The dollar ignites Baghdad.. A citizen threatens to burn a bank and exchange companies close Al-Rashid Street
A video recording monitored by Jarida, today, Thursday, showed a citizen threatening to burn a bank because he refused to hand over his deposits in US dollars, which raised fears of a repeat of the Lebanese experience in Iraq.
According to the circulating video, the citizen wanted to withdraw money from his balance, which he deposited in one of the banks and his account in US dollars, but the Jordan National Bank refused to hand over his money except in dinars, and exclusively at the official rate.
For his part, MP Hussein Arab said in a blog post on the “X” platform (formerly Twitter) followed by “Jarida”: “The acquisition of money transfer amounts via the dollar electronic platform by a non-local private bank, whose value is estimated at 70% of Iraq’s transfers, is abnormal.” Disastrous, we will have a clear position on manipulating the fate of the country’s economy. We will not remain silent.”
In the same context, the economic expert, Nabil Al-Marsoumi, said in a blog post followed by “Jarida”, that “the citizen who puts his money in the bank in dollars must recover it when he wants dollars, but the citizen puts his money in dollars, and is forced to withdraw it in dinars and at the official rate, This is not a market economy, but a distorted state economy.”
This incident coincided with the launch of a demonstration by owners of exchange companies in front of the Central Bank building to demand the dismissal of the corrupt people within the Central Bank.
A correspondent said, “The owners of exchange companies in Baghdad closed Al-Rashid Street in Baghdad, and stopped all daily deposits,” stressing that “these developments created a state of anxiety among people that prompted them to go to banks to withdraw their deposits.”
A member of the Parliamentary Finance Committee, Muhammad Nouri, was the first to reveal that “the Jordan National Bank has acquired a large percentage of dollar sales during the currency auction,” indicating that “what the Jordanian Bank sells in one day amounts to more than 200 million dollars in one day.” .
Nouri confirmed in a press statement followed by “Jarida” that “the control of a large group of non-Iraqi banks over the currency selling market is a dangerous precedent in the Iraqi economic market; Considering that Iraq has solid private banks that have the potential to operate according to international conditions and standards.”
He explained, “The facilities granted to foreign banks are the main reason for the rise of the dollar, given that no one can obtain what is offered in the market except this narrow group of banks and through agreements made in secret with the Central Bank,” noting that “there is a difference of 25 The number between the standard and the real price of the dollar is a problem caused by the Central Bank and its routine procedures.
Financial expert: The Central Bank is floundering with decisions and does not have real solutions to the dollar crisis
Today, Thursday (October 5, 2023), financial affairs expert Ali Al-Rasheed considered that the Central Bank’s decisions are confused and do not have real solutions to the dollar crisis.
Al-Rashid said in an interview with "Baghdad Today", "All the decisions of the Central Bank regarding its attempt to control the dollar crisis are patchwork measures, and they all indicate the bank's confusion in confronting this crisis, and also indicate that it does not have any real solutions to this crisis, which has begun to affect... significantly affecting the local market.
He stated that "private banks, especially those affiliated with some influential parties and figures, control the dollar without any oversight by the Central Bank or the Iraqi Banks Association, and this is what prompted the banks to give the dollar to whomever they want without right and outside all legal controls."
Last February, the Central Bank decided to raise the value of the official exchange rate of the dinar against the dollar by 10 percent in a measure aimed at reducing the depreciation of the currency that accompanied the adoption of more stringent regulations regarding financial transfers outside the country.
The government then agreed to the Central Bank’s proposal to raise the value of the exchange rate from about 1,470 dinars to 1,300 dinars per dollar, which had a clear impact on the exchange market at that time by reducing prices that reached the level of 1,700 dinars in the parallel market.
Banks must now manage these transfers through the “SWIFT” electronic platform, which is synonymous with more stringent monitoring of transactions, especially by the US Federal Reserve, which rejects any transfer deemed suspicious.
With the beginning of implementing the electronic system, the Federal Reserve rejected 80 percent of banks’ financial transfer requests due to doubts related to the final destination of the amounts being transferred.
The authorities admitted that the old transfer system allowed many abuses, as some users obtained dollars from the Central Bank through official channels, to carry out money laundering operations abroad or capital flight.
A call for an emergency plan"... The dollar in Iraq is entering a dangerous turning point and an unprecedented American decision
Professor of International Economics, Nawar Al-Saadi, said on Thursday (October 5, 2023), that the US Federal Bank refused to provide the Iraqi Central Bank with one billion dollars in cash, “a dangerous precedent that must be taken seriously by the Iraqi government.”
Al-Saadi said in a post on his Facebook page, “Enough of the drumming by the economists who drum on the channels day and night and claim that the dinar is strong and that there are strict measures.”
He added, "Now the trust between the Iraqi Central Bank and the (American) Federal Reserve has deteriorated. The Americans cannot tolerate procrastination and prevarication any longer."
