Tlm724

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News & Comments  1-16-16
The central bank plans to unify the exchange rate of the dollar sold in the auction and the market  
01/14/2016    [rtl]BAGHDAD / JD / .. revealed to the economic and investment commission in Parliament about the government’s determination obliging the Central Bank of the consolidation of the dollar exchange rate in the auction sold the domestic market, likely raising the value of the dollar against the dinar in the shadow of the financial crisis in the country.[/rtl]
[rtl]He said committee member Rep. Najiba Najib told / JD / that there is an urgent need for the government to reconsider the monetary policy of the country, the fact that there is a real rate of the dinar against the US dollar because of the current dinar price of 1,166 is the same as when it was sold for a barrel of oil for $ 111.

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She added that the financial crisis facing the country as a result of the drop in oil prices to unprecedented levels require the lifting of the dollar exchange rate against the dinar and will resort to it the government requiring the central bank in addition to the unification of the exchange rate at the central bank auction and in the local commercial market, where the dollar exchange rate at auction Central dinars in 1190, while the market in 1240 dinars. / end / 8
http://www.dananernews.com/News_Details.php?ID=6629[/rtl]
[tlm724] will resort to it the government requiring the central bank in addition to the unification of the exchange rate at the central bank auction and in the local commercial market, where the dollar exchange rate at auction Central dinars in 1190, while the market in 1240 dinars.
[tlm724] she is saying making the market and sell price close to equal,  more parallel, we’ll see
http://www.bondladyscorner.com/t160791-the-central-bank-plans-to-unify-the-exchange-rate-of-the-dollar-sold-in-the-auction-and-the-market
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IMF to work with Iraq on PFM reform   By: Emma Rumney   13 Jan 16
The International Monetary Fund will support Iraq in the implementation of its programme of fiscal consolidation and public financial management.
IMF managing director Christine Lagarde approved the support, which does not entail financial assistance, yesterday. Instead of financial support, the fund will monitor the execution and performance of the Iraqi government’s economic policies and provide technical assistance and capacity building to its reform programme.
The fund said the war-torn country had requested assistance to “help address the urgent balance of payments and budget needs triggered by the Islamic State attacks and collapse in oil prices”. This could potentially pave the way to a funding arrangement.
Under the IMF’s guidance, Iraq is implementing a programme of fiscal consolidation to contain public expenditure in line with available revenue and financing, with the aim of reducing the non-oil primary deficit by $20bn.
Non-oil investment and spending on goods and services is to bear the brunt of cuts to expenditure. Public sector wages and pensions will not be affected, and are instead projected to increase despite an already bloated government payroll being a major weakness of the country’s finances.
Citing World Bank findings, the fund said poor public financial management in Iraq means the efficiency of public investments in the non-oil sector is low.
It added that a weak PFM framework has lead to a lack of fiscal discipline and the overly political allocation of oil resources, and improvements following technical assistance from the fund and the World Bank have been “very slow”.
The IMF said under its support arrangement, agreement has been reached on measures to strengthen PFM as well as efforts to bring stability to the finance sector and counter money laundering and the financing of terrorism.
These will include some changes mostly within the country’s Ministry of Finance in the short term, in order to build on more ambitious reforms later on. These include moving to a single treasury account and reforms to public investment management.
After existing in a state of turmoil since at least the US-led invasion in 2003, the IMF said Iraq’s economy, infrastructure and trade are suffering due to continued conflict as Islamic State insurgents commit terrorist attacks and offensives to capture more territory.
IS now controls parts of Iraq, where they have declared an Islamic caliphate. A US-led coalition is also conducting airstrikes throughout the country to defeat the group.
In addition the impact of the sharp decline in oil prices – already significant in 2014 – intensified last year. Iraq is also enduring an internal refugee crisis and massive energy shortages.
http://www.publicfinanceinternational.org/news/2016/01/imf-work-iraq-pfm-reform
[tlm724] The IMF said under its support arrangement, agreement has been reached on measures to strengthen PFM ( public financial management) as well as efforts to bring stability to the finance sector and counter money laundering and the financing of terrorism.
