Saudi Arabia Says Open to Settling Trade in Other Currencies

Saudi Arabia is open to discussions about trade in currencies other than the US dollar, according to the kingdom’s finance minister.

“There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal,” Mohammed Al-Jadaan told Bloomberg TV on Tuesday in an interview in Davos.

“I don’t think we are waving away or ruling out any discussion that will help improve the trade around the world,” Al-Jadaan said.

The world’s largest oil exporter, which has maintained a currency peg to the dollar for decades, is seeking to strengthen its relations with crucial trade partners including China. The kingdom is a pillar a petrodollar system established in the 1970s that relies on pricing crude exports in the US currency.

During President Xi Jinping’s visit to Riyadh last year, the two countries agreed to boost coordination on energy policy and exploration. During that trip Xi said that China would make efforts to buy more oil from the Middle East and also wanted to settle that trade in the yuan.

“We enjoy a very strategic relationship with China and we enjoy that same strategic relationship with other nations including the US and we want to develop that with Europe and other countries who are willing and able to work with us,” Al-Jadaan said.

Saudi Arabia is also working with multilateral institutions to provide support to Pakistan, Turkey and Egypt, as part of the kingdom’s largesse to nations it deems “vulnerable,” Al-Jadaan said.

“We are investing heavily in these countries and will continue to look for opportunities to invest,” Al Jadaan said. “It’s very important to bring stability.”

The minister said his country is looking to invest $10 billion in Pakistan. It already extended the term of a $3 billion deposit to boost its foreign-currency reserves late last year, and Saudi Arabia is now exploring the possibility of increasing the amount.

“We are providing even oil and derivatives to support their energy needs,” Al Jadaan said. “So there is a lot of efforts, but we wanted this to be conducted.”

The kingdom is also discussing with the World Bank and other institutions how can it be “more creative to provide that support” to Pakistan, the minister said.

Saudi Arabia is also “providing a lot of support to Egypt and we’ll continue to — not directly through just grants and deposits, but also through investments,” Al-Jadaan said.

— With assistance by Mirette Magdy

Bloomberg.com

BGG ~ This is EXACTLY why we steer clear of opinion and speculation. One guy’s opinion that it won’t happen or will happen or when it will happen is just that… OPINION – having nothing to do with actual facts. This is why we prefer to stick with hard news and information.

Iraq is talking about their currency and it’s value almost every single day. The set of events I have discussed recently are now being talked about in MAINSTREAM outlets.

Stick to news.

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A researcher puts forward a “terrifying” scenario regarding 90% of the Iraqi currency

Baghdad: The economic researcher Manar Al-Obeidi put forward a disturbing hypothesis about 90% of the Iraqi currency printed by the Central Bank, which is outside the banking system, as he indicates that this money may not be hoarded by the Iraqis already, but may have been destroyed or fled abroad.

Al-Obaidi began his article by asking: “Is the Iraqi cash really hoarded?”, Noting that “according to the latest Central Bank data, the volume of cash outside the banking system is around 76 trillion Iraqi dinars, representing more than 90% of the volume of cash issued.”

He explained that “it is always explained that it does not appear in the banking system as hoarded in homes or among people due to the low level of financial inclusion,” adding, “But there are indications that may indicate that this money may not only part of it be hoarded, but part of it may be deliberately or deliberately destroyed.” fled abroad.”

He added, “The first factor is that the growth rate of cash currency issuance during the past years is not matched by the same growth rate of cash in the banking system, even if the percentage of cash in the banking sector is small, but its growth rate should be almost similar to the growth rate of the total cash currency issued as the currency grew.” Cash issued from 50 trillion to 80 trillion during the past two years, but it did not grow in the banking sector at the same level, as it rose from 5 trillion to 6.5 trillion only during the same period.”

And he continued: “The second matter, depending on the population of Iraq, the level of poverty and unemployment rates, ages, and the rates of residents in Iraq, the rate of hoarding money for every Iraqi person living in Iraq and not below the poverty level is about 3.5 million Iraqi dinars, meaning that the rate of hoarding money for every Iraqi family is about 20 One million Iraqi dinars, and this also contradicts reality.

And he pointed out that “the third thing is that the percentage of cash in banks does not rise much with the increase in interest rates offered by banks and the incentives offered by banks to attract this money, although many of these offers are of great interest and certainly will not attract all the money outside the banks, but it is undoubtedly It should have affected, even if by a small percentage, the percentage of the issued cash.”

And he considered that “all this leads to saying that the cash is not hoarded by the Iraqis, but rather it is either damaged or fled, or that it is present in a parallel banking system that is far from control and is controlled by parties that have nothing to do with the decision-making authorities in Iraq.”

