Where Is The Official Position…And What Does The Dollar Hide In The Coming Days?
July 8, 2024 Baghdad/Iraq Observer Yesterday, the Central Bank of Iraq announced that it had submitted the “E-Commerce System Project” paper to the Council of Ministers for review and approval to proceed with work on it.
According to a statement, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, chaired the meeting of the Diwani Order Committee (24079) to regulate electronic commerce in Iraq with the participation of the concerned authorities.
In detail, during the meeting, a draft system for e-commerce and consumer protection was discussed through the controls discussed by the attendees, through registration procedures and obtaining a license to practice this trade.
The committee contributed to identifying the service provider and granting it a license through an electronic platform established by the Ministry of Commerce, and the
members of the committee stressed establishing the controls for granting a license to those wishing to practice electronic commerce in a way that preserves the rights of all parties.
While the attendees agreed to submit the “regulation paper” to the Council of Ministers for review and approval to proceed with work on it.
Realistic reading
Economists believe that the Central Bank does not have a realistic reading of the Iraqi financial situation, while they point out that it is within the powers of Parliament to hold the Central Bank accountable and dismiss those who are negligent.
An economist told the “Iraq Observer” agency, “The Central Bank is living the situation of the Sultanate with itself and does not know about the reality, and it also does not have a realistic reading of the Iraqi financial situation, and
it is required to solve the problem of trade with these two countries, and electronic payment has been stopped for 20 years.” In the drawers of the Central Bank and he did not do it, and
it is within the powers of Parliament to hold the Central Bank accountable and dismiss those who are negligent.”
He said: “The dollar in Iraqi markets is a basic currency like the dinar, and the Iraqi currency is 80% equivalent to the dollar, 10% to gold, and 10% to bonds.”
He pointed out that “Sudani’s visit to Washington previously alleviated the dollar crisis, and that the lack of an agreement with Washington caused the banking sector to be annihilated by sanctions, and some reports against banks came from Facebook and led to sanctions.”
According to the Central Bank’s instructions, “the travelers’ dollar is not sold to them at the present time, and it does not include land trips.”
Plug
Observers considered that the Central Bank of Iraq’s sales, in a month, are sufficient to cover the deficit of delaying salaries and other public needs, from the hard currency auction for the US dollar, which amounted during the month of June to more than 4 billion dollars, while they revealed important statistics about government salaries.
They said: “The allocations for salaries of employees working in the federal government occupy approximately 62 trillion dinars annually of total public spending, and
they constitute a percentage of the total spending ceiling for the fiscal year 2024 of about 30%,” and that “the issue of securing salaries is a top priority in financial and economic policy in the country.”
The country is responsible for securing its expenses.
They stated, “According to the standard of support, which averages 6 people per family in our country, the monthly government salaries are responsible for the livelihood of 24 million Iraqi citizens out of 44 million citizens of the country’s population.”
“Government salaries are considered one of the most important ways to ensure the social and economic well-being of the citizen, with the exception of the category of retirees and social welfare recipients of pensions.”
According to the law, “Based on the provisions of Paragraph II/77 of the Federal General Budget Law No. 13 of 2023 (the tripartite budget), the executive authorities in general and the financial authorities in particular provide due diligence in applying the provisions of the aforementioned article, which concerns the submission of the federal general budget schedules for the year 2025.”.
The file is that the “expenditures, revenues, and hypothetical deficit” tables are “in accordance with the technical and constitutional contexts approved by the table itself for the current fiscal year 2024.”
Salaries Are Late!
Regarding the impact of employee salaries and a possible liquidity crisis: “An observer said: “In all cases, salaries are insured even in the event of a liquidity crisis, but the date of financing and disbursement may be delayed.” He added:
“According to the timings stated in Financial Management Law No. (6) of 2019, the Council of Ministers submits the draft budget before mid-October of each year to the House of Representatives.”
He pointed out that the budget is approved by the House of Representatives in December of each year.
4 Billion Dollars
Yesterday, Sunday, the Central Bank of Iraq’s sales from the hard currency auction for the US dollar during the month of June amounted to more than 4 billion dollars.
During the month of June, during the days in which it opened its auction to buy and sell the US dollar, the Central Bank sold 4 billion and 438 million and 744 thousand and 273 dollars, at a daily rate of 295 million and 916 thousand and 284 dollars.
