Iraq Economic News and Points to Ponder Tuesday AM 9-26-23


Iraq Economic News and Points to Ponder Tuesday AM 9-26-23

Iraq: The Dinar Instead Of The Dollar In Internal Transactions

Posted On2023-09-25 By Sotaliraq   The Governor of the Central Bank of Iraq, Ali Al-Alaq, announced on Sunday that Iraq will limit all internal commercial and other transactions to its currency, the dinar, instead of the dollar, starting next year.

Al-Alaq said, according to what was reported by the News Agency (INA): “The coming year will witness the restriction of internal commercial and other transactions to the Iraqi dinar instead of the dollar, except for those delivered to travelers.”

A few days ago, a senior official at the US Treasury Department told Reuters that the Central Bank of Iraq must address the ongoing risks resulting from the misuse of the dollar in Iraqi commercial banks, to avoid imposing new punitive measures targeting the financial sector in the country, pointing to acts of fraud, money laundering, and Iran’s evasion of sanctions. .

In July, the United States prevented 14 Iraqi banks from conducting transactions in dollars as part of a broader campaign against the illegal use of the American currency.

The official, who spoke on condition of anonymity, said that there are still other Iraqi banks operating with risks that “must be addressed,” despite the campaign.

Al-Alaq indicated, during his meeting on Sunday with the heads of the councils and authorized directors of the licensed banks, that the entry of most merchants into the official transfer channels and the provision of the dollar at a price of (1,320) dinars was a direct reason for controlling the general level of prices and decreasing the inflation rate, he said.

During the meeting, Al-Alaq also announced that the bank will dispense with external transfers “next year,” and that banks licensed in Iraq will rely on correspondent banks in external transfer operations.

This came after “an agreement between the Central Bank of Iraq and the US Federal Bank, similar to countries around the world, where central banks do not perform executive duties, and their role is focused on supervision and control,” according to “Iaa.”   LINK

Al-Sudani: Exchange Rate Fluctuations Are A Battle Between The State And A Group That Lives On The Dollar

 Policy  09-26-2023 | 1,179 views   Alsumaria News – Politics    The Prime Minister, Muhammad Shiaa Al-Sudani, confirmed today, Tuesday, that exchange rate fluctuations are a battle between the state that wants to stabilize correct transactions, and a group that used to live on the dollar, while specifying his position on the presence of the international coalition.

Al-Sudani said, in an interview with The National newspaper, followed by Al-Sumaria News, that “political disputes in Iraq are within their natural context, and resorting to the Federal Court is a healthy sign for the political system,” indicating that “All political forces today are talking about providing services and developing the economy, after… “The talk was about sectarianism, ethnicity, and components.”

He added: “We presented a vision for partnerships with countries in the region along the path of development, and this is the first time that a project has been presented that calls for everyone’s partnership,” stressing: “When the security situation inIraqWith controlISISThe entire region was affected, and millions migrated, so stability must be maintainedIraqAl –

Sudani stated, “More than 300 registered parties will run in the local elections, and this is a healthy indicator of stability,” pointing out that “the Social Protection Law addresses multidimensional poverty, and $4 billion has been allocated in 2023 to address poverty, and there are cash subsidies for school students.” And colleges and children of poor families to prevent the inheritance of poverty within the family.”

The Prime Minister stated that “the ration card is distributed in a specific quality to all citizens, and there is a card of a higher quality distributed among those included in the social protection network,” pointing out that “the treatments included in the three-year budget for the situation of poverty, Enough to end poverty rates inIraqradically within five years.”

Al-Sudani stressed: “We have no alternative but to support the private sector, and there is no session without it.”  Ministerial Council for Economy of a decision in favor of this sector,” pointing out that “there is a war on corruption, and we have included the recovery of funds and wanted persons, within a systematic anti-corruption policy.”

He stated, “The reforms in tax, customs, and electronic payment all establish an environment that attracts the private sector and facilitates its work,” adding “The price of the dollar is related to the special reforms of the banking and financial sector, and the government has begun implementing the reforms, despite their social cost.”

Al-Sudani stated that “exchange rate fluctuations are a battle between the state that wants to stabilize correct transactions, and a group that used to live on the dollar,” explaining that “the outlets Illegitimate goods enter, and no taxes are paid, and this is money that goes to the parallel price.”

He pointed out, “Private banks take the dollar from the central bank and sell it in the parallel market, and these will be subject to sanctions,” adding, “IraqHe was the first to exercise his pioneering role in bringing points of view closer together, and he succeeded in doing so, and he continues to do so in the region.”

Al-Sudani continued, “The development road project is the best and shortest in its path, and the lowest in transportation costs among the projects proposed in the region, and achieves the purpose of trade between Asia and Europe.”

