Al-Sudani will visit Washington next month and discuss the dollar and the development of the military mission
Statement from the White House
White House Press Secretary Karine Jean-Pierre said on Friday that US President Joe Biden will welcome Iraqi Prime Minister Muhammad Shia al-Sudani to Washington on April 15 to discuss common priorities regarding the dollar and developing the military mission.
Statement by Karine Jean-Pierre:
On April 15, President Joe Biden will welcome Iraqi Prime Minister Muhammad Shia al-Sudani to the White House to coordinate on shared priorities and advance the strong bilateral partnership between the United States and Iraq.
Leaders will reaffirm their commitment to the Strategic Framework Agreement and work to deepen their shared vision of a secure, sovereign, and prosperous Iraq fully integrated into the broader region.
President Biden and the Sudanese Prime Minister will consult on a range of issues during the visit, including our shared commitment to the enduring defeat of ISIS and the evolution of the military mission nearly a decade after the formation of the successful global coalition to defeat ISIS.
They will also discuss ongoing Iraqi financial reforms to promote economic development and progress towards Iraq's energy independence and modernization.
Briefing Room
Statement from Press Secretary Karine Jean-Pierre on the Visit of Prime Minister Mohammed Shia’a Al-Sudani of Iraq to the White House
On April 15, President Joe Biden will welcome Prime Minister Mohammed Shia’a Al-Sudani of Iraq to the White House to coordinate on common priorities and reinforce the strong bilateral partnership between the United States and Iraq. The leaders will reaffirm their commitment to the Strategic Framework Agreement and deepen their shared vision for a secure, sovereign, and prosperous Iraq fully integrated into the broader region. President Biden and Prime Minister Sudani will consult on a range of issues during the visit, including our shared commitment to the lasting defeat of ISIS and evolution of the military mission nearly ten years after forming the successful Global Coalition to Defeat ISIS. They will also discuss ongoing Iraqi financial reforms to promote economic development and progress towards Iraq’s energy independence and modernization.
###
Iraqi banks are on the list of discussions between the Iraqi Foreign Minister and the US Treasury Undersecretary
Today, Friday, Foreign Minister Fouad Hussein discussed with US Treasury Undersecretary Brian Nelson in the United States of America bilateral, economic and financial relations between the two countries and discussed issues and files of common interest.
This came according to a statement, during Hussein's meeting with Nelson in Washington, while they stressed the importance of achieving development in order to develop the financial and banking sector and the reforms undertaken by the Central Bank of Iraq.
The statement stated that the two parties discussed the Iranian financial dues located in the Trade Bank of Iraq (TBI) and how to deal with payments in this framework.
The meeting touched on the situation in the Middle East, the ongoing war in Gaza and its repercussions on the economic situation of the countries of the region, and emphasized the importance of stabilizing stability.
Wednesday news
A lawsuit was filed against the Ministry of Finance for not disbursing petrodollar allocations
Representative Mustafa Sanad filed a lawsuit against the Iraqi Ministry of Finance for not disbursing petrodollar allocations, while the Federal Court set the date for the first pleading. Sanad said that the court “set April 3, 2024, as the date for the first pleading for the lawsuit it filed against the Ministry of Finance.”
The representative explained the reason for the lawsuit as being "the Ministry's failure to fund Basra Governorate and the oil provinces with the 30% surplus that was achieved due to the rise in oil prices above $70 per barrel."
He noted that allocation is “a legal provision that was included in the tripartite budget and is binding for implementation,” he said. He continued: “The government refrained from funding the provinces according to their legal and constitutional entitlement, which achieves part of justice, and was busy beautifying itself and financing the region outside of the entitlement,” he claimed.
The official Iraqi newspaper published instructions to “facilitate the implementation of the budget law” on (August 7, 2023), bringing the law into effect, without the 5% petrodollar amounts being disbursed to any oil and gas producing governorate so far. The estimated revenues from exporting crude oil are calculated on the basis of an average price of $70 per barrel, and an export rate of 3 million and 500 thousand barrels, including 400 thousand barrels per day for the quantities of crude oil produced in the Kurdistan region, based on an exchange rate of 1,300 dinars per dollar. The general budget stipulates the allocation of “(5%) of the revenues of crude oil (at the price specified in the general budget) produced in the region and the producing governorates, and (5%) of the revenues of crude oil refined in the refineries of the region and the governorates, and (5%) of the gas revenues.” The natural product produced in the region and the producing governorates, at the equivalent price of a barrel of oil based on the price specified in the general budget, provided that the region and the producing governorate have the choice of choosing one of the revenues produced above, and that an amount of (2,000,000,000) dinars is allocated as projects to the region and the producing governorates.” “The region and the governorates that are not organized into a region, after obtaining the approval of the Prime Minister, have the right to dispose of and use no more than (50%) of the petrodollar allocations in each governorate,” according to the instructions to facilitate the implementation of the general budget law.
this is big news today
Officially... Iraq joins the membership of the European Bank for Reconstruction and Development
The Iraqi Fund for External Development in the Ministry of Finance announced today, Wednesday, that the Republic of Iraq has joined the membership of the European Bank for Reconstruction and Development (EBRD) after the House of Representatives approved the accession law.
The Fund said in a statement received by Al-Eqtisad News, “The Republic of Iraq has joined the membership of the European Bank for Reconstruction and Development (EBRD) after the House of Representatives approved the accession law, which comes within the Ministry’s vision of strengthening frameworks of cooperation and communication between Iraq and international financial institutions.” “After the Fund’s continuous coordination with the European Bank’s management, the completion of Iraq’s contribution process, and the completion of all documents related to accession.”
He added, "Joining will enable the European Bank to finance projects within the country, promote development for various sectors, support the entrepreneurship initiative, and support the private sector through investments and participation in policy dialogue and technical assistance," pointing out that "the European Bank for Reconstruction and Development (EBRD) is a multi-faceted development bank." Parties, headquartered in London, the bank focuses on investment as a tool to rebuild market economies in beneficiary countries, with an emphasis on supporting the private sector and its investments in advisory and political activities. The bank also helps countries develop their policies to promote energy self-sufficiency or renewable energy markets.
