Most private banks closed, fears of liquidity crisis amid citizens’ anger
keep in mind the dollar has been very volatile this past week it's at or just about at 1600 dinars per dollar but this is definitely interesting
Today, many banks in Iraq witnessed a state of chaos and tension after their sudden closure, which raised widespread concern among citizens, especially with the emergence of reports about some other banks refusing to return customers’ deposits under the pretext of a lack of cash liquidity.
The video for this blog post is below here
This development prompted many citizens to quarrel with the management of the banks that remained open, amid growing fears that the officials of these banks would flee after emptying them of money.
The banks that have closed their doors include:
World Bank
Ashur Bank Babylon
Bank
Al Ansari
Bank Middle East
Bank Al-Qabeed Bank
Noor Iraq
Bank Trans Iraq
Bank Al-Huda
Bank Mosul Bank
As for the banks that remained open, but refused to return customers’ deposits under the pretext of lack of liquidity, they include:
National Bank,
Baghdad
Bank, Development
Bank, Al-Nasik Bank
, Bank of the South,
United Bank,
Union Bank,
Al-Tayf Bank
The sudden closure comes amid reports of financial turmoil hitting Iraq's banking sector, with many customers fearing they will lose their money amid growing rumours that some bank officials are planning to flee the country after withdrawing assets from branches.
Kurdistan Finance announces depositing Sulaymaniyah employees' salaries into their accounts
The Ministry of Finance and Economy of the Kurdistan Regional Government announced on Sunday that the salaries of some Sulaymaniyah employees have been deposited into their bank accounts.
A statement by the ministry, seen by Al-Eqtisad News, explained that many employees received text messages stating that their salaries had become available, enabling them to withdraw them from ATMs.
The statement stressed the importance of this step in facilitating the disbursement of salaries, especially in light of the "financial challenges facing the region."
This comes after a period of delay in the disbursement of salaries, which had raised concerns among employees.
Central Bank of Iraq: All employees must open bank accounts before the end of March 2025
Today, Sunday, October 6, 2024, a number of employees of the Kurdistan Region received their salaries for the month of August through the "Hesabi" banking project.
In this context, an informed source in the Central Bank of Iraq told Kurdistan 24 that the agreement concluded between the Kurdistan Regional Government and the federal government obliges all employees to open bank accounts.
The source confirmed that employees who do not open a bank account and do not register in the "Hesabi" project until March 2025, will not be able to receive their salaries.
The source explained that there is no difference between the Iraqi localization project and the bank account project, as both come in response to the request of the US Federal Reserve.
He stressed the need for all employees to have bank accounts, with the aim of reorganizing the financial and banking sector in Iraq and the Kurdistan Region.
This comes at a time when 132,000 employees in the Kurdistan Region are preparing to receive their salaries for the month of August through the "Hesabi" project within three days. Today, 40,000 employees received their salaries, with another 46,000 receiving their salaries on Monday and another 46,000 on Tuesday.
Erbil has another opinion.. Baghdad and Basra on the dollar madness: The rich and the poor stopped trading
Is it back to 150 in the middle of the war? (read that as 1500 dinars per $1
After the noticeable rise in the dollar exchange rates in the Iraqi stock exchanges, in light of the events in the region, experts and exchange companies from Baghdad, Erbil and Basra spoke about “bullying by speculators” in times of war, in addition to the concerns of traders in the stock exchanges, whether those who own small or large amounts of dollars, while Kurdistan companies were clearer in their tone, as they spoke about what lies behind the military development in the region, warning of “the intervention of Iraqi parties in the military skirmishes,” and they indicated that the continuation of this does not allow for an expectation of the exchange rates returning to last month’s rates, and we may be facing a bad scenario.
li Jabbar Al-Furaiji - Economic Expert:
The dollar exchange rate depends on non-economic factors. The factors that affect the exchange rate are either economic bullying by speculators and traders, taking advantage of some bumps that are geopolitical, military or security. We have been noticing this for years with any geopolitical bump or any security disturbances.
Hassan Al-Ghanem, owner of an exchange company in Basra:
There are two major companies that dominate the stock market in Baghdad, Basra and Erbil. They have the largest dollar reserves and stop the dollar from being offered so that its presence in the markets is low and the exchange rate rises at that time.
The dollar exchange rate is affected by the slightest leak in global news, as is happening today with the events in Lebanon and the war in Israel, which caused a wave of fear that affected owners of large and small capitals at the same time, as they cling to the dollar and do not trade it, and thus the supply decreases, which makes the exchange rate gradually rise in the stock exchange.
Kefi Khoshnaw, spokesman for the Erbil Stock Exchange:
The rise in the price of the dollar, which reached 153,850 dinars today, is due to the regional security crisis related to the war in Lebanon, the escalation between Iran and Israel, and Iraq’s recent entry into this crisis.
Economic expert Wissam Hadmal said that the rise in the dollar exchange rate, which reached 154 thousand dinars for each 100 dollar note, is due to the ongoing war in the region, and may continue for a while, but it will return to stabilizing at 150 thousand dinars if the Central Bank sticks to its policies.
Wissam Hadmal - Economic and Financial Expert :
According to the data, the rise of the dollar is temporary due to the tensions occurring in the region, of which Iraq is a part.
This rise may continue intermittently, but if the measures taken by the Central Bank remain in the same continuity on the economic reality, it will certainly return to its normal state after the tension subsides, and it will stabilize at 1500.
As a result, the economic situation of the countries of the region, including Iraq, is directly and sideways affected by the recent events, and this impact includes many sectors, including aviation, travel, hotels, and others, which have lost a lot when tickets and reservations were cancelled.
Nineveh complains that its companies are denied entry to the “currency auction” to obtain dollars
The Association of Exchange Companies in Mosul called on the Iraqi authorities and the Central Bank of Iraq today, Saturday, to allow exchange companies in Nineveh Governorate to enter the currency selling window, in order to obtain the dollar at the Central Bank’s price.
