Does Washington have a hand in the dollar crisis, and what is the validity of Baghdad’s intention to print a new currency?

Today; Monday – the Parliamentary Finance Committee denied the government’s intention to print a new local currency, while revealing the influence exerted by the US Federal Bank on the continuation of the dollar crisis.

Committee member Moeen Al-Kazemi said in a statement to Al-Mutala’ Agency, “Talk about the federal government intending to print a new local transaction has no truth at all, and the Iraqi dinar has a cover and bonds of approximately 150 billion dollars.”

Al-Kadhimi added, “Addressing the discrepancy in the dollar exchange rate does not happen by printing a new currency, but rather through thoughtful steps that should be implemented by all concerned parties.”

He pointed out, “The Central Bank covers the needs of merchants at the official price of 132 thousand dinars for every 100 dollars, and the reason for the disparity is the black market.”

He stated, “The influences exercised by the US Federal Bank to maintain this crisis for political purposes in Iraq.”

Almutalee.com

Parliamentary hosting of the Governor of the Central Bank of Iraq regarding the dollar exchange rate

Shafaq News / The Parliamentary Finance Committee announced on Monday that it will host in the coming days the governor of the Central Bank of Iraq and its general directors regarding the lack of control over the exchange rate of the US dollar against the dinar.

Committee member Mustafa Al-Karaawi told Shafaq News Agency, “The committee will host this week the Governor of the Central Bank, Ali Al-Alaq, and the general directors of the bank to find out the reasons for the rise and fall in the dollar exchange rate in the parallel market and who is the party concerned with implementing the reform packages launched by the Central Bank.” .

He pointed out that “the instability of the dollar exchange rate has caused an economic problem, and there is no clear policy for the central bank,” stressing that “the government must implement what the bank wants through the reform packages it launched, and therefore controlling the exchange rate is a shared responsibility.” between the Central Bank and government agencies, especially those concerned with import and customs ports.”

Al-Karawi pointed out that “hosting the bank’s governor will address the economic crisis, the rise and fall of the dollar, and the agreements the bank signed with the US Federal Reserve and the World Bank.”

The exchange rates of the US dollar have witnessed an upward increase against the Iraqi dinar for several months, and reached its peak this month when the price reached 1,655 dinars to one dollar, despite the government and the Central Bank setting an official exchange rate of 1,320 dinars to one dollar.

Shafaq.com

The Iraqi currency auction and World Bank determinants.

Muhammad Hassan Al-Saadi – Since the US invasion of Iraq, the World Bank and the US Treasury have been providing the necessary funds to its central bank, with funds received estimated at 10 billion dollars or more annually.

This money is from its oil sales, so it is placed in a fund in the Federal Bank, while Iraq seeks to obtain one billion dollars in cash from it, while the bank rejected this request, under the pretext that it conflicts with its efforts to stop the flow of dollars out of the country.

Iraq, for its part, announced its need for a billion dollars in cash to support its deteriorating dinar, while the US Treasury is still studying the request. In contrast, discussions are still raging in the internal corridors of the Federal Bank, in light of the absence of a clear and transparent financial system in Iraq, which can Relying on it to receive hard currency, as large amounts of dollars flow to private banks and money exchange shops, which are subject to unclear mechanisms, and there are many suspicions of corruption, money laundering and smuggling outside Iraq.

The US Federal Bank informed Iraq of its refusal to send a shipment of dollars, and considered it inconsistent with Washington’s goal, to reduce Iraq’s use of the US dollar, in favor of electronic transactions, which can be tracked more easily, as US officials confirm that smuggling operations out of Iraq are carried out by corruption mafias. It negatively affects the price of the dollar internally, and undermines the efforts of the Central Bank of Iraq to control its movement internally.

For its part, the Central Bank of Iraq is trying to make some adjustments to the mechanisms of financial work, so it initiated a rapid, phased plan, based on dealing in dinars in the internal Iraqi market, to get rid of the dollar until 2024, by controlling the efforts of informal companies and individuals subject to sanctions. , to buy billions of dollars, through currency auctions.

Government measures would restrict the movement of the dollar and revitalize the dinar to be the only one in circulation in the market, in addition to using modern mechanisms and technologies, and developing the financial system in a manner consistent with the development witnessed by the global system, and achieving monetary stability in the country.

Although there is a suspicion of a political aspect in the American measures, it does not negate the necessity and need of Iraq to develop and automate its financial sector, and prevent the smuggling of its oil imports outside its borders, as this is in its interest and its people, before any other party in the world..

Burathanews.com

A parliamentarian reveals: A Jordanian bank accounts for 75% of dollar transfers in Iraq

A member of the House of Representatives, Hussein Arab, revealed that a Jordanian bank had acquired 75% of dollar transfers in Iraq, and while revealing the volume of “forbidden” trade, he issued a warning about the rise in the dollar.

