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TNT
CandyKisses:
China hosts representatives from 130 countries at New Silk Roads Forum
Economy News – Baghdad
Russian President Vladimir Putin arrives in China next week to meet his counterpart Xi Jinping and strengthen ties with his strategic partner.
The Chinese capital will host representatives from 130 countries, including the Russian president, on October 17 and 18 for the New Silk Roads Forum, which will mark the tenth anniversary of the launch of this mega infrastructure project.
The plan, officially dubbed the Belt and Road, aims to improve trade links between Asia, Europe, Africa and even further afield, by building ports, railways, airports and industrial parks
Erbil: Withdrawing the dollar via ATM machines stopped by a decision of the Central Bank
Erbil – 964
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A number of Erbil residents were surprised, on Saturday, by the stopping of the ATMs, which were designated for withdrawing US dollars, in several areas, including the “Empire” complex, which witnesses a large presence of foreign expatriates.
964 Network Banking Source:
We are committed to the Central Bank’s decision issued 3 months ago, which prevents banks from granting dollars via ATM machines, and we have observed a commitment from other banks.
964 Network sources :
There are banks that still issue dollars via ATM machines, and they are subject to stopping at any time.
Saleh: The economic reform law is a complementary element to promote wealth produced from outside oil wealth
{Economic: Euphrates News} The financial and economic adviser to Prime Minister Mazhar Muhammad Saleh, on Sunday, that the issuance of the economic reform law is a complementary element to the advancement of wealth produced from outside the oil wealth
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Saleh told Al-Furat News: “The Iraq Fund for Development, which was approved as a system based on the government curriculum, will work in an important part of its functions and objectives to draw mechanisms consistent with the management of internal sovereign wealth funds.”
He added: “What can be expected from the importance of the issuance of the economic reform law, which will be the complementary element to the management of the country’s material and human resources in the framework of promoting the wealth produced from outside the oil wealth.”
Stability in the exchange rate is achieved through comprehensive financial and banking reform
In light of our follow-up to the measures of the Central Bank and the government to control the stability of the exchange rate, we clearly and accurately noticed that there is an organized lobby working against achieving monetary stability, led and implemented by multiple parties linked to speculators and corrupt people who have a special agenda to weaken the national economy and harm it by fabricating news, media statements and economic analyses.
It is incomplete and transforms it from news that reassures the market and citizens into news that confuses the market and creates panic among citizens, and this is what is actually happening now.
Which requires clarification here. Almost ten years ago, especially after the financial and security shocks in mid-2014, the culture of relying on the Central Bank to confront economic and financial crises and challenges took root.
This was done by using its means and tools for monetary policy to overcome the government’s lack of liquidity, its inability to pay salaries, and the failure to implement… Its government programs rely on foreign monetary reserves, which in reality are not the government’s reserves, but rather the central bank’s reserves to control the stability of the exchange rate according to the target, cover the local currency in circulation, and cover imports.
Because of these accumulated crises, the central bank was previously forced to lend to the government up to 46 trillion dinars during the past years. None of it has been paid so far, which has reflected in this policy exposing the national economy to complex problems.
The solution is always the central bank, and it is also held responsible for the problems of other concerned parties, and this is not its primary role, as it is not responsible for the deficit in non-oil revenues, the deficit in the balance of payments, and the deficit in… The trade balance is not responsible for the rise and fall of global oil prices.
Therefore, the obligatory cash reserve rose and fell due to these wrong policies that were not based on clear and specific economic strategies and approaches.
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Therefore, the return of stability in the exchange rate to its rates targeted by the Central Bank is achieved with the support of the concerned authorities in the government by activating other productive sectors and reforming the financial and banking sector.
And drawing up clear financial policies and in coordination with monetary policy and its currently approved applications and tools, and overcoming the challenges of achieving economic stability, which means achieving stability in the financial system and the monetary system. This is not only the duty of the central bank alone, but rather it is a fundamental duty of financial policy and the government’s methodology in managing the economy and activating sources of national income without Oil, supporting, protecting and encouraging local production, activating dealing in the Iraqi dinar in all internal monetary trading activities, and expanding the use of electronic payment methods whenever possible.
The expectations of the Central Bank and specialists that the exchange rate will return to a stable state requires time, which we hope will not be long, despite the daily and new procedures adopted by the Central Bank in issuing packages and instructions and taking daily executive measures for the purpose of finding facilities and openness to all segments that need the US dollar in foreign transactions at the official rate.
He concluded a series of negotiations and agreements with the US Treasury, the US Federal Reserve, and some international correspondent banks to regulate foreign trade with China, India, Europe, the Emirates, and Turkey, and to adhere to the standards of international banking transactions.
We affirm that the criterion adopted and confirmed by the Central Bank and specialists in achieving this is the availability of cash reserves of foreign currency exceeding 100 billion dollars and the continued flow of dollar revenues from oil sales on a daily basis in accordance with the quantities planned to be marketed in 2023 and at the prices of the product that are expected to continue at their current limits, or as energy experts expect that Prices exceed $100 at the end of this year link
Source: Dinar Recaps
Tishwash:
Al-Sudani to bank managers: Financial reform is not a slogan.. We will face the challenges without hesitation
Today, Sunday, Prime Minister Muhammad Shiaa Al-Sudani chaired a meeting to discuss banking reform procedures, in the presence of the Governor of the Central Bank and directors of government banks, while indicating that financial reform is not a slogan but a series of terms and procedures that the government intends to implement without hesitation.
Al-Sudani’s office said in a statement:
Within the framework of His Excellency’s follow-up to the plan to implement financial and administrative reforms in the financial and banking sectors, the Prime Minister, Mr. Muhammad Shiaa Al-Sudani, chaired, this evening, Sunday, a meeting that included the Governor of the Central Bank and the directors of government banks, in which the procedures and work mechanisms taken to achieve banking reform, which constitutes one of the… The basic steps for financial and economic reform that the government adopts in its executive approach.
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His Excellency stressed that financial reform is not just a slogan, but rather a series of terms and procedures that the government is determined to implement without hesitation, and will face all the challenges and obstacles that hinder the progress of implementing systematic and thoughtful reform plans.
The Prime Minister directed the simplification of all banking procedures, and the preparation of a proposed list of facilities and simplified procedures to be presented within a week, in addition to providing a summary of the obstacles obstructing the banking reform process, and proposing effective and implementable treatments for them, in a way that helps in overcoming the approved traditional contexts, which transform… Without achieving the government’s goal of developing this important economic and service sector. ink
Warnings of a banking collapse in Iraq.. Banks are without dollars and prices are on fire in the markets
CENTRAL BANK ACTIONS MAY LEAD TO A BANKING COLLAPSE IN IRAQ (ULTRA IRAQ)
Iraqi traders were surprised by the measures of the Central Bank of Iraq in preventing the circulation of Iraq through remittances entering and leaving the country, and the disappearance of the dollar from the banks, as well as the successive jumps in the exchange rates of the dollar against the dinar in local markets, amid warnings that the Central Bank’s recent measures would lead to a tightening grip on the dollar. To a banking collapse in Iraq.
The Iraqis were shocked by measures attributed to the Central Bank of Iraq to prevent the circulation of the dollar through remittances entering and leaving the country under the pretext of controlling the US currency crisis in Iraq.
In parallel with complaints from customers of some banks that they were not delivered the dollar, an official in the Central Bank of Iraq confirmed in a statement to Reuters that the government “will ban cash withdrawals and transactions in dollars as of January 1, 2024,” in a move aimed, according to the Director General. Investment and Transfer Management Mazen Ahmed called for “stopping the illicit use of about 50% of the $10 billion cash amount that Iraq imports annually from the Federal Reserve Bank in New York.”
The statement of the official in charge of transfers at the Central Bank caused anger among those dealing in the dollar, whether through banks and related to salaries for the private sector, or purchasing goods, travel, etc., which prompted the same official to issue an explanatory statement in which he accused “Reuters” of inaccurate journalistic formulations, and He said that the bank guarantees dollar deposits for citizens at any bank and receives them in cash, indicating that the statement means that the beginning of next year will witness “a cessation of cash withdrawals that includes transfers received only from outside Iraq according to certain arrangements that guarantee business sustainability and does not include in any way citizens’ balances in US dollars.”
Reasons for the central bank’s decision
Last year, the Central Bank of Iraq established a platform to regulate bank transfers, which constitute the bulk of the demand for the dollar, in order to control the fluctuation of US currency prices in the markets.
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In March 2023, the Central Bank issued a third package of measures to “facilitate access to the dollar,” which aimed to control exchange rates in the parallel market and prevent the crisis from worsening. It was satisfied with those packages before resorting to what could be called “besieging the dollar . ”
Regarding the recent measures, economic expert Khattab Al-Damen says, “The Central Bank of Iraq finally resorted to implementing the exchange control system due to the crisis of the high exchange rates of the dollar against the dinar in parallel markets,” indicating that “the Central Bank took control of all transfers entering Iraq in US dollars, The beneficiaries are paid in Iraqi dinars according to the official exchange rate, which is 1,320 dinars per dollar, even though the exchange rate in the markets exceeds 1,600 dinars per dollar.
