Iraqi News

Thursday Morning Iraq Economic News Highlights 2-9-23

About The Exchange Of The Dollar.. The Central Bank Of Iraq Warns The Citizens

Baghdad-Iraq today:  The Central Bank of Iraq warned merchants against dealing with speculators to obtain dollars, calling on them to resort to the official platform for financing foreign trade. The Central Bank’s advisor, Ihsan Shamran, said in a press statement, “The central bank’s supportive and government-supported decision entered into force.”

Today, to sell the dollar at a price of 1320 to the public, as the Central Bank buys from the Ministry of Finance and from any party that sells the dollar at 1300 dinars and sells the dollar to the banks at 1310, so that the bank sells it to the public at 1320,” adding, “We have great hope that the banks will comply with this price.”

And the availability of the dollar to the public, because the central bank provides the dollar, whether in cash for the requirements of the traveler, or to meet the requirements of trade and financial transfers, whether by remittances or documentary credits, and all this through the platform.

Shamran continued, “This procedure supports other procedures in limiting transactions and merchants not resorting to speculators to meet their need to obtain dollars. The platform will serve several purposes, and the low exchange rate came to strengthen the Iraqi dinar to support the government effort and the central bank’s effort in economic reform.

The platform is a gateway.” Economic reform, the gateway to financial reform, and the gateway to reforming the banking sector,” stating,

“We hope that the public’s income levels will improve to meet their requirements, and we hope that this step will reduce commodity prices.” He explained , “It

Shamran pointed out, “The Central Bank has expanded the offer of the dollar by increasing the share of the traveler for various purposes to seven thousand dollars for the traveler instead of five thousand dollars, and this is in fact an expansion of the offer in order to respond to the requirements of travelers for the purposes of study and treatment, in addition to expanding the sales outlets to the public, as it was in the beginning, a branch of the same bank and monitored by the Central Bank’s control staff,

now after the last meeting of the governor, the bank has the ability to distribute dollars through all its branches, whether in Baghdad or the provinces, and this also expanded the supply of dollars, and in airports as well, we opened outlets for bank branches located in airports.

And he stated, “Obtaining the dollar has become easy, and the initiative now is for merchants who hope to limit their obtaining of dollars from the platform and avoid dealing with speculators because this method is dangerous for the economy and exposes them to accountability as speculators.” are exposed as well,” pointing out that “many merchants have begun to convert to the platform and take their orders.   LINK

Iraq.. The Dollar Rises By 5 Thousand Dinars From Exchange Rates In The Morning

2023/02/09 Baghdad-Iraq today:  The exchange rate of the dollar against the Iraqi dinar rose this evening.  The exchange rate of the dollar in the local markets in Baghdad reached 150,000 dinars.

The selling prices of the dollar were recorded this morning. 146,000 dinars per 100 dollars, while the purchase price of the dollar was recorded at 145,000 dinars per 100 dollars.   LINK

Parliament’s Finances Regarding Reducing The Exchange Rate: It Will Make A Big Difference In The Budget

2023.02.09 – 09:25     Baghdad – people    The Parliamentary Finance Committee called, on Thursday, to take into account the issue of changing the exchange rate of the dollar in the budget, while indicating that it would make a big difference because Iraq sells oil in dollars.

“Nass” channel on Telegram.. our latest updates

Committee member Mustafa Al-Karawi said in a statement to the official newspaper, followed by “Nass” (February 9, 2023), that “it is necessary for the government to take into account this point regarding the difference in exchange rates,” pointing to “the need to take into account the issue of activating other sectors and non-oil imports.”

And between, “Iraq sells oil in dollars, and the expenditures are in Iraqi dinars, which will make a big difference in the budget, so this must be taken into account.”

And he added, “The budget was supposed to be sent within the next 10 days, but after the decision to change the exchange rate, you will need more time and a review of all investment or operational budgets, so there must be an assessment of the costs in the budget before it is sent, which indicates a delay.” its approval.”

Read also: After decreasing the exchange rate.. Al-Darraji warns of a “deficit” in paying salaries

On Monday, Professor of Economics at the University of Basra, Nabil Al-Marsoumi, spoke about the consequences of what he described as the “political reduction” of the dollar’s exchange rate, on approving the budget.

