The dollar's flight does not threaten the dinar.. Al-Sudani's advisor dispels fears: The dollar system is a thing of the past
The financial and economic advisor to the Iraqi Prime Minister, Mazhar Mohammed Salih, commented on Monday on the return of the rise in the exchange rate of the US dollar against the Iraqi dinar in local markets.
Saleh explained to Shafaq News Agency, "The fixed exchange rate system in Iraq is based on an international reserves base that is the highest in the history of Iraq and its monetary policy, as foreign currency covers more than 100% of the total currency currently issued."
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He added that "given the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market today in the country does not constitute any relative importance in influencing the stability of the general price level, which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports) amounting to 1320 dinars per dollar, which is a stable trend for the exchange rate and around which the stable external value of the dinar revolves, which is embodied by the state of stability of the relative prices of goods and services to a large extent, as the annual inflation in the country does not exceed 3%."
According to Saleh, based on the above, and in light of the strength of the foreign reserves supporting the Iraqi dinar, the value of which as liquid foreign assets exceeds $100 billion, the official exchange market, as a general trend, will remain dominant in containing any colored noise or ambiguous information that affects the parallel exchange market in short periods due to urgent international or regional political events here and there or in adapting some instructions regulating the monetary market.
Al-Sudani's financial advisor said that after the decline of the dollarization phenomenon in domestic transactions, especially in contracts, obligations and payments inside the country since last year and its legal prohibition, the parallel exchange market has become such that its general effects today only form a narrow economic scope of prohibited transactions practiced by informal markets and at a rate of 10% of the total supply and demand transactions for the currency.
Saleh stressed that "the stability of the exchange rate of the dinar to the dollar that the country is witnessing, even in the secondary markets above, is a real and solid stability. Rather, it is derived from the strength of the impact of the price and quantity factors of the monetary and financial policies and their integration in imposing overall price stability in the country and containing the inflationary expectations that were caused by the forces of the parallel exchange market during the past years."
The financial advisor concluded his speech by pointing out that “the secondary (irregular) market, due to the freedom of external transfer, is under the influence of the official exchange market rate, whose operations are constantly expanding in favor of dealing at the fixed official exchange rate.”
Parliamentary Finance clarifies.. Will selling dollars at the airport limit its smuggling?
The Parliamentary Finance Committee stated that the Central Bank’s decision to restrict the sale of dollars to citizens at the airport aims to combat currency smuggling and reduce corruption, while it indicated that the increase in its prices in local markets is due to smuggling operations to neighboring countries.
Committee member Jamal Koujar said that the decision will prevent corrupt people from exploiting other sales outlets to smuggle currency, stressing that limiting sales to the airport will ensure that the money reaches the actual travelers.
He pointed out that this decision will not negatively affect citizens, but will besiege smugglers and corrupt people, noting that we discovered that millions of dollars are being stolen due to corruption, and the new decision will create a crisis for thieves and corrupt people who were exploiting the currencies that were supposed to go to travelers.
Koger stressed that the stability of the dollar price in the markets requires strong security action on the borders to pursue smugglers, in addition to facilitating the operations of the Central Bank in disbursing it and increasing the quantities available in the currency auction to meet the needs of the market.
Al-Sudani's advisor: The Central Bank of Iraq will address the rise in the dollar... What about the inflation rate?
The Prime Minister's Advisor for Economic Affairs, Mazhar Mohammed Salih, said that the Central Bank of Iraq will address the recent rise in the dollar exchange rate, noting that annual inflation in the country does not exceed 3%.
In an attempt to control dollar smuggling, the Central Bank had previously issued a series of measures aimed at contributing to raising the value of the dinar or limiting the high demand for the dollar.
The difference between the official exchange rate of 1,320 dinars per dollar and what is sold in the market continues to encourage dollar smuggling networks to increase their activity to achieve profits, in addition to the impact of this on the daily life of the Iraqi citizen.
Recently, the exchange rate of the US dollar against the Iraqi dinar rose to about 1495 dinars.
"Highest international reserve base"
Mazhar Mohammed Saleh said, "The fixed exchange rate system in Iraq is based on the highest international reserves in the history of Iraq and its monetary policy, and foreign currency covers more than 100% of the total currency currently issued."
He explained that "in light of the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market today in our country does not constitute any relative importance in influencing the stability of the general price level, which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports) and amounting to 1320 dinars per dollar."
Saleh pointed out to "the stable trend of the exchange rate and the stable external value of the dinar revolves around it, which is embodied by the state of stability in the relative prices of goods and services to a large extent, as annual inflation in our country does not exceed 3%."
The Prime Minister's Advisor for Economic Affairs noted that "in light of the strength of the foreign reserves supporting the Iraqi dinar, the value of which as liquid foreign assets exceeds $100 billion, the official exchange market, as a general trend, will remain dominant in containing any colored noise or ambiguous information that affects the parallel exchange market in short periods, due to urgent international or regional political events here and there or in adapting some instructions regulating the monetary market."
