Iraqi News Highlights Thursday Morning 7-27-23
Tlm724 Administrator Bondlady’s Corner
The Difference In The Exchange Rate
Economical 2023/07/26 Muhammad Sharif Abu Maysam There is no doubt that the campaign to support the dinar, which was adopted and in which many parties participated with the Central Bank of Iraq, contributed significantly to reducing the dollarization of local markets and strengthening trades and exchanges through the local currency, and thus the relative stability of exchange rates after returning to the Iraqi dinar in the pricing of many Goods and services that were provided in foreign currency.
These achieved results did not come without a series of procedures and controls that contributed to accelerating the necessary steps to expand the space for merchants and citizens to enter the electronic platform, with the aim of addressing the problem of low demand resulting from the state of uncertainty with electronic payment transactions, and the reluctance to deal transparently in the procedures for obtaining amounts.
Necessary to finance foreign trade and other activities of individuals.
However, the exchange rates in the parallel market are still unstable and relatively far from the official exchange rate,
which creates a big difference between the dollar exchange rate through the transfer platform to finance foreign trade, and the selling prices of imported goods in the local market based on the exchange rate in the parallel market.
This difference contributed and contributes to the ripening of the capital of merchants and exchange offices at the expense of the purchasing power of consumers, and
also contributed to the penetration of import operations at the expense of the local product due to the low prices of imported goods and the inability of the local product to compete with the importer, and accordingly and
with the start of work with the largest budget witnessed by Iraq on Throughout its history, which will contribute to moving the market and the flow of cash liquidity,
it is expected that inflation rates will rise, local demand for commodities will increase, and profits will accumulate in the import-dependent business environment, as capital owners will increasingly tend to import as a quick-profit and low-risk investment,
in the face of a local product that suffers from uneven competition. With the importer due to the high costs of energy, manpower and raw materials with the high risks of work in light of the deterioration of electric energy services.
On this basis, large proportions of the general budget allocations will go in favor of the importer as he continues his blows to the local product, and national capital will suffer in the work environment from unequal competition with private sector imports, and local markets will be exposed to the risks of price fluctuations in the exchange rate due to the flow of cash into the markets and increased demand.
On commodities in light of the decline in domestic production rates, and thus the loss of public funds, the lack of control over the exchange rate and the increase in the possibilities of the return of dollarization to the markets. https://alsabaah.iq/81229-.html
The Dollar Is Flying High And Confusing Monetary Policy Measures
Economical 2023/07/27 Baghdad: Haider Fleeh Al-Rubaie The process of increasing the exchange rate in the parallel market constituted a new shock to the financial and monetary policies, after they made great efforts during the past periods with the aim of aborting the rise of the dollar, whose exchange exceeded yesterday, Wednesday, the limits of 155 thousand dinars per 100 dollars, which was considered by specialists in economic affairs.
They stressed the need to take strict measures to limit the flight of the green currency against the dinar, to find quick financial settlements that meet the needs of importers and traders, and to create a tangible balance between dollar supply and demand, with the aim of controlling the prices of goods and materials from the exploitation of the “greedy”.
Despite the continuous rises in the exchange rate, however, specialists in the economic affairs minimized the risks of these rises on the local market, assuring to “Al-Sabah” that 75% of the materials and commodities in the markets enter Iraq at the official rate set by the Central Bank, and that merchants make their foreign transfers.
According to that price, however 25% of Iraqi trade is affected by the parallel exchange rate.
The efforts of the fiscal and monetary policies to undermine the dollar were matched by the efforts of the legislative and executive authorities with the aim of limiting the rise in the parallel exchange rate.
While the Prime Minister, Muhammad Shia’a al-Sudani, discussed with the Governor of the Central Bank, Ali Al-Alaq, the measures taken to stabilize the currency in the local market, and discussed the facilities provided by the Central Bank, Which includes allowing small merchants and importing individuals to finance their imports without the need to establish a company.
The Parliamentary Finance Committee reviewed with Al-Alaq ways to achieve monetary stability and control prices.
In contrast to the “cautious optimism” shown by a number of specialists regarding the effects of the exchange rate rise,
others see the possibility of economic indicators, which they described as “painful”, represented by entering the local market in the short term in a state of stagnation and high inflation rates.
