Iraqi News Highlights and Points to Ponder Monday AM 11-6-23


Iraqi News Highlights and Points to Ponder Monday AM 11-6-23

A Representative Answers “Baghdad Today”: Why Did Government Measures Fail Against The Green Currency?

Economy |Baghdad today – Baghdad  Independent MP Hadi Al-Salami confirmed today, Sunday (November 5, 2023), the failure of government measures to confront the “dollar mafias,” while renewing the demand to change the governor of the Central Bank, Ali Al-Alaq.

Al-Salami told “Baghdad Today” that “the dollar mafias that control the parallel market are still manipulating exchange rates despite all government measures, and this confirms the failure of those measures, as they are patchwork measures and do not contain any real reform measure.”


He added, “We are still demanding and working according to the constitutional powers granted to us in order to change the Governor of the Central Bank, Ali Al-Alaq, as he failed in the task of controlling the dollar exchange rate. Indeed, the dollar is constantly rising and the bank has lost control of that.”

Today, Sunday (November 5, 2023), the dollar exchange rates witnessed a significant jump, exceeding 163 per hundred dollars in local markets in the capital, Baghdad.

The “Baghdad Today” correspondent said, “The selling price of the dollar in exchange offices in Baghdad today reached 164,250 dinars for every 100 dollars.”

He added, “The purchase price reached 162,250 dinars for every 100 dollars.”

On (November 2, 2023), a member of the Parliamentary Finance Committee, Jamal Kujar, revealed that a group of mafias and influential people controlled the dollar exchange rate through a “WhatsApp group.”

Cougar indicated in a televised interview followed by “Baghdad Today” that “there is a (group) on WhatsApp run by a group of influential people or mafias who control the exchange rate of the dollar in the parallel market,” calling on the security services from the intelligence and national security to intervene and follow up on the matter.”

A member of the Parliamentary Finance Committee confirmed that “personalities working in the stock exchanges referred to this (group) and demanded that the matter be conveyed to the relevant authorities to take urgent measures.”

On (last October 8), the expert in banking affairs, Ahmed Al-Tamimi, criticized the Iraqi Banks Association for not taking any position on what some private banks are working on to acquire the dollar illegally .

Al-Tamimi told “Baghdad Today”, “Some private banks are working to illegally seize the dollar. They take the share of the traveling citizen and do not give it to him. Also, some banks refuse to hand over to the citizens the remittances that reach them in dollars, and all of this violates the law.”

The expert in banking affairs stated that “the Iraqi Banks Association bears a large part of the illegal behavior that is happening in some private banks, especially since it has not yet taken any role from those banks. Rather, it remains silent and tries to evade its role in following up on the work of those banks.” “.

Meanwhile, economic expert Sarhank Hussein earlier accused the Association of Private Banks of being behind the rise in dollar exchange rates in the parallel (black) markets .

Hussein told “Baghdad Today”, “The process of buying the dollar with cards by merchants and giving it to private banks is behind the rise in the dollar exchange rate again.”   LINK

Exceeding 165.. A Significant Increase In Dollar Prices In Iraq

MONDAY, 11-06-2023, KARAR AL-ASSADI  Dollar prices rose today, Monday, in the markets of Baghdad and the rest of the country’s governorates, with the opening of the stock market.

The dollar exchange rates on the central Kifah and Harithiya stock exchanges in Baghdad recorded $164,250 against $100, while the prices yesterday, Sunday, were 163.200 dinars against $100.

Dollar prices rose in exchange shops in local markets in Baghdad, with the selling price reaching 165,250 Iraqi dinars, while the purchasing price reached 163,250 dinars for every 100 dollars.

A Jump In Dollar Exchange Rates In Iraqi Markets

Economy  2023-11-06 | 19,596 views  Alsumaria News – Economy  Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in Iraqi local markets for Monday, November 6, 2023.

The selling prices of the dollar in local markets in the capital, Baghdad, recorded 165,000 per 100 dollars, while purchasing prices reached 164,500 per 100 dollars.

For more than 8 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 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 Dollar Continues To Storm Iraqi Markets, And Many Solutions Are In Vain

Economy  2023/11/05 Number of readings : 216  Baghdad – Iraq Today:   With the return of the rise in dollar prices, popular dissatisfaction and anger are renewed, especially by poor citizens, after the possibility of a stifling economic crisis, which will cause great harm to their miserable living conditions.

The economic expert, Bassem Antoine, said in a press interview, “Economic reforms, in light of the rise in the price of the dollar against the Iraqi dinar, need a long time to complete what the current government seeks, by untying the dollar knot and ending the major crisis.”

