Iraq in the year 2024 may exceed the current year, amid expectations of an increase in the exchange rate with the launch of more than 1,300 service projects nationwide
Iraq is going through major changes.” Parliamentary Finance identifies 3 factors that control the 2024 budget
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Member of the Parliamentary Finance Committee, Mudar Al-Karawi, identified three factors that control Iraq’s budget for the year 2024.
Al-Karawi said in a press interview seen by “Taqaddam” that “the volume of actual and total spending for Iraq in the year 2024 may exceed the current year, amid expectations of an increase in the exchange rate with the launch of more than 1,300 service projects nationwide,” pointing out that “the economic situation is recovering.” But very slowly due to accumulations extending over years.”
He added, “It is not possible to be certain from now that inflation will remain at its current levels, and it may decrease or rise, in addition to not confirming that a financial deficit in 2024 will be larger or smaller than the current year,” indicating that “Iraq is living with major changes after the Gaza war and its repercussions that have affected it.” “It began to be monitored through what is happening in Bab al-Mandab and other areas, and the possibility of expanding confrontations in the Middle East in general.”
Al-Karawi indicated, “The Finance Committee will hold a series of meetings with the Ministry of Finance and the rest of the institutions concerned with the economy at the beginning of next year.” To determine the expected deficit rates and what solutions are proposed,” he pointed out, “stability, oil prices that are compatible with the country’s needs, and exchange mechanisms are all factors influencing the 2024 budget.”
After a difficult struggle that extended for months, the House of Representatives voted on the general financial budget for the years 2023, 2024, and 2025 last June, after a series of sessions that extended until the early hours of dawn, which resulted in a tripartite budget, the highest in the history of Iraq, as it was described as “explosive” with a value of 198 trillion and 910 billion dinars.
Sudanese Advisor: The government's battle with the dollar is nearing its end
The Prime Minister's media advisor, Hisham Al-Rikabi, confirmed on Sunday that the Iraqi government's battle with speculators in the dollar exchange rates is nearing its end.
Al-Rikabi said in a blog post on the “X” platform, seen by “Al-Iqtisad News,” that “the will that the Sudanese government possesses to carry out reform within the financial institutions in Iraq and the insistence on correction were important factors in strengthening confidence between Baghdad and Washington, and constituted a positive step in achieving success.” inside".
He added: "We said it before and we confirm it today. Our battle with the dollar is almost over."
On Sunday, the local markets witnessed a decline in the dollar exchange rates in the parallel market to 150 thousand dinars.
Yesterday, Saturday, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed that the dollar exchange rates in the parallel market began to approach the official price set at 1,320 dinars per dollar after the recent measures taken by the Central Bank and the Iraqi government.
Earlier today, Sunday, the United States pledged to continue providing “dollar services” to Iraq in the interest of economic stability.
The US ambassador to Baghdad, Alina Romanowski, said in a blog post seen by Al-Eqtisad News, that the United States “continues its cooperation with the Central Bank of Iraq. Many Iraqi banks have now formed relationships with international banks for the first time, which is a positive step in making progress in reforming... The banking sector".
translation:
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The will of the Sudanese government to carry out reform within the financial institutions in Iraq and the insistence on correction were important factors in
Strengthening confidence between #Baghdad# and #Washington, and constituted a positive step in achieving success within the sector
The banker.
We said it before and we confirm it today in our battle with the dollar
It's almost over.
An economic expert confirms the possibility of following the movement of the dinar
On Sunday, economic expert Safwan Qusay confirmed the possibility of Iraqi banks to follow the movement of the dinar and buyers of goods and merchandise from abroad, through new electronic cards and the shift towards the digital economy.
Qusay told Al-Maalouma, “Iraqi banks can move towards monitoring the movement of the dinar through banking and governmental measures that push towards a shift towards working with electronic cards.”
He added, "The government's tendency is to shift from storing money in homes to putting it in banks via electronic cards, and thus investing the dinar after it is with the banks so that it can be redisbursed in the form of projects and job opportunities." "
He stated that "banks will have the opportunity to track the dinar and know buyers of goods from abroad, as the current government seeks to transfer the economy and turn it into a digital economy and attract more investments, as well as achieving economic security and controlling the movement of hard currency and the dinar at the same time."
