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Iranian "pressure" and Iraqi mediation with Washington to give Tehran its money in dollars
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2023-04-07 12:59
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Shafaq News / Today, Friday, a British report website revealed an "Iraqi financial mediation" with Washington to release funds in US dollars requested by Tehran from Iraq, and while indicating that there is Iranian pressure in this regard, it confirmed the existence of dollar smuggling in the procedures of the Iraqi local authorities to grant the dollar for citizens.
Loss of Iraq
The British "Middle East Eye" website quoted Iraqi officials as saying, "Iran was wasting money in order to buy US dollars from the black market in Iraq, but now it is pressuring the Iraqi government to pay its debts owed to Tehran through official channels, while Baghdad With mediation between it and Washington, so that the Iranians can get their remaining money ($8 billion), in addition to exempting transactions between the two countries from sanctions.
The British report, translated by Shafaq News Agency, indicated that "since the United States imposed a severe sanctions regime on Iran in 2018, Iraq has suffered to be able to pay the price of Iranian goods and services such as gas, electricity, foodstuffs, building materials, and other needs, as the total trade between them reached about 14 billion." dollars annually.
And after the report pointed out that Iraq was able last year to pay most of its gas and electricity debts for the period 2019-2021 in Iraqi dinars, he explained that "these dinars were initially converted into US dollars, which are more beneficial to Iran, through a currency auction organized by the Central Bank." Iraqi daily, but in November, Washington imposed restrictions on the auction so that unknown persons and countries that have imposed sanctions, such as Iran, can no longer use this service in order to obtain dollars.
The report quoted Iraqi officials and politicians close to Iran as saying, "This means that the Iranians have begun to rely heavily on the Iraqi black market in order to obtain dollars."
After the report drew attention to "the high exchange rates on the black market, the high prices of consumer goods, and the Iraqi government's suffering in order to secure salaries and pensions," it indicated that "officials said that illegal dollars were flowing to Iran, Turkey, Oman and Dubai."
In February, the exchange rate on the black market was about 1,800 dinars to the dollar, compared to 1,480 three months ago.
The report indicated that in light of the high cost of exchanging the dinar on the black market, the cost of illegal transaction fees has increased significantly.
Iran's loss
Iraqi officials said, "The Iranians are now paying about 40% more for every million dollars they spend, which is money that goes to brokers, intermediaries and dollar smugglers who transfer money out of Iraq."
The report quoted a senior Iraqi official as saying, "The Iranians have incurred very large losses over the past four months because of their relentless pursuit of buying dollars from the black market, especially after the recent controls imposed by the US Federal Reserve on the currency auction."
Now, Iraqi officials say, the Iranians decided to stop buying dollars on the black market in Iraq last week, and shortly thereafter, the exchange rate on the black market plummeted. The price on Monday was 1495 dinars to the dollar, compared to 1580 the previous day.
The report indicated that a large number of exchange companies, especially in the Kurdistan Region, which is the main land corridor for dollar smuggling operations, began to secure dollars for anyone, after booking the currency for their private clients during the months of February and March.
The report quoted a senior official as saying, "The Iranians have no choice but to stop the process. It has turned into a drain and they are not in a situation where they lose half of their money in exchange for dollars," adding, "Fortunately, the market's response is quick. Dollar exchange rates have begun to decline and will decline." More in a few days.
The official pointed out that "the banking companies in Kurdistan were among the main players in dollar smuggling operations in recent months, and therefore they took the initiative before anyone else to get rid of the large quantities of dollars that they had stored in order to limit their losses."
However, the British report considered that it is too early to say specifically whether the drop in the price and the decision of the Kurdish banking offices to unload dollars is a direct result of the Iranians stopping their activities through the black market, especially since it is not clear where Iran will now get its dollars from.
In this context, the report pointed to an increase in ambiguity due to the noticeable increase in sales in the central bank's currency auction during the past two weeks, as the currency auction data for the last week of March shows that no less than 200 million dollars were sold per day in The average, compared to $168.5 million in the last week of February.
According to the report, most of these sales were amounts to cover "foreign transfers" and credit prepaid electronic cards.
