Al-Nasiri: The battle of exchange rate stability with speculators in the black market will end with the recovery of the dinar

[yota691]

The Central Bank of Iraq 75 years in the face of economic challenges

 

* Samir Al-Nusairi By the current year 2022, the Central Bank of Iraq will have been 75 years since its founding and carrying out its duties. It has gone through stages of economic and financial challenges and monetary policy applications. During those years, it was in direct confrontation to overcome those challenges and political influences and changes in the economic systems that were prevalent at the time. However, the central bank proved   It is a solid, sovereign financial economic institution founded in 1947 of the last century. It is specialized in drawing the paths and policies of monetary policy applications, supervision and control over the banking sector, and is considered the financial advisor to the government. His role was essential in managing the economic process in Iraq, and he took over the leadership of his administration, 23 governors, all of whom were distinguished by distinguished technical and administrative specifications. And after the change in 2003 and in accordance with its new law 56 of 2004 and through its management of monetary policy and the achievement of its goals, where Iraq passed during the past 19 years an important stage of its economic system, where the change included the beginning of new applications for economic construction based on building introductions to the transition from the philosophy and strategies of the central economic system in Economics management to the philosophy, strategies and mechanisms of a market economy   Therefore, the Central Bank of Iraq and the banking sector have taken great development steps towards moving from banking activity to real and developmental activity, especially during recent years. to good rates, as indicated by the financial data and indicators, and that the Central Bank of Iraq was able to maintain for several years the exchange rate of the Iraqi dinar against the US dollar in a balanced manner, despite the fluctuation and variation up and down according to   Due to difficult economic conditions and financial and economic crises due to the decline in oil prices, the war on terrorism and the speculation that occurs in the markets. Where it is noted that the daily intervention of the Central Bank of Iraq in managing monetary policy tools in light of policy data    The issuance of instructions, controls, memoranda, and regulations and guidelines that are consistent with international standards and the requirements of regulations and rules for compliance and combating money laundering and terrorist financing, and the issuance of a law regulating this by No. 39 of 2015 and the liquidation of the notes diagnosed by the Financial Action Group (FATF) , which moved Iraq from the gray area to the regular follow-up Every two years and try to control the violations that occur by reviewing, evaluating and classifying banks for the purposes of comprehensive evaluation according to the (camels) system. And for the purposes of the foreign currency sale window, with the aim of controlling the movement of foreign currency and limiting its disposition, other than the specific economic goals of monetary policy applications. As dealing with the sale of foreign currency is one of the largest open market operations in controlling the levels of local liquidity and putting the cash surplus in its proper tracks, and it is a good economic indicator that the exchange rate will be stable despite the difficult economic conditions that Iraq went through after 2014 and 2020, the Central Bank of Iraq was also able Maintaining a good foreign cash reserve that exceeded 65 billion dollars, in addition to its gold reserves, despite the conditions of recession and economic depression. Re-discounting treasury bonds issued by the Ministry of Finance and issuing international treasury bonds, in addition to the World Bank’s praise of the economic and financial reform programs adopted by the Central Bank in accordance with its first and second strategies for the years (2016).The Central Bank according to its first and second strategy for the years (2016The Central Bank according to its first and second strategy for the years (2016- 2023) and its expectations of    good growth rates during the current year for the Iraqi economy , recording progress at the level of Arab countries . And the formation of a joint committee between him and the finance department to coordinate between the fiscal and monetary policies, and many coordinating measures were achieved because of this .   The calculated and bold economic and financial measures undertaken by the Central Bank and its successful experience in providing continuous support to the Iraqi economy, in addition to its initiative to revitalize the economic cycle, launch and follow-up the implementation of its multiple initiatives to finance small, medium, housing and investment projects in the housing, agriculture, industry and services sectors, support banks’ liquidity and achieve two economic and social goals in At the same time, other important measures have been taken by establishing the Deposit Insurance Company, which has begun its tasks for the purpose of restoring confidence in the banking sector and increasing the savings rate for the monetary mass in banks at the expense of the hoarding ratio. All this was accompanied by structural, structural and developmental developments in all the specialized and qualitative departments of the bank, focusing on total quality management, institutional development, adoption of international standards, compliance with rules and regulations for compliance, risk management, combating money laundering and financing terrorism, banking awareness and technical developments in payment systems, electronic payment and information technology, which contributed to the transition of policies The Central Bank’s work procedures have reached an advanced stage in the pace of achieving economic stability.

* Advisor to the Association of Iraqi Private Banks

Views 252   Date Added 05/08/2022

  

[6ly410]

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[horsesoldier]

One of our group I got off from the phone a while ago quipped: yep, CBI  facing challenges, 75 more years to go, then - BOOM !!!! RV 

 

She's a bit jaded like most of our group right now.

 

[yota691]

Bank credit..the main business of the banking sector

 

articles
Samir Al-Nusairi
   

  
 Bank credit is the main activity that banks must carry out within their core work in the process of lending money or granting facilities (financing assets, goods, etc.) between two parties, one of whom is the bank and the other party is called the borrower customer. Investment) or (Murabaha or Istisna’a return or commission in Islamic banks) in return for paying this amount that was granted to the customer over multiple agreed time periods according to the terms of the contract.

