The secret of the Sudanese government’s retreat from changing the exchange rate of the Iraqi dinar

Free / Special – Washington03 November 2022

Al-Sudani criticized in previous statements the increase in the exchange rate of the Iraqi dinar against the dollar

The Iraqi Prime Minister, Muhammad Shia Al-Sudani, confirmed in statements on Tuesday that the decision to “change the exchange rate of the Iraqi dinar against the dollar is the prerogative of the Central Bank, and we are committed to implementing what the Central Bank deems appropriate,” which some considered a retreat from previous promises and positions of the President to reduce the exchange rate.

The new prime minister indicated that the decision to “raise the dollar exchange rate was not accompanied by measures to protect the vulnerable classes,” according to local media.

In 2020, the Central Bank of Iraq had raised the exchange rate against the dollar to 1460 dinars, after it was in the range of 1182 dinars against the dollar, in a move aimed at compensating for the decline in oil revenues at the time.

The Sudanese Prime Minister had expressed, in previous statements before taking office, his rejection of the central decision that he approved in agreement with the caretaker government, headed by Mustafa Al-Kazemi at the time, calling for the need to reconsider the decision to raise the “dollar exchange rate to prevent its negative effects.”

The head of the State of Law coalition, Nuri al-Maliki, who supports the Sudanese, proposed, on Wednesday, to reduce the exchange rate of the dollar to 1375 dinars.

The Coordination Framework bloc, led by Al-Maliki and which included pro-Iran factions, had criticized Al-Kazemi’s decision, at the time, to reject the exchange rate of the dollar in Iraqi dinars.

‘populist promises’

The economic researcher, Salam Sumaisem, described the promises made by the former prime minister and the bloc supporting him, regarding the dinar exchange rate, as “populist promises aimed at flirting with the feelings of citizens”, but on the ground they are “not applicable.”

Sumaisem explained in an interview with Al-Hurra website that the decision to “set the Iraqi dinar exchange rate is a purely monetary economic decision, and not a political decision that is controlled by the government,” noting that setting the current price came in accordance with a five-year monetary economic plan, which has passed. Two years now, and we still have “at least three years to stabilize the exchange rate at its current levels”.

The Iraqi economist, Mahmoud Dagher, believes that the change in the Sudanese position towards decreasing the exchange rate of the dinar is “healthy”, as he met with the governor of the Central Bank, who explained to him the need for stability and independence of the country’s monetary policy.

In response to Al-Hurra’s inquiries, Dagher pointed out that “the Central Bank Law of 2004 limits the powers to determine the exchange rate and monetary policy in the hands of the Central Bank,” and that is why the Sudanese should not interfere in the matter.

But Adel Al-Manea, a member of the State of Law coalition led by Al-Maliki, said in a statement to Al-Hurra that the Sudanese government “is proceeding with its decision to amend the exchange rates to serve the Iraqi dinar against the dollar.”

He stressed that “there is no retreat from this decision,” noting that the process of adjusting the exchange will be gradual, and its first features will appear “in the draft budget law” prepared by the new government.

Al-Manea expects that the new government will aim to bring the exchange rate to a rate of “1300 Iraqi dinars to the dollar” and will serve the country’s economic goals during the next “important” stage.

On Monday, the Ministry of Finance announced the start of preparing the budget law for 2023, and the financial advisor in the ministry, Abdul Hassan Jamal, told the Iraqi News Agency “conscious” that “the amendment of the dollar exchange rate is within the government’s policies, and the Council of Ministers is the one who makes the decision, but in the budget it was not presented for a purpose. right Now”.

Is there a need to reduce the exchange rate?

The researcher, Sumaisem, warned that any decision to devalue the currency may incur a loss of no less than “52 trillion Iraqi dinars” for the Iraqi economy, stressing that such decisions should not be taken “arbitrarily or emotionally.”

She indicated that the current economic indicators do not reveal any “need to adjust the exchange rate, and there are monetary and financial tools that can be used to reduce the effects of inflation and help marginalized classes.”

This expert opinion is supported by Dagher, who says that “all economic rules support the exchange rate to remain the same for several reasons, the most important of which is the stability of the currency.”

He asserts that any change in the exchange rate against the dollar will not be in the interest of the Iraqi economy, but it will serve the interest of “speculators” who want to exploit the exchange difference for their own benefit without considering the interest of the economy as a whole.

Dagher called on politicians not to “use the exchange rate decision in populist statements,” as he put it, noting that it causes unnecessary “speculative waves in the market.”

The head of the “Alwan” Center for Strategic Studies, Haidar Al-Barzanji, who is close to the coordination framework, hinted that the opposition to changing the exchange rate of the dinar was for political strife and nothing more, on the grounds that “economic realism differs from political discourse,” according to his belief.

