British report: Iraq is facing an acute shortage of dinars and is struggling to pay salaries

[yota691]

The Washington Institute: Theft of the Century Network Linked to Al-Kadhimi

• Today 16:34

Information/translation... 

A report by the Washington Institute for Middle East Policy stressed that the Iraqi government should not fully rely on the high oil revenues that have been achieved in recent months and exploit them to inflate the already inflated public sector in the country. 

"The new Iraqi government must diversify the Iraqi economy, reduce government spending, and strive to create real and sustainable job opportunities for the hundreds of thousands of people who enter the labor market every year," the report, which was translated by Al-Maalouma Agency, stated. 

"Instead, the new government plans to increase unsustainable spending on public sector salaries by 20 trillion Iraqi dinars ($13.71 billion) in 2023. The money will be used to hire about 66,000 fresh graduates and put another 360,000 temporary workers on the permanent payroll," he added. . 

For a country of 42 million people, such piecemeal efforts are distracting and do nothing to advance the creation of the neutral and independent bureaucracy needed to make real progress.  

And the report stated that, “Upon taking office, Al-Sudani promised, like his predecessors, to fight corruption vigorously, but so far there have been no signs of progress. His first task was to respond to the “theft of the century” in which shell companies with strong ties stole the equivalent of 2.5 billion. dollars from government accounts.

And he stated, "The wide network of the so-called theft of the century seems to include a wide range of political actors, including those close to former Prime Minister Mustafa Al-Kazemi, while the recovery indicates a state of stalling after the government said it had all the money on the horizon, indicating that the funds are strongly protected." Great coercion and political cover beyond what the prime minister can handle."

He pointed out that "pressure must be continued to remind the government that its credibility, whether in Iraq or abroad, depends on pursuing real investigations and prosecutions in corruption cases and bringing the perpetrators to justice." End/ 25 zd

[screwball]

RV required.....$2 plus

[rvmydinar]

43 minutes ago, screwball said:

RV required.....$2 plus

[screwball]

4 minutes ago, rvmydinar said:

we are all 🙏

[edbeach]

Screwball - How are you coming up with $2. plus Is this your dream why not $1. plus . as they said years ago the goal of 1 to 1. I personally don't believe they can go more than  10 cents with all the dinar out in investors hands at least to start with on a float.

[3n1]

5 minutes ago, edbeach said:

I personally don't believe they can go more than  10 cents with all the dinar out in investors hands

 i have heard this 10 cent rv for years some have even sold books speculating promoting that rate where did the 10cent value originate , i realize shabibi is dead and gone he never put out a floating exchange rate his plan that parliament rejected was a fixed rate not to move more than 2% every 90 days pegged to a basket of currencies i have never read anything since that is different from his currency plan for iraq , my personal belief that anyone that is holding iqd will ever walk out of a bank with a duffel bag full of cash it will be digital exchanges numbers on a screen similar how someone might make a large home purchase one never handles the funds all digital transaction this is all just speculation gibberish on my part till the time arrives ... cheers edbeach

[screwball]

the plan was to return the rate to 3$...that was the plan put in place and documented in official transitional government documents regarding the new currency.

[WheresmyRV?]

3.00 RV would be so nice 

Edited February 2, 2023 by WheresmyRV?

[rvmydinar]

1 hour ago, WheresmyRV? said:

3.00 RV would be so nice 

Hopefully , that will be a straight RV.

[yota691]

Experts warn: the dinar is facing a huge shortage and an increase in its nature will enter the economy with labyrinths

• Time: 02/02/2023 07:34:09
•  
• Read: 1,703 times

  

{Economic: Al Furat News} Observers warned of the danger of a shortage in the national currency {the dinar}, estimated at 3 to 4 trillion dinars per month, in light of the decline in dollar sales in the currency auction of the Central Bank of Iraq.

The Central Bank witnessed a significant decline in its dollar sales, for several reasons, most notably the withholding of some banks from the auction and the creation of a new platform for money transfer. 

