IMF Staff Completes 2019 Article IV Mission on Iraq.

[Laid Back]

2019 ARTICLE IV CONSULTATION AND PROPOSAL FOR POST-PROGRAM MONITORING—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR IRAQ

Full Report in pdf 85 pages.

https://www.imf.org/~/media/Files/Publications/CR/2019/1IRQEA2019001.ashx

I recommend everyone to read it.

I believe this is the most important piece of the RV puzzle.

Go RV

Go $1:1

 

[Laid Back]

 Some information I got from the report, I’m going to continue reading 

 

The Iraqi dinar peg with the U.S. dollar remains an appropriate nominal anchor for macroeconomic policies.

 

Exchange Arrangement

Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy. Effective January 2, 2017, the cash and transfer exchange rate was set at ID 1,184 plus ID 6 (fees) per U.S. dollar. Effective May 24, 2018, the official exchange rate was set at ID 1,190 per U.S. dollar including the Central Bank commission (ID 1,182 plus ID 8 (fees)) according to the closing prices of the daily bulletin of gold & main currencies published on the CBI website (www.cbi.iq).
The CBI provides foreign exchange at the official exchange rate for permissible transactions through its daily auctions (allocations), establishing a peg. However, because certain transactions are excluded from access to the CBI auctions, many transactions take place at parallel market exchange rates. The CBI publishes the daily volume of the auction allocation on its website.
Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1
1 The authorities have imposed a requirement that, to access the CBI foreign exchange window, a purchaser must have at least one bank account that has been opened for a minimum of six months. This requirement does not apply for access to foreign exchange from other sources, including purchases of foreign exchange from commercial banks’ own resources. Staff will monitor the implementation of this requirement to ascertain whether any undue burdens on access to foreign exchange for current international transactions emerge from its application in practice.

The MCP arises from the lack of a mechanism to ensure that the exchange rate at the CBI foreign exchange window and the market rates (retail exchange rates of commercial banks and exchange bureaus for the sale of foreign currency from sources other than the CBI foreign exchange window) do not deviate from each other by more than 2 percent.
A previously identified exchange restriction arising from an Iraqi balance owed to Jordan under an inoperative bilateral payment agreement has been eliminated.
 

Go RV

Go $1:1

 

[slb]

Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1

 

??????

[ChuckFinley]

Take a look on page 74 or so, talks MCP

 

Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no 
longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, 
Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval 
under Article VIII, Section 3.1
 1 The authorities have imposed a requirement that, to access the CBI foreign exchange window, a purchaser must

[ChuckFinley]

22 minutes ago, Laid Back said:

 Some information I got from the report, I’m going to continue reading 

 

The Iraqi dinar peg with the U.S. dollar remains an appropriate nominal anchor for macroeconomic policies.

 

Exchange Arrangement

Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy. Effective January 2, 2017, the cash and transfer exchange rate was set at ID 1,184 plus ID 6 (fees) per U.S. dollar. Effective May 24, 2018, the official exchange rate was set at ID 1,190 per U.S. dollar including the Central Bank commission (ID 1,182 plus ID 8 (fees)) according to the closing prices of the daily bulletin of gold & main currencies published on the CBI website (www.cbi.iq).
The CBI provides foreign exchange at the official exchange rate for permissible transactions through its daily auctions (allocations), establishing a peg. However, because certain transactions are excluded from access to the CBI auctions, many transactions take place at parallel market exchange rates. The CBI publishes the daily volume of the auction allocation on its website.
Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1
1 The authorities have imposed a requirement that, to access the CBI foreign exchange window, a purchaser must have at least one bank account that has been opened for a minimum of six months. This requirement does not apply for access to foreign exchange from other sources, including purchases of foreign exchange from commercial banks’ own resources. Staff will monitor the implementation of this requirement to ascertain whether any undue burdens on access to foreign exchange for current international transactions emerge from its application in practice.

The MCP arises from the lack of a mechanism to ensure that the exchange rate at the CBI foreign exchange window and the market rates (retail exchange rates of commercial banks and exchange bureaus for the sale of foreign currency from sources other than the CBI foreign exchange window) do not deviate from each other by more than 2 percent.
A previously identified exchange restriction arising from an Iraqi balance owed to Jordan under an inoperative bilateral payment agreement has been eliminated.
 

