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Iraqi News Highlights Sunday Afternoon 8-13-23

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The Dinar Is In The Central Recovery Rooms.. And Accusations Against The Americans Of Creating Crises

Information / special.  The official currency of the Republic of Iraq, and one of the historical manifestations and legacy that accompanied Mesopotamia for more than 90 years, proved its strength in the global economy, but in one way or another it began to decline and reached “unenviable” stages.

The dinar, which was previously compared to world currencies, reached the path of strength overnight and found itself ahead of many countries, as it began to be used in 1932, i.e. during Iraq’s independence from Britain, and was replaced by the Indian rupee at a rate of 1 dinar = 13 rupees.

Later, he decided to link it to the US dollar without changing its value at a rate of 1 dinar = 2.8 dollars, and in 1971 Washington took a decision to devalue its currency by 7.9%, and in 1973 it decreased by 10% to become $3.3778, and it fell to 3.2169. $, which was the price that remained in circulation until the second Gulf War in 1991.

And after 2003, the local currency in Iraq began to decline day after day, which led to its reaching significantly low rates against the dollar, so the Central Bank’s procedures did not help it, and America’s policy towards the Iraqi economy “made matters worse.”

The economic expert, Abd al-Rahman al-Mashhadani, explained the reasons for the instability of the Iraqi dinar in the local markets compared to other Arab currencies, while confirming the existence of a large discrepancy between import and export in the country’s markets.

Al-Mashhadani said, in an interview with Al-Maalouma Agency, that “the central banks of the Gulf countries, whether they are Jordan, Kuwait or even Saudi Arabia, have taken a decision to price their local currency, which depends on a basket of currencies, including Iraq, as bulletins previously appeared in the newspaper in the seventies.” of the last century, measured on the basis of this basket.”

And he adds, “All world currencies are attributed to the dollar, but the economies of these countries are stable and there is no problem, and the difference is obtained at the prices of market materials, that is, inflation occurs and the rates of rise increase, which happened in the Emirates, Saudi Arabia and Kuwait as well.”  And the economist explains,

“These countries do not deal in dollars in the markets at all, given that all financial transfers are obtained in the local currency only, and this is one of the reasons for the stability of the market,” noting that

“Iraq was unable to control this situation completely.”  Al-Mashhadani points out,

“The other matter is trade, that is, import and export, without relying on the government sector in particular. In Iraq’s markets, as a result of the large discrepancy between import and export, it is natural that there will be a great demand for dollars.”  And he confirms,

“The Iraqi dinar is linked to the dollar before 2003, that is, from the Kuwaiti war in 1991, given that the market has always fed the import of the private sector, so there will be no stability.”

The dinar is in the central recovery rooms.. and accusations against the Americans of creating crises

In turn, a former member of the House of Representatives, Jassem Al-Bayati, personified the reasons for the weakness of the dinar currency in the Iraqi markets, while

accusing America of playing an “inappropriate” game with Iraq.

Al-Bayati mentioned in an interview with Al-Maalouma Agency, that “the weakness of the dinar and its instability in the Iraqi markets, especially in recent times, has many reasons behind it,” noting that

“the first reason is the decision to re-exchange the dollar against the dinar from 1470 to 1320.”  Al-Bayati explains:

“There is no country that takes such a step and reduces the dollar by such a large percentage,” adding:

“The reduction stages are supposed to be consecutive, starting from 1460 – 1420 – 1400, and so the decline is consistent.”  And he added,

“We are now in a state of confusion, as we cannot obtain dollars in the local markets, not even from bank accounts,” noting that

“the dinar is going through a period of instability.”

And the former member of the House of Representatives points out that,

“The other thing behind the instability of the dinar is the connection of the issue with America, which is playing an inappropriate game with Iraq.”  And Al-Bayati shows that

“the decision to reduce the dinar is governmental and it bears its responsibility,” noting that

“the central bank’s measures to restore the strength of the Iraqi dinar did not bear fruit, and things may be complicated after more.”  He continued his speech, saying:

“The decision to return the dollar to 1,320 dinars greatly affected the financial budget, and nearly 10 trillion dinars were sacrificed,” noting that

“price speculators and those close to America and neighboring countries supporting Washington are the ones who obtained these 10 trillion through Buying the dollar at 1320.

The sources of countries’ strength in the economic field are determined by several factors, foremost of which is the national currency, which requires elaborate measures to maintain its strength internally and externally, and

the basis of these measures is to activate the private sector, expand the import sector and reduce exports. https://almaalomah.me/news/economy/الدينار-في-غرف-انعاش-المركزي-واتهامات-للأمريكان-بخلق-الازمات

Parliamentary Finance: The Central Bank’s Procedures Failed To Control The Dollar

Information / Baghdad..A member of the Parliamentary Finance Committee, Muhammad Nuri, confirmed, on Saturday, the failure of the central bank to control the exchange rate of the dollar against the Iraqi dinar.

Nuri said in an interview with Al-Maalouma agency,

“The gateway to smuggling currency is still continuing by the parties and their banks, with the increase in the sale of the dollar by the Central Bank of Iraq.”  He added that

“the central bank’s policy towards the dollar has not succeeded so far,” noting that

“the central bank does not have serious and real solutions to control the exchange of the dollar.”   Nuri pointed out that

“the dollar file is still outside the control of the Central Bank due to the control of some external and internal parties by the decision of the Central Bank.”