Chaired by Al-Sudani.. Outputs of the sixth meeting of the Supreme Committee for Reconstruction and Investment
Today, Wednesday, Prime Minister Muhammad Shiaa Al-Sudani chaired the sixth meeting of the Supreme Committee for Reconstruction and Investment, while issuing a number of decisions.
The Prime Minister’s media office stated in a statement received by Al-Iqtisad News, “Al-Sudani chaired the sixth meeting of the Supreme Committee for Reconstruction and Investment, and discussed service and residential investment opportunities in various governorates. Residential investment opportunities were also discussed in Baghdad, and the importance of maintaining appropriate unit prices was emphasized.” Residential areas, the projects’ conformity with the basic design of the capital, Baghdad, and the projects not affecting public service aspects.”
He added, "The meeting approved a group of investment projects (residential, industrial, and entertainment) in various governorates."
The statement indicated, “The meeting approved in the field of housing, which represents the government’s most prominent priorities, enabling the company investing in the Baghdad Paradise project to occupy the actual area free of encroachers, amounting to 119 dunums, to create an integrated residential complex. The issue of investing a plot of land in Al-Khar district was also referred to In Baghdad, to the Ministry of Construction and Housing - New Cities Authority, to study the project and indicate its compatibility with the government’s vision of residential investment.
He continued, "The issue of establishing two residential cities, the first a model city and the second an integrated city in Maysan Governorate, was referred to the Ministry of Construction and Housing - New Cities Authority, to study the two projects and indicate the extent of their compatibility with the government's vision for residential investment."
He pointed out that "the meeting took a decision to stop offering the allocated lands and properties owned by public companies, unions and federations for investment in the Salhiya Central Market Investment Project, and to cancel all current procedures on them until the appropriate uses for these lands are determined, provided that all investment opportunities are presented, after determining the uses, The Supreme Committee for Reconstruction and Investment, to take the appropriate decision regarding it.”
He added, "The meeting excluded the Ministry of Industry and Minerals from the announcement conditions stipulated in the provisions of Council of Ministers Resolution 245 of 2019, amended by Resolution 23374 of 2023, for the sodium carbonate production project, in Anbar Governorate. The meeting also took a decision to exclude the Ministry from the announcement conditions stipulated in the provisions of the decision." mentioned above, to establish a compound fertilizer project.”
He added, “Approval was issued for the request to establish an iron and steel factory contained in the letter of the National Investment Authority in Diwaniyah Governorate, as an exception to the conditions for advertising stipulated in Cabinet Resolution 245 of 2019, amended by Resolution 23374 of 2023, provided that the governorate and its Investment Authority bear responsibility for selecting companies.” “It was decided to establish the Diwaniyah Airport project, as an exception to the conditions for the announcement stipulated in Cabinet Resolution 245 of 2019, amended by Resolution 23374 of 2023, contained in the letter of the National Investment Authority.”
The meeting authorized the governor of Basra "to negotiate the investment of the presidential palaces in Basra, and to present the results of the negotiations to the Supreme Committee for Investment and Reconstruction."
He noted, "The investment project to equip and install a vehicle inspection system (explosives detection devices) at the entrances to the capital was approved to be excluded from the announcement requirement, based on the request of the Ministry of Interior, provided that the Ministry bears responsibility for selecting the implementing company."
The statement concluded, “The project to create an electronic platform to announce public tenders for government investment plan projects has been exempted from the announcement requirement contained in the Ministry of Planning’s letter on March 19, 2024, provided that the Ministry bears responsibility for selecting the implementing company.”
Leaders of Iraqi armed factions meet in Tehran: There will be no end to the truce with Washington soon
The leader of the Hezbollah Brigades , one of the factions of the “ Islamic Resistance in Iraq ,” Abu Hussein al-Hamidawi, confirmed on Tuesday that suspending military operations against American interests in Iraq “is not the end of the matter,” warning those he called “the politicized and the weak” against interfering in the rationale for the resistance’s work. .
Al-Hamidawi met with a number of armed faction leaders in the Iranian capital, Tehran , including faction leaders in and outside Iraq, and discussed with them the latest developments in the situation and the issue of suspending operations against Washington, according to a statement by the armed group, yesterday, Tuesday.
The statement added, "Al-Hamidawi stressed in the meeting that the efforts of the Islamic resistance are focused on defending vulnerable peoples and protecting the nation's gains," indicating that "the resistance takes into account timing, interacts with basic challenges, and manages its decisions with wisdom and deliberation."
He said that "the politicized and the weak must not be allowed to interfere in the aspects of the resistance's work, and that suspending military operations is not the end of the matter, and that the resistance possesses the capabilities to manage a long-term battle."
According to the statement, the Tehran meetings included an emphasis on “the importance of the victory of liberation movements as a means of promoting the common interests of anti-imperialist forces, especially in West Asia and North Africa.”
The resistance factions have no intention of ending the truce.”
In addition, Al-Hamidawi did not express a clear position on whether operations against America might resume or not, but a deputy in the “ Coordination Framework ” coalition, which includes political forces linked to the armed factions, confirmed that “the meetings and dialogues of the faction leaders confirm that there is no imminent return to operations.” Against American interests.
The representative explained, in an interview with Al-Araby Al-Jadeed, on the condition that his name not be mentioned, that “the meeting conducted by leaders of Islamic factions within the resistance axis in Tehran is a regular meeting that takes place from time to time to assess the general situation, and that it focused on the file of operations against Washington and the possibility of its return.” Pointing out that "the leaks confirmed that there is no intention of the factions to end the truce with Washington in the near future."
He pointed out that "the factions had previously assured Prime Minister Muhammad Shiaa al-Sudani that they would adhere to the truce until the American withdrawal from Iraq was completed, and then for every recent incident."
