Winners and losers from the fluctuation of the dollar exchange rate against the dinar in Iraq

Despite the long period of time since the start of the electronic platform to monitor the movement of the dollar, the exchange rates of the dinar against the US currency still experience a large disparity between the official price announced by the Central Bank, which is 1320 Iraqi dinars per dollar, and the black market price, or what is known as the parallel price, which ranges between 1490 and 1510 Iraqi dinars per dollar.
And at the beginning of 2023, he announced Iraq Adopting an electronic platform to monitor the movement of dollar sales and money laundering operations, following warnings issued by the Federal Reserve (the US Central Bank), in addition to the US Treasury Department punishing several local banks for their involvement in suspicious activities.

The electronic platform for transfers works Foreign Managed by the Central Bank of Iraq, in its first phase of re-to organize Money transfers, ensuring proactive control over them rather than ex post control through the Federal Reserve auditing daily transfers.

And he approved council Iraqi ministers on February 7, 2023 on the decision council administration Central Bank of Iraq By adjusting the exchange rate of the dollar against the dinar, equivalent to 1300 dinars per dollar after it was 1480 dinars per dollar.

On the fourth of this month, it was announced Central Bank of Iraq The “electronic platform” through which US dollar transfers abroad are carried out is about to be completed, indicating – in a press statement – that during the year 2024 and until now, 95% of the transfer process from the electronic platform to “corresponding banks” has been achieved, which means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year and according to the plan.

This decision by the Central Bank raised many questions about the extent to which it has been able to Iraq Preventing the smuggling of hard currency, stopping money laundering operations, and the extent of the success of economic measures in controlling currency smuggling and controlling the price in the market.

*Winners and losers from exchange rate fluctuations,
member confirmed council The management of the Iraqi Businessmen Union, Abdul Hassan Al-Ziyadi, said that the first beneficiaries of the fluctuation in the exchange rate of the dollar against the dinar in Iraq are currency smuggling traders and price speculators, adding that the first to be harmed is Ira qAnd the citizen.

Al-Ziyadi said, “The dollar crisis in Iraq Affected all joints life Commercial and non-commercial,” he added, “traders were harmed by the rise in the dollar exchange rate, and citizens were also harmed because the instability of the exchange rate destroys the family’s income and monthly resource.”

He continued, “If he wanted Iraq To get rid of this confusing situation, he must first get rid of the import of many goods and rely on manufacturing them locally to reduce the need for hard currency in addition to developing agriculture,” considering that “the Iraqi government and the Central Bank are primarily responsible for the failure of the currency selling platform.”

*Draining money
The researcher in economic affairs and a member of the General Authority of the Iraqi Accountants Syndicate pointed out HusseinNima Al-Karaawi until the entry Iraq In the American “SWIFT” system in 2023, it was the reason for many traders to refrain from the currency selling platform and turn to the black market for fear of having their money seized, in addition to the lack of mechanisms to help traders avoid having their money seized.

Al-Karawi said that “the price difference between the dollar and the dinar in the official or parallel price exceeds 17 points per dollar, so how is the case with very large amounts?” He considered that “this matter represents a drain on funds.”

He added that “sales have declined significantly in Iraq Because of the change in the exchange rate and the lack of real control over the fluctuations in exchange rates in the market,” explaining that the reason is due to the presence of border crossings outside the control of the government It is exploited by some dollar smuggling gangs.

Al-Karawi believed that “the citizen is the one who pays the tax of the exchange rate fluctuations. Although the financing for imported goods is through the platform at the official price, in reality many goods and commodities are sold in the local market at the parallel dollar price.”
He said that the platform was Sell Daily, it reaches $280 million, but the amount has now decreased to less than $240 million per day, adding that the difference between the two amounts goes to smuggling and the parallel market.

Al-Karawi confirmed that “the government and the Central Bank have taken many measures internally and externally to control the smuggling process and control the exchange rate.”

He explained that some banks were harmed by the ban imposed on them by the US Federal Reserve and by smuggling operations, which contributed to raising the exchange rate on the black market. He also indicated that reducing the exchange rate of the dinar against the dollar also harmed the government’s revenues, because its revenues depend on selling oil and receiving dollars in exchange for it and then selling it on the official platform for banks and traders.

