News — Dinar Recaps Blog Page — Dinar Recaps (2024)

Through The Dollar And The Yuan... The US Treasury Continues To Impose Its Guardianship Over The Iraqi Economy

July 16 Information/report.. The Parliamentary Finance Committee indicated earlier that it would demand that the Central Bank address the issue of the exchange rate and the flow of foreign trade through the use of the currency basket diversification system, so that there would be more options for the Central Bank and Iraqi merchants.

The currency basket system is a monetary system used by the central banks of countries to determine the exchange rate of their local currencies.

The system is based on a group of currencies chosen by the central bank of each country, and the basket consists of a group of the most powerful banknotes affecting the global economy. In an “unsuccessful” step, as experts in economic affairs describe it, the Central Bank of Iraq stopped dealing in the Chinese yuan after the US Federal Reserve accused Iraq of “inflating remittances.”

While economic experts warned of the effects of this decision on the local market and its cause of an increase in the exchange rate of the US dollar and an increase in exchange rates.

Inflation, which has negative repercussions on the economic situation of the Iraqi family, presented 3 solutions to the Central Bank of Iraq to continue the flow of remittances to China.

Through the dollar and the yuan... the US Treasury continues to impose its guardianship over the Iraqi economy Clip_image004

In the latest Iraqi government move to stop dealing in the Chinese yuan, informed sources revealed to Shafaq News Agency, yesterday, Saturday, that the Governor of the Central Bank of Iraq, Ali Al-Alaq, is making an officially unannounced visit to the United States of America to discuss with officials in Washington regarding the US Federal Reserve’s decision to stop dealing in Baghdad. In Chinese yuan.

The Central Bank of Iraq had previously strengthened its assets denominated in the yuan through the Singapore Development Bank to finance Iraqi trade and imports with China by about 12 billion dollars annually,

but the US Federal Reserve’s policy is still putting the stick in the wheel of liberating the Iraqi dinar and achieving gains at the expense of the dollar exchange rate, Therefore,

when the US Federal Reserve saw that the Chinese yuan was being used in foreign transfers,

it quickly issued a decision to stop transfers under the pretext that there were suspicions in some transfers in the Chinese yuan.

A member of the Parliamentary Finance Committee, Representative Moeen Al-Kadhimi, described the

US Federal Reserve’s decision to stop remittances in the Chinese yuan as “arbitrary” against the Iraqi economy. Al-Kadhimi said in a statement to the Al-Ma’louma Agency,

“The decision to stop transfers in the Chinese yuan was issued by the US Federal Bank due to its claim that there were suspicions about some transfers in the Chinese yuan.” He pointed out that

"the Central Bank of Iraq has contracted with an international company to evaluate and monitor remittances, and this company is a supplier of acceptance and trust for the US Federal Reserve."

He pointed out that "after a short period, the Central Bank of Iraq will resume transferring remittances in Chinese yuan to Iraqi merchants and in general," noting that "these US Federal Reserve measures are considered arbitrary against Iraq and its national economy."

For his part, commenting on this decision, the economic expert, Zia Al-Mohsen, confirmed that

“stopping dealing in the Chinese yuan by the Central Bank of Iraq is an unsuccessful step if we take into account that trade dealing with China exceeds 65 billion dollars.”

Through the dollar and the yuan... the US Treasury continues to impose its guardianship over the Iraqi economy Clip_image006

Al-Mohsen said in a statement to the Maalouma Agency,

“This decision will have a negative impact on the local market, and the demand for the dollar will increase, which means an increase in the exchange rate of the US dollar in the local market, which will increase inflation rates, which will have negative effects on The economic situation of the Iraqi family.

The Central Bank of Iraq stopped trading in the Chinese yuan after the US Federal Reserve accused Iraq of "inflating remittances."

During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on private banks and banning the dollar under many pretexts, which in one way or another led to a severe financial crisis in the local markets.

It is noteworthy that the Central Bank of Iraq also moved to strengthen its assets in the UAE dirham and negotiated an increase in its assets denominated in euros to finance trade with the European Union. Iraq also began opening bank accounts in the Indian rupee for a number of Iraqi banks. https://almaalomah.me/news/70483/economy/عبر-الدولار-واليوان-الخزانة-الأمريكية-تواصل-فرض-وصايتها-على

A Former Deputy Reveals The “Hidden”... These Are The US Federal Reserve’s Restrictions

Information/private.. On Wednesday, former member of the Parliamentary Finance Committee, Abdul Hadi Al-Saadawi, revealed the US Federal Reserve’s restrictions on the Iraqi Central Bank. Al-Saadawi said in an interview with Al-Maalouma,

“The US Federal Reserve imposes restrictions on the Central Bank of Iraq, which is a reaction to the demand to remove American forces from the country.” He added,

"America is adopting an approach with specific paths in Iraq, which is to give more leeway to the work of foreign banks at the expense of Iraqi banks."

He pointed out "the necessity of reviewing the activities of foreign banks in the country and seeking to address corruption in local banks and uncovering fake banking windows that engage in money laundering."

is noteworthy that the dollar exchange rates in the Iraqi markets witnessed a state of instability in the past days in terms of rising and then falling again.https://almaalomah.me/news/70595/politics/نائب-سابق-يكشف-المستور-هذه-قيود-الفيدرالي-الامريكي

Our Financial And Banking System And The Global Economy

Economical 07/16/2024 Samir Al-Nusairi Most of the countries of the world have been suffering from successive economic crises since 2020 until the present.

They are the harshest and most harmful to the countries’ economies than the previous crises that swept the world previously, which began with the lockdown crisis as a result of the Corona pandemic and the (stagflation) crisis due to food shortages, high prices, the Russian-Ukrainian war, and economic conflicts between... America and China, most recently the Zionist war on Gaza and the occupied Palestinian territories, expectations of a new aggression against Lebanon, the struggle to control oil prices, and the attempts of the affected countries to find plans and deals to control this rise that has occurred over the past years.

From our follow-up, monitoring and analysis of the movement of the global economy, we notice that most countries in the world have increased inflation rates and exceeded one rank, and economic growth rates have decreased, especially regional countries and most countries with major economies and even emerging countries have tried to form new axes, poles and economic blocs and conclude agreements between themselves and other countries for transactions.

Trade and finance outside the Group of Seven major countries, such as the BRICS bloc.

The central banks in most countries have taken difficult decisions in order to control the prices of their local currencies from falling and maintain their foreign currency reserves at safe rates, thus reducing stagflation and maintaining relatively stable prices and economic growth balanced with economic conditions.

Currently prevailing by raising interest rates at a rate that is commensurate with its economic situation.

Therefore, as far as the matter is concerned with Iraq’s economic situation, although the reports of the World Bank and the International Monetary Fund to evaluate the Iraqi economy for the current year indicate that the inflation rate did not exceed 3 percent, and according to what the

Central Bank announced, it is better than the inflation rates in the regional and neighboring countries and that the growth rate in output The gross domestic product for this year is expected to be 6 percent, and Iraq still maintains a good foreign exchange reserve to cover its imports and cover its local currency in circulation.

However, it is a one-sided economy and

depends on oil revenues, and

its financial and banking sector is weak and suffers from sanctions and restrictions on the use of the US dollar in foreign banking transactions, and still

Its credit rating is within limits that are internationally classified as unstable and in the absence of...

New policy measures: The public finance deficit is expected to reach 7.6 percent in 2024 and expand further after that with the expected decline in oil prices in the medium term.

As a result, public debt will almost double from 44 percent in 2023 to 86 percent by 2029.

The sector also The real sector suffers from many problems that prevent it from achieving the necessary revenues to reduce the share of oil revenues in public budgets.

This means that the deficit in the balance of payments and the deficit in the trade balance are prevalent despite the fact that the government, finance and central bank are making great efforts to rebuild a solid and solid banking sector because

without the existence of a sector With developed banking, it is not possible to build a sound national economy.

