Iraqi News Highlights and Points to Ponder Wednesday AM 12-20-23
The International Monetary Fund Issues A Report On Iraq’s Economic Policy
Money and business The International Monetary Fund issued a report on Iraq’s economic policy, expecting Iraq’s non-oil gross domestic product to grow by 5%.
An International Monetary Fund statement seen by Al-Iqtisad News stated, “A team of International Monetary Fund experts, led by Jean-Guillaume Poulain, met with representatives of the Iraqi authorities in Amman, Jordan, during the period 12-17 of this December, with the aim of discussing The latest developments, developments and prospects, in addition to discussing plans related to policies in the coming period.”
Bolan said, according to the statement, “The non-oil gross domestic product is expected to grow by 5 percent in 2023 in light of the significant expansion in public finances within the framework of the effective three-year budget law,” noting that “continuing implementation of the budget should help in continuing Strong non-oil growth in 2024.
However, the decline in oil production after the closure of the oil pipeline linking Iraq and Turkey, and the reduction in production at the request of the OPEC+ group, will work together to reduce the growth of the gross domestic product in the years 2023 and 2024.”
He added, “The inflation rate has declined from its peak by 7 percent in January of this year, and inflation is expected to stabilize during the coming months, thanks to the Central Bank of Iraq adopting a more stringent monetary policy, and the impact resulting from raising the exchange rate.
” The Iraqi dinar, the decline in global food prices, and the return of trade financing operations to normal with improved compliance with the anti-money laundering and terrorist financing framework.”
He continued: “The adoption of the budget setting method over a period of three years in June 2023 constituted a shift in the practice used for setting budgets in Iraq, with the aim of improving the level of financial planning and the continuity of implementing important development projects in the medium term,” stressing that “despite the delay Starting to implement the budget this year, the public finance balance is expected to transform from a large surplus achieved in 2022 to a budget deficit in 2023.”
He stated, “Experts expect the size of the government’s fiscal deficit to expand further in the year 2024, reflecting the full annual impact of budget measures.
Also, the significant expansion in public finances, including a fundamental increase in the numbers of members of the public sector and retirement, creates permanent requirements for Public spending that will put pressure on public finances in the medium term.”
He went on to say: “Ensuring the sustainability of public finances, in the context of the uncertain outlook for oil prices, requires a gradual tightening of the fiscal policy stance, while at the same time working to ensure the protection of critical needs for infrastructure and social spending.
This will require “Also mobilizing more non-oil revenues, containing the wage bill for government employees, and reforming the government retirement system. These measures must be supported by a move to a more targeted social safety net that works to provide better protection for vulnerable groups.”
He explained, “The mission welcomed the government plans aimed at strengthening public financial management, including welcoming the steps taken by the government towards establishing the unified treasury account.
In this context, the mission reiterated the importance of adhering to the framework for managing government guarantees,” pointing out that “the Central Bank The Iraqi government has tightened its monetary policy appropriately, and this tightening includes increasing the interest rate on monetary policy tools and raising the mandatory reserve requirements.
The mission welcomed the progress made in strengthening the domestic liquidity management framework, and encouraged the continuation of efforts made to get rid of excess liquidity and develop the inter-bank trading market. banks with the aim of enhancing the transmission of the impact of monetary policy.”
He went on to say: “Structural reforms aimed at stimulating economic diversification and creating job opportunities led by the private sector remain a pivotal factor in achieving sustainable and inclusive growth.” Priorities at this level include creating equal opportunities for the private sector by implementing reforms in banking and the electricity sector, reducing distortions in the labor market, and continuing efforts aimed at strengthening governance and reducing the spread of corruption.” He
stressed that “the Fund’s team of experts stands ready Readiness to support the Iraqi authorities in their reform efforts, and would like to thank them for the frank and fruitful discussions during the mission.”
Views 45 12/20/2023 – https://economy-news.net/content.php?id=38653
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.” “.
Economic Reform In The Prime Minister’s Vision And Governmental Approach
Economic reform in the Prime Minister’s vision and governmental approach 101Samir Al-Nusairi
Prime Minister Muhammad Shiaa Al-Sudani said last week while answering questions from attendees of the “Beston Talk” program on Rudaw TV that economic reform begins with financial and banking reform, stressing that the government’s economic vision is based on an accurate diagnosis of the obstacles and challenges of economic reform, which has not been achieved since 2003 due to… The banking and financial sector has not witnessed any real reform process for two decades because without a sound financial and banking sector, it is not possible to build a sound national economy.
