Al-Nusairi identifies the causes of exchange rate fluctuations and recovery measures
Advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, identified the reasons for the fluctuation of the exchange rates of the Iraqi dinar against the dollar in the local market as a lack of control over the regulation of trade financing internally and externally and the lack of a clear trade policy previously.
Al-Nusairi attributed the continued rise of the dollar to several reasons, noting in a press interview that “the instability of the exchange rate of the dinar with its equivalent of the US dollar on the black market since January 2022 and its continuation of fluctuations up and down comes for several reasons, including the lack of control over... Regulating trade financing internally and externally, the lack of a clear trade policy, the intertwining of policies, and the lack of an annual import program for the private sector in quantities and amounts, but imports are open and without controls on external transfers.”
He noted that among other reasons are “the lack of control over illicit imports and unofficial border crossings, in addition to the presence of about 1,200 unlicensed money exchange shops that deal in cash dollars and foreign transfers at the exchange rate on the black market, and about 12,000 outlets for disbursing the salaries of pensioners and social welfare workers that deal in its circulation.” at the black market exchange rate.
Among the reasons also, according to Samir Al-Nusairi, is that “most of the merchants who obtain the US dollar at the official rate from the Central Bank, but sell their goods in the local market at the black market price, as well as the absence of global correspondent banks previously that deal with our banks and whose accounts were not opened in currencies.” Countries with which we have trade, such as China, India, Turkey and the Emirates.”
The advisor to the Association of Private Banks pointed out that “merchants do not adhere to international banking standards that guarantee the arrival of the dollar to the final beneficiary or exporter of the goods, so dollar transfers are manipulated and reach countries sanctioned by the United States or besieged internationally. Therefore, the efforts of the Central Bank and the government in 2023 were focused on drawing up a strategy.” For banking financial reform for the purpose of controlling exchange rate stability.”
"Among this strategy is organizing the financing of foreign trade, building new international understandings with international banks, and opening accounts for our banks in correspondent banks, as more than 40 accounts have been opened with American, Chinese, Emirati, Turkish, and Indian banks. We expect that during the next two months, the number of Iraqi banks that have accounts will exceed There are 30 banks,” according to Samir Al-Nusairi.
He noted, “opening up dealing with local currencies such as the Chinese yuan, the European euro, the UAE dirham, the Turkish lira, and the Indian rupee in foreign transfers with the aim of reducing the demand for the US dollar, in addition to allowing banks to import foreign exchange in dollars and other currencies from their balances in correspondent banks or abroad in accordance with specific controls.” We will also take measures in cooperation between the Central Bank and the government to comprehensively expand the use of electronic payment and move to digital transformation and a cashless society in all fields.”
He added that among the points of this strategy are "pressuring speculators dealing in the black dollar on the black market, limiting their activities that are harmful to the national economy, and continuing the flow of agreed-upon US dollar shipments to the central bank."
The advisor to the Association of Private Banks saw that “the availability of foreign cash reserves exceeding $100 billion confirms that the Iraqi dinar will recover and that it is strong, as the local currency in circulation is covered by foreign cash reserves, in addition to other executive measures to support and stimulate the local product and control the monetary market and the commercial market.” “It will control the exchange rate, as I expect, in the coming period.”
The Central Bank of Iraq decides to restore the mechanism for financing Iraq's foreign trade, starting next March
link this is all the pages the other post only has 1
The Central Bank of Iraq decided to restore the mechanism for financing Iraq's foreign trade, starting next March.
The Central Bank said in a letter addressed to the banks, which Al-Iqtisad News reviewed, that for the purpose of organizing financing operations for requests to enhance external balances, it was decided to implement the new requirements and mechanisms starting from March 1, 2024.
He added that banks wishing to enhance their balance with correspondent banks in all currencies should appoint an external auditor for the purposes of reviewing transfers in advance of the process of sending transfers. Banks wishing to enhance the balance must provide us with information about the names of the companies they wish to contract with within a maximum period of February 29, 2024.
He stressed that requests to strengthen the dollar are for banks that hold correspondent accounts with an American bank exclusively, at a price of 1310.
He stated that strengthening other currencies other than the dollar will accept applications at the banks of the currency country, provided that the classification of these banks is either the same as the country’s classification or only one rank lower than it, in a way that is consistent with Iraq’s import requirements from those countries.
text of page 1
To all approved banks
M. Strengthening the assets of correspondents abroad
good greeting ....
With the aim of supporting the work of your banks by finding the necessary financial channels to meet your customers’ requests, and for the purpose of organizing financing operations for requests to enhance the external balances received for this purpose.
Bank, it was decided to implement the requirements and mechanisms below starting from 3/1/2024
First: Requirements to enhance external balances
1- All banks wishing to enhance their balance with correspondent banks in all connections must appoint an external auditor (according to Paragraph II 4 below) for the purposes of reviewing transfers in advance of the process of sending transfers. Banks wishing to enhance the balance must provide us with information about the names of the companies they wish to contract with within a period of time.
A maximum of 2/29/2024, with the draft of the contract attached, which must include the bank’s commitment to transferring the company. Sharing the quarterly audit reports with the Central Bank of Iraq / Banking Supervision Department directly by the auditing company no later than April 15, for the first quarter report, and July 150, for the second quarter report. October 150 for the third quarter report, January 15 for the fourth quarter report, provided that the date of 3/31/2024 is the deadline for contracting and starting the work of the audit company.
text of pg 2
In the case of requests for a boost in the US dollar currency, requests from banks that hold correspondent accounts with an American bank are accepted exclusively, and the entry for depositing the Iraqi dinar equivalent to the boost amount at the official rate of 1,310 dinars must be attached.
dollar .
