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TNT
Tishwash:
The oil and gas law is still in the government’s drawers, and a member of parliament is calling for it to be sent to parliament.
Qaisar Al-Jurani, a member of the Oil, Gas and Natural Resources Committee, confirmed on Wednesday that the draft federal oil and gas law is still in the government’s drawers and has not been sent to the House of Representatives in its final form, despite its importance in regulating and managing oil wealth in Iraq.
Al-Jurani told Al-Mada that enacting the law has become a national necessity, especially to regulate the oil relationship between the federal government and the Kurdistan Region, and to define the powers of managing oil fields, production and export mechanisms, contracts and revenues, in accordance with the constitution and to preserve the rights of all producing governorates.
He added that the continued delay in enacting the law leaves the oil files pending without clear legislative solutions, calling on the government to resolve the disputes and send the draft law to the House of Representatives, so that it can discuss it, make the necessary amendments to it, and vote on its enactment. (LINK)
A member of parliament accuses the government and the central bank of reneging on their promises to control the parallel market.
Member of Parliament, Miqdad al-Khafaji, criticized the government and the Central Bank of Iraq on Thursday for reneging on previous promises to take measures to protect citizens from the repercussions of the exchange rate adjustment and to achieve a balance between the official rate and the parallel market rate.
Al-Khafaji told the Information Agency, “The dollar exchange rate in the parallel market has risen again, which has negatively and directly impacted the income of ordinary citizens through the continuous increase in the prices of basic goods and foodstuffs.”
He added, “There is a large gap and a clear widening difference between the official exchange rate and the rate circulating in the parallel market,” addressing the relevant authorities by saying, “Enough with the promises and m**********n of the livelihood of the Iraqi citizen.”
It is worth noting that the government and the Central Bank raised the value of the dollar exchange rate against the Iraqi dinar to 150,000 Iraqi dinars per 100 US dollars, while the exchange rate reached 170,000 dinars. (LINK)
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Exchange rate: Fluctuations in the parallel market and calls to curb it
Economic concerns are escalating in the country as the exchange rate crisis and its successive fluctuations continue. These changes are casting a heavy shadow on local markets and increasing the severity of the living pressures facing citizens, amid parliamentary demands for the necessity of decisive government intervention to achieve monetary stability and protect the purchasing power of families from the continuous rise in the prices of basic goods and foodstuffs.
In this context, Member of Parliament, MP Miqdad al-Khafaji, criticized the government and the Central Bank of Iraq on Thursday for reneging on previous promises to take measures to protect citizens from the repercussions of the decision to amend the exchange rate and to achieve a balance between the official rate and the parallel market.
Increase in parallel market exchange rates
Al -Khafaji said : “The exchange rate of the dollar in the parallel market has risen again, which has negatively and directly affected the income of the average citizen through the continuous increase in the prices of basic goods and foodstuffs.”
He added, “There is a large gap and a clear widening between the official exchange rate and the rate traded in the parallel market,” addressing the concerned authorities by saying, “Enough with the promises and m**********n of the livelihood of the Iraqi citizen.”
It is worth noting that the government and the Central Bank raised the value of the dollar against the Iraqi dinar to 150,000 Iraqi dinars for 100 US dollars, while it reached 170,000 dinars. (LINK)
The Central Bank of Iraq reassures traders regarding the dollar and foreign remittances.
The dollar surpasses 169,000… Traders appeal to the Central Bank to resolve the SWIFT transfer delay crisis that has persisted for 20 days.
The Central Bank of Iraq has reaffirmed its commitment to financing imports in foreign currencies at the official exchange rate and to guaranteeing coverage for foreign transfers that meet the regulations. This move aims to reassure traders and companies about the continuity of financial flows necessary to cover the needs of the local market for goods and services, amid questions about the impact of these measures on the stability of the Iraqi dinar exchange rate and the movement of commercial activity.
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The Central Bank explained in a statement that it continues to meet requests for reinforcement with available foreign currencies in a smooth manner, and in a way that meets the needs of importers to finance the import of goods and services at the official rate, stressing that the approved banking procedures aim to ensure the continuity of financing for foreign trade operations.