The head of the Exchange Companies Association in Mosul, Abdullah Khalil, said in a statement to Shafaq News Agency, "The continued deprivation of Nineveh companies from entering the currency selling window has deprived the governorate of the right to obtain the dollar at the Central Bank's rate, which causes a negative impact on the economic situation."
He added: "The exchange companies in Nineveh are deprived of the right to enter the currency selling window and the financial transfer activities in dollars, despite the commitment to all the conditions set by the Central Bank regarding the formation of a company that meets all the conditions for more than a year," indicating that this company has been waiting for more than a year for the "code" to enter the currency selling window and has not obtained it yet.
Khalil explained that Mosul merchants today are forced to buy goods from the capital, Baghdad, instead of buying them directly from outside Iraq, because they are unable to obtain the dollar at a rate of 1,300 dinars, noting that the city also suffers from the inability to make financial transfers in dollars, which forces residents to transfer through other governorates.
Khalil called on the Iraqi authorities and the Central Bank of Iraq to allow companies in Nineveh Governorate to enter the window in order to obtain dollars at the Central Bank’s rate, similar to the rest of the Iraqi governorates.
Al-Sudani sends a message to Biden: We stand on the threshold of a dangerous slide that may shake the global economy
Planning: The annual inflation rate in Iraq is slight and does not exceed 3%
The Ministry of Planning confirmed, today, Saturday, that the annual inflation rate in Iraq does not exceed 3%, noting that the procedures for providing the food basket and its materials in the markets have maintained prices and prevented inflation rates from rising.
Ministry spokesman Abdul Zahra Al-Hindawi told the Iraqi News Agency (INA): "One of the reasons for the rise in the inflation rate at times is the presence of a large cash mass in circulation in market and commercial transactions," noting that "the annual inflation rate in Iraq is slight, not exceeding 3%."
He added that "if we want to compare this rate with what exists in some countries, it is incomparable, as there are wild increases in them," noting that "a rate of 3% is normal and logical in light of the Iraqi reality."
He continued, "The measures taken by the government regarding supporting the food basket have clearly maintained prices in local markets and prevented their inflation," noting that "the increase in any country increases inflation rates, but in Iraq the situation is under control thanks to government measures."
Al-Sudani discusses with the British Ambassador setting a new date for his visit to the United Kingdom
During the meeting, the Prime Minister stressed the need for the international community and the UN Security Council to play their essential role in maintaining security and stability, especially with what is happening in the region, from the continuation of the Zionist aggression on Gaza and Lebanon, and the persistence and exaggeration in targeting civilians in a war of genocide that requires condemnation and denunciation from the entire world, and requires respect for international laws and not violating them by any party.
During the meeting, they discussed the progress of relations between the two countries and ways to enhance them, as well as setting a new date for the Prime Minister's visit to the United Kingdom, which had previously been postponed due to developments in the region.
Will the dollar reach 1600 dinars? Where are the government measures?
About 10 days ago, the exchange rate began to rise again against the Iraqi dinar until it reached 154 thousand dinars for every 100 dollars, at a time when citizens are wondering what are the reasons for the sudden rise and where are the government measures?
There are many reasons that lead to the rise of the dollar, including the slowdown in implementing monetary policies: despite the effortsCentral Bank of Iraq In pumping more dollars into the market, these measures were not enough to meet the increasing demand for hard currency, and the increasing demand for the dollar led to an increase in its prices, whether for import purposes or to preserve value, as many resort to IraqisTo the dollar as a safe haven from the fluctuations of the dinar.Economists confirm that "corruption and smuggling of dollars abroad"Iraq It is still continuing despite government efforts to limit it, which affects the amount of currency available in the local market and increases pressure on the dinar,” expecting the price to reach 160 thousand dinars for every 100 dollars if the government does not take any action to return the dollar price to its normal state.”Citizens are wondering "about the reason for this sudden rise in the dollar and what government measures will be taken to return its prices to what they were before," expressing their concern about "the return of the rise in the prices of food and other materials in local markets in light of the continued rise in the dollar price."They also asked, "Where are the government measures that were taken to limit the rise in the dollar price against the dinar in the past?"Despite these challenges, the government is seeking to reduce this increase through several measures, including:- Increase in dollar auctions: The Central Bank increases the daily offers of hard currency to local banks.- Tightening control over the black market: The government has intensified its efforts to limit dollar smuggling and control trading in parallel markets.- Stimulating exports and reducing dependence on imports: The government is working to provide incentives for local products to reduce dependence on imports in dollars.Despite government interventions, the rise of the dollar against the Iraqi dinar reflects deeper structural problems in the Iraqi economy, and comprehensive and sustainable reforms are needed to achieve real stability in the financial market.
Supporting the Iraqi economy.. The government takes a series of decisions and measures to activate the role of the private sector
Supporting the private sector and creating job opportunities are priorities confirmed by the government program of Prime Minister Mohammed Shia Al-Sudani, supported by plans to invest in the role of this sector in diversifying the economy, reducing dependence on oil, and contributing to creating sustainable development.
Activating the private sector
This trend was supported by unprecedented government decisions, including the decision issued by the Council of Ministers on January 31, 2023, to amend the prices of petroleum products for private and mixed sector projects, so that the price of black oil supplied to oxidized asphalt plants is at a price of 35% of the global bulletin price, provided that the price per ton does not exceed 250,000 dinars, and at a quantity of about 70-100% of the design capacity, and to keep the situation as it is for plants that receive black oil at a price of 100,000 dinars per ton, and for the rest of the plants at a price of 150,000 dinars per ton.
The private sector was also included in the implementation of new residential city projects by a decision of the Council of Ministers dated March 7, 2023.
The Council of Ministers took a set of decisions on March 28, 2023, which included writing off the amounts of professional fees and building permit fees owed by industrial projects, the amounts of fines owed by commercial companies, and the amounts of fines owed by taxpayers resulting from the application of Article (30) of Real Estate Tax Law No. (126) of 1959.
