DINAR REVALUATION REPORT: Objective of the Committee Iraqi Government's Initiative to Enhance Banks' Compliance with International Standards, 20 SEPT

 Objective of the Committee

Iraqi Government's Initiative to Enhance Banks' Compliance with International Standards

On September 19, 2024, the Iraqi Prime Minister, Mohammed Shia Al-Sudani, announced the formation of a high-level committee aimed at aligning Iraqi banks with international financial requirements. This initiative reflects the government's commitment to advancing economic reforms and supporting the private sector, particularly the banking industry.

The committee's primary objective is to develop strategies and measures that ensure Iraqi banks meet global financial standards. Al-Sudani emphasized the need for strong domestic banks adhering to these standards to contribute effectively to the country's development. 1

Relationship with Financial Institutions

The Prime Minister directed the Private Banks Association to foster balanced relationships with financial institutions, Arab banks, and investors to strengthen the banking sector. This directive is crucial for the sector's growth and its ability to support Iraq's economic vision.  2

Collaboration with International Experts

Al-Sudani also highlighted that the Central Bank of Iraq has contracted with Oliver Wyman, a global management consulting firm, to assist in the development of the banking and financial sector. 1 This collaboration is expected to bring in international expertise and best practices.

Challenges and Opportunities

Iraq's banking sector faces challenges, including the need for modernization and diversification, as noted in the BTI 2024 Iraq Country Report. 3 The formation of this committee presents an opportunity to address these challenges and enhance the sector's competitiveness on a global scale.

Economic Outlook

According to the IMF's 2024 Article IV Consultation with Iraq, the country's economy is experiencing a strong recovery. 4 The fiscal expansion, which began in 2023, has supported the non-oil economy's growth. However, the report also highlights the need for sound macroeconomic policies and structural reforms to ensure long-term stability and economic diversification.

The government forms a higher committee to adapt Iraqi banks to international financial requirements, 20 SEPT

  The government forms a higher committee to adapt Iraqi banks to international financial requirements

9/19/2024

Prime Minister Mohammed Shia al-Sudani announced on Thursday the formation of a higher committee to address the work of Iraqi banks in accordance with international financial requirements, while directing private banks to build balanced relations with financial institutions, Arab banks and investors.

Al-Sudani's media office stated in a statement received by Shafaq News Agency that the latter received today the head of the Private Banks Association and a number of directors of private banks, and was informed of the problems facing the banking sector in Iraq.

Al-Sudani pointed to the measures taken by the government to support the private sector in general, and the banking sector in particular, as part of the priority of economic reform, in which the government has made advanced progress.

He explained that "there is no alternative but to have capable Iraqi banks that adopt all financial standards to participate in development and building the country," stressing the importance of the Banking Association dealing with government trends and investing in opportunities.

He pointed out the readiness of Arab and foreign banks whose representatives visited Iraq to cooperate with the government in implementing its vision and development plans.

Al-Sudani announced the formation of a higher committee to develop treatments for the work of banks, to be in line with the requirements of work in the international financial arena, confirming the Central Bank’s contract with Oliver Wyman Company with the aim of developing the banking and financial sector.

He directed the Banking Association to build balanced relations with financial institutions, Arab banks and investors to support banking work. He also directed the preparation of a draft resolution to be presented to the Council of Ministers, which includes obligating ministries to provide facilities that support the banking sector in Iraq.  LINK

LATEST FROM WOLVERINE, 20 SEPT

 Thurs. 19 Sept. 2024 Wolverine 

Invitations to the P Group have gone out. They are starting this weekend. It is happening. …September is called the Golden Month by Bond Holders because they have been told everything is happening in September.

 Bond Holders are presently in Reno and other parts of the World awaiting release of liquidity for the Global Currency Reset. We are defiantly close.

 Redemption Center staff  have been trained. The QFS is fully integrated. 

… Rubem Baz said, “At 15:30 Brazilian time on Tues. 17 Sept. was the last procedure between Brazil and Reno (USA). Tomorrow Wed. 18 Sept, after 11:00am invitations to go to the bank will be sent. In 48 hours (Fri. 20 Sept.) we will go liquid. This portion is 1%. 

Finally there is nothing left to do. Payments will now begin.” …“Things are defiantly happening behind the scenes. We are going to be celebrating this week. There are things that I can’t say, but I wanted you to know that things are defiantly moving.” … 

“I agree with Mr Salvage report on German Bastidas who is one of the leaders of the Pentecostal Group. They have now finished all the contracts with the Call Centers which are located in Brazil.

 On Mon. 16 Sept. 2024 notifications began to be delivered. On Tues. 17 Sept. 2024 they closed the platforms and were ready to begin start the blessing. They will begin sending the transactions from the 1st to the 2nd of October to each member.”

