Wednesday, September 18, 2024
DINAR REVALUATION REPORT: Challenges and Opportunities for Iraqi Private Banks and Banking Reform 2024, 18 SEPT
Challenges and Opportunities for Iraqi Private Banks and Banking Reform 2024
As of September 18, 2024, the Iraqi private banking sector faces significant challenges amid opportunities for reform. These challenges include a weak banking infrastructure, political instability, and a lack of regulatory frameworks that can hinder the growth and development of private banks [1]. However, the current economic rebound and declining inflation present opportunities for the banking sector to play a pivotal role in the country's economic diversification and growth [2].
Current Challenges
Weak Banking Infrastructure
The private banking sector in Iraq is underdeveloped and heavily reliant on state-funded projects [5]. This reliance on government funding can limit the banks' ability to innovate and compete in the market, leading to a lack of trust from both domestic and foreign investors.
Political Instability
Political dynamics in Iraq have hindered the modernization of the financial and banking sectors [1]. The presence of non-democratic and armed forces in the country's political landscape and the ongoing conflict have created a challenging environment for the growth of private banks.
Lack of Regulatory Framework
The absence of a robust regulatory framework has also impeded the development of the private banking sector. This lack of oversight can lead to poor governance, corruption, and a lack of transparency, all of which are detrimental to the health of the banking sector.
Opportunities for Reform
Economic Rebound and Declining Inflation
The strong economic rebound and the decline in inflation to 4 percent by the end of 2023 have created a favorable environment for the expansion of the private banking sector [2]. This economic stability can encourage investment in the sector and provide a solid foundation for banking reform.
Support from International Organizations
The World Bank and other international organizations have extended their support to the Iraqi government to pursue private sector development [3]. This assistance can provide the necessary resources and expertise to implement reforms and strengthen the private banking sector.
Interest in Economic Diversification
The Iraqi government's interest in economic diversification presents an opportunity for private banks to expand their role in financing non-oil sectors [5]. This diversification can reduce the country's dependence on oil revenues and create a more stable economic environment for the banking sector.
Potential for Foreign Investment
The Baghdad Alliance to Support the Private Sector and other initiatives aimed at attracting foreign direct investment can provide a boost to the private banking sector [5]. Foreign investment can bring in much-needed capital and expertise, helping to strengthen the sector and promote economic growth.
SWOT Analysis of Iraqi Private Banks
To further understand the challenges and opportunities for Iraqi private banks, a SWOT analysis can be conducted. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats [1].
Strengths
•
Strong economic rebound
•
Declining inflation
•
Support from international organizations
•
Interest in economic diversification
•
Potential for foreign investment
Weaknesses
•
Weak banking infrastructure
•
Political instability
•
Lack of regulatory framework
•
Corruption and lack of transparency
Opportunities
•
Economic diversification
•
Foreign investment
•
Support for private sector development
Threats
•
Dependence on oil prices
•
Regional conflicts
•
Security threats
This SWOT analysis highlights the challenges and opportunities for Iraqi private banks and banking reform in 2024. While the sector faces significant obstacles, there are also opportunities for growth and development. By addressing the weaknesses and threats, the private banking sector can capitalize on the strengths and opportunities to contribute
to the country's economic stability and growth.
Conclusion
In conclusion, the Iraqi private banking sector faces a complex landscape of challenges and opportunities as of September 18, 2024. While the weak banking infrastructure
, political instability, and lack of regulatory framework pose significant obstacles, the economic rebound, declining inflation, and support from international organizations present opportunities for reform and growth. By
addressing these challenges and capitalizing on the opportunities, the private banking sector in Iraq can
play a critical role in the country's economic
diversification and stability.
Al-Nusairi Identifies The Challenges Of Iraqi Private Banks And Opportunities For Banking Reform, 18 SEPT
Expenses Economy News – Baghdad Iraqi private banks suffer from many challenges and obstacles to work, and they also face crises and wide risks due to economic instability due to the challenges of instability in the financial and monetary system, deficiencies in the investment environment, and deficits in the balance of payments and the trade balance.
Iraq includes eight government banks, and the structure of the Iraqi private banking sector consists of 32 Islamic banks and 28 commercial banks.
Advisor to the Iraqi Association of Iraqi Private Banks, Samir Al-Nusairi, told Al-Iqtisad News,
“The number of private bank branches is approximately 500 branches inside and outside Iraq, which have expanded and developed technically in accordance with modern electronic banking systems.”
