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Sun. AM-PM TNT Iraq News Articles 1-15-23

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TNT

Tishwash:
Deputy: The government has completed 90% of the budget and will reach Parliament within days

The representative of the Al-Fateh Parliamentary Bloc, Rafik Al-Salhi, attributed, on Sunday, the reason for the delay in the government’s completion of the 2023 budget bill to the completion of overcoming the problems and challenges facing the budget, stressing that the government has completed the draft law by more than 90% and will reach Parliament in the coming days . 

Al-Salihi said in a statement to Al-Maalouma, that “the delay in completing and sending the draft budget law for the year 2023 is caused by the problems and challenges it faces, especially since the law was not enacted two years ago.” 

He added, “The Sudanese government is very interested in establishing correct steps for their compatibility with the government’s reform and service program, which needs classification commensurate with the size of the challenges in order to provide the best services and overcome obstacles.”

Al-Salhi pointed out that “the information available to us indicates that the government and the Ministry of Finance have completed more than 90%,” noting that “the coming days will witness the arrival of Parliament for discussion and approval as soon as possible.” 

And the representative of the Kurdistan Democratic Party bloc, Mahma Khalil, confirmed in a previous statement to Al-Maalouma that the approval of the budget law will not exceed the month of next February.   link

Revealing the “real” reason for the dollar’s rise.. “Banks are not good at dealing with this system.”

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Today, Sunday, the Agency France Press revealed the reasons behind the rise in dollar exchange rates in Iraq during the past days, describing them as “real.”

And the agency indicated, according to its report, which was translated by (Baghdad Today), that “the news that talked about the existence of” American sanctions “against Iraq and preventing it from accessing its own reserves of dollars, is inaccurate,” noting that “quoting the economic expert Ahmed Al-Tabaji, the reasons The real thing is the implementation of the Swift system in Iraq.” 

She explained, “The application of the international Swift system for remote financial transactions and transfers requires imposing conditions on banks and banks in countries that fall within the system, and since mid-November, Iraq has entered the international Swift system.”

According to the agency, al-Tabaqji stressed that “participation in the global system of currency transfer requires compliance with a set of guarantee laws to combat money laundering and terrorism and the application of international sanctions such as those imposed on Iran and Russia.” 

He continued, “The truth is that these laws and requirements were a shock to most Iraqi banks and banks because they are not accustomed to dealing with this system.” 

For his part, the economic advisor to the Prime Minister’s office, Mazhar Salih, confirmed to the agency that “Iraqi banks must register requests to transfer dollars from the US reserves to their treasuries through an electronic platform website. The US Federal Reserve verifies these requests within the international Swift system before approving them, and in In the event of doubts about the destination of the funds or inaccuracy in filling out the application data, the application is subject to cancellation. 

He explained that “the requests of Iraqi banks and banks to obtain the US dollar through the SWIFT system, and since its implementation in mid-November, 80% of them were rejected due to doubts about their destination and the inaccuracy in providing the required data through the SWIFT system.” 

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And the agency continued, “The inability of Iraqi banks and banks to use the international Swift system and the high refusal of the US Treasury to supply the dollar, led to a decline in the local stock of foreign currency, causing the current crisis, which the Central Bank of Iraq confirmed is” completely temporary “and solutions will be found soon. “.

The agency indicated that “there is a great local concern about the inflation that is affecting the Iraqi dinar as a result of the inability of banks to implement the international currency exchange system Swift,” stressing that “the most important source of concern for specialists is the decrease in the purchasing power of the citizen due to exchange rates.”  link 

Economists warn of “massive” anger in the street: the dollar will reach 170 thousand

Today, Sunday, the expert in economic affairs, Raad Al-Masoudi, confirmed that the dollar is facing two strong pressures in the Iraqi markets, warning of the overwhelming anger of the street.

Al-Masoudi told (Baghdad Today) that “the rise in the exchange rate of the dollar in recent weeks has led to an increase estimated at 7-10% in prices on average in the Iraqi markets,” adding, “But its frequencies will be greater due to the high import costs with the presence of speculation.” And monopoly and weakness in the control tools, which means that the citizen’s attrition will be at the highest levels.”

He added, “The smuggling of the dollar out of the country and the pressure of the US Treasury on the central bank constitute two strong pressures on the exchange rate, pointing out that its rise to 170 is very likely,” noting that “the danger of the high price of the dollar and its impact on the markets will create a suffocating economic crisis that may lead to a wave of Massive demonstrations, especially since the poverty rate in the country exceeds 30%, which means that the situation will be very complicated if there are no logical solutions to the current crisis.

And yesterday, a member of the House of Representatives, Raed al-Maliki, announced the collection of parliamentary signatures to discuss the policies and procedures of the Central Bank regarding the rise in dollar exchange rates and the decline in currency exchange, in the presence of the Governor of the Central Bank. 

According to documents issued on the 10th of this month and obtained by (Baghdad Today): “Signatures of more than thirty deputies were collected demanding a discussion of the Central Bank of Iraq’s measures regarding the rise in dollar exchange rates and its instability in the local markets.”

On the other hand, the political researcher, Laith Shubar, revealed information that he said was “revealed for the first time”, summed up by Iran’s possession of huge funds from the Iraqi dinar through which it buys dollars from the Iraqi market and drains it.

