Central Bank of Iraq Fines Banks and Exchange Companies 128 Billion Dinar, 19 nov
In an unprecedented regulatory move, the Central Bank of Iraq has imposed hefty fines totaling 128 billion Iraqi dinars on banks and exchange companies. The fines have been levied due to various infractions spotted by the financial watchdog. What the exact nature of these violations is, remains to be detailed. However, such actions usually stem from activities that stray from the country’s legal and regulatory frameworks managing financial operations.
Commitment to Financial Integrity
The Central Bank’s recent measures clearly reflect its unwavering commitment to upholding the integrity of Iraq’s financial system. The imposed fines serve as a stern reminder to all financial institutions about the importance of strict adherence to established rules and regulations. It signifies the Central Bank’s proactive approach in ensuring that the financial entities operate within the set legal boundaries.
Implications for the Financial Sector
These penalties are expected to have far-reaching implications for the financial sector of Iraq. The fines are not just punitive measures, they also function as preventive actions designed to discourage potential future violations. The enforcement of these fines sends a clear message to all financial entities about the serious consequences of flouting established regulations.
Strengthening the Financial Foundation
By taking such stern measures, the Central Bank of Iraq is demonstrating its dedication towards strengthening the financial foundation of the country. Ensuring compliance with regulatory norms is vital for maintaining trust in the financial system, thereby promoting economic stability and growth. As the Central Bank continues its vigilant oversight, it is expected that such actions will serve to fortify the nation’s financial sector, making it more resilient and robust against any future challenges.
Iraq's Accession To The European Bank Revives Hopes For Reconstruction
The first 11/19/2023 Baghdad: Hoda Al-Azzawi Experts and specialists expressed their hope that Iraq’s accession to membership in the European Bank for Reconstruction and Development will revive the wheel of reconstruction and revive many of the large projects that the current government has begun to implement.
The US administration welcomed the Iraqi step, and stated in a comment on the matter that “Iraq’s joining the European Bank allows its companies to access loans that contribute to improving products and services and enhancing communication with the world.”
The director of the Regional Center for Studies, Ali Al-Sahib, said in an interview with Al-Sabah: “With persistent government efforts, Iraq has joined the European Bank, which contributes greatly to the reconstruction and revival of many large and giant projects that the Sudanese government has begun to implement.”
He pointed out that "Iraq can benefit from external financial and political support, because Iraq - unfortunately - lived an era of time away from the wheel of construction and development, and therefore today it needs a working paper presented by the Ministry of Planning in cooperation with the ministries and institutions concerned with the matter," demanding that the state have The Iraqi “Reconstruction Council” is “similar to that council during the royal era, which brought to light a huge number of projects that are still ongoing.”
He added, "We need to restore the destroyed infrastructure, which we may be able to restore in cooperation with the European Bank. We cannot fail to mention that the labor force must be local to employ the largest number of Iraqis, not to mention the engineering and architectural expertise in this aspect. We must also put in place steps." On the path to sustainable development and development.
The Ministry of Foreign Affairs announced earlier that Iraq had joined the European Bank for Reconstruction and Development, and the ministry’s spokesman, Ahmed Al-Sahhaf, said in a statement, “Iraq has joined the European Bank for Reconstruction and Development to become the 74th member of the bank.”
He added, "The transformation process has now been completed to become a contributing member, and as a shareholder, Iraq can apply to benefit from the financial and political support provided by the European Bank for Reconstruction and Development."
The President of the European Bank for Reconstruction and Development, Odile Renaud Basso, welcomed Iraq as a member of the bank, expressing her aspiration to begin work in Iraq and “apply our expertise to develop its economy.”
Meanwhile, the academic researcher, Dr. Qasim Balshan Al-Tamimi, indicated in an interview with “Al-Sabah” that “Iraq’s accession to membership in the European Bank is a step in the right direction to build and support the economy.”
He stated that "the European Bank has been helping to develop the economies of developing countries since its founding in 1991, and investment is an important tool to help build market economies.