As for reinforcements in currencies other than the US dollar, requests for reinforcement are accepted at the banks of the currency country to enhance balances, provided that the classification of these banks is either the same as the country’s classification or one rank lower than it only and in a manner consistent with Iraq’s import requirements from those countries, or that the correspondent bank is accredited. If, as a clearing bank for the currency to be consolidated, “Clearing House” and the correspondent (A) are outside the currency country, his credit rating must be no less than
Applications are sent without attaching the equivalent deposit restrictions, provided that they include
Requests: Your banks undertake to pay the amounts equivalent to the reinforcement requests, in addition to commissions
This bank (0.002) and the corresponding bank commissions as soon as they provide you with the required amounts
Via the official email (ifr.inv@cbi.iq).
Because banks that have a correspondent account with an American bank are able to complete...
Transfers are in all currencies using this account, so there is no possibility to accept booster requests submitted by them
In various currencies except the US dollar.
text of pg 3
the date :
Second: Mechanisms for submitting and implementing requests to enhance external balances
1- Requests for reinforcements are submitted via an official letter addressed to a department
Investments and external transfers / external transfers department in this bank with
Send a copy to the official email address (ifr.inv@cbliq).
2- Orders are executed on specific working days of each week, as listed below
Booster currency
today
Monday
Chinese yuan
Indian Rupee - Turkish Lira - Dirham
Tuesday
Emirati
Wednesday
euro
All days of the week
U.S. dollar
One o'clock in the afternoon of each working day is considered the last time for executing orders (Cut-off (Time). Orders received on days other than the days specified above are postponed to the following week or day.
Subsequent work is done automatically in cases of official holidays.
Acceptance of applications submitted through the foreign currency buying and selling window (electronic platform) will be stopped.
For banks participating in reinforcements in various currencies sent to beneficiaries in the covered countries
In strengthening currencies, for example but not limited to) a bank whose account has previously been strengthened has no right
A correspondent in the euro currency must submit a request through the window for buying and selling foreign currency to a beneficiary in any country
Of the eurozone countries, the same applies to other currencies.
text of pg 4
We include below a table of the names of companies that can be dealt with in pre-transfer audits, noting that in the case of strengthening the US dollar currency, the contract must be with the headquarters of one of the companies below in the United States of America and not its branch in
Iraq or neighboring countries.
website
the names are in English on the document
text of page 5
Banks participating in external consolidation operations must record transfer details and upload their data in all currencies on the electronic platform on a weekly basis. Otherwise, consolidation requests will be stopped for banks that fail to register the percentage.
80% of the previous boost amount.
Please review and act accordingly. With appreciation.
Iraqis do not trust their banks and bankers reveal the reasons!
Most Iraqis avoid depositing their money in state or even private banks, and prefer to collect it in home safes, as they consider leaving it inside their sleeping pillows safer than using bank safes.
Employee Sahira Shaker (56 years old) said in an interview with Al Mada: “I thought the loan announced by the government would save my situation, and I would finally be able to build my house and get rid of the cost of rent, but I found that the loan had become a heavy burden that was draining my monthly income, as I found myself borrowing.” To meet the needs of the home.
She added, "She is repaying the loan she took from a government bank five years ago," noting that "the interest rate is exaggerated, especially since the loans are supposed to be targeted to the underprivileged classes, but this has increased the burden on them."
For his part, citizen Adel Mohsen expresses his astonishment at the presence of individuals depositing their money safely in Iraqi banks, in light of the spread of corruption and exploitation that has become clear. He told Al Mada that he "does not trust all government and private banks, based on what he heard of the many problems that depositors are exposed to," pointing out that he "suffices to store his money in his home with full confidence, by placing it under the bed or inside the wardrobe."
In addition, Malak Rahman, an employee official at one of the private banks, said during an interview with (Al-Mada), that “some employees take advantage of the citizen’s limited knowledge and request amounts exceeding what is stipulated when opening a bank account, which range between (13-25) thousand dinars, and she spoke Also when transferring money via external transfers, additional fees are imposed, and most customers pay without realizing it.”
In turn, she alerted the customer to the need to “be smarter and pay attention to the amount of fees on the transfer paper, and he can file a complaint with the official at the bank or the main branch.”
Regarding the other mechanisms used, Rahman explains, “There is a process of exploitation that takes place by withholding the citizen’s passport and withdrawing money through it, and the citizen is told that his passport is invalid, or when the customer comes to withdraw his money, he is informed that there are fees on it.”
Malak stated, “Some employees manage their profession with transparency and credibility, as they monitor violations and report them to the Central Bank. However, some of them, upon monitoring violations, blackmail banks, and amounts reach 200 million or receive lands as compensation in exchange for covering up violations.” .
In this context, the economic expert, Ahmed Eid, points out that “the banking sector in Iraq suffers from distortions in its general structure, such as a lack of financing and weak cash deposits by citizens.” He attributes the reason why individuals avoid depositing to “the absence of facilities and offers that encourage citizens to place their money in government or private banks.”
Abdel Aber (Al-Mada) confirms: “The lack of confidence in the banking sector on the part of citizens, attributing this to the financial policy followed by the Central Bank, especially after the manipulation of exchange rates and the inability of the monetary authority to confront the crisis.”
He points out the presence of "banks and exchange offices that are under the control of some parties and influential parties, which puts the Iraqi financial market and the general economic decision in the grip of those parties."
The economic expert added, "There is negligence and a lack of interest, while warning of the spread of bribery and bargaining by bank employees. He pointed to the methods they use, such as "selling the dollar to travelers who pay the bribe directly, with the aim of facilitating the inclusion of their names on the platform for selling the dollar."
Eid held the Central Bank of Iraq fully responsible for not publishing the available offers and the absence of an awareness role among state departments and citizens, as he stressed the importance of education regarding bank deposits, especially after the government’s attempt to move towards an electronic payment system.
Economic researcher Abdul Salam Hassan said in an interview with Al Mada: “Most private banks belong to influential people or to those who have a relationship with them, and their ownership is mostly owned by people outside the country,” pointing out “the presence of smuggling and significant exploitation of depositors’ money, causing losses to them.” This also happened in the Iraqi and Islamic Commercial Bank, where large corruption files were revealed by Hamdiya Al-Jaf during the past year.”
