Iraqi News Saturday Morning Economic News

Saturday Moirning Iraq Economic News Highlights 1-28-23


He Collected 80 Signatures To Hold An Emergency Session Of Parliament Regarding The Rise In The Price Of The Dollar


Today, Saturday, a parliamentary source said that a number of parliamentarians had collected signatures to hold an emergency session regarding the rise in dollar exchange rates.


The source said, “A number of parliamentarians collected more than 80 signatures for the purpose of holding an emergency session to find out the repercussions of the high exchange rate.”


300 Thousand Counterfeit Dollars Were About To Spread In The Iraqi Market


Money  and business   Economy News-Baghdad  On Saturday, the Iraqi National Security Service announced the arrest of a person in possession of 300,000 counterfeit US dollars in Nineveh Governorate.


The agency said in a statement today that its detachments in western Nineveh, after obtaining judicial approvals, were able to arrest an accused person who was practicing counterfeiting of money and red-handed while selling counterfeit dollars, as he was caught in possession of (300) thousand dollars that he was trying to sell to citizens and local markets.


According to the statement, the accused’s statements were duly recorded and referred, along with the seized items, to the competent judicial authorities to take the necessary measures against him in accordance with the law.


Iraqi Parliamentarians: There Are No Solutions To The Dollar Crisis Except With The Commitment Of The American Platform, And The Matter Requires External Efforts


2023-01-28 03:06   Shafaq News/ A member of the Parliamentary Finance Committee, Jamal Ahmed Koujar, considered, on Saturday, that any government measures to address the crisis of the rise in the exchange rate of the dollar against the dinar are “useless” without adhering to the American platform imposed by the United States on Iraq.


Cougar told Shafaq News agency that all governmental solutions and measures to end the crisis of the rise and fluctuation of dollar prices will not work without negotiating with the United States and adhering to the platform it imposed on the movement of the dollar to and from outside Iraq by any other party.


He added that “the government can resolve the crisis with the American side by postponing the work on the platform,” and at the same time, adhering to it is difficult.


Cougar stressed that the spiral of the crisis continues, regardless of the government measures or announced treatments.


On the fact that some neighboring countries and regional countries agreed to strike the dollar and adopt their local currencies in dealings with other countries, the member of the Parliamentary Finance Committee said, “No country or party can strike the dollar.”


Last Monday, the head of the Iranian-Iraqi Joint Chamber of Commerce, Yahya Al-Ishaq, said that if a banking agreement was concluded between Iran and Iraq for financial exchange using riyals and dinars instead of dollars, US banking procedures in Iraq would become ineffective.


For his part, Representative Khaled Hassan al-Darraji said that the crisis of the dollar’s rise is greater than internal solutions, and several countries participate in it.


Al-Daraji said in his interview with Shafaq News agency, that smuggling and selling dollars is the real reason behind the crisis, adding that it is not possible to engage in this thorny file that requires external efforts and international coordination to get out of the current crisis.


And the Iraqi currency lost about 10 percent of its value, after procedures related to imposing compliance rules on the Iraqi Central Bank’s dealings with currency dealers in relation to the US dollar.


Under the new procedures, Iraqi banks are required to submit dollar transfers on a new online platform with the Central Bank of Iraq, which are then reviewed by the Federal Reserve Bank.


US officials say the system aims to limit the use of the Iraqi banking system to smuggle dollars to Tehran, Damascus and money laundering havens across the Middle East.


The government measures taken by Prime Minister Muhammad Shia al-Sudani did not succeed in stopping the huge rise in the exchange rate of the dollar, as Iraqi stock exchanges still recorded more than 161 thousand dinars compared to $100.   LINK


Al-Tamimi Calls For Sending The 2023 Budget To The House Of Representatives


Policy  2023-01-28 | 05:55  Source:  Alsumaria News  1,173 views  Alsumaria News – The policy of  Representative Hammam Al-Tamimi counted, today, Saturday, not sending the 2023 budget to the House of Representatives as a “negative indication” of the Iraqi government’s direction.


Al-Tamimi said, in an interview with Al-Sumaria News, that “failing to send the 2023 budget to the House of Representatives is a negative indicator towards the Iraqi government,” calling on “the government to expedite sending the budget to the dome of Parliament.”


He added, “We demand that the budget be sent to the House of Representatives in order to solve the problems in the country.”


And last Thursday, a member of the House of Representatives, Taher Al-Battat, said in an interview with Al-Sumaria News, “Prime Minister Muhammad Shia’a Al-Sudani pledged during the last meeting of the State Administration Alliance to send the budget to Parliament and complete it completely during the month of February.”


