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Iraq Completes The Draft Budget For 2022
Financial Adviser to the Prime Minister, Dr. Mazhar Muhammad Salih, «Economy News»
Money and business Economy News – Baghdad The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the completion of the preparation of the draft budget for next year 2022, and the calculation of the price of a barrel of oil at a rate of 50 dollars per barrel, stressing that its discussion will take place after the selection of the next government.
Saleh said in a statement reported by the official “Al-Sabah” newspaper and seen by “Economy News”, that “the budget for the year 2022 has been completed, but it was not discussed in the Council of Ministers, because the government is in the process of conducting business, and it is one of the draft laws,”
noting that “the budget will be presented The next government must confirm its observations on it, then turn to the House of Representatives, and it is expected that it will take some time to pass it until the formation of the new parliament.”
He pointed out that “the Ministry of Finance has set, according to the next budget, $50 per barrel of oil, and the rest was considered as a hypothetical deficit that will be repaid from the differences in the rise in oil prices,” noting that “the new government will have a government curriculum that may agree with the budget or not, and in the event of delay in approving it, we will adopt On the Financial Management Law 1/12 of the actual current expenditures implemented for each month for the year 2021.
In a related matter, Saleh pointed out that “raising the level of the economy depends on the volume of investment projects, as the more it increases, the more the employment rate rises and the income improves, but the most important obstacles lie that the volume of investment in Iraq is weak and the budget is absorbed by the operational part.”
He added, “The activation of the Public-Private Partnership Law is presented to the House of Representatives, and in the event it is activated, many state projects will turn to partnership with the private sector or foreign companies, and thus will improve the economy in various fields, and there will be a large business movement.”
And he indicated that “this model of laws exists in the world, and there is a global statistic indicating that 28% of the world’s investments are from this type of partnership,” noting that “Iraq needs a partnership in implementing projects to move its economy and vaccinate it with major companies and global expertise.”
Saleh expected, “The economy will recover during the next five years, and crude oil production will exceed 6 million barrels,” explaining that “the Iraqi economy will coexist strongly with the cycle of oil assets, as global demand for hydrocarbons will increase with the high growth rates in the global economy and the entry of the epidemic represented by the Corona pandemic. the sluggish cycle, and inversely to the growth of energy markets. Views 103 Date Added 10/13/2021 https://economy-news.net/content.php?id=26576
The Second Central Bank Strategy (2021‐2023) An Approach To Monetary And Financial Reform
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 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 247 Date Added 10/13/2021 https://economy-news.net/content.php?id=26573
The International Monetary Expects Significant Growth In The Iraqi Economy And A Decline In Inflation In 2022
Money and business Economy News _ Baghdad The International Monetary Fund expected a significant growth in the Iraqi economy to reach 10.5 percent in 2022, and a decrease in the inflation rate to 4.5 percent.
The fund said in its annual report for the month of October 2021 on its economic forecasts, which was seen by “Al-Iqtisad News”, that the gross domestic product is expected to grow significantly, outperforming all oil-producing countries, to reach 10.5 percent, compared to 3.6 percent in 2021 and 15.7. percent in 2020.
The fund added that the inflation rate in Iraq is expected to decrease in 2022 to 4.5 percent from 6.4 percent in 2021, after recording 0.6 percent in 2020.
And the IMF reduced its estimates of the current account balance for Iraq, suggesting that it would decline to 4 percent this year from 6.2 percent, compared to -10.8 percent in 2020.
The Fund reduced its forecast for global growth in 2021 to 5.9 percent from 6 percent in July, while keeping its previous forecast for global growth in 2022 unchanged at 4.9 percent.
The Fund has trimmed its growth estimates for the United States and other major industrial countries this year, noting that supply chain bottlenecks and inflation pressures are constraining the global economy’s recovery from the Covid-19 pandemic.