Tishwash: Black Money” Fuels Investment Stock Exchange.. Countries That Prospered with Looted Iraqi Money
Former MP Manar Abdul Muttalib, on Thursday (July 25, 2024), identified the features of black money in the Iraqi investment stock exchange, indicating that this money stolen from the Iraqi treasury has revived the economies of several countries .
Abdul Mutalib said in an interview with Baghdad Today, “There is no accurate figure for the amount of money looted in Iraq after 2003, but all indications indicate that it is hundreds of billions of dollars, some of which was smuggled abroad and some of which was turned into support for building economic wings for parties, forces and companies .”
She added, “The investment environment in Iraq is going against the trend in the world in that anyone with $100,000 can invest in a project worth $100 million. This is a paradox, especially since the state provides the land for free and it builds with customers’ money, especially in housing projects that represent a fertile environment for attracting money .”
Abdul Muttalib pointed out that black money (referring to corrupt and looted money) “exists in all sectors, including investments, but the possibility of uncovering it is difficult and complicated because there is no money in the names of politicians. However, seeing the level of prosperity and extravagance and comparing it with their situation years ago gives an indication of the extent of corruption .”
She explained that “corrupt funds were smuggled to neighboring countries and were thrown into large investment projects that revived the economies of several capitals, to the extent that those countries do not actually cooperate with Baghdad in order to clarify the fate of Iraq’s funds because they benefit in different ways,” indicating that “searching for Iraq’s previous funds is difficult, but the most important thing is to reconsider the investment file and make it within a scope that serves the country’s economy and to approve serious steps to combat corruption in order to preserve what remains of the country’s wealth link
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Tishwash: Saleh: The Central Bank’s dollar reserves are solid and the GDP rate is very optimistic
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed the cohesion of foreign reserves, especially the dollar, at the Central Bank of Iraq.
Saleh told Al Furat News Agency, “Covering urgent expenses in dollars, as they represent the desired demand for foreign currency, in addition to the level of sufficiency of incoming foreign currency flows and the level of maintaining the country’s reserves of the total foreign currency held by the Central Bank, is subject to two main factors.”
He explained that the first factor is “the nature of the oil asset cycle, which is still at its highest levels of global price increases due to the strength of global demand for energy, and that economic expectations indicate that potential price fluctuations towards a decline are still out of reach and are largely linked to the end of military operations in Ukraine, and the return of the flow of Russian gas and oil, especially to European markets, as the Russian Federation is the second largest oil-producing country in the world and leads the production and export of gas to major consumer markets in the European continent directly.”
The other factor, according to Saleh, “is related to the surplus in the current account of the Iraqi balance of payments, as estimates issued by international financial institutions indicate that this percentage of the surplus in the current account of the Iraqi balance of payments to the country’s gross domestic product is no less than {positive 6%}, which is a very optimistic positive percentage.”
He explained that “both factors indicate the cohesion of the country’s foreign reserves, which are generated by high oil export revenues to date, versus control over outward cash flows of foreign currency to meet local demand for imported goods, services and foreign benefits, as the current account of the balance of payments indicates that it is in a positive and stable position and is consistent with the general budget’s spending tendencies during the current fiscal year 2024.” link
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Tishwsh: Central Bank Under Wide Criticism After Failure To Control Exchange Rate
The Central Bank of Iraq announced today, Wednesday, the total sales of foreign currency through the electronic window. The window recorded the total amounts of transfers abroad (remittances, credits) at $267,587,912, while the total cash sales amounted to $7,050,000, bringing the total to $274,637,912.
The Central Bank set the selling price for transfers and cash at 1,310 dinars per dollar, while documentary credits and international settlements for electronic cards were set at 1,305 dinars.
The Central Bank of Iraq is facing widespread criticism from various economic and political circles due to its current policies and its inability to control the exchange rate of the dinar against the dollar. Under the government of Mohammed Shia al-Sudani, who decided to reduce the exchange rate to 1,320 dinars per dollar, the Central Bank was unable to actually control the price, which led to the emergence of a parallel market benefiting private banks that were described as similar to shops for exchanging dollars.
The instability of the exchange rate and the emergence of the parallel market have increased pressure on the Iraqi economy. These private banks are one of the biggest beneficiaries of the current situation, as they can buy dollars at lower prices than the official market and sell them at higher prices in the parallel market. This situation leads to economic instability and increases the burden on citizens who face rising prices due to the fluctuation of the exchange rate.
These problems reflect the weakness of the Central Bank of Iraq’s management and the inability to take effective measures to limit the influence of the parallel market. Many experts believe that the Central Bank needs to adopt more stringent policies and coordinate with government agencies to achieve tangible economic stability. The current situation requires serious steps to narrow the gap between the official and parallel markets and ensure price and exchange rate stability.
It is imperative that the Central Bank of Iraq strengthens oversight of the financial market and takes strict action against banks that exploit the situation to make illicit profits. The Iraqi government must also support the Central Bank through comprehensive economic policies that contribute to the stability of the local currency and the strengthening of the national economy.
The biggest challenge facing the Central Bank of Iraq and the Iraqi government remains achieving economic stability and ensuring fair distribution of opportunities and resources among all segments of society. Addressing the problem of the exchange rate and the parallel market requires joint efforts from all concerned parties to reach radical and sustainable solutions. link