He adds, “The interest rate requested by the banks is large and is accompanied by a number of observations,” noting that “an interest rate of 80 percent is imposed on those who deposit their money, that is, 80 thousand for every 100 million, and a profit rate of up to 60 percent is taken when granting loans.” These percentages are considered an indication of the government’s lack of support for the private sector, contrary to its claims.”
He continues, "Government banks, such as Al-Rafidain and Al-Rashid, have many comments," noting that after the law was amended, the interest rate became 30 percent.
He explains, "The problems that the Iraqi banking system suffers from are old and go back decades, and the banks have not kept pace with the progress taking place in the world."
Abdel Salam continues, “The successive political crises in the country, the nationalization of banks, and the seizure of depositors’ funds made Iraqis lose confidence in banks, which led to the storage of money in homes, and therefore the money deposited in banks does not exceed 15 percent of the size of the Iraqi monetary mass.”
At the conclusion of his speech, he stressed “the importance of abolishing the tedious routine in banking institutions, which requires filling out complex forms and bringing a number of documents, in addition to the demand to bring a guarantor, a step he described as (illogical). He also called for the importance of preserving the confidentiality of customer information and not granting it except by a government decision.” “What is happening in the banks is giving direct information to any official or person with a government rank.”
It is noteworthy that the Iraqi citizen lost his confidence in the banking system in three stages: the period following the Gulf War in 1991, then the American invasion of the country in 2003, and finally in 2014 when the Islamic State took control of vast areas of Iraq, and the people of Mosul suffered greatly in withdrawing their money. Which had been deposited in banks before 2014, and their withdrawal now requires security approvals and permits, in addition to their return in installments to depositors.
The US administration had previously imposed sanctions on some Iraqi banks because of their financial dealings with Iran, which led to the Central Bank seizing control of them and freezing their accounts.
The Iraqi banking sector enters a state of “alert”... New US sanctions loom on the horizon!
On Saturday, economic researcher Omar Al-Halbousi suggested that the US Treasury would impose new sanctions on a group of private banks and individuals with illegal activities.
Al-Halbousi told that “Private banks will be affected by US Treasury sanctions, which closely monitor everything in Iraq and which still do not trust the procedures followed by the government and the central bank.”
He added, “The persons specialized in combating money laundering and terrorist financing in the US Treasury are focusing most of their efforts on monitoring the movement of funds and the work of private banks in Iraq, which are still circumventing US sanctions, which warns of the imminent imposition of new sanctions on a group of banks and individuals with activities.” illegal.
Baghdad hosts the Iraqi-Jordanian Economic Integration Forum
The Ministry of Commerce announced, on Saturday, the completion of procedures for hosting the activities of the Iraqi-Jordanian Economic Forum next Monday and Tuesday, in the presence of economists, businessmen, industrialists, and Iraqi and Jordanian government institutions.
The ministry’s official spokesman, Muhammad Hanoun, said in a statement, a copy of which was received by {Al-Furat News}, that “the capital, Baghdad, will host the activities of the Iraqi-Jordanian Economic Forum next Monday and Tuesday in the presence of economists, businessmen, industrialists, and Iraqi and Jordanian government institutions, to discuss ways to advance cooperation and economic integration between the two countries.” “In order to enhance economic relations and achieve integration and cooperation in various fields.”
He added, "The forum, which is being held under the auspices of the Minister of Commerce, Atheer Daoud Al-Ghurairi, and is attended by Iraqi and Jordanian economic figures representing the public and private sectors in the two countries, aims to strengthen economic relations between the two countries, address business obstacles, and develop treatments and solutions for them in a way that strengthens relations and achieves integration between these institutions to achieve" Cooperation and increasing the volume of trade and economic exchange.”
Hanoun pointed out, “The forum, which will be held under the slogan Integration, will be held on Monday and Tuesday in the village of Tigris in Baghdad and will be attended by economic figures, businessmen, and financial and banking institutions. It will discuss working papers and hold workshops for economic, financial, and banking specializations. It will also witness the opening of an exhibition for industrial activities for the private sector in both countries. It will also discuss... "In investment opportunities between the two countries in order to achieve economic integration between the two countries."
He pointed out that "the Ministry of Commerce, represented by the Department of the Private Sector and the supporting bodies in the Export Support Fund and the Department of Economic Relations, held a meeting" with the Jordanian body organizing the forum and discussed with it the working papers that will be presented at the forum and the nature of preparations for its success in a way that achieves integration and cooperation between the two countries, as well as urging organizations and unions. The Iraqi private sector for effective participation in a way that strengthens the relationship between the two sectors and contributes to achieving true partnerships that allow the implementation of joint investment and development projects.”
In turn, the President of (020) Company, Ruaa Arabiyat, the forum’s organizer, confirmed that “all procedures have been completed to start the work of the Iraqi-Jordanian Economic Forum after coordination with the relevant authorities and private sector institutions in the two countries,” indicating that “there is a common desire to increase the volume of cooperation and trade exchange between Iraq and Jordan to wider areas.
She added, "The Economic Forum represents a real opportunity for economic integration between Iraq and Jordan and to overcome many of the complexities and fears that were highlighted in previous periods."
Arabiyat praised "the cooperation and support shown by the Iraqi authorities, especially the Ministry of Commerce, and in particular the Minister of Commerce, Atheer Al-Ghurairi, and the ministry's departments, which showed full cooperation to make the economic forum a success and urged the Iraqi authorities to participate in its activities."
After targeting Khor Mor... a “vague and angry” hint from Barzani about “betrayal”
Today, Friday (January 26, 2024), the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, considered the targeting of the Kormor gas field, south of Sulaymaniyah Governorate, with a drone yesterday, Thursday, as “attempts aimed at undermining the entity of Kurdistan.”
Barzani said in a statement received by "Baghdad Today", "The multiple attacks on the Kurdistan region are nothing but attempts carried out by enemies and traitors with the aim of undermining the entity of the region, as they believe that these attacks and continued pressure will lead to the weakening of Kurdistan."