Economic analyst Haider al-Husseini warned of the danger of the central bank issuing cash or printing new quantities of the Iraqi currency, as it would contribute to more inflation in the Iraqi economy, as he put it.

Al-Husseini explained, "The assets of the Iraqi monetary block in the Central Bank are good, but with the decrease in central sales, there will be a scarcity of the Iraqi dinar."

He added, "The scarcity of the dinar may approach three to four trillion per month, and these can currently be fed because the balances are available in Iraqi banks, but gradually there will be a shortage in the national monetary mass, which calls us to think of alternatives to create Iraqi cash in a way that does not harm the economy." Iraqi." 

For his part, academic Mudhar Abdullah Al-Zalimi suggested that the process of (liquishing) operational spending take place at the level of the Iraqi dinar at this stage, noting, "Those affected can be compensated with shares in projects that will be established by French and German companies, as expected."

He explained, "Employees in state departments whose salaries range from three to five million can be compensated in Iraqi dinars plus shares in those projects."

Al-Zalimi called on the Ministry of Commerce to increase imports through official outlets, so that sales of the hard currency window (auction) in the Central Bank would rise, and certainly if we succeed in that, there will be no shortage of the national monetary mass.

He pointed out that "several countries, not only Iraq, suffer from the problem of dollar scarcity, such as Egypt, Lebanon, Turkey, Iran, Syria, Pakistan and others, which caused sharp declines in the value of currencies and the national exchange rates of those countries." 

The oppressors refused to think and go towards increasing the printing of currency or cash issuance, because it would lead the Iraqi economy to (mazes) as he described it, and this would lead to the accumulation of inflation rates, as happened with other countries such as Zimbabwe and Venezuela, and before them Argentina, the former Yugoslavia, Hungary and Germany.

[6ly410]

An American monitoring alerts Al-Sudani: The dollar crisis predicts bankruptcy and the outbreak of protests

Posted 23 seconds ago

 

US monitoring alerts Sudanese: dollar crisis predicts bank bankruptcy and protests - Iraq News (iraqakhbar-com.translate.goog)

 

news source /Noun Agency

 

The American Associated Press monitored the dollar crisis in Iraq, and how the “theft of the century” opened the eyes of American officials to the extent of existing corruption, as dollar transfers take place in large quantities outside the country, through the (gray market) of fake bills, and go specifically To Turkey, UAE, Jordan and Lebanon.

And the agency stated in a report, that “the beneficiaries of the dollar auction are Syria, Turkey and Iran, while the Sudanese Prime Minister, Muhammad Shia’a, does not enjoy good relations with Washington that would allow him to seek to ease the application of strict US measures.”

And she stated that “for months, the United States restricted Iraq’s ability to access its dollars, in an attempt to eliminate what is described as widespread (money laundering), and that Iraq is now feeling the crisis, with the devaluation of the dinar and the possibility of an explosion of popular anger against the Iraqi Prime Minister, Muhammad Shia’ al-Sudani.” .

Compliance with the terms of the federation

And the American report quoted a member of the Parliamentary Budget Committee, Mustafa Al-Qarawi, as saying that “the central bank must comply with the requirements of the Federal Reserve to reduce the scarcity of hard currency in the country,” adding that “new local measures will be implemented to improve access to the currency, while a delegation of officials travels Iraqis to the United States for negotiations next Friday.

The report pointed out that "the devaluation of the dinar has sparked protests, and analysts say that if this situation continues, it will constitute a challenge to the mandate of the government that was formed last October after a political stalemate that lasted a year."

He pointed out that "the deterioration of the dinar is taking place despite the fact that Iraq's foreign currency reserves have reached their highest levels ever, at about $100 billion, due to the rise in global oil prices, which led to the growth of state revenues."

Money laundry

According to several Iraqi banking officials and politicians told The Associated Press, daily sales of dollars through auction were in the past and often amounted to $200 million a day.