The inherited and complex problem is the weak compliance of the Iraqi financial and banking sector with international standards, and the

foreign trade policy is unclear despite the measures taken by the Central Bank to regulate trade financing and the accreditation of some reputable foreign registered banks, but the

presence of informal border crossings and intra-trade is not Legitimate speculators in the foreign exchange trading market have led to fluctuations in exchange rates from time to time.

For the purpose of the Central Bank exercising its role in

reducing inflation,

controlling the general level of prices,

maintaining the dinar exchange rate within its target limits,

controlling the interest rate, and

maintaining its foreign cash reserves within the required rates, as well as

controlling the money supply, and certainly

all of these aspects are within the goals and interests of the Central Bank.

Its Board of Directors during the next stage and for the purpose of avoiding the harm that currently threatens the global economy.

This requires taking bold steps, as follows:

First - reconsider the structure and presentation of the general budget and determine the contribution percentages of the agricultural, industrial, tourism sectors and non-oil revenues at no less than 30 percent during the coming years until 2030.

The total expenditures must not exceed the total revenues in any case and the deficit must be zero.

Second - Adopting agricultural, industrial and commercial policies that are consistent with the trend to support and support the private sector and stimulate and encourage it to contribute to sustainable development projects and move to market leadership in 2030.

Third - Recreating a new strategy for the Central Bank for the years (27-2030) in the field of

monetary policy applications,

enhancing financial inclusion,

controlling exchange rate stability,

enhancing compliance with international standards,

comprehensive application of digital transformation in the banking sector, and

transforming Iraqi government banks into mixed joint-stock companies

in accordance with government procedures in this regard. Relevant and internationally classified.

It is managed in accordance with

modern banking techniques,

lifting sanctions on private banks,

developing their work in accordance with international standards,

not allowing the weak ones to remain working within the banking market, and

adopting the principle of competing for whichever is better and serving sustainable development.

https://alsabaah.iq/99579-.html

To read more current and reliable Iraqi news please visit:https://www.bondladyscorner.com/

Good Afternoon Dinar Recaps,

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1. The project acquires a certain amount of physical gold and stores it securely in its deposits.

2. The company issues tokenized gold coins, the cumulative number and value of which equal the amount of gold in its vaults.

3. The coins get into circulation and are used by traders, project users, buyers, and sellers. Their price is stably pegged to the price of gold, and in some cases, the coins may be exchanged for the respective amount of physical gold at any moment the owner claims such a possibility.

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Hong Kong to Prepare Stablecoin Legislation as Public Consultation Ends

The Financial Services and theTreasury Bureau (FSTB)and theHong Kong Monetary Authority (HKMA)published the results of a consultation, and concluded that the stablecoin regime would"primarily focus on representations of value which rest on ledgers that are operated in a decentralised manner"in which "no person has the unilateral authority to control or materially alter its functionality or operation."

The consultation paper for stablecoin guidelines published at the end of last year received 108 submissions from stakeholders. The regulators plan to take suggestions from respondents before finalizing the bill for the legislative process.

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BRICS Overtake US and G7 According to IMF: Is it the end of Bullying?

Fastepo: 7-17-2024

In recent years, the BRICS countries have shown remarkable economic dynamism, often outpacing the traditional economic powerhouses of the G7. This trend is highlighted in the latest International Monetary Fund (IMF) World Economic Outlook report, a key publication from one of the major Western-led financial institutions which is released on July 16th, 2024.

According to the IMF's projections for 2024-2025, these emerging markets are not only recovering robustly from the global disruptions of the past few years but are also establishing themselves as pivotal engines of global growth.

The IMF report underscores a significant shift in the global economic landscape. While advanced economies such as those in the G7 are expected to maintain steady but modest growth rates, the BRICS countries and their emerging market peers are projected to experience much higher growth trajectories.

In this video, we delve into discuss the details of this report by comparing BRICS countries against G7. This divergence in growth rates is not just a temporary phenomenon but a reflection of deeper structural changes and strategic economic policies in these emerging markets.

The BRICS nations and their allies are leveraging their large populations, growing middle classes, and strategic investments in infrastructure and technology to boost their economic performance. In contrast, the G7 countries are grappling with aging populations, slower productivity growth, and the lingering effects of the financial crises and economic uncertainties.

As the IMF report indicates, the global economic center of gravity is gradually shifting towards these dynamic emerging markets.

This shift is likely to have profound implications for global trade, investment, and geopolitical relations. The sustained higher growth rates in the BRICS and other emerging economies highlight the increasing importance of these countries in driving global economic progress and underscore the need for a more inclusive and representative global economic governance structure.

https://www.youtube.com/watch?v=bI9ScJNF-6k

TNT:

Tishwash: this video is not coming from the CBI or iraq this video is from Saudi Arabia just fyi

Video that Frank showed tonight

This is the information they have typed below the video on Youtube

“The project to delete zeros from the currency is still in place,” this was confirmed by the Governor of the Central Bank, Ali Al-Alaq, in his latest statements about the project to delete three zeros from the Iraqi dinar. So what does that mean?

The policy of deleting zeros from the currency means, for example, that the value of a one-thousand note is 1,000 dinars, and will be replaced by a note worth one dinar of the new currency.

Iraq is not the only country that resorts to the policy of deleting zeros from the currency, but there are seventy-70 cases that the world has witnessed since the year one thousand nine hundred and sixty 1960, including

Türkiye: Deleted six zeros from its currency in 2005

Zimbabwe: deleted twelve 12 zeros from its currency in 2009.

And Venezuela: Five zeros were deleted in 2018

But how will the Iraqi economy be affected by deleting the zeros if it is implemented? Although the actual value of the money that people own does not change after deleting the zeros, this step contributes to simplifying the buying and selling processes for individuals and companies.

It makes financial amounts simpler and more understandable. Instead of dealing with huge numbers such as one million 1,000,000 Iraqi dinars, they can be converted into one thousand 1,000 dinars only after deleting three zeros.

Removing zeros may also help in issuing small currencies such as coins, enabling small commodities to be repriced at lower prices. It gives a positive psychological boost to citizens that the Iraqi dinar can now buy more goods and services.

Therefore, countries aim by deleting the zeros to restore confidence in the local currency among citizens and investors

The demand for it increases, and the local currency becomes more competitive with foreign currencies and its exchange for other currencies decreases.

The policy of deleting zeros is often linked to broader economic reforms, such as raising interest rates on bank deposits, to encourage people to save within banks and benefit from high interest on their bank deposits, in an attempt to withdraw liquidity from the market, reduce consumption and decline in prices.

Then exploit this liquidity to expand productive projects, attract local and foreign investments within the country and create many job opportunities to eventually revive the local economy.

But on the other hand, deleting the zeros may cost Iraq money to print new banknotes to no avail. For example, after eliminating 3 zeros from the Iraqi dinar, when we talk about a 200 dinar banknote, it is actually equivalent to 200,000 dinars.

Therefore, it may be necessary to print 4 more 50 dinar notes instead of the 50,000 dinar note.

However, this may not have a clear impact on improving the local economy if it is not part of an economic reform package that helps reduce the amount of money circulating among people and stimulate the economy.

Especially since Iraq's economy is an oil economy that needs to stimulate other productive sectors to drive the local economy

Could deleting the zeros from the Iraqi dinar be a real start to stimulating Iraq's economy?

https://youtu.be/kTL-jZko4GE

Tishwash: Iraq and Vietnam discuss tea farm mechanisms and ways to develop them

The General Company for Foodstuff Trading at the Ministry of Trade discussed with the Vietnamese side the mechanisms of the tea farm and ways to develop it.

Indicating that "during the meeting, the Vietnamese side was asked to prepare technical and financial studies regarding the development of the work, which expressed its satisfaction with the level of accuracy and transparency in the dealings adopted by the General Company for Foodstuff Trading, which contributed to obtaining positive results for both parties." link

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This is the volume of our trade with Iran.. An economist reveals the reasons for the dollar problem inside Iraq

Economic expert, Munir Al-Abidi, revealed today, Tuesday (July 16, 2024), the volume of trade between Iraq and Iran, while indicating that the dollar problem in Iraq is not due to official trade.

