Iraq Economic News and Points To Ponder Tuesday Afternoon 8-12-24

Banks Working To Keep The Exchange Rate High.. Secrets Of The Dollar Crisis Against The Dinar
 
Economy   2024-08-12 3,172 views  Alsumaria News – Economy  Economist Omar Al-Halbousi confirmed that the crisis in the dinar’s exchange rate against the US dollar is due to many factors.  Al-Halbousi said, in a press statement:
 
“It is well known that the rise in the dollar exchange rate and the decline in the value of the Iraqi dinar have been continuing for more than two years, and  here we confirm that the value of the dollar is stable, but the value of the Iraqi dinar fluctuates between rise and fall, and most often it is a decline.” 

He continued,  "The rise and fall that the exchange rate of the Iraqi dinar is experiencing against the dollar from time to time is due to several reasons, including the continuation of trade with the sanctioned countries, which requires financing it from outside the platform, relying on the parallel market,  which is the real controller of the exchange rate.
 
Until the moment, there is no The central bank has authority over it,” noting that  “there are countries that live on the dollar in Iraq in the absence of the role of the central bank to regulate the exchange rate and stop the currency bleeding, with the penetration of these countries through private banks that dominate the currency selling window.” 

He explained that "private banks also push for the exchange rate to remain high, because it benefits them.
 
They have taken advantage of the law of delivering dollar transfers to individuals and companies coming from abroad and handing them over to their owners in Iraqi dinars and at the official rate, and then they sell the dollar at the parallel market price, which increases the value of money."
 
Its profits are therefore a stumbling block in the way of stabilizing the exchange rate and stopping the bleeding of the value of the Iraqi dinar.” 

 He stated that   “remittances and the currency selling window are monopolized by a few banks that control the exchange rate and manipulate it as they please,
 
which explains why they achieve fantastic profits from dollar transfers, which have become depleting Iraqi oil imports that finance the window, knowing that the high volume of daily dollar sales is very suspicious.”
 
It contradicts the volume of goods entering, which means the continuation of smuggling the dollar abroad, which is carried out by the banks controlling the window and the remittances, with international complicity,” pointing out that
 
“the American sanctions and the continued threat of them, is another reason for the continuing decline in the value of the Iraqi dinar against the dollar with the inability to...

The Central Bank is working to solve the problem of sanctions with the American side, as well as the inability to control the work of banks and control their fraudulent work, which has caused Iraq to have problems with the Americans, in light of the continued smuggling of the dollar in multiple ways practiced by banks owned by foreign countries.” 

The economic expert pointed out that  “the government is still relying on the Central Bank and its management to control the exchange rate, which the Central Bank did not succeed in, but rather failed in all its steps, with the arrogance of private banks and their control over the Central Bank with external support, in addition to the influence of these banks within the Central Bank.”
 
Which means, up to this moment, that he has not found a solution to stop the decline in the value of the Iraqi dinar against the dollar, which will bring us into major problems in the coming days, especially if new American sanctions are imposed on Iraq, in addition to the rise in the geopolitical conflict in the region, which casts a multi-faceted shadow over Iraq.”.    
 
https://www.alsumaria.tv/news/economy/496912/مصارف-تعمل-على-بقاء-سعر-الصرف-مرتفعا-خفايا-ازمة-الدولار-امام-الدينار   

An Economist Warns Of “Danger” And Takes Aim At The Central Bank: Banks Are Rated At The 1970s Standard
 
Special Sumerian     2024-08-13 |1,313 views   Economic expert, Mustafa Hantoush, warned today, Tuesday, of a danger to the Iraqi economy caused by foreign banks inside the country, while noting that the  Central Bank evaluates local banks according to the “standard of the 1970s.”
 
Hantoush told Al-Sumaria News,  “Iraqi banks are evaluated by the Central Bank of Iraq using the Camels standard, which is the standard of the seventies of the last century.
 
Therefore, we find weakness in the banking operations of the Iraqi banking sector because the Central Bank’s standard does not give them importance in the evaluation,”
 
stressing that The necessity of “adopting a modern standard that focuses on (deposits - loans - investments - electronic payment).” 

He pointed out that "the Iraqi banking sector is almost at a standstill, and work and profits are limited to a number of banks (owned by foreign owners) supported by their countries and their central bank governors," considering that "these banks pose a threat to the Iraqi economy and their liquidity position is ambiguous."   

https://www.alsumaria.tv/news/alsumariaspecial/496992/اقتصادي-يحذر-من-خطر-ويصوب-نحو-البنك-المركزي-المصارف-تقيم-بمعيار-السبعي 

Procedures for the work of agents of external transfer service providers

August 13, 2024 :diamonds: Procedures for working as agents of external transfer service providers .. For more, click here  https://cbi.iq/static/uploads/up/file-172353315575666.pdf
 
https://cbi.iq/news/view/2638   
 
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[ approximate, incomplete translation of https://cbi.iq/static/uploads/up/file-172353315575666.pdf ]
 
DATE: 8/12/2024  (Arbaeen of Imam Hussein (PBUH) .. The Iraqi Day of Volunteer Work)
 
All licensed banks
All licensed electronic payment companies
License exchange companies of categories (1) and (13)
 
M/ Procedures for the work of agents providing foreign transfer service    
 
Based on the supervisory and regulatory role of this bank.
 
In order to facilitate the work procedures of agents providing foreign remittance services in light of the rapid developments in the money transfer service.
 
And to limit its misuse for speculative purposes and benefit from the exchange rate difference.
 
You are requested to obtain a valid residency and passport for non-Iraqi persons (foreigners) for the purpose of completing remittances.
 
These supporting documents represent the minimum requirements; and you can request any additional document if necessary.
 
To work accordingly..with appreciation.   https://cbi.iq/news/view/2638   

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