He stated, "Our struggling and patriotic people and the Kurdistan Regional Government have a solid will that will not break in the face of conspiracies and injustice. Rather, our courage will increase, which will inflict disappointments of defeat, defeat, and shame on enemies and traitors."
Barzani expressed, "Our thanks and appreciation for the solidarity of friendly countries and their positions in condemning these attacks repeatedly, but these unjust conspiracies and attacks will not be stopped by statements and denunciations, nor will they be prevented from occurring again."
He stressed, "The Iraqi government must take practical measures to end the threats of these outlaw groups, and protect the security of all of Iraq, including the Kurdistan region."
Barzani urged "friendly countries to take serious measures and field cooperation to ensure the security of our people and protect economic and political stability in the Kurdistan region."
He called on "the people of Kurdistan to stand against these conspiracies with great steadfastness and valor, and to cling strongly to their sense of patriotism, and not to allow those who sold themselves, those who sold the land, and the henchmen of the enemies to sacrifice Kurdistan, its struggle and its achievements, in exchange for cowardice, subservience, greed, and lack of conscience."
The field located south of Sulaymaniyah was targeted by a drone yesterday evening, Thursday.
The UAE company (Dana Gas) announced today, Friday, that one of the liquid storage tanks within the Khor Mor facilities in Iraqi Kurdistan was targeted by what is believed to be a drone, yesterday evening, Thursday, without any casualties to individuals.
The company said: “Production operations have been temporarily suspended to control the fire, which has been completely extinguished,” indicating that “the operating team is taking all necessary measures to resume operational operations as quickly as possible, as this is expected to happen soon,” according to the statement. .
Today, the Commander-in-Chief of the Armed Forces directed an investigation to be conducted to determine the circumstances of this incident, to be completed within 48 hours.
It is noteworthy that the field is one of the largest gas fields in the Kurdistan region, and supplies natural gas to electric power production stations, in addition to meeting the people’s need for gas for home services, and the Emirati company “Dana” is investing in it.
A widespread power outage in Kurdistan after an attack on a gas field
A drone attack on one of the largest gas fields in Iraq led to a temporary suspension of production, causing a major power outage across the Kurdistan region in the north of the country, according to what Reuters quoted officials as saying.
No party claimed responsibility for the drone that bombed the Khor Mor gas field in the Sulaymaniyah region in northern Iraq at night.
The UAE energy company Dana Gas, which operates the field, said the attack damaged a liquefied gas tank but did not cause human casualties.
Dana Gas said that production was temporarily halted until the fire was extinguished, and work is expected to resume soon.
The Ministry of Electricity in the Kurdistan Region said that the attack led to a reduction in electricity production by about 2,800 megawatts.
The US Ambassador to Iraq, Alina Romanowski, condemned the attack, saying it "exposed millions to power outages in the winter."
Local sources said that electricity had been completely cut off in the area since the attack.
The Pearl consortium, consisting of the Emirati energy company Dana Gas and its subsidiary Crescent Petroleum, owns the rights to exploit the Khor Mor and Chamchamal fields, which are two of the largest gas fields in Iraq.
Iraq has witnessed almost daily attacks using drones and missiles launched by armed groups since the outbreak of the Israeli war on Gaza in October, most of which targeted bases housing forces of the US-led military coalition. An armed group in Iraq claimed responsibility.
Yesterday, Thursday, the Counter-Terrorism Service in the Kurdistan region in northern Iraq said that air defenses shot down a bomb-laden drone that targeted American forces at a base near Erbil airport.
Oil: Gas platform will be operational within the next two years
today, Friday, the Ministry of Oil identified Iraq’s gains from launching the liquefied gas import platform, and indicated that it will become operational within two years, while indicating that it will grant flexibility to negotiate and obtain it at an appropriate price.
The Undersecretary for Gas Extraction Affairs, Izzat Saber, told the Iraqi News Agency (INA): “Prime Minister Muhammad Shia al-Sudani approved the project to establish a permanent fixed platform to receive gas from neighboring countries or from other countries,” indicating that “Iraq’s infrastructure in the past was not Ready to receive it, as we were relying only on importing gas from Iran through pipelines.”
He added, "In the next two years, this platform will be in the large port of Al-Faw to receive imported liquefied gas from any country in the world, and contracts will be made to use the gas to supply electricity networks, increase energy production, and provide fuel to advance the industrial and agricultural sectors," noting that "liquefied gas It can be used to supply cement, brick, petrochemical and fertilizer factories.”
He stated, "Every country in the world is working to diversify sources to obtain fuel. When there is a platform to receive gas by ships with pipelines, there will be competition and price comparison, and this pushes competition between countries to sell gas to Iraq."
He stressed that "the government of Prime Minister Muhammad Shiaa Al-Sudani is working in all directions to meet the country's need for fuel, and the current year will be a year of achievements in the field of gas exploitation, as the associated gas investment will contribute to obtaining 500 million standard cubic feet as a first stage."
He pointed out that "the Halfaya gas complex will produce 300 million standard cubic feet in the next two months, the Nasiriyah and Al-Gharraf complex will produce 67 million standard cubic feet, and the Fayhaa complex in Basra will produce 130 million standard cubic feet per day," explaining that it "will contribute to increasing the rate of gas exploitation by about 50 percent this year.
Houthis: Targeting a British oil ship in the Gulf of Aden with a direct hit
The Yemeni Houthi group announced today, Friday (January 26, 2024), that it targeted a British oil ship in the Gulf of Aden, with a number of suitable naval missiles, which led to its burning.
This came in a statement issued by the military spokesman for the group’s forces, Yahya Saree, seen by “Baghdad Today.”
The statement said, "The naval forces of the Yemeni armed forces (affiliated with the Houthis) carried out a targeting operation against a British oil ship (MARLIN LUANDA) in the Gulf of Aden, with a number of appropriate naval missiles."
