Iraq Economic News and Points To Ponder Thursday AM 8-8-24
Central Bank Governor: There Is No Intention To Reconsider The Dollar Exchange Rates And We Are Undergoing A Major Transformation Process
Time: 08/07/2024 19:26:47 Read: 3,302 times {Economic: Al-Furat News} Central Bank Governor Ali Al-Alaq ruled out a change in the dollar exchange rates.
Al-Alaq said in a press interview with him:
- There is no intention to reconsider the dollar exchange rates
The Central Bank sells more than $250 million daily at the official price
- The bank covers the requirements of foreign trade, and some do not want fundamentalist methods
The view that the price of the dollar has risen or fallen is not a correct indicator
We succeeded in controlling inflation compared to other countries
- We will reach 100 percent of foreign transfers without going through the US Federal Reserve by the end of this year
- The financial situation in Iraq is still proceeding within what is planned in the state’s general budget
- For the first time, under the new Budget and Financial Management Law, allocations to governorates and ministries are rotated
The Central Bank is undergoing a major transformation by reorganizing foreign trade
- Our procedures in foreign trade are conducted for the first time with the involvement of international institutions
The presence of small traders outside the system creates pressure on the market and the imminent launch of a mechanism to regulate their trade
We focus on getting everyone involved in sound fundamentalist channels
- The Central Bank opened channels for Chinese, Turkish, Indian and Emirati currency
- The imminent launch of a new audit mechanism for trade via foreign currencies
- All commercial external transfer operations are subject to review by the competent international company
- Meetings in New York at the end of August to discuss lifting sanctions on banks and reviewing transfer operations
- The dollar is not given to the traveler until after the departure stamp
The new mechanism guarantees 100 percent access of the dollar to the traveler, and we started with it in Baghdad, then Najaf, Basra, Erbil, Sulaymaniyah, and Kirkuk.
- A government move to increase capital support for the Real Estate Bank and the Housing Fund in the budget
The Bank’s initiatives have an exceptional role in trying to fill the housing deficit
- The capital increase paragraph for the Real Estate Bank and the Housing Fund in the budget has not been implemented yet
- We do not want bank financing to be a substitute for the investor’s obligations
We directed the Real Estate Bank to finance complexes with completion rates of 80 to 90 percent
https://alforatnews.iq/news/محافظ-البنك-المركزي-لا%C2%A0توجه-لإعادة-النظر-بأسعار-صرف-الدولار-ونخوض-عملية-تحول-كبرى
The Iraqi Central Bank Resolves The Controversy Over Reconsidering The Dollar Exchange Rates
August 7, 2024 Baghdad/Iraq Observer The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Wednesday, that the financial situation in Iraq is proceeding as planned, while noting that the
controversy over the dollar exchange rates has been resolved.
Al-Alaq said in a press interview followed by “Iraq Observer,” that “there are external and local challenges, but in general, the financial situation in Iraq is still proceeding within what is planned in the state’s general budget,” indicating that “there is high coordination between the central bank and the president.”
The ministers and the Ministry of Finance are committed to ensuring the financial aspect of its continuity, stability and sustainability.”
He added, “We are currently working closely, almost daily, with the Ministry of Finance in order to implement the financial plan drawn up in the general budget, in a way that ensures coverage of its objectives, programs, and existing needs,” noting that
“for the first time, by virtue of the new Budget and Financial Management Law, allocations for governorates and ministries have been rotated.”
Therefore, there is broad coverage of the needs of the financial side, and for the first time, the size of the balances held by the ministries and governorates is large, enabling them to perform their role.” He stated that
“the Central Bank is undergoing a major transformation process in reorganizing foreign trade in a way that secures several goals at the same time, and among these goals is the transparency of external transfer operations that begin from the transfer process and the transferor to the final beneficiary and to the exporter through all data, documents and information that enhance And it matches reality,” he explained, explaining that
“this process is taking place for the first time in the history of Iraq and involves international auditing institutions that scrutinize the information before it reaches the implementation stage, as long as the process meets all the local conditions and standards represented by the Anti-Money Laundering and Terrorist Financing Law or international standards then.”
These transfers will proceed, but if there is any deficiency, defect, or suspicion, they will be immediately rejected and returned.” He stated that
“the previous audit process was taking place, but in a subsequent process, and
the audits may continue for years, but now the process does not proceed unless it is sound in all its aspects, parties, documentation, reinforcements, and facts on which it is based,” explaining that
“any transformation process requires time and understanding between all parties and also to acceptance.” He stressed that
“the level of acceptance of this new system has included large and medium importing companies, thus ensuring all their imports with high smoothness, and this matter is very necessary,” pointing out that
“the problem of small traders, some of whom have entered this process and others are still hesitant to enter or are looking for... Other means to cover his foreign trade, either to escape tax or customs accountability or the procedures required by the process of opening accounts.”
He stated that “what we are focusing on in the current and next stage is to make everyone involved in sound fundamentalist channels,” pointing out that
“the presence of these small traders outside the system puts pressure on the dollar monetary market and causes its rise.” He pointed out that
“there are solutions that we are working on with international and financial institutions in order to organize the trade process of small merchants,” explaining that
“a meeting was held yesterday in this regard as a continuation of previous meetings, and
we need some time to organize this remaining process of foreign trade.”
Regarding other currencies, Al-Alaq confirmed that
“the Central Bank opened channels for the Chinese, Turkish, Indian and Emirati currencies, which are currencies that represent a large weight in foreign trade, as
there was a pause for a period due to a new regulation aimed at providing adequate control over these operations, because we discovered in the previous formula that there is some fraud in the use of currencies.”
These channels are either for unrealistic exporters or for returning sums from one country to another,” he explained, explaining that
“a new auditing mechanism has been put in place, carried out by an international company, and
we have finished organizing this process and it is now being launched again.” He pointed out that
“all commercial external transfer operations are subject to review by the competent international company, which is an intermediary between the Iraqi banks and the correspondent bank, in order to reassure the correspondent bank that these operations are sound and audited,” pointing out that
“some banks have correspondent banks and others do not have correspondent banks.”
It is internationally accredited, and now it is seeking to do so, but it is long overdue, and the
Central Bank is constantly urging the opening of relationships with correspondent banks, because the Iraqi Bank without external correspondents is considered a local bank and cannot open to the world.”
He stressed that “after our banks got to know the banks and realized the importance of these relationships, they began to move against those banks, and the Central Bank, for its part, supports and helps this trend.”
https://observeriraq.net/المركزي-العراقي-يحسم-جدل-إعادة-النظر-ب/
For current and reliable Iraqi news please visit: https://www.bondladyscorner.com/