"The bulk of the dollars sold at auction are supposed to be used to buy goods imported by Iraqi companies, but this long-standing system has turned out to be easily hacked by misuse," he said.

The report quoted US officials as saying they suspect the system has long been used for money laundering, but declined to comment in detail on criticism now or the new restrictions.

The report also quoted a financial advisor to the prime minister, who asked not to be identified, as saying that "for years, large amounts of dollars were transferred outside Iraq to Turkey, the UAE, Jordan and Lebanon through the" gray market, using forged invoices for expensive goods.”

Al-Sudani's advisor added, "The inflated bills were used to launder dollars, and most of them are sent to Iran and Syria, which are subject to US sanctions, which prompted complaints from US officials," according to Shafaq News.

land smuggling

The report quoted the Chairman of the Board of Directors of Mosul Bank, Tamkeen Abdul-Sarhan Al-Hasnawi, who is the first deputy of the Association of Iraqi Private Banks, as saying that “in other cases, dollars were being smuggled across the land borders under the protection of armed groups that deduct for themselves a percentage of this money.” He estimated that about 80% of the dollars sold at the auction went to neighboring countries, and that Syria, Turkey and Iran were benefiting from the dollar auction in Iraq.

Dollar rise

Al-Hasnawi noted that at the present time it takes up to 15 days to approve obtaining the dollar instead of two or three days, which made the merchant resort to the black market to buy the dollar because he could no longer obtain it easily at the official rate from the banks, which caused In the rise in the price of the dollar.

And the US Federal Reserve began, late last year, to impose more stringent measures, including the steps that are now required, at the request of the United States, as the Central Bank of Iraq began implementing an electronic system for transfers that require entering detailed information about the intended final recipient of the required dollar.

According to the financial advisor to the Iraqi Prime Minister, “the Federal Reserve has trained a hundred employees of the Central Bank of Iraq to implement the new system,” adding that “this system began to reject remittances and invoices that the central bank was accustomed to adopting, as about 80% of transactions were rejected.” ".

According to the US report, the Federal Reserve imposes a “strong compliance system” for the accounts it maintains, and that this system “evolves over time according to new information, which is collected in a regular framework to monitor transactions and events that may affect the account and in communication with other US government agencies.” related to".

Peanut relationship

The report quoted the head of the Iraq unit at the Emirates Center for Research in Abu Dhabi, Harith Hassan, as saying, "Al-Sudani does not enjoy strong relations with the United States that could have enabled him to ease the application of the new financial measures."

The report indicated that Al-Sudani downplayed the importance of the current decline in the value of the dinar, as it is merely a “temporary issue of trading and speculation.” He replaced the governor of the Central Bank and took measures aimed at ensuring the availability of the dollar at the official rate.

The American report warned of the repercussions of the continuation of the current financial situation in Iraq, and that this may mean that most banks declare bankruptcy within one year, and widespread unrest and protests may break out in the country.

[yota691]

An American monitoring alerts Al-Sudani: The dollar crisis predicts bankruptcy and protests

 21 hours ago

407

 

The American Associated Press monitored the dollar crisis in Iraq, and how the “theft of the century” opened the eyes of American officials to the extent of existing corruption, as dollar transfers take place in large quantities outside the country, through the (gray market) of fake bills, and go specifically To Turkey, UAE, Jordan and Lebanon.

 

And the agency stated in a report, that “the beneficiaries of the dollar auction are Syria, Turkey and Iran, while the Sudanese Prime Minister, Muhammad Shia’a, does not enjoy good relations with Washington that would allow it to seek to ease the application of strict US measures.”

And she stated that “for months, the United States restricted Iraq’s ability to access its dollars, in an attempt to eliminate what is described as widespread (money laundering), and that Iraq is now feeling the crisis, with the devaluation of the dinar and the possibility of an explosion of popular anger against the Iraqi Prime Minister, Muhammad Shia’ al-Sudani.” .