DINARES GURUS/ DINAR REVALUATION RV HIGHLIGHTS!! @DINARREVALUATION

DINAR REVALUATION REPORT: Parliamentary Finance Committee's Visit to Erbil: A Focus on Non-Oil Revenues, 19 SEPT

 Parliamentary Finance Committee's Visit to Erbil: A Focus on Non-Oil Revenues

In September 2024, the Iraqi Parliamentary Finance Committee is scheduled to visit Erbil, the capital of the Kurdistan Region, to discuss non-oil revenues and other financial matters. 1  3  5

Background on Iraq's Fiscal Landscape

Iraq, heavily reliant on oil for its revenue, has been grappling with fiscal challenges and a need for economic diversification. 1 The country's ongoing efforts to modernize its financial and banking sectors and reduce dependence on oil have been hindered by political dynamics. 1 As of September 19, 2024, the Iraqi government faces a potential crisis due to plummeting oil prices, which could jeopardize its ambitious plans. 4

Recent Developments in Baghdad-Erbil Relations

The relationship between the federal government of Iraq and the Kurdistan Regional Government (KRG) has been tense, particularly over revenue-sharing disputes. 2The KRG has been accused of not meeting its obligations to hand over 400,000 barrels per day of crude production to the state marketer SOMO. 2 The dispute has been further complicated by Turkey's refusal to reopen its port of Ceyhan to Iraqi crude exports. 2

Non-Oil Revenues: A Strategic Focus

In light of the ongoing fiscal challenges and the need for economic diversification, the upcoming discussions between the Parliamentary Finance Committee and the KRG will likely focus on non-oil revenues.  3 These revenues are crucial for the sustainability of the Iraqi economy, especially given the volatility of oil prices. 4

The Role of Non-Oil Revenues in the Budget

Non-oil revenues, which include taxes, fees, and income from various sectors such as agriculture and tourism, play a vital role in the federal budget. 1 The 2024 budget, which was approved by the Iraqi government in March and sent to the legislature for voting, includes a record $152 billion in spending.  3 The budget originally allocated 12.6% of the spending to the Kurdistan Region. 3 However, the final numbers may have been adjusted during the voting process. 3

Challenges and Opportunities

The discussions between the Parliamentary Finance Committee and the KRG will address the challenges and opportunities associated with non-oil revenues. 3Economic experts have suggested that Iraq must implement serious plans to reduce imports, encourage the private sector, cut unnecessary expenditures, and increase non-oil revenues. 4

Parliamentary moves to increase state financial revenues, 20 SEPT

 Parliamentary moves to increase state financial revenues

The Parliamentary Finance Committee revealed that it held a meeting with the Ministry of Planning to present proposals to maximize the state's non-oil revenues.

The committee's vice-chair, Ikhlas Al-Dulaimi, said in an interview with "Al-Sabah", followed by "Al-Eqtisad News", that "the committee met with the Ministry of Planning and had some proposals regarding maximizing the state's non-oil financial resources, indicating that these proposals need support from the Finance Committee, which will meet with a delegation from the Ministry of Planning to exchange views and proposals that would maximize the state's non-oil revenues."

Al-Dulaimi added that "the tax rate set by the government is very small and does not match the volume of imports, which amounts to approximately 20 trillion dinars. Therefore, this volume of imports should be accompanied by taxes commensurate with its size, but due to the old legislation that is not consistent with the state's vision and does not match the work of other bodies, the need calls for us to review and study the laws."

The MP pointed out that "the Finance Committee is adopting this issue, by submitting a comprehensive study aimed at maximizing non-oil revenues, especially taxes and customs."
It is noteworthy that the Finance Committee held a meeting the day before yesterday, Monday, which discussed the activation of non-oil revenues.

The head of the committee, Atwan Al-Atwani, stressed during the meeting the need for a representative from the committee to attend all meetings of the other parliamentary committees, to express an opinion on the joint laws, while the committee decided to conduct a field visit to the Kurdistan Region and the ports to follow up on the related control procedures.

The committee also discussed the possibility of legislating a special law on collection and taxation for all economic sectors, or including them in the economic reform law, in addition to discussing the proposal to establish a sovereign fund for the country, and forming a team to review government procedures related to revenues and estimate financial returns according to spending units. link

MILITIAMAN CC NOTES HIGHLIGHTS: ANALYSIS OF ART. 140 & non oil growth , 20 SEPT

Summary

Iraq is focusing on boosting non-oil revenues and digital transformation, with significant government and financial developments underway.

Highlights

• 🇮🇶 Iraq is prioritizing non-oil revenue growth.
• 💰 Central Bank governor asserts oil price decline doesn’t impact exchange rates.
• 📊 New electronic tax collection mechanisms are being implemented.
• 🌐 Strategic partnership with Apple aims to enhance Iraq’s digital economy.
• 📅 Article 140 discussions indicate progress in governance and justice.
• 🔍 Enhanced audit processes for transactions are being introduced.
• ⚖️ Commitment to financial transparency and accountability is increasing.

Key Insights

• 📈 Non-Oil Revenue Focus: Iraq’s shift towards a private sector economy is essential for reducing dependency on oil, which is crucial for sustainable growth.
• 🔄 Economic Model Development: The proposed economic model emphasizes automation and free trade principles, indicating a move towards modernizing Iraq’s economy.
• 💵 Central Bank Stability: The Central Bank’s ability to defend the dinar’s exchange rate is key to maintaining economic stability amid fluctuating oil prices.
• 🌍 Digital Transformation: Collaborations with global tech firms like Apple highlight Iraq’s commitment to digital advancements, which can significantly boost economic growth.
• 🏛️ Implementation of Article 140: Progress in addressing historical injustices reflects the government’s dedication to political and social stability.
• 📉 Enhanced Audit Mechanisms: The shift to real-time audits for remittances demonstrates a commitment to financial integrity and reduces corruption risks.
• 💳 Electronic Tax Collection: The move towards digital tax collection streamlines processes, enhances efficiency, and improves government revenue tracking.