"The decline of the dollarization phenomenon"
Saleh stressed that "after the decline of the dollarization phenomenon in domestic transactions, especially in contracts, obligations and payments inside the country since last year and its legal prohibition, the parallel exchange market has become such that its general effects today only form a narrow economic scope of prohibited transactions, practiced by informal markets and at a rate of 10% of the total supply and demand transactions for the currency."
He explained that "the stability of the exchange rate of the dinar to the dollar that the country is witnessing, even in the secondary markets above, is a real and solid stability. Rather, it is derived from the strength of the impact of the price and quantity factors of the monetary and financial policies, and their integration in imposing overall price stability in the country, and containing the inflationary expectations that were caused by the forces of the parallel exchange market during the past years."
The Prime Minister's Advisor for Economic Affairs pointed out that "the irregular secondary market, due to the freedom of external transfer, is under the influence of the official exchange market rate, whose operations are constantly expanding in favor of dealing at the fixed official exchange rate."
Under Barzani's patronage, the National Bank of Iraq signs an agreement to finance the construction of a hospital in Kurdistan for $50 million
The National Bank of Iraq signed an initial agreement to finance the construction of a modern hospital in the region, with a total value of up to 50 million US dollars, under the patronage of the Prime Minister of the Kurdistan Regional Government, Masrour Barzani.
This vital project is funded by the National Bank of Iraq with the aim of supporting the regional government’s drive to improve the reality and quality of health care in the region and provide advanced health services to its residents.
Commenting on the signing of this agreement, the Managing Director of the National Bank of Iraq, Ayman Abu Dahim, expressed his happiness with this important step, saying: “We at the National Bank of Iraq are proud to finance the construction of a new and advanced hospital in the Kurdistan Region. This initiative reflects our ongoing commitment to supporting development and infrastructure projects that benefit our community and contribute to improving the quality of life for citizens.”
Abu Dahim pointed out that this project is a model of partnership between the public and private sectors to contribute to achieving sustainable development, explaining that this project, in addition to providing high-quality medical services to citizens, will contribute to creating new job opportunities, enhancing economic growth, and positively reflecting on progress and prosperity in Iraq.
Financing of this project will be subject to the bank’s credit policies and the instructions of the Central Bank of Iraq.
The bank also plays a major role in economic development and enhancing financial inclusion, as it has localized more than 200,000 employees in the public and private sectors, and granted loans to more than 80,000 employees with a total value of 1 trillion Iraqi dinars. At the level of small and medium enterprises, the bank has granted loans to more than 5,000 companies from various Iraqi governorates in many economic sectors.
Parliamentary demands: to control the parallel market and pursue manipulators of dollar prices
Today, Sunday, independent MP Ahmed Majeed Al-Sharmani called on the government to control the parallel market and the black market and pursue speculators and manipulators of the dollar exchange rates.
Al-Sharmani said in an interview with the Maalouma Agency that the Central Bank's policy is still faltering in controlling the dollar exchange rate.
He added, "Specification and lack of control over the currency selling window is one of the most important reasons that creates a gap that leads to a rise in the dollar exchange rate in the markets."
He pointed out that "the continued rise in the exchange rate of the dollar causes harm to those with limited income, including citizens, employees, and contracts," pointing out that "raising the price of the dollar against the Iraqi dinar will increase poverty rates among Iraqis."
Parliamentary Finance Committee talks about a decision that "created a crisis" for the corrupt and thieves
Iraq is preparing to implement the latest decision of the Central Bank in about 6 days from now, which is to limit the delivery of dollars to travelers inside airports, a decision that the Parliamentary Finance Committee described as "a crisis for the corrupt and thieves."
He pointed out that "this decision will not negatively affect citizens, but will besiege smugglers and corrupt people, as we discovered that millions of dollars are being stolen due to corruption, and the new decision will create a crisis for thieves and corrupt people who were exploiting the currencies that were supposed to go to travelers."
Koger stressed that stabilizing the dollar price in the markets requires strong security action on the borders to pursue smugglers, in addition to facilitating the Central Bank's exchange operations and increasing the quantities available in the currency auction to meet market needs.
Since Eid al-Adha until now, exchange rates have witnessed a "chronic" rise in dollar exchange rates until the selling prices in exchange offices reached 150,000 dinars for every 100 dollars.
The Financial Supervision Bureau revealed in a report that during the first half of 2023, there were more than 150,000 citizens who bought dollars for the purpose of traveling but did not travel, meaning they obtained 600 million dollars and sold them on the black market and benefited from the currency difference.
A new storm is hitting the Iraqi economy... Stopping dealing in the Chinese yuan will confuse the situation in the country!
