Tuesday Evening Iraq Economic News Highlights 8-8-23
Financial Experts Call For The Adoption Of The Slogan {Our Dinar}
Economical 2023/08/08 ussein Thaghb Specialists in the financial affairs believe that the return of the exchange of the dollar to its normal rates requires the adoption of the slogan “Our Dinar”, calling at the same time that the efforts of government institutions, the private sector and the media join forces to support dealing in dinars exclusively, and to leave dollar transactions.
Financial affairs expert Suha Al-Kafa’i confirmed to “Al-Sabah” that “the stability of exchange rates in the local market requires participatory solutions between the citizen and the merchant, as the reality of transactions needs to be converted into the Iraqi dinar instead of the dollar for all transactions without exception, and this will reduce the demand for the dollar, as The trader in dinars goes to the bank to obtain dollars for the purpose of importing at a price of 1320 dinars for one dollar, and from here it is possible to reduce the demand for dollars in the parallel market.
Al-Kafaei stressed that “the private sector has flexibility in providing solutions that help achieve stability in exchange rates,” noting that “the matter requires achieving integration and cooperation between the private sector and the central bank.”
Iraqi.”
And she said, “The citizen is required to refrain from buying any commodity in dollars, and here he must go to buy goods from a similar merchant who sells in dinars, and thus contribute to reducing the demand for dollars, as this mechanism leads to all merchants directing to deal in dinars, and contributes to the non-rise in prices, as The merchant will go to the bank to obtain the dollar at a price of 1320 dinars against one dollar, to cover his imports through the approved mechanism.
And she stressed that “in this way, the two most important elements will abandon dealing in dollars, the citizen who has many and varied transactions, as the country’s population exceeds 40 million people, and the merchants who represent a wide segment that leads the economy whose imports represent 95% of the need of the local market, and when dealings tend to To the dinar, we tend to achieve stability in exchange rates, provided that we refrain from buying any need in dollars.”
And she warned of “the importance of the Ministry of Commerce raising the slogan of dealing in dinars, and escalating cases of education through seminars, conferences and the media, so that dealings are in dinars exclusively, in support of the government’s measures to achieve stability in the exchange rates of the dollar against the dinar and at the official rate, and there can be an active role for the development department.” The private sector and the Department of Import and Export in the Ministry of Commerce, from here a campaign must be launched to deal in dinars exclusively.
And she emphasized, “The inevitability of concerted efforts by the ministries, along with the media, to move towards dealing in dinars and make dealing in dollars between the merchant and the bank exclusively for the purposes of financial imports,” noting that “the business family realizes that dealing at the official rates of the exchange rate is more beneficial and profitable.”
Al-Kafaei pointed out that “this mechanism will reduce dealings in the parallel market, which offers dollars at higher prices than the official price of 1,320 dinars against the dollar.”
the one”.
In turn, the specialist in economic affairs, Silwan Al-Nuri, stressed that “it is imperative that we turn to dealing in local dinars inside the country, and that mechanisms be agreed upon between the private sector that offers goods and services and the Central Bank of Iraq be adopted, and that all challenges that prevent the merchant from going to the banking system to obtain dollars to cover its foreign imports.
He pointed out that “Iraq has a large volume of dealings with various countries of the world, and there are challenges in dealing that need a serious pause to address them through continuous meetings that bring together the concerned parties, to create a dealing policy that regulates the reality of the local market, and maintains its stability, and the dinar is for internal transactions, and the dollar is for dealings.” foreign affairs and from its official sources, and not to go to the parallel market to obtain dollars.
He stressed that “limiting transactions in dinars represents an important step that raises the value of the dinar and takes the market to a stage of stability.” https://alsabaah.iq/81939-.html
‘Our Dinar’.. A Campaign To Return The Exchange Rate Of The Dollar To Its Normal Rates
2023.08.08 – Baghdad – Nas Specialists in the financial affairs believe that the return of the exchange of the dollar to its normal rates requires the adoption of the slogan “Our Dinar”, calling at the same time that the efforts of government institutions, the private sector and the media join forces to support dealing in dinars exclusively, and to leave dollar transactions.
