Iraqi traders: Our losses are huge.. What does the toman have to do with it?

Iraqi traders: Our losses are huge.. What does the toman have to do with it?

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The Iranian Toman currency witnessed a new deterioration after it collapsed under the weight of American sanctions and political and economic crises in Tehran, which burdens traders and those dealing with it, turning profits into concerns, and warnings into a bitter reality.

The video for this blogpost is below here:

A toman dealer named Dalir Hussein said, “The continuous decline in the value of the currency…IranianIt has greatly harmed traders and speculators in this currency,” he said, noting that “some people’s losses have exceeded $40,000 in a matter of weeks.”

 

 

 

Hussein added, "The exchange market in Sulaymaniyah is one of the largest outlets for buying and selling Iranian tomans in Iraq."

 

And imposeUSFor decades, economic, trade and military sanctions have been imposed againstIranBecause of its nuclear program, support for terrorist groups, and human rights violations.

 

These sanctions target the capabilities ofIranNuclear, energy and defense sectors, government officials, banks and other economic sectors.

 

The head of the Kurdistan Economic Development Organization, Hussam Barzinji, said, “Dealing with the toman in the exchange market in Sulaymaniyah is done in two ways, the first is direct cash buying and selling,” noting that “the second way is on credit or what is called air, which is that the buyer does not pay the value in cash at that moment, but rather an agreement is made verbally with the seller on a specific price in the hope that its price will rise the next day.”

 

Barzanji said, “Profit and loss in this type of dealing depends on the change in the Toman exchange rate, which is affected by the volume of demand for the currency and the political and economic situation in the country.”Iran"The region," describing "forward dealing as illegal and similar to gambling."

 

He called on the authorities to prevent this type of dealing in the region's stock exchanges "due to the financial damage and serious social problems," explaining that "those dealing in the toman in the region's exchange market are suffering huge financial losses amounting to thousands of dollars daily, due to the continued decline in the exchange rate and the fraudulent operations to which these people are exposed by Iranian traders and speculators," according to his expression.

 

Barzanji explained that “one of the fraudulent methods practiced by Iranian traders over the past years, which caused the bankruptcy of dozens of Iraqi traders, was to conclude dealsCommercialIt is tempting to buy Iranian goods for huge amounts of money, and when sending the value of the goods through exchange offices, the merchant receives it inIranThen he suddenly disappears or declares bankruptcy, even though the Iranian and Kurdish merchant had previously made several deals and gained each other’s trust.”

 

And imposedUSUS in October 2024 new series of sanctions onIranTargeting the oil and petrochemical sectors in response to the Iranian missile attack on Israel.

 

The US Treasury Department said in a statement that this measure increases the financial pressure onIranIt limits the regime's ability to use the revenues it earns from vital energy sources to undermine stability in the region and target partners.USAnd its allies.

 

Al-Sudani and Masrour Bazani welcome the passage of the budget law amendment: a responsible step

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Iraqi Prime Minister Mohammed Shia al-Sudani welcomed, on Sunday, the passing of the amendment to the financial budget law, while considering the vote on the law a "responsible step."

Bassem Al-Awadi, the spokesman for the Iraqi government, said in a statement received by Shafak News Agency, "Al-Sudani expresses his appreciation for the responsible and constructive step taken by the esteemed House of Representatives, by approving the amendment to the Federal General Budget Law of the Republic of Iraq for the fiscal years 2023-2024-2025, Law (13 of 2023), according to the text of the amendment received from the Council of Ministers . "

According to the statement, Al-Sudani thanked the Speaker of the House of Representatives, the First Deputy Chairman of today's session, the Second Deputy Chairman, and the heads of the parliamentary blocs, for their understanding and support of the government's vision, which has continued to implement its program according to the priorities previously approved by the people's representatives, which meet the aspirations of the Iraqi people.

He added that "voting on the amendment according to the text approved by the Council of Ministers confirms the political stability and the state of understanding that characterizes this stage, and also reflects the high cooperation between the government and the House of Representatives to continue working together, in order to continue the momentum of the wheel of development, reconstruction and reform, which has started and will not stop, as the government continues to work to confront problems and challenges with a sense of responsibility and based on the supreme interests of Iraq."

