Government advisor explains reasons for high exchange rate in Iraq
The Prime Minister's Advisor for Economic Affairs, Mazhar Muhammad Salih, revealed today, Saturday, the reasons
for the rise in the price of the dollar in local markets.
The video for this Blogpost is below here:
Saleh said in an interview with "Mil" that "the secondary exchange market in Iraq witnessed price deviations that exceeded the official exchange rate by about 17%," attributing this to "the influence of this market on the geopolitical information prevailing in the region ."
He added, "The parallel market thrives on colored information to generate a trend in which foreign currency exchange rates outperform the official exchange rate, which is an attempt undertaken by speculators to achieve limited profits resulting from exchange rate differences, especially the cash dollar market ."
He added, "Neighboring countries deprived of dealing in dollars put pressure on the exchange rate in the secondary market for foreign exchange, in light of the international compliance departments' emphasis on the uses of dollars in dealing, whether for the purposes of travel to areas deprived of dollars or financing border trade ."
He pointed out that "the foreign departments responsible for compliance have an interest in the deterioration of exchange rates in this secondary market, which makes the cost of travel and trade with Iraq's neighboring countries very high and does not generate any benefits ."
He added, "Iraq has become a victim of geostrategic conflicts that affect its economic stability," adding that "the annual rate of change in the price level is 3.7%, which is a low level, meaning that the effects of the secondary exchange market are limited in impact compared to the official market, which finances 90% of the imported goods, services and benefits at an exchange rate of 1,320 dinars per dollar ."
oct 10 24
Al-Sudani to US delegation: Israeli media crossed the line and insulted Sistani
/ Iraqi Prime Minister Mohammed Shia al-Sudani announced, during his reception today, Thursday, of US Representative Seth Moulton and US Ambassador to Baghdad Alina Romansky, that the "Zionist entity" has gone too far in its transgressions by insulting symbols and legal figures.
Al-Sudani added, according to a statement received by Shafaq News Agency, that the Zionist media has transgressed against the person of His Eminence the Supreme Authority, Sayyid al-Sistani (may his shadow be extended), stressing that this matter represents an insult to the feelings of Muslims around the world, in addition to targeting civilians and destroying infrastructure in Gaza and Lebanon.
He also condemned the ongoing escalation, and stressed the need for major countries, institutions and international organizations to intervene to stop the aggression on Gaza and Lebanon, and to stop the occupation from systematic killing and sabotage, calling for the need to work to end the war that threatens the security and stability of the region and the world.
During the meeting, they discussed bilateral relations between the two countries, developments in the region, after the joint announcement of the end of the international coalition to fight ISIS in Iraq, and the steps taken to move to bilateral relations in the security field and other fields.
A qualitative shift and an increase in trading.. Securities announces the launch of a new website for the Iraqi market
Wissam Al-Mulla
The Securities Commission announced today, Thursday, the signing of an agreement with the International Finance Corporation to develop the Iraqi market, and while it indicated the preparation of a guidebook to raise the transparency of companies, it confirmed that the new website of the Iraqi Stock Exchange will cover spot stock prices and is a qualitative leap.
The Chairman of the Securities Commission, Faisal Al-Haimus, told the Iraqi News Agency (INA): "The Commission signed an agreement with the International Finance Corporation in the first quarter of this year to develop the work of the Iraqi Stock Exchange."
He explained that "the Authority has worked on developing the guidance booklet and the government guide for companies, which is expected to be ready by the end of the year, in order to present it to companies and benefit from the guidelines contained therein."
He pointed out that "the booklet aims to increase the level of transparency for companies listed on the Iraq Stock Exchange, which are often late in publishing essential information and accounts, which affects investors."
He stressed that "the Commission has launched the new website of the Iraq Stock Exchange, which will cover spot stock prices, which will allow the investor to read the market movements of any company, and this is a qualitative shift that will result in an increase in trading."
Trade Bank of Iraq announces the number of transfers completed since the launch of the Central Bank platform
The Trade Bank of Iraq announced today, Thursday, that it has transferred more than 4,000 remittances since the launch of the Central Bank platform.
