Iraq Economic News and Points to Ponder Thursday Evening 11-23-23
Tlm724 Administrator Bondlady’s Corner
11/23/2023 444 views Today, Thursday, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained the goal of the Central Bank’s circular today regarding trading the dollar outside the platform according to supply and demand, indicating that it will provide high flexibility in supply that contributes to market stability. Saleh told the official agency,
“Liberating the operations of buying and selling foreign exchange is not an alternative to the policy of defending price stability and the government’s plan to interfere in the stability of the general level of prices.”
Saleh added, “Families, natural and legal persons in Iraq are hoarding amounts of cash in foreign currency and outside the banking system amounting to billions of dollars and are subject to two phenomena.
The first is the difficulty of disposing of their circulation outside the laws of supply and demand that create the currently free exchange rate due to deterrent legal controls and
the second is the contraction of a large monetary supply from Liquid foreign currency, which has stopped moving in the form of a cash hoarding that is immobile and outside the circle of supply.” He continued,
“This exacerbates exchange rate fluctuations under the influence of (a liquidity trap in foreign currency resulting from an expected positive wealth due to the rise in the value of foreign exchange against the local currency).” Saleh added,
“Therefore, liberalizing the climate of dealing in foreign currency and giving it a white character will provide high flexibility in supply that contributes to reducing noise in the secondary exchange market,
which provides a flexible supply of foreign exchange that leads to market stability, supported by a government policy that provides commodity supply through the official price.” “For highly stable exchange and financed at an exchange rate of 1,320 dinars per dollar.”
https://www.nrttv.com/ar/detail3/18305
A New Official Book…Except For The Window Dollar – The Central Bank Allows Banks And Money Exchangers To Sell At The Market Price
News source/ newsroom In a new official directive, the Central Bank allowed banks and exchange companies to sell the dollar at the market price,
with the exception of amounts received through the currency selling window,
which means canceling the previous directives that prohibited all transactions that are not subject to the official exchange rate.
A directive from the Central Bank to banks, financial brokerage companies and money exchanges, a copy of which was obtained by Iraq News:
With the exception of the window dollar – the central bank allows banks and money exchangers to sell at the market price
https://964media.com/storage/2023/11/4ARLV58MziSGEMHqHNHT4Da9Yl4Xwfn.jpg
https://iraqakhbar.com/4113340
The Central Bank Issues Circulars To Banks Regarding Their Share And The Sale Of Dollars To Citizens At The Official Rate.. Document
Economy | Baghdad today – Baghdad The Central Bank of Iraq issued circulars to licensed banks regarding their share and the sale of dollars to citizens at the official rate.
According to a document obtained by “Baghdad Today”, issued on (November 22, 2023),
“We confirm our notice No. 463/3/9 on 8/17/2023, paragraph (first), thereof, that the official price for selling the cash dollar to the final beneficiary, the citizen.”
The amount of (1320) dinars/dollars goes to the cash share received by banks and exchange companies and brokers in buying and selling foreign currency directly from this bank/foreign currency buying and selling window.
It must be adhered to and sold in accordance with the instructions communicated to you. Otherwise, the price is subject to the forces of supply and demand in the market.”.
Below is the text of the document:
https://baghdadtoday.news/uploads/posts/2023-11/1700728334271.png
Read The Latest Central Bank Circular: Has Dollar Trading Become Available To Everyone?
Economy |Baghdad today – Baghdad The Central Bank of Iraq’s statement yesterday, Wednesday, that the dollar exchange rates are subject to “the forces of supply and demand in the market,” raised several questions from economists about the reasons that prompted the governor to issue a decision that only recently considered it an “economic crime” that would put the accused in prison under penalty of the Penal Code. Effective against speculators in exchange rates.
What economists have pointed out is that all the measures taken in cooperation with the American side for nearly two years have been put in vain by the return of the currency auction in a “parallel” manner, which is considered an implicit acknowledgment of the existence of a “parallel market” that imposes itself on the Iraqi economy and controls it, and there is no point in preventing it.
The Central Bank of Iraq had issued circulars to the licensed banks regarding their share and the sale of the dollar to citizens at the official price yesterday, Wednesday, as it confirmed that its circulars, No. 463/3/9, on 8/17/2023, paragraph (first), thereof, stated that the official price for selling the cash dollar to… The final beneficiary, the citizen, who amounts to (1,320) dinars/dollars, will go to the cash share received by the banks and exchange companies and mediate in buying and selling foreign currency directly from this bank/buying and selling window of foreign currency. It must be adhered to and sold according to the instructions communicated to you. Otherwise, the price is subject to the forces of supply. And market demand.
Economist Nabil Al-Marsoumi commented on this step, sarcastically, “The militarization of the dollar has ended, after the Central Bank recognized the existence of the parallel market!!!”
On the other hand, economic experts described the Central Bank’s action by saying that the bank was finally convinced of the futility of preventing parallel markets, and allows the exchange of the dollar currency according to supply and demand,” considering that “this step is good and will enhance the stability of the markets.”