The Sudanese financial advisor reveals a surprise regarding the dollar: Watch for the decline
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed that the dollar exchange rates in the parallel market began to approach the official price set at 1,320 dinars per dollar after the recent measures taken by the Central Bank and the Iraqi government.
Saleh said in a press interview, “The high capabilities of Iraq’s currency reserves and the good management of directing them to finance foreign trade have resulted in a significant improvement in the exchange rate in the parallel market over the past period.”
He added, "The dollar exchange rates in the parallel market have begun to approach the official price, for reasons including the regularity of foreign trade for the private sector through the compliance platform, the Iraqi banks showing great flexibility in dealing with it to secure foreign transfers, and Iraq's openness to cash transfers, including electronic payment cards and importing foreign currency into... The country regulates the financing of foreign trade in various currencies, including the euro and the UAE dirham.
He pointed out that "the measures taken by the Central Bank and the Iraqi government and the large cash reserves created a flexible market for foreign currency that contained the fluctuations of the parallel market," adding that "the dollar exchange rates continue to decline and are approaching the official price."
The Treasury will continue to provide the dollar, but in a way that serves Iraq’s economy - the American Ambassador
Washington Ambassador Elena Romanowski said on Sunday that the US Treasury will continue to provide the dollar to Iraq, in the interest of economic stability in the country.
@USTreasury continues its collaboration with @CBIraq. Many Iraqi banks have now formed relationships with international banks for the first time, which is a positive step in making progress in reforming the banking sector. We will continue to provide US dollar services to Iraq in the interest of economic stability.
Washington pledges to continue providing dollar services to Iraq
The American Ambassador to Baghdad, Alina Romanski, pledged on Sunday that her country would continue providing dollar services to Iraq.
Romanowski wrote in her account on the “X” platform, viewed by Shafaq News Agency, that “the US Treasury Department continues its cooperation with the Central Bank of Iraq,” noting that “many Iraqi banks have formed relationships with international banks for the first time, which is a positive step in achieving Progress in banking sector reform.
She concluded by saying, "We will continue to provide US dollar services to Iraq in the interest of economic stability."
On Wednesday, November 29, 2023, the American newspaper "The Wall Street Journal" revealed that 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 quoted American officials as saying, "The banknotes in the hands of Iraqis have become a lucrative source of illicit dollars that return to militias and corrupt politicians, as well as to Iran."
The Central Bank of Iraq confirmed at the beginning of last October that dollar shipments sent by the US Federal Bank were proceeding according to a specific schedule and timings agreed upon between the two monetary institutions.
Chambers of Commerce: The dollar will be below 150 thousand dinars before the end of 2023
The head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, expected on Sunday that the dollar exchange rate would fall below 150,000 dinars before the end of 2023.
Al-Tamimi said in an interview with Al-Maalouma, “The parallel market for the dollar lost 8 to 10% of the dollar exchange rate in 3 weeks and now it is at 152 thousand dinars per 100 dollars after it reached 167 thousand dinars per 100 dollars 3 months ago.”
He added, "The dollar will fall below 150 dinars for every 100 dollars before the end of 2023, especially with the lack of pressure on the parallel market and the beginning of an escalation in the adoption of the dinar in internal exchanges, in addition to the impact of electronic transactions through the procedures of the Central Bank and state institutions."
He pointed out that "the decline will continue at a low pace, but its impact will be stronger on the Iraqi markets during the first quarter of 2024 in terms of prices of basic materials through a noticeable decline."
The dollar selling markets witnessed a gradual decline in exchange rates, which contributes to reducing the financial burdens on millions of Iraqis.
Integrity returns two billion dinars of the value of inflation in the funds of former officials to the state treasury
link this is really big news over there and they have tweeted about it too
The Federal Integrity Commission announced today, Sunday, that it was able to return more than two billion dinars to the state treasury. It represents part of the value of the inflation in the funds of some defendants in cases of corruption and inflation of funds, including the case of stolen tax deposits.