From this standpoint comes the importance of Iraq joining it, given that Iraq represents a broad arena and a good environment for investment in various fields and sectors, and it can Iraq's accession to this bank will help promote the development renaissance in the country, and this will provide great job opportunities, in addition to making Iraq a destination for giant European companies, thus supporting the Iraqi economy and moving away from the grip of the mono-economy that depends on oil.”
Quote: "the meeting comes under highly complex economic conditions...discussing a number of aspects related to the role of monetary policy in facing risks resulted from the repercussions of possible macroeconomic shocks..."
In other words, something is going to happen and they're telling the largest entities in the world that they're facing risks resulting from repercussions of possible macroeconomic shocks.
In other words if something happens in a small country, something else could happen in a big country...If the bank of International Settlements is telling this to other central banks who does business with other central banks, those that need to know this information just got told something's up.
The Bank of International Settlements is the central banks of all central banks. They move markets. Commercial traders fear central banks because of the amount of money they have to be able to throw at markets.
The Bank of International Settlements talked with language I've never heard before in my 30 years of trading. When central banks have to be very very careful on how they say things because what they say will move markets. People can lose and make money.
Article "The Arab Monetary Fund of the International Settlements organized a meeting...on Wednesday and Tuesday November 15th 16th of 2023"
This article did not come out until the 16th. The 15th they never mentioned it...Why not tell you in advance they're having a meeting...?
5 years of waiting and America welcomes... What does it mean for Iraq to join the European Bank?
The European Bank for Reconstruction and Development officially included Iraq in its membership, becoming the 74th member of the multilateral lender, and the US administration welcomed this step.
Official Media The Iraqi Ministry of Foreign Affairs announced, on Thursday, November 16, 2023, that Iraq has officially joined the European Bank for Reconstruction and Development
Ministry spokesman Ahmed Al-Sahhaf said in a statement, “Iraq has joined the European Bank for Reconstruction and Development (EBRD), as it has completed the accession procedures and is now the 74th member of the bank,” noting that “Iraq had previously submitted an application to join the bank in April 2018.” The Board of Governors approved his membership in October 2020.”
He continued, "The process of becoming a contributing member has now been completed, and as a shareholder, Iraq can apply to benefit from the financial and political support provided by the European Bank for Reconstruction and Development."
The President of the European Bank for Reconstruction and Development, Odile Renaud-Basso, said, according to the statement: “I am pleased to welcome Iraq as a member of the Bank. We are fully committed to dealing with the country, and when the time comes, we look forward to starting work in Iraq, and applying our expertise to develop its economy.”
The statement concluded, “This achievement was the culmination of effortsEmbassy of the Republic of IraqIn London and its continued efforts with the bank’s management in London, and the possibility of the bank’s contribution to infrastructure projects inIraqIncluding a project Development pathThe American administration welcomed the Iraqi step, and stated in a
comment on the matter that “accessionIraqThe European Bank allows its companies to access loans that contribute to improving products and services and enhancing communication with the world.”
He will joinIraqTo the bank’s region in the southern and eastern Mediterranean, which includes Egypt, Jordan, Lebanon, Morocco, Tunisia, the West Bank and the Gaza Strip, given the strong economic ties between it and those countries.
The Iraqi government applied to join the bank for the first time in 2018, and its status as a shareholder enables it to apply to become a recipient economy, which would provide financing and political support from the bank.
And it was foundedEuropean BankFor Reconstruction and Development (EPRD) in 1991 to assist the former communist countries in the EastEuropeOn the transition to a market economy. The Group of Seven major countries owns a majority stake in the bank.
The Foundation launched its operations in the southern and eastern Mediterranean region in 2011, and has so far invested nearly 19 billion euros in 363 projects to support the private sector and sustainable development.
