I get it there are people out there telling you it's going to happen overnight because they have an electric payment system. No, no they're not going to change your exchange rate just because of the electronic payment system. The electronic payment system will help influence it once it's up and fully implemented but it has nothing to do with being reinstated. It'll keep increasing in increments just like I said...
Question: "Is Iraq part of any currency basket?"No...They have not been invited to be part of any currency basket. Iraq is part of the currency basket that makes up the Arab accounting dinar but that's local, regional...There are no other currency baskets, I mean zero, that Iraq is part of at all. Nothing in trade. Nothing in business. Nothing internationally. That don't have stable currency.
IMF expresses optimistim about non-oil financial growth in Iraq, 19 DEC
Shafaq News / 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) 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.”
Since October of last year [Iraq's Federal elections] they have been setting the economic stage for the rate change... They're done setting the economic stage. They don't have any more economic steps to do. That's why they're finishing the very last step of removing and cleaning up corruption at the second half of the government - The provincial level.
Today on Monday Iraq is holding their elections. What does this mean to us? According to Iraq's Central Bank removing corruption is the absolute minimum requirement for Iraq to be eligible to revalue their currency...These are the provincial level elections. It's the second half of the government. They already completed and held all their federal elections in October of last year...These elections are critical to the country to move it forward...
You'll be able to go to 53rd Bank on the east coast [to exchange your dinar]. I've already consulted with them. You'll be able to exchange your foreign currency there and they won't charge you any fees to exchange your foreign currency..
The reason why there's no news coming out of Iraq is because Iraq is done with everything. They finished everything needed to revalue. They're ready to revalue but they can't and they're not going revalue immediately because they have to clean up corruption. Article: "Al-Halbousi faces 4 criminal charges after the end of his presidency" Boom!... Halabousi is going to be facing 4 criminal charges.
In order for the 2023 budget to be implemented Iraq needed to have publicly posted in the Gazette the budget operating instructions. They never did that. That step never happened... Iraq has not implemented its '23 budget that's why they have to resort to financing salaries and have done so since July...If they had an active budget they would not need to finance.
You're like, why hasn't Iraq revalued? They've gotten everything done?' And they do! Iraq has everything done. They're ready to revalue but they're not going to revalue till they tackle corruption...They have to remove this corruption.
Iraqi Minister Of Finance: Economic Recovery Is Underway Amid The Return Of Commercial Financing To Normal
Economy Iraq Minister of Finance 2023-12-18 03:04 Shafaq News/ Minister of Finance, Taif Sami Muhammad, said on Monday that economic recovery is underway in the country amid the return of commercial financing to normal.
This came during his participation, along with a delegation of advanced staff in the Ministry of Finance, and a number of representatives of ministries and the Central Bank of Iraq, in the meetings of the International Monetary Fund expert visiting mission held in the Kingdom of Jordan for the period from 14-17/12/2023.
The meeting discussed
priorities for correcting public finances through structural reforms, represented by
encouraging foreign trade payments to commercial banks and
reducing reliance on cash, in addition to
expanding the use of point-of-sale devices and electronic payments, and
accelerating the completion of the restructuring of government banks.
On the other hand, the meeting discussed the
actual expenses and revenues until September 2023, the
expected ones for the end of this year, and in addition to the
spending ceilings for the year 2024,
appointments file contained in Budget Law No. (13) of 2023,
financial reforms,
bank structuring,
customs and tax automation, the
unified treasury account, and the
comprehensive banking system. Implementing the POS electronic payment system for the purpose of maximizing revenues.
Support for funds for which allocations were made in the general budget was also discussed, in addition to
structural reforms to support private sector development,
increase job opportunities,
reforms to the retirement system, the
social protection network,
higher revenues and exports,
higher economic growth,
banking and electricity sector reforms,
strengthening governance and
reducing... From corruption
The meeting also touched on the role of the Central Bank of Iraq in tightening monetary policy appropriately with the aim of alleviating inflationary pressures by continuing to enhance liquidity management.
A statement issued by the Iraqi Ministry of Finance stated that the Central Bank has made good progress in implementing technical assistance recommendations for managing local liquidity and bridging the time gap between auctions of bank instruments to ensure continuity of liquidity absorption. Minister Taif said during the meeting that economic recovery is underway amid the return of commercial financing to normal and the large financial expansion, maintaining economic stability and the importance of coordination between monetary and financial policy and ensuring the sustainability of the need to gradually renew financial policy while maintaining spending on the necessary infrastructure and social spending needs and controlling... Wage bill and increased non-oil tax revenues.
