More Iraqi News Tuesday PM 2-16-21
TLM724 Administrator BondLady’s Corner
An Economist Warns Of A Decline In The Citizen’s Purchasing Power As The Dollar Exchange Rate Continues To Rise
08:33 – 16/02/2021 Information / Special Economic expert, Wissam Al-Tamimi, warned of the decline in the purchasing power of the Iraqi citizen in light of the continued high exchange rate of the dollar in the local markets, pointing out that the government is seeking to drain the money inside homes, which will increase the suffering of the citizen in the coming days. Al-Tamimi told “the information”, “Talking about the presence of 34 trillion dinars inside homes is something that the government has exploited in an attempt to obtain these sums by raising the exchange rate of the dollar against the dinar.”
He added that “the purchasing power of the citizen and the owners of the market shops will decrease significantly, due to the continuing rise in prices, especially since many merchants emphasized the continued rise in food prices without any government control over this rise.”
And that “the coming days will witness a significant increase in poverty rates, as the government’s continued disregard for the people’s demands, will have disastrous results on the economic level for the individual and even the employee, as it should reduce the dollar exchange rate with the continued rise in oil prices.” 25 n
Representative economy: the difference in the exchange rate of the dollar against the dinar will be used to bridge the financial gap
Economy Tuesday 16 February 2021 | 09:47 am| Views: 35 A member of the Parliamentary Economic and Investment Committee, Hamid Al-Mousawi, confirmed that the difference in the exchange rate of the dollar against the dinar will be used to bridge the financial gap, pointing out that the state is going towards supporting the private sector to attract the largest number of unemployed and graduates .
Al-Mousawi said, “What has been verified from the difference in the exchange rate of the dollar after the government’s decision to reduce the value of the dinar against the dollar has reached 12 trillion dinars, as this amount will be invested to fill the budget deficit .”
He added that “the high exchange rate of the dollar against the dinar will not be used to increase expenditures as desired by the government, but rather will be invested to bridge the financial gap .”
And that “the government is going towards supporting the private sector in order to attract the largest possible number of unemployed and graduates, in light of the deficit suffered by the budget and salaries that amounted to 53 trillion dinars.” https://aynaliraqnews.com/index.php?aa=news&id22=143852
Al-Nusiri Calls On The Government To Preserve Hard Currency And Prevent Its Leakage To The Outside
Money and business Economy News _ Baghdad The economic and banking advisor, Samir Al-Nasiri, confirmed, on Tuesday, that hard currency in Iraq is still subject to leakage outside the country and called on the government and its specialized economic institutions to take measures, mechanisms, and economic, financial and monetary policies.
Al-Nusiri said in an interview with “Al-Eqtisad News”, that the foreign currency will not return due to unplanned and uncontrolled imports of consumer and unnecessary goods and goods from poor origins and outside the Iraqi standard specifications, while putting forward a set of proposals that would preserve the hard currency that Iraq needs in His current crisis he is going through.
He added that Iraq since 2003 until now has not stimulated and activated the productive sectors such as industry, agriculture, energy and tourism, and the local product, which is the basis for determining imports, has not been supported, indicating that import is a complement to local production and not a substitute for it, but after the opening of borders and markets and the entry of poor imported materials at prices
Low compared to the local product due to the lack of security of raw materials and government support, which led to the exit of hard currency, mainly through imports of the private sector.
Al-Nusiri stated that the best solution to preserve hard currency is for the government to support local production and activate the laws to protect the local product and protect the consumer, which are laws that have been on the shelves for years and have not been activated, stressing the importance of providing raw materials and electricity to the factories, structuring government factories and engaging the private sector. In its management.
He continued that Iraq without local products that match the importer cannot maintain its hard currency as required, pointing to the need for the government to address the structural imbalance in the economy, activate the productive sectors, and address the deficit in non-oil revenue and the deficit in the balance of payments and the trade balance.
“We are a country that does not have a clear economic approach, and the private sector has not been involved in making economic decisions, which requires and must be supported by the government,” Al-Nusairi said. Number of observations 110 Date added 02/16/2021
Representative Economics Calls For Amending An Article Related To Companies In The Budget
Economie| 03:33 – 16/02/2021 Baghdad – Mawazine News, a member of the Parliamentary Economy Committee, Mazen Al-Faily, demanded, on Tuesday, to amend an article of the General Budget Law for the current year related to public companies.
