What is Iraq’s position?.. Law: America controls financial movement via “Swift”

Information / special… The deputy of the State of Law coalition, Thaer al-Jubouri, said, on Wednesday, that America will not allow Iraq to leave the Federal Bank of its own volition, while stressing that Washington controls the financial transactions of the Federal Bank.

Al-Jubouri said in an interview with the information agency, “America will not allow Iraq to leave the Federal Bank,” noting that “America has developed policies and paragraphs to serve their own interest at the expense of all countries affiliated with the Federal Bank.”

And he continued, “Washington controls the global financial movement through the electronic Swift system, and Iraq will not be able to exit this system at the present time,” pointing out that “the latter imposes the passage of the dollar in the Federal Bank before it reaches Iraq as a result of the oil sale process.”

And the leader of the National Coalition, Iyad Allawi, had been accused in a televised interview followed by Al-Malouma, that “the United States of America is practicing blackmail against the Sudanese government,” indicating that the decisions of the US Federal Bank are systematic and deliberate to control Iraq.

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Al-Fateh warns Al-Sudani of Washington’s policy in Iraq

Information / special… The leader of the Al-Fateh Alliance, Ali Al-Fatlawi, confirmed today, Wednesday, that the measures of the Prime Minister, Muhammad Shia’a Al-Sudani, will work to reduce the exchange rates of the dollar, while he warned the government about Washington’s policy.

Al-Fatlawi said in an interview with Al-Maalouma agency, “The measures issued by Al-Sudani during this period will reduce the exchange rate of the dollar in a period not exceeding two weeks from now,” noting that “remedial to the crisis needs time because of the planning and study that prompted America to put pressure on the current government.

He added, “The Federal Bank’s actions that led to raising dollar prices during the current government are not by chance,” stressing that “Washington has been planning to exploit the economy card for some time.”

The leader of the Al-Fatah Alliance explained, “The Sudanese government must be more cautious of the policy that Washington is pursuing with Iraq in order to pass its plans in the coming period.”

The leader of the State of Law Coalition, Haider al-Lami, had accused, in an interview with the Information Agency, “the role of the US ambassador in Baghdad, Alina Romanowski, of” sensationalism “, accusing her of exerting pressure on the government of Muhammad Shia’a al-Sudani, which caused a rise in the exchange rates of the dollar.

Almaalomah.me

Parliamentary wealth: All roads are open to passing the oil law in parliament

Information/Baghdad… A member of the Oil, Gas and Natural Resources Committee, Kazem Al-Tooki, revealed that there are parliamentary efforts to pass the oil and gas law soon, indicating that all roads are clear towards passing the law.

Al-Touki said in a statement to Al-Maalouma, that “the political situation that the country is going through is ready to accelerate the oil and gas law and all controversial laws.”

He added that “the legislation of the law will serve the oil-producing provinces,” noting that “the legislation of the law is among the priorities of the government program and the political agreement within the State Administration Coalition.”

Stressing that “the legislation of the law during the current session will be a radical solution to the dispute over oil wealth,” and added that “there are efforts to pass the law in the dome of Parliament.”

The Al-Fatah Parliamentary bloc had suggested, earlier, that the oil and gas law be approved during the current session due to the presence of the political will of all forces, including the Kurdish forces, stressing that the recent meeting of the state administration forces seriously discussed the issue in order to approve it in the current session.

Almaalomah.me

Its volume exceeded 200 trillion dinars.. New details about the budget and the exchange rate delay approval

Shafaq News / Member of the Parliamentary Finance Committee, Representative Nermin Maarouf, announced, on Friday, the size of the 2023 budget, noting that it exceeds 200 trillion dinars, while pointing out that the fluctuation of dollar prices and the failure to fix its price in the budget delayed sending it to Parliament.

Maarouf told Shafaq News agency, “The recent changes and the reduction in dollar prices have disrupted or delayed sending the budget from the government to parliament,” indicating that “the price of the dollar in the budget has not been determined yet after the government decided to reduce its price and circulation to 1,300 dinars per dollar.”