Al-Barzanji, a media commentator who defends the viewpoint of the framework and the forces affiliated with it, continued: “There is an economic reality that cannot be changed… Specialists say that the exchange rate cannot be changed until after 4 or 5 years.”

The Association of Iraqi Private Banks said in a statement issued last week that “the return of dollar prices will negatively affect the economy,” stressing that “the slight decline in the exchange will not reduce the prices of materials in the markets.”

And the economic advisor in the association, Samir Al-Nusairi, considered, in an interview with ” Waa’a “, that “the current little decline in the exchange rates of the dollar is a kind of confusion practiced by speculators in the currency trading market, by exploiting rumors to achieve narrow interests.”

Al-Nusairi warned that “the process of changing and returning to the previous price of the dollar’s value against the Iraqi dinar, will lead to high costs borne by the economy,” in addition to “disastrous damages that will be borne by the citizen because of the problems that will occur in internal commercial and financial transactions.”

And the Central Bank of Iraq confirmed in a statement last week that “there pis no intention to change the exchange rate,” and called in a statement to the Iraqi News Agency to “preserve the value of their money and stay away from what is rumored in the media.”


After the conclusion of the Algeria summit, the President of the Republic arrives in Baghdad

political| 11:46 – 02/11/2022


Baghdad – Mawazine News
The President of the Republic, Abdul Latif Jamal Rashid, arrived today, Wednesday, in the capital, Baghdad, after his participation in the Arab Summit Conference in its thirty-first session.
The President of the Republic had delivered a speech at the summit, in which he talked about the situation in Iraq and the formation of the government, stressing Iraq’s keenness to be a source of stability in its regional surroundings.
During the speech, His Excellency the President explained Iraq’s position on a number of Arab and regional issues, expressing Iraq’s hope and its quest for this summit to be a serious and productive starting point in purifying the atmosphere of joint work to serve the aspirations of the Arab peoples for progress and prosperity.
On the sidelines of the summit, the President of the Republic held a number of meetings with Arab leaders and officials, in which issues of common interest were discussed.

Determining the date of the next session of Parliament and its most important expected projects

  • Today 20:13
Determining the date of the next session of Parliament and its most important expected projects

Information / Baghdad..

Representative of the State of Law coalition, Muhammad Chihod, announced, on Wednesday, the date of the next parliamentary session, indicating that Parliament is awaiting the completion of the budget in the coming days.
Chihoud said in a statement to “The Information”, “Parliament will resume its session early next week to pass many important service laws, as well as to complete the booth of Muhammad Shia al-Sudani.”
He added that “harmony between the government and parliament during the current session is important and should be exploited in an ideal way to pass controversial laws and end any political conflict.”
He pointed out that “the most important laws expected to arrive in the coming days are the budget,” noting that “the budget will be passed smoothly due to the political harmony of the forces of the State Building Alliance.” 25 d is over

Central Bank Governor: We launched development initiatives that amounted to (18) trillion dinars

Economie| 05:22 – 02/11/2022


Baghdad – Mawazine News

The Governor of the Central Bank, Mustafa Ghaleb Mikhaif, announced, on Wednesday, the launch of development initiatives that amounted to (18) trillion dinars.

A statement of the Central Bank, which Mawazine News received a copy of, stated that “the Governor of the Central Bank of Iraq, Mustafa Ghaleb Mukhif, received today, Wednesday, the Special Representative of the Secretary-General of the United Nations in Iraq, Mrs. in the interest of Iraq.
And Makheif stressed, according to the statement, that “the Central Bank of Iraq launched development initiatives that amounted to (18) trillion dinars, which contributed to moving the wheel of the Iraqi economy, and provided thousands of job opportunities.”
He added: “The Bank is performing its roles set out by law and continues to provide initiatives to support government trends in providing job opportunities for young people and achieving their goals to implement their projects. His Excellency stressed the need to advance the reality of the financial and banking sector in line with international standards.” Ended

Nechirvan Barzani: The Kurdistan Region is seriously seeking the success of the Sudanese government


 2022-11-02 08:01A-AA+

Shafaq News/ The President of Kurdistan Region, Nechirvan Barzani said on Wednesday that the region is striving very seriously for the success of the federal government headed by Prime Minister Muhammad Shia Al-Sudani.

President Nechirvan Barzani said in a speech on the sidelines of hosting him at the “Miri” Forum for Middle East Affairs, that “the formation of the federal government in Baghdad is an important step in light of the current circumstances that Iraq is going through.”

He added that “the Kurdistan Region is seriously seeking the success of the current government formation headed by Al-Sudani,” stressing that the stability of the region is part of the stability of Iraq and vice versa, and if security is shaken in one of them, it will be undermined in the other because they complement each other.

