Militia Man
Alaq is talking about having an anticipation of a celebration...
They told you almost a year ago that Iraq would be the savior of the financial system and bring confidence to the world...We're seeing them at the end of that transformation...
KTFA
FRANK26: "THE MONETARY REFORM'S SUCCESS"..........F26
The Central Bank of Iraq 77 years of challenges and reforms
On 11-16-2024, the Central Bank of Iraq will have been established and carrying out its duties for 77 years. During this time, it has
gone through stages of economic and financial challenges that faced the applications of monetary policy.
During those years, it was directly confronted with overcoming those challenges, political influences and changes in the economic systems that were prevalent at that time. However, the Central Bank proved to be a solid sovereign economic and financial institution that was established in 1947 of the last century. It is responsible for drawing up paths and policies for implementing monetary policy, supervising and monitoring the banking sector and is considered the financial advisor to the government. Its role was essential in managing the economic process in Iraq and 24 governors who were distinguished by their expertise and technical and administrative specifications assumed the leadership of its administration.
After the change in 2003 and according to its new law 56 of 2004 and through its management of monetary policy and achieving its objectives, Iraq has gone through an important stage of its economic system during the past 21 years, where the change included the beginning of new applications for economic construction that depend on building the premises of transition from the philosophy and strategies of the central economic system in managing the economy to the philosophy, strategies and mechanisms of the market economy. Therefore, the Central Bank of Iraq has taken great developmental steps towards transitioning from banking activity to real and developmental activity, especially during the last eight years. Since the issuance of the laws regulating banking work in 2004, great achievements have been made in the field of reducing the rampant inflation that Iraq was suffering from and bringing it to good and advanced rates at the level of neighboring and regional countries.
The financial data and indicators also indicate that the Central Bank of Iraq has been able to maintain the exchange rate of the Iraqi dinar against the US dollar for several years in a balanced manner despite the fluctuations and variations up and down due to the difficult economic conditions and financial and economic crises caused by the decline in oil prices, the war on terrorism and the speculations that occur in the markets. It also maintained the general level of prices, as it is noted that the daily intervention of the Central Bank of Iraq in managing monetary policy tools in light of monetary policy data and issuing instructions, controls, memoranda, regulatory and advisory regulations that are consistent with international standards and the requirements of compliance systems and standards and combating money laundering and terrorist financing and issuing a law regulating this under No. 39 of 2015 and clearing the observations identified by the Financial Action Task Force (FATF) which moved Iraq from the gray area to regular follow-up and tried to control the violations that occur through review and evaluation and classifying banks for comprehensive evaluation purposes according to the (CAMELS) system and using the electronic platform for the purposes of the foreign currency sales window and foreign transfers and stimulating and encouraging banks to find new banking relationships with foreign correspondent banks with the aim of controlling the movement of foreign currency and limiting its disposal in contrast to the economic goals specified for monetary policy applications and achieving the arrival of 95% of foreign transfers with high transparency in 2024 to the final beneficiary.
Dealing in selling foreign currency is considered one of the largest open market operations in controlling local liquidity levels and putting the cash surplus on its proper path. It is a good economic indicator that the exchange rate will be stable despite the difficult economic conditions that Iraq went through after 2014, 2020 and 2022. The Central Bank of Iraq was also able to maintain a good foreign exchange reserve that currently exceeds $100 billion, in addition to its gold reserve of about 153 tons. Despite the recessionary conditions and global economic variables, the reserves nevertheless formed a safe cover for the Iraqi dinar by 140% in circulation and to cover foreign trade. It also contributed clearly to covering the deficit in the general budgets according to what is planned by re-discounting treasury bonds issued by the Ministry of Finance and issuing international treasury bonds, in addition to the World Bank’s praise for the economic and financial reform programs adopted by the Central Bank according to its first, second and third strategies and its expectations of good growth rates during the coming year 2025 at around 5.3% for the Iraqi economy, recording progress at the level of Arab and regional countries.
And the formation of a joint committee between it and the Ministry of Finance to coordinate between the financial and monetary policies, and many coordination procedures have been achieved as a result. The calculated and bold economic and financial procedures taken by the Central Bank and its successful experience in providing continuous support to the Iraqi economy, in addition to its initiative to activate the economic cycle and stimulate the economy and launch and follow up on the implementation of its multiple initiatives to finance small, medium and housing projects and launch the national strategy for bank lending in Iraq and achieve two economic and social goals at the same time, as well as taking other important measures by establishing the Iraqi Deposit Insurance Company, which began its tasks for the purpose of restoring confidence in the banking sector and increasing the savings rate of the monetary mass in banks at the expense of the hoarding rate. And preparing to launch the financial inclusion strategy soon, which reached a percentage of about 48%.
