The Central Bank talks about its vision to reform the reality of the Iraqi banking sector

Baghdad – The Central Bank of Iraq discussed the means to include a vision for reforming the reality of the banking sector in the country.

The Governor of the Bank, Mustafa Ghaleb Makhaif, said in an interview with the official newspaper followed by “Nass”, (October 15, 2020) that “the future vision for the work of the Central Bank of Iraq is centered in light of the economic crisis through the goals it seeks to achieve and specified under its Law No. (56) Of the revised year 2004, the most important of which is (ensuring the stability of domestic prices and strengthening a stable financial system based on competition), to continue achieving the strategic objectives set out in the plan (2016-2020).

In order to do this, the governor explained, “The bank recently presented the terms of the reform paper for the banking sector, which has been initiated now, because of its importance in developing banking services and products in the next stage, and through it the banking sector will be supported to advance its current reality, and a group of The specific criteria adopted by the bank and on the basis of which the operating banks have been classified, “indicating that” this classification will be reviewed by the end of this year, and this will continue for the seasons of the following year. ”

“This step comes within the framework of strengthening confidence in the banking sector and improving the quality of services provided to the public, as well as enhancing competitiveness in the Iraqi banking sector,” Mkhaif stressed, reiterating the previous central bank’s confirmation in the request to banks that are lagging more than once to work to correct their situation and pay dues. Her customers. ”

The governor of the Central Bank stressed that “this classification will be an opportunity for those banks to prove their seriousness in achieving the requirements of reform and to pay the dues of depositors and shareholders owed by those banks

Nasnews.com

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An economist reveals the terms of the reform paper that the Ministry of Finance is working on

Today, professor of economics at Basra University, Nabil Al-Marsoumi, revealed some items of the economic reform paper called (the White Paper) that the Ministry of Finance is working on to reform the Iraqi economy.

Al-Marsoumi said, in a post on Facebook, which Al-Rasheed followed him, “As I expected in previous publications that the government reform paper will not deviate from the IMF policies and austerity measures with high social costs.”

He added, “This can be seen by looking at some of what was mentioned in the reform paper that the government called white, as follows:

1- Reducing the wage and salary bill from 25% of GDP to 12.5% ​​within three years.

2- Reforming the retirement fund so that it is not linked to the budget, and retirement salaries are paid directly from the fund.

3- Reducing financial support for state-owned companies by 30% every year for a period of three years.

4- Reducing total government support from 13% of GDP to 5% within three years.

5- Restructuring the public salary scale by stopping new employment and replacement operations in the public sector.

6- Setting a higher ceiling for employees ’salaries to achieve justice and reduce differences.
7- Applying income tax to employee allowances, incentives, bonuses, and others.

8- Reviewing fuel subsidies for state-owned oil companies. The proceeds from the sale of black oil should be returned to the state treasury.

9- Issuing national bonds and instruments and offering them for public circulation on the Iraq Stock Exchange.

10- Studying the current exchange rate of the dollar against the dinar and taking into consideration the requirements of financial and monetary stability and achieving the competitiveness of the Iraqi economy.

11- Restructuring the state-owned public companies and converting them into private companies.

12- Correcting the defect in the ration card system to ensure the protection of people with limited income and withholding it from families whose income exceeds a certain ceiling.

13- Ensure that all workers in the public, private, mixed and cooperative sectors are included in retirement benefits.

14- Completing the Social Insurance Law in order to be a substitute for the unified retirement, retirement and social security laws for workers

Alrasheedmedia.com

The Central Bank begins implementing steps to reform the banking sector

Today the Central Bank of Iraq began implementing its first reform steps for the banking sector, as it finished classifying private commercial and Islamic banks operating in Iraq according to a set of international standards as well as a number of standards approved by this bank.

This step comes within the framework of enhancing confidence in the banking sector, improving the quality of services provided to the public, as well as enhancing competitiveness in the Iraqi banking sector.

This bank confirms that it has previously asked the lagging banks more than once to work on correcting their situation and paying their customers’ dues, and therefore this classification will be an opportunity for those banks to prove their seriousness in achieving the requirements of reform and pay the dues of depositors and shareholders.

