The dinar begins its “recovery journey” against the dollar
The Iraqi dinar continues to recover against the US dollar in the local markets in light of the continued government measures to close the price difference, as the decline reached the limits of 158 thousand per 100 dollars, at a time when experts expected that this decline is “temporary.”
Yesterday, Tuesday, in a press statement, a government source revealed a package of new measures to address the difference in the exchange rate, including regulating the import process and ensuring the entry of the largest number of merchants and importers to the foreign currency sales window by facilitating account opening procedures, deposit operations, and other procedures related to issuing the importer’s identity. Which will facilitate the “know your customer” requirements for merchants and importers.
He explained that Prime Minister Muhammad Shiaa Al-Sudani directed the activation of a joint committee between the government, the central bank and the private sector, under the supervision of his office, to hold serious discussions with the US Treasury regarding transfers through the foreign currency selling window, and the committee began its meetings from now.
He stated that there are ongoing negotiations between the government and the Central Bank with the Iranian side to regulate trade between the two countries and make the best options regarding payment of dues and amounts, and discussions are taking place at a good pace. The source pointed out that the government is holding ongoing discussions with the Central Bank regarding a number of topics, including facilitating procedures related to Iraqi banks importing the dollar (cash). This process has already begun with some banks importing the dollar, and the process will expand to include other banks, and work is also underway on Proceeding to conclude agreements to supply the currencies of some countries to be provided through banks and banking companies to meet the needs of tourists and pilgrims going to those countries without the dollar currency.
He continued that the government is now working on an “equal deal” project to exchange trade and imports with some countries, such as China and India, and in their own currencies from Iraq’s main trading partners, such as India, China, and some neighboring countries, pointing out that the government is currently studying the establishment of a free zone to import materials and then market them to the private sector and ensure Delivering it to the consumer at competitive prices and in dinars. The government is also currently studying a re-export project and there are important discussions in this regard. For his part, the economic expert, Diaa Al-Mohsen, attributed the decline in the dollar exchange rates in local markets to the systematic attempt to withdraw the dollar from citizens, while he stressed that the decline is “temporary” and will not continue or come close to the official exchange rate.
Al-Mohsen said in a press statement: There are parties that directly control the price of the dollar in the local markets, indicating that the recent measures and meetings will not lead to reducing the gap between the official and parallel prices.
He continued that the recent meetings that took place in the Emirates were marred by many problems and did not produce accurate results that would work to find solutions to the crisis of the rise in dollar prices, pointing out that the banks of some countries will benefit from the process of bidding farewell to the Iraqi currency, according to him. In turn, Khurshid Othman, professor of economics at Saladin University, confirmed that the decline in the dollar exchange rate in the parallel market is “temporary” and is due to the coordination and cooperation of a group of speculators who control the dollar exchange rate.
Othman expected the dollar exchange rate to continue to decline in the next two days, but pointed out that it would witness a rise again due to the trick of speculators in luring citizens to buy the dollar at low prices and then sell it again.
Don’t rule out a Bill Clinton-style 1990s boom for the economy, UBS says
Parliamentary Finance stresses the necessity of accelerating the implementation of the comprehensive banking system
Chairman of the Parliamentary Finance Committee, Atwan Al-Atwani, stressed today, Wednesday, the necessity of accelerating the implementation of the comprehensive banking system, while stressing the importance of facilitating loan granting procedures.
The media office of the Chairman of the Parliamentary Finance Committee, Atwan Al-Atwani, said in a statement received by Mawazine News, “Al-Atwani chaired a session hosting government bank directors, to discuss ways to achieve banking and financial reform in the country,” noting that “the meeting, which was attended by representatives, members of the Finance Committee and bank directors Al-Rafidain, Al-Rasheed, Real Estate, Industrial, and Agricultural, discussed a number of important files related to the work of government banks, including mechanisms for granting banking facilities in granting loans and reducing interest rates and other services.”
He added, "The meeting reviewed the steps for preparing the banking reform paper in line with the government program, through the implementation of the comprehensive banking system."
Al-Atwani stressed "the necessity of accelerating the implementation of the comprehensive banking system," pointing out that "we will hold joint specialized workshops in order to prepare a draft of the government banks work law."
He stressed "following up on the steps to prepare the banking reform paper," expressing his support for "efforts to improve and advance this vital, important sector."
He pointed to "the importance of facilitating loan granting procedures and studying their economic feasibility in order to achieve development," explaining that "automating systems and programs is the only way to get rid of routine and fight corruption."
He stressed "accelerating the completion of the steps to transition from the paper system to the electronic system for all sectors and institutions," pointing to "the importance of preparing data centers in accordance with the standards of the Central Bank and international banks."
He stressed, "The Real Estate Bank must complete lending transactions for citizens who have completed disbursement procedures within the housing initiative."
Amin Iraq Bank discusses increasing its capital to 300 billion dinars
The Amin Iraq Bank for Islamic Investment and Finance announced that it will hold a general assembly meeting at the end of this month to discuss increasing its capital to 300 billion dinars.
The bank said in an announcement to shareholders, “The meeting will discuss increasing the bank’s capital from 250 billion dinars to 300 billion dinars, through issuing new shares worth 50 billion dinars and through subscription.”
Al-Tafif Islamic Bank decides to hold a general assembly meeting at the beginning of next month
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Al-Tafif Islamic Bank decided to hold its annual general assembly meeting, on the 5th of next month, to discuss the bank’s financial accounts.
The General Assembly will discuss the distribution of profits and the report of the Board of Directors and the Auditor for the past year.
As well as discussing increasing the bank's capital from 250 billion dinars to 300 billion to implement the instructions of the Central Bank of Iraq.
Warka Bank increased to 271.6 billion dinars
The Company Registration Department, in the Ministry of Commerce, decided to approve increasing the capital of the Warka Bank for Investment and Finance to 271.6 billion dinars.
According to an official document obtained by Al-Iqtisad News, the legal procedures to increase the capital of Warka Bank from 105 billion dinars to 271.6 billion dinars have been completed.
She added that new shares were issued worth 166.5 billion dinars, the value of each share being one dinar.
The price of the dollar will reach 145,000 dinars.. An economic expert explains the reasons for the dollar’s decline
link this is from Kurdish news
more on the equal deal
The dollar falls to “fifty”... Washington sent a lifeline and the parallel market tasted depression
A clearer picture... to some extent
Why did the exchange rate of the US dollar fall on the stock market? Financial officials in the country say that the meeting of the Central Bank of Iraq and the US Federal Reserve in Abu Dhabi last week removed the bottleneck in the market and reduced the value of the foreign currency, but traders and money changers are talking about the “brink of depression” hypothesis, after the dollar piled up in their offices at a price exceeding 165 thousand per 100 dollars. They resorted to a “temporary trick” to get rid of large amounts of foreign currency that they failed to sell this month.
At the end of last week, the exchange rate almost reached the brink of 170,000 Iraqi dinars, and suddenly it began to decline by about 10,000 dinars.
The decline coincided with limited new facilities to support the dollar balances of five new Iraqi banks, adding to the five that were previously included. Sources say their number will increase in the near term.
What happened in Abu Dhabi?
At the height of the rise of the dollar, representatives of the Central Bank of Iraq were holding discussions in Abu Dhabi with the US Federal Reserve, in the presence of banks from Jordan and the Emirates, and it was decided to strengthen the balances of five banks: International Development, Iraqi Islamic, Islamic South, Assyria, and RT Bank.
These banks will be strengthened with the US dollar, the UAE dirham, the Chinese yuan, and the Indian rupee, and this mechanism is supposed to increase the area of commercial activity without focusing pressure on the first five banks that were alone covered by the strengthening of the currency previously, which are TBI, Al-Ahly, Baghdad, and Al-Mansour. And Abu Dhabi Islamic Bank.
According to financial expert Mahmoud Dagher, the Abu Dhabi agreement will strengthen these banks with dollars away from the government’s dollar selling window, in exchange for the five new banks adhering to official procedures and accelerating financial transfer operations.
The Abu Dhabi meeting was only the result of negotiations conducted in Washington by officials in the office of Prime Minister Muhammad Shiaa Al-Sudani, which aimed to diversify the dollar outlets by increasing the number of banks included in enhancing the balance.