The report mentioned the statement of the Deputy Governor of the Central Bank, Ammar Khalaf Hamad, as saying to the semi-official Al-Iraqiya channel, that “the increase in this activity is due to the lifting of all restrictions on auctions.” However, Iraqi officials confirmed that “the US Federal Reserve has not made any changes to the restrictions imposed.” On the auction, and therefore the increase in activity through the auction, caused by other factors, such as the Ministry of Commerce's need for dollars to pay for food purchases.
A senior official confirmed to the British website that there is no change in the procedures imposed by the US Reserve Board on the currency auction, just as there are no exceptions, except that "there is a gradual return of traders to participate in the auction away from private banks," adding that "other large transfers are due to the large withdrawal of dollars." By citizens via prepaid electronic cards, which represent the latest means of smuggling dollars.
And after the report referred to "the new smuggling mechanism represented in allowing every Iraqi traveler to obtain 7 thousand dollars in cash at the airport or an exchange company, with proof that they deposited amounts in a local bank account equivalent in Iraqi dinars, which benefited the exchange companies, brokers and smugglers," he explained that " Some smugglers used fake tickets to get money, while others gave the Iraqis free flights to Dubai, Turkey, Iran and Lebanon in return for withdrawing 7 thousand dollars.
The report also indicated that "smugglers and exchange companies are contacting Iraqis to see if they are willing to accept that smugglers use their own identities to obtain money at the airport in exchange for payment, while dozens of Iraqis, including officials from the government, said they were surprised to discover that their names were listed." In the lists of passengers who received dollars, which indicates that their identities were stolen in order to obtain cash."
Therefore, on March 14, the Central Bank issued new guidelines that reduced the share of the traveler to only two thousand dollars. It also allowed people who intend to travel to obtain $10,000 at the official exchange rate of 1,320 dinars through prepaid electronic cards issued by licensed banks and electronic payment companies, which can only be used abroad, but can be recharged.
In turn, private banks and exchange companies began issuing thousands of prepaid cards to Iraqis who allowed the companies to use their identity papers in exchange for small sums of money.
According to the report, "This trick was quickly discovered by the authorities, so customs began to arrest travelers who had hundreds of prepaid cards, as a traveler carrying 366 cards was arrested, and three others carrying 522 cards, while Iraqi officials indicated that the destination of these travelers was to either to Dubai or Jordan.
In addition, the report stated that the Iranians stopped buying smuggled dollars.
The report quoted an adviser to the Iraqi Prime Minister, Mohammed Shia' al-Sudani, as saying that the Iranians "are angry because they hold us responsible for the losses they incurred in order to obtain dollars."
According to the advisor, people from Iran and Turkey did not return to smuggling dollars from Iraq, and kept Dubai and Jordan as their main destinations. He explained that "these funds are withdrawn from Jordan or Dubai, and then deposited in smugglers' accounts, which they provide to those who request quick transfers away from the supervision of the US Federal Reserve in exchange for large commissions."
Iranian pressure
The report quoted Iraqi and Iranian officials as saying, "Iraq was able to pay off all its debts owed to Iran last October, but the money was placed in a special account in the Iraqi Trade Bank, which Iran can use to purchase goods that are not affected by US sanctions, such as medicines."
However, the report said, "Iran is using the money that Iraq owes it by any means it chooses."
The report quoted Iraqi officials as saying that "Iran still has $8 billion in this account, and it is unable to withdraw it because the US Federal Reserve keeps it under its supervision."
The officials revealed that "Iraqi Foreign Minister Fouad Hussein and Central Bank Governor Ali Mohsen Al-Alaq are engaged in negotiations with US officials with the aim of finding an appropriate mechanism for Iran to be able to obtain this money."
Al-Sudani's advisor said, "The Iranians say that you have arranged all your papers with the Americans, and neglected us. We want our money and we do not want anything else."
And the Iraqi advisor continued to say, "We are currently seeking to find a compromise solution that satisfies both parties. We told the Americans: We have done everything you asked for, and you must give us something in return."
The Iraqi advisor said, "Iraq asked Washington to obtain an exemption that would allow it to pay money to Iran for its past and future energy imports in dollars without any problems, until further notice." He added, "The Americans said they understood our position and promised to make recommendations to the US Treasury Department, but we have not received a final response yet."
The report concluded by saying, "The indications are that the Americans will gradually reduce pressure on this issue."
