The central bank is likely to decide to exclude Iraq from sanctions against Iran within days

[SocalDinar]

4 hours ago, dinareffic said:

Central Bank: dependence on oil sign us in the problems (the new Arab)





The Central Bank warns of the repercussions of dependence on oil


The new Arab Baghdad


10 December 2018[/rtl]








 

The Governor of  the Central Bank of Iraq Ali Al-Alaq said that the bank is facing challenges due to financial policies, stressing during the session of the "relationship between the financial and monetary policies," which was held within the activities of the fourth annual conference of the bank on Monday, the widening gap between  the  non-oil revenues that do not Covering only 10 per cent of expenditures, and relying on oil resources to cover the remaining expenditures, has put the country in trouble as oil prices have declined in recent years. 

He added that this heavy reliance on oil increases the risk ratios and increases the pressure on the central bank to cover the gap, noting that oil revenues fell about 70 per cent, while the government reduced about 20 per cent of its expenses, to compensate for this reduction.

He pointed out that these problems led to two options, either the sacrifice of the central bank part of its reserves of foreign exchange, while the second option to make changes in the exchange rate, a move that harm the citizens and increase the richness of the rich and the impoverishment of low-income, stressing that the relationship between the two policies Finance and cash are a real challenge for the central bank. 

The bank maintains a high level of foreign reserves and continues its efforts to stabilize the local currency, control inflation and increase economic growth in the country. 

He pointed to the widening of the volume of non-performing loans in Iraq to reach 6 trillion dinars out of 37 trillion dinars, which is the total volume of loans, stressing that banks cut 2.5 trillion dinars of profits or 16% of capital to cover this problem, calling for the need to strengthen the rule of law To face the phenomenon of non-performing loans.

He referred to the initiatives launched by the Central Bank, including the "industrial, agricultural and industrial lending initiative of 5 trillion dinars, as well as the initiative of financing small projects by a trillion and a half through private and public banks, the largest in the history of Iraq."




For his part, the President of the Association of Iraqi private banks Wadih al-Hanal, in his speech during the conference, that "the Association seeks to create greater opportunities for private banks through dealing with them on an equal footing with government banks, especially in the area of the settlement of salaries of employees." 

He continued: "The Association will also continue its efforts to achieve the goals of financial inclusion in accordance with the perspective of the Central Bank of Iraq and in the framework of his hard work and strategic plans ... and continue to work to remove obstacles to the creation of a network of correspondents from foreign banks, which will restore Iraqi banking relations to normal. 

For his part, said the Chairman of the Board of the Arab Monetary Fund Abdul Rahman Al-Humaidi, in his speech, "The Central Bank has great efforts in support system">support of the Iraqi economy, and maintained the stability of the currency and adopted several actions and initiatives that will enhance the financial situation of Iraq."



(USD = 120 IQD)

https://www.alaraby.co.uk/economy/2018/12/10/%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82%D9%8A-%D9%8A%D8%AD%D8%B0%D8%B1-%D9%85%D9%86-%D8%AA%D8%AF%D8%A7%D8%B9%D9%8A%D8%A7%D8%AA-%D8%A7%D9%84%D8%A7%D8%B9%D8%AA%D9%85%D8%A7%D8%AF-%D8%B9%D9%84%D9%89-%D8%A7%D9%84%D9%86%D9%81%D8%B7

Sounds like He's talking about Dutch Disease

Edited December 13, 2018 by SocalDinar

[Laid Back]

He’s taking about the need to diversify the economy and stop the dependence on oil. 

 

Go cbi

Go monetary policy 

Go diversification of the economy 

Go growth 

Go purchasing power 

Go $1:1

 

 

[Mary B]

Iraq is committed to implementing its obligations on US sanctions against Tehran

Saturday, 15 December 2018
 

Iraq is committed to carrying out its obligations on US sanctions on Tehran 


The Iraqi central bank governor Ali al-Alak said the bank had taken measures to adapt to US sanctions imposed on Tehran, especially with regard to dealing with the dollar. 


He added: The dollar deal with Iran has been suspended since 2012, and in practice, can not convert the dollar to Iran as any payments in this currency will continue in the US financial system and will stop, so Iraqwas resorting to payment in other currencies, As the expansion of the embargo and the reservations of countries,. 

 He added that the options are limited even in the settlement of payments in currencies other than the dollar, pointing out that there are necessary issues linking IraqIran, including gas and electricity, declaring close to an agreement with Washington to obtain financial exemptions for sanctions against Iran.

 

https://www.thebaghdadpost.com/ar/Story/138203/%D8%A7%D9%84%D8%B9%D9%84%D8%A7%D9%82-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D9%85%D9%84%D8%AA%D8%B2%D9%85-%D8%A8%D8%AA%D9%86%D9%81%D9%8A%D8%B0-%D8%A7%D9%84%D8%AA%D8%B2%D8%A7%D9%85%D8%A7%D8%AA%D9%87-%D8%A8%D8%B4%D8%A7%D9%86-%D8%A7%D9%84%D8%B9%D9%82%D9%88%D8%A8%D8%A7%D8%AA-%D8%A7%D9%84%D8%A3%D9%85%D8%B1%D9%8A%D9%83%D9%8A%D8%A9-%D8%B9%D9%84%D9%89-%D8%B7%D9%87%D8%B1%D8%A7%D9%86

Edited December 15, 2018 by Mary B