Al-Saadi stressed, "An emergency plan and comprehensive reforms must now be announced in cooperation with the Ministry of Interior to control speculators in the market, control borders, and prevent currency smuggling, otherwise undesirable consequences will happen."
One of the advisors to the government of Muhammad Shiaa Al-Sudani had previously revealed that “the United States of America warned the Sudanese government eight times, publicly and clearly, against the continued sale of the dollar in large quantities through the currency auction window of the Central Bank.”
He said that the American side “has provided ample evidence that the majority of buyers of the dollar are smuggling it to Iran, Syria and Lebanon,” explaining that “this sale led to the monopoly of the dollar among merchants, and a decline in its presence in local and private banks.”
Last February, the Central Bank of Iraq decided to raise the value of the official exchange rate of the dinar against the dollar by 10 percent in a measure aimed at reducing the devaluation of the currency that accompanied the adoption of more stringent regulations regarding financial transfers outside the country.
The government then agreed to the Central Bank’s proposal to raise the value of the exchange rate from about 1,470 dinars to 1,300 dinars per dollar, which had a clear impact on the exchange market at that time by reducing prices that reached the level of 1,700 dinars in the parallel market.
For several months, the value of the Iraqi dinar has fluctuated sharply, losing on some days 15 percent of its value against the dollar, which sparked sporadic demonstrations by Iraqis worried about losing their purchasing power.
What made things even more unclear was after Reuters quoted the Director General of the Investment and Transfer Department at the Central Bank of Iraq, Mazen Ahmed, as saying that Iraq would ban cash withdrawals and transactions in US dollars starting from the beginning of next year and not immediately, a step that was interpreted by some experts as a “delay.” “For depositors if they want to withdraw their money.
However, the central bank official quickly issued a clarification regarding his statements to Reuters, saying that they “included inaccurate journalistic formulations.”
He said in a statement published on the Central Bank of Iraq's Facebook page, "The Central Bank guarantees dollar deposits, and the citizen who deposited his money in dollars with any Iraqi bank previously or by 2024 has an inherent right to receive these amounts in cash and in dollars."
He pointed out that the date of next January 1 “will be the beginning of stopping cash withdrawals for incoming remittances only from outside Iraq, according to certain arrangements that guarantee the sustainability of business and does not in any way include citizens’ balances in dollars.”
Independent MP in Parliament Hadi Al-Salami says, “The current failure in the dollar issue is borne by all the Iraqi governments that have ruled the country since 2003 until now. The government of Muhammad Shiaa Al-Sudani pledged to solve the crisis by establishing mechanisms to prevent the smuggling of hard currency, but it did not succeed in doing so.” This file."
He pointed out, "Reforming the banking system and the dollar crisis requires controlling the currency auction, which is still selling large amounts of dollars, and we do not know where it is going," noting that "the problem is big in Iraq, and we are facing huge challenges that may lead to a crack in the current system." Especially since the United States of America has warned many against smuggling the dollar to neighboring countries.”
Al-Sudani invites the President of the UAE to participate in the Baghdad conference
Today, Friday, the Ministry of Foreign Affairs announced that it had received the invitation from Prime Minister Mohammed Shiaa Al-Sudani to the President of the UAE, Mohammed bin Zayed Al Nahyan, to participate in the third Baghdad conference.
The spokesman for the Ministry of Foreign Affairs, Ahmed Al-Sahhaf, said in a statement received by Al-Maalomah, “The Ambassador of the Republic of Iraq to the United Arab Emirates, Muzaffar Mustafa Al-Jubouri, met with the Assistant Undersecretary for Protocol Affairs at the Ministry of Foreign Affairs of the United Arab Emirates, Ambassador Saif Abdullah Al-Shamsi, at the Ministry’s headquarters.” During the meeting, the invitation sent by the Prime Minister of the Republic of Iraq, Muhammad Shiaa Al-Sudani, to the President of the United Arab Emirates, Mohammed bin Zayed Al Nahyan, to participate in the Baghdad 2023 Conference for Economic Integration and Regional Stability, scheduled to be held in Baghdad on 11/30/2023, was delivered.
He added, "The two sides discussed ways to enhance cooperation between the two brotherly countries in various fields and ways to enhance and develop them."
He pointed out, "The two sides stressed the importance of continuing meetings and strengthening bilateral efforts in a way that serves the interests of the two countries and the two brotherly peoples."
The spokesman for the Ministry of Foreign Affairs, Ahmed Al-Sahhaf, said in a statement received by Al-Maalomah, “The Ambassador of the Republic of Iraq to the United Arab Emirates, Muzaffar Mustafa Al-Jubouri, met with the Assistant Undersecretary for Protocol Affairs at the Ministry of Foreign Affairs of the United Arab Emirates, Ambassador Saif Abdullah Al-Shamsi, at the Ministry’s headquarters.” During the meeting, the invitation sent by the Prime Minister of the Republic of Iraq, Muhammad Shiaa Al-Sudani, to the President of the United Arab Emirates, Mohammed bin Zayed Al Nahyan, to participate in the Baghdad 2023 Conference for Economic Integration and Regional Stability, scheduled to be held in Baghdad on 11/30/2023, was delivered.
