The Central Bank of Iraq announced on Sunday that fines imposed on banks and non-banking institutions (exchange companies) amounted to more than 43 billion Iraqi dinars during the past three months.
A table of the bank, which Shafaq News Agency reviewed, showed that the fines imposed on banks and financial companies during the past three months, starting from last April until the end of last June, amounted to 43 billion, 465 million, 532 thousand, and 931 dinars.
The table showed that “the fines also included 102 administrative penalties for these banks and non-banking institutions, distributed between warnings, alerts, and grace periods.”
The table showed that "May witnessed the highest fines on banks and non-financial institutions, as these fines reached 34 billion, 2 million, 141 thousand, and 100 dinars, with 42 administrative penalties, while June witnessed the lowest fines, reaching 2 billion, 829 million, 157 thousand, and 288 dinars, with 30 administrative penalties."
The table did not show the names of the banks that were fined and subjected to administrative penalties.
The Iraqi Stock Exchange Investors Association had criticised the Central Bank of Iraq’s increase in fines on banks, noting that it would affect the profitability of investors in the shares of these banks. LINK
[via PDK] There is so much going on this morning. There are all these rumors that they have the rate - but we can’t go to the bank yet. So take them with a bit of salt...
Folks in Geneva and the WTO are dead quiet. If they are trying to keep the RV quiet like Kuwait-they may be trying to keep the WTO news quiet until they have taken some of us in…and announced things publicly.
..once again I have some redemption center/banking folks that will be working part time this weekend. Not on call…but physically being asked to go in for a set number of hours…this is the second weekend in a row.Is it to throw us off and think it could go? I don’t know.
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Q & A WITH MARKZ
QUESTION: Can we still pick from a list for projects at our exchange ??? I also heard you can choose from projects they if we want to?
MZ: I have heard that – I have also heard we will be given access to those choices when we set our appointments so we are prepared when we get there.
QUESTION: Mark, do you think CMKX and PP’s would go before the humanitarian projects money?
MZ: No- I think they may go at about the same time.
QUESTION: Will we still be signing NDA’s?
MZ: I keep hearing mixed stuff. I am hearing now that if you don’t have historic bonds or Zim –there will not be an NDA. That is what I hear from banking contacts.
QUESTION: MarkZ, do you think the RV will happen in waves? First Dinar, then a few months later, VND?
MZ: No, I think they will still all go at the same time.
QUESTION: How will those sending out notifications emails to us know our email address?
MZ: Once again….if you joined a group early in this process….or bought currency with banks ect…they may have your email address….BUT…I suggest you subscribe to a Dinar site like Recaps or Chrinicles to get the information emailed from them to you when notifications come out. I have had 2 banks tell me they absolutely will send the information to Dinar Recaps and issue their instructions to them for their newsletter email list.
QUESTION: Mark, how many contacts do you have in total that are legitimate?
MZ: That’s always a tough one. They can be the best contacts on the planet. …. But, there is such a disinformation campaign going on it doesn’t matter if they are top level paymasters ect….but everything coming from a Treasury source is suspect because they have to confuse the timing. This disinformation is purposeful. I argue it is hurtful and not needed at this point.
Dollar prices exceed their limits: Are we facing an unprecedented cash crisis in Iraq?
Currency exchange markets in Iraq witnessed a significant increase in the exchange rate of the US dollar against the Iraqi dinar this Monday morning. Prices in the markets of Baghdad and Erbil, the capital of the Kurdistan Region, recorded a significant increase, which raises questions about the possible causes and economic impacts of these changes.
Price hike details
t the opening of the two main stock exchanges in Baghdad, Al-Kifah and Al-Harithiya, the dollar rose to 149,250 dinars for every 100 dollars, compared to 149,000 dinars recorded yesterday. In local markets, the selling price of the dollar reached 150,250 dinars, while the buying price recorded 148,250 dinars for every 100 dollars. In Erbil, the dollar also recorded an increase in exchange shops, where the selling price reached 149,400 dinars and the buying price 149,300 dinars for every 100 dollars.
Possible reasons
The rise in the dollar exchange rate is due to several possible factors, including:
Changes in supply and demand: There may be an increase in demand for the US dollar by businesses or individuals, causing the price to rise.
Global economic shifts: Changes in global economic policies and oil prices can affect currency exchange rates.
Local economic conditions: Local economic challenges, such as fiscal deficits or political tensions, may lead to exchange rate fluctuations.