On February 5, the Iraqi Hezbollah Brigades announced the cessation of its military operations against Washington, justifying this with a number of reasons, most notably giving the government of Prime Minister Muhammad Shia al-Sudani the opportunity to negotiate the removal of American forces from the country.
This was followed by a similar position by “Al-Nujaba,” “Sayyid al-Shuhada,” and other factions within the “Islamic Resistance,” which carry out operations against the Americans in Iraq and neighboring Syria, which are controlled by the “Syrian Democratic Forces” (SDF), in response to “American support.” Open to the Israeli occupation in its continuing crimes in the Gaza Strip.
The "Islamic Resistance in Iraq" and its affiliated militias, supported by Tehran, carried out more than 180 missile and drone launches at the American bases of Ain al-Assad and Harir in Anbar and Erbil, western and northern Iraq, in addition to similar attacks on American bases in eastern Syria, within Al-Hasakah and Deir. False.
Iraq is moving toward manufacturing armored vehicles and drones in the coming months
link
The head of the Military Industrialization Authority, Engineer Mustafa Ati, confirmed, on Wednesday, Iraq’s intention to increase the production of drones and add a line for the production of combat armor.
Ati said in a televised interview followed by Mawazine News: “We are about to produce a new armored vehicle for the first time in Iraq, and we have signed a contract with the Ministry of Interior to equip it with 80 reconnaissance aircraft.”
He added, “We have workshops, a factory, and cadres working on production.” Drones at a time when we aspire for “drones” to be competitive with “Iranian drones.”
He pointed out that “arms contracts with the Ministry of Interior and the Popular Mobilization Forces exceeded 370 billion,” noting that “Iraq launched a special factory for manufacturing “surveillance cameras” and is supported by companies. International".
Saudi Arabia approves an agreement to open a regional office for the International Monetary Fund in Riyadh
link not iraq I jsut thought this was interesting
Enhances the Fund’s presence and partnership with Arab institutions
The Saudi Council of Ministers, headed by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, approved on Tuesday evening a headquarters agreement between the government of the Kingdom of Saudi Arabia and the International Monetary Fund to establish a regional office for the Fund in the city of Riyadh, according to the Saudi Press Agency, SPA.
The Saudi Ministry of Finance had signed an agreement with the International Monetary Fund regarding the establishment of a regional office for the Fund in the Kingdom.
The Director of the International Monetary Fund, Kristalina Georgieva, recently said, “Our new office in Riyadh works to strengthen our presence and partnerships with Arab institutions.”
This step reflects the Kingdom's position as the largest economy in the region and one of the most prominent economies of the G20.
Canada announces funding for development projects in Iraq
From: Global Affairs Canada
News release
March 19, 2024 - Ottawa, Ontario - Global Affairs Canada
Canada and Iraq’s friendly ties and good bilateral relationship are supported by shared interests and a commitment to advance security, stability and prosperity in Iraq and the region. Since 2016, Canada has supported development assistance in Iraq to strengthen good governance, advance gender equality, address climate change and promote the economic empowerment of women and girls.
Today, the Honourable Ahmed Hussen, Minister of International Development, met with Fuad Hussein, Iraq’s Deputy Prime Minister and Minister of Foreign Affairs. During this meeting, Minister Hussen announced $14.77 million in development assistance funding for 3 projects in the country:
- The International Center for Biosaline Agriculture will receive $5 million for the Strengthening Evidence-Based Water Management project. This initiative aims to improve the Government of Iraq’s ability to develop and apply evidence-based knowledge to better manage and sustain the country’s water resources.
- Action Against Hunger Canada will receive $4.77 million for the Promoting Feminist Solutions to Climate Change-Driven Water and Food Insecurity project. This initiative aims to increase the adoption of climate-smart approaches along food value chains, as well as increase community decision making to promote climate change governance by strengthening women’s rights and youth-led organizations in drought-affected areas.
- The National Democratic Institute will receive $5 million for the second phase of the Supporting Gender-Sensitive Local Governance Through Women’s Advisory Boards Program. This initiative aims to strengthen women’s capacity to influence decisions on the allocation of resources in their communities. The second phase of the project will extend the Women Advisory Boards model to a wider geographic area.
Quotes
“The government and people of Iraq are working to stabilize their institutions and communities, put the country back on the path to peace and prosperity and respond to the substantial threat of climate change. The support announced today demonstrates Canada’s commitment to helping them build a better future for themselves, including by establishing climate-resilient, inclusive systems and institutions.”
- Ahmed Hussen, Minister of International Development
Quick facts
Under its Middle East engagement strategy, launched in 2016, Canada has provided over $586 million in funding for non-military assistance to Iraq. This includes over $288 million for humanitarian assistance, more than $191 million for security and stabilization assistance and over $107 million for development assistance.
Associated links
The Iraqi Foreign Minister opens the Iraqi Consulate in Mississauga, Canada
link then he's coming here too
The Iraqi Deputy Prime Minister and Foreign Minister, Fuad Hussein, opened the Iraqi consulate in the Canadian city of Mississauga.
Fouad Hussein visits Washington today to raise the issue of American withdrawal
A high-level Iraqi delegation headed by Foreign Minister Fuad Hussein arrives in Washington, DC, today.
According to a diplomatic source, during its visit, which will last several days, the delegation will hold a number of meetings in the American capital.
The attacks launched by the "Islamic Resistance in Iraq" factions and the future of the American presence in the country were two hot topics in the dialogues that took place between the two countries during the recent period.
The United States targeted faction headquarters and leadership in response to the targeting of its forces in Iraq, Syria, and Jordan.
The Iraqi-American dialogue was launched on January 27 to “review the mission of the international coalition to combat ISIS,” and Iraq announced on February 11 that it would resume and continue periodically “as long as nothing disturbs the peace of the talks,” in reference to the American strikes.
Thuraday
Parliamentary Committee: The oil and gas law is lingering in the corridors of the government... and the reason?
A member of the Parliamentary Oil, Gas and Resources Committee revealed the reasons for the continued disruption of the oil and gas law legislation, which has been postponed for several parliamentary sessions.