A statement from the Commission’s Government Information and Communications Office, a copy of which {Al-Furat News} received, stated that: “The received amounts that were deposited in the two bank accounts that the Commission announced were opened in the Rafidain Bank - Defense Branch, stated that the Commission received (1,300,000) (1,000) billion dinars of the amounts owed by the accused, who is sponsored by the technical advisor to the former prime minister, and which represents part of the value of inflation and illegal gain in his money.”
He added, "The Commission was also able to return (775,000,000) million dinars, representing the value of the bribe that the arrested accused, director of the Baghdad Governor's Office, received from a foreign company, in exchange for awarding project contracts to companies, in addition to a financial sum of approximately (25) million." One dinar from the rental proceeds of real estate belonging to the arrested accused, the wife of the former Director General of the General Authority for Taxes.”
The statement explained, "The Commission had previously announced the launch of a campaign of money inflation and illicit gain in the various sectors of state institutions, starting with the tax sector, while it opened two accounts in the Rafidain Bank in Iraqi dinars and US dollars, in order to deposit the recovered amounts that represent the proceeds and proceeds of corruption."
Al-Mandalawi to Plasschaert: Legislate laws that address the needs of citizens in the next legislative term
Acting Speaker of the House of Representatives, Mohsen Al-Mandalawi, received in his office today, Sunday, the Special Representative of the Secretary-General of the United Nations, Jeanine Plasschaert.
During the meeting, according to Mandalawi’s media office, which {Al-Furat News} received a copy of, “they talked about the latest developments in the local, regional and international political scene, issues of common interest and the efforts of the House of Representatives to support the work of the UN mission and strengthen the human rights file and the importance of bilateral coordination within this framework.”
He added, "The meeting also touched on the recent provincial council elections and the necessity of resuming their work duties as an important positive and constitutional step that proves the democratic foundations in the country."
Al-Mandalawi stressed that "the next legislative term will witness the legislation of priority laws that affect the needs of citizens, in addition to activating the oversight aspect of parliamentary committees."
The President of the Republic congratulates Christians in Iraq and the world
Today, Sunday, the President of the Republic, Abdul Latif Rashid, congratulated Christians in Iraq and the entire world on the occasion of Christmas and New Year.
Rashid said in a blog post on his website: “We extend our congratulations and blessings to our Christian people in Iraq and the entire world on the occasion of Christmas and the New Year, wishing security and peace for our country, our people, the region and the world, and on this occasion we remember the victims of the painful Hamdaniya incident. May they have mercy and may their families have patience and solace.”
Washington is "satisfied" with Iraq's banking performance and pledges the continued flow of dollars
The US Ambassador to Iraq, Elena Romanowski, announced today, Sunday, the continuation of providing dollar services to Iraq to achieve economic stability.
Romanowski said in a tweet followed by "Al-Sumaria News", "Many Iraqi banks have now formed relationships with international banks for the first time, which is a positive step in making progress in reforming the banking sector."
She added: "We will continue to provide US dollar services to Iraq in the interest of economic stability."
Reassurance from Parliament: The dollar is heading towards the official price and the crisis is “American-made”
Today, Sunday, the Parliamentary Finance Committee commented on the continued decline in the dollar exchange rate in the parallel market, while describing the dollar crisis as artificial.
Committee member Moeen Al-Kazemi said, in a press interview seen by “Taqaddam,” that “the continuous decline in the dollar exchange rate in the parallel market confirms the government’s success in finding quick solutions to the dollar crisis fabricated by the American side, and Iraq during the last period worked to find solutions to this crisis through... Diversifying the basket of foreign currencies in foreign transactions and other practical steps.”
Al-Kadhimi stressed, “The exchange rate in the parallel market will remain gradually declining during the next few period, and there is a great possibility of reaching the official rate approved by the Central Bank of Iraq, especially since the monetary authority’s movements continue to strengthen the national Iraqi economy.”
Yesterday, Saturday (December 23, 2023), economic expert Abdul Rahman Al-Mashhadani expected a continued gradual decline in the dollar exchange rates, especially in the second half of January 2024.
Al-Mashhadani said in a press interview seen by “Taqaddam” that “the dollar exchange rates in the parallel market in Iraq are constantly declining, even if it is slightly, but gradually and continuously, pointing out that the Central Bank’s procedures, decisions, and government work mechanisms have all collectively contributed to pushing the exchange rates to decline.”