US Ambassador: We will support the Sudanese government in fighting corruption and carrying out economic reform in Iraq


 2022-11-02 06:38A-AA+

Shafaq News/ The US ambassador to Baghdad, Alina Romanowski, said on Tuesday that the US administration will provide the necessary support to the federal government headed by Prime Minister Muhammad Shia Al-Sudani in the field of combating financial and administrative corruption, and reforming the economic sector in Iraq.

This came in her speech during her hosting of the “Miri” Forum for Middle East Affairs.

In her speech, Romanowski said that America will not withdraw from Iraq, and as President Biden said: We will remain in this country, adding: We have a long-term commitment to this country, and we have priorities, including the implementation of the strategic agreement signed between the two countries in 2008.

She added, “We will continue to provide support to Iraq and its current government headed by Mr. Sudanese to combat corruption and reform the economic sector and provide job opportunities for Iraqis,” stressing that the United States will continue to provide military support and advice to the Iraqi security forces in confronting and eliminating ISIS.

The ambassador also stressed that the United States of America will continue to provide support and cooperation to Iraq in facing climate change.

She also said: The relations with Iraq are deep and we work with you and support you in various fields and to implement the Strategic Frameworks Agreement.

The ambassador commended the role of the Kurdistan Region in forming the current federal government, urging Erbil and Baghdad to work together to resolve differences and outstanding issues between them.

Al-Sudani asks for international support to recover those wanted in the “Theft of the Century” case


 2022-11-02 06:35A-AA+

Shafaq News/ On Wednesday, Prime Minister Muhammad Shia Al-Sudani called on the international community to help Iraq recover the fugitives in the tax insurance case, what is known in the media as “the theft of the century”.

This came during his meeting today with the Special Representative of the Secretary-General of the United Nations in Iraq, Jenin Plasschaert, and her accompanying delegation, according to a statement issued by Al-Sudani’s media office, which stated that the meeting discussed the current government’s efforts to enhance stability and consolidate the democratic path.

According to the statement, the meeting witnessed a review of the government’s plans to address the file of the displaced, by working to secure their return to their areas after providing them with a decent life and stability.

The statement added that the meeting touched on the government’s efforts to combat corruption through measures taken by the Prime Minister, and it will be the first starting point for work in state institutions for the current stage.

Al-Sudani said, according to the statement, that the government will activate the laws in force and benefit from the experiences of successful countries in this field, and pointed to the need for Iraq to support the international community in order to recover its smuggled money, as well as to recover those wanted by the judiciary from those convicted and involved in corruption cases, especially in the case of tax insurances.

For her part, Plasschaert offered assistance through United Nations programs to provide training and logistical support, and pointed to the efforts of the Sudanese government and its seriousness in combating corruption and its emphasis on curbing its practices.

It is noteworthy that last October, witnessed the disclosure of a huge embezzlement of trust funds in the General Tax Authority for an amount of 3.7 trillion Iraqi dinars (two and a half billion US dollars), and according to the Integrity Commission, the case is still under investigation to reach all those involved.

Judicial arrest warrants were also issued against a number of parties to the case, most notably the director of the “Innovators” company, Noor Zuhair Al-Mudhaffar.

Nechirvan Barzani and the US Ambassador: The opportunity is available to the Iraqi government to encourage investment

KurdistanIraqbreakingdistrict chiefUS Ambassador

 2022-11-02 06:21A-AA+

Shafaq News/ The President of Kurdistan Region, Nechirvan Barzani met today, Wednesday, Elena Romanowski, the US ambassador to Iraq and an accompanying diplomatic and military delegation.

A presidential statement stated that the two sides discussed, during a meeting, the latest political developments in Iraq and the formation of the new Iraqi government, and stressed the importance of determining the priorities of the Iraqi government’s work in order to solve problems, and they agreed in the opinion that the formation of the new Iraqi government represents an opportunity to solve problems and can work to achieve security and stability for the country. Which will reflect on the stability of the whole region.

The statement added that the two sides stressed the importance of Iraq’s balanced relations with neighboring countries and countries in the region, and their views agreed that the opportunity is available for the new Iraqi government to encourage investment, by paving the ground, attracting capital and the foreign private sector to participate and contribute to the country’s development process.

America’s relations with Iraq and the Kurdistan Region occupied another axis of the meeting, in which the American ambassador affirmed America’s desire to strengthen its cooperation and relations with Iraq and the Kurdistan Region, and shed light on the reform process, reorganizing the Peshmerga and supporting and supporting her country for the success of the process.

The problems of Erbil-Baghdad and the dialogue and efforts being made to solve them, the importance of solving the oil and gas problem with Baghdad, the internal conditions of the Kurdistan Region and the importance of calming tensions, climate change, economic reform, the situation in the region in general and a set of issues of common concern, occupied another focus of the meeting, which was attended by the two gentlemen The US Consul General in the Kurdistan Region and the official of the Iraq office in the US State Department, according to the statement.