The government decisions also included granting sovereign guarantees to the private sector in the three-year budget to support the establishment of factories and plants and the establishment of agricultural projects, and presenting a new vision to grant the private sector to achieve reform efforts and activate the existing laws that sponsor workers in the private sector, guarantee their retirement, and propose a retirement and social security law in order to reform the legal environment for the work of the private sector and create jobs in it, which the House of Representatives actually voted on on May 17, 2023.
The Council of Ministers voted on April 7 to approve the issuance of the Investment and Partnership Instructions between the Public and Private Sectors for the year 2024, based on the provisions of the Constitution and the General Budget Law The Federal Republic of Iraq for the three fiscal years.
On June 4, the Council of Ministers issued several decisions to support the private industrial sector, including obligating the Ministry of Oil not to cut the monthly fuel share for all industrial projects, for any reason, as well as not to impose a month of maintenance on industrial projects and not to withhold the monthly fuel share for this reason, and also the decision to equip all industrial projects with their actual shares of petroleum derivatives proven by the need assessment statement.
On July 23, and within the framework of developing and supporting the national industry, the Council approved the recommendations of the minutes of the meeting of the Dry Gas Committee for Investment Projects, the commitment of the Ministry of Oil to allocate and equip new industrial projects planned to be established in partnership with the private sector, by public companies in the Ministry of Industry and Minerals, with quantities of dry gas, according to the need of those projects for quantities and according to a timetable for equipping, and at prices that achieve the economic feasibility of establishing those projects, and the quantities and prices are regulated through an agreement between the Ministries of Oil and Industry and with the approval of the Ministerial Council for the Economy.
Within the framework of the government's vision for economic reform and activating the investment and development movement in the country, the Council of Ministers approved on August 18 the national strategy for bank lending prepared by the Central Bank of Iraq, including the recommendations and programs included therein.
The strategy aims to stimulate the growth of the Iraqi private sector by improving the business environment, attracting local and foreign investors, and increasing credit granted to it from the non-oil GDP by 2029, in addition to increasing credit to small projects from the non-oil GDP and financing nearly 100,000 projects.
Government procedures and openings
Within the framework of the procedures adopted by the government to promote the private sector and make it a partner in the construction and reconstruction process, the government worked to end the wrong practices that hinder the work of the private sector and increase its contribution to the national economy by approving the recommendations of the Ministerial Council for the Economy and subjecting projects to fair competition based on efficiency and confronting any extortion that the implementing companies may be exposed to, in addition to facilitating the granting of entry visas for businessmen to Iraq and forming a follow-up cell to follow up on the implementation of projects and firmly confronting any extortion that the implementing companies may be exposed to from any party.
In this regard, the Prime Minister also held a series of meetings, including a meeting with a number of businessmen, investors and project owners in the private sector, and a meeting with representatives of private sector companies specialized in implementing sewage network projects in Baghdad, during which he called on all private sector investors to seize the opportunities available in Iraq.
On July 17, 2023, the Prime Minister chaired a meeting dedicated to discussing the reality of the industrial sector in Iraq and the path to launching a new industrial initiative to advance this sector, in the presence of a number of advisors and representatives of the private sector.
On December 2, 2023, the Prime Minister announced the launch of 90 investment opportunities in partnership with the private sector in various industrial sectors throughout Iraq.
On December 6, 2023, the Prime Minister sponsored the signing of a partnership contract between the Iraqi Diyar Company (private sector) and the Saudi Northern Cement Company, in the first partnership between the Iraqi and Saudi private sectors in the field of cement.
On March 9, the Prime Minister inaugurated fertilizer factories and production lines in Basra, both DAP and urea, in partnership with the private sector. He stressed that this partnership adds modern technology to the state and covers part of the budget requirements.
During his visit to the United States, which began on April 14, 2024, the Prime Minister decided to include a delegation from the private sector and Iraqi businessmen and women in the visiting delegation. During the visit, the Prime Minister also sponsored the signing of similar memoranda of understanding between the Iraqi private sector and American companies in the fields of energy and pharmaceutical industry on April 18, 2024.
On May 1, the Prime Minister inaugurated the Continuous Casting Plant/Phase One, at the General Company for Steel Industries, in the Taji area, north of the capital, Baghdad, after its rehabilitation, modernization and operation, with a production capacity of up to 600,000 tons annually. He welcomed investors from the private sector in Iraq and praised their step to invest with companies of the Ministry of Industry and Minerals.
On May 9, the Prime Minister launched the work on the Union Mills Project in Al-Madhatiyah City in Babil Governorate, and inaugurated the expansion project of the sugar factory in the Union Company, after adding new production lines for sugar production, to increase the factory's production capacity from (4200) tons per day to (6000) tons per day. He also inaugurated the vegetable oil extraction factory, the vegetable feed production factory, and the premix factory in the company.
On July 5, the Prime Minister inaugurated the second specialized workshop to support the private industrial construction sector, during which a cooperation agreement was signed between the Trade Bank of Iraq (TBI) and the German Export Credit Corporation to finance private sector development projects.
On July 20, the Prime Minister inaugurated (4) factories of the Military Industrialization Authority, including the electric car production factory in the General Military Industries Company, implemented in partnership with the private sector.
Directives
On May 17, 2023, the Prime Minister issued a number of directives aimed at strengthening partnership with the private sector and giving it more space in development fields. These directives include emphasizing partnership with the private sector, disbursing dues to private sector companies implementing projects, and providing job opportunities for young people by encouraging investment, attracting investors, and reviewing investment licenses granted in the governorates, in addition to giving priority to supporting the private sector and continuing to hold meetings with it.