He added, "The two sides discussed ways to enhance cooperation between the two brotherly countries in various fields and ways to enhance and develop them."
He pointed out, "The two sides stressed the importance of continuing meetings and strengthening bilateral efforts in a way that serves the interests of the two countries and the two brotherly peoples."
A new jump for the Baghdad dollar.. Al-Mansour sells for 1590, and everyone is waiting for Sunday morning
The Central Bank's reassurances did not dispel the anxiety
The dollar exchange rates, this evening, Friday, reached the level of 159 thousand dinars, a day after the controversy raised by the statements of an official in the Central Bank of Iraq about the date of stopping cash withdrawals and transfers, despite the official statement of the bank that carried clarifications and reassurances, and prices are heading to breach the 160 thousand barrier, as indicated by expectations. Since yesterday, specialists have been waiting for the banks to begin their work on Sunday .
Shorja
Sale: 157,000
Purchase: 156,000
Karrada inside
Sale: 158,000
Purchase: 156,000
Harithiya
Sale: 157,000
Purchase: 156,000
Al-Mansour
Sale: 159,000
Purchase: 157,000
Economic: Parties within the Central Bank are complicit in the dollar issue
Economist Diaa Al-Mohsen criticized the continued fluctuation of the dollar exchange rate and the lack of control over the rise in its value in the parallel market, pointing out the existence of collusion by some parties within the Central Bank regarding the dollar file.
Al-Mohsen said in a press interview seen by “Taqaddam” that “the management of the Central Bank is aware of what banking companies are doing in terms of selling the dollar and exploiting passports, but some figures within the Central Bank are complicit in such matters.”
He added, “Collusion within the Central Bank regarding the dollar file is on behalf of some political blocs and banks, and therefore it falls within the category of conspiracy with the aim of putting pressure on the Prime Minister because he is better than his predecessors.”
He stated that “there are attempts by the Prime Minister regarding the dollar file to achieve benefits for some parties,” stressing that “the Sudanese visit to New York and his meetings with US Treasury officials will give him a major boost in the fight against corruption, which will become clear during the coming period.”
Signing a memorandum of understanding to supply Turkmen gas to Iraq
On Friday, the Ministry of Electricity announced the signing of a memorandum of understanding to supply Turkmen gas to Iraq
The media office of the Minister of Electricity, Ziad Ali Fadel, stated in a brief statement that the latter signed in Baghdad a memorandum of understanding with the Turkmenistan Minister of State for Gas Affairs, to supply Turkmen gas to Iraq.
Source: There is a huge scarcity of dollars in government and private banks after an American decision
The source told Al-Furat News Agency that "directives were issued by the government to government banks to recover the installments and debts owed by citizens who live in units in Bismaya who refuse to pay the monthly installments."
The Wall Street Journal reported that the US Federal Reserve rejected Iraq's request
to obtain one billion dollars in cash from the bank, under the pretext that it conflicts with their efforts to curb Baghdad's use of the dollar and stop illicit cash flows abroad.
The American newspaper reported that since the American invasion of Iraq two decades ago, the United States has provided $10 billion or more annually to Baghdad via bi-monthly cargo flights, and the money is derived from the proceeds of Iraqi oil sales deposited with the Federal Reserve Bank.
American officials said, "Banknotes in the hands of Iraqis have become a lucrative source of illicit dollars."
A senior Iraqi official explained, according to the newspaper, that "the Central Bank of Iraq submitted an official request last week, which the Treasury Ministry is still studying, after Washington rejected the initial request submitted by Iraq last month."
According to the newspaper, since last November, Washington has prevented 18 Iraqi banks from dealing in dollars, adopting stricter rules for electronic transfers in dollars from its banks.
Treasury officials told the Central Bank of Iraq that sending a large additional shipment conflicts with Washington's goal of limiting Iraq's use of US banknotes, Iraqi officials said.
American officials spoke of conclusive evidence that some of the dollars that were arriving in Iraq were smuggled in cash over the years to countries in the region, including Turkey, Lebanon, Syria, and Jordan.
A Treasury Department spokeswoman said regarding the Iraqi request: “The United States continues to support Iraq with dollar banknotes and has not restricted its access to ordinary Iraqis and businesses,” indicating continued work with the Central Bank of Iraq.
America rejects Iraq's request for one billion dollars
Washington rejected Iraq's request to obtain one billion dollars in cash from the Federal Reserve Bank, under the pretext that it conflicts with their efforts to curb Baghdad's use of the dollar and stop illicit cash flows to Iran.