He added that the hit "was direct, which led to the ship's burning."
The ship had left Port Said port from Egypt 6 days ago and was heading to Singapore. It was last seen 24 hours ago near its exit from the Red Sea, where it was supposed to arrive in Singapore on February 7.
Return of gas processing from the Cormor field to power stations
The Kurdistan Regional Government announced on Friday the solution to the problem of gas production in the Kormor field after the efforts of the teams of the Ministry of Natural Resources, the Ministry of Electricity and Dana Gas Company, according to a statement received by Shafaq News Agency.
The statement indicated that the Ministry of Electricity is working through the Electricity Control Center to restore operation of the gas power plant units, and the process continues until ten in the morning.
The fragility of the Iraqi economy is on a “dangerous” rise... and monetary policy is at the heart of the storm!
The economic expert, Ahmed Saddam, confirmed on Saturday that the reality of the Iraqi economy is still suffering from fragility in light of citizens’ lack of confidence in the performance of monetary policy and the central bank, proposing a group of factors that may gradually improve the level of the monetary system in the future.
Saddam told that “the level of performance of the Central Bank is linked to the level of economic performance as a whole, and that the fragility of the Iraqi economy rose to 99 out of 120 points, after 3 years ago it was 97 out of 120 points, meaning there is no improvement in the reality of the Iraqi economy.” “.
He added, “It is not possible for the level of performance of monetary policy and the central bank to improve if the level of economic performance as a whole does not improve, because the latter is the one that generates confidence for citizens to turn to banks, open accounts, and create a state of stability.”
He explained, “The central bank controls only 10 percent of the monetary system - in the event that the monetary mass in Iraq is taken - and since its control is weak, its performance will be weak, and in this case even the central bank’s tools when raising the interest rate will not obtain a deposit because there is no trust.”
He continued, “Therefore, even if the Central Bank took decisions - even though the measures it took in theory were correct - the problem is the existing fragility, great confusion, and a state of mistrust.”
He pointed out that “there are only 15 million bank accounts in Iraq, and when taking the number of employees and retirees who receive salaries from the state, 10 million are forced to open bank accounts, and only 5 million are private sector bank accounts.”
He continued, “The Central Bank is currently seeking to increase accounts to reach 25 million bank accounts, to increase deposits, and this will not be achieved easily, so banking performance will remain weak.”
He added, “This confirms the need for a complete banking system, and this will not be achieved in the short term, but rather requires a long time, and therefore the dollar exchange rate will not stabilize. It also requires structural reform in the basic sectors of industry and agriculture, and if these are reformed, the exchange rate can gradually be stabilized due to the availability of production.” Locally, the demand for foreign currency decreases, the leakage of the dollar abroad decreases, and the payment of the investment bill at home increases.”
He stated, “All of these factors could improve the level of the monetary system and gradually implement the central bank’s policy in the future. Otherwise, the situation will remain at the current level.”
Don’t leave money on the table. ($75, to be exact.)
A 5 Star bank is offering a free online bank account with a debit card that pays $25 to the enrollee and $75 "commission" to everyone that refers someone to the account.
So YOU set up your account and receive your OWN $25 and then you will set up your family and friends and THEY will all get the same $25 and YOU get $75 for everyone that gets the $25.
It does take $10 to sign up for the account, and it has to come from a debit card (checking account) connected to you, but the $10 is available immediately in your account to use. So it's actually free to get your $25 but you need to have $10 available to set it up.
Yes it's true and it works and I have done it MYSELF!
Parliamentary Finance: The US Federal Reserve besieges the Iraqi citizen with dollars
On Thursday, a member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, accused the United States of America of exercising blackmail and pressure towards Iraq by creating a dollar crisis.
Al-Kadhimi said in an interview with the Al-Ma'louma Agency, “The American measures taken by the Federal Bank were the main reason behind the continued rise of the dollar against the Iraqi dinar.”
He added, "Washington is still exercising its conditions on Iraq to put pressure on the parallel market," noting that "the US Federal Reserve sets strict conditions on merchants importing goods from neighboring countries."
He pointed out that "the Iraqi citizen is a victim of the arbitrary measures of the United States of America," noting that "the Iraqi economy relies heavily on foreign imports to cover the total demand for goods."
Former MP Raed Fahmy had previously confirmed to Al-Maalouma that the political reason was related to the US Federal Reserve's strict measures for political purposes in order to put pressure on the Iraqi side.
It stands "among the adults" in purchasing power.. Learn about Iraq's global ranking in the cost of living
Iraq came in the “green zone” globally with regard to the cost of living, which is based on a set of criteria including housing and grocery rent prices, purchasing power, and restaurant prices.
Iraq's score on the cost of living reached 30.4 points, which places it ranked 118th globally, and ninth in the Arab world after Qatar, Bahrain, Lebanon, Saudi Arabia, Oman, Kuwait, Jordan, and Palestine.
Iraq's ranks were distributed regarding the factors and criteria of the index, as it ranked 124th in grocery prices, 119th in the rent index, and 117th in restaurant prices, while it came in 66th place in purchasing power as it has good purchasing power, as Iraq came in fourth place in the Arab world in terms of purchasing power.
The Kurdistan government confirms its pursuit of a "radical" solution to the oil file with Baghdad
The Kurdistan Regional Government confirmed, today, Wednesday, during a meeting with oil and gas companies operating in the region, that it seeks a radical solution to the oil file with the federal government, while clarifying that the issue of resuming exports needs joint procedures and understandings.
Regional government spokesman Peshwa Hawrami said, “A delegation from the regional government met today with oil and gas companies,” explaining that “during the companies’ meeting, they talked about the latest developments in the negotiations between Erbil and Baghdad regarding the oil and gas law.”
Hawrami added that during the meeting, "the regional government's desire for a radical solution to the oil file between Baghdad and Erbil was emphasized," noting that "the regional government has fulfilled all its obligations in order for the negotiations to reach an agreement and solution."