Ali Abdel Sattar Al-Mashkour told {Al-Furat News} agency, "First of all, everyone should know that the draft oil and gas law is still with the government and has not reached the House of Representatives or our committee for us to study it or initiate its legislation."
He added, "There is a real intention on the part of the committee to legislate this law, but on its condition and conditions, and that it gives everyone their due rights and does not discriminate between one party and another regarding entitlements and duties."
Al-Mashkoor said, “In the end, there are still controversial points at the core of the spirit of the law, and this is what made it wander politically within the corridors of the government.”
It is noteworthy that since the first session of the Iraqi Council of Representatives, in 2005, the draft oil and gas law has been stuck in the drawers, as disagreements prevented its approval in its final form, to the point that it was described as the “big knot” law in Iraq due to the extent of the disagreements over it.
After 18 years, he announced, in late August 2023, the formation of a committee to develop a draft of the oil and gas law and present it to the government and the House of Representatives.
Iraq exports an average of 3.3 million barrels of crude oil per day, and black gold constitutes more than 90 percent of the Iraqi treasury’s resources.
The draft oil and gas law in Iraq available to Parliament stipulates that responsibility for managing the country's oil fields must be entrusted to a national oil company, and supervised by a federal council specialized in this subject.
For its part, the Kurdistan Oil Law indicates that the Iraqi government “has the right to participate in the management of fields discovered before 2005, but the fields discovered afterward belong to the regional government.”
Iraq's accession to the World Federation of Free Economic Zones
The Industrial Estates Authority, one of the formations of the Iraqi Ministry of Industry and Minerals, announced its joining the World Federation of Free Economic Zones (FEMOZA), in cooperation with the United Nations Industrial Development Organization (UNIDO).
The Director General of the Authority, Hamid Awad Muhammad, said in a statement received by Al-Iqtisad News, that “the Authority is a vital entity charged with advancing industrial cities and their prosperity throughout Iraq,” indicating that the joining came due to the importance of international partnerships in achieving the Authority’s goals in light of economic changes, market movement, and lines. Global navigation, land and rail transport, and in order to interact with them professionally, taking advantage of the strategic geographical location of Iraq.
He pointed out that “the FEMOZA organization is considered an internationally known union committed to promoting sustainable economic zones and has links with (200) countries in the world.”
The Director of the Authority added, “This affiliation confirms the objectives of the Industrial Estates Authority in creating an environment conducive to investment, innovation, and economic diversification by benefiting from the organization and its global network, as well as attracting foreign investment to Iraq and enhancing the Authority’s ability to establish and manage industrial zones that help in sustainable development and business participation.” International cooperation and accelerating industrial growth within Iraq by benefiting from the expertise of specialized international organizations.
Societal reluctance to make bank deposits in Iraq...the full story
Iraqi citizens are afraid to continue depositing their money in local banks, fearing that they will later be unable to withdraw it as a result of the US sanctions imposed from time to time on banks operating inside the country.
There are many government and private banks spread in Iraq, as their number throughout the country reaches 78 banks, including 7 government banks, one of which is Islamic, in addition to 28 private Islamic banks, and 25 commercial banks that include two branches in the Emirates and Saudi Arabia, in addition to 16 foreign commercial banks and two Islamic banks. Foreigners, and these banks have 891 branches, most of which were formed after the year 2003, in addition to opening a currency selling window in the Central Bank of Iraq.
Reasons for abstention
The economic expert, Omar Al-Halbousi, attributes the reluctance of citizens to deposit their money in Iraqi banks to a group of factors, the first of which is “the citizen’s lack of confidence in the Iraqi banking sector, especially after the collapse of a group of banks that have been in operation for several years, without returning depositors’ money despite their submission of complaints to the Central Bank and the Iraqi judiciary.” .
Al-Halbousi added in an interview with Shafaq News Agency, “Also, the weakness of the Central Bank of Iraq in controlling and supervising the work of banks was another factor for citizens hoarding their money at home without depositing it in banks. In addition, the ownership of private banks by people accused of corruption or external parties is one of the factors.” Citizens’ reluctance to deposit their money in the banking system.”
He continues, "Then came the American sanctions on a group of private banks, forming another factor in citizens' reluctance to deal with banks and deposit their money in them for fear of these banks' funds freezing or faltering and their inability to return depositors' money, since the banks depend on the dollar as the basis of their work, and there is no... “It has investment diversification that can compensate for that.”
“Based on the above, citizens’ reluctance to deposit their money in banks will increase with the increase in sanctions on banks,” Al-Halbousi says.
It is noteworthy that the US Treasury Department had imposed sanctions on 32 private banks out of 72 banks. The sanctions imposed by the Treasury Department, according to Al-Halbousi, are divided into two types: “The first is the penalty of preventing dealing in dollars while these banks can deal in other currencies.”
He added, "The second type of sanctions is the Foreign Assets Management Office in the Ministry of the Treasury imposing sanctions on banks, the latest of which is (Al-Huda Islamic Bank), which means that this bank is unable to deal in dollars, and foreign banks cannot deal with it due to its serious violations."
He explains that "the sanctions imposed by the US Treasury Department on banks come due to their committing financial crimes, including (money laundering, financing terrorism, circumventing US sanctions, smuggling the dollar, and using forged commercial invoices)."
He points out that "the US Treasury Department had directed the Central Bank of Iraq to monitor the work of banks, follow up on their activities, and punish perpetrators of financial crimes."
Al-Halbousi believes that “the Central Bank of Iraq overlooked this issue, which prompted the US Treasury Department to impose sanctions on these banks, knowing that the list of sanctions may be increased, and there are banks that will soon be punished for committing financial crimes. Sanctions will also be imposed on companies and individuals who constitute fronts for parties accused of terrorism.” .
The economist believes that "the first government agency to be punished is the Central Bank of Iraq and a group of its perpetrators, which will lead to a serious economic and financial setback."
