Iraqi News

Sunday Morning Iraq Economic News Highlights 2-12-23

Economist: Reducing The Dollar Will Not Create A Large Deficit With An Explosive Budget

Today 09:25  Baghdad…   The economist, Dr. Mustafa Ikram Hantoush, confirmed that the decision to reduce the value of the dollar will not create a large deficit compared to an explosive budget that is being prepared, pointing out that there are huge revenues and a large financial surplus from last year that will be used .

Hantoush told Al-Maalouma, “The 2023 budget represents the biggest challenge to implementing the decision to reduce the dollar exchange rate, as the reduction will create a deficit gap of 10 trillion dinars.”

He added, “The amount of the deficit is not large on an explosive budget, and a financial surplus from the year 2022 is not less than 30 trillion dinars in the state treasury, in addition to the central bank’s reserves amounting to more than 105 billion.” dollars, and it is possible to resort to it in the event that the state needs to cover the deficit in the event that occurs.”

And he indicated that “there are large revenues that Iraq will receive during the current year, in addition to the existing surplus from last year, which will be relied upon to secure the 2023 budget.” LINK

An Economist Determines The Duration Of The End Of The Dollar Exchange Rate Gap Between The Official And The Parallel

February 11 19:58  Economic expert Abd al-Rahman al-Mashhadani specified, on Saturday, the period for ending the official exchange rate gap with the parallel local market, while stressing that government measures are moving towards reforming the Iraqi economy in all its details.

Al-Mashhadani said in an interview with Al-Maalouma agency that “the period of the gap between the official dollar exchange rate and the local parallel market will not exceed two weeks from now,” noting that “the difference in foreign remittances for merchants is still large compared to the official price.”

He attributed the reasons for the gap to that “the notary’s failure to ratify the contracts of small merchants granted by the Chamber of Commerce in order to obtain a license that allows him to facilitate the purchase of the dollar,” noting that “the central bank decided today to work by granting commercial licenses in order to obtain a license to buy dollars from the central bank directly, and this is what It will reduce the size of the gap between the official and the parallel.”

He continued, “The government’s measures are moving towards reforming the Iraqi economy in all its details,” stressing that “many decisions were taken during the meeting of Prime Minister Muhammad Shia’ al-Sudanese with members of the Chamber of Commerce, the deputy governor of the Central Bank, the director of the TBI Bank, and a number of economists.”

And he added, “Al-Sudanese is following all the details of getting out of the dollar crisis and ways to develop the Iraqi economy in all its fields.”

The local markets, due to the measures taken by the US Federal Bank on Iraq, are witnessing a discrepancy in the exchange rates of the dollar between high and low, despite the decision of the Council of Ministers to reduce the official dollar exchange rate to 130,000 for every 100 US dollars. LINK

The Birth Of The Parallel Market For Selling The Dollar And Demands That Violators Be Held Accountable

Today 09:59  Information / Diyala..  A specialist in the currency market in Diyala revealed, on Sunday, the birth of what he called the parallel market for selling the dollar by refraining from using the dollar and saving it secretly.

Fouad Abdel-Qader said in an interview with Al-Maalouma, that “the strike in the currency selling market is still the master of the situation, and there is a wide difference between the prices set by the Central Bank and the data of the local market, with a difference of approximately 20 thousand for every 100 dollars.”

He added, “The concern of the exchange offices about the legal procedures prompted them to raise banners stating that they do not deal in dollars in order to avoid any prosecutions, but in the subconscious they provide dollars to customers on a limited scale, especially those who are forced at prices that reach 150 thousand per 100% within what is known as the parallel market.”

He pointed out, “Everyone is waiting for new measures by the Central Bank regarding correcting the course of the currency market and pushing it to adopt the officially established prices in order to restore balance to the markets after a period of turmoil that lasted for weeks. ”

The markets in Diyala and the rest of the governorates are witnessing a rise in the prices of basic materials, under the pretext of the continued high exchange rate of the dollar.   LINK

Leaks Reveal The Results Of The Iraqi Delegation’s Visit To Washington Regarding The Dollar Crisis

2023.02.12 – Baghdad – people    An informed source revealed the results of the Iraqi delegation’s visit to Washington and the dollar crisis talks.

