CLARE: The International Monetary Fund praises the steps of the Central Bank of Iraq to support the economy, 4 MARCH

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The International Monetary Fund praises the steps of the Central Bank of Iraq to support the economy

March 03, 2024
Experts from the International Monetary Fund mission praised the measures taken by the Central Bank of Iraq, which contributed to maintaining the stability of the Iraqi economy and working to raise its capabilities.

The mission said in the final statement on the sidelines of the meetings held in the Jordanian capital, Amman, that “growth in the non-oil sector returned strongly in 2023, with inflation receding. 

Growth in real non-oil GDP is estimated at 6 percent in 2023. After declining in 2022, overall inflation declined from the high level it reached at 7.5 percent at the beginning of 2023, to 4 percent by the end of the same year, reflecting the decline in food and energy prices at the international level.”

The mission attributed these developments to “the return of trade financing operations to their normal course and the stability of the foreign exchange market.

 After some interruptions occurred following the implementation of new anti-money laundering and counter-terrorism financing controls on cross-border payments in November 2022, improved compliance with the new system led to The Central Bank of Iraq’s initiatives to reduce transaction processing times have led to a recovery in trade financing in the second half of 2023. 

This has ensured that the private sector can obtain foreign currency at official rates for import and travel purposes.”
The mission welcomed "the initial steps taken towards establishing the Treasury Single Account (TSA), which is a critical tool for improving cash liquidity management."

The mission praised the efforts made by the Central Bank of Iraq aimed at getting rid of surplus liquidity. The Central Bank increased the interest rate on monetary policy tools and raised mandatory reserve requirements, and also began issuing treasury bills with a maturity of 14 days last summer. 

The Fund called for Supporting existing efforts by the Central Bank by consolidating unused government deposits in the unified treasury account, refraining from pro-cyclical financial policy, reducing reliance on monetary financing, and improving public debt management, noting the continuation of efforts aimed at establishing an interbank market with support. "From the technical assistance provided by the International Monetary Fund. The mission also welcomes the steps taken by the authorities to accelerate the pace of digitalization of the economy, reduce dependence on cash and enhance financial inclusion."

 

Central Bank of Iraq
Information Office
3 March 2024
 
 

https://cbi.iq/news/view/2527

"ANALYSIS OF IRAQ NEWS: "LIKE I SAID... WHERE BARZANI GOES... SO DOES THE MONETARY REFORM!!!"BY FRANK26

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FRANK: "LIKE I SAID... WHERE BARZANI GOES... SO DOES THE MONETARY REFORM!!!"

Masrour Barzani discusses with a US Treasury official reforming the financial and banking system in Kurdistan

3/1/2024

 

The Prime Minister of the Kurdistan Regional Government, Masrour Barzani, discussed on Friday, with the US Treasury Undersecretary for Terrorism and Financial Intelligence, Brian Nelson, reform of the financial system and the banking sector.

A presidential statement received by Shafaq News Agency stated, “Barzani met with the Undersecretary of the US Treasury for Terrorism and Financial Intelligence, Brian Nelson, and the two sides exchanged views on strengthening bilateral relations and ways to support the reforms implemented by the Kurdistan Regional Government within the framework of the ninth ministerial formation.”

The statement added, "The two sides discussed reforming the financial system and the banking sector, in addition to discussing the (My Account) project and the digital transformation of public services."

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CLARE: Advisor to the Association of Banks: Riyada Bank will launch lending to youth and vulnerable segments of society to develop small and medium enterprises, 4 MARCH

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Advisor to the Association of Banks: Riyada Bank will launch lending to youth and vulnerable segments of society to develop small and medium enterprises

3/3/2024

Baghdad

Advisor to the Association of Private Banks in Iraq, Samir Al-Nusairi, said today, Sunday, that the Riyada Bank, which will be launched soon, is one of the pillars of the Central Bank of Iraq’s strategy to achieve social development.

Al-Nusairi added, in an interview with Al-Iqtisad News, that “Riyadah Bank seeks to achieve social development by supporting all segments of society, especially youth and vulnerable groups,” noting that “the bank will be one of the pillars of the Central Bank of Iraq’s strategy for the coming years.”

He pointed out that "the bank is consistent with the government's vision in its approach to supporting the youth group," pointing out that "the Central Bank of Iraq will provide all forms of support to make it successful."

He stressed that "the bank will support low-income people through soft loans and simple guarantees to support vulnerable segments, and will work to diversify the non-oil economy by supporting small, medium and micro enterprises to stimulate the private sector and reduce unemployment and poverty rates in Iraq."

Al-Nusairi stated that Riyada Bank will be a “base to launch and finance small and medium enterprises” in Iraq according to new mechanisms that support the directives of the Central Bank to reconsider the bank financing structure currently approved in banks in directions that help to move them to the real work, which is banking financing, in accordance with the vision and applications of digital transformation to provide New banking products that contribute to attracting deposits and achieving financial inclusion.”

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"ANALYSIS OF IRAQ NEWS: "EXAMPLE OF THE CURRENCIES FOR THE BASKET"BY FRANK26, 4 MARCH

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FRANK: "EXAMPLE OF THE CURRENCIES FOR THE BASKET"...........F26

The Iraqi Central Bank confirms to Shafaq News the provision of five foreign currencies as an alternative to the dollar for merchants

3/2/2024

 

The Central Bank of Iraq confirmed, on Saturday, that it has provided five alternative currencies to the dollar, for merchants to use in purchasing their goods from other countries using each country’s currency through the bank.

Deputy Governor of the Central Bank, Ammar Hamad, told Shafaq News Agency,  “The Central Bank provided other foreign currencies to Iraqi merchants, which are (the euro, the Chinese yuan, the Turkish lira, the Emirati dirham, and the Indian rupee).

He added, "These currencies have become available to merchants for the purpose of financing foreign trade. When a merchant imports goods from China, he can now pay the Iraqi dinar to the Iraqi bank, and through the bank, the amount will be paid to the Chinese company and factory in the Chinese currency."

Last week, the Central Bank of Iraq's total sales of hard currency in US dollars amounted to more than one billion dollars.

Shafaq News Agency correspondent stated that the Central Bank sold during the past week, and for a period of five days during which the auction was opened, one billion and 52 million and 796 thousand and 86 dollars, at a daily rate of 210 million and 559 million and 217 dollars, lower than what it recorded the previous week, when it amounted to one billion and 62. One million 587 thousand and 198 dollars.

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Iraqi Dinar✅Finally IQD Revaluation Confirmed Massive Update Today 2024 ...

CLARE: The International Monetary Fund warns Iraq of its economy being exposed to oil price shocks, 4 MARCH

 The International Monetary Fund warns Iraq of its economy being exposed to oil price shocks

3/3/2024

On Sunday, the International Monetary Fund warned Iraq that its oil revenues would be affected by any decline in crude prices.

The IMF said that greater declines in oil prices or an extension of OPEC+ cuts could affect Iraq's financial and external accounts.
              
He added, "Iraq needs to increase non-oil exports and government revenues, and reduce the economy's exposure to oil price shocks."

The IMF said that Iraq needs higher and more sustainable growth in the non-oil sector to accommodate the rapidly growing workforce, and that estimates indicate that Iraq’s real non-oil GDP will grow by 6% in 2023 after growth stopped in 2022.

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