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Sudanese exempts frightening and assigns Ali Al-Alaq to manage the Central Bank


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https://www.wsj.com/articles/with-new-laws-and-some-help-iraq-turned-around-anti-money-laundering-problems-11551373004
 

read this it might chnaGe your views on the new CBI Governor Ali Mohsen Ismail Al-Alaq, governor of the Central Bank of Iraq, 

 

maybe he got sa led to stop the revalue…to try and stop him from cleaning up corruption….maybe the fruits of his efforts are now been rewarded! 
I personally think he will gives what we want and very very soon!

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Report.. Exemption of the Governor of the Central Bank of Iraq was at his request

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The Independent/- Iraqi Prime Minister Muhammad Shia al-Sudani on Monday relieved Central Bank Governor Mustafa Ghaleb Makhaif of his post “at his request,” while Iraqi observers say that the governor was a victim of pressure exerted by pro-Iranian parties and militias that are looking for a mechanism to enable them to continue circumventing On smuggling currency to Iran in light of the sanctions imposed on it.

Observers consider that the governor of the Central Bank of the article is a victim of political calculations that may have prompted the Sudanese to pressure him and force him to resign, especially as he is calculated on previous governments that were at odds with the coordination framework that controls the Sudanese government and runs it from behind the curtain, noting that Mustafa Ghaleb was a tough on the issue of bank transfers between Iran and its allies, and that he is enthusiastic about the application of US restrictions aimed at making the Iraqi banking system comply with global money transfer practices.

They pointed out that the dispute over the application of these restrictions prompted these forces to press for the dismissal of the governor, while at the same time accusing Washington of being behind the Iraqi dinar crisis.

And the New York Federal Reserve Bank began last November to impose stricter restrictions on international transfers of dollars to Iraqi commercial banks, in a move that American and Iraqi officials said was “aimed at reducing money laundering and the illegal transfer of dollars to Iran and other countries that are subject to severe penalties.”

The fluctuation of the dinar is linked to the start of Iraq's compliance with some standards of the international transfer system (Swift), which Iraqi banks have to apply since mid-November to access Iraq's dollar reserves in the United States.

Iraqi banks must now record their “transfers (in dollars) on an electronic platform, check the requests ... and the Federal Reserve checks them, and if it has doubts, it stops the transfer,” according to Mazhar Saleh, the advisor to the Iraqi prime minister for financial affairs.

Since the implementation of the restrictions, the Federal Reserve has rejected “80 percent of requests” for financial transfers to Iraqi banks, according to Salih, due to doubts about the final destination of those amounts being transferred.

In the meantime, the Iraqi authorities have taken measures, including facilitating the financing of private sector trade in dollars through Iraqi banks, and opening outlets for selling foreign currency in government banks for travel purposes.

On Sunday, Al-Sudani took a number of additional measures in order to limit the decline in the exchange rate, including “opening a new window for selling foreign currency to small merchants through the Iraqi Trade Bank” and “financing the Central Bank of the Iraqi Trade Bank with an additional amount of $ 500 million for the purpose of opening letters of credit for small merchants.” Merchants, being satisfied with the initial invoice and the account number of the last beneficiary of the credit.

Specialists believe that al-Sudani must choose between leaving matters to the former governor of the Central Bank or the one who was appointed by proxy, in order to draw financial policies, or for the government to assume tasks and impose its instructions and decisions, but it is not possible to appoint a governor for the bank and then seek to impose instructions on him.

Specialists point out that the Sudanese wants to hold the governor of the bank responsible for the Iraqi dinar crisis, although the matter is related to the policies adopted by the government, and the Sudanese has already pledged to solve the dinar crisis without succeeding in doing so. .

The official news agency, quoting a government source, reported that al-Sudanese "decided to relieve Central Bank Governor Mustafa Ghaleb Makhif from his post at his request," and "assigned Ali Mohsen Al-Alaq to manage the Central Bank by proxy."

Al-Sudani referred the director of the Iraqi Trade Bank, Salem Jawad Chalabi, to retirement and "assigned Bilal al-Hamdani to manage the bank in addition to his duties," according to the official news agency.

Al-Sudani stressed that the rise in the exchange rate of the dollar at the present time was not a government decision, but rather a mechanism agreed upon between the financial institutions and the central bank to rationalize the process of selling the dollar through the currency sale window.

The post Report.. Exemption of the Governor of the Central Bank of Iraq was at his request appeared first on The Independent Press Agency.

