TaliaE: Is this the announcement we are looking for? It appears to be, IMO
Don961: Council Sessions Agenda
May 23, 2019
For the fourth parliamentary session
First legislative year
Second legislative term
(Reading verses from the Holy Quran )
First: Vote on the draft Financial Management Law. (Finance Committee).
Parliamentary move to raise the price of the dinar and maintain the stability of inflation
Wednesday 20 March 2019
Baghdad / Omar Abdul Latif
The Parliamentary Finance Committee is moving in the current legislative session to develop mechanisms to change the monetary and monetary policies in the country, in coordination with the Central Bank of Iraq, aimed at raising the dinar exchange rate and maintaining the stability of inflation.
“The committee will move during the current legislative term towards changing the fiscal and monetary policy in the country in general,” said member of the committee Abdul Hadi al-Saadawi, Coming “.
He added that “the Committee is keen to enact the law of financial administration as it gives a complete road map of the financial policy in the country in terms of management of money and cash in the state,” pointing out that “the change will raise the exchange rate of the Iraqi dinar against foreign currencies while maintaining link
Fuze: No, it’s an announcement from March 20th regarding the Financial Law to be voted on, that would change the value of the IQD.
The purpose in reposting it was to highlight the significance of the Vote on that LAW scheduled for a vote at the top of the Agenda of the Parliament on this coming Thursday May 23.
Some believe the rate will be released right before the vote, some believe right after the vote; either way, its more published evidence, we’re very close.
Iobey777: BOOOOOOMM!!!!!!!!! Now, Cmon and give us that shiny new rate!!!!!! THANK YOU!JESUS!!!!
Dogluvr: There was much discussion on the March article in March. And I believe the “next phase” ends June 30.
Samson: Reveal the results of the visit of the Austrian delegation .. Transfer of the Vienna experience to Baghdad and the opening of banks
20th May, 2019
Newspaper revealed Vindopona Austrian, on Monday, the results of the visit Representative of the Austrian Chamber of Commerce, the Arab joint Austrian delegation to Iraq, which lasted over a week.
The newspaper said in its report, “Al-Ghad Press”, that the parties that met the delegation and came out with all the decisions were “the Secretariat of Baghdad at the invitation of Secretary Zakri Allouche, where the delegation participated a representative of Vina in one of the local festivals, as well as the Ministry of Electricity, the Office of Distribution and Production Affairs , And the planning, where the delegation provided information on plans applicable in Iraq for renewable energy, in addition to a visit to Iraqi banks, the Central Bank, and also, the Council to address the crises in Mosul.
“The delegation discussed with the parties visited the reconstruction of Iraq and investment in it, as well as the opening of branches of Austrian banks across the country, in addition to the transfer of Austrian experience in the treatment of waste in the city of Vienna, to Baghdad, while there were a series of other agreements with the room Iraqi trade “.
The delegation expressed its surprise at the situation in Baghdad, stressing that “the overall situation is very stable. The streets are being restored and the public facilities are being repaired. There are security elements everywhere that do not seem to affect the peaceful life of the city. On the contrary, Especially for foreigners, “he said. LINK
Iobey777: Didn’t Frank say ….watch for other banks?!!! How did we miss That? Wow!!! Keep your eyes peeled for the rate!!!!! It’s coming!! IMO…Shortly!!!
Samson: Iraqi National Bank plans to open three new branches in Baghdad and Basra
21st May, 2019
Said the National Bank of Iraq, said he plans to open three new branches in Baghdad and Basra
The bank revealed in its annual report, “Economic News”, that “during the year 2018 completed the work of construction and decoration of some sites, including completion of the processing of Kadhimiya branch for the opening during the second quarter of 2019
The report pointed to “the establishment and processing site in Basra and Baghdad Mall LINK
Don961: The Iraqi Trade Bank opens the first branch in Saudi Arabia
Friday 19 April 2019
Baghdad / Al-Sabah
Deputy Prime Minister and Minister of Finance Fouad Hussein opened the first branch of the Iraqi Bank for Trade (TBI) in the Kingdom of Saudi Arabia in the presence of the Governor of the Saudi Monetary Agency Ahmed Al-Khulaifi, the Deputy Governor of the Monetary Corporation Turki Al-Mutairi, and the Director General and Chairman of the Board of Directors of the Iraqi Trade Bank Faisal Homs.
The ceremony was attended by senior Iraqi and Saudi officials, investors and representatives of the leading banks in the region, “the bank said in a statement.