In turn, the researcher in Iraqi and international economic affairs, Dr. Ali Daadush, in an interview he gave to “Al-Sabah”, attributed the reasons for the price jumps of the green currency to the shortage in the supply of cash dollars compared to the volume of demand, which led to a rise in the exchange rate in the parallel market that finances trade. Foreign with the penalized countries.
Dadoush pointed out that the reasons that led to the exchange rate rising again are many, but the most prominent of them is the speculation on which most transfer and exchange companies live, as
these transfers take two directions, the first is to cover the volume of commodity imports from the punished and banned countries with dollars, which leads to
This leads to an increase in the demand for the dollar in the parallel market, while the
second lies in the expansion of the phenomenon of speculation and hoarding of the dollar and putting it up later to obtain a larger price difference.
The economic researcher believes that solutions in the short term may not be within reach, as most of the reasons that led to the dollar’s rise are external, especially after 14 Iraqi banks were punished by the US Federal Reserve,
pointing out that the most effective solutions to confront the “dollar dominance” lie in Activating and operating factories and laboratories to produce goods that are imported from countries banned from the dollar,
and directing the government towards activating institutions and companies in the public and private sectors, operating and managing industries and working to increase their production, stressing that
these steps will lead to eliminating the gap between the official and parallel prices, as they will produce imported goods that are Cover their dollar amounts cash.
https://alsabaah.iq/81301-.html
The Central Bank Holds “Some Merchants” Responsible For The Dollar’s Rise
July 26 18:25 Information / Baghdad.. On Wednesday, the Governor of the Central Bank, Ali Al-Alaq, blamed some merchants for causing a rise in the dollar exchange rate as a result of not organizing their transactions on the electronic platform.
Al-Alaq said in an interview with the Iraqi News Agency, which was seen by / information / that
“the central bank continues to provide the dollar at the official rate and cover all legitimate transactions for the purchase request, including remittances and credits for various imports.”
He added, “What is being talked about in terms of a rise in the exchange rate does not mean that there is a rise in the official rate, which is still the same.
Rather, the rise is occurring in the cash price circulating in the market and is caused by the reluctance of some merchants to enter the electronic platform, which is the official channel for the sale that it requires.” The new system.
And he continued, “Merchants, in addition to other categories, cannot enter the platform because they do not practice legitimate activities and operations, and
our role in the Central Bank is to push everyone who needs to buy dollars to enter the legal and correct path, and the process today is in fact a process of reorganizing the movement of trade and funds, which makes these operations Subject to local and international controls and standards, which leads to an effective implementation of the Anti-Money Laundering and Terrorism Financing Law No. 39 of 2015.
Al-Alaq pointed out, “The process of implementing the new system in reorganizing the movement of trade and funds requires the cooperation of multiple parties, and
we expected that the issue would receive support, implementation, and interaction from the official and popular parties to support the Central Bank in achieving the goal of this system to make the movement of funds proceed in legal contexts and correct criteria to avoid any internal or external risks. Ended/25 h
https://almaalomah.me/news/economy/البنك-المركزي-يحمل-بعض-التجار-مسؤولية-ارتفاع-سعر-الدولار
Economist: The Statements Of Some Officials Are Behind The Rise In The Price Of The Dollar, And The Solution Is In The Hands Of The Central Bank
Economy breaking Central Bank of Iraq The rise in the price of the dollar Officials’ statements
2023-07-26 07:49 Shafaq News/ The Kurdish economist, Goran Jabbar, revealed on Wednesday that the statements of some officials led to an increase in the exchange rates of the US dollar against the Iraqi dinar, indicating that the Central Bank of Iraq can solve the problem.
Jabbar, who is the official spokesman for the currency market in Sulaymaniyah, told Shafaq News agency,
“The price of the dollar soared this afternoon to reach its highest levels in the last two months, reaching 158 thousand dinars per 100 dollars, but it has declined this afternoon to 156 thousand dinars per 100 dollars.””.