A prominent government official, who requested to remain anonymous, says that the new measures will push the exchange rate to gradually decline to 140 thousand, to coincide with a timetable for more banks to join the list of those included in enhancing balances.
The source also indicated that a round of discussions will take place soon in Washington with the aim of obtaining more facilities.
However, the source speaks to the 964 Network about an obstacle to the passage of these measures in accordance with the government’s plan due to the presence of large amounts of dollars accumulated with stock market traders.
Find the edge of the depression
With the rise in the exchange rate, the activity of traders and speculators increased to collect the dollar from the market, but they discovered that selling it was very difficult since it crossed the barrier of 160 thousand dinars. One of the Al-Kifah Stock Exchange traders says, “Small traders and individuals punished the stock exchange (…) It was like a buying strike.” The dollar has piled up in the cash registers and we do not know how to deal with it.”
What's going on now? The source says that the large speculators want to get rid of the accumulated amounts of dollars to avoid a further decline in the exchange rate, and this will make the difference between the parallel market and government sales diminish.
According to the source, stock market traders believe that the proceeds of recent speculation and the losses incurred by major traders have made them discover that the 160,000 barrier is the new unit of measurement, as the dividing line between selling large quantities and refraining from buying.
But does this mean that the government measures are the ones that lowered the exchange rate and forced the stock exchange to release the accumulated dollar? Traders that the 964 network spoke to say that speculators are the ones who reduced the value of the dollar, and that the impact of what the government is doing will appear later. This is an opinion that a senior financial official objects to. He emphasized that small sales are indeed influential, but their impact on determining the exchange rate is partial and does not represent the overall picture.
What is an equal deal?
While writing this “clearer picture” to some extent, local media circulated statements attributed to a government source, about “a package of measures to address the difference in the exchange rate.”
The package includes “organizing the import process and ensuring that the largest number of merchants and importers enter the foreign currency sales window by facilitating account opening procedures and deposit operations.”
According to the source, the government is now working on an “equal deal” project to exchange trade and imports with China and India in their local currencies, from Iraq’s main partners in those countries.
Financial expert Mahmoud Dagher believes that the “equal deal” means parity in trade exchange. He gives the example of China and India, which import oil from Iraq, where payments can be settled in the form of goods that Iraq needs from these two countries, especially since China is Iraq’s largest trading partner.
From social media: The Central Bank of Iraq announces the arrival of the first dollar shipment to an Iraqi bank after the Iraqi-American agreement
Source: A shipment of $100 million arrived at an Iraqi bank
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An informed source revealed, today, Wednesday, the arrival of a shipment of the amount of 100 million dollars approved for three Iraqi banks charged with importing the US dollar.
The source said in an interview with Al-Sumaria News, “During the past two days, the Central Bank issued official approvals to three Iraqi private banks to import the US dollar to meet their customers’ need for this currency in amounts amounting to (100) one hundred million dollars,” noting that “one of the banks’ shipment "I have actually arrived in Iraq."
The source explained that “there are requests from other banks on their way to be submitted for decision by the Central Bank of Iraq,” noting that “the Trade Bank of Iraq (TBI) is currently holding important discussions with several international companies to transfer amounts amounting to $120 million, which is in progress.” “It is on track to be completed within the next few days.”A government source had previously revealed that according to the recent meetings of the Central Bank with the American side, the number of banks that can directly strengthen their balance in US dollars has become ten banks, five through Citi Bank and five other banks other than the first through GB Bank. JP Morgan.
To reduce the dollar...the Central Bank agrees with Turkish banks to open accounts for Iraqi banks
An authorized source in the Central Bank of Iraq revealed today, Wednesday (November 15, 2023), the bank’s agreement with Turkish banks to open accounts for Iraqi banks.
The source explained to the official agency, "The agreement comes for the purposes of external transfer and enhancing balances to finance foreign trade in the euro currency," noting, "The agreement came to facilitate the process of trade exchange between Iraq and Turkey."
He added, "The Central Bank has put forward other proposals that will be discussed in Istanbul at the end of this month," stressing that "The Central Bank has taken a number of measures that will contribute to reducing the dollar exchange rate."
A government source revealed earlier this morning that “the Central Bank issued, during the past two days, official approvals for three Iraqi private banks to import the US dollar to meet their customers’ need for this currency, in amounts amounting to (100) million dollars,” pointing out that “the shipment of one of the banks has arrived.” Actually, for Iraq, there are applications from other banks that are on their way to be submitted for decision by the Central Bank of Iraq.”
He pointed out that "the Trade Bank of Iraq (TBI) is currently holding important discussions with several international companies to transfer amounts amounting to $120 million, and they are on their way to completion within the next few days."
It is noteworthy that, with reserves exceeding $113 billion in the United States, Iraq relies heavily on Washington’s good faith to ensure that its oil revenues and funds are not exposed to American sanctions.
Last October, the US government rejected a request from Iraq to obtain an amount of one billion dollars in cash from the Federal Reserve Bank from Iraqi funds generated from oil revenues, due to its opposition to efforts to curb excessive circulation of the dollar and stop illicit cash flows to countries banned by the Treasury. American.
An authorized source in the Central Bank of Iraq revealed today, Wednesday (November 15, 2023), the bank’s agreement with Turkish banks to open accounts for Iraqi banks.
The source explained to the official agency, "The agreement comes for the purposes of external transfer and enhancing balances to finance foreign trade in the euro currency," noting, "The agreement came to facilitate the process of trade exchange between Iraq and Turkey."
He added, "The Central Bank has put forward other proposals that will be discussed in Istanbul at the end of this month," stressing that "The Central Bank has taken a number of measures that will contribute to reducing the dollar exchange rate."
A government source revealed earlier this morning that “the Central Bank issued, during the past two days, official approvals for three Iraqi private banks to import the US dollar to meet their customers’ need for this currency, in amounts amounting to (100) million dollars,” pointing out that “the shipment of one of the banks has arrived.” Actually, for Iraq, there are applications from other banks that are on their way to be submitted for decision by the Central Bank of Iraq.”
He pointed out that "the Trade Bank of Iraq (TBI) is currently holding important discussions with several international companies to transfer amounts amounting to $120 million, and they are on their way to completion within the next few days."
It is noteworthy that, with reserves exceeding $113 billion in the United States, Iraq relies heavily on Washington’s good faith to ensure that its oil revenues and funds are not exposed to American sanctions.
Last October, the US government rejected a request from Iraq to obtain an amount of one billion dollars in cash from the Federal Reserve Bank from Iraqi funds generated from oil revenues, due to its opposition to efforts to curb excessive circulation of the dollar and stop illicit cash flows to countries banned by the Treasury. American.
The Central Bank enhances the accounts of 13 banks in the Chinese yuan
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An authorized source in the Central Bank of Iraq revealed today, Wednesday, the strengthening of the accounts of 13 banks in the Chinese yuan, calling on merchants and importers to secure their imports through official roads. The source told the official agency, “The number of banks whose accounts were strengthened in the Chinese currency, the yuan, reached (13), suggesting that “the number of banks that will strengthen their balance in the Chinese currency will increase in the near future.” The source added, "Merchants and importers can import their goods from China at the official price that will be provided by banks dealing in the Chinese currency instead of resorting to the black market and speculators."
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Its harmful effects are... a parliamentary warning against printing a new monetary mass
Independent MP Nazem Al-Shibli warned today, Wednesday, of the dangers of printing a new monetary mass, stressing that the rise in the price of the dollar has harmed the livelihood of a segment of poor citizens.
Al-Shibli said in a statement received by Mawazine News, "This step may lead to the erosion of the value of the Iraqi dinar, especially in light of the governor's failure to manage monetary policy."
He added, "Central Bank Governor Ali Al-Alaq failed to manage the crisis and is unable to achieve stability in the value of the Iraqi dinar," pointing out that "printing a new monetary mass will lead to adverse damage."
Al-Shibli pointed out that "the Central Bank floundered in the rise of the dollar, which directly affected the simple Iraqi citizen in his strength and daily livelihood."
For a period of 4 months.. America renews its permission for Iraq to pay money to Iran in exchange for electricity
senior US State Department officials announced that Secretary Anthony Blinken signed the decision to extend Iraq’s exemption from sanctions imposed on Iran for a period of 120 days to pay electricity revenues imported from Iran.