And she pointed out that “changing the price of the dollar and its official approval will determine the budget deficit and its amount, if any, and we are awaiting the official approval of the dollar price in the next budget.”

Maarouf indicated that “the size of the 2023 budget exceeds 200 trillion dinars, and it is awaiting the arrival of the budget to parliament and discussing its doors in detail.”

For his part, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, indicated that there is a controversy about the price of a barrel of oil for the purposes of calculating oil revenues in the general budget for the year 2023, between 65-75 dollars per barrel.

In his interview with Shafaq News agency, Salih said, “We are waiting for the discussion of the budget issue to be launched in the coming days, and for the final opinion of the Council of Ministers, before the draft budget law is presented to the Parliament.”

And the Iraqi government revealed, the day before yesterday, Wednesday, that the Ministry of Finance had begun to re-prepare the general budget for the year 2023 according to the new exchange rate (130) thousand dinars per 100 dollars.

A source in the government told Shafaq News agency, “The ministry needs some days to prepare a draft law, which will be completed and sent to the Council of Ministers next week.”

The source stressed that “the cabinet needs only one session to discuss and approve the general budget law for the year 2023.” On Tuesday, the Council of Ministers approved the decision of the Board of Directors of the Central Bank of Iraq to amend the exchange rate of the dollar against the dinar, equivalent to 1,300 dinars per dollar.

Shafaq.com

Blinken: We support the Iraqi economy and we want it to have independent energy

Shafaq News / US Secretary of State Anthony Blinken announced, on Thursday, support for Iraq’s economy, and while stressing the need for Baghdad to have an independent energy, Foreign Minister Fuad Hussein stressed the country’s need for Washington’s support in various fields.

Blinken said, during a joint press conference with Hussein, which was followed by Shafaq News Agency: “It gives me great pleasure that my old friend Fuad Hussein is here at the State Department in Washington. We have worked together for many, many years, but it is always wonderful to have him here.”

He added, “This is an important moment.. There is an important meeting, and we have a strategic framework agreement with Iraq, and we are now focusing very intensely on the economic dimension of that agreement and the work that we can do together, to continue to strengthen Iraq’s economy and its integration and reintegration into the region, in ways that make a material difference.” in the lives of the Iraqi people.

He added, “There will be a special focus on energy and electricity. Iraq must be independent in the field of energy, and this is something that I think the United States and others can continue to do, and Iraq is moving in this direction.”

And the US Secretary of State indicated that “President Biden had a very good conversation with Prime Minister Muhammad Shia’a Al-Sudani only a few days ago,” adding, “We look forward with Al-Sudani to strengthen the strategic partnership that unites Iraq and the United States.”

For his part, the Iraqi Foreign Minister appreciated the warm reception by his American counterpart, saying: “Thank you, Tony.. Thank you for your friendship – my personal friend, but you are also a friend of the Iraqi people.. Thank you very much for your support in the war against ISIS.”

Hussein stated, “We worked together, fought together, defeated ISIS together, and we will continue to work together on the basis of building and rebuilding our economy,” adding, “We need your support in various fields, and we will continue our cooperation.”

Shafaq.com

The Iraqi delegation arrives in Washington to discuss the dollar crisis and monetary policy

Information/Baghdad… Foreign Minister Fuad Hussein arrived, Thursday, in Washington at the head of a high-ranking government delegation that included a number of financial and banking figures to discuss the crisis caused by the US Federal Bank’s actions regarding the sale of the dollar.

A statement of the Ministry of Foreign Affairs, a copy of which the information received, stated that “Minister Fuad Hussein arrived in Washington at the head of a high government delegation that included a number of financial and banking personalities.”