Financial affairs expert Suha Al-Kafaei confirmed in an interview with the official newspaper, followed by “Nass” (8 August 2023): “The stability of exchange rates in the local market requires participatory solutions between the citizen and the merchant, as the reality of transactions needs to be transformed into the Iraqi dinar instead of the dollar for all transactions without An exception, and this will reduce the demand for the dollar, as the trader in dinars goes to the bank to obtain the dollar for the purpose of import at a price of 1320 dinars for one dollar, and from here the demand for the dollar can be reduced in the parallel market.
Al-Kafaei stressed that “the private sector has flexibility in providing solutions that help achieve stability in exchange rates,” pointing out that “the matter needs to achieve integration and cooperation between the private sector and the Central Bank of Iraq.”
And she said, “The citizen is required to refrain from buying any commodity in dollars, and here he must go to buy goods from a similar merchant who sells in dinars, and thus contribute to reducing the demand for dollars, as this mechanism leads to all merchants directing to deal in dinars, and contributes to the non-rise in prices, as The merchant will go to the bank to obtain the dollar at a price of 1320 dinars against one dollar, to cover his imports through the approved mechanism.
And she emphasized that “in this way, the two most important elements will abandon dealing in dollars, the citizen who has many and varied transactions, as the country’s population exceeds 40 million people, and the merchants who represent a wide segment that leads the economy whose imports represent 95% of the local market’s need, and when transactions turn to Dinar We tend to achieve stability in exchange rates, provided that we refrain from buying any need in dollars.
And she warned of “the importance of the Ministry of Commerce raising the slogan of dealing in dinars, and escalating cases of education through seminars, conferences and the media, so that dealings are in dinars exclusively, in support of the government’s measures to achieve stability in the exchange rates of the dollar against the dinar and at the official rate, and there can be an active role for the development department.” The private sector and the Department of Import and Export in the Ministry of Commerce, from here a campaign must be launched to deal in dinars exclusively.
And she emphasized, “The inevitability of concerted efforts by the ministries, along with the media, to move towards dealing in dinars and make dealing in dollars between the merchant and the bank exclusively for the purposes of financial imports,” noting that “the business family realizes that dealing at the official rates of the exchange rate is more beneficial and profitable.”
Al-Kafaei pointed out that “this mechanism will reduce dealings in the parallel market, which offers dollars at higher prices than the official price of 1,320 dinars for one dollar.”
In turn, the specialist in economic affairs, Silwan Al-Nuri, stressed that “it is imperative that we turn to dealing in local dinars inside the country, and that mechanisms be agreed upon between the private sector that offers goods and services and the Central Bank of Iraq be adopted, and that all challenges that prevent the merchant from going to the banking system to obtain dollars to cover its foreign imports.
He pointed out that “Iraq has a large volume of dealings with various countries of the world, and there are challenges in dealing that need a serious pause to address them through continuous meetings that bring together the concerned parties, to create a dealing policy that regulates the reality of the local market, and maintains its stability, and the dinar is for internal transactions, and the dollar is for dealings.” foreign affairs and from its official sources, and not to go to the parallel market to obtain dollars.
He stressed that “limiting transactions in dinars represents an important step that raises the value of the dinar and takes the market to a stage of stability.” https://www.nasnews.com/view.php?cat=112331
Securities Commission: The Rise In The Exchange Rate Of The Dollar To 2000 Dinars Is Unlikely
August 8, 2023 Baghdad / Obelisk Al-Hadath: The head of the Iraqi Securities Commission, Faisal Al-Haimus, ruled out the rise in the exchange rate of the dollar to 2,000 dinars, noting that the exchange rate of the dollar would begin to decline after fluctuation for a short period.
The head of the Iraqi Securities Commission, Faisal Al-Haimus, said, according to Rudaw Network, that the issue of the exchange rate of the dollar “relates exclusively to the Central Bank of Iraq,” adding that preventing the fourteen banks from entering the platform to buy the dollar has an impact on the nature of the exchange rate against the dinar.