Al-Obaidi said in a clarification he published on Facebook, which was followed by "Baghdad Today", "The Iranians say that our trade with Iraq during three months amounts to 3 billion dollars, distributed as 1.2 billion to meet the need for gas, 700 million dollars for electricity, while 200 dollars are for food, and another 200 million for iron trade."

He added, "This means that the value of food and iron during the year amounts to only 1.5 billion dollars annually," indicating that "some say that our trade with Iran amounts to 12 or 14 billion dollars, which is the reason for the dollar crisis."

Al-Obaidi said, "Our official trade for the private sector does not exceed 3 billion dollars with Iran and does not exceed 300 million dollars with Syria," stressing that "the problem with the dollar is not the official trade with Iran and Syria."

He pointed out that "the problem of the demand for dollars in the local market is to cover the needs of other types of informal and illegal trade, most notably drugs," stressing that "all this fuss, crying and wailing in the channels is to reopen the money channels for this trade link

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Tishwash: Drones target Ain al-Asad Air Base in western Iraq

Two drones targeted the vicinity of Ain al-Asad Air Base in western Iraq, where Global Coalition forces are stationed, an Iraqi security source reported on Tuesday evening.

The source, speaking to Shafaq News Agency, confirmed the attack but did not provide further details on casualties or damage.

Earlier this year, factions within the Islamic Resistance in Iraq (IRI) had announced a halt to operations against US forces in Iraq, leading to a period of relative calm.

This drone attack marks a resumption of hostilities.

IRI refers to Tehran's military allies in Iraq, such as Kata’ib Hezbollah and Harakat Al-Nujabaa, it is a part of the "Axis of Resistance" alongside Lebanon's Hezbollah, Yemen's Ansarallah (Houthis), and other Iran-backed factions.

All groups within the Axis have declared that their attacks will persist until a ceasefire is achieved in the Gaza Strip, where Israel's actions have resulted in the deaths of over 39,289 Palestinians, predominantly children and women. link

Mot: This Journey Has Been Really Hard on My Fairy GodMother!!!.........

When I Started the Journey

An Expert Reveals The Reasons For The Return Of The Dollar’s ​​Price Rise.. What Is The Relationship With The “Chinese Yuan”?

Economy |An expert reveals the reasons for the return of the dollar’s ​​price rise.. What is the relationship -31-3-2023 Baghdad Today - Baghdad

Today, Wednesday (July 17, 2024), the economic and financial affairs specialist, Nawar Al-Saadi, revealed the reasons for the return of the rise in the dollar exchange rate in local markets.

Al-Saadi said in an interview with Baghdad Today, "The rise in the price of the dollar in Iraq is due to a group of complex and intertwined factors, the first of which is the decision of the Central Bank of Iraq to stop dealing in the Chinese yuan after the US Federal Reserve accused Iraq of inflating remittances, which directly affected the local market."

He explained that "this decision prompted traders and companies that were relying on the Chinese yuan in their commercial transactions with China to resort to the US dollar as an alternative, which increased the demand for the dollar and raised its price. In addition, the US sanctions imposed on some Iraqi banks reduced the flow of dollars to the market, which reduced the supply and increased the demand for it."

The economic and financial expert added, "The rise in the price of the dollar naturally leads to an increase in inflation rates in the country, which negatively affects the purchasing power of Iraqi families and increases the complexity of the economic situation."

The past two weeks have witnessed a significant increase in the exchange rate of the US dollar against the Iraqi dinar, with the 100 US dollar denomination reaching more than 150,000 dinars.

On Monday (July 4, 2024), the Central Bank of Iraq issued new instructions regarding granting US dollars to travelers, indicating that these instructions will come into effect starting from July 14.

According to the statement issued by the bank, it was directed to Rafidain, Rashid, and Iraqi Trade Banks, exchange companies currently operating at airports, and exchange companies of category A and B , that "in order to ensure that travelers receive cash dollars and to prevent exchange companies from passing improper transactions, it was decided to set 7/14/2024 as the final date for starting the mechanism of granting dollars to travelers at airports exclusively."

According to the Central Bank, the aforementioned banks and exchange companies operating at the airport are entitled to a fixed commission of (15,000) dinars from the customer for each transaction, and the exchange companies outside the airport collect it for the benefit of the companies and banks operating at the airport, according to a mechanism determined between the two parties, the banks and companies operating at the airport and the exchange companies outside the airport. LINK

Al-Sudani Stresses The Need For Real Reforms In The Economy And The Correct Direction Of Resources

Posted On 2024-07-17 By Sotaliraq 2024/07/17 Hussein Al-Saadi: Prime Minister Mohammed Shia Al-Sudani stressed the need for real reforms in the economy and the correct direction of resources, while stressing the need for private sector companies to adhere to the retirement and social security law for workers. The

Prime Minister's media office stated in a statement: Prime Minister Mohammed Shia Al-Sudani chaired a meeting of the Ministerial Council for the Economy, during which the most important decisions related to economic affairs were discussed, and work within the framework of the basic determinants of financial and administrative reform included in the government program.

He added that the meeting hosted a group of businessmen specializing in the oil industries, as His Excellency affirmed the government's support for the active private sector, and its belief in its ability to support the Iraqi economy by providing job opportunities, and establishing a national industry that meets the needs of the local market, indicating that there are practical steps to achieve this support, as it is the only option for the government to cover the needs of citizens, and achieve the requirements of reconstruction and services, in implementation of the government program.

Al-Sudani stressed the need for private sector companies to adhere to the retirement and social security law for workers; In order to expand their care in this sector, and increase the number of insured persons, stressing the importance of carrying out real reforms, and directing resources in the right direction, so that reliance on oil revenues does not continue as the sole source of income, and meeting the requirements of the operational and investment budget.

The statement continued that the Council discussed the work of the Diwani Order Committee (24573 in 2024) on studying the economics of oil and gas in the country, leading to the adoption of showing the real costs along the value chain, according to economic foundations.

He continued that “it was decided, during the meeting, to find a mechanism for marketing petroleum products expected to increase in the coming years, and to audit the quantities of petroleum derivatives supplied to factories and plants by the Financial Supervision Bureau, as well as to know the size of the current support for factories, and the amount of benefit achieved from it, in addition to evaluating factories according to production capacity and actual production and the extent of compliance with controls.

He continued by saying: It was also decided that the government support provided to companies would be based on the products, the number of insured workers, and the factory’s ability to export according to a specific mechanism. A committee was formed that includes the Ministries of Oil and Industry, the Investment Authority, and National Security to follow up on the work of the factories and verify the information. It was also decided, during the meeting, to grant brick factories a period of one and a half years to convert their accreditation from black oil to liquefied gas. LINK

International Oil Companies Involved In Oil Smuggling Network In Kurdistan Region

Money and business Economy News - Follow-up More than a year has passed since the Kurdistan Region was banned from exporting its oil through oil pipelines, but crude oil is still flowing from the region on tanker trucks towards the border with Iran.

She told Reuters, in a report translated by "Al-Eqtisad News", that "there are more than 1,000 tanker trucks transporting at least 200,000 barrels per day of Kurdish oil to both Iran and Turkey."

Although the price of crude oil smuggled from the semi-autonomous northern region is reportedly around $40 a barrel in these shady deals, the trade is lucrative, especially when compared to the difficulties the Kurdistan Regional Government has experienced after being deprived of oil revenues over the past year.

Reuters estimates that oil smuggling generates revenues for the region of about $200 million per month.

These estimates came after the World News Agency correspondents contacted more than 20 people, including oil engineers, oil industry sources, traders, government officials, politicians and diplomats.

Some of them said that the oil smuggling was likely taking place with the knowledge of the provincial and federal governments. When the oil reaches Iran, it is loaded onto ships at Iranian ports in the Gulf, such as Port Imam Khomeini and Bandar Abbas, or transported by land to Afghanistan and Pakistan.