Therefore, government and private banks vary in their activities between commercial (traditional), Islamic, agricultural, industrial and real estate. However, the credit in these banks, based on the results of banking activities for the year 2021, shows that most credit operations are limited to 
the Central Bank’s financing and lending initiatives that were launched in 2021 and 2022 to stimulate the economy and revitalize the economic cycle With regard to private banks, as for government banks, the credit activity of personal loans and advances to employees, military personnel and retirees is concentrated. Most of them go to consumer aspects, and their role is limited to move towards development.

At the level of private banks, "there are about 50 banks in Iraq, since the launch of financing small, medium, large and housing projects and their activation in 2021 and 2022, granting loans that contributed to financing up to more than 10 thousand projects and operating up to 40 thousand people with a financial value that exceeded 1418 billion dinars." (Trillion Four hundred and eighteen billion dinars) with an implementation rate of 71% for the allocation to private banks, while the implementation rates for the allocated to specialized governmental banks amounted to 13% for the Agricultural Bank, 18% for the Industrial Bank, 76% for the Real Estate Bank, and 60% for the Housing Fund 
, where the total allocation for the initiative amounted to 17 trillion dinars.
It must be pointed out here to the banks that are faltering in credit activity and that suffer from a lack of liquidity and have not adhered to the instructions of the Central Bank to implement the initiative and are reluctant in their daily activities in serving customers. It is diagnosed by the Central Bank, and some of them are under guardianship, while others are trying to rehabilitate them and return them to the market after restructuring them again.”
The important thing in bank credit operations is that some banks hesitate to grant credit because they are exposed to the risks of non-payment and the accumulation of bad debts, which amounted according to official figures. For 2021, it will reach 5 trillion dinars
  The debts of private banks account for 40% of them. The reluctance of some borrowers to pay leads to considering them as debts that cannot be obtained based on the guiding instructions for classifying bad debts according to Basel 1 and 2. In addition to the fact that private sector debts are debts that are not considered excellent debts such as government debts in accordance with the law in force, which prolongs the resolution of cases in the courts for years.
Nevertheless, the Central Bank constantly stresses the need for banks to practice real work, which is bank credit of all kinds, and focus on credit, which aims to operate development projects and diversify the economy, thus contributing to the transition of the banking sector from banking to development and achieving the central goal (banks are the lever of development)

 

 

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Views 111

Added 06/06/2022 - 9:33 AM

Update 06/06/2022 - 5:13 PM

[yota691]

 

Combating financial crimes enhances confidence in the banking sector

 

 

 

articles
Samir Al-Nusairi
   
 The methods and practices of people involved in financial crimes or what is called economic crimes have developed in most countries of the world that can be identified with money laundering crimes (money laundering), electronic payment crimes, currency counterfeiting, securities fraud and fraud crimes.

 

Therefore, governmental and judicial agencies have amended their laws in force and developed procedural and electronic means in order to control the reduction of these crimes in order to preserve their money and the national economy.

 

Iraq, like other countries, has its economic and legislative bodies and institutions active in combating these crimes, as it issued the Money Laundering and Combating the Financing of Terrorism Law No. 39 of 2015, which included 12 chapters and articles that specified the crimes covered by the law and the penalties for each financial crime, in addition to the crimes of counterfeiting, forgery and fraud stipulated in the Iraqi Penal Code The instructions issued by the Financial Authority and the Monetary Authority - represented by the Iraqi Mercury Bank to combat these crimes in order to preserve Iraq's money, especially its foreign currency, due to the impact of these crimes on the national economy and the creation of suffocating economic and financial crises for it and its reflection on sustainable development. It must be pointed out here to the important role played by the Central Bank in forming the Anti-Money Laundering and Terrorist Financing Council. The Governor chaired this council and included in his membership the authorities concerned with combating money laundering and combating terrorist financing in accordance with the applicable law and the regulations of the Financial Action Organization (FATF) to which central banks are subject, including The Central Bank of Iraq, which has moved from the gray area to the usual follow-up after filtering the specific comments on the internal banking operations in Iraq. The European Union’s decision to remove Iraq from the list of high-risk countries will also contribute to restoring confidence in the Iraqi economy and its foreign banking operations with other countries. The European Union's decision to remove Iraq from the list of high-risk countries will also contribute to restoring confidence in the Iraqi economy and its foreign banking transactions with other countries. The European Union's decision to remove Iraq from the list of high-risk countries will also contribute to restoring confidence in the Iraqi economy and its foreign banking transactions with other countries.

 

And the danger that the monetary and financial authorities fear is the failure of financial and banking institutions to comply with the rules of compliance, which means their exposure to financial and legal risks, the most important of which are reputational risks that directly affect Iraq’s economic, financial and banking dealings that affect Iraq’s external economic relations with the countries of the world and in particular on financial transactions And banking for Arab and foreign correspondent banks, but laws alone and internal judicial procedures cannot alone combat these financial crimes, which requires the development of local and international proactive control methods by adopting mechanisms and policies regulated by international agreements to cooperate in reducing financial crimes related to combating money laundering and financing terrorism and electronic financial crimes related to payment operations Electronic access to the final beneficiary and the final use of the money leaving Iraq for import purposes of all kinds and forms.

 

This requires training and qualification of supervisory and technical staff specialized in the issue of money laundering and the application of international standards in this field>

 

Therefore, the Central Bank of Iraq, the Association of Iraqi Private Banks, and the Iraqi judiciary have jointly set up specialized courses for banking, supervisory and judicial staff to exchange experiences and cooperate with each other to reduce financial and economic crimes, and they are granted a certificate specialized in combating money laundering and detecting currency counterfeiting. Counterfeiting letters of guarantee, financial bonds and all other securities, focusing on electronic crimes and cyber security.