The Prime Minister also confirmed on July 22, 2023, that the government has launched major projects with the participation of the private sector, such as manufacturing, petrochemical, and fertilizer projects, and there are serious requests from local and regional companies to invest in gas, phosphate, and sulfur, in addition to integrated residential city projects that include all economic activities. Five cities have been announced, and we are in the process of preparing the second batch in order to prepare them for investment. He stressed that the private sector is a partner in the correct implementation of projects that address pressing service crises in all sectors.
While the government has taken steps to encourage the private sector within its ministerial program, the government has also worked in cooperation with the House of Representatives to legislate laws that would promote the private sector, such as National Product Protection Law No. 11, Consumer Protection Law No. 1, and Competition and Anti-Monopoly Law No. 14.
Also, on August 1, the Prime Minister directed the formation of a committee from the departments of the Ministry of Construction, Housing, Municipalities and Public Works, to undertake the process of opening and analyzing the offers submitted by private sector companies to build schools within the projects of the Iraq Development Fund, as well as reviewing the contracts concluded with investors in school building projects, auditing them and stating their compliance with the approved specifications and conditions.
Agreements and partnerships and
ensuring government support for the private sector, the participation of businessmen and women in the Iraqi-Egyptian Business Forum held on June 13, 2023 during the Prime Minister's visit to Egypt.
As part of the government's efforts to revitalize the private sector, the final statement of the meeting of the Iraqi-Jordanian Joint Committee on July 24, 2023, included support for the role of the private sector in increasing the volume of trade exchange between the two countries in the fields of industry, energy, investment, transportation, agriculture, environment, health and education, in a way that benefits the two countries and the two brotherly peoples.
On September 3, 2023, the Ministry of Transport signed an agreement with the International Finance Corporation (IFC) to rehabilitate and develop Baghdad International Airport. The agreement included the IFC providing consultations on the path to developing the role of the private sector and enhancing its entry into the public services arena in partnership with the public sector and sectors facing future challenges.Government Advisor: Development Fund Provides Great Support to Private Sector
Advisor to the Prime Minister, Hussein Flamers, confirmed today, Saturday, that the Development Fund provided the private sector with unprecedented great support, while setting two conditions for developing the private sector.Flamers said in a statement to the Iraqi News Agency (INA): "Prime Minister Mohammed Shia Al-Sudani blessed the first national forum for the private sector, which is held by the Private Sector Development Department at the Ministry of Trade, in cooperation with Bayt Al-Hikma for Training and Consulting," indicating that "such meetings put us in the forefront and we are on the right path in developing the private sector."
Flamers explained that "we must benefit from the versions that preceded us in other countries and developed the private sector and work to have a single window that enables those working in the private sector to be a source of glory for it and for the process to run smoothly," noting that "the government program presented by Prime Minister Mohammed Shia Al-Sudani supports the private sector."
He explained that "the Iraqi Development Fund provided the private sector with unprecedented support, but we need legislation, and intensifying laws and legislation is a very important step in developing the private sector," noting that "financial and banking services, facilitating and simplifying procedures, and providing services are all part of supporting the private sector, which depends on achieving two conditions: the first is simplifying procedures, and the second is reducing the efforts expended."
Expert: Military situations and oil price fluctuations create a climate of economic uncertainty
Economic expert Basem Jamil Antoine warned today, Friday, of the state of uncertainty prevailing in regional markets at the present time.Antoine said in a statement to {Euphrates News} agency: “In light of the military circumstances witnessed by the region and the fluctuation of oil prices, we find that matters are still unknown and there is no fixed policy due to the instability of the market resulting from action and reaction and the lack of a fixed economic approach in the market.”
The expert added, "This state of instability is pushing many investors and traders to try to freeze their economic activity, which may lead to a slowdown in the region's economic growth."
This warning comes at a time when the region is witnessing increasing military tensions, in addition to the ongoing volatility in global oil markets. These developments raise serious concerns about the future of the economy in the region and the ability of governments to deal with these multiple challenges.
Antoine called on decision-makers to "develop clear and stable economic strategies to confront these challenges and reassure investors and markets."
Digital Banks: The Next Phase of Digital Transformation in the Egyptian Sector
With steady steps, the Central Bank continues to implement the banking reform strategy, one of the main objectives of which is to achieve digital transformation in the banking sector, which the Central Bank began in 2017 with clear stages included in its first, second and third strategies.
During the past two years, cooperation between the government, with the personal support and follow-up of the Prime Minister, and the Central Bank was a fundamental step to activate and accelerate the transformation to digital government and the transition from a cash economy to a digital economy, focusing on developing payments within Iraq and using technology to improve financial inclusion, developing information technology, establishing digital banks, using artificial intelligence in banking services, and using modern technologies in loans, compliance, risk management, combating money laundering and terrorist financing, and combating banking fraud.
The results during 2023 and 2024 recorded a qualitative leap in the volume of transactions in electronic payment operations and the use of modern banking technologies.The rate of digital transformation and electronic payment increased to 48.5% compared to 20% in the past years. This is an indicator that confirms the success of the plans and procedures adopted to achieve a major transformation with a distinguished national effort for digital transformation and electronic payment. This joint effort by the cadres of the Central Bank, the government, banks and electronic payment companies has clearly contributed to having an advanced infrastructure to implement and accommodate electronic payment tools and various financial services.The banking reform has now entered the phase of transformation to digital banks, and the Central Bank is currently examining and auditing about 70 requests to license new digital banks according to the precise controls and conditions adopted by the Central Bank. This constitutes a real and promising start for technical banking development in Iraq, bridging the technical gap with the countries of the world in this field. This facilitates the provision of smart banking services, reduces the chances of fraud and corruption, and provides important data on the nature of transactions, their control, and compliance.Therefore, digital banks are a new stage of digital transformation and banking reform. We hope that the Central Bank will soon take the first step by licensing digital banks that show, through examination, audit and study, that they are committed to the applicable controls and conditions.Similar to 2014.. Will Iraq resort to reducing expenses to cover the budget deficit? - Urgent
Mazhar Muhammad Salih, economic advisor to Prime Minister Muhammad Shia al-Sudani, commented today, Saturday (October 5, 2024), on the possibility of the government resorting to reducing expenditures, in order to cover the budget deficit and the lack of liquidity.
