Iraq Economic News 5-24-2024
The Dollar Is Leaking”… Central Bank Sales In Numbers And An Expert Raises Several Questions
Time: 05/24/2024 Read: 2,054 times {Economic: Al-Furat News} An economic expert raised several questions regarding the Central Bank of Iraq’s dollar sales and their comparison with previous years.
Manar Al-Obaidi said in a statement, a copy of which was received by {Al-Furat News}, “By reviewing the Central Bank’s sales of the dollar, both cash and remittances, it is noted that the bank’s sales of foreign currency cash to the local market were not greatly affected in 2023, which is the year in which the crisis of American restrictions on dollar sales began.” “.
He added, “According to Central Bank data on foreign currency sales to local markets, the value of dollar cash sales in 2023, the year of the dollar crisis, amounted to 8.4 billion US dollars, noting that the average foreign currency sales of the dollar from 2006 until 2022 amounted to 6.1 billion dollars.”
He pointed out that “the Central Bank’s sales of cash are higher than the average sales of the Central Bank over all the past years, and the ratio of cash sales to total foreign currency sales in 2023 was 25%, while the average ratio of cash sales to total foreign currency sales was over Extension of years (2006-2022) 18.7%.
Al-Obaidi stated, “What actually decreased and was affected were the Central Bank’s sales of dollars through the remittance window, as the value of the Central Bank’s sales through the remittance window for the past year amounted to 25 billion dollars, while the average foreign exchange sales of dollars from 2006 until 2022 was 31 billion US dollars and amounted to The highest value of the Central Bank’s sales from the remittance window in 2019, amounting to 45 billion dollars.”
He explained, “From these numbers, it is clear that what affects the exchange rate in the local market is the decrease or increase in the Central Bank’s sales of foreign currency through the remittance window, and not cash sales, which were not greatly affected over the previous years.”
The economic expert pointed out, “Based on these numbers, two questions arise. The first is: If the majority of the Central Bank’s sales of foreign currency over the years from 2006 to 2023 were through the remittance window, at a rate of 84% of the Central Bank’s total sales, then what is the source of foreign currency?”
Which was available in the local markets? Why was the parallel exchange rate affected by the remittance sales window if the demand was to cover the internal need, given that the remittance window sales deliver hard currency outside Iraq?
He said, “The sales of the Central Bank through the cash window from 2006 until 2023 amounted to more than 113 billion US dollars, and where was this mass of hard currency consumed? Was it all consumed outside Iraq to cover the travel expenses of Iraqis? Or was it done to cover specific types of merchants that were not Can you enter the external transfer window, or was it used for other purposes?
Al-Obaidi continued, “These data and questions require a deep analysis to know what the foreign currency cycle is in Iraq and who is responsible for the continued demand for it in the local market despite the high remittance window. Does Iraq really need cash sales of the dollar amounting to $9 billion annually, and what are the reasons for this demand? Is it really to cover foreign trade with countries that are prohibited from dealing with?
The Central Bank’s management plans to gradually cancel the dollar auction during the year 2024, leading to its complete cancellation by the end of the year, and to maintain it for audit and statistical purposes, in an effort to enable Iraqi banks to establish and establish solid banking relationships with the global and regional banking sector in order to achieve the sobriety of the Iraqi banking sector and full commitment. According to international standards and requirements.
Iraq relies on the platform for selling currency directly to local banks and companies, which was previously known as the daily dollar auction, as one of the mechanisms for preserving the value of the Iraqi dinar and combating speculative operations in the parallel market. LINK
The Government Reveals The New Formula For Dealing With The United Nations: UNAMI’s Work Will End Politically
Today, Friday, government spokesman Bassem Al-Awadi revealed the new formula for dealing with the United Nations, stressing that the work of the UNAMI mission will end on the political side.
Al-Awadi said in a statement, “The UNAMI mission was formed in the eighth month of 2003, after the overthrow of the former regime, the presence of the international coalition, and the absence of a government, but rather a governing council carrying out its new work in Iraq,” indicating that “the idea is for the United Nations to send a group of Experts to provide advice in the areas of political, transitional justice, social reconciliation, etc., in order to help the Iraqi government and provide advice, consultations and opinions, and they are considered as advisors to the government.”
He added, “Dossiers have been identified for these experts, most notably supporting the government politically, especially with the formation of the government, elections, the relationship with the Kurdistan region, the Kirkuk issue, the conflict of the components, the formation of parliament, support for the judicial and legal framework, independent bodies and civil society organizations, in addition to providing advice and assistance regarding border disputes, whether with Iran.”
Or Turkey, Saudi Arabia, Kuwait, or Jordan,” and the work continued because the conditions in Iraq at the time required such assistance.
He continued, “The mission worked in Iraq and provided great services to the Iraqi people, and tried to push towards the stability of the political process, and submitted important reports to the United Nations. ”
On the basis of which important decisions were issued to support successive Iraqi governments, the political process, and the Iraqi people,” he explained, explaining that “the Iraqi government and people remember these great services, and they will remain immortal in Iraqi memory, and we will not forget the painful incident, which was the first explosion to which the United Nations building was exposed at that time.”
And the departure of the head of the UNAMI mission in Iraq, Sergio de Mello, along with 30 members of the mission.
