Addressing the problems of the Iraqi financial system
The financial system in Iraq consists of a group of institutions and structures that manage the financial and economic affairs of the country. Here are the components of this system in detail:
The video for this Blogpost is below here:
1. Central Bank of Iraq:
- Role: It is considered the body responsible for implementing monetary policy, issuing currency, and managing cash reserves.
- Objectives: price stability, exchange rate stability, and encouraging economic growth.
2. Commercial banks:
- Its types: include government banks such as Rafidain Bank and Rashid Bank, in addition to local and foreign private banks.
- Services: Providing loans, opening accounts, making money transfers, and financing projects.
3. Specialized banks:
Examples: Real Estate Bank, Agricultural Bank.
- Focus: Providing financial services to specific sectors such as agriculture and real estate.
4. Stock market:
- Iraq Stock Exchange (ISX): is the place where stocks and bonds are traded.
- Objective: To promote investment and develop financial markets.
5. Ministry of Finance:
- Role: Preparing and implementing the state’s financial policy, managing government revenues and expenditures.
- Responsibilities: Preparing the general budget, managing public debt.
6. Securities Commission:
- Function: Regulating and monitoring the stock market, ensuring compliance with financial laws and standards.
- Objectives: Protect investors, ensure market transparency.
7. Investment companies:
- Role: Investment management, providing financial advisory services, managing investment portfolios.
- Objectives: Achieving investment returns for clients, enhancing local and foreign investments.
Main challenges:
1. Corruption: It hinders economic development and affects confidence in the financial system.
2. Political and security unrest: harm investments and hinder financial operations.
3. Rentier economy: It depends heavily on oil, which makes it vulnerable to oil price fluctuations.
4. Bureaucracy: It hinders efficiency and increases administrative complexities.
5. Weakness of the banking system: Lack of efficiency and development affects performance.
6. Inflation: affects purchasing power and financial stability.
7. Weak financial infrastructure: Lack of technological development affects efficiency.
8. Laws and regulations: may be insufficient or outdated.
9. The informal sector: It poses a challenge in collecting taxes and organizing the economy.
These challenges require structural reforms and policy development to enhance financial stability and economic growth in Iraq.
Reforming the financial system in Iraq according to the following mechanism:
Applying the following mechanism to the Iraqi financial system requires adapting policies and procedures to the economic, social and political conditions specific to Iraq.
Here are some possible steps to achieve this:
1. Updating financial institutions:
- Strengthening the role of the Ministry of Finance and the Central Bank of Iraq in managing financial and monetary policies.
- Developing the financial infrastructure to increase efficiency and transparency.
2. Reforming the tax system:
- Improve tax collection and reduce tax evasion.
- Simplify the tax system to make it more transparent and fair.
3. Strengthening monetary policies:
- Strengthening the independence of the Central Bank to ensure price stability and control inflation.
- Using monetary tools such as setting interest rates and regulating the money supply effectively.
4. Public debt management:
- Develop strategies to manage public debt and reduce dependence on external loans.
- Issuing local government bonds to attract domestic investment.
5. Strengthening control and regulation:
- Improving the control systems over banks and financial institutions to ensure the stability of the financial system.
- Enhancing financial laws and regulations to comply with international standards.
6. Encouraging investment:
- Creating an attractive investment environment by improving infrastructure and reducing bureaucracy.
- Providing incentives to foreign and local investors.
7. Enhancing transparency and accountability:
- Ensuring transparency of financial operations by publishing financial reports regularly.
- Strengthening accountability and combating corruption at all levels of financial management.
By implementing these steps, the Iraqi financial system can benefit from global financial experiences, taking into account the fundamental differences between systems.
Also, to implement these reforms effectively, close cooperation is required between the Iraqi government, international financial institutions, and the private sector to achieve financial stability and sustainable development in Iraq.
Implementing each paragraph requires specific, practical steps, including:
1. Updating financial institutions:
- Strengthening the role of the Ministry of Finance and the Central Bank.
- Training and professional development: Providing intensive training programs for employees to improve their competencies and knowledge of modern financial policies.
- Digital transformation: adopting advanced technological systems to improve the efficiency of financial and administrative operations.
- International cooperation: Benefiting from international expertise through partnerships and cooperation with global financial institutions.
2. Reforming the tax system:
- Improving tax collection:
- Develop technological systems for collecting and analyzing data to increase the effectiveness of tax collection.
- Increase control and inspection of economic activities to reduce tax evasion.
- Simplifying the tax system:
- Restructuring tax brackets to be clearer and fairer.
- Providing facilities to taxpayers such as electronic services.
3. Strengthening monetary policies:
- Strengthening the independence of the Central Bank:
- Issuing laws that guarantee the independence of the Central Bank from political influences.
- Use effective monetary tools:
- Determining interest rates based on economic conditions.
- Managing the money supply through open market operations and reserve policies.
4. Public debt management:
- Developing debt management strategies:
- Analyze the debt structure and determine repayment priorities.
- Developing the bond market to attract local investors.
- Reducing dependence on external loans:
- Encouraging domestic investment and developing the financial infrastructure to attract local capital.
5. Strengthening control and regulation:
- Improving control systems:
- Develop technology-based control mechanisms to improve monitoring of financial operations.
- Enhancing transparency in financial reporting.
- Strengthening laws and regulations:
- Updating financial laws to comply with international standards.
- Activating penalties for financial violations.
6. Encouraging investment:
- Creating an attractive investment environment:
- Improving infrastructure including roads, bridges, electricity and communications.
- Reducing bureaucracy by simplifying government procedures.
- Providing incentives to investors:
- Tax exemptions for investment projects.
- Credit facilities to finance projects.
7. Enhancing transparency and accountability:
- Ensuring transparency of financial operations:
- Publish financial reports periodically and in detail.
- Application of international standards in preparing financial reports.
- Promoting accountability and combating corruption:
- Establishing independent oversight bodies to combat corruption.
- Encouraging reporting of corruption by providing protection for whistleblowers.
Implementing these steps requires strong government commitment and cooperation between the public and private sectors to achieve a stable and effective financial system.
What is the benefit of Iraq joining the World Trade Organization? Al-Monitor sheds light on the "secrets"
Iraq announced the resumption of negotiations to join the World Trade Organization for the first time since 2008, a step that may benefit the Iraqi economy but will take a long time.
Al-Monitor reported in a report translated by "Al-Eqtisad News" that "the Iraqi negotiating teams began "preparatory meetings" at the headquarters of the World Trade Organization in Geneva, and the Iraqi delegation included officials from ministries in the federal government and the Kurdistan Regional Government, while another meeting will be held at an unspecified date to review Iraq's accession to the World Trade Organization."
