Iraq Economic News and Points to Ponder Tuesday AM 11-14-23
Tlm724 Administrator Bondlady’s Corner
What Is The Importance Of The Recent Iraqi-American Agreement In The UAE Regarding The Dollar?
Economy |12-11-2023, 20:01 | Baghdad today – Baghdad Today, Sunday (November 12, 2023), economic affairs researcher Nasser Al-Kanani revealed the importance of the Iraqi-American negotiations in the Emirates regarding the recent agreement on dollar transfer mechanisms.
Al-Kinani said to “Baghdad Today” that “the recent dialogues between the Central Bank of Iraq and the US Federal Reserve, in the UAE, are a very important step in order to find real solutions to the dollar crisis that Iraq has been going through for nearly a year, and for which no solutions have been found.” As the dollar exchange rate continues to rise.”
He added, “Enhancing the balances of some Iraqi banks in dollars directly by (JP Morgan Bank) is an important step that will alleviate the scarcity of dollars in banks and the market, which was the reason for the recent rise in the exchange rate in the parallel market.
We also believe that implementing what was stated in the agreement The Iraqi-American latest regarding commercial transactions in the UAE dirham and the Chinese yuan will prompt a reduction in the dollar exchange rate in the coming days.”
Earlier, reports revealed an agreement between the Central Bank of Iraq and the US Federal Bank during a meeting in the Emirates, to add new banks as part of the work of enhancing foreign remittances.
According to the agreement, the number of banks capable of enhancing balances and transferring currencies abroad became 10 instead of 5 banks, and enhancing their balances in dollars in advance, in addition to strengthening a number of banks in Chinese yuan or the UAE dirham and the Indian rupee, which allows foreign trade to be easily enhanced and financed with dollars.
https://baghdadtoday.news/235386-ما-أهمية-الاتفاق-العراقي-–-الامريكي-الأخير-في-الامارات-بشأن-الدولار؟.html
What Is The Role Of Private Banks In The Recovery Of The Parallel Market For The Dollar?
Politics/Economy |Yesterday, 21:37 | Baghdad Today – Baghdad Member of the Parliamentary Finance Committee, Representative Mudar Al-Karawi, confirmed today, Monday (November 13, 2023), that the
role of banks must be reflected in financing development projects and providing liquidity and lending to citizens and projects, but the role of private banks in Iraq is limited to currency trade.
Al-Karawi said in an interview with “Baghdad Today” that “recent years have witnessed the opening of dozens of private banks in Baghdad and the rest of the Iraqi governorates in a major revival of the banking sector, which is the largest of its kind since the founding of the Iraqi state more than 100 years ago.”
He added, “Despite our support for the establishment of banks, what is more important in our view is what they provide to the national economy,
especially since banks are concerned with many issues, most notably financing development projects and overcoming obstacles in providing lending liquidity to citizens, companies, and businessmen, and entering into economic partnerships that directly revive the investment file, but what we see is It is different in most cases, and the role of banks is directly defined in the currency trade file.”
He pointed out that “the presence of more private banks than government banks, or vice versa, does not constitute a factor affecting the exchange rate of the dollar or the parallel market,
if the latter is managed in a way that contributes to stopping its smuggling and speculation, ending the dollarization file, and returning the dinar for all internal financial transactions,” pointing out that
“The file of private banks needs real reconsideration and evaluation in order to push them to open up towards financing investments and increasing the pace of financial lending.” He continued,
“It is unacceptable that some banks turn into more like banking offices and earn money through the currency auction, which needs an objective reconsideration.”
The total number of banks in Iraq is 81 banks, of which the number of government banks is only 7, while the number of private banks is 74 banks, according to economic statistics.
On the other hand, the list of dollar sales in the Central Bank of Iraq shows that the number of banks participating in the currency auction, whether for cash sales or foreign transfers in general, ranges between 25 and 30 banks only.
Economic and political circles have accused specific banks of taking over the currency auction at the Central Bank, while
experts point out that this comes because of the so-called “correspondent banks” these banks own in other countries, which makes them capable of organizing foreign financial transfers compared to those banks that It does not have “correspondent banks”.
