Iraq Economic News and Points to Ponder Thursday Evening 10-19-23
Iraq Economic News and Points to Ponder Thursday Evening 10-19-23
Tlm724 Administrator Bondlady’s Corner
A Crisis Of Confidence Or Psychological Factors.. What Are The Reasons For Iraqis Not Depositing Their Money In Banks?
Special files |Baghdad Today – Baghdad We often hear about the loss of a sum of money due to a fire accident inside a house or an armed robbery, as a result of citizens keeping money at home away from bank deposits, and despite the progress made in the financial and banking sector and the emergence of electronic payment cards, the citizen still prefers to deal with " Cash" in the details of his daily life, which raises many questions, the reasons for which economists explain to "Baghdad Today."
Today, Wednesday (October 18, 2023), economic expert Mahdi Douai explained the factors behind why Iraqis do not deposit their money in banks.
4 Main Factors
In an interview with "Baghdad Today", Douai says, "Raising the interest rate is a measure adopted by monetary policy in most countries of the world in order to withdraw the monetary mass for objective reasons that reflect positively on the economic aspect, whether through
financing internal loans or creating specific balances."
He pointed out, "4 factors hinder Iraqis from depositing their money in banks: the
weak banking culture among large segments, as well as the
religious motives that influence the decision of many, not to mention the presence of a
psychological factor that prompts some to keep money at home, and there is a final and important factor, which is the weak confidence of many " With banks.”
Banking system
The economic expert stated that “the banking system in Iraq has begun to take important measures that are economically feasible in the file of dealing with liquidity, including internal loans and providing liquidity to the government,” adding,
“But the matter is not very reliable due to the weak turnout, which requires efforts in order to push people to deposit.” Their money is in the banks.”
Last January, Iraqi Prime Minister Muhammad Shiaa Al-Sudani announced a number of financial and economic reforms in the country, including the activation of the electronic payment system, as a statement issued by his office announced work to activate the “electronic payment” (Point of Sales) system, effective From the first of next June.”
The government has confirmed the start of implementing the system, exempting its electronic equipment from taxes, in an attempt to encourage private companies to adopt this system, as Iraq is one of the lagging countries in implementing it.
Economic affairs specialists confirm that implementing the electronic payment system means the necessity of opening bank accounts for all shopping centers, hospitals, factories, medical clinics, pharmacies, and others.
Withdrawal Of The Yacht Company’s License To Mediate In The Buying And Selling Of Foreign Currencies
October 19, 2023 Based on the decision of the Board of Directors of this bank No. (125) of 2023, taken at its session numbered 1638, held on 7/18/2023, we would like to inform the Ministry of Commerce / Company Registration Department of the following: -
1. It was decided to withdraw the yacht company’s license to mediate in the sale and purchase of foreign currencies, cancel the certificate of incorporation granted to it by you, and provide us with a letter deleting the company’s name from your records, and the minutes and letter of liquidation.
2. Please take into consideration when you carry out liquidation procedures that there are amounts owed by the company for an amount (the letter of guarantee of 10% of its capital / and the wages collected by this bank) that have not been paid to date. https://cbi.iq/news/view/2453
Parliamentary Finance Refuses To Hold “Foreign Banks” Alone Responsible For The Collapse Of The Dinar
Economy |Baghdad Today – Baghdad Today, Thursday (October 19, 2023), member of the Parliamentary Finance Committee, Mudar Al-Karawi, identified the impact of foreign banks in the collapse of the Iraqi dinar in the face of the rise in the dollar exchange rate.
Al-Karawi told “Baghdad Today” that “the opening of the headquarters of international banks, whether Arab or foreign, in Baghdad and the rest of the governorates
is a positive situation and it exists in all countries of the world, and it
comes within the framework of openness, attracting investments and
creating infrastructure in the world of finance to secure companies’ commitment and
receive their entitlements.” And transferring money, whether for investments or building new projects.”
He added, “The rise of the dollar and the decline in the value of the dinar have other dimensions and causes, some of which are internal and others external,” pointing out,
“The Finance Committee recently discussed with the management of the Central Bank its mechanisms for controlling the rhythm of the parallel market and limiting the rise of the dollar, and
there are a series of measures that will be adopted to overcome some of the negatives.” He stressed that “the dollar problem cannot be blamed on foreign banks, but rather applying a transparent road map to prevent its smuggling will have the most impact.”
He pointed out that "the Finance Committee has a comprehensive assessment of the monetary and financial situation in the country and is dealing with the challenges," pointing out that "changing some of the Central Bank's mechanisms with the issue of pumping the dollar will be a priority in the next stage."