The American newspaper "The Wall Street Journal" reported that since the American invasion of Iraq two decades ago, the United States has provided $10 billion or more annually to Baghdad through bi-monthly cargo flights, and the money is derived from the proceeds of Iraqi oil sales deposited with the Federal Reserve Bank.
American officials said, "Banknotes in the hands of Iraqis have become a lucrative source of illicit dollars that go back to militias and corrupt politicians, as well as to Iran."
By applying for an additional $1 billion shipment, Iraq says it needs the money to help prop up its faltering currency. A senior Iraqi official explained that "last week, the Central Bank of Iraq submitted an official request that the Treasury Ministry is still studying, after Washington rejected the initial request submitted by Iraq last month."
According to the newspaper, since last November, Washington has prevented 18 Iraqi banks from dealing in dollars, adopting stricter rules for electronic transfers in dollars from its banks.
Treasury officials told Iraqi central bank governors that sending a large additional shipment conflicts with Washington's goal of limiting Iraq's use of US banknotes, Iraqi officials said.
American officials spoke of conclusive evidence that some of the dollars that were arriving in Iraq were smuggled in cash over the years to Iran, as well as to Turkey, Lebanon, Syria and Jordan.
A Treasury Department spokeswoman said regarding the Iraqi request: “The United States continues to support Iraq with dollar banknotes and has not restricted its access to ordinary Iraqis and businesses,” indicating continued work with the Central Bank of Iraq.
An upcoming visit by Macron to Baghdad.. What are its goals?
French President Emmanuel Macron is preparing to make a visit, the third of its kind, to Baghdad since he took office in 2017. According to observers, he will devote it to supporting his country’s investments in Iraq and improving the atmosphere between Baghdad and Kuwait, in preparation for the third Baghdad conference, in which he will participate in addition to the leaders of Gulf countries and neighboring Iraq. After the failure of its preparatory meeting in New York due to the Khor Abdullah case .
Macron's visit comes amid successive French losses in its positions in Africa, following the coups that the African continent witnessed recently, and in light of doubts about the European country's ability to consolidate or expand its gains in Iraq, given its differences with the United States of America, which has the greatest influence in Iraq and the region .
Nizar Haider, a political analyst based in Washington, said during an interview, “France has a great interest in Iraq on two levels. The first is bilateral, and includes the fields of energy and security specifically, and the second is at the ocean and regional level through its adoption of the Baghdad Conference project, which will be held in its third edition in The capital, Baghdad, next month .
Haider adds, “On the first level, French investment in Iraq is of great importance, as the contracts of French oil companies, specifically Total, exceeded more than 30 billion dollars, and it is an important investment that contributes to solving many of the economic problems that Paris is currently going through, which caused... It has sustained crises manifested by protests, sit-ins and strikes .”
On Wednesday, Prime Minister Muhammad Shiaa Al-Sudani received the Advisor for Middle East and North Africa Affairs in the Presidency of the French Republic, Patrick Durrell, and during the meeting, the upcoming visit of French President Emmanuel Macron to Iraq was discussed, and the development of bilateral relations between the two countries was discussed, in accordance with the strategic agreement. The comprehensive agreement signed between them, according to an official statement from Al-Sudani’s office .
Foreign Ministry spokesman Ahmed Al-Sahhaf also announced earlier that French Foreign Minister Catherine Colonna will visit Baghdad at the end of this month .
The political analyst confirms that “the French military presence in Iraq is within the framework of the international coalition for the war on terrorism, and it is of great importance to Paris in particular, because it participates in the fighting and not, as the government rumored, that its role is for advice and training, and what revealed the matter was the news of the phone call made by the Sudanese.” With the French President a few weeks ago to offer his condolences over the killing of a French soldier who was participating with the Iraqi forces in a special operation against ISIS .”
Haider explains, “As for the second level, France is currently seeking to heal the rift that occurred recently at the Baghdad conference between Iraq and Kuwait, as a result of the Federal Court’s decision to cancel the treaty regulating navigation in Khor Abdullah, which was signed between them. The decision embarrassed the Iraqi government, especially during the presence of the delegation.” The Iraqi Foreign Ministers, headed by Al-Sudani, were in New York. The foreign ministers of the Baghdad Conference countries were scheduled to hold a preparatory meeting on the sidelines of their presence in New York, but the Gulf Cooperation Council foreign ministers sent a joint letter apologizing for not attending the meeting, which led to its cancellation. What happened prompted France, which is the sponsor of the Baghdad conference, to take urgent political and diplomatic action to improve the atmosphere among the members to ensure that the conference will be held at the time specified for it .”
Iraq entered into a crisis with Kuwait, after the Federal Supreme Court issued a decision declaring the unconstitutionality of the Khor Abdullah Agreement signed between the two countries, which prompted the Gulf Cooperation Council to issue a statement rejecting the decision, and they considered it a “historical fallacy.” To date, the crisis has not been resolved and has remained suspended .
