Global report: Huge investment opportunities in Iraq despite corruption and bureaucracy
The International Investment Monitor newspaper, concerned with investment affairs, reported, Wednesday, June 23, 2021, that .Iraq has enormous opportunities for investors who bear risks The continuation of Covid-19 contributed to the destruction of Iraq’s economy, in addition to the war against terrorist organizations, but it is still .struggling
The World Bank estimates the reconstruction needs at $88 billion
Attracting foreign direct investment is a key factor in the reconstruction of the country, especially in light of the lack of domestic financing. However, the .investment climate in Iraq is attractive only to investors who have the highest degree of risk tolerance .
The World Bank took the lead in rebuilding the country, with $355 million allocated for the Iraq Transport Corridors Project
Iraq is also looking to start work on an elevated metro system for Baghdad in the second quarter of 2022 in addition to a contract to rebuild Mosul .Airport In 2020, the Iraqi electricity sector agreed to contacts with General Electric and Siemens to modernize power plants and the transmission network in .Iraq .
John Menzies, the London-listed airport services company, won in 2020, a very positive sign for foreign investors Corruption, institutional weakness, persistent security concerns, and onerous bureaucracy appear to be just some of the major impediments to .investment in Iraq, a war-torn country whose peace remains fragile with two million people still displaced from the ISIS conflict .
However, investors who have an appetite for the markets will discover the opportunity to participate in the renaissance of Iraq .The agri-food sector in Iraq is one of the few sectors of the economy, and represents a fertile place for investment in the non-oil scene in Iraq link
Counselor Mazhar Saleh: The statements that attacked our clarification on currency zeros… are politicized and unprofessional
Dr. Mazhar Salih, Economic Adviser to Prime Minister Mustafa Al-Kazemi, said on Wednesday, June 23, 2021 that his statement about the project to delete zeros represents a purely economic point of view that included a technical explanation of the issue of the history of the multiplication of zeros in the Iraqi currency during the siege. the past
In response to statements criticizing his point of view, Saleh considered that they are issued by politicized parties and trolling for words, adding: I have spent seventy-three years of my life and I still face this type of human being, considering that people are enemies of what they are truly ignorant of
Saleh considered that these statements, which claimed that talking about the deletion of zeros, caused a recession in the Iraqi market, politicized and .issued by people who call themselves politicians and independents
And the appearance of Muhammad Salih set two conditions for deleting 3 zeros from the currency, while stressing that the deletion option is proposed as .part of the strategies for reforming the currency and cash payments system in Iraq
Saleh told the Obelisk, “The Central Bank of Iraq developed a project to delete three zeros from the Iraqi currency in order to reform the cash payments system, which has become burdened with the insomnia of the economic blockade imposed in the nineties of the last century, and put it into research and study a long time ago, after looking at about 54 An international experience from the end of the Second World War until the second decade of the twenty-first century, which took place in various countries of the world, in which the monetary payment systems were reformed and made to work more .efficiently, the last of which was the Islamic Republic of Iran and before that, Turkey
He added that “the phenomenon of increasing zeros in the monetary unit or adding zeros to a single monetary unit usually comes due to the exposure of economies to unruly waves of inflation or continuous sharp rises for years in the price level due to wars, sieges and conflicts, which lead to financing the . “.deficit of government budgets through cash issuance
Saleh believed that “the hyperinflation that hit the Iraqi economy in the nineties of the last century added three numbers to the Iraqi monetary unit (that is, one dinar became equal to one thousand dinars, and ten dinars became ten thousand dinars, and so on for the rest of the categories), while the small categories disappeared from circulation completely, but rather Every 250 fils became equal to 250 dinars, and it was considered the smallest .monetary unit in circulation today, which raised the cost of micro-transactions that mostly affect the poor
He concluded by saying, “The project to delete zeros in Iraq is still technically prepared by the Central Bank of Iraq, which is the official sectoral authority and the monetary authority concerned with this matter and in cooperation with all three state agencies and authorities, but the project is postponed at .the present time until the appropriate conditions are achieved and remains part of the currency system reform strategies. and cash payments in Iraq link
Iraq and Saudi Arabia agree to work at the Arar and Jumima ports, and to set up a new mechanism for trade exchange
Thursday, Iraq and Saudi Arabia agreed to work at the ports of Arar and Jumima and to develop a new mechanism for trade exchange.
A statement by the Border Ports Authority, a copy of which was received by Mawazine News, stated that its head, “Omar Adnan Al-Waeli, participated in the economic security meeting held in the Kingdom of Saudi Arabia, among a delegation headed by Lieutenant-General Abdul-Amir Kamel Al-Shamri, Deputy Commander of Joint Operations, and Director General of the General Authority.” Customs, representatives from the Ministry of Foreign Affairs, the Border Guard Forces Command, the Iraqi National Intelligence Service, the Director General of Land Transport, and the Director General of Travel and Nationality.
The statement added, “The delegation discussed a number of common topics, the most important of which is the security situation on the borders between the two countries and securing the road from the Arar border crossing to the governorates of Iraq, as well as the obstacles facing the process of trade exchange and agreement on a new work mechanism whose main objective is to encourage trade and work to overcome all Obstacles between the two brotherly countries.
And he continued, “The head of the authority gave his full support to the success of the commercial work at the Arar border port and the establishment of the Jamima port in the Muthanna governorate with the Kingdom of Saudi Arabia, encouraging cross-country trade exchange (transit) and establishing lines of communication between the Border Ports Authority and Saudi Arabia through accredited coordinators between the two ports.” Through this, the authority works to achieve important revenues that supplement the state treasury, as well as provide job opportunities to employ manpower.” link
The Minister of Finance talks about the white paper
Source: Alsumaria news
Today, Tuesday, Finance Minister Ali Abdel Amir Allawi confirmed that the white paper aims to correct institutional performance and provide the best projects.