Speaking to “Ultra Iraq,” Al-Damen added, “The new system harmed the rights of those with remittances entering Iraq in US dollars, as a result of them obtaining official exchange rates that are lower than the parallel exchange rates in the Iraqi market. In return, the Central Bank obtains dollar transfers in exchange for a price.” The official exchange rate is in Iraqi dinars.
The Central Bank of Iraq took over dollar transfers to Iraq and disbursed them in dinars and at the official exchange rate
The implementation of this system by the Central Bank of Iraq, according to Al-Damen, came in an attempt to increase the Central Bank’s reserves of the US dollar, in light of the crisis of growing demand for the dollar for the purposes of import, treatment, travel, smuggling, and money laundering.
The economic expert expects that the implementation of this system will lead to an increase in demand for the dollar in Iraqi markets, as a result of the decrease in the dollar quantities that were flowing to individuals and companies from external transfers, considering that this decision is not commensurate with the conditions of an oil-producing country like Iraq whose exports of crude oil exceed 90%. Billion dollars annually.
According to Al-Daman, achieving balance in exchange rates requires drawing and implementing economic policies aimed at controlling the causes of the high demand for the dollar and its high prices in parallel markets, which is the collapse of the real production sectors in Iraq (the agricultural sector and the manufacturing sector) to reduce the growing imports, which have exceeded 18 million.
One billion dollars annually, according to 2022 statistics, in addition to the demand for the dollar for the purposes of smuggling and money laundering, and not controlling balances transferred from abroad, in a country that currently enjoys high oil revenues.
The disappearance of the dollar!
On the other hand, a source in one of Baghdad’s private banks says, “Private and government banks in Baghdad and the governorates have begun implementing the Central Bank’s decisions regarding not dealing in dollars and adopting the official prices of the dinar in remittances.”
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Iraqi banks witnessed a significant scarcity of their dollar shares, which caused a crisis with customers
The source, who requested anonymity for functional reasons, while speaking to “Ultra Iraq”, indicated that “the Central Bank began reducing banks’ shares of the dollar through currency selling outlets in a step to enforce the instructions issued by it.”
The source confirms that there has been a “major scarcity in banks” during the recent period, “which has generated clashes and verbal altercations between banks in Baghdad and citizens who found themselves unable to withdraw their deposit transfers in dollars.”
The source points out, “A problem centered around the Central Bank’s recent actions, which is the issue of the country’s monetary supply, which is estimated at 85 billion dinars. Consequently, this liquidity is insufficient to cover the financial transactions of the government, which was relying on withdrawing the dinar against the dollar, which allows it to distribute salaries and meet needs.” “other”.
Traders in Iraq, who receive salaries in dollars, complained of not receiving what they receive as stipulated in their contracts, due to a government decision requiring dealing in the Iraqi dinar, whether for Iraqis or foreigners who receive their salaries from non-Iraqi companies or organizations.
Warning of a jump in exchange rates and a banking collapse
“The measures taken by the Central Bank regarding the countries’ crisis are floundering and failed and came due to pressure from the street and the government,” this is how the economic expert, Hammam Al-Shamaa, describes it during his talk to “Ultra Iraq.”
Banking collapse in Iraq soon with foreign remittances banned
Al-Shamaa adds, saying, “The Central Bank resorted to such a measure due to pressure from the US Federal Central Bank, which stressed to Iraq the importance of the dollar not going to Iran,” indicating that “due to the implementation of the new procedures of the Central Bank, the dollar will witness a major jump in the market as a result of these floundering policies.” .
A warning of a banking collapse in Iraq, issued by Al-Shamaa, as he said that “preventing external transfers by the banking sector will lead to the collapse of the banking sector soon since it essentially depends on the circulation and transfer of the dollar,” noting that “these measures will work to increase the gap between the citizen and the banks.” “This will have a significant impact on the banking sector in Iraq.”
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According to economic experts , the inability of banks to deliver dollar transfers to beneficiaries in Iraq “will discourage financial transfers from abroad in the future,” a measure that is “not in the interest of the Iraqi economy and will specifically affect financial transactions.” link
Source: Dinar Recaps
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