According to the statement, Al-Sudani called on both "the Kurdistan Regional Government of Iraq, with its specialized institutions, and the Federal Ministry of Oil, to immediately begin and work on this amendment, in order to optimally invest in natural resources, especially oil wealth, and let this wealth be a factor in supporting stability, and a motive for further achievement of plans and programs that meet the needs of our honorable people . "

In turn, the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, welcomed the passage of the amendment to the budget law.

Barzani wrote in a tweet on the X website, "We welcome the vote of the Federal Council of Representatives today to amend the Federal General Budget Law, and we commend all those who contributed to the success of this amendment. We also thank the negotiating team in the regional government for its efforts in developing a mechanism to resolve the issue of salaries."

He expressed his hope that "this positive step in amending the budget law will be the beginning of solving all other problems, and the federal government's commitment to sending salaries and financial dues to the Kurdistan Region."

Earlier today, Sunday, the Iraqi Council of Representatives voted on the draft law amending the first law of the Federal General Budget Law of the Republic of Iraq for the fiscal years (2023 - 2024 - 2025) No. (13) of 2023.

Kurds count on budget amendment session: It will resolve problems between Baghdad and Erbil

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at the time of posting this the session had been postponed

Former MP for the Patriotic Union of Kurdistan, Hassan Ali, confirmed today, Sunday (February 2, 2025), that the Kurds are counting on today's parliament session to amend the budget.

In an interview with Baghdad Today, Ali said, "We hope that Parliament will vote in its session today to amend the budget law to resolve the problems and disputes between Baghdad and Erbil."

He added, "This law will contribute to solving the problem of oil exports, and also solve the issue of salaries and ongoing monthly disputes, and thus end a crisis that the Kurdish citizen has suffered from for a long time."

The cycle of conflicts continues to renew itself inside the parliament dome, where the latest disagreement between the representatives of the region and Baghdad was over Article Twelve of the Budget Law, which includes compensating the Kurdistan Regional Government for the costs of production and transportation for extracting oil, which the central government set at sixteen dollars.

According to observers, the most prominent solutions to resolve the differences between the central and regional governments and bring viewpoints closer together on the issue of the cost of oil extraction are to establish joint technical committees and intensify parliamentary meetings to enable Parliament to complete the vote on the budget.

Iraqi Parliament Approves First Amendment to General Budget Law for 2023-2025

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The Iraqi Parliament voted, on Sunday, on the draft law of the first amendment to the Federal General Budget Law of the Republic of Iraq for the fiscal years (2023 - 2024 - 2025) No. (13) of 2023.

For his part, independent MP Ahmed Majeed announced in a statement to Shafaq News Agency that members of the House of Representatives from the central and southern governorates boycotted the parliament session held today, considering that voting on the budget is "a violation of the law and the internal regulations of the council due to the lack of a legal quorum."

Majeed explained that "the number of representatives present does not exceed 140 representatives, which means that the quorum is not achieved," stressing that they doubt the legitimacy of the session.

He added: "We will file an appeal with the Federal Court against the House of Representatives for violating the law and proceeding with the vote on amending the budget law."

The Iraqi Council of Representatives held its fourth session of the first legislative term of the fourth legislative year a short while ago, headed by the First Deputy Speaker of the Council, Mohsen Al-Mandalawi, with the attendance of 176 representatives, and the boycott of about 50 representatives.

A parliamentary source told Shafaq News Agency, "The representatives of the Central and Southern Front boycotted the session in protest against the amendment of the budget law. The number of representatives of the Front is about 50 representatives, most of whom are independents."

The representative of the Central and Southern Front, Raed Al-Maliki, said during a press conference held in the parliament building with the participation of the representatives and attended by a Shafaq News Agency correspondent, "We are a group of representatives from the central and southern governorates who boycotted the parliament session on Sunday because of the paragraph amending the budget law."

Al-Maliki added, "We requested that there be a joint administration with the regional government, and that companies be obligated to review contracts, and that other articles be reviewed, including Article 14 of the budget law, in addition to other articles and the deficit in the budget law."

He stressed, "Our demands relate to implementing the rights of the central and southern governorates and financing the government contracting expenses of companies contracting with local governments."

