Friday Afternoon Iraq Economic News Highlights 7-28-23


Parliamentary Finance: Working With The Budget Law Will Contribute To An Increase In The Value Of The Dinar

Economy  12:28 – 2023-07-28  The Parliamentary Finance Committee confirmed that there is no official justification for the rise in the value of the dollar against the dinar, while attributing the occurrence of the problem to the lack of dollar supply and rumors prevailing in the market. 

Committee member Dr. Nermin Maarouf said that the lack of dollar supply by the Central Bank and the rumors circulating in the market and social networking sites affected the decline in the value of the Iraqi dinar against the US dollar, but in conclusion there is no official decision to raise the value of the dollar against the dinar, suggesting the rise in the value of the dinar. In the near future.

The representative of the National Union parliamentary bloc added that the Iraqi government is forced to put the dollar in its possession from the sale of oil to the market and replace it with dinars, in order to distribute salaries and complete projects, which leads to an increase in the supply of the dollar in the market and thus a decrease in its value, noting that the entry into force of the budget law He, too, will contribute to the rise in the value of the dinar against the dollar, because according to the Federal Budget Law, the price of one hundred dollars has been set at one hundred and thirty thousand dinars.

Finance Minister Talking About The Tripartite Budget

Policy   2023/07/28 Number of readings: 264   Baghdad – Iraq today:  Finance Minister Taif Sami Muhammad stressed the importance of completing the instructions for implementing the tripartite budget.

A statement by the ministry stated, “The Minister of Finance, Taif Sami Muhammad, stressed the importance of expediting the procedures for reviewing the instructions for implementing the federal general budget for the years 2023, 2024 and 2025 No. 13 of 2023, which was recently approved by Parliament, by redoubling coordination and cooperation efforts with all relevant agencies and institutions.”

and emphasizing that support reaches those who deserve it, in addition to moving towards advancing sustainable development. Facing international and local economic challenges.

And she urged the Minister of Finance, according to the statement, “that the Ministry of Planning issues the necessary controls to facilitate the task of listing projects of an investment nature, as well as all listing requirements. It is noteworthy that the technical coordination meetings It has been continuing since the beginning of this week between the Ministry and the Instructions Implementation Committee, with the participation of representatives of all concerned authorities.  LINK

On Charges Of Smuggling The Dollar.. Referring The Owners Of Exchange Offices To The Judiciary In Erbil

2023.07.28 – Baghdad – Nas    Kurdish media reported, on Friday, that the owners of seven exchange offices were referred to court on charges of smuggling dollars abroad, and their offices were closed.    

According to reports based on security sources in the market, followed by “NAS” (July 28, 2023), “the owners of these offices submitted statements to the court, and they will be interrogated by the Erbil security judge, and a decision will be taken regarding them.” 

The Media Authority Issues Directives To Support The National Economy And The Dinar

July 27, 2023  Baghdad/Al-Hadath Obelisk: The Media and Communications Authority issued directives to media institutions to support the national economy and the Iraqi dinar.

The Commission stated, according to a document addressed to media institutions: Based on the powers vested in us in regulating the media, communications and information technology sectors under Order (65) of 2004 in force, and in support of the national economy and preventing harm to the public and private interests of citizens, the Commission directs the necessity for the media to refrain from publishing any news Misleading or inaccurate about the national currency and the economic sector according to the Media Broadcasting Rules Regulation issued by the Media and Communications Authority (Part Two / Article 3).

Insulting the reputation of persons or companies or harming the national economy and affecting public health and the environment.

And she stressed that, otherwise, the media bodies shall bear legal accountability in accordance with the terms of the licensing contract and the powers vested in the Media and Communications Commission and the laws in force.

Report: 75% Of Goods Enter Iraq At The Official Price Of The Dollar, And Stability Is Expected

[ltr]2023.07.28 – 09:51  Baghdad – Nas  The process of increasing the exchange rate in the parallel market constituted a new shock to the financial and monetary policies, after they made great efforts during the past periods with the aim of aborting the rise of the dollar, whose exchange exceeded the limits of 155 thousand dinars per 100 dollars in the middle of the week, which was considered by specialists in economic affairs. A wake-up call. 

Despite the continuous rises in the exchange rate, however, specialists in the economic affairs have underestimated the risks of these rises on the local market, stressing in a statement to the official newspaper, followed by “NAS” on Friday (July 28, 2023), that “75% of the materials and commodities in the markets enter Iraq.” At the official rate set by the Central Bank, and that merchants make their foreign transfers according to that price, while 25% of Iraqi trade is affected by the parallel exchange rate.   

The efforts of the fiscal and monetary policies to undermine the dollar were matched by the efforts of the legislative and executive authorities with the aim of limiting the rise in the parallel exchange rate. While Prime Minister Muhammad Shiaa al-Sudani discussed, with the Governor of the Central Bank, Ali Al-Alaq, the measures taken to stabilize the currency in the local market,

and discussed the facilities provided by the Central Bank, which includes allowing small merchants and importing individuals to finance their imports without the need to establish a company, the Parliamentary Finance Committee reviewed with Al-Alaq the means to achieve monetary stability and control prices.

In contrast to the “cautious optimism” shown by a number of specialists regarding the effects of the exchange rate rise, others see the possibility of economic indicators, which they described as “painful”, represented by entering the local market in the short term in a state of stagnation and high inflation rates. 

