Parliamentary Finance issues a package of reforms that includes imposing a value-added tax and reviewing the dollar exchange rate

Economy News – Baghdad: The Parliamentary Finance Committee issued proposals to address the financial crisis in Iraq, which included reviewing the exchange rate of the dollar against the dinar, establishing a national telecommunications company and imposing a value-added tax.

The reforms presented by Parliamentary Finance included, from three axes, the first entitled Maximizing Revenues and Rationalizing Expenditures and included the immediate activation of compulsory collection of services provided to government, commercial, industrial, agricultural and household institutions, such as electricity, water, sewage, landlines and their deduction from grants and salaries, in addition to reviewing crude oil prices The provider of the refineries, and the unutilized government assets such as real estate and land flow through selling them by public auction, imposing a value-added tax of 12%, and obligating all institutions to send the Ministry of Finance’s share of the total revenues up to date.

It also included stopping the work of embassies and attachés in countries where Iraq does not have any diplomatic, commercial or cultural exchange, negotiating to postpone the dues of oil companies or paying them in kind outside the OPEC quota, and allowing the export of gravel and sand and the investment of mineral resources such as phosphates, sulfur and uranium.

On taxes, it included the formulation of the tax withholding ladder by supporting the low-income segments by raising the minimum tax level, adjusting the tax price of the people concerned to a price close to the price of neighboring countries, and imposing annual taxes on all cars according to their type.

As for the second axis related to reforming the financial and monetary policies, it included the imposition of comprehensive insurance on cars, expatriates, cars, fuel stations, imported materials, companies, crude oil, building permits, residential units, etc. Rationing, medicines, water stations, and the educational and educational process only.

The reform paper also focused on the Ministry of Finance, in coordination with the Central Bank, to issue an electronic dinar for the purpose of collecting government revenues and deserved tags, reviewing the exchange rate against the dollar, deleting zeros, freeing banks from the hands of the Ministry of Finance and forming an independent financial body that includes banks, money transfer companies and insurance companies, and reducing The interest rate on investment projects.

As for the third axis, it includes restructuring public and losing companies, establishing a national telecommunications company, and presenting disabled government factories and factories to the private sector. Click here to download the 12-page reforms launched by Parliament.

Economy-news.net

Al-Samarrai Calls For The Restructuring of the Central Bank

Former House Speaker Iyad al-Samarrai called for the restructuring of the central bank in line with the structures of international central banks, with the unification of the exchange rate in all banks.

“The exchange rate is very important, and any major change in the exchange rate and the float will be a disaster for the economy and its consequences will be complex and the economy will not recover for decades, an example of this is what happened in Jordan, Egypt and many other countries,” Al-Samarrai said in an article.

He pointed out that “gradual change is very important if it is necessary, as the local currency and its stability are among the most important tributaries of the economy’s strength.”

He stressed that “first the central bank must be reconfigured in line with the structures of global central banks and have a committee of experts who do not interfere in executive matters only, specializing in setting and monitoring policies, and is not subject to the government and does not interfere in its policies.”

He also stressed that “the exchange rate must be the same in the banks, as for the black market and the cancellation of exchange companies specialized in taking hard currency from the central bank and selling it in the market and the resulting great corruption.”

He called for the price to be the same in the bank and at the cashier, “taking into account the sale and purchase commission, canceling the auction of selling the currency and making it available to all banks and exchange companies and for legitimate dealings of import and export and the needs of citizens, and it is not a reason for smuggling money, especially the money of corrupt deals.”

Mustaqila.com

Al-Darraji Demands The Central Bank To Adopt A Real Rate Of The Iraqi Dinar

Al-Mustaqilla .. MP Muhammad Sahib Al-Darraji called on the Central Bank to adopt the real price of the Iraqi dinar, away from the prices offered in the currency auction.

Al-Darraji said in a tweet on his Twitter page, Tuesday, “The central bank must adopt a real price for the dinar, away from breaches of the window of selling the notorious currency.”

He also called for “disclosing bills and documentary credits provided by banks in exchange for transferring hard currency abroad and checking their credibility.”

Al-Darraji stressed that the bank’s failure to do so is that it “is considered an accomplice in the crime and we will have to resort to legal methods to remedy this defect.”