He added, “Despite the increase in demand for buying the dollar at the end of 2023 due to the travel of a significant number of Iraqis abroad for various reasons, including spending the end of the year vacation, but in any case, the exchange rate will decrease again and gradually to reach 145 thousand dinars for every 100 dollars.” In the second half of January 2024.
Financial affairs expert, Nasser Al-Kanani, revealed on Thursday (December 21, 2023) the reason for the decline in the dollar exchange rate in the parallel market.
Al-Kanani said, in a press interview seen by Taqaddam, that “the most prominent reason for this decline is the reduction and limitation of black transfers, and this is due to the recent Iraqi agreement to finance foreign trade with non-dollar means, especially with the Turkish side.”
He expected that “the exchange rate will continue to decline gradually, especially with the reduction of black transfers, but it will take more time for the exchange rate in the parallel market to reach the official rate.”
Al-Kinani stated, “The decline will be gradual and very slow during the coming period.”
The parallel market in Baghdad and the governorates is witnessing a noticeable decline in the exchange rate of the dollar against the dinar, and the selling price in the banking offices in the capital this evening reached 152,400 dinars for every hundred dollars, and in Erbil it was 152,650 dinars, and in Basra it was 152,300 dinars.
On the 14th of this month, the Central Bank of Iraq announced that it had reached an agreement with the US Federal Bank and the US Treasury regarding meeting Iraq’s needs for cash dollar shipments for the next year.
Parliamentary Finance details the decision to supply Iraq with dollars during 2024
Today, Sunday, the Parliamentary Finance Committee detailed the decision to provide America with shipments of dollars to the Iraqi government during 2024, and while it accused the Washington administration, it stressed the necessity of achieving “Iraq’s economic autonomy.”
A member of the committee, Moeen Al-Kazemi, said in an interview with the “Al-Ma’louma” agency, “Iraq exports three million and 500 thousand barrels of oil daily, at a price per barrel of approximately 80-90 dollars , and these funds are deposited in the US Federal Bank, while the bank supplies Iraq Monthly with the amount of dollars he needs.”
He pointed out, "This autonomy is being violated by the American side, which is trying to dominate the Iraqi decision by exploiting the movement of the dollar in Iraqi markets."
He added, "The previous period witnessed a reduction in the quantities sent to Iraq for reasons claimed by the US Federal Reserve to control the movement of the dollar," noting that "there are financial transfers of what Iraqi merchants need, which amount to more "than 150 million dollars daily."
The member of the Finance Committee explained, “Organizing this process between the Central Bank of Iraq and the US Federal Reserve for the next stage in 2024 is an important and essential thing, in order to have a cash dollar with which to deal with necessary matters , currencies and bank transfers.”
Al-Kadhimi stated, “Iraq’s need for the dollar during the next year will be covered, given that this is ultimately its money, and work must be done to achieve economic autonomy in Iraq.”
Earlier today, Washington's ambassador to Iraq, Elena Romanowski, confirmed that her government would continue to provide dollar services to Iraq in the interest of economic stability.
The US ambassador's statements came at a time when the dollar crisis was igniting in Iraq, and the markets were burning due to the limited quantities supplied, despite government measures through the Central Bank.
Government source: Sudanese issues two directives regarding trade with Türkiye
In light of the positive developments taking place in the exchange market in the interest of economic stability, the Prime Minister directed the following:
1. Forming a joint (Iraqi-Turkish) committee representing market forces and Iraqi and Turkish economic organizations between the two countries and including, on the Iraqi side, the Association of Iraqi Private Banks and the Council of The Iraqi-Turkish Business Committee, the Federation of Iraqi Chambers of Commerce, the Iraqi Contractors Union, and the corresponding Turkish side. The committee meets semi-annually and submits its reports to the Prime Minister, in a way that serves the strategic partnership between the two neighboring countries.
2. Opening a direct dialogue on the issue of (the equal deal) through direct negotiation with the Turkish Exporters Union and the Turkish Central Bank in coordination with the Central Bank of Iraq due to the Turkish party’s high desire to pay in local currency, to finance part of the four price support baskets (food, pharmaceutical, construction). , spare parts), which was proposed by the Prime Minister in his defense policy for price stability in Iraq.
