Why is the US dollar exchange rate fluctuating?
Once again, the fluctuation in the US dollar exchange rate has returned to the forefront, and this time it is due to speculators and merchants of crises and wars, exploiting the war currently being waged by the Zionist entity against our Arab people in Palestine and Lebanon and the confusing security situation resulting from that.
The current level is above 1,500 dinars on the black market,
and the continuation of this problem from time to time can be attributed to several reasons, including before 2023 the lack of control over the organization of foreign trade financing and the lack of a clear trade policy, the entanglement of policies and the lack of an annual import program for the private sector in terms of quantities and amounts, but imports are open and without controls on external transfers.
In addition to "the lack of control over illegal imports and unofficial border crossings, as well as the presence of about 1,200 exchange offices spread across all governorates that are not licensed by the Central Bank and deal in cash dollars and about 12,000 outlets for disbursing pensioners' salaries and social care that deal with its exchange rate on the black market."
And that "most traders who obtain the US dollar at the official price from the Central Bank, but they sell their goods in the local market at the black market price, as well as the lack of global correspondent banks previously dealing with our banks and accounts were not opened for them in the currencies of countries with which we have extensive trade exchange such as China, India, Turkey and the Emirates."
Also, "the failure of traders and some Banks with international banking standards that guarantee the dollar's arrival to the final beneficiary, therefore the efforts of the Central Bank and the government in 2023 focused on drawing up a strategy for financial and banking reform in order to control the stability of the exchange rate.
“Among the axes of this strategy are organizing foreign trade financing, building new international understandings with global banks, and opening accounts for our banks in correspondent banks, as more than 30 accounts have been opened with American, Chinese, Emirati, Turkish, and Indian banks. We expect that during the next two months the number of Iraqi banks that have accounts in correspondent banks will increase due to the efforts made by the Central Bank to provide aid and assistance to them and coordinate with the targeted correspondent banks.
“Opening dealings with local currencies such as the Chinese yuan, the European euro, the Emirati dirham, the Turkish lira, and the Indian rupee in foreign transfers with the aim of reducing the demand for the US dollar, in addition to taking measures in cooperation between the Central Bank and the government to comprehensively expand the digital transformation from the cash economy to the digital economy and stimulate the use of electronic payment tools. This strategy aims to “put pressure on speculators dealing in cash dollars in the black market and limit their activities that harm the national economy, which was discussed in the Prime Minister’s specialized economic meetings in the presence of the Minister of Finance, the Governor of the Central Bank, advisors, and directors of government and private banks.
It must be noted here that "the availability of foreign exchange reserves for the Central Bank exceeding 100 billion dollars and a gold reserve exceeding 143 tons confirms that the Iraqi dinar will recover and that it is strong, as the local currency in circulation is covered by the foreign exchange reserve, in addition to the other executive measures to support and stimulate the local product and control the monetary market and the commercial market, which will control the exchange rate, as I expect in the near future."
Waiting to be sent.. Oil and Gas Law on the Government Discussion Table
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Member of the Parliamentary Oil, Gas and Resources Committee, Kazem Al-Tawki, confirmed today, Thursday, that the draft oil and gas law is awaiting approval within the Council of Ministers, indicating that the joint committees between the federal government and the regional government are continuing their work to decide on the law.
Al-Tawki told Al-Maalouma Agency, “There are controversial articles that hinder sending the draft oil and gas law to the House of Representatives,” noting that “the draft is still in the government’s possession.”
He added that "the oil and gas law is still on the government's discussion table," noting that "the relevant committees are continuing their meetings in the hope of reaching an agreement on the controversial articles."
He stressed that "there is a common vision between the governments of Baghdad and the region to complete the oil and gas law file and send it to the House of Representatives."
Communications: Iraqi Post has achieved great success in digital transformation of financial transactions
The Ministry of Communications confirmed, on Wednesday, that the Iraqi Post has achieved great success in the digital transformation of financial transactions.
The spokesman for the Ministry of Communications, Omar Abdul Razzaq Musaheb, said in a statement, which was reviewed by “Al-Eqtisad News”, that “the General Company for Post and Savings has achieved great success in terms of digital transformation operations for financial transactions by converting postal books that are decades old into easy-to-use electronic cards that allow citizens to view their balance and know all movements in their account through the electronic application “Ki”.
