Iraq Economic News and Points to Ponder Wednesday Afternoon 12-20-23
Tlm724 Administrator Bondlady’s Corner
An Economic Vision On Linking The Dinar To The US Dollar: A Weak Point For Iraq
Today 19:40 Information/private.. Today, Wednesday, the economic expert, Diaa Al-Mohsen, considered the link of the Iraqi economy to the dollar currency a “weak point” for the country, while indicating the “optimal” way to overcome this problem.
Al-Mohsen said, in an interview with the Maalouma Agency, that “pegging the local currency to the US dollar represents a state of weakness for the country’s economy, because the green currency changes depending on changes in the US economy, such as raising the interest rate by the Federal Bank, which will cause the value of the dollar to rise, and so on.”
He added, “Relying all purchases on the dollar could have a negative or positive impact,” pointing out that “this issue can be overcome when there is a basket of currencies, that is, when the value of a particular currency is low, the government can move toward another currency.” The economic expert explained, “This happens when Iraq has a sufficient balance of these currencies, which gives it smooth conversion to the euro, the Russian ruble, and the Chinese yuan.”
Earlier, the head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, confirmed that Washington used the dollar 4 times during 2023 to pressure Baghdad to achieve a political agenda, which led to provoking crises and raising prices at rates of up to 10%, especially for basic materials, due to the impact of the dollar’s liquidity and its control by about 90%. of transactions directly.
The United States of America continues to impose its influence on Iraq in many vital files, including depositing the money from the sale of Iraqi oil in the US Federal Bank, amid clear blackmail by passing many files, most notably the dollar bill, which puts great pressure on the government. End 25/R
Follow Up On All Branches Of Exchange Companies Category (A, B).
December 20, 2023 Based on the regulations regulating the work of exchange and mediation companies in buying and selling foreign currencies No. (1) of 2022 / Article (11).
We would like to inform all exchange companies of category (A, B) that this bank seeks to protect the financial sector in Iraq and its integrity.. For more click here
Monetary Policy Question
Economical 12/20/2023 Muhammad Sharif Abu Maysam
There is a question raised about what some media outlets are reporting these days, as the media is talking about negotiations regarding requests submitted by the Iraqi side to the US Federal Reserve to obtain payments of cash deposited in the Federal Reserve’s coffers to finance the movement of exchanges and trades in the Iraqi market or to finance foreign trade according to invoices issued Delaying its disbursement or sometimes rejecting it under conditions restricting disbursement, and
it is not clear to the citizen who reproduces these rumors the accuracy of what is being said, which requires clarification to the media by the relevant authorities to enhance public confidence in monetary policy and put an end to these rumors and what is rumored in the media. Tendency regarding the continued custody of Iraqi funds.
Everyone knows that Iraq has regained its natural role after Security Council Resolution 1959 of 2008, but under the Strategic Framework Agreement with the United States, it resorted in the years (2009 to 2013) to the method of protecting funds from commercial creditors by the American government, and because of the circumstances that the country went through.
The annual protection request was repeated, the last of which was the request recommended by the Ministerial Economic Committee on May 22, 2013.
In 2014, the reserves of the Central Bank of Iraq reached about 80 billion dollars.
At that time, the President of the United States of America, Barack Obama, decided to lift the immunity granted to the Development Fund for Iraq and private property belonging to the Iraqi government abroad, and attributed the reason to the development taking place in the Iraqi government’s capabilities to manage The consequences accompanying the debts incurred by the previous dictatorial regime.
Since then, Iraq has managed its money independently, while media data reveal to us obligations and requirements related to international agreements and treaties, suggesting that the management of the financial and monetary file is related to external wills.
What reinforces the content of these data are the statements related to Iraqi requests to the US Federal Reserve and the US Treasury to meet the request. Cash shipments for 2024.
Yes, the international financial system, in light of the war in monetary currencies, and similarly to electronic currencies in a turbulent world full of conflicts and international interests, has the advantage of the power of the powerful, which is formed by dominating modern payment tools and mechanisms based on electronic technologies,
which sometimes limit and sometimes interfere in the affairs of financial and monetary policies in countries in the context of… Its control over the global banking system, and here the banking rule that says that property rights are always creditor in nature may fall, because how can the debtor control the creditor? https://alsabaah.iq/89050-.html
Central Bank: The Non-Oil Deficit Exceeds 80% And Threatens The State’s Financial Position
Economy News – Baghdad The Governor of the Central Bank, Ali Al-Alaq, announced today, Wednesday, that the non-oil deficit in state resources exceeds 80%, considering it a number that “threatens” the state’s financial situation, while indicating that employing information technology in state institutions has become necessary.
Al-Alaq said in his speech during the Ministry of Finance conference within the Financial and Accounting Training Center, followed by Al-Iqtisad News, that “the fourth revolution of the Davos conference depends on the individual and the group, and in order for us to be close to reality with what we are, without a doubt we are far from the fourth revolution and we On the cusp of the third revolution.”
Al-Alaq added, “We are still searching for the path to digital wealth and in all fields, and we are still within the framework of simple digitization, and drawing up steps and procedures is very necessary.”
