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Today, Thursday, Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, explained the dangers of the exchange rate fluctuations in the event that demands for floating the dinar are met, while confirming that the dollar exchange rate in the parallel market is gradually approaching the official one.

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Economic affairs expert Safwan Qusay confirmed that financial liquidity is available and there are no high risks regarding the existence of the Iraqi dinar.
Qusay said, in a televised interview followed by Mawazine News, that “oil revenues rose during the first three months of this year, and this is thanks to the current government’s policy and with Muhammad Shiaa Al-Sudani personally supervising this success.”

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Rentier countries seek to adopt a fixed exchange system (pegged) to a strong foreign currency or several currencies (a basket of currencies) to ensure the stability of foreign transactions, as long as they export one depleted commodity and import many goods and services, and they are called “small open countries.”

 Despite the agreement that the floating currency system is considered the best in terms of relative response to the performance of the external economy and the lack of need for sometimes excessive use of foreign reserves to defend the official value in the peg system, the abundance of reserves and the need for stability in foreign transactions have a major impact on the economy. Overall, rentier countries are likely to adopt a fixed exchange rate system.

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Al-Shammari said in a press statement received by Al-Maalouma, that “the classification of financial institutions in Iraq according to World Bank reports is positive, and the Central Bank’s classification is A++ and exceeds the Emirati classification.”

He added, "Iraq wants to join the international banking system, and on this basis the government has taken positive measures in this regard."

He confirmed, "The increasing percentage of merchants joining the platform rose from 28% to 78%," noting that "the demand for the official dollar has increased, and we will witness its decline on the black market in the coming period."

The Association of Private Banks appreciates the efforts of the government and the Central Bank to create understandings with the Treasury, the Federal Reserve, and international banks link to My FX Buddies Blog

Al-Handal appreciated the efforts of the Iraqi government and the Central Bank of Iraq to create deeper understandings with international banks, the Federal Reserve, and the US Treasury to expand the integration of the Iraqi banking sector into the global financial system, in addition to supporting the Iraqi dinar, which led to a gradual rise in its value

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Al-Ghurairi pointed out that "the World Trade Organization (WTO) and the international circles welcomed Iraq's return to the negotiating table, especially since it is one of the important Arab economies that is still outside the organization, as he described this progress in terms of the accession file as being one of the most active files among the Arab countries and observers." The Minister stated, “The Department of Foreign Economic Relations, through official channels of dealing with the organization, is working on completing all requirements for accession in order for Iraq to obtain membership in the organization and enhance Iraq’s integration into the multilateral trading system.”

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The water crisis in Iraq has become increasingly severe and has clearly begun to affect agricultural activity, reducing the country's food self-sufficiency. This crisis has opened the door to direct financial benefits for Iran, the neighboring country that is believed to have a role in exacerbating this crisis.

Despite this, the Iraqi government has not made sufficient efforts to address this problem or reduce its negative impact, and hopes are currently focused on Erdogan’s visit to alleviate the severity of this crisis.

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The Prime Minister returns to the capital, Baghdad, after concluding his official visit to the United States of America. The Prime Minister’s Media Office said in a statement received by the Iraqi News Agency (INA): “Prime Minister Muhammad Shia al-Sudani returned to the capital, Baghdad, after concluding his official visit to the United States of America, which included holding a series of meetings, discussions, seminars, dialogue sessions, and other events, which are As follows:
■ Meeting with US President Joseph Biden
■ Receiving Secretary of State Anthony Blinken
■ Visiting the Pentagon headquarters and meeting with Secretary of Defense Lloyd Austin

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The Central Bank of Iraq's (CBI) dollar auction has been a continuous source of controversies and conspiracy theories. The main accusations facing it include: the siphoning of dollars to Iran, money laundering, and currency smuggling.

Missing from this melee is an understanding of the economy's key structural imbalances: mainly that the Iraqi economy is wholly dependent on oil export revenues, and demand for goods and services is met through imports handled by a largely informal private sector.