Controlling border crossings
The spokesman for the Baghdad Chamber of Commerce, Rashid Al-Saadi, believed that controlling border crossings and automating the departments concerned with the import and export file are the only way to control currency smuggling.

Al-Saadi said, “There are parties that tried to thwart the currency selling platform to benefit from illegal transfers.”

He added, “Iraq has lost large sums of money as a result of smuggling of goods and hard currency and tampering with the valuation of goods at border crossings.”

Citizen Ahmed Jabbar, who owns grocery stores, called for the government Iraq to support the economy and enhance the purchasing power of citizens by strengthening the local currency and supporting local industry and agriculture.

Jabbar said, “Selling in dollars has affected the Iraqi market. We encourage the government To limit dealings in the local currency, as it contributes to the stability of the market and the economic situation of citizens.

Alsumaria.tv

US Embassy in Baghdad: Our diplomatic facilities were bombed

The US embassy in the Iraqi capital announced on Wednesday that its diplomatic facilities in Baghdad were attacked yesterday evening, confirming that there were no casualties.

“The US diplomatic service compound in Baghdad was attacked late Tuesday, but no injuries were reported,” the US embassy spokesman said in a statement.

He added, “The embassy is assessing the damage and its cause and will provide more information when its assessment is complete.”

Yesterday, Tuesday, a security source reported that a bombing targeted the logistics center of the US embassy inside Baghdad International Airport.

The source said, “The shelling, the nature of which is not yet known, whether it was missiles or mortar shells, took place near the logistical support of the American embassy, ​​and another near the headquarters of the Counter-Terrorism Service, all of which are located within the approaches to Baghdad International Airport.”

For his part, the military spokesman for the Hezbollah Brigades, Jaafar al-Husseini, described the missile attack that targeted Baghdad airport as “suspicious.”

He added: “Targeting Baghdad airport at this time is being carried out by suspicious hands, and its aim is to disrupt the Iranian president’s visit to Baghdad, and we call on the security services to uncover those involved.”

Shafaq.com

Pezeshkian: The MoUs signed today represent a new start for cooperation between the two countries

Iranian President Masoud Pezeshkian considered, on Wednesday, the memoranda of understanding that his country concluded with Iraq as a new start for cooperation between the two sides.

“We agreed to form a team of experts from both countries to develop long-term strategic plans that establish close cooperation to exploit available opportunities. To achieve this goal, we need to activate agreements between the two countries,” Pezeshkian, who is visiting Iraq, said in a press conference with Prime Minister Mohammed Shia al-Sudani.

He added: “We need to conclude security agreements in order to cooperate with each other to combat ISIS terrorism and smuggling. The agreements concluded so far have achieved good results, and we need to diagnose the weak points of these agreements.”

The Iranian president said: “We want a strong, stable, secure and independent Iraq, and in the presence of a secure and prosperous Iraq, we will be able to build fraternal relations between the two countries.”

Regarding his visit, Pezeshkian said that it “represents a great opportunity, and based on what was agreed upon, the two parties will hold specialized meetings to continue concluding new agreements.”

Shafaq.com

Iraqi Dinar / US Dollar auction results for Tuesday 09-10-2024

Results of the foreign currency selling window for Thursday 09/10/2024

Advertisement No. (5200)

The amount:

Total amounts of transfers abroad (transfers, credits)
242,703,662

Total cash withdrawals
15,500,000

Total total sales
258,203,662

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

Economist: We have enough reserves to finance expenses for a year

Economic expert Safwan Qusay explained on Tuesday that Iraq has financial reserves sufficient to finance expenses for a year without the need for any revenues, noting that the financial situation is reassuring and there is no fear about financing salaries.

Qusay told Al-Maalouma, “The Central Bank has reserves worth $13 billion, and this number provides the ability to finance all expenses without any revenues for 360 days, while mathematical standards require the presence of amounts covering 180 days in the event of a disaster or emergency in the country.”
He added, “The government can comfortably finance all expenses for the mentioned period, and this was implemented during the period of the emergence of the Corona virus, and the recession that accompanied the global economy.”
He explained that “the financial situation is good and reassuring, and there is no fear of a shortage in liquidity or expenses, and salaries amounting to 60 trillion dinars must be transferred to stimulate economic activity and not towards imports, in order to maximize the capacity of the Iraqi economy.”

