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Central Bank Governor: We Have Started Implementing The Banking Sector Reform Plan !


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CNN. Broadcasting From Comedy Central While Advising The Central Bank !
 

 

 

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Central Bank Governor: We Have Started Implementing The Banking Sector Reform Plan

 

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15th October, 2020


The Governor of the Central Bank of Iraq, Mustafa Ghaleb Mukhaif, confirmed that a few days ago, he presented a vision to reform the reality of the country's banking sector to strengthen the financial stability system based on competition.

The governor of the bank said in a statement reported by the newspaper "Al-Sabah" and its independent newspaper today, Thursday, that "the future vision for the work of the Central Bank of Iraq is centered in light of the economic crisis through the goals that it seeks to achieve and specified under its amended Law No. 56 of 2004, the most important of which is (guarantee) Domestic price stability and the promotion of a stable financial system based on competition), to continue achieving the strategic objectives set out in the 2016-2020 plan.

The governor explains, “In order to do so, the bank recently proposed the terms of the reform paper for the banking sector, which has been initiated now, because of its importance in developing banking services and products in the next stage, and through it, the banking sector will be supported to advance its current reality. Of the specific criteria adopted by the bank and on the basis of which the operating banks were classified, ”indicating that“ this classification will be reviewed by the end of this year, and this will continue for the following semesters of the year.”

The governor of the Central Bank says: “This step comes within the framework of enhancing confidence in the banking sector and improving the quality of services provided to the public, as well as enhancing competitiveness in the Iraqi banking sector.” Their conditions and the payment of their customers' dues, ”stressing that“ this classification will be an opportunity for these banks to prove their seriousness in achieving the requirements of reform and pay the dues of depositors and shareholders owed by those banks.”

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Finance issues an explanatory statement about the "white paper" and its positive points https://alahadnews.net/123474/العراق/محليات/   Author: AhadNA3 On 10/21/2020 - 3

Hurry up, hurry up ..... HURRY THE HELL UP ALREADY !!!!   okay, I’m calm..... we’ll, not so much as I thought. Yes, I’m very impatient these days.

GOOD!

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An Expert Confirms The High Exchange Rates Of The Dollar Since The Announcement Of The Financial Crisis

 

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15th October, 2020


Economic expert Ihssan Al-Kinani explained that the dollar exchange rates began to rise since the announcement of the financial crisis, although it is an imperceptible rise, pointing out that Iraq has recorded a rise in exchange rates during the current period, which is what the government should rectify because that does not hurt the interest of the people.

Al-Kinani said in a press statement followed by Al-Independent today, Thursday, that "the announcement of the decline in the Iraqi monetary reserve of foreign currency, is nothing but a clear message to legitimize the increase in the exchange rate of the dollar against the Iraqi dinar in order to compensate for oil losses due to lower prices, as well as to overcome the fabricated financial crisis."

He added that "maximizing revenues cannot be at the expense of the people. The rise in the exchange rates of the dollar will raise with it all goods and foodstuffs, especially since the merchant exploits such variables to achieve the highest profitable gains."

"The government must not tamper with the pension of the Iraqis, or impose on them a de facto policy, because raising the price of the dollar means higher prices for cars, electrical appliances, household items, clothes and even imported food, which should be rectified by the Central Bank to ensure that the fuse of the Iraqi street is not ignited," he said. His suffering”.

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Economist: Manipulating the dollar is not in the interest of the people, and the government must search for alternative plans  LINK

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The Iraqi president warns the integrity of a "urgent" mission and calls for international cooperation to expose the corrupt

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15th August, 2020


On Thursday, the Iraqi President, Barham Salih alerted the Integrity Commission to a mission he described as "urgent", calling for international cooperation to expose the corrupt.

In a statement received by Shafaq News Agency, the Presidency of the Republic said that the President of the Republic, Barham Salih, received today, at the Peace Palace in Baghdad, the head of the Integrity Commission, Judge Alaa Jawad Hamid.

According to the statement, the President of the Republic stressed "the importance of the role the commission plays in combating corruption, and in complementarity with the rest of the relevant departments." And an essential foundation for a capable state that serves its citizens. "

Salih noted "the danger of corruption in feeding acts of violence and terrorism, weakening the role of institutions in meeting the needs of citizens, and negatively affecting investment opportunities in the country,"stressing the "importance of activating all legal and practical measures in combating corruption, and uncovering smuggled and corrupt funds through coordination with relevant countries and international community institutions, and seeking assistance from international expertise and experience in this regard."

The statement indicated that Saleh "listened to a review from Judge Alaa Jawad Hamid regarding the commission’s functioning and future plans." He stressed, "His support for all efforts that go towards achieving the goals of eradicating corruption, stopping waste of public money, and achieving transparency and integrity in state institutions."

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The President Of The Republic Affirms To Close The Outlets Of Corruption And Recover The Stolen Money  LINK

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5 minutes ago, DinarThug said:

On Thursday, the Iraqi President, Barham Salih alerted the Integrity Commission to a mission he described as "urgent", calling for international cooperation to expose the corrupt.

 

Seems like we sent them a list of their top 800+ crooks quite a while back.... :rake:

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5 minutes ago, DinarDavo said:

Seems like we sent them a list of their top 800+ crooks quite a while back.... 


I Wonder ‘Who’ Was At The Top Of The List ? :o 

 

 

And Too Bad He’s Recovering ...

 

:D  :D  :D 

 

 

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Nouri al-Maliki is recovering from Corona

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14th October, 2020


A source in the State of Law coalition stated, on Wednesday, that the head of the coalition, Nouri al-Maliki, had recovered from infection with Corona virus.

The source told Shafaq News Agency, "Al-Maliki has recovered after about four days of his injury."

On Sunday, an informed source in the Islamic Dawa Party revealed that the Secretary-General of the party, Nouri al-Maliki, was infected with the Corona virus, indicating that the health condition of al-Maliki is now stable and he is in good health.

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29 minutes ago, nannab said:

Sorry to hear that.


Maybe He’ll Get A Sudden Case Of ‘Lead’ Poisoning From A Firing Squad ! :o 

 

:D  :D  :D 

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The Ministry Of Oil Will Open The Largest Rehabilitation And Training Center In Basra

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15th October, 2020


The Ministry of Oil is preparing to open the largest rehabilitation center for training national workers in the Shuaiba oil region, west of Basra, as part of its policy in the "replacement" program to provide our oil companies with local instead of foreign workers.

Oil Minister Ihsan Abdul-Jabbar Ismail said during an interview with the independent press today, Thursday: “According to the program of the government of Prime Minister Mustafa Al-Kazemi, the plan of the Ministry of Oil (is to reduce more than 90 percent of the percentage of foreign workers, who number about 15 thousand workers currently working In the companies of secondary contractors in the
oil licensing sector)”.

The ministry’s plan is currently underway towards the national “replacement”, and the minister indicated that a “gradual” program will start with the spread of the “Covid 19” pandemic and the forcing of many foreign technical leaders to leave Iraq for their countries. A measure of training and special skills such as technicians, engineers and others like them, in an effective and rapid manner, after foreigners left a group of jobs in high positions in oil service companies and secondary contractors.

The minister warns, "The qualitative plan does not have the same effect as expected on the level of importance in the local community in relation to the size of the large demand on the labor market in the oil sector. Therefore, the other direction of the plan called (quantity) will reach solutions to the depth of the employment problem in the oil sector." 

Minister Ismail revealed preparations are taking place in the Ministry of Oil to open the largest technical and vocational rehabilitation and training center for engineering, technical and craftsmen degree holders in the Shuaiba oil region, to receive thousands of applicants for employment with the Japanese company implementing the Basra II refinery, at a cost of $ 3 billion and 750 million, indicating that Surface installations and equipment installations accommodate thousands of workers during the construction period, which extends over four years, as well as to replace some of the trainees instead of Asian workers in secondary oil services companies. Preparations are also underway to accommodate more than 7,000 job opportunities allocated to the owners of the new refinery for operational purposes after its expected completion in 2025, and it is hoped that Minister Ihssan Abdul-Jabbar will lay the foundation stone for the refinery in the coming days, indicating that the Japanese company will start its implementation work in accordance with the latest design techniques through cracking with the auxiliary factor. To refine black oil into improved gasoline derivatives and hydrogenated gas oil.

The Minister of Oil revealed that the Ministry had received large offers to invest in the oil refineries sector in four governorates: Kirkuk, Basra, Maysan and Nasiriyah, 

indicating that negotiations with the American "Chevron" company will be held between the two parties to reach a draft investment contracts for giant oil projects in some locations 

The mission, hinting that these investment projects will open wide doors for employment,

moving the national economy wheel, doubling the country's oil resources, 

and developing the daily income of the Iraqi individual.

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Reducing the value of the Iraqi dinar against the dollar .. Do I approach and what is the position of the Central Bank?

 

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1,192 Economie 2020/10/15 20:48 ht


Baghdad Today - Special 

 

A member of the Parliamentary Finance Committee, Kamal Cougar, confirmed, Thursday, October 15, 2020, that the Central Bank is concerned about the government and parliamentary approach to reducing the value of the Iraqi dinar against the dollar.

Cougar said in an interview with (Baghdad Today), "There is a governmental and parliamentary approach to reduce the value of the dinar against the dollar, but this trend has not been made a final decision on it," noting that "the Central Bank has great concerns about the step of reducing the value of the Iraqi dinar in exchange for Dollar. " 

He added that "the final decision on this issue will be decided in the draft federal budget law for the country for the year 2021," noting that "the details of this approach are not clear features regarding the price of the reduction."

The Financial Committee of the Iraqi Parliament commented, Thursday (July 2, 2020), on news that there are possible intentions to change the exchange rate of the dollar against the dinar within the anticipated financial reform law.

Committee reporter Ahmed Saffar said, in an interview with (Baghdad Today), that "until now we have not seen the financial reform bill, but there are information and leaks. We state that there is an intention to change the exchange rate of the dollar against the dinar, but we do not know its accuracy until the moment, as there is. Some MPs have approached this option, and there is parliamentary opposition to such an approach.

Al-Saffar indicated that "any decrease in the value of the dinar or the dollar will cause price inflation because it will reduce the purchasing power of the Iraqi dinar, and here the affected will be those with limited income from employees, contracts and renters," indicating that "within the monetary policy, this is the last solution to the crises."

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Member of Parliamentary Finance: The White Paper does not require a vote by Parliament


2020-10-15 | 05:37

 

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On Thursday, a member of the Parliamentary Finance Committee, Jamal Cougar, described the "white paper" announced by Prime Minister Mustafa Al-Kazemi as a "road map and strategic vision" to solve the economic crisis in Iraq, while noting that it "does not need" a vote by the House of Representatives.

And he said Cougar In an interview with Alsumaria News, "The white paper is a road map and a strategic vision to solve the economic crisis, not the immediate emergency financial crisis, as what was included in the paper is a reformist vision of the economic situation of the Iraqi state in a comprehensive manner," indicating that "this takes a long time. It could be up to three years, as the government has made itself clear. " 

He added Cougar, "The Parliamentary Finance Committee agreed to borrow and demanded a reform paper. It was clear in its demand that a paper be prepared to solve the current crisis instead of borrowing again, not as the white paper sent from the government that came to correct the economic path of the state went to him."

He continued, saying that "the white paper is not a law to be read and voted on inside the parliament, rather it is a government vision to correct the economic process and does not need comprehensive votes, but if it includes specific details, it needs legal legislation, and then comes the role of the Parliament," pointing to That "if the government wants to reduce salaries, for example, then it will need a parliamentary vote in order to amend laws in force."

 Confirmed Cougar "The Finance Committee will study the white paper and include its vision with it, in addition to seeing the political blocs and returning it to the government, and then reform remains the responsibility of the executive body, as for the parliamentary role, it is limited to monitoring, legislation, assisting the government and providing solutions to it, and it is the decision-maker with approval or rejection."

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1 hour ago, DinarThug said:


Maybe He’ll Get A Sudden Case Of ‘Lead’ Poisoning From A Firing Squad ! :o 

 

:D  :D  :D 

 

There will be no problem getting volunteer's 

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The Vision of the White Paper plus the Finance committee adding its own vision.... now I’m seeing “ Double Vision “ .... I’m going to start drinking again: my wife isn’t going to like this one bit.

Let the Visions ( hallucinations ) begin.

