Parliamentary Integrity Committee threatens to hold the Governor of the Central Bank of Iraq accountable: Transparency is absent in the dollar auction

The Parliamentary Integrity Committee accused, on Monday, the Central Bank of Iraq of not being transparent regarding the dollar auction, and not providing data on the destinations where hard currency is spent, stressing that it will hold the bank’s governor, Ali Al-Alaq, accountable.

Committee member Hadi Al-Salami told Shafaq News Agency, “There is a lack of transparency in the dollar auction, and the daily bulletin is not disclosed to know where the dollar goes and is sold through the auction. The bulletin is still secret, and only the amount of dollars sold is announced, and we do not know where this amount goes.”

He pointed out that “there is a parliamentary movement to hold the Central Bank Governor, Ali Al-Alaq, accountable, and the first step is to direct an oral parliamentary question, and we are waiting for his presence inside the parliament dome for the purpose of holding him accountable.”

He added, “There is an effort by some representatives to question the Governor of the Central Bank, Ali Al-Alaq, due to the failure, especially in the issue of controlling the dollar exchange rate, which is still significantly higher in the parallel market than the official price.”

Al-Salami stressed that “some blocs and parties refuse to question the governor of the Central Bank, as there is political protection for him, despite the failure in tasks and work, and there are indicators and observations in the work of the Central Bank, especially the currency auction.”

A number of representatives revealed that there is a parliamentary effort to question the Central Bank of Iraq, stressing that the dollar auction costs Iraq trillions of dinars and threatens the economy.

Legal Committee member Raed Al-Maliki said in a statement received by Shafaq News Agency on July 9, “The continued failure of the Central Bank and the government to achieve stability of the dinar and reduce the gap between the two prices has led to the waste of huge sums of money and exacerbated the suffering of citizens.”

He pointed out that “these conditions resulted in the state incurring trillions of dinars and enriching the corrupt at the expense of the people, as the prices of most goods depend on the parallel price, which is much higher than the official price.”

For his part, MP Majid Shankali called on the Council of Ministers to take decisive and bold decisions related to the financial reality in Iraq.

In a statement received by Shafaq News Agency, Shankali stressed the “necessity that these decisions be preceded by the process of building trust between the citizen and the banking system, which is currently suffering from a significant lack of this trust.”

Shankali called for banning dealing and trading in dollars in buying and selling operations, in a move aimed at enhancing the use of the Iraqi dinar and reducing dependence on foreign currency. He also called for not allowing citizens to hoard amounts exceeding ten thousand dollars or its equivalent outside banks, in order to limit financial evasion and enhance official banking practices.

On July 23, the Central Bank of Iraq’s total sales of US dollars over the past six months amounted to more than $26 billion.

Shafaq News Agency correspondent stated that the Central Bank sold 26 billion, 539 million, 598 thousand, and 281 dollars during the past six months in which the auction was opened, at a monthly rate of 4 billion, 423 million, 266 thousand, and 380 dollars.

Our correspondent pointed out that foreign remittance sales during the past six months amounted to 24 billion, 105 million, 770 thousand, and 121 dollars, an increase of 89% compared to cash sales, which amounted to 2 billion, 565 million, 785 thousand, and 811 dollars.

Shafaq.com

15 trillion dinars raises controversy in the budget

The manipulation of the budget has sparked controversy between the government and the House of Representatives.

Economic expert Salah Nouri told {Euphrates News} that: “It is too early to analyze the amount of {15} trillion dinars, as it is now the subject of controversy over falsification of the budget tables between the House of Representatives and the government.”

Salah added, “Assuming that there is an increase of this amount in the operating budget, it increases the budget deficit, and increasing the deficit is a step towards a liquidity crisis.”
The Parliamentary Finance Committee revealed, yesterday, Wednesday, different budget tables before and after its approval, with a difference of 15 trillion dinars.