The bank's media advisor, Aqil Al-Shuwaili, said in a statement to the Iraqi News Agency (INA): "More than four thousand various transfers have been transferred to companies and individuals since the launch of the Central Bank of Iraq platform until today, October 10, 2024."
He added, "250 transfers were transferred from the Iraqi bank to the relevant authorities, including commercial, industrial, and even educational transfers."
Baghdad reaches an understanding with the Doha Stock Exchange: Iraqi shares will be able to be traded in Qatar as well
We will not wait for companies, we will act
The Iraqi Securities Commission revealed a project with the Qatar Stock Exchange that will allow for the joint establishment of companies, leading to “dual listing” that will allow the listing of Iraqi shares in both the Iraqi and Qatari markets. The commission member, Wadah Al-Taha, said that it will not wait for major and promising companies to list their shares on the Iraqi Stock Exchange, but will form a committee to encourage those companies. He pointed out that expanding the Iraqi Stock Exchange requires the listing of government sector companies on the stock exchange.
Waddah Al-Taha - Member of the Board of the Securities Commission, in an interview with the media figure, Dhikrayat Muhammad:
Expanding the work of the Iraq Stock Exchange requires restructuring mixed companies, through the government sector relinquishing its shares and listing and offering them for investment, while we work on listing public government companies.
Usually, stock markets around the world represent a mirror of a country’s economy, but in Iraq, the stock market does not reflect the economy, for several reasons, including the weakness of the investment culture, the decline in government support and understanding, in addition to the fact that the importance of listing and initial public offerings is unclear to private sector companies.
We seek to “deepen” the Iraqi Stock Exchange, meaning diversify its sectors participating in the subscription, with the aim of reducing the ceiling of investment risks and creating relative attractiveness for investors. We are currently working on merging our governance draft with the draft of the International Finance Corporation to give a global character to our investment environment and send reassuring messages to foreign investors.
Instead of waiting for promising emerging companies to come to the Iraqi market for listing, we are currently working on forming a specialized committee to move towards such companies and reach an understanding with them in order to list their shares in the market. The criteria for selecting the targeted companies revolve around performance, financial efficiency, company history, sector quality, and management nature.
We have a memorandum of understanding with the Qatari side, and we hope to approve it during the coming period. It has very good content, as it allows us to establish companies jointly, and we aspire to reach the stage of “dual listing” where the Iraqi stock can trade in the Iraqi and Qatari markets, in addition to applying the regulatory standards in effect there.
We apply a high level of “global standard” procedures in terms of combating money laundering. The market is very safe in this regard. Our standards are sometimes harsh and restrictive for investors, but they ensure that there are no illegal financial activities.
Minister of Finance stresses the need to adhere to timetables to achieve economic reforms
Finance Minister Taif Sami Mohammed stressed, on Thursday, the need to adhere to timetables to achieve economic reforms.
A statement by the ministry, seen by Al-Eqtisad News, stated that "Minister of Finance Taif Sami Mohammed chaired a meeting to follow up on the implementation of the government program related to financial, economic and digital affairs, where she reviewed the latest developments in the plans and procedures adopted by the government to achieve economic and financial reforms and discussed the challenges facing the implementation of the program."
The minister stressed, according to the statement, "the importance of adhering to the specified timetables and achieving the desired goals in enhancing economic stability."
The statement added that "the meeting addressed the most prominent economic and financial indicators, and reviewed the results of the reforms that have been completed so far, in addition to discussing ways to accelerate the pace of reform in vital sectors. Sami stressed the need for cooperation between all parties to achieve sustainable development and improve the standard of living for citizens."
The statement concluded by saying that "the minister urged the concerned parties to continue working hard and intensifying efforts to ensure the success of the reform program and achieve sustainable economic growth."
OCtober 11 2024
Parliamentary Finance: The Prime Minister has a real will to boost non-oil revenues
The Parliamentary Finance Committee confirmed, today, Friday, that Prime Minister Mohammed Shia Al-Sudani has a real will to enhance non-oil revenues, while indicating work to reduce taxpayers' wages in the event of a shift to electronic payment.
