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More Iraqi News Thursday PM 12-24-20

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Parliamentary Integrity: 20 Billion Dinars, Losses From The Bank Every Day From The Currency Auction, Profits Go To Banks

19:03 – 12/24/2020  Information / Special … The Parliamentary Integrity Committee revealed, on Thursday, the daily losses of the Central Bank of more than 20 billion dinars, profits go to banks, indicating that the silence of the Central Bank is not explained in good faith.  A member of the Integrity Committee, Khaled Al-Jusaimi, told / Al-Maalouma / that “there are 5 Iraqi merchants led by a businessman who are behind the monopoly of the dollar in the Iraqi market and then pump it and manipulate prices and the Central Bank is unable to control them.”

“The cash liquidity due to the dollar’s profits in the auction selling the currency with the five dealers is equivalent to the bank’s sales in the five-day currency auction,” Al-Jushami said, pointing out that the silence of the Central Bank cannot be explained in good faith.  He added that “more than 20 billion dinars a day, profits go to the banks, and the bank loses them from the currency auction sales that were supposed to go to the state treasury.” https://www.almaalomah.com/2020/12/24/511915/

TOBYBOY:  Again where is the Iraqi government and the IMF with this corruption going on in the CBI. Just a matter of short time for CBI be depleted of their reserves and into Bankruptcy. So who is this businessman that is not named here. maybe Maliki

Independent Deputy: The Governor Of The Central Bank Enabled A Bank To Take Possession Of The Currency Auction

09:29 – 12/24/2020   The information / special between independent MP Basem Khazal, that the governor of the Central Bank enabled one of the banks to acquire the auction of selling the currency, pointing out that the people’s interests and rights have become hostage to the power of the political parties that control the central bank and other banks.

Khazal said to / the information /, that “there is confirmed information about the involvement of the central bank governor to take measures that enable one of the banks to acquire a large percentage of the auction selling the currency.” Suspect

“The people are subject to the policy of the Central Bank, which is controlled by political parties, as well as their control over Iraqi banks,” he added.

And that “the interests and rights of the people fall under the authority and power of the parties, and they fall into the last concerns of Prime Minister Mustafa Al-Kazemi,” noting that “the policy of the Central Bank is determined by a person who is not specialized in the economic or financial field.” https://www.almaalomah.com/2020/12/24/511747/

TOBYBOY:  This is alarming how could the CBI allow a Bank to take possession of the CBI auction. Where is the Iraqi government and where is the IMF in this situation? This is a real problem with the CBI letting this to go on jn the country. Plus articles says the CBI is controlled by political parties, I guess that means controlled by Iran who is controlling more and more in Iraq.

Bloomberg: The Devaluation Of The Iraqi Currency Will Not Be Sufficient To Save The Deteriorating Economy

14:06 – 12/24/2020  The information / translation …A report by the BBC News website confirmed that Bloomberg, on Thursday, that the devaluation of the Iraqi currency against the dollar will add the problem of inflation to the list of difficulties facing the Iraqi economy and the population who are recovering from a devastating war with ISIS , and therefore without making major cuts in Spending, this will not be sufficient to prevent the occurrence of greater economic pain or to reduce the deterioration occurring.

“The move to reduce the currency value by 23 percent to reduce pressure on public finances and try to secure billions of dollars in foreign aid has already met with opposition among some parliamentarians who are afraid of provoking voter anger after mass protests that rocked the country last year,” the report, translated by Al-Maaloumah, said.

He added, “Although Iraq It is considered the third largest oil exporter in the world, but its economy has suffered from the Coronavirus pandemic that has weakened the global demand for energy supplies, and the quotas agreed upon with other oil exporters to stabilize the market also mean that the number of barrels that Iraq can pump is restricted, which narrows His options to increase revenue. ”

He continued, “According to the latest estimates of the International Monetary Fund, the Iraqi economy has shrunk by 11% this year, and this is better than the fund’s initial expectations of a 12.1% decline, but it still leaves Iraq with the largest contraction among OPEC members subject to the production limits, which highlights His excessive dependence on oil production.