Association Of Banks: The Battle With Dollar Speculators Has Reached Its Final Round
Economy 12-15-2023, Baghdad – IA The Iraqi Private Banks Association said today, Friday, that the battle with dollar speculators has reached its final round, and
while it praised the Central Bank’s measures to regulate the movement of funds to achieve financial and bank reform, it confirmed that it will contribute to reclassifying banks, increasing their capital and raising the level of services provided. For citizens.
The economic and banking advisor to the association, Samir Al-Nusairi, told the Iraqi News Agency (INA):
“The Central Bank’s measures and efforts that have been made since the beginning of 2023 and with the support of the government have yielded results and begun to give results according to what was lanned, and the so-called parallel (black) dollar has begun to die and has been besieged.”
Speculators who deal in it to harm the national economy, and currently the battle is with them in the final round.” He added,
“This is what was stated in detailed procedures and administrative, technical and negotiating steps with the US Federal Bank and the US Department of the Treasury and the understandings related to regulating foreign trade financing by approving the opening of accounts for Iraqi banks in American, Chinese, Emirati and Turkish correspondent banks to deal directly with them for foreign transfers in the currencies of these countries, which... It includes the dollar, the euro, the Chinese yuan, the Indian rupee, the Emirati dirham, and the Turkish lira,
leaving the electronic platform in the year 2024, and importing the dollar and foreign currencies into Iraq from Iraqi bank accounts at correspondent banks or abroad. Al-Nusairi confirmed,
“Reaching agreements to open 40 accounts for Iraqi banks in correspondent banks for foreign trade,” noting that “the Central Bank’s new strategy to reform the banking sector will adopt the reclassification of banks and increase their capital to the ceiling set by the Central Bank in accordance with the specified time frames until the end of 2024,
which will lead to... Raising the capabilities of our banks to provide the best banking products and services to customers,
which will reflect positively on the movement of the economy, investment, development and the transition to comprehensive digital transformation.” He added,
“Since the beginning of the year 2023, financial policies have been reconsidered according to a new vision for banking reform that complies with the requirements of the global financial system, and
a new strategy has begun to be implemented with mechanisms based on studying and diagnosing the causes of the imbalance and determining the road map, steps, and executive procedures that have been and will be applied at the level of the central bank’s departments and banks.” And the bodies supporting banking work and government agencies related to comprehensive economic reform, as
the Central Bank had previously issued new instructions for external transfers for the year 2023 and three procedural packages to facilitate and control the circulation of foreign currency in the monetary and commercial market. Al-Nusairi continued,
“In August of this year, the Central Bank issued its important statement in which it defined its new strategy for organizing the financing of foreign trade according to new foundations that will move Iraq to the stage of regularity in the global financial system, and
in which it clarified the executive procedures to control the stability of the exchange rate, and the most prominent of its contents are:
Adopting the electronic platform exclusively for foreign remittance transactions,
controlling illicit trade through official and unofficial border crossings,
stopping trading and transactions in dollars on the black market,
preventing all websites and media television channels from publishing exchange rates on the black market due to their violation of the law, and having importers prove that all their imports were made through the platform and at the price.
The Customs Authority and the General Tax Authority implement proposals and treatments for small merchants to enter the platform in accordance with the rules, and
this is consistent with the government’s initiative to launch the national project to control prohibited imports. He continued,
“As we are in the final days of 2023, the Central Bank’s strategy for banking reform in all its axes has become clear for the coming year 2024 and the following years, and
it is an embodiment of what it specified in the road map that it clarified in cooperation with the government in accordance with what was stated in the government’s curriculum in Axis 12 (Financial and Banking Reform) Paragraph 7 thereof, which is concerned with developing and enabling banks to contribute to development and investment. He explained,
“Here we can summarize the Central Bank’s plan, which it is currently working to implement accurately, as follows:-
First - Providing a stable financial system lies in accompanying financial electronic systems.
Second: Commitment to establishing the rules of compliance, risk management, transparency, and soundness of financial operations.
Third - The transition from the cash economy to the digital economy and what is called the fourth revolution and the accompanying measures that achieved a qualitative shift in the dealings between the government and the central bank.
Fourth - Implementing the financial and banking reform plan, which is characterized by international standards that keep pace with global developments in the field of the financial digital economy.
Fifth - Working to strengthen international relations, including establishing a network of relations with foreign correspondent banks.
Sixth - Establishing Riyada Bank in line with the Prime Minister’s initiative and redirecting work on initiatives to finance small and medium enterprises according to specific standards.
Seventh: Preparing and launching a financial inclusion strategy and putting it into effect in coordination with the relevant authorities.
Eighth - Launching the national lending strategy, relying on the banks’ own financial capabilities to attract deposits and invest them in providing the best banking products to customers and contributing to development. https://www.ina.iq/199327--.html