Al-Faili said in a statement that Mawazine News received a copy of: “We demand that the Finance Committee’s proposal be amended to Article (31) of the General Budget Law, which concerns public companies, and whose implementation leads to a reduction in the capital reserve for public companies, which leads to weakening their productive and investment activities and This results in weak competition with foreign products and gradually turns from winning companies to losing companies, which exposes them to sale, and thus this will lead to layoffs of thousands of employees working in these companies and increase the rate of unemployment and poverty in society.
Al-Faili also called for “providing full support to these companies to promote them, develop them, supply them with modern production lines, rehabilitate the infrastructure they need, issue decisions that help them market their production, and oblige ministries and government departments to buy the local product in order to move them towards catching up with modern technology.” Leading to the comprehensive economic development of the country. “Ended https://www.mawazin.net/Details.aspx?jimare=141985
The Iraq Stock Exchange Index Declined At The Close Of Trading Tuesday
Economie| 04:51 – 02/16/2021 BAGHDAD – Mawazine News The Iraqi market indices closed today, Tuesday, the middle of the week’s trading session, with a collective decline.
The general index of the Iraq Stock Exchange fell by 0.42% to reach the level of 530.03 points.
The number of shares traded reached 1.5 million, valued at 1.8 billion dinars, through the implementation of 648 executed deals.
During today’s trading, 34 companies were traded, of which 8 companies rose, 11 fell, while the prices of 15 companies stabilized without change.
The number of shares purchased from non-Iraqi investors in the market reached 95 million, at a value of 61 million dinars, through executing 10 deals on shares of 3 companies.
The number of shares sold by non-Iraqi investors in the market reached 32 million shares, at a value of 55 million dinars, through the implementation of 44 transactions on shares of 4 companies.
The number of shares purchased from non-Iraqi investors in the market reached 95 million shares, valued at 61 million dinars, through the implementation of 44 transactions on shares of 4 companies.
The most profitable companies
1- Eligibility for Insurance.
2- Al-Mansour Pharmaceutical.
3- Asiacell Communications.
The most losing companies
1 – National Bank.
2- Al Mamoura Real Estate.
3- Mansour Bank.
Punitive Reveals: Dollar Speculation With Corrupt Banks Cost The State A Trillion Dinars A Month
Political Tuesday 16 February 2021 | 01:56 PM| Views: 46 A member of the Parliamentary Legal Committee, Hussein Al-Oqabi, revealed, on Tuesday, that Iraq lost a trillion dinars as a result of speculation adopted by corrupt private banks after the conflicting news about the price of the dollar, indicating that the only solution is to return the dollar to its current price .
“We call on the judiciary and the public prosecution to open a file on the loss of Iraq about one trillion dinars, one month after the leaks of raising the dollar ahead of its time by corrupt banks, ” Al-Aqabi said . Suspect
He added that “the currency auction and oil licensing rounds contain great suspicions of corruption and annually cost the state $ 15 billion, and the government must cancel it .”
Al-Aqabi explained that “the current trend is towards forming a political bloc that mobilizes in order to restore the unfair decision against the Iraqi economy to raise the price of the dollar and return it to its previous era.” https://aynaliraqnews.com/index.php?aa=news&id22=143875
Punishment: Dollar Speculation With Corrupt Banks Cost The State A Trillion Dinars A Month
13:16 – 16/02/2021 The information / Baghdad ..Member of the Parliamentary Legal Committee, Hussein Al-Oqabi, revealed, on Tuesday, that Iraq had lost a trillion dinars as a result of speculation adopted by corrupt private banks after the conflicting news about the price of the dollar, indicating that the only solution is to return the dollar to its current price.
“We call on the judiciary and the public prosecution to open a file regarding Iraq’s loss of about one trillion dinars, one month after the leaks of raising the dollar ahead of its time by corrupt banks,” Al-Aqabi said in a statement to the information .
He added that “the currency auction and oil licensing rounds contain great suspicions of corruption and annually cost the state $ 15 billion, and the government must cancel it.”