The statement quoted Deputy Prime Minister and Minister of Finance Fuad Hussein as saying: “Today is a historic event for the financial sector in Iraq, as the opening of the first branch of the bank outside Iraq is a big step forward to strengthen our relationship with the Saudi government, and look forward to strengthening ties Bilateral cooperation between the two brotherly countries, especially after the support provided by the Kingdom to investors and investors to invest in Saudi markets. ”
“Nestor today is a new success in the Bank of Iraq’s record of achievements, and we, as employees, partners and clients, are proud of this significant step,” said Faisal Al-Hims, General Manager and Chairman of the Board.
“Personally, I have been waiting for this moment since we announced the expansion plan, and I look forward to seeing the significant economic benefits that the new branch in Saudi Arabia will bring to our strategic partners and customers.”
“I thank the Custodian of the Two Holy Mosques and His Highness the Crown Prince for their high guidance to support and facilitate the opening of our branch in Riyadh, capital of Saudi Arabia, and the rest of our partners in the Kingdom,” he added.
“The opening of the branch of the first bank of its kind outside Iraq in the framework of activation and revitalization of the movement and banking and commercial activity at the regional and international levels, and takes the new branch of the Saudi capital Riyadh-based.”
“This step supports the Bank’s efforts towards further growth and expansion. It also affirms the Bank’s commitment to implementing international compliance standards in accordance with the banking model adopted in the global banking sector and contributing to the economic development of Iraq in order to achieve growth and prosperity for the country.”
“The new branch will soon begin banking and financial operations shortly after the completion of the procedures. The expansion of the BTI’s business will provide an opportunity to expand business and investment and contribute to building a network of banking relationships with major institutions in the financial and banking sectors in Saudi Arabia. Enormous opportunities in the Iraqi market, which is witnessing continuous growth. ”
The government is working on several projects in Saudi Arabia that include a wide range of fields in order to develop and strengthen relations between the two countries.
The Bank of Iraq opened a representative office in Abu Dhabi, the capital of the UAE at the end of 2017, and has successfully strived to achieve its strategic objectives to witness a new phase that will enable it to sustain the Bank’s sustainable growth and assist in the reconstruction of Iraq. And enhance its presence in the region’s financial market as a financial institution with close links to global financial networks.
The Bank of Iraq operates in accordance with its long-term strategic plan for 2021 and plays a crucial and significant role in the reconstruction and sustained growth of Iraq’s economy in 2021. Its success is directly linked to the stability and prosperity of the country and has a strong impact on Iraqi society. link
Samson: Analysis .. “dirty float” of the currency in emerging markets
21st May, 2019
To say something and then to do something else, this statement sums up a lot about the current creed in emerging economies given the ways of managing the exchange rate
Countries should use the interest rate to meet the inflation target and allow the exchange rate to move freely, according to an analytical vision written by former presidential candidate and former Chilean finance minister Andres Velasco and carried by Project Syndicate
In practice, however, central banks in Asia and Latin America often intervene in currency markets by buying and selling international reserves and using a range of other measures to curb their currency volatility – the so-called “dirty float
The dirty float is the managed float of the exchange rate; it means the intervention of central banks in influencing the value of the currency in the exchange market and not leaving it only for demand and supply
It will be difficult to maintain this deceptive exchange rate after a historic speech by the Director-General of the Bank for International Settlements, Agustin Carstens, at the School of Public Policy at the University of London
Carstens says that in the past the Bank for International Settlements was a bastion of this doctrine but now demands that it be updated, and markets must pay attention to such an issue
An inflation target could be seen as an important achievement, as it helped to reduce inflation in most emerging markets and also to reduce what economists call the transit rate or the immediate effect of a domestic exchange rate cut on inflation
But this does not mean that when faced with massive capital inflows, emerging markets must stand on the sidelines and pursue “benign neglect” of the exchange rate, as the prevailing belief suggests
The real gap between the theoretical and practical sides explains the financial situation in emerging economies when their currencies depreciate and vice versa
But this was not supposed to happen in such a way: allowing free circulation of emerging countries’ currencies was supposed to allow countries to control domestic interest rates that could be adjusted when necessary to mitigate domestic economic volatility
Unfortunately, the reality has become more disturbing
One well-understood problem: governments, banks and companies often had no choice but to borrow from abroad in dollars because of the volatile financial history of emerging economies
When the exchange rate falls, the value of these loans rises in local currency. In a mild scenario, this can slow down domestic lending, investment and growth, and in extreme cases can lead to default, bankruptcy and a financial crisis