Al-Halbousi states, “The amount of cash exported by the Central Bank is 102 trillion Iraqi dinars until the end of December 2023, with 60 trillion dinars being the size of deposits in government banks, 13 trillion dinars being deposits in private banks, and 93 trillion dinars being the size of the amount of cash outside.” The banking system.
Imbalance of financial inclusion
The Iraqi banking system suffers from a lack of citizens’ confidence in it, and financial inclusion in Iraq faces major challenges related to the inability of citizens to achieve their financial ambitions with Iraqi banks.
Since Iraq suffers from a lack of financial inclusion, “this scientifically and practically hinders any attempt at sustainable development in light of the growing mismanagement and implementation of decisions and laws in accordance with political desires,” according to economic affairs researcher, Ahmed Eid.
Eid explained to Shafaq News Agency, “Citizens’ cash deposits in banks are affected by several factors, foremost of which is the lack of governance and deterrent oversight against legal violations in disbursing funds, as well as interest rates related to loans.”
He continues, "Also, there is a delay in modern technological activities in managing financial matters, and the failure to implement electronic payment in the correct manner, as electronic payment operations are still delayed, and there are no attractive offers for citizens."
The researcher in economic affairs confirms that “citizens prefer to save and store their money at home rather than deposit it in banks, because the majority of banks in Iraq are unreliable and belong to influential parties, which makes them vulnerable to bankruptcy at any time. As for government banks, they do not provide offers and facilities to citizens in order to "Push their desires into deposit."
Deposit in dollars and dinars
As for cash deposits, they may be in dollars or Iraqi dinars. If they are in Iraqi dinars, the issue has nothing to do with American sanctions and there is no problem, and they continue to be implemented, according to the economic expert, Abdul Rahman Al-Sheikhli.
Al-Sheikhli added to Shafaq News Agency, “If the cash deposits are in dollars, it is worth clarifying at the beginning that the banking custom is that when a citizen deposits his money in the bank for current account purposes or as deposits for interest purposes, the depositor’s money remains circulating within banking channels from the same bank in which the citizen deposited his money, and it will not You go somewhere else."
“When the citizen needs it, the money is returned to him in the same currency, because it did not leave the bank, but rather circulates within the banking channels of the bank itself,” according to Al-Sheikhly.
Al-Sheikhili points out that “sometimes there is a delay when returning funds, as previously it was possible to resort to the Central Bank and withdraw funds from it in order to give the money to the depositor, but currently withdrawals from the Central Bank in dollars are not allowed, which requires returning the funds that were given as credit to others, so sometimes it may be delayed.” Delivery time.”
He notes that "the bank is punished, held accountable, and its license is withdrawn if it hesitates and does not pay its obligations to citizens. This is a sacred matter, but sometimes as a result of some behaviors that have occurred among banks in general, they have a shortage in banking liquidity."
He points out that, “During the entry of ISIS in 2014, all banks had letters of guarantee belonging to companies, but these companies were reluctant to carry out their duties, so the amounts of the letters of guarantee were confiscated, and as a result, liquidity became scarce in some banks, and they stumbled, but the solid banks Which has great liquidity and high cash masses estimated at trillions, not billions, has not faced a problem.”
Al-Sheikhly added, “The Central Bank also reserves part of the banks’ capital as a reserve, and can compensate through it. There is also a deposit insurance company established by the Central Bank approximately 4 years ago, and this covers part of the deficit that the bank may suffer from.”
He added, "But this is in the event of the bank's bankruptcy, and this matter only happened in one bank, which is (Basra International Bank), which declared bankruptcy, and there is a move to restore its business, but the rest of the banks do not face a problem, this is on the one hand."
Al-Sheikhli continues, “On the other hand, the eight banks that were recently subjected to a ban on dealing in the dollar, this is the first time such a decision has been issued by the Central Bank of Iraq and not by the American administration, except for one bank (Al-Huda) of these eight banks, which was at the behest of the Ministry of the Treasury.” America to prove its relationship with the Iranian Revolutionary Guard.
As for the remaining seven other banks, the blocking decision (preventing their entry into the currency selling window) was temporary and for audit and supervisory purposes by the Central Bank, according to Al-Sheikhly.
He points out that "the window for selling the currency will gradually end during the year 2024, and the same will be the case for the electronic platform, so the extent of the negative impact of this ban on banks will not be of great benefit."
The economic expert explains this by saying, “The decision was issued by the Central Bank, in agreement with the US Treasury Department, to diversify the basket of currencies without limiting it to the US dollar, and on this basis, accounts were opened for private banks abroad with solid foreign banks with foreign banking relations, and based on that, banks that withheld Regarding dealing in the dollar, working with all banking products except dealing in the dollar.”
Central bank standards
The Central Bank of Iraq supervises the work of banks based on Law No. 56 of 2004, and a special law on money laundering and terrorist financing No. 39 of 2015 was enacted, and it began implementing this law on January 1, 2016.
The Central Bank began to impose on banks to apply global compliance standards, which forced banks to assign a manager to follow up on money laundering operations for all existing money movements in order to comply with international standards, according to economic expert, Abdul Rahman Al-Mashhadani.
Al-Mashhadani explained to Shafaq News Agency, “But the problem is that a large portion of these banks did not adhere to the standards, and that whoever deals with the American side must adhere to its standards by preventing dealing with sanctioned countries, but neither the banks nor the central bank nor even the government were able to convince the American side that this money “It is neither money laundering nor terrorist financing, but rather trade financing.”
He explains, “Iraq imports from Iran about 25 to 30 million dollars daily, and how is this met in the absence of trade with them? Rather, we import and do not export to them, and whoever exports needs money?”
Al-Mashhadani continues, “The Central Bank of Iraq recently asked the banks to seek the assistance of experienced international companies to audit their work and programs during the past three years, so that when a report is issued by these companies, the American side will not claim favoritism in the report, because these companies are solid international companies, and the Americans are... Who proposed 5 companies, and that banks be transformed from shops into real banks.”
He notes that “the problem is that the Iraqi banks are small, and one of the conditions was for the banks to obtain a classification from the international classifications issued by international classification companies, whether (Standard & Poor’s) or (Moody’s) and others. When a report is issued by these institutions, a report will be issued.” "Sober, and the American side will not object to it."
