Iraq Economic News 5-28-2024
Central Bank: The Issuance Of New Monetary Denominations Will Not Affect The Dinar Exchange Rate
May 27 Information / Baghdad Member of the Board of Directors of the Central Bank of Iraq, Ahmed Barihi, confirmed today, Monday, that the issuance of new cash denominations, large or small, will not affect the dinar exchange rate.
Brehi told Al-Ma’louma, “Issuing rumors on social media sites about the issuance of new monetary denominations aims to create a state of confusion in the Iraqi market.”
He added, “The Central Bank of Iraq is working according to well-studied plans, and there is no intention to issue new currencies in large or small denominations.”
He explained, “If we assume that the central bank issues a new currency, this will not affect the exchange rate of the Iraqi dinar.” Ended / 25 AD
Specialists Identify A Number Of Factors To End Sanctions On Iraqi Banks
Economical 05/28/2024 Baghdad: the mainstay of the emirate Financial and economic affairs specialists have identified the correct frameworks that must be taken to address the sanctions that affected a number of banks by the US Treasury, stressing that
those frameworks that should be followed with the aim of mitigating or canceling the sanctions are to improve the level of banking compliance in Iraq within the scope of harmony in the international banking and financial market. In accordance with the best standards,
stressing at the same time the need to work seriously to restructure the Iraqi governmental and private banking system according to a coordinated road map.
The meetings conducted by the Prime Minister, Muhammad Shiaa Al-Sudani, during his visit to Washington last month, witnessed joint understandings regarding the sanctions imposed on a number of Iraqi banks,
which led a number of specialists to suggest that the results of that visit would result in easing or canceling the sanctions, especially after The Treasury’s assurances to the Prime Minister that 80% of transfers are in accordance with international standards,
while the official visit, which witnessed the participation of the private sector, was met with a broad parliamentary welcome, confirming support for government efforts that seek to achieve the interests, sovereignty and prosperity of the people, while the Finance Committee in the Council of Ministers expressed Representatives, and in the words of its president, Atwan Al-Atwani,
“its full support for the positive understandings that resulted from the visit to Washington, and within the framework of the shift in the relationship between the two countries from the security and military aspects to the areas of development, reconstruction, economy, and investment.”
According to the vision of the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Saleh, during his speech to Al-Sabah, there are two directions to address or reduce these sanctions.
The first is to move towards improving the level of banking compliance within the scope of harmony with the international banking and financial market and in accordance with the best standards and practices. approved in the world, and
this is what all national banks are working on in cooperation with the monetary authority and its supervisory role in this The matter. Saleh pointed out that the
second trend, which would address or limit the sanctions, requires us to begin restructuring the Iraqi public and private banking system according to a coordinated road map and long-term visions in cooperation with international expert houses to put the banking system on modern competitive foundations and make it enjoy efficiency and governance.
And to be able to deal better with the development of digital payment systems and financial technology in a way that serves the provision of opportunities for stability and economic growth in our country, as well as optimal integration with the international financial market, which in all circumstances encourages all investment climates and attracts foreign investment to work in the fields of development and economic progress in our country. .
For his part, the specialist in financial affairs, Dr. Mahmoud Dagher, stated during his speech to “Al-Sabah” that the
sanctions or denial of access to the dollar were taken before the Prime Minister’s visit to Washington, but in the end nothing was achieved and we did not notice any progress except that in the next month of this year it will be
There is a committee from the Central Bank of Iraq, the US Federal Reserve, and the Treasury that is preparing a road map for reforms, that is, to address the situation of sanctions. He continued,
“We from the beginning noticed that there was nothing to prove what the mistake had been committed.” Drains.
Dagher praised the moves taken by the government and the Central Bank to try to correct the situation, which will need some time in order to reach joint understandings, and there are skirmishes between the two parties, and he stressed that the solution to this situation is through political understanding.
The International Monetary Fund Praises The Monetary Policy Of The Central Bank Of Iraq
Monday, May 27, 2024 2:55 PM Baghdad/National News Center On Monday, the International Monetary Fund praised the monetary policy of the Central Bank of Iraq.
According to the report issued by the International Monetary Fund mission for the current year 2024 for Article 4 consultations, the Iraqi government’s measures will be more severe, including the monetary policy led by the Central Bank of Iraq. The report indicated that
“the Central Bank of Iraq has taken several measures aimed at stabilizing the national currency and controlling monetary inflation.” It added that
“the Central Bank has raised the interest rate on monetary policy tools from 4% to 7.5% and increased the banks’ mandatory reserve requirements from 15% to 18%.” %, and
these steps were decisive in reducing the inflationary pressures that Iraq suffered from, and this contributed to creating a more stable economic environment.”
he report emphasized that “important reforms in the banking sector, such as the gradual increase in bank capital and mergers between small banks, aim to strengthen the banking sector and increase its efficiency and flexibility in the face of economic shocks.”
The report noted that “Iraq has implemented new compliance measures to improve the transparency of cross-border financial transactions, by launching an electronic platform that imposes the disclosure of financial beneficiaries, which enhances the integrity of financial transfers in accordance with international banking standards, in addition to the role of the Central Bank of Iraq in expanding Correspondent banking relationships, to facilitate smoother international trade financing operations.”
Investment And Its Development Impact
Investment in Iraq is considered one of the main factors that contribute to the development of the economy and raising economic growth rates in the country,
due to its numerous and abundant natural resources, and it has a strong industrial base and infrastructure that supports the expansion of investments in various sectors, and local and foreign investments can have a job opportunity. Renewable, achieving real mutual benefit for all parties.
Investing in building countries is necessary to achieve progress and prosperity.
When investments are directed towards areas such as education, health, and infrastructure, the standard of life improves for citizens and job opportunities and economic growth increase.
Investing in Iraq represents an opportunity for companies and investors to achieve significant financial returns and expand the scope of their business, as the market provides
The huge and growing Iraqi capital offers diverse and rewarding investment opportunities in various sectors such as industry, agriculture, tourism, and infrastructure.
Enhancing confidence between national and international investors is extremely important and achieves results that serve the country,
especially when there is a stable and favorable investment environment, which encourages increasing the volume of investments and developing local industries and goes towards expanding the circle of benefits that enhance the country’s financial capabilities.
It is no secret to everyone that investment contributes to building countries, achieving sustainable development, and enhancing economic and social stability, by directing investments towards developing skills and promoting innovation and scientific research.
Developing countries can advance their economies and break out of the cycle of poverty and underdevelopment,
so governments, the private sector and civil society must We work together to create a stimulating investment environment that contributes to building the country, achieving sustainable development, and providing better life opportunities for all.
Investments contribute to achieving economic and social stability in the country, as investments can provide job opportunities for young people, reduce unemployment rates, enhance cooperation between the public and private sectors, and raise rates of sustainable economic growth.
In addition to the possibility of strengthening infrastructure and raising the level of public services such as education, health and transportation in Iraq, here
we must realize the importance of working to create an attractive environment for investment and its success. https://alsabaah.iq/97362-.html
Provoking Thoughts and Points to Ponder on Advice :
But one must know where one stands, and where the others wish to go. – Goethe
No man ever listened himself out of a job. – Calvin Coolidge
Thanksgiving comes after Christmas. – Peter Kreeft
The proverb warns that, “You should not bite the hand that feeds you.” But maybe you should, if it prevents you from feeding yourself. – Thomas Szasz
I remember my father telling me the story of the preacher delivering an exhortation to his flock, and as he reached the climax of his exhortation, a man in the front row got up and said, ‘O Lord, use me. Use me, O Lord – in an advisory capacity!’ – Adlai Stevenson
