Tidbits From TNT” Wednesday Morning 10-13-2021
Tishwash: The International Monetary Expects Significant Growth In The Iraqi Economy In 2022
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 Outlook, Which Was Seen By Al-Ahd 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 It Recorded 0.6 Percent In 2020”.
The IMF Lowered Its Estimates For The Balance Of Iraq’s Current Account, Suggesting “It Will Decline To 4 Percent This Year From 6.2 Percent, Compared To -10.8 Percent In The Year 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 Coronavirus Pandemic. link
Tishwash: The Second Central Bank Strategy (2021‐2023) An Approach to Monetary and Financial Reform
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 cash 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 link
Tishwash: The Commission: 20 days to announce the final results of the elections
Yesterday, Tuesday, the Independent High Electoral Commission announced the opening of appeals against the election results, while it expected the final results to be announced within the next 20 days, indicating that the preliminary results announced on Monday are subject to change.
The Prime Minister, Commander-in-Chief of the Armed Forces, Mustafa Al-Kazemi, visited the Joint Operations Command, and was briefed on the progress of procedures for protecting warehouses and ballot boxes.
Al-Kazemi indicated, according to a statement by his office, to the success of the security plan, and to taking all required precautions during the electoral process, which was held for the first time without imposing a curfew, and did not witness any abuses or threats.
The Commander-in-Chief of the Armed Forces praised the efforts of the security forces in providing electoral security without any incidents or security breaches, and praised the impartiality of the Supreme Security Committee, which dealt with the elections in a high patriotic spirit without any bias.
He directed the security leaders to complete their duties in protecting the ballot boxes and the commission’s warehouses, in addition to their duties in protecting the country and citizens from the threat of terrorism.
In addition, a spokeswoman for the Independent High Electoral Commission, Jumana al-Ghalay, said: “The person affected by the decision of the Board of Commissioners to announce the preliminary results of public and private voting, has the right to appeal that decision according to the Commission Law No. 31 of 2019, Article 20, which gave the party the right to appeal. Politician or candidate by decision of the Board of Commissioners within 3 days, starting from the day following the publication of the election results.
She added that “the aggrieved person has the right to submit an appeal to the national office, the governorate office, any electoral office of the commission, the office of the region’s authority, or directly to the judicial body.” She pointed out that “the Board of Commissioners responds to the requests of the Judicial Authority for Elections, and its inquiries regarding appeals, within a period not exceeding 7 working days from the date of its receipt.”
And she stressed that “the judicial authority for elections will decide on the appeal submitted within a period not exceeding 10 days from the date of the response of the Board of Commissioners to the appeal.”