Bondlady’s Corner

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Iraq Economic News and Points to Ponder Thursday Evening 12-21-23

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Saleh: The Dollar Exchange Is A Story That Not Many People Know About, And The Effects Of The Parallel Market Noise Are 10%.

Time: 12/21/2023 10:48:34 Read: 3,185 times  {Economic: Al-Furat News} Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, explained that the policy of setting the exchange rate is affected by many factors, and the most important of these factors is the relationship between the Ministry of Finance and the Central Bank, noting that “the effects of exchange noise in the parallel market are 10%.”

Saleh said in a press statement, “The reality of the policy of setting the exchange rate is affected by many factors, and the most important of these factors is the relationship between the Ministry of Finance and the Central Bank. The exchange rate in Iraq is a story that many do not know about. It is essentially a contractual price between Finance and the Central Bank.”

He pointed out that the price is 1,320 Iraqi dinars per dollar, and this is the price approved in the budget and for all contracts and foreign transactions.

Therefore, the question is; Why should we fight “dollarization”? The Sudanese advisor wondered, and pointed out that “dollarization” did not exist in Iraq before 1982.

There was no use of foreign currency within the economy in buying and selling, contracts, transactions, etc., but the deviation of the Iraqi economy was due to the Iraq-Iran war, and the entry of the blockade later, and then The change that occurred after the year 2003 and economic openness made there two currencies, the national currency, and the currency of another country subject to a different monetary policy.

In light of this scene, Saleh saw that “holding a price system has become difficult, so one of the reasons for any country to respect its sovereignty is that there should not be two currencies within the economy, as the foreign currency is intended to be dealt with outside the economy, so it is not possible to consider the existence of a price in the dollar.”

And the price in the dinar, one of which rises and the other falls, so no monetary policy can control such a situation, which is what prompted the monetary authority to intervene in the matter.”

The Sudanese advisor continued, “There are two things: the legacy of dealing in foreign currency and keeping it, and considering it part of savings and a refuge for preserving value. This is a story that has been inherited since the eighties of the last century. It is not difficult to dismantle it overnight. Therefore, the extent of the success of monetary policy in this case remains, by financing… Foreign trade, 80% of which passes through the international compliance platform concerned with auditing transfers, is it really to finance Iraq’s foreign trade?

The Sudanese advisor pointed out, “Estimates of auction sales are around 45 billion dollars a year, and it is part of the foreign currency window. Approximately 15% is usually cash, and it is said that it is for simple travel needs, and the rest can be transferred via cards that people were not using, and which have now become possible.” “Use them, but on the condition that this process is regulated and not random.”

Regarding government measures to control the market, Saleh went on to say, “This is not propaganda, but rather that there are consultations by a high-level technical team in the Central Bank, and the American side is not arrogant, but rather they have principles that they are working on, as is the Iraqi Central Bank, and therefore There are ongoing understandings, but they take some time, and the most important thing is for the market to adapt and for banks to adapt to (Kyc), and for global compliance.”  LINK

Sudanese Advisor: The Dollar Is Declining, Prices Are Stabilizing, And Expectations Are Optimistic

Economy | 04:19 – 12/21/2023  Mawazine News – Baghdad,  Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, commented today, Thursday, on the optimistic expectations of the International Monetary Fund regarding the growth rate in non-oil GDP in Iraq, and while he announced a decline in the annual growth rate of prices, he identified a factor that contributes to the stability of the general level. For prices.

Saleh said: “According to what was announced by the statement of the International Monetary Fund expert delegation in its recent consultations with the official Iraqi side: it is expected that the growth rate in non-oil gross domestic product will reach approximately positive 5%, and in our estimate that these optimistic expectations reflect great economic dynamism in The movement of growth of the real and service sectors outside the oil sector, as a result of the renaissance of investment in the construction sector, infrastructure, digital services and various interconnected activities, which is an increase in growth equivalent to approximately twice the growth of the population, which means it has positive effects on the prosperity of individual income because growth is linked to the level of employment and use of resources. humanity and reducing unemployment rates.

He added, “Price spikes may occur individually, but what concerns us is the stability of the general level of prices. Therefore, it is noted that the increase in growth in price rates is decreasing, as the annual growth rate of prices decreased from 7% last January to 3.7% last month.” November of this year compared to November of last year.

Saleh continued, “On the other hand, the exchange rate in the unregulated market has not witnessed new rises. Rather, today it is in a gradual decline. The more regular the work of the compliance platform is and the more banks respond to the requirements of combating money laundering in a transparent manner, the more transfers will increase through the external transfer platform, which is the responsible platform.” On meeting the private sector’s foreign currency needs by 85% to finance trade.

