Iraqi News Highlights Monday Afternoon 3-13-23
Tlm724 Administrator Bondlady’s Corner
Al-Rafidain Launches The Second Package Of Measures And Opens Branches To Sell The Dollar
political | 05:30 – 03/13/2023 Baghdad – Mawazine News, Al-Rafidain Bank announced the implementation of the second phase of the package of procedures for expanding the outlets for depositing the Iraqi dinar in its branches and selling the dollar through the electronic platform of the Central Bank of Iraq.
And the media office of the bank stated, in a statement, that Mawazine News received a copy of it, that “new branches have been opened in Baghdad, which are the branches (Bab Al-Mu’azzam – Jerusalem – Eastern Gate – Al-Khadraa – Al-Amel District – General Secretariat of the Council of Ministers) and all arrangements have been completed and they have been included in deposit procedures.” The Iraqi dinar for travelers and receiving the dollar exclusively from the Baghdad International Airport outlet.
He referred to “the start of receiving travelers’ requests in those branches. The statement pointed out that the total number of branches in Baghdad that entered service with regard to depositing the Iraqi dinar in them are the branches of (Palestine Street – Firdous Square – Al-Mashtal – Officers’ House – Al-Muhet – Al-Rafi’i – Al-Maarifa – Al-Hayy) Al-Arabi – Bab Al-Moazem – Jerusalem – Eastern Gate – Al-Khadra – Al-Amel neighborhood – General Secretariat of the Council of Ministers). https://www.mawazin.net/Details.aspx?jimare=221809
Political | 01:48 – 03/13/2023 Baghdad – Mawazine News The Council of Ministers approved, on Monday, the draft federal budget law for the fiscal years 2023, 2024 and 2025, and referred it to the House of Representatives.
Al-Sudani’s office said, in a statement received by Mawazine News, that “the Council of Ministers approved, in its regular session, chaired by Prime Minister Muhammad Shia’ Al-Sudani, the draft federal budget law for the fiscal years 2023, 2024 and 2025, and referred it to the House of Representatives.”
The Council of Ministers held, on Monday morning, a regular session, chaired by Prime Minister Muhammad Shia’a Al-Sudani, to discuss the 2023 budget. https://www.mawazin.net/Details.aspx?jimare=221782
Al-Sudani’s Advisor: Iraqi Deposits With The Federal Reserve Are Invested According To Standard Evidence That Avoids Risks
Economy | 01:42 – 03/13/2023 Baghdad – Mawazine News, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Monday, that Iraq does not have financial deposits with the American Silicon Valley Bank, which declared bankruptcy recently.
Saleh said, “The issue of the collapse of the Bank (Silicon Valley) in America is due to two main reasons, the first: that the financial leverage consists of a ratio of debts in the form of securities to lenders in addition to the shareholders’ capitals in the bank’s ownership base, where the debts or loans reached a ratio that exceeded the barrier.” The safe that equity should be configured is a high risk indicator.”
He explained, “These debts consist of securities whose value decreased with the rise in US interest, at a time when safety indicators began to show that the bank also needed additional capital to support its potential losses, which means that there is an accelerated capital depletion resulting from a loss, in addition to stopping Its investments in a portfolio of financial assets that it manages for its own benefit to achieve its profits, which made the capital adequacy ratio more than 16 percent instead of the required minimum of 10.5 percent, which is the ratio of regulatory capital to risk-weighted assets, which means that the bank is looking for liquidity without investing to face liquidity risks. or risk of bankruptcy.
He pointed out, “The bank began paying high interest on short-term deposits due to the strict monetary policy of the US Federal Reserve Bank, which today approached 5 percent, while the bank’s portfolio is mostly from remittances and US Treasury bonds, with periods ranging from one year to 30 years.”
That “investing in them has become very losing, as the value of financial investments as assets or assets began to deplete with the rise in interest rates, in addition to discounting them at high rates in order to liquidate them to face the withdrawals of the losing technological companies that resorted to withdrawing their current deposits with the Silicon Valley Bank itself to face its financial hardship due to the recession.” inflation in the US economy.
And he added, “This matter led the bank to conduct discount operations with high discount rates or loss of its portfolio of government bond assets, and the reason for accelerating the discount is to provide sufficient liquidity to confront the public or companies withdrawing their deposits from the bank within a state called: (traditional bank panic).”
Noting that “the Silicon Valley Bank has no choice but to deduct more transfers and liquidate them at a loss, and this is what increased the cases of bond discounting syndrome at a loss on the one hand, in exchange for the continuous withdrawal of deposits by depositors on the other hand.”
He stated that “the Banking Supervision Authority of the United States placed guardianship over the aforementioned bank, which declared bankruptcy, in addition to the Federal Deposit Insurance Authority taking measures to protect the deposits of small depositors for ceilings that are said to not exceed 250,000 dollars at least.”
And regarding the risks of the impact of the bankruptcy of the American bank on Iraq, Salih said, “Iraq does not have deposits in the aforementioned bank,” explaining that “Iraq’s sovereign dollar deposits are deposited with the Federal Reserve Bank (the American Bank).”
He continued, “Iraqi deposits are carefully invested within a tight short-term investment portfolio by the Central Bank of Iraq and in accordance with standard investment guides that avoid various risks,” according to the official news agency. https://www.mawazin.net/Details.aspx?jimare=221780`
Economy| 08:57 – 03/13/2023 Follow-up – Mawazine News Oil prices rose today, Monday, after a weak start, as the recovery of Chinese demand and the weakness of the dollar supported a market worried about a further increase in US interest rates.
By 0410 GMT, Brent crude futures rose 19 cents to $82.97 a barrel.
West Texas Intermediate crude futures rose 20 cents, or 0.26 percent, to $76.88 a barrel. Ended 29/N33
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