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


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Finance issues an explanatory statement about the "white paper" and its positive points

 
0fe88cee841cea55186337a23f0568da?s=26&r=Author: AhadNA3 On 10/21/2020 - 3:18 PM 73

Al Ahed News - Baghdad
The Ministry of Finance issued today, Wednesday, an explanatory statement about the “white paper” that the government launched a few days ago, while it showed the positive points related to the paper.
"In the framework of the Ministry of Finance's continuous endeavor, and based on its responsibility to reform the current economic and financial reality, the ministry, through the visions carried by the financial reform paper, is moving towards a diversified, multi-source economy," the ministry said in a statement, which Al Ahed News received.
The statement added, "The reform and activation of the private sector is done by creating a stable investment environment, and reviewing some self-financed public companies, in addition to activating the collection of the electricity sector."
The ministry pointed out that "the reform paper also seeks to change the course of the national economy from the role of state control to the role of regulation and law enforcement, paying attention to vulnerable groups and social welfare, and working to introduce radical improvements to the state's management of the public financial system to reduce the continuous waste of resources."
The statement pointed out that "restructuring the banking sector is an urgent necessity, as it is the backbone of any economic expansion through the development of deposits and loans with a mechanism different from the current one."
She indicated, "The current decline in productivity and income due to the dominance of the unproductive public sector calls for the development of real and scientific treatments, and this is what the financial reform paper seeks to do

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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!

Posted Images

YUP YUP!!!!  :D

1 minute ago, dinarham said:

    The bold print in the previous post says it all !  Toot Toot train pulling into the station ! C'mon let's go!!

 

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The Governor of the Central Bank of Iraq met in the capital, London, with the Governor of the Bank of England. The meeting dealt with ways to develop banking relations, increase the volume of investment transactions between the two countries, cooperate in the field of “combating money laundering and terrorist financing” and overcoming obstacles that hinder the process of opening branches for foreign banks.
 
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:o 

 

:D  :D  :D 
 

 

LINK

State of law clarifies the fact that Maliki intends to withdraw from the upcoming elections

 

image.jpeg.01adf057852373fe2566ae5b4913c67a.jpeg

 

20th October, 2020


An official source in the office of the head of the State of Law coalition denied that Nouri al-Maliki intended to refrain from running in the upcoming elections.   

The State of Law Coalition media confirmed, “What has been reported by some media outlets about Maliki’s intention not to run in the upcoming elections is absolutely false.”

The coalition added that “Al-Maliki will head the coalition's candidates in the elections to be held in 2021 within the governorate of Baghdad.”

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3 hours ago, DinarThug said:

:o 

 

:D  :D  :D 
 

 

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State of law clarifies the fact that Maliki intends to withdraw from the upcoming elections

 

image.jpeg.01adf057852373fe2566ae5b4913c67a.jpeg

 

20th October, 2020


An official source in the office of the head of the State of Law coalition denied that Nouri al-Maliki intended to refrain from running in the upcoming elections.   

The State of Law Coalition media confirmed, “What has been reported by some media outlets about Maliki’s intention not to run in the upcoming elections is absolutely false.”

The coalition added that “Al-Maliki will head the coalition's candidates in the elections to be held in 2021 within the governorate of Baghdad.”

Really??? Oh that’s too bad!! He would have won fo sho!!! 😂 Bye Felicia!! 

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restructuring the banking sector is an urgent necessity, as it is the backbone of any economic expansion through the development of deposits and loans with a mechanism different from the current one."

 

come on baby...its only time!😀

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On 10/21/2020 at 10:44 AM, DinarThug said:

State of law clarifies the fact that Maliki intends to withdraw from the upcoming elections

image.jpeg.01adf057852373fe2566ae5b4913c67a.jpeg

 

21 hours ago, Jaygo said:

Really??? Oh that’s too bad!! He would have won fo sho!!! 😂 


Nouri Al-Biden Would With Our ‘Media’ ! :o 
 

image.jpeg.01adf057852373fe2566ae5b4913c67a.jpeg

C’mon Camel Man ...  :bananacamel:
:D  :D  :D 
 

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Mulla Talal: Freezing the decision to close the US embassy in Baghdad until evaluation

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23rd October, 2020

 

A spokesman for the Prime Minister's Office, Ahmed Mulla Talal, revealed that the United States was freezing the decision to close the American embassy in Baghdad.


