Newspaper: The framework will agree to two demands of Washington for the stability of the exchange rate

[6ly410]

POSTED ON 2023-02-06 BY SOTALIRAQ

The dollar crisis in Iraq. 'No change' despite assurances after Istanbul meeting

Voice of Iraq | The dollar crisis in Iraq. 'No change' despite assurances after Istanbul meeting (sotaliraq.com)

 

The value of the Iraqi currency against the dollar has fallen by as much as 10 percent since the imposition of the new
measures Despite the reassuring data published by the Central Bank of Iraq, the price of the dollar against the dinar is still far above the official rate, as the dollar recorded 1673 at 4 pm on Sunday, the closing date of the stock exchange in Baghdad, according to currency traders who spoke to Alhurra.

Ali Hamid, director of Al Rawasi Exchange Company, said, "The price of the dollar has moved a few points up and down despite the news that it has reached the price of 1500 against the dollar."

On Sunday, the central bank announced plans to "put the necessary arrangements for the first package of exchange rate control measures into effect, and clarify and simplify the procedures to achieve smoothness and speed in the implementation of dollar purchase requests."

The bank said that its governor, Ali Al-Alaq, confirmed "the ability of the Central Bank to meet all legitimate requests, indicating that an important second package will be issued in the middle of this month."

On Sunday, the Governor of the Central Bank praised the new system of procedures, stressing that "the new system does not aim to restrict the response to legitimate requests, as much as it aims to provide protection to the banking and financial system from illegal or suspicious operations, and supports the application of the Anti-Money Laundering and Combating the Financing of Terrorism Law and its related instructions, and also enhances the openness of the banking sector externally, which has been deprived of it for many decades."

The central bank governor held meetings that ended Friday in Turkey with U.S. Treasury Assistant Secretary Brian Nelson.

The U.S. Department declared its "support for achieving economic stability in Iraq and expressed its readiness to demonstrate the flexibility necessary to achieve common goals," the bank's statement said.

The announcement was widely understood domestically as U.S. approval of a grace period from SWIFT's remittance restrictions.

Hamid said that "the news that circulated unofficially suggested that the United States agreed to grant Iraq a grace period exempting the Central Bank from the measures of the SWIFT system, which raised expectations of a fall in the dollar, but this did not materialize."

The economic adviser to the Iraqi government, Mazhar Mohammed Saleh, said that "the understandings that took place in Istanbul broke a barrier with regard to the exchange rate and was a step to achieve stability in it."

Saleh told Alhurra that "the first package launched by the Central Bank of Iraq in the field of facilitating transfers through the highly compliant banking system is a good start to these understandings."

Saleh believes that the system will contribute to the regulation of the financial sector in Iraq "well after years of question marks and the concern of the US side that there is a breach of the international financial system due to the nature of transfers that have been complicated during the last twenty years."

Reforming the remittance system is also "an Iraqi demand, because people want to know where their money is going", he said.

He predicted that "over time the market exchange rate will approach its official rate."

The Central Bank of Iraq had reduced the price of the dinar in December 2020 from 1182 dinars against the dollar, to 1460 dinars, in a move aimed at compensating for the decline in oil revenues at the time.

But since the imposition of the "high compliance" measures associated with the SWIFT remittance system, the Iraqi currency has fallen against the dollar to record levels not seen since 2004.

The price of the dollar directly affects the Iraqi trading system, which is linked to the dollar, whether through oil revenues, or through trade exchanges conducted in dollars almost exclusively.

Alhurra – Washington

[screwball]

7 minutes ago, 6ly410 said:

important second package will be issued in the middle of this month."

cant wait....

[6ly410]

 

State Administration stresses importance of strengthening bilateral relations with Washington

Posted 7 seconds ago

 

The state administration stresses the importance of strengthening bilateral relations with Washington (iraqakhbar-com.translate.goog)

News Source /Mawazine News

Political |11:14 - 06/02/2023

 

Baghdad - Mawazine News
The State Administration Coalition affirmed its support for all government measures.