He added, “Iraq needs to develop the economy in a way that is different from before, especially with regard to the agricultural, commercial, and tourism sectors,” noting that “activating these sectors will contribute greatly to reducing poverty and unemployment rates, and increase the strength of the country’s economy, which will strengthen the value of the Iraqi dinar.” .  LINK

“By 86%”… An Increase In Currency Auction Transfers From The Dollar Outside Iraq

2023-11-06 Shafaq News/ External remittances increased at the Central Bank of Iraq auction, today, Monday, by 86% at the expense of cash sales, to reach 199 million dollars.

Shafaq News Agency correspondent said, “Today during its auction for buying and selling the US dollar, the Central Bank sold 227 million 447 thousand and 755 dollars, which the bank covered at a base exchange rate of 1,305 dinars, per dollar for documentary credits and international settlements for electronic cards, and at a price of 1,310 dinars per dollar for remittances.” External, at the same price in cash.

Our correspondent added that most of the bank’s dollar sales went to strengthening balances abroad in the form of (remittances, credits), which amounted to 199 million 757 thousand and 755 dollars, an increase of 86%, compared to cash sales amounting to 27 million 690 thousand dollars.

Our correspondent indicated that the number of banks that purchased cash dollars reached 4 banks, while the number of banks that responded to requests to enhance balances abroad reached 22 banks, while the total number of exchange and brokerage companies participating in the auction was 48 companies.  LINK

Restricting Cash Reserves

Economical  11/06/2023  Yasser Al-Metwally   In order to distinguish between the advantages (benefits) and disadvantages (risks) of the cash reserve, we must understand the simplified definition of it, which means (all the foreign currencies that countries own and keep in their central banks).

Among the benefits of these currencies (cash reserves in foreign currency) is using them to finance their foreign trade first, and then to pay their debts second, and also more importantly, maintaining the stability of their local currencies, and third, dealing with financial crises and monetary inflation.

As for its risks, it is determined by restricting it (restricting its use by the countries that own it (i.e., exporting it).

We offer this simplified definition to those who do not know the importance of monetary reserves and their impact on economies, especially those who confuse monetary policy with useless statements, and of course those who are not specialists in economics and its risks.

There is no doubt that the dollar is still the strongest currency in the world despite all attempts to find a competitive alternative to it. The United States of America accounts for nearly a quarter of the global gross domestic product, which makes it the largest and strongest economic power in the world.

What adds to this strength is that it has the largest financial institutions and banks in the world, and that most of the global trade financing between countries is denominated in dollars, especially oil wealth, and dollar transactions constitute approximately 70 percent compared to other currencies combined.

Perhaps the weapon of sanctions that America imposes on countries that oppose its policy is through restricting its monetary reserve and not allowing it to use it. The two closest examples of this are Russia because of its war with Ukraine and before that Iran because of the failure to resolve the nuclear file between them. Notice the size of the impact of restricting the use of its foreign exchange reserve. What an impact? In their economic problems, especially the collapse of the local currency of the two countries, albeit at different rates.

Here, most of the countries that were dissatisfied with the strict American policy of using the dollar as a weapon to undermine their economies turned to the BRICS group in the hope that it would be able to mitigate the effects of the dollar. Returning to Russia and Iran, the reason for their resistance to the dollar sanctions is that they possess solid economic bases that allow them to endure for longer periods of time because they possess solid production bases.

The question is: Is the Iraqi economy able to endure if America decides to restrict its monetary reserves?

The Iraqi economy depends on imports for everything and does not have a solid production base, whether industrial or agricultural. Other than that, our cash reserves are subject to old decisions in the hands of America. We do not want to delve into the merits of the decisions and their effects. Rather, we only draw the attention of some gentlemen from the legislative and executive sectors. Do not put more pressure on the Central Bank, let it act in the language of approved monetary policy. In countries of the world, which are based on previously agreed upon international standards.

The chaos of statements makes matters worse, confuses the market, and pushes for wrong decisions, thus paving the way for specialists to deal with the dollar problem to find the appropriate solution.


Provoking Points to Ponder on WORDS:

Words are both better and worse than thoughts  – they express them – and add to them — they give them power for good or evil – they start them on an endless flight – for instruction and comfort and blessing — or for injury and sorrow and ruin — Tryon Edwards

When you have spoken the word – it reigns over you — When it is unspoken you reign over it — 
Arabian Proverb

You may tame the wild beast – the conflagration of the forest will cease when all the timber and the dry wood are consumed — but you cannot arrest the progress of that cruel word which you uttered carelessly yesterday or this morning — 
FW Robertson

A man cannot speak but he judges and reveals himself — With his will or against his will – he draws his portrait to the eye of others by every word — Every opinion reacts on him who utters it —