Mulla Talal said that the internal and external efforts of Prime Minister Mustafa Al-Kazemi's efforts resulted in dissuading the United States from the decision to close its embassy in Baghdad, but the decision is present and the date of its adoption was not specified until the evaluation.


Regarding the relations between Baghdad and London, Mulla Talal added that Al-Kazemi's visit to Britain was pivotal to strengthen the strategic, economic and military cooperation agreement, considering the United Kingdom as a key partner in the fight against ISIS.

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Warnings of "economic deflation and losses" due to delayed salaries

Monday 26th October 2020 30

https://alsabaah.iq/33640/تحذيرات-من-انكماش-وخسائر-اقتصادي-ة-بسبب-تأخر-توزيع-الرواتب

تحذيرات من «انكماش وخسائر اقتصاديَّة» بسبب تأخر توزيع الرواتب  Baghdad: Haider al-Rubaie 

 

Economic experts warned of the risks of continuing delays in the distribution of salaries of employees and retirees, and those covered by the social protection network, stressing that this matter cast a shadow over the overall economic movement in Iraq, and contributed significantly to a downturn that could lead to more economic losses, especially in the private sector .

 

The debate raged recently between the legislative and executive authorities regarding the mechanism for securing employees' salaries, as the government threw the ball into Parliament's goal, when it required it to pass the borrowing law in order to be able to distribute salaries, while the House of Representatives believes that the financial deficit results from the failure to find financing outlets for the budget other than revenues Oil.

 

Catastrophic effects

The economist, Bassem Jamil Antoine, said during his interview with “Al-Sabah” that “the delay resulting in the distribution of salaries of approximately 4.5 million employees, 2.5 million retirees, as well as more than one million covered by the social protection network, will leave" catastrophic "effects. On the economic movement in Iraq, especially since these have become the main engine of the Iraqi market, and that monthly salaries are the factor on which the market movement is based entirely.

Antoine points out that “the private sector has become a major part of the salary movement, and that the continuity of its work and the continuation of its activity are closely linked with the distribution of those salaries among those who deserve it, as well as the rest of the sectors, which form an integrated link with what employees and retirees receive, which caused the occurrence of A serious recession in various sectors caused by the delay in distributing these receivables.

 

Financial benefits

The economic expert indicates, “The employees have financial dues payable to many other parties, such as loans, rents, or electricity wages and the rest of the services, which the employee is forced to pay at the beginning of each month, which has left major negative effects on this segment, due to the lack of Paying those dues due to the delay in distributing salaries, and consequently, employees carry a cumulative financial burden.

Antoine warns, that “the continuation of this situation will turn the state into a consumer, and leave serious social consequences, which could lead to a setback in education, health, and various fields,” noting that “the solutions to overcome this crisis lie in heading towards the White Paper decisions, represented in reducing Dependence on oil imports, reducing imports, activating the various local productive sectors, and working to end unemployment and eradicate poverty.

 

Spending shrinkage

The economic expert, Dr. Salama Sumaisem, did not deviate from the previous opinion, when she confirmed that there had been a rise in the prices of foodstuffs, matched by a contraction in the tunnels due to the delay in the distribution of salaries.

In an interview with Al-Sabah, Sumaisem pointed out that “the wages and salaries of state employees and retirees form the basis for moving the forces of demand within society,” stressing that “this demand is not normal, but rather is directed to consumer goods, specifically food, and therefore the existence of this demand Guaranteed to move the economy towards more efficiency, whether in the areas of production or import.

And she points out that when the wheel of the economy begins to stop, the authorities initiate this demand, and not the other way around, as moving the demand saves the country from the state of recession and stagnation it reaches.