The ban on oil exports to Turkey, which amounted to about 450,000 barrels per day, from the territory of the Kurdistan Region of Iraq via the pipeline, came in March 2023 due to disagreements over who should issue permission to export Kurdish oil.

The ruling, issued by the International Chamber of Commerce in March 2023 after a dispute between Turkey and Iraq over Kurdistan’s oil, deepened the region’s wounds. It ruled in Iraq’s favor, and prevented Turkey from allowing Kurdish oil to be exported through the Iraq-Turkey pipeline and the Turkish port of Ceyhan without the approval of the Iraqi federal government.

After this decision, the Iraqi Oil Marketing Company SOMO became the sole owner of the right to sell crude oil produced anywhere in Iraq.

Reopening the pipeline to Ceyhan on Turkey's Mediterranean coast does not appear to be a priority for politicians in Baghdad.

Norway’s DNO, a six-member oil company in the Kurdistan Petroleum Industry Association (APIKUR), said in November 2023 that international companies operating oil fields in Kurdistan would not produce oil for export until payments and future terms of sales and purchases were clarified.

While some companies have started to resume oil production for the local market, oil industry sources told Reuters that local buyers, who are allowed to buy crude, are selling the oil through middlemen who then export it without the knowledge of international companies about the resale.

Estimates from various Reuters sources range from 200,000 barrels per day (bpd) to more than 300,000 bpd. The smuggled oil is being added to Iraq’s oil supply. Iraqi officials have privately suggested that the trade is one of the reasons why Iraq, OPEC’s second-largest producer, has so far failed to cap its output under the OPEC+ deal.

The Iraqi government has not committed to the current cuts, despite its continued pledge that it will show better commitment in the future.

Compensation plans have been put in place for both Iraq and Kazakhstan, which also failed to meet their quotas. In the period from January to March 2024, Iraq produced 602,000 barrels per day above its quota, according to OPEC estimates.

Iraq has been capped at 4 million barrels per day (bpd). But Iraq pumped 4.189 million bpd in June, down 25,000 bpd from May, OPEC secondary sources said in their latest monthly report this week. That’s still about 200,000 bpd above the OPEC+ target.

133 views 2024/07/17 - https://economy-news.net/content.php?id=45313

To Rein In The Dollar...The Central Bank “Confuses” Dinar Accounts

July 16, 2024 Baghdad/Iraq Observer The exchange rates of the dollar against the dinar rose today, Tuesday, on the main stock exchange in the capital, Baghdad.

Dollar prices on the Kifah and Harithiya stock exchanges recorded 149,000 dinars for every 100 dollars.

Prices in exchange shops in Baghdad markets also witnessed an increase, as the selling price reached 150,250 dinars, while the purchasing price reached 148,250 dinars for every 100 dollars.

In turn, the Central Bank of Iraq announced a new mechanism for travelers to receive foreign currency “dollars,” which will be exclusively through corporate and bank outlets at international airports, stressing that the goal of the new mechanism that will come into effect on July 14 is for the dollar to reach the real traveler.

The bank stated: “It facilitates proper transactions, as well as facilitating travelers’ access to the dollar faster.”

More Than One Share

It is noteworthy that the Central Bank allowed exchange companies to receive more than one share during the week in order to fully respond to travelers’ requests.

In turn, economists commented on the Central Bank’s decision by saying:

“The Central Bank’s announcement of stopping remittances using the Chinese currency and using the dollar, in addition to the continuing demand to deal with Iran in the dollar, and

this matter will lead to great momentum on the dollar.”

While they warned against linking the dollar to Baghdad International Airport, because it will exacerbate the rise of the dollar, and we will witness confusion in the local markets that are suffering from stagnation at the present time.

They pointed out that the rise in the dollar exchange rates remains dependent on the behavior of the Central Bank and the extent of its responses to it, and the

recent rise of the dollar came after the decision of the Central Bank of Iraq to transfer the operations of travelers obtaining the dollar exclusively through Baghdad Airport. According to a report,

“Airports are not prepared to receive this large number of companies;

There are many companies that sell the dollar, and if they are limited to only 6 offices,

it will be useless and the citizen will not be able to obtain the dollar, and previous experiences confirm this.

Where Is The Central Bank Spokesman?

Observers were surprised by the lack of an official spokesman despite his presence in all state ministries.

This is one of the problems with the Central Bank, which announced the procedures and results of the visits conducted by the governor to Washington.

All statements are confusing and confused due to the lack of accuracy and correct official information.”

In this context, the Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Saleh, confirms:

“The exchange rate in the parallel market does not affect the stability of the general level of prices. While he pointed out that the

parallel exchange market has begun to affect a narrow economic scope, he pointed out that the

stability of the dinar’s exchange rate against... The dollar is real and solid.”

Two Factors, Internal And External

Saleh said in a statement followed by the Iraq Observer Agency:

“There is an international factor that imposes controls on what is called banking compliance in financing the demand for dollars from our country’s international bank accounts in foreign currency, and

there is also an internal factor that benefits from the actions and pressure of the external factor in order to obtain profitable gains.” “Determined or emergency, especially in cash dollar transactions.”

He points out that:

“The dominance of the fixed exchange rate system in Iraq, which is based on a base of international reserves, is the highest in the history of Iraq and its monetary policy, as

the foreign currency covers a percentage of more than 100 percent of the total currency currently exported.”

He continued: “Through the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market in our country does not constitute any relative importance in affecting the stability of the general level of prices,

which have become stable in their components and trends as a result of the influence of the official exchange rate factor that prevails and currently dominates the exchange rate.” Financing “import” foreign trade, amounting to 1,320 dinars per dollar, is responsible for financing 90 percent of Iraq’s foreign trade. He stated,

“The stability of the official exchange rate leads to stability in the stable external value of the dinar, which is embodied in the state of stability in the relative prices of goods and services, as annual inflation in our country does not exceed only 3 percent, and

this is what was indicated in the reports of multilateral international financial and economic organizations.”

The Strength Of Foreign Reserves

Saleh added, “In light of the strength of the foreign reserves supporting the Iraqi dinar, whose value as liquid foreign assets exceeds $100 billion, the official exchange market, as a general trend, will remain dominant in containing any noise with ambiguous information that is affected by the parallel exchange market in short periods, due to political events.” “International or regional emergency.” He stressed,

“After the decline of the phenomenon of dollarization in internal transactions, especially in contracts, obligations and payments within the country since last year and its legal ban, the parallel exchange market has begun to have its general effects only on a narrow economic scope of prohibited transactions, practiced by informal markets and at a rate of 10 percent of Total supply and demand transactions for the currency.”

He pointed out, “The stability of the exchange rate of the dinar to the dollar that the country is witnessing, even in the secondary markets, is a real and well-established stability. Rather,

it is derived from the strength of the influence of the price and quantitative factors of the monetary and financial policies and their integration in imposing overall price stability in the country, and containing the inflationary expectations that it was causing.” Parallel exchange market forces over the past years.” https://observeriraq.net/لكبح-جماح-الدولار-البنك-المركزي-يربك/

Has The Battle To Eliminate The Corrupt In Institutions Begun?

July 14, 2024 Baghdad/Iraq Observer The theft of the century case, which was revealed in mid-October, raises intense anger in oil-rich Iraq, where corruption is rampant.

Although corruption is widespread in all state institutions in Iraq, the trials taking place in these cases have begun to become active, and if they occur, they target officials, whether junior or senior.

Stealing The Century

The day before yesterday, an informed source revealed the completion of the results of the investigations into what he described as “the

theft of the century,” as it was discovered that

billions of dinars were stolen by some employees in the local administration in Diyala Governorate, while he explained that

the results are currently ready, but they cannot be revealed to the public opinion. Public only after obtaining approval from higher authorities in Baghdad. He stated that

there are three main reasons behind the delay in announcing the final results, including the

complications associated with embezzlement and theft operations, and the

efforts made to recover the stolen funds and track down those involved, pointing out that the

general security conditions in Diyala also contributed to the delay in the official announcement.

