Samson: Disruption of official hours in four governorates next week

16th April, 2019

Iraq’s four provincial councils announced on Tuesday that it would delay the official opening of next week on the occasion of the Shabaan visit.

“The councils of the provinces of Wasit, Maysan, Muthanna and Karbala decided to disrupt the official working day next Sunday, the 21st of April,” a source familiar with the information said.

He added that “the province of Karbala has temporarily disrupted the days of Sunday and next Monday,” noting that “the workers came on the occasion of the visit of the half of Shaaban, the anniversary of the birth of Imam Mahdi (p).”  LINK

Samson:  Central Bank announces the rise of foreign exchange reserves to 62 billion dollars

16th April, 2019

The Central Bank of Payments (CBE) Director-General Doha Abdel-Karim announced on Tuesday that foreign exchange reserves rose from US $ 40 billion to US $ 62 billion, while confirming the bank’s success in controlling inflation

The central bank has managed to control the level of inflation, maintain prices, maintain the purchasing power of the national currency, adjust the exchange rate and close the gap between the official price and the market price,” Abdul Karim said in an interview with the official newspaper Al-Sabah

Foreign currency reserves have increased from US $ 40 billion to US $ 62 billion and diversification of the currency basket to support the balance of payments and to cope with economic crises,” she said

It also coordinated with the Ministry of Finance in the management of public debt to support the budget and funding the deficit during the financial crisis experienced by Iraq because of low oil prices, the issuance of national bonds in the international financial market worth $ 2 billion, as well as the provision of new products to invest liquidity of commercial and investment banks And support their profitability   LINK


Samson:  Source: Abdul Mahdi to visit Saudi Arabia tomorrow with a number of ministers

16th April, 2019

Prime Minister Adel Abdul Mahdi will visit Riyadh on Wednesday with a number of ministers, a political source said on Tuesday.

The channel “Russia Today” quoted the source as saying that Abdul Mahdi will visit Saudi Arabia on Wednesday, noting that “a number of ministers will accompany Abdul Mahdi to Riyadh, most notably the ministers of foreign affairs, oil, electricity and trade.”

The source added, according to “Russia today,” that “Abdul Mahdi will meet with Saudi King Salman bin Abdul Aziz,” noting that “is now arranged for other meetings, most notably with Saudi Crown Prince Mohammed bin Salman.” On Tuesday, April 9, 2019, Abdul Mahdi announced his planned visit to Saudi Arabia to conclude a number of agreements.   LINK

Don961:  Governance in banks and their economic impact

Monday, 15 April 2019

Abdulrahman Al – Sheikhly

The International Organization for Economic Cooperation and Development (IMF) of the International Monetary Fund (IFC) has developed corporate governance principles to improve the economic efficiency and economic growth of OECD countries. Corporate governance includes a set of relationships between the management of the company, its boards of directors, shareholders and the stakeholder group. Company and report means to achieve these goals and monitor performance.

Good corporate governance provides appropriate and sound incentives to the Board of Directors to achieve objectives that are in the interest of the company and its shareholders. Effective supervision, an effective corporate governance system in each company and the economy as a whole help to provide a degree of confidence for the safety of a market economy. To fight corruption, reduce the cost of capital, attract more stable sources of finance and encourage enterprises to use resources more efficiently, boosting economic growth.

The corporate governance framework depends on the legal and regulatory environment, as well as other factors such as business ethics and the extent to which companies recognize the environmental and social interests of society.

Over the past 25 years, the focus has been on the application of the principles of corporate governance in banks as a result of rapid developments in the financial markets and the globalization of financial flows and technological progress, resulting in increasing competitive pressures between banks and non-banking institutions, growth in financial markets and diversification of banks’ financial instruments. , Which has increased the importance of risk measurement, management and control, as it requires continuous innovation of business management methods, risks and change of laws and supervision systems to maintain the integrity of the banking system.

Banks differ from the rest of the companies because their collapse affects a wider circle of people and leads to a doubling of the financial system itself, which has adverse effects on the economy as a whole, which places particular responsibility on the members of the boards of directors of those banks, and because the members of the board can not do all And they must delegate certain tasks, they must ensure that those who have entrusted them have the authority and the framework through which to review the proper use and security of the Authority.

The Bank for International Settlements defines banking governance as the methods by which banks are managed by the Board of Directors and senior management, which determines how to set the Bank’s objectives and operate and protect the interests of shareholders and stakeholders with a commitment to act in accordance with prevailing laws and regulations to protect the interests of depositors .

Principles of Governance in Banks

The Basel Committee
issued a report on strengthening governance in banks in 1999 and issued a revised version of it in 2005. In February 2006, it issued another updated version entitled “Enhancing Corporate Governance for Banking Organization” which includes the principles of governance in banks.

Principle 1:

The members of the Board of Directors must be fully qualified to their positions and be fully aware of the governance and the ability to manage the Bank’s business. Board members are fully responsible for the Bank’s performance and financial stability, formulating the Bank’s business strategy, risk policy, avoiding conflicts of interest and avoiding taking Resolutions when there is a conflict of interest renders them unable to fully perform their duties towards the Bank and to restructure the Board, including the number of members, thereby encouraging greater efficiency.

