Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

The Central Bank confirms the safety and accuracy of external transfer operations on the electronic platform in 2023


yota691
 Share

Recommended Posts

4 hours ago, horsesoldier said:

These folks can say everything, nothing, hint at something & be cryptic all in the same sentence. They frustrate me so much at times, I get so knotted up with their shenanigans It puts my nuts in a vise. 

Speaking of Nuts!

Getting hit in the nuts with a 90mph fastball now has a higher approval rating than Joe Biden.

  • Like 2
  • Thanks 1
  • Haha 9
  • Pow! 4
Link to comment
Share on other sites

6 hours ago, horsesoldier said:

These folks can say everything, nothing, hint at something & be cryptic all in the same sentence. They frustrate me so much at times, I get so knotted up with their shenanigans It puts my nuts in a vise. 

 

That must be a pretty big vise for those horse nuts.

  • Thanks 1
  • Haha 6
Link to comment
Share on other sites

Banking reform and fiscal stimulus

Tuesday 05 October 2021 130Banking reform and fiscal stimulus

 

  Samir Al-Nusairi
Several months ago, the government issued the white paper, which is the roadmap for the desired macroeconomic reform for the coming years. The white paper, on pages 56 and 57, identified the main objectives of banking sector reform in the medium and long term, between 3-5 years. In fact, it is an accurate diagnosis of the problems that have already been diagnosed by the Central Bank and the World Bank.

It has already developed urgent and strategic solutions and mechanisms for it as is evident in the Central Bank’s strategy (2016-2020) and strategic banking projects for the years (2019-2023). 
The paper focused on the basic objectives of private banking reform. 
In turn, we identify proposals for a number of urgent measures and solutions for banking reform 
Come: 
First - take decisions on financial policy to restore balance between government banks and private banks in terms of capital, activity and tasks, and focus on starting to restructure the Rafidain and Rasheed Banks, according to what was stated in agreement with the World Bank since
several years.
Second, through an analytical view of the reality of the Iraqi economy and the challenges facing the fiscal and monetary policies, in particular stimulating and revitalizing the economy with bank financing requires clarity of financial policies and coordination with monetary policy in stimulating 
Economy.  
Third - Take immediate measures to redistribute the banking density of private banks in proportion to the actual need of the Iraqi economy and towards stopping the granting of new licenses to establish new banks and start rehabilitating troubled banks, and studying the economic feasibility of continuing to work or merging them in accordance with the merger guide issued by the Central Bank in
2019.
Fourth - that the nature of the activities of banks depends on the nature of the activities of other economic sectors, and as long as the economic activity is concentrated in trade (imports), the activity of banks remains focused on external transfer, and this means that the problem of the currency window is not in the supply of the dollar from the central bank, but rather the reason is the demand for the dollar .. Therefore, unless other sectors (industry, agriculture, tourism and others) move, we cannot expect diversification of banking activity.
Fifthly, it is necessary to provide a legal environment and extend the rule of law in order to eliminate the phenomenon of default in the payment of loans, as the non-performing debts amounted to (5 trillion dinars), 70% of which are the debts of government banks and 30% of the debts of private banks, which constitute a large percentage of the total monetary credit 
granted.
Sixth – Activating the implementation of the decisions of the Council of Ministers and the Economic Affairs Committee in the Council of Ministers, which were previously directed to support system" rel="">support the banking sector, in particular private banks by opening accounts for ministries and government departments, accepting certified instruments and opening documentary credits to the government in the amount of 50 million dollars without going through the Ministry of Finance and the Iraqi Trade Bank and decisions Others pertain to borrowing for investment projects, collecting taxes and customs duties, and settling salaries.
Seventh- Considering the cases of bad debts owed by customers in private banks are urgent cases and excellent debts, similar to the debts 
governmental.
Eighth – Working to provide conditions and take measures to help private banks obtain the internationally approved credit rating, and then strengthen international banking relations with correspondent banks.
  • Upvote 3
Link to comment
Share on other sites

Tuesday 05 October 2021

 

Samir Al-Nusairi Several months ago, the government issued the white paper, which is the roadmap for the desired macroeconomic reform for the coming years.

The white paper, on pages 56 and 57, identified the main objectives of banking sector reform in the medium and long term, between 3-5 years. In fact, it is an accurate diagnosis of the problems that have already been diagnosed by the Central Bank and the World Bank.

It has already developed urgent and strategic solutions and mechanisms for it, as is evident in the Central Bank’s strategy (2016-2020) and strategic banking projects for the years (2019-2023).

The paper focused on the basic objectives of private banking reform.

In turn, we identify proposals for a number of urgent measures and solutions for banking reform to Come:

First - take decisions on financial policy to restore balance between government banks and private banks in terms of capital, activity and tasks, and focus on starting to restructure the Rafidain and Rasheed Banks, according to what was stated in agreement with the World Bank since several years.

Secondly - Through an analytical view of the reality of the Iraqi economy and the challenges facing the fiscal and monetary policies, in particular stimulating and revitalizing the economy with bank financing requires clarity of financial policies and coordination with monetary policy in stimulating Economy.

Third, taking immediate measures to redistribute the banking density of private banks in proportion to the actual need of the Iraqi economy and towards stopping the granting of new licenses to establish new banks and start rehabilitating troubled banks, and studying the economic feasibility of continuing to work or merging them according to the merger guide issued by the Central Bank in 2019.