Al-Nusairi pointed out that the private banking sector in Iraq faces business challenges in addition to the above, most notably the US sanctions and restrictions imposed on 51% of the total private banking sector in Iraq and preventing 28 of its banks from using the US dollar in banking transactions, which affected their local and international activities and harmed the economy. National.
He explained that the most important obstacles facing banks currently are
technical, financial and administrative, especially in the
procedures, instructions and decisions of digital transformation,
which requires providing full support for this transformation process and the use of electronic payment tools in governmental, mixed and private institutions, and setting a time limit for the complete transformation from the use of paper cash to electronic payment..
He added that the private banking sector suffers from differentiation between it and the government banking sector, as government banks account for 87% of total deposits and 78% of total assets.
It also suffers from weak activity and low liquidity, deposits, revenues and profitability in most banks, especially the 32 banks that issued Penalties and restrictions against them, in addition to the decline in the shares of most banks in the trading market in the Iraqi Stock Exchange.
Al-Nusairi added that private banks also suffer from double taxation, as the tax department in the Kurdistan region of Iraq, for example, imposes on the branches of private banks in the region (the number of which exceeds 70 branches) to pay the annual tax, while these banks, in accordance with the applicable Federal Tax Authority law, pay the same tax centrally. In Baghdad.
Al-Nusairi stressed the need for the Iraqi Council of Ministers to resolve the issue in the region and put an end to double taxation, and for tax collection to be centralized according to the law and for the final audited accounts submitted to the General Authority for Taxes to be approved as a basis for tax accounting.
The advisor to the Iraqi Private Banks Association called for “implementing the seven decisions issued on 4/4/2024 in implementation of the directive of Prime Minister Muhammad Shiaa Al-Sudani regarding supporting our private banks, which confirms the government’s vision in its governmental approach to financial and banking reform, as well as activating and accelerating the implementation of the agreements made in the rounds of negotiations.” between the Central Bank and the US Treasury in Washington and Baghdad to lift US restrictions on the use of the US dollar.”
He explained, “The Prime Minister’s decisions in support of private banks laid out the executive procedures for comprehensive reform of the banking sector, which constitutes the basis and true beginning of successful economic reform.
These decisions included the following:
1- Preventing monopoly in banking services.
2- Activating the Central Bank’s financing initiatives.
3- Increasing cooperation between private banks and the Central Bank in discussing decision-making related to supporting and developing banking work.
4- Determining the contribution of foreign capital to Iraqi banks.
5- Participation of government institutions and financial funds with private banks and expansion by opening branches in countries
The other.
6- Government and Central Bank support for private banks in foreign institutions and banks.
7- Increasing reliance on private banks by the Iraqi state and activating the deposit of government deposits and government bank deposits with private banks.
Al-Nusairi stressed that implementing the decisions, which are practical applications to motivate private banks to develop their internal and external banking operations in a way that contributes to economic reform, pointing out
“the importance of the Central Bank accelerating procedures to rehabilitate and restructure these banks, as well as the necessity of the international auditing company completing its agreed-upon work in order to raise Limitations and restrictions imposed. He concluded his speech by saying:
"This file is certainly the focus of attention of the government, the Central Bank, the Association of Iraqi Private Banks, and the banking sector in general." https://economy-news.net/content.php?id=47683
RV UPDATE BY WOLVERINE VIA RUBEM BAZ, 18 SEPT
Tuesday September 17, 2024
RUBEM BAZ: SAYS
Good night!
I apologize for the delay.
At 3:30 p.m. Brazilian time.
This was the last procedure between Brazil and Reno (USA)
Tomorrow, after 11:00 a.m., invitations to go to the bank will be sent.
Provide proof of life.
48:00 hours later it will take possession of Liquidity again.
This portion is 1%.
Finally there is nothing left to do.
Payments will now begin.
Thank you!
Good night!
Blessings
wolverine
TRANSLATE IN SPANISH
Martes 17 Septiembre 2024
RUBEM BAZ : DICE
¡Buenas noches!
Pido disculpas por la demora.
A las 15:30 hora brasileña.
Así fue el último trámite entre Brasil y Reno (EE.UU.)
Mañana, después de las 11:00 horas, se enviarán las invitaciones para ir al banco.
Proporcionar prueba de vida.
48:00 horas después volverá a tomar posesión de Liquidez.
Esta porción es del 1%.
Finalmente no queda nada por hacer.
Los pagos ahora comenzarán.
¡Gracias!
¡Buenas noches!
Bendiciones
Wolverine
LATEST FROM TEXAS SNAKE, 18 SEPT
TEXAS SNAKE
I am hearing any time between now and Sunday 9/22.
