Iraqi News Highlights and Points to Ponder Saturday AM 11-11-23


Iraqi News Highlights and Points to Ponder Saturday AM 11-11-23

Parliament Finance Responds To The Central Bank’s Decision To Import Foreign Currency And Plans To Host The Governor

Politics/Economy |Baghdad today – Baghdad   Today, Saturday (November 11, 2023), the Finance Committee in the House of Representatives commented on the decision of the Central Bank of Iraq to import “foreign currency” from abroad, while indicating that it will work to host Governor Ali Al-Alaq.

Committee member Mustafa Al-Karaawi told “Baghdad Today” that “the committee will work to host the Governor of the Central Bank, Ali Al-Alaq, and the senior staff at the bank, to discuss the decision to import foreign currency from abroad, and to find out the reasons that prompted such a decision to be taken and how it might have an impact.” On the internal Iraqi economic situation.”

He stated, “There is a fear that such decisions will be exploited by some parties and personalities who want to exploit any decision to their advantage, and for this reason we will have a position of following up and monitoring this decision, and we will also have a position in making an appropriate decision after reviewing the full details of this decision within a few days.” “The next one.”

The instructions of the Central Bank of Iraq, which it issued on Wednesday (November 8, 2023), regarding allowing banks to import foreign currency from abroad, raised a number of questions and discussions in economic circles about the legality, motives, and goals of this step.

The discussion was topped by some recalling the decision of the State Shura Council in 2011, to infer the lack of legal basis for the decision to import foreign currency, as the State Shura Council issued Resolution 2/2011, in January of the year 2011, based on a request for an opinion that came to the Council by the Office Financial oversight, as the State Shura Council relied on several legal texts, to infer the absence of a legal basis for the Central Bank to grant licenses to import foreign currency from abroad.

On the other hand, researchers in economic affairs have proven the validity of the Central Bank’s instructions, as the Central Bank had previously issued instructions to import foreign currency in July of 2011, and they were published in the Al-Waqe’at newspaper at that time, that is, 6 months after the decision of the State Shura Council, which makes it a document. Legally enforceable.

Observers and specialists raised a number of questions about the Central Bank’s decision, about the reason for opening the door to importing foreign currency, and whether this means or indicates that the Central Bank has begun to find difficulty in obtaining the dollar or sufficient quantities of it from the US Federal Reserve, and therefore the bank The Central Bank has become unable to meet the demand for the dollar because it does not possess it in sufficient quantity.   LINK

JP Morgan Strengthens 5 Iraqi Banks

Signs of relief in the dollar crisis.. Washington provides “limited facilities” for foreign remittances

Baghdad – 964  A government source said, today, Saturday, that negotiations took place during the past days between the Central Bank and the American side, to facilitate procedures for foreign transfers, while indicating an agreement to enhance the advance balance of 5 Iraqi banks in dollars through (JP Morgan).

Intensive meetings took place in Abu Dhabi in the past few days between a delegation from the Central Bank of Iraq and the American side responsible for foreign transfer operations to cover imports.

The negotiations resulted in a number of decisions and mechanisms that contribute to facilitating procedures for foreign transfers related to imports through the foreign currency sales window.

It was agreed to enhance the advance balance of five Iraqi banks in their accounts in dollars with Jordanian banks and transfers via (JP Morgan).

The problems related to rejected transfers were resolved, and it was agreed that the rejection of transfers should be based on strong reasons.

Other meetings took place that brought together an Emirati bank, the Central Bank of Iraq, and the American side to implement the mechanism for enhancing balances in UAE dirhams for Iraqi banks (UAE Dirham pilot).

All technical details have been resolved, and it is expected that the mechanism for enhancing balances in the UAE dirham will begin within the next few days.

There are serious negotiations that have reached their final stages to enhance the balances of some Iraqi banks in euros with UBAF to finance trade with the European Union.

The number of banks whose balances are supported by the Chinese yuan has been increased through the Development Bank of Singapore.

Accounts were opened for six Iraqi banks in this bank, and during the coming period, 7 more banks will be added to finance Iraqi trade and imports from China, where these imports are estimated at about 12 billion dollars annually.

It is expected that this mechanism will contribute to financing Iraq’s imports from India, especially medicines and foodstuffs, which are estimated at about 3 billion dollars.

Dollar Prices Recorded Stability At An Increase In Baghdad Money Exchangers

Economy |Baghdad today – Baghdad  Today, Saturday (November 11, 2023), dollar exchange rates stabilized at exchange offices in the capital, Baghdad.