The World Trade Organization is an intergovernmental organization that aims to promote international trade. It provides a platform for governments to negotiate trade rules and disputes among themselves. Member states make key decisions. The WTO has 164 members who say they are responsible for 98% of world trade.
Iraq first applied to join the WTO in 2004, the year after the U.S. invasion that toppled dictator Saddam Hussein. A “working group” was then set up, but there has been little progress since then. The group last met formally in 2008. An informal meeting was held in 2017, according to the WTO’s website.
The process has gained significant momentum recently. In January, a WTO delegation visited Baghdad “to mobilize political support for the resumption of Iraq’s WTO accession process.” The discussion focused on Iraq’s economic reforms and was led by Saqr bin Abdullah Al-Muqbil, Saudi Arabia’s ambassador to the WTO and chair of the Iraq Accession Working Group, the organization said in a statement at the time.
A basic requirement for WTO accession is consistent trade policies across the country, including tariff rates and customs procedures. Thus, differences in the tariff structure between the federal government and the Kurdistan Regional Government have been an obstacle to Iraq’s efforts to join the WTO.
The UN team for Iraq said in a statement that Iraq decided to unify the two customs systems in 2019, and the Federal Ministry of Finance finally approved the unified customs tariff framework in February of this year.
Joining the WTO could benefit Iraq. According to a report issued by the Council on Foreign Relations in April 2023, the WTO has been largely successful in expanding free trade.
The Council noted that the dollar value of international trade has quadrupled since the establishment of the World Trade Organization in 1995, and that average tariffs do not exceed 3%.
According to the Council on Foreign Relations, there are also negative aspects to the WTO.
The council noted in the report that "globalization and free trade have their drawbacks. These include the potential for economic inequality and job loss."
The WTO has been particularly criticized for its application of rules toward China.
“The WTO is also struggling to perform its third function – enforcing the rules – particularly with China. Since joining the WTO in 2001, China has violated global trade rules by providing extensive subsidies to its domestic industries and stealing technology and other intellectual property. China has faced few, if any, consequences for its actions,” the council said.
China has a growing presence in Iraq, and there have been significant Chinese investments in Iraqi oil and infrastructure in recent years.
The WTO says it has helped facilitate poverty alleviation in developing economies by promoting trade.
In September 2023, WTO Director-General Ngozi Okonjo-Iweala told the Center for Strategic and International Studies: “Over the past generation, market-oriented reforms in places like Eastern Europe, India, and China, together with the open global economy anchored in the GATT/WTO system, have boosted growth and trade and helped lift more than a billion people out of extreme poverty.”
GATT stands for General Agreement on Tariffs and Trade, the predecessor to the World Trade Organization.
Iraq's trade is dominated by oil. Crude oil accounted for 90% of Iraq's $123 billion in exports in 2022. Iraq imported $67.1 billion that year, with the main imports being refined petroleum, broadcasting equipment, and cars.
These figures gave Iraq a trade surplus of more than $50 billion in 2022, according to the Observatory of Economic Complexity.
Iraq may have a long wait before joining the WTO. East Timor joined in February after seven years of negotiations. Comoros joined at the same time — a process that took 17 years, Arabian Gulf Business Insight reported at the time.
Trade participates in UNCTAD meetings on Arab countries’ accession to WTO
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The Ministry of Trade announced, today, Saturday, its participation in the technical meetings of the UNCTAD regarding the accession of Arab countries to the World Trade Organization in Istanbul.
The ministry stated in a statement received by the Iraqi News Agency (INA), that "it participated today in the technical meetings organized by UNCTAD in Istanbul, which will last for two days, to discuss the experiences of Arab countries in joining the World Trade Organization."
The Director General of the Department of Foreign Economic Relations, Riyadh Fakher Al-Hashemi, who represented the Ministry of Trade in these meetings, said, according to the statement, that "the meetings discussed the outcomes of the 13th Ministerial Conference of the World Trade Organization, the process of Arab countries' accession to the organization, and how Iraq can benefit from these experiences in its path to joining, and the importance of trade in services in supporting the economies of Arab countries and enhancing their growth was also reviewed."
Al-Hashemi stressed that "Iraq's participation in these technical meetings enhances the experience of the Iraqi negotiating team, and pushes it to move forward quickly towards achieving full accession to the World Trade Organization, as the exchange of knowledge and experiences gained from these meetings will have a significant positive impact on improving Iraq's negotiating capabilities and achieving its economic goals."
The statement indicated that "this participation is part of the ongoing efforts made by the Ministry of Trade to enhance Iraq's international economic relations, and to take advantage of the available opportunities to enhance economic and commercial development in the country."
Al-Sudani inaugurates light equipment production plant in the Military Industrialization Corporation industrial complex
Prime Minister Mohammed Shia Al-Sudani inaugurated, today, Saturday, the light equipment production plant in the industrial complex of the Military Industrialization Authority.
A statement by the Prime Minister's media office received by "Al-Eqtisad News" stated that "the Prime Minister inaugurated the light equipment production plant in the industrial complex of the Military Industrialization Authority south of Baghdad."
Parliamentary Finance: Iraq adopts a vision to increase its reserves with the Central Bank
A member of the Finance Committee, Mudar Maan, confirmed on Friday that Iraq had increased its balance in what he called a safe haven.
Maan said in an interview with Al-Ma'louma, “Iraq has adopted a good strategy in diversifying the financial reserves it has in the Central Bank, especially gold, the balance of which has risen according to the latest readings to about 150 tons. “
He added, "There are three positives to Iraq's strengthening of its gold balance, the most notable of which is confronting the fluctuations of the international financial markets. It also represents a desirable guarantee in the markets, in addition to strengthening the country's financial capacity."
He pointed out that "Iraq is adopting a vision to increase its reserves with the Central Bank, expressing his hope to move to dealing in a diversified basket of currencies and committing to setting sufficient reserves that will make us more capable of facing any financial fluctuations in global markets.
It is noteworthy that gold reserves in banks affect financial dealings by adding another advantage to the strength of the currency and the economy and the possibility of resorting to them in times of need.
Opening a group of factories and plants in the field of military industries in Iraq
Prime Minister Mohammed Shia Al-Sudani inaugurated today, Saturday, a group of factories and plants in the field of military industries.
The Prime Minister's Media Office stated in a statement received by "Al-Eqtisad News" that "Prime Minister Mohammed Shia Al-Sudani reviewed the executive work of the project to produce medium-range ammunition, oils and electric cars at the Military Industrialization Authority."
