Wednesday Morning Iraq Economic News Highlights 7-26-23
Wednesday Morning Iraq Economic News Highlights 7-26-23
Al-Sudani Confirms That The Government Is Proceeding With Its Measures To Bypass The US Federal Conspiracy
Information / Baghdad.. The leader of the State of Law Coalition, MP Muhammad Saadoun al-Sudani, confirmed on Wednesday that the government would proceed with its economic measures in order to overcome the issue of the high exchange rate of the US dollar against the Iraqi dinar.
Al-Sudani said in a statement to Al-Maalouma, "The biggest challenges facing the Al-Sudani government today are related to the high exchange rate of the US dollar against the Iraqi dinar."
He added, "The actions of the US Federal Bank are a conspiracy against the government to curtail its role at the regional and international levels, due to its success in attracting solid international companies to implement important service projects."
He pointed out that "the Sudanese government is continuing its financial measures to overcome the crisis of the high exchange rate of the US dollar against the Iraqi dinar in the local market."
And the US Treasury decided, during the past week, to stop 14 Iraqi banks from trading and selling hard currency, which caused a rise in the exchange rates of the dollar in the local markets. LINK
wciappetta NNP TEAM: Now this report seems to confirm my thoughts. Certainly, an Iranian invention; the only international effort the US wanted to curtail, the Iraqi effort in Syria and the pipeline to the Mediterranean because of Sanctions on Syria. It also would make direct route for Iran through the same pipeline. As everyone should know by now the US under the Stategic framework agreement, is happily moving forward to bring Iraq international. The three-year budget certifies such. The Syrian issue is merely a small divot barely noticed by most along the ride; But there is definitely a connection as this report confirms.
The US State Department Reveals The Destination Of The Iranian Money Owed By Iraq In Dollars
2023.07.26 - Baghdad - Nas US State Department spokesman Matthew Miller announced that Oman will receive part of the Iranian funds frozen in Iraqi banks.
"This money can only be used for non-sanctionable activities," Miller said in his press conference.
He added, without going into details in this regard: "As we said earlier, we thought it was important to get this money out of Iraq because it is a pretext used by Iran against Baghdad."
This US State Department official also confirmed that any spending of these funds must be approved by the US Treasury Department.
Meanwhile, Nasser Kanaani, a spokesman for the Iranian Foreign Ministry, said on Monday that "Iraq has deposited our money in an Iraqi bank."
Kanani added, "South Korean officials made positive promises regarding the release of funds. The tour of officials from countries in the region aims to facilitate the revival of the nuclear deal, the lifting of sanctions, and the release of blocked funds."
Earlier, a spokesman for the US State Department, in his press conference, confirmed the reports about the release of about three billion dollars of Iranian funds withheld in Iraq.
Miller indicated, in his press conference at the end of June, that this procedure is taking place in order to carry out humanitarian transactions, and in past years, previous US governments also approved such transactions in accordance with US law in coordination with the Iraqi government.
Prior to that, Reuters reported, quoting a senior official at the Iraqi Foreign Ministry, that after obtaining the approval of the United States, Iraq will pay its debts amounting to about two billion and 760 million dollars to buy gas and electricity from Iran.
On Saturday, the unnamed official told Reuters that Iraqi Foreign Minister Fuad Hussein obtained US approval after meeting with his US counterpart, Anthony Blinken, on the sidelines of the recent Riyadh conference.
It is noteworthy that Iraq depends on Iran for energy supplies due to several decades of conflict and war, in addition to the imposition of international sanctions on it.
But US sanctions on Iran's oil and gas industry made it difficult for Iraq to pay Iran money for these purchases, and this issue has become a contentious issue between Tehran and Baghdad. Therefore, in recent years, Iran has repeatedly cut off the flow of gas in response to these debts.
Last March, Iran International received secret messages from the Iranian Ministry of Foreign Affairs, which show the strictness of the Trade Bank of Iraq regarding the withdrawal of withheld Iranian funds, as well as the contradictions of Ibrahim Raisi's government in this regard.
According to a document containing several new secret messages issued by Iran's Foreign Ministry, the "Trade Bank of Iraq" is not willing to carry out the multi-billion-dollar transactions requested by the Iranian side, and is willing to release Iran's resources only in humanitarian cases and in small quantities, also very strictly and with the full supervision of the US Treasury. https://www.nasnews.com/view.php?cat=111610
Will Washington Succeed In Putting Pressure On The Sudanese Government?
Information / Baghdad... Independent MP Kazem Al-Touki confirmed, on Wednesday, the existence of American pressure against the government of Muhammad Shia'a Al-Sudani, with the aim of implementing its plans or heading towards exploiting important files that affect the people to inflame the street against it.
Al-Touki told Al-Maalouma, "America plans to drag the Iraqi people towards standing against the government by carrying out some practices that would make the government's task difficult and exploit that in the electricity file and obstruct the arrival of gas fuel to stations under the pretext of sanctions."
He added, "The government that does not come in accordance with American standards and moves against Washington's will, America will work to exert pressure against it with the aim of dragging it towards implementing what it seeks."
Al-Touki pointed out, "The possibility of excluding Iraq from the American decisions in order to ensure that the people get what they want, especially in the electricity file," noting that "Washington continues the policy of pressure to implement its goals."
And he indicated that "America can facilitate the process of purchasing gas needed to operate power plants without interfering in this file, but it continues the process of pressure on governments that do not follow their will." LINK
Parliament Is Challenging This Time The Budget Previously Approved
Policy 2023/07/26 Number of readings: 231 Baghdad-Iraq today: The Finance Committee announced that it has submitted appeals to the Federal Court for the budget regarding investment budget allocations for the governorates.
