Banks are working to keep the exchange rate high.. The secrets of the dollar crisis against the dinar

Economic expert Omar Al-Halbousi confirmed that the crisis of the dinar exchange rate against the US dollar is due to many factors.

Al-Halbousi said in a press statement: “It is well known that the rise in the dollar exchange rate and the decline in the value of the Iraqi dinar have been ongoing for more than two years, and here we confirm that the value of the dollar is stable, but the value of the Iraqi dinar fluctuates between rise and fall, and most of the time it is a fall.”

He continued, “The rise and fall of the Iraqi dinar exchange rate against the dollar from time to time is due to several reasons, including the continuation of trade with the sanctioned countries, which requires financing from outside the platform by relying on the parallel market, which is the real controller of the exchange rate. Until now, the Central Bank has no authority over it,” noting that “there are countries that live on the dollar in Iraq in the absence of the role of the Central Bank to regulate the exchange rate and stop the currency bleeding, with the penetration of these countries through private banks that dominate the currency selling window.”

He explained that “private banks also push for the exchange rate to remain high, because it benefits them. They have exploited the law of delivering dollar remittances to individuals and companies coming from abroad and delivering them to their owners in Iraqi dinars and at the official price, and then they sell the dollar at the parallel market price, which increases their profits. Therefore, they are a stumbling block to the stability of the exchange rate and stopping the bleeding of the value of the Iraqi dinar.”

He explained that “remittances and the currency sales window are monopolized by a few banks that control the exchange rate and manipulate it as they wish, which explains their achievement of imaginary profits from dollar remittances, which has begun to drain Iraqi oil revenues that finance the window, knowing that the volume of daily dollar sales is very suspicious and contradicts the volume of goods entering, which means the continued smuggling of dollars abroad, carried out by the banks controlling the window and remittances and with international collusion,” noting that “the American sanctions and the continued threat of them are another reason for the continued decline in the value of the Iraqi dinar against the dollar with the inability of the Central Bank to solve the problem of sanctions with the American side, as well as the inability to control the work of banks and control their fraudulent work that has caused Iraq problems with the Americans, in light of the continued smuggling of dollars in various ways practiced by banks owned by foreign countries.”

The economic expert pointed out that “the government is still counting on the Central Bank and its management to control the exchange rate, which the Central Bank has not succeeded in, but rather has failed in all its steps with the arrogance of private banks and their control over the Central Bank with external support, in addition to the influence of these banks within the Central Bank, which means that until now it has not found a solution to stop the decline in the value of the Iraqi dinar against the dollar, which will lead us into major problems in the coming days, especially if new American sanctions are imposed on Iraq, in addition to the rise in the geopolitical conflict in the region that casts its shadow on Iraq in a multi-faceted manner.”

Burathanews.com

Due to financial violations, a representative demands that Al-Sudani end the assignment of the Central Bank Governor

Information / Baghdad… Today, Monday, the member of the Parliamentary Integrity Committee, Hadi Al-Salami, called on the Prime Minister to end the assignment of the Governor of the Central Bank, Ali Al-Alaq, stressing that oral questions will be directed to the Governor of the Central Bank.

He told Al-Maalouma Agency, “There are parliamentary demands to end the assignment of the governor of the Central Bank due to his failure to control the official and parallel dollar exchange rate.”

He added, “There are many observations on the performance of the Governor of the Central Bank, in addition to his reaching the legal age, noting that he directed questions to the Governor of the Central Bank and is waiting for a date to be set by the Presidency of the House of Representatives to host him in the House of Representatives.”

He stressed that “the reason for requesting hosting is the existence of a major defect in the bank’s work and the existence of financial violations estimated at about $120 million per month.”

Almaalomah.me

Al-Maliki: An “emergency” order thwarted the resolution of the Parliament presidency file

Shafaq News / The head of the State of Law Coalition, Nouri al-Maliki, said on Monday that an “emergency” had thwarted the resolution of the parliament presidency file, and denied talk about the Shiite component seeking to control the position.

Al-Maliki added in statements followed by Shafaq News Agency , “The issue of the presidency of the House of Representatives is a crisis that must be highlighted because it interacted and developed as a result of differences in points of view.”

He explained that “the legislative, executive and judicial institutions are the basis for the process of building a state with a democratic system,” noting that “the stability of the legislative authority and its work in accordance with partnership constitutes support and backing for the executive and judicial authorities.”

Al-Maliki stressed “the importance of the stability of the legislative authority with a full presidency and representatives who manage this vital institution,” stressing that “the Coordination Framework is keen to complete the political process in electing a Speaker of the House of Representatives, and has taken the initiative more than once to find a consensus among the Sunni forces.”

He pointed out that “the dialogues between the Sunni parties and the Coordination Framework were positive, but an urgent matter prevented the resolution of the Parliament presidency issue.”

The political forces have not been able to elect a new parliament speaker since the termination of Mohammed al-Halbousi’s membership in November 2023 due to disagreements, while the Coordination Framework set July 20 as the date to resolve Sunni disagreements over this file, without any commitment to the date.

