Bondlady’s Corner

Iraqi News Highlights Sunday Afternoon 1-15-23

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Economist: The Stability Of The Dollar Exchange Rate Is Linked To The Political Side More Than The Economic One

2023-01-15 By Sotaliraq  The economic expert, Salam Sumaisem, confirmed, on Saturday, that the stability of the exchange rate of the US dollar against the Iraqi dinar and the cessation of fluctuations between rise and fall is linked to the political circumstance more than it is linked to the economic circumstance.

Sumaisem explained: “The political circumstance is linked to the extent of the Iraqi government’s statement of goodwill towards protecting the US dollar from smuggling, money laundering and all illegal operations.” This led to a scarcity of the dollar in the Iraqi market and an increase in demand for it, and thus a decrease in the value of the Iraqi dinar.   LINK

Regarding The Rise In The Exchange Rate Of The Dollar, Raed Fahmy: The Government’s Measures Are Not Sufficient

Posted On2023-01-15 By Sotaliraq   Secretary of the Central Committee of the Iraqi Communist Party, Comrade Raed Fahmy, said, “The high exchange rate of the dollar against the dinar, and its reaching record levels, was directly reflected in the general conditions of the people, especially the vulnerable groups, given that the country imports most of its needs from abroad.

A rise in the exchange rate means a rise in prices, especially with the presence of a section of traders and dealers in the market, who raise prices at rates that exceed the rise in the exchange rate, which causes multiplying effects.

Fahmy said in an interview with “Tariq al-Shaab” that “this reality has an impact on the economic and commercial movement, as the seller cannot price his goods as it should, given that the purchase of the goods is variable in connection with the exchange rate, nor can the buyer make a purchase expecting that the price may change during Coming days.

Thus, there is paralysis in economic life.” And he indicated that “the problem is huge and its economic and financial effects are profound, and there will be social effects that may generate great feelings of anger, rejection and protest.”

Powerless Tools

Fahmy pointed out that “the tools available to the Central Bank are unable to stop the rise in the exchange rate and pressure on the demand for the dollar, and I have made some directions and proposals that have not yet been implemented, including dealing with countries from which imports are made in their currency in order to reduce pressure on the dollar.”

But this seems not to have been done yet. The other aspect is related to the organization of banks and the number of outlets for selling currency and delivering it to citizens. There has actually been an increase in the number of outlets, but it is not sufficient.

And he added, “There is another measure that can be taken, which is to increase the number of banks that are entitled to enter the currency auction. This was previously a monopoly for a category of banks within a specific classification, and it is possible to expand it by adding other outlets to provide currency.

Fahmy stressed that “these tools are not yet able to stop the pressure, and that there are other measures on the table, part of which is related to regulating foreign trade.

There are importers who resort to transfers in order to pay their obligations or to import, and the central bank wants them to switch to credits. But this process for small merchants is costly, and I do not think it will be completed in a short period.

Addressing People’s Conditions

Comrade Raed Fahmy stressed that “the urgent matter is related to people’s conditions and living conditions and the duty to alleviate them, and the current situation requires a greater role for the state in the trade balance. As long as the state owns the dollar, it is able to import, especially for basic materials that fall within the consumption of vulnerable families, and on the other hand, it strengthens the ration card, its vocabulary, and its availability.

He added that the state can “import materials and supply merchants with them away from market speculation, and we believe that it can supply some materials to cooperative markets and put them within the reach of consumers, thus masking the effects.”

The bad thing about this large center of citizens, and we believe that the state should regulate the commercial sector open to these speculations and others, and therefore the intervention of the state may help in revitalizing other sectors and providing funds for them.

External Factor

And Fahmy indicated that “one of the sources of the increase in demand for the dollar is what its sources are external, and it is said that the neighboring countries use the Iraqi market in order to supply the dollar to provide their needs, or that part of Iraq’s obligations are paid in dinars, and this dinar that goes to it returns and enters our local market, and in exchange for dollars.” It goes abroad, meaning that control over the border crossings must be tightened, in addition to reducing the demand of neighboring countries.”