He stated that there are “governmental efforts by the Central Bank and the Prime Minister to consolidate the banking sector,” noting that it was represented by launching a campaign to arrest price speculators.
Faisal Al-Haimus, explained that 18 Iraqi banks have been restricted and banned from entering the dollar purchase platform out of about 71 banks in the country, indicating that the procedure is not a punishment, but rather a consolidation of the banking process in Iraq.
He pointed out that the US measure is a “temporary ban,” hoping that the covered banks will “solidify their business and comply with dollar purchases for legitimate purposes and engage in legitimate trade, and review their procedures in order to resume their activity in the future.”
The head of the Iraqi Securities Commission confirmed the presence of people who “benefit from causing panic among people with the rise in the price of the dollar against the dinar in the coming period,” describing the rumors that the price of one dollar has reached two thousand dinars as “an exaggeration.”
Regarding money smuggling to neighboring countries, he considered this operation “one of the reasons that led to distorting the image of the Iraqi banking sector, and as a result, the 14 banks were restricted.”
Al-Haimus pointed out that the recent measures are “required,” attributing this to “reducing the emergence of illegal activity through smugglers.”
He continued, “The recent package launched by the Central Bank regarding the entry of small merchants and others, measures that will help reduce the gap between the official exchange rate and the black market.”
The head of the Iraqi Securities Commission, stated that there is an initiative from the Iraqi Trade Bank to “enable small merchants to obtain dollars by submitting official documents,” ruling out the possibility of violations.
“The process of legal merchants obtaining foreign currency to import their requirements of goods, and the presence of a foreign company contracted by the Central Bank to audit invoices,” will lead to “providing sound and grounded funding,” according to Faisal al-Haimus.
He added that he does not agree with saying, “The number of beneficiaries from the platform from the merchants of the Kurdistan Region is small, because all the operating banks entering the platform are in the Kurdistan Region and the rest of the governorates of Iraq, and all this indicates that there are a large number of merchants entering the platform daily.”
He pointed out that the Central Bank “sells between 200 to 220 million dollars a day, and they are a large number, which shows that (the bank) is the legitimate outlet that is used to meet the need of merchants to buy products from abroad and import them into Iraq.”
Regarding the repercussions of preventing 14 banks from dealing in dollars, he said that it “led to an increase in the exchange rate of the dollar against the dinar, and this is the result of the surprise that occurred and the rumors that were previously reported,” referring to “the drop in the exchange rate of the dollar in the last two days against the Iraqi dinar.”
Faisal Al-Haimus expressed his belief that “there is great cooperation between the Central Bank, the US government, the US Treasury and the Federal Bank to control this situation.”
The head of the Iraqi Securities Commission expressed his optimism about the decline in the exchange rate of the dollar, saying that “the rise (exchange rate of 100) dollars to 200 thousand dinars is unlikely.”
And he went on, “There will be fluctuation for a short period of time,” stressing that “the measures taken by the Central Bank will contribute to reducing the gap, and I believe that we will start a gradual decline, not an increase” in the dollar exchange rate.
Regarding the role of the Securities Commission, he indicated that “its supervisory role is on the Iraqi Stock Exchange, and we supervise it and its trading on a daily basis and try to advance it, and there are efforts to open branches of the Iraqi Stock Exchange in all governorates, including in the Kurdistan Region.”
In this context, he referred to the visit of a joint delegation from the Securities Commission and the Iraq Stock Exchange to Sulaymaniyah to “arrange the establishment of a trading hall in Sulaymaniyah, and we will follow up these efforts in order to be present” in the Kurdistan Region and serve its citizens in the field of trading in “stocks and bonds.”
