fnbplanet Posted March 25, 2014 Report Share Posted March 25, 2014 Statement by the IMF Mission at the Conclusion of a Staff Visit for Iraq Press Release No. 14/124 March 25, 2014 An IMF mission led by Carlo Sdralevich, Mission Chief for Iraq, visited Amman during the period March19-24 to meet with an official Iraqi delegation led by Acting Minister of Finance, Dr. Safa Al Safi. The mission also met with the Acting Governor of the Central Bank, Dr. Abdul Basit Al Turki Said, and officials from the ministries of finance, planning, and oil, the central Bank, and the Board of Supreme Audit. The IMF team also consulted with representatives of Iraqi private sector and diplomatic community in Amman. The mission reviewed recent macroeconomic developments and the current fiscal and monetary issues. This work will help prepare the 2014 Article IV consultation with Iraq later in the year. At the conclusion of the mission, Mr. Sdralevich made the following statement from Amman: “Iraq maintained macroeconomic stability in 2013, despite lower than projected oil production and exports. Growth remained solid at 4.2 percent, thanks to non-oil activity of about 7 percent, driven by construction and retail trade. Inflation declined slightly to 3.1 percent from 3.6 percent in 2012, reflecting stable world food and fuel prices. The exchange rate remained stable, and international reserves grew by $7 billion to $78 billion at end-2013 (about 10 months of imports of goods and services). “Economic activity is projected to strengthen in 2014, with GDP growth rising to over 6 percent thanks to oil production of 3.2 million barrels per day (mbpd) and oil exports of 2.6 mbpd, even though non-oil activity is affected by the security situation. “However, in 2013, lower than expected oil revenues and increased spending pressures—largely arising from the difficult security situation—weighed on the overall fiscal performance. As a result, the budget deficit rose to 6 percent of GDP for 2013, financed though the Development Fund for Iraq, which declined from over $18 billion to $6.5 in the course of the year. “The draft 2014 budget envisages large spending outlays reflecting new commitments for security, social assistance and pensions, and transfers to the provinces. To preserve macroeconomic stability, planned expenditure commitments should be scaled down, while preserving key social spending. In the longer run, Iraq should strive to manage well its large, and rising, oil revenues by containing current spending and building up fiscal and external buffers. “In this connection, we also underlined the importance of strengthening public financial management, including budgetary processes, classification, and reporting, and introducing an integrated information system, to help prepare and execute sustainable fiscal policies. “We also discussed progress in the financial sector reform agenda. The Central Bank of Iraq is pressing ahead with the improvement of its operations and the reform of the financial sector by preparing new central bank, commercial bank, and anti-money laundering/combating the financing of terrorism legislation, and introducing a new payment system. However, more needs to be done by the government and the central bank to restructure the large state-owned banks, and leveling the playing field for private banking sector, gradually increasing their access to government business. “The exchange rate—supported by ample international reserves of the central bank—provides a key nominal anchor to the economy and has served Iraq well. We encouraged the Central Bank of Iraq to renew its efforts to liberalize gradually the foreign exchange market, further reducing the spread between the auction and parallel market rates. “We would like to thank the acting minister of finance, the acting governor of the Central Bank of Iraq, and their staff for the productive and candid discussions we had during the mission.” http://www.imf.org/external/np/sec/pr/2014/pr14124.htm 3 Link to comment Share on other sites More sharing options...