Finally, we announce that the next stage will include the process of “reforming government banks as well,” noting that the reform measures that have been adopted depend mainly on the Central Bank Law No. (56) of 2004 and the Iraqi Banking Law No. 94 of 2004 and the instructions and controls issued according to them.

https://cbi.iq/news/view/1571

Justifications For Changing The “Iraqi Dinar” Exchange Rate

Iraq is going through very sensitive conditions, as the Iraqi economy faces a real challenge after the excruciating failure to find alternatives to selling crude oil, prosthetic solutions, and weak control over public expenditures, and with the absence of sovereign investment funds that secure additional imports and a portfolio to protect the future of generations, especially in times of crisis.

Aid request to pay salaries:

Iraq today has reached a request for aid in order to pay the salaries of employees and retirees because what enters the treasury is not equal to less than half of what Iraq needs to cover salaries only, although the government has solutions if there is the will to improve the financial position and fill the budget deficit, by reducing public spending and controlling Wasted resources and support for the local industrial and agricultural product and other economic solutions, the most important of which is the central bank’s approach and monetary policy that restores the balance of the dinar’s price against the dollar in the daily auctions to sell the dollar by the Central Bank of Iraq, by raising the subsidy slightly from the exchange rate in a way that achieves the price change at a specific and studied rate To avoid the issue of inflation.

Taking into account international economic variables:

Our constant demand for a change in the exchange rate was based on a realistic vision that included all aspects of international economic variables due to the decline in oil prices and the Corona pandemic, as well as the chaos of imports, the loss of control and control over the border outlets, the volume of counterfeiting, corruption and smuggling through unofficial outlets, all causing the Iraqi market to be violated. And dumping it with inferior and cheap commodities and preventing the upgrading of the local product, which requires a review of the monetary policy to curb this chaos and achieve tax and customs revenues equivalent to the volume of imports, which we and with us many experts and specialists in financial affairs believe that the exchange rate must change, provided that it is accompanied by a set of supportive measures and decisions, to control Expected inflation.

The failure of the previous administration of the Central Bank of Iraq:

However, the previous administration of the Central Bank insisted on continuing with the policy of fixing the dinar’s price against foreign currencies, under the pretext that changing the exchange rate would reflect on high prices and inflation and harm vulnerable social strata and other justifications that do not get fat or rich from hunger. The continued sale of the currency at a fixed exchange rate by the Central Bank will lead to the bankruptcy of the state and the collapse of the economic system in conjunction with the decline in oil prices and the abandonment of a million barrels of its share for the benefit of others in these difficult circumstances the country is going through, The assumption that the survival of this equation, which is in support of imports, industries and exports of neighboring countries, will lead to the accumulation of goods in exchange for a cheap dollar that the exporting countries benefit from at the expense of the Iraqi economy stopping. The basis on which we started by demanding a change in the exchange rate is the fact that the state is not fully in control of the imports of the border outlets, including those in the Kurdistan region.

Exchange rate change proposal:

Therefore, we included the proposal to change the exchange by collecting tax and customs duties in advance from importers in the window of currency sale, and to clarify the matter, if we calculate the price of oil specified in the draft budget law at (56) dollars per barrel, meaning the rate of decrease is (15%), so the exchange rate is assumed ( 1300) dinars per dollar, and if (5%) was levied for the tax and (15%) for the customs fee and added to the exchange rate to become (1500) dinars per dollar, so we would have withdrawn the rug from the corrupt in the northern, western, eastern and southern outlets and we got On revenues from the state treasury, the monetary result to the state treasury every day is the sale of a dollar at a rate of (200) million dollars, and in the case of adopting the new exchange rate, it will be (60) billion additional dinars for each auction day, which is approximately (18) trillion dinars annually.

Conclusions:

First – Achieving revenues for the federal government’s treasury that exceeds (18) trillion dinars annually from the amount of tax and customs, with a price difference at least.

Second – Elimination of currency smuggling, as imports will be real and in the amount of transferable sums.

Third – ending the phenomenon of tax and customs evasion at the border crossings.

Fourth – the submission of all ports to the authority of the federal government and thus solve the problem of imports of goods and goods from the ports of the Kurdistan region because of the preference in terms of taxes and customs fees.

Fifth – ending all tax and customs exemptions for institutions and government departments and others.

Sixth – ending the phenomenon of the mediator in selling dollars and commissions of private banks, because dealing must be with the real importer and not with speculators, which will be reflected in the development of the export sector for local products and the creation of job opportunities.