Fourth - that the nature of the activities of banks depends on the nature of the activities of other economic sectors, and as long as economic activity is concentrated in trade (imports), the activity of banks remains focused on external transfer, and this means that the problem of the currency window is not in the supply of the dollar from the central bank, but rather the reason is the demand for the dollar .. Therefore, unless other sectors (industry, agriculture, tourism and others) move, we cannot expect diversification of banking activity.

Fifthly, it is necessary to provide a legal environment and extend the rule of law in order to eliminate the phenomenon of default in the payment of loans, as the non-performing debts reached up to (5 trillion dinars), 70% of which are government bank debts and 30% are the debts of private banks, which constitute a large percentage of the total monetary credit granted.

Sixth – Activating the implementation of the decisions of the Council of Ministers and the Economic Affairs Committee in the Council of Ministers, which were previously directed to support the banking sector, in particular private banks by opening accounts for ministries and government departments, accepting certified instruments and opening documentary credits to the government in the amount of 50 million dollars without going through the Ministry of Finance and the Iraqi Trade Bank and decisions Others related to borrowing for investment projects, collecting taxes and customs fees, and settling salaries.

Seventh- Considering the cases of bad debts owed by customers in private banks are urgent cases and excellent debts, similar to the debts governmental.

Eighth – Working to provide conditions and take measures to help private banks obtain the internationally approved credit rating, and then strengthen international banking relations with correspondent banks.  

 

LINK

  • Thanks 3
  • Upvote 5
Link to comment
Share on other sites

from the White Papers 


Banking sector:


Objective:
The reform of this sector aims to “reform government banks towards working according to commercial standards, reduce their hegemony over the banking sector and pave the way for private banks to ensure the development of the sector and take its role as a lever for the Iraqi economy, end the role of government banks as an arm to finance government spending, return to the independence of these banks from the Ministry of Finance and restore people's confidence in the sector Banking in general”, through the following steps
1) Addressing the level of capital of all government banks and organizing the process of increasing their capital, if necessary
2) Establishing and activating the basic banking system in the Rafidain and Rasheed banks, and continuing with the steps previously taken towards restructuring these two banks after conducting a full financial review by international auditing companies
3) Appointing an international law firm to conduct a full audit of the international legal position of Al-Rafidain and Rasheed banks in order to return them to international dealings
4) Reconsidering the Industrial Bank Law and increasing its capital in order to expand its business base and present it as a model for reforming other government banks
5) Accelerate the development of electronic banking and mobile banking services to become the primary means of the payments system to encourage more access to traditional banking services and enhance financial inclusion

6) Strengthening the ability of the Central Bank to perform its supervisory functions and enabling it to effectively supervise and regulate the banking sector, including the power of forced merger of low-performing banks
7) Implementing a deposit insurance system in order to enhance the confidence of depositors in the private banking sector
😎 Complete the application of international accounting systems in all banks to improve their transparency practices and according to the Central Bank's instructions in this regard
9) Providing an appropriate environment to encourage private banks to lend a stimulus to the economy and move away from focusing on generating revenues through the issuance of guarantees, the currency window and other fees.
10) Adopting market mechanisms in determining the interest rate and profits for the Iraqi financial markets

 

Go White Papers

Go Reforms 

Go development 

Go growth 

 

  • Like 1
  • Thanks 9
  • Haha 1
  • Upvote 2
  • Pow! 1
Link to comment
Share on other sites

 
29404.jpg
 
  

 Articles


Samir Al-Nusairi*

The Central Bank of Iraq launched its second strategy for the years (2021-2023) in conjunction with the economic and financial reform strategy adopted by the government in the white paper. The new strategy has drawn a roadmap with clear objectives and policies for the next three years in a special, complex and risky economic and financial situation.

And the challenges at the level of internal and external economic and financial relations. What concerns us as specialists in economic, financial and banking affairs is what are the new mechanisms and policies adopted by the Central Bank in monetary policy and banking reform in accordance with the approach of fundamental change desired for the national economy contained in the white paper and the second strategy, which constitutes the banking sector The first and basic in the economy and the implementer of monetary policy applications.

The strategy of the Central Bank set the main objectives at 15 objectives and the subsidiary objectives by 75 objectives and charted the way for banking reform in accordance with the following strategic objectives:-

1- Supporting and achieving monetary and financial stability.

 2- Enhancing and strengthening the banking sector and financial institutions.

3- Enhancing digital transformation in the central bank and the banking sector.

4- Developing the organizational structure and human resources of the Central Bank.

5- Activating and integrating the internal and external relations of the Central Bank.

Since these strategic goals have been set for a period of three years to achieve the main and subsidiary goals, which emphasize the protection of the financial system, the strengthening of financial inclusion, the management of monetary and financial stability, the development of control and supervision, the development of regulation in the banking sector, and the completion of the development of the monetary structure in the Central Bank and its branches in accordance with work frameworks and techniques authorized in central banks, developing human resources, developing banking operations, strengthening the bank's internal and external relations, and representing it locally and internationally. By analyzing the mechanisms and points of action to achieve the above goals, we note that the strategy identified the planning team, the implementation team, the implementation mechanisms and responsibility, as well as clear priorities for achieving reform. Certainly, these priorities were diagnosed in light of the challenges they face.