 

Views 102
Added 06/12/2022 - 11:02 AM
Update 06/12/2022 - 4:38 PM

[yota691]

The central bank is moving at a steady pace to suppor t and revitalize the economy

 

articles
Samir Al-Nusairi
   

 By analyzing the speech of the Governor of the Central Bank, which he delivered at the opening of the (specialized workshop on climate change, desertification and national security), which was held in Baghdad on 06/16/2022, it becomes clear according to indicators and data

The official finances for 2021 and the first half of this year “that the Central Bank had an important role in supporting and stimulating the economy and revitalizing the economic cycle and in achieving macroeconomic balance and its reflection on achieving the growth rate indicated by the World Bank report, which is 2.8% in GDP He expected that economic growth in Iraq for this year would develop if Iraq maintained the wise disposal of the financial abundance achieved from the increase in oil prices and issued its budget for the mentioned year according to the indicators of economic recovery. Certainly, this recovery was for the Central Bank and the applications of its monetary policy and initiatives, which totaled 17 trillion dinars.

Which contributed to the establishment and operation of 11,000 small, medium and large projects, and the employment of more than 40,000 unemployed people, and the amounts of support it provided to the government during crises in 2020 and 2021, amounting to 30 trillion dinars, through various monetary policy tools, by re-discounting treasury transfers issued by the Finance .

Through our follow-up to the procedures, policies, activities and initiatives of the Central Bank, and by analyzing data and evaluating indicators for the specialized departments of the Bank, and implementing the banking reform program specified in the second strategy of the Central Bank for the years 2021-2023 

We have confirmed the success of the Central Bank’s development, lending and financing steps, which are a number of reform measures that were planned and put into practice, 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 trading market, which resulted in Recovery, stability and relative growth in the economy, as indicated in the latest World Bank report

In addition to 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 domestic product and increasing external cash reserves, which reached the limits of 74 billion dollars .

Activating the real sector and gradually reducing dependence on oil rents. This requires the issuance of the 2022 budget, coordination between the fiscal and monetary policies, and the government taking it upon itself to make its fiscal policy clear, distributing the tasks of implementing its reform plan to the concerned ministries, activating the implementation of investment projects, achieving food and drug security for citizens, and reducing unemployment and inflation. This is achieved by multiple sources of income. The national revolution in agricultural, industrial and commercial policies .

 

 

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Views 122

Added 06/19/2022 - 9:15 AM

Update 06/19/2022 - 4:11 PM

[Cata]

Thanks yota for all the hard work! Good stuff!

[yota691]

6 minutes ago, Cata said:

Thanks

Appreciate it..and GM Cata and all of DV..

[yota691]

Experience of Tamkeen Fund in Community Service

 

Articles
Samir Al-Nusairi
   

The Community Initiatives Fund “Tamkeen” was established 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 and community service. This is achieved 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 citizens, in light of the complex and accumulated critical economic conditions that the country has witnessed. Due to the decline in public services provided, the economic recession and the spread of the Corona pandemic.

The Community Initiatives Fund "Tamkeen" is financed through monthly subscriptions from Iraqi private banks, exchange companies, and electronic payment companies, and these funds are deposited in a separate account within the Central Bank of Iraq, and they are spent through a specialized committee whose membership includes the Central Bank, banks and the Department of Organizations in the General Secretariat of the 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 and empowering youth

Supporting humanitarian, cultural, societal, artistic and environmental cases

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

The areas in which the Tamkeen Fund contributed are:

1- Human and social situations.

Which has increased in the past years as a result of economic and social conditions.

2‐ Social Domains

Supporting the education sector.

3- Environmental protection

Combating desertification in cooperation with the Ministry of Agriculture.

  Launching the “Initiative to Combat Desertification”. It is an initiative that includes planting two million seedlings in all governorates of the country that suffer from this problem, while equipping the cultivated areas with drip irrigation systems.

4‐ The support provided to culture, media, and the arts. The most prominent cultural project is the completion of the rehabilitation and development of Al-Mutanabi Street (the heart of Iraqi culture).

5- Financing economic, development and reconstruction projects.

 

 

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Views 124

Added 06/26/2022 - 11:34 AM

Update 06/26/2022 - 3:54 PM

[yota691]

Our economy and stagflation in the global economy

 

articles
Samir Al-Nusairi
   

Most of the world’s countries have been suffering for nearly two months from a new economic crisis that is the most severe and harmful to the economies of countries from the previous crises that  swept the world previously, the last of which was the closure crisis due to the Corona pandemic .

 

Yes, it is a crisis (stagflation) due to food shortages, high prices, the Russian-Ukrainian war, the economic conflicts between America and China, the struggle to control oil prices, and the attempts of the affected countries to find plans and deals to control this rise that occurred during the past twelve months .

 

Through our follow-up, observation and analysis of the movement of the global economy, we note that most countries of the world have increased inflation rates and exceeded one rank and ranged between (5-15%) as it is now, for example in Iraq and most Arab and developing countries. It is expected that these percentages will rise during the next six months because the major affected countries From the stagflation crisis, its central banks will take difficult decisions in order to control the prices of their local currencies from declining and maintain their foreign monetary reserves at safe rates, thus reducing stagflation and maintaining relatively stable prices and balanced economic growth with the current prevailing economic conditions .

 

Therefore, I think that the solution to achieve the above goals is that most central banks will be forced to raise the   interest rate with a tiger that is commensurate with their economic situation .