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The third announcement circulated by the Central Bank of Iraq to all Iraqi banks around the Arab Week for Financial Inclusion. Progress in financial inclusiveness indicators accelerated using electronic payment tools inside Iraq as it facilitates the electronic transfer of funds, which saves time and effort for everyone, and reduces the exchange of banknotes that are considered a transmission of infectious diseases and viruses.. and The Central Bank of Iraq has adopted an electronic payment strategy by cooperating with the public and private sectors to improve financial inclusiveness, which is one of the indicators of growth of the country's economy through improving and accelerating financial and economic services. The year 2020 carried out a progressive model in the region to meet the needs of bankers by developing the Iraqi monetary policy infrastructure, led by the Central Bank of Iraq. #اسبوع_الشمول_المالي #البنك_المركزي_العراقي #المصرف_العراقي_للتجارة
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Well They Finally Seem To Be Coming To Their Census ! :o 

 

:D  :D  :D 

 

 

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Minister: The population of Iraq has exceeded 40 million, and we need to conduct a new census

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15th October, 2020


Minister of Planning, Khaled Battal al-Najm stressed on Thursday the need for Iraq to conduct a population census according to the principles of a solid process to know the size of inflation in the country.

Battal said in a joint press conference held today with the Minister of Planning in the Kurdistan Region, Dara Rashid, in Erbil, that "there are estimates of the population in Iraq, and now it has exceeded 40 million and a few hundreds." "We are currently in the process of finding out the number of houses, the number of taxis, and the number of those who have not received safe drinking water," he added. Al-Najm continued, "The census is not only for the sake of knowing the number of inhabitants, but rather for the knowledge of many other aspects that have not yet been developed according to practical and correct principles.

Last August, the minister had suggested that it would not be possible to conduct a census this year in the country due to the outbreak of the Corona pandemic, in addition to financial conditions.

The Ministries of Planning in both Baghdad and the Kurdistan Region have agreed to set the current year as a date for conducting a population census that includes all regions of Iraq, while Article 140 of the Constitution drew up a roadmap for the federal government in Iraq to settle the dispute over the disputed areas and determine their fate by annexing them to the Kurdistan Region or Stay under the management of the federal government.

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If he's calling for a census, how does he already know there's 40 million ? I realize the M.E. is " magical & mystical " - do ya think they have better Crystal Balls than we do??? 

Wait, lemme rephrase that . . . oh never mind. Y'all know what I mean ( hopefully ), go ahead and have some fun with "Crystal Balls "  :lol:

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3 hours ago, horsesoldier said:

- do ya think they have better Crystal Balls than we do??? 

Wait, lemme rephrase that . . . 


Bruce Was Talking About His Crystal Balls - But He’s ‘Clearly Nuts’ ...

 

:D  :D  :D 

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15 hours ago, DinarThug said:

stressing the "importance of activating all legal and practical measures in combating corruption,

Hmmm...electronic transactions...no auction and swift system open currency market 

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Iraq’s Central Bank is at risk of losing its independence

4 hours ago
Finance Minister Ali Allawi said in a press conference following the adoption of the White Paper for Economic Reform by the Council of Ministers on October 13, "we have a solid and strong relationship with the Central Bank for the purpose of unifying monetary and financial policies, and this will provide us with the possibility to cover all the requirements and entitlements of the salaries of employees and retirees." This statement went unnoticed by all journalists, pundits and analysts. Nobody noticed the attempt of the Iraqi government to undermine the independence of the Central Bank of Iraq (CBI) to implement the financial policies approved by the government.

The objectives of the government are clear. The Central Bank has become "very cooperative" with the government's financial policy. The Bank’s law contradicts such cooperation in order to safeguard and preserve the strength of the Iraqi economy on the one hand, and not to bear any government failure in managing the financial policy on the other hand. This is a context known to successive governments, and because the central bank adopts monetary policies that are independent of the government's financial policies. We all remember the dispute that arose between the government of Nuri al-Maliki and the governor of the Central Bank, Sinan al-Shabibi, in 2012, with the former ending up accusing the latter of corruption and issuing judicial orders for his arrest while he was in the Japanese capital Tokyo on an official visit. Subsequently he was put on trial in absentia and sentenced to seven years in prison in 2014 and removed from his post.