Yesiraq.com

A new announcement by the Central Bank on the exchange rate of the dollar

{Economic: Al Furat News} The Central Bank of Iraq issued a new clarification regarding the high exchange rate of the dollar.

The bank’s advisor, Ihsan Al-Yasiri, said in a press statement today, Wednesday, that: “The rise in the exchange rate of the dollar against the Iraqi dinar is a result of the development of an electronic platform to ensure that the dollar reaches directly to the people who benefit from it without going through additional episodes.”

Al-Yasiri pointed out that, “The Central Bank asked merchants to go to the official centers, which are the official banks, in addition to selling the dollar directly to travelers, and these measures affected the exchange rate of the dollar,” stressing that “this situation is temporary and balance will return to the market.”

About a month ago, the exchange rate of the dollar against the Iraqi dinar has been witnessing a continuous fluctuation between a continuous decrease and increase in the Iraqi markets.

The Central Bank of Iraq deals with 14 banks in the currency auction, and these are the banks that adhere to the bank’s terms, and the Monetary Services Court dismissed the claims of four banks against the bank’s governor, after the bank stopped selling the dollar to the four banks on November 6, 2022.

The Central Bank of Iraq is currently monitoring 11 banks, and it is likely that a number of these banks will be included in the four banks that it does not deal with.

Alforatnews.iq

Iraqi Govt Props Up Value of Iraqi Dinar

By John Lee.

The Iraqi Cabinet has agreed a package of measures aimed at propping up the value of the Iraqi dinar, following continued downward pressure on the currency relative to the dollar:

1. All government agencies are required to sell all goods and services inside Iraq based on the Central Bank USD exchange rate of 1470 IQD per 1 USD.

2. What was stated in Paragraph (1) above includes sales of goods and services from the private sector, especially the offices of national and foreign airlines, commercial agencies, telecommunications and Internet companies, and sales of residential investment complexes. It is emphasized that the prices of goods and services are in Iraqi dinars based on the Central Bank exchange rate.

3. The Central Bank sells dollars to the parties mentioned in Paragraph (2) at a rate set by the Central Bank of 1460 IQD per 1 USD for remittances and 1455 IQD per 1 USD to cover letters of credit after they pledge to sell using Iraqi Dinar. It will be announced on the official websites of the concerned authorities of sales outlets.

4. The Central Bank of Iraq develops a streamlined mechanism within one week from the date of the decision, through which the private sector mentioned in paragraphs (2 and 3) above can get US dollars at the official exchange rate. The bank also secures private sector transfers outside Iraq at the official exchange rate to cover their obligations.

The decison was made at this week’s cabinet meeting, chaired by Prime Minister Muhammad Shia Al-Sudani.

Iraq-businessnews.com

The Sudanese government obliges all of its institutions to deal in the Iraqi dinar

Shafaq News / The Ministerial Council of the Iraqi Economy took, on Monday, a number of economic decisions, including obligating all ministries and state institutions to pay wages for goods and services in dinars.

This came, during the presidency of the Deputy Prime Minister, Minister of Foreign Affairs, Fuad Hussein, the meeting of the Ministerial Council for the Economy, in the presence of the Deputy Prime Minister, Minister of Planning, the Ministers of Finance, Trade, Industry, Agriculture, Labor and Social Affairs, the Secretary General of the Council of Ministers, the Governor of the Central Bank of Iraq, and the Chairman of the Commission The National Investment Agency is an agency, and the Prime Minister’s advisors for economic and legal affairs, according to a statement received by Shafaq News agency.

At the beginning of the meeting, the council discussed, according to the statement, the draft law of the state’s general budget and the revenues and expenditures contained therein. It also discussed the economic issues on its agenda, and took many important economic decisions.

Among these decisions is obligating all state ministries and institutions to pay wages for goods and services in Iraqi dinars, and whoever chooses from the private sector to have sales as mentioned above, provided that the Central Bank of Iraq compensates those amounts in dollars and at the official rate, in order to fulfill their obligations and purchases outside Iraq.

The Ministerial Council of Economy agreed that the Central Bank of Iraq would contract with the “Zaha Hadid” Foundation to design the Central Bank building in Nineveh Governorate.

Shafaq.com

Al-Fateh: Selling oil in currencies other than the US dollar is very possible

Information / Baghdad… The leader of the Al-Fatah Alliance, Uday Abdul-Hadi, confirmed on Friday that selling oil in currencies other than the US dollar is very possible.

Abdel-Hadi said in an interview with Al-Maalouma, that “Washington’s exploitation of the dollar in an attempt to impose its agenda on countries, rob their economic independence, and bring about frequent geopolitical change requires adopting other options to move away from using the dollar in financial activities, and this is no longer an option, but rather a necessity imposed by international facts.”

