Economical    Number of readings: 334 Baghdad / NINA / Mazhar Muhammad Saleh, advisor to Prime Minister Muhammad Shia al-Sudani for economic affairs,

denied the existence of a problem with cash flow in the Iraqi currency.

Mazhar Muhammad Saleh said, according to Rudaw Media Network:

“There is no problem with liquidity at all because it is covered by foreign currency,” indicating that

“the mechanism for obtaining cash liquidity is that oil sales are converted into US dollars, and

when the government needs dinars for internal exchange, oil sales are exchanged for dollars.”

“It goes to the issuing bank, which is the central bank, to give it the currency.”

He pointed out that  “the central bank, with the aim of maintaining market stability, sells foreign currency to the market through the currency sale window and auction, to withdraw liquidity a second time and repeat it again so that there is a natural growth in the exported currency.”

Mazhar Muhammad Salih noted that,   “In this case, when the government wants liquidity in the Iraqi dinar, the cash issuance increases, that is,

instead of absorbing it from the market, a new issuance occurs, and

this is what led to a jump in the exported currency, but

there is no problem with that because it is 100% covered.” /End H

https://ninanews.com/Website/News/Details?key=1146399

Saleh: There Is No Problem With Liquidity At All, And What Happened In The American Markets Requires Caution

Read: 572 times  {Economic: Al-Furat News} The financial and economic advisor to the Prime Minister, Mazhar Muhammad Saleh, denied that there was a problem with cash liquidity in the Iraqi currency.  Saleh said in a press statement,

“There is no problem with liquidity at all because it is covered by foreign currency,” indicating that

“the mechanism for obtaining cash liquidity is that oil sales are converted into US dollars, and

when the government needs dinars for internal exchange, oil sales are exchanged for dollars and go to a bank.” The monetary issue that is the central bank to give it currency.”  He pointed out that

“the central bank, with the aim of maintaining market stability,

sells foreign currency to the market through the currency sale window and auction, to
withdraw liquidity a second time and
then repeat it again so that there is a natural growth in the exported currency.”

As for the size of the monetary supply, Saleh explained,

“There has been an increase in liquidity within a year, as the issued currency has become more than 100 trillion dinars, after it was 80 trillion dinars,” stressing that

“these surges have no effect as long as they are covered by foreign currency.”

The financial advisor to the Prime Minister believes that the world’s economic circles were surprised by sharp fluctuations and declines in the US stock market amid a wave of panic over fears about a possible recession in the largest economy in the world, and that

“these declines were built on a combination of local and global economic factors that led to weak investor confidence in the performance of… The American economy, and

if the situation continues for six continuous months, the recession will turn into a major depression that will hit all the world’s economies.”  Saleh pointed out,

“The US Energy Information Administration previously announced that it expects average prices to reach about $89 per barrel for the rest of 2024,

but there is a gradual decline in global oil prices, which has begun to coincide with the decline in the value of financial assets in the American markets, especially the decline in oil.”

The signal is (Brent crude), which ranges at about $76 per barrel in futures contracts after it reached approximately $88 per barrel last June, which requires more caution and economic calculation.”
https://alforatnews.iq/news/صالح-لا-مشكلة-بالسيولة-اطلاقاً-وما-حدث-في-الأسواق-الامريكية-يستوجب-الحذر

Leaks About The Dismissal Of The Governor Of The Central Bank Of Iraq: The Hidden Reasons And Implications

Dismissal of the Governor of the Central Bank of Iraq: Financial disputes or a political conspiracy?

Al-Independent/ – Informed sources reported that the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, faces imminent dismissal in the coming days, not because he has reached the legal age as previously thought, but because of his opposition to financing projects and loans worth millions of dollars provided by the Sudanese government.

The scene became more ambiguous as Al-Alaq remained silent and refused to answer questions from the media.

According to a source who requested anonymity to Al-Mustaqila’s correspondent, Al-Alaq strongly opposed the financial arrangements that included financing huge projects and loans from the Sudanese government, and

this position appears to have been the main factor behind the moves to remove him from his position.

The sources have not yet revealed precise details about the type of these projects or loans, but the large amounts associated with them have sparked disagreements between Al-Alaq and the Iraqi government.

The same source indicated that the potential replacement for Ali Mohsen Al-Alaq’s position is already ready, and

he is a person who is expected to quickly take over the position once it is vacated.

It is expected that the replacement will follow policies in line with the current government’s trends, which may explain the speed of the decision to dismiss.

In a related context, some media and political sources issued warnings to the Prime Minister regarding the influence of a group of personalities or parties on government decisions related to the financial sector.

The warnings indicated the need to be wary of these individuals and their potential impact on monetary and financial policy in Iraq.

The government of Muhammad Shiaa Al-Sudani is accused of corruption, even though Al-Sudani was a critic of the government of Mustafa Al-Kadhimi.

However, his rule witnessed an increase in corruption and its penetration into the joints of the state.

One of the controversial decisions during his reign was to reduce the exchange rate of the dollar against the dinar, which caused losses to the state budget exceeding 15 billion dollars.  https://mustaqila.com/علي-محسن-العلاق/