Private banks: Agreement to finance imports from Türkiye in Iraqi dinars
The head of the Iraqi Private Banks Association, Wadih Al-Handal, confirmed that the coming days will witness continuous communication between Iraq and Turkey based on the Iraqi government’s guidance, to implement the recent agreement on financing foreign trade, pointing out that imports will be financed in the Iraqi dinar.
Al-Handal said, in a statement reported by the official news agency and seen by Al-Iqtisad News, that “the visit of the Iraqi delegation to Turkey during the past days resulted in the formation of an Iraqi-Turkish committee, which aims to implement banking cooperation and finance trade between the two countries.”
He added, "The Turkish side has shown very great flexibility in financing trade by paying in Iraqi dinars and paying the supplier in Turkish lira, and we see that the dollar exchange rate will witness a decline in the parallel market, due to Iraqi agreements with neighboring countries to finance foreign trade."
Al-Handal stated, “Small Iraqi importers from Turkey are being organized with private banks to finance their imports in Iraqi dinars.”
In this context, a government source said, “In light of the positive developments taking place in the exchange market in the interest of economic stability, Prime Minister Muhammad Shia’ al-Sudani directed the formation of a joint (Iraqi-Turkish) committee representing market forces and Iraqi and Turkish economic organizations between the two countries, which includes, on the Iraqi side, an association The Iraqi private banks, the Iraqi-Turkish Business Council, the Federation of Iraqi Chambers of Commerce, the Iraqi Contractors Union, and their counterparts from the Turkish side, and the committee meets semi-annually and submits its reports to the Prime Minister, in a way that serves the strategic partnership between the two neighboring countries.”
He added, "The Prime Minister also directed the opening of a direct dialogue on the issue of (the equal deal) through direct negotiation with the Turkish Exporters Union and the Turkish Central Bank in coordination with the Central Bank of Iraq because there is a high desire on the part of the Turkish party to pay in the local currency, to finance part of the four baskets supporting prices." (Food, pharmaceutical, construction, spare parts), which were proposed by the Prime Minister in his policy defending price stability in Iraq.”
A government source reveals the Sudanese measures to reduce the dollar to its official price
Today, Sunday (December 24, 2023), a government source revealed measures by Prime Minister Muhammad Shiaa Al-Sudani to reduce the dollar exchange rate to its official price (1,320 dinars).
The source stated to “Baghdad Today” that, “In light of the positive developments witnessed by the exchange market in the interest of economic stability, the Prime Minister directed the formation of a joint (Iraqi-Turkish) committee representing market forces and Iraqi and Turkish economic organizations between the two countries and including, on the Iraqi side, the Association of Iraqi Banks.” The private sector, the Iraqi-Turkish Business Council, the Federation of Iraqi Chambers of Commerce, the Iraqi Contractors Union, and its counterpart from the Turkish side, and the committee meets semi-annually and submits its reports to the Prime Minister, in a way that serves the strategic partnership between the two neighboring countries.
Al-Sudani also directed, according to the source, “to open a direct dialogue on the issue of (the equal deal) through direct negotiation with the Turkish Exporters Union and the Turkish Central Bank in coordination with the Central Bank of Iraq due to the Turkish party’s high desire to pay in the local currency, to finance part of the four price support baskets.” Food, pharmaceutical, construction, spare parts) proposed by the Prime Minister in his defense policy for price stability in Iraq.”
It is noteworthy that the dollar in local markets is witnessing a noticeable decline, as it recorded 150,000 dinars to the dollar this evening, Sunday.
Media Advisor to Prime Minister Hisham Al-Rikabi said, "The battle with the dollar is nearing its end."
Al-Rikabi wrote in a tweet on the (X) website this evening, “The will of the Sudanese government to carry out reform within the financial institutions in Iraq and the insistence on correction were important factors in strengthening confidence between Baghdad and Washington, and constituted a positive step in achieving success within the banking sector, as we said previously.” We confirm this today: our battle with the dollar is nearing its end.”
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Financing foreign trade: Iraq and Turkey activate agreements in dinars and lira
The head of the Iraqi Private Banks Association, Wadih Al-Handal, confirmed that the coming days will witness continuous communication between Iraq and Turkey based on the Iraqi government’s guidance, to implement the recent agreement on financing foreign trade, pointing out that imports will be financed in the Iraqi dinar.
