INTERNATIONAL MONETARY FUND - IRAQ Country Report

[ronscarpa]

INTERNATIONAL MONETARY FUND

 

IMF Country Report No. 13/217 

 

IRAQ 

2013 ARTICLE IV CONSULTATION

 

 

http://www.imf.org/external/pubs/ft/scr/2013/cr13217.pdf

 

July 2013 

[robboys33]

DE FACTO= as though rightful: acting or existing in fact but without legal sanction.

 in section 14. It looks like we still have a wait ahead but it does say the rate can be increased.

[skrappyone]

31. The stable exchange rate has provided a valuable anchor in an uncertain 

environment. This policy remains appropriate for the foreseeable future. In the medium term, 

the authorities should create the conditions that would facilitate moving to a more flexible 

exchange rate

 

. The international investment position is estimated to be positive and improving. The 

overall balance of payments surpluses have made possible the build-up of significant financial 

assets abroad both in the DFI and in the form of international reserves of the CBI. As of end-

2011, authorities’ data show a positive international investment position of about $13 billion. 

While more recent data are not available, with public sector foreign financial assets close to 

$90 billion, commercial banks’ net asset position of around $5 billion, and external debt of 

$60 billion (excluding possible late interest on unrestructured debt, mainly to Golf 

Cooperation Council (GCC) countries, the net international investment position is likely to have 

strengthened at end-2012.

 The investment position should continue improving given the projection 

of rising external reserves and possible external debt restructuring

 

8. Competitiveness is mixed: 

 The oil sector is extremely competitive as the cost of producing oil—below $5 per 

barrel--is among the lowest in the world. At these levels, neither the real exchange rate 

 

Gross International Reserves 

(In percent of GDP)

Sources: Country authorities; and IMF staff estimates.

IRAQ

4 INTERNATIONAL MONETARY FUND

money transfer companies and money exchange bureaus;

 (v) the requirement to pay all obligations 

and debts to the government before proceeds of investments of investors, and salaries and other 

compensation of non-Iraqi employees may be transferred out of Iraq; (vi) the requirement to submit 

a tax certificate and a letter of non-objection stating that the companies do not owe any taxes to the 

government before non-Iraqi companies may transfer proceeds of current international transactions 

out of the country; (vii) the requirement that before non-Iraqis may transfer proceeds in excess of ID 

15 million out of Iraq, the banks are required to give due consideration of legal obligations of these 

persons with respect to official entities, which must be settled before allowing any transfer; and 

(viii) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. In 

addition, one exchange restriction maintained for security reasons should be notified to the IMF 

under the framework of Decision 144-(52/51). The MCP arises from the absence of a mechanism to 

ensure that the official exchange rate and the market exchange rate do not deviate by more than 

2 percent.

 

These are just some of the things that caught my eye.  Really don't like the one in red.  Don't shoot me I was just throwing things out here.

[IQD1217]

8. The CBI is committed to progressively liberalize the foreign exchange market as capacity to prevent AML/CFT is developed. It has recently taken steps to simplify foreign exchange market regulations and this has led to the elimination of many exchange restrictions. The CBI is working closely with staff on complying with Article VIII of the Fund’s Articles of Agreement, as well as eliminating the remaining exchange restrictions and the multiple currency practice.

[magawatt]

Flexible exchange rate = float?

[sandfly]

YEP THANKS

[abby01]

The real exchange rate has been 

appreciating over the past three 

years, and remains broadly in line 

with fundamentals (Appendix 1).