IRAQ: SUMMARY OF ACCOMPLISHMENTS FOR OCTOBER 2024 PERIOD: BY MNT GOAT, 23 OCT

 IRAQ: SUMMARY OF ACCOMPLISHMENTS FOR OCTOBER 2024 PERIOD:

• Announced that removing zeros from the local currency is a process that has taken place in more than 60 countries over the past years,” said Mazhar Mohammed Saleh, the Prime Minister’s financial advisor. “This step comes after economic inflation occurs in countries, and therefore they resort to deleting zeros in order to keep up with prices in the markets,” he explained. 

• The Trade Bank of Iraq announced the opening of the cash deposit center in the Karkh side. He explained that “this center receives all cash deposits onlyfor all customers,” indicating that “this is a new service that the bank will launch with the aim to contribute to reducing the pressure of cash deposits on its other branches in Baghdad.

• The Central Bank of Iraq decided to close the Babylon Bank. Refer the bank to forced liquidation based on the provisions of Article No. 69 of Banking Law No. 94 of 2004. The reorganization of the banks. Some were merged or liquidated, as my CBI contact told us was coming.

• At the start of 2024, the Cabinet approved a contract with UK-based professional services firm Ernst & Young (EY) to study the merger of Industrial Bank, Real Estate Bank, and Agricultural Bank [Agricultural Cooperative Bank into a single entity.

• The Governor of the Central Bank, Ali Al-Alaq, announced today, Wednesday, the success of the digital transformation and electronic payment plan in Iraq, while stressing that digital banks will allow citizens to manage their operations through the phone.

• The Prime Minister stressed that the government  has made great strides in the financial and banking reform file, and 95% of bank transfers have been completed through the electronic platform, and less than 5% remains to be completed by the end of this year,

• Iraqi Prime Minister Mohammed Shia al-Sudani announced that Iraq will switch to a correspondent banking system to conduct 100% of foreign transfersearly next year. Currency auctions end the end of 2024.

• MP Sharif Suleiman praised, on Tuesday, the visit of Prime Minister Mohammed Shia al-Sudani to New York to participate in the 79th session of the United Nations, stressing that Iraq is qualified to control “important” files and is on the verge of “major” economic changes and an urban revolution in line with global developments. 

• Al-Sudani on the sidelines of the United Nations General Assembly to discuss reforming the Iraqi banking sector, financial relations with the United States, and combating illicit financing.” According to the statement, “presented to al-Sudani the significant progress made by Iraq in reforming the banking sector, which has led to expanding Iraq’s international financial outreach and increasing financial inclusion.”
• Prime Minister Mohammed Shia al-Sudani expressed, on Thursday, Iraq’s readiness to enter into a partnership with American companies in the oil industry sector , revealing at the same time his government’s intention to establish a new Iraqi bank.

• PM Al-Sudani participated in a dialogue session held in New York by the American Chamber of Commerce and Al-Monitor, in the presence of an elite group of investors, businessmen, representatives of American companies, and the Iraqi-American Business Council. His Excellency pointed to the new reality of Iraq, which is witnessing an economic and developmental renaissance in all its sectors, and has also taken great strides in the field of energy investment and associated gas.

• The revealing the drafting of an integrated draft law to regulate electronic payment operations.

• Advisor to the Prime Minister and Chairman of the Supreme Committee to Support the Iraqi Dinar, Qasim Al-Dhalimi, announced the committee’s success in restoring the citizen’s confidence in the dinar, while indicating that it provided mechanisms to preserve the solidity of the dinar and the financial bloc.

• The Securities Commission announced the launching of its new website to promote investment in Iraq. While it indicated that an agreement had been concluded with Egypt to update the electronic trading system, it confirmed the development of a strategy to transform Iraq into a regional investment center.

• As part of its financial reform efforts, Iraq’s Cabinet has approved the allocation of 4 billion dinars [$3 million] to the Iraqi Securities Commission for the modernization and maintenance of electronic systems used for stock and bond trading.

• The Patriotic Union of Kurdistan confirmed that it is working to support and assist the disputed areas and is  working to activate Article 140 of the permanent Iraqi constitution and implement all its paragraphs

• Iraq increased its gold holdings to 152.6 tons, after its gold holdings were 148.3 tons, which represents 11% of its remaining reserves.