Monetary policy and the banking sector due to the suffocating economic and financial crisis that Iraq has suffered for subjective and objective reasons, which can be diagnosed as follows:-

* Work to achieve the objectives of monetary policy, the most important of which is the stability of the exchange rate, the preservation of the purchasing power of the Iraqi dinar, the inflation rate, and the building of a foreign cash reserve.

* Work to restore the confidence of citizens and customers in the Iraqi banking sector.

* Work to increase the percentage of savings for the monetary mass in circulation in banks to the percentage of hoarding outside banks, where the percentage of savings in the banking sector does not exceed 20%, and the percentage of hoarding is up to 80%. Increasing the percentage of financial inclusion and the delivery of banking services to the widest spread of the geographical area at the level of governorates and districts aspects, and the increase in banking density in this direction.

* The need to complete the structural and technical foundations of proactive control.

* Activate and reconsider the development of work mechanisms in the Deposit Insurance Company.

 * Reconsidering the laws of the legislative environment that regulate banking work.

* Reviewing and evaluating the results of banks' business and re-classifying them by accredited international companies. And to identify weak banks that need the intervention of the Central Bank of Iraq to rehabilitate them, restore their activity and protect them from bankruptcy.

* Demanding government support system" rel="">support in accordance with previous decisions and instructions issued by the Council of Ministers, the Economic Affairs Committee and the Ministerial Council for Economy.

* Strengthening and activating the central bank's lending and financing initiatives for small, medium, housing and large projects, in a way that contributes to stimulating the economy, revitalizing the economic cycle and diversifying the resources of the public budget.

* Developing the organizational, technical, and administrative structure of the Central Bank of Iraq and government and private banks, while emphasizing the principles of governance and determining the owners’ intervention in the banks’ executive departments.

Therefore, and for the purpose of applying the banking reform approach, according to what was stated in the strategy, according to an insight into the priorities and challenges that the Iraqi banking sector suffers from, the Central Bank made exceptional efforts during this year 2021, and many goals were achieved from the main and subsidiary goals, and it is trying to complete the achievement of all goals in 2023, which is the last year of the strategy.

Therefore, the strategy of the Central Bank has proven that it established, planned and identified advanced steps on the road to the systematic application of the desired banking reform.

 

 

* Economic and banking consultant

 
Views 112   Date added 10/13/2021
  • Thanks 3
  • Upvote 1
Link to comment
Share on other sites

  • 2 weeks later...
 
18518.jpg
Economic and banking advisor Samir Al-Nusairi
  

 Articles
Samir Al-Nusairi*

With determination and high confidence in the ability of the Iraqi financial and technical cadres to overcome the challenges of the technical gap that Iraq suffered due to the repercussions of the siege, wars and instability during the information revolution period.
The Central Bank, banks and specialized technical companies were able to overcome the challenges that stand in the way of the digital transformation of the banking sector and stand in the right direction in the darkest economic and security conditions that our country has experienced during the past years and draw a sound road map to catch up with the technical developments in the countries of the world.
The observer of the situation in Iraq during the years (2016-2021) notes the extent of belief in the Iraqi capabilities and competencies to bring about change and bridge the technical gap between us and the developed world. This is evident in the important achievements that have been achieved, as follows:
1 - The methodology adopted by the Central Bank and implemented by banks and electronic payment companies always focuses on working under a sound legislative, regulatory and legal umbrella, as well as strengthening the concepts of governance and global standards with regard to information technology and financial technologies.

2‐ Issuance of the electronic money payment system No. 3 of 2014 and the establishment of the National Payments Council, governance controls and institutional management of information and communications technology, and legal regulations and instructions that regulate the work of banks and electronic payment service providers.
3- The central bank plays a pivotal role in establishing advanced infrastructure, pursuing the latest global technologies, and developing the bank’s financial and banking systems, payment systems, and advanced communication networks according to the latest technologies.
4‐ The central bank, banks, and electronic payment companies own advanced payment systems as well as retail payment structures, and the national exchange was one of its most important parts. Up to 12 million credit cards were issued and approximately 1,300 ATMs were distributed 
 and more than 5,000 points of sale.

5- Granting work licenses to many electronic payment service providers (card issuers, collectors, mobile payment companies’ operations, bill presenters and payment gateways through various channels).
6- Extensive interest in implementing the first objective of the first strategy of the Bank (2019-2020) and second (2021-2023),
 which is to achieve monetary and financial stability and enhance digital transformation in the banking sector through a sound financial system with interest in achieving financial inclusion and reducing risks, as well as adopting a localization project Employee salaries, which increased from 11% to 23%, and expected to achieve the target percentage in 2023.

 It is clear from the above achievements that the Central Bank, the banking sector and electronic payment companies have overcome the challenges of the technical gap due to the blockade, occupation and terrorism, and it is moving today at a steady pace to achieve digital transformation in the comprehensive financial and banking sector towards achieving financial stability and moving from the cash society to the cashless society, which is also one of the objectives of the curriculum The reformist government in the white paper for the transition towards a digital economy.

