Thursday, February 29, 2024
A Specialist Explains In Numbers The "Cash Liquidity" Crisis That Caused A Delay In The Disbursement Of Salaries, 29 feb
A Specialist Explains In Numbers The "Cash Liquidity" Crisis That Caused A Delay In The Disbursement Of Salaries
Economy |Yesterday, 19:05 |Baghdad today – Baghdad Today, Wednesday (February 28, 2024), financial affairs expert Nabil Jabbar Al-Tamimi revealed details of the “cash liquidity” crisis that Iraq is going through, which led to a delay in the release of employee salaries.
Al-Tamimi told "Baghdad Today", "There is a real crisis in cash liquidity, and the Iraqi Ministry of Finance brings money to pay salaries through the Central Bank of Iraq, and the bank brings this money by making transfers (selling dollars)."
He stated, “There is a limited possibility for the Central Bank of Iraq to make transfers and sell dollars due to American censorship, and the bank sells approximately (200) million dollars a day, and this process takes place in a month for approximately (22) days only, meaning it sells approximately (4) billion dollars a month.”
A dollar per month compared to the exchange rate is (5) trillion Iraqi dinars per year, which is approximately (65) trillion Iraqi dinars, and this number is only the volume of sales of the Central Bank of Iraq.”
He added, "In contrast, Iraq's budget exceeds (200) trillion dinars, and for this reason there is a crisis in the issue of cash liquidity, and the delay in releasing employee salaries during the past months, but this crisis is not very severe, and it is not an economic or financial crisis, but there is a faltering in... Finance is what creates the crisis despite the financial abundance of the dollar, and this is why the Iraqi government is turning to electronic payment so that the process of printing more Iraqi currency does not take place.”
On February 25, the Ministry of Finance denied the lack of sufficient cash liquidity to secure the salaries of state employees and confirmed in a statement,
“Securing the salaries of employees, the social protection network, and the salaries of retirees without delay or delay through its retained cash balances for the previous year and its oil and non-oil revenues.”
Coffee with MarkZ. 02/29/2024
"THE RATES ARE EVEN HIGHER AT REDEMPTION CENTER" BY HERNAN R BRAVO ( ENGLISH & SPANISH), 29 FEB
Wednesday February 28, 2024
Hernán: He says
— I'm sure we'll ALL be happy as long as we move forward. Oh, and the rates are even higher at CR (Redemption Center) and they also say that only CR are the only ones redeeming ZIM and that once CR closes, it might also be possible to exchange Zim at WELLS FARGO BANK.
So keep that in mind.
Greetings
SAN ⭐️
Hernán Robert Hbravo
---
TRANSLATION SPANISH
Miércoles 28 Febrero 2024
"RV UPDATE" BY WOLVERINE, 29 FEB
WOLVERINE
“Hi guys. A lot of people are asking me why it has not gone off yet. If you look at what is going on right now you will realize that we are close. They are ready. They are not waiting for anything anymore. There are no problems anymore. Iraq is a member of the World Trade Organization. On Thurs. 29 Feb. they will officially joined BRICS which means they must be asset backed. Venezuela could be among those other four countries joining BRICS as well.
The Iraqi people are queuing up at the banks and waiting for the RV. All my sources are locked up with NDA right now and most Whales are under NDA. That is a good sign. We should have an announcement tomorrow Thurs 29 Feb. concerning the USTN. So just hold on as it’s not that long to go till Wolverine sings that Opera. God bless you all.” …
Wolverine
The Advisor to the Association of Banks praises the Prime Minister's support for the strategy of the Central Bank and private banks in achieving banking reform, 29 FEB
The Advisor to the Association of Banks praises the Prime Minister's support for the strategy of the Central Bank and private banks in achieving banking reform
2/28/2024 Baghdad
Advisor to the Iraqi Association of Private Banks, Samir Al-Nusairi, praised Prime Minister Muhammad Shiaa Al-Sudani’s support for the procedures of the Central Bank and private banks to achieve banking reform, and his constant and continuous confirmation that support will remain a major goal until the banking sector overcomes all the challenges and obstacles it suffers from, both local and external, indicating that this Paying attention to the measures that the Central Bank launched in 2023 and that it will launch in 2024 has enabled the economy to recover and achieve good growth rates.
Samir Al-Nusairi said: Since assuming responsibility, the government has implemented policies and mechanisms in cooperation and coordination with the Central Bank and has developed a detailed road map to address the lack of methodology, the previous dispersion in financial policies, the chaos in managing the economy, and the imbalance that occurred as a result of the lack of coordination between financial and monetary policies.
He added, “The map included diagnosing the deficiencies and developing solutions, accompanied by the Central Bank reconsidering the tools and applications of monetary policy and focusing its plans on achieving priorities that are based on achieving financial and banking reform first.”
He continued, "These steps resulted in the issuance of reform decisions to enable the economy to grow at good rates, which were confirmed by international organizations, especially the recent reports of the World Bank and the International Monetary Fund, and their acknowledgment that the Iraqi economy in 2023 left fragility to gradually recover and achieved an inflation rate at an annual rate of 3.7%, which is the lowest rate in comparison." By 7%, in January 2023.”
He stressed that “this rate is the lowest compared to the inflation rates in the Arab and regional countries for the same period, and this is one of the goals of monetary policy by reducing inflation and maintaining the general level of prices despite the fluctuation in the exchange rate on the black market. In addition to that, the expectation of achieving growth in Non-oil GDP by 5%.”
Al-Nusairi explained, “The measures also included organizing the financing of foreign trade, regulating the global banking system, moving banks to build trust relations with global correspondent banks, obtaining their approval to open accounts for our banks with them, allowing direct commercial and banking dealings with them, gradually leaving the electronic platform, and introducing new foreign currencies into dealing.” For the purposes of foreign trade with China, the Emirates, Turkey and India, in addition to the US dollar, which will help stabilize the exchange rate in the trading market.”
Al-Nusairi pointed out that “the measures were also supported by the serious approach of the government and the Central Bank to move and transform from the cash economy to the digital economy and focus on developing electronic payment systems and securing the infrastructure for that, establishing a national company for payment systems, reconsidering the structure of banking financing, and preparing to launch the national lending strategy and establishing a Riyada Bank.” To finance small and medium enterprises and to reconsider the structural, regulatory and supervisory structure of the bank’s specialized departments.”
He added, “The important and basic priority that the Central Bank is working on includes preparing to launch the financial inclusion strategy, as the number of accounts opened in banks has grown by an increase of 25%, to reach more than 10.5 million accounts, while the number of credit cards issued has reached more than 18.5 million.” Card increased by 19%. The financial inclusion rate reached 41%, up from 33.5%.”
He pointed out that “all these reform measures were completed under difficult and complex circumstances during 2023, and with continuous communication, support, harmony, cooperation, support and supervision between the Prime Minister, Muhammad Shiaa Al-Sudani, and the Governor of the Central Bank, Ali Mohsen Al-Alaq, which enabled the economy to recover and advance, and the problems and obstacles to banking work will inevitably be overcome.” "The current situation is supported by wisdom, effective government intervention, and the banks' determination to move forward towards implementing the reform approach to the banking sector in the next stage." LINK
