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The Government Decides To Fix The Exchange Rate In The 2022 Budget
Iraqi Government Spokesman/Minister of Culture Hassan Nazim. “Internet”
Money and business Economy News – Baghdad The official spokesman for the Prime Minister, Hassan Nazim, confirmed that the exchange rate of the dollar against the Iraqi dinar in the draft law on the general federal budget for the country for the year 2022 is fixed and there is no change in it.
Nazim said, in a statement reported by the official “Al-Sabah” newspaper and seen by “Al-Iqtisad News”, that “increasing the dollar exchange rate is an idea that has been discussed for years, and a previous government did not dare to take this step because of the risks and controversies surrounding it.”
He added, “Al-Kazemi’s government was bold in taking this decision, as it was in the interest of the Iraqi economy, and in the reform economic vision of the Ministry of Finance, as it presented this idea within the reforms of the white paper and won acceptance and extensive discussion.”
And he indicated that “the government always takes steps to support goods and materials whose prices have risen, and has developed solutions and taken decisions regarding them, but the idea of the dollar exchange rate is not retracted in this government, and I do not think that the 2022 budget will change this price, since this government is the one who will set the budget for next year.” “.
He continued, “The government at one time was not reassured of its ability to pay the salaries of employees, but with its policy it crossed this crisis and the increase in oil prices came as a catalyst, and even if oil prices increase, there will be big problems unless there is a wise management of the financial resources coming from exporting.” raw.”
And he indicated that “there is a kind of rise in the foreign reserve, and there is no abundance as a result of the accumulated deficit, and therefore any financial increase through which the government will try to fill the deficit with it, and we are not talking about existing surplus funds that we park here and there, but rather we are trying, within the reform white paper, to control the economy and make it dynamically developed. Views 184 Date Added 09/06/2021 https://economy-news.net/content.php?id=26215
Finance Committee: The Budget Deficit Has Been Fully Covered
Member of the Finance Committee, Ahmed Al-Saffar Money and business Economy News – Baghdad The Parliamentary Finance Committee announced covering the deficit in the 2021 budget.
The committee’s rapporteur, Ahmed Al-Saffar, said in a statement to state television, which was seen by “Al-Iqtisad News”, that “the budget deficit is a planned deficit that was covered when oil prices crossed the $65 per barrel barrier.”
In another context, Al-Saffar pointed out that “the investment budgets spent annually range between 5-10%.”
He added that the investment budget is set by the Ministry of Planning, while the operational budget is prepared by the Ministry of Finance, which is almost fixed expenses related to wages and salaries.
Views 132 Date Added 09/06/2021 https://economy-news.net/content.php?id=26219
Reforming The Private Banking Sector According To The Central Bank’s Methodology Stimulates The Economy
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 for reforming the banking sector in the medium and long term between 3-5 years, and it is in fact an accurate diagnosis of problems that have already been diagnosed. By the Central Bank and the World Bank, and it has already developed solutions and urgent and strategic mechanisms for it, as is clear 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 , as follows: –
First – Pave the way for private banks to take their role as levers of the economy and end the role of government banks as an arm of bank financing.
Second – Addressing defaults in banks, the forced merging of troubled banks, and restoring confidence with the public.
Third – Providing the appropriate environment to encourage banks to lend to stimulate the economy. Practicing the real business and not relying entirely on the currency window, guarantee fees and other banking fees.
Fourth – Completion of the application of international accounting standards (IFRS) and the development of banking work using modern banking techniques.
Therefore, the reform goals were based on detailed diagnoses of the current problems and obstacles that banks suffer from, which stand in the way of achieving the goals of reform. Since the issuance of the white paper, the Central Bank has begun to take measures to reform the banking sector since November of last year, according to its plan based on its strategy for monetary policy applications for that.
The Bank issued lending initiatives to stimulate the economic cycle and activate the financing of small, medium and housing projects and to move at a confident pace to move the banking business from the banking role to the developmental role.
The urgent procedures and solutions for banking reform can be identified as I see them as follows:-
First – making decisions on financial policy to restore balance between government banks and private banks in terms of capital, activity, and tasks, and focus on starting the structuring of the Rafidain and Rasheed Banks, according to what was stated in agreement with the World Bank several years ago.
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 the 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 starting to rehabilitate troubled banks and study 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 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 dollar supply 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.
It is worth noting that without controlling imports, these sectors will not rise, because without support for the domestic product, the demand for the dollar cannot be reduced.
Fifth – It is necessary to provide a legal environment and extend the authority of the law in order to eliminate the phenomenon of default in the repayment 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 issued to support the banking sector, in particular private banks, to open accounts for ministries and government departments, accept certified instruments, and open 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 other decisions Concerning borrowing for investment projects, collecting taxes and customs fees, and settling salaries.
Because on the contrary, it will obstruct the work and activities of private banks and greatly affect their liquidity, revenues and deposits, and delay the transition of banks from the role of banking to the developmental role as established in the white paper.
Seventh – Considering the bad debts cases owed by customers in private banks are urgent cases and excellent debts, similar to government debts.
Eighth – Working to provide conditions and take measures to help private banks obtain the internationally approved credit rating, and thus strengthen international banking relations with correspondent banks.
* Banking expert Views 116 Date Added 09/06/2021 https://economy-news.net/content.php?id=26212
A Slight Increase In The Exchange Rates Of The Dollar In The Local Markets
Economie| 10:48 – 06/09/2021 Special – Mawazine News The dollar exchange rates witnessed, on Monday, a slight increase in the main stock exchange and local markets in the capital, Baghdad.
And the correspondent of “Mawazine News” in the capital stated, “The exchange rate of the dollar on the Central Kifah Stock Exchange in Baghdad, today, witnessed a slight increase from the prices recorded yesterday, which amounted to 147,350 dinars, for each paper denomination of 100 dollars.
Our correspondent added, “The exchange rates of The dollar in exchange companies and local markets in Baghdad witnessed relative stability, as the selling price reached 148000 thousand dinars, for each paper denomination of 100 dollars, while the purchase price amounted to 147,000 thousand dinars, for each paper denominations of 100 dollars. https://www.mawazin.net/Details.aspx?jimare=166385
The Central Bank’s Hard Currency Sales Exceed $229 Million
Economie| 01:16 – 06/09/2021 Baghdad – Mawazine News, the Central Bank of Iraq’s sales of hard currency rose, on Monday, to exceed $229 million.
Today, the Central Bank’s auction of buying and selling foreign currencies witnessed an increase in its sales by 1.78% to reach 229 million, and 923 thousand and 17 dollars.
The purchases amounting to 180 million and 683 thousand and 17 dollars went to enhance balances abroad in the form of remittances and credits, while the remaining amount of 49 million and 240 thousand dollars went in cash.
35 banks responded to requests to enhance balances abroad, 17 banks to meet cash requests, in addition to the participation of 18 exchange companies. https://www.mawazin.net/Details.aspx?jimare=166413