TNT:
Tishwash: Al-Moussawi: The cabinet formation is nearing completion… and the vote will take place after the Prime Minister’s return.
MP Hamed Al-Moussawi confirmed that there is a determination among the various political forces to finalize the cabinet formation, noting that the Prime Minister is determined to complete it before September 30.
Al-Moussawi said that the political forces are moving towards ending this issue, indicating that the commitments made by the political parties and the accelerated discussions and meetings aim to resolve the ministerial cabinet.
He explained that the cabinet will be completed and voted on after the Prime Minister returns from his European visit, stressing that talks and meetings will continue to reach a final agreement on ministerial positions. link
Tishwash: “Very soon”… Al-Khafaji speaks of understandings to finalize the appointments for the Ministries of Interior and Defense
MP Abdul Hamza al-Khafaji, from the Idrak Movement, confirmed on Tuesday that the issue of the Ministries of Interior and Defense will be resolved in the coming days, following agreements reached between political blocs regarding the approval of the ministerial candidates.
Al-Khafaji told the Information Agency, “Parliament will resolve the issue of the Ministries of Interior and Defense in the coming days, after the political blocs agreed to approve them and end the vacancies in these two ministries.”
He added, “Resolving the security ministries is a crucial matter, as it is linked to the security of citizens, their daily lives, and the interests of the country. Continuing to manage them through acting ministers hinders progress, given that the acting minister has limited authority compared to the permanent minister.”
Al-Khafaji explained that “many projects and the rights of the country’s citizens remain stalled due to the delay in resolving the ministerial issue, which necessitates expediting this process and preventing state institutions from being held hostage to political disputes.”
He pointed out that “political disagreements were a major reason for the delay in resolving many ministerial appointments, in addition to objections and external pressures on some of the nominated candidates,” calling for “an end to these disputes and placing the national interest above political considerations.”
Al-Khafaji urged the political blocs to “demonstrate the genuine will to correct the course and finalize the ministerial portfolios, selecting competent and honest individuals with experience and no suspicion of corruption, thus ensuring improved performance of state institutions and better service to citizens.”
According to political data, the ministries were distributed during the government formation process based on understandings between the various political forces and components. Kurdish forces received the Ministries of Foreign Affairs, Justice, and Environment, while Sunni forces received five portfolios.
The Coordination Framework retained several economic and service ministries, including Oil, Finance, and Electricity. It is worth noting that nine ministries remain undecided to date. link
************
Tishwash: The Zaidi government is dismantling the banking sector’s structure… Hantoush tells Iraq Observer: Qualitative reforms will restore confidence and open the doors to financial stability.
In a move reflecting the success of Prime Minister Ali Faleh al-Zaidi’s government in handling complex economic issues, Iraq is continuing its reform path aimed at addressing the obstacles that have long hampered the performance of the banking sector. This is being achieved through strengthening oversight, raising compliance levels, protecting depositors’ funds, and establishing more disciplined rules in the financial market.
Financial and banking expert Dr. Mustafa Hantoush affirms that the measures taken by the Central Bank of Iraq represent important supervisory tools for addressing the shortcomings within the banking sector. He points out that placing some banks under receivership does not mean their bankruptcy, but rather provides a framework for direct supervision of their situations, assessment of liquidity, assets, and investments, and taking appropriate corrective measures.
Hantoush told Iraq Observer that “the success of banking reform depends on the ability of regulatory bodies to diagnose problems and address them before they escalate into crises.” He explained that the possibility of reforming a bank’s situation allows it to resume operations, while legal procedures open up other options when reform proves impossible.
He added that “the government’s move to a more serious phase in addressing banking imbalances, through supporting regulatory and supervisory measures and enhancing confidence in the financial sector, will contribute to curbing speculation, regulating the flow of funds, and providing a more stable environment for the private sector and investment.”
