Iraq Economic News and Points to Ponder Sunday AM 7-14-24
Iraq Moves To Break Restrictions On The Dollar In Crucial Talks With Washington
July 13, 2024 Last updated: July 13, 2024 Al-Independent / Follow-up / - Iraq has begun a round of talks in Washington with representatives of the US Treasury Department to address issues related to restrictions imposed on the dollar, as announced by Iraqi Foreign Minister Fuad Hussein during a press conference broadcast by the Iraqi government media channel.
Hussein described the meetings as “very useful,” indicating that they would continue.
Topics scheduled for future discussions include further talks on the list of Iraqi banks subject to US sanctions, and the status of Iran’s money accumulated in Iraq.
Hussein said: “There are serious steps to resolve these issues.”
Iraq witnessed a shortage in the availability of dollars last year, after the Federal Reserve Bank of New York began closely examining transfers to Iraqi banks.
Iranian companies and individuals have long used banks in neighboring Iraq to access dollars and circumvent US sanctions.
The Central Bank of Iraq pledged to restrict all internal commercial transactions starting this year, in an attempt to limit dollar transactions outside the Iraqi banking sector, and limit its smuggling abroad. Hussein indicated that the
talks with the US Treasury Department aim to ease these restrictions and ensure the dollar flows more smoothly into the Iraqi economy.
It is expected that these talks will contribute to developing sustainable solutions to the financial issues facing Iraq, and relieving pressure on the national economy. In conclusion, Hussein stressed that there are serious steps to resolve these issues, and that the talks will continue to ensure tangible results in the near future. https://mustaqila.com/العراق-يتحرك-لكسر-القيود-على-الدولار-ف/
Sources: The Governor Of The Central Bank Of Iraq Made An Unannounced Visit To Washington Regarding The Chinese Yuan
Economy Washington breaking Visit Governor of the Central Bank 2024-07-12 23:06 Shafaq News/ Informed sources revealed, on Saturday, that the Governor of the Central Bank of Iraq, Ali Al-Alaq, is making an officially unannounced visit to the United States of America to discuss with officials in Washington regarding the US Federal Reserve’s decision to stop Baghdad’s dealings with the Chinese yuan.
The sources told Shafaq News Agency that Al-Alaq left for Washington last Tuesday to meet with officials at the Federal Reserve and the US Treasury. She added that
Al-Alaq is discussing with American officials the decision to stop Iraq's dealings with the Chinese yuan, indicating that the
Governor of the Central Bank is also discussing during his visit the required obligations regarding Iraqi banks that are deprived of dealing with the dollar.
The visit of the Governor of the Central Bank of Iraq, Ali Al-Alaq, to Washington coincides with a significant jump in the exchange rate of the dollar against the dinar, and more than two months after the visit of Prime Minister Muhammad Shia Al-Sudani to the United States. https://shafaq.com/ar/اقتصـاد/مصادر-محافظ-البنك-المركزي-العراقي-اجرى-زيارة-غير-معلنة-لواشنطن-بش-ن-اليوان-الصيني
The Central Bank's Monetary Policy And Lack Of Transparency Threaten The Iraqi Economy
July 13, 2024 Last updated: July 13, 2024 Independent / Follow-up / - Economic and media sources revealed that the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, refused to publish the financial tables of the Central Bank for the year 2023, as the list published on the bank’s website showed that the last published table dates back to November of last year.
The sources confirmed to the Independent that the reasons for the governor’s refusal to publish financial schedule data are due to the large volume of new currency issuance.
The sources explain that a state of inflation in liquidity has reached enormous numbers due to the absence of oversight by the House of Representatives over the work of the Central Bank, in addition to clear corruption in the file of the dinar exchange rate against the dollar.
In this context, independent politician Hussein Al-Falluji warned against excessive issuance of new currency and its impact on the Iraqi economy. In his article published by Al-Mustaqila, Al-Faluji said:
“In light of the economic challenges facing Iraq, the importance of issuing new currency as a monetary policy tool to achieve economic growth and financial stability appears.
Unfortunately, these funds were ineffectively directed towards consumer sectors rather than productivity, leading to increased inflation and depletion of hard currency balance.”
According to available statistics, the volume of cash issued at the end of 2017 amounted to more than 44 trillion Iraqi dinars, while the volume of the monetary mass exceeded 103 trillion Iraqi dinars at the end of 2023.
Al-Falluji indicated that these funds were directed towards the salaries and subsidies sector instead of being directed towards sectors Productivity. He stressed that
if these funds had been directed wisely towards the industrial, agricultural, tourism and mining sectors, the economic situation in Iraq would be much better than it is now. Al-Falluji concluded by
stressing the need to reconsider the use of new cash and adopt a strategy that focuses on directing funds towards productive sectors that generate income in hard currencies and supporting the private sector, to improve the economic situation in the country in a sustainable manner.
