Iraq Economic News and Points to Ponder Late Thursday Evening 11-2-23
Iraq Economic News and Points to Ponder Late Thursday Evening 11-2-23
Tlm724 Administrator Bondlady’s Corner
Hoarded Money And Stimulating Depositors
Economic 11/01/2023 Yasser Al-Metwally Official estimates indicate that 85 percent of the issued monetary mass, amounting to more than 100 trillion dinars, is outside the banking system and is called money hoarded outside banks.
This means that this huge amount of monetary mass is disabled from performing its role in development, and since the banks are the driving tool for the wheel of development through their credit (lending) policies, they are unable to perform this role for this reason. Therefore, you find our economy unable to advance due to the decline in the development performance of the banks..
Meanwhile, monetary policy is moving towards motivating the depositor public to deal with banks.
The Central Bank’s latest circular last week urged banks to facilitate procedures and create incentives at attractive interest rates for the purpose of attracting depositors.
What Is The Challenge Facing This Trend?
The trust factor is the most difficult number and the basic indicator for the success of the process of attracting the public’s hoarded funds to deposit them in banks.
Banks in all countries of the developed world are the primary engine of the economy through their role in implementing development through their lending policies that contribute to generating interest that accrues to depositors and bank owners with lucrative profits by investing money and making profits.
They also contribute to the implementation of projects and thus contribute to the circulation of funds.
But the problem with Iraqi banks, in all frankness and transparency, is that they suffer from a loss of public confidence, which is a deep-rooted, inherited problem due to the actions of some banks due to the weakness of their management and the alienation of depositors from them.
How Do We Restore Confidence In Light Of The New Trend?
The public is looking for a guarantee (an insurance policy) in order to be encouraged to deposit their hoards, and this requires facilitating deposits and withdrawals in an easy way without boring routine complications.
However, the poor banking behavior of some employees and the complexities of police-style instructions contribute to the public’s reluctance.
(Insurance policy) means the body that officially guarantees the public’s deposits in the event of the collapse of a particular bank, and here comes the role of the Deposit Insurance Company, which was recently established for this purpose.
Here I have an assessment of the Deposit Insurance Company, with all transparency and clarity, that its performance is weak, inactive, and unknown, and it requires the formation of a regular and influential media unit to market its activity on an ongoing basis,
and for the company to take the initiative to give guarantees to depositors by guaranteeing their money with a signed official paper distributed among all depositors in any bank, in light of which it bears responsibility. Legal information about deposit insurance, otherwise why was it established?
Thus, it can provide partial security that encourages the public to deposit in banks and gradually restore confidence.
The fluctuation of the dollar exchange rate cannot be overlooked in creating chaos and mistrust.
But we are talking about the national currency, which is still strong, and there is no problem in depositing and withdrawing it with the company’s guarantee. https://alsabaah.iq/86507-.html
This Month...The Central Bank Launches The Financial Sustainability Map
The second and third 11/02/2023 Baghdad: Rula Wathiq This month, the Central Bank launches a financial sustainability map in cooperation with international institutions.
Bank Governor Ali Al-Alaq told Al-Sabah:
The map, which is based on financial sustainability, was designed to manage environmental and social risks, noting that it will clarify the directions that the bank will take related to the awareness and educational aspect, as well as risk management and sustainable financing. He pointed out that
the map will support financial inclusion, including the Bank’s initiatives in supporting small and medium enterprises that are being adapted or pushed towards being consistent with what we aspire to, taking into account the environmental and social aspects, pointing out that
Iraq can address the backwardness of industry, agriculture, and the economy by developing them according to modern foundations and standards using methods.
Which leads to achieving this purpose. Al-Alaq pointed out that the factors for regulating trade are not achieved with the diversification of the economy and the provision and support of projects that operate within this framework, with the presence of chaos in them and the lack of control over this large activity that is drowning the country, undermining the opportunities for growth and development, and expanding the production base in a large and frightening manner, in addition to the fact that it introduces a lot of Goods that lack many health and environmental specifications and standards.
He added that financing is a complementary link when appropriate conditions are available, as happened with the launch of an initiative to lend for the use of clean energy, especially at the household level in the use of solar cells, indicating that we do not find any interest in this initiative, which forces us to review other factors related to the awareness process, as The vast majority of citizens do not have an adequate understanding of the benefits these cells bring on the personal and environmental levels.
The Financial Intermediary And Its Importance In The Modern Economy
News source/ newsroom The financial intermediary is one of the basic elements in the modern financial system, as it mediates between investors and dealers in the financial markets.
The financial intermediary plays a vital role in facilitating financial operations and balancing the supply and demand of financial resources.
The functions of a financial intermediary include providing various financial services, such as brokering purchases and sales, providing financial advice, managing investment portfolios, executing orders, issuing securities, and providing economic and financial research and analysis.
The ADSS trading broker acts as a link between investors and dealers, as it contributes to facilitating and organizing buying and selling operations and directing funds to appropriate investment channels.
Types of financial intermediaries range from banks and investment companies to brokerage firms, investment funds and financial agencies.
The financial broker is considered to have experience and deep knowledge of financial markets and various financial products, which enables him to provide financial and investment advice to investors and provide specialized financial services according to their individual needs.