He explained that “the IMF expects that the net foreign assets of Iraq will continue to decline sharply until 2024. The ratio of debt to gross domestic product in Iraq is.”Among the highest rates is OPEC +, a group that includes non-OPEC oil exporters such as Russia.

“There will be a need to cut the budget to get substantial financial support,” said Mark Pohlund, senior credit research analyst at Red Intelligence. “Since the announcement of the devaluation, the gap between the peg and the black-market currency rate has narrowed, indicating that the adjustment helped. Reducing pressure at the moment, ”but it is not enough.

On the other hand, many analysts said that the devaluation was necessary to prove to international lenders that Iraq is serious about reform, but it is not sufficient to release the aid the government wants.

https://www.almaalomah.com/2020/12/24/511836/

Saeron Calls On The Government To Link “Electronic” To Control The Currency Market

The Baghdad Post Thursday, December 24, 2020 02:47 Pm   Magda-Tamimi  On Thursday, the Saeron bloc confirmed that a parliament is seeking to amend the 2021 Budget Law, while the government called for electronic linking of banking companies to control the currency market.

The representative of the Sairoun bloc, Majida Al-Tamimi, said in a press conference held at the parliament building with the participation of the bloc’s representatives and attended by the Shafaq News Agency correspondent; It was supposed to follow a customs policy to support domestic production and not reduce the value of the dinar against the dollar, indicating that the decision to reduce the exchange rate of the dinar caused many repercussions, especially those with limited incomes.

Al-Tamimi added: We will take the necessary measures with our partners by amending the budget law to conduct transfers, and we call on the government to link all banking companies with an electronic link to control the currency market.

It indicated that there is a need for the Central Bank to launch development initiatives to preserve the dollar exchange rate.

She called Tamimi; The government to take the necessary measures to deal with the Central Bank’s decision, stressing that the government must import food and commercial items and pump them into the ration card items.  LINK

The Dollar Shakeup Shakes Iraqis, Prices Ignite … And Warnings Of A “Massive Revolution” That Topples The Ruling Regime

Dialogues and reports  The Baghdad Post Thursday, December 24, 2020 04:18 PM  Sluggish markets, a confused economic situation and anxious souls, this is how the repercussions of the dollar shake-up that struck Iraq and resulted in the collapse of confidence and prices and their constant volatility, the devaluation of the dinar at a significant rate, the highest since 2003, immediately led to raising commodity prices, which affected living standards.

Economists: The shock method is a failure.

Economist Hilal Al-Tahan says in a statement to him that “the high exchange rate in this way was something that was surprising to all observers and constituted a great shock to all observers, even the financiers who follow the Iraqi economy and even those who work in banking in Iraq.”

Al-Tahan added that “the shock method is a failure in managing monetary policy in any country in the world,” adding that “the rise was supposed to be gradual so that there would be no problems between the seller and the buyer and the markets and their movement.”

Al-Tahan pointed out that “this rise was reflected in a very negative way on the rise in prices, in addition to the greed of some merchants and their monopoly on the materials and raised their price more than double, stressing that” this sudden rise affected the movement of economic activity in its entirety and on the market movement and led to a recession and leads to the end of the middle class And employees, as for the poor class, it may naturally increase higher than before, because foodstuffs and all goods and services will rise. ”

Al-Tahan pointed out that“ the bad economic situation in the country will lead to a massive popular revolution across the country and have unfortunate results, ”surprisingly at the same time. How “these decisions were taken in this way.”