Almaalomah.me

Parliamentary committee intends to submit its report on the government evaluation next week

The Strategic Planning and Federal Service Committee revealed today, Tuesday, its intention to submit the final report on the government evaluation next week, while indicating that the report will be presented to members of the House of Representatives.

Committee member Suad Al-Maliki told Al-Maalouma Agency, “Her committee hosted all the ministers and completed its report on the government evaluation,” noting that “there are a number of recommendations that will be presented to the honorable representatives.”

She added that “the technical report of the committee will be submitted to the Presidency of the House of Representatives during the coming week in order to present it on the agenda of the House of Representatives.”

Al-Maliki pointed out that “the Strategic Planning and Federal Service Committee will assess each ministry individually.”

Almaalomah.me

Iraq’s financial revenues exceed 77 trillion dinars in 7 months of 2024

The Ministry of Finance revealed on Tuesday that the size of Iraqi revenues in the federal budget during 7 months exceeded 77 trillion dinars, confirming that the oil contribution to the budget remains around 89%.

Shafaq News Agency followed the data and tables issued by the Ministry of Finance last August for the accounts of January, February, March, April, May, June and July for the current fiscal year, which showed that oil is still the main resource for Iraq’s general budget, reaching 89%, indicating that the rentier economy is the basis for the country’s general budget.

The financial tables indicated that the total revenues for seven months of the current year amounted to 77 trillion, 475 billion, 502 million, 239 thousand, and 546 dinars, indicating that the total advances amounted to 15 trillion, 664 billion, 477 million, 820 thousand, and 559 dinars.

According to the financial tables, oil revenues amounted to 69 trillion, 55 billion, 827 million, and 984 thousand dinars, which constitutes 89% of the general budget, while non-oil revenues amounted to 8 trillion, 317 billion, 883 million, and 512 thousand dinars.

For his part, economic expert Mohammed Al-Hasani said in an interview with Shafaq News Agency, “The economic problem in Iraq is due to the failure of the regimes that ruled Iraq to achieve the mission of moving towards a developmental economy by investing the oil wealth in diversifying the economy, creating productive employment opportunities, raising the level of human development, and ridding it of rentierism.”

Al-Hasani stressed the necessity of “activating a set of laws that encourage the local and foreign private sector to enter the Iraqi market, including customs tariff laws, consumer protection, anti-monopoly laws, and others.”

In March 2021, the Prime Minister’s advisor for financial affairs, Mazhar Muhammad Salih, confirmed in an interview with Shafaq News Agency that the reasons for the economy remaining rentier are due to the wars and the imposition of an economic blockade on Iraq during the past era and the political conflicts we are witnessing today, which led to the dispersion of economic resources.

The continued reliance of the Iraqi state on oil as the sole source of the general budget puts Iraq at risk from global crises that occur from time to time due to the impact of oil on them, which makes the country turn every time to cover the deficit through borrowing from abroad or domestically, which thus indicates the inability to manage the state’s funds effectively, and the inability to find alternative financing solutions.

Shafaq.com

Iraq sells more than 3 million barrels of oil per day in August

The Iraqi Economic Observatory revealed, on Tuesday, the volume of Iraq’s oil exports during the month of August, which amounted to more than 108 million barrels.

The Iraqi Economic Observatory said in a press release that the Ministry of Oil has been delaying the issuance of preliminary data on Iraqi oil exports for some time, which was announced at the beginning of each month, as well as not announcing the average price of a barrel of Iraqi oil in the final data.

He added that according to the initial data monitored by the Iraqi Economic Observatory, Iraq’s exports during last August amounted to about 108 million barrels, at a rate of 3.47 million barrels per day.

The Observatory confirmed that China came in first place in Iraq’s exports, with 42% of the total sales in August, as China alone bought more than 45.3 million barrels, followed by India with 24%, which amounted to more than 26 million barrels, and 6 European countries, which constituted 17%, more than 18 million barrels.

He added that South Korea bought more than 6.8 million barrels.

The Observatory also indicated that Iraq has two types of crude oil that it sells to global markets, medium and heavy, noting that Iraq’s oil sales were 77% medium crude and 23% heavy crude.

According to statistics from the Iraqi Economic Observatory, the largest buyer of Iraqi oil during the month of August was the Chinese company Sinopec, followed by the Indian Oil Company.

The Iraqi Ministry of Oil announced at the end of last August that the total oil exports achieved for last July exceeded 108 million barrels of crude, according to the final statistics issued by the Iraqi Oil Marketing Company (SOMO).