Saleh said in an interview with Baghdad Today, "The state was exposed to economic shocks, as happened in 2014, in the financial crisis, and the health crisis after the spread of the Corona virus and the decline in oil prices, but despite that, basic and governing expenses and salaries did not stop."
He added, "We have 4 million recipients of government income, other than retirees and social care, and this means that there is no Iraqi family that does not benefit from government income, and thus it is a moral and humanitarian issue, and one of the social constants."
Saleh pointed out that "there is a government hedge, according to Law No. 13 of the budget, and this law hedges against any economic crisis, but the deficit is hypothetical, and it does not necessarily happen, but it gives flexibility to financial liquidity in securing assumptions or things, to confront external clashes, or crises that may occur here and there."
The Iraqi general budget tables for the year 2024 faced objections and controversy due to the reduction of the investment budget for the 15 governorates that do not belong to a region, after the federal government approved them .
In June of last year, Parliament approved the country's draft general budget law for three years from 2023 to 2025, with a total value of 199 trillion dinars ($459 billion) .
According to data published by the Iraqi government, investment allocations for non-regional governorates in the 2024 budget decreased from 9.6 trillion dinars in the 2023 budget to three trillion dinars, despite an increase in the budget value over last year by 12 trillion dinars according to an exchange rate of 1,300 dinars to the dollar .
In response to the objections to the general budget tables, the Ministry of Planning said that what was allocated for the projects of the federal ministries that are being implemented in the governorates, except for the Kurdistan Region, amounted to 38.421 trillion dinars, so that the total amounts available to the governorates became 41.524 trillion dinars .
The secrets of the agreement between the factions and the government.. Two steps towards a calm Iraq amidst the noise of the neighbors
A responsible source in the Iraqi Resistance Coordination Committee confirmed today, Sunday (October 6, 2024), that the factions agreed not to target American interests during the current period, whether inside Iraq or in the region.
The source, who preferred to remain anonymous, explained to Baghdad Today, "This decision comes within the strategy of avoiding escalation and expanding the circle of war in the region."
He added, "Prime Minister Mohammed Shia al-Sudani and a number of leaders of the Coordination Framework are exerting strong pressure on the factions to maintain calm with the American side."
He stressed that "the United States has sent messages stating that any return to targeting its interests will lead to a military response, which will further aggravate the security situation in Iraq and the region in general."
The source indicated that "military operations are currently suspended," noting that "the factions are not responsible for the recent attack that targeted an American base at Baghdad International Airport."
A source close to the Iraqi factions revealed, on Wednesday (September 25, 2024), the factions’ active presence in 3 Arab countries, while confirming their readiness to pounce on Israel if the idea of a ground invasion is implemented.
The source told Baghdad Today, "The activity of the Iraqi factions on the fronts of Yemen, Syria and Lebanon is not a secret because they are an important and essential part of the axis of resistance and they participate directly in directing strikes against Zionist targets from time to time despite the complications and monitoring provided by Western countries, led by America, in broad information and intelligence support for the occupying entity."
He added, "It is not possible to deny or confirm the presence of large numbers of fighters in Daraa, Syria, at present, but it is confirmed that the resistance factions are present in all the capitals of the resistance axis," noting that "the exposure of resistance sites to Zionist bombardment is expected at any moment because we are facing an entity whose image of its strength and capabilities has collapsed for decades, but it was defeated in hours by the Palestinian resistance in Gaza."
He pointed out that "we will respond to any targeting and we already have undeclared capabilities that will be used at the appropriate time," stressing that "any invasion of Lebanese territory means changing the direction of the battle and important decisions will be made that will be announced at the appropriate time."
youtube translation transcript
The dollar exchange rate in the Iraqi market
0:03
has risen significantly for days and over two periods
0:07
leaving behind a set of repercussions including
0:11
Rising prices and impacting local markets
0:13
In a state of stagnation during the first period of the rise
0:17
During which the exchange rate ranged between
0:21
149,000 dinars
0:24
and 1,000 dinars for every 100 dollars, while it jumped in
0:28
The second period and within a short period to range
0:31
The exchange rate between
0:34
151,000
0:35
and 154 dinars for a 100
0:41
US dollar banknote. Financial experts point out that
0:45
The decline in transfers of other currencies is among the reasons for
0:48
this rise, in addition to the inability of all mechanisms
0:52
transfer to cover Demand for foreign currency
0:55
For the purpose of importing some goods
0:58
Especially mobile phones and gold, which
1:01
are the most valuable goods to import, which
1:04
is what drives importers to resort to
1:07
the parallel market for the purpose of importing this
1:10
The rise in the exchange rate coincides with the dollar
1:14
against the Iraqi dinar with a seasonal demand for
1:17
the dollar in the local market, in addition to the current events
1:20
in the region that jumped by a dollar after
1:23
The increasing demand for it against the backdrop of the escalation
1:26
military in the Middle East and security tension
1:28
The current, according to specialists, despite
1:32
the strict measures implemented by the government of Prime Minister
1:36
Iraqi Prime Minister Mohammed Shia al-Sudani
1:38
which returned something to the exchange rate From
1:41
Stability, but some measures taken by the
1:44
Central Bank did not succeed in keeping the market
1:47
stable
MILITARY
After 33 years.. How will the opening of the Swedish embassy in Iraq affect economic relations between the two countries?
Prime Minister Mohammed Shia al-Sudani welcomed today, Saturday, the reopening of the Swiss embassy after about 33 years of closure, stressing that this is an important step and a new stage in relations between the two countries.
A statement by the Prime Minister's media office received by "Al-Eqtisad News" stated that "the Prime Minister received the Swiss Confederation's resident ambassador to Iraq, Daniel Hon, who is the first ambassador of his country after the reopening of the Swiss embassy in Baghdad."
