Iraq and BRICS
The most important characteristic of Iraq’s economic relationship with the BRICS group is the volume of trade exchange, as Iraq’s oil exports to the countries of this group constitute more than half of the total exports, especially the countries of India and China. Imports amount to approximately 70 percent of the total import volume.
The most important thing that concerns us in this matter is that commercial exchanges and financial transactions can be carried out in national currencies within the BRICS program, which heralded countries aspiring to escape from the dominance of the “SWIFT platform” for exchanges and transactions and liberate local currencies from the pressure of the dollar’s dominance as the sole currency for commercial exchanges and financial transactions in light of dollarization.
The global economy, as well as the possibility of trade partnership within the Chinese “Belt and Road” program within the framework of a clearly defined program in which the common rights and interests of the countries of the group and the countries participating with it are guaranteed without monopoly or domination.
Iraq’s location is considered one of the most important locations on the map of trade between East and West, in addition to its importance on the map of global oil markets. Certainly, the mechanisms of this cooperation will push towards more partnerships with the countries of this group, especially investment partnerships in a promising and attractive environment once the main goals of engagement are achieved. In this group.
BRICS are the first letters of the names of five countries with rapidly growing economies that share the desire to be liberated from the West’s hegemony over the global economy, and to put an end to this hegemony in international political issues.
These countries are (Brazil, Russia, India, China, and South Africa), and recently this group was able to attract… A number of the most important and promising economies in the world, including (Argentina, Venezuela, Algeria, the Kingdom of Saudi Arabia, Iran, Egypt and the United Arab Emirates).
Most of these countries have locations on the map of the Chinese “Belt and Road” initiative and have a desire to transact business through their local currencies in purchasing goods, to ensure freedom from the power and hegemony of the dollar in commercial exchanges
While Iraq shares its important position and the desire to be free from the power of the dollar, which caused Many monetary and financial imbalances were one of the elements that repel investment, which means that Iraq’s economic interests are pushing towards economic cooperation with the countries of this group and looking towards monetary stability and towards broader areas in the flow of investments from the BRICS countries in a way that serves the future of sustainable development in our country. link
The situation is getting worse… Article 140 is still outside the circle of political consensus
A member of the Committee of Regions and Unorganized Governorates in the Parliamentary Region, Jawad Al-Yassari, stressed today, Wednesday, the necessity of creating a political consensus within the House of Representatives and the government, in order to implement Article 140 of the Iraqi Constitution.
Al-Yasari said, in an exclusive interview with Al-Mutala’ Agency, that “the failure to implement Article 140 and end the problems between Baghdad and the region, and even the intertwined borders between the governorates, is due to the lack of political consensus, within the House of Representatives, and also between the governments of the center and the region.”
He added, “Failing to implement this article will make the situation worse. Therefore, the parties must agree and reach effective solutions to implement it,” noting that “relying on this article and not considering it is a violation of the constitution and the law.”
A member of the Parliamentary Regions and Governorates Committee confirmed that Article 140 “is not subject to or concerned with one governorate, but rather with all governorates and regions whose lands were usurped by the former regime, and that this article was established in the constitution to address those violations before 2003.” link
To facilitate banking procedures…the Iraqi Central Bank takes 6 new steps (documents)
Today, Wednesday, October 25, 2023, the Central Bank of Iraq took 6 new steps to facilitate banking procedures, in a letter addressed to all licensed banks.
According to the book, a copy of which Al-Sumaria News obtained, banks must act according to the following
All approved banks
M/Facilitating banking procedures
Addendum to our circulars No. 2/9/275, 9/2/119, and 9/2/126 on 1/7/2019, 23/23 and 2/26/2023, regarding facilitating the procedures for opening accounts and marketing banking services, given the connection between the performance of banks. And their profitability with those products and services, which is reflected in the growth and development of the Iraqi banking sector, expanding financial inclusion, and increasing confidence in this sector. Therefore, bank departments must work on the following:
1. Consider taking into account the interest and return rates for savings accounts – deposits that encourage attracting funds to the sector. The Iraqi banker, in accordance with the monetary policy of this bank.
2 It is necessary for the awareness, media and relations departments in your banks to carry out a media campaign through official websites, as well as on social networking sites, and all official channels and newspapers for the purpose of attracting customers and advertising all the products and services provided by the bank, as well as carrying out external financial transfer operations at the official exchange rate in all branches of your bank and preparing Your employees, which motivates customers to enter the banking sector and enjoy these services.
Case 3: It is necessary for you to work on what your banks offer through (our bank application), in Raqia Private Tennis, (might be a bad translation) and to promote this through all newspapers and social media.
4. Holding awareness workshops, seminars and conferences that encourage customers to enter the banking sector.
5. The necessity of working to expand the procedures related to the process of promoting the deposit insurance company further through the use of the official websites of your banks, or holding meetings with a sample of merchants and investors in order to reassure customers that there is insurance for your banks in the deposit insurance company, and thus the deposits will be returned to them in the event of the bank’s insolvency. In accordance with the instructions and controls issued in this regard.
