Is Iraq Affected Economically By The Current Events In Syria? Al-Sudani’s Advisor Explains, 8 DEC

 Is Iraq Affected Economically By The Current Events In Syria? Al-Sudani’s Advisor Explains

Money and business  Economy News – Baghdad  The Prime Minister's Advisor for Economic Affairs, Mazhar Mohammed Salih, confirmed the strength of the Iraqi economy, its financial flows and its trade relations, noting that this economy was not affected by the tensions taking place in the Syrian arena.

The Syrian economy is a sanctioned economy by countries such as the United States and some other European countries, and therefore all banking relations (for Iraq) with Syria are basically unavailable," Saleh said.

He explained that "trade with Syria is mostly border trade and consists of simple, natural civilian goods such as agricultural crops or something like that."

Limited" impact on border trade

Regarding the impact of the events in Syria on the exchange rate of the dollar in Iraq, Mazhar Muhammad Salih said that “the current events are in Syria and not in Iraq,” adding that “the problems in Syria may affect some of the simple border trade known, or which is civil or related to the tourism sector, and some simple problems and disturbances may occur, but they are not major disturbances.”

Coinciding with the advance of the Syrian armed opposition forces and their control over Syrian cities, the currency exchange markets in Baghdad witnessed, last Friday evening, a rise in the dollar exchange rate from 1495 dinars to 1510 dinars per dollar.

The Iraqi Prime Minister's advisor for economic affairs pointed out that "the Iraqi economy, by nature, has high cash flows from its oil trade and global trade with large trade sources, while the minor fluctuations that are taking place are nothing but colorful noise."

He explained that "the parallel markets usually benefit from any political event in neighboring countries, for example, to raise the price, and for speculators to benefit, so this is a temporary speculation that leads to very simple price disturbances, and has no relation to the Iraqi economy, and is called information markets, so what is happening in Syria at the present time will not affect the Iraqi economy, and our economy is completely isolated from the Syrian issue."

It is noteworthy that the volume of trade exchange between Iraq and Syria has exceeded the one billion dollar barrier, according to the head of the Iraqi-Syrian Business Council, Hassan Sheikh Zeini.

There are joint committees between the two countries looking for a mechanism for trade exchange away from the dollar, as Syria currently exchanges with the European currency, the euro, and the two countries may use the Russian ruble, the Japanese yen, the Chinese yuan, the Emirati dirham, or other currencies to sustain trade exchange between them, according to Sheikh Zini.

"Iraq is economically fortified"

Saleh stressed that "the country is immune and there is no fear for our trade because it is governed by the central policies of the state," noting that "Iraq obtains its budget from major oil revenues, which strengthen the banks' finances and finance Iraq's foreign trade, not the domestic market," adding that "the parallel market is a completely superficial market and does not indicate anything in reality about the Iraqi economy at the present time."

The Prime Minister's advisor for economic affairs stated that "the parallel market benefits from the neighboring unrest and does not pose any threat to the Iraqi economy and does not represent anything, and we are immune to what is happening in Syria," explaining that "the problems in Syria are not new to it and have existed since 2011, so there is no fear for the Iraqi economy, which is immune and neutral from the problems of others."

Saleh stressed that "our policies are disciplined, so what is happening in Syria does not affect the overall economic situation, and an increase in the exchange rate by one or two dollars could quickly return to its previous state, perhaps through a single statement."

He believed that "Iraq's economic situation is secure, its oil policies are calm, its trade relations with the outside world are going well, and its cash flows from cash revenues are good and beyond reproach, and thus the economic situation is stable."

https://economy-news.net/content.php?id=50611

MAJEED: " THE RATE HAS TO POP UP ON FOREX" , 8 DEC

 MAJEED

On Thursday … they admitted they only have 3 days left in this legislative term Which lands it on tomorrow, Sunday as their last day The finance committee met on Thursday to discuss the exchange rate plus changing the oil price in the budget So their meeting tomorrow will be on changing the oil price in the budget based on the new exchange rate Then when it goes public on the gazette “ it becomes effective immediately” Meaning the rate has to pop up on Forex.

BROTHERS TECHNOLOGY: " THE SMOKE SCREEN HAS BEEN ACTIVATED" @DINARREVALUATION #iraqidinar

 

Iraqi parliament unlikely to discuss General Amnesty today, MP says, 8 DEC

 Iraqi parliament unlikely to discuss General Amnesty today, MP says

Shafaq News/ Iraq's parliament is unlikely to discuss divisive legislation, including the General Amnesty Law, during its session on Sunday due to a lack of political consensus, MP said.

Firas Al-Muslmawi, a member of the SLC, told Shafaq News, "The lack of political consensus is likely to postpone these laws to the next legislative term. "

Al-Maslamawi suggested the session could pivot to addressing recent developments in Syria. "Parliament may issue an official stance on the unfolding events in Syria, which carry significant security and political implications for Iraq," he added.