Fahmy commented on the measures taken by the government, saying that it “promised to secure and improve the ration card, and took certain measures, such as providing hard currency for travelers. However, these measures are not sufficient to reduce the burden on citizens, given that the spread of the ration card is limited, and the demand for the dollar will continue to rise as long as the factors we mentioned are in place, and with it the continuation of the US government’s measures to control and scrutinize remittances.    LINK

Ministry Of Finance: The Draft Budget Law Is Still In Preparation

The Ministry of Finance confirmed that the draft budget law is still in the process of being prepared, denying the information received regarding revenues and expenditures on social media platforms.

A statement by the ministry said: “The Ministry of Finance has monitored many false and incorrect information circulating on social media platforms regarding the volume of expenditures and expected revenues within the draft general budget law for the year 2023.”

The ministry confirmed, according to the statement, that “this information is nothing more than a set of proposals received by ministries and unrelated entities, and is not the final form of the content of the budget law.”

The statement added, “The draft budget law is still in the process of preparation, and discussions regarding it are continuing with the various official authorities concerned to ripen the budget law after it includes the government curriculum approved by the House of Representatives, and work is underway to prepare the final draft of the project and then submit it to the House of Representatives.” Ministers to consider them and take recommendations as required by the current economic conditions of the country.

And the statement continued, “Work is underway to prepare the final draft budget in preparation for submission to the Council of Ministers.”

According to the statement, the ministry called on public opinion, specialists and all media professionals to receive information and news from its well-known official sources, through the ministry’s website and its approved official pages.

Al-Rasheed Announces The Controls For Selling Dollars To Citizens At 1465 Dinars Per Dollar

Economie| 01:11 – 01/15/2023  Baghdad – Mawazine News  Al-Rashid Bank announced, on Sunday, the controls for selling dollars to citizens who wish, at a price of 1465 dinars per dollar.

The bank’s media stated, in a statement received by Mawazine News, that “three branches in Baghdad have been directed to receive citizens, which are: (The main branch / Yarmouk / Raghba Khatoun).”

He explained, “Those who wish to purchase from a Nakheel card holder deposit the amount directly in his card, while those who do not have a card are issued to them according to official documents.”

He continued, “The amount is $10,000 as a limit for travelers outside Iraq only, and the total purchase amount is only 14,650,000 dinars.”

The Central Bank: There Is Nothing Left In The Banking Sector Except For Banks That Are Able To Perform Their Functions

Money and business   Economy News – Baghdad On Sunday, the Central Bank of Iraq clarified its procedures for monitoring the performance of private banks and improving their work, while noting that only banks that are able to perform their functions remain in the banking sector.

The bank’s advisor, Ihsan al-Yasiri, said, “The Central Bank of Iraq began three years ago with procedures to complete reform procedures in the banking sector,” pointing out that “the private banking sector is one of the promising sectors in Iraq, as the central bank attaches great importance to it, similar to the government banking sector.” .

Al-Yasiri added, “The central bank does not distinguish between the private and public sectors, but the private banking sector is one of the engines of development in Iraq, in addition to the government sector,” noting that “the private banking sector has a role in spreading the funds of the Central Bank of Iraq’s initiative in lending to different sectors.” (residential, agricultural, industrial, and commercial), as his effort was evident in this field.”

He pointed out that “some banks suffer from a group of problems, and the Central Bank, in turn, is currently taking several measures for the purpose of enabling them to stabilize and reassure the public of their performance,” stressing that “there are other banks that are doing well and playing excellent roles.”

He pointed out that “the Central Bank, due to its confidence in some private banks, has initiated measures to encourage foreign banks and foreign central banks for the purpose of opening financial corridors for them, to enable them to practice money transfers for foreign trade purposes.”

He stressed that “the central bank usually supports every bank that tries to improve performance and services provided to the public, as a result, the private banking sector is an important part of the Iraqi banking sector, and the central bank attaches great importance to it and encourages it to improve performance.”

And that “public confidence in the private banking sector and the banking sector in general is increasing gradually with the strength of the Central Bank’s procedures and oversight,” according to the official news agency.

He continued, “The private banking sector and initiative funds are currently financing the development of projects, the establishment of new projects, and the employment of the unemployed,” stressing that “some banks are trying to reach satisfactory levels.”

He noted that “the Central Bank is currently monitoring the performance of some banks and supervising their performance, and there is nothing left in the banking sector except for good banks that are able to perform their functions.”  Views 189   Added 01/15/2023 – 3:51 PM    Updated 01/15/2023 – 6:12 PM


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