Al-Marsoumi said in a post, followed by “NAS”, (February 6, 2023), that “the expected political reduction of the official exchange rate of the dollar against the dinar to 1,350 dinars per dollar will complicate approving the budget, confuse its vocabulary, and deepen the budget deficit, as it will keep the exchange rate of the dollar in the market.” The parallel is close to its current price, because it is a matter of supply and demand, and as we advance, the gap increases and demand increases.

He added, “Therefore, the reduction will be useless to the market and the citizen, and exchange companies, brokers and speculators will benefit, and even if the dinar exchange rate rose temporarily, it will decline again.”

The Dollar Continues To Fly Above The Threshold Of 1470 Dinars On The Iraqi Stock Exchange

2023.02.09 – Baghdad – Nas     “NAS” publishes the exchange rates of the dollar on the Iraqi Stock Exchange, Thursday (February 9, 2023), according to monitoring by specialists.    “Nass” channel on Telegram.. our latest updates    Baghdad Stock Exchange 148,000  Basra Stock Exchange 147,700    Erbil Stock Exchange 150,750

A $20 Million Fine.” Exchange Offices: The Closure Penalty Prompts Us Not To Sell Dollars

2023-02-09 Shafaq News/ Many exchange offices are witnessing reluctance to sell the dollar to citizens after the new price was set by the Central Bank of Iraq and approved by the Council of Ministers.

On Thursday, the owners of some exchange offices confirmed that the threat of closure and a fine prompted us not to sell the dollar to the beneficiaries of the citizens.

An owner of a money exchange in Baghdad said in an interview with Shafaq News agency; “The central bank’s threat to impose financial sanctions and close our offices made us wary of the dollar sale process,” noting that “the central bank asked us to adhere to the official pricing by selling at a price of 132 thousand dinars for every 100 dollars.”

He added that “the price of the dollar in the parallel market is higher by the limits of” 20 numbers “, and therefore some exchange offices buy dollars from citizens at a price of 131 thousand dinars per 100 dollars, but they refuse to sell except to acquaintances and at the parallel market price for fear of economic security.”

He added, “We received yesterday, Wednesday, our weekly share of the dollar at a price of 146,500 compared to 100 dollars, after we paid the bank its dues a week ago,” noting that “we will bear its loss after reducing the price to 131 thousand dinars for every 100 dollars.”

While the owner of another exchange company confirmed in an interview with Shafaq News agency, “The economic security are spread in the region, and they follow and deliberately enter our offices and companies, claiming that they need to sell or buy the dollar to ensure the extent of the company’s commitment to the instructions of the Central Bank,” noting that “the violator will close his office immediately and refer him to the court to be fined.” 20 million dinars.

He pointed out that “Economic Security is also following up the outlets for distributing salaries that were previously buying dollars and were originally prohibited from buying or selling dollars,” stressing that “most of these outlets and some exchange companies preferred to close their offices for fear of penalties.”

It is noteworthy that the Central Bank has allocated, yesterday, Wednesday, a hotline to receive citizens’ complaints and inquiries related to the purchase of foreign currency, the dollar, indicating that it will receive complaints and inquiries during official working hours, from eight thirty in the morning until seven in the evening.  LINK

Reducing The Price Of The Dollar In Iraq.. An End To The Crisis Or Its Deepening?.. Economists Answer

2023-02-08 05:07  Shafaq News/ After the Iraqi Council of Ministers approved the study presented by the Central Bank to reduce the price of the US dollar against the dinar, the parallel market witnessed a significant decline in the exchange rate, reaching 145,000 dinars compared to 100 dollars, after it had reached more than 170,000 dinars earlier. .

The central bank set a price of 1,300 Iraqi dinars to buy the dollar from the Ministry of Finance, 1,310 dinars to sell it to banks through the “electronic platform,” and 1,320 dinars to sell it to the final beneficiary.

Economists and financial experts differed among themselves in terms of the effectiveness of the recent government measures, which were represented in reducing the exchange rate of the dinar in the state’s general budget. Some considered it a step in the right path, while others considered this measure “dangerous and a confusion” in decisions.