Does inflation continue to threaten the Iraqi economy?
This case highlights the urgent need to carry out radical reforms in the monetary and supervisory policy of the Central Bank, and to find effective mechanisms to reduce corruption and ensure transparency in the management of public funds to achieve real and sustainable economic development in Iraq.
https://mustaqila.com/السياسة-النقدية-للبنك-المركزي-وغياب-ا/
The Financial Supervision Authority Announces The Preparation Of A Draft Of The Updated Unified Accounting System
Office of Financial Supervision Building
money and business
Economy News - Baghdad
On Thursday, the Financial Supervision Bureau announced that
measures had been taken to develop and improve the accounting and auditing professions in Iraq, and while
it referred to the issuance of the internal control guide binding on all government agencies,
it confirmed the preparation of a draft of the updated unified accounting system in accordance with international standards.
The Assistant Head of the Financial Supervision Bureau, Qaiser Al-Saadi, said in a statement reported by the official news agency, and seen by Al-Iqtisad News, that
“the Federal Financial Supervision Bureau seeks to achieve its goals specified in accordance with its founding law, including developing the accounting and auditing professions in Iraq.” He explained that
"one of the most prominent steps taken by the Bureau is issuing reports evaluating internal control systems in ministries and entities not affiliated with a ministry and governorates," indicating that
"the goal of this is to
raise the level of performance of these formations,
enhance efforts to combat financial and administrative corruption,
improve institutional performance, and
work on the principle of preventive oversight." To reduce this phenomenon. He pointed out that
“the Bureau has issued an internal control guide that has been circulated to all government agencies for mandatory adoption starting from 7/1/2024,” noting that
“this guide aims to help these agencies accomplish their work in a way that ensures tight supervision and control.” on financial transactions and preservation of public money.” He added,
"The Bureau has finished preparing the draft of the updated unified accounting system in accordance with international standards.
This draft has been circulated to government agencies, unions, and universities for the purpose of expressing opinions and making appropriate amendments in preparation for its actual implementation in the near future." He continued:
"The Bureau also contributed to the holding of the first session of the Regulatory and Accounting Standards Council in the Republic of Iraq for the year 2024 after a break of more than four years.
During this session, oversight and accounting issues were discussed and appropriate decisions were taken regarding them, which contributes to developing the work of the profession in Iraq." He pointed out,
"These steps come within the framework of the Bureau's commitment to
developing and improving the accounting and auditing professions in Iraq in line with
international standards and contributing to
enhancing integrity and transparency in government institutions." He continued,
“The Bureau relies, in performing its work, on international standards issued by the International Organization of Supreme Audit Institutions (INTOSAI), and
the Bureau is also a
prominent member of the organization and has many contributions, including participating as a
member of (5) working groups and attending seminars between INTOSAI and the United Nations.”
And cooperation with the INTOSAI Development Initiative in its various programs, in addition to the Bureau assuming the presidency of the organization’s strategic planning committee.” Al-Saadi stated that
“the Bureau has cooperation with international and local organizations and counterpart supervisory bodies such as the
Dutch Court of Audit, in the field of performance evaluation and peer review, the
Court of Accounts in Morocco in the field of judicial oversight, the
Polish Oversight Service in the field of auditing according to the risk method, as well as the
German Cooperation Agency (German Cooperation Agency) Giz), the
Korea International Cooperation Agency (Koica), the
Japan International Cooperation Agency (Jika) and the
Indian Technical and Economic Cooperation (ITEC) programme.
He pointed out,
“the numerous activities with the regulatory bodies in the Arab and Islamic countries, such as the
General Accounting Bureau in the Kingdom of Saudi Arabia, the
Audit Bureau in the State of Qatar, the
Turkish Court of Accounts, the
Supreme Court of Audit in the Islamic Republic of Iran, the
Accounting Council in the Republic of Algeria, and many others,” pointing out that
“these Standards and evidence, along with international cooperation, contribute to enhancing the effectiveness and efficiency of the Bureau in exercising its oversight work in a way that ensures transparency and integrity in government institutions.” He stressed
“the commitment of the Federal Financial Supervision Bureau to enhance transparency and integrity in all state institutions by working in accordance with international standards and effective cooperation with regulatory authorities and international organizations,” stressing
“continuing efforts in
developing the accounting and auditing professions and
providing technical and accounting support to ensure performance is achieved.” Optimization and preservation of public money, as well as attaching great importance to
supporting the role of youth in building the future by enhancing their capabilities to be true partners in combating corruption and evaluating government performance in order to achieve the desired goals.”
views 258 07/11/2024 - https://economy-news.net/content.php?id=45129
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