The economic researcher, Nabil Jabbar Al-Tamimi, believes during his interview with the official newspaper that “the changes and fluctuations that occur in the exchange rates of the dollar may have a limited impact on the general price rates, because 75% of the materials and commodities in the markets enter Iraq at the official price set by the Central Bank.”

And that merchants make their foreign transfers according to the official rate, while 25% of Iraqi trade is affected by the parallel exchange rate.    

Despite the fluctuations taking place, however, Al-Tamimi believes that the market and prices will stabilize as a result of the change in the nature of foreign remittances. restrictions, and this matter represents a kind of facilities that must be provided to reduce pressure on the parallel market.    

Al-Tamimi also confirmed, “The Central Bank seeks to increase the amounts sold in cash, to absorb the rise by increasing the supply, as this can contribute to the return of stability in the exchange rate, indicating that the measures taken are correct and will lead to undermining the dollar despite its rise in the parallel market.”    

In turn, the researcher on Iraqi and international economic affairs, Dr. Ali Dadoush, attributed in a press interview the reasons for the price jumps of the green currency to the shortage in the supply of cash dollars compared to the volume of demand, which led to a rise in the exchange rate in the parallel market that finances foreign trade with the penalized countries.    

Daadush pointed out that the reasons that led to the exchange rate rising again are many, but the most prominent of them is the speculation on which most transfer and exchange companies live, as these transfers take two directions.    

The economic researcher believes that solutions in the short term may not be within reach, as most of the reasons that led to the dollar’srise are external, especially after 14 Iraqi banks were punished by the US Federal Reserve, pointing out that the most effective solutions to confront the “dollar dominance” lie in Activating and operating factories and laboratories to produce goods that are imported from countries banned from the dollar,

and directing the government towards activating institutions and companies in the public and private sectors, operating and managing industries and working to increase their production, stressing that these steps will lead to eliminating the gap between the official and parallel prices, as they will produce imported goods that are Covering their cash dollar amounts. 

Warnings of imposing US obstacles to thwart the government’s efforts to uncover corruption files

Today 11:06  Information / Anbar .. The leader of the Unified Anbar Alliance, Abdullah Ahmed Al-Jughaifi, warned, on Friday, of obstacles imposed by the US administration to thwart the central government’s efforts to uncover corruption files and overthrow the corrupt.

Al-Jughaifi said in a statement to Al-Maalouma agency that “the US administration is involved in placing obstacles to limit the successes of the government of Muhammad Shia’a Al-Suadni by imposing sanctions on 14 banks under the pretext that they cooperate with Iran, which is subject to economic sanctions in hard currency (the dollar).”

He added, “America followed this policy in changing and overthrowing a number of previous governments by inflaming the street and carrying out demonstrations to confuse the political and security situation in the country for political purposes.”

The leader of the Anbar Alliance explained, “Al-Sudani’s opening of corruption files against senior officials in the current and former central government disturbed the US administration, which prompted it to use this card as a pressure to obtain its efforts aimed at preserving and defending its supporters to achieve its goals,” stressing that “the government The Sudanese are elected by the people and cannot be overthrown in this way.”

It is noteworthy that the US Treasury announced, a week ago, the closure of 14 Iraqi banks under the pretext of dealing with Iran in dollars. LINK

Deputy: The Region Did Not Abide By All The Points Of The Agreement.. Oil Smuggling Continues

2023-07-27 | Source: Alsumaria News  1,976 views  A member of the Parliamentary Finance Committee, Representative Moeen Al-Kazemi, considered today, Thursday, that the regional government did not adhere to all points of the agreement regarding the export of oil, while indicating that smuggling is still continuing.

Al-Kazemi said, during his speech to the program (Alanna), which is broadcast by Alsumaria TV, that “the region is not committed to the points of the political agreement regarding the export of oil, given that Turkey closed the roads to selling it, and compensation will be from the south, and if the central government is ready to receive the 400,000 barrels from the region, it must The region is committed to producing only and delivering it to the center.

He added, “There is another issue that has not been controlled so far, which is the smuggling of oil by tankers, and it is continuing by the region, and the government is not satisfied, and everything that was agreed upon has not been fully implemented.”

 He continued, “The differences between the two ruling parties in the region have been going on for a long time, until they reached the National Union threatening to secede fromKurdistanand directly related toBaghdadto obtain his salary dues, and this issue led to real problems,” stressing that “the two parties must reach a real agreement so that there is an understanding between the region and the center.”

He pointed out that “the federal government must pay the dues of all governorates, including the region, provided that it adheres to all agreements concluded.” Which was approved within the budget law.”

Regarding the Iraqi economy, Al-Kadhimi affirmed, “Its problems can only be solved by diversifying its revenues and relying on the internal industry,” noting that “the government and political blocs should think seriously about relying on self-equipment instead of importing Consumer goods that cost the state a lot without interest.

And he continued, “Until now, the financial allocations to the ministries have not been released despite the approval that took place more than a month ago,” explaining that “the government was late in disbursing the allocations because it submitted appeals to the Federal Court on 12 articles out of 78 in the budget and on the government and Ministry of Finance Issuing instructions for implementing the budget.”

He pointed out that “the Ministry of Finance is ready to distribute the allocations, but the delay is a governmental matter, and I do not think that it will be able to spend 199 trillion, and this thing is good so that we do not reach a large financial deficit.

” And monitoring the business by specialists to control the money spent on it,” stressing that “the Sudanese government’s openness to European countries andChinaThe current stability that the country is witnessing through political understanding and approving the budget does not please the United States, and it wants to impose its prestige again and move many files to return toIraq”.