• The Undersecretary of the Ministry of Oil for Refining Affairs, Hamid Younis, announced the start of aviation fuel export operations from Iraqi ports.  He pointed out that the export process is a step in the right direction, to enhance Iraq’s role globally among the countries producing and exporting oil and its derivatives.

• The Central Bank of Iraq told Kurdistan that the agreement concluded between the Kurdistan Regional Government and the federal government obliges all employees to open bank accounts. That employees who do not open a bank account and do not register in the “Hesabi” project until March 2025, will not be able to receive their salaries.

• The Supreme Committee for Digital Transformation, headed by Prime Minister Mohammed Shia Al-Sudani, approved the strategic plan for digital transformation.

• Rafidain Bank announced that the number of effective and completed branches of the comprehensive banking system has reached 44 branches, distributed in Baghdad, Anbar, and Najaf, in addition to the border crossings of Zurbatiyah, Safwan, Arar, and Trebil.

• The results during 2023 and 2024 recorded a qualitative leap in the volume of transactions in electronic payment operations and the use of modern banking technologies. The rate of digital transformation and electronic payment increased to 48.5% compared to 20% in the past years.

• The Securities Commission announced today, Thursday, the signing of an agreement with the International Finance Corporation to develop the Iraqi market, and while it indicated the preparation of a guidebook to raise the transparency of companies, the new website of the Iraqi Stock Exchange will cover spot stock prices and is a qualitative leap.

• T he Iraqi Securities Commission revealed a project with the Qatar Stock Exchange that will allow for the joint establishment of companies, leading to “dual listing” that will allow the listing of Iraqi shares in both the Iraqi and Qatari markets.

• Indicated that the meeting coincides with the launch of financial transfers to Turkey, according to a new mechanism carried out in the euro currencyand implemented within Turkey through its banks.

• The Ministry of Finance said in a statement received by the Iraqi News Agency (INA): “The World Bank issued the Business Ready 2024 (B-READY) report, which showed that Iraq is witnessing a major transformation in improving the business environment and public services, which has made it competitive globally.

• The digital transformation process in the Iraqi banking sector, which is proceeding at an accelerating pace, coincides with the emergence of so-called digital banks, which are a new experience for the entire world. The CBI received about (60) to (70) requests to work with digital banks

• Iraq has become an economic power that should not be underestimated, and has all the qualifications and capabilities to join the World Trade Organization (WTO) after completing all preparations for that.

• Council of Ministers approves the National Strategy for Bank Lending in Iraq on 8/18/2024, which was launched by the Central Bank on 5/25/2024,  CBI makes a clear announcement of the beginning of the actual phase of implementing its third strategies for banking reform, which includes the national strategy for lending, environmental and social standards, and corporate governance for banks.

• CBI draws a clear roadmap  in agreement with the global Oliver Wyman Company to start developing the banking sector.

• The Federal Court interprets the phrase Iraq is fully sovereign in the Constitution Today, Tuesday (October 8, 2024), the Federal Supreme Court issued a decision that included the interpretation of the phrase (fully sovereign) contained in Article (1) of the Constitution of the Republic of Iraq for the year 2005.

• The US Energy Information Administration announced that Iraq exported more than 54 million barrels of crude oil and its derivatives to the United States during seven months of the current year.

• The Parliamentary Finance Committee is expected to discuss the 2025 budget next November, amid a general trend to pass it easily and not amend it significantly.

• Finance Minister Taif Sami Mohammed stressed, on Thursday, the need to adhere to timetables to achieve economic reforms, as outlined in the strategies.

• The Parliamentary Finance Committee expected, on Sunday, that non-oil revenues in the 2025 budget would reach 30 trillion dinars, represented by electricity collection, taxes, and revenues from the Baghdad Municipality and all municipal departments

• The International Labor Organization confirmed on Wednesday that the current government has developed programs and policies that help facilitate the transition to the formal economy.

• The Prime Minister stressed that “the government has regained citizens’ confidence, which is an important achievement that must continue, especially in the service sector,” noting that “infrastructure projects are a priority for the government, and it is imperative to complete them, especially the stalled ones.”

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