Iraqi News Highlights Wednesday Afternoon 4-19-23
Tlm724 Administrator Bondlady’s Corner
The Iraq Stock Exchange Closes On A High, And Trading Exceeded 30 Billion Shares
Market Economy News-Baghdad The Iraqi Stock Exchange ended the week, up by 3.43%. The market mentioned in a report that the number of shares traded during this week is more than (30) billion shares, with a value of more than (17) billion dinars. The trading index in the market closed for the first session of the week at (675.12) points, while the index closed at the end of the week at (699.11) points, achieving an increase of (3.43%) from its closing at the beginning of the session. During the week, more than (2,500) buying and selling contracts were executed on the shares of companies listed in the market.
Sudanese Advisor: The Electronic Platform For External Transfer Will Combat The Flow Of Illegal Funds
Economy | 05:38 – 19/04/2023 Baghdad – Mawazine News, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Wednesday, that the indication of the Prime Minister, Muhammad Shia’ al-Sudani, that Iraq’s trade is distorted due to money laundering and smuggling, put points on the letters in diagnosing private sector financing, while pointing out that the electronic platform for external transfer has become The important remedial tool in combating the flow of illegal funds.
Saleh said to the official agency, followed by Mawazine News, that “the Prime Minister put points on the letters in highlighting the problems of financing private sector trade that were born from the wreckage of a banking system that was isolated internationally and lacked banking requirements and its legal and digital systems, including improving its performance in compliance and introducing Modern financial technology systems in an accelerated technological era, enabling it to establish international banking relations and provide risk-free commercial credit with its correspondent network of international banks.
He added, “Likewise, the banking system overcame factors left over from decades of wars, boycotts, blockades, and economic and institutional decline. Therefore, facilitating external transfers during the last two decades under the pretext of financing foreign trade for the private sector was the easiest path in strengthening opportunities for economic crime, diversity in banking violations, and breaching the law.” Including cross-border money laundering crimes by facilitating the trade finance system, which is based on soft foreign transfer.
He continued, “Also, the banking system could not return to the traditions of financing civil trade, which requires opening documentary credits with the network of correspondents from international banks, except by a small percentage that does not exceed 5%, which is a low percentage compared to (colored) documentary transfers with their impure information, which hid their problems with the world.” foreign affairs, as well as damage to the national economy under the pretext of financing trade in foreign goods and services.
And Saleh continued, “Thus, the electronic platform for external transfer has become today the important reform tool in combating the corrupt flow of illegal funds and an opportunity to improve banking performance with high competitiveness at the same time, in a way that serves the interest of the citizen and the national economy at the same time.”
The Prime Minister confirmed yesterday, during an interview with a number of television stations, that Iraq’s trade is distorted due to money laundering and smuggling, in addition to the lack of reliability in the banking system. https://www.mawazin.net/Details.aspx?jimare=224992
The Central Bank Issues New Instructions To Banks Regarding Electronic Payment
Expenses Economy News / Baghdad The Central Bank issued new instructions to adapt the conditions of all licensed banks to the requirements for the spread of point-of-sale (POS) devices.
The instructions included, according to a document seen by “Al-Iqtisad News”, reducing the merchant’s commission to be 1% fixed instead of 2% in favor of the collecting party for a period of two years, provided that it is re-examined after the return of the mentioned period or according to market requirements, and the competition is in the quality of the service provided.
It also included that financial transactions (settlements) with merchants (points of sale) be through opening bank accounts in the Iraqi dinar currency for merchants and issuing a prepaid card in the dinar currency with a ceiling of 13 million dinars, and that the amounts available in them result from sales of goods, products or services exclusively and that they are For merchants or individuals of a commercial nature, such as (kiosks, shops, street vendors, etc.)
The bank stressed that banks should develop a support service for merchants who own points of sale devices and free phone numbers for the purpose of assisting and supporting them directly and continuously and analyzing the performance of merchants on an ongoing basis through loyalty points or prizes, for example. https://economy-news.net/content.php?id=33688
Managing The Central Bank Of Iraq From The Sidelines Of The Past To The Body Of The Future
Sameer Al-Nusairi In December 2022, the book entitled (Management of the Central Bank of Iraq from the sidelines of the past to the body of the future) was published by its author, Professor Ali Mohsen Al-Alaq. The book discusses, scientifically and analytically, an important stage of the challenges that the Central Bank of Iraq experienced during the most exceptional circumstances that Iraq suffered from economically. And security and political for the period (2015-2020), which is the period in which he assumed responsibility after his appointment as governor of the Central Bank of Iraq.
This relationship deals with scientific, economic and monetary analysis, the most prominent challenges that faced monetary policy and stood as an obstacle to achieving stability in the financial system and the monetary system, and its relationship to the economic reality of the country and its rentier and its dependence mainly on oil revenues and its impact on international economic variables, especially the instability of oil prices and the deficit in non-oil revenues.
The local level and the deficit in the balance of payments and public budgets, and the central bank endured the crises that faced our national economy and bridged the deficit in the general budgets by rediscounting the treasury transfers issued by the fiscal and its effects on the decline in foreign cash reserves to the limits of 43 billion dinars in 2016.
The book includes an introduction and nine chapters. The first chapter deals with strategic planning and change management, as the goals that have emerged in central banks are the shift from control based on rules to control based on risks and the transition from the goal of fighting inflation to stimulating economic growth. The second chapter presents jobs, tools and programs.
And the criteria that aim to achieve the two objectives above and the application of prudential control standards. The third chapter includes the management of foreign central bank reserves that lead to a set of basic objectives in enhancing confidence in monetary policy and the exchange rate.
he fourth chapter includes features, determinants and indicators of the independence of the central bank. The fifth chapter deals with The topic of selling foreign currency through the window of the Central Bank, as well as the justifications, facts, and economic, legal, financial, commercial, and monetary phenomena that stand behind the window for selling currency.