The window of selling the currency in the central bank faces many criticisms, while leaks stated that a number of banks acquire the amounts that are being traded in the currency auction for the purpose of increasing their profits.

Mustaqila.com

The violations of the currency auction are frightening and require a serious stand by the government

Deputy for Saeron: The violations of the currency auction are frightening and require a serious stand by the government{Baghdad: Al Furat News} A deputy from the Sairoun bloc described the violations in the currency auction at the Central Bank of Iraq as “frightening.”

Rami Al-Skiny told Al-Furat News, “Sometimes this auction and the financial differences are neutralized by certain parties, which are the black market and private sector banks, where the currency exchange and the value of the dinar are manipulated.”

He added, “This requires a serious stand by the executive government towards those who manipulate this issue.”

Al-Skini stressed that “due to the large number of these violations recently and their exit to the media in frightening numbers and numbers, this phenomenon must be reduced today with the existing decline in the dollar prices and the low level of a barrel of oil due to its connection to the global market.”

And a member of the Parliamentary Integrity Committee, Kazem Al-Sayyadi, revealed yesterday, Monday, enormous money that had been smuggled by the corruption of the currency auction of the Central Bank of Iraq.

Al-Sayyadi told Al-Furat News that “the question of the head of the Parliamentary Wisdom Bloc, Faleh Al-Sari, to the Governor of the Central Bank was accurate; but unfortunately, the answer was inaccurate and vague and we noticed a favoritism for banks at the expense of the Iraqi people, behind which political forces stand to steal the people’s money,” he said.

While the representative of the Iraqi coalition, Zahra Al-Bajari, considered the currency auction as a threat to the bankruptcy of the country and told {Al-Furat News} “The currency auction greatly affects the economic situation and the Iraqi economy in general because this is a hard currency that goes out of Iraq.”

Al-Bajari demanded “to stop this auction because it affects the Iraqi economy in a large way, and we will have a pause in this matter, especially as it is trading in the halls of parliament and among the MPs interested in it.”

Alforatnews.com

The Central Bank announces the formation of the Anti-Money Laundering and Terrorism Financing Council

{Baghdad: Al Furat News} The Council of Ministers announced the approval of the third annual report of the Council for Combating Money Laundering and Financing Terrorism, in the presence of (Chairman of the Council – Governor of the Central Bank of Iraq).

The Cabinet called for “the Office of Anti-Money Laundering and Terrorism Financing to continue to take the necessary measures to combat money laundering and terrorist financing, in coordination with the supervisory authorities.”

The Anti-Money Laundering and Terrorism Financing Council was formed according to Law No. 39 of 2015, which is chaired by the Governor of the Central Bank and the membership of a number of ministries and agencies not associated with a ministry.

Alforatnews.com/news/

Kurdistan Finance Minister: 30% of the banking system is now electronic

Economy News – The Minister of Finance and Economy in the Kurdistan Region, Awat Sheikh Janab, announced the transformation of 30% of the banking system in the region to the electronic system.

Sheikh Janab said, during his participation in the second day of the conference of the chambers of commerce of America and the Kurdistan Region, which was held under the title “The priorities of the economy of the Kurdistan Region after Corona”, “We made the economic system electronic.”

He added, “We have worked to remove obstacles to investment, and we pay great attention to the banking sector.”

In turn, the head of the Investment Authority in the region, Muhammad Shukri, said, during his participation in the conference, that “the investment law includes good guarantees for investors.”

He explained, “Domestic and foreign investments are equal before the law,” stressing that “a foreign investor can transfer 100% of his profits abroad.”

Economy-news.net

Plasschaert: We await the implementation of the Kazemi correctional paper

The Special Representative of the Secretary-General of the United Nations in Iraq, Jenin Blashart, confirmed, on Tuesday, THE ECONOMIC PAPER PRESENTED BY MUSTAFA AL- KAZEMI’S GOVERNMENT IS AWAITING IMPLEMENTATION, while noting that the religious authority, Ali al-Sistani stressed the importance of voting in the elections freely and without any pressure.

“In my last briefing to you, I mentioned that the government of Iraq has been working against multiple storms simultaneously from the start. I would like to emphasize that this is still largely the case,” Blashardt said in a briefing to the Security Council about the situation in Iraq. “Many interconnected crises on the political, security, economic, financial and social fronts, and of course, health.”