onerighthand Posted March 25, 2014 Report Share Posted March 25, 2014 (edited) Statement by the IMF Mission at the Conclusion of a Staff Visit for IraqPress Release No. 14/124March 25, 2014An IMF mission led by Carlo Sdralevich, Mission Chief for Iraq, visited Amman during the period March19-24 to meet with an official Iraqi delegation led by Acting Minister of Finance, Dr. Safa Al Safi. The mission also met with the Acting Governor of the Central Bank, Dr. Abdul Basit Al Turki Said, and officials from the ministries of finance, planning, and oil, the central Bank, and the Board of Supreme Audit. The IMF team also consulted with representatives of Iraqi private sector and diplomatic community in Amman. The mission reviewed recent macroeconomic developments and the current fiscal and monetary issues. This work will help prepare the 2014 Article IV consultation with Iraq later in the year. At the conclusion of the mission, Mr. Sdralevich made the following statement from Amman: “Iraq maintained macroeconomic stability in 2013, despite lower than projected oil production and exports. Growth remained solid at 4.2 percent, thanks to non-oil activity of about 7 percent, driven by construction and retail trade. Inflation declined slightly to 3.1 percent from 3.6 percent in 2012, reflecting stable world food and fuel prices. The exchange rate remained stable, and international reserves grew by $7 billion to $78 billion at end-2013 (about 10 months of imports of goods and services). “Economic activity is projected to strengthen in 2014, with GDP growth rising to over 6 percent thanks to oil production of 3.2 million barrels per day (mbpd) and oil exports of 2.6 mbpd, even though non-oil activity is affected by the security situation. “However, in 2013, lower than expected oil revenues and increased spending pressures—largely arising from the difficult security situation—weighed on the overall fiscal performance. As a result, the budget deficit rose to 6 percent of GDP for 2013, financed though the Development Fund for Iraq, which declined from over $18 billion to $6.5 in the course of the year. “The draft 2014 budget envisages large spending outlays reflecting new commitments for security, social assistance and pensions, and transfers to the provinces. To preserve macroeconomic stability, planned expenditure commitments should be scaled down, while preserving key social spending. In the longer run, Iraq should strive to manage well its large, and rising, oil revenues by containing current spending and building up fiscal and external buffers. “In this connection, we also underlined the importance of strengthening public financial management, including budgetary processes, classification, and reporting, and introducing an integrated information system, to help prepare and execute sustainable fiscal policies. “We also discussed progress in the financial sector reform agenda. The Central Bank of Iraq is pressing ahead with the improvement of its operations and the reform of the financial sector by preparing new central bank, commercial bank, and anti-money laundering/combating the financing of terrorism legislation, and introducing a new payment system. However, more needs to be done by the government and the central bank to restructure the large state-owned banks, and leveling the playing field for private banking sector, gradually increasing their access to government business. “The exchange rate—supported by ample international reserves of the central bank—provides a key nominal anchor to the economy and has served Iraq well. We encouraged the Central Bank of Iraq to renew its efforts to liberalize gradually the foreign exchange market, further reducing the spread between the auction and parallel market rates. “We would like to thank the acting minister of finance, the acting governor of the Central Bank of Iraq, and their staff for the productive and candid discussions we had during the mission.” Doh! missed it by that much 99! please remove second posting please. Edited March 25, 2014 by onerighthand 1 Link to comment Share on other sites More sharing options...
k98nights Posted March 25, 2014 Report Share Posted March 25, 2014 Statement by the IMF Mission at the Conclusion of a Staff Visit for Iraq Press Release No. 14/124 March 25, 2014 An IMF mission led by Carlo Sdralevich, Mission Chief for Iraq, visited Amman during the period March19-24 to meet with an official Iraqi delegation led by Acting Minister of Finance, Dr. Safa Al Safi. The mission also met with the Acting Governor of the Central Bank, Dr. Abdul Basit Al Turki Said, and officials from the ministries of finance, planning, and oil, the central Bank, and the Board of Supreme Audit. The IMF team also consulted with representatives of Iraqi private sector and diplomatic community in Amman. The mission reviewed recent macroeconomic developments and the current fiscal and monetary issues. This work will help prepare the 2014 Article IV consultation with Iraq later in the year. At the conclusion of the mission, Mr. Sdralevich made the following statement from Amman: “Iraq maintained macroeconomic stability in 2013, despite lower than projected oil production and exports. Growth remained solid at 4.2 percent, thanks to non-oil activity of about 7 percent, driven by construction and retail trade. Inflation declined slightly to 3.1 percent from 3.6 percent in 2012, reflecting stable world food and fuel prices. The exchange rate remained stable, and international reserves grew by $7 billion to $78 billion at end-2013 (about 10 months of imports of goods and services). “Economic activity is projected to strengthen in 2014, with GDP growth rising to over 6 percent thanks to oil production of 3.2 million