Iraq Economic News and Points to Ponder Late Wednesday Evening 11-15-23
Tlm724 Administrator Bondlady’s Corner
The “Sudden” Decline Of The Dollar In Iraq.. What Is The Reason And Will It Rise Again?
Economy/Localities |13-11-2023 |Baghdad today – Baghdad During the past 24 hours, dollar exchange rates suddenly decreased by more than 4%, amid questions about the reason for this decline and whether it is permanent or will return to rising again.
Professor of Economics at Saladin University, Khurshid Othman, considered today, Monday (November 13, 2023), that the decline in the price of the dollar in the parallel market is “temporary.”
Othman said in an interview with “Baghdad Today” that “there is a group of speculators who have coordination and cooperation among themselves, and they are the ones who control the dollar exchange rate, whether rising or falling.”
He added, “The decline in the dollar exchange rate will continue during the next two days, but it will rise again.
It is a trick by speculators to withdraw the dollar from the citizen at a low price and then sell it again.”
Today, Monday, the dollar exchange rates witnessed a noticeable decline in the parallel market and money exchangers, as the average exchange rate reached 160 thousand dinars per 100 dollars, after exceeding the barrier of 166 thousand dinars during the past two days.
The decrease came in conjunction with the Central Bank’s announcement of an agreement with the US Federal Reserve to supply new bank balances in dollars and increase the number of banks capable of carrying out transfers from 5 to 10 banks,
in addition to opening the door to importing dollars from abroad to licensed banks, in addition to opening a platform for booking dollars by travelers.
All of these decisions led to reducing the demand for the dollar, according to specialists.
Its Harmful Effects Are… A Parliamentary Warning Against Printing A New Monetary Mass
11/15/2023 Mawazine News – News Independent MP Nazem Al-Shibli warned today, Wednesday, of the dangers of printing a new monetary mass, stressing that the rise in the price of the dollar has harmed the livelihood of a segment of poor citizens.
Al-Shibli said in a statement received by Mawazine News, “This step may lead to the erosion of the value of the Iraqi dinar, especially in light of the governor’s failure to manage monetary policy.”
He added, “Central Bank Governor Ali Al-Alaq failed to manage the crisis and is unable to achieve stability in the value of the Iraqi dinar,” pointing out that “printing a new monetary mass will lead to adverse damage.”
Al-Shibli pointed out that “the Central Bank floundered in the rise of the dollar, which directly affected the simple Iraqi citizen in his strength and daily livelihood.”
https://www.mawazin.net/Details.aspx?jimare=237895
The Central Bank Agrees To Import The Dollar To Three Private Banks
Dollar Economy News – Baghdad A government source revealed, today, Wednesday, that the Central Bank issued official approvals to three Iraqi private banks to import the US dollar to meet the needs of citizens, confirming that one of the banks’ shipments had actually arrived in Iraq.
The source said, “Over the past two days, the Central Bank issued official approvals to three Iraqi private banks to import the US dollar to meet their customers’ need for this currency in amounts amounting to $100 million,” stressing that “one of the banks’ shipments has actually arrived in Iraq.”
He added, “There are applications from other banks that are on their way to be submitted for decision by the Central Bank of Iraq.”
The source confirmed, “The Trade Bank of Iraq (TBI) is currently holding important discussions with several international companies to transfer amounts amounting to $120 million, and they are on their way to completion within the next few days.”
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The Central Bank Achieves A New Step In The Right Direction To Regulate Foreign Trade
Samir Al-Nusairi Our national economy has been suffering for two decades from a lack of clarity in methodology, fragmentation of policies, and ambiguity in economic decision-making, in addition to its impact on economic, political, and security variables in countries of the world and countries of the region.
Inside Iraq, which clearly led to the failure to achieve stability in the monetary system and the financial system, and thus to the failure to achieve the required economic stability. What further complicated the matter was the weak coordination between monetary policy and financial policy, and thus the lack of clear policies for the real sector, especially for agriculture, industry, and trade, both internally.
And certainly the impact of this on the lack of control over external transfers of imports in US dollars, which confused the monetary market and the commercial market during the years 2021 and 2022, and Iraq was obliged by the US Federal Reserve to pass all external transfers through the electronic platform in accordance with new controls and strict oversight to control the arrival of the dollar to the final beneficiary.