However, according to a recent agreement between the Central Bank of Iraq and the Federal Bank, the number of banks capable of conducting external financial transfers will be increased from 5 banks to 10 banks, and these new banks will be strengthened with advance shares of the dollar,
making them able to carry out external transfers by relying on the correspondent banks that they own in the country. Several countries.
https://baghdadtoday.news/235462-مادور-المصارف-الأهلية-في-انتعاش-السوق-الموازي-للدولار؟.html
What Do You Know About Trading Companies? How Do You Determine Its Trustworthiness?
Economy Trading companies forex 2023-11-13 11:29 The foreign exchange market, known as Forex, is a global market characterized by a decentralized market that includes the trading of major currencies such as the dollar, the euro, the British pound, and emerging market currencies such as the Turkish lira and the South African rand.
The trading process is carried out through brokerage companies, which have become incredibly widespread these days thanks to the availability of easy technological solutions and advanced communication tools. The main role of Forex brokers is to facilitate retail traders’ access to the Forex market and execute their trades via liquidity providers.
While we have witnessed in recent years an amazing proliferation of brokerage companies, their desire is to seize a portion of the market in which the trading volume is estimated in the billions. We find that among these companies seek to operate under a legal umbrella in accordance with specific rules in this market, in the context of seeking to obtain an additional advantage for customers.
The importance of brokerage companies operating in the Forex field obtaining a legal license
Licensing ensures that the brokerage company operates within the legal framework set by the regulatory authorities in the country or region in which it provides its services. Primarily helping the company avoid legal problems and penalties resulting from violating the rules and regulations of trading in the market. At the same time, the license ensures that the brokerage company adheres to specific standards of financial and operational behavior, which guarantee the safety of clients’ funds.
For example, the regulatory authorities, which we will detail, require basic conditions for all brokerage companies, most notably the segregation of client funds, maintaining sufficient capital, and implementing… Strong risk management practices, as well as undergoing periodic audits. This helps the company protect its reputation and enhance trust among its customers and partners.
At the same time, the license enables the brokerage company to expand its market reach and its clients by reaching different jurisdictions that require a valid license to operate in the Forex market. This helps the company increase its revenues and profits by offering its services on a broader and more diversified scale.
Licensing also facilitates the establishment of banking relationships necessary for the smooth and efficient operation of the brokerage company, especially since most financial institutions and liquidity providers prefer to work with licensed brokers, which ensures their credibility. This helps the company secure better terms and conditions for its transactions and banking services.
Trading through reliable and licensed trading companies
Although currency trading in the Middle East is not a new activity, it is a market that is expanding steadily, as many new traders enter the field periodically. In this regard, the basic advice is limited to learning before starting trading, and when making a trading decision, trading should only be done through trusted trading companies.
Forex brokers regulators
There are many authorities competent to regulate the work and oversight of brokerage companies operating in the field of currency and stock trading. Each regulatory body has a limited geographical scope, and the rules governing each body differ from the other.
Some of the regulatory bodies for Forex brokerage companies in the world are at the forefront as an important guarantee for any company that falls under its banner.
The most prominent of these bodies is the Financial Conduct Authority (FCA) in the United Kingdom. Its roles vary, supervising the conduct and precautionary standards of a large number of financial companies in the Kingdom. It acts as a safeguard for the financial system of financial companies operating in the country, imposing penalties and compensation on companies that flout the rules.
The Cyprus Securities and Exchange Commission (CySEC) is in an advanced position as a regulatory and supervisory body for many Forex brokers, as it has a resonant name with a good reputation for traders looking for licensed brokerage companies, while at the same time representing an attraction for these companies due to low taxes and favorable regulations. ]
The most prominent rules by which the Cyprus Commission obligates Forex companies to adhere to the MiFID II directives, which set standards for investor protection, market transparency and financial stability in the European Union. The Cyprus Securities and Exchange Commission also operates a compensation fund that covers clients up to €20,000 in the event of a regulated company failure.