Economists: Stopping dealing in the Chinese yuan will disrupt the economic situation in the country
Economist Adi Al-Alawi explains to Sumaria how the Chinese currency affects the Iraqi economy. Are there any measures that can be imposed to avoid damaging the country's economy?
For the first time, Google and Facebook pass their bandwidth through Iraq
The Ministry of Communications revealed, on Monday, that Google and Facebook are passing their capacities through Iraqi territory, confirming that this is happening for the first time, while indicating that the transit projects will provide financial returns to the country.
The ministry's spokesman, Omar Al-Amiri, told the Iraqi News Agency (INA): "The ministry has made great strides in strengthening Iraq's geographical position in the matter of transit and passing communications traffic and Internet capacities across Iraqi territory."
Al-Amiri explained that “the Ministry of Communications signed a new contract a few months ago on the transit level, not by sea but by land,” indicating that “this line passes through the south, then the center, reaching the Kurdistan region, and exits to Turkey and connects Asia to Europe via Iraq.”
He added that "the Ministry of Communications fulfilled its promises regarding transit and exploiting Iraq's location after it was disabled in previous sessions," noting that "Iraq's geographical location and its exploitation in international communications traffic and its return to the International Telecommunication Union in a prestigious manner will provide financial returns, in addition to the fact that many international companies will pass their capacities through Iraqi territory."
He referred to the "Road of Civilizations Transit Contract that was signed months ago," noting that "Google and Facebook passed their capacities through Iraqi territory, for the first time in Iraq."
It is worth noting that the Minister of Communications, Hiyam Al-Yasiri, announced on Friday that the threshold of “one tera” had been exceeded in passing international communications through Iraq, confirming that Iraq possesses a safe, attractive and reliable path for transit communications.
Dollar speculation increases its value after temporary stability..
Restricting sales to airports widens the gap
After stabilizing for about two months at 145 thousand per hundred dollars, exchange rates rose again during the first week of this July to touch 150 thousand, which raised questions about the reason for the rise.
Economic affairs specialists attributed the new rise in dollar prices to the sale of the currency to travelers and the delivery of sums exclusively from the airport, while the government confirms that the rise is temporary and will return to normal.
Economic affairs researcher Alaa Al-Fahd told Al-Mada, “The fluctuations in the dollar exchange rate in the parallel market came as a result of the Central Bank of Iraq taking new measures to sell the currency to travelers and deliver the amounts exclusively from the airport.”
He added, "When there are new measures, there are fluctuations in exchange rates," noting that "there are those who try to raise concerns by taking any new measures by the central bank in order to benefit some speculators."
The economic researcher pointed out that “the Central Bank has reassured more than once that it continues to sell the currency and cover all needs, whether for import or travel, and there are no concerns.” For his part, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, said in an interview with (Al-Mada), that “despite the fluctuations occurring in the parallel or irregular exchange market, whose short-term fluctuations come as a result of noise from colored or distorted information originating from international circumstances.” Or regional, or the issuance of some regulatory instructions adapted to foreign exchange, which some speculators are trying to exploit to generate a trend of potential profits in the exchange market, but it can be said that the fixed exchange rate system in Iraq is still based on a strong foundation based on the country's international reserves.”
He added that "it is the highest in the history of Iraq through the management of its foreign reserves, resulting from a surplus in the current account of the balance of payments at a significant rate that may amount to (positive 7% of the country's gross domestic product)," indicating that "the foreign currency covers a rate of more than 130%." Of the total currency issued and currently in circulation.
Saleh pointed out, “In view of the strength of the official central exchange rate and its role in financing approximately 90% of foreign transfer transactions for the private sector, excluding the government sector, the exchange rate of the dollar to the dinar in the parallel “The market does not constitute any relative importance in its fluctuations in influencing the stability of the level.” The general price trend, which has become stable in its components and trends due to the impact of the official exchange rate factor currently dominant in financing foreign (import) trade, amounting to 1,320 dinars per dollar.
He stressed that "this lack of impact is reflected in the relative stability of the prices of goods and services to a large extent, as the average annual inflation in our country does not exceed 3%."
He continued, "Based on the above, and in light of the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds 100 billion dollars, the official exchange market, as a general trend, will remain dominant in containing any colored noise or ambiguous information that is affected by the parallel exchange market in short periods." Due to urgent international or regional political events here and there, or in adapting some of the instructions regulating the monetary market, as we noted above.”
He continued, “After the decline of the phenomenon of dollarization in internal transactions, especially in contracts, obligations and payments within the country since last year and its legal ban, the parallel exchange market has no effect today except on a narrow economic scope of prohibited transactions practiced in informal markets, at a rate of 10%." Of the total transactions of supply and demand for the currency.