He noted that “the needs of travelers are met through two ways: credit cards and cash dollars, and that private banks have imported cash dollars for themselves to meet the needs of their customers from their dollar accounts in amounts that have exceeded tens of millions of cash dollars in recent days, and they are continuing normally based on the regulations.” issued by the Central Bank of Iraq in this regard.

He pointed out that “the commodity market has begun to be supported by a diversified commodity supply through the movement of additional government imports, especially food, medicine, building supplies and spare parts, all of which are supplied at a fixed exchange rate of 1,320 dinars per dollar, which is the factor that contributes to the stability of the general level of prices and counters market noise.” Illegal and irregular exchange accounts for only 10% of foreign currency trading.”

Al-Sudani: The Path Of Development Will Create New Opportunities That Will Enhance The Economy Of Iraq And The Region

Political | 03:09 – 12/21/2023  Baghdad – Mawazine News  Today, Thursday, Prime Minister Muhammad Shiaa Al-Sudani stressed the importance of developing economic integration relations with Iran, while noting that the development road project will create new opportunities that will enhance the economy of Iraq and the region.

The Prime Minister’s Media Office said in a statement: “Prime Minister Muhammad Shiaa Al-Sudani received, today, Thursday, the Iranian Undersecretary of Foreign Affairs for Economic Affairs, Mehdi Safri,” noting that “Safri is visiting Iraq at the head of an Iranian technical delegation to discuss the participation of Iranian companies in projects.” path of development.

He added, “Safari conveyed to the Prime Minister the congratulations of the President of the Islamic Republic of Iran, Ebrahim Raisi, to the Iraqi government and people, on the occasion of the success of organizing the provincial council elections and the completion of this constitutional entitlement.”

During the meeting, the Prime Minister pointed out “the importance of developing economic integration relations with Iran, and Iraq’s openness to its regional neighborhood for greater communication and contribution to development projects, and confronting economic challenges, which will reflect positively on the stability of the region.”

He stressed that “the vital development road project and the projects attached to it will pave the economic arena for closer cooperation and create new opportunities that enhance the economy of Iraq, and all neighboring countries and the region.”

An American Official: The Repeated Attacks On American Bases Constitute A Concern For The Work Of Foreign Investors In Iraq

US Deputy Secretary of State Victoria Nuland confirmed: “The repeated targeting of American bases by outlaws constitutes another concern for the work of foreign investors in Iraq.”

Nuland said in a roundtable for reporters that the repeated targeting of American military bases, which exist with the approval of the Iraqi government, by some Which threatens the security and independence of Iraq, affects the work of foreign investors in Iraq, and constitutes another concern for us.”

She added, “We are concerned about these attacks, which are related to terrorism, and we are working with the security forces within the security agreement to preserve the security and stability of Iraq.”

Nuland stressed: “These attacks do not only threaten security, but also threaten the economy and are a motive for expelling foreign investors when stability is not achieved.” security in the country,” noting that the Iraqi government’s measures were good, and we praise them and thanked Prime Minister Muhammad Shia’ al-Sudani, and we will support Iraq and its government to maintain this security.

Regarding the election file, Nuland said, “The elections were held smoothly and safely, and we are happy about that and admire the Iraqis’ rush to elect their representatives in the provinces. This strengthens our confidence and the confidence of the international community in Iraqi democracy.”

The American official pointed out: “Holding elections in Kirkuk is very important after a long interruption, and we praise the role of the Iraqi forces in securing the electoral atmosphere.”

Regarding the financial file, Noland said: “We are doing focused work with the Central Bank of Iraq to raise the level of Iraqi banks, and there is no reduction in dollar shipments sent to Iraq.”

She indicated the continuation of work with the Central Bank of Iraq within the framework of cooperation between the two countries, stressing that there is no reduction in dollar shipments sent to Iraq.

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Provoking Points To Ponder on Money

Wine maketh merry: but money answereth all things.  Bible

If you would know the value of money, go and try to borrow some.  – Benjamin Franklin

Never ask of money spent Where the spender thinks it went. Nobody was ever meant To remember or invent What he did with every cent.  – Robert Frost

The almighty dollar, that great object of universal devotion throughout our land, seems to have no genuine devotees in these peculiar villages.  – Washington Irving

Jesus went into the temple… overthrew the tables of the money changers, and the seats of them that sold doves.  – Bible

When I had money everyone called me brother.– Polish proverb

Take care of the pence, and the pounds will take care of themselves.  – William Lowndes

Ah, take the Cash, and let the Credit go, Nor heed the rumble of a distant Drum!  – Omar Khayyam

When money speaks the truth is silent.  – Russian proverb

Money is not required to buy one necessity of the soul.  – Henry David Thoreau

Not greedy of filthy lucre.  – Bible

The love of money is the root of all evil.  – Bible


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