Professor of political economy at the University of Iraq, Abdul-Rahman Al-Mashhadani, said that “the shock was great in the local market and on individuals and merchants because it raised the prices of materials significantly,” indicating that “This increase will lead to an increase in the inflation index and thus the governmentYou will not be able to control it. ”

Al-Mashhadani explains in a statement that“ the rate of prices in the markets rose by about 24 percent, and therefore these prices will remain confused for a period of time, and the dollar will need a long period to stabilize at a specific price, ”expecting that“ stability will come after approving a budget. 2021 year. “

Vice: the government floated the currency

confirmed MP Nada Shaker Jawdat said the government lifted the dollar exchange rate against the Iraqi dinar floated the currency and lost prestige.

she Jawdat told her that” wholesale markets in Baghdad , where prices rose between a quarter to a third, and therefore, The Iraqi citizen has been sacrificed by reducing his allowances and imposing taxes on his salaries, in addition to raising the dollar. “

“The government used the method of floating the currency after it reduced the value of the Iraqi currency,” Jawdat added, indicating that “no country has these oil resources and goods that reduce the value of the dinar in this way, especially if we know that all goods are imported from abroad.”

“The government has turned to the weakest link of society, because it is unable to eradicate corruption whales, and if they manage their affairs and follow their policies in the right way,” Jawdat emphasized.

Traders: The markets are depressed, and a merchant who sells “single-use dishes” in Jamila Market said in a statement; “All the goods that we deal with are 100% imported, which are imported in hard currency, which is the dollar,” noting that “these goods are imported from Turkey and Iran.”

He added, “The high exchange rate of the dollar in this way has led to an increase in commodity prices to approximately 20% of its value more than 10 days before this date,” stressing that “this difference in prices will be paid by the citizen, not the merchant.”

He continues that since the announcement of the installation of the dollar exchange rate by the central bank and the market in a beautiful experiencing recession almost total limited sales process only question about the prices were mostly by mobile phone, he said. “

For his part; confirmed the merchant Abu Sajjad owner Algiashi shop materials food in a beautiful market in a statement that ” the beautiful market almost deserted this day of customers as a result of the high dollar,” adding that “prices often rose from what it was a week ago.”

he noted that “most food is imported and therefore affected by the rise The dollar, pointing out that “prices rose between 15 to 20%.”

Abu Sajjad said that “the increase did not include only the importer, but even locally manufactured food,” pointing out that “local eggs increased by more than 10,000 dinars, reaching the price of one carton of 70,000 dinars.”

Citizens worried about the future A number of citizens expressed their fear about the future, especially with the deterioration of the living situation, which threatens the increase in unemployment and poverty in the country.

Muhammad Ali Amin says, “The state has tended to punish the financially exhausted citizen instead of raising his standard of living, and therefore this rise in the exchange rate will raise unemployment and poverty rates in Iraq.”

Amin adds; “All the decisions made by the government, the last of which was to raise the price of the dollar, were negative for the citizen’s right and increased his suffering even more.”

For his part, citizen Muhammad Hamza was considered in an interview with Shafaq News; “The citizen began to lose confidence in the Iraqi dinar as a result of this sudden and ill-considered rise in the dollar.”

Hamzah indicates that “the citizen will dispense with many of the goods and services that he previously obtained, and his income will be limited to basic needs of food and drink,” expecting that “there will be a popular movement against the government as a result of the deterioration of living conditions.”

The Central Bank of Iraq had decided to raise the price of selling the dollar to banks and exchange companies to 1460 dinars, from 1182 dinars to the dollar, with the aim of compensating for the decline in oil revenues caused by the deterioration of oil prices.

Iraq relies on 90% of its income on oil revenues, and the last time it devalued the dinar was in December 2015 when it raised the selling price of the dollar to 1182 dinars, compared to 1166 dinars in the past.   LINK

The Central Bank Auction Continues To Decline And Is Witnessing A Rare Event

Time: 12/24/2020 12:29:12  Reading: 8,099 times   {Baghdad: Al Furat News} The Central Bank of Iraq’s dollar sales continued to decline for the third consecutive day.

According to the bank’s daily bulletin on the currency auction, the total sale for the purposes of strengthening balances abroad {transfers, credits} amounted to 76 million, 600 thousand and 801 dollars, which is the total sales, while the bank did not sell any dollar in cash.

Yesterday, foreign currency auction sales were $ 77 million.

The central bank sells dollars for the sums transferred to bank accounts abroad at a price of {1460} dinars per dollar, and cash sales at {1460} dinars per dollar, in implementation of its recent decision to raise the exchange rate.

