A meeting of the Iraqi Cabinet this evening approved an increase in Iraq's quota at theInternational Monetary Fund (IMF)by 831.9 millionSpecial Drawing Rights (SDR), equivalent to 1.45 trillion Iraqi dinars [$1.1 billion] based on the exchange rate as of October 8, 2024.
This 50-percet increase in Iraq's previous quota will enhance the country's voting power within the IMF.
The additional allocation will be included in the 2025 budget.
The IMF created SDRs as an international reserve asset to supplement member countries' official reserves; they are not a currency, but rather a claim on freely usable currencies of IMF member countries. They serve as a potential source of liquidity for IMF member nations.
SDRs represent a weighted basket of major international currencies, and can he held as part of a country's foreign exchange reserves. Adding SDRs to a country's international reserves makes it more resilient financially.
Taif Sami: The Regional Government Has Not Handed Over Its Oil Revenues To The State Treasury
Local | 10/13/2024 Mawazine News - Baghdad The Ministry of Finance announced on Sunday that it will release 400 billion dinars from the governorates’ allocations, while indicating that the fluctuations in oil prices caused a problem in achieving revenues.
The ministry said in a statement received by Mawazine News, that “Minister of Finance Taif Sami appreciated the support of the parliamentary finance committee, its chairman and members, for the ministry’s work, while she presented a detailed presentation on the ministry’s steps to address the budget deficit and the problem of lack of funding.”
Minister Sami said, according to the statements, that “the fluctuations in oil prices caused us a problem in achieving revenues,” calling on “the finance committee to help the ministry with regard to the problem of non-oil revenues with the regional government, as it has not handed over its oil revenues to the state treasury since the Federal Court’s decision to pay the salaries of Kurdistan employees.”
She added, “The salaries of the region’s employees are estimated at 13 trillion dinars, as all that the Kurdistan Regional Government has paid is 320 billion dinars from its non-oil revenues.”
She pointed out that "financial allocations for the ration card and the food basket were secured, sufficient for the next six months, and that the improvement in oil prices was naturally reflected in the financing, as we will release today more than 400 billion dinars from the governorates' allocations." https://www.mawazin.net/Details.aspx?jimare=255947
Member: Question about rates: is the rate at the redemption centers THE rate? Or could it float up if we wait? Or down if we don’t get in on time?
Member: RC rate is better than Forex rate. Remember, 'A bird in the hand is worth 2 in the bush'. imo.
Member: RV Intel? Bond holders?
MZ: I am still not seeing any activity on Asian bonds. Everything that I am hearing and seeing this week and last week has been on the German bonds. There were a couple meetings last night and there are bond holders who keep saying that absolutely this is our week.
MZ: I have facilitators saying “They are telling us this is our week…..that everything is complete…but have not seen much yet. They are waiting on the final “GO” to distribute the funds to the holders.
MZ: The bond holders seem more hopeful than the facilitators that this is our week. I was hoping to have more news than that this week.
Currency Auction Likely To Be Cancelled In Response To International Pressure To Combat Financial Smuggling
October 14, 2024 Baghdad/Al-Masala: As part of the efforts made to reform the financial and economic system in Iraq, the Central Bank is moving towards canceling the currency auction, in response to international pressures aimed at regulating the circulation of the dollar and reducing illicit flows.
At the same time, the digital banking sector faces challenges related to the lack of legal legislation regulating its work, in light of the growth of this financial technology. In addition, there is increasing oversight of the real estate and gold markets to prevent money laundering operations, with the imposition of new mechanisms that limit suspicious transactions in this field.
Financial analyst Safaa Al-Shammari said that the Central Bank of Iraq is moving towards implementing a decision to cancel the currency auction, noting that these measures come in response to international pressure and strict negotiations. Al-Shammari also highlighted the need to develop the legislative framework for digital banks, which have begun to emerge without sufficient legal oversight.
Speaking on a TV show, Al-Shammari explained that “the Central Bank of Iraq will work to stop the currency auction as part of its commitment to the conditions imposed at the New York meeting,” adding that “the United States refuses for the dollar to reach entities subject to sanctions, which affects unofficial import operations, especially from Iran and Syria.”
Regarding digital banks, Al-Shammari stressed the urgent need for legal legislation to regulate the work of these new financial institutions, pointing out that there is a digital bank in the Kurdistan Region that has not obtained a license from the Central Bank. He also pointed to tightening control over the real estate market to combat money laundering, adding that “the gold trade has also come under strict control to prevent any violations.”
Tightening control over the real estate market to prevent money laundering requires a set of regulatory and supervisory measures in coordination between financial and banking bodies and legal entities.
These measures include imposing financial limits on real estate transactions that require additional monitoring, such that any purchase or sale exceeding a certain amount is subject to intensive financial investigations to ensure the legitimacy of the source of the funds.
Buyers and sellers must also be required to provide documents proving the source of funds used in transactions, and here banks play an important role in examining financial accounts and detecting suspicious transfers.
Analysts say it is essential to create a national database for all major real estate transactions to track financial movements related to real estate, making it easier to detect unusual patterns that may indicate money laundering. Cooperation between banks and regulatory bodies should also be enhanced, with banks monitoring accounts and financial transactions related to real estate transactions and reporting any suspicious activity to the relevant authorities.
In addition, strict laws are required to require parties involved in the real estate market to disclose the identity of the beneficial owner of a real estate transaction to track down parties that may seek to hide illicit funds.
The analysis indicated that international asset auditing is also important to ensure transparency of foreign investors’ investments and cross-border transactions. Banks play a pivotal role in combating money laundering by examining financial transactions related to real estate deals and verifying the sources of large amounts of money used in purchases. https://almasalah.com/archives/103271
Member: If there is an announcement this week that Iraq has ascended to full-membership in the WTF, does that mean the new IDQ rate is public?
MZ: Most likely when they announce the official WTO ascension we will see a public rate….imo
Member: The WTO needs the rate, we don’t need the WTO.
Member: Yesterday Frank 26 said Iraqi emoloyees would not get paid on the new rate this pay period but will next pay period. I wonder -How long is a pay period in Iraq?
