Warning To Iraqis: New Ways To Steal Your Money & Smuggle It Abroad.

[Luigi1]

Here's some articles from Iraq of Dinarian interests...

Treat as rumors.  Not verified.  Your opine.

 

 

 

An Expert Reveals The Reason For The Fragility Of The Iraqi Market: Countries Want Imports To Remain.

Economic expert Nasser Al-Kanani revealed the reason for the fragility of the Iraqi local market & its inability to confront any external problems.

 

Al-Kanani said in an interview with Baghdad Today, “The Iraqi local market is fragile & cannot face any external problems, as it depends only on foreign imports & does not depend on local national production & therefore the market is greatly affected by any external problems & cannot face any of those problems & therefore the Iraqi government must work seriously to restore local production so that the local market is strong & not affected by any regional or international problems and crises.”

 

He added, “The Iraqi local market is considered one of the most important markets for many countries in the region & the world, to sell their materials in it & it is not unlikely that there are countries working to keep the Iraqi market fragile & dependent on imports, instead of national production & for this reason, throughout the past years, we have not seen any control of local products over the market.”

 

Last March, the Central Bank of Iraq announced that “there is no return to the previous price of the Dollar & the price will not be reduced under any circumstances,” stressing that there is no intention to raise the price above 145,000 for every 100 Dollars, which is the official Iraqi ER.

 

The prices of basic foodstuffs doubled after the government devalued the Dinar & prices increased again, before rising again due to the rise in the price of the Dollar .

 

The prices of some food items in Iraq have increased by between 25 and 75 percent, as the price of one kilogram of sugar rose from 1,000 Dinars to 1,300 Dinars in retail markets, a bottle of cooking oil from 1,500 to 3,000, & grains from 500-750 to 1,000-1,500 Dinars.

 

Warning To Iraqis: New Ways To Steal Your Money & Smuggle It Abroad.

Economic  via the Internet & mobile phone applications, new digital banks in Iraq are starting to steal money & smuggle it out of the country, especially with the absence of government oversight over the work of these banks that do not have branches on the ground.

 

A new loophole for stealing money & a shortcut for smuggling currency requires government oversight.

 

Digital banks in Iraq are another way to smuggle currency after it is exploited by banks that have been subject to sanctions & require government oversight & serious action towards them.

 

Through unregulated electronic applications, financial transfers are carried out within these applications, without the need for paperwork or financial auditing, which facilitates the transfer process & the possibility of smuggling money in huge quantities.

 

Al-Sudani’s Advisor Explains: Did Electronic Payment Procedures Contribute To Preserving The Dinar’s Solidity?

Advisor to the PM & Chairman of the Supreme Committee to support the Iraqi Dinar, Qasim Al-Dhalimi, announced today, Tuesday, the committee’s success in restoring citizens’ confidence in the Dinar, while pointing out that it has provided mechanisms to preserve the solidity of the Dinar & the financial bloc.

 

Al-Dhalimi said, “The Supreme Committee for Supporting the Iraqi Dinar worked on how to restore the citizen’s confidence in the Dinar & to make it the main link between him & the source of his money & how the citizen can connect the Dinar to the solid Iraqi banks & how to deal with it electronically,” indicating that “the committee worked on many important joints.”

 

He added that “the citizen wanted to know the extent of the interest of the government or private bank in dealing with depositing his money & how to find real mechanisms to support the Dinar by balancing it with other foreign currencies,” noting that “there are mechanisms proposed by the committee for how electronic payment can be one of the features that preserve the solidity of the Dinar & preserve the financial mass present within the banks & for the citizen to be the 1st & last beneficiary & the electronic organization process, so the committee sought to achieve financial security & stability in the government program.”

 

Expert Proposes A Single Proposal To Confront The Decline In Oil Prices & Issues A Warning To Producing Countries

Oil expert Haider Al-Batat warned oil-producing countries today, Monday (September 30, 2024), noting that shale oil production is more economically feasible.

 

Al-Batat said in an interview with Baghdad Today that “the rise in oil prices leads to a slowdown in industrial growth & a decrease in demand for oil, with an increase in the trend towards the use of alternative energy.  This represents a threat to oil-exporting countries & the main beneficiary of this situation is the US.”

 

He added, “US shale oil production is only economically viable when the price per barrel exceeds $65. If the price of oil falls below $65, US oil production becomes economically unviable.”

 

He explained that “this will force America to reduce its production of shale oil, which will make the market need 10 million barrels of oil & this will lead to an increase in demand for oil produced by OPEC member states to compensate for the gap resulting from the decline in American production.”

 

The oil expert concluded by saying, “This scenario is the only solution to confront the decline in oil consumption & the shift to alternative energy.

 

It will also increase industrial growth, thus pushing oil-producing countries to increase oil production to keep pace with the increasing global demand.  Thus, they compensate for the decline in price by increasing quantities.

 

This in turn increases the costs of using alternative energy, which is ultimately much higher than the price of fossil energy, leading consumers to turn away from it & continue to rely on fossil energy while developing & upgrading it to be environmentally friendly.”

