Iraq Economic News and Points To Ponder Thursday AM 7-25-24
The Iraqi Banking System: A Noticeable Increase In The Number Of Bank Accounts And The Size Of Citizens’ Deposits
Time: 07/24/2024 13:01:43 Read: 1,898 times {Economic: Al-Furat News} The banking system in Iraq is regaining citizens’ confidence in it little by little, with the increase in the number of bank accounts in banks and banks spread throughout the country.
Banking systems around the world face increasing challenges in light of rapid economic and financial changes.
To ensure the stability of these systems and protect depositors' funds, many countries are moving to join the International Association of Deposit Insurers.
This membership is not just a formality, but rather a strategic step that carries with it great benefits for member states and their banking systems.
In Iraq, economic and political challenges over the decades have provided a strong justification for keeping money at home rather than putting it in banks.
However, the joining of the Iraqi Deposit Insurance Company (ICDI) to the International Organization of Deposit Insurers came as a decisive step in improving confidence in the banking system.
Since its accession, Iraq has witnessed a
noticeable increase in the number of bank accounts and the
size of deposits,
which reflects a significant improvement in citizens’ confidence in banks.
This development enhances Iraq’s ability to
attract investments and
support economic growth
by converting savings into productive investments.
In a world of increasing economic and financial interconnectedness, countries cannot act in isolation from each other.
Membership in international deposit insurance bodies reflects countries' commitment to international cooperation and exchange of experiences, and confirms their tireless pursuit of achieving financial stability and protecting depositors' funds.
This membership is not just a formality, but rather a strategic investment in the future of the banking system and the national economy as a whole.
International cooperation: the cornerstone of deposit guarantee
International bodies provide a unique platform for exchanging experiences and knowledge between member states.
National financial institutions can benefit from the successful experiences of other countries in the field of deposit insurance, and avoid the mistakes that some countries have made.
This continuous exchange contributes to the development and modernization of deposit insurance policies and procedures in line with global best practices.
Joining the International Association of Deposit Insurers (IADI) enhances the transparency and credibility of the national banking system.
The state's commitment to strict international standards in the field of deposit insurance sends a positive message to citizens and investors that
their deposits with member banks of the deposit insurance system are in safe hands and that the
banking system is subject to effective local monitoring and supervision.
International bodies not only provide a platform for exchanging experiences, but also provide technical and advisory support to their members.
National institutions can benefit from the expertise of international specialists in developing and implementing effective deposit insurance policies, assessing potential risks, and preparing for financial crises.
By adhering to international standards and applying best practices, national institutions can reduce the risks of financial crises and enhance the stability of the banking system.
This stability is not a goal in itself, but rather a means to achieve broader economic and social goals, such as increasing economic growth rates and providing job opportunities.
When citizens and investors trust the banking system, they are more willing to deposit their money in banks.
This increased confidence leads to an increase in the volume of deposits available for investment, which supports economic activity and contributes to achieving sustainable development.
The impact of membership in international bodies is not limited to enhancing financial stability and confidence in the banking system,
but rather extends to supporting economic development.
Increasing the volume of deposits available for investment can
contribute to financing development projects,
providing loans to small and medium enterprises, and
creating new job opportunities.
Malaysia:
Malaysia joined the International Association of Deposit Insurers, which helped improve deposit insurance policies and increase confidence in the banking system.
This accession led to an increase in the volume of bank deposits and greater financial stability, which contributed to supporting economic growth in the country.
South Korea:
After the Asian financial crisis in the late 1990s, South Korea joined the International Association of Deposit Insurers.
International membership helped restore confidence in the banking system and strengthen the stability of the national economy, allowing South Korea to achieve a rapid economic recovery.
Iraq Suspends Banking Transactions In Chinese Yuan
Amr Salem July 24, 2024 The Central Bank of Iraq. Photo: AFP Baghdad (IraqiNews.com) – Member of the parliamentary finance committee, Moeen Al-Kadhimi, revealed that Iraq has chosen to discontinue using the Chinese yuan in financial transactions.
Al-Kadhimi told Al-Forat News that the decision was made due to worries about potential manipulation and other difficulties with certain transfers.
Iraq has been ordered by the US Federal Reserve to stop trading in Chinese yuan, citing discrepancies and specific issues with transactions, according to Al-Kadhimi.
The Iraqi lawmaker clarified that the US Federal Reserve receives $3.5 million generated from Iraq’s daily oil exports, noting that the money is regulated through transfers that the Central Bank of Iraq (CBI) authorizes.
Before transferring cash to the specified Iraqi organizations, the Federal Reserve has to authorize these transfers and the related commercial activities.
In order to provide the CBI and Iraqi businesses additional alternatives, Al-Kadhimi added that the parliamentary finance committee will push the CBI to address this problem and diversify its currency basket.
In February 2023, the CBI announced that the financing of foreign trade with China will be regulated directly in the Chinese yuan through two options.
The first option includes strengthening the balances of Iraqi banks that have accounts with Chinese banks in the Chinese yuan, while the
second option includes strengthening the balances of Iraqi banks through the accounts of the CBI, in the Chinese yuan, with the J.P. Morgan bank, and the Development Bank in Singapore.
Later in 2023, Iraq enhanced its balances in the yuan currency through the Singapore Development Bank to finance the country’s trade with China by about $12 billion annually.
Baghdad also increased its assets in UAE dirham and was negotiating to increase its balances in euros to finance trade with the European Union.
https://www.iraqinews.com/iraq/iraq-suspends-banking-transactions-in-chinese-yuan/
Drilling Techniques And Oil Reserves
Economical 07/24/2024 Walid Khaled Al-Zaidi It is an axiom of work in oil fields that advanced, highly efficient drilling mechanisms produce important results at the level of extraction and new discovery, especially the quantities of reserve crude that lie in the depths of those fields and in the southern regions in particular.
This is confirmed by a group of specialized geologists that the statistics are based to a large extent.
To data estimated decades ago that unexplored fields in Iraq may contain much larger oil reserves than originally indicated, and
Iraq may exceed its fifth place in the world in terms of oil reserve quantities at the level of oil-rich countries.
What reinforces these indicators are the actions taken by the Ministry of Oil these days and by updating Drilling mechanisms in some southern fields through the inauguration of the giant drilling rig in Iraq, which operates with a power of up to (2000) horsepower, in the Majnoon field specifically.
The impact of the drilling process with this device, which is the largest in Iraq, has many benefits that other less powerful devices have not been able to achieve, and
its positive effects on the production process in the aforementioned field are worthy of attention because it is characterized by a superior ability to drill greater depths compared to devices with less power than it,
because all its equipment Manufactured with high technology for the purpose of reaching deep levels of drilling operations that can achieve the desired purpose, which is mostly drilling exploratory and appraisal wells,
in addition to the technical technology to address situations and problems that may occur during drilling operations deep into the targeted wells, as well as
providing geological information about the rock layers that can be It adds new numbers to the size of national reserves in addition to what was confirmed in
previous statistics that showed that Iraq is ranked fifth among the best countries that possess growing oil reserves,
according to statistics from the Italian oil company Eni, and among the ten largest countries in the world, with an amount of (145) billion barrels, before Approximately two years, with a growth rate that can change upwards
The modern uses that the Ministry of Oil is working on, through its well-drilling company, have all the possibilities at the level of new exploration, including recording modern numbers in the field of field reserves in all regions of Iraq, and on an increasing basis, after widely varying estimates regarding these indicators and through the numbers of the US Department of Energy before For almost two decades, I indicated that Iraq has (112) billion barrels of reserve.
The US Geological Survey previously estimated Iraqi oil reserves at (78) billion barrels in 1995,
but local oil sources expected at the time that the potential reserves might reach (300) billion barrels.
After these indicators, evidence comes to indicate beyond doubt that the actions and procedures of those in charge of the oil sector, and through modernization and investment in drilling operations, lead to the fact that the levels of oil reserves in Iraq are rising in a proportional manner with those procedures and through the great efforts that the Ministry of Oil seeks to achieve development goals.
Determining the graphical indicators for everything related to this field and the successes it can achieve in the long term, which will bring oil, which is the vital economic factor, to great positive effects on the comprehensive development of our country. https://alsabaah.iq/99883-.htm l
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