Regulating Forex Brokers in the Middle East
Dubai is at the forefront as a destination for Forex companies in the Middle East and the Arab world, with the authorities in Dubai interested in developing laws to attract investment companies in all fields, as the emirate seeks to maintain its current leadership as a major financial center in the Middle East region. In the UAE, we find the Dubai Financial Services Authority (DFSA) as the main regulatory body for Forex brokers in the Middle East, as it supervises the activity of financial companies in the Dubai International Financial Center. With the aim of strengthening financial markets and adding a kind of stability and transparency.
The DFSA sets standards for licensing, conduct, capital, risk management and reporting, and administers a compensation fund that covers clients up to $250,000 in the event of a regulated company going bankrupt.
Also located in Dubai is the Securities and Commodities Authority (SCA) which is the main regulatory body for forex brokers in the UAE, with the exception of the Dubai International Financial Centre. Aiming to protect investors, the SCA also administers the Investor Protection Fund, which covers clients up to AED 500,000 in the event of a regulated company going bankrupt.
https://shafaq.com/ar/اقتصـاد/ماذا-تعرف-عن-شركات-التداول-وكيف-تحدد-مدى-ثقتها
The Sudanese Advisor Confirms The Presence Of Positive Financial Indicators For The Year 2024
November 11 Information / Baghdad… On Saturday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained in numbers the financial situation data, indicating that Iraq did not need to borrow this year, while confirming that the indicators for next year 2024 are positive.
Saleh told the official agency and his follower “Al-Ma’louma” that,
“At the level of financial planning for oil resources, the tripartite federal general budget for Iraq adopted an average price of a barrel of oil (as planned oil revenues and over the course of each year of the fiscal years 2023, 2024, and 2025) and adopted a price of $70.” per barrel of crude oil exported, with export capacities reaching 3 million and 400 thousand barrels per day.”
He added, “The estimated price is a hypothetical precaution to avoid the risks of the cycle of oil assets, and there are financing preparations planned by the budget in the event that oil prices touch an annual average of $70 per barrel or less, providing a hypothetical annual borrowing leverage in the event that prices fall below their estimated limits.”
Saleh continued, “The fiscal year 2023 did not indicate an urgent need for borrowing to cover the hypothetical deficit for two main reasons.
The first is: “The average price of Iraqi exported oil is still higher than $70 per barrel, with an increase of at least $10 per barrel over what was planned.”
Crude oil exported as an annual average, which constituted, in numbers, cash revenue that compensated the country from resorting to internal and external borrowing (with the exception of some prior international financial obligations to finance some investment projects).
The other reason is the accumulation of financial balances from the previous fiscal year amounting to approximately 23 trillion dinars, which also helped.
The general budget was able to manage its expenditures and obligations, while at the same time reducing the hypothetical deficit gap and identifying positive indicators of the country’s financial situation.”
The financial advisor to the Prime Minister pointed out that
“the data for the next fiscal year 2024 within the tripartite budget and through perceptions of the reality of the oil market and current energy prices provide positive indicators and an increase in global demand for crude oil, which gives reassuring signs about the financial implementation paths for the coming year, and provides relative reassurance.” In budget resources in the next fiscal year, the fiscal policy may not require borrowing, except within acceptable minimum limits that do not affect the accumulation of debt indicators.
Borrowing may be when necessary to overcome an emergency and temporary deficit that requires providing a (bridge loan) for the purposes of carrying out development projects similar to the bonds that have been issued. Recent reconstruction and specific amounts.”
Saleh warned that “the state’s partnership with the private sector will remain one of the pillars of financial diversification as a strategy for Iraq and is outside the country’s rentier flows, that is,
by creating joint national financial leverages with the private sector that will constitute the country’s financial strategy to provide stronger guarantees in the sustainability of development and the stability of its financing.”
https://almaalomah.me/news/46687/economy/مستشار-السوداني-يؤكد-وجود-مؤشرات-مالية-إيجابية-لعام-2024
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