The coalition said in a statement received by Mawazine News / a copy of it, that "on the eve of the travel of the Iraqi delegation to Washington during the state administration confirms its support for all government measures and stresses the importance of strengthening bilateral relations with the United States in a way that promotes the interest of Iraq.”

 

 

[screwball]

25 minutes ago, 6ly410 said:

The dollar crisis in Iraq. 'No change' despite assurances after Istanbul meeting

clearly didnt like how the instabul meeting...fancy an earthquake after a meeting to discuss oil and currencies...

[screwball]

no such things as a coincidence...

[screwball]

https://en.wikipedia.org/wiki/Tectonic_weapon

 

A tectonic weapon is a hypothetical device or system which could trigger earthquakes, volcanic eruptions, or other seismic events in specified locations by interfering with the Earth's natural geological processes. It was defined in 1992 by Aleksey Vsevolodovich Nikolayev, corresponding member of the Russian Academy of Sciences: "A tectonic or seismic weapon would be the use of the accumulated tectonic energy of the Earth's deeper layers to induce a destructive earthquake".^[1] He added "to set oneself the objective of inducing an earthquake is extremely doubtful." Though no such device is known to have been built, tectonic weapons have occasionally appeared as plot devices in works of fiction.

 

 

yeah and EMP's don't exists and WMD's existed in iraq?

[tn vol]

Quote

So is there a delegation of Iraqi officials actually going to Washington tomorrow or was that just guru BULL SHIITE

 

[DanP]

6 hours ago, tn vol said:

 

Hold onto your seat. It’s happening. 

[DanP]

on the eve of the travel of the Iraqi delegation to Washington

 

[6ly410]

'Fears of deterioration'

Newspaper: Iraq resorted to printing 5 trillion dinars and the framework began to overlook the 'red lines'

2023.02.07 - 14:30

Newspaper: Iraq resorted to printing 5 trillion dinars and the framework began to overlook the 'red lines' (nasnews.com)

  

Baghdad - Nas  

Iraq printed 5 trillion dinars in the past three months due to the scarcity of the local currency, while the annual deficit of the dinar is expected to reach more than 60 trillion, which prompted the coordination framework that leads the government to pave the way for accepting options that it considered "red lines" in the past, especially those related to negotiations with the United States, according to information obtained by Al-Mada.  

  

 

  

The newspaper report by "NAS" (February 7, 2023) stated that Baghdad is counting on the success of negotiations with the United States on easing restrictions on dollar circulation through a senior government delegation, while the leaks revolve around US pressure to prevent factions from targeting coalition forces and imposing economic partnerships on Iraq with neighboring countries in exchange for easing dollar restrictions.  

  

Iraq is hoping for a delay of several months until it adjusts to US requirements set to monitor the movement of the dollar.  

  

He quoted an informed source that «there is a cash crisis in the local currency forced Iraq to pressure the printing presses of Britain and France, which prints the dinar, to print additional currencies».  

  

According to the source, who asked not to be named, "in the last three months, Iraq printed 5 trillion dinars to meet expenses, especially salaries."  

  

According to government data, annual salaries have risen to more than 60 trillion dinars a year as the number of jobs has increased.  

  

The source estimates that "Iraq's annual expenditures are about 100 trillion dinars and may escalate in the upcoming 2023 budget, while the Central Bank's sales of dollars of $ 24 billion annually (according to the latest bank data) are equivalent to 36 trillion dinars."  

  

The central bank's sales have fallen over the past three months from 250 to 300 million dinars a day to between 50 and 60 million dollars, according to the bank's data.  

  

The source, who is familiar with monetary policy, believes that «the difference between expenditures and sales of the Central Bank will compensate for the printing of the new currency», noting that «Iraq does not compensate the new printed dinar because non-oil revenues (fees, taxes) are equivalent to only 5% of the total revenue. "  

  

The source warns of "the increase in the printing of currency, which will lead to the deterioration of the value of the Iraqi dinar, the expansion of inflation and the rise of goods."  