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Ihsan Al-Shammari for Nina: The government's last steps. An important part of maintaining Iraq's financial and economic security

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Baghdad /Nina/ The head of the Center for Political Thinking Ihsan Al-Shammari: The recent steps of the government .. An important part of maintaining Iraq's financial and economic security. He told the Iraqi National News Agency (
😞 The reassignment of Ali Al-Alaq to head the Central Bank is one of the steps to re-evaluate the work of the bank, especially since part of stopping the process of the collapse of the dinar is related to internal and external measures.
Al-Shammari added: The decision to exempt the governor of the Central Bank and reassign Ali Al-Alaq is part of these internal procedures and Al-Alaq has been associated with the success and superiority of the Iraqi dinar and was able to return the dinar to the level of 115-120 thousand for a hundred dollars, in addition to that he has good relations abroad. He explained that these measures and steps are a message to the outside that Iraq is proceeding with measures to contribute to the understandings with the US Federal Reserve, the aim of which is to maintain Iraq's financial and economic security.

 
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5 hours ago, 6ly410 said:

Al-Alaq has been associated with the success and superiority of the Iraqi dinar

 

If the exchange rate iraq had during his time sitting in the chair at the cbi is considered superior these yahoos dont have a clue about the iqd;s exchange rate history and there is no way the iraqi citizens are going to get iqd with real world purchasing power .... shaking head ... cheers 

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Smuggling $100 million a day'

Kuwait's report: 'Central' in Maliki's grip and changing its president will not solve the crisis

Kuwait's report: 'Central' in Maliki's grip and changing its president will not solve the crisis

  

Baghdad - Nas  

A Kuwaiti newspaper said on Tuesday that the former governor of the Central Bank returning to office Ali Al-Alaq, a close ally of Nouri al-Maliki, and quoted sources in Baghdad, that this is part of government changes to provide "scapegoats" in front of public opinion and requires proving the neutrality of the new president in the upcoming negotiations with Washington.  

  

 

The report of the "newspaper" followed by "NAS", (January 24, 2023) added that the Iraqi dinar in the post-Saddam Hussein era has never experienced a crisis like the one it is currently going through, as no one knows a fixed price for it, which prompted traders to raise the prices of almost everything, in an attempt to compensate for large losses they suffered, within an import-dependent economy.  

  

According to the analysis of the Kuwaiti newspaper, this crisis resulted from new US restrictions on dollar transfers to Iraq from the US Federal Reserve, in an attempt to control the smuggling of an estimated hundred million dollars every day to Iran in a clear violation of international sanctions under a government led by hardline parties in Shiite politics, which was sometimes considered evidence of Washington's attempt to restrict the "profits" of Tehran and its allies in Iraq currently.  

  

Senior sources in Baghdad told the Kuwaiti newspaper that the overthrow of the governor of the Central Bank is far from just scapegoating the public, as the Sudanese and behind him Maliki "want an official he trusts in necessary negotiations with Washington on managing the dinar crisis and the trade relationship with Iran."  

  

The sources added that «Maliki talked about the need to launch an urgent dialogue with Washington on the dinar crisis, and he can not progress in this file only someone who trusts him absolutely, so he returned to his first memories and returned Ali Al-Alaq to the position he had previously held in Maliki's second term».  

  

The newspaper reported that the financial authority represents a distinct battle in Maliki's political biography, as he had previously overthrown the former governor of the Central Bank, the late Sinan Al-Shabibi, an internationally prominent banking figure, who was opposed to Maliki's interventions in monetary policies, and Iran's breakthroughs, and came with the relationship as his replacement, and then removed Al-Kazemi Al-Alaq from office, until he returned today tasked with controlling the dollar.  

  

The newspaper stresses that financial experts in Baghdad say that no one can restore the status of the dinar, unless he persuades Tehran to stop buying dollars from the Iraqi market, or convinces Washington to ease the strict restrictions recently imposed on dollar transfers to Baghdad, especially since Iraq cannot transfer its assets outside the United States, because it is the only party that provides "international protection" for Iraq's oil revenues, in front of hundreds of thousands of lawsuits dating back to four wars fought by the country during the Past decades.  

  

The Iraqi prime minister says that he has more than 10 new measures to prevent the collapse of the market, but experts comment on this that it remains limited impact, as $ 200 million should be provided per day to stabilize the market, while what America currently allows is not more than an average of $ 60 million, which raised the price of the dollar to the borders of 1700 dinars, after it was two months ago 1450.   

  

Maliki will have to convince the US capital that Al-Alaq's personality is neutral and does not represent an imbalance in the highest institutions, in light of Washington's fears of profound changes in Tehran's favor, gradually including security institutions, armed forces, intelligence, and financial institutions.  

  

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Explainer: What is behind Iraq's Central Bank shuffle and what is next?