6 A link is attached to the account opening forms for individual accounts, as well as (merchant accounts), (corporate accounts), and (joint accounts) to work according to, which makes it easier for customers of all types to open accounts with ease and ease, provided that (the form organizer – the liaison officer in the branches) Or the director of the reporting department or his assistant at the main branch – the branch manager – signs the form, and the form data is updated and the Anti-Money Laundering and Terrorist Financing Office is informed in the event of suspicions, without notifying the client of this.
Working in accordance with the requirements of the stated directives will be a critical criterion in evaluating the performance of banks in order to serve the national economy, the banking sector, and the public, with the Central Bank’s readiness to provide support and support to achieve this.
To adhere to what was stated in the flags with progress link
Source: Dinar Recaps
An economic expert talks about the gold reserve of the Central Bank in London… This is the relationship of its price to the dollar
An economic expert stressed the difficulty of predicting gold prices, specifying “the relationship in gold prices and the dollar.”
Salah Nouri said in a press interview seen by “Taqaddam” that “it is known to economists that the dollar currency and gold represent a reserve for central banks, and among them the Central Bank of Iraq adopts this diversification, and in practical life the relationship between the dollar and gold is an inverse relationship, as whenever there are signs of a decline in the price The dollar in the financial markets tends to invest in gold as a safe haven, and thus the global demand for gold increases and its price rises.”
He stated, “The Central Bank of Iraq owns a good amount of gold and it is stored in London, where the World Gold Council is located. The Central Bank of Iraq depends in determining the value of gold on its price on the London Stock Exchange.”
Nouri pointed out that “it is difficult to predict whether the price of gold will rise or fall because it is linked to the price of the dollar, and the latter is linked to unstable economic and political events in the world.” link
The government is withdrawing its hand from the dollar battle.. The solutions are over and the market is “free” at the exchange rate
Over the past weeks, silence has clearly overwhelmed the relevant authorities and authorities in Iraq at the governmental and banking levels in the face of the continued rise in exchange rates. In contrast to the past months, when the government and the central bank issued a package of quick decisions and measures immediately after the rise in exchange rates, except this time, with a break in… The exchange rate reached record numbers exceeding 160 thousand dinars per 100 dollars. It seems that the relevant authorities have “surrendered” in the battle for the dollar.
This matter can be reached not only from the absence of government and central bank measures that have come to prevent the smuggling of the dollar without taking measures to prevent its rise in the market, as the Central Bank previously issued various packages for this, but even in the statements of the Central Bank Governor, Ali Al-Alaq, and Prime Minister Muhammad Shiaa Al-Sudani, It clearly shows a “tone of surrender” and leaving the exchange rate without intervention, relying only on traders who buy dollars from the central bank and betting that commodity prices will not rise depending on these traders.
For example, the Governor of the Central Bank, Ali Al-Alaq, said last week during a session of the Ministerial Council for the Economy, that “the exchange rate depends mainly on imports and not on local production, and that the exchange rate in Iraq has peculiarities because it is linked to the price of oil as it is the largest source of providing hard currency,” noting. He pointed out that “many factors affect the exchange rate, the most important of which is the leakage of the dollar to neighboring countries and internal dealing in local markets in a currency other than the national currency, as well as the lack of complete control over ports and smuggling.”
Which means that the exchange rate will continue to rise as long as there is import, uncontrolled outlets, and oil pricing in dollars, as all of these conditions are sustainable and cannot be changed.
For his part, Al-Sudani said in a press conference yesterday, Tuesday: “We support some banks that we trust are good and have achieved success, in order to be part of the solution to the dollar crisis,” adding, “One of the problems we face is that Iraqi law does not contain strong penalties.” And strict measures against those who are arrested as speculators in the dollar exchange rate.”
It is another indication that it is not possible to do anything, whether for speculators or for the rising dollar prices, in clear statements that are consistent with the Iraqi authorities’ tendency to leave the market dollar price file without interference, that is, more like a flotation.
This is confirmed by economic affairs researcher Haider Al-Sheikh, today, Wednesday (October 25, 2023), stressing the difficulty of ending the crisis of the rise of the dollar in Iraq.
The sheikh told “Baghdad Today”, “The crisis of the rise in the dollar exchange rate does not end, and the central bank has become unable to control the market, and some banks, exchange companies, and merchants have manipulated the price of the dollar. “
He added, “This is because the Central Bank imposed any sanctions on banks, exchange companies, and merchants on the price of the dollar, which manipulate the exchange rate. Therefore, the dollar exchange rate will stabilize at 165 during the next two days, and will continue to rise further during the coming days. “
He pointed out that “there are problems in banking reform and major challenges facing the government, and the current dollar exchange rate in the markets is the price of currency speculators .”
He added, “There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price .” link
Source: Dinar Recaps
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