Iraq Economic News and Points to Ponder Monday Evening 10-16-23

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Iraq Economic News and Points to Ponder Monday Evening 10-16-23

Al-Sudani Directs To Adopt The Official Exchange Rate For The Central Bank’s Dealings With Clubs

Information / Baghdad..Prime Minister Muhammad Shiaa Al-Sudani directed the adoption of the official exchange rate in the Central Bank’s dealings with Iraqi clubs.

Advisor to the Prime Minister for Youth and Sports Affairs, Khaled Kabayan, said in a statement received by the Al-Ma’louma Agency, “Prime Minister Muhammad Shia Al-Sudani directed the Central Bank of Iraq to disburse dollars to sports clubs at the official exchange rate in order to pay the dues of foreign players and coaches who play in Iraq.”

He stated, “This approval occurred after some clubs submitted an official request to the Prime Minister, and the clubs’ request to exchange the dollar was officially approved in accordance with the official exchange mechanism in the Central Bank of Iraq.”

It is noteworthy that Iraqi clubs pay the dues of professional players in dollars.   LINK

Dollar Conflicts Confuse The Markets And A Parliamentary Move To Host The Central Bank Governor

Posted On2023-10-16 By Sotaliraq   Baghdad / Hussein Hatem   Conflicts in the dollar exchange rates still play a major role in Iraqi markets, despite the Council of Ministers’ approval of adjusting the dollar exchange rate to the equivalent of 1,300 dinars about 10 months ago.

The restriction of cash transfers by the American side on the one hand, and the lack of control over the dollar prices in the parallel market on the other hand, led to an increase in exchange rates, as the dollar exchange rates exceeded the 160,000 barrier during the last week.

While the House of Representatives intends to host the Governor of the Central Bank and the concerned authorities; To determine the causes of high exchange rates and develop a mechanism to control them.

A member of the Parliamentary Finance Committee, Moin Al-Kadhimi, says, “The American side restricted cash transfers and the internal situation of the currency as a result of the sanctions.”

He added, “Remittances are issued in the range of 70% to 80% of the Iraqi market’s needs, and are provided through the currency window.”

Al-Kadhimi pointed out that “the merchant who needs to import is issued a transfer in dollars from the countries from which he imports, and an Iraqi dinar is delivered in exchange for it,” indicating that “the dinar is used by the Ministry of Finance to finance employee salaries and the needs of departments and ministries.”

A member of the Finance Committee pointed out that, “There is 25% of the Iraqi market’s needs, which are provided through sources that have nothing to do with the currency window; Because of the restrictions issued by the US Federal Reserve and its prevention of Iraqi merchants from dealing with Syria, Iran and Lebanon.”

Al-Kadhimi continued, “These reasons are what push merchants to obtain the dollar from the black market, and thus the exchange rate of the dollar against the dinar rises in the Iraqi local markets.”[/size]

The fluctuation of the dollar exchange rates did not change the reality of the government’s procedures, which remained powerless in the face of it. Prime Minister Muhammad Shiaa Al-Sudani admitted during a previous television interview that millions of dollars are smuggled out of the country on a daily basis with forged invoices, indicating that the matter was discovered after everyone was obligated to make transfers via the platform. “SWIFT” electronic system that allows the US Central Bank to monitor and follow the path of remittances and imported goods.

For his part, Member of the House of Representatives, Amir Al-Mamouri, says, “The measures of the Central Bank of Iraq regarding the rise in the exchange rates of the dollar against the Iraqi dinar were not at the required level.”

Al-Mamouri added, “Speculation in dollar prices is still continuing despite setting an official price for the dollar in the 2023 budget, at a value of 1,300 dinars per dollar.”

The member of the House of Representatives indicated, “There is a parliamentary move to host the Governor of the Central Bank and the concerned authorities to find out the reasons for the rise in the dollar exchange rates and to develop a mechanism to stop the rise.”

In turn, economic affairs researcher Diaa Al-Mohsen says, “Sales from the currency sale window since the beginning of this year are no less than $200 million per day.”

Al-Mohsen added, “The dollar allocated for travelers goes to the black market through banking companies,” noting that “250 thousand dollars a month are the profits of banking companies through exploiting the money allocated for travel.”

The economic affairs researcher pointed out that “most of the central bank’s departments have nothing to do with the economy and financial management,” stressing that “most foreign currency smuggling operations take place through the currency selling window.” Last June, the House of Representatives approved the 2023 budget, amounting to 198.9 trillion dinars, as it includes record spending on an increasing government wage bill and development projects aimed at improving services and rebuilding infrastructure destroyed by neglect and war, according to Reuters.