Future plans for digital transformation

 1- Enhancing research and development activities for the manufacture of new banking products that are spread across governorates, districts, districts, and small cities. 
2- Improving the performance of banks through new inputs based on modern technologies, as well as the development of patterns and policies that adopt modern banking techniques that the countries of the developed world preceded us to.
3- Capacity building and qualification of digital transformation leaders and human resources in the field of modern banking sciences, technology and innovation with the aim of achieving sustainable development goals.
4- Develop plans and programs that aim to transform society into a society that deals with criticism, into a non-cash society and into an information society, so that plans and strategies for economic and social development are produced while working to achieve sustainable development goals.
5- Preparing national policies and strategies consistent with the plans of the monetary authority in management, supervision and control, and in coordination with information and communication technology.

 

* Economic and banking consultant

 
Views 94   Date Added 10/25/2021
  • Like 2
  • Thanks 3
  • Upvote 4
Link to comment
Share on other sites

Spot on Yota sir… 
 

A digital banking system is key, they are getting ready to go international. 
 

Improving the performance of banks through new inputs based on modern technologies, as well as the development of patterns and policies that adopt modern banking techniques that the countries of the developed world preceded us to.

  • Like 1
  • Upvote 6
  • Pow! 1
Link to comment
Share on other sites

  • 3 weeks later...
 
29680.jpg
 
  

 money and business


Economy News _ Baghdad                                                       

The economic and banking advisor to the Association of Iraqi Private Banks, Samir Al-Nusairi, participated in the work of the fifth session, which was held, on Sunday, for the Economic Reform Committee, in which he presented a vision and methodology for developing and supporting the private sector through the effects and repercussions of the economic reality in the current situation and the challenges it faces. The study he delivered at the session included the following topics:-

The first axis - the repercussions of the current economic reality on the private sector

The transformations and historical events that our country has witnessed, the struggles of which are still present, have not yet been established on their stable and stable bases politically, economically, socially and securityly. Therefore, there is an urgent need to correct reality and take it to the right paths that secure opportunities for stability, progress and prosperity.

There was a historic opportunity for successive governments to transform from governments that dominate all activities, to governments of planning, coordination and supervision, governments that do not practice blasphemy, but take leadership and direction, and open the doors for the private sector to take its role in the advancement of the production and service sectors. The modern government model is the purchase or rent of service. .

However, it is unfortunate that governments have continued to practice their traditional inherited roles, and their agencies have expanded and sagged in a way that swallowed the largest part of the state's resources and at the same time did not enable the private sector to take its role to carry out reform, advancement and development.

The nature of government expenditures deepened the delay in the advancement of the real sector of industry, agriculture, tourism and others, as it led to the weakening of the productive private sector and the strengthening of consumerism in light of the chaos of imports and dumping policies practiced by the exporting countries, and Iraq became a large market from end to end, meaning that the oil resources that It is the basis of the state's resources that go to building the economies of the exporting countries.

 Since 2003 until the present time, the Iraqi economy has suffered greatly from the loss of the curriculum, the lack of economic planning, the weakness of strategies, the dispersal of policies and confusion in managing the affairs of the economy and its various productive sectors, which led to a weak contribution to the gross domestic product. The focus was on oil as the main resource for economic resources, where it formed within limits (60%) of the gross domestic product and (93%) of the total revenues of the general budget.

What contributed to the exacerbation of Iraq's problems is the mismanagement and distribution of public money, which encouraged the exacerbation of financial and administrative corruption, marginalization and failure to give the private sector the appropriate opportunity and the national economic cadres, expertise and competencies to manage effective economic institutions. In addition to the effects of external economic conditions, including the instability of oil prices, their rise and decline.

What confused the economic process in Iraq and increased its complexity, is the structural imbalance in the economy and the challenges that led to instability in the monetary system and the financial system and thus the inability to achieve complete economic stability due to the deficit in non-oil revenue, the deficit in the balance of payments and the deficit in the general budget. This does not stimulate, encourage, support and involve the private sector in economic decision-making. 

As well as the shortcomings in the legal environment regulating economic life issued in 2004. Experience has proven that they are deficient laws and need to be reformulated and amended, and that the set of challenges and repercussions above, despite Iraq's high oil resources and the growing numbers of public budgets, has not achieved anything at the level of reform and sound economic construction and the involvement of the private sector in making economic decisions and through all those repercussions that it suffered from Our National Economy There are many challenges faced by the private sector for subjective and objective reasons.

 The second axis: challenges of the private sector

The private sector in Iraq suffers from a set of challenges that prevent its development, including, but not limited to:

1- Instability in the business environment in the country.

2- The absence of a methodology and the shortcomings of government policies and programs to support the private sector and the consolidation of the legal and regulatory frameworks that were designed for a centrally planned economy.

3- The shortcomings in bank financing and the sterility of the executive procedures for lending investment projects.

4- Lack of physical infrastructure in the country and insufficient supplies to operate projects such as electricity, energy and water.

5- Poor training and qualification of human resources working in the private sector, especially the technical and skilled groups.

6- Loss of methodology for reforming the national economy and its reflection on the role of the private sector in achieving development.

7- Import chaos, failure to support and protect the local product, and failure to activate the Public-Private Partnership Law and the Local Product Protection Law.

8- The spread of financial and administrative corruption in all episodes of stimulating the private sector to invest.

 The third axis - the methodology of reforming and supporting the private sector.

