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Cutebwoy:  America offers investment opportunities on the Kurdistan region

Kurdistan Region 2020-10-06 06:37

Shafaq News / The Prime Minister of Kurdistan Regional Government, Masrour Barzani, on Tuesday, received the US Deputy Assistant Secretary of State for Iraq, David Copley .

A statement issued by the regional government today stated that “in the meeting attended by the US Consul General in Erbil Rob Waller, the two sides discussed the latest developments in the situation in Iraq and the region, and ways to consolidate relations between the Kurdistan Region and the United States were discussed .

Copley expressed his country to strengthen relations with the Kurdistan Region, especially in the commercial field, and to encourage American companies to increase their investments in the Kurdistan Region .

He added that a trade conference in this regard will be launched next month. He also indicated that there are multiple investment opportunities for American investors in Iraq and the Kurdistan Region .

The Prime Minister stressed that one of the priorities of the ninth ministerial formation is based on diversifying the sources of the economy, developing the agricultural sector, protecting local products and providing the largest amount of facilities for local and foreign investors, stressing the importance of settling problems with the federal government .

The statement quoted the Prime Minister as saying, “Solving the outstanding problems between the Kurdistan Region and the federal government is an important factor in achieving stability in Iraq and the region.”

America offers investment opportunities on the Kurdistan region

Tishwash:  News of the closure of the US embassy landing in Iraqi dinars

The currency sale markets witnessed a remarkable rise in the exchange rates of the dollar against the Iraqi dinar , which caused great anxiety in the street, which the Iraqis translated into buying dollars and replacing their local currency.

The decline of the Iraqi currency came against the background of media reports that spoke of an American intention to close its embassy in Baghdad, and to direct air strikes on the headquarters of armed factions inside Iraq, in response to the repeated targeting of Katyusha rockets to the Green Zone, where the US embassy is located, as well as the convoys of the International Coalition.

Since the beginning of this week, the dollar has continued to record a rise against the dollar from 1,200 dinars against one dollar, to 1,250 dinars, amid fears that it will rise dramatically if the embassy is actually closed.

An official at the Central Bank of Iraq told Al-Arabi Al-Jadeed that “the bank has formed new monitoring committees over the work of large banking companies, which manipulate the exchange rate of the dollar against the Iraqi dinar, and it will place some companies on the sanctions list and prevent them from being given dollars in the Iraqi currency auction “.

And he indicated that “there are some traders who live on some rumors and issues that happen in Iraq, in order to manipulate the exchange rate of the dollar, and that is why they took advantage of the issue of closing the US embassy in Baghdad, in order to raise the dollar exchange rate.”

The Iraqi official, who refused to be named, added, “The Central Bank has formed another team, in cooperation with the Economic Crime Directorate, to follow up the work of exchange offices, as well as the implementation of arrest warrants against manipulators at the price of hard currencies, especially since the currency auction continues in its work, and there is no change.” In his dealings, after the news of the embassy’s closure, this price should not be manipulated.

In addition, a member of the Economy and Investment Committee in the Iraqi Parliament, Salem Al-Tufayli, said in a telephone conversation with Al-Araby Al-Jadeed, that “the high exchange rate of the dollar is linked to the political and security developments in the country, and the recent rise came due to talk about the closure of the US embassy, and the government’s confirmation that The closure will cause the isolation of Iraq. ”
Al-Tufayli stated that “if the US embassy is truly closed, the dollar will witness a very high rise against the Iraqi dinar, and it will have many consequences, not only at the political and security level, but the economic impact may be the greatest.”

The Iraqi MP stressed “the need to monitor banking companies, and the work of merchants in the markets, to prevent any manipulation of hard currency, which may enter the country into a financial crisis, in light of the major repercussions it suffers due to the decline in oil revenues and the Corona pandemic, especially with the non-payment of salaries of employees.” Up to now, this matter also helps to raise the exchange rate of the dollar, and this matter is the responsibility of the Iraqi government. ”

On the other hand, the Iraqi economic expert, Majid Al-Suri, said in a press statement, that “the price of the dollar is very sensitive and affected by several matters, including political, social, financial and security, and that the decline in oil prices, the presence of Corona and the financial crisis of the Iraqi government are certainly being exploited by speculators from Order to raise prices. ”

And the picture said that “what is being raised about the closure of the US embassy, which has not been implemented, has also been exploited to raise the price of the dollar, but at the same time, the Central Bank has its tools and procedures to ensure that the dollar has not risen significantly.”

The Iraqi economic expert revealed that “the rise that occurred recently will not be great and did not exceed 3%, and therefore it remains within the internationally permissible limits.”

Since last February, Iraq has been plagued by a stifling financial crisis following the decline in global oil prices, and a sharp drop in Iraq’s financial revenues by about 60 percent, which contributed to lowering the price of the local currency.

And Iraq needs about 4 billion dollars a month to pay the salaries of more than 10 million Iraqis distributed in several segments, including employees and soldiers, about 6 million, and the rest are retirees who fall under the social welfare network.

However, according to the reports of the Ministry of Oil, Iraq’s financial revenues for several months ranged between 1.3 and 1.6 billion dollars, a percentage of which is deducted for foreign oil companies investing in the country.

The government and parliament are attracted to the responsibility of delaying the payment of salaries for about 50 days, as the government confirms that the delay in the parliament in voting on the internal borrowing law and the 2020 budget to secure financial liquidity to pay salaries is a reason behind the delay of the Ministry of Finance in the distribution of salaries, while the Finance Committee in Parliament attacked the government, She stressed that the responsibility for managing the financial crisis rests with her and she had to plan in advance, warning of what she described as bankruptcy of the government within six months.

So far, parliament has not voted on the 2020 budget amid expectations that the budget deficit will reach more than 80 trillion dinars (65 billion dollars), making it the highest number in the history of the oil-exporting country, while declining oil export revenues and the repercussions of the Corona virus outbreak and corruption plague the financial situation. And the economy of the state, which negatively affected the citizens’ livelihood.   link