Iraqi News Highlights Thursday Afternoon 2-16-23
Tlm724 Administrator Bondlady’s Corner
The Dollar Skips Decisions To Contain The Crisis And Records A New Jump
Posted On2023-02-16 By Sotaliraq Baghdad / Hussein Hatem The exchange rates of the dollar are still fluctuating despite the recent decision of the Council of Ministers to amend the exchange rate of the dollar against the dinar, equivalent to 1,300 dinars per dollar. The government of Prime Minister Muhammad Shia’ al-Sudani expects prices to gradually stabilize during the coming days, while noting that fluctuation in the exchange rate cannot be eliminated unless demand is met.
Since the first month of the Sudanese government taking over the administration of the country, the exchange rate of the dollar against the dinar witnessed an upward rise, to exceed 1,500 dinars per dollar before the end of last year.
Since the beginning of this year, the exchange rate of the dollar has witnessed sudden jumps, as it crossed the threshold of 1,600 dinars to the dollar, and it remained between 1,600 during the month of November.
And the financial advisor to the Prime Minister, Mazhar Muhammad Salih, says, “The function of the Central Bank of Iraq and its monetary policy is to ensure monetary stability in Iraq,” noting that “volatility in the exchange rate cannot be eliminated except in the event that demand is met.”
Salih added, “The central bank has adopted a strong monetary policy in favor of the strength of the Iraqi dinar,” noting that “the rise in exchange rates has dealt with inflation.”
He pointed out, “The general level of prices will witness stability, prices will gradually decrease, and things will return to normal.”
Saleh pointed out that “all financial transfers will be made through international banking channels clearly,” adding that “the package launched by the Central Bank allows the transfer to any citizen.”
Saleh explained, “Economic stability is one of the rights of the Iraqi citizen, and whoever contradicts his rights will be subject to legal and judicial accountability.” And he indicated, “The purpose of raising the dollar exchange rates about a year and a half ago was to bridge the financial deficit and debt,” noting that “manipulation in exchange rates affects the public life of the citizen greatly, as happened during the last two years.”
In turn, the rapporteur of the Finance Committee in the former parliament, Ahmed Al-Saffar, says, “Citizens have lost confidence in the Central Bank of Iraq and government measures regarding the exchange rate of the dollar against the Iraqi dinar.”
Al-Saffar added, “The government focuses on small merchants, leaving the big ones who illegally acquired public money.”
He pointed out, “The recent central bank measures are temporary,” adding, “We will remain exposed to shocks repeatedly if the Iraqi economy is not rebuilt, exit from the rentier economy, and alternative solutions away from dependence on imports are developed.”
Al-Saffar pointed out that “linking the fate of citizens to the price of the dollar and imports from abroad, as well as total dependence on oil revenues, is an incorrect procedure.” He explained, “The crisis is not related to the central bank only, and the government must control smugglers and speculators at exchange rates, as well as provide goods in the market and avoid inflation.”
For his part, the researcher and economist, Hammam Al-Shamma, says, “The decision to return the exchange rate to an average level is appropriate because the conditions have been disturbed,” adding, “However, financial speculation will remain within reasonable limits, as it shows the state of the economy and knowledge of the effective exchange rate to move economic factors.”
Al-Shamaa added, “Talking about disengaging the US Federal Reserve is a technical economic issue and means disengaging us from the dollar,” adding, “We hope to convert to the Chinese yen or the Russian ruble, but it is not available because we sell oil in dollars.”
He suggested, “The delay in sending the 2023 budget due to a review of some of its paragraphs, and it may not be issued, and the exchange will remain at a rate of 1/12.”
Al-Shamaa concluded by saying, “The number of employees is not an exaggeration that is being talked about, and the operational budget will be reduced due to necessities and openness to investment.”
It is noteworthy that the two central Al-Kifah stock exchanges in the capital, Baghdad, closed yesterday evening, Wednesday, at 153,000 Iraqi dinars, compared to 100 dollars. LINK
A Slight Decrease In The Exchange Rates Of The Dollar In Baghdad With The Closing Of The Stock Market
Economie Thursday, February 16, 2023 5:13 PM Baghdad / The National News Center The exchange rates of the dollar decreased against the Iraqi dinar, today, Thursday, with the closure of the two main stock exchanges in Baghdad.