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The Article 140 Committee in Kirkuk Governorate announced, on Tuesday, the start of distributing sums of money to the deportees after the arrival of bonds worth more than 8 billion dinars from the public center.

The head of the committee, Babiker Siddiq Ahmed, told Shafaq News Agency, “A new batch of deportees’ checks arrived at the office of the Article 140 Committee in Kirkuk, where the number of this batch reached 845 deportees, and the total amounts of the checks amounted to 8 billion and 450 million Iraqi dinars.”

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Iraq is approaching the end of the closure of the dollar selling window at the Central Bank - which has been controversial - over the past two decades.
The Central Bank's management plans to gradually cancel the dollar auction during the year 2024, leading to its complete cancellation by the end of the year, and to maintain it for audit and statistical purposes, in an effort to enable Iraqi banks to establish and establish solid banking relationships with the global and regional banking sector in order to achieve the sobriety of the Iraqi banking sector and full commitment. According to international standards and requirements.
Iraq relies on the platform for selling currency directly to local banks and companies, which was previously known as the daily dollar auction, as one of the mechanisms for preserving the value of the Iraqi dinar and combating speculative operations in the parallel market.

Abdel Wahed: The Sudanese visit to Washington is important and will restore stability to the dinar price link to My FX Buddies Blog

Abdul Wahed said in a blog post seen by Mail, “The Prime Minister’s visit to the United States of America comes at an important time, and will be a transition towards a new phase of relations, especially since the visit is evidence of the Iraqi desire to build a sustainable strategic partnership based on mutual respect.” .

She added, "The files that will be discussed, whether economic, security, or political, must certainly benefit Iraq and have a role in the recovery of the economy and the return of stability to the dinar price."

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He stated that “the goal of the visit is to move relations with the United States to a new stage that includes activating the provisions of the Strategic Framework Agreement, which is in line with our government’s program that focuses on economic and financial reforms and other important fields, as well as productive partnerships with various countries of the world.”

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The Iraqi government spokesman, Bassem Al-Awadi, confirmed today, Thursday (April 11, 2024), that the dollar file and the work of banks will be strongly present during the visit of Prime Minister Muhammad Shiaa Al-Sudani to Washington, suggesting that the dinar’s situation in the future will be better.

Al-Awadi said in an interview with “Baghdad Today” that “after the issue of activating the strategic framework agreement between Washington and Baghdad and the security aspect, the economic file will be present and strongly during the Prime Minister’s visit to the United States,” indicating that “the relationship with the US Treasury and the Federal Bank continues and the dialogues are ongoing.” "It did not stop with them over the past year, as there were several mutual visits, announced or unannounced, to discuss this file."

Government spokesman: We have adopted the principle of productive borrowing and integration into the international economic cycle link

Government spokesman, Bassem Al-Awadi, said on Monday, April 8, 2024, that the government has followed the principle of productive borrowing and integration into the international economic cycle.

Al-Awadi issued a statement, seen by Ultra Iraq, which came as “an emphasis from the government on transparency in economic work, and informing public opinion and the national and international media of Iraqi economic performance.”

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Based on the directives of the Minister of Finance, Ms. Taif Sami, regarding the automation of banking work, and with direct follow-up and supervision by the Director General of Rafidain Bank, Dr. Ali Karim Hussein. Al-Rafidain Bank announces the launch of the comprehensive banking system in the branches of Al-Waziriya and Al-Ma’rifa in Baghdad and Al-Shuhada in Holy Karbala, thus joining the branches in which the comprehensive system was implemented, the last of which was at the border crossings (Zarbatiyah - Safwan - Arar - Trebil) in an important step to abandon paper work and move completely towards... Electronic transformation.

