The central bank and banks urgent action to control the foreign currency market

Sameer Al-Nusairi


Today, the Board of Directors of the Central Bank took an important decision to control the exchange rate, as the selling price of the dollar to the beneficiary (the bank’s customer) whose imports the bank finances with documentary credits was reduced to 1465 instead of 1470, as the Central Bank will sell the dollar to banks for the purposes of opening documentary credits by an amount of 1455 instead from 1460.

Immediately, the Association of Iraqi Private Banks issued a statement endorsing and supporting the Central Bank’s procedures and called on all banks to work at the new rate and facilitate the access of merchants and businessmen from the bank’s customers to obtain their needs of foreign currency.

It is no secret to the economic elites and citizens that the economic and political conditions and their repercussions negatively affect stability in the monetary system and the financial system, and thus this will lead to economic instability and confusion in the market, in addition to that, a few days ago, a new wave of criticism began from some media outlets affected by the rumors that it is launching and moving. Speculators in the currency exchange market with the aim of creating a state of confusion and instability and attempting to drag the money market into instability and thwarting the central bank’s plans to control the target rates of the exchange rate, which has remained stable since its adjustment to the new prices for finance, banks and the public. Speculators have taken advantage of the decline in dollar sales in a window Selling foreign currency, which the Central Bank clarified in a clear statement that the reason is the application of a new electronic platform to control external transfers similar to the letters of guarantee platform currently implemented, and given the insufficient readiness of local banks with the start of the applicationThe demo of the platform, as part of the foreign remittances was postponed, which resulted in a decrease in the sales volume of the foreign currency sale window, and among other rumors is that the central bank will make a new change to the current price.

Although the Central Bank has repeatedly announced that there is no intention to change the price at present and explained the negative effects of any change in the price on the national economy, commercial exchanges, and local and foreign banking dealings with countries of the world, and that the exchange rate is determined by the Central Bank according to the effects and repercussions of the economic reality in a country like Iraq that suffers from Challenges, repercussions, economic and financial crises, and a structural and systemic imbalance in the management of the economy and money are not borne by the Central Bank alone because its role is clear, specific and independent. It is concentrated in stimulating the economy according to the tools and applications of monetary policy. However, this cannot be achieved without joint coordination with fiscal policy and other economic sectors, activating the real economy and diversifying sources of income. The national economy and leaving the unilateral economy depending on oil as a major resource that constitutes 93% of the general budget revenues and 60% of the gross domestic product.Supporting local production and operating the suspended factories, which number more than 140 government factories, and reducing dependence on imports.

Therefore, those who criticize the central bank must be aware of this and that the central bank’s announced measures to increase the dollar supply through its regular outlets and banks and the new reduction will inevitably lead to the return of the price to its target rates, inevitably and quickly, and that the sudden rise yesterday has clear reasons, as indicated above.


Parliamentary Legal: An extraordinary session of Parliament if it receives the budget

  • Time: 12/16/2022 14:55:05
  • Read: 130 times
Parliamentary Legal: An extraordinary session of Parliament if it receives the budget

  {Politics: Al-Furat News} The Parliamentary Legal Committee suggested that an extraordinary session of the House of Representatives be held during its current legislative recess, if it received the 2023 budget bill from the government.

A member of the committee, Aref Al-Hamami, told Al-Furat News agency, “The budget law includes a set of paragraphs, including job grades for lecturers and graduates, contract confirmation, and a large number of job grades.” 
He added, “Until now, the price of a barrel of oil approved in the budget has not been announced.” 
Al-Hamami stressed that “the House of Representatives, despite entering its legislative recess, will hold the session for reading the budget law if a request is submitted to hold the session.” 
The Parliamentary Finance Committee had expected the cabinet to vote on the draft general financial budget bill for the year 2023 at the end of this month.
Committee member Mueen Al-Kadhimi said, “The total value in the draft budget law has risen to 222 trillion dinars, in response to the demands of the ministries and governorates,” noting that raising the total value “needs to be amended by the Ministry of Finance to prepare the final draft of the draft law before sending it to the Council of Ministers.” “. 
On the 9th of December, the House of Representatives entered a legislative recess for a period of 30 days, provided that it will resume its sessions on the 9th of next January.

Raghad Daham

Al-Rafidain confirms the launch of its predecessor electronically at the beginning of next year

  • Time: 12/16/2022 08:28:58
  • Read: 1,222 times
Al-Rafidain confirms the launch of its predecessor electronically at the beginning of next year

  {Economic: Al Furat News} Rafidain Bank confirmed, today, Friday, the launch of advances to employees, members of the security forces, and retirees electronically.

The bank indicated, in a brief statement, that “the beginning of next year is the date for re-establishing electronic grants on advances.”