Al-Handal said, “The visit of the Iraqi delegation to Turkey during the past few days resulted in the formation of an Iraqi-Turkish committee, which aims to implement banking cooperation and finance trade between the two countries.”
He added, “The Turkish side has shown very great flexibility in financing trade by paying in Iraqi dinars and paying the supplier in Turkish lira, and we see that the dollar exchange rate will witness a decline in the parallel market, due to Iraqi agreements with neighboring countries to finance foreign trade.”
Al-Handal stated, “Small Iraqi importers from Turkey are being organized with private banks to finance their imports in Iraqi dinars,” according to the official agency
Washington's dollar threatens the Baghdad dinar.. America's payments are in "installments" and Iraq's economy is in "danger"
The United States of America continues its dominance over the Iraqi economy, especially the funds stored in the Federal Bank. Despite this money returning to Iraq as a result of oil sales, Washington grants charity from time to time by sending “small” amounts of dollars to Baghdad.
The Central Bank of Iraq, with news that shocked some and forced others to ask many questions, announced earlier that America had agreed to send shipments of dollars to Iraq during 2024; To cover his needs for green currency.
When you read the decision carefully, you feel that Washington is preferring Baghdad, as if it is sending money in the form of humanitarian aid or the same as it sends to the Zionist entity, or Ukraine, and this leads to asking a “deep” question, which is: “Why does Iraq still link its local currency to the US dollar?” ?
Last week, the Central Bank of Iraq announced the agreement with the American side to meet Iraq’s requests for cash shipments (dollar) during the year 2024.
The Parliamentary Finance Committee detailed the decision to provide America with shipments of dollars to the Iraqi government during 2024, and while it accused the Washington administration, it stressed the necessity of achieving “Iraq’s economic sovereignty.”
A member of the committee, Moeen Al-Kazemi, said in an interview with the “Al-Ma’louma” agency, “Iraq exports three million and 500 thousand barrels of oil daily, at a price per barrel of approximately 80-90 dollars, and these funds are deposited in the US Federal Bank, while the bank supplies Iraq Monthly with the amount of dollars he needs.”
He points out, "This sovereignty is being violated by the American side, which is trying to dominate the Iraqi decision by exploiting the movement of the dollar in Iraqi markets."
He adds, "The previous period witnessed a reduction in the quantities sent to Iraq for reasons claimed by the US Federal Reserve to control the movement of the dollar," noting that "there are financial transfers of what Iraqi merchants need, which amount to more than 150 million dollars daily."
The member of the Finance Committee explains, “Organizing this process between the Central Bank of Iraq and the US Federal Reserve for the next stage in 2024 is an important and essential thing, in order to have a cash dollar with which to deal with necessary matters, currencies and bank transfers.”
Al-Kadhimi explains, “Iraq’s need for the dollar during the next year will be covered, given that this is ultimately its money, and work must be done to achieve economic sovereignty in Iraq.”
Washington's dollar threatens the Baghdad dinar.. America's payments are in "installments" and Iraq's economy is in "danger"
"Personal interests"
Iraq's economic sovereignty, for many years, has been compromised by the American side, and has been exposed to "strong" shocks, the latest of which is the exchange rate crisis that ignited the Iraqi markets. To this day, it is being remedied in order to eliminate the large gap between the official and parallel prices. So what is the reason for not getting rid of "hegemony?" America"?
In turn, the economic expert, Diaa Al-Mohsen, identified the main reason for Iraq not getting rid of pegging its currency to the US dollar. While he considered selling Iraqi oil in dollars a “big mistake,” he raised a question regarding diversification of sales.
Al-Mohsen mentioned, in an interview with the Maalouma Agency, that “there are some political figures who link their personal interests to the interests of the United States of America,” adding, “There is no opportunity to get rid of the dinar’s peg to the American dollar.”
He points out, “Iraq’s oil sales so far are in dollars, and this is a mistake,” asking: “Why don’t we repeat the experiences of other countries that have begun to diversify the sources of the currency basket?”
The economist continues, "Iraq is still relying on the US dollar to price oil for sale, which will lead to a (clearing) process, forcing the other country importing Iraqi oil to transfer money to the US Federal Bank, which in turn transfers the currency to the country."