Seventh – Streamlined flow of goods and goods from the border crossings. We expect the new administration of the Central Bank of Iraq, which has taken positive steps to correct the previous paths and approaches, which are in line with the reform plan, more decisions to create a real banking sector, and we hope from them to study the ideas and proposals presented by our council that serve the public interest.

Mustaqila.com

The free dinar .. An economist talks about a move that establishes a global demand for the Iraqi currency

The economist Ahmed Al-Salami wrote an explanation about some countries deleting zeros from their currency and the possibility of applying them in Iraq, while referring to the possibility of making the Iraqi currency strong and has global demand, in what he described as the free dinar.

“Iran will soon delete four zeros from its currency and convert it from the riyal to the new toman officially and have completed the legal series for that, and at that time it will be 100 dollars equal to 300 toman only instead of 3 million tomans or 30 million riyals,” Al-Salami said.

He added: “A digital deception previously carried out by the United States, Italy and Turkey, the United States deleted its dollar currencies with zeros in front of the previous European currencies, the French franc, the German mark and the English pound, and canceled the $ 10,000 currency and the $ 1,000 currency and withdrew it from banking and personal circulation forever.”

He continued: “Italy also re-zeroed the Italian lira, adjusted its value and deleted six zeros from it, and the million lira turned into one lira and a hundred million lira into 100 lira before it was merged with the euro currency in 2002, as well as that of Turkey, which converted one million Turkish liras into one lira and converted one hundred million pounds One hundred Turkish liras only ”.

He explained: “Suddenly, the Turkish currency was circulated and used abroad for circulation, and it entered Iraq and was used for dealing and the exchange rate as a store of value, and whoever used to work in the Shorja knows this after the Turkish currency was forgotten throughout the nineties and eighties and was an attempt to integrate Turkey with European economic values.”

And that “the current Iraqi dinar differs slightly because the Iraqi economy is consumerist, but that does not prevent it. It is possible to apply that and use the deleted Iraqi currency zeros by buying and importing industrial production lines for the manufacture of basic and luxury goods as much as possible, and this will revive the exchange rate of the dinar and the demand for it externally and shrinking.” Depletion of foreign currency to buy the most insignificant commodities and deplete the cash balance, instead of facilitating official and accounting transactions, packages, storage, transportation, use of versatile metal change and revolutionary digital currency through cards and gain confidence internally and externally, needs a revival, stimulation and progress in this aspect, easy projects that are waiting for their hero, below. Conceptual models for the deleted Iraqi currency, the “free dinar” zeros.

Yesiraq.com

The first statement of the new Iraqi central governor: We drew up a plan to strengthen the national currency

Shafaq News / In his first press statement since assuming the position, the new Governor of the Central Bank of Iraq, Mustafa Ghaleb Al-Kitab, announced, on Thursday, a plan to strengthen the national currency.

The book said in a statement issued after his meeting with the President of the Supreme Judicial Council, Judge Faiq Zaidan, and reported to Shafaq News Agency, that ” a deliberate banking plan has been developed that will develop the work of the central bank, strengthen the national currency and address negatives in cooperation with the courts specialized in joint work with the Central Bank .”

For his part, the President of the Supreme Judicial Council affirmed that “the selection of independent personalities from among the employees of state institutions to run these institutions gives an indication of the government’s seriousness in pursuing the professional institutional approach in building the state as well as stressing the importance of preserving the independence of the Central Bank in accordance with the constitution and the Central Bank of Iraq law .”

He stressed the need to “abide by banking laws, the law against money laundering and terrorist financing, and the instructions issued pursuant to them, to build a sober banking sector capable of facing financial and economic challenges and providing real opportunities for development .”

On September 14, Prime Minister Mustafa Al-Kazemi made major changes in a number of positions, including the Central Bank, the Iraqi Trade Bank, the Baghdad Municipality and the National Investment Commission.

Shafaq.com

Iraqi PM appoints Mustafa Ghaleb as central bank governor – INA

By Reuters Staff

BAGHDAD (Reuters) – Iraqi Prime Minister Mustafa al-Kadhimi appointed Mustafa Ghaleb as central bank governor, state news agency INA said on Monday.