The two officials explained that this extension is the twenty-first since 2018 and that it cannot be ...Iran“Use funds restricted in Iraqi banks except in humanitarian and other non-sanctioned transactions.
One American official said, “In the past two years we have witnessed that the governmentIraqSignificant progress has been made towards energy self-sufficiency. It is unfortunate thatIraqIt will not wean itself from Iranian gas imports overnight. Renewing the exemption is necessary to provide space and time for the governmentIraqTo implement the Prime Minister’s ambitious agenda to reform the energy sector.”
The American official stated that this measure “aims to reduce Iranian influence on...Iraq. This does not mean any change in our policy towards...Iran. Nothing has changed regardingIran. We will not lift any sanctionsIran. We do not make any changes grantedIran“Any money or different access to money that she already had.”
He added, “We saw thatIranShe was using it as leverage to cut off the electricityIraqAnd putting pressure on them in ways that was really harmful to our policy in the region, and continues to be so, and our efforts to respond to the behaviorIrandestabilizing the region. Therefore, at the request of the Iraqis, we were working to expedite the transfer of this money abroadIraqSo that he is not exposed to Iranian pressure.
Another official said, “There is a path in which we have closely coordinated with the Sultanate of Oman to allow the transfer of some of this money fromIraqTo Oman through European correspondent banks.
He stressed that “it will not be ...IranFree access to these funds. And there is very strict control. The Treasury Department has been involved in this process every step of the way.”
The two US officials revealed that the funds in the Iranian accounts were frozen in...IraqIt amounts to about ten billion dollars.
And about what some experts sayIranIt buys humanitarian items and then sells them in Iraqi, Syrian and Lebanese markets to obtain funds. “I would say that we have maintained very close scrutiny of the transactions and our colleagues at the Treasury specifically are monitoring that and providing the processes to move the transactions forward,” said one State Department official. "An event of which we are aware we will take steps to disallow such transactions from continuing with any entities involved in this type of dynamic."
And about the money that South Korea transferred toIranThrough Qatar, which amounts to about six billion dollars and led to the release of American hostages fromIranIn exchange for the release of Iranian prisoners from American prisons, an American official confirmed that this money had not yet been disbursed.
Speaking to reporters on condition of anonymity, the officials stressed that the money can only be used for “non-sanctioned transactions” such as purchasing food or agricultural products, according to Reuters
They also sought to mitigate criticism, especially from Republicans in Congress, by saying that GrantIranHaving greater access to these funds frees up amounts that Tehran can spend on armed groups attacking US forces or on its nuclear program.
These amounts are estimated at approximately ten billion dollars in payments accumulated inIraq.
Officials explained that their main goal is to reduce Iranian influence inIraq. Tehran has in the past pressured Baghdad to obtain permissionUnited StateTo release these funds by stopping natural gas exports toIraqThis limited its ability to generate energy and caused power outages in the country, arousing citizens’ dissatisfaction.
This move may also be controversial because Washington asked Baghdad to curb attacks on American forces inIraqlaunched by armed groups allied withIranThe results were mixed. One American official said that American requests to Iraq “are being worked on.”
Independent MP Nazem Al-Shibli warned today, Wednesday, of the dangers of printing a new monetary mass, stressing that the rise in the price of the dollar has harmed the livelihood of a segment of poor citizens.
Al-Shibli said in a statement received by Mawazine News, "This step may lead to the erosion of the value of the Iraqi dinar, especially in light of the governor's failure to manage monetary policy."
He added, "Central Bank Governor Ali Al-Alaq failed to manage the crisis and is unable to achieve stability in the value of the Iraqi dinar," pointing out that "printing a new monetary mass will lead to adverse damage."
Al-Shibli pointed out that "the Central Bank floundered in the rise of the dollar, which directly affected the simple Iraqi citizen in his strength and daily livelihood."
For a period of 4 months.. America renews its permission for Iraq to pay money to Iran in exchange for electricity
senior US State Department officials announced that Secretary Anthony Blinken signed the decision to extend Iraq’s exemption from sanctions imposed on Iran for a period of 120 days to pay electricity revenues imported from Iran.
The two officials explained that this extension is the twenty-first since 2018 and that it cannot be ...Iran“Use funds restricted in Iraqi banks except in humanitarian and other non-sanctioned transactions.
One American official said, “In the past two years we have witnessed that the governmentIraqSignificant progress has been made towards energy self-sufficiency. It is unfortunate thatIraqIt will not wean itself from Iranian gas imports overnight. Renewing the exemption is necessary to provide space and time for the governmentIraqTo implement the Prime Minister’s ambitious agenda to reform the energy sector.”
The American official stated that this measure “aims to reduce Iranian influence on...Iraq. This does not mean any change in our policy towards...Iran. Nothing has changed regardingIran. We will not lift any sanctionsIran. We do not make any changes grantedIran“Any money or different access to money that she already had.”
He added, “We saw thatIranShe was using it as leverage to cut off the electricityIraqAnd putting pressure on them in ways that was really harmful to our policy in the region, and continues to be so, and our efforts to respond to the behaviorIrandestabilizing the region. Therefore, at the request of the Iraqis, we were working to expedite the transfer of this money abroadIraqSo that he is not exposed to Iranian pressure.
Another official said, “There is a path in which we have closely coordinated with the Sultanate of Oman to allow the transfer of some of this money fromIraqTo Oman through European correspondent banks.
He stressed that “it will not be ...IranFree access to these funds. And there is very strict control. The Treasury Department has been involved in this process every step of the way.”
The two US officials revealed that the funds in the Iranian accounts were frozen in...IraqIt amounts to about ten billion dollars.
And about what some experts sayIranIt buys humanitarian items and then sells them in Iraqi, Syrian and Lebanese markets to obtain funds. “I would say that we have maintained very close scrutiny of the transactions and our colleagues at the Treasury specifically are monitoring that and providing the processes to move the transactions forward,” said one State Department official. "An event of which we are aware we will take steps to disallow such transactions from continuing with any entities involved in this type of dynamic."
And about the money that South Korea transferred toIranThrough Qatar, which amounts to about six billion dollars and led to the release of American hostages fromIranIn exchange for the release of Iranian prisoners from American prisons, an American official confirmed that this money had not yet been disbursed.
Speaking to reporters on condition of anonymity, the officials stressed that the money can only be used for “non-sanctioned transactions” such as purchasing food or agricultural products, according to Reuters
They also sought to mitigate criticism, especially from Republicans in Congress, by saying that GrantIranHaving greater access to these funds frees up amounts that Tehran can spend on armed groups attacking US forces or on its nuclear program.
These amounts are estimated at approximately ten billion dollars in payments accumulated inIraq.
Officials explained that their main goal is to reduce Iranian influence inIraq. Tehran has in the past pressured Baghdad to obtain permissionUnited StateTo release these funds by stopping natural gas exports toIraqThis limited its ability to generate energy and caused power outages in the country, arousing citizens’ dissatisfaction.
This move may also be controversial because Washington asked Baghdad to curb attacks on American forces inIraqlaunched by armed groups allied withIranThe results were mixed. One American official said that American requests to Iraq “are being worked on.”
Economists: Government measures gradually reduced the dollar exchange rates
With the start of announcing the package of measures to address the difference in the exchange rate, and its spread in the media, the dollar exchange rates began to gradually decline below 160 thousand dinars for every 100 dollars.
While economists praised this package, which they described as strict, limiting speculators in exchange rates, putting the wheel of dollar prices on the right track and returning them to what they were before.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed to the Iraqi News Agency (INA), that “the country’s foreign currency reserve is the largest in Iraq’s financial history and exceeds 100 billion dollars, as it constitutes the central reserve wallet for Iraq,” indicating that “market demand to finance exchanges Foreign exchange for the private sector is done through those official reserves that the monetary authority displays through its platform at the official exchange rate of 1,320 dinars per dollar.
He added, "The high commercial efficiency of the country's foreign currency reserves has its highest standard indicators for a period of more than (fifteen commercial months), while the global standard is about (three months)."
He added, "At a time when the demand for foreign currency is financed through the Central Bank of Iraq platform and bank balances are enhanced in various foreign currencies to finance private sector foreign trade, which constitutes 85% or more of the actual need of the demand for external transfer and in accordance with governance rules and standards." Globally, despite this, there is a demand for the cash dollar to finance commercial operations of very specific commodities that do not exceed five commodities, and forces from within the market are trying to purchase them from outside the official commercial mechanisms by resorting to obtaining the cash dollar from the parallel market (which is the market that does not It constitutes only 10% of the demand for foreign currency allocated for travel outside the country to finance its informal trade.