Arab said in an interview with the Twenty program broadcast by Al-Sumaria TV, that “there are many and major failures in the issue of the dollar and the parallel market, and we pointed this out a lot with the presence of information confirming the acquisition of the National Bank of Iraq (a Jordanian bank) of the total of 75% of foreign transfers,” stressing “work to The basis for holding this bank accountable and knowing the reasons for its acquisition of this percentage from the Central Bank auction.”

A member of the House of Representatives asked whether the liquidity of the National Bank of Iraq is proportional to the volume of dollars taken from the Central Bank? Pointing out that the Central Bank reinforces this bank with dollars from outside the platform, adding: We want to know the mechanism Transferring the dollar through the central bank.

He considered, “Limiting financial transfers to one bank out of 73 banks is a real disaster,” asking: “Why do we give the National Bank of Iraq (Jordan) this amount of dollars? Is the entire Iraqi economy linked to this bank?”, revealing that “the Central Bank did not transfer The dollar is for this bank from within the electronic platform and even outside it through what is called direct purchase, as it is a customary bank.”

Arab continued, “We sacrificed the Iraqi private banking sector in order to revive the foreign banking sector inside Iraq,” warning that “the Iraqi private banks will soon close their doors due to the central bank’s blunders, extortions, and arbitrary measures, stressing that what comes next will be difficult.”

He believed that “dollar prices will continue to rise if this issue is not addressed,” noting that “the dollar crisis that Iraq’s neighboring countries are suffering from has had a negative impact on our country,” noting that “former Prime Minister Mustafa Al-Kadhimi had permission from America to grant the dollar to… Iran and these tolerances have now ended.”

Regarding prohibited trade, Arab explained that “its volume reaches 10 billion dollars annually,” stressing “the necessity of drying up the sources of smuggling and taking quick government measures.”

He continued, “Alcoholic beverages, cigarettes, and gold are imported through the border crossings at a zero percent rate, even though their taxes are 200%, indicating that most of them are smuggled through the crossings in Kurdistan,” adding, “There are operations of currency smuggling and tax and customs evasion from the border crossings.”

Burathanews.com

Expert: 70% of dollar transactions have disappeared in Iraq, and the Central Bank wants to end the era of “dollarization”

Baghdad – 964… An economic expert says that the Central Bank eliminated 70% of dollar transactions in the Iraqi market, noting that this is the result of the policies followed by the bank’s governor, Ali Al-Alaq, throughout a year of assuming responsibility, as he began restricting “dollarization.”

Nabil Jabbar Al-Tamimi – economic expert for the 964 Network :

Since Central Bank Governor Ali Al-Alaq assumed the position, he has been working on a policy of ending dollarization.

What is meant by dollarization here is to end excessive dealings with the US dollar, which Iraqis have used since 2003 as the primary currency to pay for most purchases in the market.

The senior leadership in the Central Bank believes that this excessive dealing in the dollar threatens the reserve of the American currency, in addition to the continued fluctuation of its prices locally.

The Central Bank’s policy has now eliminated 70% of dollar transactions in the Iraqi market, and the remaining 30% is linked to the issue of remittances abroad within the framework of the banking sector, especially those heading to Iran, then Lebanon and Syria.

There are people within the Central Bank who may work to obstruct the implementation of the bank’s policies, which has caused the significant rise in the value of the dollar.

964media.com

Al-Sudani identifies the parties insisting on a rise in the exchange rate in Iraqi markets

Information / private… Today a member of the House of Representatives, Muhammad Saadoun Al-Sudani, identified the parties insisting on a rise in the dollar exchange rate in Iraqi markets, highlighting the difference between the Al-Kadhimi and Sudanese governments.

Al-Sudani said, in an interview with the Al-Ma’louma Agency, that “there is a difference regarding the file of the exchange rate of the dollar against the dinar between the previous and the current government,” indicating that “it was the Al-Kadhimi government that worked to raise the exchange rate, while Al-Sudani worked to reduce these prices.”

He added, “There are local internal agendas, as well as international forces, that insist on the dollar remaining at this high level,” pointing out that “the dollar is a major project whose goal is to force the government to follow a path desired by these international forces.”

The member of the House of Representatives explained, “The current government has fought a lot in several areas, especially the dollar, as well as the issue of importing gas from Iran, to try to prevent Iraq from giving money to the Iranian government, which the American Federal Bank stands behind.”

The series of rising dollar exchange rates in Iraqi markets is still continuing, amid conflicting opinions about the real reasons that led to the exhaustion of the local currency again, especially as it began to rise to levels that portend a great danger to the country’s economy.

