Tuesday, December 19, 2023
"RV UPDATE" BY MARKZ, 19 DEC
MarkZ
[via PDK] We have seen the IQD listed on foreign exchanges around the world. But, this doesn’t mean the IQD is fully international with a new rate yet. But it is showing up on all kind of exchanges…regionally and internationally and locally on all kind of bank screens. It has never shown on these before. So we are headed in the right direction.
Question: What is the rate that is being shown?
MarkZ: Anywhere from $1 to about $4.81 depending on who, what or where it is being shown...My Iraqi sources seem to think something will happen this week. We are looking for huge stuff starting tomorrow on the 20th through Jan 1
The rumors are through the roof. From Iraq especially…that they have expectations for the next 48 hours and before the 20th. I do not know if it will happen on the 20th…but I do feel it will happen within the next few weeks. Banking contacts are all looking at the next 36/48 hours… We really are close...lets see what happens. But everyone stay grounded. You all know it’s inevitable. It’s a “when” and not an “if”...
PM Barzani reiterates support for private banks in Kurdistan, Iraq, 19 DEC
PM Barzani reiterates support for private banks in Kurdistan, Iraq
ERBIL (Kurdistan24) – Kurdistan Region Prime Minister Masrour Barzani on Tuesday reiterated his cabinet’s support for private banks in Kurdistan Region and Iraq in a bid to develop financial and economic systems, according to a statement.
Barzani received Ziyad Khalaf Abed Kareem, the International Development Bank’s chairman of the board of directors, in Erbil, where they discussed the economic diversification program the Kurdistan Regional Government (KRG) is undertaking, per a statement from the premier’s office.
The premier and the chief banker discussed “economic development and the KRG banking reform,” the press release said.
The Region is ready for various investments, Barzani told the banker.
Abed Kareem expressed his delight over the "premier’s worldview regarding economic diversification and developing the banking sector", according to the release.
“We reiterated our support for the private banks in Kurdistan Region and Iraq to develop economic and financial systems,” the premier said.
What is the MyAccount initiative?
MyAccount Initiative is the KRG's financial inclusion program which aims to "provide public sector beneficiaries with a safe, and convenient way to access their salaries."
First initially launched as a pilot project, which included 841 employees at Erbil Children and Maternity Hospital, the program aims to digitalize all the payment systems.
The KRG Department of Information Technology (DIT) designed, tested, piloted, and implemented a secure application for onboarding KRG employees into the My Account initiative in line with the Central Bank of Iraq’s Know-Your-Customer (KYC) needs.
In partnership with private banks, the government aims to accelerate the rollout of more ATMS and Point of Sales by the end of next year.
Approximately 175,000 civil servants in the Kurdistan Region have been registered in the My Account Initiative.
Coffee with MarkZ. 12/19/2023
IMF Staff Concludes Staff Visit with Iraq, 19 DEC
IMF Staff Concludes Staff Visit with Iraq
December 19, 2023
- Economic activity is recovering, although oil production cuts are weighing on overall growth, and at the same time inflation has declined.
- The large fiscal expansion in the three-year budget law poses significant risks to fiscal and external sustainability over the medium term.
- Fiscal prudence and structural reforms are critical to safeguard macroeconomic stability, ensure sustainability, and achieve durable and more inclusive growth.
Washington, DC: A staff team of the International Monetary Fund (IMF) led by Jean-Guillaume Poulain met with the Iraqi authorities in Amman, Jordan during Dec 12-17 to discuss recent economic developments and outlook as well as policy plans.
At the end of the mission, Mr. Poulain issued the following statement:
“Against the background of a large fiscal expansion, non-oil GDP is expected to grow by 5 percent in 2023. Continued budget execution should help sustain strong non-oil growth in 2024. However, lower oil production, following the closure of the Iraq-Turkey pipeline and OPEC+ production cuts, will reduce overall GDP growth in 2023 and 2024. Inflation has declined from its January peak and is projected to stabilize in the coming months—helped by the Central Bank of Iraq’s (CBI) tighter monetary policy, passthrough from the exchange rate revaluation, lower international food prices, and normalization of trade finance as compliance to the new anti-money laundering/combating the financing of terrorism (AML/CFT) [GM1] framework improved.
“The three-year budget approved in June 2023 marked a shift in Iraq’s budgeting practice, envisaged to improve fiscal planning and continue important development projects over the medium term. Despite a late start of budget implementation, the fiscal balance is expected to shift from a large surplus in 2022 to a deficit in 2023. Staff projects that the deficit would widen further in 2024 reflecting the full year impact of recent measures. The large fiscal expansion, including a substantial increase in public hiring and pensions creates permanent spending that will put pressure on public finances over the medium term.
“Ensuring fiscal sustainability, in context of uncertain outlook for oil prices, requires gradually tightening the fiscal policy stance while safeguarding critical infrastructure and social spending needs. This would require mobilizing additional non-oil revenues, containing the large government wage bill, and reforming the pension system. These measures should be supported by moving toward a more targeted social safety net that better protects the vulnerable.
“The mission welcomed the government’s plans to strengthen public financial management including steps towards the establishment of the Treasury Single Account. In this context, the mission reiterated the importance of adhering to the framework for managing government guarantees.
“The CBI has appropriately tightened its monetary policy, including by increasing its policy rate and reserve requirement. The mission welcomed the progress in strengthening the domestic liquidity management framework and encouraged continued efforts to mop up excess liquidity and develop an interbank market to strengthen monetary policy transmission.
“Structural reforms to spur private sector led economic diversification and job creation remains pivotal for sustainable and inclusive growth. Priorities include creating a level playing field for the private sector through banking and electricity sector reforms, reducing distortions in the labor market, and continuing efforts to enhance governance and reduce corruption.
“The IMF staff team stands ready to support the authorities in their reform efforts and would like to thank them for candid and productive discussions during this mission.”
[GM1] Please spell out
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: MAYADA GHAZALA
PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG
Iraqi Minister of Finance: Economic recovery is underway amid the return of commercial financing to normal, 19 DEC
Iraqi Minister of Finance: Economic recovery is underway amid the return of commercial financing to normal