Saleh pointed out, “The stability of the dinar-to-dollar exchange rate that the country is witnessing, even in the secondary markets mentioned above, is a real and well-established stability. Rather, it is derived from the strength of the influence of the price and quantitative factors of the monetary and financial policies and their integration in imposing overall price stability in the country, and containing the inflationary expectations that arise.” “It was caused by parallel market forces during the past years.” Continuing his statement, “The informal secondary market, due to the freedom of external transfer, falls under the influence of the official exchange market rate, whose operations are constantly expanding in the interest of dealing with the fixed official exchange rate.”
The prices of the US dollar rose against the Iraqi dinar in Baghdad markets, yesterday, Sunday, while they stabilized in Erbil with the stock market closed.
Al-Mada correspondent said that dollar prices rose with the closure of the main Kifah and Harithiya stock exchanges in Baghdad, recording 149,000 dinars against 100 dollars, while this morning it recorded 148,850 dinars against 100 dollars.
Our correspondent indicated that selling prices in money exchange shops in local markets in Baghdad rose to 150,000 dinars for 100 dollars, while the purchase price reached 148,000 dinars for 100 dollars.
In Erbil, the dollar recorded stability, as the selling price reached 148,900 dinars for every 100 dollars, and the purchasing price was 148,800 dinars for every 100 dollars.
Iraq is the fifth largest economy in the Arab world and the 52nd largest economy in the world
The American magazine "CEOWORLD" reported on Monday that Iraq ranked fifth in the Arab world and 52nd globally as the largest economy in the world in 2024.
According to the American magazine, despite growing concerns about rising prices, the United States has maintained its position as the largest economy in the world, with an impressive GDP of $28.78 trillion.
China follows with a massive GDP of $18.54 trillion, while Germany, meanwhile, has cemented its position as Europe’s economic leader with a GDP of $4.59 trillion, building on its manufacturing expertise and strong exports while overcoming additional challenges from energy supply issues related to the conflict between Russia and Ukraine.
The magazine showed that Japan ranks fourth with a GDP of $4.11 trillion, while India ranks fifth, as one of the fastest growing economies with a GDP of $3.94 trillion.
While Iraq ranked 52nd globally in terms of growth with a GDP of $265.894 million for the current year, the GDP for 2025 was estimated at $278.811 million, in 2026 at $292.147 million, in 2027 at $307.465 million, in 2028 at $325.197 million, and finally in 2029 at $345.074 million.
The magazine indicated that Iraq ranks fifth in the Arab world after Saudi Arabia, the Emirates, Egypt and Algeria.
In protest against the Central Bank’s decisions, exchange companies strike for two consecutive days
Exchange companies in Iraq announced today, Monday, a strike on Wednesday and Thursday in protest against the decisions of the Central Bank of Iraq that restrict dealing in the dollar in a move that may raise the dollar exchange rate once again.
The exchange companies stated in a statement received by “Iraq Observer” that “due to the Central Bank’s insistence on harming the companies and pushing them to do what is forbidden, and its disregard for the legitimate demands submitted by the exchange companies, which are in accordance with the law, and after holding an expanded meeting of the exchange companies, it was decided to begin a general strike, complete closure, and refrain from entering the currency auction starting next Wednesday until further notice
What is the official position and what does the dollar hide in the coming days?
Yesterday, the Central Bank of Iraq announced that it had submitted the “Draft E-Commerce System” paper to the Council of Ministers for review and approval to proceed with work on it.
According to a statement, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, chaired the meeting of the Diwani Order Committee (24079) to regulate e-commerce in Iraq, with the participation of the relevant authorities.
In detail, the meeting discussed the draft e-commerce and consumer protection system through the controls discussed by the attendees, through the registration procedures and obtaining a license to practice this trade.
The committee contributed to identifying the service provider and granting him a license through an electronic platform established by the Ministry of Commerce. The committee members stressed the need to establish controls for granting licenses to those wishing to practice e-commerce in a way that preserves the rights of all parties.
The attendees agreed to submit the “system paper” to the Council of Ministers for review and approval to proceed with work on it.
Realistic reading
Economists believe that the Central Bank does not have a realistic reading of the Iraqi financial situation, while they pointed out that it is within the parliament’s powers to hold the Central Bank accountable and dismiss those who are negligent.
An economist told the Iraq Observer Agency, “The Central Bank is living in a state of ‘sultanate’ with itself and is unaware of reality. It also does not have a realistic reading of the Iraqi financial situation, and it is required to solve the problem of trade with these two countries. Also, electronic payment has been suspended for 20 years in the drawers of the Central Bank and it has not activated it. It is within the powers of Parliament to hold the Central Bank accountable and dismiss the negligent.”
He said: “The dollar in the Iraqi markets is a basic currency like the dinar, and the Iraqi currency is equivalent to the dollar by 80%, gold by 10%, and bonds by 10%.”