Shafaq.com

Close to Al-Ameri: We support Al-Sudani, and there is no demand for his resignation or early elections

The Al-Fatah Alliance, led by Hadi Al-Amiri, denied, on Tuesday, what was reported about a request from some leaders of the Coordination Framework for Prime Minister Mohammed Shia Al-Sudani to submit his resignation and move towards early parliamentary elections, as a result of recent problems and crises.

The leader of the coalition, Ali Al-Fatlawi, told Shafaq News Agency, “The news that spoke about the existence of a request from the Coordination Framework or some of the leaders of the framework for Prime Minister Mohammed Shia Al-Sudani to submit his resignation and head towards early elections is incorrect, as there is no such request.”

Al-Fatlawi explained that “Al-Sudani has commitments, which are agreements with the forces of the Coordination Framework, and he is required to resolve these files, most notably the file of withdrawing American forces, as well as the dollar crisis and even the services file, and these files are discussed in depth during the periodic meetings of the framework,” stressing that “the Coordination Framework still strongly supports Al-Sudani and his government, and it is not in favor of moving towards early elections.”

The leaders of the Coordination Framework held a meeting the night before last at Hadi al-Amiri’s house, in the presence of Prime Minister Mohammed Shia al-Sudani.

According to the spokesman for the Victory Coalition, Aqil Al-Radini, the leaders of the Coordination Framework discussed the file of the (Mohammed Juhi Network), and an agreement was reached during the meeting on the necessity of the continuation of Al-Sudani’s government and the importance of overcoming these obstacles and supporting Al-Sudani and his government until the end of its term.

Al-Radini pointed out that “some leaders of the framework considered what happened to be a kind of failure, especially with regard to the (eavesdropping) file from within the Prime Minister’s office, and some exploited this file in order to weaken the government. Therefore, the Coordination Framework stressed during its meeting its support for the government and its passage through this stage to the end of the parliamentary session, especially since it is a comprehensive government for all blocs and parties.”

Shafaq.com

Parliamentary Security: Coordination on 3 levels to follow up on the withdrawal of foreign forces from Iraq

The Parliamentary Security and Defense Committee confirmed, Monday, September 9, 2024, the existence of coordination on 3 levels to follow up on the withdrawal of foreign forces from Iraq.

Parliamentary Security Committee Advisor Mustafa Ajil said in a press interview that “the capabilities of the Iraqi security establishment with all its formations are capable of controlling the pace of security, averting external and internal dangers, and enhancing security and stability, and it does not need any foreign military presence,” noting that “the Council of Representatives issued an important decision in 2020 to withdraw foreign combat forces from the country in light of a national vision and a reading of the security scene in general.”

He added, “The Parliamentary Security Committee is following up on the issue of withdrawing foreign combat forces from the country on three levels, the most prominent of which is with the government, security ministries, and the teams concerned with conducting consultations to determine the roadmap and timetables for the withdrawal,” noting that “national sovereignty is a red line and the withdrawal of any foreign combat force is undisputed.”

Ajeel pointed out that “there are arms and training agreements with many foreign countries, and this matter is subject to the extent of military and security importance, but the presence of any combat force is a settled matter and is within the principle of pushing it to withdraw and leave the country because our security situation is stable and we have forces capable of curbing any security threat.”

High-level military committees from Iraq and the United States have reached an agreement on the withdrawal of coalition forces over two years, and agreed to transform relations into a sustainable security partnership, Defense Minister Thabet al-Abbasi announced in a televised interview followed by “Baghdad Today.”

He added: “It was agreed to end the alliance’s mission in two stages,” indicating that “the first stage begins this year and continues until 2025, while the second stage ends in 2026.”

He explained that “the announcement of the withdrawal was postponed due to the circumstances the region is going through and the American elections,” expecting that an agreement will be reached within the next few days on the withdrawal of the coalition forces that arrived in Iraq with the aim of supporting the country in the war against ISIS.

Regarding the tensions witnessed in the region following the attack launched by the Palestinian Hamas movement on Israel on October 7, and the resulting launch of the Israeli military operation in the Gaza Strip, the Minister of Defense stressed that the contacts made by the Iraqi government played an important role and its role in avoiding the spread of the conflict in the region.

Burathanews.com