And the representative of the committee, Mustafa Al-Karawi, said in a press interview, "I submitted appeals to the Federal Court regarding the budget regarding the investment allocation budgets for the governorates." Al-Karawi added, “This is because of the addition of notes that contradict Article Two, Fourth, A: First.” LINK
Washington Intervenes On The Line Of The Problem Between Baghdad And Erbil: Find Solutions To Your Problems
Policy 2023/07/26 Number of readings: 243 Baghdad - Iraq today: The United States of America urged the Kurdistan Regional Government and the Iraqi federal government to resolve the existing differences between them, especially those related to the general budget and the oil and gas law.
A spokesman for the US State Department said about the existing differences between the regional and federal governments, in a press statement, “We urge Erbil and Baghdad to resolve their differences regarding the budget and the oil and gas law.” https://www.patreon.com/posts/86680366?pr=true
Specialists: Fears Of Sanctions Behind The Reduction Of US Bonds
Economical 2023/07/26 Baghdad: Hussein Thaghab Al-Tamimi Economic specialists suggested that fears of US sanctions on the Iraqi banking and monetary system were behind Baghdad's move to reduce US bonds, while others considered it an important step towards diversifying the investment portfolio.
Iraq reduced its holdings of US bonds to more than $8 billion during the first five months of 2023, to reach the 36th rank among the 38 countries with the largest holders of US Treasury bonds.
This comes days after the US Treasury announced imposing new sanctions on 14 Iraqi banks, months after imposing similar sanctions on 4 important banks.
Financial expert Aqil Jabr Ali al-Muhammadawi told Al-Sabah, "Reducing Iraq's holdings to more than $8 billion indicates that it senses economic risks involving continuous international sanctions from the US Treasury, in light of the restrictions of the Federal Bank and the US Treasury on the electronic transfer platform and its impact on the instability of the parallel exchange rate market."
He added, "The reality of the situation requires an objective assessment of the risks and penalties and their impact on the economic and financial reality and the restriction of monetary policy, in light of the availability of spaces available for investment in bonds and assets in other countries that are safer and less risky, including China, India, East Asia, Europe and others." He pointed out that "the monetary policy of the Central Bank of Iraq is not free-handed nationally, as is evident from the American pressures," explaining that the latter is exercising the hidden hand controlling the reality of Iraqi banks.
For his part, Hassan Ali Abd, an expert in financial affairs, explained that "safe and qualitative investment enhances Iraq's financial capabilities, and confronts the challenges that occur in more than one detail."
He added to "Al-Sabah" that "despite the decline in Iraq's possession of US bonds, it is still in an advanced position among the Arab countries," pointing out that "the diversification of the investment portfolio represents an important step in economic performance and reduces risks in financial investment work."
And he hinted that "reducing the possession of US bonds sometimes comes from heading to the safest investment, and here gold may be one of the most important destinations that the country is heading towards, and this is one of the obvious things that creates flexibility in financial investments."
As for the consultant in development and investment, Amer Al-Jawahiri, he told Al-Sabah:
He explained that "the method of managing the country's resources and its development projects and moving to diversify its economy improves the credit capabilities of Iraq and the extent to which it attracts direct investments, both local and foreign, and that means moving the Iraqi economy."
Al-Jawahiri called on "the government and the central bank to disclose the investment of the reduction amounts for those bonds in terms of transparency related to the generational reserve and the extent of the benefit of these investments." https://alsabaah.iq/81228-.html
Al-Tamimi: The Oil And Gas Law Needs To Include The Decisions Of The Federal Court
Economy |Today Baghdad today – Baghdad Today, Wednesday (July 26, 2023), legal expert Ali Al-Tamimi stressed the importance of not violating the decisions of the Federal Court when moving towards approving the oil and gas law, especially since its decisions are final and binding for implementation.
Al-Tamimi said in a clarification received by “Baghdad Today”, that “the draft oil and gas law consists of 53 articles, as it required the establishment of the Federal Oil Council headed by the Prime Minister and the membership of the Minister of Oil and Finance and the governor of the Central Bank and a representative of the producing provinces and regions and experts in oil and takes into account the representation of the components of the Iraqi people. It is responsible for setting petroleum policies, issuing instructions for implementing contracts, approving exploration, development and production, approving contracts and other terms of reference stipulated in the project.
He added, "The signing of the contracts is by the Federal Ministry of Oil, provided that it is approved by the Federal Oil Council within 3 months and is referred to the Council, otherwise it is considered null and void. The project also stipulated the need to review the contracts concluded and to be amended in accordance with this law, which did not specify these contracts, as it was the first to be contracts of service only and not participation."
And he indicated that “the law needs to be imposed on the contracting companies to employ Iraqis exclusively, as self-producing countries do, and this is important, in addition to the issue of previous contracts to legislate the law, so it must be stipulated, and the problem with contracting companies other than the constitution and decisions of the Federal Court must be resolved according to the principle of joint management of the two parties, i.e. the federal government and the region, with the exclusive right of disposal of the federal government in accordance with Article 135 of the Civil Code, which states (whoever disposes of the property of others, his disposition depends on the permission of the owner).”
He pointed out that “the law needs to explicitly stipulate the penalties that affect the parties that conclude contracts in violation of this law, as well as specifying the oversight bodies that have the right to view these contracts, in addition to its need to stipulate the rest of the oil products, not just oil and gas.”
Al-Tamimi stressed, “The need for the draft law to include the decisions of the Federal Court, especially since these decisions are final and binding on all authorities, according to Article 94 of the Constitution.” LINK