Parliament Speaker Mahmoud Al-Mashhadani, who is currently visiting the Iranian capital Tehran, announced before his departure that Parliament will approve today, Sunday, amending the general budget in accordance with the text sent by the Council of Ministers.

Earlier today, the Coordination Framework, which brings together Shiite political forces, revealed the existence of a political agreement to pass the amendment to the budget law during the session of the Iraqi parliament scheduled to be held today.

The representative of the framework, Mohammed Radhi, told Shafaq News Agency, "There is a political agreement to pass the amendment to the budget law during today's session, as the text of the amendment was mentioned by the Iraqi government. There is a political and parliamentary will and desire to support the government's steps to resolve the differences with the region."

Radi added, "The agreement to pass the amendment to the budget law came in order to push the government to expedite sending the 2025 budget schedules, as no one wants to disrupt this budget, to prevent obstructing the construction and reconstruction process, and launching many strategic and important projects during this year."

The Finance Committee of the Iraqi Council of Representatives announced yesterday, Saturday, that the Council of Representatives will vote in today’s session, Sunday, on the government’s proposal to amend Article 12 of the General Budget Law.

The draft amendment to Article 12 of the Budget Law includes two paragraphs, the first of which relates to the costs of producing and transporting the Kurdistan Region’s oil after determining the actual estimated costs through the advisory body.”

As for the second paragraph, it stipulates that if the federal and regional governments do not agree on the costs of production and transportation, the Ministry of Oil shall choose a party to determine those costs, and as a result the cost of extracting oil from the oil fields in the region shall be calculated.

In June 2023, the Iraqi Parliament voted on the draft general budget law for the fiscal years (2023, 2024, 2025).

House of Representatives votes on draft budget law amendment

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The House of Representatives voted, today, Sunday (February 2, 2025), on the draft law amending the first budget law.

The media department stated in a statement received by "Baghdad Today" that "the Council of Representatives voted on the draft law of the first amendment to the Federal General Budget Law of the Republic of Iraq for the fiscal years (2023-2024-2025) No. (13) of 2023.

Parliamentary Finance Committee "explodes a surprise" regarding the cost of extracting oil from the Kurdistan Region

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The Finance Committee of the Iraqi Council of Representatives said on Sunday that the vote on amending the general budget law is related to the proposal sent by the federal government to the council. While it explained that the cost of extracting oil is $16 and is not fixed, but may reach $22, it confirmed that stopping the export of the region's oil led to the federal government losing more than $14 billion.

Committee member, Ikhlas al-Dulaimi, told Shafaq News Agency, "The House of Representatives voted today to amend the general budget law, and the vote was on the proposal sent by the government to the House."

Al-Dulaimi explained that “the cost of extracting oil in the Kurdistan Region, according to the amendment, is $16 per barrel, and the cost is not fixed, as there will be a consulting company that will determine the actual cost of extracting oil, and it may reach $22 per barrel, and according to this cost, the federal government will be obligated to pay it to the Kurdistan Region.”

She explained that, "according to the budget amendment, the region's oil will be delivered to SOMO, which will be responsible for selling the oil abroad," noting that "the halt in oil exports was not due to the region, but rather it was due to the federal Ministry of Oil filing a lawsuit against the Ministry of Oil in the region, which caused the halt in oil exports, and this led to the federal government losing more than 14 billion dollars."

Today, Sunday, the Iraqi Council of Representatives voted on the draft law amending the first law of the Federal General Budget Law of the Republic of Iraq for the fiscal years 2023 - 2024 - 2025 No. 13 of 2023.

For his part, independent MP Ahmed Majeed announced in a statement to Shafaq News Agency that members of the House of Representatives from the central and southern governorates boycotted the parliament session held today, considering that voting on the budget "violates the law and the internal regulations of the council due to the lack of a legal quorum."

Majeed explained that "the number of present representatives does not exceed 140 representatives, which means that the quorum is not achieved," stressing that they doubt the legitimacy of the session.

He added, "We will file an appeal with the Federal Court against the House of Representatives for violating the law and proceeding with the vote on amending the budget law."