US sanctions
The economic expert points out that “the number of Iraqi banks subject to US sanctions is 28 banks, and they started with 4 banks (the first phase) in November 2022, which are (Al-Ansari Al-Islami for Investment and Finance, the Islamic Holding Company for Investment and Finance, the Iraqi Middle East for Investment, and Asia.” Iraq Islamic Investment and Finance).
He added, "Then it was followed by 14 banks (the second phase) in May 2023, which are the banks (Islamic Advisor for Investment and Finance, Al-Qurtas Islamic Investment and Finance, Islamic Spectrum, Elaf, Erbil for Investment and Finance, International Islamic Bank, Across Iraq, Mosul for Development and Investment, and Al Rajeh.) , Sumer Commercial, International Islamic Trust, Ur Islamic, Islamic World for Investment and Finance, and Zain Iraq Islamic for Investment and Finance).
Al-Mashhadani confirms, “And then 8 banks were added to it last February, which are (Assyria International Investment, Iraqi Investment, Iraqi Union, Kurdistan Islamic International for Investment and Development, Al-Huda, Southern Islamic Investment and Finance, Arab Islamic, and Hammurabi Commercial).”
He notes that “Al-Bilad Bank, by Hamad Al-Moussawi, was punished, but it changed its name to (Al-Huda), and was punished again. Therefore, when Hamad Al-Moussawi Bank is counted as one, the total is 27 banks, but when each penalty is calculated separately, Then there are two penalties, and thus the total is 28 banks.”
Adviser to the Prime Minister: The decline of the dollar is an indicator of the strength of the dinar and a tangible success of the economic policy
Saleh told {Al-Furat News} agency, “We indicate the strength of the Iraqi dinar, expressed in the decline in the parallel market rates of exchange in favor of the official exchange rate, a tangible success in the cohesion of the country’s economic policy in its three aspects: monetary, financial, and commercial, in providing a coherent climate of stability in the general level of prices.” And containing seasonal price fluctuations for high-demand items, specifically providing basic food commodities that have low price elasticities of demand because they are necessary commodities associated with consumption and daily living.”
He noted "the importance and speed of customs procedures, which were represented by (reducing customs tariffs and diversifying imports without quantitative limits for necessary goods) as part of the performance of the financial policy in supporting price stability and ensuring the supply of food and essential goods and production supplies at the official exchange rate and in accordance with the requirements of the national economy."
The Parliamentary Finance Committee had expected the dollar price to continue to decline as the results of the measures taken by the Central Bank of Iraq to limit the rise in the foreign currency began to appear.
The dollar exchange rate a few days ago was about 1,500 or 1,490 thousand dinars to the dollar.
Economist: Internal and external reasons behind the dollar's decline
Salah Nouri told {Al-Furat News} agency, "The decline in the dollar exchange rates appears to be the result of the optimism of the convergence of the policies and procedures of the Central Bank of Iraq with the policies of the US Federal Reserve."
He stated that "the external factors influencing the exchange rate are related to the US Federal Reserve's actions and the internal demand for the dollar and its speculative brokers."
The Parliamentary Finance Committee had expected the dollar price to continue to decline as the results of the measures taken by the Central Bank of Iraq to limit the rise in the foreign currency began to appear.
The dollar exchange rate a few days ago was about 1,500 or 1,490 thousand dinars to the dollar.
Developmental digitization
There has been a lot of talk during the current stage about digital transformation in Iraq, or what is called automation, or digitization, and people were divided regarding this transformation into two groups, between supporters and opponents, and it seems that the group of supporters is the largest and broadest, and many of the second group (opponents) His opposition may have been linked to various reasons. Perhaps among these reasons is that many members of society are still not proficient in dealing with modern technologies, so he feels alienated by his presence in digitized worlds.
A few days ago, I was at one of the filling stations, to refuel, and it happened that there was a man in front of me who had finished filling his car’s tank with improved gasoline, and then he presented his electronic card to pay the account, because the station had started working with the electronic payment mechanism, but when the concerned employee inserted the card into the machine, There was a major delay that developed into a heated dialogue between the card holder and the employee. This dialogue was accompanied by a wave of “horns,” and everyone stuck their heads and hands out of the car windows, waving and shouting that the issue should be resolved. One of them said, “Uncle, I am paying the Tafila money, but leave us alone”!!
While another commented by saying: (Uncle, we don't have technology money!! The best thing is to have your own clothes in your pocket)!! And many other comments, and in the end, the man paid the amount in cash, and the angry looks of those standing by continued to mourn him!!
This is one of the pictures that I saw, and it requires stopping at it, to put in place the required treatments, in light of the presence of important steps and procedures in many state institutions, in terms of digital transformation in the country. We have now had an electronic passport, and most of the important documents are now obtained by the citizen through the window. Electronic, even the recording of traffic violations was transformed electronically, after the installation of a system of cameras and radars at many intersections in the capital, Baghdad, and this measure was met with some rejection by those who did not want to adhere to traffic controls and instructions, or because the infrastructure was not ready to launch such an advanced project.
At the level of state institutions, there is hardly a ministry or entity that has not taken steps towards digitization, within the framework of a government strategy that aims to reach digitized services that suit the needs of users and targets alike. This goal, of course, requires providing the infrastructure that contributes to the transformation process. Digital according to strategies that keep pace with the tremendous technological developments that the world is witnessing. These strategies, if implemented, will lead to saving more time and improving the performance level of employees, leading to the use of artificial intelligence, which has also become an important modern requirement, through which a suitable space can be created.
For employees, it pushes them towards creativity and solving problems facing work. It is even possible to predict such problems before they occur. The process of digital transformation is no longer a luxury issue, but rather a lifeboat, and everyone must board this boat, otherwise they will find themselves outside the regional borders of the ports of life.
