a job might be available for us at any minute.”
Iraq Cracks Down on Dollar Smuggling Under Pressure From U.S.
Washington aims to stop the flow of dollars to Iran
BAGHDAD—Iraq is trying again to crack down on money laundering and smuggling as the U.S. steps up pressure to stop dollars flowing to Iran and better isolate it from the rest of the world economy.
The dollar has served as almost a second currency in Iraq after the U.S. invaded in 2003, pumping greenbacks into the country to keep it functioning. Two decades later, Iraq still keeps its foreign reserves at the Federal Reserve Bank in New York, depositing the proceeds from its oil exports in its official accounts there.
Hundreds of millions of dollars a day flow through loosely-regulated Iraqi bank and currency-exchange shops, which U.S. officials say are rife with fraudulent transactions and money laundering. They say there is strong evidence that a portion of these dollars have been going across the border to Iran, providing Tehran with badly needed currency and some relief from stringent American sanctions.
Others have been going into the hands of Iraqi officials or Iranian-backed militias operating in the country, or recipients in other Middle Eastern countries.
Now Iraqi authorities are expanding raids on currency traders and increasing air and land border checks following recent moves by Washington to curb the flow of dollars that have put pressure on Iraqi Prime Minister Mohammed al-Sudani and the economy.
“It’s a battle between the state, which insists on completely reforming the financial and banking system, and a group of smugglers and price manipulators who are thriving and working to obstruct reforms,” Sudani said late Tuesday.
The U.S. Treasury and Federal Reserve Bank of New York last month banned 14 Iraqi banks from dollar transactions after uncovering evidence they engaged in money laundering and fraudulent transactions. Four other Iraqi banks were banned from dollar transactions in November, when the Treasury and the Central Bank of Iraq also imposed tighter controls on wire transfers in dollars from Iraq.
Those moves have made it harder for Iraqis to move money out of the country, U.S. officials say.
Among the new measures, Iraq’s government is asking the country’s central bank to ensure that dollar transactions are handled through a new electronic platform requiring detailed information about where the funds are going.
But Iraqi authorities face an uphill battle disrupting powerful networks of banks, currency traders and Iran-backed militias who control the illicit transactions. Many have the political clout to avoid arrest and have proven resourceful in finding ways around the efforts to halt the movement of dollars.
Sudani acknowledged Tuesday that the Central Bank of Iraq should have taken action against Iraqi banks suspected of money laundering, instead of waiting for the U.S. Treasury to act. He also blamed currency traders for driving up the exchange rate for the Iraqi dinar, which has risen to 1,510 dinar to the dollar since the latest U.S. ban on Iraqi banks was imposed. The exchange rate was 1,470 dinar to the dollar last month.
Indeed, the increase in the exchange rate highlights the risk Sudani faces in complying with Washington’s push to crack down on dollar smuggling: If he moves too aggressively, it could anger the many powerful interests in Iraq who benefit from the illicit dollar trade and drive up the exchange rate further, raising prices for ordinary Iraqis.
Dollar smuggling takes different forms, complicating the effort. In some cases, smuggling networks obtain dollars in cash from currency traders and carry them in vehicles to Iran, Turkey and other Iraq neighbors.
Shortly after Sudani’s remarks Tuesday, Iraq’s national security service announced it had arrested at least 23 individuals in several cases of money laundering and illegal dollar transactions. In a series of raids in Baghdad, authorities said they took down a major dollar-smuggling network, making 11 arrests and recovering $14 million in cash, a spokesman said.
Officers found $100 bills in shrink-wrapped bricks labeled “New York,” inside a so-called “safe room” at one of the locations, a video released by the security service showed. The defendants “confessed to acting as traders with fake trading companies as a cover for smuggling currency abroad,” the spokesman said.
In a separate case, Iraq’s border authorities arrested a man recently at a border crossing with Iran in southern Iraq after $48,300 in cash was found hidden in his vehicle.
A far larger amount of dollars moves by wire transfers by Iraqi banks to accounts mostly in Dubai, where the ultimate recipient can be hard to trace.
“Some banks do not abide by the rules,” Sudani said. “There are banks that act as banks only on the surface but they do money transfers on the other side.”
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