She added, “The financial and economic situation in Iraq is still worrying, at the very least. The economy is expected to contract by about 10% this year, and the impact of the Corona virus has caused more chaos in the already very weak private sector activity, and oil prices continue their prolonged stagnation. Constitutes downward pressure on the gross domestic product and domestic revenues.

She noted, “In mid-October, the long-awaited economic white paper was issued. This important document provides a very useful overview of the structural imbalances that characterize the economy and without broad political consensus to turn the document into reality, it will only be words on the paper.” She pointed out, “The drop in levels of violence in Iraq is greatly encouraging,” indicating that “the supreme authority, Sistani, stressed the importance of voting freely in the elections without any pressure.”

She indicated, “With regard to relations between Baghdad and Erbil, we will all agree on the existence of a positive and constructive relationship between federalism in Iraq, which is the key to the stability of the whole country.”

She explained, “The centrality of Iraq in building regional stability is real, and it is worth repeating that, and it must be protected from competition from foreign powers, and Iraqis must be given a space to focus on their strength at home,” stressing that “the leadership of Iraq continues to assert its independence and sovereignty, and seeks To keep all communication channels open because it adopts a foreign policy that serves the Iraqi national interest.

Plasschaert welcomed the “decrease in attacks on diplomatic missions.” “While we fully understand that the Iraqi authorities are working under tremendous time pressure, it must be clear that closing the camps should not lead to another crisis, for example in the form of secondary displacement, which is already happening in Iraq.”

Mawazin.net

PM Barzani Encourages US Companies to Invest in Kurdistan

ERBIL – Kurdistan Region Prime Minister Masrour Barzani has encouraged the US companies to start investing in the autonomous region, reaffirming that the regional government welcomes international investment in all the sectors of its economy.

Barzani made the remarks during a virtual conference on Post COVID-19 Economic Priorities in the Kurdistan Region, on Monday, sponsored by the US Chamber of Commerce, which aimed at encouraging foreign investment in the Kurdistan Region, particularly from US companies, with the participation of high-level officials from, the Kurdistan Region, Iraq, and the United States.

“We are working hard to diversify our economy, through privatization of parts of agriculture and electricity sectors. We are making it easier to do business by digitising important aspects of our government,” the Kurdish premier said.

“I am pleased to announce recent progress @SecBrouillette and I have made on a number of fronts in this sector to unlock greater US investment. We welcome international investment in all sectors of our economy.”

Barzani further noted that his cabinet is also working on reducing the”red tape to ensure that foreign investors are able to complete the necessary procedures more quickly and more easily — from company registrations to visa regulations and permits.”

He also revealed that the KRG expects to sign a “major” deal this week that will be the foundation of its digital transformation agenda to bring the public and government services to the fingerprints of citizens, businesses, and government bodies.

“We have a young, dynamic and highly educated workforce. Our young people are digitally literate and innovative. My goal is not only to give our people much-needed jobs but to provide them the tools necessary to unlock their entrepreneurial spirit,” he continued.

The prime minister explained that the investment of US companies in the Kurdistan Region is in the public interest, adding that “we are working on developing the agricultural, industrial, and commercial sectors, and we intend to use technology in the agricultural sector.”

The Kurdish leader, in the meantime, hoped that Erbil and Washington will also improve cooperations in the fields of economy, energy, health, education, and culture in 2021.
The Kurdistan Region is a very good gateway for US investors, which also makes it a great gateway to Iraq and the Middle East, Barzani added.

The premier additionally reviewed a number of projects completed in the midst of crises, and said that his government is proud to construct many bridges and highways through the partnership between the private and public sectors, despite the economic crisis caused by the coronavirus pandemic.

He further addressed foreign investors and said: “I hope that you will take this opportunity to visit the Kurdistan Region and see for yourself the changes made by the ninth ministerial formation.”

Basnews.com

On behalf of Iraqis: The currency auction threatens to bankrupt Iraq and must be stopped

{Baghdad: Al Furat News} The representative of the Iraqi coalition, Zahra Al-Bajari, considered the currency auction to the Central Bank of Iraq as a threat to bankrupt the country.

“The currency auction greatly affects the economic situation and the Iraqi economy in general, because this is a hard currency that goes out of Iraq,” Al-Bajari said.

She added, “The Financial Deficit Financing Law recently approved, referred to the window for selling the currency,” indicating that the law called on the Council of Ministers to automate the tax and customs system and import licenses and to link all units subject to tax and customs to an electronic system immediately, and to collect customs duties for imported goods on the basis of what It was sold from the foreign currency through the window of selling the currency or documentary credits to importers of goods, provided that the differences are settled after entering the imported goods and audited by the concerned authorities in order to prove that the imported materials are real in their purchase and with receipts and are located inside Iraq and there is no smuggling of currency and pressure on The Iraqi economy. ”

And called “the Economic Committee in Parliament to follow up this issue as it is at the core of its competence because this issue is very important to preserve the national economy and the existing currency because Iraq will declare bankruptcy due to borrowing and the daily currency auction.”

Al-Bajari demanded “to stop this auction because it affects the Iraqi economy greatly, and we will have a pause on this issue, especially as it is trading in the halls of parliament and among the MPs interested in it.”

And a member of the Parliamentary Integrity Committee, Kazem Al-Sayyadi, revealed yesterday, Monday, enormous money that had been smuggled by the corruption of the currency auction of the Central Bank of Iraq.

Al-Sayyadi told Al-Furat News that “the question of the head of the Parliamentary Wisdom Bloc, Faleh Al-Sari, to the Governor of the Central Bank was accurate; but unfortunately, the answer was inaccurate and vague and we noticed a favoritism for banks at the expense of the Iraqi people, behind which political forces stand to steal people’s money,” he said.
He added, “The governor was confused and unconnected in the answers, and we hosted him in the integrity committee. His answers were inaccurate, partial expressions, and inaccurate solutions that betrayed an uninformed personality.”

“The Central Bank and the Ministry of Finance are a crime that contains several crimes, including hiding the currency market and selling it to private banks,” Al-Sayyadi said, explaining, “The Central Bank allocates millions of dollars to private banks and when searching for their assets, we find that they are weak and not the amount of money allocated to them.”

Alforatnews.com

Parliamentary Finance reveals violations of the currency auction

{Baghdad: Al Furat News} The Finance Committee revealed, on Tuesday, interesting details about the violations of the currency auction.

The committee’s rapporteur, Ahmed Al-Saffar, said “to the Euphrates News} that” the currency window is one of the existing problems related to the central bank, in addition to other issues related to damaged money, the bank’s building, and other things. ”

He pointed out that “actually this window does not exist in any country other than Iraq, and the foreign currency {dollar} is sold to banks that benefit from the price difference,” revealing, “there are more than 60 numbers that are used and the profit goes to the banks.”

Al-Saffar added, “National banks provide unrealistic investments,” explaining, “If we calculate the customs tax revenues on the basis of the size of the dollar sold against the imposed import, the annual amounts are not less than 7 billion dollars.”

He added, “But in reality it is less than a billion and the beneficiaries are the banks.”
Al-Saffar called for “the necessity to find a solution to this window by linking it to the customs tax. The collection will be when selling the dollar, or transferring the currency to the Ministry of Finance, and it will be the only one who disposes of the oil selling dollars.”
The head of the Parliamentary Wisdom Bloc, Faleh Al-Sari, presented an oral question to the Governor of the Central Bank of Iraq, Mustafa Ghaleb Al-Kitab.

Parliament, in turn, invited the governor of the bank to attend the session.

Parliament Speaker Muhammad al-Halbousi announced in a session, on Monday, that Al-Sari fulfilled his oral question addressed to the Governor of the Central Bank after his answers were satisfied.

For his part, a member of the Parliamentary Integrity Committee, Kazem Al-Sayyadi, revealed, on Monday, enormous money smuggled by corruption of the currency auction of the Central Bank of Iraq.

Al-Sayyadi said in a statement {to Al-Furat News} that the question of the head of the Parliamentary Wisdom bloc, Faleh Al-Sari, to the Governor of the Central Bank was accurate; But unfortunately, the answer was inaccurate and vague, and we perceived a favoritism for the banks at the expense of the Iraqi people, behind which were political forces standing to steal the people’s money. According to him.

Alforatnews.com