Regarding a branch in Erbil, he said: “We granted the license to the Erbil Stock Exchange in 2014, and the concerned authorities in the Kurdistan Region took the initiative to establish the Erbil Stock Exchange Company,” noting that the events in Mosul and ISIS “delayed the establishment of this market, and we are still in contact with the brothers in Erbil, and the place needs to be worked with by the Kurdistan Regional Government.” https://almasalah.com/archives/61903
Budget Instructions Come Into Effect
The first 2023/08/08 Muhammad al-Ansari Yesterday, Monday, the Ministry of Justice announced that the federal general budget for three years had entered into force, and the Director General of the Iraqi Facts Department in the ministry, Hanan Munther Nassif, stated that Instructions No. (1) for the year 2023, related to facilitating the implementation of the Federal General Budget Law of the Republic of Iraq for the fiscal years, had been published. (2023/ 2024/ 2025) No. (13) of 2023 in the Official Gazette.
Nassif explained that “Instructions No. (1) for the year 2023 are considered effective retroactively from the date 1/1/2023,” indicating that “the instructions have entered into force.”
In addition, the Federal Supreme Court decided, yesterday, Monday, to reject some appeals in form related to the unconstitutionality of articles in the budget law.
And the court stated, in a statement, that it had ruled to dismiss the plaintiffs’ case in form in (6) cases related to challenging the constitutionality of some articles of Law No. 13 of 2023, the Federal General Budget Law of the Republic of Iraq for the fiscal years 2023/2024/2025.
And it indicated that the ruling’s response came based on the provisions of Article 22 of the Internal Regulation No. 1 of 2022 and the significance of Article 19 thereof, because the plaintiffs are not among the persons mentioned in the aforementioned article who have the right to challenge the constitutionality of the budget law and charge them with expenses, fees and attorney’s fees, and the rulings were issued by agreement in full. And binding on all authorities, and I understand publicly on 7/8/2023.
Earlier on Monday, the Federal Supreme Court announced the resolution of the Kurdistan Regional Government’s appeal to the budget law.
The media of the Federal Supreme Court said, in a statement, that the court considered today the case No. (168 / federal / 2023) filed before it by the plaintiff (the President of the Kurdistan Regional Government / in addition to his job) against the defendant (the Speaker of Parliament / in addition to his job) regarding the appeal. Pursuant to Articles of Law No. 13 of 2023 (the federal general budget of the Republic of Iraq for the fiscal years 2023, 2024, and 2025).
The statement added that the Supreme Court issued its final and binding decision for all authorities, which includes the ruling on the unconstitutionality of the phrase (and with the approval of the Federal Prime Minister) mentioned in Article (11 / first) and the phrase (and in the event that the parliament cannot be dissolved to take the necessary decision) mentioned in Article (13 / Seventh). ) of the law.
The court decided to dismiss the case regarding the challenge to the constitutionality of articles (2/ first / 5 / b), (11 / second), (12 / second / a, b, c, d, e) and (13 / eighth / b) of the law. .
The Federal Supreme Court also announced the resolution of the federal government’s appeal to the budget law.
Its media said in another separate statement: The Federal Supreme Court considered the case No. (153 / Federal / 2023) filed before it by the plaintiff (Prime Minister / in addition to his job) against the defendant (Speaker of Parliament / in addition to his job) regarding the appeal against articles of the law. No. (13) for the year 2023 (the federal general budget of the Republic of Iraq for the fiscal years 2023, 2024, and 2025).
And it issued its final and binding decision for all authorities, which includes the ruling that the phrase (exclusively) contained in Article (2/first/8/c/6) is unconstitutional, and the phrase (at his request) contained in the last part of Article (16/second), and Article (20/ Sixth), Article (28 / Fourth / A), Article (57 / First / C), Article (70 / Second), and Article (72) of Law No. (13) for the year 2023 (the federal general budget of the Republic of Iraq for the fiscal years 2023 2024, 2025).
The decision also included a judgment dismissing the plaintiff’s case regarding the challenge to the constitutionality of Articles: (28 / fourth / b), (62 / fourth), (63 / third), (65 / second), (71) and (75) of the above law. https://alsabaah.iq/81966-.html