He pointed out that "Al-Sudani's visit to Washington had previously alleviated the dollar crisis, and that the lack of an agreement with Washington had led to the banking sector being annihilated by sanctions, and some reports against banks originated from Facebook and had led to sanctions."
According to the Central Bank’s instructions, “travelers’ dollars are not currently being sold to them, and they do not include land trips.”
bridging the gap
Observers considered that the sales of the Central Bank of Iraq in one month are sufficient to cover the deficit of delayed salaries and other public needs, from the hard currency auction for the US dollar, which amounted to more than 4 billion dollars during the month of June, while they revealed important statistics about government salaries.
They said: “The allocations for salaries of employees working in the federal government occupy about 62 trillion dinars annually from the total public spending, and they constitute a percentage of the total spending ceiling for the fiscal year 2024 of about 30%,” and that “the issue of securing salaries is a top priority in the country’s financial and economic policy in securing its expenditures.”
They added, “According to the average dependency rule of 6 people per family in our country, monthly government salaries are responsible for the livelihood of 24 million Iraqi citizens out of 44 million citizens of the country’s population.”
“Government salaries are considered one of the most important ways to ensure the social and economic well-being of citizens, except for the category of pension recipients, retirees and social care.”
According to the law, “Based on the provisions of Paragraph Two/77 of the Federal General Budget Law No. 13 of 2023 (the Triennial Budget), the executive authorities in general and the financial authorities in particular provide due care in implementing the provisions of the aforementioned article, which pertains to submitting the federal general budget tables for the year 2025.
The file is that the tables of “expenditures, revenues and hypothetical deficit” and in accordance with the technical and constitutional contexts adopted by the table itself for the current fiscal year 2024.
Salaries are delayed!
Regarding the impact on employees’ salaries and a possible liquidity crisis, an observer said: “In any case, salaries are secured even in the event of a liquidity crisis, but the date of financing and disbursement may be delayed.”
He added: "According to the timings stated in Financial Management Law No. (6) of 2019, the Council of Ministers submits the draft budget before mid-October of each year to the House of Representatives."
He pointed out that the budget is approved by the House of Representatives in December of each year.
4 billion dollars
Yesterday, Sunday, the Central Bank of Iraq's sales from the hard currency auction of the US dollar during the month of June amounted to more than 4 billion dollars.
During the month of June, during the days in which it opened its auction for buying and selling the US dollar, the Central Bank sold 4 billion, 438 million, 744 thousand, and 273 dollars, at a daily rate of 295 million, 916 thousand, and 284 dollars.
As for foreign remittances, they amounted to 4 billion, 50 million, 289 thousand, and 273 dollars last month, an increase of 90% compared to cash sales, which amounted to 388 million, 455 thousand dollars.
Sales were distributed between transfers abroad to finance foreign trade, and cash sales to banks, while the selling price of documentary credits and international settlements for electronic cards amounted to 1,310 dinars per dollar, while the selling price of transfers abroad and the cash selling price amounted to 1,305 dinars per dollar.
Al-Sudani: Reform requires "strong decisions" and it is time to reconsider previous policies
Prime Minister Mohammed Shia al-Sudani stressed, today, Monday (July 8, 2024), that reform requires strong and correct decisions, directing a review of some previous economic decisions and policies.
The Prime Minister's media office said in a statement received by "Baghdad Today" that "Al-Sudani chaired the periodic meeting of the Ministerial Council for the Economy, to follow up on decisions related to the economic reality, and implement the reform aspects included in the government program," indicating that "the Prime Minister directed the importance of reviewing the economic decisions and policies that were taken in previous stages, and that the time has come to stand up to a number of unproductive work contexts and practices, and that reform requires strong and correct decisions."
Al-Sudani said, according to the statement, that “the government has provided the private sector with great supportive opportunities, and has worked to empower it and launch its projects. It is closely following up on everything required to continue the pace of growth, and its supportive decisions will not be directed towards benefiting groups that live on certain outlets, without providing a contribution or returns to the country.”
Excessive issuance of new currency: Will it push the Iraqi economy towards the abyss?
Words on image
title: Central banks' inflation targeting strategy
1:Benefits of inflation targeting strategy
2:Disadvantages of the inflation targeting strategy
In light of the economic challenges facing Iraq, the importance of issuing new currency appears as an important tool of monetary policy that can be mobilized to achieve economic growth and financial stability. Unfortunately, over the past twenty years, this money has been directed ineffectively towards consumer sectors rather than production, in addition to using this tool to cover the budget deficit to cover salaries and the operating budget. This unwise direction, along with the dominance of the public sector and the neglect of the private sector, has led to increased inflation and the depletion of hard currency reserves.
Hence, the need to reconsider the use of this important tool and adopt a new strategy that focuses on directing funds towards productive sectors that generate income in hard currencies and support the private sector.
