Monday, May 20, 2024
KRG shares first list of Know Your Customer (KYC) data with the Trade Bank of Iraq (TBI). 20 MAY
KRG shares first list of Know Your Customer (KYC) data with the Trade Bank of Iraq (TBI)
Erbil, Kurdistan Region (GOV.KRD) – The Kurdistan Regional Government on Thursday shared the first batch of Know Your Customer (KYC) data for 368 public sector employees with the Trade Bank of Iraq (TBI), in line with the KRG’s ongoing efforts to digitalize its payroll under the MyAccount initiative.
The KRG will continue to share data of employees who select TBI from the seven participating banks in the project based on the process approved by the Central Bank of Iraq. The KYC data will be shared on a weekly basis.
The KRG looks forward to receiving a clear schedule from TBI on account opening and card delivery, as well as a response to the KRG’s Request for Information (RFI) submitted on 29 April 2024 that remains unanswered. This information is critical to determining the bank’s readiness and capacity to meet the needs of the customers of the Kurdistan Region of Iraq.
We hope that TBI will promptly create the bank accounts.
Ministry of Finance and Economy
19 May 2024
gov.krd
"RV UPDATE" BY BRUCE, 20 MAY
Bruce
[WiserNow]
We know that...Iraq paid back the IMF – a loan that they got in 2003...that's when the new 25 10,000 5000 1000 dinar notes were printed. Our notes that we have now are printed starting in 2003. And they paid the IMF back at $8 billion against a loan Iraq received in 2003... Now, to do that, you had to have a revalued dinar...to make that doable...
the rates are actually on the ATM’s in Baghdad in airports and other places. So have they converted over to I think the new rate in country – yes... they're keeping it hidden until they're ready for everything to be released.
...we have about 17 - 18 currencies that are going up substantially in value. We know that you know that obviously dinar and Dong - Dong is one of those...IMF: Fiscal Expansion to Boost Growth in Iraq (FULL REPORT), 20 MAY
IMF: Fiscal Expansion to Boost Growth in Iraq (FULL REPORT)
20th May 2024 in Iraq Industry & Trade News, Politics
By John Lee.
The International Monetary Fund (IMF) has issued a detailed report on the Iraqi economy.
The following key points were highlighted:
- Improved Domestic Stability: Since the new government took office in October 2022, Iraq has experienced improved domestic stability. This facilitated the passage of its first three-year budget, which led to a large fiscal expansion starting in 2023.
- Economic Recovery: The fiscal expansion supported a strong recovery in Iraq’s non-oil economy after a contraction in 2022. Despite regional conflicts, Iraq remained largely unaffected.
- Inflation Decline: Domestic inflation decreased to 4 percent by the end of 2023. This decline was attributed to lower international food prices, currency revaluation as of February 2023, and normalization in trade finance.
- Imbalances Worsened: Despite the positive aspects, imbalances worsened due to the large fiscal expansion and lower oil prices.
- Expected Growth in 2024: The ongoing fiscal expansion is anticipated to further boost growth in 2024. However, this expansion comes at the expense of a further deterioration of fiscal and external accounts, increasing Iraq’s vulnerability to oil price fluctuations.
- Medium-Term Sovereign Debt Stress:Without policy adjustment, there’s a high risk of medium-term sovereign debt stress, indicating potential fiscal challenges ahead.
- External Stability Risks: Iraq faces external stability risks, particularly concerning its vulnerability to fluctuations in oil prices. The ongoing conflict in Gaza and Israel also presents a potential downside risk.
In summary, while Iraq has experienced improvements in domestic stability and economic recovery, challenges remain regarding fiscal imbalances, external stability risks, and the potential impact of regional conflicts on its economy.
Click here to download the full 68-page report
Press release from IMF:
On May 13, 2024, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Iraq and considered and endorsed the staff appraisal.
Domestic stability has improved since the new government took office in October 2022, facilitating the passage of Iraq’s first three-year budget, which entailed a large fiscal expansion starting in 2023. This supported the strong recovery in Iraq’s non-oil economy after a contraction in 2022, while Iraq was largely unaffected by the ongoing conflict in the region. Domestic inflation declined to 4 percent by end-2023, reflecting lower international food prices, the currency revaluation as of February 2023, and the normalization in trade finance. However, imbalances have worsened due to the large fiscal expansion and lower oil prices.
The ongoing fiscal expansion is expected to boost growth in 2024, at the expense of a further deterioration of fiscal and external accounts and Iraq’s vulnerability to oil price fluctuations. Without policy adjustment, the risk of medium-term sovereign debt stress is high and external stability risks could emerge. Key downside risks include much lower oil prices or a spread of the conflict in Gaza and Israel.
Executive Board Assessment[2]
Executive Directors agreed with the thrust of the staff appraisal. They welcomed the strong economic rebound, declining inflation, and the improved domestic conditions which have resulted in the implementation of the first-ever three-year budget. Noting that risks are tilted to the downside, given regional conflicts and large dependence on volatile oil prices, and that the large fiscal expansion could result in fiscal and external imbalances, Directors underscored the need for sound macroeconomic policies and structural reforms to secure fiscal and debt sustainability, advance economic diversification, and achieve sustainable, inclusive, and private sector-led growth.
Directors emphasized that a gradual, yet sizeable fiscal adjustment is needed to stabilize debt in the medium term and rebuild fiscal buffers. They encouraged the authorities to focus on controlling the public wage bill, phasing out mandatory hiring policies, and mobilizing non-oil revenues, while better targeting social assistance. Directors agreed that prompt implementation of customs and revenue administration reforms, a full implementation of the Treasury Single Account, and a strict control and limit of the use of extrabudgetary funds and government guarantees are key to support fiscal consolidation. Limiting monetary financing and reforming the pension system are also important.
Directors commended the central bank’s efforts to tighten monetary policy and enhance its liquidity management framework. Improving coordination between fiscal and monetary operations would help absorb excess liquidity and enhance monetary policy transmission. Directors concurred that accelerating the restructuring of the large state-owned banks is also essential. They encouraged further modernizing the private banking sector, including by facilitating the establishment of correspondent banking relationships, reducing regulatory uncertainties, and promoting efficiency and competitiveness of private banks.
Directors emphasized the need for structural reforms to unlock private sector development. They encouraged leveling the playing field between public and private jobs, boosting female labor force participation, and reforming education and labor laws. Directors agreed that improving governance and combatting corruption are also key and encouraged further strengthening the AML-CFT framework, enhancing public procurement and business regulations, and addressing electricity sector inefficiencies. Directors welcomed the renewed efforts toward WTO accession. They also encouraged the authorities to improve the coverage and timeliness of statistics.
Directors concurred that close engagement with the Fund, including through continued technical assistance, would be useful, and welcomed the authorities’ request for a Policy Coordination Instrument.
It is expected that the next Article IV consultation with Iraq will be held on the standard 12-month cycle.
[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.
[2] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here:
"RV UPDATE" BY MILITIAMAN, 20 MAY
Militia Man
The United States of America said they supported Iraq having accession to the WTO...Saudi Arabia...did 15 years worth of work, in a year, to help Iraq...All the requirements for joining were completed...Now the IMF directors welcomed renewed efforts towards WTO accession..
Saleh says if you do a float it's dangerous, it's going to turn out to be unruly...He also said he's going to have a mixed or managed float, which is going be stabilizing...They had about 4 articles about that...Why are they saying it and giving one specific option? Because that's what they're going to do...All the different ways of doing it were negative but the one [positive one] was a managed float. That's a mix between a floating currency and a fixed. They manage it and that's the most stable...
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