Iraqi News

Tuesday Morning Iraq Economy News Highlights 1-24-23

The Dollar Exchange Rate Was Decided In The Budget.. 147 Thousand Dinars For Every 100 Dollars

Economy |Today, 10:31 |  Baghdad today – Baghdad Today, Tuesday, the leader of the Al-Fateh Alliance, Fadel Al-Fatlawi, revealed that the exchange rate of the dollar has been decided in the budget, stressing that the agreement reached 147,000 dinars for every 100 dollars.

Al-Fatlawi told (Baghdad Today) that “the 2023 budget will include the price of the dollar, which will be between 145 to 147, while the price of a barrel of oil will be about $70 per barrel, and these matters have been decided .”

He added, “The issue of the dollar’s decline will be seen gradually after the recent measures taken by the Prime Minister.”

This, and exempted Prime Minister Muhammad Shia’a al-Sudani, the governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, from his post, while assigning Ali Mohsen Al-Alaq to manage the bank by proxy.

Banking sources revealed a clear decline in the exchange rate of the dollar following the decision to exempt the governor of the Central Bank.  LINK

Al-Abadi’s Coalition Talks About A “Dirty” Game That Caused The Dollar Crisis

2023/01/24 09:34  Baghdad-Iraq Today:  The leader of the Victory Coalition, Saad Al-Lami, stated that there is a goal to bring the dollar to 200,000 dinars for every $100, as part of a “dirty political game” in which some parties participated.

l-Lami also explained in a media interview that “Iraq has become like shifting sands, in which an unplanned political process blows daily, and we witness silence towards those who traded in the Iraqis’ livelihood and manipulated their situation and health.”

He added, “The coming days will witness a visit by Al-Sudanese to Washington, and it will reveal a lot, including the issue of dollar stability, and then he will go to France,” wondering: “Will Paris be an emergency player who entered temporarily,

Regarding the oil and gas law and the disputes between Baghdad and the region, he stressed that it “needs a local, regional and international will, but going to discuss this law will restore controversy regarding the geography of the disputed areas and the extent of the region’s vision towards Kirkuk and the position of the governor in it, as well as other regions, and this in itself is considered an isolated file.

Al-Lami stated that “the political agreement that was previously held between the parties (Shia – Kurdish – Sunni) was aimed at extinguishing the big spark so that it would not ignite, but the agreement that was concluded within the poles of the state administration The coalition gave rights to people belonging to the previous regime, and the agreement was quick and an emergency solution to a political crisis that was It may ravage the country and its fire may ignite at any moment unless the dialogue in the negotiating paragraphs takes place quietly. ”  LINK

For The Second Day In A Row… A Complete Halt To Money Exchange And A Noticeable Decline In The Dollar In Baghdad

Baghdad today – Baghdad Today, Tuesday, the Al-Kifah and Al-Harithiya stock exchanges in the capital, Baghdad, witnessed an almost complete stoppage for the second day in a row, while the dollar exchange rates recorded a decrease in the local markets.

The (Baghdad Today) correspondent said, “Most of the owners of exchange offices in the local markets in the capital, Baghdad, stopped buying and selling the dollar because of its instability and the suspension of the stock market for the second day in a row .”

He added, “The buying and selling prices recorded a decrease in some exchange shops in the local markets, as the selling price reached 158,000 dinars, while the purchase price reached 157,000 dinars for every 100 dollars.”    LINK

Romanowski: We do not set the price of the dollar in Iraq, and we have not imposed sanctions on new banks

023-01-24 Shafaq News/ The US Ambassador to Iraq, Alina Romanowski, confirmed that the United States does not set the exchange rate of the dollar and has not imposed sanctions on new Iraqi banks.

Romanowski said, in a televised interview with “Al-Taghyeer Channel”, that the United States does not set or determine the exchange rate between the dollar and the dinar, and that it has not imposed new sanctions on banks in Iraq, but rather “continues a mechanism that took several years to strengthen the Iraqi banking sector to help it comply with the banking system.” And to ensure that the banking system is not used to launder the money of the Iraqi people and smuggle it out of Iraq.

Romanowski indicated that “these procedures began two years ago with gradual implementation by Iraqi banks, according to an agreement between the US Federal Bank and the Central Bank of Iraq,” adding that they are “designed to prevent and restrict money laundering, and suspending or postponing them leads to a rollback in the system.”

And the ambassador stressed that “what can be done is to continue the dialogue with the Central Bank and monitor the effects that occur on the ordinary citizen who uses informal secondary financial institutions, to consider the possibility of addressing these effects.”

And she stressed that her country “is trying with the Iraqi side to prevent money laundering belonging to the Iraqi people and prevent its smuggling,” explaining, “We focused on the file of corruption in Iraq, and what happened was a coincidence with the assumption of power by the Sudanese.”