The economic situation in Iraq
According to available statistics, the volume of issued currency at the end of 2017 amounted to more than 44 trillion Iraqi dinars , while the volume of the money supply exceeded 103 trillion Iraqi dinars at the end of 2023. All of this money was directed towards the salaries and subsidies sector instead of being directed towards the productive sectors. If this money had been dealt with wisely and scientifically and pumped into the industrial, agricultural, tourism and mining sectors, the economic situation in Iraq would have been much better than it is now.
Focusing on productive sectors such as tourism, industry, and agriculture can contribute significantly to increasing GDP and improving living standards. For example, investing in developing tourism infrastructure and promoting tourism can attract foreign tourists and increase hard currency revenues. Similarly, supporting industry and agriculture to meet the needs of the local market contributes to increasing GDP and prevents the outflow of hard currency by adopting modern technologies and improving the quality of products, which enhances competitiveness in global markets.
Reconsidering and dealing scientifically with the new currency issuance tool can help in restructuring the national economy effectively and sustainably.
Improving the balance of payments and reducing inflation
This strategy can contribute to improving the balance of payments by increasing exports and reducing dependence on imports. Supporting the agricultural sector to meet the needs of the local market and exporting the surplus using advanced technology and developing storage and transportation facilities can improve the quality of crops and increase the volume of exports. In addition, developing local industries reduces the need to import goods, which preserves hard currency within the country.
Directing funds towards productive sectors rather than consumption sectors also helps to reduce inflation resulting from increased demand without a corresponding increase in production. Increasing the flow of hard currency into the economy also enhances the stability of the local currency and reduces exchange rate volatility. In this way, sustainable economic stability can be achieved, which strengthens the national economy and achieves tangible improvements in the standard of living.
Implementation and monitoring
To ensure the success of this strategy, it is necessary to develop a comprehensive plan and economic feasibility studies to determine priorities and targeted projects. There must be a monitoring and evaluation system to ensure that funds are used effectively and that the desired goals are achieved. Cooperation with international financial institutions and strategic partnerships with the private sector can enhance the effectiveness of implementation.
On this occasion, we call for a halt to the issuance of currency for the purpose of bridging the deficit in the operating budget, and to emphasize strict commitment to directing any new funds issued towards productive sectors instead of pumping them into consumer sectors. This wise allocation of funds will contribute to achieving sustainable economic development and improving the economic situation in Iraq.
Government banks prepare to implement the Central Bank’s procedures to sell dollars to travelers
An informed source revealed the date for government banks to implement the procedures of the Central Bank of Iraq in restricting the sale of dollars to travelers at the official price.
The source told {Euphrates News} agency, "Government banks are preparing to implement the procedures of the Central Bank of Iraq in selling dollars to travelers at the official price at airports, in a move to help the government find solutions to the dollar crisis."
The source explained that "the dollars will be delivered to travelers at the outlets of government banks at airports," noting that "the start of selling dollars will be next week."
Last Thursday, the Central Bank of Iraq revealed the new mechanism for travelers to receive foreign currency (dollars), which will be exclusively through the outlets of companies and banks at international airports, stressing that the goal of the new mechanism, which will come into effect on July 14, is to deliver dollars to the real traveler and pass sound transactions, in addition to facilitating travelers' access to dollars faster.
- Politician: America is continuing the dollar chaos scenario in Iraq
Today, Monday, the leader in the coordination framework, Jabbar Odeh, accused America of repeating the dollar chaos scenario in Iraq.
Odeh said in an interview with Al-Maalouma, “Since 2003, America has sought to make Iraq's economy hostage to the policies of the White House, and to use the dollar bill as a pressure tool to confront any movement outside the context of its interests in the region.”
He added, "The recent rise in the exchange rate is nothing but a scenario of chaos through pressure on the parallel market and raising exchange rates," stressing that "Iraq's economy will not be safe as long as Washington exploits oil revenues through the Federal Bank."
He pointed out that "the statements of the new American ambassador carried three clear agendas in Baghdad, which are using the economic card, selling oil supplies, and trying to escalate the security situation and interfering in the country's affairs," adding that "Baghdad's exit "From the pressure of the dollar will free the country from dangerous restrictions imposed by the White House administration." For more than 20 years.”
It is noteworthy that the dollar exchange rates witnessed a noticeable increase, raising many question marks amid accusations that an American agenda is behind what is happening.