She added, “Hussein will meet his American counterpart, Anthony Blinken, and will hold his dialogues with the American side, which will focus on supporting Iraq’s monetary policy and exchanging financial and banking support with the aim of enhancing the Iraqi government’s vision of its measures regarding the dollar exchange rate.”

She indicated that “the Iraqi delegation will discuss with senior officials in Washington bilateral relations and ways to enhance them in various sectors, based on the strategic framework agreement between the two sides.”

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Al-Fateh: The application of the American “Swift” system is a pressure tool to starve the Iraqi people

Information / Baghdad… The representative of the Al-Fateh Alliance, Aqil Al-Fatlawi, accused, on Thursday, the World Bank and the US administration of imposing will and blackmail through the application of the Swift platform, indicating that the United States of America has passed the stage of military domination and moved towards economic domination through those institutions under the international cover.

Al-Fatlawi said, in a statement to Al-Maalouma, that “the United States of America has passed the stage of military domination and turned to economic domination through institutions disguised under international cover, including the World Bank and the Swift platform,” considering that “these institutions are a bad example of domination and starving people.”

He added that “the United States of America at the present time is still the restrictive and pressing element on the Iraqi economy, especially after Iraq’s exit from the seventh and sixth items.”

Al-Fatlawi called on “the government to take more steps to disengage from the US federal government,” noting that “the government has actually started its steps in this direction to lift the restrictions that the US federal controls.”

Al-Fatlawi pointed out that “the meeting held by the Governor of the Central Bank of Iraq, Ali Al-Alaq, with the Assistant Secretary of the US Treasury, succeeded in releasing a lot of Iraqi funds secured by the Federal Reserve, in addition to paving the way for the success of his current negotiation in Washington.”

Almaalomah.me

Iraq reassesses its policies with the adoption of a new price for the dinar

BAGHDAD – Iraq revalued its currency, which had collapsed against the US currency, just over two weeks after replacing the central bank governor as part of an effort to stabilize the exchange market.

On Wednesday, the Central Bank began selling the dollar at the new official price at 1,300 dinars, instead of the previous price at 1,450 dinars, hours after the government approved a recommendation from monetary decision-makers to ease pressures on individuals and companies.

The Central Bank confirmed in a statement published by the Iraqi News Agency that it will continue its procedures until the stability of the new exchange rate, and said that it “is seeking to achieve its goal of stabilizing the general level of prices to protect the purchasing power of citizens.”

The second largest producer in OPEC came under pressure from the United States to limit the flow of money to neighboring Iran, as the Federal Reserve (the central bank) last November imposed stricter controls on dollar transactions than Iraqi banks.

The measures contributed to a shortage of dollars in the Iraqi market, led to a decline in the local currency to more than 1,670 dinars per dollar, and increased inflation, which prompted Prime Minister Muhammad Shia al-Sudani to replace the central governor, Mustafa Ghaleb Makhaif.

The exchange rate of the dollar against the Iraqi dinar was recently reflected in the local markets, and this appeared in the form of rises in the prices of commodities and foodstuffs, and pushed them to rise significantly.

Against the background of the significant rise in the exchange rate and the subsequent rise in the prices of foodstuffs, goods and services, the capital, Baghdad, witnessed demonstrations in front of the Central Bank building, to demand a reduction in the exchange rate of the dollar.

Ziad Daoud, an emerging markets expert at Bloomberg Agency, said that Iraq is facing a scarcity of dollars, which is causing the dinar to weaken on the black market.

He said, “The reassessment will not solve the problem, nor will it change the supply of dollars in the market. Instead, it increases Iraq’s dependence on oil, especially when combined with increased government spending.

An Iraqi delegation headed by Central Bank Governor Ali Al-Alaq held talks last week with a delegation from the US Federal Reserve in Turkey to discuss possible measures to reduce the exchange rate of the dollar against the dinar.

Al-Alaq confirmed in a statement to reporters that another round of talks will be held in Washington, describing the results of the current round as “good.”