He continued, “Developing the banking sector is also a key pillar of the Al-Zaidi government’s economic vision, given that stronger and more disciplined financial institutions contribute to stimulating the economic cycle, facilitating financing and transfers, and protecting the interests of citizens and depositors.”
While banking obstacles have posed a cumulative challenge to the Iraqi economy, the reform steps led by the Al-Zaidi government, in coordination with the Central Bank, are outlining a new phase characterized by discipline, confidence, and stability.
These steps underscore that addressing the root causes of these problems early and decisively can pave the way for building a stronger banking sector capable of supporting the Iraqi economy. link
Tishwash: The dinar must be changed! We won’t remove zeros, but the current currency will not last
Following banking warnings that money hoarded in homes and outside banks is disrupting the liquidity cycle and weakening the banking system, an idea is emerging within the Central Bank and among members of the parliamentary finance committee to change the currency and launch a new series, instead of removing zeros, in a process aimed at withdrawing counterfeit, worn-out, and stolen currency, and returning part of the funds to the banking system, through a mechanism being discussed to link the exchange of large sums to opening accounts and proving the sources of funds.
A member of the parliamentary finance committee told 964 Network that “the ongoing discussions regarding the future of the Iraqi currency are currently focused on adding new denominations and making broader changes to the currency in circulation. The option of removing zeros has been ruled out at this stage. There is a trend that believes issuing a new series of currency can achieve greater goals, including updating security features, eliminating counterfeit currency, withdrawing worn-out banknotes, addressing some of the stolen currency or funds moving outside the financial system, in addition to reorganizing the circulating money supply.”
The MP, who asked to remain anonymous, added that “one of the most important ideas under discussion relates to the method of replacing the old currency. There are proposals to facilitate the replacement of ordinary amounts, while subjecting large amounts to different banking procedures, which may include opening a bank account, depositing the amount into it, and applying customer knowledge and verification requirements for the source of funds, instead of handing over the same amount in cash from the new issue. These details, including determining the size of the amount subject to these procedures, are still under discussion and have not been finalized, as they currently revolve around 100-150 million.”
He added that “the success of any project of this kind requires a sufficient transition period, ensuring that markets are not disrupted, and putting in place easy mechanisms for citizens and owners of natural savings, as well as the readiness of banks to receive deposits and deal with the expected large demand, because the goal in the end is not just to replace one piece of paper with another, but to take advantage of the currency change to rearrange a part of the monetary cycle and enhance confidence in the banking system and the ability to monitor the movement of funds.”
100 trillion outside the banks
The importance of changing the currency is highlighted by the fact that there are more than 100 trillion dinars outside the banks, distributed between daily transactions and the funds hoarded by citizens and companies, which indicates – according to experts – the weakness of cash entering the banking system, and makes the exchange process an opportunity to return part of these funds to the accounts, especially if changing large amounts is linked to proving their sources.
Recently, Ali Abdul-Ridha Alwan, director of the Trade Bank of Iraq (TBI), warned that keeping more than 85% of the money supply outside the banking system disrupts the liquidity cycle. He explained that citizens keeping money at home deprives banks of the liquidity they need to perform their role in economic activity and creates a disruption in the chain that begins with the injection of money through financial institutions and ends with spending and paying salaries.
What are the gains from the process?
A member of the Finance Committee says that “the initial estimates circulating regarding the results of the currency change indicate the possibility of recovering the equivalent of 20-25 trillion dinars of the cash mass that is not currently moving normally within the financial system, whether due to worn-out or counterfeit currency or hoarded funds, which would allow for the reorganization of an important part of the monetary cycle.”
He added that “estimates also assume that the replacement process will push large numbers of citizens to deal with banks and open accounts, and there are perceptions that about 25% of money owners who enter the banking system for the purpose of changing the currency may leave all or part of their money in their accounts instead of withdrawing it again in cash, which means increasing deposits, enhancing liquidity within banks, and returning part of the hoarded money to the banking cycle.” link