It is worth noting that the State of Law Coalition, led by Nouri al-Maliki, expected on Monday of last week that Mohsen al-Mandalawi would continue as Speaker of the Iraqi Council of Representatives until the end of the current (fifth) parliamentary session.

The leader of the coalition, Saad Al-Mutalibi, told Shafaq News Agency, “The differences between the Sunni political forces are still ongoing and are without solutions, especially since the file of electing the Speaker of Parliament cannot be resolved without an agreement between Mohammed Al-Halbousi and Khamis Al-Khanjar, and there is no agreement between the two parties until now.”

Shafaq.com

Electronic payments in Iraq exceeded 2 trillion dinars during the past month

Economic researcher, Munar Al-Obaidi, confirmed that electronic payments in Iraq increased during the month of July, exceeding the barrier of 2 trillion Iraqi dinars.

Al-Obaidi stated in a statement that “electronic payments increased during the month of July 2024 to exceed the barrier of 2 trillion Iraqi dinars, based on the increase in government electronic payments, which amounted to 912 billion Iraqi dinars during the past month of July, an increase of 17% compared to June 2024, in addition to the increase in electronic payments for points of sale, ATM withdrawals and cash withdrawals by 26% to reach 1 trillion dinars.”

Al-Obaidi added, “Electronic payments for bill payment services such as electricity, passports and other services increased by 40% to reach 31 billion Iraqi dinars, while electronic payments for fuel stations increased by 4% to reach 44 billion Iraqi dinars.”

He pointed out that “the total electronic payments during the year 2024 amounted to 10.4 trillion Iraqi dinars and is expected to reach more than 20 trillion Iraqi dinars.”

Al-Obaidi explained that “these statistics include electronic payments that pass through the national switchboard and do not include electronic payments that occur at points of sale outside Iraq.”

He explained that “the significant growth that occurred over the course of a year in government electronic payments is clear, as is the increase in electronic payments for bill payment services, but electronic payment operations through fuel stations are still below the required level compared to the volume of fuel derivatives that are sold.”

He pointed out that “government electronic payments constituted 45% of total payments, while electronic payments for points of sale, ATM withdrawals and cash withdrawals constituted 51%, while electronic payments for service bills amounted to 1.57%, and electronic payments for fuel stations amounted to 2.19%.”

Rawabetcenter.com

Economist: Ministry of Finance statement is accurate and liquidity is available

Information / Special… Economic expert Nabil Jabbar confirmed today, Sunday, that the statements and declarations of ministries are more accurate and objective than the statements of representatives, as they are characterized by responsibility.

Jabbar said in a statement to Al-Maalouma Agency, “The statements of some representatives about securing salaries and the lack of cash liquidity are inaccurate and are issued out of hatred or personal positions,” noting that “the cash liquidity is available and the salaries of employees are secured according to the economic reading and the ministry’s statement.”

He added, “The MPs’ statements in this regard are either critical of the ministry in order to spite it or based on the views of some economic experts who are not familiar with the current situation,” noting that “last year there was a deficit in financial liquidity due to the decline in currency sales and the cessation of financial transfers due to smuggling operations, but this year, due to the high transfers of the Central Bank, liquidity is available and is able to secure salaries.”

The Ministry of Finance responded today to statements made by some members of the Finance Committee, who misled public opinion about the lack of liquidity, which would affect the payment of employees’ salaries.

Almaalomah.me

MP: Oil and Gas Law Still Captive to Disagreements

Information / Special… Member of the Parliamentary Oil, Gas and Natural Resources Committee, Ali Al-Mashkoor, revealed today, Sunday, the latest developments regarding the approval of the Oil and Gas Bill.

Al-Mashkoor said in a statement to Al-Maalouma Agency, “The oil and gas law is still a prisoner of political differences, and is currently outside the corridors of the House of Representatives after being returned to the government.”

He added, “The Oil Committee studied the law in detail to identify the points of contention and agree on them finally to be voted on in the House of Representatives during the next stage.”

Al-Mashkoor pointed out that “political differences over the oil and gas law still exist, which is why it has not been voted on and passed yet.”

The Kurdish parties continue to obstruct the government in approving the oil and gas law, which must be voted on in parliament in order to end the violations and thefts that the Kurdistan Regional Government is carrying out in the oil smuggling file.

Almaalomah.me

Government committee issues a series of decisions to expand investment in economic sectors

Shafaq News / The Higher Committee for Investment and Reconstruction held its regular meeting today, Sunday, headed by Prime Minister Mohammed Shia al-Sudani, during which they discussed aspects of developing investment mechanisms in various economic and development sectors, discussing the files on the agenda, and taking the necessary decisions regarding them.

According to a statement issued by Al-Sudani’s media office, “the meeting considered the investment file for Wasit Governorate. Within the government’s vision for establishing new cities, approval was given to establish the “New Wasit Residential City,” which includes the distribution of serviced residential lands, in which the private sector real estate developer undertakes the establishment of infrastructure and service institutions and the management of services, and they are sold at low costs to citizens from the categories determined according to the government’s vision for addressing the housing crisis.”