The start of the transition from a rentier economy to a productive one, in line with the National Development Plan for the years (2018-2020) and Iraq’s Vision 2030, diversifying resources, and reducing the dependence on oil as a major source of revenue. In order for this to be achieved, there must be a clear role and a decreed program to involve the private sector in managing the economy and making economic and development decisions. This comes through the following:-

1- Rebuilding the institutional and legal structure of the private sector in the legislative, incentive and procedural aspects in a manner consistent and consistent with what was stated in the axes of the implementation stages of the private sector development strategy for the years (2014-2030) launched by the government in February 2015 provided that these programs actually start immediately by developing mechanisms to involve the sector The national private sector in economic decision-making, in particular the development of the productive sectors and the private banking sector.

2- Activating the Private Sector Development Council, which was recently formed temporarily under the chairmanship of the Minister of Planning.

The council is composed of representatives of the private sector and the government in equal shares and undertakes the management, supervision, review and evaluation of the programs and policies set for making the decisions required to achieve the central economic goals through participation and cooperation between the private and public sectors. Cabinet sessions to express an opinion in the discussions of the private sector and to represent the private sector in the implementation follow-up committees and specialized committees in the Council of Ministers and to give a key role to the private banking sector as it is primarily responsible for financing and lending to small, medium and large projects, housing projects and reconstruction.

 Among the most prominent axes that clarify the role of the private sector and the role of banks in development, which emphasizes the need to implement important stages towards building a strategy for developing the economy and supporting and developing the private sector and the tasks that the Private Sector Development Council requires and the involvement of the private sector in a greater role 

In economic decision-making and market leadership through the following:‐

1- Contributing to improving the business environment in Iraq and providing an encouraging investment climate to attract national capital. and foreign and encouraging partnerships between the public and private sectors

2- Contributing to the creation of a new legislative environment based on Article (25) of the permanent constitution and the strategies and laws related to economic reform and the development of the private sector to ensure its activation and leadership in the market in the future.

3- Maintaining and activating the partnership, dialogue and cooperation between the private sector and the government by activating the partnership law between the private sector and the public sector, which has not been implemented for several years.

4- Contribute to the development of policies, mechanisms and strategies and participate in the follow-up of their implementation in order to resolve the transition to programmed phases in time to a market economy.

5- Working to provide additional funding sources for the state’s general budget by adopting the development and diversification of resources towards raising the proportion of resources other than oil in the gross domestic product.

6- Working to encourage the establishment and development of small, small, medium, large and housing projects in order to achieve comprehensive and sustainable development, including the formation of specialized institutions for it, and for bank financing to contribute more broadly to financing projects of all kinds.

 
 
Views 139   Date Added 11/15/2021
  • Thanks 1
  • Upvote 2
Link to comment
Share on other sites

 
29770.jpg
Economic and banking advisor Samir Al-Nusairi
  

 Articles
Samir Al-Nusairi*

The Community Initiatives Fund “Tamkeen” was established in November 2017, to achieve the economic and societal goals of the Central Bank of Iraq contained in Law 56 of 2004, which include achieving economic stability and promoting sustainable development.

This is done with the economic, humanitarian and cultural support of the community, through the initiatives provided by the Central Bank, banks and supporting authorities to achieve the economic and societal goal at the same time and support the humanitarian cases of the citizen, in light of the economic conditions that the country witnessed in the year 2004, due to the occupation of a large area by ISIS, which This led to a decline in the public services provided, as well as due to the drop in oil prices, on which the Iraqi economy depends almost entirely.

The “Tamkeen” Community Initiatives Fund is financed through monthly subscriptions from Iraqi private banks, exchange companies, electronic payment companies, gifts, donations and resources. General Council of Ministers.

The importance of the "Tamkeen" Initiatives Fund stems from its endeavor to support the community through: reviving the social and economic situation, employing manpower, empowering youth, and supporting humanitarian, cultural, social, technical and environmental cases.

The total number of initiatives supported by the "Tamkeen" Fund since its inception has reached hundreds of economic, humanitarian, cultural and community initiatives. The initiatives depended on supporting and developing Iraqi youth in various educational, service, health and other sectors. The areas in which the Tamkeen Fund contributed

1: Human and social situations.
Which has increased in the past years as a result of economic and social conditions.
2: Social areas and
support for the education sector.
3: Environmental Protection
Combating desertification in cooperation with the Ministry of Agriculture.
 Launching the "Initiative to Combat Desertification". It is a two-year initiative, which includes planting two million seedlings in all governorates of the country that suffer from this problem, while equipping the cultivated areas with drip irrigation networks. The initiative aims to reduce pollution and the negative effects of climate change and dust storms.
4: Supporting security in the capital, Baghdad
The Community Initiatives Fund "Tamkeen", the Baghdad Operations Command, has equipped 4 detachments of sniffer dogs to support the security situation in the capital, Baghdad.
5: support for culture, media and the arts.
6- Financing economic, development and reconstruction projects.

* Economic and banking consultant

 
 
Views 126   Date Added 11/22/2021
  • Thanks 1
Link to comment
Share on other sites

 
29804.jpg
part of the honor
  

 money and business


Economy News _ Baghdad

The Fourth International Scientific Conference on Creativity and Innovation was held at Gilgamesh University, under the auspices of the Minister of Higher Education and Scientific Research.