He stated that “Prime Minister Muhammad Shiaa Al-Sudani thanked all the figures who received UNAMI up to Jenin-Plasschaert on behalf of the government and the Iraqi people,” explaining that “this case has been going on for 21 years.”
Therefore, if we say that the previous post-2003 Iraqi governments needed some assistance, then the Iraqi government in recent years has become mature and political experience has accumulated, and Iraqi institutions are moving towards specialization, professionalism and exercising full roles, and we have active figures and senior political experts.”
He pointed out that “the state has developed and stabilized during the last two years, as the government manages internal and external political affairs entirely through official institutions. As an example, the parties in Kirkuk Governorate are now asking the Prime Minister to be the guarantor in the process of selecting the governor,” in arranging affairs. This file.
He continued, “The security agreement that was concluded with Iran dealt with important aspects. The Iraqi government was the one who concluded it, in addition to developing relations with Turkey, the latest of which was President Erdogan’s recent visit to Iraq,” pointing out that “the process of forming the government was managed by the Iraqi parties themselves without the need for assistance.”
“And developing the relationship with the Kurdistan region, which is carried out through the leadership of Erbil and Sulaymaniyah with the head of government in Baghdad, represented by the Prime Minister.”
He stated that “what is related to the political aspect is that it has become a state of stability, and countries are dealing directly with the Iraqi government,” pointing out that “all political forces believe that we have reached a stage of political maturity in which we can give thanks to the UNAMI mission, the United Nations, and the ability of the Iraqis to manage files.” politics themselves.
He stressed that “the United Nations Mission (UNAMI) has two tasks in Iraq. The first is the political work that was mentioned, and the second has non-political work, which is providing support in the elections, in the human rights file, in development issues, consultations, and other aspects,” adding, “We do not want to dispense with it.” About services and relations with the United Nations, but we want to focus on the political aspect and end the mission.”
He pointed out that “Iraq will request the support of the United Nations in the files of human rights, elections, development, and everything in which we need an international role later.”
Regarding the human rights file, Al-Awadi stressed, “We need the United Nations to be present and to help with this, and in the climate and environment file.”
And other files, but in a new format that includes not having a permanent presence inside Iraq, but it is possible to form committees for a certain period that will come to Iraq and participate in this file and then after that their work will end, without the need for a committee present in Iraq to submit an annual report to the United Nations
. Until “the Iraqi government’s proposal is for UNAMI to remain until after the next parliamentary elections, because the government requested that the last period of the mission’s presence be December 31, 2025, and that the next parliamentary elections are in the month of November, and thus the mission will be present in the elections in accordance with the request.”
The Iraqi government,” explaining that “if the mission is forced to be dissolved before this date, the Iraqi government will be the one that will submit a request to the United Nations to form a specialized committee for elections that will come to assist the Independent High Electoral Commission and supervise, monitor, and then certify the results of the parliamentary elections, as this is necessary for the political process and the government.” “.
He pointed out that “the United Nations’ ratification of the election results is international legitimacy,” pointing out that “Iraqi governments have always enjoyed international legitimacy in every election, most notably the government of Muhammad Shiaa al-Sudani, which enjoyed great popular and international acceptance and support.”
He stressed, “We are keen to have an international committee that helps, monitors and works jointly with the Supreme Independent Election Commission.” https://www.mawazin.net/Details.aspx?jimare=248572
An International Group Considers Iraq To Be One Of The Countries Committed To Combating Money Laundering And Terrorist Financing
The Middle East and North Africa Financial Action Task Force (MENAFATF) decided, in its general meeting held in the Kingdom of Bahrain for the period from 19-23 May this year, to consider Iraq as one of the countries highly committed to the recommendations of the Financial Action Task Force in the field of combating money laundering and the financing of terrorism.
The media center of the Supreme Judicial Council explained in a statement, “The residents’ report on Iraq and the adequacy of the procedures followed by the Iraqi authorities in the field of combating money laundering and terrorist financing was accepted, and this means it will continue to not be included on the gray list, which is the list of high-risk countries in the field of combating money laundering.”
And terrorist financing, after the Iraqi team succeeded in convincing the general meeting of the MENA FATF organization of the adequacy of the measures taken by it in this field.”
It is noteworthy that Judges Ali Hussein Jafat and Dhia Jaafar, deputies of the Karkh Court of Appeal, and Judge Iyad Mohsen, vice president of the Rusafa Court of Appeal, participated in the meeting with a group of representatives of the Anti-Money Laundering Office at the Central Bank of Iraq, as well as representatives of the rest of the relevant Iraqi institutions.
https://www.radionawa.com/all-detail.aspx?jimare=38332
Provoking Thoughts and Points to Ponder on Money
Money is the poor people’s credit card. – Marshall McLuhan
A man is rich in proportion to the things he can afford to let alone. – Henry David Thoreau
Money is like a sixth sense, and you can’t make use of the other five without it. – W. Somerset Maugham
Money swore an oath that nobody who did not love it should ever have it. – Irish proverb
I’m so happy to be rich, I’m willing to take all the consequences. – Howard Ahmanson
http://www.famousquotesandauthors.com/topics/money_quotes.html
