Iraqi Economic News and Points to Ponder Monday AM 9-11-23
Iraqi Economic News and Points to Ponder Monday AM 9-11-23
Iran Continues To “Dry Up” Iraqi Dollars.. The Dollar Is On The Way To Flying Towards 160 Thousand (Details)
Baghdad today - Baghdad Today, Sunday (September 10, 2023), the expert in economic affairs, Nabil Al-Marsoumi, detailed the reasons for the continued rise in the exchange rate of the dollar against the Iraqi dinar, despite the many decisions taken by the Central Bank.
Al-Marsoumi said in an interview with “Baghdad Today” that “the reason for the large gap between the dollar in the official market and the parallel market is due to the large trade with Iran, as the latter exports goods to Iraq worth 10 billion dollars annually, and this trade is covered through bank transfers that go to banks.” UAE and then to Iran.”
He added, “After implementing the electronic platform system, bank transfers were stopped, and trade with Iran is now being covered through the parallel market, so there is pressure on the dollar,” noting, “There are parties that monopolize the dollar in order to pump it back to Iran for the purpose of commercial settlement with "Tehran."
Although Al-Marsoumi does not hide that Iraq faces many economic problems in this aspect, he confirms that the demand for investment and consumer goods will increase after the release of budget allocations.
“Due to the limited national production base, the demand for the dollar will increase again and cause it to rise to high levels,” the economist says.
Al-Marsoumi was not satisfied with this, but rather warned that the price of the dollar was on its way to jumping above the barrier of 160 thousand dinars, in the coming weeks due to a number of reasons mentioned, and “the failure to take decisions that would reduce the difference.”
According to US sanctions, any deal between Iran and Iraq must be based on the dinar, and the use of the US dollar in these transactions is prohibited.
14 private Iraqi banks were prevented from purchasing US dollars from the Central Bank of Iraq as part of a campaign by the US Treasury Department to smuggle dollars to Iran through the Iraqi financial system .
Banks were prohibited from purchasing US dollars through the "foreign exchange auction window", known as dollar and conversion auctions .
It is an officially approved mechanism to cover the foreign currency needs of banks and public and private commercial institutions, and ensures the ability of these institutions to finance their financial activities and foreign trade .
The American step taken by Washington on July 19, 2023 is part of a broader effort to prevent Iran from depleting Iraq’s dollar reserves through false or fictitious import transactions carried out with “inflated” invoices or “fraudulent” money transfers.
The Central Bank of Iraq works with the US Department of the Treasury to implement anti-money laundering and counter-terrorism financing initiatives .
The Central Bank explained that within the framework of this partnership, an “electronic platform” was developed to ensure the safety and accuracy of money transfer transactions in all aspects, in accordance with international standards and practices. LINK
Sudanese Advisor: The Size Of The Monetary Supply Reached 116 Trillion Dinars
Economy | 09/09/2023 Baghdad - Mawazine News Advisor to the Prime Minister, Muhammad Al-Najjar, revealed that the monetary mass of the local currency has reached the barrier of 116 trillion dinars, indicating that initiatives to expand electronic payment are consistent with the government’s directions.
Al-Najjar said, “Electronic payment is an important axis for developing the Iraqi financial sector and moving it to an advanced stage in the country’s monetary policy,” noting that “the size of the Iraqi monetary mass amounts to 116 trillion dinars, of which 30-40 trillion dinars are circulating within the banking system.”
He added, "The campaign to encourage electronic payment is in harmony with the directives of Prime Minister Muhammad Shiaa Al-Sudani to achieve safe financial transactions, and with the aim of achieving a great benefit for citizens, as electronic payment represents an important stage whose benefits everyone must realize." https://www.mawazin.net/Details.aspx?jimare=23464
Parliamentary Meeting With The Diwaniyah Order Committee Regarding The Financial Budget
Policy 2023-09-11 | Alsumaria News – Politics The Parliamentary Finance Committee met today, Monday, with the Diwaniyah Affairs Committee formed by the Prime Minister to negotiate and meet with representatives of the regional government to implement and follow up on what is stated in the Federal Budget Law for the year 2023.
Al-Sumaria’s correspondent said, “The Finance Committee met with the Diwaniyah Affairs Committee formed by Prime Minister Muhammad Shia’ al-Sudani to negotiate and meet with representatives of the regional government to implement and follow up on what was stated in the Federal Budget Law for the year 2023.” LINK
200 Billion Iraqi Dinars Were Exchanged For Iranian Tomans During The Arbaeen Visit
Economy News – Baghdad Economist Ali Daadoush estimated the number of visitors who obtained dinars at about 2 million Iranians, pointing out that the total amount exchanged was 200 billion dinars, and this amount was pumped into local markets.
Daadoush said in a statement to Al-Iqtisad News, “The Iranian Central Bank had announced earlier that anyone who wants to go to the Arbaeen pilgrimage can exchange the Iranian toman for the Iraqi dinar at a subsidized price, and the maximum amount is approximately 100 thousand dinars, knowing that every (32) ) Toman = 1 Iraqi dinar,” pointing out that “the Central Bank of Iran informed us of the support for this measure and replaced the toman with a minus price of 7, thus becoming 25 toman = 1 Iraqi dinar.”
He added, "The number of visitors who came to visit Arba'een amounted to about (3) million visitors," noting, "If we estimate the number of those who received dinars at about (2) million Iranians, the total of what was exchanged is 200 billion dinars, and this amount was pumped into the local markets." .
He stated that "pumping such an amount in less than a month means an increase in the general price level on the one hand, and pressure on the cash dollar upon reaching the cash cycle on the other hand, which deepens the rise in the dollar exchange rate in the parallel market."