He added that "the Prime Minister inaugurated the distribution and power transformer rehabilitation and maintenance laboratory/first phase, the qualitative testing laboratories and the firing ranges for the light equipment production line in the Military Industrialization Authority's industrial complex."
He pointed out that "the Prime Minister launched the executive work on the capsule factory project for light ammunition, affiliated with the General Military Industries Company, and launched the executive work on the military and civilian boats production factory project in the industrial complex of the Military Industrialization Authority."
He added that "Al-Sudani inaugurated the iron alloys and colored metals factory at the General Military Industries Company."
Prime Minister Mohammed Shia Al-Sudani inaugurated today, Saturday, the factories for the production of light ammunition and mortar shells at the industrial complex of the Military Industrialization Authority.
This morning, the Prime Minister arrived at the industrial complex of the Military Industrialization Authority south of Baghdad to inaugurate a number of military production factories and rehabilitation laboratories.
Inclusion of commercial centers and private stores in the electronic payment system in Iraq
The government media team announced, today, Saturday, ongoing directives and government follow-ups to include all shopping centers, pharmacies, medical clinics, shops and private stores in the electronic payment system.
The team's spokesman, Haider Majeed, said, "The official institutions continue to implement the decisions of the Council of Ministers and the directives of Prime Minister Mohammed Shia al-Sudani regarding the digital transformation process in the electronic payment file, which is one of the most important priorities of the government program."
He added, "The electronic payment process began in 10 government fuel stations in the capital, Baghdad, distributed between Karkh and Rusafa, and then the work expanded to all fuel filling stations in the governorates of Iraq, after which it included all private fuel filling stations."
Regarding official institutions, Majeed confirmed that “most of the institutions that provide services and have direct contact with citizens operate with the electronic payment system, starting with the Directorate of Passports, Nationality and Civil Status, followed by the Ministry of Health institutions, public clinics, and then the rest of the operating institutions in succession.”
He pointed out that "there are ongoing directives from the government and follow-ups between the Central Bank of Iraq, the Ministry of Finance, and the rest of the official institutions, to include private stores, pharmacies, medical clinics, shops, and markets in malls in the electronic payment file," stressing that "work is continuing in this regard."
An economist explains... Why did inflation rates not rise much in Iraq?
Economic researcher Manar Al-Obaidi confirmed today, Saturday, that the prices of goods imported from countries where the banking sector is prohibited for commercial transactions, namely Syria and Iran, have decreased, such as vegetables, fruits, dairy products and eggs, compared to the increase in the prices of other goods imported from countries where banking transactions are permitted, including meat, electrical appliances and furniture.
Al-Abidi said in a statement:
According to the Central Bureau of Statistics, the annual inflation rate for May 2024 reached 3.4%, which is considered one of the lowest inflation rates compared to the countries of the region. This decline is due to the involvement of most traders in bank transfer operations, which depend on a fixed exchange rate of 1320, so that the exchange rates in the parallel market have become a major factor in raising inflation levels, especially for products imported from countries that the Central Bank allows to deal with.
By following the inflation data, it is noted that the prices of goods imported from countries where the banking sector is prohibited for commercial transactions, namely Syria and Iran, have decreased, such as vegetables, fruits, dairy products and eggs, compared to the increase in the prices of other goods imported from countries where banking transactions are permitted, including meat, electrical appliances and furniture.
Based on this data, it can be said that inflation rates in Iraq are affected by external factors more than they are affected by exchange rates in the parallel market. Accordingly, as long as the Central Bank maintains a fixed exchange rate for conducting financial transfers to purchase various goods, it is expected that inflation rates will continue at these low levels, and there will be no significant impact on the rise or fall of exchange rates in the parallel market on inflation in the coming period.
UAE affirms keenness to strengthen partnerships with Iraq and develop and diversify economic and trade ties
The United Arab Emirates affirmed its keenness to strengthen its partnerships with Iraq and develop and diversify economic and trade ties.
A statement by the Ministry of Foreign Affairs stated that the Iraqi Ambassador to the United Arab Emirates, Muzaffar Mustafa Al-Jubouri, met with the UAE Minister of Energy and Infrastructure, Suhail bin Mohammed Al-Mazrouei, at the ministry's headquarters in Abu Dhabi, and during the meeting, economic and investment opportunities between the two countries were discussed. "
The ambassador pointed to the importance of enhancing cooperation in this field and increasing the volume of trade exchange, which is witnessing remarkable growth, and developing new partnerships in the commercial and investment sectors to achieve a comprehensive economic partnership between the two countries."
Al-Jubouri stressed, according to the statement, the importance of signing the quadripartite memorandum of understanding for cooperation on the Development Road project, stressing its importance in achieving broader economic integration between the two countries that includes all fields.
For his part, Al-Mazrouei stressed the UAE's keenness to strengthen its partnerships with brotherly Iraq and develop and diversify economic and trade ties, pointing to the importance of continuing efforts to enhance trade cooperation between the two brotherly countries in a way that serves common visions and interests.
Expert: Manipulating budget tables is a “dangerous matter” due to final accounts
Today, Saturday, economic expert Basem Jamil Antoine described the manipulation of budget tables as a “dangerous matter.”
Antoine told {Al-Furat News} that: "There is talk about tampering with the budget tables, considering that the House of Representatives has the right to change the budget by 20% and to transfer without adding because the deficit rate is limited and the amounts are fixed and the transfer between ministries and sectors is possible."
He pointed out that "manipulating the budget tables is a dangerous matter, considering that not submitting final accounts gives an opportunity to many parties to change and transfer because they are not responsible for submitting final accounts."
Antoine added, "Not controlling this matter gives an opportunity to tamper and compromise between the executive and legislative circles," stressing "the necessity that there be no tampering and corruption in it and that it does not affect programs and expenditures."
An informed source told {Al-Furat News} that a group of representatives intend to approach the Federal Integrity Commission to conduct a comprehensive investigation into the tampering in the budget tables and refer it to the judiciary.
The Parliamentary Integrity Committee said, via {Al Furat News}, that it had not received any official letter or letter regarding the news of tampering with the federal budget tables for the year 2024.
Iran complains and Afghanistan objects.. How did Kurdistan’s oil cause an international crisis?
The Iraqi oil "smuggled" from the Kurdistan region via tankers through Iranian territory has caused a new crisis, but this time on the Iranian-Afghan border, after the tankers caused a traffic crisis and congestion in Iranian cities, which began to complain about the large numbers of tankers loaded with Iraqi fuel that are now passing through Iranian territory towards the port of Bandar Abbas or towards Afghanistan and Pakistan.