Inability to balance through a dangerous political decision to gain people’s satisfaction

The economist, Nabil Al-Marsoumi, told Shafaq News agency, “The recent measure taken by the government to improve the Iraqi dinar against the dollar is part of a strategy to confront inflation and then lower the prices of imported goods, but it is considered a dangerous measure at the same time because there are direct costs that will be paid in exchange for improving the price of Iraqi dinars.” national currency exchange.

And he continued, “One of the factors that will be reflected negatively is the reduction of government revenues denominated in Iraqi dinars, which means direct costs, which will be around 15 trillion dinars annually, added to the deficit, which will be financed by external borrowing, and the indebtedness will increase.”

He added, “The decision would also affect foreign trade and exports and create a problem in conflicting financial positions and affect the investment nature, just as prices are difficult to go down when they go up.”

Al-Marsoumi also believes that “this measure was taken for reasons that are not economic but rather political, and it is consistent with the state’s rentier method of gaining people’s satisfaction.”

Electoral game.. Profits are in the pockets of the corrupt

For his part, the economist, Ahmed Al-Hathal, considered in an interview with Shafaq News agency, “The approval of the exchange rate 1300 by the Council of Ministers is the end of the electoral game at the expense of monetary policy and reserves.”

He added, “The crisis of credits and remittances will remain until the completion of the platform and the organization of the exchange market, but the price will decrease from the citizen’s point of view only,” but from “an economic point of view, the difference between the two prices ranges by 10%, and may settle at 145-150, and is still The difference goes to the pockets of the corrupt because of the bills.”

Al-Hathlal asserts, “The government will not be able to solve the issue of bills, as they deluded the citizen at the expense of the budget deficit,” noting that “the financial illusion in monetary policy, we are waiting for the financial illusion in fiscal policy through the explosive deficit.”

The decision is Iraqi.. and smuggling will stop

For his part, economist Haider Al-Moussawi confirmed in an interview with Shafaq News agency, “The decision to return the exchange rate and reduce it to 130,000 dinars against 100 dollars is the decision of the bank’s management after consulting financial and economic authorities concerned with the issue, and the Parliamentary Finance Committee is the one who laid the foundations for this issue Therefore, the decision will proceed with the approval of all political forces.”

He added, “Suspicion that the budget will face a deficit as a result of this is incorrect talk, because Iraq has a strong budget and has a good financial surplus, and these budgets can also establish investment projects and gradually abandon dependence on oil as the only revenue for the budget.”

He continued, “What was raised recently that the price of 130,000 dinars compared to 100 dollars will benefit smugglers to obtain dollars at cheaper prices is inaccurate talk because smuggling operations do not take place with bags as some imagine, but rather through invoices that are smuggled to several countries, and therefore the establishment of the electronic platform prevented smuggling Absolutely abroad,” adding that “Iraq’s import needs do not, in any case, exceed $150 million per day.”

Mousawi confirms that “the decision was taken during the bank’s meeting with the US Treasury in Turkey, and an Iraqi delegation headed by the Iraqi Foreign Minister left today for Washington to meet with the US Federal Bank to discuss the issue of the dollar.”

He pointed out that “what was determined from the price of 130 thousand dinars compared to 100 dollars is an acceptable price according to the economic vision, and what happened previously in terms of the rise in the parallel market belongs to the speculators who monopolized the market,” expecting that “it will rise slightly from the specified ceiling, and therefore it will not affect the market.” Normal prices.

A brief statement by the media office of the Council of Ministers said on Tuesday that the Council of Ministers approved 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 1,300 dinars per dollar.

Last month, Prime Minister Muhammad Shia al-Sudani relieved Central Bank Governor Mustafa Ghaleb Makhaif of his post, at his request, and later decided to assign Ali Mohsen al-Alaq to carry out his duties.

And the exchange rate of the dollar against the Iraqi dinar in the parallel market reached more than 170 thousand dinars compared to 100 dollars at a time when the government was unable to stop this deterioration in the value of the dinar, after large withdrawals of dollars from the market to smuggle them abroad.    LINK