 

Therefore, he estimated the situation in Iraq’s economic situation, and although we did not reach stagflation at the moment, and the dollar that enters is still higher than the dollar that exits due to the financial abundance due to the high oil prices, but this will not last long, especially since the major economic countries will do the impossible in order to restore oil prices to the rates. The target is in light of its interests, and thus Iraq will suffer from a new stifling economic crisis, especially as the country suffers from turmoil, political closure, a temporary government with limited powers and the absence of a general budget, and for the purpose of the Central Bank exercising its role in reducing inflation and controlling the general level of prices and maintaining the exchange rate of the dinar within its target limits And controlling the interest rate and maintaining its foreign cash reserves within the required rates, as well as controlling the money supply. Certainly, all of these aspects are among the objectives of the Central Bank and the concerns of its board of directors during the next stage for the purpose of avoiding the harm that Currently threatening the world  .

 

May God protect Iraq, its people and its economy .

 

 

 

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136 . views

Added 07/13/2022 - 2:05 PM

Update 07/13/2022 - 4:37 PM

[yota691]

Effective contributions of the Central Bank of Iraq to achieve financial sustainability and economic growth

 

 

 

articles
Samir Al-Nusairi

  

Through the analysis of indicators  and official financial data for the year 2021 and the first half of this year, "it becomes clear that the Central Bank of Iraq had an important role in supporting and stimulating the economy, revitalizing the economic cycle, saving the economy from collapse, achieving balance in the macro economy and achieving relative stability in the monetary system in challenging stages." And the crises that Iraq suffered in 2014, 2020 and 2021 .

This is reflected in the recovery of the economy and its transition from an economy that shrank by 11% to achieving a rate of 2.8% in 2021, which was indicated by the latest World Bank report . realized from the increase in oil prices wisely and issued its budget for the mentioned year according to the indicators of economic recovery.

Certainly, this recovery was due to the Central Bank and its monetary policy applications and initiatives, which totaled 18 trillion  dinars, which contributed to the establishment and operation of 11,000 small, medium and large projects and the operation of more than 40,000 unemployed people, and the amounts of support it provided to the government during crises in 2020 and 2021, amounting to 30 trillion dinars from Through the various monetary policy tools and by re-discounting the treasury transfers issued by the financial institution .

Through our follow-up to the procedures, policies, activities and initiatives of the Central Bank, and from the analysis of data and evaluative indicators for the specialized departments of the bank, and the implementation of the banking reform program specified in the second strategy of the Central Bank for the years 2021-2023 , we have confirmed the success of the Central Bank’s developmental, lending, financing and incentive steps, which are a number of reform measures that were planned and put in place In place of implementation, which was 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 trading market, which resulted in recovery, stability and relative growth in the economy   .   

In addition to 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 and increasing external cash reserves, which reached the limits of 74 billion dollars    And 130.39 tons of gold , thus Iraq ranked fourth in the Arab world and tenth globally. This comes due to the safe investments adopted by the Central Central Bank, activating the real sector, reforming and developing the banking sector technically, as the number of active bank cards reached 15 million and 1566 ATMs and more than 14.7 A thousand points of financial payment, and thus the percentage of financial inclusion exceeds 25%.

Therefore, it requires the next new government and the House of Representatives to issue the 2022 budget, and that the fiscal policy be clear and specific goals to achieve financial sustainability, distribute the tasks of implementing its reform plan to the concerned ministries, activate the economic sectors, diversify sources of income, implement investment projects, achieve food and drug security for citizens, reduce unemployment and inflation, and achieve growth in gross domestic product .

 

 

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168 . views

Added 07/18/2022 - 12:59 PM

Update 07/18/2022 - 5:06 PM

[yota691]

Iraq without a budget for 2022

articles
Samir Al-Nusairi
   

We are now in the fourth week of July of 2022, and most countries of the world, but all of them, have issued their general budget for the aforementioned year and previous years with their final accounts, with the exception of Iraq, which we did not know where the general budget for 2022 is. Was it prepared? Is it still in the corridors of the ministries of finance and planning? Sent to the Council of Ministers. Will it be the same as in 2014 and 2020
 , during which the budget for the two years referred to was not issued, and why did the Ministry of Finance not send the final accounts of all previous budgets from 2013 to 2021 to the Office of Financial Supervision based on the law in force on the fifteenth of April of the budget year? The Council of Ministers did not send the final accounts for all the above years along with the budgets to the House of Representatives based on Article 62 first of the Constitution.

In fact, no one knows, but we only know that Iraq’s budgets for several years are not approved and issued until several months after the budget year because of the problems and political quarrels and those who forgot that the budget is the budget of the Iraqi people and the budget for the implementation of investment projects and projects of reconstruction, construction and economic reform. Until when will this be repeated?
The current and expected financial situation for Iraq until the end of the year is good, as oil prices will not be less than (85-100) dollars per barrel according to the expectations of the global oil markets. Therefore, we will have financial savings of up to 30 billion dollars until the end of 2022, which makes the budget if it is issued in The beginning of the year is proceeding in a way that achieves the government's investment plans, fulfills its obligations towards internal and external debts, establishes its sovereign fund, 
and overcomes a real budget deficit for the first time in years.

But unfortunately, we expect that the budget for this year will not be issued during the coming months due to the lack of a government so far, in addition to the fact that the House of Representatives needs a long period of discussion and approval in the event that it is referred to it by the new government.