Al-Mansour dollar jumped 1521 The Sudanese enters the line tonight and the threat of a strike confuses the market
The US dollar exchange rate rose on Monday evening, against the backdrop of conflicting positions of exchange companies in Baghdad regarding the recent decision of the Central Bank to limit the dollar for travelers at airports, as positions were divided between those who fully support this measure and those who object and threaten to strike, while a financial source confirmed that Prime Minister Mohammed al-Sudani will hold a meeting tonight with parties representing the currency market to urgently discuss the possibilities, especially with Baghdad falling under the influence of other scenarios related to the .situation in Lebanon and the complex transfers to China
Exchange rates in the local market jumped today, with selling prices breaching the 150,000 dinars level towards 152 and higher, while buying prices from customers remained slightly lower, but reached 147,000 in some areas, fearing any new fluctuation or subsequent decline in prices, in parallel with some exchange offices closing their doors and others refraining from buying and .selling until the vision becomes clearer
A group calling itself the “Coordinating Committee for Demonstrations” announced that it would begin a general strike starting Wednesday, and said in a statement that“due to the Central Bank’s insistence on harming companies and pushing them to the forbidden, and its disregard for the legitimate demands submitted by exchange companies that are in accordance with the law, and after holding an expanded meeting of exchange companies, it was decided to begin a general strike, complete closure, and abstention from entering the auction starting next Wednesday, corresponding to 7/10/2024, until further notice, for all ”.governorates
this is posted like a bulletin
press release
Electronic traveler platform)
In continuation of the important role played by its segment and the public of exchange companies in Iraq, which represents the backbone of the economy in the country and its flowing artery in supporting our national economy and its institutions and turning its wheel, and our future aspiration to expand these tasks in meeting the citizen’s needs for all financial services provided in developed countries and neighboring countries and to simplify the procedures for obtaining... The citizen, especially those traveling on the dollar at the official rate, and through his personal phone, we call on the Central Bank to begin implementing a mechanism that is appropriate to reality and applicable, which is
(Electronic Travelers Platform), which conforms to modern standards and is appropriate to international and local requirements, which ensures that any citizen who wants to travel obtains the dollar at the official rate by uploading his documents to his personal phone and specifying his place of residence, so that the dollar will be delivered to him from the nearest point to his place of residence through companies spread throughout Iraq and from Just one short visit to the company’s headquarters, and by applying this mechanism, companies and the Central Bank will turn the page on what took time and effort and devote themselves to performing other tasks and providing modern products that suit the current development, serve citizens, and support the financial and banking sector. Another important goal will also be achieved by cutting off the way for speculators with people’s lives, such as those fishing in the water. Al-Aker is one of the crisis makers, and we have noticed that they reject economic and financial stability by rejecting a draft project that conforms to the law and serves the country. Therefore, we call on all responsible parties to cooperate jointly with the public of exchange companies to begin implementing this mechanism in the service of our dear country and our honorable people.
Parliamentary Finance: 4 factors affect the dollar price, and the Central Bank and the government bear responsibility
The Parliamentary Finance Committee identified, on Monday, four factors affecting the dollar exchange rate, while holding the Central Bank and the government equally responsible.
“There are four factors that affect the dollar exchange rate, ” committee member Jamal Kojer told. “First, the amount of money spent in the currency auction on a daily basis. Second, the extent of the facilities provided to traders who participate in the platform to receive dollars. Third, it depends on the extent of dollar smuggling, especially to Turkey, Iran and the Emirates. Fourth, the extent of the involvement of armed groups in the Iraqi state in the battles of Lebanon and Gaza. The more they get involved, the more complicated things get, and consequently, the Federal Reserve’s releases of dollars to the Iraqi state decrease.”
He explained that “there is now a major defect in these four factors, and that the Central Bank bears responsibility for the first two points, the currency auction, and the second, providing facilities on the platform, and the government has two points, controlling the borders to prevent money smuggling, as well as the issue of armed groups and the extent of their participation or non-participation in the Gaza battle.”
The dollar will reach 1600 dinars".. Exchange companies move from three axes to implement their demands
The representative of the Iraqi exchange companies, Diaa Al-Taie, announced today, Monday, the move from three axes to implement a number of its demands regarding the sale of dollars to travelers, while expecting the price of the dollar to reach 1600 dinars.
But then later
Representatives of exchange companies in Iraq announce the cancellation of their strike
Representatives of exchange companies in Iraq announced, on Monday evening, the cancellation of their strike until further notice.
The statement added, "And an agreement to resolve a number of problems related to exchange companies and find the necessary and supportive solutions for the work of these companies, especially those related to organizing the work mechanism at the airport and border crossings and the administrative, organizational and technical procedures related to them."
The representative of the Iraqi exchange companies, Diaa Al-Taie, announced today, Monday, the move from three axes to implement a number of their demands regarding selling the dollar to travelers, while expecting the dollar price to reach 1600 dinars. Al-
Taie told Sumarya News, "The Central Bank approved a new mechanism that harmed the exchange companies in general, after it selected only 4 exchange companies to work in Iraqi airports with the aim of selling the dollar to travelers," indicating that "the selected companies are like the current categories."
MILITARY STUFF
Al-Sudani receives a delegation from the US Department of Defense
Prime Minister Mohammed Shia al-Sudani stressed, on Monday, the need for a firm stance against the Zionist aggression on the Gaza Strip.