Go RV

Go $1:1

 

 

11 minutes ago, slb said:

Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1

 

??????

 

2 minutes ago, ChuckFinley said:

Take a look on page 74 or so, talks MCP

 

Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no 
longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, 
Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval 
under Article VIII, Section 3.1
 1 The authorities have imposed a requirement that, to access the CBI foreign exchange window, a purchaser must

See we are all looking at the same info asking the same question. 

[slb]

There a sneaky bunch of so and so's....

[fancy]

10 minutes ago, ChuckFinley said:

 

 

See we are all looking at the same info asking the same question. 

***ADAM***!!!!!!

[ChuckFinley]

2 minutes ago, fancy said:

***ADAM***!!!!!!

I bet he has comb this over and is keeping an eye on events next week. I would be interested if he is still on Standby. 

[10 YEARS LATER]

GREAT GOOGLY MOOGLY ! 85 pages . . . I gotta brush up on my Evelyn Woodhead " Sped " Reading if'n I'm gonna tackle this tonight. 

 

Thanks to Laid Back and to all for your opinions, questions queries, hunches and such.

 

10YL+6&

[DinarThug]

Laid Back

• Om sai Ram
• 

 

4 hours ago, 10 YEARS LATER said:

GREAT GOOGLY MOOGLY ! 85 pages . . . 

 

After Reading 85 Pages Of An IMF Report - How Else Would U Think That He Wound Up Completely Comatose In A Hammock ?  

 

     

[dinarham]

What's worse than english legalize , where legal language cannot be understood by most people  , where it takes 5000 freakin' pages to say what could be said  in 5 pages and understood by all ?  Iraqi legalize , what with their "watermellons " and all .

[ScaryMary]

Thank you ChuckFinley and LaidBack for reading ALL of these pages.  My brother loves to read these type of articles also and shares the info with me.   I try to read these but I get extremely lost after a few minutes and don’t quite understand what I’m reading.  God Bless you for taking the time to read and share what you learn with me. 😎🤩

[yota691]

IMF: Reconstruction in liberated cities is slow

 

Part of a previous meeting of the Executive Board of the International Monetary Fund. "Internet"

Emaar Construction Economy News Baghdad The International Monetary Fund (IMF) said that reconstruction in Iraqi cities liberated from Da'ash is proceeding at a slow pace. The IMF said in a press release after the conclusion of the Executive Council Article IV consultations for 2019 with Iraq and viewed by the "economy News", the non-oil GDP rose by 0.8% year on year in 2018, referring to "weak implementation of reconstruction And other public investments. " The IMF stressed that "the gross domestic product (GDP) shrank by about 0.6 percent with the reduction of oil production under the OPEC + agreement," and predicted that "the budget will return to a deficit of 4% of GDP in 2019." Growth in non-oil GDP is also expected to reach 5.5% in 2019, but will decline again in the medium term. The IMF warned of two things: "the main danger to the prospects of falling oil prices, which could reduce exports and reduce budget revenues, and thus lead to a sharper decline in reserves or a sharper rise in public debt" and "risks stemming from tensions And the possibility of social unrest in the context of weak public services and lack of progress in the fight against corruption. The IMF stressed that the Iraqi authorities should "seize the opportunity to improve the security situation and increase oil prices to implement structural policies and reforms aimed at ensuring macroeconomic and financial stability, addressing long-standing social problems and promoting sustainable and inclusive growth." Views 42   Date Added 07/27/2019

[nannab]

Good morning Yota and DV   

[yota691]

 

Iraqi foreign exchange reserves rise to 65 billion dollars

Economie

13:43

Last updated

01:48 PM

186

Watch

0

 

 

BAGHDAD /

 

 

The International Monetary Fund (IMF) said on Saturday that Iraq's foreign reserves rose to 65 billion dollars as a result of the surplus in public finances.

 

The International Monetary Fund said in a press release received by Al-Ghad Press, a copy of it, after the conclusion of the Executive Council Article IV consultations for 2019 with Iraq, "the total international reserves of 65 billion US dollars by the end of 2018," noting that "the rise due to the recovery of oil prices Reduce weaknesses in the Iraqi economy and create safety margins in public finances. "

 

The International Monetary Fund predicted that foreign reserves would fall below adequate levels as a result of the decline in public finances after a 27 percent increase in spending and weak revenues due to the cancellation of non-oil taxes.