 

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Maximize investment opportunities

Monday 26th October 2020 46

 

Mohammed Sharif Abu Maysam

https://alsabaah.iq/33639/تعظيم-فرص-الاستثمار

تعظيم فرص الاستثمار
In his last leg of his European tour, and during his meeting with a number of heads of British companies, last Friday in London, Prime Minister Mustafa Al-Kazemi said, “Iraq plans to maximize investment opportunities and provide suitable climates. 

Companies ».

In this statement, what promises the existence of a government program that deals dynamically with the overall conditions and situations that constitute the features of the overall landscape in the country, thus establishing the presence of attractive elements for the flow of foreign capital into the country, and limiting the impact of current circumstances and conditions on opportunities 

Success.

As the promising environment that characterizes the potential for investment in the country is not sufficient, unless the features of the overall scene are formed with it to be an attractive environment, and among the most important of these features, political and security stability stands at the forefront, with a legal system that organizes the relations of market elements under the umbrella of an effective judicial system A healthy banking sector capable of containing the flow of capital and ensuring financial transactions and transactions in accordance with the mechanisms and standards of the banking industry in the world, a stable monetary policy that ensures the stability of the Iraqi dinar exchange rate against foreign currencies, and an infrastructure that ensures the flow of transportation means and the flow of goods and raw materials, and transparency in dealing with Governmental institutions, and reducing the slack circles of administrative and procedural performance. 

Here, the element of time may enter as an obstacle to some circles, which need speed in removing the elements of the determinants, foremost of which are the drafts of stalled economic laws, the adoption of transparency and disclosure, the adoption of modern technologies, the initiation of the e-government program and the adoption of the single window mechanism, in a way that contributes to reducing the loosening episodes. In administrative, financial and control performance, in addition to diligence in implementing the laws that were enacted during the past years. 

Consequently, creating an attractive environment needs serious work and cohesion at the level of all axes, in order to find a way for new and different performance in the work of the three authorities, and the supervisory, executive and other institutional bodies, especially those related to the financial and monetary policies, in addition to the urgent need to review the administrative formations of the state apparatus. .

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https://cbi.iq/page/26

 