The beginning of “drying up” liquidity from the hands of the Iraqis.. The destruction of “surplus” currency and deposits in banks are the highest historically link to My FX Buddies Blog

Over the past years, all of the economic problems in Iraq internally, whether with regard to corruption, the dollar, high real estate prices, etc., as well as inflation, were directly linked to the high volume of liquidity and the printing of money by the Central Bank, as well as the high volume of cash liquidity. In the hands of the street, citizens or capital owners, away from Iraqi banks. Recently, trends and numbers indicate that a reverse process has begun to take place in Iraq, which consists of reducing cash and getting rid of “surplus printed money” without printing new money in front of it, and increasing banks’ possession of this liquidity instead of leaving it in the hands of the street and citizens, where it can be said that the government and the banking sector And finance in general in Iraq began to “nibble” the existing liquidity and “dry it out” from the hands of the people.

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The Ministry of Finance said in a statement received by the Iraqi News Agency (INA): “Minister of Finance, Taif Sami, received today the Regional Director for the Middle East at the World Bank, Jean-Christophe Carré, the Special Representative of the Bank in Iraq, Richard Abdel Nour, and a number of experts and specialists.”
She added, "During the meeting, priorities for development projects and ways to support the World Bank to strengthen the financial and business sectors and improve the investment environment were discussed," noting, "It was emphasized that continued bilateral coordination to promote sustainable development was discussed, in addition to discussing the Bank's support for the government program for economic reform in Iraq."

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Today, Monday, Iraqi Prime Minister Muhammad Shia al-Sudani received an official invitation from Saudi Crown Prince Mohammed bin Salman to participate in the special meeting of the World Economic Forum, which the Kingdom will host at the end of next April.

This was mentioned in a statement issued by Al-Sudani’s office and received by Shafaq News Agency. 

The statement conveyed that Bin Salman, in a letter he sent to Al-Sudani, referred to the close relations between the Kingdom of Saudi Arabia and Iraq, and that his participation will have a good impact on the success of the meeting’s work

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Fadi Al-Shammari, advisor to the Prime Minister, Muhammad Shiaa Al-Sudani, expected on Wednesday (March 27, 2024) a continued decline in the dollar’s ​​exchange rate against the dinar.

Al-Shammari said in a televised statement followed by “Baghdad Today,” “The dollar is on its way to further decline and is subject to supply and demand.”

He stated, “70% of Iraqi merchants deal with the platform, up from only 10%.”

The National Bank of Iraq announces the success of working with the global “Temenos” systems in compliance with the Central Bank link “Our new banking system, which was launched at the beginning of this year, will contribute to improving the efficiency of operations, which reduces the time and effort spent on completing transactions and enhances their accuracy. The system allows customers to carry out various banking transactions via the Internet or Through the mobile application, such as transferring money, paying bills, and requesting banking products,” he pointed out that “the system will also contribute to enhancing compliance with international standards and the requirements of the Central Bank of Iraq, which enhances transparency and security in banking operations.

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White House Press Secretary Karine Jean-Pierre said on Friday that US President Joe Biden will welcome Iraqi Prime Minister Muhammad Shia al-Sudani to Washington on April 15 to discuss common priorities regarding the dollar and developing the military mission.

On April 15, President Joe Biden will welcome Iraqi Prime Minister Muhammad Shia al-Sudani to the White House to coordinate on shared priorities and advance the strong bilateral partnership between the United States and Iraq.

Central Bank of Iraq": Our goal is to preserve the reputation of the banking sector link

Deputy Governor of the Central Bank of Iraq, Ammar Hamad, told News Arabia that the bank is working to lift the US ban on dealing in dollars in a number of Iraqi banks, and to preserve the reputation of the banking sector.

Prime Minister: Iraq is about to host important events and conferences link

The Prime Minister stressed that “a city the size of the capital, Baghdad, is in dire need of large hotels, due to the tourist movement and official delegations it witnesses, and the fact that it hosts many Arab, regional and international conferences throughout the year, with the hotel occupancy rate currently reaching 100%.”

Central Bank to increase the value of the dinar and control the market link

The committee discussed with the Governor of the Central Bank the approved international standards, future plans to improve the status of banks, the possibility of expanding relations with international banks, drawing up the structure of banks, and moving towards the electronic payment process, in addition to the possibility of amending the Central Bank law.

