Thursday Evening Iraq Economic News Highlights 3-16-23
Central Bank Governor: We Are Working With The Government To Make The Dinar The Main Currency In The Iraqi Market
Money and business Economy News-Baghdad On Thursday, the Governor of the Central Bank, Ali Mohsen Al-Alaq, set the objectives of monetary policy in Iraq, pointing out that he would take the necessary legal steps within the framework of the dinar being a major currency prevailing in the market in cooperation with the government. Al-Alaq said on the second day of the seventh Sulaymaniyah Forum, followed by “Al-Iqtisad News”, that “the monetary policy includes two basic goals,” noting that “one of these goals is to maintain the general level of prices, that is, the strength of the currency locally and the exchange rate, which represents the strength of the currency externally.”
He added that he “will take the necessary legal steps in the context of the dinar being a major currency prevailing in the market, in cooperation with the government.”
He noted that “buying and selling in a foreign currency is a strange matter and a widespread phenomenon in the Iraqi markets, which is (the dollarization of the market),” pointing out that “the currency is a symbol of sovereignty and a title for the country, and abandoning it is tantamount to lowering the flag.”
He pointed out that “externally we do not have a problem with remittances, and every day we open new outlets to sell the dollar at the official rate.”
Al-Alaq pointed out that “inflation and the exchange rate are high factors, and we note a growth in the money supply, and the currency export witnessed a storm, which is an abnormal growth in the absence of productive growth, and indicates an increase in import demand.”
And he explained, “The central bank law stipulates that it sells foreign currency without placing restrictions, and the text of the phrase in the article is (simple unconditional sale), which is the ideal case through which the central bank can maintain the exchange rate, that is, respond to every demand for the dollar.”
And that “the problem is that there are more controls and standards in verifying the buying and selling of foreign currency, and with the increase in the international currency war, it makes the process of setting more controls and restrictions increasing.”
And the governor continues, “The central bank has become in a complex balancing act between achieving a simple unconditional sale so that there is no room for the price difference and speculation, and the application of these standards that require a review of all operations.”
He expressed his regret, saying, “The central bank bears additional burdens in applying these standards due to the absence of the role of other institutions that are supposed to help in the process of verifying operations. For example, if our border crossings were at a degree of organization and recording operations correctly, it would enable all parties.” From the knowledge of the foreign dollar and its conformity in these operations .. There are large gaps in the border crossings, some of which have been diagnosed for many years, and some of which are new with experience.
And he warned that “the central bank has the ability and desire to achieve its goal of responding to the demand for the dollar, whatever its size, and it is now able to offer the dollar at the level of demand; but what reduces this supply is a group of merchants and others, who are not ready to enter into these processes and controls; so there is A deficiency in the process of covering the demand, if we see that the existing rates of remittances and the demand for dollars and credits do not cover only a small percentage of the real trade of Iraq, and we are trying to bridge this gap through various means to earn these and their entry into the process from its correct gate.
https://economy-news.net/content.php?id=32967
Relationship: The Dependence Of Some Governments On The Central Bank For Financing Threatens Monetary Stability
Economy | Baghdad today – Sulaymaniyah Today, Thursday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, affirmed the bank’s intention to take the necessary legal steps to make the dinar a major currency prevailing in the market, indicating that this is in cooperation with the government.
Al-Alaq said during a speech at the Sulaymaniyah Forum, which was followed by (Baghdad Today), that “monetary policy includes two basic goals: maintaining the general level of prices, that is, the strength of the currency locally, and the exchange rate, which represents the strength of the currency externally.”
He added, “The phenomenon of relying on the central bank to cover the deficit of the state’s general budget is a very dangerous phenomenon, and the dependence of some governments on the central bank for financing threatens monetary stability,” noting that “buying and selling foreign currency is strange and a widespread phenomenon in the Iraqi markets, which is (market dollarization). ).
He continued, “Externally, we do not have a problem with remittances, and every day we open new outlets to sell the dollar at the official rate,” noting that “the currency is a symbol of sovereignty and a title for the country, and abandoning it is tantamount to lowering the flag.”
And Al-Alaq explained that “inflation and the exchange rate are high with factors, and we notice a growth in the money supply, and the currency export witnessed a storm, which is an abnormal growth in the absence of productive growth and indicates an increase in import demand,” stressing that “the central bank law stipulates that it sells foreign currency without placing Restrictions, and the text of the phrase in the article is (simple unconditional sale), which is the ideal case through which the central bank can maintain the exchange rate, that is, respond to every demand for the dollar.
And he continued: “The problem is that there are more controls and standards in verifying the buying and selling of foreign currency, and with the increase in the international currency war, it makes the process of putting more controls and restrictions increasing, and the central bank has become in a complex balancing process between achieving the simple unconditional sale so as not to make there There is room for price difference and speculation and the application of these standards, which require a review of all operations.
And he stressed, “Unfortunately, the central bank bears additional burdens in applying these standards due to the absence of the role of other institutions that are supposed to help in the process of verifying operations. Knowledge of the foreign dollar and its conformity in these operations.. There are large gaps in the border crossings, some of which have been diagnosed for many years, and some of which are new with experience.
Al-Alaq stressed that “the central bank has the ability and desire to achieve its goal of responding to the dollar’s demand, whatever its size, and it is now able to offer the dollar at the level of demand; but what reduces this supply is a group of merchants and others, who are not ready to enter into these processes and controls.” .
He explained, “Therefore, there is a shortage in the process of covering the demand, if we see that the existing rates of remittances and the demand for dollars and credits, as they cover only a small percentage of real trade for Iraq, and we are trying to bridge this gap through various means to earn these and their entry into the process from its correct gate.”