Central Bank of Iraq Press CommuniquéNew Central Bank policy instruments Summary At its August 26 meeting, the Board of the Central Bank of Iraq (CBI) adopted a new Reserve Requirement regulation and a new Banking Facilities regulation. These regulations are attached. This Communiqué sets out the broad features of the new regulations and explains the reasons for adopting them in the context of strengthening the CBI’s conduct of monetary policy and supporting the Ministry of Finance’s (MOF’s) new government securities issue program. The CBI will soon issue draft instructions for implementing the new regulations. The changes in the CBI’s regulations and operations are designed to give the Central Bank better control of the money supply while at the same time providing greater certainty to banks with regard to the options and terms for managing their liquidity. The new government securities market is also expected to play an important positive role in bank liquidity management in conjunction with these new regulations. Banks will be expected and financially encouraged to manage their short-term liquidity needs with other banks (or the market more generally), turning to the central bank as a last resort. The CBI will hold meetings with banks in the near future to discuss the proposed regulations. The MOF has changed the way it finances its revenue shortfalls because of the new legal restrictions on its borrowing from the CBI and its desire to develop an active market in government securities. As required by the newly adopted Public Debt Law, all debt service will now be paid in cash. Thus the government securities held outside the Central Bank of Iraq (CBI) that matured July 1 were repaid with interest. The government securities held by the CBI are being dealt with in the context of an agreement between the MOF and the CBI to restructure the central bank’s claims on the government. The MOF has begun issuing new securities to refinance the maturing existing ones. The new securities may be traded after issue in a secondary market. The Central Bank of Iraq (CBI) has been recasting its operational relationship with banks in order to develop market based instruments of monetary policy and to facilitate the development of the market for the new MOF securities. Banks will no longer be required to hold MOF securities equal to 10 percent of total deposits (now contained in the reserve requirement regulation). The CBI will no longer buy or sell the existing MOF securities at the initiative of banks. In addition, the existing overdraft and advance facilities of the CBI have been closed and will be replaced by the new standing lending and deposit facilities just adopted by the CBI Board. The new reserve requirement regulation will go into effect in either October or November. The CBI may at its discretion buy or sell MOF securities with banks in a competitive auction as required for monetary policy purposes (so called “open market operations”). The details of all of these changes are explained below. Explanation to Banks of New Monetary Policy Instruments Monetary Policy Instruments The design of a central bank’s monetary policy instruments should serve both to foster efficient short-term liquidity management by banks and to deliver the central bank’s desired monetary policy (which can be measured by a variety of intermediate variables, including the yield curve, the exchange rate, and the rate of growth of the monetary supply). With regard to liquidity management, the central bank’s policy instruments must work together with money and securities markets and an efficient payment system to provide banks with confidence that they can always meet their payment obligations at a reasonable cost. The most certain, but also the most costly, form of liquidity is provided by excess reserves (vault cash and balances with the central bank in excess of required reserves). Intermediation spreads (the difference between interest rates on deposits and on loans) can be narrowed by enabling banks to minimize their holdings of non-interest yielding excess reserves. Bank’s ability to minimize excess reserves depends on the availability of other reliable means of liquidity management. The CBI currently has the following active and passive instruments that affect market liquidity (base money): •Foreign exchange auctions, in which the CBI buys or sells dollars to the market in light of its policy objectives; •A reserve requirement regulation that requires banks to hold in relation to their customers deposits: differentiated levels of deposits with the CBI, vault cash, and MOF securities. •An Overdraft Facility, for banks with reserve account balances at the CBI that are not sufficient to settle their net end of day payment obligations; •A Discount Window for bills of exchange and similar bank paper with a maturity of less than 90 days and at least two endorsements (currently charging 11% for good quality paper); •Lender of Last Resort Facility, which provides individually negotiated loans against collateral, for banks with chronic liquidity problems; •MOF securities Window, at which banks may buy or sell MOF securities at par (i.e. at issued interest rate). The above instruments are not adequate for the development of an efficient market oriented financial sector. In particular, they are not adequate or appropriate for developing an efficient and liquid market in government securities or for conducting a market based monetary policy. While the new FX auctions are well designed and are functioning satisfactorily, the other instruments are being redesigned. The reserve requirement does not provide banks with a useful liquidity management tool and would have complicated the implementation of a monetary target. It also includes a government securities requirement that should not be part of the requirement. The various lending facilities are not very transparent and do not always serve policy objectives. The MOF securities window provides much needed liquidity to MOF securities, but under terms that undercut the development of secondary trading and of an interbank market. Furthermore, the MOF securities window deprives the CBI of one of its most important instruments of monetary control by leaving to banks the discretion to buy or sell MOF securities with the CBI. Articles 28, 29 and 30 of the CBI law establish the CBI’s powers to conduct open market operations, provide standing facilities for banks, establish reserve requirements, and, under exceptional circumstances, provide Lender of Last Resort credits. These articles provide the basis for the modern policy instruments being adopted by the CBI. The new reserve requirement and banking facilities regulations are designed to help banks manage their liquidity more effectively in the market. Banks are encouraged to deal with each other more extensively rather than the central bank when managing their liquidity. The reasons for and key features of each new instrument are set out below. Reserve Requirement The CBI’s reserve requirement, confirmed as recently as December 12, 2003, is really three separate requirements in one Instruction. It requires banks to maintain frozen deposits with the CBI, which are currently 20% of their current/demand deposit liabilities of the previous month, 5% of their savings deposit liabilities, and 2% of their time/fixed deposit liabilities. In addition, the Instruction also contains two additional, basically unrelated requirements to hold MOF securities of at least 10% of banks’ total deposit liabilities and vault cash of at least 5% of total deposit liabilities. These required reserves are not remunerated. The Reserve Requirement Instruction is addressed by CBI’s Board of Directors to the Statistical and Research Department and the Credit and Banking Control Department. The report from banks in compliance with the Instruction is addressed to the Accounting Department. This reserve requirement does not reflect best practice and the CBI is introducing a new requirement, better designed for the needs of monetary policy in a market economy. Where they exist, reserve requirements almost universally are seen as a tool of monetary policy rather than banking supervision. Thus the responsibility for monitoring each bank’s compliance with the revised requirement has been moved from the Credit and Banking Control Department to the Agreements and Loans Department, the department with primary responsibility for monetary policy implementation. For monetary policy purposes a uniform requirement (i.e., the same ratio for all reservable deposits) is preferable. The ratio in the new requirement is applied to all deposit liabilities in the definition of money because that makes the money multiplier (the ratio of the quantity of money to base money) more stable and predictable. In addition, it has a neutral impact on the public’s choice of deposit maturities, which from a “tax” policy perspective is preferable. Foreign currency deposits are also included in the deposit base for the reserve requirement so as not to favor foreign currency deposits and hence dollarization. The requirement against both dinar and foreign currency deposits must be meet with dinars. The current regulation imposes separate requirements on bank’s deposits with the CBI and bank’s vault cash. In the new requirement these are combined so that the single, uniform requirement may be satisfied by the sum of each bank’s vault cash and current account deposits with the CBI.1The primary benefit to banks of the new requirement results from allowing the requirement to be met on average rather than on a continuously basis. The requirement will continue to be established for monthly periods but the current frozen deposits will be moved into the single clearing account for each bank. The assets that must be held on average to satisfy the requirement will be banks’ Iraqi dinar deposits with the central bank (other than in the standing deposit facility) plus their (new) Iraqi dinar cash in their vaults. A bank may use any and all of its deposits with the CBI on any day as long as its average end of day balance (plus its average ID vault cash) is equal or greater than the required amount. The CBI Board has set the reserve ratio at 25 percent. Because the new reserve requirement allows banks to use their dinar vault cash to satisfy the requirement, bank’s reserve assets will be greatly increased. To limit the impact of this change on bank liquidity (without raising the requirement ration even more), the Board also stipulated that 20 percent (of deposits) must be meet by deposits at the CBI and 5 percent (of deposits) by vault cash. A monthly averaging period can convert the reserve requirement into a quite useful tool for absorbing individual bank and system wide liquidity fluctuations in day to day positions. The 10% government security requirement is being discontinued, as is the separate requirement for vault cash. Standing facilities “When...financial markets, and more broadly financial systems, are not well developed, central banks have to place greater reliance on standing facilities than on open market operations. In that regard, standing facilities can act as a safety valve in response to unexpected liquidity developments or to various obstacles or inefficiencies that prevent a smooth redistribution of reserves via the interbank market. The safety valve function is also important when the liquidity forecasting framework is weak....” 1 A bank’s deposit at the CBI in the proposed standing deposit facility would not be counted toward satisfying the reserve requirement. The new central bank law provides for the CBI to establish standing lending and deposit facilities. A standing lending facility and a lender of last resort facility will replace the existing over draft and advance facilities now in use. The new law does not permit overdrafts of banks’ balances with the CBI. The purpose of standing credit and deposit facilities is to provide assurance to banks that they can manage their excess liquidity within a modest range of interest rates that straddle the central bank’s policy objective for short term rates. In the absence of well developed interbank money and securities markets in which the CBI’s open market operations can be conducted, the CBI will express its view on the short term interest rate appropriate for monetary policy by setting a Policy Rate as a reference rate. The standing lending and deposit facilities will have interest rates in relation to this Policy Rate. The rates on these facilities also provide an interest rate spread between placing and receiving funds from the central bank for the given maturity period (overnight). This spread is important because it should encourage banks to develop an interbank market and manage their liquidity with each other in the first instance, rather than always dealing with the central bank. Once interbank markets are better developed, the CBI’s open market operations will aim, in part, to keep short-term interbank interest rates well within the tunnel of the rates of the two standing facilities. The rates on the standing lending and deposit facility should float above and below prevailing money market rates. Until an interbank money market and secondary trading of MOF securities are developed, the rates set on these two facilities will be set in relation to the Policy Rate of the CBI. The CBI will need to carefully monitor this rate in light of monetary policy objectives. The Board has initially set the Policy Rate at 6 percent. Standing lending