Iraq Economic News and Points to Ponder Monday AM 10-16-23
Tlm724 Administrator Bondlady’s Corner
Parliamentary Warning: The Rise In The Price Of The Dollar Poses Three Risks At The Same Time
Information/private..Representative Hadi Al-Salami warned on Tuesday of the repercussions of losing control over the exchange rate in the parallel market for the dollar after it exceeded the barrier of 163 dinars per 100 dollars. Al-Salami told Al-Maalouma:
“The rise in the dollar exchange rate to levels exceeding 163 thousand dinars per 100 dollars is a matter of great concern, as it increases pressure on the markets and leads to a rise in the prices of commodities, including food, to levels that burden millions of poor families.””
He added, “The Central Bank is responsible, in accordance with the law, for monitoring, following up, and determining the currency exchange rate and supervising the performance of banks.
The rise in the exchange rate represents three risks in one, which are increasing prices,increasing pressures on society, in addition to exacerbating anxiety about the economic situation.”
He stressed that “the Central Bank is responsible for investigating many cases that have been filed by the Integrity and Public Prosecution Office regarding the presence of suspicions of corruption in currency issues and the distribution of banks’ shares of the dollar.”
The parallel market for buying and selling the dollar is witnessing a continuous rise and has exceeded the barrier of 163 thousand dinars per 100 dollars, which has raised concerns about a greater rise.
https://almaalomah.me/news/43296/economy/تحذير-نيابي:-ارتفاع-سعر-الدولار-يشكل-ثلاث-مخاطر-في-آن-واحد
Private Banks And Exchange Companies Seize The Dollar.” Economist: The Central Bank Is “Completely Powerless.”
Economy | Baghdad today – Baghdad Today, Tuesday (October 10, 2023), economic expert Ahmed Al-Tamimi commented on the significant rise in the dollar exchange rates in the “black” parallel market, which reached more than 160 thousand dinars for 100 dollars.
Al-Tamimi said in an interview with “Baghdad Today”,
“The significant rise in the dollar exchange rates in the parallel (black) market confirms the inability of the Central Bank of Iraq to control the exchange rate, as it has not taken actual decisions to confront this crisis that has been going on for many months.”
He added, “Black transfers continue on a daily basis in all Iraqi cities, and they are the basis of the crisis, and the Central Bank is completely unable to find any solutions to these transfers despite its cooperation with the American side.
Therefore, we expect that the dollar will continue to rise during the next few days.”
The Central Bank took several measures and decisions to prevent the circulation of the dollar in local markets above the official price (1320), but to no avail, despite the fact that the only source of the dollar is the Central Bank and despite the fact that those who take the dollar, namely private banks and exchange companies, are known to it, but they are unable to control them and oblige them not to leak them. The dollar through fake transfers, according to observers.
Earlier, independent MP Hadi Al-Salami confirmed, “The current failure in the US dollar issue is borne by all the Iraqi governments that have ruled the country since 2003 until now.
The government of Muhammad Shiaa Al-Sudani has pledged to solve the crisis by establishing mechanisms that prevent the smuggling of hard currency, but they are …….
“You did not succeed in this file.” Al-Salami added in a press interview,
“Reforming the banking system and the dollar crisis requires controlling the currency auction, which is still selling large amounts of dollars, and we do not know where it goes,” noting that “the problem is big in Iraq, and
we are facing huge challenges that may lead to… The current system has cracked, especially since the United States of America has often warned against smuggling the dollar to neighboring countries.” LINK
An Economic Expert Identifies 5 Reasons For The Continuous Rise Of The Dollar And The Fall Of The Dinar In Iraq
Economy |+ Baghdad today – Baghdad Today, Tuesday (October 10, 2023), economic expert Nabil Al-Marsoumi made observations about the decline in the value of the Iraqi dinar compared to the US dollar in the “black” parallel markets, specifying (5) reasons for the occurring fluctuation.