These will include some changes mostly within the country’s Ministry of Finance in the short term, in order to build on more ambitious reforms later on. These include moving to a single treasury account and reforms to public investment management.
[tlm724] I didn’t know what a single treasury account was so I looked up on the IMF and here is what I found, in part, you can read the whole document by following the link:
IMF Working Paper
Fiscal Affairs Department
Treasury Single Account: Concept, Design and Implementation Issues
May 2010
A treasury single account (TSA) is an essential tool for consolidating and managing governments’ cash resources, thus minimizing borrowing costs. In countries with fragmented goverment banking arrangements, the establishment of a TSA should receive priority in the public financial management reform agenda.
Drawing on the lessons of the Fund’s work in several countries in establishing a TSA, this paper explains its concept, essential features, and potential benefits. It also presents alternative models and approaches for designing a TSA that take into account specific country contexts as well as the preconditions and desirable sequencing for its successful implementation.
Finally, the paper includes country examples from different regions in support of the analysis and recommendations.
NOTE: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
4
INTRODUCTION1
Government banking arrangements are an important factor for efficient management and control of government’s cash resources. Such banking arrangements should be designed to minimize the cost of government borrowing and maximize the opportunity cost of cash resources.
This requires ensuring that all cash received is available for carrying out government’s expenditure programs and making payments in a timely fashion. Many emerging market and low-income countries have fragmented systems for handling government receipts and payments. In these countries, the ministry of finance/treasury lacks a unified view and centralized control over government’s cash resources.
As a result, this cash lies idle for extended periods in numerous bank accounts held by spending agencies while the government continues to borrow to execute its budget.
A government lacking effective control over its cash resources can pay for its institutional deficiencies in multiple ways. First, idle cash balances in bank accounts often fail to earn market-related remuneration. Second, the government, being unaware of these resources, incurs unnecessary borrowing costs on raising funds to cover a perceived cash shortage.
Third, idle government cash balances in the commercial banking sector are not idle for the banks themselves, and can be used to extend credit. Draining this extra liquidity through open market operations also imposes costs on the central bank.
Establishing a unified structure of government bank accounts via a treasury single account (TSA) will solve these problems, improving cash management and control. It should, therefore, receive priority in any public financial management (PFM) reform agenda.
A TSA also facilitates better fiscal and monetary policy coordination as well as better reconciliation of fiscal and banking data, which in turn improves the quality of fiscal information. Finally, the establishment of an effective TSA significantly reduces the debt servicing costs.
This paper, which is based on FAD’s extensive experience in providing technical assistance on government banking arrangements, discusses the rationale and strategy for establishing a TSA in countries with fragmented government banking arrangements.
The paper first discusses the concept of a TSA, its objectives and benefits, followed by a description of alternative TSA models and operations depending on institutional structures. Finally, the paper proposes a sequenced strategy for establishing a TSA, including the preconditions to be met.
A. Definition and Key Features
A TSA is a unified structure of government bank accounts that gives a consolidated view of government cash resources. Based on the principle of unity of cash and the unity of treasury, a TSA is a bank account or a set of linked accounts through which the government transacts all its receipts and payments.
The principle of unity follows from the fungibility of all cash irrespective of its end use. While it is necessary to distinguish individual cash transactions for control and reporting purposes, this purpose is achieved through the accounting system and not by holding/depositing cash in transaction specific bank accounts.
This enables the treasury to delink management of cash from control at a transaction level.
A full-fledged TSA shares three essential features:
First, the government banking arrangement should be unified, to enable ministry of  finance (Mof) (or treasury) oversight of government cash flows in and out of these bank accounts. A unified structure of government bank accounts allows complete fungibility of all cash resources, including on a real-time basis if electronic banking is in place.
