The stability of the dollar exchange rate depends on the results of the Iraqi delegation's negotiati

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[size=52]The stability of the dollar exchange rate depends on the results of the Iraqi delegation's negotiations today in Washington[/size]

[size=45]Baghdad / Tamim Al-Hassan[/size]
[size=45]Iraq printed 5 trillion dinars during the past three months due to the scarcity of the local currency, while it is expected that the annual deficit of dinars will reach more than 60 trillion.[/size]
[size=45]Baghdad is counting on the success of the negotiations with the United States on easing restrictions on the circulation of the dollar through a senior government delegation that is supposed to arrive in Washington today.[/size]
[size=45]Informed sources question the possibility of stopping the smuggling of hard currency to neighboring countries, especially Iran, even with the imposition of US restrictions due to the process of "circulating the dinar."[/size]
[size=45]On the other hand, the coordination framework that leads the government has begun to pave the way for accepting options that it considered "red lines" in the past, especially those related to negotiations with the United States.[/size]
[size=45]The leaks revolve around US pressure to prevent the factions from targeting the coalition forces and to impose economic partnerships on Iraq with neighboring countries in exchange for easing dollar restrictions.[/size]
[size=45]Iraq aspires to obtain a delay of several months until it adapts to the US requirements that were put in place to monitor the movement of the dollar.[/size]
[size=45]An informed source says in an interview with (Al-Mada) that «there is a currency crisis in the local currency that forced Iraq to put pressure on British and French printing presses, in which the dinar is printed, to print additional currencies».[/size]
[size=45]According to the source, who asked not to be named, that "in the last three months, Iraq has printed 5 trillion dinars to cover expenses, especially salaries."[/size]
[size=45]According to government data, annual salaries have risen to more than 60 trillion dinars annually, with the increase in the number of jobs.[/size]
[size=45]The source estimates that “Iraq’s annual expenditures are about 100 trillion dinars, and they may increase in the upcoming 2023 budget, while the central bank’s sales of dollars amount to 24 billion dollars annually (according to the latest bank data), which is equivalent to 36 trillion dinars.”[/size]
[size=45]Central bank sales fell during the past three months from 250 and 300 million dinars per day to between 50 and 60 million dollars, according to bank data.[/size]
[size=45]The source, who is familiar with monetary policy, believes that “the difference between expenditures and sales of the central bank will be compensated for by printing the new currency,” noting that “Iraq does not replace the new printed dinar because non-oil revenues (fees, taxes) are equivalent to only 5% of the total revenue.” .[/size]
[size=45]The source warns of «increased currency printing, which will lead to the deterioration of the value of the Iraqi dinar and the expansion of inflation and the rise of commodities».[/size]
[size=45]And the exchange rates began in the past three months to rise gradually until it reached a peak last week to 1750 dinars per one dollar, before it fell slightly due to political factors.[/size]
[size=45]The source says, "Smuggling operations to Iran are continuing and may not stop, even with the US restrictions."[/size]
[size=45]The source explains: “Iraq pays gas and electricity dues to Iran in dinars, and the question is: What does Iran do with the Iraqi dinar?”[/size]
[size=45]And the informed source answers: "Certainly, Tehran will return these sums back to Iraq and buy dollars with them, and the process of recycling the currency will continue."[/size]
[size=45]And in the “emergency support for food security and development” law, which Parliament voted last year, 4 trillion dinars were allocated to pay off external indebtedness, including debts for importing and purchasing gas and energy.[/size]
[size=45]The meeting between the new head of the Central Bank, Ali Al-Alaq, with the Undersecretary of the Treasury for Terrorism and US Financial Intelligence, Brian Nelson, last Friday in Istanbul, stopped the rise of the dollar, according to what Western media describe.[/size]
[size=45]And the decline in the value of the Iraqi currency began to stop after the central bank said after the meeting that «the US Treasury expressed its willingness to show the necessary flexibility in order to achieve common goals».[/size]
[size=45]And Nelson had praised, in a statement, "Iraq's continuous endeavor to improve its commitment to international standards, and its constant eagerness to offer cooperation in modernizing the banking sector."[/size]
[size=45]"The dollar will continue to rise if Iraq fails in the new round of negotiations in Washington," said Nabil Al-Marsoumi, professor of economics at the University of Basra, in an interview with Al-Mada.[/size]
[size=45]For more than two months, the United States has imposed strict restrictions on dollar transfers, as Al-Marsoumi says, "In one day, 80% of the transfers were returned, and on the next day, the transfers were zero."[/size]
[size=45]According to previous statements by Prime Minister Muhammad al-Sudani, a delegation headed by Foreign Minister Fuad Hussein and the head of the Central Bank will visit Washington on February 7 (today) in order to discuss the dollar crisis.[/size]
[size=45]These statements coincided with John Biden's involvement of King Abdullah II of Jordan in the first phone call with Al-Sudani last week, which was interpreted by parties in the coordination framework as Washington having imposed the Kingdom of Jordan as an economic partner for Iraq.[/size]
[size=45]On the effects of escalating criticism against the government, the "executors" began to try to mitigate their previous objections to the Basra-Aqaba pipeline, which is believed to be part of a deal to ease dollar restrictions.[/size]
[size=45]Bloggers close to the "frame" and known for their hostility to the United States also wrote diplomatic speech about "negotiating with one hand and raising arms with the other."[/size]
[size=45]These parties had previously encouraged the bombing of the US embassy in Baghdad and considered it a "military barracks" and not a diplomatic point before the attacks stopped since the Shiite coalition took power, and the factions described the oil pipeline to Jordan as "normalization with Israel."[/size]
[size=45]The Biden-Sudanese call had indicated a refusal to target the coalition forces, which the prime minister confirmed for the first time that they (the forces) were present at “a request from the government.”[/size]
[size=45]On the other hand, the coordination framework officially adopted the government's recent measures, and said in a statement that it had listened Sunday evening to the prime minister's explanation of "the central bank's procedures with the US Federal Bank in Istanbul two days ago and the reform packages issued by the bank."[/size]
[size=45]The statement considered the treatments presented by the Central Bank as "comes within the process of financial and banking reform."[/size]
[size=45]Adviser to the Prime Minister, Diaa Al-Nasseri, confirmed that the exchange rate of the dollar will be reduced in accordance with the proposal of the Central Bank.[/size]
[size=45]Al-Nasiri said in a tweet to him on Twitter, which was followed by (the term), that "the exchange rate of the dollar will be reduced, according to a proposal submitted by the Central Bank of Iraq to Prime Minister Muhammad Shia'a Al-Sudani."[/size]
[size=45]Yesterday, Monday, an official source revealed that the Central Bank of Iraq had completed its study on reducing the exchange rate of the dollar and submitted it to the Prime Minister.[/size]
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