He pointed out that "an increase in the dinar in circulation leads to a reduction in the issuance of new cash by the Central Bank of Iraq when the process of sterilizing the dollar is carried out by the Ministry of Finance. On the other hand, the pumping of the dinar by the Iranian side means an increase in the number of workers from various professions in the unorganized economy, which constitutes approximately (70%) of the size of the total economy.” Views 106 09/10/2023 https://economy-news.net/content.php?id=36231
Federal Prime Minister: We Are Committed To The Budget Law And We Refer Those Accused In The Kirkuk Events To The Law
Iraq 14:25 - 2023-09-10 Federal Prime Minister Muhammad Shiaa al-Sudani announced his commitment to the general budget law and dealing with the region’s entitlement to the budget on the basis of the general budget law issued by the House of Representatives. Regarding the outbreak of the crisis that occurred around the building of the advanced headquarters of the Joint Operations Command in Kirkuk, which the Democratic Party left after the referendum, the Prime Minister confirmed Federal Ministers refer those accused of martyring and wounding citizens in Kirkuk to law.
Muhammad Shiaa Al-Sudani said during a statement to the Kurdsat News satellite channel: “There are numbers and statistics that govern everyone’s budget entitlements, and we, in turn, are committed to the general budget law.”
The Prime Minister of the Federal Council added: “We deal with the region’s share on the basis of the general budget law, and we are also awaiting the result of hosting the Minister of Finance of Iraq and the region to the Finance Committee and the House of Representatives to address budget-related disputes.”
Regarding the tensions and disturbances that occurred in the past few days in Kirkuk over a building belonging to the Democratic Party, which it left as a result of the Kurdistan Region’s referendum and occupied by the General Command of Joint Operations in the city, Muhammad Shiaa al-Sudani pointed out that: “Kirkuk must be removed from disputes and conflicts, and we will remove anyone whose hands are dirty.” "With the blood of the citizens of Kirkuk, it will be transformed into the law."
“Iraq Has Moved Closer To Its Goal.” Washington Praises The Baghdad Airport Control Unit
Baghdad today – Baghdad Today, Sunday (September 10, 2023), the US Ambassador to Iraq, Alina Romanski, welcomed the opening of the air cargo control unit at Baghdad International Airport, noting that it represents an essential part of Iraq’s ability to combat illicit trade.
The ambassador posted on the social networking site "X" a picture of herself while giving a speech during the opening of the unit at Baghdad International Airport.
Romanski said, in a tweet, that “the safe movement of air cargo will encourage more trade between Iraq and the global economy, and reduce illicit trade and cross-border threats.”
She pointed out that the air shipper controller unit is funded by the Regional Export Control Program of the US Department of State.
She expressed "the respect of the United States of America for its Iraqi partners for their continued commitment to establishing border security for a more stable, secure, and sovereign Iraq."
She added, "The safety and security of our international partners is the security of the entire world." She also thanked the United Nations Office on Drugs and Crime for its hard work in establishing this unit, according to what was reported by the Iraqi News Agency.
She said, "Smugglers use legitimate goods to hide illegal shipments and the large volume of global trade and shipment movements makes it difficult for customs officials to enforce the law and discover illicit cargo, which is often hidden."
Romanski added, "By establishing this unit, Iraq is sending a strong message to the international community that it continues to work on customs procedures and monitoring goods transparently," noting that this step brings Iraq close to achieving its goal of more flights between Baghdad and major cities around the world. .
Earlier today, the head of the Border Ports Authority, Major General Omar Adnan Al-Waeli, announced the opening of a container monitoring unit at Baghdad International Airport with support from the United Nations Office on Drugs and Crime, which will contribute to monitoring containers and targeting dangerous global shipments based on an analysis of existing danger indicators. In shipping documents. LINK
Points to Ponder on Truth:
A lie told often enough becomes the truth. Lenin (1870 - 1924)
A lie can travel halfway around the world while the truth is putting on its shoes. Mark Twain (1835 - 1910), (attributed)
Fiction is obliged to stick to possibilities. Truth isn't. Mark Twain (1835 - 1910)
The history of our race, and each individual's experience, are sown thick with evidence that a truth is not hard to kill and that a lie told well is immortal. Mark Twain (1835 - 1910), Advice to Youth
Truth is more of a stranger than fiction. Mark Twain (1835 - 1910)
Truth sits upon the lips of dying men. Matthew Arnold (1822 - 1888), 'Sohrab and Rustum,' 1853
The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth. Niels Bohr (1885 - 1962)
The truth is rarely pure and never simple. Oscar Wilde (1854 - 1900), The Importance of Being Earnest, 1895, Act I
Truth persuades by teaching, but does not teach by persuading. Quintus Septimius Tertullianus (160 AD - 230 AD), Adversus Valentinianos
Truth is beautiful, without doubt; but so are lies. Ralph Waldo Emerson (1803 - 1882)
I have been truthful all along the way. The truth is more interesting, and if you tell the truth you never have to cover your tracks. Real Live Preacher, RealLivePreacher.com Weblog, January 04, 2004
I guess sometimes you have to lie to find the truth. Scott Westerfeld, Extras, 2007
Turns out if you never lie, there's always someone mad at you. Scott Westerfeld, Extras, 2007
How often have I said to you that when you have eliminated the impossible, whatever remains, however improbable, must be the truth? Sir Arthur Conan Doyle (1859 - 1930), (Sherlock Holmes) The Sign of Four, 1890
Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened. Sir Winston Churchill (1874 - 1965)