And here what happened since December 24 until December 27
here is a summary for this week for the digital payment system showing their readiness to go
On Sun
1- the CBI told exchange companies that they can get licenses for using digital payment service providers such as :
Asia pay ( needs FX rate )
On Tue
the CBI announced launching
1- instant payment
2- banks cards
3- digital gateway
Those the new mechanisms
On Thur
1- CBI sponsored the FIRST annual celebration for bankers and the ppl who printed Notes
2- CBI told exchange companies to hurry up and file their papers to get licensed to use digital service providers ASAP and anyone daily their filing will be left behind
3- the international development bank introduced electronic payment in iraq
on Fri
1-The finance committee member said
“ the new digital payment service will protect the economy from corruption and money laundering”
2- PM met with HoR speaker and said
“ it is time to integrate our work”
Meaning it is TIME to implement
It is done …. it is done.
FRANK26: "QUESTION: ...DO YOU THINK IRAQ'S INVESTMENT PORTFOLIO IS BASED ON A PROGRAM RATE... THIS IS TO INSTALL CONFIDENCE!!!".....F26
Iraq establishes 'investment portfolio' to support stability of national currency
12/26/2024
The economic advisor to the Prime Minister, Mazhar Muhammad Salih, revealed Iraq’s first step after extinguishing its foreign debts towards establishing an investment portfolio to support the stability of the national currency.
Saleh explained to {Euphrates News} that: "Since 2004, after Iraq was able to extinguish $100 billion of its accumulated debts, which are called pre-1990 debts resulting from wars and conflicts, and with the improvement in the current account of the balance of payments, the first step taken by Iraq was to establish an investment portfolio of foreign reserves."
He added, "Or what is called the country's foreign exchange reserves that perform the function of stabilizing the value of the national currency or what is called the external value of money."
Saleh said that "these assets that support the stability of the balance of payments and the national currency {i.e. foreign reserves} are one of the aspects of the sovereign funds called {quasi-sovereign wealth fund}."
He pointed out that "they differ from traditional sovereign funds in that their assets are characterized by high liquidity or investment in liquid or semi-liquid assets and are subject to a highly accurate diversification rule in foreign currencies and highly liquid financial investment tools by virtue of their function as international reserves supporting the balance of payments and stabilizing the value of the national currency." . Raghad LINK
In this week’s episode of Newsroom, host Char Smith provides a comprehensive review of the current economic reforms and developments in Iraq, focusing on various sectors such as banking, foreign investment, currency management, and legislative changes.
The episode discusses predictions regarding the dollar exchange rate and its implications for the economy, the government’s initiatives to enhance non-oil revenue, and the strategic partnerships aimed at fostering economic growth.
Moreover, the episode highlights the Central Bank of Iraq’s ongoing digital transformation efforts, including the introduction of new banking regulations and the promotion of cybersecurity.
Char also touches upon the legislative landscape, where several controversial laws are under discussion, and the emphasis on creating a stable business environment to attract international investments. The show concludes with a note of gratitude to the audience for their support and an invitation to join future updates.
Highlights
💰 Dollar Exchange Rate Fluctuations: Economic expert Aman Al timy predicts a continuing rise in the dollar exchange rate due to the suspension of the Central Bank of Iraq’s platform.
📈 Non-Oil Revenue Growth: Iraq’s government aims for non-oil revenues to reach 20% of the budget, with significant growth in non-oil GDP.
🤝 International Collaboration: The Iraqi Private Bank leads an agreement with the Frankfurt School of Finance to enhance training and consultancy in Iraq’s financial sector.
🏦 Central Bank Reforms: The Central Bank of Iraq is making strides in reforming the banking sector, managing inflation, and increasing foreign cash reserves.
🔒 Cybersecurity Initiatives: The Central Bank is focusing on cybersecurity as part of its digital transformation strategy, crucial for protecting financial technology advancements.
🏗️ Legislative Development
s: Controversial laws concerning personal status and real estate are under consideration, reflecting the Parliament’s readiness to address pressing legal issues.
🌍 Investment Opportunities: Iraq is poised for economic prosperity with anticipated growth rates and initiatives to attract American companies for gas station establishments.