  

In the past three months, exchange rates have gradually escalated, peaking last week at 1750,<> dinars per dollar, before falling slightly due to political factors.  

  

"Smuggling operations to Iran are continuing and probably will not stop even with US restrictions," the source said.  

  

The source explains: «Iraq pays in dinars gas and electricity dues to Iran and the question: What is Iran doing with the Iraqi dinar?».  

  

The informed source answers: «Tehran will certainly return these amounts back to Iraq and buy dollars with them and continue the process of recycling currency».  

  

In the "Emergency support for Food Security and Development" law, which was voted by parliament last year, 4 trillion dinars were allocated to pay off foreign debt, including debts for importing and buying gas and energy.  

  

Triggered by mounting criticism against the government, Atarion began trying to soften their previous objections to the Basra-Aqaba pipeline, which is believed to be part of a deal to ease dollar restrictions.  

  

On the other hand, the coordination framework officially adopted the latest measures of the government, and said in a statement that it listened Sunday evening to the prime minister's explanation "of the Central Bank's actions with the US Federal Bank in Istanbul two days ago and the reform packages issued by the bank."  

  

The statement considered the treatments presented by the Central Bank as "part of the process of financial and banking reform."  

  

Advisor to the Prime Minister Diaa Al-Nasiri confirmed that the dollar exchange rate will be reduced according to the proposal of the Central Bank.  

  

Al-Nasiri said in a tweet on Twitter that «the exchange rate of the dollar will be reduced according to a proposal submitted by the Central Bank of Iraq to Prime Minister Mohammed Shia Sudani».  

  

An official source revealed on Monday that the Central Bank of Iraq has completed its study on the devaluation of the dollar exchange rate and submitted it to the Prime Minister.  

  

[6ly410]

 

'American clarity and Iraqi ambiguity'

Research Center: The Iraqi delegation in Washington will discuss three files

2023.02.07 - 14:15

Research Center: The Iraqi delegation in Washington will discuss three files (nasnews.com)

  

Baghdad - Nas  

Iraqi Deputy Prime Minister and Minister of Foreign Affairs Dr. Fuad Hussein is scheduled to visit Washington DC tomorrow to participate in the work of the Higher Coordinating Committee for the Strategic Framework Agreement between Iraq and the United States.  

 

  

  

An analysis by NAS Al-Bayan Center for Studies (February 7, 2023) stated that the strategic agreement will occupy the largest part of the visit, which will discuss other issues that will contribute to determining the nature of relations between Baghdad and Washington at the current stage, which is characterized as a critical stage that requires a great deal of realism and caution in choosing options.  

  

The analysis added: Relations between Baghdad and Washington are characterized by a contradiction duality: a clear and explicit commitment from the American side, offset by a lack of clarity in vision from the Iraqi side, to the extent that American decision-making circles were confused about the Iraqi foreign political behavior on many issues, which start from avoiding research in the Strategic Framework Agreement, and do not end with abstention from voting on 2/3/2022, on the UN resolution that condemned the Russian invasion of Ukraine, which Washington interpreted as a vote in favor of Moscow. Especially since on the same day that the UN resolution was voted on, unknown persons hung a poster bearing the image of the Russian president in the Jadriya area of the capital, Baghdad, written in English (We support Russia), and the Russian embassy in Baghdad posted a tweet on its Twitter application, on the same day (1), before the Iraqi security forces removed it.  

  

The analysis pointed out: It can be said that the issues that the American side will present on the table in the visit of Iraqi Foreign Minister Dr. Fuad Hussein to Washington are:  

  

First: Strategic Framework Agreement.  

  

Second: Energy production and marketing.  

  

Third: The dollar crisis.  

  

Regarding the dollar crisis, the analysis stated: