Justifications For Changing The "Iraqi Dinar" Exchange Rate

[DinarThug]

Financial inclusion and the electronic horizon

Saturday 10 October 2020

 

Baghdad: Mustafa Al-Hashemi

 

 

Specialists in financial and economic affairs called on banks contributing to salary resettlement, to expedite the implementation of financial inclusion measures, especially after resettlement of the salaries of employees of ministries and departments with their permanent owners and contracts. Financial inclusion, an economic term that means the introduction or merging of groups, which are called financially marginalized or with low financial income, who are not allowed to engage in the operations of the banking system, by dealing with the banking system through the digital work system using mobile phones, meaning the completion of all financial transactions. Electronically.

Loans and advances

 

The specialist in financial affairs, Nawras Hassan, called those in charge of the salary settlement file to “pay attention to the segment of contract employees, especially those with long years of service, because there are banks that refrain from granting loans and advances to contract employees despite having their salaries localized to them, which is inconsistent with the steps to achieve financial inclusion announced by the bank. Central ».

He added, “Contract employees are still seen as second-class employees, while financial inclusion is equal to all classes of employees, as long as their salaries are based in banks, so the principle of Emiratisation must be one and apply to all employees in terms of their inclusion in advances and loans. Without distinction ».

 

Address the discrepancy

 

In turn, the economic researcher, Aya Adel, endorsed the necessity to "urgently address this contradiction, since the Central Bank's instructions directed to banks (government and private) do not stipulate the comparison between one employee and another as long as they have localized their salaries at those banks." In Iraq - according to the central - ».

Adel stated that "the efforts of the Central Bank to achieve financial inclusion appeared in the last two years," adding that "the jurisprudence of some banks' administrations prevented the achievement of justice in this aspect, especially between contract employees and permanent owners." 

And it included them with loans and advances of various amounts ».

 

Unifying vision

 

For his part, the academic and economist Dr. Majid Al-Baidani said, "The banks operating in Iraq and contributing to the salary localization project should unify their vision of the concept of financial inclusion, especially for employees whose salaries are domiciled."

He believed that «the current stage requires the openness of all banks to exercise their role in society, especially by facilitating the granting of advances and loans to all employees whose salaries are settled at those banks».

He pointed out that «government banks own a lot of deposits that have not been invested in the right way in order to benefit the employee and contribute to improving his financial situation, especially contract employees whose salaries have settled in government and private banks».

link

[DinarThug]

Aim for catering

Saturday 10 October 2020

Thamer Al Himas 

 

An annual proposed program is proposed for cashing the ration card, then it disappears. Four and a half billion dinars, which are allocated for ration as a cash allowance, needs a legislative decision, as more than half of it goes to the logistics of providing it, such as transportation, storage, and others.

The announcement of the Ministry of Agriculture to provide rice, wheat, oil and sugar as a national product, dropping the argument by manipulating merchants, and reducing the costs of providing the ration card items because they did not pay for the ration card in hard currency,and the costs of transportation and storage will be lower, which strengthens and meets the latent desire of the Iraqi to be proud of the national product. 

We cannot fail to see that the logistical costs at import are more than at the local supply, and then the cash allowance will become prevalent on the current method, with its increase that will push to maximize the role of the national product in providing the ration items, noting that the cost of delivering its items equals more than the cost of the material itself, being It will be divided between the administrative costs of employees, porters, storage, or the agent's share, damage and other unforeseen costs.

All these costs in the case of the cash allowance will be transferred directly to the holder of the smart card who receives the money from the port, after removing the costs of import, distribution and storage. 

As for the multiplier of the process, we will have a stable market for the four paragraphs, and the cultivation of rice, wheat, sugar cane, beets, corn farms, cotton seeds, sesame and olives will flourish, so that we have a real integration between trade, industry and agriculture to form the cornerstone of a broader integration without which agriculture and industry will not flourish as long as trade leads the macro and microeconomic. 

The card will be more than its current cost after deleting the logistics component and the rest of the costs, as it will pass through the Ministry of Commerce, i.e. from the finance to the exchange directly.

But how do we determine the actual receivable set by the United Nations for those whose income is less than ten dollars a day? Of course, this is firstly the matter of the Ministry of Planning and the Ministry of Labor and Social Affairs, whose care affiliates will be the first to rise for needy families, homes for the elderly and people with disabilities.

We hope from the Ministry of Commerce to protect the national product by not granting import licenses for similar or competitive goods and materials, and by withholding import of trivial consumer products so that they are not lost, but rather they are merely stimulating consumer trends that will fall victim to our new consumer from the absolute and relative poor.

LINK

[DinarThug]

LINK

Learn about the terms of the economic reform paper that the Ministry of Finance will release soon

 

 

10th October, 2020

Professor of Economics at Basra University, Nabil Al-Marsoumi, revealed some of the articles of the economic reform paper called the "White Paper", which the Finance Ministry is working on to reform the economy

Al-Marsoumi said, "As I expected in previous publications that the government reform paper will not deviate from the framework of the International Monetary Fund's policies and austerity measures with high social costs. This can be seen by looking at some of what was mentioned in the reform paper that the government called white, as follows

1- Reducing the wage and salary bill from 25% of GDP to 12.5% within three years

2- Reforming the retirement fund so that it is not linked to the budget, and retirement salaries are paid directly from the fund

3- Reducing financial support for state-owned companies by 30% every year for a period of three years

4- Reducing total government support from 13% of GDP to 5% within three years

5- Restructuring the public salary scale by stopping new employment and replacement operations in the public sector

6- Setting a ceiling for employees’ salaries to achieve justice and reduce differences

7- Applying income tax to employee allowances, incentives, bonuses, etc

8- Reviewing fuel subsidies for state-owned oil companies, and the proceeds from the sale of black oil must be returned to the state treasury

9- Issuing national bonds and instruments and offering them for public circulation in the Iraq Stock Exchange

10- Studying the current exchange rate of the dollar against the dinar and taking into consideration the requirements of financial and monetary stability and achieving the competitiveness of the Iraqi economy

11- Restructuring the state-owned public companies and converting them into private companies

12- Correcting the defect in the ration card system to ensure the protection of people with limited income and withholding it from families whose income exceeds a certain ceiling

13- Ensure that all workers in the public, private, mixed and cooperative sectors are included in retirement benefits

14- Completing the Social Insurance Law in order to be a substitute for the unified retirement, retirement and social security laws for workers

[GreedyDinar07]

Thanks Saradise. I will look on ebay and see what I can find.

[dinarham]

An early positive and neccessary indication of an rv is that supply is not meeting demand for IQD .

[DinarThug]

Leaked details of the "white paper": huge "austerity" measures that may fluctuate the country's financial situation, citizens and goods

2020-10-10

 

 

Yes Iraq: Baghdad

 

The expert and professor of economics at Basra University, Nabil Al-Marsoumi, revealed a package of reform measures and proposals included in the government white paper that is supposed to be sent to Parliament to remedy the economic situation in the country and to be applied over a period of 3 years.

 

According to Al-Marsoumi, who said that he obtained a copy of the white paper, "the government reform paper did not deviate from the framework of the IMF's policies and austerity measures with high social costs. This can be seen by looking at some of what was mentioned in the reform paper that the government called white."

 

And that the paper included "reducing the wage bill and salaries from 25% of GDP to 12.5% within three years, and reforming the pension fund so that it is not linked to the budget and pension salaries are paid directly from the fund."

In addition to “reducing financial support for state-owned companies by 30% every year for three years, reducing total government support from 13% of GDP to 5% within three years, and restructuring the general salary scale by stopping new employment and replacement operations in the sector. General, setting a ceiling for employees ’salaries in a way that achieves fairness and reduces differences, and applying income tax to employee allocations, incentives, bonuses, and others.

 

The paper also included “reviewing fuel subsidies for state-owned oil companies, and the proceeds of selling black oil should return to the state treasury, issuing national bonds and instruments and offering them for public circulation in the Iraq Stock Exchange, as well as studying the current exchange rate of the dollar against the dinar and taking into account the requirements of financial stability. And monetary and competitive advantage of the Iraqi economy ”.

 

The paper also dealt with "restructuring the state-owned public companies and converting them into private companies, and fixing the defect in the ration card system to ensure the protection of people with limited income and withholding them from families whose income exceeds a certain ceiling."

In addition to "ensuring the inclusion of all workers in the public, private, mixed and cooperative sector with retirement benefits, and completing the Social Insurance Law in order to be a substitute for the unified retirement, retirement and social security laws for workers."

 

Diagnosing the causes of "economic ruin" ... Corruption is not among them!

Al-Marsoumi indicated that the first part of the white paper dealt with determining the background of the economic problem in Iraq, but it did not mention corruption among them.

 

The white paper summarized the backgrounds of the economic problem in Iraq, by “expanding the state’s role in the economy and society, especially the salaries of employees and retirees, which grew by 400% during the period 2004-2020, at the expense of spending on infrastructure and building fixed capital in the country. This situation led to a private sector. Decaying and a labor market that tends towards public employment and continuing to be overly dependent on oil revenues.

In addition to “the rentier role of the state: the rentier expansion of the state has distorted the economy and society, especially in the sectors of water, electricity, and the ration card. Its members, regardless of per capita income, added much greater economic costs than direct costs, which are estimated at 2.4 trillion dinars annually. The state’s almost complete ownership of the water and electricity sectors and its excessive influence on inputs and outputs, including setting prices and providing subsidies, imposes huge burdens on the government to finance these services without recovering their costs. Electricity subsidies alone cost 10 trillion dinars annually.

 

It also identified “the population pressures resulting from the high population growth rate that will raise the population of Iraq to 5 million in 2030, and the increase in the number of those under the age of 30 years to about 66%, which will lead to major additions in the workforce, where about 5 million will enter. Person to the job market during 2020-2030 ”.

 

In addition to “the Corona pandemic and the collapse of oil prices, which led to salary expenditures for employees and retirees accounting for 122% of Iraqi oil revenues in 2020. This situation led to a widening of the budget deficit and an increase in government debt.

 

In the fifth point came, "the weakness of financial institutions in Iraq represented by the absence of policies and regulations for revenue management, as well as relying on paperwork in the budget calculation process." In addition to Iraq’s lack of an integrated financial information management system that connects electronically between all government spending units, in addition to the unified treasury account that combines all government accounts in one treasury account, and this means the government’s lack of control over all data and information related to its various financial sources and cash balances. ”

 

Al-Marsoumi wondered why corruption was not mentioned as one of the backgrounds behind the economic problems, indicating that “although the paper was correct in determining the general background of the economic problem in Iraq, it neglected the most important economic problems that prevent the development of the Iraqi economy, which is represented by corruption, which is what it expresses. Iraq ranked late in the Corruption Perceptions Index, as it is ranked 168 out of 180 countries.

"Corruption is one of the most important problems of sustainable development," he added. Corruption undermines public confidence in the government and private companies, causes injustice, reduces the efficiency of different operations, impedes the ability to retain high-quality employees, impedes the attraction of investments, causes waste of resources and funds, and the widespread corruption in Iraq affects delaying development, distorting the economic structure and wasting The minister says that there is an unequal distribution of the benefits of development in an unequal manner. A missing dollar in Iraq is sufficient to build several countries. Nevertheless, we did not find the word corruption in the white paper, and then the paper did not include any serious treatments to confront corruption and recover money from the corrupt.

link

[3n1]

30 minutes ago, DinarThug said:

studying the current exchange rate of the dollar against the dinar and taking into account the requirements of financial stability. And monetary and competitive advantage of the Iraqi economy ”.

 

shabibi studied it from 2003 - 2012 ....................  time to implement 

[DinarThug]

Finance Minister: We will present the white paper for reform to the cabinet next Tuesday
 

 

 

10/10/2020 12:48:03 PM  

 

 

Baghdad / Al-Masalla: The Minister of Finance, Ali Abdul Amir Allawi, revealed, on Saturday, October 10, 2020, the date for submitting the reform paper to the Council of Ministers and its contents.

Allawi said in a statement followed by the obelisk: "We will present the white paper for economic reform to the cabinet next Tuesday."  

He added, "The paper includes a diagnosis of the origin of economic problems and treatments that will be difficult, but there is no alternative to them." 

"We have a problem in providing salaries for the remaining months of the year without voting on the borrowing law," Allawi said, pointing out, "We will deal with increasing the interest rate on bank loans by reducing it."

LINK

[King Bean]

The REAL reason @pitcher became, well, a pitcher. LOL.  

 

              

[MyLadiesDaddy]

Yeah, here's another reason to change the rate. 

 

Iraq is running out of money. With a burgeoning debt load, authorities are making a last-ditch attempt to finance the state’s payment obligations by passing the second emergency finance bill of the year. The proposed law is supposed to act as a stop-gap measure after the government withdrew the draft 2020 budget from Parliament. Without new legislation, the government cannot borrow to pay its bills. Federal public sector workers have only just started to receive their September paychecks, and further delays will likely spark greater outrage, especially as October marks the first anniversary of the outbreak of anti-government protests across southern Iraq and Baghdad. Funds for salaries for Kurdistan Regional Government (KRG) employees come from federal coffers, and without budget transfers, they are also going without pay. Read the full story on Iraq Oil Report.

[screwball]

4 hours ago, DinarThug said:

Leaked details of the "white paper": huge "austerity" measures that may fluctuate the country's financial situation, citizens and goods

Austerity measure with a country that has no money and is in debt rate adjustment will be required to curb rise in inflation 

[DinarThug]

On 10/9/2020 at 11:57 AM, dinarham said:

Rv time when the auctions go away.

 

On 10/9/2020 at 3:02 PM, KDuesing said:

They just dropped 90 banks out of the auction.

 

 

     

 

LINK

Specialized .. Private Banks Are All Shops, And Any Classification Of Them Is Useless

 

10th October, 2020

The specialist in economic affairs, Dergham Muhammad Ali, said that if the classification of Iraqi banks were objective, he would have finished all of their work and restructured them, indicating that the classification gives the impression that the currency auction is a gain for banks only and not to support the Iraqi economy.

And Muhammad Ali said in a special statement to Al-Mustaqilla, that Iraqi private banks are banking shops that buy and sell dollars in remittances and cash and live on the exchange rate difference and do not provide anything tangible to the Iraqi economy. He stressed that the banking services provided by private banks are currently poor and limited and not directed to development programs.

Indicating that the classification of banks according to the standards of the Central Bank does not give them sobriety, but only to redistribute the shares of illegal gains from the auction of the Central Bank.

Pointing out that the classification gives a message that the auction is unprofessional and is a profit and reward for the banks and not for the sake of supporting the country's economy.

[DinarThug]

LINK

Secrets And Motives Of The Central Bank's Decision "The Auction Share According To The Bank’s Assessment"

 

 

10th October, 2020
 

In the first quick step taken by the new Central Bank Governor, Mustafa Ghaleb Makhaif, and in the first week of assuming his duties, a meeting of the Board of Directors of the Central Bank is held to take a decision to review the banks’ valuations and distribute the currency auction shares for the dollar according to the new assessment.

And the news from the banking community indicates that this step provoked a lot of confusion, complaints and appeals against the central bank’s assessments, and this is a step that the new governor is well aware of as he is an official in the central bank and participated in these evaluations previously, and he and others received what he and others suffered from confusion. It will cause many problems for him and the Central Bank because of the difficulty in achieving 100% justice.

But nevertheless, the new governor and part of the deal taking over the position, which four or five banks contributed to, four of which belong to one owner, and the fifth bank belongs to another name, given that the two names of the two persons (the owners of the five banks) finance one political party and it is the one who pressured this person to accept this position, Accordingly, the first step that the governor must make compulsorily (part of the setup deal for the site) is to manipulate the banks’ valuations and link them to the auction share, thus taking advantage of the price difference and the quantities granted to these banks in this circumstance (for that evaluation will last only three months).

The new governor devises a tricky plan

 

The cunning plan pursued by this group (the new governor with the owners of these four or five banks), according to a source close to these parties, and for the sake of camouflage, is to distribute these four or five banks to the first categories so that he made the new evaluation, which was issued on Sunday, the fourth of October ( The evaluation was decided by one week, while the previous evaluations took months for the need for justice and due diligence). In general, the new evaluation made one of the banks (the Middle East of its owner, “ Ali Ghulam,” a friend of the new governor from 2012 and financed the installation deal for the governor with one of the parties) in category A Two other banks have a weak auction activity, with an auction share of 100% ؜ of the demand, and thus this bank will have the largest seller in the A share due to the weak activity of those in the same category in the auction, then the new governor placed the other banks Al-Qibli, Al-Ansari and Al-Qatas (to their owner " Ali Ghulam" Also) in Class B which guarantees 75% of the auction.

A simple analysis and daily figures for the auction share of these four banks gives a large result for the volume of daily profits in light of the difference in the official price and the market price for the dollar.

 

Pay off the installation deal

 

The evidence that the new evaluation is for an illegal purpose and to get quick profits to pay off the installation deal is the evaluation period of only three months, as if it is only to achieve certain profits and for a certain category and quickly. By making the space for diligence greater in order to achieve the purpose for which it was established ....

Bankers in Iraq are well aware of the game and regret this outrageous way that matters of a respectable institution such as the Central Bank have come to pass and warn of the impact of this on the banking system as a whole and selective dealings, as they put this dangerous information in front of decision-makers (Mr. They ask them to investigate and investigate this dangerous manipulation by the Central Bank Authority in these difficult days in which our country and our citizens live in a stifling economic crisis, while unfortunately there are suspicious agreements with which official bodies such as the governor of the Central Bank and corrupt parties and personalities contribute to the purpose of obtaining non-profit Legitimate and future political change equations.

* The article was reported through the agency's communication media, and after investigating its content from more than one source, and the importance of what was mentioned in it, it was published ...

[DinarThug]

LINK

IBBC welcomes Iraq's European Bank for Reconstruction & Development Membership

 

10th October, 2020

Joining the European Bank for Reconstruction and Development (EBRD) is great news for Iraq.

The IBBC welcomes EBRD membership on a number of levels as Iraq will both benefit from joining an organisation mandated to develop open and sustainable market economies in countries committed to, and applying, democratic principles.

Iraq will also have a voice in the governance of an organisation that has invested more than EUR 7.8 billion in Iraq's neighboring countries and region, and this sends a strong message of confidence in the current political economy and future of the private sector in Iraq.

IBBC has lobbied strongly for EBRD membership for all these reasons, but principally for the commitment to development of the private sector in Iraq, that will be underpinned by EBRD membership and the hopes for reforming the business and investment climate.

In its white paper 'Iraq 2020: A country at a crossroads' IBBC Advisory Committee made a number of recommendations for reform, including joining EBRD and facilitating ease of business in Iraq. Shwan Aziz Former Chief of Staff of Iraqi DPM Economic Affairs and member of IBBC Advisory Board comments 'many people have been lobbying for Iraq to join the EBRD, and first among them was IBBC, most recently through its white paper recommendations.  It's important that Iraq not only gains access to additional private sector investment through this membership, but that the Government of Iraq also makes the necessary reforms,  to make it easier for foreign and national investors to invest, through facilitating visas, residency, easier banking and the processes that enables investors and business to flourish'. Iraq is under-going a transition to a market based economy and it will take time and education to bring the private sector in as a full partner to development, but membership of EBRD is a great step forward in the process.'

Christophe Michels, IBBC MD goes on to say 'should Iraq become a Recipient Country of the EBRD (which is a process distinct from applying for membership per se), the Bank would draft a tailored Country Strategy to determine how best to utilise the Bank's tools to support the development of Iraq's economy, based on needs identified through its assessment of Iraq's political and economic situation. In the region, the EBRD has been especially active in the energy and infrastructure sectors and dedicated to promoting policy dialogue and making economies more competitive, resilient, and green. As the EBRD has a unique mandate focussed on the private sector, it has also been expanding advisory services for SMEs in the region, and advocating corporate governance improvements and commercialisation. Furthermore, Inclusion, women's economic empowerment, and improving access to finance are a key focus of many of the Bank's projects. The point is that EBRD can provide significant finance to private sector projects. In Egypt, for example, they have a current folio of projects worth E4.5bn .'

EBRD release also states 'As a shareholder, Iraq could subsequently make an application to change its status to recipient country, benefiting from the EBRD's finance and policy support. This request would be addressed by shareholders in a separate process.

The current geographical remit of the EBRD's southern and eastern Mediterranean region does not include Iraq. The resolution adopted by the Bank's Board of Governors today "confirms the EBRD's interest in a limited and incremental expansion to sub-Saharan Africa and Iraq during the next strategy period 2021-2025." Governors will consider an update in 2022'.

[DinarThug]

LINK

Reassurances about employee salaries for the remaining months

 

 

10th October, 2020

 

The repercussions of the employee salaries crisis are still present, despite the Ministry of Finance's announcement a few days ago that it had released state departments' dues and some of them received their dues

A member of the Parliamentary Finance Committee, Jamal Cougar, confirmed in an official statement, today, Saturday, that the government has secured salaries for the coming months

Cougar said, "Salaries will be secured for the coming months, and what happened in September of the delay will not be repeated, especially after the assurances launched by the prime minister. He added, "There are about eight million families who benefit directly from the salaries, whether they are employees, retirees, or within social care and others, such as the private sector, markets or merchants

The Ministry of Finance is supposed to complete the financing of the salaries of the remaining departments that have not been spent on Thursday, as the ministry said in a statement that it is making efforts to complete the procedures for paying the salaries of all state and governorate departments and will complete the financing of the salaries of the rest of the other departments next Sunday

Al-Rasheed and Al-Rafidain Bank confirm that they resume official working hours on holidays to complete the payment of late September salaries.  In turn, a member of the Parliamentary Finance Committee, Naji Erdis, said that the government is able to secure employees' salaries through non-oil revenues

Erdis pointed out that "Iraq has many sources of funding that can supply the state treasury, most notably the border crossings, taxes and communications, which could reach if real reforms are implemented within the framework of maximizing them to 3 trillion per month

And Erdis indicated that "non-oil revenues can be secured through which employees' salaries are in addition to oil revenues and the expert, Ahmed Ibrihi, had previously confirmed that the problem is not in salaries, as the current crisis can be managed with internal borrowing, and the central bank is helping government banks to perform this task, for the remainder of 2020 and 2021

Ibrihi suggests that 70% of the non-oil exports targeted in the investment program be from the share of the manufacturing industry, and the rest from non-oil mining (including gas and agriculture), and that we have no other choice. As for the infrastructure, there are specific proposals for its development

#############

[dinarham]

 Skuttlebutt of Iraq and Basel 3 has been going around for years . I will confess that initially I thought Basel 3 was some kind of highly advanced computer widget . Basel 3 is the latest international banking requirments and is more stringent than Basel 1 and 2 . Basel 3 mandates that all B3 banks hold more assets than debt . Emerging nations must adhere to even more stringent requirments . Iraq knows stringent , having maintained the same boring rate for years to comply with IMF requirments  

[DinarThug]

Parliamentary Finance offers new solutions to prevent the recurrence of the salary crisis and warns against borrowing

 

 

480 Policy 10/10/2020 19:13 

Baghdad Today - Follow-up

 

The head of the Parliamentary Finance Committee, Representative Haitham Al-Jubouri, confirmed, on Saturday (October 10, 2020), the difficulty of providing salaries for employees during the coming months if the government relied on borrowing, and while it proposed several steps to get out of the financial crisis, it spoke about the only solution to control the border crossings.

The official news agency quoted al-Jubouri as saying, "Iraq has rounded amounts of borrowing, so staying in this situation will make October more difficult than last September." 

Al-Jubouri stressed "the necessity to take real steps, including action by the government and investing its relations with abroad to return the million barrels that were deducted from the Iraqi quota," indicating that "a million barrels at current prices will save us approximately one and a half trillion, that is, approximately 30% of Salaries for state employees, which are not an easy amount, so the situation can be resolved through it, if the government moves for the next period.

He pointed out "the importance of taking a clear plan to increase revenues, such as activating customs, taxes, levies and fees, which are in dire need of activation." 

Regarding the border crossings, Al-Jubouri said, "The only solution to controlling customs is electronic governance, automating procedures at border crossings, and the dimensions of those who violate the law and controlling the ports, as well as deporting some clans controlling the ports, and these are the real measures." The economy will be greater for the coming months, in the absence of real reforms. "

On Saturday (October 10, 2020), a member of the Finance Committee in the House of Representatives confirmed that the government is able to secure the salaries of employees through non-oil revenues. 

In an interview with (Baghdad Today), Erdis said, "Iraq has many sources of funding that can supply the state treasury, most notably the border crossings, taxes and communications, which could reach if real reforms are implemented within the framework of maximizing them to 3 trillion per month."

He added, "Non-oil revenues can be secured by employees' salaries as well as oil revenues." 

A member of the Parliamentary Finance Committee, Representative Naji Ardis, revealed on Wednesday, October 07, 2020, the most prominent contents of the reform paper presented by the Minister of Finance, Ali Allawi, to improve the economic reality in the country. 

In an interview with (Baghdad Today), Ardis said, "The white reform paper presented by the Minister of Finance to improve the economic reality in Iraq focused on two very important aspects in order to apply it during the coming short period. The first: stopping waste in the public expenditures of the state, for example we buy "The imported Iranian gas is three times as much, then we give it to the electricity production company in the Basmaya region to sell energy to the government, electricity for three times, and this causes a great waste of public money." 

He added that "the other and important aspect of the reform paper is to maximize public revenues, whether direct tax or customs, as well as setting a new salary scale to achieve the principle of social justice, to reduce the disparity in the salaries of ministries and government institutions."

LINK

[DinarThug]

9 hours ago, dinarham said:

An early positive and neccessary indication of an rv is that supply is not meeting demand for IQD .

 

After its liquidity ran out, Al-Rafidain redeemed the payroll outlets with money  LINK

###########

 

LINK

Al-Rafidain begins disbursing financial dues to the outlets owners

 

 

 

10/10/2020 08:06:30
 

 

Al-Rafidain Bank announced, on Saturday, that it will start disbursing financial dues to owners of private outlets offices.
 

The media office of the bank said in a press statement that "the bank has begun to disburse financial dues to the owners of the outlets during the current holidays, in addition to continuing to distribute the salaries of the employees."

He pointed out that "many of the outlet owners, after running out of financial liquidity, as a result of the employees' desire to withdraw their salaries during the current holidays, they came to some of our branches to receive their money and continue to provide financial services to employees during the holidays."

 

###########

[DinarThug]

Iraq's accession to membership in the European Bank is a step to develop the banking system

Sunday 11 October 2020

Baghdad: Hussein Faleh

, experts and specialists in economic and financial affairs, believe that Iraq's accession to membership in the European Bank is an important step towards developing the Iraqi banking system, and while they emphasized the need to gain experience and transfer global technology to the Iraqi banking system, they indicated that developing the banking system is important in the process of economic development. .

A member of the Baghdad Economic Forum and an expert in financial affairs, Abdul Aziz Al-Hassoun, told Al-Sabah: “The banking system in Iraq needs to restore confidence between the citizen and the banks by strengthening security guarantees, meaning that when a citizen deposits money in a bank he can recover it, However, this has been missed recently ».

He added that «local banks need to acquire global expertise to develop the performance of their work, whether through twinning or training or advice and others», indicating that «Iraq's joining the membership of the European Bank is an important step for the development of the banking system in Iraq».

He pointed out that «the development of the banking system does not need legal legislation, but to the real will to fight corruption and reorganize through the issuance of new instructions by the Central Bank of Iraq», stressing that Iraq can use advanced European expertise in this area, in order to develop the banking system.

He continued, that the development of the banking system is important in the development process, because it will encourage investment as well as attract financial deposits.

For his part, a member of the Parliamentary Finance Committee, Representative Hanin al-Qaddo, confirmed that «the banking system in Iraq needs to develop and keep pace with global developments in the field of banking».

Al-Qadu said in a statement to Al-Sabah: “The development of the banking system is an internal matter and depends on the capabilities and staff of banks,” noting that “there are several international organizations that have provided their services in order to develop the banking system, but the existing corruption and due to the political and economic conditions prevented that". 

He added, “Many local banks do not operate with modern mechanization or the ki-card system, stressing that the development process needs a lot of work, not only with Iraq joining the European Bank.” He stressed the need for Iraq to benefit from its accession to the European Bank membership in support and development The Iraqi banking system ».

The Ministry of Foreign Affairs, had announced earlier, that Iraq had officially joined the European Bank.

A statement by the ministry stated: “The relentless efforts of the Ministry of Foreign Affairs, represented by the Embassy of the Republic of Iraq in London and the European Bank for Reconstruction and Development, expressed the approval of the members of the Board of Governors of the Bank to Iraq’s accession to the Council, during the voting process witnessed by the annual meeting of the Board of Governors held in London For the period 7-8 October ».

The ministry indicated that «Iraq’s formal accession to the bank’s membership will allow it to benefit from international banking expertise to develop the banking sector, and to obtain technical support and assistance that creates a suitable ground for investment.

link

[DinarThug]

After the central bank’s decision to assess the banks and distribute the dollar ... Economists consider it “useless” and raise doubts

 

October 10, 2020 8:38 pm |  Watch count: 196Author: alzawraapaper

 

Baghdad / Al-Zawraa:

 

 

The decision to reconsider the banks ’valuations and the distribution of the auction shares for dollars according to the new evaluation, angered many specialists in financial and economic affairs, who considered it“ useless ”, as a result of the existence of a previous evaluation, andthe fact that these classifications are local and not international, given that most of the banks In Iraq, it is small, whether with its capital or its management of banking operations, while others considered that the revaluation of banks in a short period of time raises doubts.

A professor of political economy at the Iraqi University, Abdul Rahman Al-Mashhadani, said in a press interview: “The bank had previously set standards for the classification and evaluation of banks in 2016 for a period of three years on the basis of applying international banking standards by studying the status of banks and their data to produce a classification for them, despite This did not include all banks, as a group of them was excluded, but we were surprised by the new governor of the Central Bank to take a decision to reclassify these banks within one week, which raises more than a question mark.

And Al-Mashhadani continues, "The process of re-evaluation of these banks at the present time, and according to what I received from information, is an inventory of dealing with a group of banks that have a lot of confusion."

He added that "the classification mechanism used (ie, B, C) is not clear and does not approach international classifications, and there is no disclosure in the local classification standards." However, he said: "The central bank was supposed to follow the example of global central banks by setting international standards for evaluation and classification so that banks know their place in the world, not to follow a classification of your own, which will not constitute anything on the map of global banks."

For her part, the economist, Salam Sumaisem, asked, in a press interview, to know "what are the criteria that are adopted for re-evaluation and to know exactly why the re-evaluation is done", indicating that "the evaluation in the past was done on the basis of the size of the capital, the expansion of the bank and the volume of transactions carried out by the bank." .

Sumaisem points out that "the purpose announced regarding the evaluation is to reset the issues because everyone is heading to the issue of selling the currency, and therefore the revaluation comes to consider the feasibility of the auction and the shares granted to banks", asking the bank to "ensure transparency, governance and standards that it will adopt." To re-evaluate ».

In turn, the economic expert, Dergham Muhammad Ali, sees in a press interview: "Iraq does not need this number of private banks, especially as they do not contribute to development and do not practice banking in most of them." And stresses on that «the evaluation and classification of banks, if carried out correctly, without favoritism for the party-owned banks, it is positive because the banks now live on auction only».

LINK

[DinarThug]

LINK

The central launches the electronic platform for letters of guarantee

 

 

11th October, 2020

 

The Central Bank of Iraq announced, on Sunday, the launch of the "electronic platform for letters of guarantee" as part of its reform measures to keep pace with developments in the banking industry

The central bank said in a statement received by "Al-Eqtisad News", that "within the framework of its reform measures and in keeping with developments in the automation of the banking industry, this bank announces the launch of the electronic platform for letters of guarantee, in which the letters of information will be recorded by the authorized banks

He pointed out that the platform is comprehensive "in its work, to download the letters' data by the authorized banks by accessing them and with different and specific powers, provided that the bank is responsible for the accuracy and correctness of that data

The statement emphasized: “The beneficiaries of the two sectors (public and private) are required, after issuing the letter, to adopt an electronic registration form obtained from the Central Bank, which this platform will issue, including information on those letters and has various security marks such as the thermal stamp and the (barcode) feature, without the responsibility of this bank. Any financial obligation resulting from the bank’s delay in paying the value of the letter

In the statement, the Central Bank called on the parties benefiting from letters of guarantee located inside the capital, Baghdad, to obtain the information registration form by this bank, while those outside the capital Baghdad can obtain the information registration form from the branches of the Central Bank of Iraq (Basra, Mosul, Erbil) and according to the geographical area. For each branch, and the above mechanism will be effectively implemented starting (October 18, 2020)

#################

LINK

The Central Bank launches the electronic platform for letters of guarantee
 

 

11th October, 2020

[DinarThug]

LINK

Allawi: Next year will see the implementation of income tax on employee salary allocations

 

 

11th October, 2020

 

The Minister of Finance, Ali Abdul-Amir Allawi, said that Iraq's revenues from the beginning of this month until the end of the year do not exceed 15 trillion dinars, explaining that the Ministry of Finance will implement, from next year, income tax on employee salaries allocations

Allawi added, in an interview with the Euphrates channel, which was seen by "Al-Eqtisad News", that the ruling expenditures, which are represented by retirement and foreign debt benefits that reach 50 billion dollars, and social security, oil revenues are not sufficient to meet these monthly requirements, indicating that the Ministry of Finance is looking for A way to increase non-oil revenue to finance salaries

He stressed that without cooperation between the Ministry of Finance and the Central Bank, this crisis cannot be avoided, and therefore any rupture between the two parties will harm the economy, explaining that the Iraqi reserve of foreign currency is estimated at between $ 53-55 billion, and an investor is among deposits in US bonds

He added that the white paper includes a vision of moving the Iraqi economy to the post-oil era and gives an opportunity to advance the economy, and address all the obstacles and distortions in the economic map, stressing that the reform paper clarifies the economic dilemma and the solutions put forward to treat this dilemma

And that the World Bank confirmed that Iraq is on the verge of an economic disaster, and the situation is dangerous and approved by the most important international party, explaining that the salaries of employees and retirees accounted for 20% of oil revenues, while today they constitute more than 120% of oil revenues, stressing that the salaries of retirees amount to 1.2 One trillion dinars per month. He pointed out that the productivity of the Iraqi employee is the lowest in the world, indicating that the reform paper may be implemented within a period of 10 years, and anyone with a realistic vision for managing the economy must present it

He explained that the previous government opened the doors to employment in an ill-considered and unrealistic way, and its repercussions occurred on this government, stressing that it is not permissible to employ any person under the scale of salaries and allocations. He stressed that the 2021 budget will be presented to the Council of Ministers during the month of November, and will include the rationalization of the electricity and oil sector, and the expansion of the network of direct taxes on employee salaries allocations, because salary allocations sometimes reach five times the salary. He noted that the ration card allocations amount to 5 trillion dinars, which is part of the ruling expenses and not to prejudice them

On the relationship between Baghdad and Erbil, Allawi said that the region's benefits represent 12% of the general budget, and oil exports must be under Baghdad's control

He added that the agreement between Baghdad and Erbil now is to give the region its oil and revenues from the border crossings to Baghdad, but the region has not yet provided and has reasons, explaining that Kurdistan grants oil companies 25% of the extracted oil revenues, due to participation contracts and not service contracts

He stressed that Baghdad did not grant the region funds in the sixth and seventh months of this year, because he did not send oil to Baghdad, stressing that the closure of the US embassy in Iraq will have economic repercussions on Iraq

[DinarThug]

LINK

Parliamentary Finance and the Central Bank Governor discuss the "white paper" and foreign reserves

 

 

 

10/11/2020 15:01:56

 

 

The Parliamentary Finance Committee held a meeting with the Governor of the Central Bank of Iraq, Mustafa Ghaleb, at the committee's headquarters in Parliament.

 

The committee’s reporter, Ahmed Al-Saffar, told Al-Furat News that “the committee hosted today the governor of the Central Bank to discuss the bank’s position and foreign currency cash reserves, in addition to the white paper,” indicating that the Ministry of Finance presented the Financial Living Committee’s law for the remaining months.

The Minister of Finance, Ali Allawi, announced during a meeting with the Al-Furat satellite channel, that the ministry "will present the" white paper "for economic reform to the cabinet next Tuesday.  

He added that "the paper includes a diagnosis of the origin of economic problems and remedies that will be difficult, but there is no alternative to them," declaring that "the Central Bank's foreign currency reserves amount to 52 billion dollars and Iraq will be in danger if it falls to 20 billion dollars."

[DinarThug]

LINK

Parliamentary Finance excludes raising the price of the dollar against the dinar to compensate for the decline in oil revenues

 

 

 

08:50 - 11/10/2020

 

A member of the Parliamentary Finance Committee, Jamal Cougar, ruled out the government's move to raise the exchange rate of the dollar against the dinar in order to compensate for oil losses due to low global prices, pointing out that the central bank has a study and control over exchange rates.

Cougar said to "the information", that "the government raised the exchange rate of the dollar against the dinar is unthinkable and excluded, because the central bank has a solid study in this regard."

He added that "the central bank administration does not support the proposal to raise the exchange rate of the dollar at all, and has a set of reasonable reasons and justifications to keep the exchange rate at its natural limits."

Cougar ruled out that "the government or the central bank in 2021 will choose to raise the exchange rate of the dollar against the dinar." 

#########

Parliamentary Finance Excludes Raising The Dollar’s Exchange Rate In Order To Compensate For Oil Losses  LINK

[DinarThug]

LINK

Chairman of the Board of Directors of the International Development Bank and Secretary General of the Union of Arab Banks discuss common banking issues

 

 

11th October, 2020

 

The member of the Board of Directors of the Union of Arab Banks and the Chairman of the Board of Directors of the International Development Bank, Dr. Ziyad Khalaf Abd, received at the representative office in Dubai, His Excellency Professor Wissam Hassan Fattouh, Secretary-General of the Union of Arab Banks on an official visit that dealt with the discussion of common banking issues on the scene and the efforts of the International Development Bank to move forward with an investigation His strategic plans and continuing to apply international standards, in addition to discussing the negative repercussions on banks as a result of the turmoil in banks in general due to the spread of the Corona epidemic

 The two sides also affirmed their keenness to continue strengthening partnerships between banks and financial technology companies, supporting digital transformation and facilitating access to financial services provided and continuing to devote these partnerships with international financial institutions

At the end of the meeting, Mr. Fattouh expressed his happiness with this meeting and his keenness to repeat it to perpetuate the brotherly and professional relations between the International Development Bank and the Union