Sunday Morning Iraq Economic News Highlights 8-13-23
American Attempts And Iraqi Solutions… The Dollar Is Between High And Low, And Government Measures
-Information / Baghdad…It became clear to everyone the impact of US banking policies towards Iraq, especially the banking sector, in an attempt to cause confusion in the movement of the commercial market and push the government into direct confrontation with the people, after the rise in most prices, although the government was able to take a decision to reduce the exchange rate after it crossed the barrier of 175 thousand dinars for every 100 dollars.
In turn, the Sudanese government drew up a new financial policy, setting the official exchange rate at 130,000 dinars for every $100.
Despite this, however, the US measures were behind the continued rise in the exchange rate in terms of restricting Iraqi banks’ access to hard currency under the pretext of smuggling, speculation and the black market.
The representative of the Sadiqoun bloc, Muhammad al-Baldawi, told Al-Maalouma that “America is taking retaliatory measures against Iraq after its move towards resolving the electricity crisis, bartering oil with Iranian gas, and getting out of the dollar’s impasse.”
He added, “Washington seeks to impose its opinion and be dominant over decisions in Iraq, as it took retaliatory measures that caused a rise in the exchange rate of the dollar in the local markets, thus increasing the prices of goods, commodities, and foodstuffs, and causing harm to the citizen.”
Al-Baldawi pointed out that “the American side seeks, through its measures, to be in control of Iraq and take whatever decisions it wants, and unlike it, it resorts to using some pressure tricks to achieve its interests and harm Iraq and its people.”
On the other hand, a member of the Al-Fateh Alliance, Ali Al-Zubaidi told Al-Maalouma, that “Washington lacks a lot of credibility in the treaties and covenants that are agreed upon, as there is no fairness in continuing to deposit the country’s money in the US Federal Bank.”
He explained, “Iraq will end the dollar crisis if it gets rid of the hegemony imposed by the United States of America on the money for selling oil, especially since Washington imposes Chapter VII restrictions on Iraq verbally in order to achieve its own interests.”
On the other hand, the economist, Safwan Qusai, confirmed to Al-Maalouma, that “the money changers in Iraq receive an appropriate commission when buying and selling dollars, which requires them to adhere to their commission, at a time when there must be a financial policy that is complementary to the central bank in its policy related to selling dollar in the parallel market.
He added, “There is an urgent need to control border crossings, as well as reduce the volume of imports without the presence of external money transfers, in addition to pushing banks towards a flexible banking system and relying on documentary credits, so that all merchants are allowed to deal with reliable suppliers.” LINK
A “Noticeable” Decline In Cash Sales At The Iraqi Central Auction
2023-08-13 02:59 Shafaq News/ Cash sales decreased in the auction today, Sunday, to 22 million dollars.
Shafaq News agency reporter stated, “The Central Bank sold today, during its auction for buying and selling US dollars, 207 million, 684 thousand and 288 dollars, which the bank covered at a basic exchange rate of 1,305 dinars, per dollar for documentary credits and international settlements of electronic cards, and at a price of 1,310 dinars per dollar for external transfers.” At a price of 1310 dinars per dollar in cash.
Our correspondent added that most of the dollar sales went to boost balances abroad in the form of (remittances, credits) at 184,974,288 dollars, while the rest of 22,710,000 went in the form of low cash sales compared to last Thursday, which amounted to 36 million. and $360,000.
Our correspondent indicated that the number of banks that bought cash dollars amounted to 9 banks, while the number of banks that responded to requests for strengthening balances abroad reached 17 banks, while the total number of exchange and mediation companies participating in the auction was 54 companies. LINK
The High Price Of The Dollar In Iraq
SUNDAY, 08-13-2023, TAYSEER AL-ASADI The exchange rates of the dollar against the Iraqi dinar in the local markets today, Sunday The prices are as follows: Selling prices 153,500 dinars per 100 dollars. The purchase price is 151,500 dinars per 100 dollars. Yesterday, the exchange rates of the dollar in the local markets recorded 153,250 dinars per 100 dollars https://non14.net/public/159291
URGENT After A Long Wait, The Ministry Of Finance Finally Publishes The Instructions For Implementing The Budget
Time: 08/13/2023 Read: 2,249 times {Economic: Aflat News} The Ministry of Finance has published instructions for implementing the Federal Financial Budget Law, “calling” all ministries, governorates, and unrelated entities to review the ministry to receive the instructions.
