Clare: An Iraqi proposal to deal in dinars instead of dollars with Iran
The commercial adviser to the Iranian embassy in Iraq, Abd al-Amir Rabihawi, stated that the pressures of the US treasury prevent the Iraqi side from using its official currency to transfer money to Iran, forcing it to use the free market currency, which differs by 10% from the official currency and harms Iranian merchants.
According to the Jahan Sanat News website, Rabihawi said, at the meeting of the Iranian-Iraqi Joint Chamber, that “trade with Iraq is traditionally possible so that money is exchanged with this country through exchange offices or cash.”
Referring to the number of decision-making centers in Iraq and Iran, he explained: “We have Iraqi offices in most ministries in Iran that make decisions on their own, and this is what led to a lack of centralization in decision-making in Iran and it has become a peninsula, which causes contradictory steps to be taken.”
Rebihawi believes that Iraq is the best country for investment and export of goods in the region, stressing the importance of using this country for re-export, or benefiting from the advantage of transit through Iraqi territory to Europe or North Africa.
The Iranian trade advisor in Iraq stated that the central bank in this country distributes daily no less than 250 million dollars to the country’s banks, and said: “The pressures of the American treasury prevent the Iraqi side from using its official currency to transfer funds to Iran, which forces it to use the market currency.” The free currency, which differs by 10% from the official currency and harms Iranian merchants.
The Iranian official added, “Iraq suggested that all our financial dealings in Iraq be in dinars, even Turkish shops buy and sell in dinars in this country. Given the sanctions, this issue is in Iran’s favor.”
And he added, “Based on that, we offered the Central Bank of Iran that Iranian businessmen and merchants trade in dinars instead of dollars.”
Rabihawi confirmed that Iran is using its frozen funds in Iraq to buy 7 non-sanctioned commodities, in addition to industrial equipment, medicines and foodstuffs.
He continued, “Iranian merchants must convince the Iraqis that the goods Iran exports to Iraq are non-sanctioned,” declaring that the country exports 4,500 goods to Iraq that cover about 10% of its needs.
He added, “We must be frank with the Iraqis so that they realize that the issue of the price is very important to us regarding commercial exchanges with it, so that they return to us a difference of 10% of the price of the official and free currency.”
Rabihawi stated that since the beginning of the arrival of tourists with the aim of treatment to Iran, brokers began to exploit this point and plunder money by increasing the cost of treatment several times, and he said: “It is true that medical tourism has become popular and has a noticeable demand by Iraqis, but it is subject to the control of merchants and brokers in Iraq There is a disagreement between the Ministry of Health and Tourism on the need to solve these problems.
In conclusion, he added that it was decided to establish 5 industrial cities on the Iranian-Iraqi border.
Last week, the Iranian deputy oil minister for gas affairs said that the Iraqi Ministry of Electricity had paid Iran all gas-related debts.
“The Iraqi Ministry of Electricity has paid all our dues for gas, and the debt is now zero, but sometimes there are problems transferring money from the Iraqi TBI Bank to Iran,” Majid Chengy said.
In his statements, the Iranian official did not mention the amount of frozen funds in Iraqi banks.
For his part, Ahmed Musa, spokesman for the Iraqi Ministry of Electricity, confirmed, on Monday, that his country had paid Iranian gas dues to Tehran and deposited them in the Trade Bank of Iraq.
He said, “The Ministry of Electricity has paid all dues owed by Iraq to Iran, which are dues for importing gas from it.”
He added, “The dues were paid to the Iraqi Trade Bank in the Credit Fund, but the bank is finding difficulties in transferring them to the Iranian government because of the US sanctions.” LINK
Suzie: I would expect that “Eddie” and the citizens are about at the “riot” point after the big NOTHING burger served to them so far, I’d like to know if they’ve stopped using the American dollar how are they making change and doing business if the ATM’s aren’t up and running yet and if the HCL is in the budget and settled I would imagine they’re anxious to start getting their money since they now have it legally coming to them. Maybe JP Morgan knows something since they’re in-country setting up to do international business…..maybe the 2nd. set of books, I dunno, just mulling over what could be holding this up since everything’s done, just MY opinion only, pondering……. hope everyone had a great4th of July, wish we would have had better fireworks!