He continued, "These are commercial actions that are not legally recognized by the financial, commercial and banking departments and are carried out for many reasons, including tax or customs evasion or evasion of inspection and quality control procedures."
He pointed out that "the economic policy in general and the monetary policy in particular have all the economic capabilities to control the noise of the parallel market, which is represented by combating illegal commercial activities above all, as the state currently undertakes the policy of defending economic stability, especially in providing sufficient commodity supply for the goods that... It affects the life of the citizen directly, at moderate prices, financed at an exchange rate of 1,320 dinars per dollar on a permanent basis, and in two directions.
The first: providing additional supportive food and medicine baskets, construction baskets, and high-demand spare parts, and selling them at the official stable exchange rate through the cooperation mechanism between the commercial arm of the state and the national private sector, and
the second: The monetary authority has adopted new mechanisms by providing liquid foreign currencies in addition to the dollar currency (and from a basket of various foreign currencies) to meet travel needs according to the traveler’s destination, especially for Hajj, Umrah, and tourism in its various aspects and for various neighboring and distant countries, in addition to facilitating the use of payment cards with very high flexibility.”
He pointed out that "the policy package aims to contain the noise made by foreign currency speculators in the parallel market in order to profit at the expense of economic stability," noting that "the basic trends in economic policy are currently being implemented by isolating the effects of the parallel or black market and limiting its illegal activities from stability." The overall price system in the country.
For his part, a member of the Parliamentary Finance Committee, Mustafa Al-Garawi, said, “The more bank accounts are
strengthened and the number of outlets through which the dollar is financed increases, this will lead to the provision of a larger amount of currency and thus the pressure on it within the markets will decrease and lead to relative stability and a decrease in the exchange rate.” ".
He explained, "Government measures regarding control of ports, customs, and import procedures, as well as the Ministry of
Commerce's procedures and control of imported materials, will prevent citizens' need to use the dollar and import from countries outside the window."
While the financial and economic expert, Safwan Qusay Abdel Halim, pointed out that “the Central Bank seeks to approach the Iraqi market’s need for foreign currencies, especially since many Iraqi traders deal with the Asian markets, whether Chinese or Indian, as well as with the Gulf markets through the United Arab Emirates and even The Kingdom of Saudi Arabia, as well as dealings with the European Union and Turkey.”
He added, "The presence of a basket of foreign currencies, the Chinese yuan and the Indian rupee, will contribute to reducing the period of external financial transfers through the electronic platform, as these selected banks will have their balances enhanced through Citibank and JP Morgan, so that there will be direct payment through the banks." Jordanian foreign currencies to correspondent banks for suppliers.
He added, "We look forward to this measure being able to encourage Iraqi merchants, whether in Baghdad and the provinces or in the Kurdistan region, to accelerate the investment of these advantages to obtain commercial licenses and deal directly and quickly through these banks to transfer money to suppliers, thus ensuring a decline in demand for the dollar in the informal market." Gradually, it is possible that the Iraqi dinar will support such policies.”
He called on "Iraqi merchants to comply with the documents required of them that are consistent with the desire of the American Federal Reserve and the electronic platform to ensure the nature of the supply and that the supplier is not subject to penalties for the high-risk system to ensure the smooth facilitation of transfers and documentary credits, in addition to providing merchants with heavy-type contracts with originators." Rasina is subject to the transfer system via documentary credits so that we can achieve financial stability.”
He continued, "It is possible to force the local markets, in their various sectors, to submit to the official prices, and this will certainly contribute to stopping speculators engaging in irregular transactions and controlling the local markets."
In this regard, economic expert Nabil Jabbar Al-Tamimi said: “The set of measures presented by the government and the central bank includes several courses of action, addressing the exchange rate crisis and resolving internal issues related to the inability of traders to enter the platform and facilitating procedures,” pointing out that “the negotiations conducted by... The Central Bank with the American side in Abu Dhabi, and also concluded multiple agreements, as well as dealing in many currencies, are all positive messages sent by the government to the market, merchants, and banks to facilitate the work of dollar trading and currency exchange, and as a result, they give messages that can reduce the exchange rate. Therefore, these measures had a positive impact on market fluctuations and the decline in the price. Exchange".
He pointed out that "it is possible that the dollar exchange rate will decline further until the official price is reached, especially if serious work is done to resolve this issue in cooperation with the government and the Central Bank."
In turn, economic expert Ahmed Abd Rabbo stressed that “the reform packages launched by the Central Bank have had a positive impact on the parallel market,” noting that “there is a need to significantly restore confidence in the banking system and for there to be consultative decisions that take consultation between the Central Bank and the banks.” Civil society and even government banks.
He pointed out that "there must be more measures, including finding an appropriate formula for negotiation and continuing negotiations with the American side and with the Ministry of the Treasury in order for the dollar payments to arrive in a timely manner. We must also work to prevent smuggling operations and to control the borders in order to prevent the exit of the dollar illegally." Official".
For his part, economic expert Osama Al-Tamimi said: “The steps taken by the government and the central bank had a rapid impact on the decline in the dollar exchange rate in the past two days,” stressing “the importance of the government taking strong legal deterrent measures in cooperation with the judicial and legislative authorities to deter those causing harm to the economy.” The National Bank and close all doors and roads to put an end to speculators who may take other methods to try to prove their presence again and benefit in a distorted way at the expense of the citizen.
Yesterday, Tuesday, a government source revealed a package of measures to address the difference in the exchange rate, while indicating that Prime Minister Muhammad Shiaa Al-Sudani directed the activation of a committee to hold serious discussions with the US Treasury Department regarding transfers.
The government source stated to the Iraqi News Agency (INA), that “the government has taken a package of measures to address the difference in the exchange rate, including: organizing the import process and ensuring the entry of the largest number of merchants and importers to the foreign currency sales window by facilitating account opening procedures, deposit operations, and other procedures related to issuing... The identity of the importer, which would facilitate the “Know Your Customer” requirements for the category of merchants and importers,” noting that “there are ongoing negotiations between the government and the Central Bank with the Iranian side to regulate trade between the two countries and make the best options regarding payment of dues and amounts, and discussions are taking place at a good pace.”
He added, "Prime Minister Muhammad Shiaa Al-Sudani directed to work on a number of important projects to ensure that the poor and middle-income groups are not affected by the exchange rate difference, as the Ministries of Commerce and Health are working to import important materials and provide them in Iraqi dinars at stable prices, an example of which is the food basket project (Al-Sandah at stable prices). ), the pharmaceutical basket, the construction basket, and the basket of reserve materials for the transportation sector, some of which work began some time ago.”
He continued, "The government is now working on an (equal deal) project to exchange trade and imports with some countries, such as China and India, and in their own currencies from Iraq's main trading partners, such as India, China, and some neighboring countries," pointing out that "the government is currently studying the establishment of a free zone to import materials, and from... Then market it to the private sector and ensure its delivery to the consumer at competitive prices and in the Iraqi dinar. The government is also currently studying a re-export project, and there are important discussions in this regard.”
He pointed out that "the government issued a series of measures to develop electronic payment systems and reduce dependence on cash. It will also issue in the coming days a series of other decisions related to pricing and incentive policy for services provided through electronic payment."
He explained, "Prime Minister Muhammad Shiaa Al-Sudani directed the activation of a joint committee between the government, the central bank, and the private sector, under the supervision of his office, to hold serious discussions with the US Treasury regarding transfers through the foreign currency sales window, and the committee has begun its meetings from now."
He pointed out that "the government is holding ongoing discussions with the Central Bank of Iraq regarding a number of topics, including facilitating procedures related to Iraqi banks importing the (cash) dollar. This process has already begun with some banks importing the dollar, and the process will expand to include other banks, and work is also underway." To proceed with concluding agreements to supply the currencies of some countries to be provided through banks and banking companies to meet the needs of Iraqi tourists and pilgrims going to those countries without the dollar currency.
Earlier, a government source revealed an Iraqi-American agreement to strengthen the dollar balance of 10 banks.