The conference included five axes, namely scientific research, patents, industrial models, innovations, fine arts, exhibitions and book signings.

On the sidelines of the conference, a signing ceremony was held for the two books of the adviser to the Association of Iraqi Private Banks, Mr. Samir Al-Nusairi, marked (The Iraqi economy .. Challenges of collapse and the strategy of revival) and (Our economy and the reform movement), and he was honored with the International Creativity Medal for his distinguished efforts in writing economic books and his participation in the conference activities.

Al-Nusairi gave the honor to the Central Bank and the Association of Iraqi Private Banks for their continuous support system" rel="">support for more giving in the service of our national economy and banking sector.

 
 
Views 134   Date Added 11/25/2021
  • Thanks 1
  • Upvote 1
Link to comment
Share on other sites

 
29826.jpg
Economic and banking advisor Samir Al-Nusairi
  

 Articles
Samir Al-Nusairi*

In 2020, the Iraqi economy suffered from cumulative and complex challenges and repercussions due to the decline in international oil prices and the slowdown in growth in the global economy due to the effects and repercussions of the Corona pandemic.

In addition to Iraq’s suffering, its special circumstances, dispersal of policies, lack of planning, ambiguity and confusion in the methodological vision of managing the economy, which led the government to diagnose the requirements for overcoming that suffering by drawing its strategy for the next three and five years in the white paper. Since the Central Bank is primarily responsible for monetary policy and its applications that contribute to achieving economic stability and overcoming the challenges of instability in the financial system due to the lack of clarity in financial policies, one of the most important tasks of the Central Bank in these two years 2020 and 2021 at the local level was to restore balance in the market Stimulating the economy, revitalizing the economic cycle, and facing the repercussions of reducing the Iraqi dinar exchange rate on low-income groups.

By launching the many financing and lending initiatives and activating the procedures for applying monetary policy and at the external level, building banking cooperation and coordination relations with the banks of Arab and regional countries based on continuous and permanent communication with the governors of banks and financial and banking institutions in these countries, starting with charting a promising economic and financial future with them. Therefore, these relations culminated in activating the banking relations with the Saudi side by visiting the Governor and his accompanying banking delegation and reaching agreements and understandings with the Saudi Central Bank and financial institutions in a way that enhances banking transactions between the two sides and benefit from the successful experiences in both countries.

In continuation of this approach, the meetings of the Governor, the banking delegation formed by the Central Bank, the Association of Banks and a number of heads of boards of directors of private banks continued over the past few days to discuss ways of banking cooperation between the Central Bank of Iraq, the Turkish Central Bank and the Turkish Licensing and Supervision Authority, which had previously been discussed in Baghdad in the presence of the Ambassador The Turkish and the regional managers of the Turkish banks operating in Iraq, which contributed to diagnosing the problems of the daily banking work of the branches of Turkish banks and the efforts of the Central Bank to overcome them and facilitate the work of Turkish banks operating in Iraq. Turkey’s meetings resulted in the following:-

1‐ The necessity of establishing a joint mechanism for cooperation with the Central Bank of Turkey to regulate the control, control and supervision of banking transactions for the broad commercial exchange between the two countries through the banking system.

2‐ The Central Bank expressed its readiness to overcome the observations and difficulties facing Turkish banks in Iraq and to provide them with flexibility and exceptions regarding the instructions issued by the bank in the field of foreign transfers and crude oil credits.

3- Opening channels of understanding and cooperation with Turkish banks to implement banking operations between the two countries.

4‐ Requesting the Turkish Central Bank to cooperate in facilitating the opening of branches of Iraqi banks in Turkey that are nominated by the Central Bank of Iraq, and to be treated in the same way we deal with their branches in Iraq.

The results of the meetings of the two delegations can be summarized by discussing the development of banking and financial relations, the development of banking relations between the two countries, support system" rel="">support for the opening of branches of Iraqi banks in Turkey and the opening of mutual accounts, which contributes to the development of trade relations between the two countries on the basis of reciprocity.

Inviting the Turkish Central Bank to provide facilities to Iraqi banks to facilitate the settlement of the trade balance between the two countries and the transfer of funds belonging to Iraqis residing in Turkey.

The Governor of the Central Bank of Turkey praised the efforts made by the Central Bank of Iraq in developing the national economy, stressing that he is ready to open the doors of cooperation and facilitate banking operations between the two countries.

*Economic and banking consultant

 
 
Views 167   Date Added 11/29/2021
  • Thanks 1
  • Upvote 4
Link to comment
Share on other sites

By launching the many financing and lending initiatives and activating the procedures for applying monetary policy and at the external level, building banking cooperation and coordination relations with the banks of Arab and regional countries based on continuous and permanent communication with the governors of banks and financial and banking institutions in these countries, starting with charting a promising economic and financial future with them......More connections with Saudis & Turks... The Governor of the Central Bank of Turkey praised the efforts made by the Central Bank of Iraq in developing the national economy, stressing that he is ready to open the doors of cooperation and facilitate banking operations between the two countries.

 

This is wonderful progress in getting Iraq on the international stage..! :tiphat:

  • Like 1
  • Thanks 1
  • Upvote 3
  • Pow! 1
Link to comment
Share on other sites

  • 2 weeks later...
 