So, in view of this reality, Iraq will remain without a budget for the third time during the last decade, and thus Iraq will be the first in the world without an annual budget in the years 2014, 2020, 2022.

 

 

 

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Observations 146

Added 07/26/2022 - 11:52 AM

Update 07/26/2022 - 4:11 PM

[DoD]

Appears to be a pattern with these band of thieves. I think they go through this budget thing every year to try and justify their jobs. 
Never have figured out after all the months of back and fourth then finally vote and approve the budget it’s never launched and put in motion.

I keep wondering when the Federal Court over there will intervene in this political madness and make some decisions for these incompetent crooks….

[horsesoldier]

Disgraceful & Despicable...an Epic tragedy for the Iraqi people. 

Let's see if Sadr has what it takes to maneuver and squeeze Ole Tater like a grape 🍇 

[Stelardoc]

I think all this fake news is a lot of Ca Ca de Camel.

There's a budget.

They just need to budge it forward🤑

[yota691]

Al-Nusairi: The Central Bank’s initiatives to revitalize the economy amounted to 18 trillion dinars and achieved their goals

 

Articles
Samir Al-Nusairi
   

Samir Al-Nusairi, a consultant to the Iraqi Private Banks Association, confirmed in a televised speech that the central bank's lending and financing initiatives have achieved their main objectives in stimulating the economy and revitalizing the economic cycle.

Al-Nusairi indicated, through the Iraq Studio program, which is shown by iNews channel, that the Central Bank allocated an amount of 18 trillion dinars to lend to small, medium, large, housing and renewable energy projects. Allocating 5 trillion dinars for each of them, and the implementation rate was about 70% for the real estate agency and 60% for the Housing Fund.

 

Al-Nusairi added that the interest rate for housing loans is 2%, decreasing, and the loan amount ranges between 100-150 million dinars, with repayment periods ranging between 15-20 years, and loans for small and medium enterprises reach an interest rate of 3.4%, with a repayment period of up to 5 years.

 

Al-Nusairi urged borrowers to commit to paying the monthly installments of loans regularly for the purpose of enabling banks to expand the provision of loans to citizens and achieve the developmental, economic and societal goals of the initiatives of the Central Bank.

 

It is worth noting that the initiatives of the Central Bank's initiatives have contributed to supporting the private sector by more than 30% of the total cash credit granted, and that the amounts allocated to the initiatives constituted 8% of the gross domestic product.

 

 

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136 . views

Added 07/28/2022 - 11:07 AM

Update 07/28/2022 - 4:55 PM

[yota691]

Why is the central bank and our national economy targeted?

 

articles
Samir Al-Nusairi
   

Our country is now going through suffocating and complex crises and great challenges, most notably the political crisis and the effects of the global economic and financial crisis and its negative repercussions on the national economy. The Central Bank is making clear efforts to revitalize the national economy and overcome the expected damage that the country will suffer later. At a time when our people are demonstrating and looking forward to finding immediate solutions and remedies to overcome the political and economic crises and meet their basic needs .

 Some social media and some satellite channels known for their orientations and with the intent of deliberately harming the national economy and national economic institutions that have clear success experiences and work with Iraqi national cadres and that these parties are motivated by special and projective interests and target our national economy and its institutions that have achieved clear achievements during the economic and security shocks that Iraq went through it after mid-2014 until the present time, and it contributed to achieving economic resilience and supporting our national economy. Their statements and press and media reports have preoccupied us these days by targeting the Central Bank and involving organizational and administrative problems in other institutions, or exploiting leaks to amplify fabricated information that has not been audited and verified.

Its aim is to blackmail and cover up the achievements made during the years of crises. So why target? The reason, as I see it, is that the Central Bank insists on the need for all relevant authorities to carry out its daily work, both internally and externally, to abide by the instructions, controls and regulations in accordance with its objectives contained in Law 56 of 2004, which maintains economic stability in the country   .

Although I respect the other opinion that is issued by non-specialists or specialists in the economy and monetary policy in particular, but I may disagree with the opinion that is trying to dwarf, minimize and personalize the achievements made by the Central Bank in the face of challenges .

Therefore, I call on the media to look, even for once, to preserve the reputation of the Iraqi economy internally and externally, because it is illogical to allow targeting our economic institutions that are directly responsible for achieving steadfastness and economic stability .

Because accusations against the Central Bank are an insult to Iraq’s economic reputation internationally without checking and investigating the leaked information. These parties know before others through evidence and achievements that the Central Bank of Iraq has proven that it is the first independent economic institution in supporting and stimulating the national economy and maintaining its reputation locally and internationally .

 

 

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Views 99

Added 08/15/2022 - 3:12 PM

Update 08/15/2022 - 6:21 PM

[6ly410]

Why is it targeting the Central Bank and our national economy?

 

https://economy-news.net/content.php?id=29338

 

 

Samir Al , Nusairi's 

Our country is now going through suffocating and complex crises and major challenges, most notably the political crisis, the effects of the global economic and financial crisis and its negative repercussions on the national economy. At a time when our people are currently demonstrating and looking forward to finding immediate solutions and remedies to overcome political and economic crises and meet their basic needs.

Some social media and some satellite channels that are known for their orientations and with the intention of deliberately harming the national economy and national economic institutions that have clear success experiences and work with national Iraqi cadres come out to us and that these parties are driven by special and projective interests and target our national economy and its institutions that have achieved clear achievements during the economic and security shocks that Iraq has gone through after mid-2014 to the present time and contributed to achieving economic resilience and supported our national economy. We have been preoccupied with their manchettes and reports. Journalists and media outlets these days target the Central Bank and involve them in organizational and administrative problems in other institutions or exploit leaks to amplify fabricated information that has not been audited and verified.