barrels per day (mbpd) and oil exports of 2.6 mbpd, even though non-oil activity is affected by the security situation. “However, in 2013, lower than expected oil revenues and increased spending pressures—largely arising from the difficult security situation—weighed on the overall fiscal performance. As a result, the budget deficit rose to 6 percent of GDP for 2013, financed though the Development Fund for Iraq, which declined from over $18 billion to $6.5 in the course of the year. “The draft 2014 budget envisages large spending outlays reflecting new commitments for security, social assistance and pensions, and transfers to the provinces. To preserve macroeconomic stability, planned expenditure commitments should be scaled down, while preserving key social spending. In the longer run, Iraq should strive to manage well its large, and rising, oil revenues by containing current spending and building up fiscal and external buffers. “In this connection, we also underlined the importance of strengthening public financial management, including budgetary processes, classification, and reporting, and introducing an integrated information system, to help prepare and execute sustainable fiscal policies. “We also discussed progress in the financial sector reform agenda. The Central Bank of Iraq is pressing ahead with the improvement of its operations and the reform of the financial sector by preparing new central bank, commercial bank, and anti-money laundering/combating the financing of terrorism legislation, and introducing a new payment system. However, more needs to be done by the government and the central bank to restructure the large state-owned banks, and leveling the playing field for private banking sector, gradually increasing their access to government business. “The exchange rate—supported by ample international reserves of the central bank—provides a key nominal anchor to the economy and has served Iraq well. We encouraged the Central Bank of Iraq to renew its efforts to liberalize gradually the foreign exchange market, further reducing the spread between the auction and parallel market rates. “We would like to thank the acting minister of finance, the acting governor of the Central Bank of Iraq, and their staff for the productive and candid discussions we had during the mission.” http://www.imf.org/external/np/sec/pr/2014/pr14124.htm Link to comment Share on other sites More sharing options...
George Hayduke Posted March 25, 2014 Report Share Posted March 25, 2014 “The exchange rate—supported by ample international reserves of the central bank—provides a key nominal anchor to the economy and has served Iraq well. We encouraged the Central Bank of Iraq to renew its efforts to liberalize gradually the foreign exchange market, further reducing the spread between the auction and parallel market rates." Hmmm - half full or half empty? I'd like to see "... has served Iraq well and has been stabilizing factor as Iraq moves to adjust its exchange rate more in par with its actual value." 2 Link to comment Share on other sites More sharing options...
ronscarpa Posted March 25, 2014 Report Share Posted March 25, 2014 Thanks...! Link to comment Share on other sites More sharing options...
aitshioud Posted March 25, 2014 Report Share Posted March 25, 2014 Looks like they already blew a bunch of the DFI money as well. Thanks for the post Link to comment Share on other sites More sharing options...
sandfly Posted March 26, 2014 Report Share Posted March 26, 2014 THANKS 1 Link to comment Share on other sites More sharing options...
AmericaInc Posted March 26, 2014 Report Share Posted March 26, 2014 (edited) “The exchange rate—supported by ample international reserves of the central bank—provides a key nominal anchor to the economy and has served Iraq well. We encouraged the Central Bank of Iraq to renew its efforts to liberalize gradually the foreign exchange market, further reducing the spread between the auction and parallel market rates." Hmmm - half full or half empty? I'd like to see "... has served Iraq well and has been stabilizing factor as Iraq moves to adjust its exchange rate more in par with its actual value." this is what they are saying I believe. "liberalize" can mean unpeg, open up to a managed or free float or RV We don't know, but it's probably one of those options. "Gradually" implies a managed float. Go liberals! Edited March 26, 2014 by AmericaInc 2 Link to comment Share on other sites More sharing options...
George Hayduke Posted March 26, 2014 Report Share Posted March 26, 2014 Very possible. Hope it is 'liberalized' soon. Link to comment Share on other sites More sharing options...
boosterbglee Posted March 26, 2014 Report Share Posted March 26, 2014 Liberalize....so we can ...realize......the RV! Link to comment Share on other sites More sharing options...
SnowGlobe7 Posted March 27, 2014 Report Share Posted March 27, 2014 this is a good article...i am bumping...i would like to see more comments Link to comment Share on other sites More sharing options...
George Hayduke Posted March 27, 2014 Report Share Posted March 27, 2014 Dinar gonna liberalize Soz we can realize The life we fantasize About Dinar livin’ We gonna jump about Sing songs and shout Wear clothes that flout Our Dinar livin’ Don’t care ‘bout taxes Pay ‘em while laughin’ Sippin tea chillaxtion While Dinar livin’ Next… ? 1 Link to comment Share on other sites More sharing options...
Dinarian64 Posted March 27, 2014 Report Share Posted March 27, 2014 Wow! The word liberal being celebrated on DV? Now I have seen everything! Go liberals lets this RV progress! 1 Link to comment Share on other sites More sharing options...
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