He added that "the digital transformation operations achieved their desired goals of reducing corruption and manipulation of citizens' deposits, which contributed to enhancing citizens' confidence in the procedures adopted by the Post and Savings Company," noting that "they came in compliance with the paragraphs of the government program that emphasize the importance of activating digital transformation and electronic payment in financial transactions instead of cash currency trading."
Abdul Razzaq continued, "The Central Bank of Iraq is fully aware of all the financial activities of the General Postal and Savings Company through a monthly position submitted by the company, contrary to what is being promoted."
He pointed out that "the parties that are trying to downplay the importance of this achievement or seek to mislead public opinion with false information in this regard are the same bankrupt parties that do not want the wheel of reconstruction to advance in the work of the ministry's joints."
For the purpose of organization and protection... exchange companies establish a union for money changers
A number of exchange companies in Baghdad, numbering 107 companies, decided to establish a special union for money changers, whose mission, as the owners of exchange offices and companies say, is to lift the injustice from them and secure their rights, in addition to making it a first step towards establishing a special union for owners of exchange offices and companies in Iraq.
Sector organization
Diaa Al-Taie, the head of the Iraqi Money Changers Syndicate, told Al-Masry that “we were without our own syndicate like all the existing syndicates, and at the same time we lacked organization and protection as owners of exchange offices and companies, and there is no internal law regulating our work except the one provided by the Central Bank,” indicating that “there are intruders in the profession who played a negative role in exchange companies and money changers,” stressing that “their main goal from this step is to organize, protect and develop the exchange work, because as a result all the work will serve the interests of the Central Bank and the Iraqi economy.”
step in the right direction
For his part, the head of the parliamentary investment committee, Hassan Al-Khafaji, explained to Al-Masry that “the establishment of a union for money changers with the participation of 107 companies is an important step in the right direction, as the members and the head of the union were chosen democratically and through voting with complete transparency and integrity,” noting that “this union formed will serve the economic sector in the country in the future, as well as the private and money changer sectors, and will also help the parliament, the central bank and the judiciary in protecting their rights and interests.”
Unify efforts
In turn, the representative of the money changers in the region, Ahmed Hussein Al-Jaf, told Al-Masry that “after the call of the Central Bank to unify efforts, the exchange companies in the country sought with all seriousness to complete the merger requirements, and the companies in the region did not spare any effort to respond to the call of the Central Bank to register with it and obtain a work license, as it represents the first monetary authority in the country.” He indicated that unfortunately, after more than three years and to this day, no exchange company in the region has obtained a work license from the Central Bank, hoping in the coming days to achieve this endeavor by merging into the union and obtaining work licenses.
need for a platform
In the same context, member of the Parliamentary Finance Committee, Hussein Mounes, told Al-Masry that “the emergence of a union for exchange companies and money changers is evidence that this sector is vibrant, has a spirit, and needs to continue, after it was subjected to many blows in the absence of banking management in the country, and became accused and neglected.” He explained that “this sector needs a platform to express its needs and convey its voice to the legislative and executive authorities. Therefore, establishing this union is considered a qualitative addition to the exchange and money changers sector, arranging its requirements and unifying its orientations in order to reach the concerned parties through an official platform.”
Establishment of the “Iraqi Money Changers Syndicate” in Baghdad.. and Al-Taie as its President
In a move that is the first of its kind in Iraq, the establishment of the “Iraqi Money Changers Syndicate” was announced today, Wednesday, and the election of Diaa Al-Taie as its president, to lift the injustice against the owners of money exchange offices and companies and secure their rights.
The “Jarida” platform attended the founding conference of the union at the “Mansour Melia” Hotel in central Baghdad, which was held by a group of owners of exchange offices and financial companies, and attended by a number of parliamentarians, including the head of the Parliament’s Investment Committee, Hassan Al-Khafaji, and a member of the Finance Committee, Hussein Mounes, in addition to businessmen.