Iranian media revealed that hundreds of tankers carrying Iraqi fuel exports to Afghanistan stopped at the borders of the two countries, as the Taliban refused to allow the entry of tankers carrying "low-quality" Iraqi fuel, which numbered 400 trucks loaded with fuel.
These trucks were delayed at the Afghan-Iranian border, because Afghanistan did not accept the shipment because it was of low quality, while Iranian customs officials say that they do not participate in the process of allowing goods from other countries to pass to Afghanistan.
Mohammad Mehdi Javanmar, economic advisor to the Iranian president's special envoy to Afghanistan, says that the transit of low-quality Iraqi fuel to Afghanistan and the Afghan fuel mafia are difficult, noting that "it has happened several times in the past years that some Afghan businessmen have tried to import low-quality transit fuel via Iran."
He also pointed out: They are trying to get permission to enter Afghanistan with a large number of trucks and create problems at the border, and their programs are no longer valid for those who worked in this environment.
The economic advisor to the President's Special Representative for Afghanistan noted: In the meeting held last year at the Mahirud border, in the presence of Mr. Hekmat and local authorities in the two border provinces, it was announced to all Afghan and Iranian businessmen and Iranian and Afghan drivers that if low-quality fuel enters Afghanistan during transit; we do not allow these trucks to return or go back.
He added, "The fuel that Afghan traders bought from Iraq is of poor quality and Afghan officials have been informed of this repeatedly."
He explained that after testing the fuel at the Afghan Abunser Farahi Customs Department, the Iraqi fuel did not receive entry permission, and knowing that these shipments were of poor quality, Afghan businessmen crossed and used their usual methods that they had used in previous years, and tried to achieve their demands by pressuring the drivers.
The Iranian official added: The illegal trade in these transit products, which are of low quality and bring high profits to Afghan businessmen, has disrupted travel and transportation between the two countries for years on the eastern border.
He pointed out that, to this day, Iraq does not accept the return of this product, and on the other hand, Iranian customs laws do not allow the return of this product, and once again, the authorities in the two countries, especially Iran, are under pressure from the Afghan fuel mafia.
Angry protesters compare salaries to presidencies, threaten sit-in in Baghdad
Hundreds of employees of Iraqi state departments and institutions demonstrated today, Saturday, in front of the fortified Green Zone in central Baghdad, demanding an amendment to the salary scale.
Employee Wissam Ahmed told Shafak News Agency, "We went out today to demand that the government and parliament amend the salary scale and address the differences in classes for state employees."
He added, "There is inequality and injustice in employees' salaries," indicating that "an employee in the Council of Ministers, Parliament, and the three presidencies receives a salary of 3 million dinars per month, while someone of the same rank in another ministry receives only 500,000 dinars."
For his part, the employee in the Ministry of Education, Ahmed Munim, said in an interview with Shafaq News Agency, "The demonstration is not the first, and it will not be the last for all employees to demand the establishment of a new salary scale based on justice and fairness, in which the amendment of risk allowances is also taken into account," adding that "the demonstration committee met a month ago with Prime Minister Mohammed Shia al-Sudani to amend the salary scale without reaching a solution."
Munim continued, saying, "The demonstration will turn into a comprehensive sit-in if our demands are not met."
Earlier today, Iraqi parliament member Raed Al-Maliki held the Council of Ministers responsible for not amending the salary scale for employees and workers in the public sector, renewing his demand for the federal government to send the Federal Civil Service Council Law for the purpose of legislating it.
Al-Maliki said in a joint press conference held with a number of his colleagues and members of the House of Representatives, "There is another legal path related to the salary scale, which is done through amending the Federal Civil Service Law or legislating a new Civil Service Law."
He explained that "we had in the Iraqi parliament a draft federal civil service law that combines four laws, including the salary scale law," stressing that "the Council of Ministers withdrew this service law, and it was not returned to parliament again despite repeated demands from the representatives."
Al-Maliki pointed out that "the issue of amending the salary scale law is not with the House of Representatives and the delay is not from it, but the entire issue is with the Iraqi government because it has a financial aspect," stressing the parliament's readiness to amend the salary scale if the Council of Ministers sends the Federal Service Law at any time.
Electronic payment products meet the needs of citizens
A responsible source in the global smart card company “Ki” described the current electronic payment products as “acceptable”, but the Iraqi market needs more in a way that makes the citizen’s life easier.
He said: The company realizes the extent of the Iraqi market's need for advanced financial services, especially after Iraqi society opened up to the world and it became easy to communicate and learn about global experiences.
He added that the support of the government and the Central Bank of Iraq represents an incentive to expand the range of products offered to a wide segment of Iraqi society, especially since interaction with electronic payment continues.
He pointed out that being present in all places and providing services to citizens in a manner that suits their needs represents a lofty goal for the company’s management and its work team.
Al-Shammari: The Central Bank's policy is confused and the dollar will reach 1600 for this reason
Law professor Safaa Al-Shammari explained today, Saturday, that the confusion in managing the dollar file and the inability of those in charge of managing this file caused us confusion in the decisions taken, which negatively affected the confidence of the US Treasury in dealing with the Iraqi authorities.
Al-Shammari said in a statement to the “Jarida” platform:
The Governor of the Central Bank had previously announced on 3/14/2024 that understandings had been reached with the Treasury Department to reconsider the sanctions imposed on Iraqi banks. However, there was illegal trade that caused instability in the exchange rate, but we note that when the Prime Minister went to Washington, he prevented discussing this matter, and this was reflected in the negotiations conducted by the Iraqi Foreign Minister, through which the American side refused to reconsider or even negotiate or discuss the sanctions imposed on a large number of local banks. This caused obstruction of efforts and plans to open relations and lines of communication with international banks. The meetings of the Central Bank and the US Treasury led to a disastrous failure due to the lack of sincerity of those managing this file and their incompetence in the real point of view, and this was reflected in the dollar exchange rates, and we note that the trends of fluctuations rose and fell, and stability returned.
I expect the exchange rate to reach more than 1600 in the coming days, and the failure to implement the foreign trade plan, the process of printing local currency, and covering the financial deficit by issuing bonds, all of this is a failure to reorganize and expand the scope of spending without organizing this process in the correct manner.