And he indicated that “approving the budget will not take long, especially with Parliament’s full readiness to receive it.”


Iraq did not approve the 2022 draft budget due to the political crisis that has gripped the country since the “early” elections were held on October 10, 2021.   LINK


An Economist Proposes Putting In Place An Appendix In The 2023 Budget That Will Solve The Problem Of Rising Prices


An economist suggested putting an appendix in the 2023 budget bill to solve the problem of rising prices in the local markets.


Duraid Al-Enezi said in a press interview seen by Taqaddam, “We expect the House of Representatives to approve the draft budget law at the end of next month or the beginning of March, because until now no date has been set for sending it to Parliament, and it will need more time for discussions with the government.”


He added, “It is possible to address the rise in prices by adding the budget appendix, especially since there are expectations of an increase in oil prices to $100 per barrel, and there will be a possibility to keep that money within the budget for next year 2024.”


Al-Enezi stressed that “determining the price of a barrel of oil will not affect, with the possibility of canceling the planned deficit, because this year is considered exceptional.”


Prime Minister Muhammad Shia al-Sudani announced, during his launch of the additional food basket for the segments covered by social care, that “the rise in prices is temporary,” stressing, “We will not tolerate those who try to harm the citizen’s livelihood.”


Al-Sudani added: “We have taken decisions against anyone who tries to speculate and influence the market.”


Economist: “Whatsapp” Groups Control The Dollar.. This Is What Must Be Done To Reduce Prices


The specialist in economic affairs, Muhammad Attia Al-Saadi, confirmed that the return of the dollar exchange rate to its normal state depends on strict procedures that must be followed against speculators in the local stock exchanges.


Al-Saadi said in a press interview, which was seen by “Takadam”, that “speculation in the Al-Kifah and Al-Harithiya stock exchanges is managed through groups on WhatsApp, as well as other social media.”


He added, “Most of the owners of money exchanges run their businesses and control the exchange rates through those groups that determine the price and monopoly.”


And he indicated that “the largest percentage of the dollar is bought from exchange offices and is not circulated in the market, because most of these dollars go to parties and banks accused of and involved in smuggling.”


He pointed out that “the US Federal Bank is a partner in that crisis and has the upper hand after imposing many obstacles and complex controls on financial transfers.


In The Face Of The Dollar.. Will The Proposals Of The Sudanese Advisor Succeed In Controlling Exchange Rates?


Adviser to the Iraqi Prime Minister, Mazhar Muhammad Salih – Agencies


Iraq Appearance of Muhammad Saleh  Mohamed Shiaa Al-Sudani  central bank  Economy dollar


Erbil (Kurdistan 24) – Adviser to the Iraqi prime minister, Mazhar Muhammad Salih, proposed several measures to counter the continued rise in the exchange rate of the dollar against the local currency.


Saleh said, “As long as the decline in the exchange rate is linked to the ability to open up foreign trade and provide a highly flexible commodity supply when needed , which links the speed of financing with the credibility and transparency of commercial documents for importers from the private sector, which is still faltering at about 25-30% of the total actual demand for External transfer of trade finance.


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He added, “We propose that the government’s foreign trade (as a wholesaler) expand now to supply the market with the most important commodities that have a wide impact on people’s lives and that flow according to the fixed official exchange rate of 1460 dinars to the dollar,” according to a statement he made to the Iraqi News Agency.


Al-Sudani’s advisor suggested that foreign trade should expand, to give the commercial market the ability to reorganize itself, its contracts and foreign purchases, and to contain fluctuations in the exchange rate on a small scale.


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And he continued, “We find in the state’s intervention in the field of import trade a comprehensive national solution to provide price stability and provide an atmosphere of anti-competition (cartels) monopolizing trade which sends negative signals towards the stability of the Iraqi dinar exchange rate.”


He pointed out that the government’s commercial economy is “the decisive solution and a lever for stability in two directions: the first is to provide a stable commodity supply and reassuring stocks of important commodities, which helps to stabilize the consumer price index and the standard of living.”


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The second trend, according to Saleh, is that “the abundance of commodities supplied through government trade at the official exchange rate serves as a compensatory supply of foreign currency, and the demand for it equals what helps reduce the exchange rate gap , and reduces the impact of those differences in exchange rates on inflationary expectations in the economy.”


In the conclusion of his speech, he considered that “the state’s temporary intervention in the economy is the best solution until the commercial market adapts to the governance of its import operations from world markets and the discipline and transparency of its requests in front of external compliance institutions.”   LINK


Parliamentarian: The Dollar Crisis Is Political And The Government Is Working To Dismantle It