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Economic affairs specialists have identified the most prominent advantages that digital transformation can achieve in banking, placing at the forefront of these advantages the elimination of inflation through the use of small denominations, and the absorption of citizens’ hoarded cash mass, estimated at more than 95 trillion dinars, while they praised the Central Bank’s measures. In providing the appropriate ground for achieving financial digital transformation, they stressed the necessity of doubling the distribution of points of sale and working to oblige all government and private institutions to operate with electronic cards.

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A statement issued by the Presidency of the Region today, Wednesday (March 6, 2024), received by “Baghdad Today”, stated that “as part of his visit to the United States, the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, met (yesterday), Tuesday, with former US President George W. Bush.” .

During the meeting, according to the statement, Barzani expressed his "thanks and appreciation to President Bush for his support for the people of the Kurdistan region and Iraq, as well as the liberation of Iraq from the dictatorial regime, and his support for the democratic system in the country."

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Today, Sunday, the representative of the Fatah Alliance, Ola Al-Nashi, accused the US Treasury Department of obstructing the Iraqi government’s reforms in light of waving the economic card through the dollar file.

Al-Nashi told Al-Maalouma, “The economics file is more important than politics and what is happening in it, and it is the aspect that is focused on to thwart any government if it achieves successes and is able to get closer to the people.”

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The Ministry of Commerce confirmed the government's aspiration to join the World Trade Organization, especially after the Saudi representative in the organization, Saqr Al-Muqbel, was named to manage Iraq's accession file, noting that his recent visit to Baghdad contributed to addressing a number of important files.
The ministry’s official spokesman, Muhammad Hanoun, said, “Iraq has joined as an observer in the World Trade Organization since 2004, and until 2023 this accession faced many problems and challenges, the most recent of which is the failure to pay dues to join the observer organization. However, after the announcement of the government program by Prime Minister Muhammad Shia Sudanese began working again on the possibility of Iraq joining this organization, as two sessions took place and a dialogue was held with the organization by the Iraqi negotiating team headed by the Minister of Trade, Atheer Al-Ghurairi, which included all the relevant Iraqi ministries and bodies.

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Data from the Central Bank of Iraq shows a decrease in the amount of printed currency by 1.2 trillion dinars between the months of November and December 2023, while Al-Sumaria News concluded, through a historical review of the printed currency, that this decrease in the amount of currency is the third largest decrease recorded in 20 years.    According to data obtained by Al-Sumaria News, the total amount of “printed” currency in Iraq until December 2023 amounted to 101.4 trillion Iraqi dinars, a decrease from the amount of currency that was present in Iraq in November 2023, which then amounted to 102.6 trillion Iraqi dinars.

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The Prime Minister stated, according to a statement, a copy of which {Al-Furat News} received, "the importance of the partnership between Iraq and the United States, stressing the transition to a bilateral relationship governed by the strategic framework agreement between the two countries, after completing the tasks of the international coalition, according to a specific timetable."

He stressed "the necessity of stopping the war in Gaza and ending the genocidal war committed by the occupation forces, especially with the approaching month of Ramadan."

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The President of the Republic, Abdul Latif Jamal Rashid, confirmed: “Iraq has an opportunity to be one of the most advanced countries in the region.”
The media office of the President of the Republic stated in a statement: “The President of the Republic, Abdul Latif Jamal Rashid, received at Baghdad Palace, the Governor of Basra, Asaad Al-Eidani, and handed him the presidential decree appointing him as Governor of Basra, and offered congratulations on the occasion of his assuming the position of governor for a second term,” expressing his wishes for him to succeed in his term. His work tasks.

An international desire to invest in Iraq and three countries hold meetings in this regard link

Thursday, Trade Minister Atheer Al-Ghurairi revealed a wide welcome and international desire to increase investments inside Iraq, while confirming the holding of meetings with 3 countries in this regard.