And the Iraqi currency lost about 10 percent of its value, says the Wall Street Journal in a report it published a few days ago, after procedures related to imposing compliance rules on the Central Bank of Iraq’s dealings with currency dealers with regard to the US dollar.

Under the new procedures, Iraqi banks are required to submit dollar transfers on a new online platform with the Central Bank of Iraq, which are then reviewed by the Federal Reserve Bank.

US officials said the system aims to limit the use of the Iraqi banking system to smuggle dollars to Tehran, Damascus and money laundering havens across the Middle East.

Yesterday, Monday, Prime Minister Muhammad Shia’ al-Sudani decided to relieve the governor of the Central Bank of Iraq, Mustafa Ghaleb Makhaif, from his post, while assigning Ali Mohsen Al-Alaq to manage the bank by proxy.

Al-Sudani had taken, the day before yesterday, Sunday, urgent decisions to “address” the exchange rate of the US dollar against the local currency during his meeting with the Federation of Iraqi Chambers of Commerce to discuss treatments for the fluctuation of the exchange rate of the foreign currency.

These decisions come at a time when the exchange rate of the US dollar against the Iraqi dinar has witnessed a gradual rise since November 2022, reaching its highest levels in recent days, as it crossed the barrier of 165 thousand dinars per 100 dollars.  LINK

Al-Mandalawi Stresses The Speedy End To The Crisis Of The High Exchange Rate Of The Dollar

Posted On2023-01-24 By Sotaliraq   First Deputy Speaker of the House of Representatives, Mohsen Al-Mandalawi, stressed the importance of quickly ending the crisis of the high price of the dollar.

A statement by Al-Mandalawi’s office stated that “First Deputy Speaker of Parliament Mohsen Al-Mandalawi confirmed, during his participation tonight in the meeting (the coalition of state administration forces), which was held tonight in the presence of Prime Minister Muhammad Shia Al-Sudani, Speaker of Parliament Muhammad Al-Halbousi, and the leader of the State of Law coalition Nuri Al-Maliki and the Minister of Foreign Affairs Fouad Hussein, and a number of leaders of the political blocs and alliances affiliated with the coalition, stressed the importance of quickly ending the crisis of the dollar’s rise in price, and restoring things to the right place in the local markets, stressing the need to “expeditely spare citizens the repercussions of the sudden increase in the exchange rate.”

The meeting stressed, according to the statement, the importance of obligating the Central Bank to implement the necessary financial policies to improve economic performance, as well as to constantly audit and supervise the work of private banks, especially adherence to the new instructions for foreign transfers to avoid the repercussions of what happened in the past.

The meeting touched on the importance of quickly sending the budget by the government to Parliament, which completed the formation of its parliamentary committees in the previous days and is ready to discuss and vote on the draft budget law 2023 for the purpose of ensuring the interest of citizens and moving the wheel of the Iraqi economy.  LINK

Deputy: 3 Difficult American Conditions For Iraq Will Delay The Reduction Of The Dollar

Proposals from Deputy: 3 difficult American conditions for Iraq will delay the reduction of the dollar

Policy |Yesterday, 22:42 |  Baghdad today-Baghdad  A member of the Parliamentary Defense Committee, Waad Qaddo, spoke today, Monday, about 3 American conditions for sitting at the dialogue table with the Iraqi government regarding the dollar.

Qaddo told (Baghdad Today), “The Americans are calling for the development of a new agreement that defines the tasks of the soldiers of the international coalition and enhances their legality in being on our lands as one of the most important conditions through which it is possible to start a dialogue with the Commander-in-Chief of the Armed Forces, Muhammad Shia’a al-Sudani, about the dollar.

Qaddo added, “The Americans also stipulate dialogue on the Iranian file and the file of the resistance factions before sitting at the dialogue table,” considering that “Iraq is not a nominal occupation, but our economy is restricted and it is difficult for the Iraqi negotiator to return the dollar to its normal price and stop its rise quickly.

And he added: “Important steps taken by the Sudanese Prime Minister, Muhammad Shia’a, and other decisions he will take to punish some banks to stop any further rise in the dollar.”  LINK

An Economist Explains The Reasons For The Decline In Dollar Exchange Rates

Economie  2023-01-24 | 04:32  Source:  Alsumaria News  510 views   Alsumaria News – Economy Economic expert Nabil Al-Marsoumi explained today, Tuesday, the reasons for the decline in the price of the dollar against the Iraqi dinar.

Al – Marsoumi said in a post entitled “Why did the price of the dollar fall against the dinar?

Total sales = 77.274 million dollars.”

The economist added, “There is no change in the basics. Cash sales are still the largest, and remittances and credits are the lowest. This means that the decline in the dollar exchange rate is not linked to the application of compliance rules for the electronic platform introduced by the US Federal Bank, but rather With good market sentiment and psychological motives resulting from the recent government measures and the replacement of the governor of the Central Bank of Iraq.  LINK