The source told the Iraqi News Agency (INA): “In light of the recent meetings of the Central Bank with the American side, the number of banks whose balance can be directly strengthened in US dollars has become 10 banks, five of which are through Citi Bank, and the other 5 are through JP Morgan Bank .
He added, "The number of banks whose balances in the Chinese yuan will be strengthened through the Singapore Development Bank will become 13," explaining that "the banks that have strengthened their accounts in Indian rupees with the Singapore Development Bank are two, and other banks will be added during the next two weeks."
With the start of announcing the package of measures to address the difference in the exchange rate, and its spread in the media, the dollar exchange rates began to gradually decline below 160 thousand dinars for every 100 dollars.
While economists praised this package, which they described as strict, limiting speculators in exchange rates, putting the wheel of dollar prices on the right track and returning them to what they were before.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed to the Iraqi News Agency (INA), that “the country’s foreign currency reserve is the largest in Iraq’s financial history and exceeds 100 billion dollars, as it constitutes the central reserve wallet for Iraq,” indicating that “market demand to finance exchanges Foreign exchange for the private sector is done through those official reserves that the monetary authority displays through its platform at the official exchange rate of 1,320 dinars per dollar.
He added, "The high commercial efficiency of the country's foreign currency reserves has its highest standard indicators for a period of more than (fifteen commercial months), while the global standard is about (three months)."
He added, "At a time when the demand for foreign currency is financed through the Central Bank of Iraq platform and bank balances are enhanced in various foreign currencies to finance private sector foreign trade, which constitutes 85% or more of the actual need of the demand for external transfer and in accordance with governance rules and standards." Globally, despite this, there is a demand for the cash dollar to finance commercial operations of very specific commodities that do not exceed five commodities, and forces from within the market are trying to purchase them from outside the official commercial mechanisms by resorting to obtaining the cash dollar from the parallel market (which is the market that does not It constitutes only 10% of the demand for foreign currency allocated for travel outside the country to finance its informal trade.
He continued, "These are commercial actions that are not legally recognized by the financial, commercial and banking departments and are carried out for many reasons, including tax or customs evasion or evasion of inspection and quality control procedures."
He pointed out that "the economic policy in general and the monetary policy in particular have all the economic capabilities to control the noise of the parallel market, which is represented by combating illegal commercial activities above all, as the state currently undertakes the policy of defending economic stability, especially in providing sufficient commodity supply for the goods that... It affects the life of the citizen directly, at moderate prices, financed at an exchange rate of 1,320 dinars per dollar on a permanent basis, and in two directions.
The first: providing additional supportive food and medicine baskets, construction baskets, and high-demand spare parts, and selling them at the official stable exchange rate through the cooperation mechanism between the commercial arm of the state and the national private sector, and
the second: The monetary authority has adopted new mechanisms by providing liquid foreign currencies in addition to the dollar currency (and from a basket of various foreign currencies) to meet travel needs according to the traveler’s destination, especially for Hajj, Umrah, and tourism in its various aspects and for various neighboring and distant countries, in addition to facilitating the use of payment cards with very high flexibility.”
He pointed out that "the policy package aims to contain the noise made by foreign currency speculators in the parallel market in order to profit at the expense of economic stability," noting that "the basic trends in economic policy are currently being implemented by isolating the effects of the parallel or black market and limiting its illegal activities from stability." The overall price system in the country.
For his part, a member of the Parliamentary Finance Committee, Mustafa Al-Garawi, said, “The more bank accounts are
strengthened and the number of outlets through which the dollar is financed increases, this will lead to the provision of a larger amount of currency and thus the pressure on it within the markets will decrease and lead to relative stability and a decrease in the exchange rate.” ".
He explained, "Government measures regarding control of ports, customs, and import procedures, as well as the Ministry of
Commerce's procedures and control of imported materials, will prevent citizens' need to use the dollar and import from countries outside the window."
While the financial and economic expert, Safwan Qusay Abdel Halim, pointed out that “the Central Bank seeks to approach the Iraqi market’s need for foreign currencies, especially since many Iraqi traders deal with the Asian markets, whether Chinese or Indian, as well as with the Gulf markets through the United Arab Emirates and even The Kingdom of Saudi Arabia, as well as dealings with the European Union and Turkey.”
He added, "The presence of a basket of foreign currencies, the Chinese yuan and the Indian rupee, will contribute to reducing the period of external financial transfers through the electronic platform, as these selected banks will have their balances enhanced through Citibank and JP Morgan, so that there will be direct payment through the banks." Jordanian foreign currencies to correspondent banks for suppliers.
He added, "We look forward to this measure being able to encourage Iraqi merchants, whether in Baghdad and the provinces or in the Kurdistan region, to accelerate the investment of these advantages to obtain commercial licenses and deal directly and quickly through these banks to transfer money to suppliers, thus ensuring a decline in demand for the dollar in the informal market." Gradually, it is possible that the Iraqi dinar will support such policies.”
He called on "Iraqi merchants to comply with the documents required of them that are consistent with the desire of the American Federal Reserve and the electronic platform to ensure the nature of the supply and that the supplier is not subject to penalties for the high-risk system to ensure the smooth facilitation of transfers and documentary credits, in addition to providing merchants with heavy-type contracts with originators." Rasina is subject to the transfer system via documentary credits so that we can achieve financial stability.”
He continued, "It is possible to force the local markets, in their various sectors, to submit to the official prices, and this will certainly contribute to stopping speculators engaging in irregular transactions and controlling the local markets."
In this regard, economic expert Nabil Jabbar Al-Tamimi said: “The set of measures presented by the government and the central bank includes several courses of action, addressing the exchange rate crisis and resolving internal issues related to the inability of traders to enter the platform and facilitating procedures,” pointing out that “the negotiations conducted by... The Central Bank with the American side in Abu Dhabi, and also concluded multiple agreements, as well as dealing in many currencies, are all positive messages sent by the government to the market, merchants, and banks to facilitate the work of dollar trading and currency exchange, and as a result, they give messages that can reduce the exchange rate. Therefore, these measures had a positive impact on market fluctuations and the decline in the price. Exchange".
He pointed out that "it is possible that the dollar exchange rate will decline further until the official price is reached, especially if serious work is done to resolve this issue in cooperation with the government and the Central Bank."
In turn, economic expert Ahmed Abd Rabbo stressed that “the reform packages launched by the Central Bank have had a positive impact on the parallel market,” noting that “there is a need to significantly restore confidence in the banking system and for there to be consultative decisions that take consultation between the Central Bank and the banks.” Civil society and even government banks.
He pointed out that "there must be more measures, including finding an appropriate formula for negotiation and continuing negotiations with the American side and with the Ministry of the Treasury in order for the dollar payments to arrive in a timely manner. We must also work to prevent smuggling operations and to control the borders in order to prevent the exit of the dollar illegally." Official".
For his part, economic expert Osama Al-Tamimi said: “The steps taken by the government and the central bank had a rapid impact on the decline in the dollar exchange rate in the past two days,” stressing “the importance of the government taking strong legal deterrent measures in cooperation with the judicial and legislative authorities to deter those causing harm to the economy.” The National Bank and close all doors and roads to put an end to speculators who may take other methods to try to prove their presence again and benefit in a distorted way at the expense of the citizen.
Yesterday, Tuesday, a government source revealed a package of measures to address the difference in the exchange rate, while indicating that Prime Minister Muhammad Shiaa Al-Sudani directed the activation of a committee to hold serious discussions with the US Treasury Department regarding transfers.
The government source stated to the Iraqi News Agency (INA), that “the government has taken a package of measures to address the difference in the exchange rate, including: organizing the import process and ensuring the entry of the largest number of merchants and importers to the foreign currency sales window by facilitating account opening procedures, deposit operations, and other procedures related to issuing... The identity of the importer, which would facilitate the “Know Your Customer” requirements for the category of merchants and importers,” noting that “there are ongoing negotiations between the government and the Central Bank with the Iranian side to regulate trade between the two countries and make the best options regarding payment of dues and amounts, and discussions are taking place at a good pace.”
He added, "Prime Minister Muhammad Shiaa Al-Sudani directed to work on a number of important projects to ensure that the poor and middle-income groups are not affected by the exchange rate difference, as the Ministries of Commerce and Health are working to import important materials and provide them in Iraqi dinars at stable prices, an example of which is the food basket project (Al-Sandah at stable prices). ), the pharmaceutical basket, the construction basket, and the basket of reserve materials for the transportation sector, some of which work began some time ago.”