 

On the other hand, a source in the Ministry of Finance, "The reserve was refreshed when Dr. Sinan al-Shabibi governor of the Central Bank in 2010 and reserves of 78 billion to it fell and collapsed after the departure of Shabibi and because of the auction of uncontrolled currency and non-fundamental approvals for the establishment of private banks And outlets selling currency undisciplined and legal irregularities even collapsed to 58 billion in a manner. "

[DWS112]

1 hour ago, yota691 said:

The IMF stressed that the Iraqi authorities should "seize the opportunity to improve the security situation and increase oil prices to implement structural policies and reforms aimed at ensuring macroeconomic and financial stability

1. IMF Staff Completes 2019 Article IV Mission on Iraq, (came out yesterday)!
2. TUESDAY WILL BE HOSTED MINISTERS OF FINANCE AND OIL WITHIN THE PARLIAMENT (HCL)
3. Islamic New Year this coming Thursday! (add Fri & Sat for 3 day weekend)

4. Add some luck 🍀

Could happen?

 

[blueskyline]

38 minutes ago, DWS112 said:

1. IMF Staff Completes 2019 Article IV Mission on Iraq, (came out yesterday)!
2. TUESDAY WILL BE HOSTED MINISTERS OF FINANCE AND OIL WITHIN THE PARLIAMENT (HCL)
3. Islamic New Year this coming Thursday! (add Fri & Sat for 3 day weekend)

4. Add some luck 🍀

Could happen?

 

Thank You DWS112....I keep thinking about the Iraq National Bank  cash management centers . 14 of them.  With VIP lounges for Distinguished customers to watch cash counting of a undistinguished low value currency on screens . And to withdraw large amounts of cash Thursday to Saturday.  And the new travel cards . Why make those announcements now ? 

[DWS112]

1 hour ago, blueskyline said:

Why make those announcements now ?

I agree blueskyline,

The CBI post about circulation and replacement of banknotes and counting mechanisms!

The IMF, "seize the opportunity".

[yota691]

International Monetary Fund Reveals High Iraqi Foreign Exchange Reserves

By AhadNA3  Articles 27/07/2019 02:20 PM | Number of readings:

 

International Monetary Fund Reveals High Iraqi Foreign Exchange Reserves
The International Monetary Fund (IMF) said on Saturday that Iraq's foreign reserves rose to 65 billion dollars as a result of the surplus in public finances.

The International Monetary Fund said in a press release received "Covenant News" a copy of it , after the conclusion of the Executive Board Article IV consultations in 2019 with Iraq 's "total international reserves reached US $ 65 billion in the end of 2018.

 He pointed out that "the rise due to the recovery of oil prices and reduce the weaknesses in the Iraqi economy and the formation of margins of safety in public finances."

The International Monetary Fund predicted that foreign reserves would fall below adequate levels as a result of the decline in public finances after a 27 percent increase in spending and weak revenues due to the cancellation of non-oil taxes.

 On the other hand, a source in the Ministry of Finance,   "The reserve was refreshed when Dr. Sinan al-Shabibi governor of the Central Bank in 2010 and reserves of 78 billion to it fell and collapsed after the departure of Shabibi and because of the auction of uncontrolled currency and non-fundamental approvals for the establishment of private banks And outlets selling currency undisciplined and legal violations

[6ly410]

Fiscal reforms essential to rebuild Iraq and improve economic growth, IMF says

The country must implement policy and structural changes to ensure macroeconomic stability and promote sustainable growth

 

 

 

https://www.thenational.ae/business/economy/fiscal-reforms-essential-to-rebuild-iraq-and-improve-economic-growth-imf-says-1.891433

 

Recovering oil prices and improved security have helped Iraq strengthen its economy but it needs to implement reforms aimed at ensuring macroeconomic stability and mitigating risks from oil price volatility, according to the International Monetary Fund.

The near-term vulnerabilities in Iraq have eased with a large fiscal surplus in 2018 but post-war reconstruction and economic recovery has been slow while a fall in oil prices would pose a major risk to the outlook, the IMF said in a report on Friday.

Iraqi authorities should "seize the opportunity presented by the improved security situation and higher oil prices to implement policies and structural reforms aimed at ensuring macroeconomic and financial stability, tackling long-standing social problems and promoting sustainable and inclusive growth," the IMF executive board concluded after a consultation with the Iraqi government.