The election of Diaa Al-Taie as the head of the Iraqi Money Changers Syndicate took place in a clear and fair manner in front of those present, in a step that is the first of its kind to bring together most of the companies and money changers in a syndicate to present ideas, communicate with each other, and crystallize their positions with the Iraqi government.
This is what Al-Taie emphasized, that the establishment step had been under study for some time, and today this idea has matured and crystallized with the establishment of the “Iraqi Money Changers Syndicate.”
The attending representatives, most notably Hassan Al-Khafaji and Hussein Mounes, supported the idea of establishing it in a speech they delivered during the conference, indicating that the parliamentary committees support this legal regulatory path, stressing that this step is important for direct communication through legal paths with the Central Bank of Iraq, Iraqi banks, and those concerned from exchange companies to deal with each other regarding the local market.
The representatives promised to communicate and support this idea, which will open broad horizons between the Iraqi government and the private sector, which includes exchange companies represented by the “Iraqi Exchange Union.”
Opening branches
CENTRAL BANK OF IRAQ
7947 BANK CENTRAL
Granary breeder bank
OF IRAQ
Directorate of Supervision of Non-Banking Financial Institutions
NO: DATE:
Issue: 226/32 Date: 124 Arab
Population census...the pillar of development)
Exchange companies for category (A) m opening branches
Best regards...
Based on the decision of the Board of Directors of this bank No. (225) of 2024, the following has been decided: - 1- Cancel the decision of the Board of Directors of this bank No. (1) of 2023, addressed to you pursuant to our circular No. (19/3/33).
On 12/25/2023 - Allowing your companies that do not exceed 10 branches (including the main headquarters) to open new branches for them, including
2. It does not exceed that. Requesting your companies that have 10 branches, including the main headquarters, to increase their capital by an amount of 250 million dinars when they wish to open a new branch, regardless of the period of time they were granted the license.
With appreciation.
Prof. Dr. Ammar Hamad Khalaf
Financial expert: Iraq must take several steps to transform its economy from a rentier to a multi-revenue economy
Financial and economic expert Safwan Qusay confirmed today, Wednesday, that the transformation of Iraq's economy from a rentier oil economy to a multi-revenue economy requires several steps that must be followed by the authorities responsible for developing the Iraqi economy.
Qusay said in a statement to the National Iraqi News Agency / NINA / that "the current tax reform process must be consistent with the necessity for the investment law to be compatible with the tax law, indicating that Iraq inherited a set of tax laws related to the central economy, so the process of updating them is related to the requirements of global investment that will increase the ability to attract investments and requires stability in these laws."
He added that "Iraq does not need a process of reviewing the rates, but rather needs to comply with international financial reporting standards so that the values appearing in the financial statements are the reality of income, and we need to expand the tax base and review tax allowances in a manner consistent with the purchasing power of the income earner.. We need a process of twinning between local and international laws with direct supervision of what the investor desires, which can restore the tax law sector so that Iraq has an attractive investment opportunity away from the process of subjecting these indicators to laws that are not characterized by sustainability."
He pointed out that "supporting the local product can be done by providing production subsidies and not by imposing taxes on the investment sector. We need to transform the informal market into a formal one because this will pave the way for building a non-oil economy."
Iraq, United States
Iraq selects teams of ex-US Treasury Department officials to reform bank, following US pressure campaign
Parliamentary Legal: Parliament will extend its legislative term to complete important laws
The Parliamentary Legal Committee confirmed that the work on the general amnesty law is proceeding to formulate it in its final form, noting that Parliament will extend its legislative term to complete important laws.
Committee member Raed Al-Maliki said, "Next week, the committee will focus on legislating the Personal Status Law, and work is ongoing in the committee on the general amnesty law to formulate it in a final form, and we are working to have it passed during the current legislative session."
He added, "The House of Representatives will extend its legislative session for a month, and thus the legislative holiday will be only one month to complete some important laws. A letter was sent to the House Presidency to include some laws on the agenda during the coming weeks."
Al-Maliki said, "Among the laws that we demand to be included on the agenda are the laws (the right to obtain information, and the regulation of the right to demonstrate and peaceful assembly), as well as reading the proposals of some laws for a first and second reading, such as (the proposed law of human rights activists, and the law of the House of Representatives, its formations and amendments)."