Hawrami continued, "In the meeting, the issue of resuming the export of the region's oil was also presented with representatives of companies," noting that "this issue requires joint procedures and understandings between all parties regarding the expenses of oil production and transportation."
On November 19, 2023, the Parliamentary Legal Committee in the Iraqi Parliament announced that the reading and approval of the general amnesty, oil and gas laws would be postponed to the next legislative year.
On August 9, 2023, the Prime Minister of the Kurdistan Region, Masrour Barzani, stressed the necessity of approving an oil and gas law based on the provisions of the Iraqi Constitution, pointing out the need for the draft law to receive the approval of the federal governments, the region, and the oil-producing provinces.
Negotiations continue between Baghdad and Erbil regarding reaching an agreed upon formula for the oil and gas law, which extends for 16 years without reaching the age of legislation, while the main Kurdish parties express their “fear” of the influence of an external decision that would prevent it from being legislated in parliament.
The heads of the federal government, Muhammad Shia al-Sudani and the regional head, Masrour Barzani, agreed to resolve the differences and outstanding issues, including the oil and gas law, in accordance with the country’s permanent constitution, during their meeting in the capital, Baghdad, on 1/11/2023.
The Oil and Gas Law is still a matter of controversy in Iraq after talk of preparing a new version of it, following signs of disagreement over its passage in light of differing opinions about it within the coordination framework.
The oil and gas law, which has been stalled in the Iraqi parliament since its first session until today, is one of the most prominent points on which an initial agreement was reached between the two sides, but there are signs of disagreement that may affect the possibility of its passage.
Al-Ittihad: A Kurdish delegation will arrive in Baghdad to settle all financial and economic disputes
The leader of the Patriotic Union of Kurdistan, Ahmed Al-Harki, confirmed on Saturday that the federal government's proposal to link the salaries of the region's employees and retirees to a ministry is an important step, while indicating that there is a delegation that will arrive in Baghdad to settle all economic and financial disputes.
Al-Harki said in a statement to Al-Maalouma, “What was revealed by the Federal Parliamentary Finance Committee about the government’s proposal to link the salaries of the region’s employees and retirees to the Federal Ministry of Finance is a good proposal and will end the most important problem between Baghdad and Erbil.”
He pointed out that "the proposal represents a temporary solution until the financial and economic differences between the two parties are resolved."
He continued, “The understandings between the federal government and the region are continuing, and specialized delegations will arrive in Baghdad in the coming days to settle all matters, especially in the oil field, and to return to exporting the region’s oil through the marketing company.” (SOMO) affiliated with the Federal Ministry of Oil."
The Kurdistan government continues to refrain from performing its duties by refraining from handing over the salaries of the region's employees under the pretext of not sending them from the central government, while it still continues to illegally seize oil export funds, as well as revenues from the border crossings.
The Iraqi Central Bank sells more than a billion dollars within a week
text of the document
M correspondent banks
good greeting .....
Within the framework of the Central Bank of Iraq’s endeavor to enable Iraqi banks to establish and establish solid banking relationships with the global and regional banking sector in order to achieve the sobriety of the Iraqi banking sector and full compliance with international standards and their requirements, the Central Bank of Iraq plans to gradually cancel the electronic platform for external transfers during the year 2024, leading to its complete cancellation. At the end of the year and keep it for purposes
Audit and statistical.
Accordingly, Iraqi banks must work to be prepared and able to access and deal with correspondent banks, and there are two types of requirements, some of which are basic and must be provided and worked to accomplish as quickly as possible, and some are important and support efforts.
Banks in this area, and all banks will be required to provide the requirements
The three basic principles below are to help them open accounts with correspondent banks:
Basic requirements:
Basic requirements:
These requirements represent the minimum documents that must be provided for negotiations with correspondent banks, and they reflect the bank’s financial and credit status and level of
Compliance, which are:
Bank Center: Al-Rashid Street - Baghdad - Iraq Tel: 8165171 Central exchange with four lines)
P.O. Box 64, Fax: 0096418166802
E-Mail: cbi@cbi.iq
Email: cbi@cbi.iq
Repercussions of the American withdrawal from Iraq.. The region fears “uniqueness” and the loss of the 23 billion
Kurdish politician Latif Al-Sheikh revealed today, Saturday (January 27, 2024), that the official Kurdish position is against the withdrawal of American forces from Iraq at the present time.
The sheikh said in an interview with "Baghdad Today", "The Kurdish parties do not want the withdrawal of American forces at the present time, because they believe that their withdrawal will mean the sole control of a particular political component and party in running Iraq."
He added, "There are interests of the coalition and American forces in the Kurdistan region, and there is monthly financial aid amounting to 23 billion dinars provided to the Peshmerga forces and training for those forces."
Al-Sheikh stated, “What is announced by the Kurdish parties welcoming the meeting of the Iraqi-American bilateral committee is a media statement and an attempt to absorb the anger of the armed factions and reduce their bombing of the region.”
On Thursday (January 25, 2024), the President of the Kurdistan Region, Nechirvan Barzani, welcomed the agreement between Iraq and the United States of America to resume the work of the Supreme Military Committee.
Barzani said in a statement, "We welcome the agreement of the Iraqi federal government with the American government to resume the work of their Supreme Military Committee ( HMC ) and the progress of talks on bilateral relations and the future of joint cooperation in the political, economic, cultural, security and military fields."
He added, "The Kurdistan Region supports this agreement and will cooperate and help protect the safety, security, stability and sovereignty of the country and strengthen relations on the basis of mutual respect and common interests."
The Iraqi Foreign Ministry said last Thursday that it had been agreed with the United States to formulate a timetable specifying the duration of the presence of the international coalition against ISIS in Iraq, noting that the agreement includes the start of the gradual reduction of coalition advisors.
She added in a statement that Iraq is committed to the safety of coalition advisors during the negotiation period for their withdrawal from the country.
Meanwhile, US Defense Secretary Lloyd Austin said that the United States and Iraq will hold working group meetings for the Supreme Military Committee.
