Banks Economy News – Baghdad Today, Thursday, the head of the “Iraq Al-Mustaqbal” Foundation for Economic Studies and Consultations, Manar Al-Obaidi, confirmed that the Iraqi banking sector has been able to achieve growth in many areas during the past period.
Al-Obaidi said in a tweet followed by “Al-Eqtisad News” that the data of the Iraqi banking sector between 12-31-2022 and 5-31-2024 indicate that the banking sector, despite all the challenges and shocks it faced during this period, was able to achieve growth in many areas, specifically in financial inclusion, as well as an increase in bank assets and maintaining the volume of deposits despite everything that was raised about the sector.
Al-Obaidi published a table showing all the figures related to the Iraqi banking sector between December 13, 2022, and May 31, 2024. At Link Below is the table published by Al-Abidi:217 views 07/25/2024 -
https://economy-news.net/content.php?id=45590
Article: "The US Federal Reserve adopts a new strategy towards Iraq.. The dollar is threatened with rising to unprecedented levels"
Quote: "The Federal Bank has detected political influences from the Iraqi government..
.The US Federal Reserve will not be able to wait forever, and it is expected that there will be federal measures that may occur at any moment, and there will be a sudden and large demand for the dollar, which will lead to a decrease in the value of the Iraqi dinar against the dollar, which will generate great pressure on the Iraqi banking system, the Iraqi economy and the official political system.
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Article: "Iraqi banking system..A significant increase in the number of bank accounts and the volume of deposits for citizens"
Quote: "The banking system in Iraq is gradually regaining citizens’ confidence...In Iraq, economic and political challenges over the decades have provided a strong justification for keeping money at home rather than in banks.
However, the accession of the Iraqi Deposit Insurance Corporation (ICDI) to the International Association of Deposit Insurers was a decisive step in improving confidence in the banking system.
Since its accession, Iraq has witnessed a significant increase in the number of bank accounts and the volume of deposits...This development enhances Iraq’s ability to attract investment and support economic growth by converting savings into productive investments."
Time: 2024/07/25 09:45:53 Read: 1,898 times {Economic: Al Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed the cohesion of foreign reserves, especially the dollar, at the Central Bank of Iraq.
Saleh told Al Furat News Agency, "Covering urgent expenses in dollars, as they represent the desired demand for foreign currency, in addition to the level of sufficiency of incoming foreign currency flows and the level of maintaining the country's reserves of the total foreign currency held by the Central Bank, is subject to two main factors."
He explained that the first factor is "the nature of the oil asset cycle, which is still at its highest levels of global price increases due to the strength of global demand for energy, and that economic expectations indicate that potential price fluctuations towards a decline are still out of reach and are largely linked to the end of military operations in Ukraine, and the return of the flow of Russian gas and oil, especially to European markets, as the Russian Federation is the second largest oil-producing country in the world and leads the production and export of gas to major consumer markets in the European continent directly."
The other factor, according to Saleh, “is related to the surplus in the current account of the Iraqi balance of payments, as estimates issued by international financial institutions indicate that this percentage of the surplus in the current account of the Iraqi balance of payments to the country’s gross domestic product is no less than {positive 6%}, which is a very optimistic positive percentage.”
He explained that "both factors indicate the cohesion of the country's foreign reserves, which are generated by high oil export revenues to date, versus control over outward cash flows of foreign currency to meet local demand for imported goods, services and foreign benefits, as the current account of the balance of payments indicates that it is in a positive and stable position and is consistent with the general budget's spending tendencies during the current fiscal year 2024."
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FIREFLY:August is looking good...a lot is coming to a point in August. Iraq is opening up 4 military manufacturing plants...to produce military equipment and weapons. Isn't that saying the sanctions will be off?
FRANK: Your country has no sanctions.... whatsoever of any kind.
FIREFLY:TV saying CBI banks are offering a 10% gain on any investment opportunities.
FRANK: Shoot, I might even come there! They're going to give you 10% on your money if you open the bank account? ...Are you kidding me? You talk about incentives...
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FIREFLY:My bank guy did say dropping the zeros does not change the value.
FRANK: He's right. Because it's going to be 1 to 1 with the American dollar. It doesn't affect it inside. It will effect it outside. No it will not change it. When it floats it will change it.
FIREFLY: Poor countries with terrible inflation, they drop [zeros] in order to lop. We are not like that. We drop to add value. It's all inflation based.
FRANK: Yes, you drop to add value inside of your country...They wanted to be at least 1 to 1 with the American dollar in order to add this value to your currency. That's why he means that dropping the zeros won't add value to your currency...Then your currency will float on the International market and the value of your currency goes up outside your country as well. Inside, it will go from 1320 to at least 1 American dollar in order to add value which is purchasing power...If it was a lop they would be adding zeros.
Economy | 12:32 - 07/25/2024 Mawazine News – Baghdad The Parliamentary Finance Committee confirmed, on Thursday, that the procedures of the Central Bank of Iraq to change the exchange rate of the dollar in the local Iraqi markets did not have any effect and did not achieve any real actual result, revealing a legal violation related to the Governor of the Central Bank of Iraq, Ali Al-Alaq.
Member of the Finance Committee, Mohammed Nouri, said in an interview followed by / Mawazine News /, that "the Central Bank of Iraq is still continuing its wrong procedures that did not have any effect and did not achieve any real actual result in changing the exchange rate of the dollar in the local Iraqi markets, which was negatively reflected on the Iraqi reality and inflation rates rose significantly in the past days."
He added, "There is work on this issue by the Parliamentary Finance Committee, whether it was interrogations or changing the Governor of the Central Bank due to the legal age, as he exceeded the legal age, and this is a violation of the Civil Service Law,"
noting that "many topics will be addressed by the Council in the coming days, especially the dollar file due to the major delays, in addition to the control of foreign banks owned by owners of foreign capital, which causes a disruption to national security and Iraqi economic security."
For some time now, the dollar price has been declining in the parallel market, where it has stabilized at 145,000 dinars per 100 dollars throughout the past period, but it has risen again to exceed 150,000 dinars a few days ago.
Since the beginning of last year, Washington has intervened to limit the smuggling of dollars from Iraq, which has led to the dollar price rising in the local market to a record level of 170,000 dinars per 100 dollars, due to the decline in the Central Bank's dollar sales, given that it is subject to the international "SWIFT" financial system.
It is noteworthy that the Central Bank has decided to finance trade in euros, Chinese yuan, Emirati dirhams and Indian rupees, in steps to reduce demand for the dollar. https://www.mawazin.net/Details.aspx?jimare=251934