29878.jpg
 
  

 articles
Samir Al-Nusairi 

Sameer Al-Nusairi *

The year 2021 is approaching its end in complex, cumulative and complex political and economic conditions due to the many challenges facing our beloved country. Which stands as an obstacle to the implementation of the plans of the government and the private sector in the economic and financial reform, which were mentioned in the white paper. In addition to this are the effects of international economic variables, the slowdown in global economic growth, indicators of the economic conflict between America and China, the instability in global oil prices, ups and downs, and the repercussions of the Corona pandemic.

All of these subjective and objective repercussions did not prevent the Central Bank administration during the year 2021 from implementing its ambitious reform plan in overcoming the challenges of stability in the financial and monetary system and stimulating the economy with the aim of achieving economic stability. The Central Bank started its reform measures and initiatives in 2021 as follows: ‐

 First - by launching its second strategy for the years (2021-2023) in conjunction with the strategy for economic and financial reform that the government adopted in the white paper. The new strategy drew a clear roadmap of goals and policies for a period of three years, and set the main goals as 15 goals and the sub-objectives at 75 goals, and charted the way for banking reform in accordance with the following main goals:-

1- Supporting and achieving monetary and financial stability.

2- Enhancing and strengthening the banking sector and financial institutions.

3- Enhancing digital transformation in the central bank and the banking sector.

4- Developing the organizational structure and human resources of the Central Bank.

5- Activating and integrating the internal and external relations of the Central Bank.

Secondly - the focus was also on controlling the new exchange rate of the Iraqi dinar and fixing it as a clear goal during the year through several measures, most notably issuing new instructions for buying and selling foreign currency for the year 2021, which are new instructions to banks and exchange companies and mediating the sale and purchase of authorized foreign currencies. The instructions are based on Central Bank Law No. 56 of 2004 amended and aims to strengthen the role of the banking system and non-bank financial institutions in securing foreign currency to the beneficiaries and controlling its movement internally and externally, leading to control and maintaining the stability of the exchange rate and compliance with the requirements of the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2015

  The Central Bank took many measures and initiatives to stimulate the economy and revitalize the economic cycle, which contributed during the year to controlling the target exchange rate for the public, which is (1470) dinars against the US dollar. Therefore, the new instructions regulate the process of selling foreign currency in the currency window, through which it will be implemented to maintain the stability of the exchange rate, control the movement of foreign currency locally and internationally, and abide by international standards for compliance rules and combating money laundering and terrorist financing. 

And let us not forget here how the US dollar devoured the local currencies of neighboring and regional countries, which suffered from a circumstance similar to that of Iraq, such as Iran, Turkey, Lebanon and Syria 

Where the local currency collapsed in very large proportions.

 While the Iraqi dinar exchange rate stabilized within the target rate of the Central Bank, which was specified in its statement in December 2020, despite the speculation in the market.

In which the reasons for the decision to amend the exchange rate were clearly indicated, which are as follows:-

1- It is the structural distortions in the Iraqi economy that have impoverished public finances and restricted the reform capacity that the government and the Ministry of Finance are seeking.

 It is no coincidence that the financial situation is so bad, but it took root more than a decade and a half ago due to the political leadership of the economy, the priority of political thinking over economic thought, development priorities and the rules of the relationship. Thus, fiscal policy failed to perform its roles, and monetary policy was preoccupied with restoring the confused financial policy outcomes.

2- The dependence of the economic and financial policy on the ambitions and concerns of politicians has led to the latest accepted models of financial management in Iraq, and the role of that administration has been limited to distributing oil resources to life-sustaining requirements such as salaries and operational requirements. 

3- Because of these combined conditions, the Central Bank had no choice but to intervene on more than one occasion to support public finances and save critical public spending requirements.

4- The Central Bank understands the difficulties facing the government’s intentions of reform, but this does not prevent it from pledging any steps that the monetary authority can take to effective steps to carry out reforms that inevitably affect the financial authority’s institutions, especially the effective collection institutions, customs and tax institutions, and the financial institutions. The other public levying, and that spending be streamlined and rationalized, and all of this depends on the political will of the higher state institutions that support the financial authority’s directions to achieve this.

This requires the government's direction to support the vulnerable groups, who will inevitably be directly affected, especially by any measure to change the exchange rate.

5- The legislative authority will have an important role in supporting the Central Bank’s direction to adjust the foreign exchange rate, as failure to take such a decision may make us obliged to take difficult decisions that may put Iraq in a situation similar to what neighboring countries have been exposed to.

It should also be emphasized here that this change (devaluation) in the value of the Iraqi dinar will be for one time only and will not be repeated.

6- The financial crisis that Iraq was exposed to due to the Corona pandemic and the resulting deterioration in oil prices and the decline in oil revenues, this led to a large deficit in the general budget and the Ministry of Finance was forced to borrow from banks and re-discount them with the Central Bank in large amounts, for the purpose of paying salaries. And meet other spending needs related to services provided to citizens.