Washington continues to create crises and create chaos through its malicious cards that it uses from time to time, as America continues to obstruct Iraq’s progress through many files, most notably the dollar.

Almaalomah.me

A deputy expects new government changes before the end of September

Information / Baghdad… On Monday, the leader of the coordination framework, Turki Al-Otbi, expected a new wave of changes in government positions to be issued at the end of this September.

Al-Atbi told Al-Maalouma, “The government change program is continuing and these changes will include 6 ministries,” noting that “they will not exclude any government institution, and no political bloc has objected to these changes so far.”

He pointed out that “the change of governors may be postponed due to the approaching provincial council elections, and that some governors are facing negative indicators and the government has their files complete.”

The government had changed many government positions, including deputy ministers, in accordance with a comprehensive government plan.

Almaalomah.me

Al-Sudani urges Iraqis to use electronic payment

Shafaq News / The Iraqi Prime Minister Muhammad Shiaa Al-Sudani chaired a special meeting to follow up on the implementation of the unified treasury account, stressing the need to urge citizens to use electronic payment.

His office said in a statement received by Shafaq News Agency, that Al-Sudani chaired a meeting devoted to discussing and following up on the steps for implementing the unified treasury account, and completing the application of electronic card/POS payment points, as well as discussing the facilities and incentives that can be provided to citizens who use electronic payment. In order to encourage them to do so.

Al-Sudani listened to a comprehensive presentation on the measures taken in this path, the rates of progress and requirements, as he stressed the necessity of continuing to hold meetings with technicians and specialists to remove obstacles, indicating that these steps are among the most important financial, banking and economic reform measures, which the government focuses on as a priority in its program. .

At the beginning of last June, the Central Bank of Iraq announced that Council of Ministers Resolution No. (23044) for the year 2023 had entered into force, which was to increase the number of electronic payment devices (POS) in government institutions and the private sector to enhance the culture of electronic payment and collection, and reduce the use of paper money in collections and transactions. Commercial.

Shafaq.com

Excluding the dollar from commercial transactions in Iraq by 2024

BAGHDAD – The Central Bank of Iraq announced last Sunday that all internal commercial and other transactions will be in dinars instead of dollars, and that external transfers will be dispensed with, starting next year.

The Governor of the Central Bank, Ali Mohsen Al-Alaq, said in a statement reported by the official Iraqi News Agency, “The coming year will witness the limitation of internal commercial and other transactions in dinars instead of dollars, except for those amounts that are delivered to travelers.”

He confirmed during the meeting with the heads of the councils and authorized directors of the banks licensed in Iraq that the bank is proceeding to dispense with external transfers next year and that local banks will rely on correspondent banks in external transfer operations.

According to Central Bank data, transfers via correspondent banks amounted to 60 percent of the total transfers outside the Central Bank’s electronic platform, while the implementation rate of verified transfers reached more than 95 percent.

This came after an agreement between the Central Bank of Iraq and the US Federal Reserve (Central Bank), similar to countries around the world, where central banks do not perform executive duties, and their role is focused on supervision and control.

The Central Bank sought to open direct channels of communication for Iraqi banks with their foreign counterparts in correspondence, commercial exchange, etc., in intensive stages.

The problems associated with the restrictions imposed by the United States on Iraqi banks are pushing the authorities to open other outlets, such as accelerating the search for trade swaps in other currencies.

Al-Alaqi explained that transfer channels are currently being opened in various currencies, including the Emirati dirham, the Turkish lira, the Indian rupee, and the euro.

He pointed out that the entry of most merchants into official transfer channels and the provision of the dollar at a price of 1,320 dinars was a direct reason for controlling the general level of prices and reducing the inflation rate, which is a basic indicator of the effectiveness of monetary policy.

He stressed that the black market price is not suitable as an “indicator” as it relates to the cash dollar for non-fundamental transactions and is not intended for the purposes of legitimate trade.

Officials are convinced that the new system of external transfer and sale of the dollar provides protection from risks for all parties to the operations, enjoys international acceptance and praise, and is consistent with the law on combating money laundering and terrorist financing.

Following this path also achieves an important initiative for direct relations between Iraqi banks and their accredited international counterparts.

Last April, the monetary authorities revealed that they had a program to restructure government banks, which numbered six, divided between commercial and specialized banks.

Official figures show that more than fifty banks operate in Iraq, but most of them have not introduced any updates to their activities, especially in terms of financial technology, which has become one of the determinants that measure standards of transparency and speed in securing payments and commercial transactions.

According to official statistics, only three major banks, namely Al-Rafidain, Al-Rasheed, and the Iraqi Trade Bank, account for about 85 percent of the total assets of the banking sector.