Meanwhile, a parliamentary source told Shafaq News that Speaker of the House, Mahmoud Al-Mashhadani, and political bloc leaders held a meeting at the State Forces Alliance office to discuss today’s session agenda, approve laws, and deliberate on the situation in Syria and its implications for Iraq.

MAJEED: " SOUNDS LIKE CBI IS READY TO GO" , 8 DEC

MAJEED

Central Bank of Iraq meeting today The meeting, led by the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, and representatives from the Innovation Center at the Dubai International Financial Center, focused on fostering cooperation in various areas: 1.Innovation and Entrepreneurship: Promoting collaboration in financial technology, artificial intelligence, and advanced infrastructure. 2.Banking Systems and Payments: Supporting innovation in banking and electronic payment solutions, and creating opportunities for startups to access Iraqi, regional, and global markets. 3.Capacity Building: Developing training programs to enhance Iraqi expertise in global financial technology trends and regulatory cooperation. 4.Strengthening Partnerships: Encouraging collaboration between financial institutions, startups, investors, universities, and other institutions to support entrepreneurship. http://5.Vision for Digital Transformation: Committing to building a digital economic system and comprehensive financial structure based on technology and innovation. sounds like CBI is ready to go

MAJEED : BIG CHANGES WILL COME IN THE 2025 FOR THE IRAQI DINAR @DINARREVALUATION #iraqidinarinvestor

 

Rafidain Bank Restructuring Program.. Justifications and requirements, 8 DEC

 Rafidain Bank Restructuring Program.. Justifications and requirements

After the Prime Minister confirmed during his meeting with the representatives of Ernest Young Company the importance of developing the work of the government banking sector to enhance the confidence of citizens and local and foreign investors in the government banking sector in particular and the economy in general, the restructuring of Rafidain Bank is the first economic reforms in the banking sector towards restructuring Iraqi government banks such as rational, agricultural and industrial, in an effort to make them play a financiallytic role for growth and stability.

Rafidain Bank has witnessed accumulated internal problems inherited from the previous system and the subsequent governments after the change, which appear around banking, credit and administrative policies that affected the bank’s credit capacity and the size of its banking stability and its operational and financial efficiency, as Rafidain Bank still suffers from many fundamental problems at the heart of banking, namely:

The balance sheet of Rafidain Bank suffers from the debts arising from its debts as a result of issuing letters of guarantee and fixing credits in favor of government departments and companies, which, with the accumulated interest, exceeded their normal limits.

Low credit capacity of the bank.

Limited ability to keep up with the developments in the banking industry.

The decline of the bank’s ability to meet its obligations in accordance with profitability indicators, capital solvency indicators, the ratio of equity to total assets and the rate of equity to total deposits, which indicates the weakness of the bank’s activity in meeting its fiduciary duties.

Hardened banking legislation and non-building of development policies for banking services through advanced banking techniques.

Hence, the restructuring is expected to improve its performance in what it is working to rehabilitate to be able to increase its efficiency in managing its balance sheet and improve its ability to achieve profitability indicators, capital solvency and resource employment indicators. Through the redesign of the bank’s organizational structure, the creation of new departments and the integration of the existing with new ones, which can result in the development of the bank’s tools and objectives in order to improve the performance of the bank’s structure in the regulatory and control infrastructure, the rules of solvency, liquidity and its lending policy and the formulation of its relations with other banks on the one hand and government units and others on the other hand.

Therefore, it is possible at the theoretical level after the restructuring process, the bank’s performance will improve, increase its productivity in the short and long terms and raise its financial and operational efficiency, as reducing the cost of banking operations and directing the process of participation in decision-making towards what is in line with banking decentralization. The new structure is expected to aim to avoid credit bankruptcy by limiting the accumulation of inefficient balances and avoiding a credit crunch.

But in fact, we see that the restructuring process faces several challenges, the most important of which are the difficulty of attracting and attracting the required sufficient capital, the low savings rates, the weakness of the capital market, the high cost of modern technology and the development of related systems, and the high cost of training workers in the banking sector.

Therefore, a restructuring program should be directed to secure two strategic requirements:

The first requirement: revolves around the goal of restructuring the operating side in order to achieve its financial stability. The goal is to restructure the aspects of money in a way that works to restore the bank’s ability to comply with the minimum capital adequacy and other hedging requirements.

The second requirement: It includes two objectives, the first is concerned with restructuring the bank in accordance with an accurate and clear plan for the short, medium and long term in the institutional and operational aspects, to ensure the bank’s harmony with the conditions of the market and customer service and in accordance with the hedging requirements contained in the Banks Law and the Central Bank of Iraq Law, and the requirements of compliance and competition. The second is to amend the laws, regulations and instructions that regulate the work of Iraqi banks to qualify them to work in light of modern banking standards and indicators to join the market requirements and to promote the prospects and requirements of growth and stability to serve the banking reform process.