The duties of the Board include selecting, supervising and appointing Within the availability of competencies capable of Directors of the Bank and to be members of the Board are very familiar with the principles and foundations of the financial activities of the bank, which must be followed and the environment legislative, and the board of directors to form committees to help him, including an executive committee and an internal audit committee and the Audit Committee in cooperation with the auditors and the decline and receive their reports and take Corrective decisions in a timely manner to identify weaknesses in control and inconsistencies with policies, laws and regulations.

The Board of Directors shall also set up a Risk Management Committee to set principles for senior management on credit risk management, market liquidity, operating, reputations and other risks, and the Wages Committee that sets the remuneration systems and the principles of appointing executive management and officials in line with the Bank’s objectives and strategy.

Consultant and banking expert      link

MilitiaMan:  The volume has been increasing since ealier last week. A good sign confidence is gaining traction.. ~ imo A good thing! ~ MM

Samson:  The stock market continues its high rise

16th April, 2019

Trading rose for the third consecutive session, Tuesday, 0.20% at 457.20 points

The number of shares traded 1,1 billion shares valued at 820.5 million dinars

Five shares led the index up, led by Elite General Contracting by 10.00% and shares of Karbala hotels by 3.80%

The index also witnessed a decline of six stocks, led by the shares of the city of games Karkh 2.04% and shares of production and marketing of meat by 1.69%

The number of shares sold by non-Iraqi investors 3.5 million shares worth 10.4 million dinars after the implementation of four deals on the shares of one company

National Bank topped the day with volume and value of 770 million shares worth KD 485.1 million     LINK

Samson:  Friday .. a magical astronomical phenomenon

2019/4/16 15:25

Star fans will be on a date with a magical cosmic phenomenon next Friday, the Pink Moon, where the face will be fully lit. This phenomenon occurs once a year, and is expected to begin at 12:12 GMT on April 19, which corresponds to Good Friday.

The pink moon can be seen in different parts of the world, including the Arab region of course.  The natural phenomenon occurs when the moon is on the other side of the earth like the sun, which means that the face will be completely lit, according to the newspaper “Daily Mail” British.

The name of the pink moon is derived from its coinciding with the spring flower season, with rosy roses spreading in the United States and Canada. 

The moon will be the fourth full moon in 2019, and the moon will reach its peak at 12.12 GMT, continuing all night long.

Americans who make their way to work on Friday morning will be able to follow the phenomenon, which peaked at 7:12 EDT.  To get the best chance to see it, you may want to go to an area with little lights, so the moon will appear brighter.  LINK

Samson:  Analysis .. The world needs a real unified currency

16th April, 2019

The world is preparing this year to celebrate the anniversary of two major events in the development of the global monetary system

The first was the establishment of the International Monetary Fund at the Bretton Woods conference 75 years ago, and the second was the emergence of the special drawing right, the global reserve assets created by the IMF 50 years ago

The economist at Columbia University, Jose Antonio Ocampo, believes it is time to launch a truly global currency by exploiting the anniversary opportunity this year, according to the analysis of Project Syndicate

When the SDR was launched, the IMF hoped to make it the primary reserve asset of the international monetary system

This remains an unfulfilled ambition, although the right of special drawing is already one of the most widely used instruments of international cooperation

However, to come late is better than never to come: converting the right of special drawing into a truly global currency would bring many benefits to the world economy and to the monetary system

In the run-up to the Bretton Woods negotiations, John Maynard Keynes proposed a new currency, Bancor, as a unit to calculate his proposal for the creation of the International Clearing Union

In the 1960s, other proposals emerged to address the growing problems arising from the dollar-dollar linkage system created at Bretton Woods under the leadership of Belgian-American economist Robert Treven

But this system (dollar-to-gold correlation) finally collapsed in 1971

As a result of those discussions, the IMF approved the creation of the SDR in 1967 and incorporated it into the articles of its agreement two years later

Although the SDR version of the IMF is similar to the creation of national funds by central banks, it only meets some of the functions of money

While SDRs are a reserve and thus a valuable asset and the unit of the IMF account, only central banks, mainly in developing countries, some developed economies and a few financial institutions, use SDRs as reciprocal payment instruments

Special Drawing Rights (SDRs) have a number of key advantages, especially since the IMF can serve as a tool for international monetary policy in a global economic crisis

In 2009, for example, the IMF issued $ 250 billion in special drawing rights to help combat the recession, following a proposal by the Group of 20 nations

More importantly, SDRs can also become an essential tool for financing IMF programs

So far, the IMF has relied mainly on increasing quotas and borrowing from member states, but the shares tend to lag behind global economic growth

The latest increase was approved in 2010 but the US Congress approved it only in 2015

Loans from Member States, which are the main source of new funds for the Fund (especially in times of crisis), are not real multilateral instruments

The best alternative would be to transform the IMF into a fully financed and managed institution in its own world currency; the proposal made by Jack Pollack several decades ago, then IMF chief economist

A simple option might be to consider SDRs held by States but not to use them as “deposits” in the International Fund, which they can use to finance their loans to States