Urgent | Al-Sudani demands parliament to clarify the existence of 3 different versions of the budget (documents)
The office of Prime Minister Mohammed Shia al-Sudani called on Parliament on Saturday to issue a clarification on the existence of three different versions of the budget tables approved by the House of Representatives and ratified by the President of the Republic. This request came in an official letter signed by Ihsan al-Awadi, Director of the Prime Minister’s Office.
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Parliamentary Committee Calls for Substantial Amendments to Investment Law to Attract Foreign Investments
The Iraqi Parliamentary Committee on Economy and Development called on the Iraqi government to make amendments to 12 paragraphs of the current investment law, with the aim of improving the investment environment and attracting foreign investments to the country.
The committee chairman, Hassan Al-Khafaji, explained that the committee discussed with the relevant parties, including university deans and the National Investment Commission, ways to improve the Iraqi investment law.
l-Khafaji stated that the committee was able to obtain the government’s approval to amend 4 out of 12 articles that were proposed, but he considered that the amendments that were approved “are still below the required level.”
Among the most important points discussed by the committee was one related to investment opportunities that investors obtain. Al-Khafaji pointed out that some unsound companies exploit these opportunities, which leads to the flight of capital and the disruption of projects.
Al-Khafaji stressed that the committee is striving to change this paragraph of the law, to ensure that serious investors have real opportunities to invest in Iraq.
In addition to the amendments to the investment law, the committee also discussed several other economic laws, including laws to combat price increases and open new cities.
These efforts by the committee come within the framework of its efforts to improve the Iraqi economy and attract foreign investments, which will create new job opportunities and improve the standard of living of citizens.
Parliamentary Finance Committee completes new staffing law
The head of the Parliamentary Finance Committee, Atwan Al-Atwani, announced the completion of discussing the draft amendment to the Staff Law.
Al-Atwani addressed the Presidency of the Council of Representatives in a letter to include the law on the agenda of the upcoming sessions for a final vote.
The Staff Law is concerned with determining the number of job grades needed by ministries and departments in the Iraqi government according to the calculations of deletion, creation and actual need. It was first issued in 1956, to be abolished and replaced by the current law in 1960, which has undergone more than 20 amendments over the successive governments in Iraq.
In this context, the Finance Committee, headed by Atwan Al-Atwan, held its first meeting for the second legislative term of the current legislative year, for the fifth session.
The head of the committee confirmed, according to a statement received by Shafaq News Agency, that they "discussed developing a comprehensive work plan that includes the legislative and supervisory aspects, in addition to the vision that will be enacted to discuss issues of concern to citizens."
The issue of taxes and monetary and financial policy were also discussed, with emphasis on the need to take appropriate steps to address and confront challenges.
The committee stressed at the same time the importance of taking the necessary measures regarding the issue of tampering with budget schedules, addressing the relevant authorities and committing to a firm position on it.
The Finance Committee decided to host the Ministers of Finance, Electricity, Labor and Social Affairs, and a number of governors to discuss a set of files related to each executive body, and to enhance the committee's oversight role.
The Central Bank of Iraq imposes financial penalties on banks and exchange companies amounting to 43 billion dinars
The Central Bank of Iraq announced on Sunday that fines imposed on banks and non-banking institutions (exchange companies) amounted to more than 43 billion Iraqi dinars during the past three months.
A table of the bank, which Shafaq News Agency reviewed, showed that the fines imposed on banks and financial companies during the past three months, starting from last April until the end of last June, amounted to 43 billion, 465 million, 532 thousand, and 931 dinars.
The table showed that “the fines also included 102 administrative penalties for these banks and non-banking institutions, distributed between warnings, alerts, and grace periods.”
The table showed that "May witnessed the highest fines on banks and non-financial institutions, as these fines reached 34 billion, 2 million, 141 thousand, and 100 dinars, with 42 administrative penalties, while June witnessed the lowest fines, reaching 2 billion, 829 million, 157 thousand, and 288 dinars, with 30 administrative penalties."
The table did not show the names of the banks that were fined and subjected to administrative penalties.
The Iraqi Stock Exchange Investors Association had criticized the Central Bank of Iraq’s increase in fines on banks, noting that it would affect the profitability of investors in the shares of these banks.
Parliament adjourns session after reading two bills
The “Eshan” platform publishes the proceedings of the House of Representatives session held today, headed by Acting Speaker of the House of Representatives Mohsen Al-Mandalawi, and attended by 181 representatives.
According to the media department of the House of Representatives, the House has completed the first reading of the draft law to reform economic laws.
The Council also completed the first reading of the proposed law amending the first law of the National Authority for Nuclear, Radiological, Chemical and Biological Regulatory Law No. 1 of 2024.
Then the House of Representatives adjourned its session.
Parliament Presidency confirms the decision of the House of Representatives to vote on the budget tables as received from the government
The Presidency of the Council of Representatives informed the Prime Minister's Office of the confirmation of the previous parliamentary decision to vote on the general budget tables "in the same form", as received from the government.
After the government's objection... Parliamentary Finance: We will investigate changes in the general budget schedules
The Parliamentary Finance Committee announced its intention to investigate changes made to the tables of the general budget law approved by the Council of Representatives, which were objected to by the Prime Minister's Office.
Committee member, MP Moeen Al-Kadhimi, stated to the National Iraqi News Agency ( NINA ), that "the Prime Minister's Office informed Parliament on July 1 of its objection to receiving the attachments of the Council of Representatives' decision to ratify the general budget tables, which do not match the tables sent by the government at the time, with an increase of 15 trillion dinars."
He explained that "the Council of Representatives approved the general budget tables before the legislative recess in the same form that arrived from the government without any change."
He added that "the Parliamentary Finance Committee is in the process of conducting a full investigation into the change in the general budget tables approved by the Council of Representatives."
On June 3, the House of Representatives approved the tables of the amended General Budget Law No. 13 of 2024 and its annexes, Tables A/B/C/D/E/F, with public expenditures amounting to 211 trillion dinars, distributed as about 156 trillion dinars as a current budget, and 55 trillion dinars as an investment budget.
Financial Scandal Shakes the National Bank of Iraq – Suspicious Fluctuations and Unjustified Expense Inflation
The Integrity Commission is required to intervene urgently...
The National Bank of Iraq revealed its unaudited interim consolidated financial statements for the period ending March 31, 2024, which caused a state of shock and astonishment among observers and investors. The results showed financial chaos and suspicious fluctuations that require urgent interpretation and analysis. These unexpected figures revealed mysterious aspects and suspicious financial behaviors that put the bank’s management under the microscope.