In addition to this, the relevant governmental authorities do not control illicit trade and do not control unofficial border crossings, which forced the Central Bank to assume its role specified in Law No. 56 of 2004 and to take, as of the first quarter of 2023, a large number of procedures, mechanisms and negotiating efforts with the US Federal Reserve.
And banks of other countries with which Iraq has important trade exchange, such as China and India, and some solid correspondent banks for the purpose of organizing foreign trade operations and controlling the movement of foreign transfers in accordance with sound international banking standards.
The efforts of the Central Bank bore fruit last week, after a number of negotiating rounds that lasted for several months, in reaching a new agreement with the US Federal Reserve, in cooperation with Citibank, JP Morgan, and the Singaporean Development Bank, and through some Jordanian banks that have Accounts opened for some Iraqi banks to open new banks, enhance their balances in US dollars, and use new currencies, namely the euro, the Chinese yuan, the Indian rupee, and the UAE dirham, with the aim of increasing the reception channels for merchants and importers, facilitating the procedures for their external transfers, shortening the time limits for external transfers on the electronic platform, and addressing cases of rejection that previously occurred for some transfers. Some merchants.
As well as issuing instructions to allow banks to import the foreign currencies they need for the purposes of covering their daily transactions in accordance with special conditions and controls under the supervision of the Central Bank.
The success of these steps requires that the banks included in the agreement with the US Federal Reserve and wishing to import foreign currencies must provide the necessary supplies and conditions and provide all conditions and capabilities to attract traders.
Importers and customers in accordance with the standards and controls that have been agreed upon. This may require some time to enter the new method of foreign transfers, with direct coverage from the correspondent banks that have been agreed upon for direct implementation to enhance bank balances and diversify foreign currencies.
I believe beyond doubt that the Central Bank has begun implementing its new strategy with sober steps based on an accurate diagnosis of the problems of foreign transfers and exchange rate stability. We hope that the number of banks covered and the number of sober global correspondent banks whose dealings gain the confidence of central banks, including the US Federal Bank, will increase and that the price stability crisis will increase. Drainage is starting to ease.
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Central Bank: Agreement With Turkish Banks To Enhance External Transfer In The Euro Currency
Central Bank of Iraq Economy News – Baghdad An authorized source in the Central Bank of Iraq revealed, on Wednesday, the Central Bank’s agreement with Turkish banks to open accounts for Iraqi banks with the aim of enhancing external transfer in the euro currency .
The source said in a statement reported by the official news agency, and seen by Al-Eqtisad News, that “the Central Bank of Iraq agreed with Turkish banks to open accounts for Iraqi banks for the purposes of external transfer and to enhance balances to finance foreign trade in the euro,” pointing out that “the agreement came during a meeting.” Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, with the Turkish Ambassador, the Chairman of the Turkish Business Council, and the managers of Turkish bank branches in Iraq .
He added, “Other proposals have been developed that will be discussed in Istanbul at the end of this month with the participation of the Central Bank of Iraq and representatives of Iraqi banks .”
The source confirmed, “The agreement came to facilitate the trade exchange process between Iraq and Turkey, especially since the volume of trade between the two countries is very high, in addition to expanding external transfer outlets for importers in the euro currency,” stressing, “The Central Bank of Iraq has taken a number of measures that will contribute to reducing Dollar exchange rate .
He pointed out, “This agreement comes within the work strategy of the Central Bank of Iraq and the implementation of its plan to shift from the electronic platform for external transfers to transfers through correspondent banks to Iraqi banks, and to create multiple channels for external transfers, leading to the transfer of all local banks to external transfers via correspondent banks.” “.
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Provoking Points to Ponder on FEAR for Living the Bold Life by Tess Marshall
- Only those who have never known fear are allowed to think less of others for being afraid. Frankly, I think anyone who has never been afraid of anything in their entire life is either a liar or lacks imagination. ~ Laurel K. Hamilton
52. When you are grateful, fear disappears and abundance appears. ~ Anthony Robbins
53. There is no beauty in sadness. No honor in suffering. No growth in fear. No relief in hate. It’s just a waste of perfectly good happiness. ~ Katerina Stoykova Klemer
54. Courage is knowing what not to fear. ~ Plato
55. A further sign of health is that we don’t become undone by fear and trembling, but we take it as a message that it’s time to stop struggling and look directly at what’s threatening us.~ Pema Chodron
56. We cannot love when we feel fear…When we release the fearful past and forgive everyone, we will experience total love and oneness with all. ~ Gerald Jampolsky