Iraq's continued peg of the dinar currency to the dollar, and its reliance on the green currency in oil sales, is an economy that will remain under the American threat. The economy card at present has become one of the "most dangerous" cards that Washington uses towards countries that are hostile to it.
Sudanese issues new directives regarding the dollar exchange rate
A government source reported, on Sunday, the issuance of new directives from the Prime Minister regarding the policy of maintaining a reduction in the dollar exchange rate.
The source told “Al-Ma’louma” that, “In light of the positive developments witnessed by the exchange market in the interest of economic stability, the Prime Minister directed the formation of a joint (Iraqi-Turkish) committee representing market forces and Iraqi and Turkish economic organizations between the two countries and including, on the Iraqi side, the Association of Iraqi Banks.” The private sector, the Iraqi-Turkish Business Council, the Federation of Iraqi Chambers of Commerce, the Iraqi Contractors Union, and their counterparts from the Turkish side.”
He added, "The committee meets semi-annually and submits its reports to the Prime Minister, in a way that serves the strategic partnership between the two neighboring countries."
He explained that the Sudanese also directed to “open a direct dialogue on the issue of (the equal deal) through direct negotiation with the Turkish Exporters Union and the Turkish Central Bank in coordination with the Central Bank of Iraq due to the Turkish party’s high desire to pay in the local currency, to finance part of the four baskets supporting prices ( Food, pharmaceutical, construction, spare parts) which were proposed by the Prime Minister in his defense policy for price stability in Iraq.” Ended
An economist identifies obstacles and scenarios to liberate Iraq from the dominance of the dollar
Today, Sunday, the economic expert, Diaa Al-Mohsen, identified the main reason for Iraq’s failure to get rid of the peg of its currency to the US dollar. While he considered selling Iraqi oil in dollars a “big mistake,” he raised a question regarding diversification of sales.
Al-Mohsen said, in an interview with the Maalouma Agency, that “there are some political figures whose personal interests are linked to the interests of the United States of America,” adding, “There is no opportunity to get rid of the dinar’s peg to the American dollar.”
He added, "Iraq's oil sales so far are in dollars, and this is a mistake," asking: "Why do we not repeat the experiences of other countries that began to diversify the sources of the currency basket?"
The economic expert explained, "Iraq is still relying on the US dollar to sell oil prices, which will lead to a (clearing) process, forcing the other country importing Iraqi oil to transfer money to the US Federal Bank, which in turn transfers the currency to the country."
Earlier today, a member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, accused that Iraqi economic sovereignty is being violated by the American side, which is trying to dominate the decision by exploiting the movement of the dollar in local markets.
Washington's ambassador to Iraq, Elena Romanowski, confirmed earlier today that her government would continue to provide dollar services to Iraq in the interest of economic stability, despite the imposition of many restrictions and conditions on foreign transfers by Iraqi merchants, which had a negative impact on the value of the Iraqi dinar.
Most notably, salaries and oil.. The Kurdistan Region reveals the latest developments in the “outstanding files” with Baghdad
The head of the Media and Information Department of the Kurdistan Regional Government, Jutiar Adel, revealed on Sunday the latest developments in the outstanding files with the federal government, which bilateral negotiations are ongoing for the purpose of resolving them.
Adel told a group of journalists, including a Shafaq News Agency correspondent, that the regional government appreciates the efforts of both parties to the negotiations and what they have in common is the constitution and the federal system, and in the end the goal is to reach an agreement.”
He explained, "The financial crisis has greatly affected the Kurdistan Region, so the issue of the budget and salaries must be resolved in particular, especially since the regional government has fulfilled all its obligations in the budget law."
Regarding the issue of resuming oil exports via the Turkish Ceyhan line, Adel indicated that it is a matter related to the governments of Baghdad and Ankara, and that what falls on the region’s responsibility has been provided and presented, and the issues of contracts and data have been published and are all present with the federal government.
Two weeks ago, a high-ranking Kurdish delegation, headed by the Minister of Finance and Economy of the Kurdistan Regional Government, made a visit to Baghdad, during which it negotiated with the federal government on a number of issues, including customs policy and amending the border crossings law.