The Iraqi Stock Exchange decides to launch trading on the shares of Al-Sinam Islamic Bank next Sunday
The Iraq Stock Exchange announced the launch of trading in the shares of Al-Sanam Islamic Bank next Sunday.
According to a document issued by the Iraqi Stock Exchange, “the shares of Al-Sanam Islamic Bank deposited will be available for trading starting from next Sunday’s session.”
She pointed out that "the company's capital amounts to 300 billion dinars."
With a capital of 250 billion.. Completion of the procedures for listing the Islamic Money Bank
The Iraqi Depository Center announced today, Thursday, the completion of the procedures for listing the Islamic Money Bank with a capital of 250 billion, while setting a date for depositing the bank’s shareholders’ share certificates.
The center stated that "the procedures for listing the Islamic Money Bank with a capital of 250 billion dinars have been completed."
He added: "The bank's shareholders' share certificates will be deposited as of today, Thursday."
She pointed out that "the launch of trading on the Islamic Money Bank's shares will take place after depositing 5% of its capital or after 21 days from the date of the start of the deposit."
China's Rise in Iraq's Energy Sector: From Newcomer to Dominant Player
While Iraqi leaders consistently emphasize the importance of Western investment in their energy sector, their actions instead are increasing Iraq’s dependence on Chinese markets and oil firms.
Executive Summary
Chinese energy companies emerged as dominant players in the Iraqi Oil Ministry’s May licensing rounds to auction 29 oil and gas blocks, securing 10 out of 13 oil and gas blocks. Shell was the only Western international oil company to participate, and it did not win any bids. Other Western and U.S. international oil companies showed no interest in bidding, despite improved fiscal terms of the contracts. The resounding success of Chinese firms underscores a significant shift, solidifying Beijing’s already strong position in Iraq’s energy landscape and presenting a substantial challenge to Washington’s strategic position in the region.
The increasing Chinese dominance comes amid a seemingly contradictory development: In April, Iraqi Prime Minister Mohammed al-Sudani signed numerous memorandums of understanding with U.S. energy companies, particularly focusing on gas development and power generation. This focus aligns with Washington’s strategic goals of diminishing Iran’s political influence in Iraq and, by extension, blunting China’s push to dominate Iraq’s hydrocarbon sector. The stark contrast between the memorandums of understanding signed by U.S. companies and the contracts awarded to China demonstrates a significant mismatch between the aspirations of Washington and the realities of the investment environment in Iraq.
Iraq: Activists plan nationwide protests Oct. 25
Activists plan nationwide protests in Iraq Oct. 25. Increased security, localized transport disruptions likely.
Activists plan to demonstrate nationwide Oct. 25 to commemorate the 2019 Tishreen Protest Movement. The main gathering will be at Tahrir Square in Baghdad from 10:00. Associated demonstrations will also likely occur at public squares and government buildings across the country.
Increased security and localized transport disruptions are likely near gathering sites. Clashes between police and protesters are possible, particularly if demonstrators ignore police orders to disperse.
Uncertainty over the 2025 budget.. Parliament: We don't know anything about it yet - Urgent
The Parliamentary Finance Committee confirmed, today, Thursday (October 24, 2024), that the House of Representatives does not know anything about the details of the 2025 budget schedules.
Committee member Jamal Kojer said in an interview with Baghdad Today, "The House of Representatives has not yet reviewed any of the details of the 2025 budget schedules, and we do not know the size of the budget, the percentage of the deficit in it, what projects it includes, and other financial issues."
Koger said, "We do not expect there to be a major or fundamental change in the 2025 budget schedules compared to the past two years, and we believe that the deficit will exist virtually or in reality, and this is what the budget schedules will determine when they reach us and we review them, as there is no official date for their arrival yet."
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed on Tuesday (October 8, 2024) that the Ministry of Finance is preparing the general budget tables for the year 2025, while pointing out the most important pillars that will be adopted in the budget for next year.