The head of the committee, Atwan Al-Atwani, said in a statement to the Iraqi News Agency (INA): "There is a real will by the Prime Minister to enhance non-oil revenues," noting that "enhancing non-oil revenues was adopted by the Finance Committee to reach the conviction that oil cannot be relied upon as a primary source in the budget, because oil is subject to shocks and is unstable and works on supply and demand, and therefore countries cannot be built using unstable rent revenues. "
Al-Atwani stressed that "the Finance Committee is serious about proceeding with the issue of non-oil revenues, and the electronic payment conference is considered an important step to achieve these revenues, given that the revenues collected through the paper system are marred by a lot of corruption."
He added, "We are working to reduce the wages of taxpayers in the event of a shift to electronic payment so that it is an incentive for the citizen."
He continued, "The trend towards electronic payment is not only in the government sector, but the private sector must be empowered because it is not beneficial to go to the tax office and pay electronically and go to the private sector from the mall and market and others and pay in cash," stressing, "the necessity of empowering the private sector and that electronic payment devices are available in all its institutions."
Rafidain Bank announces the seizure of shares, bonds and balances of a businessman indebted to the bank
Rafidain Bank announced, today, Friday, the seizure of shares, bonds and balances of a businessman indebted to the bank.
The bank said in a statement received by the Iraqi News Agency (INA): "The bank won a legal case filed before a Jordanian execution court to pay an amount of (33,860,004) Jordanian dinars, or approximately (625) billion Iraqi dinars, from an Iraqi businessman who is indebted and evaded paying the bank's dues."
The director of external lawsuits at the bank confirmed - according to the statement - that "the decision has become final, as Rafidain Bank obtained a judicial
ruling from the Jordanian courts to seize the movable and immovable assets of an Iraqi businessman who is indebted to the bank."
He added, "All the debtor's shares, bonds and balances in Jordan have been seized, and he is now obligated to recover the amount through the Amman Execution Department and transfer his balances and properties to the bank."
Demonstrations denouncing the Zionist aggression on Lebanon and Gaza begin in Tahrir Square
Popular demonstrations denouncing the Zionist aggression on Lebanon and Gaza began today, Friday, in Tahrir Square in central Baghdad.
The correspondent of the Iraqi News Agency (INA) stated that the popular demonstrations started this afternoon in Tahrir Square in the center of the capital, Baghdad.
He added that the demonstrators denounced the Zionist aggression on Lebanon and Gaza.
Reasons for the rise in the dollar price in parallel markets.. a reaction extending for 30 years
Diyala Chamber of Commerce identified, today, Friday (October 11, 2024), the reasons for the rise of the dollar in the parallel market in the past days.
The head of the Diyala Chamber of Commerce, Mohammed Al-Tamimi, said in an interview with Baghdad Today, "There is no disagreement that the region is going through a very difficult and sensitive turning point with the drums of a comprehensive war beating that could happen at any moment in light of the escalation of statements between the various parties without any glimmer of hope on the horizon that things will move towards calm and fair containment at least."
He added, "Iraq is part of the Middle East region and the current tensions are directly putting pressure on the parallel market and leading to an increase in its prices compared to the dinar, especially with the existence of speculation and fear that has prompted many to be cautious in converting their dollars into Iraqi dinars in anticipation of any exceptional circumstances."
Al-Tamimi pointed out that "any future strike will inevitably raise the parallel market, but in return there are measures by the Central Bank to control the situation," stressing that "the situation is likely to undergo many developments, especially since the damage to the Iraqi markets is real."
He explained that "the rise in the prices of basic materials, even by small percentages, does not reflect the direct impact of the rise in the dollar, but rather the growing purchasing power of broad segments that have an accumulated reaction and fear of wars extending to 30 years, which pushes them to store some materials in anticipation of any emergency."
The exchange rate of the dollar against the Iraqi dinar witnessed a noticeable increase during the past few days, as the selling price exceeded 153 thousand for every 100 dollars.
Suddenly, "Ain al-Assad" abandons the state of maximum alert - Urgent
An informed source revealed, today, Friday (October 11, 2024), that the "Ain al-Assad" base, west of Anbar, suddenly abandoned the state of maximum alert.
The source said in an interview with Baghdad Today, "Ain al-Assad base, in important parts of which American forces armed with heavy weapons and fighter jets are deployed, suddenly abandoned the state of maximum alert without prior warning."