He added, “Iraq selling crude oil in currencies other than the US dollar is very likely if Washington’s approach continues to try to hit the national economy and exploit its weight through the dollar by creating crises at home, pointing out that there are many countries beginning to realize the danger of the dollar remaining as the main currency in the country.” the world in commercial and financial exchange.

He pointed to “the need to make changes in Iraq’s financial reserves by crystallizing a list of other currencies to create high flexibility in dealing with cases of recession and international financial inflation.”

Iraqi political circles accuse Washington of being behind the recent rise in dollar exchange rates, which led to severe pressure on the markets and raised the prices of basic materials.

Almaalomah.me

BGG ~ I have said this and said it and said it… This is not an unrealistic set of events.

EVERYONE wants off the US Dollar. The question is, what will they get on? What if it were Dinar?!? WOW.

With documents.. Collecting parliamentary signatures to discuss the central bank’s policies towards the dollar

{Economic: Al Furat News} Today a number of parliamentarians collected signatures to discuss the policies and procedures of the Central Bank regarding the rise in dollar exchange rates and the decline in the exchange of the Iraqi currency, in the presence of the Governor of the Central Bank in the Iraqi Parliament.

Alforatnews.iq

Regarding the dollar.. A parliamentarian accuses Al-Halbousi of violating the law and the constitution

Information / special… The representative of the Al-Fateh coalition, Ali Al-Jamali, accused the Speaker of Parliament, Muhammad Al-Halbousi, of violating the law and violating the constitution on many occasions, while confirming the arrival of parliamentary signatures demanding the holding of a special session to discuss the repercussions of the dollar’s ​​rise to 200 parliamentary signatures without the latter moving to hold it.

Al-Jamali said, in an interview with Al-Maalouma, that “Al-Halbousi deliberately ignored 200 parliamentary signatures to hold a session to discuss the crisis of the dollar’s high exchange rate,” noting that “Parliament intends to present many proposals regarding the crisis of the Iraqi dinar’s decline.”

And he continued, “Al-Halbousi violated the law and the constitution on many occasions, and today he also returns and refuses all the students to hold a session to discuss the repercussions of the dollar’s rise,” wondering that “we do not know if there is an agreement between the governor of the Central Bank, the Speaker of the House of Representatives, and some political blocs to push to raise the price of the dollar.” “.

And regarding Al-Halbousi’s failure to respond to the parliamentary signatures, he stated: “There is no explanation for what the Speaker of the House of Representatives is doing, given the danger of the continued rise of the dollar and the parliamentarian’s role in finding solutions to it.”

A member of the Integrity Committee, Hadi al-Salami, had previously spoken to Al-Maalouma agency that “the reason for not including the discussion of the dollar exchange rate crisis in the agenda of the parliament session that was held last Saturday or the session to be held today, Wednesday, is the refusal of the Speaker of Parliament to do so, despite Despite the collection of 83 signatures in accordance with Article 58 of the constitution, paragraph first, as well as in accordance with the articles of the House of Representatives internal system.

Almaalomah.me

The Central Bank calls on merchants to deal with banks and avoid brokers and speculators

Information / Baghdad… The Central Bank Governor Mustafa Makhaif called on merchants to deal directly with banks.

A statement by the media office of the bank, received by Al-Maaloumah Agency, stated that “Makhaif and the advanced staff at the Central Bank received a number of merchants to discuss the most important concerns and proposals of merchants and the most important challenges they face in dealing with authorized banks,” wishing them “to avoid resorting to brokers and speculators, and to deal directly with Banks that provide various banking services.

The Governor of the Central Bank gave an “explanation of the procedures and decisions of the Central Bank of Iraq during the past days to enhance stability in the foreign currency market and the mechanisms of the electronic platform as a tool for external transfer.”

The statement pointed out that “the Central Bank of Iraq confirmed, at the end of last month, that merchants review banks directly and not resort to brokers and speculators to avoid charging their imports unduly commissions and expenses, noting what was issued by the Council of Ministers in its decision No. (351) of 2022 regarding non-payment of fees.” Customs duties and tax secretariats amounts in advance, as this will reduce excess loops, ease procedures, and remove costs resulting from prior demarcation problems.

He stressed that “the Central Bank continues to work to simplify external transfer procedures through official channels and at the official exchange rate for merchants, in light of the launch of the electronic platform for external transfer at the beginning of this year.” He called on other competent government agencies to “facilitate the merchants’ procedures to ensure full disclosure of all transactions and ensure their safety.”

Almaalomah.me