The economic crisis in Iraq as a result of the ongoing rise in the value of the US dollar against the dinar resulted in the prime minister sacking the heads of the Central Bank of Iraq and the Trade Bank of Iraq. 
Iraqi Prime Minister Mohammed Shia al-Sudani and the German chancellor (not in picture) give a joint press conference at the Chancellery, Berlin, Germany, Jan. 13, 2023.
Iraqi Prime Minister Mohammed Shia al-Sudani and the German chancellor (not in picture) give a joint press conference at the Chancellery, Berlin, Germany, Jan. 13, 2023. - Tobias Schwarz/AFP via Getty Images

 

@AliAlMamourJanuary 24, 2023

Iraqi Prime Minister Mohammed Shia al-Sudani removed on Monday Central Bank of Iraq Gov. Mustafa Ghaleb Mukheef and head of the Trade Bank of Iraq Salem Chalabi.

Sudani appointed Ali Mohsen al-Allaq as the head of the central bank and Bilal al-Hamdani as the head of the Trade Bank of Iraq.

This comes at a critical time as the exchange rate of the US dollar to the Iraqi dinar reached 1,670, the highest price since 2004. The rise of the US dollar affects the Iraqi economy significantly as the majority of goods and products are imported from overseas, based on the value of the dollar.

 

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How did Iraq get here?

The rise of the US dollar started a few weeks after the new government came to office last October. The previous government had kept the exchange rate of the dollar to the dinar between 1,145 and 1,147, after it raised the official exchange rate from 1,182 to 1,460 dinars in December 2020, to address the economic crisis that resulted from the coronavirus pandemic and a drop in the price of oil. 

Sudani had set measures previously to control the price of the US dollar, including banning four Iraqi banks from participation in a currency auction due to their violation of the regulations, and setting a daily limit on the amount of dollars citizens could withdraw. However, none of these measures had a positive result as the price of the dollar kept rising significantly.

The reason for the dollar price increase is due to several technical issues that the Sudani government has failed to address so far.

First, the lack of sufficient transparency in the Iraqi banking system has led the Central Bank of Iraq to set restrictions for banks using the US dollar in order to comply with the US Federal Reserve regulations. This has limited the access to dollars in the country's banking system.

Second, the banking system in Iraq has not been developed into a full electronic system that allows the central bank to monitor and track all the money movements in and outside the country. This allows individuals and companies to transfer US dollars illegally overseas, which raises the price of the dollar due to the increase in its demand. In order to stop this, the banking system needs to develop the process and adopt a full electronic system that complies with the global banking system.

Third, the high level of corruption in Iraq, which has resulted in money laundering practices that require large amounts of money to appear to have come from a legitimate source, also created high demands for the US dollar to be withdrawn and used for purchasing properties inside and outside Iraq. In the recent corruption case known as “heist of the century,” about $3 billion was taken from the Iraqi tax commission’s account with the majority of the funds transferred to properties and other assets. The Iraqi government removed the ban from the main convict’s company last week, a short time after releasing Noor Zuhair Jassim.

In an interview with Al-Taghier TV on Monday, US Ambassador to Iraq Alina Romanowski said that the United States will continue the mechanism that helps the Iraqi banking sector to comply with the international banking system, to restrict the use of the global banking system by criminals and malicious parties in order to curb money laundering.

“These measures that we took began about two years ago and were gradually implemented by the banks and were agreed upon between the US Federal Reserve and the Central Bank of Iraq,” Romanowski noted.  

What are Sudani's options?

By replacing the head of the Central Bank of Iraq and the head of the Trade Bank of Iraq, Sudani hopes to address these issues.

Allaq, who also served as central bank governor from 2014 to 2020, is close to former Prime Minister and head of the State of Law Coalition Nouri al-Maliki.

In an interview with Al Rasheed TV last Saturday, Maliki said the solution for the currency crisis is twofold: The dollar movement needs to be controlled and the easing of the mechanism and regulations of providing dollars to Iraqi banks needs to be negotiated with the United States.

Leaders and members of parliament from the Coordination Framework, which is an umbrella bloc of Iraqi Shiite parties that nominated and supported Sudani for the premiership, have accused the United States of putting pressure on the government by using a fanatical mechanism that has led to the dinar plummeting against the dollar.

Aqeel al-Fatlawi, Shiite lawmaker from the State of Law Coalition that is part of the Coordination Framework, was interviewed on Rashid TV in regard to the currency regulations. "Americans are using the rigid dollar transfer restrictions as a warning to Prime Minister Sudani to stay in line with the American interests. 'Working against us could lead to bringing down your government' is the American message," he said.