It is noteworthy that the 7th Sulaymaniyah International Forum is being held under the title “After 20 Years: Iraq and the Region in the Midst of New Global Challenges,” and the forum, according to a statement issued by its management, is “a high-level political conference focusing on the Middle East and North Africa and hosted by the Institute of Regional and International Studies (IRIS) in The American University in Iraq – Sulaymaniyah.
The seventh edition of the Sulaymaniyah Forum discusses topics of politics, economy, environment, law, human rights, health, energy and many issues. During the two days of the forum, thinkers, experts and decision-makers from the region and the world will meet to discuss the most important regional issues in the world and present current views and points of contention. The statement of the management of the forum, which said that the forum Sulaymaniyah seeks to translate ideas and discussions into concrete actions and policies that can make a difference in people’s lives. LINK
Al-Alaq Holds The Merchants Responsible For The Lack Of Dollar Supply: They Refuse To Engage In The System
2023.03.16 Baghdad – people The Governor of the Central Bank, Ali Al-Alaq, confirmed, on Thursday, that the exchange rate and inflation have witnessed an increase during the last two years, and that the price margin for the dollar exceeded 20%, while he indicated that this phenomenon affects the economic and social reality and weakens the purchasing power of citizens.
Al-Alaq said in statements he made during the seventh Sulaymaniyah Forum, followed by “NAS” (March 16, 2023), that “inflation and the exchange rate are high with factors, and we notice growth in the money supply, and the currency export witnessed a storm, which is abnormal growth in the absence of productive growth and indicates an increase.” import request.
And he added, “The central bank law stipulates that it sells foreign currency without placing restrictions, and the text of the phrase in the article is (simple unconditional sale), which is the ideal case through which the central bank can maintain the exchange rate, that is, respond to every demand for the dollar.”
He pointed out that “the problem is that there are more controls and standards in verifying the buying and selling of foreign currency, and with the increase in the international currency war, it makes the process of putting more controls and restrictions increasing.”
He pointed out that “the central bank has become in a complex balancing process between achieving simple unconditional selling so that there is no room for price difference and speculation and the application of these standards that require a review of all operations, unfortunately the central bank bears additional burdens in applying these standards due to the absence of a role Other institutions that are supposed to help in the process of verifying operations, for example, if our border crossings are at a degree of organization and recording operations correctly, it will enable all parties to know the foreign dollar and match these operations ..
There are large gaps in the border crossings, some of which are diagnosed From many years, and some of them beg for experience.
And he stated, “The central bank has the ability and desire to achieve its goal of responding to the dollar’s demand, whatever its size, and it is now able to offer the dollar at the level of demand; There is a shortage in the process of covering the demand, if we see that the existing rates of remittances and the demand for dollars and credits, as they cover only a small percentage of the real trade of Iraq, and we are trying to bridge this gap through various means to earn these and their entry into the process from its correct gate. https://www.nasnews.com/view.php?cat=103926
Central Bank Governor Ali Al-Alaq Announces New Legal Steps To Reduce The Exchange Rate Gap
On Thursday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, revealed anticipated “legal steps” with the aim of reducing the gap in the exchange rate.
Al-Alaq said in a statement during the seventh Sulaymaniyah Forum today, (March 16, 2023), “We will take the necessary legal steps within the framework of the dinar being a major currency prevailing in the market, in cooperation with the government.”
He added, “Buying and selling in a foreign currency is a strange thing and a widespread phenomenon in the Iraqi markets, which is (the dollarization of the market).”
He continued, “Externally, we do not have a problem with remittances, and every day we open new outlets to sell dollars at the official rate.”
He pointed out that “the currency is a symbol of sovereignty and a title for the country, and abandoning it is tantamount to lowering the flag.”
Earlier, Al-Alaq confirmed that the exchange rate and inflation have witnessed an increase during the last two years, and that the price margin for the dollar exceeded 20%, while indicating that this phenomenon affects the economic and social reality and weakens the purchasing power of citizens.
Al-Alaq said, “Inflation and the exchange rate are high with factors, and we notice a growth in the money supply, and the currency export witnessed a storm, which is an abnormal growth in the absence of productive growth, and indicates an increase in import demand.”
And he added, “The central bank law stipulates that it sells foreign currency without placing restrictions, and the text of the phrase in the article is (simple unconditional sale), which is the ideal case through which the central bank can maintain the exchange rate, that is, respond to every demand for the dollar.”
He pointed out that “the problem is that there are more controls and standards in verifying the buying and selling of foreign currency, and with the increase in the international currency war, it makes the process of setting more controls and restrictions increasing.”
He pointed out that “the Central Bank has become in a complex balancing process between achieving simple, unconditional sales so that there is no room for price difference and speculation, and the application of these standards that require a review of all operations. Unfortunately, the Central Bank bears additional burdens in applying these standards due to the absence of a role.”
Other institutions that are supposed to help in the process of verifying operations, for example, if our border crossings are at a degree of organization and recording operations correctly, it will enable all parties to know the foreign dollar and match these operations .. There are large gaps in the border crossings, some of which are diagnosed From many years, and some of them seek experience.”
And he indicated, “The central bank has the ability and desire to achieve its goal of responding to the dollar’s demand, whatever its size, and it is now able to offer the dollar at the level of demand; However, what reduces this offer is a group of merchants and others, who are not ready to enter into these processes and controls.
Therefore, there is a shortage in the process of covering the demand, if we see that the existing rates of remittances and the demand for dollars and credits, as they cover only a small percentage of the real trade of Iraq, and we are trying to bridge this gap through various means to earn these people and their entry into the process from its correct gate. LINK