There is only one major international bank currently operating in the country, Standard Chartered, which has a small number of branches and focuses on major government projects.

Private banks will establish the new entity with support from both the Central Bank and the Iraqi Private Banks Association to provide services to small and medium-sized enterprises and people with limited income.

Since last summer, the government and monetary decision-makers have focused on setting a plan to achieve financial inclusion by adapting plans to upgrade the banking sector with structural reforms aimed at moving the wheels of the economy forward.

Although the financial inclusion rate rose to 33.5 percent in 2022 as a result of the measures taken by the Central Bank, it is still small compared to other countries in the Arab region, especially the Gulf, which have set goals to reach the level recorded in emerging economies.

The meeting discussed the mechanism for establishing “Riyadah Bank” and the societal importance that the bank will have, especially as it is consistent with the directives and vision of the Prime Minister.

During the recent period, discussions were raised on this topic, including the banks’ contributions to establishing “Riyada.”

The private banks will establish the new entity with the support of both the Central Bank and the Association of Iraqi Private Banks, to provide services to small and medium-sized enterprises, people with limited income, and young people with pioneering or traditional ideas and projects.

The working mechanisms of this new bank, which will be effective for those wishing to open small productive and commercial projects that contribute to developing the local economy and reducing the unemployment rate, with direct support from the Central Bank.

Rawabetcenter.com

The Dinar is playing a losing game with the dollar

Muhammad Hassan Al-Saadi – Once again, the main player returns on the field, to control the economic movement of Iraq, and Washington returns to impose itself as the “captain” and lead the match, especially since the people know very well who is leading this game and controlling the rounds of the match.

Sometimes we see it satisfied with the government’s performance, and the way it deals economically with the US Federal Bank, or with the requirements of the World Bank, and at other times we see it coming out with new controls to control the movement of the dollar and announcing new punitive controls for Iraqi private banks that violate buying and selling operations in the local currency market. .

The pretext that Washington is still clinging to is that Iraq is not adhering to the controls set by the Federal Bank to limit the smuggling of dollars abroad, especially Iran, which is subject to severe American sanctions, and it believes that Baghdad has still not done what is required of it in stopping currency smuggling. Whether from the Kurdistan region or other outlets, linked to neighboring Iran.

Iraq, for its part, and despite the efforts made by the Sudanese government to prevent the smuggling of the dollar abroad, pursue traders and smugglers, control the internal market, and emphasize the use of the dinar instead of the dollar in daily commercial transactions, these efforts are still inadequate in curbing… This smuggling, therefore, sought to find alternative plans by dealing in a currency other than the dollar, in order to reduce the demand for it, open the way for trading in other currencies, and provide support to finance the country’s foreign dealings, using currencies such as (the euro, the Chinese yuan, and the Emirati dirham).

Despite all the measures taken by the Central Bank of Iraq, it still lacks a mechanism to control the movement of the dollar in the market, and all its reform steps failed to control the exchange rate, and only led to an exacerbation of the crisis and a decline in confidence between Iraq and the World Bank. This prompted the latter to take escalatory and strict steps towards international transaction requests coming from Iraq, as many of them were rejected, under the pretext of not conforming to international economic dealing standards, in addition to including a number of banks on the blacklist, which are suspected of carrying out unlicensed cash transactions.

The wrong monetary policy practiced by the Central Bank of Iraq would reflect the negative financial reality, the primitiveness of the financial system and its lack of the simplest modern means of daily financial dealing, in addition to the control of the crime mafias over the internal Iraqi market, and its control over the movement of the dollar within the market. The current government is planning to control the dollar, in order to achieve economic development, and to consolidate and stabilize the value of the dinar, by expanding the scope of its commercial uses, in addition to preventing the smuggling of the dollar abroad, its storage, or the manipulation of its prices..

The positive side is the attempt to remove the influence of the dollar on the internal Iraqi market, and prevent its circulation in an attempt to restore the prestige of the dinar, and for it to be in control of the internal market at least, which means that there is an important opportunity to restore the prestige of the dinar, as it was before, and to limit the dollar to foreign transactions with The world, and the positive thing in these decisions, is that supporting the dinar will end the traders’ control over the internal market, and the manipulation of the capabilities and livelihoods of the simple citizen.

Iraq is looking forward to joining the BRICS bloc, in a step to end dependence on the US dollar, especially since there is acceptance among the citizen, relying on the Iraqi dinar in his dealings. It is hoped that the BRICS summit will hold its meeting in Cape Town, South Africa, in August 2023, and 19 official requests to join were submitted. For the alliance, which may lead to damage to the value of the dollar and its future prospects, in the face of the strength of the BRICS currency, which I mentioned, even if it has not been issued yet, but it sounds the clinical death knell for the US dollar.

Burathanews.com