Therefore, the vision of the Prime Minister for comprehensive and radical economic reform comes in line with what was stated in more than 12 axes that discuss economic reform, the details of which were included in the government curriculum, which were emphasized and considered among the priorities that must be implemented.
What concerns us here is what is stated in the twelve axis (financial and banking reform) and paragraphs (1, 2, 3, 4, 5, 6 and 7) thereof, which clearly and accurately state that (financial and banking reform provides a real and effective basis for the advancement of the Iraqi economy and stimulating investment through restructuring and mechanizing government banks, reconsidering their work and stimulating…
Private banks and empowering them to be able to support investment and development in a real way) and that the Prime Minister’s vision focuses on the importance of the financial and banking sector so that it occupies within the financial structure of the economy a vital position in mobilizing savings and financing development through its ability to flow money between the categories of the national economy, which is the basic step for economic reform
and that The measures that the Central Bank is currently taking in high coordination with the support of the government to implement its new comprehensive strategy to reform, develop and classify banks according to several axes, the most prominent of which is the completion and implementation of projects for the transformation from a cash economy to a digital economy and a cashless society
and the development of national payments systems by establishing the National Payment Systems Company, which will undertake the development and operation of systems.
Payments are under the supervision of the Central Bank, launching a financial inclusion strategy, working to adhere to international standards for the global financial system, focusing on regulating foreign trade financing, opening accounts for Iraqi banks with correspondent banks, controlling foreign transfers, and opening dealings in other foreign currencies in addition to the US dollar, as well as drawing up a national lending plan to be approved.
New mechanisms for organizing the granting of loans for the development of small and medium enterprises in accordance with the Prime Minister Riyada’s initiative to employ young people and qualify them to choose their projects, relying on the banks’ own financial capabilities and attracting deposits to provide liquidity and invest them in accordance with the instructions of the Central Bank.
Directing the small and medium enterprise financing initiative towards the economic and productive sectors that have the greatest impact on contributing to development. Establishing Riyada Bank, creating a loan guarantee company, activating the work of the deposit guarantee company, and amending its internal system in a way that enhances confidence in the banking sector.
Continuing the procedures and using monetary policy applications to control the exchange rate and reduce the gap between the official rate and the black market rate, which has begun to narrow towards reaching the targeted and balanced exchange rate.
Referring to the Prime Minister’s assertion that the government cannot accept that the official exchange rate be equal to the black market rate. All of this indicates that the many services provided by the banking system in developed countries have enabled these countries to achieve the progress and economic growth they have achieved.
The solidity of the banking structure has become one of the necessities of building a prosperous economy that adopts modernity and sound sustainable development systems. The development of banking habits and awareness of the importance of developing banking facilities in a way that secures the building of the national savings base and develops the financial resources necessary to build the economy have become among the priorities of decision makers.
Therefore, the soundness of the banking system and the mobilization of sound decisions in the field of economic policies towards developing and modernizing banking systems ensures achieving momentum in the world of real and financial investment, which revitalizes the financial and monetary markets, leading to attracting foreign capital in search of profit, which requires the government and the central bank to take measures.
It is necessary to fortify and strengthen local banking systems in a way that makes them capable of facing the challenges of transferring capital to and from abroad without causing money laundering or foreign exchange smuggling operations, and thus increasing the profitability of financial and banking institutions and enhancing the structure of the gross domestic product.
This is what the government and the Central Bank are currently active in doing. It is, in fact, a new reformist economic vision and thought to harness all capabilities and energies in order to achieve it in the next stage.iews 33 12/20/2023 – https://economy-news.net/content.php?id=38665
Provoking Points To Ponder on Family:
Family love is messy, clinging, and of an annoying and repetitive pattern, like bad wallpaper.- Friedrich Nietzsche
In truth a family is what you make it. It is made strong, not by number of heads counted at the dinner table, but by the rituals you help family members create, by the memories you share, by the commitment of time, caring, and love you show to one another, and by the hopes for the future you have as individuals and as a unit. – Marge Kennedy
[A mother] discovers with great delight that one does not love one’s children just because they are one’s children but because of the friendship formed while raising them. – Gabriel Garcia Marquez
The Family is the Country of the heart. There is an angel in the Family who, by the mysterious influence of grace, of sweetness, and of love, renders the fulfillment of duties less wearisome, sorrows less bitter. The only pure joys unmixed with sadness. – Giuseppe Mazzini
Smile at each other, smile at your wife, smile at your husband, smile at your children, smile at each other – it doesn’t matter who it is and that will help you to grow up in greater love for each other. – Mother Teresa
No man has ever lived that had enough of children’s gratitude or woman’s love.- William Butler Yeats