He also stressed the continued provision of necessary coverage for external remittances that meet the controls and are covered by the approved enhancements before October 7, 2026, while following up on their implementation in coordination with the banks concerned, to ensure that the funds reach the beneficiaries.
This confirmation comes at a time when the speed of implementing foreign transfers is gaining increasing importance for the Iraqi commercial sector, which relies heavily on imports to meet market needs, making the regularity of bank financing a key factor in stabilizing trade and commodity costs.
Economic analysis suggests that the Central Bank’s continued provision of dollars to importers at the official rate can contribute to reducing traders’ reliance on the parallel market, especially if these measures are coupled with faster transfers and expanded access for small and medium-sized enterprises to the approved banking channels.
However, the actual impact of this policy on exchange rates remains linked to the volume of commercial demand for dollars outside the banking system, and the extent to which banks are able to meet the needs of importers without delay or procedural complications.
In this context, the importance of addressing delayed foreign remittances is highlighted, as the delay in the arrival of funds to suppliers may lead to the disruption of some commercial operations, an increase in operating costs, and the need for some importers to look for alternative sources of foreign currency, which may add pressure to the parallel market.
The Central Bank’s confirmation that it is following up on approved transfers before October 7 raises questions about the size of the amounts still being processed, the number of delayed requests, and the expected time periods for completing their transfer. These are indicators necessary to assess the efficiency of banking procedures and their impact on the private sector.
The statement did not include detailed figures on the value or number of the delayed transfers, nor did it specify a final date for their completion, merely emphasizing the continuation of follow-up and coordination with the banks concerned.
On another front, the Central Bank called on traders and companies whose remittances have not reached the beneficiaries to contact their banks, with the possibility of submitting complaints through its dedicated electronic platform, to follow up on the reasons for the delay and take the necessary measures in accordance with the applicable regulations.
Activating complaint and follow-up mechanisms is an important aspect of improving the relationship between banks and the commercial sector, but the effectiveness of these mechanisms depends on the speed of response, the clarity of procedures, and the ability of banking authorities to address problems within specific timeframes.
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From a monetary perspective, the central bank’s success in meeting the real demand for dollars through official channels may contribute to narrowing the gap between the official and parallel exchange rates, but it does not necessarily mean the disappearance of this gap, which is also affected by factors related to monetary demand, banking compliance requirements, confidence in the financial system, and the movement of trade not financed through official channels.
The stability of the exchange market does not depend solely on the availability of the dollar, but also requires a banking system capable of providing fast and reliable services, facilitating foreign transactions, and reducing the administrative burdens that may push some companies to deal outside the banking system.
Conversely, the continued gap between the official and parallel exchange rates, if its causes are not addressed, may lead to disparities in import costs among traders, and will be reflected in price levels and the competitiveness of companies, especially small institutions that face greater difficulties in managing liquidity and financing their foreign purchases.
The new statement puts the central bank to the test regarding its ability to translate its commitments into measurable results, through regular remittances, reduced waiting times, and improved access for importers to foreign currency at the official rate.
There remains a need to publish periodic data showing the volume of trade finance implemented, the value of remittances settled, and the percentage of late applications, in order to allow for an assessment of the impact of the measures on the market, rather than relying solely on general indicators.
In conclusion, the assurances of the Central Bank of Iraq represent a positive message to the commercial sector regarding the continuation of import financing and the non-stop coverage of remittances subject to controls. However, the real test of this policy will be the speed at which funds reach beneficiaries and the impact of this on trade activity and exchange rates.
If banks succeed in processing transfers regularly and meeting importers’ needs, this could reduce demand for dollars in the parallel market and boost confidence in official channels. However, if delays and difficulties in accessing financing persist, market pressures may remain despite the central bank’s continued efforts to provide support.
Between official pledges and market demands, the stability of the exchange rate remains linked to the ability of monetary policy to achieve practical results that traders and consumers can feel, and not just to continue providing dollars on paper: (LINK)
Source: Dinar Recaps
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