Here, and with the presence of a promising government strategy through which it seeks to achieve this goal, the issue of transformation requires providing many requirements, and working to raise the level of societal interaction in all its aspects, with modern technologies, and at the forefront of those requirements is the use of easy communication systems that are compatible with... Mobile devices, after the mobile phone has become a major and important window of human life, and that measures of this kind would be consistent with the directions to achieve the sustainable development goals, which seek everyone’s participation in the process of building the future that people aspire to, and not leave them behind. Someone behind.
An an official presence...the opening of a "new" Iraqi consulate in a Chinese city
The opening of the Iraqi Consulate General in Guangzhou, China, was announced today, Thursday, in a ceremony attended by the Director General of the Consular Department of the Chinese Ministry of Foreign Affairs, Wu Xi, Deputy Governor of Guangdong Province, Lin Tao, the Iraqi Ambassador to China, Saeed, and the Consul General in Guangzhou, Sahoud, according to the Chinese embassy statement. Iraq has a response to Shafaq News Agency.
The statement added: “On behalf of the Ministry of Foreign Affairs, Wu Xi congratulated the opening of the Consulate General of Iraq in Guangzhou.”
The statement quoted Wu Xi as saying; "2024 is a crucial year to comprehensively promote Chinese-style modernization. Under the wise leadership of President Xi Jinping, China is striving to promote high-quality development and build a community with a shared future for mankind."
She pointed out that China and Iraq have a deep traditional friendship and have established a strategic partnership. We believe that the establishment of the Consulate General will provide a new window for mutually beneficial cooperation and friendly exchanges between China and Iraq, according to the statement.
Parliamentary insistence on implementing Article 30 of the Budget Law.. What does it include?
Representative Mudar Al-Karawi confirmed on Thursday that there is parliamentary insistence on supporting an article in the 2023 budget that will revive the national industry.
Al-Karawi, a member of the Finance Committee, said in an interview with Al-Maalouma: “There cannot be a strong Iraqi economy without an industrial structure that is capable, through production, of meeting the needs of institutions and reaching markets, and this matter cannot be achieved without objective openness that takes into account support for the product.” directly and opening the doors to marketing.
He added, "Article 30/Second of the General Budget Law of 2023 imposed an obligation on all ministries and government institutions to meet their needs and purchase their requirements and supplies from the local product," pointing out that "the committee will direct official questions and inquiries to parties that are not strictly committed to this article."
He pointed out that "the application of this article is very limited and this is a grave mistake despite the availability of alternatives to many materials through the national industry," indicating that "the committee will study this file and explain the reasons for not implementing it in order to proceed with offering practical solutions that are binding on ministries, government agencies and institutions."
Marketing national production through ministries and agencies supports the industry and pushes it to modernize its lines in a way that leads to creating recovery and providing more job opportunities.
Bloomberg: Baghdad wants to amend the budget to resume the export of Kurdistan oil
link to the actual Bloomberg article link here
The American Bloomberg Agency reported, on Friday, that the Iraqi government is still studying a proposed amendment to the federal budget that would enable Baghdad to pay the salaries of international oil companies operating in the Kurdistan Region.
According to news from the agency, translated by Shafaq News Agency, the change will allow producers in the Kurdistan Region to resume production, and eventually exports through the Turkish port of Ceyhan, as the closure of the Turkish pipeline caused the loss of billions of dollars in revenue for the governments and companies concerned.
According to the American agency, one of the main obstacles to restarting flows is the cost of Kurdish oil production, as Prime Minister Muhammad Shia al-Sudani set this cost last December, which is $21 per barrel, compared to only $8 in other regions of Iraq. .
Abdul Ghani said in response to Bloomberg’s questions: “We seek to accelerate the settlement of the cost issue and resume exports as soon as possible,” adding that “the Ministry of Oil hopes to review and amend the contracts signed between the Kurdistan Regional Government and international companies.”
Turkey closed the pipeline after an arbitration court ordered it to pay $1.5 billion to Iraq in compensation for transporting oil through Ceyhan without Baghdad's approval. Ankara, which claimed the pipeline was closed only for repairs, said in October that it was ready for operations and it was up to Iraq to resume flows.
Turkish President Recep Tayyip Erdogan is scheduled to visit Baghdad next month, which could help resolve other sticking points, including the fine.
Bloomberg quoted Abdul Ghani as saying, “Iraq is keen to resume exports through Ceyhan and maintain strong economic relations with Turkey.”
The platform for selling the dollar continues to stop, and travelers resort to the black market
The source told {Al-Furat News} agency, “The electronic platform has been suspended at most government and private banks by the Central Bank of Iraq, awaiting the launch of the new mechanism.”
He pointed out that "travelers resorted to the black market to buy dollars to cover their travel needs."
Citizens face a crisis in obtaining the foreign exchange necessary for travel abroad, or paying the education expenses of their relatives who are studying outside the country.
The Central Bank of Iraq announced earlier that the banks authorized to deposit for the purpose of obtaining the dollar are the Rafidain and Rasheed banks and the Iraqi Trade Bank, and it allocated 3,000 dollars for each traveler
Saleh reveals the reason for the stability of the dollar in the parallel market and a historical reserve for Iraq
link
Saleh told Al-Furat News Agency, “The stability of the dollar exchange rates in the parallel market is due to the stability in bank financing of foreign trade for the private sector, which has begun to rely on stable official exchange rates on a large scale and is more flexible.”
He noted that "the demand for foreign currency for the purposes of financing the country's foreign trade, on the part of the private sector, is today supported by large foreign currency reserves, which are the highest in the modern economic history of Iraq, which today touch approximately 111 billion dollars."
Saleh stressed that “those high foreign currency reserves indicate the country’s annual trade efficiency of more than 16 months of import at least compared to the global standard for the trade efficiency of foreign reserves, which is set at only about three months.”
Determine the reason for the variation in the economic and investment level between governorates
A member of the Parliamentary Investment Committee revealed the reason for the disparity in the economic and living standards between the governorates.