It is noteworthy that the “Baghdad 2” conference was held on December 20, 2022, in the Jordanian capital, Amman, after a first session held in Baghdad in August 2021, on an Iraqi-French initiative, with the participation of Bahrain, Oman, Egypt, Saudi Arabia, the Emirates, Qatar, Turkey, and Iran .
It is noteworthy that Macron said in his statements after the Baghdad II conference: “When the Jordanian king visited me in Paris, I convinced him of the necessity of holding this conference, because it is in the interest of all of us, and Abdullah took a risk in doing so, and we exchanged many phone calls with the Sudanese Prime Minister, and his acceptance of this conference is a victory, We held a meeting in a small setting, without the Turks and Iranians, and we began to draw up lines of action .”
In addition, Ali Fadlallah, a political analyst close to the coordination framework, believes that “France is one of the most important European Union countries interested in the Iraqi file, given that Iraq is an emerging market in all fields of armament and infrastructure, as well as the size of the natural resources present in it. ”
Fadlallah points out that “Iraq was one of the first countries that moved to strengthen its economic and commercial relations with France, especially since the Sudanese visit to Paris, after the formation of his government, was with the intention of French companies entering the Iraqi market forcefully. ”
He continues, "The French President's visit to Iraq will not be protocol. Rather, it will aim to conclude very important agreements, in addition to holding the Baghdad conference, as France is considered one of the countries supporting him on the security and political levels. "
At the beginning of this year, Al-Sudani signed the strategic partnership agreement with French President Emmanuel Macron, which was considered the first of its kind between Baghdad and Paris. It includes 4 chapters, 6 sections, 50 articles and 64 paragraphs, and among the most prominent of its contents is: strengthening cooperation to confront the dangers of terrorist threats and combating extremism. Forming bilateral committees in the fields of defense and security, following up on the implementation of annual plans for bilateral defense cooperation, and strengthening Iraqi military defense capabilities by developing the necessary skills, facilitating the provision of French-made military equipment, and activating the exchange of information and military intelligence between the two parties .
It is noteworthy that Iraq concluded many agreements with America, starting with the Strategic Framework Agreement in 2008, which mostly focused on the security aspect and the presence of American forces in Iraq, and also stipulated that the two parties agree to continue their close cooperation in strengthening and sustaining the military, security and political institutions. And democracy in Iraq, according to what they may agree upon, including cooperation in training, equipping and arming security forces, in order to combat local and international terrorism and outlaw groups, at the request of the Iraqi government .
For his part, political analyst Ghaleb Al-Daami says, “France does not have a good relationship with the United States of America, and this is very clear, and therefore the visit of French President Emmanuel Macron to Iraq will not be effective, without the American administration’s approval and support for the visit. ”
He points out that "France lost many of its economic positions in Africa, and began to turn to Iraq, which welcomed it, but this visit will not be effective and have goals and results without America's support for it," indicating that "France will not get anything from Iraq and will not be able to “With any of the large and important projects, it sought to do so during the government of Adel Abdul Mahdi and the government of Mustafa Al-Kadhimi, and now it is renewing its efforts, but there is no reliance on this visit, due to American dissatisfaction with it. ”
It is noteworthy that France seeks to take a role in Iraq, on the security and economic levels, and this was greatly embodied during the previous government headed by Mustafa Al-Kadhimi, as French President Emmanuel Macron visited Iraq more than once, in addition to the visit of French Armed Forces Minister Florence Parly to Baghdad .
Three observations on the performance of the Iraqi Central Bank... The framework and the government are studying changing the bank’s leadership
Recently, attention has been focused on the Central Bank and monitoring its work in how to contain the dollar crisis, because of its close connection to the lives of citizens and the high cost of living goods, which have become exhausting for many due to the increasing rise of the dollar day after day.
3 notes
The leader in the coordination framework, Jabbar Odeh, revealed in an interview with “Baghdad Today”, today, Friday (October 6, 2023), that 3 observations were recorded on the performance of the Central Bank.
Odeh said, “The Central Bank is an important institution in the state’s structure, and it is concerned with very sensitive issues related to the country’s economy in terms of managing the financial file and its reserves, controlling the price of hard currencies, and preventing any collapse of the dinar, which leads to great exhaustion for families, especially since we have approximately 13 million Iraqis below the poverty line.” According to the rates of the Ministry of Labor.
Challenges
He added, "The financial challenges have worsened recently, especially with the increase in the difference between the official selling price of the dollar and the parallel market, in addition to linking measures to limit currency smuggling and the errors accompanying it, amid complaints from many segments."
Odeh pointed out that "observations on the performance of the Central Bank will prompt the coordination framework to discuss the issue of making changes in the structure of the Central Bank with the government according to what it deems appropriate in accordance with the principle of comprehensive evaluation."