Al-Marsoumi said in a post on Facebook, followed by “Baghdad Today”, and commenting on the measures to control exchange rates, that “The Central Bank of Iraq wants to prevent cash and support electronic payment, as private banks use the cash they buy from the Central Bank to finance trade with Iran.” And Syria.”
Regarding granting the dollar to travelers, he explained that “it does not reach them, so the demand for the cash dollar increases,” indicating that “the current exchange rate crisis is not only monetary and technical, but is essentially a political and economic crisis, and those who believe and promote that the general level of prices are not affected by the rise of the parallel dollar are delusional.””.
Earlier today, Tuesday (October 10, 2023), economic expert Nasser Al-Kanani warned that the dollar exchange rate would exceed the barrier of 200 thousand dinars.
Al-Kanani said in an interview with “Baghdad Today” that “if the dollar exchange rate continues to rise without real measures, the price will exceed 200 thousand at the end of this year.” He added,
“This is because the government and the central bank continue to take ill-considered decisions.”
Yesterday, Monday, the Parliamentary Finance Committee revealed its move to investigate the Jordan National Bank’s acquisition of 70% of the currency selling window in Iraq.
Committee member Moeen Al-Kazemi told Baghdad Al-Youm, “The Parliamentary Finance Committee will move to investigate the issue of the Jordan National Bank’s acquisition of 70% of the currency selling window, and we will work to host officials at the Central Bank in order to follow up on this file.”
Al-Kadhimi stated, “The government and the Central Bank are still working to launch reform packages in order to control the rise in dollar prices and end the difference in the dollar exchange rate in the parallel market, and the coming days may witness the launch of new reform packages.”
The Finance Committee Reviews The “Evaluation Of Banks And The Dollar” Report And Prepares For An “Important Meeting” With Al-Sudani
Economy |Today, 19:55 | Baghdad today – Baghdad Today, Sunday (October 15, 2023), the Parliamentary Finance Committee reviewed the report of the subcommittee responsible for monitoring the work of government banks and the Central Bank, while
indicating that it will hold an important meeting with the Sudanese, the Ministers of Industry and Foreign Affairs, and the Governor of the Central Bank regarding the rise in dollar exchange rates.
The Parliamentary Finance Committee stated in a statement received by “Baghdad Today” that it held, headed by the Chairman of the Committee, Atwan Al-Atwani, and in the presence of its members, today, Sunday, an important meeting to review the report of the subcommittee responsible for monitoring the work of government banks and the Central Bank of Iraq.”
According to the statement, during the meeting, “the causes and repercussions of the rise in the dollar exchange rate were discussed, and ways to address this sensitive file, as well as other files related to the work of banks.”
Al-Atwani said, “His committee, after reviewing the subcommittee’s report, will hold an important meeting with the Prime Minister in the coming days, and a series of other meetings with the Ministers of Industry and Foreign Affairs and the Governor of the Central Bank to find out the reasons for the continued rise in the dollar exchange rates and the measures taken to address them.” He added,
“The Finance Committee will also sponsor seminars and workshops for the private sector and businessmen in this regard, in order to listen to their opinions and ideas regarding finding alternatives and effective solutions at the immediate and future levels.”
Al-Atwani stressed “the necessity of concerted efforts to restore stability to the market, ensure the continued strength of the Iraqi dinar against foreign currencies, preserve the country’s hard currency reserves, and strike with an iron fist the heads of speculators who are making a living from this crisis.”
He warned of “the danger of continuing to deplete the dollar through the expansion of foreign imports, and the importance of limiting trade exchange to essential goods and materials,” stressing “the mportance of activating local industry and operating Iraqi factories in a way that ensures that the dollar remains circulated internally and prevents its smuggling abroad.”
As for the external reasons indicated in the subcommittee’s report, Al-Atwani stressed
“the necessity of integration between the Central Bank of Iraq and the Ministry of Foreign Affairs to address the issue of the decline in US Federal Reserve transfers to Iraq,” pointing out that “this measure requires continuous dialogue and communication with the US Treasury to determine the reasons.””
And address it technically and diplomatically in a way that ensures that the country’s need for hard currency is met.”