Saleh said in a statement carried by the official news agency, "Article 77/Second of the Federal General Budget Law No. 13 of 2023, which regulates the preparation of the three-year budget, stipulates that the government sends the budget tables for the years 2024 and 2025 to the House of Representatives for approval before the end of the previous fiscal year."
He added, "The Ministry of Finance has announced that it is in the process of preparing the general budget schedules for the year 2025, in accordance with the constitutional mechanisms adopted by the aforementioned three-year budget law."
He pointed out that "based on the indicators of budget implementation over the first two years of Law No. 13 mentioned above, the financial authority has the necessary administrative and financial capabilities to submit the 2025 budget tables to take their legislative path through discussion and approval in the Council of Ministers and refer them to the House of Representatives before the end of this year."
Saleh noted that "the federal general budget tables for the year 2025 will be based on the constants of Federal Budget Law No. 13 of 2024, taking into account international and regional economic conditions and their changes, in a way that ensures that the provisions of the budget tables for the year 2025 are adapted within the available legal texts, in addition to relying on the performance indicators of the general budget tables for the year 2024."
He stressed that "major construction projects will continue to progress in accordance with the vision of the government programme to ensure the continuity of growth rates in the gross domestic product in general and the gross domestic product (non-oil) in particular."
Why is the dollar exchange rate continuing to rise? An economist explains
Abdul Rahman Al-Mashhadani told Al-Furat News Agency that "the rise in the dollar exchange rate is due to the general instability of the situation, and in such cases citizens try to switch to a future currency in anticipation of any decline, migration, or other."
He added, "There are obligations for Iraqi traders with suppliers from various countries, which pushes them to pay to avoid the losses that accompany the rise of the dollar."
Al-Mashhadani continued, "So far, there is no mechanism to solve the problem of trade with the sanctioned countries and Iran in particular, especially since the volume of trade with Iran is large and all of it is financed from the markets."
He explained, "There are no problems regarding money transfers in the Central Bank, as it sells more than 260 million dollars daily."
High-level Iraqi delegation in Beirut
Acting Speaker of the Iraqi Parliament, Mohsen Al-Mandalawi, arrived in the Lebanese capital Beirut on Tuesday, heading a high-level parliamentary delegation.
An informed source reported that the visit aims to confirm Iraq's support for Lebanon in this difficult phase and to provide whatever humanitarian assistance possible.
The source indicated that the visit will witness discussions on the latest developments in the region, within the framework of strengthening bilateral relations and joint cooperation between the two countries.
One of them "disappeared" from the radar.. Hezbollah "confuses" Israeli airspace with two drones
The Israeli army went on alert on Tuesday evening after two drones coming from Lebanon penetrated the Israeli airspace. One of them was shot down, while the other "disappeared" from radar devices, causing "confusion" in Israeli airspace.
The Israeli Army Radio quoted a military source as saying that the search for a drone that infiltrated from Lebanon has been ongoing for 40 minutes to no avail.
She pointed out that combat helicopters are participating in the search for a drone that infiltrated from Lebanon, and she also quoted a source in the Shin Bet as saying that the GPS navigation system in Greater Tel Aviv had been disabled for security reasons related to the drone.
Shortly after, Israeli Channel 12 reported that two drones had penetrated the airspace from Lebanon, one of which was shot down and the search for the other was still ongoing, before the Israeli army radio returned and indicated that the incident of the drones’ infiltration from Lebanon had ended after about an hour.
Interestingly, the Israeli army radio reported again that the drone had been lost in the airspace of Yokneam, south of Haifa, without any objection.
Israeli media said, "The number of aircraft brought in by the Israeli Air Force tonight to search for a single drone is an unprecedented number."
The Islamic Resistance in Iraq attacks a military target north of the occupied territories with a drone
The Islamic Resistance in Iraq announced, today, Thursday, that it had attacked a military target in the north of the occupied territories, using drones.
The Islamic Resistance confirmed in a statement: "The operations against the enemies continue at an escalating pace."
Turkey strikes Iraq, Syria after attack on defence company near Ankara - Al Jazeera It said it “affirms Iraq's firm position in rejecting terrorism and extremism in all its forms and manifestations, and expresses the solidarity of ... |
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