Its aim is to blackmail and cover up the achievements made during the years of crisis. So why targeting? The reason, as I see it, is that the Central Bank insists on the need for all relevant authorities to carry out its daily work internally and externally to abide by the instructions, controls and regulations in accordance with its objectives contained in its Law 56 of 2004 that maintain economic stability in the country.

Although I respect the other opinion of non-specialists or specialists in economics and monetary policy in particular, I disagree with the view that tries to dwarf, minimize and personalize the achievements of the Central Bank in the face of challenges.

Therefore, I call on the media to look even for once at preserving the reputation of the Iraqi economy internally and externally because it makes no sense to allow the targeting of our economic institutions that are directly responsible for achieving economic resilience and stability.

Because the accusation against the Central Bank is a damage to Iraq's economic reputation internationally without scrutiny and investigation of leaked information, these bodies know first of all through evidence and achievements that the Central Bank of Iraq has proved to be the first independent economic institution in supporting and stimulating the national economy and maintaining its reputation locally and internationally.

 

 

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104 Views

Added 15/08/2022 - 3:12 PM

Updated 2022/08/15 - 6:33 PM

[southbeach]

On 6/19/2022 at 9:43 AM, Cata said:

Thanks yota for all the hard work! Good stuff!

 

[6ly410]

The Central Bank Goes Beyond Economic and Financial Challenges and Moves to Achieve Monetary Stability and Boost Economic Growth

 

 

https://economy-news.net/content.php?id=29731

 

Samir Al , Nusairi's Articles
   

The Central Bank of Iraq is an independent and sober sovereign economic institution as it approaches the occasion of its celebration of the seventy-fifth anniversary of its founding. To overcome it during the years (2020-2022), I darken the difficult and complex conditions due to the economic recession locally and globally due to the fall in oil prices, the Corona pandemic in 2020 and 2021 and the challenges of the food and energy crisis due to the effects of the Russian-Ukrainian war this year. Mr. Mustafa Ghaleb Makheef, Governor of the Mercury Bank, explained in a comprehensive and recently published talk about the banking, technical and development measures implemented by the Central Bank in achieving the objectives of monetary policy, supporting and stimulating the economy and moving from the process of unilateral targeting (maintaining a certain limit for inflation) to the state of bilateral targeting (achieving monetary stability and promoting economic growth).

Through our review and analysis of the Governor's speech, we were assured of the exceptional efforts exerted, the results achieved, the future outlook and the road map drawn in accordance with the Central Bank's first and second strategy, as the challenges and repercussions faced by monetary policy with clear and distinct efforts of the Central Bank cadres and in a high national spirit and keen to make a change in the programs and policies that moved the Markari Bank from traditional banking, technical and structural methods to modern methods of work linked to international standards with all their persistence. To achieve the achievements achieved at all levels and levels and in all banking, technical, technical and administrative fields.

The executive procedures and mechanisms adopted by the Central Bank during the past years in the use of monetary policy tools have contributed to the achievement of the objectives set out in its Law 56 of 2004.
He proved to be an independent, economic, financial and sober institution, which is responsible for drawing up the paths and policies of monetary policy applications, supervision and supervision of the banking sector and is the financial advisor to the government. His role was fundamental in managing the economic process in Iraq after the change in 2003 through his management of monetary policy and the achievement of its goals, where Iraq has gone through during the past years an important stage of its economic system, where the change included the beginning of new applications of economic construction based on the construction of the preludes to the transition from the philosophy and strategies of the central economic system in the management of the economy to the philosophy, strategies and mechanisms of the market economy. The most important feature of this phase at the macroeconomic level is the experimentation and the practice of economic policies and jurisprudence based mainly on the application of the mechanisms of the market economy without relying on the basic economic pillars of this transition, which led to confusion of vision, divergence of economic policies and lack of clarity of the economic approach to the new construction of the economy, which was helped by Iraq's political and economic environment and the unstable business environment.

However, the Central Bank of Iraq and the banking sector have taken great development steps towards the transition from banking activity to real and developmental activity, especially during financial and epidemiological crises and economic recession. Until the time when great achievements had been made in reducing the inflation that Iraq was suffering from and bringing it to good rates.
Financial data and indicators also indicate that the Central Bank of Iraq has been able to maintain for several years the exchange rate of the Iraqi dinar target against the US dollar in a balanced manner despite the fluctuation and variation up and down and speculation of speculators in the foreign currency market.

It is noted that the daily intervention of the Central Bank of Iraq in the management of the sale of foreign currency in the light of the monetary policy data, which has been adopted since (4/10/2003) despite the many criticisms and observations, but it contributed significantly to maintaining monetary stability and facing any quantities needed by the market for the purpose of financing trade for the private sector and meeting the needs of the Ministry of Finance for the local currency. In order to counter these criticisms, the Central Bank issued instructions and controls in line with international standards and the requirements of compliance regulations and rules and tried to control the violations that occur by reviewing, evaluating and classifying banks for the purposes of the currency sale window in order to control the movement of foreign currency and limit its disposal other than the specific economic objectives of monetary policy applications.