Economic impacts
This increase comes at a sensitive time for the Iraqi economy, as it may lead to several noticeable economic impacts:
Increased import costs: As the dollar rises, the cost of imports will become higher, which may affect domestic prices of goods and services.
Impact on citizens: Citizens who depend on importing goods and products in dollars may be affected by an increase in the cost of living.
Impact on investment: A rise in exchange rates can have negative effects on foreign and domestic investment, as investors may look for more stable markets.
The rise in the US dollar exchange rate against the Iraqi dinar is an important issue that requires close monitoring. It is important for investors and economic decision makers to monitor developments and take the necessary steps to mitigate the potential negative effects on the national economy. link
Once they remove these 3 zeros from the exchange rate...it's going to gain in the new value. But that's not where they wanted at the RI. They will float it and they will re-denominate and then it will hit an RV as it floats from an RI back to the RV.
There will be an increase in the Iraqi dinar but it won't effect you [Iraqi citizens]..
Do they need to have value to their currency in order to join the WTO?
No. That's coming...I don't care if they going into the WTO now, tomorrow, next week, whenever. They're probably moving it to the beginning of next year. It's not important. But the evidence of being in the WTO screams what? Monetary reform float.
The Iraqi dinar first will come out as a reinstatement instantly and work itself back up to an RV..
The advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, confirmed today, Monday, that the banking reform and development strategy is the main pillar for reforming the comprehensive national economy.
Al-Nusairi said in a special interview with “Al-Eqtisad News” that “the strategy of banking reform and development is the basic pillar for comprehensive and radical reform of the national economy in line with what is stated in Article Twelve, Paragraph (7) of the government program, which clearly and accurately stated that (banking reform, with what it provides of a real and effective basis for the advancement of the Iraqi economy and the activation of investment through the restructuring and mechanization of government banks, reviewing their work, and stimulating and enabling private banks to be able to support investment and development in a real way).”
Al-Nusairi touched on the "importance of the banking sector, as it occupies a vital position within the financial structure of the economy in mobilizing savings and financing development through its ability to flow money between the categories of the national economy, which is the basic step for economic reform."
He pointed out "the measures currently taken by the Central Bank with the support of the government to launch its new third strategy for reforming and developing the banking sector for the years 2024-2026 according to seven main objectives, 24 sub-objectives and 75 initiatives to implement the objectives focusing on achieving monetary and financial stability, strengthening the banking sector, enhancing digital transformation, activating electronic payment, enhancing financial inclusion, maintaining a sound financial system, developing the organizational structure and human resources, strengthening the internal and external relations of the Central Bank, and the banking sector's compliance with international standards."
Al-Nusairi pointed out that "a national strategy for bank lending in Iraq for the years 2024-2029 was launched, aiming to increase credit granted to the private sector by 4% of the non-oil GDP, which is equivalent to approximately 7 trillion dinars, and the second goal is to increase credit to small and medium enterprises by 3% of the non-oil GDP, which is equivalent to approximately 5 trillion dinars."
He stressed that "the new mechanisms depend on organizing the granting of loans to develop small, medium and micro enterprises by relying on and relying on a new approach to determine the basic objectives of economic development, evaluating the current situation of private sector financing, and benefiting from international experiences in this field, as well as continuing the procedures and using monetary policy applications to control the exchange rate and reduce the gap between the official rate and the parallel rate towards reaching the targeted and balanced exchange rate."
Al-Nusairi explained that, "If it were not for the many services provided by the banking system in developed countries, these countries would not have been able to achieve the progress and economic growth they have achieved."
He explained that "the strength of the banking structure has become a necessity for building a prosperous economy that adopts modern systems and sound sustainable development. The development of banking habits and awareness of the importance of developing banking institutions in a way that ensures the building of a national savings base and develops the financial resources necessary to build the economy have become priorities for decision-makers."
The advisor to the Private Banks Association continued: “The soundness of the banking system and the mobilization of sound decisions in the field of economic policies towards developing and modernizing banking systems ensures the achievement of momentum in the world of real and financial investment, which stimulates financial and monetary markets, which leads to attracting foreign capital seeking profit.
Therefore, the decision-maker should take the necessary measures to fortify and strengthen local banking systems in a way that makes them capable of facing the challenges of transferring capital to and from abroad without causing money laundering or smuggling foreign currency, and then increasing the profitability of financial and banking institutions and strengthening the structure of the gross domestic product, which is what the government and the Central Bank are currently active in.” link