The Prime Minister of the Kurdistan Regional Government, Masrour Barzani, confirms that the Kurdish delegations that visit the capital, Baghdad, from time to time, are engaged in several discussions centered on ways to find a radical solution to the differences and outstanding issues, represented by the issue of the budget, salaries, and the resumption of Kurdistan oil exports through the Turkish port of Ceyhan.
The government and the Central Bank win the battle for financial and banking reform in 2023
The data, indicators, achievements and preliminary results achieved in 2023 indicate that the government of the Prime Minister, Mr. Muhammad Shia Al-Sudani, and the Central Bank, in continuous cooperation and coordination between them, have resulted in their comprehensive reform steps contained in the government curriculum in the axis of financial and banking reform and in the strategy of the Central Bank, which focused on regulating foreign trade financing. Opening direct dealings between Iraqi banks that secured the necessary requirements to deal with correspondent banks and opening new foreign currencies in addition to the US dollar. Such as the Chinese yuan, the euro, the UAE dirham, the Indian rupee, and the Turkish lira. To be traded for external transfers with these countries in accordance with understandings and agreements with the US Reserve and the US Treasury Department.
The role of the Central Bank will be supervisory and supervisory. The other achievement is the compliance of Iraqi banks with the global banking system and regularity within the system of international banking relations, which has restored confidence in the integrity of banking transactions with Iraq. This is an important and basic goal. The other important goal, which the government is working to implement in cooperation and coordination with the Central Bank and the Association of Banks. Electronic payment companies are moving and transforming from the cash economy to the digital economy and the issuance of a number of decisions from the Council of Ministers and several instructions and executive procedures from the Central Bank to achieve this in a record period. And work to complete the necessary infrastructure to achieve digital transformation in the banking sector. The government is working seriously on governance and automation of the tax system, the customs system, and networking with the Central Bank of Iraq.
The new thing in the Sudanese government is that it draws up plans and follows up implementation on a daily basis with the parties concerned with implementation and participates in facilitating procedures and overcoming obstacles first and foremost. It consults continuously with the Central Bank as an advisor to the government. Since we are in the last week of 2023, the Central Bank and the government have set before them in 2024 the completion of financial and banking reforms in a way that achieves complete financial and banking reform and controlling and maintaining the stability of the exchange rate of the Iraqi dinar in a way that does not allow the official rate to be equal to the exchange rate in the parallel market. And that the planned goals for the year are Mentioned as follows:
First - Building a stable financial system lies in accompanying financial electronic systems.
Second: Commitment to establishing the rules of compliance, risk management, transparency, and soundness of financial operations.
Third: Working to strengthen international relations, including establishing a network of relations with foreign correspondent banks.
Fourth: Establishing a Riyada Bank and redirecting work on initiatives to finance small and medium enterprises in accordance with standards
New banks contribute to its capital and management. In line with the initiative of the Prime Minister (Riyada).
Establishing a loan guarantee company.
Fifth: Preparing and launching a financial inclusion strategy and putting it into effect in coordination with the relevant authorities.
Sixth - Launching the national lending strategy, relying on the banks’ own financial capabilities to attract deposits and invest them in providing the best banking products to customers and contributing to development.
Plasschaert sends an end-of-year message to the Iraqis: Bright opportunities are on the horizon
The Special Representative of the Secretary-General of the United Nations in Iraq, Jeanine Hennis-Plasschaert, confirmed today, Saturday, that Iraq has an excellent opportunity for rapid progress in its sustainable development.
Plasschaert said in an end-of-year message followed by Shafaq News Agency: “Going back to last year, I said that, with political stability and bright opportunities on the horizon, Iraq has an excellent opportunity to advance rapidly in its sustainable development, and a year later, several important steps and promising initiatives have already emerged.”
She added, "While the country is in a position to seize the many opportunities available to it, doing so will not be an easy task, and therefore, I can only echo the words of Secretary-General António Guterres during his visit earlier this year: "The United Nations is committed to supporting Iraq." To consolidate its democratic institutions and advance peace, sustainable development and human rights for all Iraqis.”
She continued by saying: “On behalf of the United Nations family in Iraq, I wish you all a happy New Year full of peace and wellness.”
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