Dealing with the sale of foreign currency is one of the largest open market operations in controlling local liquidity levels and putting the cash surplus in its proper paths, which is a good economic indicator that the exchange rate is stabilized despite the difficult economic conditions experienced by Iraq. The Central Bank of Iraq was also able to maintain a good foreign cash reserve exceeding $ 85 billion, the highest balance since 2003, and the gold reserves reached 130.4 tons and that its reserves formed a hedge to face crises and a safe cover for the Iraqi dinar and to cover imports within a period of more than six months, which is a record rate adopted globally, and also contributed clearly to cover the deficit in public budgets as planned through the issuance of international treasury bonds, in addition to the praise of the Bank and the International Monetary Fund for programs The economic and financial reform adopted by the government and the expectations of a rise in the rate of economic growth in 2022. In addition, a permanent joint committee has been formed to coordinate between the fiscal and monetary policies, and many coordination measures have been achieved because of this, and this indicates a clear fact that the Central Bank of Iraq has been able with clear efforts during the past years and continues to strengthen its balance of foreign exchange in the bank's coffers and in foreign banks.

The calculated and bold economic and financial measures taken by the Central Bank and its successful experience in providing continuous support to the Iraqi economy and strengthening the state treasury by about 30 trillion dinars in 2020 and 2021, in addition to its initiatives to stimulate the economic cycle and allocate 18 trillion dinars to finance and operate small and medium enterprises in the sectors of housing, agriculture, industry, services, strategic infrastructure projects, renewable energy, supporting the liquidity of banks and achieving two economic and social goals at once through the Community Initiatives Fund (Tamkeen).
All this has been accompanied by structural and structural developmental developments in all the Bank's specialized and qualitative departments, focusing on total quality management, institutional development, adoption of international standards, adherence to compliance rules and regulations, risk management, combating money laundering and terrorist financing, banking awareness and technical developments in payment systems, electronic payment and information technology. He also developed his strategic future plan for payments and the transition to a cashless society.

 

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15 Views

Added 16/09/2022 - 7:44 PM

UPDATED 2022/09/16 - 8:19 PM

[southbeach]

“Future plan” for cashless society.  Good.  We don’t want cashless now.  Down the road after we cash out.  Just like in the US.  

[yota691]

Al-Nusairi: The Foreign Currency Sale Window Is An Economic Indicator That Achieves One Of The Monetary Policy Goals

On 10-11-2022

 

The advisor of the Iraqi Private Banks Association, Samir Al-Nusairi, confirmed today, Tuesday, that the foreign currency sale window is an economic indicator that achieves one of the monetary policy goals.
Al-Nusairi said in a statement received by the Iraqi News Agency (INA): “Accusations are directed against the Central Bank and banks for wasting foreign currency without evidence that proves the existence of suspicions of corruption, money laundering or currency smuggling, and the proposition that says that selling currency is a waste of public money. This is a description that has nothing to do with the economic process.”
He added that "the currency sale window process started by the Central Bank on 4/10/2004 in implementation of Article 28 of the Central Bank Law No. 56 of 2004, which allows the Central Bank to sell and buy foreign currency, and this process continued to meet the needs of the Ministry of Finance of local currency for purposes of The operating budget and for the purposes of meeting the imports of the private sector, and maintaining the stability of the target exchange rate of the Central Bank.
He continued, "The window for selling foreign currency is considered one of the largest open market operations in controlling the levels of domestic liquidity and putting the cash surplus in its proper tracks, which is a good economic indicator and achieves one of the objectives of monetary policy."
He explained that "the Central Bank of Iraq exercises multi-dimensional functions, as it is concerned with financial stability, management of the payments system, management of foreign reserves, licensing and control of banks and financial institutions, and it undertakes the establishment of preventive controls, in addition to other tasks related to the issuance of cash and the dissemination of data, indicators and economic forecasts."
And he indicated that "the main tasks carried out by the Central Bank are to manage the monetary policy that aims to control inflation, stimulate the economy, balance the balance of payments and achieve monetary stability."

 

 

Source: Iraqi News Agency

[6ly410]

Al-Nasiri: The return of the exchange rate to its target rates is achieved by revitalizing and stabilizing the economy

Al-Eqtessad News Agency - Al-Nasiri: The return of the exchange rate to its target rates is achieved by activating and stabilizing the economy (economy-news.net)

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Economy News-Baghdad

Advisor to the Association of Private Banks Samir Al-Nasiri, Monday that the return of stability in the exchange rate to its target rates from the Central Bank is achieved by stimulating and revitalizing the economy and overcoming the challenges of achieving economic stability, which means achieving stability in the financial system and the monetary system, and this is not only the duty of the Central Bank alone, but it is a basic duty of fiscal policy and the government's methodology in managing the economy and activating sources of national income other than oil.

Al-Nasiri explained to "Economy News": "Before the end of 2022, the money market entered a new challenge of monetary policy, which is the rise in the exchange rate of the dinar against the US dollar from the price set and targeted by the Central Bank, which is 1470 dinars for sale to the public, traders, businessmen and importers due to international and local technical requirements that led to a decrease in the daily rates of foreign currency sales in the window and the exploitation of speculators and yellow media in an attempt to benefit personally and harm the relative stability of the economy that was achieved during 2022."

He added, "The expectations of the Central Bank and specialists hope that the price will decrease in the coming days due to the measures taken by the Central Bank to increase the supply of dollars through government and private banking outlets and during all days of the week, including collection and official holidays, and under the field supervision and supervision of the Central Bank."