And a statement by the ministry, of which {Al Furat News} received a copy, stated that: “In view of the approval and publication of the Federal General Budget Law of the Republic of Iraq No. (13) for the fiscal years (2023, 2024 and 2025) in the official Iraqi Gazette issued in June 2023 with issue (4726),
The Ministry of Finance invites all ministries, governorates, agencies and entities not associated with the Ministry to attend the headquarters of the Ministry of Finance / Budget Department, Budget Preparation Department, for the purpose of receiving a copy of the instructions for implementing the general budget and the instructions for implementing the planning budget for the public sector and self-financed agencies and companies.
It is noteworthy that the House of Representatives voted on the 12th of last May on the federal general budget law as a whole, while the two federal governments and in the Kurdistan region submitted appeals to the law, and the Federal Court recently received some of them and accepted others. LINK
A Deputy Reveals His Evidence Of Dollar Smuggling After A Request From The Prime Minister’s Office
[ltr]2023.08.13 – Baghdad – people Representative Muhammad Nuri Aziz responded, on Sunday, to a request from the Prime Minister’s Office, to reveal its evidence about the smuggling of dollars into Iran.
Nuri said in a post, followed by “NAS” (August 13, 2023), that “after the recent statements of Representative Muhammad Nuri Aziz on the issue of dollar smuggling, the Prime Minister demands that Representative Muhammad Nuri provide evidence about his statements, as the evidence is mentioned in the text of the Prime Minister’s speech in previous encounters.
He added, “One of the most important evidences is that the heroes of the National Security Apparatus were able to perform qualitative operations during which they managed to arrest dollar smuggling gangs, and very large sums of money were seized, more than 14 million dollars, 5 billion Iraqi dinars, check books in Baghdad governorate, and 300 million Iraqi dinars.” in the governorates of Basra, Diyala and Muthanna.
Earlier, on Thursday, the Prime Minister’s office sent a letter to MP Muhammad Nuri al-Khuzaie, asking him to provide him with the information he talked about about the smuggling of dollars into Iran, via a satellite channel. https://www.nasnews.com/view.php?cat=112618
The Dinar Is In The Central Recovery Rooms.. And Accusations Against The Americans Of Creating Crises
Aug 12 19:58 The official currency of the Republic of Iraq, and one of the historical manifestations and legacy that accompanied Mesopotamia for more than 90 years, proved its strength in the global economy, but in one way or another it began to decline and reached “unenviable” stages.
The dinar, which was previously compared to world currencies, reached the path of strength overnight and found itself ahead of many countries, as it began to be used in 1932, i.e. during Iraq’s independence from Britain, and was replaced by the Indian rupee at a rate of 1 dinar = 13 rupees.
Later, he decided to link it to the US dollar without changing its value at a rate of 1 dinar = 2.8 dollars, and in 1971 Washington took a decision to devalue its currency by 7.9%, and in 1973 it decreased by 10% to become $3.3778, and it fell to 3.2169. $, which remained in circulation until the second Gulf War in 1991.
And after 2003, the local currency in Iraq began to decline day after day, which led to its reaching significantly low rates against the dollar, so the Central Bank’s procedures did not help it, and America’s policy towards the Iraqi economy “made matters worse.”
The economic expert, Abd al-Rahman al-Mashhadani, explained the reasons for the instability of the Iraqi dinar in the local markets compared to other Arab currencies, while confirming the existence of a large discrepancy between import and export in the country’s markets.
Al-Mashhadani said, in an interview with Al-News Agency, that “the central banks of the Gulf countries, whether they are Jordan, Kuwait or even Saudi Arabia, have taken a decision to price their local currency, which depends on a basket of currencies, including Iraq, as bulletins previously appeared in the newspaper in the seventies.” of the last century, measured on the basis of this basket.”