He added, "The situation is very normal and the motives behind these changes are not known, but they may be a plan or based on a directive from Washington to remove the danger."
The source pointed out that "the cancellation of the alert in light of the tensions in the region raises many question marks about its reasons now and whether it is because she received a green light that she will not be on the target list or if the decision is temporary."
Two weeks ago, informed sources reported that the Ain al-Assad and Harir bases in Iraq had entered a state of maximum alert in anticipation of any emergency. According to observers, the American forces in Iraq are anticipating attacks against them that may be launched by the Iraqi factions included in the “Islamic Resistance in Iraq,” which has begun a clear military escalation over the past few days against the Israeli occupation inside the occupied Palestinian territories.
Postponement of the "Iraq Investment Forum" for this reason
The committee in charge of preparing and supervising the (Iraq Investment Forum) announced the postponement of the date of the forum, which was scheduled for November 2-3, to another date that will be determined later, due to the tense and unstable political and security conditions witnessed by the region at the regional and international levels, which negatively affects the holding of all local, Arab, regional and international economic activities and events.
"Autumn" economic recession in Iraq.. and a government advisor explains the reasons
The financial advisor to the Prime Minister, Mazhar Mohammed Saleh, told {Al-Furat News}: "The fluctuation of the dollar exchange rate in the parallel market has nothing to do with the phenomenon of seasonal recession that the markets are currently witnessing."
He explained that "the recession in demand comes after the high peak of sales that preceded the current school season and the end of most major religious and social occasions, in addition to the entry of the fall season, which is the end of the summer season, that abundant season in agricultural production and marketing."
Saleh explained, "In all cases, there is a recession in demand or a recession in seasonal economic activity, which is a phenomenon that occurs when economic activity declines during a certain period of the year as a result of seasonal factors."
He continued, "This recession can occur in different sectors such as tourism, agriculture, or retail sales, and is often affected by natural factors such as weather, religious occasions and holidays, or changes in demand patterns from one season to another."
Saleh believed that this recession "will take such a seasonal change, a few weeks until the entry of winter for economic activity to begin interacting in this short-term economic cycle."
Economist: 2025 budget amendments pending, approval date before end of year
He added in his statement to {Al Furat News} that "the budget schedules are still with the executive authority (the government), and it is expected to be sent to the House of Representatives during the remainder of this October."
Nouri explained that "the House of Representatives must approve the budget before the end of December 2024, in accordance with Financial Management Law No. (6) of 2019."
Setting the date for disbursing the salaries of the region’s employees for the month of September
An informed source revealed, today, Saturday (October 12, 2024), the date for disbursing salaries of employees in the Kurdistan Region for the month of September .
The source said in an interview with "Baghdad Today" that "there is a shortage in the amounts allocated for salaries that will arrive tomorrow, Sunday, from Baghdad to the account of the Ministry of Finance in the regional government."
He added, "The Kurdistan Ministry of Finance will issue a schedule of the salary list, and will most likely begin distribution next Tuesday, with distribution ending on Thursday, and continuing for three days, only two days before the Kurdistan Parliament elections."
He added, "The regional government will distribute September salaries a few days before the elections in response to internal pressures and also as an election propaganda."
The Ministry of Finance in the Kurdistan Region announced last September that it had delivered the list of employees’ salaries for the months of August and September, as requested by the Federal Ministry of Finance the last time, confirming that it was waiting to start sending the salaries for the month of September to the region’s employees, in conjunction with the start of the process of auditing the salary list.
Minister of Industry inaugurates Baghdad Industry and Mining Forum
Minister of Industry and Minerals Khaled Battal Al-Najm inaugurated the Baghdad International Forum for Industry and Mining, which is organized by the ministry under the patronage of the Prime Minister over two days under the slogan (Mining is Sustainable Development ... and Safe Investment).
The minister stressed in a speech in which he opened the forum that the Ministry of Industry and Minerals is proceeding with confident steps and a firm determination to achieve the goals of the government program and its drawn vision, the most important axes of which are achieving a real partnership between the public and private sectors and opening the way for local and foreign partners to invest in strategic industries and other industries, noting that this forum will witness the presentation and announcement of (135) investment opportunities and projects for partnership with the ministry's companies in the field of mining and various industrial fields.
