Iraq Economic News and Points to Ponder Monday AM 9-25-23

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Iraq Economic News and Points to Ponder Monday AM 9-22-23

Baghdad And Washington Are Negotiating About Linking The Iraqi Market And Currency To The Dollar

Posted On2023-09-25 By Sotaliraq    Baghdad and Washington are negotiating about linking the Iraqi market and currency to the dollar 20230924152721_original_45The Iraqi Foreign Minister, Dr. Fouad Hussein, confirmed that the provisions of the security agreement recently signed between Iraq and Iran have been fully implemented by the Iraqi side.

Hussein explained that the terms of the agreement were fully implemented by the Iraqi side, with regard to the return of militants present on the border between the two countries in the Kurdistan Region to refugee camps.

Regarding the political and security importance of this agreement, Hussein stressed that Iran’s cessation of bombing areas in the Kurdistan Region was a condition of the agreement, in exchange for removing militants from the border, which the federal government did in cooperation with the Kurdistan Regional Government, in an “important and successful” process for both sides. .

Regarding the possibility of signing a similar agreement with Turkey regarding the presence of Kurdistan Workers’ Party (PKK) militants, whom Ankara demands to be removed from the border, Hussein stated that Baghdad has always been in favor of dialogue, hoping for “intensive dialogue by the same means” with the Turkish side.

The Iraqi diplomat says that Ankara has not yet made room to discuss solutions to this problem in another way, far from the use of weapons and violence.

The Iraqi minister denied the existence of any agreement with Turkey to allow it to carry out repeated strikes on PKK militants in northern Iraq.

Regarding relations with the United States, Hussein said that the recent Iraqi-American discussions focused on bilateral relations and joint work in the fields of economy, energy, health and security, noting that the American-Iraqi relations are distinguished and have expanded to include various fields, after they were based on security and military cooperation, pointing out that Washington’s support for the Iraqi position in the international arena, and for economic reform and development in the country.

The Iraqi official revealed that among the important files raised at the level of dialogue with Washington is “the issue of linking the Iraqi market and currency to the dollar and the flows of American currency into the country,” noting that it is “a financial and banking issue related to the financial and economic situation of Iraq.”

Regarding whether security issues related to armed groups affiliated with Iran were among the files discussed, he said, “We did not discuss this issue, and all groups are subject to the Commander-in-Chief of the Armed Forces, that is, to the orders of the Iraqi Prime Minister.”

 Regarding the relations between Saudi Arabia and Iran, the spokesman indicated that the two countries have declared and strong relations, after the exchange of ambassadors and visits by the two foreign ministers, indicating that Baghdad played a role in the restoration of their relations, but the discussions between them are now direct.

Regarding relations with Kuwait, the spokesman explained that the Iraqi Prime Minister held an “important meeting” with his Kuwaiti counterpart, during which he stressed “Iraq’s full commitment to all Security Council resolutions, bilateral agreements, and respect for Kuwait’s sovereignty.” LINK

Dollar Exchange Rates During Monday’s Transactions In Iraqi Markets

Economy   09-25-2023 | 6,121 views   Alsumaria News – Economy  Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in Iraqi local markets for Monday, September 25, 2023.

Exchange rates decreased in banking shops in local markets in Baghdad, as the selling price reached 154,500 Iraqi dinars, while the purchasing price reached 154,000 dinars for every 100 dollars.

For more than 7 months, and specifically since the Central Bank began operating the electronic platform and the international financial transfer system ““SWIFT,” the dollar exchange rates in Iraq have not witnessed stability despite the attempts of the government and the Central Bank to control the exchange rate in the parallel (black) markets

The  Central Bank of Iraq decided earlier to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of buying the dollar from the Ministry of Finance  reached 1,300 dinars per dollar and selling it at (1,310) dinars per dollar to banks through the electronic platform, and it is sold for (1,320) dinars per dollar. Dollars from banks and non-banking financial institutions to the final beneficiary.  LINK

The Salary Crisis Raises Rates Of Domestic Violence In Kurdistan By 13 Percent

Posted On2023-09-25 By Sotaliraq   The researcher in social and academic affairs at Sulaymaniyah University, Rikut Abdul Rahman, said yesterday, Sunday, that the economic crisis has greatly affected the situation in the region. The Federal Council of Ministers decided during its thirty-eighth regular session, headed by Muhammad Shiaa Al-Sudani, on Sunday (September 17, 2023),

Lending the Kurdistan Regional Government more than two trillion dinars, provided that it is repaid in three installments of (700) billion dinars before taking its entitlement from the budget for the year 2024. Abdul Rahman says, “The economic crisis affected the cohesion of Kurdish society, led to an increase in divorce cases and increased rates of domestic violence.”

He believes that “due to the delay in disbursing salaries and the economic crisis, divorce cases have increased by 13% over previous years, and the rates of domestic violence have increased according to the statistics of various organizations, in addition to the presence of a reluctance to marry among Kurdish youth, since the requirements of life are high, and there is no financial liquidity.” Because of the salary crisis.”

The delay in salaries in the Kurdistan region and the strike of health personnel there caused the death of two people yesterday, Saturday (September 23, 2023), including a child no more than two months old. According to a local source, “A person named (K, M, A), whose profession is a worker, lives in the Shahrazur district of the Sulaymaniyah Governorate. He was involved in a traffic accident on the Sulaymaniyah-Zaryan road, and after suffering serious injuries, he was transferred to (Martyr Raouf Bek) Hospital in the Shahrazur district.”

He added: “But due to the strike of doctors and nurses from working hours in the aforementioned hospital, he was transported by a regular car to Shar Hospital in Sulaymaniyah, but he died on the way.”

He pointed out that “also due to the strike of health personnel from work in Sayed Sadiq district, a two-month-old child died.”

On Wednesday (September 20, 2023), the Prime Minister of the Kurdistan Region, Masrour Barzani, directed the distribution of July salaries without delay upon the arrival of the first batch of Baghdad’s loan amounting to 700 billion dinars.

On Monday (September 18, 2023), a source in the Ministry of Finance of the Kurdistan Regional Government revealed the mechanism for distributing employee salaries in the region.

The source said, “The federal government will finance the salaries of employees in the Kurdistan region in three installments in the amount of two trillion and 100 billion dinars, and in the amount of 700 billion dinars for each month.”

He added, “The federal government will send the salaries for September after releasing the salaries of employees in other Iraqi provinces, but employees in the region have not received their salaries for July and August yet.”

The source indicated, “After receiving the amount of 700 billion dinars, the Ministry of Finance will distribute one salary, which is for the month of July, and next month it will distribute the salary for the month of August, and then the process will continue successively.” LINK

Despite The Abundance Of Cash Reserves, Why Does The Iraqi Government Not Pay Its Internal Debts?

Posted On2023-09-25 By Sotaliraq  

[size=45]Iraq has huge cash reserves from oil revenues exceeding 113 billion dollars, at a time when it suffers from internal debts estimated at 70 trillion, which raises many questions about the reasons for the government not paying these debts, getting rid of the interest burdens owed on them, and investing the money to provide new resources.