The importance of joining helpsEuropean BankIt has been working on developing the economies of developing countries since its establishment in 1991, and investment is an important tool to help build market economies, and from this standpoint comes the importance of joiningIraqTo him, considering thatIraqIt represents a wide arena and a good environment for investment in various fields and sectors, and joining can helpIraqTo this bank in promoting the development renaissance in the country and this will provide great job opportunities, in addition to making...IraqA destination for giant European companies, thus supporting the Iraqi economy and moving away from the grip of the mono-economy that depends on oil, according to experts.
Experts and specialists also expressed their hope that the accession would be revitalizedIraqFor membershipEuropean BankFor reconstruction and development, the wheel of reconstruction is turning and the revival of many of the large projects that the current government has begun to implement.
The financial advisor to the Prime Minister, Mazhar, outlinedMohammed SalehThe importance of joiningIraqtoEuropean BankFor reconstruction and development, while stressing that accession was the result of sober and constructive consultations carried out by economic diplomacy.
Saleh said: “JoinIraqtoEuropean BankFor Reconstruction and Development, he has been preparing since he agreedBoard of GovernorsHe joined the 74th member in 2020,” pointing out that “the accession was the result of sober and constructive consultations carried out by economic diplomacy over the years to reach the stage of full accession to membership in this multilateral European financial institution,” according to the official agency. He added, “This will enable Our country is able to implement our priorities in sustainable economic development, which he undertakesEuropean BankReconstruction tasks there and improving important aspects of Iraq’s infrastructure.”
He explained that “the European Bank for Reconstruction and Development (EBRD) is a multilateral development bank that uses investment as a tool to help build market economies. It was founded in 1991 and initially He devoted its work to the Eastern European transitional countries that transitioned from centralized economies to markets.” The aforementioned bank financed 5,035 projects from 1991 until 2020, with a total value of business volume amounting to 120 billion euros.”
He pointed out that "the European Bank works specifically for reconstruction and development in 38 countries in the southern and eastern Mediterranean, Central and Eastern Europe, and Central Asia." It also finances large and small projects in a variety of sectors, including public works and agribusiness." Natural resources, infrastructure such as road projects, water and sanitation, and the digital and technological sector."
He continued: “Thus, the European Bank for Reconstruction and Development serves the interests of all its shareholders - whose total number today exceeds more than 74 countries from 5 continents, in addition to the European Union countries themselves.” He stressed that “Iraq’s membership in the European Bank for Reconstruction and Development will represent a true European investment partnership in launching important strategic projects in our country, such as the large Iraq development project (Development Road), which is a project that will link the interests of Iraq and the global south with Europe on the one hand, and the interests of Europe and Iraq with the global south.” The world on the other hand. link
Changes in commercial transactions... Iraq replaces the dollar with other currencies to stabilize the dinar, 19 NOV
Member of the Parliamentary Finance Committee, Nermin Maarouf, confirmed today, Saturday, that the Central Bank has made notable efforts recently to reduce pressure on the US dollar against the Iraqi dinar, and to control instability in the value of the dollar.
Marouf told Al-Mutala’ Agency, “The measures that have been adopted include dealing with some merchants abroad in other currencies, such as the Indian rupee, the Chinese yuan, and the Emirati dirham, based on the volume of trade exchanges that Iraq conducts with those countries, especially with China and India, and aims to This step reduces the pressure on buying dollars in commercial transactions.”
Marouf indicated that "these measures have not yet fully entered into force, as traders informed her that India has agreed to deal in the Indian rupee, but she is awaiting the resolution of the official mechanism between the government of Iraq and India before implementing them fully."
She stressed the need to accelerate procedures related to this matter to achieve stability of the Iraqi dinar against the US dollar.
She added, "A bilateral agreement must be reached between countries and Iraq to deal in the currency of the country with which trade is conducted, given that the dollar is considered the prevailing currency in most commercial transactions currently."
Marouf concluded her statement by "calling to speed up procedures and reach an official agreement to implement these steps, in order to enhance the stability of the Iraqi dinar and achieve greater financial independence for the country." link
