Tuesday, December 26, 2023
Government Advisor: Iraq enters the advanced digital age in early 2024, 26 DEC
Government Advisor: Iraq enters the advanced digital age in early 2024
Economy News-Baghdad
The financial adviser to Prime Minister Mazhar Mohammed Saleh confirmed on Tuesday that Iraq will enter the advanced digital era early next year 2024, with a large official announcement.
Saleh said, “The government curriculum of Prime Minister Mohammed Shia Al-Sudani focused on the principles of reform work in the public administration, which took two basic directions, namely the elimination of the phenomenon of corruption in general and systemic corruption in particular, which is the most serious corruption that contributes more than one detail within the executive branch, and the second trend is to maximize the state’s non-oil revenues and make its percentage in the estimates of the federal budget no less than 20% instead of its low percentages of about 10% or even less, to ensure the goals within the current reform years.”
He added that “the non-oil revenue devices, which are led today by customs and tax bodies, border crossings and others, are at the forefront of the trends of financial and administrative reform. At the level of international indicators, there are three elements that mostly frustrate the efforts of countries in confronting financial and administrative corruption. The first is summarized as follows: dealing with paper transactions with the public and direct human communication, the second: direct monetary dealing in the settlement of levies and others and the risks generated in behavior, and the third: the absence of digital systems in the conduct of transactions without human intervention.”
He continued: “Based on the above, and in order to achieve the goal of the government program in reforming and replacing digital systems in dealing with non-oil voluntary devices, an accurate digital program is being adopted rapidly adopted by the government today, and is based on assessment, examination and electronic collection without direct human intervention and according to advanced digital systems carried out with solid national experiences and in cooperation with major international digital companies, in addition to the experiences of the United Nations Development and Trade Organization, especially in the digital development sectors at border ports, customs and taxes. Thus, Iraq will in early in 2024, has entered the advanced digital era rapidly and there will be a large official announcement in this regard.”
He pointed out that “the replacement of payment systems and the spread of digital transactions, starting from the digital government levies and ending in large and small payments within economic activity, which will culminate in the new digital era for Iraq,” noting that “the acceleration in the use of electronic payments is one of the guarantees of the banking business and the safety and sobriety of its operations, due to the decrease in the so-called (liquidity risk) of the banking system because of its knowledge of daily flows and balances continuously without interruption, which makes banks deal with (dual) flexible cash demand that is not shrinked by liquidity or anticipation of its loss, that is, without the availability of sufficient information due to the high state of uncertainty, which is the prevailing attribute when the absence of digital payment systems, which is disrupted at the same time And the need for accelerated funding to support economic activity.”
He stressed that “such phenomena will undoubtedly all disappear in the digital banking system, and the risk of cash liquidity will decrease due to the high levels of certainty in the flow of funds provided by digital systems in transactions between the public on the one hand, the public and banks on the other, within the framework of the operation of a highly governable and financial transparency digital payments system and meets the needs of the growth of the economic business sector without doubts and hesitation imposed by liquidity risks due to lack of information.”
He pointed out that “there is a correlation between financial inclusion, which means the delivery of banking services to the weakest segments of economic society and the development of digital payments. The replacement of digital payments includes the expansion and upgrading of the number of bank accounts. The opening of a bank account represents the essence of digital financial inclusion. With the development of the digital payments market in Iraq, it is noted that the phenomenon of the opening of bank accounts has increased in a remarkable way recently and tens of thousands of bank accounts that have begun to open daily and continuously, according to what the Association of Private Banks said a few days ago, which means that the Iraqi banking system is in an accelerated movement of change and development commensurate with the new digital age of Iraq, which His principles laid the current government program.”
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Before the eyes of the Honorable Prime Minister is a vision to activate the achievement of economic reform (2024-2026), 26 DEC
Before the eyes of the Honorable Prime Minister is a vision to activate the achievement of economic reform (2024-2026)
Through an analysis of what was stated in the government curriculum of the government of the Sudanese President, which is the ninth government after the change in 2003, and which has been in charge for a year and two months, and which was called the services government, it was able to accomplish an acceptable percentage of the goals specified in the government curriculum in accordance with the vision of the Prime Minister, which included many Of the economic sectors and fields, which occupied nearly most of the aspects of the government curriculum, because without achieving comprehensive and radical economic reform, which begins with financial and banking reform, the full goals and visions of the government cannot be achieved. Therefore, the government curriculum, as I see it, is a four-year strategy to achieve the economic reform revolution.
The reason for launching this strategy is “because Iraq, after 19 years of economic failures, mismanagement, and mismanagement of public funds due to administrative and financial corruption, the loss of the sound economic approach, political tensions, and instability in the business environment, has led to dependence on oil as a primary resource of public budget revenues, which constitutes up to 93% of total resources, up to 60% of gross domestic product, and failure to activate productive sectors that generate national income.”