 

According to the US Energy Information Administration, the US has the largest recoverable resource of shale oil in the world, amounting to 78.2 billion barrels so far, followed by Russia with 74.6 billion barrels.

 

Although China is a relative newcomer to the scene, it holds a significant position with reserves of 32.2 billion barrels, contributing 7.7% of the global share.

 

Argentina, Libya & the United Arab Emirates also made the top ranks, indicating the diverse distribution of shale oil resources around the world.

 

Internal & External Debts “Exhaust” The Iraqi Budget & Experts Diagnose The Reasons.

The Iraqi government took a series of measures to reduce the external public debt from the financial surpluses achieved as a result of the rise in oil prices & succeeded in reducing it.  However, in return, the internal debt rose to exceed 70 trillion Dinars to bridge the gap in financial liquidity & operating expenses.

 

Iraq continued to borrow externally after 2003, especially during the oil price collapse that coincided with security operations against ISIS in 2014, in addition to internal borrowing to cover the country’s General Budget deficit.

 

The IMF said that Iraq’s internal imbalances were exacerbated by the large financial expansion & the decline in oil prices, noting that Iraq needs to gradually correct the public finances to achieve debt stability in the medium term & rebuild financial reserves.

 

“Dead” Debts.

Member of the Parliamentary Finance Committee, Jamal Kojer, said in an interview with Shafaq News Agency, “The external debt found in the reports available to us is a dead debt related to the Gulf War.  These debts date back more than 30 years & countries do not demand them, so they are not real debts.  If the Iraqi state demands their cancellation, they will be cancelled.”

 

He points out that “the internal debt, which exceeds 70 trillion Iraqi Dinars, is gradually increasing because the state’s revenues are less than expenditures & despite that, it is not a frightening debt.”

 

According to official data, Iraq’s internal debts amount to $50 billion, which are collected within the official & governmental financial apparatus, in addition to the existence of outstanding debts to eight countries, including Iran, Saudi Arabia, Qatar, the Emirates & Kuwait, amounting to $40 billion. These debts are questionable from Iraq’s point of view & have not been written off, despite being subject to the Paris Club.

 

Low External Debt.

In turn, the financial advisor to the PM, Mazhar Muhammad Salih, explained in an interview with Shafaq News Agency, that “Iraq is considered one of the countries with very little external debt, as the total debts due do not exceed 10 billion Dollars & these have annual allocations in the federal General Budget to extinguish them & they must be extinguished by 2028.”

 

“The external debt is the remnants of the pre-1990 settlements,” he added, noting that “Iraq is considered to have high creditworthiness according to the classification of international companies such as S&P Global Ratings and Fitch & therefore the external debt does not exceed 5% of the gross domestic product compared to the international standard that accepts debts up to 60% of the gross domestic product.”

 

Saleh points out that “there are internal debts amounting to 76 trillion Dinars caused by two financial crises, the 1st of which was between 2014 & 2017, which was the war against ISIS terrorism & the decline in oil prices & the 2nd crisis was the Corona pandemic, which led to the closure of global markets & a significant decline in oil prices& thus large borrowings occurred.”

 

He stresses that “domestic debt generally does not exceed 30% of the gross domestic product & is a debt within the government & not between the government & individuals or the market & there are mechanisms to extinguish it within the government’s financial & banking system & therefore there are no risks.”

 

Debt Is Not The Perfect Solution.

However, the economic expert, Dhurgham Muhammad Ali, sees the opposite of what the financial advisor said & says in an interview with Shafaq News Agency, “The internal debts also pose a danger because they must be paid & must not exceed 50% of the country’s annual gross domestic product.”

 

He added, “Expanding domestic borrowing is not the ideal solution to cover the Budget deficit, but rather it is an easy way to cover the deficit using primitive but effective methods, as long as they do not exceed the required limit, especially in light of the decline in financial inclusion & the low rates of bank deposits for the Iraqi citizen compared to neighboring countries.”

 

He explains that “combating corruption and following up on Iraq’s money that has been swallowed by corruption over the past years is slow and ineffective and faces obstacles and challenges, and recovering this money could pay off many internal debts.”

Hard Currency.

 

For his part, economic expert Hilal Al-Taan confirmed, in an interview with Shafaq News Agency, that “the internal debts do not have a significant impact on the Iraqi economy & most of them are in favor of the Ministry of Finance, the CBI & other ministries.”

 

He believes that “the major impact on the economy is on foreign debts because they are settled in hard currency, unlike domestic debts, which are settled in national currency.  The state must first reduce foreign debts.”

 

The largest part of the domestic debt is owed to the CBI, the Rafidain & Rashid banks & the Trade Bank of Iraq, which lent the government large sums of money to cover the federal budget deficit.

[screwball]

7 hours ago, Luigi1 said:

These debts date back more than 30 years & countries do not demand them, so they are not real debts.  If the Iraqi state demands their cancellation, they will be cancelled.”

 

no debt