facility A standing Primary Credit facility will provide over night credit to banks against suitable collateral at the initiative of the banks. Banks will be able to borrow overnight a maximum amount in relation to their capital (as long as they had eligible collateral) at that day’s Primary Credit rate. The interest rate will be set at a premium above the CBI’s Policy Rate. The Board has set the Primary Credit rate at the Policy Rate plus 2 percent, i.e., at 8 percent. In the future, as financial markets deepen, the facility’s interest rate premium will be reduced. As a further safeguard of the intended temporary and occasional nature of the facility, a larger premium will be imposed for use of the facility for more than fifteen days each month under a Secondary Credit facility. A bank may use primary credit on 15 days in a month and may use it on additional days in a month with prior Central Bank approval. A bank may use primary credit up to 20 percent of the bank’s capital and may use primary credit in excess of this amount with prior Central Bank approval. The Secondary Credit facility has the same eligibility criteria as the Primary Credit facility but can be extended for longer periods at a some what higher interest rate and is granted at the discretion of the central bank. Initially the prolonged use premium will be 1 percentage points about the Primary Credit rate, i.e. 9%. It will not be profitable for banks to borrow excessive amounts under these conditions for other than temporary distress situations, which CBI should accommodate in any event. Borrowing by more seriously distressed banks will be covered by a Lender of Last Resort Facility discussed below as part of supervisory measures imposed by the Bank Supervision Department. CBI advances under all of these facilities must be collateralized with collaterals acceptable to the CBI. The CBI will publish the list of acceptable collateral for each facility and may revise the list at any time. Initially, for the Primary Credit facility the CBI will accept MOF securities with a remaining maturity of less than 180 days. Banks must pledge MOF securities they own in the MOF securities depository, by instructing the CBI to mark the required amount as pledged to the CBI as collateral. Lender of Last Resort (LLR) facility The central bank law also provides for lending to distressed banks under exceptional circumstances. An example might be to stem a run on a bank hit by unfounded rumors. Another example might be to provide an otherwise sound bank time to work out of a chronic liquidity shortage. For this purpose, the bank would generally be under enhanced supervision and would be expected to carry out specific supervisory measures to correct its problems. Most often, however, what first looks like a liquidity problem is really a solvency problem. Many countries have wasted a great deal of the public treasury propping up insolvent banks through liquidity support loans. The CBI will not generally lend to an insolvent bank. The law places strict limits on the conditions for these exceptional loans in Article 30. Such a loan is not allowed unless: “a. the bank, in the opinion of the CBI, is solvent and provides adequate collateral, and the request for financial assistance is based on the need to improve liquidity; or b. such assistance is necessary to preserve the stability of the financial system and the Minister of Finance has issued to the CBI a guarantee in writing on behalf of the Government securing the repayment of the loan.” The LLR facility can advance collateralized funds for longer periods and can accept a broader range of less traditional collateral (conservatively valued). The interest rate charged on Lender of Last Resort facility loans will be the Policy Rate set by the CBI plus 3.5 percent. i.e. 9.5%. Deposit facility The CBI will open a standing deposit facility, which will accept overnight deposits from banks with excess reserves. Funds will not be placed in the facility unless explicitly ordered by a bank. The interest rate on these deposits will be set below the CBI Policy Rate. Initially the rate will be set at 2 percentage points below the Policy Rate. The facility will provide a floor to very short-term interest rates, which will help bring some stability to bank expectations about interest rates. Moreover, until a t-bill market develops in which the CBI can conduct its open market operations, the deposit facility can “automatically” drain excess liquidity from the banking sector. The Policy Rate The monetary policy of the CBI expresses itself, in part, in the short-term money market interest rates that it brings about. That market is now very undeveloped and thus cannot yet be relied on to reflect the central bank’s policy stance. Until that market, or the secondary market in very short-term MOF securities is adequately developed, the CBI will signal its target for over night, interbank interest rates by setting a bench mark reference rate. It calls this interest rate its Policy Rate. Banks are free to set their own interest rates and to deal with each other and others in the market at any mutually agreed interest rate. The Policy Rate is the bench mark rate from which the Primary Credit, Secondary Credit, Lender of Last Resort credit, and Overnight Deposit rates are set. It is the rate the CBI thinks is appropriate to maintain price stability and that its monetary policy will attempt to achieve (by keeping bank liquidity at levels consistent with the Policy Rate). Open Market Operations The CBI can influence bank liquidity (excess reserves) and thus short term interest rates by buying and selling government securities. Selling such securities to the market from the CBI’s own holding would drain liquidity from the banking system (by reducing bank’s balances in their reserve accounts with the CBI). Buying them from the public would increase banks’ liquidity (i.e., their reserve account balances). Such open market operations (OMO) would provide an important second instrument (along with the foreign exchange auctions) of active liquidity management. Various strategies for the use of OMO are possible. The CBI might, for example, choose to provide for desired long-term monetary growth through the accumulation of foreign exchange reserves. The monetary effect of higher or lower rates of foreign exchange reserve growth resulting from interventions to stabilize the exchange rate could be sterilized with OMO. Otherwise OMO would be limited to stabilizing bank liquidity and keeping short-term money market interest rates within the tunnel of the CBI’ Credit and Deposit facility rates. OMO will generally by undertaken on an auction bases with banks. Such auctions will look very much like the foreign exchange auctions now being conducted.