He added that the committee will enable the two countries to move to a sustainable security relationship between them.
An official in the US Department of Defense (Pentagon) said that the committee meetings will not discuss the issue of the withdrawal of his country’s forces from Iraq.
He added, without revealing his identity, that the purpose of the Military Committee meetings is to discuss the future of security relations between Washington and Baghdad.
Last Wednesday evening, the US Ambassador to Baghdad, Elena Romanowski, delivered an important message from the US administration to the Iraqi government, according to a statement by the ministry.
Although the statement did not talk about the content of the letter, it pledged that it would be studied by the Prime Minister and the relevant concerned authorities, with the next steps being taken soon.
Commenting on this, four sources told Reuters that the United States and Iraq are about to begin talks on ending the coalition’s mission and how to replace it with bilateral relations, which is a step in a process that was halted due to the war in the Gaza Strip.
She indicated that the US Ambassador to Iraq delivered a message to the Iraqi Foreign Minister related to the process of ending the US-led coalition and establishing bilateral relations.
She also stated that the process may take several months to years, noting that the withdrawal of American forces is not imminent.
CNN also quoted informed sources as saying that Washington and Baghdad are expected to soon begin talks on the future of the American military presence in the country, amid public calls from the Iraqi government for the United States to withdraw its forces.
Last summer, the United States and Iraq agreed to form a higher military committee to look into the matter, according to what the Pentagon said, which indicated at the time that the discussions between American and Iraqi officials would be similar to a working group and would focus on the next phase of the anti-ISIS coalition led by the United States.
Why Iran Doesn’t Want U.S. Forces Out of Iraq
The Islamic Republic is more afraid of yet more sanctions than it is of 2,500 U.S. military advisors in Iraq’s anti-ISIS coalition.
In response to a Kataib Hezbollah attack Saturday on Ain Al-Asad Airbase that houses Iraqi and American troops, U.S. fighter jets on Wednesday bombed three facilities used by Iranian-backed militias in Jurf Al-Sakhr, destroying arms depots and training schools for missiles and explosive drones.
The militias have launched at least 130 attacks on U.S. forces in Iraq and Syria, since October, with the Biden administration responding a handful of times. America labels its responses “unilateral” to avoid embarrassing Iraqi Prime Minister Muhammad Al-Sudani, whose coalition relies on a pro-Iran parliamentary majority. Sudani could end U.S. presence in Iraq with a signature—but has yet to do so.
Why Sudani’s reluctance? The most plausible answer is that Iran itself fears U.S. sanctions on Iraq if Washington was ever forced to withdraw its troops. Iran—whose economy suffers immensely under heavy American sanctions—relies on three lifelines: oil exports to China in spite of U.S. sanctions, illicit trade (including narcotics and racketeering), and Iraq.
When America killed top Iranian Revolutionary Guard Corps (IRGC) general Qassem Soleimani and his Iraqi lieutenant Abu-Mahdi Al-Muhandes in Jan. 2020, the Iraqi parliament convened to vote on forcing the caretaker cabinet of Adel Abdul-Mahdi to send a letter that would have ended the presence of the anti-ISIS coalition troops, including 2,500 U.S. military advisors.
As Iraqis debated their law, then-President Donald Trump threatened Baghdad: “We will charge them sanctions like they’ve never seen before, ever. It’ll make Iranian sanctions look somewhat tame.”
Washington’s economic threat paid off. The Kurdish and Sunni blocs, which made up slightly less than half of Iraq’s 329-member parliament, skipped the session. The leader of the biggest Sunni bloc, Muhammad Al-Halbousi, then serving as speaker, was caught on a leaked tape arguing against the vote during the parliamentary debate. “One of the measures that the international community might take [in retaliation to this vote], might be to stop its financial dealing with Iraq,” Halbousi said.
Hundreds of protesters gather to protest against the attack by Iran's Islamic Revolutionary Guard Corps (IRGC) on the northern Iraqi city of Erbil last week in Akre, district of Duhok, Iraq on Jan. 22, 2024.
On Monday, the U.S. Treasury Department imposed sanctions on the Fly Baghdad airline, accusing it of using “seemingly legitimate business as cover for funding and facilitating [Iran-backed militias’] attacks.”
Iraq is the second biggest oil producer in OPEC, with four million barrels a day, raking in $120 billion a year. The Iraqi oligarchs, among the most corrupt in the world, need this money to fund their patronage networks. Iran too, needs Iraq’s money.
Iran sells gas and electricity to Iraq. The Biden administration has issued waivers that allowed Baghdad to settle over $10 billion it owed Tehran in 2023. Iran also siphons some or all of $10 billion in Iraqi cash through small exchange shops.
The cherry on top is $3 billion that Baghdad spends on 160,000 pro-Iran Shia militia fighters. For comparison, consider that the 170,000-strong professional Jordanian Army—with its F-16 fleet and Blackhawk helicopters, navy, and infantry, including artillery and tanks—costs $2 billion a year.
The Iraqi militias’ payroll is secretive, thus confirming suspicions that both Iraq’s regular army and the Iran-backed militias are stuffed with “ghost soldiers,” whose salaries are cashed by corrupt senior Iraqi officials and their bosses in Tehran.
Whichever way Tehran uses Baghdad’s money, it collects a hefty sum, especially when measured against Tehran’s annual expenditures of $49 billion. The Islamic Republic has every reason to want to avoid U.S. sanctions on Iraq, which Tehran fears might come if it instructs Sudani to send the letter to Washington demanding withdrawal.
But why strike U.S. troops in the first place, if Iran and its militias want to avoid an American withdrawal? The answer is multifold.
Domestically, rival Iraqi militias try to outbid one another and brandish their anti-West credentials by targeting U.S. troops in Iraqi bases. Regionally, Iran always reminds the world that it has Baghdad under its thumb, and that the continued presence of American military personnel in Iraq is by Tehran’s permission and under its mercy.