 

Compliance with the terms of the federation

And the American report quoted a member of the Parliamentary Budget Committee, Mustafa Al-Qarawi, as saying that “the central bank must adhere to the requirements of the Federal Reserve to reduce the scarcity of hard currency in the country,” adding that new local measures will be implemented to improve access to the currency, while a delegation of Iraqi officials travels To the United States for negotiations next Friday.

 

The report pointed out that the devaluation of the dinar sparked protests, and analysts say that if this situation continues, it will constitute a challenge to the mandate of the government that was formed last October after a political stalemate that lasted a year.

 

He pointed out that "the deterioration of the dinar is taking place despite the fact that Iraq's foreign currency reserves have reached their highest levels ever, at about $100 billion, due to the rise in global oil prices, which led to the growth of state revenues."

 

Money laundering

 

According to what many Iraqi banking officials and politicians told The Associated Press, the daily sales of dollars through the auction were in the past and often amounted to $200 million a day.

 

He explained that "the bulk of the dollars that were sold in the auction are supposed to be used in order to purchase imported goods by Iraqi companies, but this system has been in place for a long time and it turns out that it is easy to be breached by misuse."

 

The report quoted US officials as saying they suspected the system had long been used to launder money, but they declined to comment in detail on the criticism now or the new restrictions.

 

The report also quoted a financial advisor to the Prime Minister, who asked not to be identified, as saying that “for years, large amounts of dollars have been transferred outside Iraq to Turkey, the Emirates, Jordan and Lebanon through the” gray market, where fake invoices are used for expensive goods.

 

Al-Sudani's advisor added, "The inflated bills were used to launder dollars, and most of them are sent to Iran and Syria, which are subject to US sanctions, which prompted complaints from US officials."

 

 

land smuggling

 

The report quoted the Chairman of the Board of Directors of Mosul Bank, Tamkeen Abdul-Sarhan Al-Hasnawi, who is the first deputy of the Association of Iraqi Private Banks, as saying that “in other cases, dollars were being smuggled across the land borders under the protection of armed groups that deduct for themselves a percentage of this money.” He estimated that about 80% of the dollars sold at the auction went to neighboring countries, and that Syria, Turkey and Iran were benefiting from the dollar auction in Iraq.

 

Dollar rise

 

Al-Hasnawi noted that at the present time it takes up to 15 days to approve obtaining the dollar instead of two or three days, which made the merchant resort to the black market to buy the dollar because he could no longer obtain it easily at the official rate from the banks, which caused In the rise in the price of the dollar.

 

And the US Federal Reserve began, late last year, to impose more stringent measures, including the steps that are now required, at the request of the United States, as the Central Bank of Iraq began implementing an electronic system for transfers that require entering detailed information about the intended final recipient of the required dollar.

 

According to the financial advisor to the Iraqi Prime Minister, “the Federal Reserve has trained a hundred employees of the Central Bank of Iraq to implement the new system,” adding that “this system began to reject remittances and invoices that the central bank was accustomed to adopting, as about 80% of transactions were rejected.” ".

 

According to the US report, the Federal Reserve imposes a “strong compliance system” for the accounts it maintains, and that this system “evolves over time according to new information, which is collected in a regular framework to monitor transactions and events that may affect the account and in communication with other US government agencies.” related to".

 

Peanut relationship

 

The report quoted the head of the Iraq unit at the Emirates Center for Research in Abu Dhabi, Harith Hassan, as saying, "Al-Sudani does not enjoy strong relations with the United States that could have enabled him to ease the application of the new financial measures."

 

The report indicated that Al-Sudani downplayed the importance of the current decline in the value of the dinar, as it is merely a “temporary issue of trading and speculation.” He replaced the governor of the Central Bank and took measures aimed at ensuring the availability of the dollar at the official rate.

 

The American report warned of the repercussions of the continuation of the current financial situation in Iraq, and that this may mean that most banks declare bankruptcy within one year, and widespread unrest and protests may break out in the country.