TrevorL: For the Iraqi government to just mandate that you can only use Dinars instead of Dollars will never work without proper motivation $$$. Until the Iraqi Government ( CBI) change the dinar to a 1 to 1 or better there is absolutely no motivation for the people or the merchants to use the Dinars. Do you blame them!!! We have to trust and believe in the information we receive here at KTFA. For me, I keep hearing the words from Sudani, “hold your dinar they will be worth more than the dollar soon”. This whole thing is way above my personal pay grade so I/we are forced to just continue to wait this out. Hopefully we will wake up one morning soon to sounds of $$$ in our ears.
Clare: The Ministry of Interior: legal penalties against 50 companies that did not commit to selling in dinars
The Ministry of the Interior confirmed, on Wednesday, the implementation of arrests and legal penalties against 50 companies and commercial entities that did not commit to buying and selling in Iraqi dinars, while indicating that more than 11,000 pledges were taken to abide by the law and deal only in dinars.
Brigadier General Hussein Al-Tamimi, Director of the Organized Crime Operations Department at the Ministry of Interior, said, “There is a great commitment by companies, shops, and car showrooms to the campaign to support the dinar and stop selling in dollars. Citizens have seen this in their daily dealings.”
He added, “The campaign started with taking 11,785 pledges not to sell in dollars and to commit to selling in dinars, then it was followed by a second stage at the beginning of last June to follow up on those who did not comply with the pledges and hold them accountable. They were arrested and referred to the judiciary in accordance with Articles 306 and 240 of the Iraqi Penal Code No. 111.”
And he continued, “The number of those arrested has reached 50 violating companies in Baghdad and the provinces, and they are currently under investigation, and our inspection campaigns are carried out through employees in civilian clothes, as well as by receiving complaints from citizens, as we have received cases about residential complexes setting a price in dollars, as well as renting units in dollars, and they were dealt with according to the law.” “.
Clare: The Republic of Iraq joined the Egmont Group of Financial Intelligence Units
July 05, 2023
The efforts exerted by the Republic of Iraq and under the direct supervision of the honorable Prime Minister, the honorable President of the Supreme Judicial Council, and the honorable Governor of the Central Bank culminated in the acceptance of the membership of the Office of Combating Money Laundering and Terrorist Financing in the (EGMONT) group concerned with the exchange of information between the Financial Intelligence Units for combating money laundering Funds and financing of terrorism, since with the accession of the Republic of Iraq, the number of member states has reached 170.
Where the member states voted during the general meeting of Group No. (29) on the accession of Iraq, which was attended by the Director General of the Office of Combating Money Laundering and Terrorism Financing in the United Arab Emirates / Abu Dhabi on July 5 / 2023
The approval came after the request submitted by Iraq earlier, as a result of which the legislative and operational structure in which the office operates was studied and a field visit was conducted. The report of the field visit to the Republic of Iraq that was carried out by representatives of the sponsoring countries was discussed during the meeting of the Working Group on Membership, Support and Commitment MSCWG held In Senegal on 31/1/2023, which recommended the adoption of the report.
It is worth noting that the Egmont Group provides support to its member countries through:
Enhancing secure communication between financial investigation units, and securing communication between them through the application of modern technology through the secure Egmont website (ESW).
Expanding the scope of international cooperation in the field of exchanging information related to combating money laundering, terrorist financing and predicate offences.
Activating the role of the financial investigation units by providing training and promoting exchange between individuals to improve the expertise and capabilities of the employees of the financial investigation units.
Enhancing coordination and operational support among member FIUs of the Egmont Group.
Enhancing the independence of financial investigation units.
Encouraging the establishment of financial investigation units in cooperation with countries that already have a national system to combat money laundering and terrorist financing, or whose national system to combat money laundering and terrorist financing is in the process of development.