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" I WAS JUST ADVISED TO BE ON ALERT FOR THE NEXT 24-48 HOURS" BY TEXAS SNAKE, 1 SEPT
TEXAS SNAKE
- Fri. 30 Aug. 2024 Texas Snake
- “I was just advised to be on alert for the next 24-48 hours as news we expect was about to be released.”
TEXAS SNAKE
- Tues. 27 Aug. 2024 Texas Snake: “I can confirm Farm Claim payments as well. There is positive movement.”
TEXAS SNAKE
Will read all your posts and hopefully the banker will have something positive I can share with y'all tomorrow.
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TEXAS SNAKE
Nothing to share just wanted to let you folks I was still around
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TEXAS SNAKE
Well folks everything remains very positive for our anticipated event so continue to pray this event in for the sake of the world's economy as well as each of us participants. GOD Bless each member.
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TEXAS SNAKE
Banker indicates many positive items are pointing to Thursday, we shall see.
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TEXAS SNAKE
AUGUST 03
love this room now, Leaves TS to be free to speak, admins never jump in cause issues and people have continued to come in and all seem to keep to the subject, truly the room has become what we all wanted it to be.
It is presently 3:10 AM in Bagdad Monday morning and additional info is coming forward over and above what was shared on the Conf Call I was included in last night. Still very encouraged about tomorrow in US as well as this coming week.
You are correct it will be Monday when the banker calls me in the morning.
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Well foiks truly wish I had something to report but with all the NDA;s being issued it is much harder to obtain anything of value.
AUGUST 07
Things are in positive motion folks hang in there, NDA's are the issue at present for status of our benefits to be realized but it is days not months
AUGUST 09
Texas Snake, [08/09/2024, 9:13:08 p. m.]:
While due to the many NDA's that those who have provided info to me has resulted in the limited info I can share we are still in a positive situation to realize our objective. Wish I could share more of the particulars but cannot risk their safety.
Gonna be an early night forme as I need tp prepare a men's breakfast for our church in the morning but will open for a bit for you folks to share anything you may have.
LATEST REPORTS OF TEXAS SNAKE:
RV UPDATE BY TEXAS SNAKE, 4 AUGUST
https://dinarevaluation.blogspot.com/2024/08/rv-update-by-texas-snake-4-august_01843290374.html
RV UPDATE BY TEXAS SNAKE, 2 AUGUST
https://dinarevaluation.blogspot.com/2024/08/rv-update-by-texas-snake-2-august.html
"WE ARE CLOSER EACH DAY" BY TEXAS SNAKE, 1 AUGUST
https://dinarevaluation.blogspot.com/2024/08/we-are-closer-each-day-by-texas-snake-1.html
DINAR GURUS HIGHLIGHTS!!, 18 SEPT
Summary
Iraq’s financial reforms are progressing, with key updates from various experts indicating a shift towards digital payments and a stronger dinar.
Highlights
- 🦅 Frank 26 reports Alak is actively discussing banking reforms and digital currency growth.
- 💳 Militia Man emphasizes the shift to electronic payments and financial inclusion in Iraq.
- 📈 Mark Z notes fluctuating bank rates, hinting at system priming.
- 🌍 Mountain Goat highlights Iraq’s resilience in facing global economic challenges.
- 🔒 Claire reassures that salaries are secured despite oil market fluctuations.
- 🏦 Mark Z confirms that new lower denominations have likely been printed.
- 🌟 Militia Man believes in a stronger dinar, aligning with citizens’ expectations.
Key Insights
- 🔍 The focus on digital currency is crucial for Iraq’s monetary reform, promoting international recognition and stability. This shift could enhance economic growth and investor confidence.
- 🌐 The increase in electronic payment points from 7,000 to 30,000 signifies a robust move towards financial inclusion, indicating a potential transformation in how citizens engage with banking services.
- 📊 Fluctuating bank rates suggest that the financial system is undergoing adjustments, possibly preparing for significant changes that could lead to currency revaluation.
- 🌱 The reported 6% growth in non-oil GDP indicates diversification efforts in Iraq’s economy, reducing dependency on oil revenues and fostering a more resilient economic structure.
- 💼 The assurance of salary security amidst oil price volatility reflects the government’s commitment to economic stability, which is crucial for public trust and social cohesion.
- 🧾 The confirmation of printed lower denominations suggests imminent currency reform, which could enhance liquidity and facilitate more transactions within the economy.
- 🔗 Citizens’ belief in a stronger dinar indicates growing confidence in Iraq’s economic future, essential for fostering a positive outlook and encouraging investments.
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