This is why Sudani’s statements have generated headlines but said little. “The end of the international coalition mission is a necessity,” the Iraqi PM said, without setting a date. In other statements, Sudani usually announces formation of committees to discuss withdrawal with Washington.
On his X account, where he usually comments on issues in three languages—Arabic, Kurdish, and English—Sudani congratulated the Iraqi soccer team for beating Vietnam at the Asian Cup on Wednesday but did not comment on the U.S. strike on the Iran-backed militias in Jurf Al-Sakhr.
Sudani, instead, let his military advisor Yehia Abdullah put out a statement in which he bashed America for striking a base that housed pro-Iran militias and Iraqi military. But Jurf Al-Sakhr houses no Iraqi troops, who are deployed alongside their American comrades at Ain Al-Asad, which often comes under militia fire, per statements from the Iraqi air force based there.
“We call on the international community to take responsibility in shoring up peace and security and prohibiting all the [American] violations that threaten Iraq and its stability,” Abdullah said. The statement was issued in Arabic only, perhaps to placate rivals, and certainly not to ask America to withdraw. So far, Iran does not seem to want that.
Military Stuff
3 American soldiers were killed on the Jordanian-Syrian border by a bomb-laden plane
Three American soldiers were killed and at least two dozen service members were wounded in an overnight drone attack on a small American outpost in Jordan, American officials told CNN, marking the first time American soldiers have been killed by hostile fire in the Middle East. since then. The beginning of the Gaza war.
The American network reported: The killing of three Americans in Tower 22 in Jordan near the border with Syria represents a major escalation of an already perilous situation in the Middle East.
US Central Command confirmed in a statement on Sunday that three service members were killed and 25 others were wounded in a one-way drone attack that “targeted a base in northeastern Jordan.”
As of Friday, there had been more than 158 attacks on U.S. and coalition forces in Iraq and Syria, though officials described the constant barrage of drones, missiles and projectiles as unsuccessful because they often did not cause serious casualties or structural damage. Infrastructure.
It is not clear why air defenses failed to intercept the drone, which appears to be the first known attack on Tower 22 since attacks on US and coalition forces began on October 17. US forces are on site as part of an advice and assistance operation. Mission with Jordan
US officials have repeatedly said they do not want to see rising tensions in the Middle East expand into a regional war. Asked last week whether the Pentagon assessed that Iranian proxies were intensifying their attacks on US forces, Pentagon Deputy Press Secretary Sabrina Singh said: “Not necessarily, no.”
In a previously taped interview with ABC News that aired Sunday morning, Chairman of the Joint Chiefs of Staff Gen. C.Q. Brown said part of the U.S. job is to "make sure we don't have a conflict like we had in the Middle East." expansion."
He added: "The goal is to deter them, and we do not want to go down the path of greater escalation that would lead to a much broader conflict within the region."
The launch of the first round of dialogue regarding ending the international coalition’s mission in Iraq
Today, Saturday (January 27, 2024), the first round of bilateral dialogue between Iraq and America to end the mission of the international coalition began.
Al-Sudani's media office said in a statement received by "Baghdad Today", "Prime Minister Muhammad Shia' al-Sudani sponsored the launch of the first round of bilateral dialogue between Iraq and the United States of America to end the mission of the international coalition in Iraq."
Earlier, the Iraqi Ministry of Foreign Affairs announced the success of the negotiations between the Iraqi and American governments that began in August 2023 and concluded with the necessity of launching the Supreme Military Committee (HMC) to formulate a timetable that paves the way for a gradual withdrawal of international coalition forces from Iraq.
US Secretary of Defense Lloyd Austin commented on the Iraqi Foreign Ministry's announcement in a press statement followed by "Baghdad Today", saying, "The United States and Iraq will hold working group meetings for the Supreme Military Committee."
Austin added, "The Supreme Military Committee will enable the United States and Iraq to move to a sustainable security relationship between them."
Official statement: Military specialists will complete the international coalition’s mission in Iraq
this is currently breaking news
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Under the patronage of the Prime Minister and Commander-in-Chief of the Armed Forces, Mr. Muhammad Shiaa Al-Sudani, the work of the joint supreme military committee between Iraq and the international coalition led by the United States was launched today, Saturday, in Baghdad, to review the mission of the international coalition to fight ISIS, after Iraq’s victory. On the most powerful terrorist groups in the world.
Military specialists will be responsible for completing the military mission of the international coalition against ISIS, a decade after the beginning of this mission, and the great success in achieving it, in partnership with the Iraqi security and military forces.
After this meeting, the work of the Higher Military Committee (HMC) will begin at the level of three work groups: (the level of threat posed by ISIS), (operational and situational requirements), and (strengthening the growing capabilities of the Iraqi security forces).
In light of this review, a specific timetable will be formulated to end the military mission of the coalition, and move to bilateral security relations between Iraq, the United States, and the partner countries in the coalition, and to comprehensive bilateral relations with these countries, while adhering to the Strategic Framework Agreement signed between Iraq and the United States in 2008. And also commitment to the safety of the international coalition’s advisors during the negotiation phase throughout the country, maintaining stability and preventing escalation.
The Prime Minister expressed his appreciation for the international coalition for the assistance it provided to Iraq in its war against ISIS terrorist gangs, and Iraq's desire to move to bilateral relations with all coalition countries.
His Excellency welcomed this agreement, which is the result of a year of joint dialogue and exchange of meetings, and is also considered part of the government’s fulfillment of its governmental program and the pledges it made before the people, stressing Iraq’s desire to move to comprehensive relations, on the foundations of international cooperation and friendship, with the member states of The coalition, led by the United States of America.
Before the start of the dialogue with the international coalition, the Prime Minister chaired a meeting that included military and security leaders representing the various types of Iraqi armed forces, which included His Excellency’s directives regarding the course of the dialogue and what is required for the next stage. To protect sovereignty and maintain the security and stability achieved, and the necessity of providing the atmosphere to proceed with reconstruction, development and construction plans.
•••••
The Prime Minister’s Media Office
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