“Nass” channel on Telegram.. our latest updates  The source (from within the delegation) said in a statement to “Ruado” followed by “NAS” (February 12, 2023), that “the Americans will agree in principle to grant Iraq a temporary deadline regarding Iraq’s measures to combat corruption and money laundering, intensify the process, and control border crossings and airports in front of the exit of the country.” Dollar and the new system for requesting money through claiming bills and the SWIFT system.

According to the source, “the Americans want to see what the changes will be on the ground and whether Iraq is able to implement the procedures they set, so easing the conditions will be relative and not lifting them completely.”

He added, “Discussions are still ongoing and other details still need to be discussed regarding operational and technical issues, and the meetings will continue.”

The delegation of the Central Bank of Iraq met, earlier, for many hours with both the delegation of the US Federal Reserve Bank and the US Treasury Department in Washington, DC.

According to a statement by the Central Bank, a copy of which “NAS” received (February 11, 2023), “the two parties expressed their willingness to work jointly to meet the challenges of working on the electronic platform for remittances and cash.”

The delegation of the US Federal Reserve Bank and the US Treasury discussed “a number of support and attribution mechanisms for the Central Bank of Iraq, in a way that enhances its capabilities to deal flexibly with crises during this stage.”

The US Federal Reserve affirmed that “the Central Bank of Iraq’s measures are in the right direction to build a sober banking sector.”

The Assistant Deputy Secretary of the US Treasury explained, “Ways to fully support the efforts of the government of Iraqi Prime Minister Muhammad Shia’a al-Sudani in economic reform, and the readiness of the US Treasury Department to provide the required support.”

The meeting listened to “a presentation by the Governor of the Central Bank of Iraq regarding the bank’s directions in achieving its most important goals to ensure general stability in prices, and options and proposals in the field of accelerating, expanding and streamlining the work of the electronic platform for external transfer.”

And the Governor of the Central Bank of Iraq, Ali Mohsen Ismail, confirmed, “The bank’s intention to launch the second package of facilities that would enhance the stability of the exchange rate.”

Saleh: The Price Of The Dollar In The Parallel Market Is Artificial To Achieve Fake Profits

Time: 02/12/2023 13:28:04   Read: 572 times  Saleh:  {Economic: Al Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Salih, described the price of the dollar in the parallel market as “artificial to achieve fake profits.”

Salih told {Euphrates News} agency: “The effects of the mysterious parallel markets come on the country’s markets mostly and their poor knowledge of the positive signs of the strength of the national economy and the strength of its reserves, which exceeded 115 billion dollars. The market is still with distorted and false information that is based on rumor to generate artificial price deviations to achieve fake profits on Calculating the effect on price stability itself.

He stressed “the importance of realizing two important things, the first is the foreign trade arm of the government that operates in accordance with international rules of trade and carries flexibility and a very high possibility in providing commodity supply at stable prices at any moment, and the second is the role of effective packages launched by the Central Bank of Iraq on which the policy is working.” Cash in accelerating the openness of the levels of meeting the demand for foreign currency, with the degree of progress of the banking system in the transparent use of foreign trade financing documents for the private sector, in order to increase the conversion in foreign currency in accordance with the rules and provisions of international trade and international compliance controls.

The Council of Ministers approved in its meeting last Tuesday the decision of the Board of Directors of the Central Bank of Iraq to amend the exchange rate of the dollar against the dinar, equivalent to 1300 dinars to one dollar.

About four days after the government’s decision to reduce the exchange rate of the dollar against the dinar, and two days after the Iraqi delegation’s discussions in Washington, the dollar’s prices did not stabilize in the parallel local markets.