According to the statement, the Prime Minister welcomed "the reopening of the Swiss embassy after about 33 years of closure, and considered it an important step and a new stage in relations between the two countries, stressing the importance of activating joint working committees, which would contribute to more fruitful bilateral cooperation."The statement added, "The meeting witnessed an emphasis on the mutual desire to strengthen Iraqi-European relations, especially in light of the stable security situation in Iraq, the development renaissance that included all vital economic sectors, the government's support for the work and investment environment, and the creation of constructive economic partnerships."For his part, the ambassador stressed that "reopening his country's embassy in Baghdad will contribute to strengthening mutual relations and help Swiss companies to work there."In Iraq and take advantage of the available investment opportunities.The statement continued, "The meeting addressed the ongoing Zionist aggression on Gaza and Lebanon, its targeting of defenceless civilians, the role of the European Union in stopping this massacre, and the position of the international community required to limit the expansion of the conflict in the region, and the dangers and threats it poses to regional and international security."
Fuad Hussein discusses human rights legislation in Iraq with his US counterpart
The Minister of Foreign Affairs, Mr. Fuad Hussein, discussed with the US Assistant Secretary of State for Civilian Security, Democracy, and Human Rights, Azra Zia, in Washington, the crimes of ISIS and Iraqi legislation on human rights.
A statement by the Ministry of Foreign Affairs received by Shafaq News Agency stated that, "At the beginning of the meeting, the crimes committed by the terrorist organization ISIS were discussed, including crimes against humanity witnessed in the cities of Mosul and Sinjar, their destruction of cultural heritage, and the killings and kidnappings that targeted Yazidi women and children."
The statement added that "the Iraqi legislation was discussed, especially in the field of human rights. The Minister explained that this legislation is a matter that concerns Iraq, and must take into account the culture of Iraqi society. He also stressed Iraq's keenness to protect and develop its relations with other countries on the basis of common interests, and to work to strengthen democratic construction in various state institutions."
The Foreign Minister pointed out that Iraq seeks to make human rights an essential part of the culture of society, and to provide an appropriate environment to ensure its sustainability, in addition to enhancing its presence in international forums, which will positively reflect on its foreign relations.
We don't want another Iraq': British warning against drifting behind America in war against Iran
The British newspaper "The Mirror" warned against London drifting behind the United States in the wars that Israel is currently waging, noting that the British "do not want another Iraq", and that the British government does not have a mandate from Parliament.
At first, the British newspaper wondered whether Britain was at “war with Iran,” after British Air Force planes began operating to defend Israel against missiles launched by Iran, and after Downing Street, the seat of the government, issued a two-sentence statement in which it affirmed that Britain stood with the Israelis.
The newspaper saw in a report translated by Shafaq News Agency that the United States is happy to drag Britain into war with the Iranian regime, "but we are not obligated to follow in their footsteps submissively. Not again. And not another Iraq."
The report continued, saying, "Parliament has not convened, and the opposition is so busy opposing itself that it cannot speak logically, but our government must tell us, the citizens, how far it intends to go."
The report criticised British Foreign Secretary David Lammy, describing him as "talking weakly about an immediate ceasefire and a two-state solution for the Palestinians", adding that neither would be achieved.
The report warned that Britain is "drifting into a war in the Middle East that has no parliamentary approval, no logic, and no clear goals," recalling the results of a poll conducted by the newspaper showing that 68% of readers fear the approach of a third world war, and that their concern is justified.
The newspaper raised several questions, saying, "Will our pilots receive orders to bomb Iran? Will there be British forces on the ground in Iran? Will the Navy fire missiles at Israel's enemy? And if so, why?"
“Israel is nuclear-armed, the most powerful military state in the region, and can strike anywhere, including Iran, whenever it wants,” the report said, adding that “its right-wing military government already enjoys the full support of the world’s greatest war machine, the United States,” suggesting that this should be enough to keep Britain from intervening. “This is not our war,” the report concluded.
To coordinate the response to Iran.. Commander of the US Central Command in Israel in the coming hours
The US military announced today, Saturday (October 5, 2024), that the commander of the US Central Command, General Michael Eric Kurilla, who oversees US forces in the Middle East, will visit Israel in the coming hours, to discuss and coordinate positions with Israeli officials regarding the nature of the retaliatory response against Iran.
In this regard, US President Joe Biden said, last Friday evening, in a press conference at the White House, which was followed by "Baghdad Today", that "the American and Israeli teams are in constant contact, and will not make a decision immediately, and we will wait to see when they will talk to us," explaining that his country "is currently considering imposing sanctions on Iran."
Biden declined to provide details on the nature of the potential Israeli response to Iran, saying: "That's between me and them."
He added that if he were in Israel's place, he would consider alternatives other than targeting Iranian oil fields, expressing his belief that Tel Aviv has not yet reached a decision on how to respond to the missile attack launched by Tehran last Tuesday.
The Security Cabinet decided last Friday evening to respond to the Iranian attack, and Hebrew media quoted unnamed officials as saying that Tel Aviv "wants to carry out a major operation in response to Iran, but does not want a path that will distract it from the goals of the war."
The officials added that "Israel wants the response to Iran not to lead to an exchange of strikes in the near future."
Israeli consultations continue at the political and military levels to determine the nature of the response and offensive scenarios against Tehran, as Israel is considering attacking strategic targets in Iran, such as oil or gas facilities, and is calling on the international community to impose sanctions on Tehran with the aim of deepening its international isolation, according to media outlets.
Iran launched nearly 200 ballistic missiles at Israel on Tuesday evening in response to the assassination of Hezbollah Secretary-General Hassan Nasrallah, Hamas Political Bureau Chief Ismail Haniyeh, and Revolutionary Guards commander Abbas Nilforoushan.