Foreign remittances amounted to 4 billion 50 million 289 thousand and 273 dollars during the past month, an increase of 90% compared to cash sales that amounted to 388 million and 455 thousand dollars.
The sales were distributed between transfers abroad to finance foreign trade, and cash sales to banks, while the selling price of documentary credits and international settlements for electronic cards reached 1,310 dinars per dollar, while the selling price of transfers abroad and the cash selling price reached 1,305 dinars per dollar. https://observeriraq.net/ما-الموقف-الرسمي-وما-الذي-يخفيه-الدولا/
The Dollar Will Reach 1,600 Dinars.” Exchange Companies Are Moving From Three Axes To Implement Their Demands
Exclusive Today, Monday, the representative of Iraqi exchange companies, Dhia Al-Taie, announced a move on three axes to implement a number of their demands regarding selling the dollar to travelers, while she expected the price of the dollar to reach 1,600 dinars.
“The Central Bank approved a new mechanism that harmed exchange companies in general, after selecting only 4 exchange companies to work in Iraqi airports with the aim of selling dollars to travelers,” noting that “the selected companies are the same as the existing categories.”
He added, “More than a year ago, exchange companies proposed a mechanism to the Central Bank to protect them,
but the Central Bank objected to that mechanism, describing it as intrusive, difficult, and causing confusion,” pointing out that “the mechanism included the possibility of the traveler obtaining the dollar electronically.”
He stated, “There are 1,200 exchange companies, but the Central Bank chose only 7 of them to sell dollars to travelers, 4 of which were at airports, leaving the 1,200 companies that could be outlets for selling dollars to travelers.”
He stated, “We have reached the stage of announcing a strike on the platform,” pointing out that “this measure will raise the price of the dollar in the coming days to 1,600 dinars and more.
The best evidence of this is that 7 days before the mechanism was implemented, the dollar rose to 1,510 dinars.”
He stressed that “there will be a detailed meeting in the presence of a team from the Prime Minister to resolve this issue,” pointing out that “the exchange companies have several demands, and
if they are not implemented, we will announce a strike and demonstrate in front of the Central Bank and submit a complaint to the Parliamentary Finance Committee.”
Representatives Of Exchange Companies In Iraq Announce The Cancellation Of Their Strike
Representatives of exchange companies in Iraq announced, on Monday evening, the cancellation of their strike until further notice. A statement said,
“Representatives of exchange companies in Iraq announce the cancellation of their strike until further notice after meeting with the Prime Minister’s Office and advanced staff at the Central Bank of Iraq.” The statement added,
“And agreeing to solve a group of problems related to exchange companies and find the necessary solutions that support the work of these companies, especially those related to organizing the work mechanism at the airport and border crossings and the administrative, organizational and technical procedures related to them.”
Today, Monday, the representative of the Iraqi exchange companies, Dhia Al-Tai, announced a move on three axes to implement a number of their demands regarding selling the dollar to travelers, while expecting the price of the dollar to reach 1,600 dinars. Al-Taie told Al-Sumaria News ,
“The Central Bank approved a new mechanism that harmed exchange companies in general, after selecting only 4 exchange companies to work in Iraqi airports with the aim of selling dollars to travelers,” noting that “the selected companies are the same as the existing categories.”
https://www.alsumaria.tv/news/localnews/493281/ممثلو-شركات-الصرافة-في-العراق-يعلنون-الغاء-اضرابهم
Provoking Thoughts and Points To Ponder On Adversity:
The human race has had long experience and a fine tradition in surviving adversity. But we now face a task for which we have little experience, the task of surviving prosperity. – Alan Gregg
Adversity reveals genius, prosperity conceals it. – Horace
The virtue of prosperity is temperance; the virtue of adversity is fortitude. – Francis Bacon
In the day of prosperity be joyful, but in the day of adversity consider. – Bible
In victory even the cowardly like to boast, while in adverse times even the brave are discredited. – Sallust
Adversity is sometimes hard upon a man; but for one man who can stand prosperity, there are a hundred that will stand adversity. – Thomas Carlyle
http://famousquotesandauthors.com/topics/adversity_quotes.html