Hadi al-Amiri, head of the Badr Organization and Fatah Alliance that is also part of the Coordination Framework, had accused the United States of using the exchange rate of the dollar to the dinar in order to starve the Iraqi people, calling for economic independence from the United States. 

Romanowski, however, responded to such accusations in her recent interview. “These measures [financial measures about the dollar movement in Iraq] were not designed to be political, but instead they were designed, in particular, to prevent money laundering and corruption,” she said.

It seems Sudani is caught between a rock and a hard place, as he is facing opposite demands from the United States on the one hand and his political allies on the other.


 

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I don’t mean to be a Debbie Downer, but we may be jumping to wrong conclusions regarding “his promise”. How do we know if he is simply going to stabilize the dollar/dinar back to 1/1450 and call it a day?
I’ve learned the hard way over the years that what we want the articles to mean and what they actually mean can be very different. 

When they begin talking redenomination, I will get a bit more excited. Time will tell, I want this as badly as anyone on DinarVets, (maybe more than some due to age😁) but I have my doubts this dude is going to make, what we want to happen unless Iran can benefit. Jmho. 

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On 1/24/2023 at 6:19 AM, 6ly410 said:

Abadi praises the step of appointing Al-Alaq as governor of the Central Bank: a step in the right direction

Posted 9 seconds ago

 

On 1/24/2023 at 7:23 AM, 6ly410 said:

Keep an eye out for bold decisions from the new governor of the Central Bank of Iraq before hope for his existence turns into disappointment 

 

On 1/24/2023 at 7:38 AM, screwball said:

The dismissal of the governor of the Central Bank will take off the tentacles of corruption controlling the Central Bank, and will contribute to the revival of the Iraqi dinar."
He concluded his tweet by saying: "The dollar will come down."

 

says it all really! greatest  move for us ever!

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1 hour ago, Bama Girl said:

How do we know if he is simply going to stabilize the dollar/dinar back to 1/1450 and call it a day? ...

 

but I have my doubts this dude is going to make, what we want to happen unless Iran can benefit. Jmho. 

Sadly these echo my thoughts when I read this news this morning. All this recycled CBI Governor is looking to do for now is get the rate back to 1470...Not that I wouldn't be ECSTATIC if he did more! 🙏

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https://www.aljazeera.com/news/2023/1/23/iraqi-pm-replaces-central-bank-governor-over-currency-drop#:~:text=Prime Minister Mohammed Shia al,-Allaq%2C the agency added.

 

US ‘scrutinising foreign transfers’

Analysts and officials say the drop in value coincides with efforts to make Iraq’s banking system compliant with the Society for Worldwide Interbank Financial Telecommunication (SWIFT) international electronic transfer system.

Muzhar Saleh, an adviser to the prime minister, previously told AFP news agency that these steps, which began in mid-November, were required to access Iraqi funds held in the US.

 

Iraqi banks must now make “transfers on an electronic platform, verify the requests … and if it [the US Federal Reserve] has doubts, it blocks the transfer”, he explained.

Safwan Abdulhalim, an economist, said it is clear that the US Federal Reserve is “scrutinising foreign transfers from Iraq, especially to those countries unfriendly with the US such as Iran, Lebanon, Syria, and Yemen”.

“Consequently, Iraq’s daily wire transfers from the US have been cut from $240m to only $22m on a day,” he told Al Jazeera.

Some Iran-backed politicians in Iraq have blamed the drop on recent measures by the US Treasury. The United States has sanctioned several Iraqi banks dealing mainly with Iran, which is under US sanctions, amid concerns that hard currency is being routed from Iraq to Iran. Late last year, the US Federal Reserve began taking measures on transactions to slow the flow of dollars into Iraq.

 
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Sudani got elected Prime Minister and said he'll have a government in 30 days. Some like me had serious doubts but he surprised us and had a government completed. This new CBI governor could very well surprise us too. Stay cautiously optimistic though but let's not be negative just yet! Fingers crossed 🤞 

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2 minutes ago, Dretown39 said:

Sudani got elected Prime Minister and said he'll have a government in 30 days. Some like me had serious doubts but he surprised us and had a government completed. This new CBI governor could very well surprise us too. Stay cautiously optimistic though but let's not be negative just yet! Fingers crossed 🤞 

optimistic is only way! too many positives

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The dollar crisis... a "failed" attempt to overthrow the Sudanese, and the latter's decisions will return it to 147,000

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Baghdad Today - Sulaymaniyah

The leader of the Patriotic Union of Kurdistan Faiq Yazidi, on Wednesday, that the dollar crisis is fabricated by parties to overthrow the government of Mohammed Shia Sudani, pointing out that the recent decisions will reduce the dollar to 147 thousand dinars at the current stage.