The Role of CBI

The CBI is an institution financially and administratively independent from the government according to Article 103 of the Iraqi constitution. It is responsible for setting monetary policy, issuing and managing the national currency and foreign reserves, and setting up regulations, procedures and controls for the work of local banks in the country and monitoring and auditing their work. It is the official body that represents Iraq in the international financial and monetary institutions such as the International Monetary Fund, the World Bank, and others. Among its tasks is also determining the supply and demand for money by setting interest rates. CBI is also responsible for receiving deposits from oil sales and keeping the state’s cash reserves, and it maintains the value of the national currency. This means that the independence of the CBI from government financial policies is very important to preserve the public funds deposited within the bank.

What the Minister of Finance announced in his aforementioned statement is a dangerous precedent for inserting the CBI into the core of the government's financial policy, and making it a tool to implement this policy. This was clearly demonstrated by what was included in the White Paper of financing the budget deficit and considering CBI reserves as the only source to fill the deficit, and here lies the real danger.

The White Paper on page 37 referred to the danger of using the CBI as a source of financing, they believe it "will lead to severe pressure on the CBI’s reserves and the resulting unsustainable future consequences." This view was further confirmed by the group of experts writing the White Paper on page 42, stating that "indirect monetary financing by the CBI is the only remaining source... The need for this reserve to finance imports of goods and services means its will drop dangerously to low levels within nine months, which will ultimately lead to a real crisis in value of the Iraqi dinar, accompanied by the possibility of a collapse in its value."

It is worth mentioning that the CBI reserves are under threat from three different sources:

First: Using the CBI reserves to finance the government's fiscal deficit. This is done in two ways, the first is to "buy goods and services" using hard currency, and the second way is by “indirect borrowing” using the central bank to devalue the dinar against the dollar in order to "pay the monthly benefits from salaries."

Second: The continuation of the notorious currency auction, which is a reservoir of corruption and a source of wealth for influential people in the world of politics, money and business. The sale of hard currency in the auction exceeds state revenues in most cases, and this means withdrawal from the Bank reserves and further reducing its levels.

Third: The increasing pressure from the state’s creditors, especially Iran, to finance its economy with hard currency after the US administration listed 18 Iranian banks under sanctions on October 8. Therefore, the CBI and Iraqi banks became the only outlet for Iran for hard currency. The visit of the Governor of the Central Bank of Iran to Iraq on October 12 was for this purpose.

The Central Bank governors kept quiet regarding the government statement to clarify its position. We also did not hear from the new governor. What is his vision for managing the bank’s affairs? What is his monetary policy? How can he preserve the cash reserve? Amid the worsening current economic crisis, it is imperative for the new governor to clarify to the Iraqi people the Central Bank’s policies and its position on the crisis facing the country.

The easiest of solutions is not a solution

According to informed sources, the team of experts is still busy working on the White Paper and adding details and appendices to the road map. The team pointed out the danger of borrowing from the CBI, or using devaluation as a means to match the public budget deficit. They warned that this "will later lead to an increase in the cost of living, and thus reduce the ability of the majority of individuals to meet their requirements, as the country depends entirely on imports to meet consumption." It is clear that the majority of the people will suffer and pay the price as a result of this shift in the adopted fiscal policy.

A financial expert, who did not want to reveal his identity, confirms that "the shortest and easiest solution is to resort to the CBI reserves and move towards printing the dinar, but taking this path is not a solution, rather it is suicide." The real fear is that the government and political leadership will resort to this solution instead of starting real radical reforms, which require executive decisions issued by the government and other legislatively supported decisions by Parliament. 

The national duty here makes it imperative for all political forces and all their leaders not to stand idly by. They must actively participate in adopting practical, even if difficult, solutions that the government team will present through the White Paper and its annexes, in addition to what is presented by other experts outside this team from Parliament, economic research centers and monetary policy experts. 

Keeping the doors of corruption wide open in most state institutions, reluctance to curb the corruption of the ruling parties themselves, and not abolishing their economic offices to limit their control over ministries, institutions and vital sectors, will ensure the continued exacerbation of crises and runs risks to the current financial situation, leading the way to a real collapse in a time frame of a few months. The financial and economic collapse will be followed by the collapse of the state of Iraq, and then chaos will prevail. At that juncture no one will be able to restore and control the situation again, except by a miracle that will be difficult to come by.

