FRANK26: "AND... THE MONETARY REFORM VISION"...........F26
Advisor to the Association of Banks: The Prime Minister’s decisions to support private banks confirm the government’s vision of stimulus and banking reform
4/12/2024
Baghdad
Samir Al-Nusairi, advisor to the Iraqi Private Banks Association, said that the seven decisions recently issued in implementation of the directive of Prime Minister Muhammad Shia Al-Sudani regarding supporting our private banks confirm the government’s vision in its governmental approach and strategy that is consistent with the Central Bank’s strategy to reform the banking sector.
He explained that these decisions outlined the executive and supportive procedures for comprehensive reform
For the banking sector, which constitutes the basis and true beginning of successful economic reform, which included the following:
1- Preventing monopoly in banking services
2- Activating the Central Bank’s financing initiatives
3- Increasing cooperation between private banks and the Central Bank in discussing decision-making related to supporting and developing banking work
4- Determining the contribution of foreign capital to Iraqi banks
5- Participation of government institutions and financial funds with private banks and expansion by opening branches in countries
The other
6- Government and Central Bank support for private banks in foreign institutions and banks
7- Increasing reliance on private banks by the Iraqi state and activating the deposit of government deposits
And deposits of government banks with banks
Private.
Al-Nusairi stressed that the implementation of the decisions, which came as a result of an in-depth study by the Ministerial Council for the Economy and in the presence of the Central Bank of Iraq, of the challenges facing private banks, especially after 28 private banks were subjected to US Treasury restrictions by stopping their dealings in the US dollar in external transfers, are practical applications to motivate private banks to develop their internal banking operations. And foreign affairs in a way that contributes to economic reform.
Pointing out the importance of discussing this important file to lift US restrictions on these banks during the visit of the Prime Minister and his accompanying delegation to Washington next week.
This file is certainly the focus of the concerns of the government, the Central Bank, the Association of Iraqi Private Banks, and the banking sector in general. We hope that efforts will succeed in creating new balanced relations between the American side and our Iraqi delegation in the field of organizing and developing clear foundations for both parties in banking relations in accordance with international standards.
Community comment "Sudani looks to be coming to the US on the 15th..." I think it more likely to happen toward the tail end of the 22nd to see our new rate.But Iraqi contacts think Sudani is going to announce it in Iraq before he heads to the US on the 15th…. I hope they are right and I am wrong.
Iraq now has full control of its funds and one of the requirements now that it has control of its funds...to pay back the United States. It cannot do that at a rate of 1310. But it can easily do it with a value change. I believe the next 10-11 days are going to be huge.
Iraq shuts down airspace as Iran begins attack on Israel
Baghdad – Iraq announced late on Saturday it was closing its airspace and suspending all air traffic after neighbouring Iran launched a drone attack on Israel.
“Iraq’s airspace has been closed and air traffic has been halted”, Transport Minister Razzak al-Saadawi told state news agency INA. The Civil Aviation Authority said the closure would last from 11:30 pm (2030 GMT) until 5:30 am (0230 GMT).
Chapter 2 assesses vulnerabilities and potential risks to financial stability in private credit, a rapidly growing asset class—traditionally focused on providing loans to mid-sized firms outside the realms of either commercial banks or public debt markets—that now rivals other major credit markets in size. The chapter identifies important vulnerabilities arising from relatively fragile borrowers, a growing share of semi-liquid investment vehicles, multiple layers of leverage, stale and potentially subjective valuations, and unclear connections between participants. If private credit remains opaque and continues to grow exponentially under limited prudential oversight, these vulnerabilities could become systemic.
Given the potential risks posed by this fast-growing and interconnected asset class, authorities could consider a more proactive supervisory and regulatory approach to private credit. It is key to close data gaps and enhance reporting requirements to comprehensively assess risks. Authorities should closely monitor and address liquidity and conduct risks in funds—especially retail—that may be faced with higher redemption risks.
Kirkuk Turkmen regarding the formation of the local government: not yet decided
Jassim Muhammad Jaafar, the head of the Turkmen component, disclosed the most recent changes in the governorate’s local government structure today, Saturday.
Leader Jaafar stated that “they have not yet reached a final solution regarding forming the government and choosing the new governor,” adding that “discussions are still ongoing between the political forces that won the local elections in Kirkuk Governorate.”
He said, “There is a proposal regarding the exchange of power between the components of Kirkuk, which was rejected by some parties in the province.”
Jaafar stated, “The issue of Kirkuk Governorate is thorny and complex in light of the intransigence of all parties, especially the Kurds, regarding the right to administer the local government.”
Due to equal representation among its constituent parts, Kirkuk Governorate suffers from not being able to designate the party that would oversee its local administration.