The Prime Minister's Media Office stated in a statement that "Prime Minister Mohammed Shia al-Sudani received the US Deputy Assistant Secretary of Defense for Middle Eastern Affairs, Daniel Shapiro, and his accompanying delegation, in the presence of the US Ambassador to Iraq."
He added, "During the meeting, the procedures for proceeding with ending the mission of the international coalition to fight ISIS and activating bilateral relations between Iraq and the United States were discussed," noting that "the meeting witnessed discussion of the situation in the region and the continued aggression on Gaza."
Al-Sudani pointed to "the suffering of the Palestinian people, the difficulty of accessing humanitarian aid and relief supplies under the stifling siege, and the failure of the international community to assume its responsibilities in pressuring the Netanyahu government to stop the genocide."
The Prime Minister stressed "the need for a firm stance against the aggression, and the necessity of preventing escalation that threatens to expand the scope of the conflict."
For his part, the American official pointed out "the importance of Iraq's role in reducing tensions in the region, and the inevitability of continuing the approach of communication and cooperation between the two countries in the areas of armament and security and raising the combat level of the Iraqi forces, in a way that supports Iraq's security and sovereignty, economic development and progress at all levels."
The United States of America stresses the importance of partnership-based relations with Iraq, which are framed by the work of the Joint Military Commission.
The United States of America stressed, on Monday, the importance of partnership-based relations with Iraq, which are framed by the work of the Joint Military Committee.
A statement by the Ministry of Foreign Affairs stated that Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein received, on Monday, Deputy Assistant Secretary of Defense for Middle Eastern Affairs, Daniel Shapiro, and his accompanying delegation, in the presence of the US Ambassador to Iraq. During the meeting, bilateral relations and ways to enhance them were discussed.
Shapiro praised the existing cooperation between the two countries, pointing to the importance of partnership-based relations with Iraq, which are framed by the work of the Joint Military Committee that brings together military leaders from both countries to assess threats and risks and identify needs in the security and military framework, as well as to determine future areas of work between the two parties.
It is noteworthy that the Joint Committee will hold its meetings in two weeks, and preparations are underway to prepare its agenda.
For his part, the Minister praised the progress in the work of the Joint Military Committee, expressing his hope that its work will contribute to strengthening the partnership between the two countries in various fields.
The two sides stressed, according to the statement, the importance of reducing escalation in the region by stopping the war in Gaza, ending the suffering of civilians, and allowing humanitarian aid to enter. They stressed the need to put an end to the violence and difficult humanitarian conditions in the Gaza Strip, which affects security and political stability in the region.
Al-Sudani and a delegation from the Pentagon discuss the continuation of ending the mission of the international coalition
On Monday, Iraqi Prime Minister Mohammed Shia al-Sudani discussed with a delegation from the US Department of Defense (Pentagon) the procedures for proceeding with ending the mission of the international coalition to fight ISIS.
A statement by Al-Sudani's office received by Shafaq News Agency stated that "the Prime Minister received the US Deputy Assistant Secretary of Defense for Middle Eastern Affairs, Daniel Shapiro, and his accompanying delegation, in the presence of the US Ambassador to Iraq. During the meeting, the procedures for proceeding with ending the mission of the international coalition to fight ISIS and activating bilateral relations between Iraq and the United States were discussed."
The meeting also discussed the situation in the region and the ongoing aggression on Gaza, as Al-Sudani referred to the suffering of the Palestinian people, the difficulty of humanitarian aid and relief supplies in light of the stifling siege, and the failure of the international community to assume its responsibilities in pressuring the Netanyahu government to stop the genocide.
The Iraqi Prime Minister stressed the need for a firm stance against the aggression, and the necessity of preventing escalation that threatens to expand the scope of the conflict.
For his part, the American official pointed out the importance of Iraq's role in reducing tensions in the region, and the inevitability of continuing the approach of communication and cooperation between the two countries in the areas of armament and security and raising the combat level of the Iraqi forces, in a way that supports Iraq's security and sovereignty, economic development and progress at all levels.
Reports: Washington postponed announcement scheduled for this week to reduce its forces in Iraq
Informed sources revealed, today, Monday, July 8, 2024, that the American side has withdrawn from the official announcement of an upcoming schedule that includes reducing the number of its forces in Iraq, during the current week, after it had been preparing for that.
According to the sources, the American side backed down from its decision to announce the reduction of forces during internal deliberations, before meeting with the Iraqi side, within the framework of the Iraqi-American bilateral committee.
She suggested that "there is a link between the decision to postpone the announcement of the reduction in Iraq, after the process of withdrawing American forces from Niger took priority, as the American army completed, yesterday, the withdrawal of all its soldiers from "Air Base 101" in Niamey.
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