During 2024.. The Iraqi Central Bank Imposes Fines Worth 279 Billion Dinars On Banks And Money Changers
Economy 2025-01-11 23:52 Shafaq News/ The Central Bank of Iraq announced, on Sunday, the imposition of fines on banks and non-banking institutions (exchange companies) worth 279 billion Iraqi dinars, during the year 2024. A table of the bank, viewed by Shafaq News Agency, showed that the fines imposed on banks and financial companies during the past year amounted to 279 billion and 144 million and 977 thousand and 628 dinars, indicating that “the fines also included 238 administrative penalties for these banks and non-banking institutions, distributed between warning and warning.” And the grace period.”
The table showed that “the month of January witnessed the highest fines on banks and non-financial institutions, as these fines amounted to 98 billion, 277 million, 722 thousand and 62 dinars, with administrative penalties amounting to 17 penalties, while the month of September witnessed the lowest fines, as they amounted to 2 billion, 331 million, 465 thousand and 48 dinars in penalties.” Administrative penalties amounted to 13.”
The table did not show the names of the banks on which fines were imposed, nor the nature of the administrative penalties. The Association of Investors in the Iraqi Stock Exchange criticized the Central Bank of Iraq's increase in fines on banks, noting that it would affect the profitability of investors in the shares of these banks. https://shafaq.com/ar/اقتصـاد/خلال-2024-المركزي-العراقي-يفرض-غرامات-بقيمة-279-مليار-دينار-على-مصارف-وصيرفات
The second reading of the budget law is done. Now it can be put to vote as reported earlier in December this can be put to vote after 2 readings unlike the 3 readings necessary.
This is the last hurdle I was looking to be cleared before anything happened on the currency http://front.It was done with out fan fare. Let's see when it is put to vote.sooner than later is my guess.
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#BREAKING: The Iraqi Parliament has completed the second reading of the Federal Budget Law amendment, which seeks to break the oil export deadlock in the Kurdistan Region, halted since March 2023.
The amendment focuses on addressing production and transportation costs for oil companies in the region’s fields, according to Iraqi-Kurdish lawmaker Briyar Rashid.
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Monday morning MarkZ, mods and RV’ers
Member: And another week begins!!!!!!!!!!!!!!!!!!!
Member: MarkZ!! Brent Crude 80.47 Texas time 8:43!! Let's RV!! Isn't this what we are waiting on??
Member: Could this be our week?
MZ: That’s a great question. I know a number of bond contacts are suddenly convinced that this is our week. They had been afraid it would be after the inauguration….but are now hearing they could get their 1% before…..then 9% a week or two after. Then they set up traunches (payments) for the balance.
Member: I wonder if when bonds get their 1% if we get our notifications?
Member: Will we have full access to all our funds when we exchange Mark?
MZ: Yes…I am told we will have full access on currency exchanges
MZ: Groups are pretty quiet so far today. I do know that a couple bankers have meetings this afternoon. These are members of “Wealth Management”
Member: MM is pretty excited
MZ: There has been fantastic news. Now we just need that to translate into dollars for us all.
Member: Rumors out there: HCL got approved in the parliament with the Green light to start And tonight they are updating the payment system in Iraq from 12:00 - 2:00 am
Member: I would be willing to bet that the HCL is done, we are just waiting for an event. Will be so glad when this is all over.
Member: Disappointed about the lack of quorum.
MZ: Yes we were told the Iraqi parliament did not get a quorum to do the second reading of HCL. Yet. But they do expect it tomorrow. It could be misinformation…..but that is not what I hear from the Iraqi Press right now.
Member: "Breaking the quorum" .. A demand to publish the names of those absent from the Iraqi parliament session”
Member: MarkZ, I find it curious that Tonight, Iraq is shutting down for 2 hrs, their electronic payment system!
Member: Zoom News announced that tonight at Midnight Iraq time, the payment system will shut down for updates.
MZ: They are updating their electronic systems specifically for borders and customs …this is a scheduled update. They are using the AYUSCUDA system for all their borders.
Member: "2025 budget is on the verge of legislation, and delaying the schedules will not stop the decision" - Jamal Kojer
Member: Zoom news Baghdad: The Iraqi Parliament has completed the second reading of the Federal Budget Law amendment which seeks to break the oil export deadlock with the Kurdistan Region halted since March of 2023
MZ: they are posting opposite/opposing articles…they do it on purpose to cloud the timing…...so thanks for that one. .
Member: Iraq loves smoke and mirrors.
Member: where there is smoke there has to be fire?
MZ: “Will Trump strengthen the US presence in Iraq instead of withdrawing?” The US needs to project strength in the region. Their best bet is to work closely with Iraq , who is becoming a leader in the region. I believe he will be working with the Iraqi government- not against them.
Member: Informed political source revealed, on Saturday evening, an upcoming visit by the envoy of the US President-elect, Donald Trump, to Iraq, carrying message to Prime Minister Mohammed Shia al-Sudani.
Member: Trump said Iraq talks differently privately then they do publically.
MZ: Absolutely. It is a mind set difference all throughout the Arab world.
Member: My Wells Fargo finally confirmed the RV.
MZ: They all know its coming…..They know we are having a complete change in the system and we are going asset backed…They know gold is an important piece. Im not sure if they will use the same terminology you and I use or will they call it something different?
Member: They may not call it a QFS…..but we know what the new system does….safer and faster and much better.
Member: What is your gut feeling Mark?
MZ: My gut is screaming sometime between now and Jan 22. Just a guess……
Member: If the RV doesn't happen before February this year I will be really surprised!