Translated by: Shafak News Agency
[You must be registered and logged in to see this link.]
[You must be registered and logged in to see this image.]
2023-04-07 12:59
Share
Font
Shafaq News / Today, Friday, a British report website revealed an "Iraqi financial mediation" with Washington to release funds in US dollars requested by Tehran from Iraq, and while indicating that there is Iranian pressure in this regard, it confirmed the existence of dollar smuggling in the procedures of the Iraqi local authorities to grant the dollar for citizens.
Loss of Iraq
The British "Middle East Eye" website quoted Iraqi officials as saying, "Iran was wasting money in order to buy US dollars from the black market in Iraq, but now it is pressuring the Iraqi government to pay its debts owed to Tehran through official channels, while Baghdad With mediation between it and Washington, so that the Iranians can get their remaining money ($8 billion), in addition to exempting transactions between the two countries from sanctions.
The British report, translated by Shafaq News Agency, indicated that "since the United States imposed a severe sanctions regime on Iran in 2018, Iraq has suffered to be able to pay the price of Iranian goods and services such as gas, electricity, foodstuffs, building materials, and other needs, as the total trade between them reached about 14 billion." dollars annually.
And after the report pointed out that Iraq was able last year to pay most of its gas and electricity debts for the period 2019-2021 in Iraqi dinars, he explained that "these dinars were initially converted into US dollars, which are more beneficial to Iran, through a currency auction organized by the Central Bank." Iraqi daily, but in November, Washington imposed restrictions on the auction so that unknown persons and countries that have imposed sanctions, such as Iran, can no longer use this service in order to obtain dollars.
The report quoted Iraqi officials and politicians close to Iran as saying, "This means that the Iranians have begun to rely heavily on the Iraqi black market in order to obtain dollars."
After the report drew attention to "the high exchange rates on the black market, the high prices of consumer goods, and the Iraqi government's suffering in order to secure salaries and pensions," it indicated that "officials said that illegal dollars were flowing to Iran, Turkey, Oman and Dubai."
In February, the exchange rate on the black market was about 1,800 dinars to the dollar, compared to 1,480 three months ago.
The report indicated that in light of the high cost of exchanging the dinar on the black market, the cost of illegal transaction fees has increased significantly.
Iran's loss
Iraqi officials said, "The Iranians are now paying about 40% more for every million dollars they spend, which is money that goes to brokers, intermediaries and dollar smugglers who transfer money out of Iraq."
The report quoted a senior Iraqi official as saying, "The Iranians have incurred very large losses over the past four months because of their relentless pursuit of buying dollars from the black market, especially after the recent controls imposed by the US Federal Reserve on the currency auction."
Now, Iraqi officials say, the Iranians decided to stop buying dollars on the black market in Iraq last week, and shortly thereafter, the exchange rate on the black market plummeted. The price on Monday was 1495 dinars to the dollar, compared to 1580 the previous day.
The report indicated that a large number of exchange companies, especially in the Kurdistan Region, which is the main land corridor for dollar smuggling operations, began to secure dollars for anyone, after booking the currency for their private clients during the months of February and March.
The report quoted a senior official as saying, "The Iranians have no choice but to stop the process. It has turned into a drain and they are not in a situation where they lose half of their money in exchange for dollars," adding, "Fortunately, the market's response is quick. Dollar exchange rates have begun to decline and will decline." More in a few days.
The official pointed out that "the banking companies in Kurdistan were among the main players in dollar smuggling operations in recent months, and therefore they took the initiative before anyone else to get rid of the large quantities of dollars that they had stored in order to limit their losses."
However, the British report considered that it is too early to say specifically whether the drop in the price and the decision of the Kurdish banking offices to unload dollars is a direct result of the Iranians stopping their activities through the black market, especially since it is not clear where Iran will now get its dollars from.
In this context, the report pointed to an increase in ambiguity due to the noticeable increase in sales in the central bank's currency auction during the past two weeks, as the currency auction data for the last week of March shows that no less than 200 million dollars were sold per day in The average, compared to $168.5 million in the last week of February.
According to the report, most of these sales were amounts to cover "foreign transfers" and credit prepaid electronic cards.
