Iraqi News Highlights Early Thursday Afternoon 11-10-22
Tlm724 Administrator Bondlady’s Corner
Researcher Detonates A Bomb: Iraqis Lose 2.5% Of The Value Of Their Money Deposited In Banks
848 economy 2022/11/09 23:11 Baghdad today-Baghdad Economic researcher Rami Jawad, on Wednesday, described the policy of the Central Bank of Iraq as contributing to inflation, by continuing to grant loans and maintaining a low interest rate, pointing out that depositors in banks lose about 2.5% of the value of their money.
“The central bank’s policy is still contributing to the rise in inflation rates, which reached 6%, which is a high percentage, and the central bank has not taken any measures to reduce the rise in inflation,
but its measures for granting loans and advances, reducing the interest rate and increasing cash issuance have become in the interest of the wealthy and hit the middle and low income people towards the poverty curve,” Jawad said in a statement seen by Baghdad today. He explained that
“the rise in inflation rates in exchange for a decrease in bank interest on deposits below the inflation rate means the loss of depositors in banks, because the real interest rates have become less than 0%,” noting that
“depositors are currently losing their balances in favor of borrowers from banks, especially large loans.
In a detailed explanation to clarify the matter, Jawad explained that
“banks grant annual interest on deposits at a rate ranging from (3.5% – 5%), and the current inflation rate (6%),
which means that the real interest on deposits is equal to (the interest rate minus the inflation rate), so the result is negative,” which means that
“every depositor currently in banks loses by (2.5% to 1%), so borrowing at low interest in times of high inflation is considered less risky and more profitable for entrepreneurs.
https://baghdadtoday.news/news/205728/باحث-يفجر-قنبلة-العراقيو
The Liabilities Of The Central Bank Of Iraq Increased To 181 Trillion Dinars
Economy , 2022/11/08 17 : 51, number of readings: 171 Baghdad-Iraq today:m The head of the future Iraq foundation for Economic Studies and consultations, Manar al-Obeidi, on Tuesday,
the increase in the liabilities of the Central Bank of Iraq to 181 trillion, an annual increase of 28%.
According to Al-Obaidi, this rise came as a result of:
– Government balances deposited with the bank increased by an annual rate of 470% to reach 25.6 trillion
– Local banks’ deposits with the central bank increased by an annual rate of 38% to reach 40.5 trillion dinars
– The increase of the issued cash by an annual rate of 8.6% to reach 81.67 trillion Iraqi dinars
The assets of the central bank were distributed as follows:
– 71.4 trillion Iraqi dinars in securities held, an annual increase of 74.4%
– The receivables of the Ministry of Finance amounted to 44.6 trillion dinars, an annual decrease of 1.9%
– Deposits with banks amounted to 27.3 trillion Iraqi dinars, an annual decrease of 1.9%
– The gold and cash reserves amounted to 26.9 trillion dinars with an annual increase of 16.9%
– Financing loans for small and medium-sized enterprises amounted to 10 trillion dinars, with an annual increase of 153%% https://iraqtoday.com/news/67348/ارتفاع-مطلوبات-البنك-المركزي-العراقي-إلى-181-تريليون-دينار
Central Bank Governor Inaugurates International Development Bank Branch In UAE
Yesterday’s economy, 22:02 Baghdad-conscious The governor of the central bank Mustafa Ghalib mukheef, on Wednesday, opened the branch of the International Development Bank of Iraq in the UAE.
A statement from the bank received by the Iraqi News Agency (WA) said that
“the governor of the central bank Mustafa Ghalib mukhaif opened the branch of the International Development Bank of Iraq in the United Arab Emirates/ Dubai”.
Mukheef stressed: “We are happy and proud to see one of our banks take a position within the UAE banking sector after receiving the trust of the Central Bank of the UAE,
an important event on which we build hopes for our banks to participate with this vibrant sector in the brotherly country.” https://www.ina.iq/170014–.html
The Governor Of The Central Bank Of Iraq Opens The Branch Of The International Development Bank In Dubai
November 10, 2022 His Excellency the governor of the Central Bank of Iraq, Mr. Mustafa Ghalib mukheef, inaugurated on Wednesday the branch of the International Development Bank in the United Arab Emirates/ Dubai.
His Excellency said: We are delighted and proud to see one of our banks take a position within the UAE banking sector after receiving the trust of the Central Bank of the UAE, an important event on which we build hopes for our banks to participate with this vibrant sector in the brotherly country.
His Excellency wished the bank, its management and employees continued progress and payment.
Media office Central Bank of Iraq 2022/11/9 https://cbi.iq/news/view/2123
“Raising The Value Of The Iraqi Dinar” Is It In Favor Of The Current Government?”
Sunday, 06-11-2022, AM 10:56 Karar Asadi 262 Written by: Dr. Bilal Al-Khalifa
The last government reduced the value of the Iraqi dinar against the US dollar from 1182 dinars per dollar to 1460 dinars, which reduced the value of the Iraqi dinar by 22.3%, the same value at which market prices rose because they are imported in dollars.
The operation was an instant solution to fill the deficit in financing government expenses, especially paying the salaries of state employees as a result of the drop in international oil prices, to know that 70% of government expenses are operating expenses and that 60% of operating expenses are salaries for employees and retirees, and therefore the last government proposed to solve this problem with the reform White Paper:
1-maximizing non-oil revenues, which are taxes, customs, duties, corporate profits, donations and subsidies, but the same government carried out the largest theft in Iraq in the tax department.