Kadhimi also appointed Suha Dawood Elias as head of the National Investment Commission and Salem Jawad Abdul Hadi Al-Jalabi as chairman of state-owned Trade Bank of Iraq (TBI), among other appointments, INA said.

INA did not provide further details.

Iraq’s economy and oil sector were battered by years of wars, sanctions and a stubborn Islamist insurgency triggered by the U.S. invasion.

Iraq relies on oil to fund 97% of its state budget. Iraqi Finance Minister Ali Allawi told parliament last week that reforming Iraq’s economy would take five years of work and that state debt amounted to 80-90% of national product, while foreign debt was at $133 billion.

Reuters.com

The Iraqi government reveals that 3 disputes with Kurdistan that have been going on since 2003 will soon end

Baghdad today – Ahmed Mulla Talal, a spokesman for the Prime Minister, Mustafa Al-Kazemi, said that the government is very optimistic given the bilateral emphasis on continuing dialogue between Baghdad and Erbil.

Ahmed Mulla Talal said, in a televised interview (Baghdad Today), that “Al-Kazemi held important meetings with the President of the Democratic Party, Massoud Barzani, and the head of the regional government, Masrour Barzani.”

Mulla Talal added, “Al-Kazemi inspected the port of Ibrahim Al-Khalil, and there is an agreement between Baghdad and Erbil to resolve all pending issues, and for the constitution to be the rule, and a phased agreement was obtained from 3 months until the end of 2020, and we intend to conclude a new agreement to be implemented under the 2021 budget.”

He continued, “Al-Kazemi will meet tomorrow with the President of the Kurdistan Region, Nechirvan Barzani, and a meeting will be held to deal with the outstanding issues,” pointing out that “Nechirvan Barzani was following up on common issues during his presidency of the regional government and now he is his head and has great experience and he was a few days ago in Baghdad and the topic will be followed up after.” An iftar banquet will be held tomorrow morning, to which the Iraqi government delegation was invited. ”

“The Iraqi government is very optimistic in light of the bilateral emphasis on continuing the dialogue, and it is possible to reach consensus formulas regarding the federal government’s authority over border crossings and disputed areas, and the oil and gas law,” the Prime Minister’s spokesman affirmed.

He pointed out that “the Iraqi government is responsible for securing the salaries of the region’s employees, but in return, his government must abide by the terms of the interim agreement until the end of the year in preparation for concluding an agreement regarding the 2021 budget.”

Al-Kazemi held two meetings today with the President of the Democratic Party and the President of the Kurdistan Regional Government.

The first meeting witnessed, according to an official statement, the overall situation on the national scene, the most prominent challenges in the country, the unification of positions at the national level, as well as the file for holding early elections.

During the meeting, Al-Kazemi stressed Iraq’s actual need for reform, and for national action to be priority to cross the country over the current challenges.

He pointed out that “the high-level coordination between the armed forces of various kinds and the Peshmerga, helped in making victory over the terrorist ISIS gangs, and it is the one who will protect the land and secure the opportunity for prosperity and development for the country.”

The Prime Minister also indicated the importance of integration in the positions between the federal government and the regional government, and stressed that the Kurdistan region is an integral and essential part of Iraq, and dialogue and the constitution are the tent that secures a secure future for a unified and stable Iraq.

He pointed out that “the opportunity is now available to raise the level of Iraqi action on the international scene, in order to strengthen Iraq’s position among nations.”

For his part, Massoud Barzani expressed his happiness at the visit of the Prime Minister, stressing the availability of intentions for everyone, to make efforts in reform and resolve the outstanding issues between the federal government and the regional government.

In the second meeting with Masrour Barzani, Al-Kazemi confirmed, according to a second statement, that “the experience of security cooperation and integration in the performance of the armed forces in the face of terrorist ISIS has strengthened national unity and made victory possible.”

He also indicated that “the sovereignty of Iraq is the word that unites us as Iraqis, and there is no room for neglecting it, indicating that the opportunity is now available to strengthen joint action and to provide the best effort that serves the Iraqi citizen, as well as to accelerate the pace of preparation for holding early elections, in a way that secures the best honest expression of the people’s voice.” Al-Iraqi and his real choices. ”

Masrour Barzani expressed his happiness at the meeting, stating that “the regional government aims to solve all outstanding issues, and that he is looking forward to consolidating long-term solutions and supporting the efforts of the Al-Kazemi government seeking reform in all areas.”