Al-Mustaqillah reviewed the details of the financial statements of the National Bank of Iraq and prepared this comprehensive report, which highlights three main paragraphs that reflect the extent of the financial deterioration that the bank is suffering from: net foreign exchange profits, inflated employee expenses, and the tax due, which recorded huge jumps. In addition to a paragraph that highlights other flaws in the report.
Through this report, we aim to provide a comprehensive analysis that explains the possible reasons behind this financial chaos, and the consequences that the bank’s management may face if it does not provide convincing explanations for these dramatic changes.
Collapse in foreign exchange earnings:
The National Bank of Iraq revealed net foreign exchange earnings of (388,493) thousand Iraqi dinars on March 31, 2024, which represents a significant collapse compared to net foreign exchange earnings on March 31, 2023, which amounted to 4,961,749 thousand Iraqi dinars. This sharp decline raises serious questions about the management’s efficiency in dealing with exchange rate fluctuations and accounting policies. The bank must provide a transparent and immediate explanation for these deteriorations to avoid doubts and accountability.
Unjustified inflation of employee expenses:
The National Bank of Iraq's employee expenses amounted to (10,385,009) thousand Iraqi dinars on March 31, 2024, compared to (6,070,764) thousand Iraqi dinars on March 31, 2023. This significant increase in employee expenses reflects a clear failure in cost management, which requires a precise explanation by management. Is this increase due to unjustified salary increases or mismanagement of human resources? This unjustified inflation raises concerns among investors and raises questions about the effectiveness and efficiency of the bank's administrative policies. Management is required to clarify the reasons behind this increase and provide detailed data to dispel doubts and enhance transparency.
Huge jump in tax due:
The tax due on the National Bank of Iraq amounted to (15,553,487) thousand Iraqi dinars on March 31, 2024, compared to (4,069,436) thousand Iraqi dinars on March 31, 2023. This huge jump in the tax due raises questions about the validity of the declared profits and the bank’s compliance with tax laws. Detailed explanations must be provided to justify this sudden increase, and to ensure that there are no attempts to evade taxes. This large gap requires the management to submit a comprehensive report explaining how taxes are calculated and whether there are errors in estimation or attempts to hide real profits.
Other flaws in the report:
Another notable shortcoming in the financial report is the significant jump in other expenses, which amounted to (12,588,657) thousand Iraqi dinars on March 31, 2024, compared to (7,803,459) thousand Iraqi dinars in the same period of the previous year. This unjustified increase requires a precise explanation by the bank’s management. In addition, there is a noticeable decline in the value of assets seized to settle debts, which amounted to (937,764) thousand Iraqi dinars on March 31, 2024, compared to (2,520,467) thousand Iraqi dinars on March 31, 2023, reflecting a deterioration in the quality of the assets held by the bank.
The sharp fluctuations in net foreign exchange earnings, the huge inflation in staff expenses, the huge jump in tax due, and all other shortcomings point to financial chaos within the National Bank of Iraq. It is imperative that management provide clear and detailed explanations for these changes, while strengthening internal controls to ensure transparency and restore confidence.
Financial statements click here: National Bank of Iraq
Finance Minister to US Embassy: Iraq has great economic potential
Finance Minister Taif Sami received a delegation from the US Embassy today, Sunday, to discuss ways to enhance economic and financial cooperation between the two countries, in addition to discussing a number of issues of common interest.
According to the ministry's statement, a copy of which was received by {Euphrates News}, Sami stressed: "The Iraqi government's keenness to strengthen its relations with the United States in various fields, including the economic and financial fields."
She pointed out that "Iraq has great economic potential, and that the Iraqi government is working to create a favorable investment environment to attract foreign investments."
For their part, the delegation stressed the "United States' readiness to support Iraq in its efforts to achieve economic development, expressing their welcome for cooperation with Iraq in various fields, including the financial and business sector."
The statement said, "The meeting discussed the challenges facing the Iraqi economy, ways to enhance American investment in Iraq, and cooperation in the field of combating money laundering and terrorist financing."
Minister of Finance: The government is working to create an attractive environment for foreign investments
Finance Minister Taif Sami Mohammed confirmed on Sunday that the government is working to create an attractive environment for foreign investments.
The ministry said in a statement, which it reviewed, "Minister of Finance Taif Sami Mohammed received a delegation from the US Embassy to discuss ways to enhance economic and financial cooperation between the two countries, in addition to discussing a number of issues of common interest."
According to the statement, Sami stressed "the Iraqi government's keenness to strengthen its relations with the United States in various fields, including the economic and financial field."
She pointed out that "Iraq has great economic potential, and that the Iraqi government is working to create a favorable investment environment to attract foreign investments."
For its part, the delegation stressed "the United States' readiness to support Iraq in its efforts to achieve economic development," expressing its welcome for "cooperation with Iraq in various fields, including the financial and business sector."
The statement added that "the meeting also discussed the challenges facing the Iraqi economy, ways to enhance US investment in Iraq, and cooperation in the field of combating money laundering and terrorist financing."
Sand: The dollar will rise due to US policies and its price cannot be determined accurately
Member of the Parliamentary Finance Committee, Mustafa Sand, said in an interview followed by Mawazine News, that Iraq's foreign reserves have increased due to the reduction of dollar sales in the auction. He added that the policies adopted by the US Treasury and the Federal Reserve have restricted the sale of the dollar.
Sand pointed out that the expected rise in the dollar is due to the US policies imposed on Iraq. He stressed that the dollar exchange rate cannot be determined accurately, as it changes according to fluctuations in supply and demand.
Bank of the South: Inflated investments and a collapse in liquidity... financial manipulation or a major scandal?
The Islamic Bank of the South for Investment and Finance revealed details of its expenses and revenues for the first quarter of 2024. The financial statements showed that the bank achieved a total income of 34,649,291 dinars, a significant increase over the previous year.
However, the financial statements obtained by Al-Mustaqillah raised some questions and surprises, as investments increased significantly from 69.1 billion dinars to 470.7 billion dinars in a short period, without sufficient clarification about the type of these investments and their feasibility. Cash available in banks also witnessed a sharp decline from 1.686 trillion dinars to 793.1 billion dinars, which raises concerns about the cash liquidity available to the bank.
The rapid and unjustified inflation of investments raises doubts about the real reasons behind this increase. Are there real and strong investments that support these numbers? Or are there attempts to hide some assets or manipulate the numbers to enhance the bank’s image?
In terms of expenses, banking operations expenses amounted to 3,303,046 dinars, while administrative expenses amounted to 5,783,557 dinars, reflecting the bank’s operating costs and general expenses. Depreciation amounted to 932,367 dinars, in addition to other transferable expenses amounting to 548,185 dinars.