Iraq is multi-cultural, multi-factional society with different loyalties, each supported by armed groups. Chaos will mean loss of control and stability, which is difficult to sustain in normal circumstances, let alone in the circumstances of bankruptcy, political strife, scarcity of resources and the loss of people's livelihood.

Iraq is staring at its last opportunity, and the political parties must take it without fail, be brave and make courageous and responsible decisions to remedy the situation, otherwise they will be witnessing the worst possible catastrophic scenarios we have ever seen.
 


Farhad Alaaldin is the Chairman of the Iraqi Advisory Council. He was the political adviser to former Iraqi President Fuad Masum, the former chief of staff to the KRG prime minister from 2009 to 2011, and former senior adviser to the KRG prime minister from 2011 to 2012.
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The Finance Minister praises the "white paper" and talks about alternatives

 

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16th October, 2020



The Iraqi Finance Minister said that there is a growing political will to make the radical reforms required for the country to address the massive liquidity crisis that has pushed Iraq to the brink of collapse.

Finance Minister Ali Allawi told the Associated Press in an interview, "There is more will now than there was five months ago. Now, I think there is recognition that unless oil prices rise miraculously, this is something we have to deal with and manage." Lower oil prices have cut revenues in the oil-exporting country by nearly half, and over-dependence on oil has limited the government's ability to obtain other income. The widening of the deficit from month to month has created uncertainty about how future payments of public wages, external debt, and basic imports of food and medicine will be paid.

It is worth noting that the unsustainable Iraqi economy, exposed by the financial pressures stimulated by plummeting oil prices and the Corona virus epidemic, is a long-term problem that has bothered reformers for more than a decade. Prime Minister Mustafa Al-Kazemi's government this week released the 95-page "white paper" of economic reform, which, if implemented, would prompt a radical reform of the entire system within three to five years. "It is a paper designed to create a strategic and political framework for a new Iraqi economy," Allawi said. "At the end of this period of change and reform ... we are supposed to have a restructured and more dynamic economy, this is the goal of it."

A lack of support from key political elites has undermined similar efforts in the past. The Kazemi government continues to rely on parliament approval for the vision to gain momentum. "There is less denial. First of all, denial," Allawi said. Senior officials in the Al-Kazemi government, including Allawi, have repeatedly stated that while oil prices are not expected to recover in the short term, only reforms will make Iraq avoid an economic disaster. The future of the project faces a major test: Parliament's approval in the form of a binding decision or legislation. "Once this is done, we have to roll up our sleeves and start work," the minister added.

Allawi said that at a later time, aspects of the plan outlined in the paper will be incorporated into the 2021 budget, which will require a vote in Parliament. Government support in the electricity and oil sectors will face special scrutiny. "Part of the public sector finance problem is the huge amount of subsidies, and we intend to address this issue directly in the 2021 budget," the minister explained. But the public debate focused on the white paper that aims to reduce public wages from 25 percent of GDP to 12 percent. Lowering public sector wages, especially in an election year, is a widely unpopular move.  Nevertheless, Allawi was firm when he said, "I have said many times before, that the share of oil revenues allocated to salaries in 2004 was 20 percent, and now it is 120 percent."  “This is clearly not sustainable,” he stressed.

In September, Iraq achieved $ 3.16 billion in oil exports, accounting for 90 percent of state revenues, less than half of the $ 7 billion needed to pay salaries, pensions, imports, and debt. September salaries were delayed and the payment of October wages depends to a large extent on internal government borrowing.  A previous bill allowing for $ 12 billion in internal borrowing has been exhausted. A new bill requesting $ 35 billion faces a vote in Parliament. "I hope Parliament will approve it. If this does not happen, we have the possibility of other alternatives, but it will be more difficult," Allawi said of the bill. Iraq's hard currency reserves amount to 53 billion dollars.  The Iraqi Finance Minister said that there is a growing political will to make the radical reforms required for the country to address the massive liquidity crisis that has pushed Iraq to the brink of collapse.

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Finance Minister: The Share Of Oil Revenues Allocated To Salaries In 2004 Was 20%, Now 120%  LINK 

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