TNT Tuesday Afternoon


Tishwash:  Kuwaiti report: The Central Bank is in the grip of Al-Maliki and changing its president will not solve the crisis

A Kuwaiti newspaper said, on Tuesday, that the former governor of the Central Bank, who returned to his post, Ali Al-Alaq, is a close ally of Nuri Al-Maliki, and quoted sources in Baghdad, that this is part of government changes to present “scapegoats” for public opinion and requires proving the impartiality of the new president in the upcoming negotiations. with Washington.  

Al-Jarida’s report, followed by “Nass”, added (January 24, 2023) that the Iraqi dinar in the post-Saddam Hussein era had never gone through a crisis like the one it is currently going through, as no one knows a fixed price for it, which prompted merchants to raise prices. Almost everything, in an attempt to compensate for the huge losses they suffered, within an import-dependent economy.

According to the analysis of the Kuwaiti newspaper, this crisis resulted from new US restrictions on dollar transfers to Iraq from the US Federal Reserve, in an attempt to control the smuggling of an estimated one hundred million dollars every day to Iran in clear violation of international sanctions at the time of a government led by hard-line parties in Shiite politics. It was sometimes considered evidence of Washington’s attempt to limit the “profits” of Tehran and its allies in Iraq today.  

Senior sources in Baghdad told the Kuwaiti newspaper that the overthrow of the “central” governor is far from just offering a scapegoat to the public. Al-Sudani and behind him Al-Maliki “wants an official whom he trusts in the necessary negotiations with Washington on managing the dinar crisis and the trade relationship with Iran.”

The sources added, “Al-Maliki talked about the necessity of launching an urgent dialogue with Washington about the dinar crisis, and he could not advance this file except with someone he trusted absolutely, so he returned to his first memories and returned Ali Al-Alaq to the position he previously held in Al-Maliki’s mandate.” the second”.  

The newspaper stated that the financial authority represents a distinct battle in al-Maliki’s political biography, as he had previously overthrown the former “central” governor, the late Sinan al-Shabibi, an internationally reputable banking figure, who was opposed to al-Maliki’s interventions in monetary policies, and Iran’s infiltration, and he brought the relationship as a substitute for him. Then Al-Kazemi removed Al-Alaq from office, until he returned today tasked with controlling the dollar.

The newspaper stresses that financial experts in Baghdad say that no one can restore the status of the dinar, unless he convinces Tehran to stop buying dollars from the Iraqi market, or persuades Washington to ease the strict restrictions that were recently imposed on dollar transfers to Baghdad, especially since Iraq does not He can transfer his assets outside the United States, because it is the only party that provides “international protection” for Iraq’s oil revenues, in front of hundreds of thousands of lawsuits dating back to the four wars the country fought during the past decades.

The Iraqi prime minister says that he has more than 10 new measures to prevent the collapse of the market, but experts comment on this that his impact remains limited, as 200 million dollars should be provided daily to stabilize the market, while what America currently allows does not exceed the rate of 60 million dollars, which The price of the dollar was raised to the borders of 1,700 dinars, after it was 1,450 two months ago.

Al-Maliki will have to convince the American capital that Al-Alaq’s personality is neutral and does not represent an imbalance in the higher institutions, in light of Washington’s fears of profound changes in Tehran’s interest, which gradually include security institutions, the armed forces, intelligence, and financial institutions, according to the expression of the Kuwaiti newspaper.    link