Iraq Economic News and Points To Ponder Monday Morning 1-5-26

A Financial Expert Calls For Stricter Oversight Of Banks In Iraq.
 
Information / Baghdad... On Wednesday, financial and banking expert Abdul Aziz Hassoun called on the   Central Bank of Iraq to take   strict measures and    oversight    to regulate the work of banks, in order    to ensure the protection of citizens' rights, noting that the banking system in Iraq operates within an unstable environment   that has prevented it from performing its normal functions.

Hassoun told Al-Maalomah News Agency that "the security, economic and social conditions   are major factors for instability in the banking sector,      which negatively affects citizens' confidence and      pushes them to refrain from depositing,     especially in government banks,    which leads to a   shortage of cash liquidity and   disrupts economic activities in the country." 

He added that "a large number of banks have begun to engage in activities   that do not fall under the category of real banking,   exploiting the state of turmoil to achieve private gains      at the expense of the banking policy set by the Central Bank." 

He explained that "the Central Bank is required today to   implement strict procedures and   activate serious oversight of banks' operations, with the aim of      securing citizens' rights and   strengthening confidence in the banking system," noting that "directing financial revenues solely towards imports is one of the main reasons for the decline and stagnation of banking performance in Iraq."  https://almaalomah.me/news/118928/economy/خبير-مالي-يدعو-إلى-رقابة-مشددة-على-المصارف-في-العراق    

Economic: The Shift Towards An Electronic Payment System Provides The State With Financial Liquidity.
 
Information/Baghdad...  Economic researcher Diaa Abdul Karim found that the shift in transactions within state departments   to an electronic system for      paying fees and      collecting taxes         will provide the state with significant liquidity.  Abdul Karim told Al-Maalomah,  “Iraq is still young in its transition towards electronic payment systems, while European countries and even neighboring countries have preceded Iraq  by many years in the transition towards electronic payment.” 

He added that  "there is a lack of acceptance of the electronic system,as the people are not used to such systems,   despite their great benefit and the fact that   they protect citizens from financial theft and   ensure easy purchasing without the burden of carrying and protecting money." 
 
He explained that  "the primary goal of   transitioning to an electronic payment system and   expanding this experience across various government departments is to   ensure the availability of cash for the state, in addition to  guaranteeing that it does not bear additional burdens related to printing currency.
 
Therefore, it is a positive step, provided there is proper public awareness and acceptance of it in Iraq." (End of quote, 25)    
  
https://almaalomah.me/news/117207/economy/اقتصادي:-التحول-نحو-نظام-الدفع-الالكتروني-يوفر-للدولة-سيولة    
  

Prevailing Economic System
 
Economic    Yasser Al-Mutawalli  We are addressing a very important topic,  resulting from the outputs of the liberal economic system supported by the International Monetary Fund and the World Bank, a system based on the theory of the trickle-down effect of growth.
 
This theory is based on stimulating investment, whether internal or external,
which results in growth.
 
Growth is defined as meeting a country’s needs for services and goods, and investment is what provides these needs.
 
This theory, adopted by the IMF and the World Bank,suggests that the process of stimulating investment is summarized in  tax exemptions on profits and wages, which encourages investors to increase production and generate profits, and thus create large and wide job opportunities, thereby  achieving sustainable growth and reaching its goals, which mean  achieving well-being and more services and goods    that meet the needs and desires of society.
 
This theory seems comfortable and satisfying when the fruits of growth fall on the citizen, but over time a group of economic experts discover that this theory cannot be applied as the  profits of companies grow as  institutions expand in size    to become monopolies… The question is how?
 
The goal of investing and producing companies is to generate profits, and this goal can be achieved in two different ways.
 
The first, and most important, is for these companies to expand their investments,  whether in factories or farms,  as net investments that contribute to growth and its fruits.
 
The second way is to reduce costs to achieve maximum profits by reducing production.
 
Large companies in this case become monopolistic through saving,   which means that surplus funds leave the income cycle, thus reducing wages.
 
This necessitates providing additional incentives to encourage them to invest domestically.
 
The second way has appealed to companies because of its ease,  thus obscuring the true purpose of growth.
 
But over time, and given the freedom of companies to move their money,   they began planning to invest outside the country in the space of globalization to obtain incentives to achieve more profits,  through the  thirst of those countries for foreign investments and  obtaining    cheap labor and   a market that accepts production,  which pushes them not to expand in domestic investments.
 
Herein lies the problem of the occurrence of people’s disturbances due to the  lack of job opportunities and high prices, and the  occurrence of stagflation and weak growth,  despite the incentives that companies obtained from tax exemptions on their   profits and other privileges within the framework of the  philosophy of supply-side economics.
 
This is the origin of the prevailing and globally promoted economic system, which makes addressing the causes of  declining growth and  rising unemployment    a path inextricably linked to advocating for the liberal growth model.

Therefore,  most developing countries resort to attracting foreign investment to capitalize on its potential to achieve growth that provides societal well-being by supplying the necessary goods and services and creating job opportunities.
 
Here, experts advise the importance of taking the necessary measures when working to attract foreign investments, to contribute to the targeted growth, provided that a balance is achieved between investment incentives such as exemptions on profits and the freedom of movement of company capital, by not allowing monopolies, in order to benefit from the theory of reaping the fruits of falling growth leaves.
 
This balance can be achieved through competitiveness, adopting a system of multiple companies for a single activity, and making the partnerships required to achieve this goal.      https://alsabaah.iq/125222-.html    
  

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com