The rate adopted by the Central Bank of Iraq for the dollar against the dinar, which is 1,300 dinars for one dollar, led to a temporary decrease in the price of the dollar, but it returned to rise to record more than 1,500 dinars, which means that the difference in the parallel market remains from the official price.

The reason, according to observers, is related to the lack of clarity in the final results of the discussions being held in Washington by the Iraqi delegation, headed by Deputy Prime Minister and Minister of Foreign Affairs Fouad Hussein, and the Governor of the Central Bank, Ali Al-Alaq, with officials in the US administration.     Raghad Daham   LINK

Will Congress Impose Sanctions On Iraq? An Analysis Of America’s Member Messages Answers

[ltr]2023.02.12 – Baghdad – people  An analysis explained the consequences of the letter sent by members of Congress to the administration of US President Joe Biden, which carried inquiries about Iraqi political figures.

“Nass” channel on Telegram.. our latest updates

In his analysis, which was reviewed by “NAS”, (February 12, 2023), investigative journalist Riyad Muhammad, an observer of Iraqi affairs and residing in the United States, said, “Every day, members of the US House of Representatives (who are 435 members) and members of the Senate (who are 100 members) send Dozens or hundreds of letters to the White House.”

He added, “These messages are related to various and varied issues, most of which are internal and some are external, and they generally aim to put pressure on the president to make a decision or end a policy.”

He continued, “Most of these messages are summarized by the president’s aides (the president of the United States has an army of aides that may reach hundreds) and send them to specific offices in the White House such as the budget office or the National Security Council … etc., or to the office of the White House chief of staff or His deputy,” noting that “the majority of these messages do not reach the president himself, because he does not have time to read every letter written to him, and resorts to reading the most important, then the important, and neglects what is not important.”

He pointed out that “when 3 members of the House of Representatives ask the President of the United States to take a policy, this does not mean that the president is bound by what they ask, nor is he obligated even to read their letter.”

And he stated, “Changing the American policy towards Iraq is possible, but it is moving slowly and is subject to a basic rule, which is the lack of interest of the United States in Iraqi affairs in general,” explaining, “The United States will enter the presidential election campaign after months, and this will be the first priority.”

He pointed out that “in foreign policy, Iraq is not a priority. Ukraine, Russia, and the relationship with China are much more important,” adding: “Fundamentally, foreign policy usually declines in importance in light of democratic administrations that are concerned with issues of the economy, combating inflation, preventing recession, reducing crimes, the issue of weapons, immigration, and abortion.” Homosexuals…etc.

And he continued, “And to complete the picture, the news of the message of the 3 members of the House of Representatives to the president about Iraq was not reported in any American media because it is not considered news at all, and certainly it is not urgent or important news.”

And he said: “In conclusion, a group of senators from both parties is preparing to issue legislation that ends the authorization given to the president with regard to the 1991 Gulf War and the 2003 war, and thus officially ends America’s wars with Iraq, and Biden supported the project because it is compatible with his ideas and policies related to Iraq, and their summary is ending American involvement.” in this country.”

And he concluded, “All indications indicate that the US reserve will continue its decision taken two years ago and implemented months ago regarding the transfer of dollars to Iraq.”

Earlier, members of the US Congress’ Foreign Relations and Armed Forces Committee sent a letter to US President Joe Biden’s administration to inquire about several Iraqi figures and officials.

The letter, published by the Iraqi blogger residing in the United States of America Stephen Nabil, seen by “NAS” (February 11, 2023), indicated that “Have the Ministries of Foreign Affairs or the Treasury reached out to know whether Faiq Zaidan (the head of the Iraqi Supreme Judicial Council) meets the conditions of the sanctions? America on severe human rights abuses…as well as corruption and subsidies.”

On the authority of Nabil, the letter carried another question, which read: “What is the status of the sanctions package against Nouri al-Maliki because of terrorism or corruption?…and the governor of the central bank?”

According to the letter, “the deputies who submitted it gave the Biden administration 14 days to officially respond to the demands.”

Will Congress impose sanctions on Iraq? An analysis of America’s member messages answers Me_ga   PIC