Jabbar ruled out that the imposition of sanctions by the US Treasury Department on 14 Iraqi banks was behind the high price of the dollar, noting that
“banning these banks does not have a significant impact, as the volume of their transactions in dollars does not exceed 1.29%, and their acquisition of the dollar does not exceed 8%.”
He explained that “the real reason is the statements of some officials who stated that sanctions are expected to be imposed on the Central Bank of Iraq in the month of November next, and this raised the concerns of citizens, which made them transfer their financial savings to dollars, and thus led to an increase in demand for foreign currency during the period.” previous days”.
Jabbar denied that the United States imposed sanctions on the Central Bank of Iraq, stressing that it is “false, since the bank deals with Iraqi oil imports, and in the event that the Central Bank is banned, this means that Iraq will not export crude, which affects the global economy due to the large volume of Iraqi oil exports daily.””.
He pointed out that “some banks have so far been smuggling currency to countries that have US sanctions, and senior officials stand behind these banks, and
if the Central Bank of Iraq does not take real measures towards those banks, the matter may reflect on the local economy because Iraq is a consumer country and imports hard currency.”
Regarding the appropriate measures to address the crisis, Jabbar believed that the central bank should take “strict measures against those banks, as it did four months ago when the value of the dollar reached 167 thousand dinars for every 100 dollars, until it declined after that to settle at 148 thousand dinars.”
He concluded by saying, “The Central Bank of Iraq must grant loans to small projects, and the process of granting foreign currency to merchants and those who wish to travel through financial dealing companies (money changers) must be facilitated and expanded.”
Earlier today, the deputy head of the Parliamentary Finance Committee, Ahmed Mazhar, told Shafaq News agency,
“The Central Bank took a wrong decision when it allowed exchange companies to sell dollars directly to citizens wishing to travel outside Iraq.”
Mazhar asked, “We do not know how the central bank administration made such a decision?”, indicating that “this decision may collide with the policy of the US Treasury, and new sanctions may be issued that may affect the central bank if the situation continues as it is now.”
Yesterday, Monday, the Central Bank of Iraq decided, according to Shafaq News Agency, to “facilitate cash sales in US dollars for travelers.
It was decided to allow exchange companies of categories (A and B) wishing to open accounts with this bank in both dinar and dollar currencies for the purpose of participating in a sale window and buying foreign currency.
https://www.shafaq.com/ar/اقتصـاد/خبير-اقتصادي-تصريحات-بعض-المس-ولين-ورا-ارتفاع-سعر-الدولار-والحل-بيد-البنك-المركزي
The Central Bank Excludes The Inclusion Of New Banks In The Sanctions
July 26 18:27 Information / Baghdad.. The Governor of the Central Bank, Ali Al-Alaq, ruled out, on Wednesday, the inclusion of new Iraqi banks in US sanctions.
Al-Alaq said in an interview with the Iraqi News Agency, which I viewed / the information /:
“Currently there is no indication or indication from the American side of including new banks within the sanctions,” noting,
“The Central Bank will follow up on the issue of banks that have been subject to deprivation of the dollar and will enter into a process review, audit and verify them. He revealed,
“There are a number of proposals being developed to set up the trade process with the Iranian side and the payment mechanism within its framework, and work to provide means of payment through the Iraqi currency and prepare special cards for this issue.” Ended/25 h
https://almaalomah.me/news/economy/البنك-المركزي-يستبعد-إدراج-مصارف-جديدة-ضمن-العقوبات
The Central Bank Of Iraq Denies Withdrawing The Capital Of Private Banks
July 26, 2023 The Central Bank of Iraq denied the withdrawal of the capital of private banks and their deposit.
The Central Bank of Iraq stressed that the news reported by some media and social media about the existence of a decision to withdraw the capital of private banks and deposit them in its accounts are incorrect.
The Central Bank of Iraq renewed its call to various media outlets to be careful and communicate with the Central Bank to obtain accurate information, rather than relying on unofficial sources to spread rumors and influence the work of monetary policy and the banking sector.
The central bank is working hard to enhance confidence in the banking sector by providing support to it and enhancing economic development.
The Central Bank of Iraq information Office 26 – July – 2023 https://cbi.iq/news/view/2392
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