Parliamentary source: Parliament's vote on amending the budget does not mean approving the 2025

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A parliamentary source revealed, on Sunday, that the 2025 budget schedules were not approved in today's session, while indicating that the vote on amending the budget law was limited to a paragraph related to the Kurdistan Region's oil .

The source said, in an interview with Shafaq News Agency, "The House of Representatives voted today to amend Article 12 of the Federal Budget Law," stressing at the same time that "this amendment has nothing to do with the budget law schedules for the year 2025."

The source added, "Expectations indicate that the federal government will send the budget tables to parliament at the end of February, especially after the vote on amending the budget law today," indicating that "the budget tables will be similar to last year, but the difference will only be in the numbers of operating and investment expenses."

The source pointed out that "the cost of extracting oil according to the new amendment in the budget will be 6 dollars for the central and southern provinces and 16 dollars in the Kurdistan Region."

Earlier today, Sunday, the Iraqi Council of Representatives voted on the draft law amending the first law of the Federal General Budget Law of the Republic of Iraq for the fiscal years (2023 - 2024 - 2025) No. (13) of 2023 .

The amendment to Article 12 of the Budget Law includes two paragraphs, the first of which relates to the costs of producing and transporting the Kurdistan Region’s oil after determining the actual estimated costs through the advisory body.”

As for the second paragraph, it stipulates that if the federal and regional governments do not agree on the costs of production and transportation, the Ministry of Oil shall choose a party to determine those costs, and as a result the cost of extracting oil from the oil fields in the region shall be calculated .

The President of the Republic, Abdul Latif Jamal Rashid, had previously warned against the continued increase in operating expenses in the general budget allocated to finance the monthly salaries of employees and workers in the public sector in the country, stressing the need to support the private sector to push the economy forward .

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Mosul money changers talk about “million-dollar losses” due to the city’s “share” of the dollar

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The head of the Money Changers Syndicate in Mosul, Abdullah Al-Jiro, confirmed today, Sunday, that the city is incurring huge financial losses estimated at 14 million dollars per week, as a result of being deprived of banking transactions and its share of the dollar compared to the southern governorates.

Al-Jiro explained in a statement to Shafak News Agency that Mosul "is still operating with a limited license for exchange companies, as only 47 companies out of 90 have been allowed to operate since 2021."

He pointed out that these companies "face restrictions that prevent them from making external transfers or participating in the Central Bank auction, which negatively affects the local economy and increases the suffering of citizens as a result of the rise in commodity prices and the decline in economic activity."

 

Omani dollar in Iraq.. Suspicious currency or losses due to long storage?

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Owners of exchange offices and traders are suffering from a state of anxiety and confusion due to the circulation of the 100 US dollar denomination, which is called the “old”, printed in 2003, and known in the local market as (Omani).

The dollar is considered the undisputed master of hard currencies in Iraq, but the situation is different with the 100 Omani dollar note, as traders refrain from trading it because it does not contain clear markings.

Iraqis call the $100 bill, issued in 2003 and below, “Omani,” in reference to the Jordanian capital, Amman, where it was widely circulated during the previous regime. 

Price difference

The owner of Al-Aws Exchange, Ahmed Sadiq, told Shafaq News Agency, "Some exchange offices refrain from buying old dollars from people," noting that "some accept them at a price lower than the market price by two or three thousand dinars."

He added that "some exchange offices stamp some dollar banknotes with a stamp specific to their office to avoid problems that occur," noting that "some people have returned dollar banknotes to the offices under the pretext of forgery, claiming that they bought them from them."

He believes that “putting a stamp on the banknote would protect the money changer from some weak-willed people who try to deceive the office owners by forging the banknotes that were purchased from them,” adding at the same time that “putting a stamp on foreign banknotes might cause a problem for their buyers in terms of difficulty in exchanging them abroad.”

Forging the old

The owner of Al-Fas exchange, Jawad Malik, told Shafaq News Agency, "The lack of dealing with the old dollar is a result of the counterfeiting that took place in Turkey and Jordan, and the rumor about its entry into Iraq," indicating that "many exchange owners no longer deal with it, and it has become a thing of the past, or they accept it with a price difference of up to 20 thousand dinars or more for those who can transfer this currency to the Central Bank." 