Key Insights
📊 Economic Volatility: The prediction of a rising dollar exchange rate illustrates the complexity of Iraq’s economic landscape, where demand for foreign currency in parallel markets is increasing due to uncertainty surrounding Central Bank policies. This volatility affects small traders and the general populace, highlighting the need for stable monetary policies.
🏛️ Shifting Budget Dynamics: The significant shift in non-oil revenues indicates a strategic pivot by the Iraqi government towards economic diversification. By enhancing non-oil contributions to the budget, the government aims to reduce dependence on oil, which has been historically volatile. This move aligns with global trends emphasizing sustainable economic practices.
🌐 International Partnerships: The cooperation agreement between the Iraqi Private Bank and the Frankfurt School emphasizes the importance of knowledge transfer and capacity building in Iraq’s financial sector. Such partnerships are crucial for modernizing the banking system, improving regulatory frameworks, and enhancing overall financial literacy in the country.
📉 Inflation Management: The Central Bank’s maintenance of an annual inflation rate of 3.7% alongside substantial foreign cash reserves demonstrates effective monetary management. This stability is vital for fostering confidence among investors and consumers, ultimately contributing to economic resilience.
💻 Digital Transformation Strategy: The Central Bank’s commitment to digital transformation and the licensing of digital banks signals a forward-thinking approach to banking in Iraq. By embracing technology, the Central Bank aims to enhance financial inclusion and accessibility, which are essential for economic growth in a rapidly digitizing world.
📜 Legislative Progress and Challenges: The ongoing discussions surrounding controversial laws in the Iraqi Parliament reflect the intricate relationship between legislation and public sentiment. While the intention to address personal status and real estate issues is commendable, the failure to pass these laws underscores the challenges of political consensus in a dynamic legislative environment.
🌱 Investment Growth Potential: The forecasted economic growth rates of 1.4% in 2024 and 5.3% in 2025, coupled with the government’s focus on attracting foreign investment, suggest a burgeoning environment for economic prosperity. As Iraq stabilizes politically and economically, it presents attractive opportunities for international investors, particularly in sectors like energy and infrastructure.
In conclusion, the insights from this week’s Newsroom highlight the multifaceted nature of Iraq’s economic reforms and the challenges that lie ahead. As the nation strives for stability and growth, the alignment of government strategies with international best practices will be crucial in fostering a resilient economic environment that benefits all citizens. The emphasis on digital transformation, legislative reform, and international collaboration sets the stage for a potentially prosperous future for Iraq, contingent upon navigating the complexities of its unique circumstances.
FRANK26: "THE MONETARY REFORM PROTECTS ITS GOLD"......F26
Gold Marking System.. Customs confirms no fake gold seized after one month of implementation
12/26/2024
Baghdad
The General Authority of Customs confirmed, on Thursday, that no cases of seizing samples of counterfeit or adulterated gold have been recorded since the implementation of the demarcation system at Baghdad International Airport last month, while indicating that the ASYCUDA system has achieved gradual progress in digital transformation.
The Director of the General Authority of Customs, Ahmed Al-Akidi, said in a statement reported by the official news agency, and reviewed by "Al-Eqtisad News", that "the Authority continues to implement the process of marking and labeling gold jewelry at Baghdad International Airport, based on Cabinet Resolution No. (23/671), and this was done by opening a center for standardization and quality control inside the airport."
He pointed out that "this step contributed greatly to facilitating the entry of gold by providing safe procedures for its transport and registration," indicating that "no cases of seizure of fake or adulterated gold have been recorded since the implementation of this process began."
Regarding paper transactions, Al-Akeedi explained that “the Authority still relies on paper transactions,” noting that “the ASYCUDA system is being implemented gradually, with the aim of a complete transition to electronic transactions, as the current rate of electronic transformation is estimated at about 50 percent.”
...we did hear from a group of very informed individuals that are part of this process...They're part of the release. They said the release is coming very shortly...
What does it mean?
...Well, in this case, it means a couple of days. Releases are coming very shortly...It's coming...what I've heard since then and these were extremely
valuable people that were bringing this to us... the highest of the high...we are looking for a green light from treasury/slash/Wells Fargo to release this to us over the next couple of days...Let's see what happens over the weekend.