These adverse effects are one reason why central banks in emerging markets are severely affected by sharp movements in the exchange rate
The good news is that emerging markets are now able to borrow in their own currencies. Today, foreign investors have large portfolios of local currency bonds in Colombia, Mexico, South Africa and Turkey among others
The bad news is that economists at the Bank for International Settlements (BIS) argue that borrowing in local currency helps but is not the best solution
These economists’ research shows that the sharply low exchange rate is linked to widening interest-rate differentials on sovereign debt. When the price of the peso, rand or lira falls, long-term local interest rates rise, which is certainly not what traditional wisdom about monetary policy mechanisms might expect
The reason for this paradoxical behavior lies in the fact that global investors are committed to the rules of value at risk as well as to dollar returns
When they suffer losses in the exchange rate, they automatically deduct the loans granted to that country, causing an additional exchange rate drop as well as increasing domestic interest rates
The Bank for International Settlements (BIS) concludes that when changes in monetary policy cause advanced economies or shifts in investors’ appetite for massive outflows of capital, the exchange rate may act as a tool for sending and amplifying financial shocks rather than absorbing real shocks
This is a major problem for central banks worried about financial stability
But even for central banks that claim to be paying attention to inflation and nothing else; exchange rate volatility is a dilemma
The currency’s rise puts pressure on the downward trend on inflation but also eases domestic financial conditions
With the accumulation of debt and risk, the situation is created for a sharp devaluation of the currency and upward price pressures in the future
What do we do?
What should central bankers do about inflation swaps today versus inflation tomorrow? One possibility is to include the exchange rate between the factors taken into account when determining interest rates
This could be achieved through Taylor’s modified rule, named after a quote from Stanford University economist John Taylor, which added the exchange rate deviation from a target level to the inflation targets and the gross domestic product gap
Many emerging market central banks are already implementing this. After devaluation they often tighten monetary policy in an effort to contain so-called second-round effects (where the weaker exchange rate causes expectations to fail and wage-fixing behavior
The problem is that when investors panic and the exchange rate becomes unbalanced, there may not be enough interest rates to cool things down
Worse still, the extremely high interest rate that leads to a decline in economic activity and causes the accumulation of short-term debt of the central bank may reduce the credibility rather than strengthen it
The central bank has pledged to keep the money supply stable (and it keeps its promise), short-term interest rates stand at 70 percent, and the government is working to reduce the fiscal deficit, but inflation continues to rise (near 55 percent in the 12 months). Past) as the peso is still under pressure
The alternative is the “sterile intervention” in the exchange rate as many Asian countries will routinely do, and Argentina is about to do so despite previous commitments to reverse it
The sterile intervention in the exchange rate is the intervention of the central bank in the market without affecting the monetary base (buy or sell foreign currencies and then use this proceeds in the purchase of other assets)
Intervention in the exchange rate, which takes an upward trend, allows the central bank to accumulate its international reserves, which are considered a desirable hedge policy
During the declining exchange rate period, when global investors withdraw their money, intervention in the exchange market through the sale of reserves could be a tool for stabilizing the situation as it provides the dollar liquidity that the local economy desperately needs
Skeptics will argue that sterile intervention in the exchange rate is not supposed to have any effects, but they are wrong, according to the Bank for International Settlements
Carstens said that their work shows that the purchase of sterile foreign exchange in emerging market economies has a significant statistical and economic impact in reducing exchange rates at least temporarily
Should such interference be driven by discretion or specific rules? If the latter is the choice, can the rules be flexible enough to avoid creating a quasi-fixed exchange rate against what markets will inevitably see? Such questions and many others still need to be answered LINK
Samson: Sadr’s office calls for mass demonstrations on Friday evening
21st May, 2019
Iraqi Prime Minister Shaheed al-Sadr’s office in Baghdad on Tuesday called for peaceful demonstrations in all provinces except for Najaf province, in support of Iraq’s security and avoiding the scourge of war.
In a statement received by Alsumaria News, the head of the office, Ibrahim al-Jabri, said in a statement that “in support of Iraq’s security and peace, and away from regional and international conflicts, and to spare him the scourge of war in the region, in which Iraq should not be a party, “In order to preserve the interest of Iraq and its people and its future, at a critical stage, and international conflicts and ambitions threatening the existence of the homeland and its existence,
we call on our Iraqi people to embark on a mass peaceful demonstration on Friday, May 24, at 9:00 pm. “The Central Committee supervises the popular protests in Iraq.” LINK