Al-Alaq continued, “Cleansing state institutions from manifestations of corruption depends on digital technology by increasing “Electronic interconnection to reduce institutional confusion.”
Al-Alaq pointed out that “employing information technology in state institutions has become necessary,” indicating that “abolishing the Ministry of Science and Technology was a measure that contradicts the possibility and development of the technological aspect, and it is an incorrect measure.” The Governor of the Central Bank stressed However, “the non-oil deficit figure exceeds 80% and threatens the state’s financial situation,” noting that “the government cannot redistribute income within existing tools.”
Al-Alaq pointed out that “in the context of stimulating electronic payment, the Central Bank of Iraq benefits most.” of modern technology,” pointing out that “despite the availability of all means of electronic payment mechanism, we are facing complementary environmental conditions, including increased demand for the dollar.”
Views 138 Added 12/20/2023 – https://economy-news.net/content.php?id=38671
The Center For Banking Studies Holds Its First Annual Conference
December 20, 2023 Wednesday, the Center for Banking Studies at the Central Bank of Iraq organized its first annual conference, which carried the slogan “Sovereign Sukuks as a Tool for Financing Economic Development Projects,” with local and Arab participation.
In its three sessions, the conference discussed the importance of sukuks as one of the tools for economic development and their legal aspects, as well as the practical steps for issuing sukuks, hosting the most prominent officials and experts in the Iraqi and Arab banking sector.
The conference was opened with a speech delivered by the Deputy Governor of the Central Bank of Iraq, Dr. Ammar Hamad Khalaf, on behalf of His Excellency the Governor, in which
he pointed out the importance of the topic that was chosen for this conference, which coincided with the presentation of the draft Islamic Sukuk Law to the Iraqi Council of Representatives two weeks ago, reviewing the center’s role and importance. In developing workers in the Iraqi banking sector.
The participants praised the role of the Central Bank of Iraq in holding this event because of its role in expanding the areas of financing and investment in accordance with the modern Islamic formulation.
The conference concluded with a set of recommendations that emerged from the participating papers.
Central Bank of Iraq information Office 20 – December – 2023 https://cbi.iq/news/view/2489
What Is a Sukuk? Sharia-Compliant Bond-Like Financial Instruments
By Akhilesh Ganti Updated May 13, 2022 Investopedia / Ellen Lindner What Is a Sukuk?
A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia. Since the traditional Western interest-paying bond structure is not permissible, the issuer of a sukuk essentially sells an investor group a certificate, and then uses the proceeds to purchase an asset that the investor group has direct partial ownership interest in. The issuer must also make a contractual promise to buy back the bond at a future date at par value.1
The Iraqi Central Bank Addresses Banks To Finance Small Merchants From Türkiye In The Euro (Document)
Document.. The Iraqi Central Bank Addresses Banks To Finance Small Merchants From Türkiye With “Euro”
Economy | |Baghdad today – Baghdad Today, Wednesday (December 20, 2023), the Central Bank of Iraq addressed banks to finance small merchants from Turkey in the euro currency.
According to a document issued by the bank, obtained by “Baghdad Today”, “The Association of Iraqi Private Banks was approached to finance the imports of small merchants from Turkey using the euro.
The text of the document stated:
“Referring to the meetings that took place in Turkey in your presence for the period 11-28-30-2023, we hope to inform all banks wishing to regulate small merchants’ imports from Turkey to submit their requests to the Central Bank of Iraq (Department of Investments and Foreign Transfers).”
The Central Bank of Iraq stipulated that “these banks attach a file about one of the specialized and reputable shipping companies that has branches in Turkey and Iraq, and has an electronic registration and tracking system.” ‘
According to the document, “When the bank’s request is accepted, an agreement will be signed between the bank and the company that includes the obligations of each party, provided that the bank’s obligations include full responsibility for submitting all relevant documents from the commercial lists on the basis of which the amounts will be disbursed to Turkish exporters, bills of lading, and proof of payment.” Customs duties in Iraq on these goods shall be submitted to the Banking Control Department upon request.” According to the document,
“The Central Bank of Iraq will enhance the balance of the Iraqi bank in the euro currency in its account with its correspondent in Turkey for this purpose, provided that the shipping companies receive the import amounts from the Iraqi merchant in the Iraqi dinar currency and that payment in Turkey to the Turkish merchant is made either in the euro currency or the Turkish lira.””.
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Provoking Points To Ponder on Money
We were awfully poor. But we had a lot of things that money can’t buy . . like unpaid bills.– Anonymous
“Mommy, we’re not going to be poor again, are we?” “Not as long as you have that rare blood type.” – Brett Butler
It doesn’t matter if you’re rich or poor, as long as you’ve got money. – Joe E. Lewis
When I was young, I thought money was the most important thing in life. Now that I’m old – I know it is.– Oscar Wilde
I’d like to live like a poor man – only with lots of money. – Pablo Picasso
All progress is based upon a universal innate desire on the part of every organism to live beyond its income. – Samuel Butler
To make money, buy some good stock, hold it until it goes up, and then sell it. If it doesn’t go up, don’t buy it. – Will Rogers
What some people mistake for the high cost of living is really the cost of living high.- Doug Larson
The wretchedness of being rich is that you live with rich people. – Logan Pearsall Smith