During his participation in the 113th session of the Economic and Social Council, which was held at the Arab League, Al-Ghurairi said in his speech that “Iraq today seeks, within the government program of Prime Minister Muhammad Shiaa Al-Sudani, to improve the investment environment and seeks to receive private sector companies with the aim of improving the economic reality in Iraq and announcing the availability of investment opportunities.” big".

Electronic payment... Money is hoarded in homes and education is not at the required level link to the MYFX Buddies Blog

Not long ago, Iraq took the first steps towards attempts to activate the electronic payment system . These steps began by localizing employee salaries, and then installing electronic payment devices in several places, including gas stations. However, many experts and specialists still see... The culture of electronic payment is not at the required level, for many reasons, including those related to economic and electronic culture, in addition to the widespread corruption in the country, which hinders its full implementation.

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The Presidency of the Kurdistan Region announced today, Saturday, that its delegation concluded its visit to the United States of America after holding a series of meetings and encounters with senior government officials in America. The Presidency pointed out that its delegation received America’s assurance of continued support for Iraq and the region. 

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This episode contains a hodgepodge of news that happened last week up until today.

I've been away but I'm back.

According to Iraqi and American officials, Iraq prevented 14 banks in July 2023 from conducting dollar transactions as part of a broader campaign aimed at reducing the smuggling of dollars into Iran through the Iraqi banking system after a request from Washington, according to Reuters.

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 "The two presidents discussed the developments taking place in Iraq and the region," noting that they "stressed the importance of Iraq not being an arena for conflict, and the necessity of working to perpetuate everything that preserves the country's sovereignty, stability, and security."
During the discussion of the general conditions in the country and the progress of implementation of the government program, “government plans and projects for the next stage were reviewed, which aim to achieve development and improve the living and service conditions of our honorable people.”

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Advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, identified the reasons for the fluctuation of the exchange rates of the Iraqi dinar against the dollar in the local market as a  lack of control over the regulation of trade financing internally and externally and the lack of a clear trade policy previously.

Al-Nusairi attributed the continued rise of the dollar to several reasons, noting in a press interview that “the instability of the exchange rate of the dinar with its equivalent of the US dollar on the black market since January 2022

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The Parliamentary Economics Committee pointed out the dangers of the “parallel market,” while revealing “important” sessions with Central Bank of Iraq officials next week in order to coordinate and support the market. 

Parallel market risks

Today, Tuesday (January 23, 2024), a member of the Parliamentary Economics Committee, MP Briar Rashid, monitored the danger of the “parallel market” in Iraq.

Rashid said in an interview with “Baghdad Today” that “many factors contributed to creating the parallel market for the exchange of the dollar in Iraq, which is currently far from the official price set by the Central Bank at about 20 thousand dinars for every 100 dollars (the official price is 132 thousand dinars for every 100 dollars). $)".

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Al-Sudani: We are facing a new Iraq economically

Prime Minister Muhammad Shiaa Al-Sudani in the dialogue session within the work of the Davos Economic Forum held in Switzerland:  

The Iraqi people emerged victorious over the adversities that faced the country over the past years

 We are trying to take steady steps in the areas of providing job opportunities and services

We set a goal to reduce the dependence of the three budgets on oil

Al-Sudani: We are serious about scheduling the end of the international coalition’s missions in Iraq

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Today, Wednesday, the Parliamentary Finance Committee confirmed that the exchange rates of the dollar and a barrel of oil will be maintained in the budget for the current year 2024.

Committee member, MP Hussein Moanis, said in a statement to Al-Maalouma, “The government kept calculating the price of a barrel of oil, the quantity of oil exported, and the dollar exchange rate stipulated in the tripartite budget in the current year’s 2024 Without budget change.”

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Iraq is preparing  for a major change in the trade file with the countries of the world and is preparing to exceed the limits set for Iraqi goods, with its return to the World Trade Organization 14 years after it was expelled as a result of its failure to adhere to the organization’s meetings.
The head of the Kingdom of Saudi Arabia’s mission to the World Trade Organization/the Saudi Permanent Representative to the World Trade Organization and responsible for the file of Iraq’s accession to the World Trade Organization, Saqr al-Muqbel, visited Iraq today, Monday, and delivered a speech in which he reviewed the importance of joining the World Trade Organization.