On the other hand, accounts payable rose from KWD 124.6 billion to KWD 8.6 billion, indicating the possibility of large unpaid financial obligations. Debtors increased significantly from KWD 64.8 billion to KWD 111.6 billion, which may reflect problems in debt collection.
Specific details on foreign exchange earnings were not disclosed , raising questions about the contribution of this aspect to the bank’s total revenues. As for taxes, the financial statements did not provide sufficient details to determine the amount paid or due.
This analysis suggests that the Bank of the South is facing financial challenges related to liquidity and financial obligations, and needs greater clarification from management regarding large investments and noticeable financial discrepancies to enhance transparency and financial stability in the future. Do these numbers reflect the real reality or are they just an attempt to improve the bank’s financial picture? The coming days may reveal more.
To view the financial statements, click here: Bank of the South
Between a critic and a supporter.. The Iraqi banking sector faces theinvasion of Arab and foreign banks
Specialists in financial and banking affairs supported the Central Bank of Iraq's giving Arab and foreign banks shares of shares in banks inside Iraq, while some of them criticized this decision, attributing the reason for their refusal to the fact that these Banks take over the currency auction under the pretext of facilitating procedures for dealing with international banks. In addition to its control of the dollar exchange rate in local markets.
A local newspaper followed by Al-Mada published that the share of Arab banks in the National Bank of Iraq amounted to 76.7 percent of the bank’s shares, while the share of the Jordanian Capital Bank reached 61.85 percent, and the share of Cairo Amman Bank reached 9.90 percent, while the share of the Arcadia Investment Fund amounted to 61.85 percent. Palestinian 5 percent. This comes amid the efforts of the Jordanian Housing Bank to buy a stake in the Iraqi Al-Mansour Bank, to which Qatar National Bank contributed 54 percent.
While the Jordan Kuwait Bank announced earlier in 2023 the signing of an agreement to purchase a share of 51.79% of the shares that make up the capital of the Bank of Baghdad-Iraq, some specialists said that this percentage makes Iraqi banks owned by Arab and foreign banks, and the share must be less than 50% when purchasing shares.
The starting point
: Financial and banking specialist Saif Al-Halafi explains, “After 2003, the banking sector witnessed a significant growth in the number of banks that were established, and Iraq needed a banking sector that includes all trade exchange operations, whether internal or external, invades local markets, and enhances productive sectors.” In Iraq, and for this reason, many banks were established, and foreign companies and foreign banks began to head to Iraq, especially after 2003. The country witnessed a great development pattern in the establishment of Iraqi banks. Pointing out, “The banking sector was previously limited to traditional government banks and some traditional private banks, but it seems that the foreign banking sector and foreign companies have turned and participated with some Iraqi banks, and entered into a very good participation rate that enabled them to participate with the Iraqi decision in Managing these banks.
Al-Halafi added to (Al-Mada), that “the banking sector in general witnessed great growth, especially in foreign transfer operations, which were very tempting for many banks to obtain a lot of quick and efficient profits, and for this reason we see the Iraqi banking sector leaning greatly towards it, because the economy... Iraq is a rentier, and depends on foreign imports, the growth of the foreign import sector, and also the influence of neighboring countries that have flooded the local markets with all their products, as this requires an import process, and the latter is not completed except through banks opening credits or external transfers, and it seems that there is a trend in that period and ten years ago, directly and quickly, to foreign transfers.” Pointing out, “The problem is that external transfers were also subject to strict supervision and monitoring by the US Federal Reserve, and as a result of regional and international circumstances, and the challenges surrounding the region between the powers, especially Iran, Turkey, America , and the international community in general, put great pressure on the Iraqi banking sector.”
He continued, “There are banks in which foreign and Arab banks participated, and they became the decision-makers, as these foreign banks were able to employ the Iraqi banks participating in them, and although this matter did not include all the banks, it included only those that entered as participation, as they were able The Iraqi decision should participate in developing these banks, opening correspondent banks, and developing the banking system, and they now have a large network of correspondent banks, but in return, the Iraqi banks that did not have corresponding banks that remained dependent only on external transfers launched by the Central Bank in general, and in the end, the Iraqi banking sector was exposed to pressure. Noting that, “As the international situation intensified and the international conflict intensified, there was pressure on Iraq, and most of the pressure was directed towards the Iraqi banking sector, and as a result there pressure became on external transfer, and some banks were punished from buying the US dollar, and in return, the banks that It has foreign and Arab participants who are free from sanctions in buying the US dollar, due to its wise policy and the sobriety of procedures that it used due to its application of some standards . It also has very many branches, banks, and correspondents, and it relied on its own correspondence network, and here the problem began, as the banking sector A large part of Iraq has become suffering from the sanctions imposed because of previous transfers to buy and sell dollars.”
He concludes, “The Iraqi government must pay attention to the banking sector. Any defect in the banking sector or any process of obstruction or harassment of this sector may lead to an increase in the dollar exchange rates in a way that we cannot control later. That is why I appeal and demand attention to the banking sector and reducing government pressure.” And the parliamentarian and the media are against him, because he is very sensitive.” Stressing, “There is no relationship between the acquisition of some Iraqi banks by some foreign and Arab banks and the rise in the dollar exchange rate in local markets, as well as the imposition of sanctions on the rest of the banks in Iraq, as the The decision-maker was supposed to return to the customer who promoted the transaction, and not The bank is responsible for promoting the transaction and the external transfer process. In all international banking laws and norms, the bank is not responsible for the authenticity of the documents submitted.”
Correcting the course And since the US Treasury imposed sanctions on Iraqi banks, as a result of dollar smuggling to Iran, foreign banks have dominated the financial arena and controlled a large percentage of dollar sales in Iraq, as the National Bank of Iraq accounts for a third of foreign countries. currency sales, which is considered the main source of the Iraqi economy. Many of the shares in this bank are owned by Arab and foreign banks.
According to informed sources, the Central Bank of Iraq handed over to Jordanian banks the dollars owned in Iraq, and restricted dealing with foreign transfers through those banks at the beginning of next year in accordance with the directions of the US Treasury.
Economic affairs researcher, Ahmed Abd Rabbo, stated that “the acquisition of the accounts of sanctioned local banks by Arab and foreign banks affects, to some extent, the banking sectors in Iraq.” Pointing out, “This acquisition is the handing over of the banking sector to foreigners as a sale and delivery, as happened in the local industrial and agricultural sector, as these sectors have become imported, so the banking sector has also become imported.”