The “Baghdad Today” correspondent said, “The selling price of the dollar in exchange offices in Baghdad today reached 165,750 dinars for every 100 dollars.”

He added, “The purchase price reached 163,750 dinars for every 100 dollars.”   LINK

An Economic Institution Attributes The Problem Of Increasing Demand For The Dollar In Iraq To The Large Consumption Of Imported Goods

FRIDAY, 11-10-2023, KARAR AL-ASSADI   The “Iraq Future” Foundation for Economic Studies and Consultations, today, Friday, attributed the problem of increasing demand for the dollar in the markets to the large consumption of imported goods, as its volume during the current year, which is about to end, reached 55 billion US dollars.

The head of the Foundation, Manar Al-Obaidi, said in a report published today, “The basis of the problem of demand for the dollar is the consumption of imported goods and the rise in their bill annually until our imports for the year 2023 reached as follows: UAE $19 billion, China $13 billion, Turkey $10 billion, Iran $9 billion.” India: $4 billion.

He added, “What we need is a clear strategy that works, firstly, to limit the annual growth of imports, and then work to reduce it by adopting an agricultural, industrial, and extractive policy that reduces our need for raw materials,” stressing “the necessity of building a strategy for industrial transformation and supporting manufacturing industries.” “.

Al-Obaidi continued to say, “Any other solution will make us always follow a policy of reaction to disasters that occur as a result of the absence of a clear strategy and anticipation of the future.”

The Dollar Recorded A Slight Rise In Parallel Markets

Information/Baghdad..  Today, Saturday, the dollar exchange rates witnessed a new jump, exceeding 164 thousand for every hundred dollars in the local markets in the capital, Baghdad.

A local source said in an interview with Al-Maalouma, “The selling price of the dollar in exchange offices in Baghdad today reached 164,250 dinars for every 100 dollars.”

He pointed out that “the purchase price amounted to 163,250 dinars for every 100 dollars.”

The representative of the Kurdistan Democratic Party, Sharif Suleiman, had warned of the consequences of the continuing rapid decline in the value of the Iraqi dinar against the dollar, while calling on the government to adopt a new reform package to stabilize the value of the Iraqi dinar. LINK

Weak Oversight And Smuggling Of Oil From The North.. Did Iraq Violate The OPEC Plus Agreement?

Economy |Baghdad today – Baghdad   Economist Nabil Al-Marsoumi said today, Saturday (November 11, 2023), that Iraq has confirmed its commitment to the “OPEC Plus” agreement and its production quota of 4.220 million barrels of oil per day.

Al-Marsoumi wrote in a blog post on his personal account on the Facebook platform, followed by “Baghdad Today,” that “Iraq’s oil exports, which rose to 3.533 million barrels per day last October, are the highest this year, resulting from a reduction in internal consumption, but a recent survey showed an increase in production.” Iraqi oil is 180,000 barrels per day above the levels specified by OPEC Plus, according to what S&P Global Commodity Institutes reported.

He continued, “Iraq’s production rose last October to 4,400 million barrels per day, and this increase is largely related to weak control over oil production in Kurdistan, which consumes part of it internally and smuggles the other part through tanks to Turkey and Iran.”

Yesterday, Friday (November 10, 2023), the Iraqi Ministry of Oil said that Iraq is committed to the OPEC+ agreement regarding determining production levels, two weeks before an important meeting of the oil producing group.

Iraqi Oil Minister Hayyan Abdul-Ghani said, according to a ministry statement received by Baghdad Today, that oil exports from the southern fields increased by 350,000 barrels per day, without mentioning a time frame.

The export of about 450,000 barrels per day of oil from northern Iraq has been halted since late March due to a conflict with Turkey.

The ministry’s statement indicated that the increase in exports is a “natural matter” and did not affect the total production ceiling agreed upon within the framework of OPEC+.

The statement added, “These increases in export levels sometimes occur due to a decrease in domestic consumption from one quarter to another.”

The statement also indicated that the OPEC+ group “will not hesitate to make decisions that ensure stability and balance in global markets.”

The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, is scheduled to hold a meeting in Vienna on November 26 to determine production policy.

Last September, Iraqi Oil Minister Hayan Abdul Ghani said that Iraq’s average oil production reached 4.23 million barrels per day, while the average oil export reached 3.35 million barrels per day.

Abdul Ghani confirmed that the government directed to focus oil investments in the western and central regions, while indicating that great strides had been made in enhancing investment areas through licensing rounds. According to press statements by the Minister.  LINK

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

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