The central bank’s sales on Thursday, Wednesday and Tuesday indicate that it contradicts the statements of the Central Bank’s governor, Mustafa Ghaleb, who said earlier that the bank “will double the sale of the dollar to exchange companies,” indicating that “the abundance of the dollar will make it stable in the market.” The exchange rate of the dollar in Baghdad rose today to 1420 dinars.    LINK

For The Third Day In A Row … Central Bank Sales Of Dollars Fell

Economie| 12:39 – 12/24/2020   BAGHDAD – Mawazine News  The Central Bank of Iraq announced, on Thursday, that its sales of dollars continued to decline for the third consecutive day.

The Central Bank’s daily bulletin on the currency auction stated that “the total sale for purposes of strengthening balances abroad {transfers, appropriations} amounted to 76 million, 600 thousand and 801 dollars.”

This amount is considered the total sales, while the bank did not sell any dollar in cash.

The central bank sells dollars for the sums transferred to bank accounts abroad at a price of (1460) dinars per dollar, and cash sales at a price of (1460) dinars also per dollar, in implementation of its recent decision to raise the exchange rate.

The central bank’s sales for Thursday and last Wednesday and Tuesday indicate a significant decline, in contradiction to the statements of the Central Bank’s governor, Mustafa Ghaleb, who said earlier that the bank “will double the sale of dollars to exchange companies,” indicating that “the abundance of dollars will make it stable in the market.” https://www.mawazin.net/Details.aspx?jimare=135485

The Judiciary Is Moving Against 13 Private Banks Because Of “Irregularities” Related To The Currency Auction

Pratha News Agency97 2020-12-24  On Thursday, the Supreme Judicial Council announced that legal measures have been taken to annihilate 13 private banks for violations of entering the currency auction.

The council said in a statement, “The Rusafa investigation court, which is competent to look into issues of integrity, money laundering and economic crime, decided to take legal measures against 13 banks for violations of entering the currency auction without submitting customs permits that support the entry of goods, tax accounting, and suspicions of falsifying documents related to this.”

He added, “The aforementioned court decided to bring in the authorized directors of the violating banks due to their breach of the due diligence procedures imposed by the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015.”    http://burathanews.com/arabic/news/383044

Legal Procedures Against 13 Private Banks For Violations Of Entering The Currency Auction

Economie| 01:42 – 12/24/2020   Baghdad – Mawazine News   The Rusafa investigation court, which is competent to look into issues of integrity, money laundering and economic crime, decided, on Thursday, to take legal measures against 13 private banks for violations of entering the currency auction.

A statement of the Supreme Judicial Council, of which Mawazine News received a copy, stated that “the Rusafa Investigation Court, which is competent to look into issues of integrity, money laundering and economic crime, decided to take legal measures against 13 banks for violations of entering the currency auction without submitting customs permits that support the entry of goods and tax accounting. There are suspicions of falsifying documents related to this.

The statement added, “The aforementioned court decided to bring in the authorized directors of the violating banks due to their breach of the due diligence procedures imposed by the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015.”

 https://www.mawazin.net/Details.aspx?jimare=135500

Bourse Ends 2020 Up 1.58%

The Stock Exchange «Economy News»  Market  Economy News – Baghdad  The Iraqi Stock Exchange concluded, today, Thursday, its last trading for the year 2020, up by 1.58%.

The stock exchange traded 739.2 million shares from 26 companies, worth 1.3 billion dinars.

Shares of 7 companies including Al-Mutahid increased by 14.29%, Elaf by 7.14% and Pepsi by 6.41%, while the shares of Dar Al-Salam Insurance Company lost 5% and the Ready-Wear Company by 4.96%.

During the year 2020, the market organized 183 sessions, which is 58 sessions less than last year due to public holidays and the Corona pandemic, which led to the imposition of a comprehensive curfew.

The stock exchange traded 403 billion shares during the year, at a value of 330 billion dinars. Number of observations 146 Date of addendum 12/24/2020     https://economy-news.net/content.php?id=23302

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