He continued, "The existence of the vast gap between the official and parallel rates until the end of the current year 2023 without any changes means the necessity of reconsidering the plans by the Central Bank according to a new specialized vision that helps create stability, especially since any rise will lead to an additional burden on the shoulders of millions of poor people in the country." .
"Confused" decisions
For his part, financial affairs expert Ali Al-Rasheed said yesterday, Thursday (October 5, 2023), that the Central Bank’s decisions are confused and do not have real solutions to the dollar crisis.
Al-Rashid said in an interview with "Baghdad Today", "All the decisions of the Central Bank regarding its attempt to control the dollar crisis are patchwork measures, and they all indicate the bank's confusion in confronting this crisis, and also indicate that it does not have any real solutions to this crisis, which has begun to affect... significantly affecting the local market.
He stated that "private banks, especially those affiliated with some influential parties and figures, control the dollar without any oversight by the Central Bank or the Iraqi Banks Association, and this is what prompted the banks to give the dollar to whomever they want without right and outside all legal controls."
Last February, the Central Bank decided to raise the value of the official exchange rate of the dinar against the dollar by 10 percent in a measure aimed at reducing the depreciation of the currency that accompanied the adoption of more stringent regulations regarding financial transfers outside the country.
The government then agreed to the Central Bank’s proposal to raise the value of the exchange rate from about 1,470 dinars to 1,300 dinars per dollar, which had a clear impact on the exchange market at that time by reducing prices that reached the level of 1,700 dinars in the parallel market.
Banks must now manage these transfers through the “SWIFT” electronic platform, which is synonymous with more stringent monitoring of transactions, especially by the US Federal Reserve, which rejects any transfer deemed suspicious.
With the beginning of implementing the electronic system, the Federal Reserve rejected 80 percent of banks’ financial transfer requests due to doubts related to the final destination of the amounts being transferred.
The authorities admitted that the old transfer system allowed many abuses, as some users obtained dollars from the Central Bank through official channels, to carry out money laundering operations abroad or capital flight.
Citizens express their fear of the state of paralysis hitting the markets
Citizens expressed their fear of the continued fluctuation of the dollar exchange rates, which naturally causes paralysis of the Iraqi market, as they point out, while they expressed their concern about the possibility of the emergence of a new crisis that will burden them.
One of the most prominent demands of citizens is the provision of currency in the markets without relying on mechanisms that could be vulnerable to exploitation by some parties. If this is achieved, the observed stability may control the market.
Economists believe that the dollar crisis is...IraqIt did not reach the level of a final solution, as the solutions and procedures that were put in place were formal and did not address the defect at the structural level in the Iraqi economy.
The Sudanese advisor discusses with two international delegations the government's project to amend the constitution
The Prime Minister's Advisor for Constitutional Affairs, Hassan Al-Yasiri, discussed with the delegations of the European Foundation for Dialogue and Development and the Institute of International Law and Human Rights the government's project to amend the constitution and its broad outlines.
His media office stated, in a statement received by the Maalouma Agency, that “the Prime Minister’s Advisor for Constitutional Affairs, Hassan Al-Yasiri, met with the delegation of the European Foundation for Dialogue and Development yesterday, Thursday, and the two parties discussed the government’s project to amend the constitution and its broad outlines.”
The delegation of the European Foundation expressed its "full readiness to cooperate with the government's efforts in this field," revealing its "support for the mechanisms adopted by the government in this project."
The statement continued: “In a related direction, Al-Yasiri discussed with the delegation of the Institute of International Law and Human Rights the draft amendment, as the delegation of the International Institute expressed its willingness to cooperate in these efforts, benefiting from its previous experience represented by working with the Constitution Writing Committee for the year 2005.”
Iraq loses half of its share of the US dollar and resorts to measures related to Iran and currency exchange.. What about Emwazi?
Economist Nabil Al-Marsoumi commented today, Friday (October 6, 2023), regarding the Central Bank of Iraq’s reduction of banking companies’ shares of the cash dollar by more than half.
Washington rejected Iraq's request to obtain $1 billion in cash from the Federal Reserve Bank, arguing that it conflicted with their efforts to curb Baghdad's use of the dollar and stop illicit cash flows to Iran. According to the American Wall Street Journal.
Al-Marsoumi wrote in his Facebook post, which was followed by “Baghdad Today,” that “the US Federal Reserve reduced its cash dollar transfers to Iraq from 10 billion dollars to 5 billion dollars annually through semi-monthly shipments.”
American refusal
He added, "Washington rejected an Iraqi request for an additional billion dollars because it conflicts with American efforts to curb Baghdad's use of the dollar and stop illicit cash flows to Iran and Syria."
Al-Marsoumi noted, "As a result, the Central Bank of Iraq was forced to reduce the banking companies' shares of the cash dollar by more than half, which will affect the exchange rate of the dinar against the dollar in the parallel market in the future and will reduce Iraq's imports from Iran by almost half."