Member: Why does the finish line keep moving further away every week?
Member: Maybe the finish line isn’t moving…..maybe we are waiting for the starting line to begin next Monday on Jan 20th?
Member: I have my currencies & receipts in a fireproof bag, ready to go, LOL
Member: Hope everyone has a great day today!
Member: Thanks so much Mods Mark and friends....Stay positive as the best is yet to come.
Significant changes happening in Iraq’s currency system, particularly the removal of high denomination dinar notes from circulation and the introduction of lower denomination bills
💵 Currency Reform: Iraq is removing high denomination dinar notes, introducing lower denominations instead.
📈 Potential for Better Exchange Rates: The shift could lead to higher exchange rates for existing dinar holders.
🏦 Banking Reforms: Suspension of dollar auctions indicates a significant move in Iraq’s banking reforms aimed at economic stability.
⏳ Urgent Preparations Needed: Viewers are encouraged to stay informed and prepare for currency exchanges that may occur soon.
🌍 Economic Implications: The changes could enhance the overall economy, impacting both businesses and travelers in Iraq.
💬 Community Engagement: The host invites viewers to share their thoughts and experiences regarding Iraqi currency, fostering a community dialogue.
Key Insights
🏦 Transition to Lower Denominations: The Iraqi government’s decision to phase out high denomination notes (25,000, 10,000, 5,000, and 1,000 dinars) in favor of lower denominations (25, 10, 5, and 1 dinar) is a strategic move aimed at controlling inflation and stabilizing the economy. This transition is crucial for increasing the circulation of smaller notes, which could lead to a more balanced and stable economic environment. The government hopes that this will discourage the hoarding of higher denomination notes, thereby enhancing liquidity in the market.
📈 Improved Exchange Rates: There is a strong potential for improved exchange rates for those holding high denomination dinars. As financial reforms take shape, many currency holders may find that exchanging their large notes could yield higher returns. This could benefit individuals financially while also helping to strengthen the Iraqi dinar against foreign currencies.
🌟 Suspension of Dollar Auctions: The suspension of the electronic platform for selling dollars is a significant indicator of Iraq’s intent to manage its economy more effectively. By halting dollar sales, the government aims to reduce volatility in the currency market, thereby gaining greater control over its financial system. This suspension is a foundational step towards implementing broader banking reforms and stabilizing the dinar.
📊 Impact on Currency Traders: The changes in Iraq’s currency policy present new opportunities for currency traders and investors. With the potential for a revaluation of the dinar on the horizon, traders should stay informed and monitor the evolving situation closely. The end of dollar auctions may also lead to a stronger dinar, attracting both local and foreign investment, which is vital for Iraq’s economic recovery.
🔄 Historical Context of Economic Fluctuations: The current wave of reform appears to be more serious than in previous years, with the government seemingly committed to fostering economic stability. Understanding this context is essential for grasping the potential impact of the recent changes on Iraq’s economy.
🌍 Global Investment Interest: The success of Iraq’s banking reforms could attract increased foreign investment, further influencing currency value and economic stability. If the reforms are implemented effectively, it may signal to international investors that Iraq is a viable market, leading to enhanced economic prospects and a stronger dinar.
SAC: Kurdistan salary issue is technical, resolvable through dialogue
Shafaq News / The State Administration Coalition (SAC) reaffirmed, on Sunday, that the Kurdistan employees’ salary issue is a technical matter devoid of political overtones and can be resolved through dialogue and mutual understanding.
The statement followed SAC’s regular meeting at the Government Palace in Baghdad, attended by key figures, including Prime Minister Mohammed Shia Al-Sudani, Speaker Mahmoud Al-Mashhadani, and Kurdistan Region President Nechirvan Barzani.
SAC, a coalition formed in 2022 to address Iraq's political deadlock, brings together the Coordination Framework, the Kurdistan Democratic Party (KDP), the Patriotic Union of Kurdistan (PUK), and Sunni Arab political forces to foster a more inclusive and representative government.
In a statement, the Prime Minister’s office noted, “This year marks the final year of the parliamentary and governmental term. Accordingly, all parties and national forces are required to exercise the highest level of dedication in fulfilling their commitments under the government program across various sectors. This will support stability and enable executive bodies to complete their tasks in economic, developmental, service, and security domains.”
SAC reiterated its support for the government’s financial and economic reform agenda, aiming to preserve stability amid challenges. It emphasized that “the salary issue for Kurdistan Region employees is strictly technical, with no political motives, and urged all parties to refrain from media escalation.”
The long-standing salary dispute between Erbil and Baghdad resurfaces annually during federal budget discussions. Historically, Baghdad has tied the Kurdistan Region’s budget allocation to specific oil revenue conditions. The situation escalated following the suspension of oil exports via Turkiye’s Ceyhan port, prompting Baghdad to provide salaries as “loans.”
Earlier this year, the Federal Supreme Court issued a binding decision mandating the direct disbursement of salaries to Kurdistan Region employees, bypassing Erbil to avoid delays.
The coalition also addressed Iraq's regional and international engagements, advocating for a balanced, conflict-averse approach to safeguard national interests. The meeting included discussions on the ongoing crisis in Syria, emphasizing Iraq’s readiness to assist the Syrian people and monitor terrorism-related developments.
SAC further condemned the “Israeli attacks on Gaza and any other regional aggressions.” It commended Prime Minister Al-Sudani’s diplomatic visits to neighboring and friendly countries, which have bolstered Iraq’s standing as a stabilizing force amid regional turbulence.