He points out that "most exchange offices used to stamp the $100 bill with a stamp bearing the name of the exchange office, even if the bill was new, to reassure the buyer that it was not counterfeit, and also so that anyone who had bought dollars from him would not return and claim that it was counterfeit."

He explains that “many exchange offices also do not deal with the one-dollar bill or what is called ‘aleek’, and sometimes even with the five-dollar bill, despite the fact that neighboring countries deal with them without any problem,” stressing that “this is up to the mood of major traders who deal in dollars.”

Unclear security signs

Iraqi merchant Haider Al-Hasani told Shafaq News Agency that he "does not deal with old dollars at all to avoid the problem of counterfeiting," indicating that "the old ones do not have clear security marks."

He added that he "does not even deal with the new dollar," indicating that "economic security prevents trading in it at the market price."

All currencies are accepted.

Financial expert and former director general of the Central Bank, Mahmoud Dagher, told Shafaq News Agency, "There is no old or new dollar in the concept of the Central Bank. All current foreign and national currencies are acceptable."

He added, "The mood of the people, merchants, and owners of exchange offices cannot force them, no matter what happens, to accept these types of old dollars," stressing that "this matter is a personal effort."

No instructions

The Central Bank of Iraq confirms that there are no instructions regarding rejecting the old dollar and not dealing with it.

A responsible source in the bank told Shafaq News Agency, "The bank did not issue any instructions regarding not dealing with the old dollar." 

He added, "All the statements and talk that are being raised about the bank's refusal to accept the old dollar are false."

In conclusion, the issue of the circulation of the “old” $100 bill in Iraq remains a source of concern for citizens and exchange office owners alike, as fears of counterfeiting overlap with market considerations. 

While the Central Bank of Iraq confirms the acceptance of all current currencies, dealing with this category remains subject to the mood of the market and the decisions of traders. 

Despite the absence of any official instructions prohibiting the circulation of old dollars, the security measures and caution of some exchange offices indicate the continuation of the state of confusion and doubts about this category, which may reflect an urgent need for an official clarification that enhances the stability of the local market and reassures dealers.

Al-Mashhadani leaves for Tehran on an official visit

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Parliament Speaker Mahmoud Al Mashhadani left Baghdad today, Sunday, at the head of a parliamentary delegation, heading to Tehran.

The media department of the House of Representatives said in a statement received by {Euphrates News} that "Speaker of the House of Representatives Mahmoud Al-Mashhadani left Baghdad at the head of a parliamentary delegation heading to Tehran on an official visit."

She added, "This came upon an official invitation he received from the Speaker of the Iranian Shura Council, Mohammad Baqer Qalibaf."

Confirming Shafaq News news.. Starting to distribute pensioners’ salaries in Iraq

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The Retirement Authority announced, on Sunday, the start of disbursing retirees’ salaries for the current month of February.

Rashid Bank also announced raising the salaries of civilian and military retirees, calling on all beneficiaries to visit the bank’s branches and electronic payment offices to receive their dues.

An authorized source told Shafaq News Agency yesterday, Saturday, that the salaries of retired civilians and military personnel for the month of February will be distributed today, Sunday, indicating that "the failure to distribute salaries yesterday is due to the coincidence of official holidays on Friday and Saturday."

Prime Minister stresses Iraq's aspiration for more integration in economic and trade relations with the Sultanate of Oman

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Prime Minister Mohammed Shia Al-Sudani stressed Iraq's aspiration for more integration in economic and trade relations with the Sultanate of Oman.

A statement by his media office said: "Al-Sudani received, today, Sunday, the Omani Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al-Yousef, and his accompanying delegation."

During the meeting, according to the statement, relations between the two countries and ways to consolidate cooperation in various sectors, especially the economic and trade field, were discussed in a way that enhances the level of partnership and exchange, and confronts economic challenges in the region. "Al-

Sudani welcomed the guest minister, stressing Iraq's aspiration for more integration in economic and trade relations with the Sultanate of Oman, pointing to the resources of development in the Iraqi investment environment, especially after the comprehensive reforms it has witnessed."

For his part, Al-Yousfi conveyed the greetings of Sultan of Oman Haitham bin Tariq to Al-Sudani, reiterating his country's desire to increase cooperation in various fields.