Committee member Asaad Al-Bazouni told {Al-Furat News} agency, “The discrepancy between investment activity between the governorates is due to the economic and living standards of the governorates. Some of them are considered governorates that attract investment and are an economic destination, such as Baghdad, Erbil, and Basra, due to the presence of border crossings, and they are considered a market for the country in terms of the economy and tourism.”
He stated that these governorates "are the ones that increase the pace of investments."
He added, "Housing projects in the governorates vary a lot, as the same housing unit specifications vary from one governorate to another."
urgent The Prime Minister's Office confirms the date of Sudanese's visit to Washington and announces his agenda
A statement from the office, a copy of which {Al-Furat News} received, said that the visit “to discuss the future relationship horizon in the post-international coalition to fight ISIS, and the best ways to move to a comprehensive partnership between Iraq and the United States of America, in light of the strategic framework agreement between the two countries in the political and economic fields.” financial, cultural, educational and security.”
The statement added, "Al-Sudani and Biden will consult on a range of issues during the visit, including the most important regional issues and efforts to establish stability in the region."
Biden to host Iraqi prime minister on April 15: White House
President Joe Biden will welcome Iraq’s prime minister on April 15 for talks on the US troop presence, the White House announced Friday, as tensions subside following US clashes with pro-Iran militias.
It will mark the first trip to Washington by Prime Minister Mohamed Shia al-Sudani, who took office in October 2022.
Al-Sudani in the past has called for an exit of US forces, redeployed nearly 10 years ago as part of a campaign to defeat ISIS, which had seized vast swathes of Iraq and Syria.
Biden and al-Sudani will discuss “our shared commitment to the lasting defeat of ISIS and evolution of the military mission,” a White House statement said.
Al-Sudani’s office said that the two would “discuss the future relationship” between Iraq and the United States following the fight against the extremists.
Tensions soared amid the Israel-Hamas war with armed groups linked to Iran carrying out a slew of attacks on positions in the Middle East of the United States, the main ally of Israel.
The United States carried out reprisals after a drone strike killed three US soldiers stationed in the Jordanian desert in late January.
A US drone strike inside Baghdad killed Abu Baqir al-Saadi, a senior commander of Iran-lined Kataeb Hezbollah who was accused by the US military of planning and participating in the attacks on US forces.
Iraq, hoping not to be consumed by US-Iran hostility, protested the strike.
But calm has largely returned and tensions have subsided between the United States and Iraq, which have resumed talks on the future of the anti-extremist coalition.
Iraqi authorities have voiced hope for drawing up a timeline to reduce the presence of US forces.
Both Biden and Donald Trump, who is seeking to return to the White House in November elections, generally oppose extended deployments of troops overseas, with Biden in 2021 completing the pullout of US forces from Afghanistan, where the Taliban swiftly took back control.
The United States stations some 2,500 troops in Iraq and 900 in neighboring Syria as part of the coalition.
Iran wields considerable political influence in Baghdad. Its Iraqi allies dominate parliament and appointed the current government.
The White House said Biden would discuss Iraqi economic reforms in hopes of promoting economic development and “energy independence,” with the country still relying on Iran.
Tomorrow.. the Security Council will vote on a “new” ceasefire resolution in Gaza
Diplomatic sources reported, on Friday, that the UN Security Council will vote tomorrow on a draft resolution that clearly calls for an “immediate ceasefire” in Gaza, after the Russian and Chinese veto of a US draft resolution that referred to a ceasefire.
The sources told Agence France-Presse, "The draft, which was prepared by several non-permanent members of the Security Council, will be voted on at 14:00 GMT."
This comes after Russia and China, on Friday, used their veto power in the UN Security Council against a draft American resolution supporting the call for an immediate ceasefire in Gaza, as Moscow considered it a “hypocritical play” as it does not put pressure on Israel.
The United States, which had previously vetoed calls for a ceasefire, proposed the draft resolution that would have for the first time upheld "the inevitability of an immediate and sustainable ceasefire" while condemning the October 7 attacks by Hamas.
The draft resolution received the support of 11 of the 15 members of the Council, while three countries, China, Russia and Algeria, rejected it, and Guyana abstained from voting.
The war broke out following an attack by Hamas on southern Israel, which killed at least 1,160 people, the majority of whom were civilians, according to a tally prepared by Agence France-Presse based on official Israeli figures.
The Hamas Ministry of Health announced on Friday that the death toll in the Gaza Strip had risen to 32,070 dead and 74,298 wounded since the start of the war.
Russia and China knock down the US draft resolution on Gaza
The American draft resolution for a ceasefire in Gaza collided with the veto wall of Russia and China, so why do they oppose its passage?
What does the draft resolution stipulate?
The American draft resolution stipulates “the urgent need for an immediate and sustainable ceasefire to protect civilians by all parties (...) and categorically supports international diplomatic efforts aimed at achieving this ceasefire in conjunction with the release of all remaining hostages.”
The draft resolution also rejects any measures to detract from the area of the Gaza Strip, including through the establishment of official or informal buffer zones, condemns calls to displace the population of the Strip and “rejects any attempts to make demographic or territorial changes” in it.
In addition, the resolution “demands” Hamas and other armed groups to immediately provide humanitarian assistance to all remaining hostages.
Vasily Nebenzia, Russia's ambassador to the United Nations, said that the resolution is overly politicized and actually includes giving the green light to Israel to carry out a military operation in Rafah.
He added that the purpose of the American decision is to buy time and its goal is politicized so that Israel can escape punishment.
Russia's Deputy Permanent Representative to the United Nations, Dmitry Polyansky, described the text of the American draft resolution document as "a familiar American deception."
He said that Moscow would not be satisfied “with anything that does not call for an immediate ceasefire,” explaining that the draft resolution should have included a “demand” or “call,” but not just a “definition of necessity” for a ceasefire.
Polyansky wondered about the wording of the draft and said: “What is determinism? I have a duty to give you $100, but...it's just a necessity, not $100?”
American anger
The US representative in the Security Council responded that the Russian veto was “a despicable decision because they want us to fail.”
Short video I did this morning:
No comments:
Post a Comment