Financial disclosure and transparency is a strategic approach for the Central Bank
Samir Al-Nusairi
In the past few days, officials in financial and monetary policy were surprised by the statements of some unspecialized analysts and unspecialized media outlets about the crisis of the lack of liquidity in the Ministry of Finance and the Central Bank and the impact of this on delaying the securing of salaries of employees, retirees and social care.
The truth is that there is absolutely no such crisis, and this is what the Ministry of Finance and the Central Bank confirmed.
Central banks in the world's countries aim primarily to achieve economic stability by achieving monetary and financial stability according to their programs and strategies that aim to maintain stability in the exchange rate of their local currencies against other foreign currencies and build sufficient foreign reserves according to special international standards.
Banks are also evaluated based on other standards related to facing crises, challenges and economic and political shocks in their countries and controlling stable rates of inflation and interest rates and implementing compliance systems and rules and combating money laundering and terrorist financing.
The Central Bank of Iraq's journey during 2023 and 2024 has proven that it is moving steadily towards achieving the objectives of monetary policy and with a consistent and strategic approach that relies on transparency and disclosure of financial data and dealing with international financial organizations and institutions, based on the keenness to restore confidence in international banking transactions, which Iraq suffered from in previous years due to reputational risks and the negative media impact towards harming the Iraqi economy and leaking inaccurate and fabricated data, information and statements intentionally or by relying on data from other than its official source, which is the Central Bank exclusively.
This led the Central Bank's management, which assumed responsibility in 2023, to draw up its third strategy, and one of its most prominent main and sub-goals was to adopt transparency and disclosure locally and internationally about the progress of the results achieved by the financial and banking sector and adherence to the standard international standards applied by reputable international banks, which led to the creation of a new and balanced relationship with international banks and banking institutions based on trust in the financial data provided and announced by the Central Bank.
This is what he announced from statistics, data and accurate analyses of what was achieved during the past two years. These are positive indicators achieved by the Central Bank for the third quarter of 2024 compared to the same period in 2022 and 2023, as the total deposits in banks operating in Iraq grew by (4.2%) and amounted to (127.6) trillion dinars, compared to its value of (122.4) trillion dinars in the third quarter of 2023, and the cash credit granted by operating banks also recorded a growth of (11.6%) and amounted to (72.7) trillion dinars, compared to its value of (65.1) trillion dinars in the third quarter of 2023.
Indicators and data showed that the narrow money supply in Iraq recorded a growth of (4.1%) in the third quarter of 2024, as its value reached (158.6) trillion dinars, compared to its value of (152.4) trillion dinars in the third quarter of 2023. In contrast, the broad money supply in Iraq recorded a growth of (3.3%), as its value reached (179.1) trillion dinars, compared to its value of (173.9) trillion dinars in the third quarter of 2023.
The Central Bank's gold reserves also recorded a significant growth of (57%) in the third quarter of 2024, reaching (16) trillion dinars, compared to (10.7) trillion dinars in the third quarter of 2023, and the annual inflation rates in Iraq are among the lowest annual inflation rates in the countries of the region for the months of August and September of 2024, ranging between (3.1%) and (3.7%) respectively, which reflects price stability and the success of monetary policy in Iraq.
This confirms that the data issued by the Central Bank, published on its website and included in all media releases it issues, refute what is stated by non-specialists, such as representatives and analysts in various media outlets, especially regarding liquidity, reserves and salaries.
Through my analysis as a follower and specialist, I believe that the Central Bank’s disclosure of financial data with the required accuracy will greatly help restore confidence in our national economy and the Iraqi banking sector locally and internationally, because disclosure, transparency and credibility will contribute to restoring confidence in the Iraqi banking sector and raising the rate of financial inclusion. link