He added: "We have started with tangible practical steps to activate the mining sector by conducting geological surveys of the country by specialized international companies and using the latest technologies.
He continued that achieving a real industrial renaissance in the country requires a set of success factors, the most important and first of which are energy, specifically gas and electricity.
He pointed out that the Ministry of Industry cannot achieve its set goals without everyone's cooperation and understanding of the requirements for achieving those goals.
He explained that the Ministry of Industry and Minerals, according to its law and duties, takes into account the private industrial sector by facilitating the work of this sector and overcoming the obstacles facing industrialists in medium, small and even micro-enterprises. He explained
that a day or more has been allocated per month to work in the Iraqi Federation of Industries with the technical staff in the ministry to listen directly to the problems of industrialists and support the private industrial sector in a way that reflects on the economic and developmental reality of the country. He indicated that the current reality requires us to invest in developing our local industry in a way that keeps pace with technological transformations. And the global economy.
He stressed that Iraq has all the ingredients that qualify it to be a major player in the industrial sector, starting with human competencies and labor force and ending with the provision of natural resources.
He pointed out that our strategy and work plan are based on strengthening the industrial infrastructure in cooperation with other sectoral ministries, improving the investment environment and encouraging industries.
He pointed out to working to build strategic partnerships with solid international companies to transfer technology and localize knowledge in a way that enhances our ability to compete in local and regional markets.
The forum was attended by Minister of Labor and Social Affairs Ahmed Al-Asadi, a number of representatives, government officials, ambassadors, and a large gathering of businessmen, investors and representatives of local, Arab and foreign private sector companies.
The forum aims to establish real industrial partnerships between public companies and the private sector, as it will include various axes and activities, including holding dialogue sessions on industrial partnerships, privileges and legislation in creating an attractive environment and opportunities for investment, in addition to presentations of available investment opportunities and projects and introducing them from a technical point of view, as well as other paragraphs and activities.
Iranian Foreign Minister to visit Baghdad tomorrow, Sunday
Iranian Foreign Minister Abbas Araghchi is scheduled to visit the Iraqi capital, Baghdad, tomorrow, Sunday.
Iranian diplomatic sources told Shafaq News Agency that Araghchi will head to Iraq tomorrow in continuation of his regional consultations.
According to the sources, the Iranian Foreign Minister will arrive in Baghdad tomorrow afternoon and during his visit, which will last a few hours, he will meet with: his Iraqi counterpart Fuad Hussein, President Abdul Latif Jamal Rashid, and Prime Minister Mohammed Shia al-Sudani.
Meanwhile, an Iraqi source told Shafaq News Agency that Araghchi's visit to Baghdad comes to discuss developments in the security situation in the region and to emphasize not expanding the circle of war.
To avoid major chaos... indirect negotiations between Tehran and Washington in Baghdad
An informed source revealed, today, Saturday (October 12, 2024), an unannounced movement for indirect negotiations between Tehran and Washington in the Iraqi capital, Baghdad.
The source said in an interview with Baghdad Today, "Washington is very concerned about the acceleration of events in the Middle East and the direct clash between Tehran and Tel Aviv and the latter's pursuit of a military response targeting Iranian sites in response to the missile attack that targeted its bases weeks ago."
He added, "Washington is pushing towards creating an undeclared movement in coordination with Baghdad to hold indirect negotiations with Tehran in order to arrange matters and agree on specific paths that defuse any conflicts that lead the region into great chaos."
The source pointed out that "all Gulf countries support Washington's option to conduct direct or indirect negotiations with Tehran to avoid the conflict getting out of control," stressing that "according to the indicators, Gulf capitals are pressuring America to prevent Israel from targeting Iranian oil or gas facilities, nuclear stations, or any targets that would lead to a comprehensive war in the region that could have serious repercussions that threaten its oil fields and energy sources in general."
He added, "Baghdad has actually begun to arrange the atmosphere and seek to crystallize priority understandings that may be the beginning of upcoming meetings, especially since all parties are open to the negotiations file, even if they are indirect."