The report mentioned the statement of the Deputy Governor of the Central Bank, Ammar Khalaf Hamad, as saying to the semi-official Al-Iraqiya channel, that “the increase in this activity is due to the lifting of all restrictions on auctions.” However, Iraqi officials confirmed that “the US Federal Reserve has not made any changes to the restrictions imposed.” On the auction, and therefore the increase in activity through the auction, caused by other factors, such as the Ministry of Commerce's need for dollars to pay for food purchases.
A senior official confirmed to the British website that there is no change in the procedures imposed by the US Reserve Board on the currency auction, just as there are no exceptions, except that "there is a gradual return of traders to participate in the auction away from private banks," adding that "other large transfers are due to the large withdrawal of dollars." By citizens via prepaid electronic cards, which represent the latest means of smuggling dollars.
And after the report referred to "the new smuggling mechanism represented in allowing every Iraqi traveler to obtain 7 thousand dollars in cash at the airport or an exchange company, with proof that they deposited amounts in a local bank account equivalent in Iraqi dinars, which benefited the exchange companies, brokers and smugglers," he explained that " Some smugglers used fake tickets to get money, while others gave the Iraqis free flights to Dubai, Turkey, Iran and Lebanon in return for withdrawing 7 thousand dollars.
The report also indicated that "smugglers and exchange companies are contacting Iraqis to see if they are willing to accept that smugglers use their own identities to obtain money at the airport in exchange for payment, while dozens of Iraqis, including officials from the government, said they were surprised to discover that their names were listed." In the lists of passengers who received dollars, which indicates that their identities were stolen in order to obtain cash."
Therefore, on March 14, the Central Bank issued new guidelines that reduced the share of the traveler to only two thousand dollars. It also allowed people who intend to travel to obtain $10,000 at the official exchange rate of 1,320 dinars through prepaid electronic cards issued by licensed banks and electronic payment companies, which can only be used abroad, but can be recharged.
In turn, private banks and exchange companies began issuing thousands of prepaid cards to Iraqis who allowed the companies to use their identity papers in exchange for small sums of money.
According to the report, "This trick was quickly discovered by the authorities, so customs began to arrest travelers who had hundreds of prepaid cards, as a traveler carrying 366 cards was arrested, and three others carrying 522 cards, while Iraqi officials indicated that the destination of these travelers was to either to Dubai or Jordan.
In addition, the report stated that the Iranians stopped buying smuggled dollars.
The report quoted an adviser to the Iraqi Prime Minister, Mohammed Shia' al-Sudani, as saying that the Iranians "are angry because they hold us responsible for the losses they incurred in order to obtain dollars."
According to the advisor, people from Iran and Turkey did not return to smuggling dollars from Iraq, and kept Dubai and Jordan as their main destinations. He explained that "these funds are withdrawn from Jordan or Dubai, and then deposited in smugglers' accounts, which they provide to those who request quick transfers away from the supervision of the US Federal Reserve in exchange for large commissions."
Iranian pressure
The report quoted Iraqi and Iranian officials as saying, "Iraq was able to pay off all its debts owed to Iran last October, but the money was placed in a special account in the Iraqi Trade Bank, which Iran can use to purchase goods that are not affected by US sanctions, such as medicines."
However, the report said, "Iran is using the money that Iraq owes it by any means it chooses."
The report quoted Iraqi officials as saying that "Iran still has $8 billion in this account, and it is unable to withdraw it because the US Federal Reserve keeps it under its supervision."
The officials revealed that "Iraqi Foreign Minister Fouad Hussein and Central Bank Governor Ali Mohsen Al-Alaq are engaged in negotiations with US officials with the aim of finding an appropriate mechanism for Iran to be able to obtain this money."
Al-Sudani's advisor said, "The Iranians say that you have arranged all your papers with the Americans, and neglected us. We want our money and we do not want anything else."
And the Iraqi advisor continued to say, "We are currently seeking to find a compromise solution that satisfies both parties. We told the Americans: We have done everything you asked for, and you must give us something in return."
The Iraqi advisor said, "Iraq asked Washington to obtain an exemption that would allow it to pay money to Iran for its past and future energy imports in dollars without any problems, until further notice." He added, "The Americans said they understood our position and promised to make recommendations to the US Treasury Department, but we have not received a final response yet."
The report concluded by saying, "The indications are that the Americans will gradually reduce pressure on this issue."
Translated by: Shafak News Agency
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