The meeting also discussed a number of other files, including “loans and advances granted by government banks to citizens,” as the recent efforts of the Parliamentary Finance Committee, after communicating with the Real Estate Bank, resulted in extending the housing initiative loan repayment period from 15 to 20 years, and canceling the interest. As is the practice. In the procedures for the first meal benefiting from this initiative.” The statement noted,
“In conclusion, Al-Atwani affirmed his full support for the work of all subcommittees in the Finance Committee to perform their oversight role to the fullest extent, praising the efforts made within the framework of integration between the legislative and executive institutions to serve the nation and the citizen.”
Government Directive Regarding The Banking Sector In Iraq
2023-10-15 | 7,705 views Today, Sunday, Prime Minister Muhammad Shiaa Al-Sudani directed the simplification of all banking procedures, and he also directed the preparation of a proposed list of facilities and simplified procedures to be submitted within a week. Al-Sudani’s office said in a statement,
“Within the framework of his follow-up to the plan to implement financial and administrative reforms in the financial and banking sectors, Prime Minister Muhammad Shia’ al-Sudani chaired, this evening, Sunday, a meeting that included the Governor of the Central Bank and the directors of government banks,
in which the procedures and work mechanisms taken to achieve… Banking reform, which constitutes one of the basic steps of financial and economic reform that the government adopts in its executive approach.”
Al-Sudani stressed, according to the statement, that “financial reform is not just a slogan, but rather a series of terms and procedures that the government is determined to implement without hesitation, and will face all the challenges and obstacles that impede the progress of implementing systematic and thoughtful reform plans.”
The statement added that Al-Sudani “directed the simplification of all banking procedures, and the preparation of a proposed list of facilities and simplified procedures to be presented within a week, in addition to providing a summary of the obstacles that obstruct the banking reform process, and proposing effective and implementable treatments for them, in a way that helps in overcoming the approved traditional contexts, which… This prevents the government’s goal of developing this important economic and service sector from being achieved.”
https://www.alsumaria.tv/news/localnews/470708/توجيه-حكومي-يخص-القطاع-المصرفي-في-العراق
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Points To Ponder on Wealth:
Our wealth is often a snare to ourselves, and always a temptation to others. — Colton
Men pursue riches under the idea that their possession will set them at ease and above the world. But the law of association often makes those who begin by loving gold as a servant, finish by becoming its slaves; and independence without wealth is at least as common as wealth without independence. – Colton
In proportion as nations become more corrupt, more disgrace will attach to poverty and more respect to wealth. — Colton
To have what we want is riches, but to be able to do without is power. — G. Macdonald
No man can tell whether he is rich or poor by turning to his ledger. It is the heart that makes a man rich. He is rich according to what he is, not according to what he has. — H W Beecher
The use we make of our fortune determines as to its sufficiency. A little is enough if used wisely, and too much if expended foolishly. — Boovee
Worldly riches are like nuts; many clothes are torn in getting them, many a tooth broken in cracking them, but never a belly filled with eating them. — Venning
Riches do not delight us so much with their possession, as torment us with their loss. — Gregory
As riches and favor forsake a man we discover him to be a fool, but nobody could find it out in his prosperity. — Bruy’ere
Wealth is like a viper, which is harmless if a man knows how to take hold of it; but if he does not, it will twine round his hand and bite him. — St Clement
Money and time are the heaviest burdens of life, and the unhappiest of all mortals are those who have more of either than they know how to use. — Johnson
There is no society, however free and democratic, where wealth will not create an aristocracy. — Bulwer
The wealth of a state consists not in great treasures, solid walls, fair palaces, weapons and armor; but its best and noblest wealth, and its truest safety, is in having learned, wise, honorable, and well – educated citizens. Wealth consists not in having great possessions, but in having few wants. — Epicurus
If thou desire to purchase honor with they wealth, consider first how that wealth became thine; if thy labor got it, let they wisdom keep it; if oppression found it, let repentance restore it; if they parent left it, let they virtues deserve it; so shall they honor be safer, better, and cheaper. — Quarles