2-the other issue is to reduce public spending, especially operational, which mostly goes to salaries, by stopping appointments in only two ministries (according to the 2021 budget law) and streamlining ministries and departments by canceling the grades of those who are retired, die or transferred, and this point was also violated by the government by appointing large amounts and in the last two days of a caretaker government.
Thus, the devaluation of the Iraqi dinar is an immediate and not a strategic solution, which was due to the depreciation of a barrel of oil, which reached below 20 dollars,
but now the value of a barrel of oil has exceeded 90 dollars, and salaries are insured with an excess of funds, which went to increase the balance of hard currency, gold bullion and US bonds.
And here we wonder and say, is it good to return the old exchange rate to the dollar
We will address the answer to this question from two points of view, the first is from the point of view of the government and the second from the point of view of the citizen.
1-from the government’s point of view: the re-exchange of the dollar at the old rate has two explanations
Firstly, the return of the old exchange rate means a reduction in the value of prices in the market and thus indirectly helping the poor citizen, and this means increasing the popularity of the current government because it took an approach contrary to the previous government, which restricted the citizen.
But in return, the amount allocated for public spending will increase by 7 to 10 billion, which can be used for investment spending and the development of the state.
Secondly, maintaining the exchange rate means that the volume of spending is less and the amount of financial surplus is more, especially at current oil prices.the current government is required to carry out reforms and faces very big challenges in all sectors, including electricity, industry and agriculture.
it noted that the amount that can be spent on public spending in the event of a reduction in the exchange rate, can be used to establish electricity projects and it is possible to solve a significant part of at least 50% of the deficit in generation of more than 10 thousand megawatts.
2-from The Citizen’s side: usually, the citizen does not know the secrets of the big challenges facing the government in saving salaries or establishing projects, which are also in direct contact with the market, especially the materials that enter into his daily life such as rice, oil and sugar, and this means that the reduction is on the citizen’s side.
Conclusion
The reduction is in the interest of the government because it will reduce spending and increase the surplus, and the return of the exchange rate to the old rate is in the interest of the citizen because prices will be much lower.
But in my opinion, the compromise solution is to be the middle ground between the two, i.e. the exchange rate is reduced to 1350 dinars per dollar, and
therefore the citizen is satisfied by reducing prices, and
the government has preserved a large part of the revenues, which can be used in development and strategic projects. https://www.non14.net/public/152194
Abu Dhabi Ports Signs An Agreement With IDB Bank Of Iraq To Improve Trade Between The Two Countries
Economy Iraq breaking United Arab Emirates 2022-11-09 11:40 Shafaq News / Abu Dhabi Ports Group has signed a preliminary agreement with the International Development Bank of Iraq (“IDB”) to explore cooperation opportunities available in ports and logistics projects with the aim of improving trade traffic between the United Arab Emirates and Iraq.
The agreement was signed by: Mohammed Juma Al Shamsi, managing director and CEO of Abu Dhabi Ports Group; and Ziad Khalaf, chairman of the board of Directors of the International Development Bank, according to a statement issued by the group on Wednesday.
Al Shamsi said: “We have a wide horizon of opportunities and a great scope for improving and modernizing ports, logistics services and economic zones in Iraq, and
there is no doubt that through our cooperation with the International Development Bank, we will explore many available projects that will certainly contribute to enhancing the trade movement between the United Arab Emirates and Iraq”.
For his part, Ziad Khalaf, chairman of the board of Directors of the International Development Bank, said:
“strengthening ties between our two brotherly countries contributes to supporting the national economy and improving intra-trade, so we are pleased to conclude this agreement with Abu Dhabi Ports Group, the world leader in the fields of trade, logistics and transport”.
“The ports and logistics sectors play a vital role in providing supplies to the Iraqi community across the country, and we are confident in our ability to cooperate on projects with a tangible and sustainable impact in this context,” he added.
Khalaf said, “Our goal is to strengthen and deepen the ties of economic and trade cooperation between the United Arab Emirates and the state of Iraq in order to achieve economic twinning between the two brotherly countries through the support of Emirati and Iraqi businessmen and companies.
It is noteworthy that the UAE and Iraq continued to strengthen their trade relations during 2022 through several trade and development agreements.
The World Bank estimates that the Iraqi economy will record a growth rate of about 6.3% over the next two years. https://shafaq.com/ar/اقتصـاد/موان-بوظبي-توقع-اتفاقية-مع-مصرف-IDB-العراقي-بهدف-تحسين-حركة-التجارة-بين-البلدين
Ranked First In The World.. More Than 47 Thousand Properties Bought By Iraqis In Turkey During 8 Years
353 economy 2022/11/08 12:36 Baghdad today-Baghdad The Turkish Statistics Authority announced, on Tuesday, the arrangement of the list of buyers of real estate in Turkey within 8 years,
pointing out that Iraqis issued the list by buying more than 47 thousand properties in Turkey.
A statement of the authority, reviewed by Baghdad today, said that
“Iraqis ranked first in the world in terms of foreigners buying real estate in Turkey between 2015 and September of 2022, noting that “Iraqis bought during this period 47,460 properties”.
He added that “the Iranians came second with 35.060 thousand real estate, then the Russians come third with 27.549 thousand real estate, then the Saudis fourth with 14.174 thousand real estate, then the Kuwaitis fifth with 14.007 thousand real estate, and the citizens of Bangladesh sixth with 13.392 thousand real estate.
The list of buying houses in Turkey since 2015 has recorded the top of Iraqi citizens, but the ranking fell to the second place after Iran by the beginning of this year 2021 to fall to the third place by March 2022 after Russia became the most buyers of Turkish homes. https://baghdadtoday.news/news/205588/في-المرتبة-الأولى-عالميا
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