Israeli Prime Minister Benjamin Netanyahu ordered Israel's military leadership at least twice, in 2010 and 2011, to prepare for imminent strikes on Iran. However, in both cases, the security establishment questioned the legitimacy of the order, which was issued without the necessary authorization from the cabinet, which led to Israel not entering this war.
Today, Israel is once again on the verge of striking Iran, but this time Netanyahu will have no problem getting his government's approval, and the leaders of the occupation army are not as opposed to such a move as they were before.
According to a report by the British Economist Council, Israeli leaders believe that the ballistic missiles launched by Iran on October 1 left them no choice but to respond, and in fact, the form these retaliatory attacks may take could have far-reaching consequences for the Middle East and beyond.
According to the report, Israel is considering four types of targets. Netanyahu has long favored bombing sites where Iran enriches uranium and conducts research for its nuclear program. But these sites are spread across the country, in heavily fortified underground sites, which would require causing massive damage and launching large numbers of bunker-busting missiles from dozens of aircraft at a distance of at least 1,200 kilometers from Israel. However, it may be difficult for him to delay the Iranian nuclear program for more than a few months.
The most vulnerable strategic target is Iran’s major ports, especially its oil terminals, which provide most of Iran’s foreign exchange income. Israeli strategists believe that destroying these ports would deal a severe blow to Iran’s already struggling economy. They hope this will spark further unrest inside Iran. Some dream that this could lead to the regime’s downfall.
The third option for the occupation army is to target the country’s leaders directly, just as Israel has attacked the leaders of the resistance factions (Hezbollah in Lebanon and Hamas in Gaza). This option is very difficult, because senior figures in Iran will likely take refuge in secret, protected locations if an Israeli strike appears imminent. In fact, the impact of such attacks is far from certain. The question of who will replace Iranian Supreme Leader Ali Khamenei is already the subject of much debate there.
But the most obvious military response, according to the British magazine, would be to launch a counterattack on Iranian missile bases, and this option is perhaps the least likely to provoke Iran again. But Netanyahu believes that Israel has a historic opportunity to reshape the region. And this time, some of his generals agree with him, if not all of them.
US officials: Israel has set a date for bombing Iran, a list of targets
US officials revealed, on Saturday, the date of the Israeli response to Iran and identified the potential targets that Israel might attack during the strike.
American media outlets quoted American and Israeli officials as saying that Tel Aviv has determined what it will target in its response to the Iranian attack, which these officials describe as Iranian military and energy infrastructure.
US officials believe there is no indication that Israel will target nuclear facilities or carry out assassinations, but US officials stressed at the same time that the Israelis have not made a final decision on how and when they will act.
American media reports revealed that the United States does not know when a response might be made, but they said that the Israeli army is ready and prepared to move at any time once the order is issued.
US officials said they had no information indicating a response would come Saturday, but acknowledged that Israel had not shared a specific timetable with them, and it was not clear that Israeli officials had agreed on a timetable yet, according to the officials.
American and Israeli officials said that "the Israeli response may come during the Yom Kippur holiday (which falls on Saturday, October 12)."
US officials noted that Israel shared more information with the United States about the response, but they withheld many details due to security concerns.
The United States is preparing to defend its assets in the region from any immediate counterattack by Iran, but is unlikely to provide direct military support to the Israeli operation, according to officials.
US Defense Secretary Lloyd Austin spoke with his Israeli counterpart Yoav Galant last night, and they discussed the broad outlines of an Israeli response. However, it is not clear whether Galant provided any concrete details.
The ministers' call came after an Israeli cabinet meeting on responding to Iran, but Galant did not share the specific goals discussed at that meeting.
US officials are urging the Israeli government to make its response proportionate, stick to military targets and avoid oil, gas and nuclear facilities.
U.S. officials said President Joe Biden and Prime Minister Benjamin Netanyahu did not discuss the details of the response in their call this week either. Biden strongly urged Netanyahu to focus on the humanitarian situation in Gaza and Lebanon and urged him to end the fighting.
The US president also stressed that Israel needs to take into account the difficulty of successfully carrying out the war in Lebanon, and confronting the strong threat on a second front from Iran, according to US media reports.
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