He continued, "The government is now working on an (equal deal) project to exchange trade and imports with some countries, such as China and India, and in their own currencies from Iraq's main trading partners, such as India, China, and some neighboring countries," pointing out that "the government is currently studying the establishment of a free zone to import materials, and from... Then market it to the private sector and ensure its delivery to the consumer at competitive prices and in the Iraqi dinar. The government is also currently studying a re-export project, and there are important discussions in this regard.”
He pointed out that "the government issued a series of measures to develop electronic payment systems and reduce dependence on cash. It will also issue in the coming days a series of other decisions related to pricing and incentive policy for services provided through electronic payment."
He explained, "Prime Minister Muhammad Shiaa Al-Sudani directed the activation of a joint committee between the government, the central bank, and the private sector, under the supervision of his office, to hold serious discussions with the US Treasury regarding transfers through the foreign currency sales window, and the committee has begun its meetings from now."
He pointed out that "the government is holding ongoing discussions with the Central Bank of Iraq regarding a number of topics, including facilitating procedures related to Iraqi banks importing the (cash) dollar. This process has already begun with some banks importing the dollar, and the process will expand to include other banks, and work is also underway." To proceed with concluding agreements to supply the currencies of some countries to be provided through banks and banking companies to meet the needs of Iraqi tourists and pilgrims going to those countries without the dollar currency.
Earlier, a government source revealed an Iraqi-American agreement to strengthen the dollar balance of 10 banks.
The source told the Iraqi News Agency (INA): “In light of the recent meetings of the Central Bank with the American side, the number of banks whose balance can be directly strengthened in US dollars has become 10 banks, five of which are through Citi Bank, and the other 5 are through JP Morgan Bank .
He added, "The number of banks whose balances in the Chinese yuan will be strengthened through the Singapore Development Bank will become 13," explaining that "the banks that have strengthened their accounts in Indian rupees with the Singapore Development Bank are two, and other banks will be added during the next two weeks."
Source: Iraqi-Turkish discussions result in 4 points to regulate trade between the two countries
A source in the Iraqi government stated, today, Thursday, that discussions took place with Turkey to regulate trade between the two countries through approved legal and banking methods and means.
The source said in a statement circulated to the media, including Shafaq News Agency, that, “In order to organize trade exchange between Iraq and Turkey on better foundations and standards to ensure containing the pressure on the parallel market and the demand for the cash dollar to feed some aspects of trade exchange between the two countries, the Prime Minister directed that discussions be held.” Wide with the Turkish side.
He added, "An expanded meeting took place on Wednesday, November 15, 2023, which included the Central Bank of Iraq and a number of advisors to the Prime Minister, while the Turkish side included a delegation headed by the Turkish ambassador, Turkish banks operating in Iraq, and a representative of the Turkish private sector."
According to the source, the discussions resulted in the following points:
1- The importance of the Turkish customs authorities matching the transfer documents with the goods supplied to Iraq at the Turkish customs points in a way that protects the interests and stability of trade between the two countries.
2- Linking Turkish exports to bank transfer documents through Turkish border crossings serves the Iraqi economy, as Iraqi merchants will resort and encourage financial transfers through the banking system instead of using parallel market tools and the cash dollar to finance their trade with Turkey.
3- For its part, the Central Bank of Iraq expressed its readiness to facilitate external transfer procedures by activating the relationship between the branches of Iraqi banks in Turkey and the branches of Turkish banks in Iraq in terms of feeding accounts in foreign currency and financing foreign trade between the two countries.
4- The issue of facilitating the use of credit cards in the Turkish banking market in an accessible way for Iraqi residents and tourists was also discussed.
The source confirmed that these measures aim to regulate and stabilize trade between the two friendly countries through approved legal and banking methods and means.
A source in the Iraqi government stated, today, Thursday, that discussions took place with Turkey to regulate trade between the two countries through approved legal and banking methods and means.
The source said in a statement circulated to the media, including Shafaq News Agency, that, “In order to organize trade exchange between Iraq and Turkey on better foundations and standards to ensure containing the pressure on the parallel market and the demand for the cash dollar to feed some aspects of trade exchange between the two countries, the Prime Minister directed that discussions be held.” Wide with the Turkish side.
He added, "An expanded meeting took place on Wednesday, November 15, 2023, which included the Central Bank of Iraq and a number of advisors to the Prime Minister, while the Turkish side included a delegation headed by the Turkish ambassador, Turkish banks operating in Iraq, and a representative of the Turkish private sector."
According to the source, the discussions resulted in the following points:
1- The importance of the Turkish customs authorities matching the transfer documents with the goods supplied to Iraq at the Turkish customs points in a way that protects the interests and stability of trade between the two countries.
2- Linking Turkish exports to bank transfer documents through Turkish border crossings serves the Iraqi economy, as Iraqi merchants will resort and encourage financial transfers through the banking system instead of using parallel market tools and the cash dollar to finance their trade with Turkey.
3- For its part, the Central Bank of Iraq expressed its readiness to facilitate external transfer procedures by activating the relationship between the branches of Iraqi banks in Turkey and the branches of Turkish banks in Iraq in terms of feeding accounts in foreign currency and financing foreign trade between the two countries.
4- The issue of facilitating the use of credit cards in the Turkish banking market in an accessible way for Iraqi residents and tourists was also discussed.
The source confirmed that these measures aim to regulate and stabilize trade between the two friendly countries through approved legal and banking methods and means.
An economic expert expects a "new" decline in the price of the US dollar to reach 1,450 Iraqi dinars
Financial and economic expert Abdul Rahman Al-Mashhadani predicted on Thursday that the dollar exchange rate will witness a new decline to reach 145,000 Iraqi dinars against 100 dollars, attributing this to the measures taken by the Central Bank of Iraq in agreement with the Federal Reserve Bank.
Al-Mashhadani said in an interview with Shafaq News Agency, “The meeting that took place in the city of Abu Dhabi in the United Arab Emirates, and allowing 10 banks to carry out transfer operations directly through correspondent banks and with scrutiny from the American banks JP Morgan and Citibank and the Central Bank will only undertake the task of enhancing the balance will facilitate the process.” Passing the transfers as quickly as possible because this process does not pass through the electronic platform of the Central Bank and is not subject to the scrutiny of the Federal Reserve Bank.”
He added, "The American banks JP Morgan and Citibank are charged with additional auditing of transfers with the Federal Reserve Bank's audit. This will facilitate the process of the transfer arriving as quickly as possible because it will most likely be done through correspondent banks that have partnerships with Iraqi banks."
On the other hand; Al-Mashhadani indicated that the Central Bank allowed banks to import and bring remittances belonging to foreign companies, international organizations, and diplomatic missions operating in Iraq through Iraqi banks, meaning that these are companies that have bank accounts in Iraqi banks, so these banks are allowed to bring remittances to these companies,” noting that “ Last night, a shipment worth 100 million dollars entered, and it is the first shipment that will enter the local parallel market and will pay the salaries of workers in these companies, as well as contracts with Iraqi companies that supply materials and needs to these companies because they spend in Iraqi dinars.”
Financial and economic expert Abdul Rahman Al-Mashhadani predicted on Thursday that the dollar exchange rate will witness a new decline to reach 145,000 Iraqi dinars against 100 dollars, attributing this to the measures taken by the Central Bank of Iraq in agreement with the Federal Reserve Bank.
Al-Mashhadani said in an interview with Shafaq News Agency, “The meeting that took place in the city of Abu Dhabi in the United Arab Emirates, and allowing 10 banks to carry out transfer operations directly through correspondent banks and with scrutiny from the American banks JP Morgan and Citibank and the Central Bank will only undertake the task of enhancing the balance will facilitate the process.” Passing the transfers as quickly as possible because this process does not pass through the electronic platform of the Central Bank and is not subject to the scrutiny of the Federal Reserve Bank.”
He added, "The American banks JP Morgan and Citibank are charged with additional auditing of transfers with the Federal Reserve Bank's audit. This will facilitate the process of the transfer arriving as quickly as possible because it will most likely be done through correspondent banks that have partnerships with Iraqi banks."