The budget is based on an oil price of $70 per barrel and expectations of exporting 3.5 million barrels of oil per day, including 400,000 barrels per day from the Kurdistan region, while the exchange rate for oil revenues in US dollars is set at 1,300 dinars to the dollar. This will remain in effect until 2025, but it will be subject to adjustment. It includes the price of oil used by Iraq in light of its almost complete dependence on oil revenues. LINK

The Central Bank Denies “Information” Issuing A New Category Of Local Currency

Information / Baghdad..    The Central Bank of Iraq denied, today, Monday, that the bank has any intention to issue a new currency or a small or large denomination during the current period.

Follow the “Al-Ma’louma” channel on Telegram.. News that does not require documentation..

A member of the Board of Directors of the Central Bank of Iraq, Ahmed Barihi, said in a statement to “Al-Ma’louma” that “talk about issuing a new currency by the Central Bank of Iraq is not true at the present time.”

Berihi added, “If a new denomination of currency is issued, whether small or large, it will not affect the exchange rate of the dollar against the dinar, but rather it will only serve and facilitate transactions in the simple market.”

A member of the Board of Directors of the Central Bank of Iraq pointed out that “the Iraqi currency is stable and the existing denominations are sufficient.”

A member of the Parliamentary Finance Committee, Representative Nermin Maarouf, announced in press statements that the committee will discuss with the Governor of the Central Bank the feasibility and motives behind taking the decision to issue the 20,000 dinars denomination, the financial value of this denomination and other details related to its expected issuance.   LINK

In The Al-Sumaria Bulletin Shortly… Budget And Salary Disputes And Challenges Of The “Reform Plan”

 Special Sumerian   2023-10-16 | 816 views   Al-Sudani directs to simplify banking procedures… and talks about the challenges facing the reform plans.

The region’s delegation to Baghdad to discuss the budget and salaries.. Barzani calls on his representatives to cooperate with the Finance Committee in Parliament.

  The Commission approves the final voter register forms for polling stations…and reveals the tally of excluded candidates.

  The Council of Arab Ministers of Justice demands an end to the Israeli bombing of Gaza… and calls for finding a solution to the Palestinian issue.  LINK

The Dinar Is Recovering Against The Dollar In Baghdad Markets And Money Exchanges

Economy |Today   Baghdad today – Baghdad    Today, Monday (October 16, 2023), the exchange rates of the US dollar witnessed a decline against the Iraqi dinar in the markets and exchange offices of the capital, Baghdad.

The “Baghdad Today” correspondent said, “Selling prices recorded today were 157,600 Iraqi dinars for every 100 US dollars, while purchasing prices recorded 155,600 Iraqi dinars for every 100 US dollars in markets and money exchanges in Baghdad.”

The selling price for the dollar yesterday, Sunday (October 15, 2023), was 160,750 dinars per 100 dollars, while the purchase price reached 158,750 dinars per 100 dollars in Baghdad   LINK

Points to Ponder From”Daily Reflections For Highly Effective People” By Stephen Covey:

You can decide within yourself how circumstances will affect you — Between what happens to you or the stimulus – and your response to it — is your FREEDOM or POWER to CHOOSE that response — p. 69

The word proactive means more than merely taking initiative — It means that as human beings – we are responsible for our own lives — Our behavior is a function of our decisions – not our conditions — We can subordinate feelings to values — We have the initiative and the responsibility to make things happen — p. 71

If you’re proactive — you don’t have to wait for circumstances or other people to create perspective expanding experiences — You can consciously create your own — p. 131

The law of the harvest governs: we will always reap what we sow — no more – no less — The law of justice is immutable – and the closer we align ourselves with correct principles – the better our judgment will be about how the world operates and the more accurate our paradigms — our maps of the territory — will be — p. 305

When two people in a marriage are more concerned about getting the golden eggs , the benefits, than they are in preserving the relationship that makes them possible — they often become insensitive and inconsiderate – neglecting the little kindnesses and courtesies so important to a deep relationship — They begin to use control levers to manipulate each other – to focus on their own “wants” – to justify their own position and look for evidence to show the wrongness of the other person — The love – the richness – the softness and spontaneity begin to deteriorate — The goose gets sicker day by day — p. 55

You can buy people’s hands – but you can’t buy their hearts — Their hearts are where their enthusiasm – their loyalty is — You can buy their backs – but you can’t buy their brains — that’s where their creativity is — their ingenuity – their resourcefulness — p. 58

Marilyn Ferguson observed — “No one can persuade another to change — Each of us guards a gate of change that can only be opened from the inside — We cannot open the gate of another – either by  argument or by emotional appeal”  If you decide to open your “gate of change” to really understand and live the principle embodied in the Seven Habits – your growth will be evolutionary – but the net effect will be revolutionary — p. 60-61

Many people seem to think that success in one area can compensate for failure in other areas of life — But can it  really? Perhaps it can for a limited  time in some areas — But can success in your profession  compensate for a broken marriage – ruined health – or weakness  in  personal character? — true effectiveness requires balance — p. 161