Bondlady’s Corner – Iraq Economic News and Points to Ponder Wednesday AM 3-27-24

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Iraq Economic News and Points to Ponder Wednesday AM 3-27-24

Tlm724 Administrator Bondlady’s Corner

Iraq Warned The US Treasury To Leave The Dollar.” Parliamentary Finance: The Exchange Rate Will Continue To Decline

Politics |Yesterday, 19:45 |Baghdad today – Baghdad   The Chairman of the Parliamentary Finance Committee, Atwan Al-Atwani, confirmed today, Tuesday (March 26, 2024), that Iraq “warned” the US Treasury of the sanctions policy and the possibility of Iraq converting to other currencies if they continued, while indicating that exchange rates would continue to decline.

Al-Atwani said, according to a statement from his media office, received by “Baghdad Today, ”that “the American sanctions on private banks are political par excellence with the aim of putting pressure on the government,” stressing that  “the American Treasury is exerting great pressure on private banks and that the Prime Minister will discuss this file during his upcoming visit to Washington.””. 

He added: “We delivered a message to the US Treasury through the Central Bank of Iraq, that if this policy continues, Iraq will deal in currencies other than the dollar,” pointing out that  “Iraq is awaiting an invitation to join the BRICS economic group.”

 On the other hand, Al-Atwani explained,   “The committee is currently pressing towards amending the salary scale, and is seeking to resolve it before the end of this year, and is  following up on the file of appointing 2020 lecturers to permanent staff, and  requesting the Ministry of Finance to include their appointment within the Ministry of Education’s allocations for the year 2024,” pointing out that  “The Ministry of Finance is awaiting approval of the budget schedules to launch financing for projects in all governorates.”

 He pointed out that  “Iraq needs to establish a culture of partnership between the private and public sectors in capital, implementation and management according to the principle of service in exchange for interest, and  we must focus on    maximizing non-oil revenues and   developing various productive sectors, instead of excessive reliance on oil, and    our constant emphasis on automating taxes and customs.

” And other government services with the aim of   fighting corruption and  developing 50% of the country’s non-oil imports,” noting that “more than 10 trillion is the state’s loss from tax exemptions.”

Regarding exchange rates, the head of parliamentary finance confirmed that “the  exchange rate will continue to decline according to current data.”

https://baghdadtoday.news/245717-العراق-حذر-الخزانة-الأمريكية-بترك-الدولار.-المالية-النيابية-سعر-الصرف-سيستمر-بالانخفاض.htm

Fiscal And Monetary Policies Succeed In Undermining The Parallel Dollar

 Economical 03/27/2024   Baghdad: Haider Falih Al-Rubaie   The exchange rates of the dollar in the parallel market witnessed a noticeable decline, reaching yesterday, Monday, around 146 thousand dinars per 100 dollars,

a number that specialists believe may decline further in the coming periods as a result of the success of the financial and monetary policies, stressing that the superiority of the official market, represented by the platform for selling the dollar.

The Central Bank, in meeting the needs of foreign trade, led to a decline in the effects of the parallel market for the green currency, while specialists attributed the reasons for this decline to the introduction of the customs automation program (ASYCUDA).

 According to specialists, this decline constituted a positive factor in controlling the prices of goods and materials in local markets.

 They expect inflation rates to decline in the coming periods if monetary policy continues to succeed in meeting foreign trade financing.

In an image that confirms the solidarity of the executive and legislative authorities to confront the effects of the parallel market,

the Parliamentary Finance Committee hosted earlier the Governor of the Central Bank, Ali Al-Alaq, to ​​discuss a number of important files, most notably the   procedures for addressing the large gap in the sale of the dollar between the official price and the parallel market, as well as   foreign trade remittances. Through (the platform).”

 Al-Alaq indicated during the hosting that there were ongoing meetings with the US Treasury, and

 it was agreed to reconsider the sanctions imposed on Iraqi banks, and that  such decisions should not be issued in the future except after discussing and informing the Central Bank of Iraq, as it concerned with monitoring its activity.

In the midst of this, the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, believes that  “economic policy played a major role in imposing a climate of stability in the general level of dollar exchange rates,” indicating that

 “the state of superiority of the official exchange market in financing Iraq’s foreign trade caused a decline in the effects of the market.” Parallel and receding Its illegal activities.

Saleh pointed out to the Iraqi News Agency “INA” that “the decline in the parallel market rates in favor of the official exchange rate is a tangible success in the cohesion of the country’s economic policy in its three aspects:

 financial,     monetary and     commercial,” pointing out that  “the work and high coordination of policies led to providing an incubator of stability embodied in   relative price calm and  containing seasonal price fluctuations for high-demand items,

specifically   providing basic goods related to consumption and daily living for citizens,” noting “the importance of using the customs policy, which was  represented by (reducing customs tariffs and diversifying imports without quantitative limits for basic and necessary goods)    as part of the performance of the financial policy in providing stability.”

price and   guarantee the supply of food and essential goods and production supplies at the official exchange rate and in accordance with the requirements of the national economy.”

 Confirming the views of the government advisor, the economic expert, Manaf Al-Sayegh, pointed out that “the existence of coordination measures between the financial and monetary policies indicates the presence of a sound reading among the pillars of the Iraqi economy, and that the strategy that was developed to enhance the value of the dinar has begun to bear fruit.”

However, Al-Sayegh, during his talk to “Al-Sabah,” urged the necessity of knowing the real measures that led to the decline in the parallel exchange rate to ensure its sustainability during the coming periods,

with the aim of absolutely controlling the green currency and preventing its rise again, stressing that

 this decline in the exchange rate could achieve a number of economic gains,

The most prominent of which is   controlling the prices of goods and materials in local markets, and     reducing the rise in inflation rates during the coming periods, and therefore this is in the interest of Supporting individual economics.

Al-Sayegh pointed out that the past few days witnessed a clear decline in the demand for the dollar in the parallel market, which led to a decline in its exchange rate,  indicating that the decline in demand resulted from meeting the needs of financing foreign trade by the Central Bank, and

 therefore the dinar can gain a lot during the coming periods if it is filled. Most of the external financing needs of the private sector.

 In turn, the specialist in economic affairs, Dr. Ali Daadoush,  attributed controlling the exchange rate and reducing it in the parallel market, to the recent measures represented by the introduction of the Customs Data Automation Program (ASYCUDA) system, stressing that

 this important government measure is an essential part of reducing the rise in the price of the dollar in Parallel market.

 Dadoush also believes during his talk to “Al-Sabah” that “this decline will positively affect the level of per capita income,  and will also push people who hoard the dollar to give it up and sell it, which could contribute to the continued decline in the exchange rate, indicating at the same time that

 this decline in the currency Green prices will ultimately lead to a positive effect of controlling the prices of some goods necessary for the individual, while

 the rest of the goods, especially luxury goods, will remain high as a result of their connection to global prices, which are high mainly as a result of global inflation.   https://alsabaah.iq/94155-.html    

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