The matter led to the raising of several questions by observers about how the Central Bank will ensure that the dollar does not go to prohibited channels, and
whether this means that the Central Bank will retreat from the step of preventing the delivery of dollar remittances to citizens, and
whether dollar circulation will become available and not be pursued and anyone can Banking can sell the dollar to anyone willing to buy the dollar, as well as
whether it will enhance the stability of the markets, especially since cash from the dollar will become available, which may lead to a balance of supply and demand and thus a decline in prices.
Experts: Iraq Has Important Investment Laws, But They Are Ineffective
money and business Specialists in economic affairs said that the investment law in the country is one of the best laws that can attract capital and international companies, in addition to being appropriate to the economic reality, indicating that those advantages provided by the law were not optimally exploited to bring about broad development or reconstruction moves, and were not exploited.
The provisions of the laws are widespread except in the oil field, indicating that legal legislation alone is not sufficient for the inward flow of investment capital.
In an image that confirms the government’s intention to activate investment laws, Muhammad al-Najjar, advisor to the Prime Minister for investment affairs and director of the Iraqi Fund for Development, during his hosting earlier by the Parliamentary Investment and Development Committee headed by Representative Hassanein al-Khafaji, stressed the necessity of reconsidering investment laws and some other laws to suit the objectives of Iraqi Fund for Development.
The advisor, according to a press release issued by the Investment Committee, provided a detailed explanation of the vision for the Fund’s work, the problems and obstacles that obstruct the workflow, as well as the opportunities for success that the Fund seeks to achieve, indicating that the most important goals that the Fund focuses on in its work are establishing partnerships with investment funds and completing investment projects. Through the private sector in Iraq.
Al-Najjar also confirmed that the most important projects that the Fund focuses on supporting are projects with social returns, such as schools and housing projects, as well as profitable projects such as environmental projects, the technology sector, raising production in the agricultural sector, and others, while
the Chairman of the Parliamentary Committee, Hassanein Al-Khafaji, stated that we cannot proceed. In building a strong Iraqi economy without an active and effective private sector, to contribute to creating job opportunities and reducing dependence on oil.
In this regard, the academic and economic researcher, Dr. Abdul Karim Al-Issawi, said in an interview with “Al-Sabah” followed by “Al-Iqtisad News” that “Iraq has begun a new era in its distinguished economic and political relations, and is striving towards openness to the outside and integration into the global economy after political isolation that extended for more than Two decades ago, the
first step towards that openness was the adoption of liberal laws on the investment level, and accordingly, Investment Law No. 13 of 2006 and its amendments were issued. Al-Issawi believes that
“this law is one of the best investment laws in the regional and Arab neighborhood, but
it did not achieve the desired and expected goals of it, namely the flow of foreign funds to invest in the commodity and service economic sectors in Iraq, and
foreign investments were limited to the oil extractive sector largely through oil licensing rounds and in a small percentage.” ” Very much so than other sectors.”
Dr. Al-Issawi continued, “This reality affected national capital, which preferred to invest abroad as a result of the failure to activate investment laws in their correct form, and the absence of an appropriate environment for work in Iraq at that time, which was determined by a group of economic, financial, political, and security determinants, as
legal legislation alone cannot It is sufficient for capital and investments to flow inward, but these legislations must be implemented in the correct manner in order to be compatible with the Iraqi economic reality.”
Al-Issawi pointed out that the current government trends are in the interest of attracting investors and capital, as the Sudanese government is working to activate laws that are in the interest of investment, so this trend should be exploited to create strategic projects relying on the private sector and foreign companies, indicating that
these positive factors were not available in Previous years, as the difference in visions regarding the quality and nature of investments constitutes a major obstacle to companies wishing to enter Iraq, in addition to the conditions that the country experienced in the past, which have completely disappeared now.
For his part, the specialist in economic affairs, Dr. Adnan Bahia, says that investment is one of the development arms of any country that is trying to move at an accelerated pace towards development and sustainable development.
It also contributes to the transfer of technology and modernity, employs a large number of workers, local experts and graduates, and reduces the burden on the state financially and planning. In the areas of development and shaping the future.
Bahia added that investment works to strengthen relations between countries and companies, especially in the field of long-term investments, but it needs a safe and stable environment, in addition to its need for an environment that protects it from routine and dealing with relevant institutions. Views 30 11/23/2023 – https://economy-news.net/content.php?id=37787
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Provoking Points to Ponder on Feelings – Sincerity – Slander
Strong feelings do not necessarily make a strong character — The strength of a man is to be measured by the power of the feelings he subdues – not by the power of those which subdued him — Richter
Cultivate consideration for the feelings of other people if you want not have your own injured — Those who complain the most of ill-usage are those who abuse others the oftenest – Richter
The heart that is soonest to awake to the flower is always the first to be touched by the thorns — Moore
Thought is deeper than all speech; feeling deeper than all thought; soul to souls can never teach what unto themselves was taught — Cranch
The last, best fruit which comes to late perfection – even in the kindliest soul – is – tenderness toward the hard – forbearance toward the un-forbearing – warmth of heart toward the cold – philanthropy toward the misanthropic — Richter
Some people carry their hearts in their heads; very many carry their heads in their hearts — the difficulty is to keep them apart and yet both actively working together — Sterne
A word – a look – which at one time would make no impression – at another time wounds the heart; and like a shaft flying with the wind, pierces deep, which, with its own natural force — would scarce have reached the object aimed at – Sterne