On the other hand; Al-Mashhadani indicated that the Central Bank allowed banks to import and bring remittances belonging to foreign companies, international organizations, and diplomatic missions operating in Iraq through Iraqi banks, meaning that these are companies that have bank accounts in Iraqi banks, so these banks are allowed to bring remittances to these companies,” noting that “ Last night, a shipment worth 100 million dollars entered, and it is the first shipment that will enter the local parallel market and will pay the salaries of workers in these companies, as well as contracts with Iraqi companies that supply materials and needs to these companies because they spend in Iraqi dinars.”
Al-Sudani directs to hold broad trade discussions with Türkiye and facilitate banking dealings with it
A government source revealed that Prime Minister Muhammad Shiaa Al-Sudani directed that broad discussions be held with the Turkish side to organize trade exchange.
The source stated in a press statement that "the Iraqi and Turkish sides held an expanded meeting yesterday, Wednesday," noting that "the meeting included the importance of the Turkish customs authorities matching the transfer documents with the goods supplied to Iraq at the Turkish customs points."
He pointed out that "linking Turkish exports to bank transfer documents through Turkish border crossings," noting that "the Central Bank of Iraq has confirmed its readiness to facilitate external transfer procedures by activating the relationship between the branches of Iraqi banks in Turkey and the branches of Turkish banks in Iraq in terms of feeding accounts in foreign currency and financing Foreign trade between the two countries.
He stressed, "Discussing the issue of facilitating the use of credit cards in the Turkish banking market in a way that is convenient for Iraqi residents and tourists."
A government source revealed that Prime Minister Muhammad Shiaa Al-Sudani directed that broad discussions be held with the Turkish side to organize trade exchange.
The source stated in a press statement that "the Iraqi and Turkish sides held an expanded meeting yesterday, Wednesday," noting that "the meeting included the importance of the Turkish customs authorities matching the transfer documents with the goods supplied to Iraq at the Turkish customs points."
He pointed out that "linking Turkish exports to bank transfer documents through Turkish border crossings," noting that "the Central Bank of Iraq has confirmed its readiness to facilitate external transfer procedures by activating the relationship between the branches of Iraqi banks in Turkey and the branches of Turkish banks in Iraq in terms of feeding accounts in foreign currency and financing Foreign trade between the two countries.
He stressed, "Discussing the issue of facilitating the use of credit cards in the Turkish banking market in a way that is convenient for Iraqi residents and tourists."
Iraq becomes a shareholder in the European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development said on Thursday that Iraq has become the 74th member of the multilateral lender, while Ghana and Senegal have applied to join.
Iraq applied to join the bank for the first time in 2018, and its status as a shareholder enables it to apply to become a recipient economy, which would provide financing and political support from the bank.
“When the time is right, we look forward to starting work in Iraq and applying our experience to developing its economy,” Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, said in a statement. Reuters also reported that Ghana and Senegal had submitted two applications to join.
The European Bank for Reconstruction and Development said on Thursday that Iraq has become the 74th member of the multilateral lender, while Ghana and Senegal have applied to join.
Iraq applied to join the bank for the first time in 2018, and its status as a shareholder enables it to apply to become a recipient economy, which would provide financing and political support from the bank.
“When the time is right, we look forward to starting work in Iraq and applying our experience to developing its economy,” Odile Renaud-Basso, President of the European Bank for Reconstruction and Development, said in a statement. Reuters also reported that Ghana and Senegal had submitted two applications to join.
Launching an electronic payment card for owners of gas stations and laboratories of all kinds
The Petroleum Products Distribution Company announced the launch of an electronic payment card for owners of fuel filling stations and private sector factories to facilitate the financial fulfillment and processing processes.
The Director General of the Products Distribution Company, Hussein Talib, said in a statement: “The current project is part of a package of projects adopted by the company to automate the distribution sector, indicating that the current service will replace the handling of cash and turn it into an electronic service in cooperation with Rafidain Bank.”
Talib confirmed that the company will proceed with implementing the government program related to the automation of the distribution sector, pointing to other services that will be introduced in the coming days, calling on everyone to cooperate to make this mission a success, while revealing motivational steps that will accelerate the transition towards electronic culture and abandoning cash dealing
A source: Private banks and exchange companies express their preparations to reduce the exchange rate
Today, Thursday, a source revealed moves being made by the private banking sector and exchange companies aimed at raising the value of the dinar against the dollar.
The source, who preferred to remain anonymous, said in an interview with Al-Eqtisad News, “ Private banks and exchange companies are showing great preparations, collectively and in coordination, to reduce the price of the dollar ,” noting that “this will be through expanding engagement with the official market and its high capabilities.”
He added, "There are ongoing meetings to discuss several options that the market will undertake by itself to impose stability in the exchange rate .
The Petroleum Products Distribution Company announced the launch of an electronic payment card for owners of fuel filling stations and private sector factories to facilitate the financial fulfillment and processing processes.
The Director General of the Products Distribution Company, Hussein Talib, said in a statement: “The current project is part of a package of projects adopted by the company to automate the distribution sector, indicating that the current service will replace the handling of cash and turn it into an electronic service in cooperation with Rafidain Bank.”
Talib confirmed that the company will proceed with implementing the government program related to the automation of the distribution sector, pointing to other services that will be introduced in the coming days, calling on everyone to cooperate to make this mission a success, while revealing motivational steps that will accelerate the transition towards electronic culture and abandoning cash dealing
A source: Private banks and exchange companies express their preparations to reduce the exchange rate
Today, Thursday, a source revealed moves being made by the private banking sector and exchange companies aimed at raising the value of the dinar against the dollar.
The source, who preferred to remain anonymous, said in an interview with Al-Eqtisad News, “ Private banks and exchange companies are showing great preparations, collectively and in coordination, to reduce the price of the dollar ,” noting that “this will be through expanding engagement with the official market and its high capabilities.”
He added, "There are ongoing meetings to discuss several options that the market will undertake by itself to impose stability in the exchange rate .
Ministry of Finance: Completing the final accounts of the budgets for the years from 2017 to 2019
Finance announces the completion of the final accounts of the budgets before their legal deadlines
Today, Monday (November 13, 2023), the Ministry of Finance announced the completion of the final accounts of the budgets before their legal dates.
The ministry stated in a statement received by “Baghdad Today” that “the ministry took the initiative, with the beginning of the work of the new government and in accordance with its government program, and under the directives of Prime Minister Muhammad Shia’ al-Sudani and Minister of Finance Taif Sami, to begin work on completing the final accounts of the budgets for the first time for the years from 2017 to 2019.” Which was sent to the Federal Office of Financial Supervision, stressing that “work is continuing to complete the final accounts for the years 2020 to 2022.”
She added, "Despite the complications that accompanied the process of issuing these accounts, the Ministry committed itself to exceptional efforts throughout the previous phase to complete the subject of the final accounts, in line with the provisions of the Iraqi Constitution, and the text of Article (62/First) of the Constitution, which stipulates that: “The Council of Ministers shall submit the general budget law and the final accounts to the House of Representatives for approval,” pursuant to the provisions of Article 34 of Financial Management Law No. 6 of 2019.
She pointed out that “this achievement constitutes a notable development in the corrective path of the financial policy within the government program, as the state’s final accounts reflect the processes of applying the general budget in accordance with the legal regulations, rules and financial instructions in force to show the state’s financial position with its collectible rights and obligatory obligations.” Payment.”
According to the statement, the Ministry affirmed its “commitment and keenness to complete and submit the final accounts with each budget, and to refer them to the House of Representatives for the purpose of approval, in implementation of the decision of the Federal Supreme Court, whose decisions are considered final and binding on all authorities based on the text of Article 94 of the Constitution.”
This is the article that was in Pakistani news
Today, Monday (November 13, 2023), the Ministry of Finance announced the completion of the final accounts of the budgets before their legal dates.
The ministry stated in a statement received by “Baghdad Today” that “the ministry took the initiative, with the beginning of the work of the new government and in accordance with its government program, and under the directives of Prime Minister Muhammad Shia’ al-Sudani and Minister of Finance Taif Sami, to begin work on completing the final accounts of the budgets for the first time for the years from 2017 to 2019.” Which was sent to the Federal Office of Financial Supervision, stressing that “work is continuing to complete the final accounts for the years 2020 to 2022.”