Last month, Prime Minister Mohamed Shia al-Sudani said he was scheduled to visit Foreign Minister Fuad Hussein with Acting Central Bank Governor Ali Al-Alaq and Washington advisers to discuss issues including newly applied standards for dollar transfers.

It is expected that the new budget, which has not been approved, will depend on the new exchange rate for the purposes of evaluating its revenues and expenditures in foreign currency, while the country’s reserves of hard currency have increased to $115 billion.

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, stated that the decision to adjust the exchange rate is commensurate with the increase in the current account of the balance of payments to the gross domestic product, which currently stands at about 15 percent.

He said, “These indicators prompted monetary policy to adjust the exchange rate and raise the external value of the Iraqi dinar.”

He added, “The decision supports the availability of official foreign reserves supporting Iraq, which provides standard coverage for total foreign trade for about 20 months of import, while the global average is three months.”

He continued, “The decision to raise the value of the dinar will also lead to combating inflationary activities and expectations that have exacerbated in the last three months, as this time the central bank followed a strict monetary policy pattern by maximizing the external value of Iraqi cash.”

This matter, according to Saleh, imposes stability in the general level of prices, and is also important in the stability of individuals’ cash income and the maintenance of living standards.

So far, Iraq has not approved the new budget. The Parliamentary Finance Committee suggested, in a race, that the government would send it to Parliament during this week.

Rawabetcenter.com

Baghdad and Erbil are close to resolving the oil and gas law

Baghdad and Erbil are close to resolving the energy file in the country, after Iraqi Prime Minister Muhammad Shia al-Sudani revealed, on Tuesday evening, that there is a draft oil and gas law that is being reviewed between Baghdad and Erbil in order to ripen it and then approve it, in a step that is believed to be resolving the most important dispute over oil wealth between the two countries. The federal government and the Kurdistan region. It will also organize all files related to this throughout Iraq.

Al-Sudani said during the weekly press conference, “The oil and gas law is one of the government’s obligations, and there is a draft law being circulated between the Federal Ministry of Oil and the Ministry of Natural Resources in the Kurdistan region.”

He pointed out that “after the approval of the budget law, the draft oil and gas law will be discussed.”

Al-Sudani announced that “the cabinet agreed to sign a fifth round of licensing, with a final signature, for natural gas investment.”

He explained that “the natural gas investment project is one of the important projects that have been suspended for four years, and it provides a quarter of the amount of imported gas within 15 days of its implementation, and Iraqi natural gas can be relied upon during the next two years as an alternative to imported gas, and it covers all local needs.”

The oil and gas law is one of the most important reasons for the differences between Baghdad and Erbil, and over the course of previous governments and parliamentary sessions, the political blocs did not agree on a final version of this law.

The Kurdish political forces did not want to approve the oil and gas law, taking advantage of a constitutional clause that gives the region’s constitutions the exclusive powers of the government, which it enacted according to its own law.

However, after the decision of the Federal Court, the region needs legal cover to conclude agreements with international companies that have begun to fear investing in oil and gas in the Kurdistan region, especially after the armed groups targeted the sites of the “Dana Gas” company in conjunction with the Federal Court’s decision on the illegality of the region’s law and its call to Subjecting the oil wealth to the federal government according to Articles 110 and 111 of the Constitution.

Political circles believe that the oil and gas law is one of the most prominent laws that would resolve the crisis between Baghdad and Erbil, especially after the recent moves that preceded and followed the formation of the Sudanese government and the exchange of visits between the two sides.

In light of tangible political openness, and cooperation to resolve the outstanding issues between Baghdad and Erbil, there were common understandings that put an end to a long period of disagreements.

In recent months, the Iraqi arena has witnessed political movements between the region and the federal government in order to resolve the file of the oil and gas law, which is one of the most prominent laws that would contribute to solving many problems related to the energy sector between Erbil and Baghdad.