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Examine the starting points for economic reform

Monday 26th October 2020 36

Examine the starting points for economic reform
 
 Baghdad: Hussein Thahab 
 
In order to activate the principle of social and economic elite partnership in the anticipated economic reform policy, a special consultative session was organized in the guesthouse hall headed by the Council of Ministers to examine the starting points for economic reform.
The preparation of the white reform paper and the use of specialists in economic and financial affairs and the productive sectors to rehabilitate it was discussed, as he supervised the preparation of (40 specialized experts in all economic sectors), and drew its summary (10 specialized consultants). 
It included five main directions, reforming the administrative and financial system, evaluating and monitoring government performance, the productive sectors, the social aspect, services and corruption.
The Minister of Finance, Dr. Ali Abdul-Amir Allawi, focused on the role of the private sector, which he considered is not only a partner but the main engine of any economic reform and construction approach, indicating "the need to support it with state funds for its development and support, and it is imperative to build a solid bridge between it and the executive authority to achieve the foundations of partnership." .
He added, "The reform paper came in response to a request from the House of Representatives, and we do not claim that it is a paper of emergency remedies for the current complex situation, which may give the impression that it is the magic paper to save the country, but it helps in improving the situation, and faces the challenges of its implementation and what it requires from a broad and radical revolution, for all the pillars and foundations of construction." Economic, "indicating that" the paper is far from the political orientations. "
The cultural advisor of the Iraqi Institute for Economic Reform, Dr. Hussein Jaber Al-Khaqani said: "During the session, inquiries were directed from most business sectors, industry, agriculture, tourism, banks, the information technology sector, taxes and customs, as well as the 2021 budget and monetary policy," pointing out that "the Minister of Finance expressed He is satisfied with the discussions of the special session, and for this he is looking forward to specialized sector papers
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Parliament: The next stage is the most difficult for Iraq economically and financially

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 2020-10-27 07:4
Shafaq News / The Iraqi parliament confirmed, on Tuesday, its keenness to expedite the coverage of salaries of employees and retirees, procedures and contracts, warning of an economic and financial "difficult" future stage.
The office of the First Deputy Speaker, Hassan Al-Kaabi, said in a statement received by Shafaq News, "The latter chaired today, an expanded meeting of the Parliamentary Finance Committee, to discuss the provisions of the draft law on financing the financial deficit transferred by the government, as well as highlighting what was mentioned in the white paper Of economic reforms. "
The statement quoted Al-Kaabi as saying, "The next stage is the most difficult for our country, Iraq, in economic and financial terms, and this is what forces everyone to pass it in a scientific and thoughtful way without affecting the citizen's life, livelihood and source of income."
Al-Kaabi stressed, "The House of Representatives was keen to expedite covering the salaries of employees and retirees, social care, procedures and contracts."
He pointed out that "the legislative and executive authorities are partners in the task of finding appropriate solutions to overcome this crisis, which we have to take advantage of to search for remedies and sober solutions, whether temporary solutions related to a financial crisis or solutions related to future economic growth."
The deputies addressed, according to the statement during the meeting, "the most important thing in the aforementioned draft law, demanding that there be numerical data that clarify some details of spending and the size of the total deficit, so that they can be studied before the law is approved in its final form."
 