The source added that the results clearly show the circ*mstances of the “theft of the century,” and the

identity of those involved in it has been identified, with

details currently being kept secret until the appropriate conditions for public disclosure are in place.

The acting governor of Diyala, Karim Ali Agha, announced in a press conference last April that the stolen amounts amounted to 7 billion and 394 million dinars, noting that the

embezzlement operations began in 2019, and

a number of those involved were arrested after identifying them and issuing arrest warrants against them.

It should be noted that investigations are still ongoing, and

it is expected that the official announcement of the results will be made after the formation of the local government in Diyala or at a specific later date.

Anti-Corruption

Yesterday, Prime Minister Muhammad Shiaa Al-Sudani made a visit to the headquarters of the Federal Integrity Commission.

While chairing a meeting, Al-Sudani

pointed out that the Integrity Commission represents an essential tool in implementing the government program and the priority of combating corruption,

praising the distinguished efforts of the Commission’s workers,

which have established hope among the general public that there is a real will to combat financial and administrative corruption.

Al-Sudani touched on the issue of the theft of tax deposits, which represents a black point in the state’s history due to the nature and size of the money stolen and under official cover, in collusion with state employees, and

half of this money was smuggled out of the country, stressing “continuing efforts to recover it.”

He stated, “The work of the Commission is clearly different from the previous stage,

stressing the necessity of continuing the same professional path in work, especially since public opinion was concerned about selectivity in combating corruption and the political nature of opening files, as happened in the Diwani Order Committee 29, which is what happened.”

It no longer exists, as work today is being carried out in accordance with the law and in cooperation with the executive and judicial authorities.”

Fault Handling

Al-Sudani stressed “the necessity of quickly addressing any defect that appears among integrity employees, and refusing any employee to exploit his position, especially if he is charged with oversight and protecting integrity,” stressing that

he “communicates daily with the Integrity Commission and its head for follow-up and directives.”

The Prime Minister directed all officers and commanders to “submit a statement of their financial liabilities.

He also directed all departments to continue setting and updating standards for the use of bribery by surveying the opinions of citizens, and providing a periodic position on the ministries’ procedures on the subject of integrity, and the speed of responding to the subject of information received.”

REDUCED BRIBERY

The Ministry of Interior said on Sunday that our forces carried out an important operation that resulted in the killing of terrorists in Diyala Governorate, while noting that

the intelligence agency arrested 34,000 people during the first half of this year.

According to the Ministry of Interior: 7,705 people accused of drug trafficking were arrested, while

it confirmed a decrease in premeditated murder crimes by 13% compared to last year.

It indicated a decrease in bribery by 10% and fraud by 8%. https://observeriraq.net/هل-بدأت-معركة-زوال-الفاسدين-من-المؤسسا/

Iraq Resumes Negotiations To Join WTO

Amr Salem July 16, 2024 Baghdad (IraqiNews.com) – The Iraqi Minister of Trade, Atheer Al-Ghurairi, declared on Monday that discussions to join the World Trade Organization (WTO) had resumed after more than a 16-year break.

A statement issued by the Trade Ministry revealed that Iraqi negotiating teams began their preparatory meetings at the WTO’s headquarters in Geneva, Switzerland, in preparation for the third meeting that will discuss Iraq’s accession, the Iraqi News Agency (INA) reported.

During his participation in the 13th Ministerial Conference of the WTO held last February in the UAE capital, Abu Dhabi, Al-Ghurairi affirmed that

Iraq fulfilled the conditions necessary to become a member of the WTO following the completion of economic reforms and the enhancement of the investment climate.

The Iraqi Trade Minister indicated that Baghdad finalized issues related to goods and services in accordance with the deadlines set for integration into the international trade system.

The Iraqi government expressed interest in joining the WTO after submitting a request to do so in 2004.

Iraq needed to be a member of the multilateral international trade system in order to regain its place as a major player in the global economy.

In addition to debating the future of the global trade movement in light of current challenges, Al-Ghurairi said that the conference sends a strong message to the countries of the world about the value of joining this organization.

The Iraqi official added that Iraq is attempting to expand its commercial and economic connections around the world in order to create new opportunities for collaboration.

https://www.iraqinews.com/iraq/iraq-resumes-negotiations-to-join-wto/

To read more current and reliable Iraqi news please visit :https://www.bondladyscorner.com/

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100 Days to the BRICS Summit: What You Need to Know Now

Think BRICS: 7-15-2024

100 Days to the BRICS Summit: What You Need to Know Now! This video provides exclusive insights analysis on the upcoming BRICS Summit 2024 in Kazan.

Discover how the BRICS bridge and alternative payment system will reshape global economics. Tune in as we discuss the BRICS Parliament, the newly proposed grain exchange, and the ambitious BRICS expansion plans.

Our experts reveal the latest BRICS news and debunk common BRICS fake news, ensuring you get the most accurate information. This live stream, part of our Think BRICS series, is your go-to source for comprehensive updates.

We explore the Think BRICS partnerships with the BRICS+ University Association and the BRICS+ Development Group and their significance in the evolving geopolitical landscape. This video covers critical topics that will be discussed at the Kazan Summit.

In this live stream, we revisit key topics from past videos and provide fresh perspectives on what to expect at the BRICS Summit in Kazan this October. From policy changes to new initiatives, get a complete understanding of the strategic moves by BRICS countries.

While this video offers an in-depth analysis of various aspects of the BRICS Summit 2024, it does not delve into the detailed history of the BRICS nations. We focus on the upcoming summit and future developments rather than past events

https://www.youtube.com/watch?v=R72CocwIc9s

One MAJOR Financial Domino Left to Fall: Tavi Costa

Daniela Cambone: 7-15-2024

"We’re close to a major domino falling in the next six to nine months," predicted Tavi Costa, macro strategist at Crescat Capital.

He explains to Daniela Cambone that the equity markets are likely to be the next to feel the economic repercussions driven by the higher cost of capital, which will impact the valuation of companies.

"Ultimately, I would say that we're going back to a world where investors pay closer attention to profitability,” he stresses. Costa also remains firm on his recession outlook. “You can plug in so many charts—yield curve versus unemployment rates, initial jobless claims, continuing jobless claims.

You can see that clearly, the steepening of the yield curve from inverted levels is a very negative signal for the economy,” he explains.

Watch the compelling video to learn more about Costa’s views on the economy.

https://www.youtube.com/watch?v=ysi6FBVNnpI

How They Can Print Money in Secret Without QE

Heresy Financial: 7-15-2024

TIMECODES

0:00 Video Overview

1:39 Treasury Buyback

4:16 Rule Changes for Bank Leverage Ratios

6:39 Balance Sheet Composition Shuffle

10:31 Stealth QE and the Long-Term Debt Cycle

https://www.youtube.com/watch?v=nkxAxG2RzN0

Dollar Fluctuates Amid Tight Monetary Authority Measures

Economic 2024/07/16 Dollar fluctuates amid tight monetary authority measures 678 , days before the implementation of the Central Bank’s decision to sell dollars exclusively to travelers at airports, the dollar exchange rates witnessed clear fluctuations in the parallel markets, as they exceeded the barrier of 150 thousand dinars for every 100 dollars, a number that specialists see as possible (stability or decline) in the coming periods as a result of the Central Bank continuing to meet the requirements of foreign trade, which could lead to a decline in the effects of the parallel market, stressing the need to double efforts to make the new experiment of granting travelers dollars a success for fear of the continued rise of the green currency.

The Central Bank's decision to grant the green currency exclusively to airport travelers has come into effect, amid anticipation of the continued fluctuation of the exchange rate in the parallel market, which observers fear will affect the purchasing value of prices, while the Prime Minister's Advisor for Financial Affairs, Dr. Mazhar Mohammed Saleh, sees the opposite, as he explains that through "the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market does not constitute any relative importance in affecting the stability of the general price level, which has become stable in its components and trends due to the influence of the prevailing official exchange rate factor."