The correspondent of the National News Center said, “The central Kifah Stock Exchange closed in Baghdad at 153,000 Iraqi dinars for 100 dollars, while the prices this morning were 154,000 Iraqi dinars for every 100 dollars.”
He added, “The buying and selling prices in exchange shops in the local markets in Baghdad decreased, as the selling price reached 154,000 Iraqi dinars, while the purchase prices reached 152,000 dinars for every 100 dollars.” https://nnciraq.com/187114/
Baghdad And Washington Confirm Their Determination To Continue Working Together To Modernize The Financial System In Iraq
The US-Iraqi Higher Coordination Committee on the Strategic Framework Agreement issued a joint statement after the Iraqi and US delegations met in Washington.
The joint statement stated that “the Iraqi and American delegations held a meeting of the Higher Coordination Committee in accordance with the strategic framework agreement,” noting that “the two delegations renewed their determination to deepen the strategic relationship between the two countries.”
He added, “The meeting focused on economic cooperation, energy sector development and climate change,” noting that “the two sides discussed the challenges facing the Iraqi economy, including the parallel exchange rate markets.”
He pointed out that “the United States welcomed the efforts of the Iraqi government to enact economic reforms,” stressing that “the American delegation renewed its support for Iraq’s continuous efforts to protect the banking system.”
And between, “the two sides affirmed the determination to continue working together to modernize the financial system in Iraq,” noting that “the two delegations confirmed the convergence of views that seek an ambitious agenda for energy independence.”
He pointed out that “the two delegations expressed their agreement that Iraq has a historic opportunity to invest in energy infrastructure initiatives,” stressing that “the two sides decided to accelerate efforts to capture the flared gas.”
He explained, “The American delegation praised Iraq’s commitment to regional electrical interconnection projects,” noting that “Iraq will soon publish a comprehensive government strategy to confront climate change.”
He stressed that “the discussions emphasized the importance of the need for ambitious projects related to solar energy farms,” noting that “the two sides discussed the water crisis in Iraq.”
He continued, “The United States expressed its intention to provide technical assistance to improve water management practices in Iraq, and welcomed the positive developments in relations between the Iraqi federal government and the regional government,” noting that “the United States confirmed that the American private sector is the best in the field of technology.”
He pointed out that “the American delegation announced that the US embassy in Baghdad has gradually begun to provide services for granting visas to non-immigrants,” explaining that “the United States and Iraq are planning to hold meetings of joint coordination committees under the strategic framework agreement.”
Below is the text of the joint statement:
The Iraqi Deputy Prime Minister and Minister of Foreign Affairs, Dr. Fuad Hussein, headed the delegation of the Republic of Iraq, and US Secretary of State Anthony J. Blinken, the delegation of the United States, held a meeting of the Higher Coordination Committee, in accordance with the 2008 Strategic Framework Agreement for the relationship of friendship and cooperation between the United States of America and the Republic of Iraq.
The two delegations renewed their determination to deepen the strategic relationship between the two countries across a full range of bilateral issues for the sake of the national interests of both countries, and their common interests in regional stability.
This meeting is the first meeting of the Supreme Coordination Committee focusing on economic cooperation, energy sector development, and climate change, which is a sign of a mature strategic partnership under the Strategic Framework Agreement. The Iraqi delegation included high-level representatives from the House of Representatives, the Central Bank, the Ministry of Foreign Affairs, and the Ministry of Foreign Affairs. Oil, the Ministry of Planning, the Ministry of Finance, the Ministry of Electricity, the Prime Minister’s Office, Iraq’s Climate Envoy, and the Kurdistan Regional Government.
In addition to the US State Department, the US delegation included the President of the US Agency for International Development, Ms. Samantha Power, the Special Presidential Envoy for Climate Change, Mr. John Kerry, Deputy Secretary of the Treasury Wally Adeyo, the Special Presidential Coordinator for Global Energy and Infrastructure Amos Ho-Schstein, and the Coordinator for Global Anti-Corruption Richard Nephew, and National Security Council Coordinator for the Middle East Brett McGurk, and senior officials from the Department of State, Treasury, Energy, and Commerce.