UK Firms introduce new Banking Systems at National Bank of Iraq link  you can look each one of these up and see what they do too 

The National Bank of Iraq (NBI) has announced the introduction of three new banking systems.

According to Izzidin Abusalameh, Group Chief Operating Officer of Capital Bank of Jordan (majority shareholder of NBI), trade finance operations will be enhanced with the help of software from UK-based Finastra.

Additionally, both NBI and Capital Bank of Jordan have successfully implemented Transact, a core banking solution from British company Temenos.

Temenos' Payment Hub will also replace the legacy systems at NBI. 

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Prime Minister Muhammad Shiaa Al-Sudani stressed today, Sunday, the importance of using electronic card payments, while noting that it is a basic pillar of economic reform.

The Prime Minister’s Media Office stated in a statement received by Earth News, “Prime Minister Muhammad Shiaa Al-Sudani chaired a meeting devoted to following up on the financial and economic transformation to electronic payment, points of sale and financial trading with electronic cards (POS), in the presence of the Governor of the Central Bank and the Prime Minister’s advisors.” For strategic, economic and banking affairs, and Director General of Payments at the Central Bank.”

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today, Friday, revealed anticipated measures and decisions to support the dinar and maintain its strength against other currencies, and other measures that will positively affect the exchange rate, while indicating that it has taken measures in the field of gradually ending the electronic platform

From the dollar to the dinar... Iraqis complain about the deterioration of their salaries link

“I have been waiting for about four months to receive my full salary from the bank, but every time I receive half of it and have to wait two or three weeks until I receive another payment,” says Sakar Mustafa, an Iraqi journalist who works independently with international institutions.

She explains to “ Raise Your Voice ” that “her salary ranges between 1,500 and 2,000 US dollars, depending on the work she performs, but what the bank disburses to her does not exceed 1,000 dollars, which is a very small amount that is not sufficient for all of her monthly expenses, represented by house rent and school tuition.” Bills and transportation

Iran announces the start of settling its country's exports to Iraq in its national currency, the riyal link

The Governor of the Central Bank of Iran confirmed the start of a project to settle the country's exports abroad in the national currency, the riyal. On the sidelines of the meeting of the Government and Private Sector Council in Khorasan Razavi Province (northeastern Iran), Muhammad Reza Farzin explained that the issue of settling Iranian exports via the riyal currency outside the borders has been studied by the Central Bank for several months, and that its entry into force will address the requirements of exporters to Iraq and Afghanistan.

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Economic researcher, Ziyad Al-Hashemi, said on Tuesday that the Iraqi government and the central bank have exhausted and weakened the value of the Iraqi dinar in a difficult journey with the dollar.

Al-Hashemi stated in a post on the “X” platform, that “the currency that rebounds against the dollar due to a statement (a foreign ambassador), and then declines the next day due to (military strikes) here or there, cannot be considered a cohesive currency or capable of... Preserving value, but the problem is not with the currency, but rather with those who work in its name.”

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Member of the Parliamentary Finance Committee, Mudar Al-Karawi, identified three factors that control Iraq’s budget for the year 2024.

Al-Karawi said in a press interview seen by “Taqaddam” that “the volume of actual and total spending for Iraq in the year 2024 may exceed the current year, amid expectations of an increase in the exchange rate with the launch of more than 1,300 service projects nationwide,” pointing out that “the economic situation is recovering.” But very slowly due to accumulations extending over years.”

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The Kurdistan Regional Government (KRG) has issued two new guides to investment in the Kurdistan Region of Iraq (KRI):

• Doing Business In Kurdistan Region: This guide has been prepared to provide an overview of the KRI, it's economy and way of life, and introduces the financial, legal, and tax issues that are important for those considering doing business in the region. 
• Investment Guide: This guide introduces the region to investors and highlights investment opportunities in several key sectors