Amidst this, economic experts believe that among the tools for controlling exchange rates are the recent measures represented by introducing the Customs Data Automation Program (ASYCUDA) system, stressing that this important government measure is an essential part of limiting the rise in the dollar price in the parallel market.

Financial Affairs Advisor, Dr. Mazhar Muhammad Salih, said yesterday, Sunday, in a statement to the Iraqi News Agency (INA): "There is an international factor that imposes controls on the so-called banking compliance in financing the demand for the dollar from our country's international bank accounts in foreign currency, and there is also an internal factor that benefits from the actions and pressure of the external factor in order to obtain temporary or emergency profit gains, especially in cash dollar transactions."

He explained that "the dominance of the fixed exchange rate system in Iraq, based on an international reserve base, is the highest in the history of Iraq and its monetary policy, as foreign currency covers more than 100 percent of the total currency currently issued."

He continued: "Through the strength of the official central exchange market, the exchange rate of the dollar to the dinar in the parallel market in our country does not constitute any relative importance in influencing the stability of the general price level, which has become stable in its components and trends as a result of the influence of the prevailing and dominant official exchange rate factor currently in financing foreign trade (imports), amounting to 1320 dinars per dollar, which is responsible for financing 90 percent of Iraq's foreign trade."

He stressed that "after the decline of the dollarization phenomenon in domestic transactions, especially in contracts, obligations and payments within the country since last year and its legal prohibition, the parallel exchange market has become such that its general effects only form a narrow economic scope of prohibited transactions, practiced by informal markets and at a rate of 10 percent of the total supply and demand transactions for the currency."

He pointed out that "the stability of the dinar to dollar exchange rate that the country is witnessing even in secondary markets is a real and solid stability, and is derived from the strength of the impact of the price and quantitative factors of the monetary and financial policies and their integration in imposing overall price stability in the country, and containing the inflationary expectations that were caused by the parallel exchange market forces during the past years."

It is noteworthy that the Central Bank's sales of hard currency last week amounted to more than one billion dollars through the currency auction that was held over four days, at a daily rate of 272 million and 80 million and 368 dollars, while sales of foreign remittances recorded 991 million and 141 thousand and 473 dollars, which indicates, according to specialists, the possibility of achieving clear relative stability in the various prices of goods and materials, and their not being affected by the parallel exchange rate.

The new mechanism for granting the "dollar", according to the Central Bank, aims to provide foreign currency to the real traveler and pass sound transactions, in addition to facilitating travelers' access to the dollar faster.

According to the "Monetary Authority", the mechanism includes the traveler going to authorized exchange companies spread across all cities to deliver the amount in dinars equivalent to the citizen's share of the dollar according to the official exchange rate of the Central Bank of Iraq.

The company will enter the data of the traveling citizen and upload his name on the electronic platform of the Central Bank of Iraq and deliver him a receipt confirming his deposit of the dinar, to receive the cash dollar inside the airport exclusively.

In turn, the economic expert Dr. Nabil Al-Marsoumi, during his interview with "Al-Sabah", sees the existence of several closely related factors that contribute to the rise in the exchange rate, some of which are real and others are psychological, as the real factors are represented by stopping bank transfers in the Chinese yuan due to suspicions of corruption on the subject, in addition to stopping the injection of cash dollars into the parallel market and the new procedures of the Central Bank that limit sales to air ports and airports.

The expert Al-Marsoumi attributed the reasons for the fluctuations to the launch of the general budget for the year 2024 and the approval of the budget schedules, as this leads to an increase in public spending in its operational and investment aspects, which naturally leads to an increase in consumer demand and an increase in investment demand, and thus an increase in imports and an increase in pressure on the dollar.

Regarding psychological factors, the spokesman indicated that "the fears among citizens went towards the possibility of the dollar rising in the near future, and therefore there is a great rush to buy it from the parallel market, which caused its exchange rate to rise by 3 to 4 percent, expecting that "the market will calm down soon as a result of several factors, most notably the negotiations that the governor of the Central Bank may conduct in Washington regarding bank transfers."

This Is The Volume Of Our Trade With Iran.. An Economist Reveals The Reasons For The Dollar Problem Inside Iraq

Economy |Baghdad Today – Baghdad Economic expert, Munir Al-Abidi, revealed today, Tuesday (July 16, 2024), the volume of trade between Iraq and Iran, while indicating that the dollar problem in Iraq is not due to official trade.

Al-Obaidi said in a clarification he published on Facebook, which was followed by "Baghdad Today", "The Iranians say that our trade with Iraq during three months amounts to 3 billion dollars, distributed as 1.2 billion to meet the need for gas, 700 million dollars for electricity, while 200 dollars are for food, and another 200 million for iron trade."

He added, "This means that the value of food and iron during the year amounts to only 1.5 billion dollars annually," indicating that "some say that our trade with Iran amounts to 12 or 14 billion dollars, which is the reason for the dollar crisis."

Al-Obaidi said, "Our official trade for the private sector does not exceed 3 billion dollars with Iran and does not exceed 300 million dollars with Syria," stressing that "the problem with the dollar is not the official trade with Iran and Syria."

He pointed out that "the problem of the demand for dollars in the local market is to cover the needs of other types of informal and illegal trade, most notably drugs," stressing that "all this fuss, crying and wailing in the channels is to reopen the money channels for this trade." LINK

Parliamentary Finance Committee Comments On US Decision To Stop Iraq's Transactions In Chinese Yuan

Posted On2024-07-16 By Sotaliraq Member of the Parliamentary Finance Committee, MP Moeen Al-Kadhimi, described today, Tuesday, the decision of the US Federal Reserve to stop transfers in Chinese yuan as “arbitrary” against the Iraqi economy.

[size=45]Al-Kadhimi said in a statement, "The decision to stop transfers in the Chinese yuan was issued by the US Federal Reserve, claiming that there were suspicions about some transfers in the Chinese yuan."

[size=45]He pointed out that "the Central Bank of Iraq has contracted with an international company to evaluate and monitor transfers, and this company is a source of acceptance and trust for the US Federal Reserve."

He pointed out that "after a short period, the Central Bank of Iraq will resume transferring remittances in Chinese yuan to Iraqi traders in general," indicating that "these measures of the US Federal Reserve are considered arbitrary against Iraq and its national economy."

The Central Bank of Iraq stopped dealing in the Chinese yuan after the US Federal Reserve accused Iraq of “inflating remittances.”

During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on private banks and preventing the dollar under many pretexts, which in one way or another led to a severe financial crisis in local markets. LINK

Economist: America Has Begun To Abandon Iraq

Money and business Economic expert, Jalil Al-Lami, confirmed that America has begun to gradually abandon Iraq by restricting the use of the dollar and abandoning the purchase of Iraqi oil.

Al-Lami said that America decided to buy oil from Canada instead of Iraq, and also to restrict the use of the dollar, which are messages to the Iraqi government.

He added that the Iraqi government sent a delegation to settle the issues with America and end the dollar restriction. 825 views 2024/07/16 - https://economy-news.net/content.php?id=45274

Pros And Cons Of Iraq Joining The WTO

Appearance of Mohammed Saleh

Since 2003, Iraq has adopted broad open policies towards the world and sought to establish important economic and legislative rules that operate according to the mechanisms of the market system, most of which helped improve Iraq’s foreign trade, after an economic blockade that lasted for more than a decade and led to Iraq’s marginalization on the map of the global economic system and deprived it of investment opportunities, progress, development and technological knowledge that should have helped it confront the rapid developments and changes that international markets have witnessed and whose competitive capabilities have changed dramatically over the past two decades at least.

Thus, Iraq became isolated from its international environment in the midst of a world swept by the currents of merging its companies, liberalizing its markets and integrating them, especially the financial ones, and the dominance of the new liberal doctrine, which required broad economic transformations in the field of information technology that became in harmony with the internationalism of productive activity through the role that multinational companies began to play and the increasing competitive advantage of the products that the world markets began to generate.