The oil and gas law in Iraq, which has been awaiting legislation in the current parliament since 2005, stipulates that the responsibility for managing the country’s oil fields must be entrusted to a national oil company, and it is supervised by a federal council specialized in this matter.

However, since 2003, Baghdad and Erbil, the capital of the Kurdistan region of Iraq, have disagreed on the issue of managing the region’s oil fields, as Baghdad says that the region does not authorize the real oil export sums, and does not hand those sums over to it, while Kurdistan says that exports from the oil fields in its territory must be subject to To manage them, whether in terms of granting licenses for new exploration, managing existing fields, controlling production and exporting to the destinations you choose, or contracting for purchase and development.

According to the Oil and Gas Committee in the Iraqi parliament, there are some proposals, including the establishment of an oil company in the Kurdistan region that is directly linked to the Federal Ministry of Oil in all its extractive and production operations. The proposals also include the establishment of another company concerned with gas investment, and a third for the investment of government refineries.

The law will be a radical solution to the dispute over oil wealth between Baghdad and Erbil, and even regulate all energy files throughout Iraq, but the Oil and Gas Committee must work with the Legal Committee, in addition to the Supreme Committee formed between the central and regional governments and the “SOMO” company, to complete the appropriate formula. To put solutions to all the controversial points in the file.

Iraq, the second largest oil producer in the Organization of Petroleum Exporting Countries (OPEC), has huge reserves of black gold, which represents 90 percent of its revenues, but the Iraqi Oil Ministry published an analysis last May that said that the regional government had committed “legal and procedural irregularities” in Selling oil caused huge losses.

The Iraqi government relies heavily on the price of a barrel of oil and oil revenues in its budget, in a country facing economic difficulties and in need of several infrastructure projects after years of war.

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Al-Sudani took new measures to contain the dollar exchange issue

Shafaq News / On Monday, the Iraqi Prime Minister, Muhammad S. al-Sudani, issued new decisions to alleviate the problem of Dinar-dollar exchange rates.

Shafaq News Agency exclusively obtained a document about the measures, which included:

1- Increasing the number of beneficiaries from the “social protection network” and providing the poor with food baskets.

2-Allowing the government banks to sell dollars to citizens at the official rate (1470 dinars per $) for necessary matters, including treatment, Hajj, travel, and studying.

3-Binding all government agencies to sell all goods inside Iraq in dinars at the official rate.

4-Selling goods and services of some private sector companies at 1470 dinars for one dollar, especially the Airways offices, trade agencies, telecommunications, and Internet companies.

5-Providing the Trade Bank of Iraq (TBI) with 500 million dollars for opening credits for small merchants.

Earlier today, al-Sudani replaced the governor of the country’s Central Bank, Mustafa Ghalib Mukheef, following a weekslong plunge of the Iraqi dinar.

Mukheef, who was in the post since 2020, was replaced by Muhsen al-Allaq, as interim governor.

Al-Allaq, according to the source, was given three months of probation to assess his performance.

“He was invited to attend the meeting after voting him in,” the source continued.

A source, who preferred to remain anonymous, told Shafaq News Agency that Mukheef’s dismissal was taken following deliberations between the Coordination Framework’s leaders and Prime Minister al-Sudani.

The dinar hit new lows on Friday, reaching about 1,670 to the dollar. The currency has lost nearly 7% of its value since mid-November. The official rate stands at 1,470 dinars to the dollar.

The drop in the past two months has affected markets in the oil-rich but corruption-plagued Iraq, where many are seeing their purchasing power take a hit.

Some Iran-backed politicians in Iraq have blamed the drop on recent measures by the U.S. Treasury. The United States has sanctioned several Iraqi banks dealing mainly with Iran, which is under American sanctions, amid concerns that hard currency is being routed from Iraq to Iran. In addition, late last year, the Federal Reserve began taking measures on transactions to slow the flow of dollars into Iraq.

The drop comes when Iraq’s foreign currency reserves are at a record high of around $100 billion.

Shafaq.com