Earlier, Israeli Prime Minister Benjamin Netanyahu described Iran's massive missile attack on his country as a "huge mistake" and said Tehran would pay the price.
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US Central Command Commander Arrives in Israel Amid Preparations to Respond to Iranian Strikes
The head of the US Central Command (CENTCOM), General Michael Kurilla, arrived in Israel on Saturday evening, as Tel Aviv prepares to respond to the Iranian missile attack.
On October 1, Iran fired about 200 rockets at Israel, in its second direct attack on the Hebrew state in less than six months.
The Israeli military announced that air defense systems intercepted most of the missiles, while some hit military bases without causing significant damage or casualties.
Iran said its attack was in response to the assassination of Hamas political bureau chief Ismail Haniyeh and Hezbollah Secretary-General Hassan Nasrallah. The expected Israeli response to Iran.
The Israeli Broadcasting Corporation reported that Kurilla met with Israeli Chief of Staff Herzi Halevi and senior members of the General Staff, and is expected to meet with Defense Minister Yoav Galant later. Observers expect the talks to focus on the expected Israeli response to Iran. An
Israeli military official said the army is "preparing a response" to the Iranian missile attack.
"The Israeli army is preparing a response to the illegal and unprecedented Iranian attack against Israeli civilians and Israel," the official told AFP on condition of anonymity.
The official did not provide details on the nature or timing of the response, but the Israeli newspaper Haaretz quoted the army as saying the response would be "major."
It reported that "the Israeli army is preparing for a major strike in Iran after the missile attack carried out by Tehran this week," adding that "the army does not rule out the possibility that Iran will fire missiles at Israel again."
Israeli media reported that Prime Minister Benjamin Netanyahu will also hold additional security consultations on Saturday evening regarding the response to Iran.
Israel's Channel 12 quoted an Israeli official as saying that "Iran made a big mistake and will pay the price for it."
Al-Sudani asked the ruling coalition to “move quickly before war”
Government official: Tehran stalls when asked to curb factions
A senior government official confirmed that Iraqi Prime Minister Mohammed Shia al-Sudani informed the leaders of the “Coordination Framework” with comprehensive details about the “expected risks to Iraq” resulting from the escalation between Israel and Iran, while stressing that Tehran is practicing “deception” when asked to keep factions away from the ongoing war.
Concern increased among political and governmental circles that Iraq would be exposed to a strike after two Israeli soldiers were killed in a drone attack on the Golan base, early Friday morning.
The official spoke to Asharq Al-Awsat, on condition of anonymity, about a set of measures that Al-Sudani is taking to avoid war, including “increasing the momentum of political mediation” to convince the factions not to involve Iraq in the war, and that he “informed the leaders of the Coordination Framework of everything about the risks, and called on them to move quickly.”
The official acknowledges the possibility of “the strike occurring,” even though “the information available to the Iraqi authorities indicates that the attack by the Iraqi factions was carried out from outside Iraqi territory with weapons that arrived from Iraq,” he said.
Sudanese mediations
The source revealed that the mediators chosen by Al-Sudani to pressure the factions have approval from Iran to talk about the war file and the conditions for calm with its agents in Iraq.
The source said, "The three figures had previously been asked to mediate in certain events over the past few years."
Last week, Asharq Al-Awsat revealed that Prime Minister Mohammed Shia Al-Sudani had asked three Shiite figures to mediate to rein in the factions and prevent them from getting involved in the war between the Lebanese Hezbollah and Israel, after information was circulated within the ruling coalition that Israel had identified 35 Iraqi targets.
Sources said at the time that Ammar al-Hakim was among these figures, along with two influential figures in the Shiite space who have not yet been revealed.
In contrast, there are reports that two Iraqi factions, likely the Al-Nujaba Movement led by Akram al-Kaabi, and the Hezbollah Brigades led by Abu Hussein al-Hamidawi, are refusing to respond to mediators and insisting on continuing to launch missile attacks on Israel.
The Iraqi official acknowledged the existence of “intransigence among some factions,” but the Prime Minister realizes that his country is in the “eye of the storm,” and has informed most of the leaders of the “Coordination Framework” of this.
The official reported that "Al-Sudani literally said: Iraq is unable to avoid a military strike if it occurs, and we must remove the danger from the country by not getting involved in the war."
Iranian Supreme Leader Ali Khamenei said during his Friday sermon that “the Islamic Republic’s allies in the region will not back down,” reinforcing fears that Iraqi factions linked to Iran will not back down from their decision to attack Israel.
Iraqi sources reported that the "Coordination Framework" coalition discussed what was said to be a "security report on dozens of targets to be struck and assassinated by Israel in Iraq."
Government efforts to prevent escalation
The official stated that "Al-Sudani, unlike some previous prime ministers, did not allow the exit of Iraqi funds to feed the conflict axes, through his high coordination with the American side and the American Treasury to monitor the exit of Iraqi funds in a strict manner, and he often demands that the Iranians enter through the official gates to obtain their financial dues owed by Iraq."
The official added, "Today, international auditing companies are working alongside the Central Bank to monitor the exit and smuggling of money, and what is happening today is that all the money gates that were open are now completely closed."
The official revealed that "the United States of America informed Iraq since the outbreak of the war in Gaza on October 7, 2023 that it had put pressure on Israel to prevent it from launching strikes on Iraq, in exchange for Iraq's commitment not to engage in the war."
The official added, "Washington does not oppose the positions of the Iraqi government, which is within the green line of issuing statements against Israel and supporting the Lebanese and Palestinian peoples, as well as sending aid," but "it will not accept Iraq providing any material or military support to factional groups or others."
Regarding the possibility of the Iraqi authorities asking the Iranian side to rein in the factions affiliated with it, the official confirmed that “Tehran is practicing a kind of trickery in this direction, as its response often hints that the factions have their own decision and the understanding with them is like the government.”