Third ‐ The Central Bank also issued several initiatives to revitalize the national economy and support citizens, as

Indicators and official data indicate the success of the Central Bank’s economic and lending initiatives, which are a number of reform measures planned and put into practice by the Central Bank, which were accompanied by the decision to reduce the exchange rate of the dinar in order to alleviate the burdens that citizens with low incomes are expected to suffer and for the purpose of creating monetary balance in the market Trading and facing the repercussions that can occur as a general situation facing countries that reduce the exchange rate of their local currency and investing in positive cases to strengthen the financial position of the government, reduce the budget deficit and overcome the causes of internal and external borrowing, in addition to protecting and supporting the local product. Governmental and private banks have contributed to the implementation of the aforementioned Central Bank initiatives In the above, with all care and accuracy, which led to achieving good results regarding activating, facilitating and simplifying procedures to increase financing and loans for small, medium and housing projects, individuals and companies.

Where 10,000 small and medium projects were financed, with up to (12,000) unemployed workers, and an amount of (850) billion dinars was disbursed, at a rate of 85% of the one trillion dinars initiative allocated to private banks, and (5) trillion dinars and (2.6) trillion other dinars were allocated to finance Housing projects, in addition to the (6) trillion dinars that were allocated in 2016, while continuing to grant employees whose salaries are less than one million dinars and whose residence is with banks, loans amounting to (15) million dinars without interest and without a sponsor, in addition to the continuation of government banks specialized in lending industrial projects Agriculture and housing are part of the five trillion dinars initiative, which constitutes an advanced lending rate, especially housing loans.

Fourth ‐ At the level of developing banking work and increasing it 

 The percentage of financial inclusion, where a growth of up to 50% was achieved in the new opened accounts, and the number of accounts reached 6 million.   

It also implemented the second central bank strategy regarding the development of electronic payment systems and the transition to the cashless society. The number of ATMs operating in our banks reached (1,170) tellers and points of sale with up to (4) thousand points of sale, and the number of activated bank cards reached (12) million cards and activated electronic wallets With a limit of (3) million and (500) thousand portfolios, and the other important aspect that was achieved in 2021 is the commitment to international rules and standards for compliance, anti-money laundering, financial reporting and risk management.

Fifth- At the level of external banking relations and building banking cooperation and coordination relations with banks of Arab and regional countries based on continuous and permanent communication with the governors of banks and financial and banking institutions in these countries based on drawing a road map and reaching agreements and understandings with the Saudi Central Bank and financial institutions in a way that enhances transactions Banking relations between the two sides and benefit from the successful experiences in both countries and to enhance and activate cooperation with the Central Bank of Turkey to discuss the development of banking and financial relations and the development of banking relations between the two countries, and support the opening of branches of Iraqi banks in Turkey and the opening of mutual accounts, which contributes to the development of commercial relations between the two countries on the basis of transaction Likewise.

Inviting the Turkish Central Bank to provide facilities to Iraqi banks to facilitate the settlement of the trade balance between the two countries and the transfer of funds belonging to Iraqis residing in Turkey.

All of the above measures that the Central Bank accomplished in extremely complex economic conditions are considered important achievements that were achieved in 2021, and the Bank is moving at a steady pace to implement its new strategic goals until 2023 to achieve overcoming the challenges of the financial system and the monetary system on the path to achieving complete economic stability.

 

* Advisor to the Association of Iraqi Private Banks

 
Views 200,   date added 12/09/2021
  • Thanks 2
  • Upvote 2
Link to comment
Share on other sites

 
29928.jpg
 
  

 articles


Samir Al-Nusairi*

It was announced that the foreign cash reserves of the Central Bank amounted to 64 billion dollars and will rise to a higher rate when the Ministry of Finance pays what it owes to the Central Bank, which represents the sad transfers that the Central Bank discounted during the period of the financial crisis that Iraq suffered for the years 2016-2020 and it was a direct support to the treasury The state and the national economy.

The observer and the specialist is well aware that reaching this rate of foreign reserves is the central bank’s adoption of safe investment policies, which has strengthened the credit position internationally and restore confidence in the Iraqi economy and its international banking relations. And to benefit from the rise in international oil prices and its arrival to 80 dollars per barrel and the effects of reducing the exchange rate The Iraqi dinar in December 2020, this is in addition to the measures and initiatives of the Central Bank during the year 2021, which made a significant contribution to revitalizing the economic cycle and stimulating the economy.

What confirms the safety and success of the Bank’s second strategy (2021-2023) and its monetary policy applications in the year 2021. It is the verification of the achievements in the financing activity and the activation of its initiative to finance small and medium enterprises, amounting to 6 trillion dinars, adding an allocation of up to 7.6 trillion dinars, and focusing on encouraging projects Housing at the Real Estate Bank, the Housing Fund and private banks, in addition to the financing of the Tamkeen Fund for Community Projects.

And that all of these measures led to an improvement in the government’s financial position and a reduction in the actual deficit rates in the 2021 budget, which achieved the central bank’s planned goal for this year as far as its tasks and objectives contained in Law 56 of 2004 and its amendment.

The objectives of the reform of the banking sector were mentioned in the white paper. All of this clearly contributed to supporting the national economy, despite the challenges that the economy suffers from for subjective and objective reasons. 

 Thus, the Central Bank, with its distinguished national team, was able to achieve one of its main tasks and objectives, which is to build foreign reserves that collectively constitute a safe sufficiency that covers the local currency in circulation and the imports of the private sector.

 

* Advisor to the Association of Iraqi Private Banks

 
Views 88   Date Added 12/14/2021
  • Thanks 1
  • Upvote 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.



  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.