Shubar said in a televised statement, followed by (Baghdad Today), that “we have information that Iran has 50 trillion dinars of the Iraqi currency seeking to replace it with dollars, and this information is revealed for the first time,” noting that “if the Iraqi dollar market remains wide open for purchase, the dollar will not It reaches not only 200,000 dinars, but up to 500,000 dinars for every 100 dollars.

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He explained that “Iraq not only has to take governmental measures, but also international ones, and it must approach the UN Security Council to hold a special meeting on this matter, because this file concerns the livelihood of citizens and affects the national security of the country, because it will drain all the hard currency that Iraq possesses.”

And with calculations conducted by (Baghdad Today), the 50 trillion Iraqi dinars are equivalent to about 32 billion dollars, while the daily sales of the dollar in Iraq are approximately $100 million, which means that this issue needs about a full year for the money in Iran’s possession to end.  link

Advisor to the Prime Minister determines the total public debt of Iraq

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Sunday, that the foreign reserves in Iraq are very high, while determining the total public debt. 

Saleh said, “The country’s internal public debt is currently estimated at about $50 billion, which is entirely owned by the government banking system (that is, debt within the government apparatus and not outside it).”

He added that “63% of the internal public debt is held by the Central Bank of Iraq and represents local assets in the structure of the central bank’s balance sheet,” noting that “the remainder of the internal debt is held by the three main government banks, with an annual interest of between 2-3%.”

He pointed out that “the effective external debt that must be paid during the period from 2023 does not exceed 20 billion dollars, which means that the total public debt is estimated at about 70 billion dollars currently, and it constitutes only a percentage of 30% to 35% of the country’s gross domestic product, which is a very safe percentage.” Compared to the standard or international standard rate of 60%. 

He continued, “The efficiency of the country’s foreign reserves is very high and covers external debt liabilities by 5 times, which is a high and reassuring standard ratio and reflects the strength of Iraq’s financial situation,” noting that “the mechanism for repaying internal and external debts takes place through annual allocations approved in the federal budget.” 

And he continued, “Fiscal policy in Iraq tends to adopt the principle of financial discipline, which is based on gradually reducing the total accumulated public debt, offset by narrowing the annual deficit in the federal general budget and making the debt created when necessary within the standard ratios, so that the new public debt does not exceed 3% annually.”   link

Source: Dinar Recaps

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Tishwash:
Iraq and Iran are discussing activating the transit system through 3 land ports

On Sunday, the head of the Ports Authority, Major General Omar Adnan Al-Waeli, discussed, during his reception with an Iranian delegation, activating the transit system through 3 land ports.

The authority said in a statement, “The head of the Ports Authority, Major General Omar Adnan Al-Waeli, received in his office a delegation from the Islamic Republic of Iran, which included the director general of Iranian international transit and land transport, the land transport official in the Middle East and neighboring countries, the trade exchange official in Iraq, and a member of the Board of Directors of the Transport Union.” to the Iranian private sector.

He added, “During the meeting, they discussed the importance of joint cooperation between the two countries and discussed the mechanism of activating the transit system through the three border crossings (Al-Mundhiriya, Zurbatiya, Shalamjah) and preparing all roads and requirements to facilitate the exchange and passage of goods and support trade and the economy by encouraging cross-border trade   link

This is good  this is the president who can take 15 days to sign a law but he is saying he will sign off on the Budget Law when he gets it

Rashid informs the Sudanese: I will agree to the budget as soon as it is received

The Iraqi President, Abd al-Latif Jamal Rashid, informed the Prime Minister, Muhammad Shia’ al-Sudani, on Sunday, of his intention to approve the draft federal budget law for the year 2023, upon its arrival at the Presidential Court.

A statement issued by the Prime Minister’s Media Office, received by Shafaq News agency, said, “Al-Sudani and Rashid discussed general developments at the national level and the importance of proceeding with the implementation of the government’s ministerial program, especially what is directly related to the requirements and needs of citizens, in order to provide the best services to them.”

The two sides stressed, according to the statement, the need to expedite the approval of the general budget, as the President of the Republic indicated his “readiness to approve it as soon as it is received, in order to start implementing the practical steps necessary to develop the service reality.”

Al-Sudani briefed the President of the Republic on the results of his visit to Germany and his meetings with senior officials there, as well as frameworks for cooperation and investment projects with the European side in various sectors, especially in the field of electricity, gas and energy investment, and other projects related to infrastructure development.

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The meeting witnessed the expected participation of the President of the Republic in the World Economic Forum in Davos, and Iraq’s endeavors to strengthen its relations with its friends in order to advance the country and support investment and the private sector through the enactment of the necessary legislation and the required facilities that facilitate the participation of international companies in the construction and reconstruction process and benefit from investment partnerships in order to Improving service and living conditions.

 On January 3, 2022, Prime Minister Muhammad Shia’a al-Sudani announced an increase in the amount of salaries in the general budget for the year 2023, realizing that the draft law needs a lot of time.

“The amount of salaries in the budget increased from 41 to 62 trillion dinars,” Al-Sudani said, in a press conference attended by Shafaq News Agency’s correspondent, explaining that “the budget needs a lot of time.”

The Parliamentary Finance Committee had recently indicated that the completion rate of the 2023 draft budget amounted to more than 95%, while noting that “final touches” were delaying its discussion in the corridors of the Council of Ministers.  link 

Source: Dinar Recaps

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