All of this was accompanied by structural, organizational and developmental developments in all the bank’s specialized and qualitative departments, focusing on comprehensive quality management, institutional development, adopting international standards, adhering to the rules and regulations of compliance, risk management, combating money laundering and terrorist financing, banking awareness, technical developments in payment systems, electronic payment, information technology, and working rapidly in cooperation with the government to move from a cash economy to a digital economy, which contributed to moving the policies and procedures of the Central Bank to an advanced stage on the path to achieving economic, financial and banking stability, especially the agreement with international consulting and auditing companies for the purpose of structuring and developing the government and private banking sector.
Clare
Article: "Al-Alaq on the platform closure: There is no sudden transition, but rather a gradual one that will be completed within two weeks"
Quote: "Alaq, announced...that the monetary situation in Iraq is at its best...External transfers for trade purposes are proceeding smoothly after the implementation of the new system...
There is no sudden transition, but rather a gradual transition that began in 2024, where the banks’ relationship was transferred directly to correspondent banks without going through other links, and the process was completed successfully...
More than 95% of this goal has been achieved, and this process will be completed successfully within the next two weeks...There is international anticipation to celebrate this occasion.”
KTFA
FRANK26: "EDDIE ASKS... WHY.".........F26
Assigning two international companies to study the Iraqi banking market
11/24/2024
Baghdad
The financial advisor to the Prime Minister, Mazhar Mohammed Salih, announced today, Sunday, that the government is in the process of owning a banking system based on the foundations of the competitive market, while he pointed out that two international companies have been assigned to study the Iraqi banking market.
Saleh told the official agency: "The government's strategy for banking reform began with the government banking sector under the supervision of the Prime Minister and is based on isolating government financial operations from the activity of developing the banking market, because the government banking sector in its current traditional form dominates 88% of the country's banking activity, which made government banking operations mixed with market activity."
He added, "We are waiting for the birth of a banking system owned by the government, but based on the foundations of a competitive market in providing banking services and achieving actual financial inclusion and digital financial inclusion, and in line with the digital payments policy that our country has been strongly pursuing for more than a year," noting that "the private banking sector is also going through an evaluation phase, and there are opportunities for voluntary mergers between more than one bank that has an international strategic banking partner."
He explained that "the objectives of banking reform in Iraq will end with a high integration that achieves competitiveness, homogeneity, compliance and governance within the Iraqi banking market, and achieves the integration of the national banking market with the global market," noting that "the entire issue is being closely followed by Prime Minister Mohammed Shia al-Sudani after assigning two international companies to study the Iraqi banking market and in accordance with a new vision that is consistent with the national economy's need for credit and investment and mobilizing the public's accumulated resources to ensure a more stable and efficient national income cycle."
As for the private sector, Saleh explained that “the launch of the philosophy of development partnership between the state and the private sector was embodied for the first time in the government granting sovereign guarantees to the private industrial sector to collect global loans to finance production lines for the most important industrial projects from the European Union countries and Japan, which lead the future of development, and at five levels of industries, starting with guaranteeing financing for infrastructure industries related to the development path, pharmaceuticals, petrochemicals and refining, and ending with important digital industries, without neglecting the interest in supporting the agricultural sector and farmers in protecting the country’s food security from the production of important strategic food crops.”
He stressed that "the government has not neglected to implement the national strategy for the private sector, which hopes that the private sector's contribution to the country's GDP will increase from 37% currently to more than 54% in the coming years, by providing opportunities to establish the private sector through supporting government development financing for it, whether through the Iraq Development Fund or the Riyada Bank (mixed sector) established by the Central Bank of Iraq to promote the role of the private sector in development and raise growth rates in its investments and contributions to the country's GDP, in accordance with the private sector development strategy that the government has been adopting for years."
Walkingstick
The CBI and the US Treasury are monitoring the black market...
The market of Iraq should reflect the official exchange rate. There should not be any other exchange rate to compete against the official exchange rate.
There should be only a single exchange rate in a country, not two or three. That's what the monetary reform education is teaching the citizens right now.
KTFA FRANK26: "IN 2 WEEKS AUCTIONS DIE!!!".....F26 Al-Alaq on the platform closure: There is no sudden transition, but rather a ...