The importance of the financial intermediary in the modern economy is invaluable, as it contributes to enhancing trust and transparency in financial markets and achieving financial stability.
A financial intermediary acts as a neutral intermediary between different parties, protecting the interests of investors and ensuring that transactions are executed with credibility and integrity.
Thanks to the role of financial intermediary, financial markets are stimulated and their liquidity increases, which enhances economic development and contributes to job creation and investment development.
A financial intermediary also provides opportunities for investors to access global financial markets, diversify their investment portfolios and achieve financial returns.
In other aspects, the financial intermediary plays an important role in directing savings and available funds towards the most effective investments suitable for investors' goals.
The financial intermediary provides financial analyzes and recommendations based on research and accurate financial information, which helps investors make informed and informed investment decisions.
In addition, the financial intermediary provides protection and guarantees to traders in the financial markets.
A financial intermediary uses financial tools and mechanisms to reduce risks and protect investors from severe market fluctuations, manipulation and financial fraud.
In general, the importance of the financial intermediary can be summarized in the following points:
1. Facilitating financial operations: The financial broker facilitates buying and selling operations and executing financial orders smoothly and effectively, which saves time and effort for investors.
2. Providing specialized financial services: The financial broker provides various financial services, such as financial consulting and investment portfolio management, which helps investors achieve their financial goals.
3. Increase transparency and trust: The financial intermediary works to improve the transparency of financial markets and provide accurate and reliable information to investors, which enhances confidence and protects their rights.
4. Achieving financial stability: The financial intermediary plays a role in achieving financial stability by regulating buying and selling operations and monitoring manipulation and fraud in the financial markets.
5. Enabling access to investment opportunities: The financial intermediary helps investors access investment opportunities available in local and global financial markets, which contributes to diversifying investment portfolios and achieving financial returns.
In short, the financial intermediary is an essential element in modern financial markets, playing a vital role in facilitating financial operations, achieving financial stability and protecting investors' rights. By providing specialized financial services and providing... https://iraqakhbar.com/4097094
Iraq Stops Burning 270 Million Feet Of Gas Within A Year: We Will Be An Exporter Within 6 Years
Economy |Yesterday, 19:02 | Baghdad today – Baghdad Oil Minister Hayan Abdul-Ghani Al-Sawad confirmed today, Wednesday (November 1, 2023), that investing all of the national gas is one of the government’s priorities and we hope that we will be a gas exporting country after six years.
Al-Sawad said in a statement received by “Baghdad Today” that
“the ministry was able to invest 270 million cubic feet of gas within a year of the current government’s life,” considering that “one of the government’s most important priorities is gas investment, and
there is a well-thought-out plan to invest it in the associated and free gas levels.”. Al-Sawad explained,
“Prime Minister Muhammad Shiaa al-Sudani is pushing towards increasing local gas production and reducing imported gas through a plan prepared for that, and
the ministry is working through this plan for the purpose of its gradual completion, as
we want to move as quickly as possible for the purpose of investing gas in oil fields or gas fields that will witness The coming period is an investment for it.”
Al-Sawad added, “The Ministry of Oil was able to implement strategic projects related to gas, most of which were in Basra and the Halfaya field in Maysan, in addition to the Akkas field in Anbar, from which the Ministry worked to invest gas in good quantities after a Korean company withdrew before taking over the current government, as we were able to proceed with partial gas investment from The field reaches 60 million cubic feet and will then be used to operate the Akkas Electrical Station, which lacked gas, which contributed to generating electrical energy and connecting it to the national grid to increase processing hours for citizens.
He explained that "all the prepared plans aim to reduce the import of gas from the Republic of Iran and other countries from which Iraq buys varying quantities," noting that
"the primary goal of the government and the ministry is for the country to be a gas exporter within the next six years, and this is what is being worked on according to plans." Government and ministerial strategy.
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Provoking Points to Ponder on Riches & Wealth:
No man can tell whether he is rich or poor by turning to his ledger. It is the heart that makes a man rich. He is rich according to what he is, not according to what he has. -- H W Beecher
The use we make of our fortune determines as to its sufficiency. A little is enough if used wisely, and too much if expended foolishly. -- Boovee
Worldly riches are like nuts; many clothes are torn in getting them, many a tooth broken in cracking them, but never a belly filled with eating them. -- Venning
Riches do not delight us so much with their possession, as torment us with their loss. -- Gregory
As riches and favor forsake a man we discover him to be a fool, but nobody could find it out in his prosperity. -- Bruy'ere
Worldly wealth is the devil's bait; and those whose minds feed upon riches, recede in general from real happiness, in proportion as their stores increase; as the moon, when she is fullest of light, is farthest from the sun. -- Burton
Wealth is like a viper, which is harmless if a man knows how to take hold of it; but if he does not, it will twine round his hand and bite him. -- St Clement
Money and time are the heaviest burdens of life, and the unhappiest of all mortals are those who have more of either than they know how to use. -- Johnson
There is no society, however free and democratic, where wealth will not create an aristocracy. -- Bulwer
Riches are gotten with pain, kept with care, and lost with grief. The cares of riches lie heavier upon a good man that the inconvenience of an honest poverty. -- L'Estrange