Committee member, Moeen Al-Kazemi told {Euphrates News} that the budget tables that arrived from the Council of Ministers and were approved inside the parliament are the same as the government tables; therefore, the letter that we received from the Council of Ministers that the tables that were referred after the vote have a difference and a large difference in some chapters that reach 15 trillion dinars.

He added that the spending budget amounts to 211 trillion dinars; but the tables that were signed by the Parliament Presidency and sent to the Council of Ministers read 226 trillion dinars.

Al-Kazemi explained that the Prime Minister’s Office sent the table signed by the Parliament Presidency, which included:

– An increase in the amount of the ration card by 5 trillion dinars.
– Increase in oil revenues by 5 trillion dinars.
– Reduce fees by 5 trillion dinars.
– In addition to financial increases for the Ministry of Electricity and some governorates.

Alforatnews.iq

MP rules out finalizing oil and gas law in 2024

MP Ali Saadoun ruled out, on Friday, the resolution of the oil and gas law in 2024.

Saadoun said in an interview with Al-Maalouma, “The oil and gas law is one of the important laws that has been postponed for several sessions due to deep political differences, despite its importance in correcting several paths that cast their shadows on the performance of a sector that finances the country’s treasury with about 90% of its revenues.”

He added, “It is unlikely that the oil and gas law will be resolved in 2024 because the differences still exist and reaching agreement on it requires more dialogue, despite the serious desire of many forces to resolve this law.”

He pointed out that “political consensus is necessary to proceed with the approval of many important laws in the country, but it must be in accordance with principles that positively reflect on the public interest.”

It is noteworthy that controversial laws have been suspended for years due to political differences over their content, especially oil and gas.

Almaalomah.me

MP sets goals for “Washington meeting” and confirms: 3 reasons for US withdrawal

On Friday, MP Ali Nehme, a member of the Parliamentary Security Committee, defined the objectives of the Washington meeting.

In an interview with Al-Maalouma, Nima said, “The expanded security meeting by an Iraqi delegation in Washington includes a basic axis, which is agreeing on a mechanism for withdrawing American forces through specific schedules that take into consideration the bases, systems, weapons, and other equipment, and drawing up the relationship with the coalition.”

He added, “The security stability, the capabilities of the Iraqi formations in all their titles, and the success in sustaining the battle against terrorism are compelling reasons that push us to demand the American withdrawal from the country, stressing that talk about the disruption of these negotiations in this direction is incorrect.”

He pointed out that “Iraq’s security capabilities have become strong and capable of facing challenges, and they do not need the presence of any force on the ground, stressing that we have strong faith in all security and military formations in confronting any aggression and defeating it.”

It is reported that the Minister of Defense is conducting negotiations with the American side in order to proceed with setting withdrawal schedules.

Almaalomah.me

The US Federal Reserve adopts a new strategy towards Iraq.. The dollar is threatened with rising to unprecedented levels

Economic researcher Ziad Al-Hashemi revealed new information about the US Federal Reserve’s policy towards Iraq, expecting the dollar to rise against the dinar, which will put great pressure on the Iraqi banking system.

Al-Hashemi told Alsumaria News that “some information from within the corridors of the Central Bank of Iraq indicates that the US Federal Reserve has adopted a strategy different from its previous strategies towards the Iraqi economy,” indicating that “this strategy will be more stringent and will depend on three axes:

The first axis: The continuation of the punishment of the previous banks, and there is no lifting of the sanctions on them, meaning that the ban on those banks trading in dollars will continue indefinitely.

The second axis: closing banks that continue to violate federal controls related to money laundering, dollar smuggling, and supporting sanctioned entities and countries.

The third axis: Preventing the Iraqi government from interfering in the dollar file, and for this file to be in the hands of the Central Bank of Iraq only.

He stressed that “the last axis explains that the Federal Bank has detected political influences from the Iraqi government,” noting that “the Iraqi Central Bank is today in a very embarrassing situation and is almost in trouble due to internal pressures on it to obtain a larger space for the dollar and its circulation.”