And he adds, “All world currencies are attributed to the dollar, but the economies of these countries are stable and there is no problem, and the difference is obtained at the prices of market materials, that is, inflation occurs and the rates of rise increase, which happened in the Emirates, Saudi Arabia and Kuwait as well.”
And the economist explains, “These countries do not deal in dollars in the markets at all, given that all financial transfers are obtained in the local currency only, and this is one of the reasons for the stability of the market,” noting that “Iraq was unable to control this situation completely.”
Al-Mashhadani points out, “The other matter is trade, that is, import and export, without relying on the government sector in particular. In Iraq’s markets, as a result of the large discrepancy between import and export, it is natural that there will be a great demand for dollars.”
And he confirms, “The Iraqi dinar is linked to the dollar before 2003, that is, from the Kuwaiti war in 1991, given that the market has always fed the import of the private sector, so there will be no stability.”
The Dinar Is In The Central Recovery Rooms.. And Accusations Against The Americans Of Creating Crises
In turn, a former member of the House of Representatives, Jassem Al-Bayati, personified the reasons for the weakness of the dinar currency in the Iraqi markets, while accusing America of playing an “inappropriate” game with Iraq.
Al-Bayati mentioned, in an interview with Al-News Agency, that “the weakness of the dinar and its instability in the Iraqi markets, especially in recent times, has many reasons behind it,” noting that “the first reason is the decision to re-exchange the dollar against the dinar from 1470 to 1320.”
Al-Bayati explains: “There is no country that takes such a step and reduces the dollar by such a large percentage,” adding: “The reduction stages are supposed to be consecutive, starting from 1460 – 1420 – 1400, and so the decline is consistent.”
And he added, “We are now in a state of confusion, as we cannot obtain dollars in the local markets, not even from bank accounts,” noting that “the dinar is going through a period of instability.”
And the former member of the House of Representatives points out that, “The other thing behind the instability of the dinar is the connection of the issue with America, which is playing an inappropriate game with Iraq.”
And Al-Bayati shows that “the decision to reduce the dinar is governmental and it bears its responsibility,” noting that “”the central bank’s measures to restore the strength of the Iraqi dinar did not bear fruit, and things may be complicated after more.””
He continued his speech, saying: “The decision to return the dollar to 1,320 dinars greatly affected the financial budget, and nearly 10 trillion dinars were sacrificed,” noting that “price speculators and those close to America and neighboring countries supporting Washington are the ones who obtained these 10 trillion through Buying the dollar at 1320.
“””The sources of countries’ strength in the economic field are determined by several factors, foremost of which is the national currency, which requires elaborate measures to maintain its strength internally and externally, and the basis of these measures is to activate the private sector, expand the import sector and reduce exports.”””
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They on many ocassions save the best for last. The National Currecny requires elaborate measurses to maintain strengh in value internally and externally, on the basis of the measures to be taken will activate the private sector and expand the impport and reduce exports. I may have this wrong, but, to build out the country, they need to do just as it is being stated.
They need to take extreme measures to get the imports increased and the exports reduced. Why? Beacuse, it is far cheaper to re-build the country with strength in the national currency. It is the foremost item that is now needed. The can later after an infrastucture build out in the private sector, they’ll be able to adjust to the markets as need be once exports become more competitive.
Lets keep in mind the are going to build new industrial cities, new residential ones too. They both need supporting operational aspects. Food, energy, lodging, roads, etc.. etc.. So, this educational piece is support that there is a push to get to the market economy interlinked with the Global Financial System they plan to do now. Not later.. Wow.. imo
This is the type of data and analysis that is in Patreon with Militia Man & Crew. The data that is provided so that you can be the judge is off the charts in content. Likely as to be as good as it gets.. Check them out this weekend the DISCORD chat room has packed with so many bright minds and wonderful patrons.. See you there, tonight even. Everyone is welcome. imo ~ MM