According to a report by the American Wall Street Journal published yesterday, Thursday (October 5, 2023), “ Iraq is seeking to obtain a special shipment worth one billion dollars in cash from the Federal Reserve Bank in New York, but American officials declined to approve, saying that the request conflicts with their efforts to curb the use of... Baghdad for the dollar and stop illicit cash flows, while Baghdad said that it needs funds derived from its oil sales to support its cash reserves.
A source of profit
He added, "Since the American invasion of Iraq two decades ago, the United States has been providing $10 billion or more annually to Baghdad on bi-monthly cargo flights carrying huge pallets of cash, derived from the proceeds of Iraqi oil sales deposited with the Federal Reserve Bank," he said. American officials said that banknotes in the hands of Iraqis have become a lucrative source for illicit dollars and corrupt politicians.
He continued, "Iraq said that it needs funds to help support its faltering currency, while a senior Iraqi official said that after the United States rejected the initial appeal submitted by Iraq last month, the Central Bank of Iraq submitted an official request last week, and the US Treasury Department is still studying it." ".
The report continued, "According to Iraqi officials, treasury officials informed Iraqi bank governors that sending a large additional shipment conflicts with Washington's goal of reducing Iraq's use of American banknotes in favor of electronic transactions that can be more easily tracked, while American officials said that there is strong evidence that "Some of the dollars that used to go to Iraq are smuggled in cash."
A dangerous precedent
The report noted that "the initial American refusal angered some Iraqi officials, who said they requested an additional billion dollars from their own funds because the country's cash reserves declined after Washington's attempts to restrict the flow of dollars led to widespread panic and hoarding of dollars on stock exchanges."
In addition, Professor of International Economics, Nawar Al-Saadi, said that the US Federal Reserve refused to provide the Iraqi Central Bank with a billion dollars in cash, “a dangerous precedent that must be taken seriously by the Iraqi government.”
Al-Saadi said in a post on his Facebook page, “Enough of the drumming by the economists who drum on the channels day and night and claim that the dinar is strong and that there are strict measures. Now trust has deteriorated between the Iraqi Central Bank and the (American) Federal Reserve. The Americans cannot tolerate procrastination and evasion any longer.”
Owners of exchange companies are demanding that the ban on selling currency auctions be lifted
Dozens of owners of exchange companies organized a protest demonstration in front of the Central Bank, demanding that the ban on their companies be lifted at the currency auction, especially since these decisions will contribute to the rise in the dollar exchange rates.
Owners of exchange companies say that these measures would cause the value of the dollar to rise further, especially since the recent rise was due to their being denied entry to the currency auction.
Accusations against the Ministry of Finance of obstructing the release of budget funds.. What are the effects of the delay?
A member of the Parliamentary Economy and Investment Committee, MP Mohamed Al-Zayadi, criticized the Ministry of Finance’s obstruction in releasing financial investment allocations in the tripartite budget for the governorates, saying that “this was negatively reflected by obstructing the completion of lagging projects as well as new ones.”
Deputy: There is no change in reality that matches the principle of service government that is being called for
Al-Ziyadi said, in an interview with “Ultra Iraq”, that “there is a major calamity now represented by the Minister of Finance, because despite the approval of the budget last June and until now we are in October, and investment funds have not been released amid complications, routine and bureaucracy that has no end.” .
As for Al-Ziyadi, there are “ongoing investment projects that need to allocate funds for them that have not been paid so far,” indicating that “the health sector, despite the promises of the Prime Minister and what was announced in his government program about ending lagging hospital projects, there is no change in reality that matches the principle of the government of services that are provided.” “Calling for it, in addition to many other sectors waiting for their money.”
According to Al-Ziyadi, “the governorates submitted all the statements and priorities for the projects a long time ago in exchange for the lack of listening and action by the Ministry of Finance,” considering that “these frustrating measures come after the Parliamentary Finance Committee vigorously wrestled and approved allocations that meet the ambitions of the governorates, because the federal financial budget It is considered explosive at 198 trillion dinars between investment and operational.”
Al-Ziyadi pointed out that "the infrastructure sector, represented by water, sewerage, electricity and sanitary services, will be the most vital and will make a tangible change if development investment allocations are launched, because the Prime Minister has a directive not to implement any projects without existing and complete infrastructure."
Meanwhile, the representative of the Al-Fatah Alliance in Basra Governorate, Intisar Hassan, said that the delay in launching the financial investment allocations in the budget for the governorates had a negative impact on the reality of the projects, indicating that “the budget was approved more than three months ago and there is no tangible change.”
Hassan said, in an interview with “Ultra Iraq,” that “the Ministry of Finance, despite the passage of a long time, has now begun to release a small amount of financial shares to the governorates, as Basra Governorate received only 500 billion dinars, which is the value of the funds and not the real budget.”
She indicated that "Basra's share of the budget is more than two trillion dinars, but it has not received what meets its ambitions and accelerates the wheel of its development projects until now, especially since it is the first governorate with strategic plans and ongoing work, according to data from the Ministry of Planning."