Iraqi forces decide to keep out of Israel’s battles with Hezbollah and Iran
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Officials and paramilitary commanders say Israeli attacks could be ruinous for Iraq and even topple its government
The Iraqi political and armed forces affiliated to Tehran have decided to distance themselves from Israel’s battles with Hezbollah and Iran, fearing that expanding the growing Middle Eastern wars could ruin Iraq and their own positions.
Iraqi officials and leaders of Iranian-backed armed factions told Middle East Eye that the focus instead will be on providing humanitarian aid and financial support to civilians affected by Israel’s war on Lebanon.
No US interests or military bases in Iraq or Syria will be targeted by Iraqi armed factions until further notice, commanders said.
Over the past year, Israel’s onslaught on Gaza has drawn reprisals from Hezbollah in Lebanon, Yemen’s Ansar Allah (commonly known as the Houthi movement), and Iraqi paramilitary groups.
Meanwhile, Israel has begun waging war on Lebanon. It has also killed Hezbollah’s leader, Hassan Nasrallah, and assassinated Ismail Haniyeh, Hamas’ political leader, in Tehran.
In response, Iran rained ballistic missiles on Israel on Tuesday, causing significant damage to Israeli military bases.
The escalation has raised the prospect of further Iraqi participation, whether through Iraq’s regular military or its multitude of paramilitary groups.
However, Iraqi officials say there is a belief that this would lead to the collapse of Iraq’s political, economic and military system and the fall of its government.
Sudani seeks calm
Over recent days, Iraqi Prime Minister Mohammed Shia al-Sudani has held dozens of meetings with political leaders, commanders of armed factions allied with Iran and the top brass of Iraq’s security services.
According to one of Sudani’s advisers, the prime minister sought to “explain the reality of the situation facing Iraq and the consequences of any Iraqi party getting involved in the ongoing conflict”.
He also met with various Arab and western diplomats, and spoke to several neighbouring leaders, including the Egyptian president, Qatar’
s emir and the king of Jordan. Sudani pressed them to help “stop the ongoing Zionist aggression on Lebanon and Gaza, which threatens to expand the conflict throughout the region", his adviser said.
Iraqi officials and commanders of armed factions told MEE they believe Iraq will be one of four countries that Israel will strike soon, in response to the Iranian missile attack.
'Sudani has been striving to deprive the Israelis of any pretext that could be used to strike Iraq'
- Adviser to the prime minister
A succession of dramatic and ruthless Israeli attacks on Lebanon and Hezbollah over the past two weeks have been met joyously by Israel’s leadership and public.
Yet, Sudani’s adviser noted, “the Iranian missiles have dispelled their euphoria”.
“This means that it will definitely respond to this attack. Israel will inevitably attack Iraq, as it will attack Syria and Yemen, in addition to some oil facilities in Iran,” he said.
"Sudani has been striving to deprive the Israelis of any pretext that could be used to strike Iraq,” the adviser added.
"Iraq's political, security and economic situation is fragile and will not endure any party's adventure. Any ill-considered action in the coming days will have a high price and could burn everything."
Potential targets
Sources in the armed factions and security services predict Israel could hit several targets, including the headquarters of the Popular Mobilisation Forces (PMF), a governmental umbrella organisation that oversees various paramilitaries, including those close to Iran.
Last week, rumours were rife in political and media circles that Israel had drawn up a list of 35 targets in Iraq, including the locations and names of political leaders and the heads of armed factions.
Yet paramilitary commanders and security officials insisted to MEE there is no indication that such a list exists.
“Its targets in Iraq are known and clear. It will attack the camps of some armed factions, as well as the camps and headquarters of the Popular Mobilisation Forces, and may target some commanders of the armed factions,” a senior PMF official told MEE.
“The only two figures who are actually targeted are Akram al-Kaabi, the commander of Harakat Hezbollah al-Nujaba, and Abu Hussein al-Muhammadawi, the commander of Kataeb Hezbollah,” the official said.
The official noted that the leaders of other Iranian-linked armed factions have traded their military roles for more political and economic ones, and no longer have any real influence on the armed resistance to Israel.
“The Israelis and Americans know this and are well aware of it, and have no interest in targeting them,” he said.
On Tuesday evening, immediately after the Iranian missile attack ended, the anti-Israel Iraqi paramilitaries that make up the “Islamic Resistance” issued a joint statement. They said they would not target US interests and military bases in Iraq unless Washington helps Israel attack Iran, or if Iraq’s airspace is used for Israeli bombing raids.
“Then all American bases and interests in Iraq and the region will be our target,” the statement said.
“All parties agreed to stop any military operations at this stage, but if Israel strikes any of them, everyone will respond at once,” a Harakat Hezbollah al-Nujaba commander told MEE.
"American and Israeli interests in Iraq and the region will all be targeted."
Precautionary measures
Sudani has put all Iraqi military forces on high alert since Tuesday evening. Most armed faction commanders have not appeared in public since then.
Meanwhile, a meeting was convened by the Popular Mobilisation Forces' leadership on Monday to discuss the latest developments and ways to secure its offices and forces, commanders told MEE.
According to one person present at the meeting, they all agreed to avoid engaging in the escalating regional conflict, including attacking US forces in Iraq, which they had done repeatedly before the beginning of this war.
They also decided to reduce the number of paramilitary troops at their headquarters and inform commanders to avoid being there, too.
The PMF leadership agreed to send all commanders strict instructions that all the fighters registered with the organisation should not be involved in the regional conflict in any way.
“If they decide to engage in the battle, they should not use their fighters registered on the Popular Mobilisation’s payroll, or its vehicles or equipment,” said the source at the meeting.
One senior commander, who was also at the meeting, described the situation as “very critical” and said “any mistake, we will all pay the price for”.
“We are targeted. Our troops’ locations, headquarters and weapons warehouses are exposed and known, so there is no room for any uncounted action,” he said.
“It is easy. We are regular troops, so our choice is the government’s choice. It is that simple.”
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