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Economist: There Is No Relationship Between The Devaluation Of The Dinar And The Central Bank’s Retention Of Cash Reserves

Monday 29 November 2021 10:32 | economic Number of readings: 376  Baghdad / NINA / – The expert in economic affairs, Raad Twij, confirmed: “The devaluation of the Iraqi dinar is not a reason for the Central Bank to maintain cash reserves.”

 

Twig said in a statement to the National Iraqi News Agency / NINA /: “There have been increasing statements from Iraqi officials that the devaluation of the Iraqi dinar has worked to preserve the cash reserves of the Central Bank of Iraq, but in fact, from a practical point of view, there is no evidence for that relationship, and the real relationship is the correlation Between what is sold in the currency window of foreign currency and the price at which that currency is sold in the local currency.

He added: “The pressure caused by the demand for foreign exchange in the currency auction forced the decision makers to take a measure to raise the exchange rate as a result of the high marginal propensity to import and the marginal propensity to consume in Iraq by more than 0.9%.”/ End 8

https://ninanews.com/Website/News/Details?key=941758

The Central Bank Activates External Banking Relations With Arab And Regional Banks

Economic And Banking Advisor Samir Al-Nusairi  Samir Al-Nusairi*   In 2020, the Iraqi economy suffered from cumulative and complex challenges and repercussions due to the decline in international oil prices and the slowdown in growth in the global economy due to the effects and repercussions of the Corona pandemic.

In addition to Iraq’s suffering, its special circumstances, dispersal of policies, lack of planning, ambiguity and confusion in the methodological vision of managing the economy, which led the government to diagnose the requirements for overcoming that suffering by drawing its strategy for the next three and five years in the white paper. Since the Central Bank is primarily responsible for monetary policy and its applications that contribute to achieving economic stability and overcoming the challenges of instability in the financial system due to the lack of clarity in financial policies, one of the most important tasks of the Central Bank in these two years 2020 and 2021 at the local level was to restore balance in the market Stimulating the economy, revitalizing the economic cycle, and facing the repercussions of reducing the Iraqi dinar exchange rate on low-income groups.

By launching the many financing and lending initiatives and activating the procedures for applying monetary policy and at the external level, building banking cooperation and coordination relations with the banks of Arab and regional countries based on continuous and permanent communication with the governors of banks and financial and banking institutions in these countries, starting with charting a promising economic and financial future with them. Therefore, these relations culminated in activating the banking relations with the Saudi side by visiting the Governor and his accompanying banking delegation and reaching agreements and understandings with the Saudi Central Bank and financial institutions in a way that enhances banking transactions between the two sides and benefit from the successful experiences in both countries.

In continuation of this approach, the meetings of the Governor, the banking delegation formed by the Central Bank, the Association of Banks and a number of heads of boards of directors of private banks continued over the past few days to discuss ways of banking cooperation between the Central Bank of Iraq, the Turkish Central Bank and the Turkish Licensing and Supervision Authority, which had previously been discussed in Baghdad in the presence of the Ambassador The Turkish and the regional managers of the Turkish banks operating in Iraq, which contributed to diagnosing the problems of the daily banking work of the branches of Turkish banks and the efforts of the Central Bank to overcome them and facilitate the work of Turkish banks operating in Iraq. Turkey’s meetings resulted in the following:-

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1‐ The necessity of establishing a joint mechanism for cooperation with the Central Bank of Turkey to regulate the control, control and supervision of banking transactions for the broad commercial exchange between the two countries through the banking system.

2‐ The Central Bank expressed its readiness to overcome the observations and difficulties facing Turkish banks in Iraq and to provide them with flexibility and exceptions regarding the instructions issued by the bank in the field of foreign transfers and crude oil credits.

3- Opening channels of understanding and cooperation with Turkish banks to implement banking operations between the two countries.

4‐ Requesting the Turkish Central Bank to cooperate in facilitating the opening of branches of Iraqi banks in Turkey that are nominated by the Central Bank of Iraq, and to be treated in the same way we deal with their branches in Iraq.

The results of the meetings of the two delegations can be summarized by discussing the development of banking and financial relations, the development of banking relations between the two countries, support for the opening of branches of Iraqi banks in Turkey and the opening of mutual accounts, which contributes to the development of trade relations between the two countries on the basis of reciprocity.