However, we find in the integration of financial markets, whose assets exceed $850 trillion, the main title of financial globalization and the main focus of dominance in the globalization of the new liberal economy.

At the same time, it represents the trend of transition in the axes of international trade and the introduction to the transformation from the scope of the GATT Agreement signed in 1948 to the World Trade Organization Agreement (WTO), where the latter focused on regulating a wide range of trade in services, especially financial services, whose annexes were called the GATS Agreement in 1994 based on the Uruguay Round.

While the gross domestic product of the world's 192 economies does not exceed $83 trillion annually at present (and the value of world trade in goods and services has also not increased annually by more than a third of the aforementioned global output), we find that trade in currency conversion, speculation, and short-term capital movements exceeds about $4.5 trillion daily in international monetary and financial markets, a speculative financial trade whose annual total exceeds more than fifty times the total global trade in goods and services.

In the midst of these changes in the international commercial and financial space, Iraq has moved to important organizational levels in the transition to a market economy to break the effects of its international isolation by engaging in a strong area of economic liberalism that focused on liberalizing the areas of Iraq's foreign trade in goods and services and the means of financing them,

despite the fluctuations in its organization, as well as the development and expansion of areas of progress achieved in some financial services and improving the environment for foreign investment through the legislation of the banking and investment laws and the Central Bank Law,

which allows foreign banks to operate in Iraq and allows the transfer of capital and currency in a manner that serves Iraq's openness to the world in the conditions of a central rentier economy that is difficult to deal with in understanding market liberalism, which nevertheless led to providing positive opportunities and promising legal and organizational foundations for the Iraqi business environment.

However, all of this is not enough to put Iraq on the path of international economic competition. There are still more than five thousand legislative texts that hinder economic freedom and market activity, which are being studied by legal circles and which must be amended so that Iraq can integrate into international trade and investment and prepare it to join the World Trade Organization according to the terms of membership in it so that our country can obtain the most-favored nation status and the principle of national treatment.

However, the paradoxes of joining revolve around the issues of oil and agriculture, in addition to other problems of joining.

While oil sector production dominates nearly 50% of Iraq’s GDP, the sector employs only 2% of the Iraqi workforce, and the country’s crude oil exports and revenues constitute the near-absolute majority of total exports, general budget revenues, and foreign exchange earnings.

In light of all this, the World Trade Organization excludes crude oil as a commodity within the group of raw commodities traded internationally, which remains the core of the contradiction in Iraq’s accession to that organization that excludes crude oil.

If the World Trade Organization had allowed oil to be taken into account, the price would have been determined by global supply and demand, away from the cartel or consumer groups represented by the International Energy Agency and its lines and programs for rationalizing demand for oil.

Or away from the cartel or producer groups represented by the Organization of the Petroleum Exporting Countries (OPEC) and its role in regulating production and influencing prices, which is the matter that imposed price and quantity restrictions on a commercial commodity, but a strategic and political one at the same time, which is the driving force of Iraq’s foreign trade.

On the other side of the Iraqi economy, we find the agricultural sector, which includes less than a third of the Iraqi population and about 22% of the Iraqi labor force, and does not contribute to the gross domestic product except by a percentage not exceeding 5%, which made the country a near-net importer of food or agricultural goods, the value of which exceeds 14 billion dollars annually.

This important sector, which has been subjected to militarization and neglect over the past thirty years and more, does not have the sufficient components to provide food security in terms of grains or agricultural production requirements after the shrinkage of productive agricultural areas due to desertification, salinization, and the recent water crisis, which eliminated more than 50% of the lands prepared for agriculture, in addition to the deterioration of the agricultural infrastructure, 83% of whose components are controlled by the state as a public commodity.

Here the agricultural sector contradicts the oil sector structurally in the directions of openness to the global market and with two different wings in terms of the impact of commercial benefits and costs.

The forces of the international market or global supply and demand have come to control strongly, whether in the demand for oil and its impact on the value of Iraqi exports or in the supply of food products and its impact on the cost of Iraq’s imports from them.

When referring to the philosophy of reducing customs restrictions by 24% and abolishing non-customs restrictions, which are the conditions imposed by the World Trade Organization on the member state in the group of developing countries to work with and implement them within a period of six years from the date of accession, in addition to reducing agricultural support by 13.3% within a period of ten years from accession, we find that these regulatory conditions of the World Trade Organization clash with the conditions and situations of the agricultural market and the global food stock exchange itself.

If we look at the agricultural monopolies in the world in light of the deterioration of agricultural development in Iraq, we find a real threat to national food security that restricts the country in the event of joining the organization unless it is preceded by starting or following an agricultural program for self-sufficiency immediately. We will really need a green revolution similar to what Mexico and many Latin American countries have done.

Especially if we know that there are between 3 to 6 major monopolistic companies in the world that control 80 to 90% of agricultural crop trade and control prices and quantities such as wheat, sugar, tea, coffee, cotton, jute, etc. At a time when ten multinational companies still control a third of the world's seed and pesticide production and trade.

Despite the above, Iraq’s entry and integration into the global economic space through the World Trade Organization and its dealings with international groups on terms that apply to everyone from a formal standpoint at a time when the world is still divided between the countries of the North and the South or the countries of the advanced industrial center and the developing periphery,

Iraq has no choice but to leave its international isolation that it inherited since the blockade that began in 1990, which placed Iraq under Chapter VII of the United Nations Charter or its aftermath, a chapter whose effects still provide a negative economic environment hostile to development and perhaps obstructing natural integration into the global market.

This chapter prohibits levels of investment in advanced technology or easy dealings with the world due to the restrictions it imposes on our country as a high-risk country that threatens world peace and allows the use of force against it in a regrettable legacy for the civilization of Mesopotamia despite the disappearance of the objective reasons for which the economic blockade was imposed on Iraq.

Noting that Iraq's accession to regional economic zones, such as the Greater Arab Free Trade Area and other economic agreements within the framework of the Arab League or other forms of regional integration and consolidation, must take into account the implementation of the provisions contained in the World Trade Organization Agreement and before it the GATT Agreement, both of which have become binding restrictions on the implementation of trade agreements.

Thus, any trade facilitations within the framework of regional agreements become useless or worthless if they are less than the facilitations provided within the framework of the World Trade Organization.

Finally, Iraq's continued isolation from its international environment will cost it a lot due to the loss of organizational advantages and opportunities, technological and legal benefits, and other areas of investment and arbitration, which are opportunities that isolation from the world does not provide and does not enable a gradual transformation into a group of stable and low-risk countries, a transformation that encourages international cooperation in a secure global investment and trade environment, provided that effective development begins based on the strong push program.

96 views 2024/07/16 - https://economy-news.net/content.php?id=45283

Third Round Of Negotiations For Iraq's Accession To The World Trade Organization

Time: 2024/07/16 Reading: 234 times {Economic: Al Furat News} Minister of Trade Athir Dawood Salman arrived today, Tuesday, in the city of Geneva, Switzerland, at the head of the Iraqi team negotiating Iraq’s accession to the World Trade Organization to attend the third meeting of the working group on Iraq’s accession, 16 years after the second meeting was held.

The statement of the Ministry's media office, a copy of which was received by {Euphrates News}, indicated that "Iraq is proceeding, through the national committee concerned with its accession to the World Organization, which is headed by the Minister of Trade, to complete its procedures to accomplish the required files and support reforms and legislation to be in line with the market system and enhance the country's economic capabilities to complete the requirements of the next stage of the accession process."

The statement noted that "the preparatory meetings of the Iraqi negotiating team are continuing at the headquarters of the World Trade Organization in Geneva, in preparation for the third meeting of the working group on Iraq's accession, which will be held this week." LINK

TNT:

Tishwash: Iraq resumes negotiations to join WTO

Minister of Trade and head of the Iraqi team concerned with joining the World Trade Organization, Athir Dawood Al-Ghariri, announced on Monday the resumption of negotiations to join the World Trade Organization, after a hiatus that lasted more than 16 years.