The committee decided to reject the request to convert the plot site (3/6 Umm Al-Khail District) with an area of ​​77 dunums, in the Diwaniyah Governorate, into a residential complex. The Diwaniyah Investment Authority is responsible for announcing the investment opportunity to establish an entertainment project with modern and high-level plans and activities on the aforementioned plot, to be a civilized entertainment area that meets the needs of citizens in the governorate, according to the current investment law, within the framework of expanding domestic tourism activity.

The Committee also issued a number of decisions that would expand investment in various economic sectors, increase private sector involvement, create job opportunities, and support development in all areas.

Shafaq.com

Three reasons behind the delay in approving the 2024 budget

Information / Special… Former MP Faisal Al-Issawi explained, today, Saturday, three reasons behind the delay in approving the 2024 budget, stressing that the government has exceeded all constitutional and legal deadlines.

Hussein said in a statement to Al-Maalouma Agency, “The delay in approving the federal budget, which was supposed to be prepared for three years, is due to many reasons, the most important of which is the lack of financial liquidity in the Iraqi economic market,” noting that “the manipulation of the budget schedules by members of the House of Representatives had a clear impact on the delay in approving it.”

He added, “The government’s vision of not spending on some projects that are not in line with its ministerial program was also an obstacle to approving the current budget,” noting that “the delay in approving the federal budget is a major flaw for the current government, as it has exceeded eight months in the fiscal year designated for it.”

The General Secretariat of the Council of Ministers sent a letter to the House of Representatives to inquire about the manipulation of the budget tables. The letter stated that “after examining the printed tables attached to the Parliament’s letter signed by the Speaker of the House of Representatives (acting), it became clear that there were fundamental differences in them compared to the copy sent by the Council of Ministers and contrary to the text of the parliamentary decision.”

Almaalomah.me

The Iraqi judiciary settles the controversy over whether the governor of the Central Bank should remain in his position or not

Shafaq News / The Supreme Judicial Council in Iraq supported the State Council’s decision to refer the Central Bank Governor, Ali Al-Alaq, to ​​retirement after reaching the legal age.

The Supreme Judicial Council said in an official document, a copy of which was received by Shafaq News Agency, that the same subject was studied by the Studies Committee in the Presidency of the Judicial Supervision Authority, and the same opinion of the State Council was reached in the two aforementioned decisions.

The House of Representatives had sent a letter to the Supreme Judicial Council inquiring about the judiciary’s opinion on the permissibility of the bank governor continuing in service after reaching the legal retirement age.

The State Council has decided the official position on whether or not the Central Bank Governor, Ali Al-Alaq, will continue in his position, confirming that he has exceeded the legal retirement age.

It was stated in correspondence between the State Council and Parliament, in response to the House of Representatives’ request to clarify the opinion of the State Council regarding the permissibility of the Governor of the Central Bank continuing in service after reaching the legal retirement age.

The State Council had explained, according to the documents, that Clause (First) of Article (103) of the Constitution stipulated that the Central Bank shall be a financially and administratively independent body whose work shall be regulated by law and which shall be accountable to the House of Representatives. Article (2) of the Central Bank Law issued pursuant to Order No. (56) of 2004 of the (dissolved) Provisional Coalition Authority stipulated that the Central Bank shall be a legal entity with full capacity and independence and subject to accountability.

He pointed out that the legislator has explicitly stipulated that retirement upon reaching the legal age is an inevitable retirement by law unless exempted by a special provision, and since there is no special provision exempting the Governor of the Central Bank from the provisions of inevitable retirement upon reaching the legal age.

The State Council confirmed that the legal principle states: “Heads of independent bodies are subject to the legal retirement age.”

Shafaq.com

Government advisor expects oil to recover after record drop, explains reasons

The financial and economic advisor to the Prime Minister, Mazhar Muhammad Salih, expected a recovery in oil prices after a rapid decline in global markets in recent days.

Saleh told Al Furat News Agency that “the drop in oil prices will cause a huge loss in the investments of American oil companies operating in the field of extracting shale oil if global oil prices fall below $70 per barrel, which will cause their operations to falter.”

He noted that “the American monetary policy is expected to inevitably move towards an expansionary policy to confront the current recession, led by the quantitative easing policy through the possibility of the Federal Reserve reducing interest and stimulating liquidity to confront the challenges of the deterioration of the American economy and providing the necessary protection for financial investors in particular against the collapse of financial markets, including futures markets operating with crude oil contracts.”
Saleh explained that “all of these factors will shorten the paths of the decline in the oil asset cycle so that oil markets can recover, if that cycle occurs and leads to a deterioration in oil prices.”

Oil prices rose today to $79 per barrel after Brent crude fell on Monday to its lowest level in seven months, following the decline in global stock markets.
Futures are set to snap a four-week losing streak, with Libya’s biggest oilfield shut down, U.S. stockpiles falling for a sixth week and Ukraine’s incursions into Russia adding to the rally.

Meanwhile, demand for jet fuel is improving in China, a rare bright spot after months of bearish signals, including data this week showing the world’s biggest crude importer took in the fewest barrels in almost two years in July.

Alforatnews.iq