Al-Aqabi explained that “the current trend is towards forming a political bloc that mobilizes in order to restore the unfair decision against the Iraqi economy to raise the price of the dollar and return it to its previous era.” End / 25 D. https://www.almaalomah.com/2021/02/16/520885/
Oil Prices Jump With A Severe Freeze In America, Which Has Shut Down Its Oil Wells
Economy Tuesday 16 February 2021 | 09:53 in the morning| Views: 116 Oil prices rose on Tuesday, after the worsening energy crisis in the United States disrupted crude production and forced the closure of some of the country’s largest refineries, and prices rose due to optimism for the global economic recovery amid the acceleration of the launch of COVID-19 vaccines .
Brent crude rose 35 cents, or 0.6 percent, to $ 63.65 a barrel at 05:09 GMT, after rising to its highest level since January 2020 in the previous session .
US West Texas Intermediate crude futures rose 77 cents 1.33% to $ 60.29 a barrel .
Cold weather in the United States shut down oil wells and refineries in Texas on Monday and imposed restrictions on operators of natural gas and crude pipelines .
A rare deep freeze prompted the state’s electrical power suppliers to enforce blackouts, resulting in power cuts to nearly 3 million homes and businesses .
Texas produces approximately 4.6 million barrels of oil per day and is home to 31 refineries, the largest number in any US state, according to EIA data, including some of the largest in the country .
The World Health Organization (WHO) on Monday listed the University of Oxford’s Novel Coronavirus (COVID-19) vaccine and AstraZeneca for emergency use, expanding access to the relatively inexpensive vaccine in the developing world .
Unilateral production cuts in Saudi Arabia have also helped rise by more than 20% this year, as swollen global stocks have been pulled out even as the stubborn coronavirus continues to increase the lockdown.b https://aynaliraqnews.com/index.php?aa=news&id22=143854
An Economist Confirms That The Banking Sector, Both Public And Private, Is Not Positive About The Country’s Economic Process
Tuesday 16, February 2021 10:39 | Economical Views: 326 Baghdad / NINA / Economic expert Saleh Al-Hamashi confirmed that the banking sector, both public and private, was not positive towards the economic process in the country.
He told the Iraqi National News Agency ( NINA ): The role of the banking sector in Iraq, both public and private, has not been positive towards the economy in the country despite the presence of more than 72 private and governmental banks.
Al-Hamashi attributed this to many reasons, the most important of which is corruption, quick profit, and the lack of a law to protect investors, so this sector resorted to safer investments such as the window for selling currency, short-term loans to employees, and the real estate sector in the field of housing because of the safety and the great guarantees that preserve the capital of the worker.
He added: The government represented by the Ministry of Finance and the Central Bank is comfortable with this investment despite its lack of feasibility towards the Iraqi economy to solve the housing crisis. / End 3
Deposit Guarantee Company: We Give The Highest Deposit Compensation In The Region For Bankrupt Banks
Executive Director of the Iraqi Deposit Insurance Company, Walid Idi. “Economy News”
Dialogues Economy News – Baghdad On Tuesday, the Deposit Insurance Company announced its intention to join a global institution in early 2022 to enhance its banking potential.
The company’s executive director, Walid Eidi, said in an interview with “Al-Eqtisad News” that the company started the work of joining a global deposit insurance institution to strengthen its banking position.
He added that the compensation granted by the company is the highest and fastest in the Arab region.
Below is the text of the interview:
First of all, would we like to get to know the deposit insurance company in general?
The idea of establishing the company began in 2008, when I was general manager of the banking department at the Central Bank of Iraq. I presented a study to the bank’s board of directors at the time to establish a deposit guarantee company like what exists in all countries of the world, as Iraq and Somalia were the only countries that did not have such this company.
During that period, a working group was formed under my chairmanship that included representatives of government private banks to prepare a law for them, and in fact we prepared the law and it was discussed in the Iraqi Private Banks Association, then it was sent to the State Council for scrutiny and sent to the Council of Ministers, and the latter referred it to the House of Representatives in 2009 for legislation.
The company’s draft law was neglected in the House of Representatives for a period of 6 years due to the general conditions that Iraq went through, and in 2015 we withdrew the draft law from the House of Representatives and approved it by the Council of Ministers as a company’s regulation that contains 16 articles and carried No. 3 of 2016.