The two sides discussed the challenges facing the Iraqi economy, including the parallel exchange rate markets. The United States welcomed the Iraqi government’s efforts to enact economic reforms, as well as reforms in the field of monetary policy, modernizing the banking and financial sector, combating corruption, and preventing manipulation of the financial system—measures that would help enhance Iraq’s economic prospects, including strengthening financial and financial markets. Exchange.
The US delegation renewed its support for Iraq’s continuous efforts to build technical capabilities and implement international standards to protect the banking system from financial crimes, money laundering and terrorist financing.
The two sides also affirmed their determination to continue working together to modernize the financial system in Iraq in order to improve the conditions of the Iraqi people. The US and Iraqi delegations confirmed the convergence of views that pursuing an ambitious agenda for energy independence is essential to maximizing Iraq’s economic prosperity and protecting its sovereignty.
The two delegations expressed their agreement that Iraq has a historic opportunity to invest in energy infrastructure initiatives designed to improve electricity services for the Iraqi people, secure energy self-sufficiency for Iraq, and mitigate environmental damage to both the global climate and Iraqi public health. To this end, the two sides decided to accelerate efforts to capture the flared gas, Modernizing the natural gas distribution infrastructure, reducing methane leakage, regional connectivity to the Iraqi electricity grid, modernizing the electricity infrastructure in Iraq, and exploring renewable energy opportunities.
The American delegation praised Iraq’s commitment to regional electrical interconnection projects with Jordan and Saudi Arabia, and the GCC Interconnection Authority. The two countries stressed the importance of combating climate change and adapting to it, and the Iraqi delegation stated that Iraq will soon publish a comprehensive government strategy to confront climate change.
The two sides also affirmed their commitment to accelerating the implementation of flared gas capture projects to achieve the disposal of traditional gas burning by 2030, to achieve the global pledge on methane, and the United States reviewed its plan to expand climate change programs in Iraq, after it provided Iraq with more than $ 1.2 billion in development aid over the past five years. The discussions also emphasized the need for ambitious solar farm projects, and the establishment of a regulatory framework to attract investment in renewable energy.
The two sides also discussed the water crisis in Iraq, and the United States expressed its intention to continue its technical assistance to improve water management practices in Iraq. The United States called on Iraq to nominate experts in water management to participate in exchange programs with US leaders in this field, and the two delegations stressed the importance of benefiting from modern technologies in groundwater management and irrigation efficiency. The United States welcomed the positive developments in relations between the Iraqi federal government and the Kurdistan Regional Government and the ongoing negotiations regarding the 2023 federal budget and hydrocarbons law.
The United States assured the Iraqi delegation that the American private sector is the best in the field of technology and its unique ability to meet the energy challenges in Iraq. The Iraqi-American Business Council at the American Chamber of Commerce also hosted a round table for the Iraqi delegation with 40 American companies and industry leaders who are experts in the field of gas capture, modernization of electricity infrastructure, and renewable energy sources. After this event, the Chamber of Commerce announced that it would lead two US trade missions to Iraq in June to explore investment opportunities.
In addition, the two delegations indicated the intention of the Office of the United States Trade Representative and the Iraqi Ministry of Trade to begin planning for the meeting of the Trade and Investment Framework Agreement Council in 2023. This agreement between the United States and Iraq serves as a forum for resolving trade obstacles, and promoting investment and bilateral trade opportunities between the two countries. .
The United States and Iraq confirmed that they plan to hold meetings of the Joint Coordination Committees under the Strategic Framework Agreement, and additional meetings of the Higher Coordination Committee, to follow up on investments in the field of energy, economy, and climate-related discussions held during the meetings of this Higher Coordination Committee. The American and Iraqi delegations affirmed their determination to strengthen the strategic relationship between the two countries. https://www.radionawa.com/all-detail.aspx?jimare=33439
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