He pointed out that "the criterion adopted and confirmed by the Central Bank and specialists in achieving this is the availability of foreign currency cash reserves exceeding $ 96 billion and the continued flow of dollar revenues from oil sales on a daily basis according to the planned quantities and at the currently high prices of the product, which are expected to continue to rise during 2023, and energy experts expect it to exceed $ 100."

Al-Nasiri saw through economic analysis that the decisive solution to control the money market is to find immediate and strategic treatments for the complex and cumulative challenges and repercussions that the Iraqi economy suffers from for systematic and structural economic reasons and the failure of the concerned government agencies to stimulate and activate the productive economic sectors, which official data indicate that the contribution of the agriculture and industry sector to the GDP does not exceed 4.77% and 1.67%, respectively, which are very weak percentages, and the 2022 budget

Its features and indicators are not yet clear and we expect that it will not be approved before the end of the first quarter of this year. The statistics announced by the Ministry of Planning on the number of population and their classifications, especially the youth group within the working age, which constitutes about 60% of the total population, the high poverty rate at a rate of 25% and exceeded 40% in some southern governorates such as Nasiriyah, Maysan and Muthana, and the high unemployment rate at an average rate exceeding 31% of those able to work with a clear deficit in the balance of payments, which led to a state of recession and economic contraction, is one of the most prominent greetings of monetary policy and requires the support and support of the bank's plans and procedures. Central and clarity of fiscal policies and continuous coordination with monetary policy."

Al-Nasiri concluded his speech by saying that "the methodology of advancement and reform of the Iraqi economy and achieving economic growth and stability in 2023 requires exceptional efforts, programs, mechanisms and government procedures in partnership with the private sector and competent national competencies, and the most important is the sincere and real intentions of change towards the desired economic advancement with an emphasis on supporting the banking sector as the first basic link in the economy."

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6 Hits

Added 2023/01/09 - 11:19 AM

Update 2023/01/09 - 11:21 AM

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[6ly410]

Association of Private Banks: The dinar is recovering and will return strong and stable

 

 Today, 15:32

 

Baghdad - Waa

 

The Association of Iraqi Private Banks confirmed on Sunday that the dinar is recovering and will return strong and stable.

The Association's advisor Samir Al-Nasiri told the Iraqi News Agency (INA): "Our dinar is recovering and returning strong and stable," stressing that "with a close eye to the reality of monetary policy applications and the procedures of the Central Bank and its careful follow-up of the situation of the foreign currency market locally and abroad, facilitating mechanisms for entering the electronic platform for external transfer and applying international standards that allow Iraq to regularize in the global banking system and control the movement and safety of foreign currency circulation. The commitment of banks to implement the new external transfer instructions for 2023 and address obstacles has led to refuting extremist and pessimistic views that the crisis will continue, and we will be like Lebanon, Iran, Syria and Turkey when the dollar devoured the local currencies of these countries.

"Through our accurate knowledge of the monetary position of the Central Bank and its rising foreign exchange reserves, and its balance exceeded $ 110 billion, which covers up to 118% of the exported local currency, 130 tons of gold, and what is available continuously and daily from dollar revenues from oil sales, in addition to its assets of the issued national currency and available in the coffers of the Central Bank, it made it in control of the implementation of its procedures to cover the demand for the dollar in the trading market and through its various official outlets," he said. In my previous articles, the dinar will recover and the crisis is temporary despite all external and internal reasons."

He pointed out that "the bank's measures to increase the demand for the dollar, the negotiating and shuttle rounds of the governor of the Central Bank in Istanbul and Washington, the understandings reached to support the bank's measures to control foreign transfers, reform and develop the banking sector, facilitate the mechanisms of foreign transfers, government support to implement the procedures of the Central Bank, and the right decisions of the Board of Directors of the Central Bank to issue procedural packages to develop instructions, facilities and flexibility to alleviate the crisis, and its important decision to raise the exchange rate of the dinar and adjust the rate to 1300." Dinars for finance, 1310 for banks through the platform, and 1320 for the public, and the speed with which the government approved the new price and immediately started dealing with it, which led to the return of the money market to a stable situation."

He added that "one of the other main reasons that contributed to the recovery of the Iraqi debt is the rise in the sales of the currency window for foreign remittances to the target rates between (150-200) million dollars per day and the increasing entry of small traders and importers to the platform after achieving their benefit from imports at the official price and their regularity with the foreign trade system in accordance with international standards, which strengthened the position of monetary stability in the trading market, which helped bridge the gap between the official price and the parallel price."

Al-Nasiri called on "the Central Bank that the next stage will be an evaluation and analytical stage of the reasons that led to the aggravation of the crisis at the time, re-evaluation of banks and licensed and unlicensed exchange offices, classifying them in a new way and developing their work in all fields," pointing out that "its next strategy must include new policies and instructions that ensure maintaining stability in the financial system and the monetary system and achieving important steps in stimulating and enabling the banking sector to contribute to investment and development as stated in paragraph 7 of the Article twelve to reform the financial and banking sector because banking banking reform is the beginning of economic reform."

 

[rvmydinar]

1 hour ago, 6ly410 said:

Association of Private Banks: The dinar is recovering and WILL return STRONG and STABLE

Will return strong and stable? It means:

1.) " WILL " refers to the Future Tense. And it means it may happen until the end of this year 2023 or 2.....( Anyone guess )????

2.) The rate will be " STRONG " first and it means it is going to be one time STRONG RV only. And how strong is the rate going to be? Anyone guess.

3.) After one time STRONG RV only happens , the rate will remain STABLE for unlimited time.