Inviting the Turkish Central Bank to provide facilities to Iraqi banks to facilitate the settlement of the trade balance between the two countries and the transfer of funds belonging to Iraqis residing in Turkey.

The Governor of the Central Bank of Turkey praised the efforts made by the Central Bank of Iraq in developing the national economy, stressing that he is ready to open the doors of cooperation and facilitate banking operations between the two countries.

*Economic and banking consultant   Views 214 Date Added 11/29/2021

https://economy-news.net/content.php?id=26873

A Significant Increase In The Exchange Rates Of The Dollar In The Local Markets

Economie| 10:24 – 29/11/2021   Baghdad – Mawazine News, the dollar exchange rates rose, on Monday, in the main stock exchange and local markets in the capital, Baghdad.

Today, the dollar exchange rate on the Central Kifah Stock Exchange in Baghdad was 148,000 thousand dinars, for each $100 bill.

The prices of buying and selling the dollar also increased in exchange companies and local markets in Baghdad, where the selling price reached 148,500 dinars, for each denomination of 100 dollars, while the purchase prices amounted to 147,500 dinars, for each denomination of 100 dollars. Ended 29/A 4

https://www.mawazin.net/Details.aspx?jimare=176736

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The Central Bank’s Dollar Sales Fell To 181 Million

Economie| 02:21 – 29/11/2021   Baghdad – Mawazine News, the bank’s dollar sales fell in an auction today, Monday, to record 181 million dollars.

And the Central Bank auction for the sale and purchase of foreign currencies witnessed a decrease in its sales to reach 181 million, and 704 thousand and 500 dollars, covered by the bank at a base exchange rate of 1460 dinars per dollar.

Most of the bank’s sales went to enhance balances abroad in the form of remittances and credits, amounting to 139 million and 434 thousand and 500 dollars, while the remaining amount of 32 million and 270 thousand dollars went in cash.

This has 26 banks that fulfilled requests to enhance balances abroad, and 18 banks to meet cash requests, in addition to 206 intermediary companies. https://www.mawazin.net/Details.aspx?jimare=176783

Integrity: Customs Transactions Suspended For 192 Companies That Owed Financial Dues

Money  and business   Economy News – Baghdad   On Monday, the Integrity Commission announced the suspension of customs transactions for 192 companies that had owed financial dues.

A statement by the authority received by “Al-Iqtisad News” stated that “according to the directive of the Prime Minister’s Office regarding the authority’s follow-up with the General Authority of Customs, to ensure that fees are collected from the reluctant or reluctant customs brokers, to ensure law enforcement and to secure the collection of revenues, the authority has followed up on the issue of funds that have been overdue for years. several”.

He explained that “the follow-up efforts resulted in the payment of an amount of (1,970,000,000) dinars, which represents the value of paying the fee differences due to these companies for the period from (1/9/2021) to (8/11/2021), pointing out that “the delayed funds owed by companies Customs clearance since 2013 until now, which the authority has participated in following up, amounts to (40,000,000,000) dinars.

He added, “The follow-up by the two bodies and the deterrent measures that were taken, contributed for the first time to an increase in the payment of the amounts owed by the customs clearance companies,” noting that “the General Authority of Customs issued circulars to its directorates, stopping the customs transactions of (192) companies whose arrears were owed. “.

Views 242 Date Added 11/29/2021   https://economy-news.net/content.php?id=26874

The Ministry Of Finance Approves The Appointment Of 1,352 Contractors To The Electoral Commission

Money  and business   Economy News – Baghdad  On Monday, the Ministry of Finance agreed to install 1,352 contractors in the Electoral Commission.

The ministry stated in a statement seen by “Economy News”, that “according to the provisions of Article (4. First) of the Federal General Budget Law No. 23 of 2021 and Article (8/a) of the instructions for implementing the federal budget for the year 2021, it was decided to make a transfer of the amount 2,536,280.850 dinars between the budget appropriations of Section 31 of the Independent High Electoral Commission within the budget of section (43) not linked to a ministry for the year 2021.

He added, “This transfer came to confirm the contracts within the owners, who numbered 1,352 people.”

Views 96 Date Added 11/29/2021   https://economy-news.net/content.php?id=26877

 

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