A member of Parliament, Amir Al-Mamouri, confirmed earlier that

the currency auction has become a front for draining the dollar and making profits from corrupt money,

pointing out that the file to solve the dollar crisis has not made any progress. End / 25 h

https://almaalomah.me/news/economy/المالية-النيابية:-إجراءات-المركزي-فشلت-بالسيطرة-على-الدولار

What Are The Reasons For The Weakness Of The Iraqi Dinar Compared To Other Currencies?.. An Economist Answers

Aug 12  Information / special.  Today, Saturday, the economic expert, Abd al-Rahman al-Mashhadani, explained the reasons for the instability of the Iraqi dinar in the local markets compared to other Arab currencies, while confirming the existence of a large discrepancy between import and export in the country’s markets.

Al-Mashhadani said, in an interview with Al-Maalouma Agency, that “the central banks of the Gulf countries, whether they are Jordan, Kuwait or even Saudi Arabia, have taken a decision to price their local currency, which depends on a basket of currencies, including Iraq, as bulletins previously appeared in the newspaper in the seventies.” of the last century, measured on the basis of this basket.”

He added, “All global currencies are attributed to the dollar, but the economies of these countries are stable and there is no problem, andthe difference is obtained at the prices of market materials,

that is, inflation occurs and the rates of rise increase, which happened in the UAE, Saudi Arabia and Kuwait as well.”

The economist explained, “These countries do not deal in dollars in the markets at all, given that all financial transfers are obtained in the local currency only, and this is one of the reasons for the stability of the market,” noting that “Iraq was unable to control this situation completely.”  ‘

And Al-Mashhadani said, “The other matter is trade, that is, import and export, without relying on the government sector in particular. In Iraq’s markets, as a result of the large discrepancy between import and export, it is natural that there is a great demand for dollars.”

He stated, “The Iraqi dinar was linked to the dollar before 2003, that is, from the Kuwaiti war in 1991, given that the market has always fed the import of the private sector, so there will be no stability.”

The Iraqi dinar has been in an unenviable situation for nearly 20 years.

After one dinar was equal to 3 and a half dollars during the past century, it reached more than 1550 against one US dollar,   which caused problems in the Iraqi economy. Ended / 25R

https://almaalomah.me/news/economy/ما-أسباب-ضعف-الدينار-العراقي-مقارنة-بالعملات-الأخرى-اقتصادي

Is Commercial Policy Or Banks Bear The Instability Of The Exchange Rate?

A side of the Shurja market in Baghdad  Maytham Al-Bolani  It is necessary to stand on the economic changes and transformations that took place after 2003,

the most important of which is the growth of Iraqi per capita consumption, which was accompanied with external openness, which caused an increase in the volume of imports. Any controls and are not subject to taxes and fees as a result of rampant corruption in government departments and other factors.

All these factors produced an unregulated commercial system, for example, a merchant who deals in millions of dollars is not officially registered and ships goods in the names of customs clearance companies and does not have a commercial record, for fear of the tax system in Iraq, and

therefore the system destroyed the banking system, through unregulated trade And financial transfer according to messages via social media applications, which transfer money in moments, which has become more flexible for the commercial sector,

but it had adverse and negative results on the banking sector, which exposed it to risks and obtained a low rating in compliance with the rules of money laundering and terrorist financing.

The commercial sector received a shock from the US Federal Bank, which changed the rules of financial transfer from old rules established by the banking system based on the requirements of the commercial sector to solid rules through the remittance platform (despite our reservations about some technical failures in this platform),

but the question is whether the commercial sector is able to adapt himself according to these banking requirements in order to be able to continue,

by implementing the procedures represented in establishing an official company first and opening bank accounts for it, and obtaining a tax record despite the harshness and brutality of the Iraqi tax system, and shipping in the names of the importers themselves and transfer by the banking system and according to international norms and the required compliance rules..

A warning was issued against the attempts of some people to drag the banking sector to adapt its situation to a distorted commercial policy, and  the opposite must be to support the commercial sector by adapting its legal status,

creating tax and customs reforms to serve this sector, which has been exposed and is subject to many calamities and calamities, and

maintaining a strong, discreet banking sector with the ability To keep abreast of developments and is able to meet the requirements of correct trade, and

here is the role of the Central Bank of Iraq and its ability to exercise its supervisory role on banks and motivate them in order to develop their practical tools, and

the results will be positive if the vision is completed between the commercial sector and the reforms that the government must consider, which contributes to reducing the price of dollar exchange.

Views 217     Added 08/11/2023 – https://economy-news.net/content.php?id=35633

The Minister Of Finance Announces The Cancellation Of Thousands Of Bank Accounts

Political        Baghdad – conscious  Today, Saturday, Finance Minister Taif Sami announced the cancellation of thousands of bank accounts.

In her response to the question during the session, part of which was chaired by Mohsen Al-Mandalawi, First Vice-President of the Council, Sami referred to

“the decision of the Council of Ministers and the recommendation of the Central Bank to start working according to the automation system in banks and banks by contracting with solid private companies that will prepare the requirements.”

And she warned of “the presence of reluctance by two companies in carrying out the work at the ministry’s headquarters and the banking services company,”

pointing to “the cancellation of thousands of bank accounts devoid of balances, and work is continuing to implement the automation system in banks and ministry departments.”   And she indicated,  “The ministry sends its employees to training courses on working in automation.” https://www.ina.iq/191389–.html

 

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