She considered that “the delay in releasing the funds will make the governorates not view the funds as investment projects or other things, but rather as a public financial share that must be received in order for the projects to move forward,” stressing that “the health sector will be the most vital if the investment financial allocations arrive, as there are many hospital projects that are lagging behind in work, because “Most of these projects operate on the LC system, which is a banking system that means that the contractor is not given the money in his hand, but in his bank account after he spends money from his own pocket on the project and its completion or stage after stage, because hospitals are considered delicate projects, requiring the presence of a contractor who has funds that can It includes carrying out the project and receiving it later through the account into which the government deposits it.
Likewise, she confirmed that “the educational sector, such as schools, comes in second place for projects that will witness vitality after the release of funds, in addition to other health projects such as financing medicines and treatments, because Basra records high rates of cancer cases and thalassemia, which faces a lack of medicines and their funding,” considering that “the Ministry of Finance and the government bear Responsibility for the disruption in the release of funding, because all governorates submitted their plans to the Ministry of Planning, which in turn must submit them to the Finance Ministry and explain to it, for example, Basra’s need for 600 projects so that the latter determines the costs for them according to the budget.”
She pointed out that “Parliament views the budget in terms of meeting the interests of the street and citizens through appointments, services, etc., because it is closer to it than the government, which views the budget as projects that must be implemented and the amount of profits that will be achieved from it for the treasury to enter,” considering that “even the government’s view of making profits does not include a fair distribution of those funds.” With projects, for example, Basra Governorate was wronged by granting less than it was entitled to, and it is a large governorate that feeds the state treasury with revenues through oil production, compared to small governorates that received more financial entitlements from Basra.
She added, "The sterile problem that Basra suffers from is the scarcity of water, and there are no solutions except through building dams or dialogues with Turkey or Iran, and the Iraqi government continues to remain silent," and was surprised by "the government's raising of the Khor Abdullah issue in a major way, while it is not an issue as important as the importance of sitting down . " With the Turkish side and solutions to the water crisis, as the northern and central governorates benefit from water, while when the issue reaches Basra, everyone is silent and no one calls for its rights or no one responds to its demands. This is an eternal problem with governments, not just the current one.”
Crisis management specialist, Ali Al-Fariji, considered the size of financial allocations for the investment and development aspect to be one of the important aspects that reflects a positive image of any country, indicating that “comparing this goal with the financial budgets in Iraq, there is a major imbalance in their numbers.”
Al-Fariji said, in an interview with “Ultra Iraq,” that “the problem in Iraq, and what makes it more complicated for investment, is the absence of the private sector that can correct the imbalance in the public budgets and the allocations of the investment aspect,” indicating that “the investment allocations in the 2023 budget are estimated at 25% of the total allocations.” Finance is in the budget, while the size of the need is much greater than this, and therefore better investment and positive development are not achieved in some areas.”
He pointed out that “what is allocated for investment in the public sector only meets 5% of the actual need, while independent investment is considered ineffective and not linked to economic calculations at the country level,” considering that “lagging investment projects have become a major and additional burden on The body of the state and the economic movement, because the rates of extinction are very large, as there are more than 2,700 investment projects being talked about, and no economic benefit has emerged from them or any signs of their connection with reality and the work movement have emerged.”
An increase in the dollar exchange rate in Erbil exchange offices despite the closure of the stock market (photos)
Citizens gathered in front of banking offices in Erbil a short while ago, after a rise in the exchange rate of the US dollar.
Shafaq News Agency correspondent stated that the exchange rate rose to 158,750 dinars, compared to 100 dollars as the selling price, while the purchase price stabilized at 156,000 dinars.
Our correspondent added; He asked a number of banking office owners about the reason for this rise, and they answered that there are fears that the Central Bank will reduce the amount of cash sold for the dollar through the currency auction in Baghdad.
this would be a whale of an arrest
A senior source: The former Minister of Finance surrendered himself to the Integrity Court and was released on bail
A senior source said, on Friday, that the former Minister of Finance surrendered himself to the Integrity Court and was released on bail.
The Federal Integrity Commission revealed that a summons order had been issued against the former Minister of Finance. On the grounds of violating his job duties.
The Commission’s Investigations Department stated in a statement, “The judge of the Second Karkh Investigation Court decided to bring in the former Minister of Finance, after he was negligent by the investigative committee composed of the Commission,” noting that “he signed a letter allocating a plot of land in Anbar Governorate with an area of (98 ) a dunam to another person, in contrast to the investment license granted to an investor.”
She continued, “The accused changed the book and retracted the allocation; “Which led to the investor missing out on the investment opportunity and not being granted permission to establish a residential project on the plot of land, despite obtaining the proper approvals,” she explained, explaining that “the court issued the recruitment order, in accordance with the provisions of Article (331) of the Penal Code.”
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