Abd Rabbo pointed out in his interview with (Al Mada), that “foreign banks control the dollar exchange rate, as they found the appropriate opportunity to acquire the shares of Iraqi banks after some Iraqi banks were exposed to American sanctions.”
He added, "Iraq needs to some extent to correct the course of monetary policy in line with the Iraqi economic situation, and to give Iraqi banks a great opportunity to take their role in the monetary arena."
Earlier this month, Representative Raed Al-Maliki announced an uprising against the Central Bank and the government's measures, due to their failure to solve the problem of the decline in the value of the dinar against the dollar, more than 18 months after the crisis, While he reviewed several points that he called the sources of the imbalance caused by the measures. The Central Bank and the government are continuing the problem and the waste of money, including the entry of Arab and foreign banks and their takeover of the currency auction under the pretext of facilitating procedures for dealing with international banks, so their profits have increased at the expense of Iraq.
Expert: The fluctuation of the dollar price in Iraq is "invalid"... and the reason is
The economic expert, Basem Jamil Antoine, considered the continued fluctuation of the dollar price in Iraq to be “null and void.”
Antoine {Euphrates News} said: "The continued difference between the parallel price of the dollar and the official price is considered an "invalid" process and there is no justification for the rise in exchange rates, especially since the amounts of dollars coming to the Central Bank from oil sales exceed 300 million dollars daily."
He added, "There are no special requests as the market has been affected by supply and demand and monetary inflation and the reduction in the amount of salaries and the treatment of this must be serious and accurate."
Antoine added, "Especially since salaries go to basic needs and it is not possible to reduce salary revenues, which are considered limited."
The dollar exchange rates stabilized today, Sunday, in Baghdad markets.
The prices came as follows:
The selling price is 150,000 Iraqi dinars.
The purchase price is 148,000 Iraqi dinars for 100 US dollars.
Dollar movement in Iraq.. strange decisions and practices that require contemplation
The dollar crisis is considered one of the most intractable crises in Iraq, and this crisis worsened when strange decisions were issued, including restricting the sale of dollars to travelers to certain companies and exchange offices and not others.
This matter prompts the citizen to ask, what is the benefit of designing certain offices and companies to sell the dollar? Does it give the country a certain interest that preserves this currency or reduces inflation in the country, or are there other purposes in this matter?
Therefore, the decisions issued by the official authorities raise many question marks, especially with the existence of practices that require contemplation.
The Central Bank of Iraq revealed, at the beginning of this month, the new mechanism for travelers to receive foreign currency (dollars), which will be exclusively through the outlets of companies and banks in international airports, stressing that the goal of the new mechanism , which will enter into force on July 14, is to deliver the dollar to the real traveler and pass sound transactions, in addition to facilitating travelers' access to the dollar more quickly.
The Central Bank reviewed the new mechanism for travelers to receive their share of foreign currency (dollars) by the traveling citizen going to the authorized exchange companies spread across all cities to deliver the amount in dinars equivalent to the citizen’s share of the dollar according to the official exchange rate of the Central Bank of Iraq. The company will work to enter the traveling citizen's data and upload his name to the electronic platform of the Central Bank of Iraq and deliver him a receipt confirming his deposit of the dinar, to receive the cash dollar inside the airport exclusively.
The bank explained that upon completion of the departure procedures, the amount will be delivered to him in dollars through the outlets available at the airport, 24 hours a day, 7 days a week.
The bank indicated in the statement that it decided to allow exchange companies to receive more than one share during the week in order to achieve full response to travelers' requests.
Meanwhile, the Central Bank of Iraq directed exchange companies to proceed with the instructions to launch the new mechanism for delivering dollars at airports.
This came in a letter addressed by the bank's management in an official letter issued on the fourth of July and signed by the Director of Supervision of Non-Banking Financial Institutions, Rafeef Mu'ayyad Bashir, to four exchange companies that provide dollars to travelers at Iraqi airports.
The Central Bank of Iraq issued new instructions regarding granting US dollars to travelers, indicating that these instructions will come into effect starting from July 14.
According to the instructions issued by the bank, Rafidain, Rashid, and Iraqi Trade Banks, exchange companies currently operating at airports, and exchange companies of category A and B were directed that “in order to ensure that travelers receive dollars cash and to prevent exchange companies from passing gambling transactions, it was decided to set 7/14/2024 as the final date for starting the mechanism of granting dollars to travelers at airports exclusively.”
According to the Central Bank, the aforementioned banks and exchange companies operating at the airport are entitled to a fixed commission of (15,000) dinars from the customer for each transaction, and the exchange companies outside the airport collect it for the benefit of the companies and Banks operating at the airport, according to a mechanism determined between the two parties, the banks and companies operating at the airport and the exchange companies outside the airport.
For his part, economic expert Diaa Al-Mohsen said that restricting the sale of dollars to travelers to certain companies confirms that political parties are behind those companies to ensure obtaining foreign currency.
Al-Mohsen told Al-Maalouma, “There are many problems in the monetary authority that need solutions and decisions in order to serve the citizen, away from complicating matters and increasing inflation rates.”
He added that "the increase in cash commissions during the exchange process between the dinar and the dollar from 15 thousand to 25 thousand will only benefit exchange offices, after the sale of dollars to travelers was restricted to specific exchange offices or companies."
He pointed out that "there is confusion in making financial decisions regarding the process of selling the dollar, especially with the smuggling of the dollar through forging cards or travel tickets to obtain foreign currency from official sources and ensure its arrival to exchange companies."
The currency markets in Iraq witnessed a noticeable increase in the prices of foreign currency in Iraq, which indicates that the procedures of the Central Bank regarding this file are not clear and did not reduce the selling prices of the dollar.
Economic: Limiting the sale of the dollar to certain companies is in the interest of some political parties
Economic expert Diaa Al-Mohsen said that restricting the sale of dollars to travelers to certain companies confirms that political parties stand behind those companies to ensure access to foreign currency.
Al-Mohsen told Al-Maalouma, “There are many problems in the monetary authority that require solutions and decisions in order to serve the citizen, away from complicating matters and increasing inflation rates.”
He added, "The increase in cash commissions during the exchange process between the dinar and the dollar from 15,000 to 25,000 will benefit only banking offices, after the sale of dollars to travelers was restricted to specific offices or banking companies."
He stated, “There is confusion in making financial decisions regarding the process of selling the dollar, especially with the smuggling of the dollar through forging cards or travel tickets to obtain foreign currency from official sources and ensuring its arrival to exchange companies.”
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