The TSA structure can contain ledger sub-accounts in a single banking institution (not necessarily a central bank), and can accommodate external zero balance accounts (ZBAs) in a number of commercial banks.
Second, no other government agency operates bank accounts outside the oversight of the treasury. Options for accessing and operating the TSA are mainly dependent upon institutional structures and payment settlement systems (see the section on Transaction Processing under a TSA System).
Third, the consolidation of government cash resources should be comprehensive and encompass all government cash resources, both budgetary and extra-budgetary. This means that all public monies irrespective of whether the corresponding cash flows are subject to budgetary control or not (e.g., in the case of reserve funds, earmarked funds and other off-budget/extrabudgetary funds) should be brought under the control of the TSA.
The cash balance in the TSA main account is maintained at a level sufficient to meet the daily operational requirements of the government (sometimes together with an optional contingency, or buffer/reserve to meet unexpected fiscal volatility).
Establishing a TSA usually requires a legal basis to ensure its robustness and stability.
Being legally recognized is thus a precondition that is particularly important in those countries where the “presumed” autonomy of some institutions is an obstacle to the implementation of a TSA.
https://www.imf.org/external/pubs/ft/wp/2010/wp10143.pdf
http://www.bondladyscorner.com/t160736-imf-to-work-with-iraq-on-pfm-reform-post-for-bl
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Iraq ranked 37th globally B89.8 tons of gold reserves
Economy and Tenders
Since 01/16/2016 13:48 pm (Baghdad time)   BAGHDAD – scales News
World Gold Council revealed on Saturday that Iraq’s reserves of gold of 89.8 tons, to go back on 2014, during which amounted to about 90 tons, and as he emphasized that it represents 4.6% of its reserves of foreign currency, pointed out that Iraq is ranked 37th among 100 countries which has reserves of gold.
World Gold Council said in published statistics for the month of January 2016, he said that “Iraq’s reserves of gold remained stable and did not change, reaching 89.8 tons,” noting that “this amount represents 4.6% of its reserves of foreign currency.”
He said the Council, that “Iraq did not buy gold since the last buy him in April 2014 that bought the then 15.16 tons,” he said, adding, that “Iraq is ranked 37 among 100 countries, which has reserves of gold by global central bank report reserves” ./ ended 29 n / 10  LINK
[tlm724] that Iraq’s reserves of gold of 89.8 tons, to go back on 2014, during which amounted to about 90 tons, and as he emphasized that it represents 4.6% of its reserves of foreign currency
[tlm724] that “Iraq’s reserves of gold remained stable and did not change, reaching 89.8 tons,
[tlm724] well at least they didn’t touch the gold
diff source ​
World Gold Council: Iraq’s reserves of gold represents 4.6% of its reserves

01/16/2016 10:34   Said the World Gold Council, on Saturday that Iraq’s reserves of gold represents 4.6% of its reserves of foreign currency, adding that he occupies the 37th place among these countries.
According to the Council at its website by Statistics his last for the month of January 2016 that “Iraq reserves Gold remained stable and did not change, reaching 89.9 tons, “pointing out that” this amount represents 4.6% of its reserves of foreign currency.
“He said the Council that” Iraq did not buy gold since the last buy him in April 2014 in which 15.16 tonnes bought ” noting that “Iraq was ranked 37 out of out of 100 countries, which has reserves of gold that have been included within the global central bank report to the reserve.”
decided the central bank in January 232 014 SEC variety of alloys of pure gold ranging weights between (50 g and 1000 g) to sell to the dealers in gold, investors and segments of society wishing to do so in Iraqi dinars.
and founded the Iraqi Central Bank independent bank under the law issued on the sixth of March 2004, as an independent body, which is responsible for maintaining price stability and the implementation of monetary policy, including policies exchange rates and being sessions daily for buying and selling currencies.
http://www.iraqidev.org/news/index.php/aktsadea/66145.html

http://www.bondladyscorner.com/t160770-iraq-ranked-37th-globally-b89-8-tons-of-gold-reserves