The Ministerial Council for the Economy hosted, in its session last Monday, the Governor of the Central Bank, Ali Al-Alaq, who indicated that the dollar exchange rate “depends primarily on imports and
not on local production,” pointing out that “many factors affect the exchange rate, the most important of which is the leakage of the dollar to countries.”
Neighborhood and internal dealing in local markets using other than the national currency, as well as the lack of complete control over ports and smuggling.”
Al-Alaq also announced that “the Central Bank raised the interest rate for amounts deposited in banks to 7.5 percent to encourage citizens to deposit their amounts in banks and withdraw the cash mass from the banks.”
There are many measures that the government has taken in order to control the price of the dollar,
but day after day it proves its failure to control it, which reflects negatively on the lives of citizens today because it is closely linked to their trade and their ability to purchase consumer goods.
The exchange rates of the dollar against the dinar stabilized in Baghdad this evening, Thursday, with the closure of the Al-Kifah and Al-Harithiya stock exchanges, recording 159,800 dinars for every 100 dollars, which are the same prices recorded this morning.
While prices rose slightly in Erbil with the closure, as the selling price reached 160,000 dinars for every 100 dollars, and the purchase price was 159,900 dinars for every 100 dollars.
Baghdad Airport Reveals The Names Of 4 Companies That Sell Dollars To Travelers
Politics 2023/10/19 21:52 Number of readings : 147 Baghdad - Iraq today: Baghdad International Airport announced the opening of 4 outlets selling dollars to travelers. The airport’s media office stated in a press statement,
“With the aim of continuous coordination and cooperation between the Civil Aviation Authority and the Central Bank of Iraq in order to provide the best possible services and facilities for the purpose of the traveler obtaining dollars while traveling at Iraqi airports, the Baghdad International Airport administration has opened 4 outlets to sell dollars to travelers.”. The statement added,
“The administration noted that depositing the amounts takes place outside the airport and receiving them in the transit lounge during departure.”
Below are the names of the banks involved:
1- Sama Baghdad Exchange Company
2- Al-Fanjan Exchange Company
3- Al-Qand Exchange Company
4- Al Rayyan Exchange Company
https://iraqtoday.com/news/76688/مطار-بغداد-يكشف-اسماء-4-شركات-تبيع-الدولار-للمسافرين
Al-Rafidain Launches Reconstruction Bonds For Citizens: With An Interest Rate Of Up To 8%
Economy |Baghdad Today – Baghdad Rafidain Bank announced, this evening, Thursday (October 19, 2023), that it will begin issuing reconstruction bonds to citizens with an interest rate of up to 8 percent.
The bank's media office said in a statement received by "Baghdad Today", that "based on the instructions of the Ministry of Finance and the Central Bank of Iraq, Rafidain Bank announces the commencement of issuing (Emaar) bonds and making them available to citizens, starting from 10/10/2023 until 11/9/2023.".
The statement explained that the bonds are in two categories:
“The first is a bond of 500 thousand dinars, with an annual interest of 6 percent, paid every six months for a period of two years, and the
other category is a bond of one million dinars, with an annual interest of 8 percent, paid every six months for a period of four years.”
The bank confirmed that “the person wishing to purchase bonds must submit a direct request to the bank, bringing with him the original identification documents.
The buyer is also given a receipt by the bank in exchange for the amount he paid to purchase the bond, where he keeps it until the bond is prepared, and the buyer brings the aforementioned receipt to the bank.” The bank will receive the bond after it is prepared.”
He explained, "Bonds are traded in the stock market, buying and selling. In addition, the bond's statute of limitations is 10 years after maturity, and then it is transferred to the Ministry of Finance."
The bank noted, “Purchasing and trading the offered bonds (construction bonds) is exempt from taxes, according to what is stated in Federal Budget Law No. 13 of 2023.”
https://baghdadtoday.news/233625-الرافدين-يطلق-سندات-اعمار-للمواطنين-بفائدة-تصل-لـ8.html
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Points to Ponder on FEAR:
48. I love you, I thought. But I didn’t say it. It was not that I feared she would laugh in my face. She was far too kind for that. My fear was a greater one – that she won’t say it back. ~ Alex Flinn
49. Your fear is 100% dependent on you for its survival. ~ Steve Maraboli
50. Deep in my heart I’m concealing things that I’m longing to say. Scared to confess what I’m feeling – frightened you’ll slip away. ~ Madonna
51. Only those who have never known fear are allowed to think less of others for being afraid. Frankly, I think anyone who has never been afraid of anything in their entire life is either a liar or lacks imagination. ~ Laurel K. Hamilton