He pointed out, “The presence of Syria, with its political system and people, is better than an unknown alternative that might plunge the region into a second war with ISIS, and any security confusion in Syria will unleash terrorist monsters and threaten security in Iraq and the region.”

Al-Sudani reiterated his assertion: “ISIS today does not represent a threat to the Iraqi state, and there is no longer a need for the presence of the international coalition, which was formed to confront ISIS,” indicating that “the joint committee will meet during this month with the American side, and we emphasize the bilateral relationship with the United States for security cooperation.” We are open in all fields.”   LINK

Al-Sudani Identifies The Parties Insisting On The Rise In The Price Of The Dollar

Economy |  09/25/2023   Mawazine News – Baghdad   Member of the House of Representatives, Muhammad Sadoun Al-Sudani, today, Monday, identified the parties insisting on a rise in the exchange rate of the dollar in Iraqi markets, highlighting the difference between the Al-Kadhimi and Sudanese governments.

Al-Sudani said, in an interview followed by Mawazine News, that “there is a difference regarding the file of the exchange rate of the dollar against the dinar between the previous and the current government,” indicating that “it was the Al-Kadhimi government that worked to raise the exchange rate, while the Sudanese worked to reduce these prices.” .

He added, “There are local internal agendas, as well as international forces, that insist on the dollar remaining at this high level,” pointing out that “the dollar is a major project whose goal is to force the government to follow a path desired by these international forces.”

The member of the House of Representatives explained, “The current government has fought a lot in several areas, especially the dollar, as well as the issue of importing gas from Iran, to try to prevent Iraq from giving money to the Iranian government, which the American Federal Bank stands behind.”

The series of rising dollar exchange rates in Iraqi markets is still continuing, amid conflicting opinions about the real reasons that led to the exhaustion of the local currency again, especially as it began to rise to levels that threaten the country’s economy with great danger.

The Outlets Announce The Seizure Of More Than 1.3 Billion Dinars Due To Fraudulent Tax Receipts

Money  and business  Economy News _ Baghdad   Today, Tuesday, the Border Ports Authority announced the seizure of more than 1.3 billion dinars in a fraudulent tax receipts operation.

The authority said in an interview with the Iraqi News Agency, followed by Al-Eqtisad News, that “in coordination with the Presidency of the Basra Federal Court of Appeal, it seized a fraudulent operation in tax receipts that resulted in a waste of public money in the amount of 1,330,207,000 dinars,”

 noting that “based on In line with the government program that emphasized combating the corruption pandemic, and based on the supervisory and audit role of the Border Ports Authority, the Authority’s cadres, with direct follow-up by the head of the Authority, Major General Dr. Omar Adnan Al-Waeli, were able to detect tampering and forgery in revenue receipts and tax deposits in the tax unit of the northern port of Umm Qasr. What is the reason? A waste of public money.”

She explained that “the process of detecting forgery was carried out by matching and auditing the receipts collected by the tax unit at the border port with the tax receipts sent by it to the headquarters of the General Authority for Taxes, and after boycotting and comparing them through a joint committee and in direct coordination with the head of the General Authority for Taxes, it was proven.

” The crime of forgery that resulted in a huge waste of public money in the amount of one billion three hundred and thirty million two hundred and seven thousand dinars, with the statement that this amount is for samples of companies and for a period of three months only,” indicating that “the method was presented to the Presidency of the Basra Federal Court of Appeal, which in turn referred the file to the Court of Appeal.”

The third Basra investigation to conduct a fundamental investigation into the importance and seriousness of the crime, according to the spatial jurisdiction, and work is underway under the supervision of the judiciary to audit all companies retroactively for the previous months and years through a committee from the Border Ports Authority and the General Tax Authority.”

The authority stressed that “these measures by the Border Ports Authority come to prevent anyone from harming the state’s revenues and to thwart any manipulation or forgery carried out by weak-minded people, and all criminals will be punished according to the law.”

Views 45    09/26/2023 –

Points to Ponder on Endurance:

The conditions of conquest are always easy — We have but to toil awhile  – endure a while – believe always and never turn back — Simms

I hold a doctrine – to which I owe not much – indeed – but all the little I ever had – namely – that with ordinary talent  and extraordinary perseverance – all things are attainable — 
T F Buxton

The nerve that never relaxes – the eye that never blenches – the  thought that never wanders — these are the masters of victory — 

Hasten slowly – and  without losing heart – put your work twenty  times upon the  anvil —

Perseverance gives power to weakness – and opens to poverty the  world’s wealth — It spreads fertility over the barren landscape – and bids the  choicest fruits and flowers spring  up and  flourish  in the desert abode off thorns and briers —
 S G Goodrich

Persistent people begin their success where others end  in failure —
 Edward Eggleston