Chapter Six also clarified the phenomenon of money laundering and terrorist financing in the background, risks, channels, sources and difficult conditions experienced by the central bank administration in filtering the notes of the Financial Action Task Force (FATF) and changing its classification from the gray list to the usual follow-up. Chapter Seven dealt with an overall presentation on the banking sector in Iraq as the main component. of the financial system and subject to the supervision and control of the Central Bank.
The chapter also deals with the completed strategic projects to organize and stimulate the sector and mechanisms to enhance financial stability and clearly refer to bank credit and its utmost importance in achieving economic and banking reform. Chapter Eight presents a presentation of the great efforts that spanned five years (2015-2020 ) with the International Monetary Fund to reveal basic axes and phenomena closely related to the Iraqi economy and public finance in particular and what has been achieved in the framework of economic reform and financial discipline, and the ninth chapter showed with high transparency the features of fundsIraq before and after 2003 in its overall form.
The chapter also included the debts of Iraq before and after 2003, the assets of the Central Bank and what happened in its foreign currency treasury. The chapter also included the reconciliation of Iraq’s funds for the period from 2004 to 2019 and the nature of the relationship between total revenue and total spending.
Through my careful reading of what was included in the book in nine analytical chapters for a group of topics related to monetary and financial policies, which are the two main pillars of the economic policy of Iraq, I found that Professor Al-Alaq made a great intellectual and economic effort in presenting an accurate diagnosis of the most prominent challenges, achievements, and structural, structural and technical developments in managing The Central Bank, which had a fundamental and important role in drawing the road map for the new, fifth era of the Central Bank, which began in 2015 and is still continuing with a steady approach and pace to achieve the objectives of monetary policy, support and stimulate the national economy, and achieve successful financial stability, which is the central goal of comprehensive and radical economic reform.
Professor Al-Alaq dealt with the challenges and repercussions faced by the monetary policy with clear and distinct efforts of the cadres of the Central Bank with a high patriotic spirit and keenness to make changes in the programs and policies that moved the Mercantile Bank from working methods in the twentieth century to working methods in the twenty-first century with all its insistence on Realizing the achievements made at all levels and in all banking, technical, technical and administrative fields.
In 554 pages, the book discussed the scientific, economic and monetary procedures and policies adopted by the Central Bank in achieving the goals contained in Law No. 56 of 2004. It is noted from what was mentioned in the book that the Central Bank of Iraq has proven that it is a solid sovereign financial economic institution and it is specialized in drawing paths and policies for monetary policy applications and supervision.
And control over the banking sector and is considered the financial advisor to the government, and his role was fundamental in managing the economic process in Iraq after the change in 2003, especially in periods of confusion of vision, unclear financial policies, weak coordination with monetary policy, different economic policies, and lack of clarity in the economic approach for the new construction of the national economy, except The Central Bank of Iraq and the banking sector have made great developmental strides towards the transition from banking activity to real and developmental activity, especially during the years discussed by the book.
As great achievements have been made in the field of reducing the inflation that Iraq was suffering from and bringing it to good rates for the years 2107-2019 amounting to less than 2% as indicated by financial data and indicators, and it was able to maintain for several years the exchange rate of the Iraqi dinar against the US dollar in a balanced manner within the average.
The target is despite the fluctuation and variation up and down depending on the difficult economic conditions, the financial and economic crisis due to the decline in oil prices, the war on terrorism and the speculations that occur in the markets, as it is noted that the daily intervention of the Central Bank of Iraq in managing the sale of foreign currency in light of monetary policy data despite the criticisms and observations
However, 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 in terms of local currency.
In order to face these criticisms, the bank issued instructions and controls consistent with international standards and the requirements of compliance regulations and rules through its implementation of the electronic platform for external transfer and control of the breaches that were occurring and focusing on the safety and credibility of external transfers by auditing, reviewing, evaluating and classifying banks for the purposes of the currency sale window in order to control the movement of foreign currency
And limiting its disposal other than the specific economic goals of monetary policy applications, as dealing in selling foreign currency is considered 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 stable despite the difficult economic conditions that Iraq has gone through.
The Central Bank of Iraq was also able to maintain a good foreign cash reserve, which currently amounts to about 110 billion dollars, despite the instability of global oil prices and the conditions of economic stagnation. Nevertheless, it formed a safe cover for the Iraqi dinar and to cover foreign trade according to the internationally approved standard rate.
The calculated and bold economic and financial measures 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 and allocate six trillion dinars to finance and operate small and medium projects in the sectors of housing, agriculture and industry at the time, which has developed to 18 trillion dinars now and support the liquidity of banks and achieve two economic and social goals in At the same time,
all of this was accompanied by structural and structural developmental developments in all specialized and qualitative departments of the Bank, focusing on total quality management and institutional development, adopting international standards, and adhering to rules and regulations.
Compliance, risk management, combating money laundering and terrorist financing, banking awareness, and technical developments in payment systems, electronic payment and information technology.
Therefore, this book, which is a transparent, analytical, impartial and professional documentation, stems from the national keenness of Professor Al-Alaq to highlight the bright points and areas that have emerged on the surface and achieved economic steadfastness in the most severe economic and financial crises that our country has gone through in its modern history, and the book with its nine chapters indicates efforts, transparency and disclosure The Central Bank of Iraq, which is a national action document in the economic field in Iraq that documents an important stage of economic resilience and aims to achieve financial stability and economic growth. Scientific award for its approval as part of its curricula specialized in finance and banking. https://economy-news.net/content.php?id=33673
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