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Against the background of the borrowing law ... a parliamentary intention to host the ministers of finance and planning and the governor of the Central Bank

18a2308669e075d383e7b415f19d9447?s=26&r=Author: ahad7 On 10/27/2020 - 7:32 p.m. 185
 

 

Today, Tuesday, MP Hassan Khatati revealed parliamentary plans to host the Ministers of Finance and Planning and the Governor of the Central Bank, against the backdrop of the borrowing law presented to Parliament.

"The House of Representatives will host the executive bodies responsible for the money in the Al-Kazemi government," Al-Khatti said in a press statement followed by Al-Ahed News, indicating that "the purpose of hosting is to know the exact details of the money required in the borrowing law."
 

He added, "The borrowing law is vague for Parliament and is it for the last four months of this year only, or are there other details

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And what will happen after the last 4 months of this year? More B,S or will they do the right thing. If the G7 Countries, IMF, World Bank and PM Khezemi wasn't flying all over the World to get support, I would have given up on Iraq by now. If something doesn't happen in 2021, I will be spellbound. Sometimes I wonder if COVID 19 was orchestrated for this reason and the so called Economic Reset. I am sympathetic to the lives that have been lost and I wouldn't wish it on anyone. There is a reason for this crisis and I wonder if Iraq has anything to do with it. Several articles have stated that because of low oil prices and COVID 19, the White Paper Economic Plan is the only solution to keep Iraq from going bankrupt. Only time will tell and time is what they are running out of.

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2020/10/28 17:03
 

Parliamentary Finance: Reliance on borrowing policy threatens the future of future generations

https://almasalah.com/ar/news/199906/المالية-النيابية-الارتكاز-على-سياسة-الاقتراض-يهدد-مستقبل-الاجيال-القادمة

 

Baghdad / Al-Masala: The Parliamentary Finance Committee issued a statement, Wednesday, October 28, 2020, following its meeting with the advanced cadre of the Ministry of Finance to discuss the government borrowing request.

The committee said in a statement that it hosted the advanced staff in the Ministry of Finance to discuss the draft fiscal deficit financing bill submitted by the government due to the delay in sending the budget law for 2020 and the continuation of crude oil prices at low levels and to finance the necessary public expenditures.

According to the statement: The interventions of the members of the Finance Committee during the hosting that was held at the headquarters of the Committee focused on the provisions of the Law on Financing the Fiscal Deficit and the paragraphs and numbers contained therein, in addition to the committee's request from the staff of the Ministry of Finance to provide clarifications in a transparent manner regarding the amount of borrowing that the Finance Committee considers exaggerated given what has been done Disbursed by the government from financial expenditures until August 31, 2020.

Haytham Al-Jubouri, head of the Finance Committee, stressed that the government's responsibility is to secure the salaries of employees and retirees and the benefits of the social welfare network and pay them on time without delay, but at the same time not to rely on the borrowing policy that represents a great danger to the economic situation of the country and threatens the future of future generations and represents an explicit violation of the Financial Management Law. For the year 2019.

Al-Jubouri indicated that the Finance Committee previously provided many solutions and reform steps for the government that would maximize the non-oil state revenues and stop the waste of public money. It was possible for the country to avoid falling into such stifling financial crises, such as automating customs and border crossings, and making an inventory of the number of employees in the state through Following a biometric system for each employee, as well as collecting electricity and reconsidering the currency auction.

The Finance Committee directed a letter to the Prime Minister to state his opinion of dispensing with the legislation of the fiscal deficit financing law after the government spokesman declared that solutions exist at the Ministry of Finance to provide cash liquidity to secure salaries in the event that the law is not voted on, as it bears the state new financial burdens that cast a shadow over the situation. Economic and to be able to focus on the desired economic reforms

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