The ministry said in a statement received by Alsumaria News, “The Minister of Finance, Ali Abdul Amir Allawi, held a meeting with the Institutional Performance Evaluation Coordination Team in the General Secretariat of the Council of Ministers, which included Deputy Secretary-General of the Council of Ministers Jassem Muhammad Hamid and Riyadh Fadel Muhammad, head of the Institutional Performance Evaluation Coordination Team and Spectrum.” Sami, Undersecretary and Director General of the Economic Department in the Ministry of Finance.
The statement added that “the Minister of Finance discussed during the meeting the ministry’s strategic plan and its future vision aimed at developing and improving the services provided by its departments to all state institutions and to the various segments of society.”
The Minister of Finance indicated, according to the statement, that “the principle of work and tasks of the ministry and its departments have witnessed a remarkable development through the adoption of the best international standards of high quality, and it is continuing with progressive steps towards raising the level of the tasks entrusted to it.”
The statement continued, “The presentation of the financial and economic reform plan represented in the white paper, which aims in its entirety to correct the institutional performance aimed at providing the best projects and improving the level of services that are in the interest of the Iraqi people.”
Source: Dinar Recaps
Sales of the Central Bank of Iraq.. Continuous smuggling and permanent profits
Despite its slight decrease for a day or two, it is rising again. The Central Bank of Iraq’s sales of hard currency in its auction for buying and selling the dollar are still high in numbers, measurements and comparisons, until it almost touched the barrier of a quarter of a billion dollars within 24 hours, as sales rose in one day to About 147 million dollars.
During and after changing the exchange rate of the dollar against the dinar, there was talk about the attempts of the Ministry of Finance, the Central Bank and the government behind them to stop the smuggling of the dollar out of Iraq through the auction, by raising the exchange rate and thus reducing sales during the auction.
But the case was not as mentioned, as the Central Bank’s sales in five sessions in one week approached one billion dollars.
By looking at the results of the currency sale window in the last two days of the week, it indicates the vast difference in sales between foreign remittances and cash sales, as the Central Bank sold, during a session on Wednesday, June 23, about $235 million in total, distributed to more than $204 million for the purposes of strengthening balances in abroad as transfers and credits, and only about 31 million in cash sales.
On the following day, Thursday, June 24, 2021, for comparison, the Central Bank sold more than 216 million dollars, about 198 million dollars went for the purposes of strengthening balances abroad, while the total cash sale to banks and exchange companies was about 19 million dollars.
Notably, the coin sale auction has seen in earlier times a match between sales for the purposes of strengthening balances abroad and total sales, meaning that cash sales were ‘zero’.
A member of the Parliamentary Finance Committee, Ahmed Rashid, says that “the rise in the price of the dollar against the dinar contributed to reducing the fiscal deficit in the budget, but it failed to limit the smuggling of hard currency abroad, in parallel with the government’s failure to control the markets and prevent the rise in the prices of goods and merchandise.”
The economic researcher, Jalil al-Lami, also describes the significant increase in the sales of the Central Bank of Iraq as a “smuggling of hard currency,” and indicates in a television statement, followed by “Ultra Iraq,” that sales “did not exceed 160 million dollars throughout the year 2020,” that is, before the dollar exchange rate was raised. In order to reduce sales.
Reasons for height
Two main reasons for the recent rise in central bank sales, the first is that citizens resort to storing the dollar in their homes for fear of the collapse of the Iraqi dinar, according to a member of the Parliamentary Finance Committee Ahmed Rashid, who indicates that the second reason is “the continued smuggling of hard currency as well as the removal of the dollar from Iraq.” to import merchandise and merchandise.
Politicians and experts talk about the gains of political parties from raising the exchange rate of the dollar, with Iraq losing nearly six billion dollars during the change in the exchange rate, which went to the beneficiaries, according to a member of the Parliamentary Economic Committee Hamid Al-Moussawi, who said in a television statement, followed by “Ultra Iraq” that the bank’s sales remain The central bank in this high form “will branch Iraq’s reserves of the dollar,” which is what external parties want, according to him.
The Central Bank recently injected more foreign currency into the market, and the Parliamentary Finance Committee spoke of $3 billion for the purpose of “controlling the markets and rising the currency,” while MP Al-Moussawi returned the step to “public and media pressure” on the Central Bank.
At a time when the difference in the price of selling the dollar between the central bank and local markets was about 110 dinars per dollar, the profit was equal to 25 billion dinars per day, according to the accounts of a member of the Parliamentary Finance Committee, Muhammad Sahib Al-Daraji, at the end of the year 2020.
An informed source, who asked not to be named, told “Ultra Iraq” that several parties, including politicians, have invested the difference between the bank’s price and the markets resulting from the high price in exchange and the Central Bank’s continued selling of it close to 1,190 dinars, in the period between waving and declaring a change in the exchange rate and between fixing and raising it in practice.
In June 2021, the difference between the exchange rate approved by the Central Bank of Iraq in its sales, which is 1460 dinars per dollar, and the selling price approved in the local markets, which is 1500 dinars per dollar as an average, the difference reached 40 dinars.
Relying on these accounts at that time, and measuring sales and differences now, at a sales rate of $240 million per day, the profits continue despite their decline after the difference between the bank’s price and the markets diminished, so that the profit per day is approximately 10 billion dinars, meaning that the parties that stand Behind the banks and companies, and according to the current selling rate and at a higher exchange rate than the official one, she earns more than $200 million per month. link
Source: Dinar Recaps
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