Baghdadtoday.news

Report: ‘A New Form’ for the Anti-Corruption Committee … Al-Kazemi intends to confront the ‘Big Whales’

It seems that the file of eliminating corruption whales in Iraq is one of the priorities of Prime Minister Mustafa Al-Kazemi, who recently formed a special committee with wide powers to investigate corruption files and major cases.

According to a report by the London-based Al-Arab newspaper, followed by Nas, (September 5, 2020), Al-Kazemi’s efforts in the field of prosecuting the most corrupt people are surrounded by many doubts, given the political immunity they enjoy, as well as other issues.

Below is the text of the report:

Iraqi Prime Minister Mustafa Al-Kazemi has formed a special committee to investigate corruption files and major cases, directing to grant it exceptional powers, in the first indication by the prime minister of his intention to confront the big whales in his country.
Given the composition of the new committee, and the security authority that will carry out the tasks of chasing and arresting the corrupt, it seems that there is a real intention to target figures who may be from the first row.

Al-Kazemi assigned the human rights team, Ahmed Taha Hashem, who previously served in high-ranking intelligence sites within the Ministry of Interior, to head the Special Investigations Committee. He is supported by a senior official in the intelligence service, provided that the Counter-Terrorism Service, led by General Abdel Wahhab Al-Saadi, who is popular after the defeat of ISIS, will take over the task of implementing judicial arrest warrants against wanted corrupt individuals, if issued.

Al-Kazemi strengthened the committee with representatives of other oversight and security agencies, while supporting it with a large number of employees.

According to the order that bore the signature of Al-Kazemi, the Special Investigation Committee has the right to summon any Iraqi to give his testimony, except for those who were actually accused in a fundamental way in a case that falls within the powers of this committee, as these are treated through the judiciary.

According to interpretations of experts in law and procedural issues, this committee can summon all former heads of the republic, government and parliament, along with all ministers, officials, employees, politicians, merchants and businessmen, who are not officially accused of corruption cases.

The committee also has the right to open any closed corruption file against any person, and to investigate former defendants who have been acquitted, convicted, or are still under review, provided that judicial orders are issued to do so, to prevent interfering investigations.

The news of the announcement of the formation of this committee, especially its composition, sparked an enthusiastic reaction on social networking sites, where many bloggers saw that the actual war on the corrupt in Iraq had already begun.

General Al-Saadi, the commander of the US-armed counterterrorism service, is one of the main opponents of the pro-Iranian factions and politicians close to Tehran, and observers see his assignment of this type of mission as an indication of the approaching confrontation.

Professor of Political Science at Baghdad University Ihssan Al-Shammari believes that “mandating the Counter-Terrorism Service to implement decisions related to corruption cases is an indication of armed friction with leaders and mafias of corruption.”

Observers place this development in the context of urging the countries of the region and the world to urge Iraq to confront the factions loyal to Iran and put an end to its dominance over the country’s political, security and economic decisions.

Political analyst Ahmed Al-Abyadh says that the zero hour seems to have approached a lot in Iraq, pointing to the link between these developments and the visit by French President Emmanuel Macron to Iraq.

Al-Abyadh added that the visit of the French President can be translated as “a mediator to convey the final warning to the factions.”

“Now the difficult test for Al-Kazemi’s seriousness has begun to impose the prestige of the state,” he explained.

Al-Kazemi’s government previously had contact with former Prime Minister Nuri al-Maliki, through one of his in-laws, when it issued a decision to freeze his properties after he exploited state property in an unorthodox manner.

Al-Maliki is among the most prominent targets that the angry Iraqi street demands to pursue, for causing a third of the country’s lands to fall at the hands of ISIS militants in the last year of his eight years of rule, in addition to his responsibility for the theft and squandering of about a thousand billion dollars between 2006 and 2014.

However, Al-Kazemi’s efforts in pursuing senior corrupt individuals are surrounded by many doubts, due to the political immunity they enjoy, and most of them close ties to Tehran, which is able to move its armed militias inside Iraq to confuse the situation.
Therefore, observers suspend their expectations regarding the seriousness of any legal campaign to prosecute the corrupt to the extent of the readiness of the Iraqi armed forces for a direct confrontation with the factions that protect them, which could reveal in the next few months.

Nasnews.com