Which led to "ambiguity of the vision and lack of clarity in the decisions of the reform process of previous governments, except for some achievements achieved by the Central Bank of Iraq during the past years, in which it overcame the challenges of monetary policy in proportions that enabled it to maintain the stability of the dinar exchange rate during the years (2017-2020) and build foreign currency reserves." Excellent, maintaining the general level of prices and the annual rate of inflation around 2%. This contributed to overcoming the economic and security crises in 2014 and addressing the decline in global oil prices by more than 70%.
This confirms that the government and the Central Bank have reviewed the previous reform policies in 2023 through diagnosis and analysis and have concluded that economic problems are the cause of most of Iraq’s crises and that “the real solution to Iraq’s crises is to work in the manner of comprehensive change, and here I mean drawing a strategy for a road map for the economic, administrative and legislative revolution by adopting the change.” radically for the coming years, while benefiting from the experience of institutions and individuals in charge who have achieved previous success experiences in confronting crises. On the occasion of the Prime Minister’s announcement that the year 2024 will be a year of achievements, it is an affirmation of the insistence on implementing the road map set out in the government curriculum in a way that supports economic, financial and banking reform, and it will be accomplished. All investment, service, administrative, technical and structural projects to support the national economy and maintain the stability of the Iraqi dinar exchange rate in the monetary trading market. For the purpose of activating the reform measures for the years (2024-2026), the following was proposed before the attention of the Prime Minister:
Firstly, starting a systematic movement to draw a road map for administrative, legal and economic reform carried out by the Iraqi economic, financial and banking elites and competencies (governmental and private sector) by creating the Supreme Economic Council and representing the private banking sector in its membership as the financing sector which must contribute to investment. The movement should be based on The reform system relies on several important economic pillars, adopts a new methodology for managing the economy, and achieves the central goal of moving the economy from rentier to productive, from cash to digital, and activating productive sectors other than oil to reach 50% of general budget revenues in 2026, creating sustainable development, and achieving diversity in... Resources and the development of economic and human structures in order to properly build the national economy and build the foundations for the transition to a social market economy, provided that its recommendations, after approval by the Council of Ministers, are binding for implementation by the ministries, agencies and concerned parties.
Second - Forming a (Central Follow-up Committee) linked to the Prime Minister’s Office to follow up on the implementation of decisions and having the authority to monitor and evaluate. It is formed under the chairmanship of the Prime Minister and the membership of an elite group of advisors, government experts, and private sector experts.
Third - Moving to the central administration of the economy so that the principle of (centralized planning and decentralized implementation) is implemented. This means that the Supreme Council of the Economy is responsible for drawing up plans and policies centrally and distributing their implementation to the ministries and specialized bodies within the government structure after the approval of the Council of Ministers.
Fourth - Providing soft loans to finance small, medium and large projects and establishing a legal and institutional system to manage, grow and develop them, and issuing a special law for them. As well as issuing and amending the laws of the legal environment to regulate the economic process, and here this means issuing new laws instead of the laws that were issued in 2004. Due to the changes that occurred. in the national economy during the past two decades.
Fifth - Activating investment in the agricultural, industrial, energy, tourism, services and housing sectors, as well as working to reform, develop and grow the banking sector through monetary policy applications and regulating the relationship and restrictions that govern financial and monetary policies, as well as a serious approach to reforming the tax, financial and customs system. Addressing cases of failure to achieve the required growth rates in national income and exceeding the rise in unemployment and poverty rates.
Sixth - Developing a new methodology to overcome the challenges of instability in the financial system and the monetary system. This means developing coordinated and balanced plans to overcome the challenges of monetary policy and the challenges of the non-oil revenue deficit and the deficit in the balance of payments and the trade balance. Seventh - Accelerating the implementation of the e-government program and coordinating it with the electronic payment system. Focusing on following up on the decisions issued by the government regarding the use of electronic payment in commercial exchanges and banking operations and activating the establishment of the National Electronic Payment Company, which the Central Bank recently announced link
"RV UPDATE" BY WALKINGSTICK, 26 DEC
Walkingstick
At what rate will the IQD go into the [Middle East] basket? I don't know...This is an RI. This is the reinstatement phase. The goal is to reinstate the value that the Iraqi dinar once was proud of...It's a reinstatement to get to the Real Effective Exchange Rate (REER) to a float. The key is to let them get to that number.
Article: "A government source reveals the Sudanese measures to reduce the dollar to its official price" IT IS BECAUSE THE IQD IS GOING UP IN VALUE AGAINST THE USD...NOT THE OTHER WAY AROUND!