Iraq Economic News and Points To Ponder Monday AM 9-9-24

Are Central Bank Decisions Sufficient To Stop Inflation And Strengthen The Currency In Iraq?
 
September 8, 2024 Last updated: September 8, 2024   Independent/- As part of the Iraqi government’s efforts to improve the economic situation and stabilize the local currency, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the role of the central bank’s decisions in reducing inflation rates and enhancing the value of the national currency.
 
While Saleh's statements reflect the government's commitment to achieving economic stability, many questions arise about the effectiveness of these policies in confronting real economic challenges.
 
The role of the central bank in stabilizing the currency: Saleh stressed that the monetary policies of the central bank, including decisions to raise or lower interest rates, play an important role in stabilizing the local currency.

He explained that these policies aim to achieve a balance between the internal and external value of the currency, which is supposed to contribute to reducing inflation rates.
 
While these measures are viewed as economic stabilizers, the question remains as to how well they will meet the challenges of rising inflation and other economic pressures.
 
Economic growth and enhancing the value of the currency: Saleh pointed out that sustainable economic growth enhances the value and stability of the currency.
 
He stressed that the real factors affecting currency strength include high productivity, good employment, real investment, and innovation.
 
In this context, many wonder about the ability of the Iraqi economy to achieve this sustainable growth, in light of the challenges it faces, such as low oil prices and political crises.
 
Technology and Innovation: Stimulating Productivity and Economic Growth: Saleh pointed out that technology and innovation can play a decisive role in improving productivity and economic growth, which enhances the value of the currency.
 
However, while innovation and technology are positive factors, achieving these goals requires a suitable environment for research and development, as well as effective investment support.
 
In this regard, questions remain about the extent of Iraq's ability to achieve these requirements amid the current challenges.
 
The importance of political and administrative stability: Saleh also explained that political stability and the strength of the administrative system are important factors in enhancing confidence in the national currency.
 
In this context, many wonder about the stability of the political and administrative situation in Iraq, especially in light of the ongoing political crises and administrative challenges.
 
Achieving political stability may be essential to achieving the desired economic goals.   
 
https://mustaqila.com/هل-قرارات-البنك-المركزي-كافية-لوقف-الت/   

Economist: The Ban On Iraqi Banks May Be Lifted Within Six Months
 
 September 8 19:06  Information/private..  Economist Ahmed Abd Rabbo revealed today, Sunday, that 
Oliver Wyman has conducted a comprehensive review of the conditions of Iraqi banks, and its report may be issued after six months.
 
Abd Rabbo said in a special statement to the Maalouma Agency,
 
“The decisions of that company regarding the sanctioned banks will be binding on the Central Bank of Iraq and the US Federal Reserve,” noting that
 
“reforming the banking system facilitates the process of economic reforms.”  He continued,
 
"The company's final report may lift the ban on Iraqi banks, while it was positive," pointing out that
 
"lifting the ban on Iraqi banks will help support the Iraqi economy."
 
It is noteworthy that America imposes several sanctions on Iraqi banks in an attempt to pressure the Iraqi government to pass various policies.    https://almaalomah.me/news/75810/economy/اقتصادي:-الحظر-على-المصارف-العراقية-قد-يرفع-خلال-ستة-اشهر   

18 Trillion Dinars, The Volume Of Digital Trading In Iraq
 
September 8, 2024  Baghdad/Iraq Observer  The electronic payment campaign announced today, Sunday, that the volume of digital trading has risen to 18 trillion dinars, while highlighting the economic gains.
 
Campaign spokesman Mustafa Akram Hantoush said in an interview followed by Iraq Observer,
 
“Electronic payment has achieved very great achievements, and
 
it is a very successful experience in the financial and banking aspect and beneficial to all parties.”  He added,
 
 “Cash dealing involves risks, as
 
     money can be stolen or burned when transported or stored, or
     exposed to loss, while
 
electronic dealing and digital trading
 
     facilitate the process of transferring and trading money and are
 
beneficial to the state so that there is a
 
     reading of liquidity, collecting money, and a
     reading of the payments and the winning and losing sectors, which can be
 
“Through which plans are made.” 

He continued,  “Electronic payment is a successful topic by all standards, and the
 
countries that implement it are witnessing development in the financial and banking system.”
 
Regarding the numbers achieved, Hantoush explained,
 
“The total electronic payment by the year 2020 did not exceed 300 billion dinars, compared to electronic payment for the current year, which reached more than 18 trillion dinars. This is a big leap that is not easy to achieve within 3-4 years.” 

He stated that   “there are about 20 million electronic payment cards so far, after we had nearly 10 million cards in 2020,” explaining that
 
“the indicators of the issue are positive and it is successful in all aspects.”  He stated that
 
 “the government, with its recent decisions and the specialized committees on electronic payment, has reached the levels of detailed statements, liquidity statements, risk assessment, and even the issue of regulations and directing electronic signatures,” explaining that
 
“the issue of electronic payment has become in line with society.”  He stressed that
 
 “the government recently issued a set of decisions related to regulatory cases, including activating a law special for electronic signature, and creating a financial regulation for electronic payment between the Integrity Commission and the Supervision Bureau,” explaining that
 
“the issue has moved from the stage of applied procedures to the stage of general organization.” 
 
https://observeriraq.net/18-ترليون-دينار-حجم-التداول-الرقمي-في-ال/    

Government Advisor: We Are Working To Develop A Tax System That Is Attractive To Investors
 
Economy    Baghdad – IA  Sunday, the Chairman of the Supreme Committee for Tax Reform and Advisor to the Prime Minister for Economic Affairs, Abdul Hussein Al-Anbaki, announced a three-pronged plan for tax reform.
 
While he indicated taking facilitating measures related to tax administration, he confirmed the exemption of previous fines for many segments to restore the confidence of those charged with paying the tax.

Al-Anbaki told the Iraqi News Agency (INA):
 
“Some media outlets interpreted the tax reform as meaning that its purpose is to increase non-oil revenues, and this interpretation is not scientifically sound,” indicating that
 
“the primary goal of the tax reform is to create an easy, transparent tax system that is friendly to the business environment.”
 
It is attractive to investors, because the tax rate is not the basis, but rather the tax rate when multiplied by the tax base, the result is tax revenue.” He continued:
 
 “In tax reform, we seek to make the tax base large,” explaining that
 
“when the tax base is large, tax revenues will inevitably rise, even if the tax rates are the same and at lower rates.” He added,
 
"Tax revenues are an incidental result of the state of tax reform and not the basis for which the field of tax reform is launched," noting that
 
"the Supreme Committee for Tax Reform wants to
 
     achieve tax justice and
     make tax accounting easy and transparent, and
     does not want there to be cases of "Extortion, obstruction and delay in tax procedures." He pointed out that
 
"many facilitations have been made that, as a result, lead to restoring the confidence of those charged with paying taxes in the tax administration," noting that
 
"many brackets have been exempted, the cases of allowances have been expanded, and
 
they have been exempted from previous fines and accumulated interest for the purpose of restoring the confidence of those charged with the tax administration." He stated,
 
"When those responsible for accounting come, this will lead to an increase in tax revenues," stressing that
 
"the purpose of these measures is to create a tax system that is attractive to investors and not to search for an increase in tax revenues only because increasing tax revenues is considered an achievement."    https://www.ina.iq/216450--.html   

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