He stressed that “the Central Bank will only be able to delay and postpone federal procedures for the longest possible period of time, while achieving temporary protection for the Iraqi banking system and the Iraqi dinar.”

He stated that “the US Federal Reserve will not be able to wait forever, and it is expected that there will be federal measures that may occur at any moment, and there will be a sudden and large demand for the dollar, which will lead to a decrease in the value of the Iraqi dinar against the dollar, which will generate great pressure on the Iraqi banking system, the Iraqi economy and the official political system.”

Burathanews.com

Iraqi Dinar / US Dollar auction results for today 7-25-2024

Results of the foreign currency selling window for Thursday 07/25/2024

Advertisement No. (5168)

The amount:

Total amounts of transfers abroad (transfers, credits)
269,484,232

Total cash withdrawals
5,250,000

Total total sales
274,734,232

Note that: The selling price of documentary credits and international settlements for electronic cards is ( 1310 ) dinars per dollar.

The selling price for transfer amounts abroad is ( 1310 ) dinars per dollar.
The cash selling price is ( 1305 ) dinars per dollar.

cbi.iq/currency_auction

“Vigilant Guardian”… Harmonious Supervisory Cooperation to Guarantee Citizens’ Deposits in Iraqi Banks

At the heart of the Iraqi financial system, the harmonious cooperation between the Banking Control Department and the Iraqi Deposit Insurance Corporation (ICDI) is evident as two fundamental pillars in the edifice of financial stability.

Despite the apparent overlap in their duties, a deeper look into the details of their roles reveals a precise functional integration that ensures the safety and strength of the country’s banking sector.
The Banking Control Department’s mission is to supervise and closely monitor banking institutions operating in Iraq. It acts as a vigilant guardian that ensures strict adherence to applicable financial and accounting standards. The department’s responsibilities extend to assessing banks’ financial performance and ensuring their compliance with relevant banking laws and regulations, particularly with regard to liquidity and solvency requirements. In times of crisis, the department intervenes decisively to contain the repercussions and provide the necessary support to maintain the stability of the banking system and prevent its collapse.

On the other hand, the Iraqi Deposit Insurance Corporation (ICDI) plays a pivotal role in protecting and ensuring the safety of public deposits. It is a safety net that protects savings from loss in the event of a bank going bankrupt. By providing guarantees on bank deposits up to a certain limit, ICDI instills confidence in depositors and encourages them to save and invest in banks instead of hoarding, which contributes to increasing the liquidity available to the national economy, thus driving growth and development.

The integration between the Banking Supervision Department and the ICDI lies in the harmonious distribution of roles and tasks that ensures the achievement of the ultimate goal, which is to preserve the banking system and enhance its stability. While the Department plays the role of the “guardian” that monitors and guides, the ICDI plays the role of the “safe haven” that protects and provides reassurance. This precise functional integration reflects the close cooperation between the two institutions, and demonstrates that their roles are not conflicting, but rather complementary and harmonious to achieve a common goal, which is to protect deposits and ensure their successful and safe use by banks.

The Iraqi experience is the best evidence of the effectiveness of this integration. Following Iraq’s accession to the International Association of Deposit Insurers, the country witnessed a significant improvement in the stability of its financial system, and a significant increase in the volume of bank deposits, indicating the growing confidence of citizens in the banking system. These positive results confirm that close cooperation between the Banking Supervision Department and the ICDI plays a crucial role in achieving the desired financial stability.

In conclusion, there is no doubt that the integration between the Banking Control Department and the Iraqi Deposit Insurance Corporation constitutes a model to be emulated for constructive cooperation between state institutions. This integration contributes to achieving the common goals of protecting depositors’ funds, enhancing financial stability, and driving sustainable economic development in Iraq.

Alforatnews.iq

Saleh: The Central Bank’s dollar reserves are solid and the GDP rate is very optimistic

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed the cohesion of foreign reserves, especially the dollar, at the Central Bank of Iraq.