After that period, a committee was formed to implement the company’s system, consisting of the central bank as well as other bodies, and the team began its activities.
* How much is the capital of the company?
The paid-up capital of the company is 100 billion dinars, the public sector contributes 48% to it, and the remainder is from the private sector.
* What is the deductible percentage from deposits?
With regard to the issue of deduction, the company charges one dinar out of every 10,000 dinars from deposits subject to guarantee in accordance with the provisions of Article 2 of the company’s system, which is the lowest deduction rate at the Arab level, as some companies will deduct 7% annually.
The company also grants the highest compensation rate in the region, estimated at 51% for deposits of less than 100 million dinars and 25% for deposits in excess of 100 million dinars.
* How long does a company take to pay back secured deposits?
Compensation shall be made within 30 days from the date of a judicial decision issued by the Financial Services Court declaring a bank bankruptcy. Note that the compensation period in some countries ranges from 6 months to a year.
Through a study conducted by the company, we came to the fact that we guarantee small depositors at a rate of approximately 80%, which is a very high percentage, compared to the global percentage that reaches 70% as a maximum. We built a database and information on public deposits.
And now we are negotiating with technology companies to build a very sophisticated electronic system for the company, through which we can compensate customers within 30 days, as mentioned earlier.
* Who does the company’s board of directors consist of?
– The company’s board of directors includes seven members, two of them represent the public sector, the rest are from the private sector banks and five reserve members from the private sector as well. They were selected in the company’s general assembly meeting held on August 31, 2019.
* During the last short period, what were the main activities of the company?
The company held 6 meetings of its board of directors. We began to receive the amounts related to insurance operations in the company’s account in the Central Bank of Iraq. Work has also been made to invest in the company’s capital to reap future profits and distribute it to the banks joining the company.
* What is the nature of these investments?
Investments currently consist of investment deposits and fixed deposits in commercial and Islamic banks for a period of one year, with an interest ranging between 6-7%. These investments will achieve financial returns for the company, and the latter will distribute them to joint stock banks and other parties contributing to the company’s capital.
* What is the percentage of banks ’contributions to the company’s capital?
The largest percentage in the company’s capital is for the banking sector, as it is estimated at 85%. Governmental banks contributed 4.1 billion dinars, and the National Pension Authority contributed 15 billion dinars, in addition to the contribution of other bodies such as insurance companies and other institutions.
* Why do not all banks join the company?
Up to now, the company has witnessed the accession of 61 banks, and as for the rest of the banks, it is working to complete some of the requirements necessary to join the company, especially since there are recent banks.
Does the company have a role in enhancing public confidence in the banking sector?
Through the company’s website and direct contacts, we seek to increase public confidence by responding to customer inquiries and publishing all information related to the company.
* What are the privileges that the bank that joins the company gets?
One of the privileges that the bank obtains, it becomes able to write on its official documents issued by it that “our customers’ deposits are guaranteed by the Iraqi Company to Guarantee Deposits, ”which enhances public confidence in the bank.
And when we joined the International Deposit Insurance Corporation ( AIDI ) in Switzerland, the latter has requirements, including that the bank that does not join the ranks of the company must write a sign on its branches and on its official books stating that the bank’s deposits are not guaranteed in the deposit insurance company. This will take place in Iraq after joining the Foundation.
* Is there any intention by you to join the International Deposit Insurance Corporation?
We approached the company verbally to request joining through their office in Amman which is managed on their behalf by the Central Bank of Jordan, and membership fees were determined, which were estimated at 17 thousand euros in addition to other fees, and the matter is still taking place in its routine context as it requires us to submit a complete file on the company, including it. Final accounts as well as other requirements for the purpose of joining. We expect to join the foundation in early 2022.
* What are the company’s goals for the next stage?
The first goal is to focus on the media side to reach the target groups, and the other goal is to eliminate the phenomenon of hoarding money in homes, and also to increase the company’s capital.
* last word ?
Let everyone be reassured, there is no losing deposit guarantee company in the world, because companies always take the necessary precautions to prevent bankruptcy, especially as they have the support of the central banks in the countries in which they operate.
Number of observations 152 Date of addendum 02/16/2021