Yazidi told Baghdad Today that "parties are trying to speculate and raise the price of the dollar to trap the prime minister and his government, which has achieved good successes in several areas, including the fight against corruption."

He added that "the decisions taken by the Sudanese government are very important in restoring the price of the dollar, at least at the current stage, to 147,000 dinars, and this is an important step to thwart these plans, and the decisions are very acceptable." .”

He pointed out that "maintaining the stability of the dollar is very important, and it achieves stability for the citizen's livelihood, after it was used as a political tool and a game of hidden hands to empty the country of hard currency."

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he dollar crisis. A "failed" attempt to overthrow Sudani and the latter's decisions will return him to 147,000

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The dollar crisis. A "failed" attempt to overthrow Sudani and the latter's decisions will return him to 147,000

  •  9 minutes ago
Baghdad Today - Sulaymaniyah
The leader of the Patriotic Union of Kurdistan Faiq Yazidi, on Wednesday, that the dollar crisis is fabricated by parties to overthrow the government of Mohammed Shia Sudani, pointing out that the recent decisions will reduce the dollar to 147 thousand dinars at the current stage.
Yazidi told Baghdad Today that "parties are trying to speculate and raise the price of the dollar to trap the prime minister and his government, which has achieved good successes in several areas, including the fight against corruption."
He added that "the decisions taken by the Sudanese government are very important in restoring the price of the dollar, at least at the current stage, to 147,000 dinars, and this is an important step to thwart these plans, and the decisions are very acceptable."
He pointed out that "maintaining the stability of the dollar is very important, and it achieves stability for the citizen's livelihood, after it was used as a political tool and a game of hidden hands to empty the country of hard currency."
 
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The story of the sinking of the dinar in the bank

The story of the sinking of the dinar in the bank – Iraq News Network (aliraqnews.com)

The story of the sinking of the dinar in the bank
Last Updated: 25 January 2023 - 10:02 AM

By:Samir Daoud Hannoush

It is not the purposes of the title to research the reasons for floating the dinar and its lack of steadfastness and accelerated collapse against the dollar, although the drowning in the meaning of the title or in our destination has one goal, the tales of drowning have not ended their chapters in the country of lost sovereignty and the homeland lost in the labyrinths of corruption and sins of power that abuse its prestige and put its national currency hostage to colorful moods and malicious intentions do not want stability for him. The crazy rise in the price of the dollar and the overthrow of one of those who were supporters of raising its price during the government of his predecessor Mustafa Al-Kadhimi, although some describe the move as political liquidations between the parties to seize the position.The dismissal of the governor of the Central Bank and some bank departments that controlled the dollar rate and smuggling from the country suggests implicitly acknowledging the existence of legitimate corruption in the currency market that is covered up by some influential parties and figures in the country.

Mohammed Shia al-Sudani's attempts to control the dollar craze by providing some of the food needed by the Iraqi family and selling them at subsidized prices and selling dollars to some groups and segments of society at the official price may suggest a belief that there are intentions to tame this rise. However, the Sudanese step to appoint Ali Al-Alaq as governor of the bank instead of his former governor, Mustafa Ghaleb, spoiled the attempts and made the citizen regain pessimism and frustration, especially when sad and unfortunate memories passed in front of his memory, the chapters of which occurred during Al-Alaq's assumption of charge of the Central Bank previously for the period from 2014 to 2020, when smoke escalated during his reign in a corruption case that was ridiculed by public opinion about the damage of more than seven billion Iraqi dinars (about six million dollars) at that time due to drowning in rainwater, knowing that it They were stored in the bank's fortified rooms, the results of which were not known whether the damage was intentional or negligent.

Several accusations were raised at the time against the bank and its governors, and a wave of ridicule from society at the naivety of justification for how these stored cash packages were damaged in ways that are difficult to reach water, and suitable for loud criticism of corruption, and some even considered it an innovative way of money laundering. The past and its mistakes, he could have been a good listener to the saying "the experimenter does not experiment" but he missed the opportunity.

The dismissal step seems to be an attempt by which the government aimed to take a step forward to find a solution to the dollar problem that has begun to escalate, while there are no radical solutions on the horizon after the increasing US pressure on the government to stop the bleeding of smuggling, but the mistakes of the past suggest the continuation of successive failures that may escalate The appointment of the Sudanese as the new governor of the Central Bank who had previously managed it when quantities of Iraqi monetary masses sank in rainwater during his reign sends pessimistic messages to Iraqis and a belief that prevails in their imagination that the Iraqi dinar is on the path of drowning and may drown anyone who tries to rescue it.

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