Saleh told Al Furat News Agency, “Covering urgent expenses in dollars, as they represent the desired demand for foreign currency, in addition to the level of sufficiency of incoming foreign currency flows and the level of maintaining the country’s reserves of the total foreign currency held by the Central Bank, is subject to two main factors.”

He explained that the first factor is “the nature of the oil asset cycle, which is still at its highest levels of global price increases due to the strength of global demand for energy, and that economic expectations indicate that potential price fluctuations towards a decline are still out of reach and are largely linked to the end of military operations in Ukraine, and the return of the flow of Russian gas and oil, especially to European markets, as the Russian Federation is the second largest oil-producing country in the world and leads the production and export of gas to major consumer markets in the European continent directly.”

The other factor, according to Saleh, “is related to the surplus in the current account of the Iraqi balance of payments, as estimates issued by international financial institutions indicate that this percentage of the surplus in the current account of the Iraqi balance of payments to the country’s gross domestic product is no less than {positive 6%}, which is a very optimistic positive percentage.”

He explained that “both factors indicate the cohesion of the country’s foreign reserves, which are generated by high oil export revenues to date, versus control over outward cash flows of foreign currency to meet local demand for imported goods, services and foreign benefits, as the current account of the balance of payments indicates that it is in a positive and stable position and is consistent with the general budget’s spending tendencies during the current fiscal year 2024.”

Alforatnews.iq

Parliamentary Finance Committee reveals a legal violation concerning the Central Bank Governor.. What about the dollar?

The Parliamentary Finance Committee confirmed, today, Thursday, July 25, 2024, that the procedures of the Central Bank of Iraq to change the exchange rate of the dollar in the local Iraqi markets did not reap any effect and did not achieve any real actual result, revealing a legal violation concerning the Governor of the Central Bank of Iraq, Ali Al-Alaq.
The member of the Finance Committee says Mohammed Nouri In an interview with Sumaria News, he said, Central Bank of Iraq He is still continuing his wrong measures that have not reaped any effect and have not achieved any real actual result in changing the dollar exchange rate in the local Iraqi markets, which has negatively affected the Iraqi reality and inflation rates have risen significantly in the past few days.

“There is work on this issue by the Parliamentary Finance Committee, whether it is interrogations or changing the governor of the Central Bank due to the legal age, as he has exceeded the legal age, and this is a violation of the Civil Service Law,” he added, noting that “many topics will be addressed by the Council in the coming days, especially the dollar file due to the major delays, in addition to the control of foreign banks owned by owners of foreign capital, and this causes a disruption to national security and Iraqi economic security.”

For some time, the price of the dollar has decreased in the parallel market, as it has stabilized at 145 thousand dinars for every 100 dollars throughout the past period, but it has risen again to exceed 150 thousand dinars a few days ago.

Since the beginning of last year, Washington has intervened to limit the smuggling of dollars from Iraq, which led to the dollar price rising in the local market to a record level of 170,000 dinars per 100 dollars, due to the decline in the Central Bank’s sales of dollars, due to its being subject to the international financial system “SWIFT”.

It is noteworthy that the Central Bank decided to finance trade in the euro, the Chinese yuan, the Emirati dirham and the Indian rupee, in steps to reduce the demand for the dollar.

Alsumaria.tv

Central Bank of Iraq warns of million dollar bills: worthless souvenirs

The Central Bank of Iraq renewed its warning on Thursday against circulating commemorative notes of one million US dollars that are used to defraud citizens.

The bank confirmed, in a statement received by Shafak News Agency, that the security and regulatory authorities are following up on the people who promote these commemorative papers and taking appropriate legal measures against them.

The bank explained that the highest denomination of the US dollar in circulation is the $100 denomination.

He pointed out that the aforementioned commemorative note is not circulated in global currency markets, as it is issued by the American Millionaires Association and is not considered currency because it is not issued by the US Federal Reserve, but is used for gifting purposes only.

In February 2020, the Central Bank of Iraq warned against circulating the “one million” dollar note because it is a non-cash note.

Shafaq.com