She added, "Despite the complications that accompanied the process of issuing these accounts, the Ministry committed itself to exceptional efforts throughout the previous phase to complete the subject of the final accounts, in line with the provisions of the Iraqi Constitution, and the text of Article (62/First) of the Constitution, which stipulates that: “The Council of Ministers shall submit the general budget law and the final accounts to the House of Representatives for approval,” pursuant to the provisions of Article 34 of Financial Management Law No. 6 of 2019.
She pointed out that “this achievement constitutes a notable development in the corrective path of the financial policy within the government program, as the state’s final accounts reflect the processes of applying the general budget in accordance with the legal regulations, rules and financial instructions in force to show the state’s financial position with its collectible rights and obligatory obligations.” Payment.”
According to the statement, the Ministry affirmed its “commitment and keenness to complete and submit the final accounts with each budget, and to refer them to the House of Representatives for the purpose of approval, in implementation of the decision of the Federal Supreme Court, whose decisions are considered final and binding on all authorities based on the text of Article 94 of the Constitution.”
This is the article that was in Pakistani news
Unshackling the Iraqi dinar
link this is from pakistan news
n January 1, 2024, Iraq will ban all transactions involving the US dollar. The primary objective behind this decision is to wrest control over a fluctuating black market exchange rate and bolster the utilisation of the Iraqi dinar. The catalyst for this transformation has been an extended bout of currency instability, culminating in escalating prices and waves of civil unrest over the past half-year. The dinar’s precarious trajectory has been further exacerbated since November 2022, largely attributed to stringent US regulations governing international money transfers. These measures stem from deliberations in Washington regarding the diversion of US dollars to Iran, Syria and Lebanon via Iraq’s Central Bank foreign currency auction. This strategic transition raises pertinent questions about the future standing of the US dollar as the predominant global reserve currency, hinting at the dawn of a more multipolar world order.
Iraq’s historical attachment to the US dollar for international dealings, reserve holdings and oil trading has been a longstanding tradition, but it comes with its set of complications. Iraq possesses over $100 billion in reserves parked in US banks, rendering it highly dependent on US officials’ goodwill to avert economic catastrophe. Since 2003, all revenues from Iraqi oil have been channeled into an account under the purview of the US Federal Reserve, effectively granting Washington a lever to influence Iraq’s economic landscape and exert political pressure. Furthermore, the capricious nature of the US dollar, combined with shifts in US fiscal policies and economic sanctions, has rendered Iraq susceptible to considerable financial vulnerabilities, eroding its monetary sovereignty and obstructing the pursuit of economic diversification.
Iraq’s shift towards de-dollarisation holds promise on multiple fronts. Firstly, diversifying currency reserves helps mitigate the risks associated with the oscillating value of the US dollar, bolstering economic stability. Additionally, the adoption of alternative currencies can pave the way for expanded trade prospects and draw investments from non-US quarters, fostering economic expansion and reducing susceptibility to geopolitical influences. Iraq’s de-dollarisation strategy is intrinsically tied to its pursuit of greater economic self-reliance and enhanced sovereignty. As it stands, the local currency, the Iraqi dinar, maintains an exchange rate of approximately 1,300 dinars per US dollar.
Iraq’s move to de-dollarise reflects a global trend where nations aim to reduce reliance on the US dollar in international trade. China and Russia spearhead this effort, advocating for the use of their currencies, the yuan and ruble, in global transactions. China’s recent purchase of LNG using the yuan from the UAE, and India’s agreement with the UAE to settle trade in rupees, exemplify this shift. Furthermore, the Brics New Development Bank is advancing de-dollarisation by welcoming new members such as the UAE, Saudi Arabia, Egypt, Argentina, Iran and Ethiopia and initiating a 3-year de-dollarisation plan, with a focus on fostering local currency lending, diminishing dependence on the dollar and further challenging its global reserve currency status.
China’s expanding economic influence in Iraq, closely linked to its BRI, plays a pivotal role in Iraq’s de-dollarisation journey. The BRI presents opportunities for trade, infrastructure growth and investments in Iraq. China actively promotes the internationalisation of the yuan which could assume a more substantial role in Iraq’s economy. However, it’s important to note that the yuan faces certain limitations, particularly due to capital controls that currently restrict fund transfers in and out of China. Despite Beijing’s ongoing efforts to enhance the international use of its currency, the yuan’s share in global trade transactions remains relatively modest at approximately 4.5%.
However, the question of whether the US dollar can maintain its status as the world’s primary reserve currency can no longer be disregarded. Despite the uncertainties that lie ahead, Iraq’s shift away from the dollar offers a glimpse into a changing world order, where the dollar’s supremacy encounters growing obstacles.
Published in The Express Tribune, November 14th, 2023.
link this is from pakistan news
n January 1, 2024, Iraq will ban all transactions involving the US dollar. The primary objective behind this decision is to wrest control over a fluctuating black market exchange rate and bolster the utilisation of the Iraqi dinar. The catalyst for this transformation has been an extended bout of currency instability, culminating in escalating prices and waves of civil unrest over the past half-year. The dinar’s precarious trajectory has been further exacerbated since November 2022, largely attributed to stringent US regulations governing international money transfers. These measures stem from deliberations in Washington regarding the diversion of US dollars to Iran, Syria and Lebanon via Iraq’s Central Bank foreign currency auction. This strategic transition raises pertinent questions about the future standing of the US dollar as the predominant global reserve currency, hinting at the dawn of a more multipolar world order.
Iraq’s historical attachment to the US dollar for international dealings, reserve holdings and oil trading has been a longstanding tradition, but it comes with its set of complications. Iraq possesses over $100 billion in reserves parked in US banks, rendering it highly dependent on US officials’ goodwill to avert economic catastrophe. Since 2003, all revenues from Iraqi oil have been channeled into an account under the purview of the US Federal Reserve, effectively granting Washington a lever to influence Iraq’s economic landscape and exert political pressure. Furthermore, the capricious nature of the US dollar, combined with shifts in US fiscal policies and economic sanctions, has rendered Iraq susceptible to considerable financial vulnerabilities, eroding its monetary sovereignty and obstructing the pursuit of economic diversification.
Iraq’s shift towards de-dollarisation holds promise on multiple fronts. Firstly, diversifying currency reserves helps mitigate the risks associated with the oscillating value of the US dollar, bolstering economic stability. Additionally, the adoption of alternative currencies can pave the way for expanded trade prospects and draw investments from non-US quarters, fostering economic expansion and reducing susceptibility to geopolitical influences. Iraq’s de-dollarisation strategy is intrinsically tied to its pursuit of greater economic self-reliance and enhanced sovereignty. As it stands, the local currency, the Iraqi dinar, maintains an exchange rate of approximately 1,300 dinars per US dollar.
Iraq’s move to de-dollarise reflects a global trend where nations aim to reduce reliance on the US dollar in international trade. China and Russia spearhead this effort, advocating for the use of their currencies, the yuan and ruble, in global transactions. China’s recent purchase of LNG using the yuan from the UAE, and India’s agreement with the UAE to settle trade in rupees, exemplify this shift. Furthermore, the Brics New Development Bank is advancing de-dollarisation by welcoming new members such as the UAE, Saudi Arabia, Egypt, Argentina, Iran and Ethiopia and initiating a 3-year de-dollarisation plan, with a focus on fostering local currency lending, diminishing dependence on the dollar and further challenging its global reserve currency status.
China’s expanding economic influence in Iraq, closely linked to its BRI, plays a pivotal role in Iraq’s de-dollarisation journey. The BRI presents opportunities for trade, infrastructure growth and investments in Iraq. China actively promotes the internationalisation of the yuan which could assume a more substantial role in Iraq’s economy. However, it’s important to note that the yuan faces certain limitations, particularly due to capital controls that currently restrict fund transfers in and out of China. Despite Beijing’s ongoing efforts to enhance the international use of its currency, the yuan’s share in global trade transactions remains relatively modest at approximately 4.5%.
However, the question of whether the US dollar can maintain its status as the world’s primary reserve currency can no longer be disregarded. Despite the uncertainties that lie ahead, Iraq’s shift away from the dollar offers a glimpse into a changing world order, where the dollar’s supremacy encounters growing obstacles.
Published in The Express Tribune, November 14th, 2023.
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