Iraq faces "daunting" challenges after its war with ISIS: social conditions remain harsh following the conflict, with slow progress on rebuilding, weak public services and a lack of job opportunities, the IMF said. Given highly volatile oil prices, Iraq faces risk from a drop in crude prices, which would lower exports and revenues, leading to sharper declines in central bank reserves or higher public debt. In addition, geopolitical tensions and lack of progress in curbing corruption could pose further risk.

The Washington-based lender urged Iraqi authorities to adopt a fiscal policy that scales up public investment while gradually building buffers, as part of wider reforms to better manage oil revenues and protect from oil price shocks. To do this, the IMF recommended phased measures to lower current spending and boost non-oil revenue.

Tighter spending would mean containing public-sector wages and lowering subsidies to the electricity sector. A review of social spending must ensure that the country's poorest are protected during these reforms, the fund said.

Iraqi President Barham Salih in February ratified the country’s $111.8 billion (Dh410.64bn) budget for 2019, its largest-ever with a 27 per cent increase over 2018. The bill calls for a rise in spending of $24bn and a deficit of $22.6bn during the year.

The IMF emphasised the need to strengthen public financial management to ensure government spending is monitored and to reduce vulnerabilities to corruption.

An overhaul of the banking sector is also needed to maintain financial stability, the IMF said. This can be done by restructuring state-owned banks and improving their supervision. Increasing access to funds, particularly for small-and-medium enterprises, can also help improve employment.

Building public institutions and enhancing governance is "key" for success, the fund added.

"Directors also recommended strengthening Public Investment Management framework to ensure that spending is well directed and that donor funds targeting reconstruction are put to the most efficient use," according to the report.

To combat corruption, a "multi-pronged strategy" is required for strengthening the legal framework, developing national anti-corruption policies and fostering closer co-ordination between the involved agencies, the lender said.

"In the absence of policy changes, a widening budget deficit will divert resources away from essential investment to rebuild the country and improve public services, while eroding reserves and posing risks to medium-term sustainability," the IMF said.

Updated: July 27, 2019 05:02 PM

Edited July 27, 2019 by 6ly410

[Floridian]

17 hours ago, Laid Back said:

 Some information I got from the report, I’m going to continue reading 

Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1

 

 

 

I think this means that Iraq is no longer under Article XIV and the IMF will approve the one multiple currency practice Iraq still has left.  It sounds like Iraq can accept Article VIII whenever they want to.

[Laid Back]

12 hours ago, DinarThug said:

Laid Back

• Om sai Ram
• 

 

 

After Reading 85 Pages Of An IMF Report - How Else Would U Think That He Wound Up Completely Comatose In A Hammock ?  

 

     

You are right DT🤡, that was a long read.... back to my hammock... enjoy the weekend 

 

3 minutes ago, Floridian said:

 

I think this means that Iraq is no longer under Article XIV and the IMF will approve the one multiple currency practice Iraq still has left.  It sounds like Iraq can accept Article VIII whenever they want to.

Floridian, that was my first thought too. 👍🏼😊

Go RV sooner than later 

Go $1:1

[Miamiheatnic]

RV time ?

[Half Crazy Runner]

4 hours ago, DWS112 said:

1. IMF Staff Completes 2019 Article IV Mission on Iraq, (came out yesterday)!
2. TUESDAY WILL BE HOSTED MINISTERS OF FINANCE AND OIL WITHIN THE PARLIAMENT (HCL)
3. Islamic New Year this coming Thursday! (add Fri & Sat for 3 day weekend)

4. Add some luck 🍀

Could happen?

 

 

I really like the way you’re thinking here DWS112!   

[miquel]

4 hours ago, DWS112 said:

1. IMF Staff Completes 2019 Article IV Mission on Iraq, (came out yesterday)!
2. TUESDAY WILL BE HOSTED MINISTERS OF FINANCE AND OIL WITHIN THE PARLIAMENT (HCL)
3. Islamic New Year this coming Thursday! (add Fri & Sat for 3 day weekend)

4. Add some luck 🍀

Could happen?

 

Wish you were right but i believe Islamic new year is September 1 this year. Still no time like the present to RV !!