This would require a change in the articles of the IMF Convention, since SDRs are not currently held in IMF regular accounts

IFAD can then issue SDRs regularly or during crises (which is still the best option) as in 2009

In the long term, the exported quantity should be relevant to the demand for foreign exchange reserves

Some economists and the IMF believe that the IMF can issue between $ 200 billion and $ 300 billion of SDRs annually

Moreover, this would contribute to the spread of financial benefits from the issuance of a global currency in all countries

At present, these benefits benefit only those exporters of national or regional currencies used internationally, particularly the US dollar and the euro

A broader use of SDRs would make the global monetary system more independent of US monetary policy, with the fact that one of the biggest problems of the global monetary system now is that the goals of US policy as the world’s first reserve currency do not always coincide with the overall stability of policy

In any event, the various national and regional currencies could continue to be traded in tandem with the growing SDR reserves

The IMF’s new “exchange account” would allow central banks to exchange their reserves for SDRs, as the United States first proposed in the 1970s

Special drawing rights may also be used for special transactions denominated in national currency

But, as the IMF pointed out in its report to the Governing Council in 2018, these “SDRs in the market” that could transform the unit into full-fledged funds are not necessary for the reforms proposed here

Nor will we need special drawing rights to use them, such as an account unit outside the International Monetary Fund

The IMF / SDR Memorial Day in 2019 is a reason to celebrate, but it is also an ideal opportunity to convert SDRs into a truly global currency that will strengthen the international monetary system and should be exploited by policymakers  LINK

Don961:   Central control of the level of inflation and supports electronic collection

Monday, 15 April 2019

Baghdad / Hussein Thugb

“The Central Bank has succeeded in controlling the level of inflation, maintaining prices, maintaining the purchasing power of the national currency, controlling the exchange rate and closing the gap, Between the official price and the market price.

“Foreign exchange reserves rose from US $ 40 billion to US $ 62 billion and diversification of the currency basket to support balance of payments and crisis response

Economic development.

The coordination with the Ministry of Finance in the management of public debt to support the budget and funding the deficit during the financial crisis experienced by Iraq because of the drop in oil prices, the issuance of national bonds in the international financial market worth $ 2 billion, as well as the provision of new products to invest liquidity of commercial banks and investment and support Profitability “.

Issuance of bonds

She pointed out that “the last period saw the issuance of bonds for the receivables of contractors after being audited by the Ministry of Planning and the Federal Financial Control Bureau, as well as the issuance of bonds to farmers on behalf of the Ministry of Finance and this move reflects a shift in a broader vision for the management of government public debt by the financial authority and monetary authority “He said.

Financial Inclusion

“We have supported the electronic collection of government fees, the facilitation of payments to citizens, the signing of a memorandum of understanding with Visa International, MasterCard International and Yunin-B International International to support the strategy of financial inclusion and the provision of electronic payment cards to citizens to urge them to work with the unified international bank account, Through bank accounts internally And other countries “.

Electronic payment

“The standardization of the sukuk security standards to increase confidence in exchange and encourage traders to deal with electronic payments instead of cash, electronic payment companies in order to support electronic operations and the issuance of license cards payment to banks, as well as linking banks and sites of the Central Bank of Iraq with data centers bank by cable To enhance the infrastructure of the banking sector and to increase the security of information and networks on the speed of data transmission Sizes Big “.

Financial operations

On the developments witnessed by the Central in the payments sector confirmed “the establishment of the National Bank to settle payments between banks and increase electronic financial operations between banks, companies and citizens, support electronic collections of government departments and facilitate Ways of payment to citizens “.

Memorandum of Understanding

“We have signed a memorandum of understanding with Visa International, MasterCard International and Yunin-B International International to support the strategy of financial inclusion and the provision of electronic payment cards to citizens.  As well as linking the banks and the Central Bank of Iraq with the bank data centers by optical cable Aziz infrastructure for the banking sector, increasing the information and network security, as well as high-volume data transfer speed. ”

Localization of salaries

The launch of the localization of salaries for all public sector employees through the transfer of salaries to employees’ bank accounts, as well as the easy receipt and withdrawal of salaries through the available payment channels, bank branches, ATMs, Points of sale, and enjoy the many advantages of bank accounts. ”    link

MilitiaMan:  Looks like they have dotted to the “I”s and crossed some “T”s with this one in regard to international trade through high tech systems.  They are using optical cables or (imo) Fiber Optics..

Read the link below.. It dates back to 07/04/2018 showing me they are set to go live with their systems are may have already based on some of the wording, i.e., launch for instance, have signed, established a National Bank, etc..

They are having parliaments of local countries of the regions show up 19th, same day they said they were going to celebrate the 10 year anniversary for the ISX and with interlinking to NASADQ. Again, imo, these are all things done now. Clearly ready to go.

We know that the NASDAQ is high tech and would need similar optical cables for high speed trading.. It also suggests that now they have the high tech in place and it can be trusted!! Sukuk is effectively trust worthy Bonds or Certificates in the Islamic areas of the world in regard to finance!

They have a very high regard and safety aspect to them!! imo So these things we see now, are all very positive to me, imo ~ MM


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