A statement by the ministry, seen by "Al-Eqtisad News", quoted the Director General of the Department of Foreign Economic Relations, Riyadh Fakher Al-Hashemi, as saying that "the Iraqi negotiating teams have begun their preparatory meetings at the headquarters of the World Trade Organization in Geneva, in preparation for the third meeting of the working group on Iraq's accession."

************

Pros and cons of Iraq joining the WTO

Appearance of Mohammed Saleh

Since 2003, Iraq has adopted broad open policies towards the world and sought to establish important economic and legislative rules that operate according to the mechanisms of the market system, most of which helped improve Iraq’s foreign trade, after an economic blockade that lasted for more than a decade and led to Iraq’s marginalization on the map of the global economic system and deprived it of investment opportunities, progress, development and technological knowledge that should have helped it confront the rapid developments and changes that international markets have witnessed and whose competitive capabilities have changed dramatically over the past two decades at least.

Thus, Iraq became isolated from its international environment in the midst of a world swept by the currents of merging its companies, liberalizing its markets and integrating them, especially the financial ones, and the dominance of the new liberal doctrine, which required broad economic transformations in the field of information technology that became in harmony with the internationalism of productive activity through the role that multinational companies began to play and the increasing competitive advantage of the products that the world markets began to generate.

However, we find in the integration of financial markets, whose assets exceed $850 trillion, the main title of financial globalization and the main focus of dominance in the globalization of the new liberal economy. At the same time, it represents the trend of transition in the axes of international trade and the introduction to the transformation from the scope of the GATT Agreement signed in 1948 to the World Trade Organization Agreement (WTO), where the latter focused on regulating a wide range of trade in services, especially financial services, whose annexes were called the GATS Agreement in 1994 based on the Uruguay Round.

While the gross domestic product of the world's 192 economies does not exceed $83 trillion annually at present (and the value of world trade in goods and services has also not increased annually by more than a third of the aforementioned global output), we find that trade in currency conversion, speculation, and short-term capital movements exceeds about $4.5 trillion daily in international monetary and financial markets, a speculative financial trade whose annual total exceeds more than fifty times the total global trade in goods and services.

In the midst of these changes in the international commercial and financial space, Iraq has moved to important organizational levels in the transition to a market economy to break the effects of its international isolation by engaging in a strong area of ​​economic liberalism that focused on liberalizing the areas of Iraq's foreign trade in goods and services and the means of financing them, despite the fluctuations in its organization.

As well as the development and expansion of areas of progress achived in some financial services and improving the environment for foreign investment through the legislation of the banking and investment laws and the Central Bank Law, which allows foreign banks to operate in Iraq and allows the transfer of capital and currency in a manner that serves Iraq's openness to the world in the conditions of a central rentier economy that is difficult to deal with in understanding market liberalism, which nevertheless led to providing positive opportunities and promising legal and organizational foundations for the Iraqi business environment.

However, all of this is not enough to put Iraq on the path of international economic competition. There are still more than five thousand legislative texts that hinder economic freedom and market activity, which are being studied by legal circles and which must be amended so that Iraq can integrate into international trade and investment and prepare it to join the World Trade Organization according to the terms of membership in it so that our country can obtain the most-favored nation status and the principle of national treatment.

However, the paradoxes of joining revolve around the issues of oil and agriculture, in addition to other problems of joining.

While oil sector production dominates nearly 50% of Iraq’s GDP, the sector employs only 2% of the Iraqi workforce, and the country’s crude oil exports and revenues constitute the near-absolute majority of total exports, general budget revenues, and foreign exchange earnings.

In light of all this, the World Trade Organization excludes crude oil as a commodity within the group of raw commodities traded internationally, which remains the core of the contradiction in Iraq’s accession to that organization that excludes crude oil. If the World Trade Organization had allowed oil to be taken into account, the price would have been determined by global supply and demand, away from the cartel or consumer groups represented by the International Energy Agency and its lines and programs for rationalizing demand for oil. Or away from the cartel or producer groups represented by the Organization of the Petroleum Exporting Countries (OPEC) and its role in regulating production and influencing prices, which is the matter that imposed price and quantity restrictions on a commercial commodity, but a strategic and political one at the same time, which is the driving force of Iraq’s foreign trade.

On the other side of the Iraqi economy, we find the agricultural sector, which includes less than a third of the Iraqi population and about 22% of the Iraqi labor force, and does not contribute to the gross domestic product except by a percentage not exceeding 5%, which made the country a near-net importer of food or agricultural goods, the value of which exceeds 14 billion dollars annually. This important sector, which has been subjected to militarization and neglect over the past thirty years and more, does not have the sufficient components to provide food security in terms of grains or agricultural production requirements after the shrinkage of productive agricultural areas due to desertification, salinization, and the recent water crisis, which eliminated more than 50% of the lands prepared for agriculture, in addition to the deterioration of the agricultural infrastructure, 83% of whose components are controlled by the state as a public commodity.

Here the agricultural sector contradicts the oil sector structurally in the directions of openness to the global market and with two different wings in terms of the impact of commercial benefits and costs. The forces of the international market or global supply and demand have come to control strongly, whether in the demand for oil and its impact on the value of Iraqi exports or in the supply of food products and its impact on the cost of Iraq’s imports from them.

When referring to the philosophy of reducing customs restrictions by 24% and abolishing non-customs restrictions, which are the conditions imposed by the World Trade Organization on the member state in the group of developing countries to work with and implement them within a period of six years from the date of accession, in addition to reducing agricultural support by 13.3% within a period of ten years from accession

We find that these regulatory conditions of the World Trade Organization clash with the conditions and situations of the agricultural market and the global food stock exchange itself. If we look at the agricultural monopolies in the world in light of the deterioration of agricultural development in Iraq, we find a real threat to national food security that restricts the country in the event of joining the organization unless it is preceded by starting or following an agricultural program for self-sufficiency immediately.

We will really need a green revolution similar to what Mexico and many Latin American countries have done. Especially if we know that there are between 3 to 6 major monopolistic companies in the world that control 80 to 90% of agricultural crop trade and control prices and quantities such as wheat, sugar, tea, coffee, cotton, jute, etc. At a time when ten multinational companies still control a third of the world's seed and pesticide production and trade.

Despite the above, Iraq’s entry and integration into the global economic space through the World Trade Organization and its dealings with international groups on terms that apply to everyone from a formal standpoint at a time when the world is still divided between the countries of the North and the South or the countries of the advanced industrial center and the developing periphery, Iraq has no choice but to leave its international isolation that it inherited since the blockade that began in 1990, which placed Iraq under Chapter VII of the United Nations Charter or its aftermath, a chapter whose effects still provide a negative economic environment hostile to development and perhaps obstructing natural integration into the global market.

This chapter prohibits levels of investment in advanced technology or easy dealings with the world due to the restrictions it imposes on our country as a high-risk country that threatens world peace and allows the use of force against it in a regrettable legacy for the civilization of Mesopotamia despite the disappearance of the objective reasons for which the economic blockade was imposed on Iraq.

Noting that Iraq's accession to regional economic zones, such as the Greater Arab Free Trade Area and other economic agreements within the framework of the Arab League or other forms of regional integration and consolidation, must take into account the implementation of the provisions contained in the World Trade Organization Agreement and before it the GATT Agreement, both of which have become binding restrictions on the implementation of trade agreements. Thus, any trade facilitations within the framework of regional agreements become useless or worthless if they are less than the facilitations provided within the framework of the World Trade Organization.

Finally, Iraq's continued isolation from its international environment will cost it a lot due to the loss of organizational advantages and opportunities, technological and legal benefits, and other areas of investment and arbitration, which are opportunities that isolation from the world does not provide and does not enable a gradual transformation into a group of stable and low-risk countries, a transformation that encourages international cooperation in a secure global investment and trade environment, provided that effective development begins based on the strong push program. link