Iraq Economic News and Points to Ponder Thursday Morning 4-24-25

The Central Bank Renews Its Warning Against Trading In Withdrawn Banknotes.
 
April 22, 2025   In recent years, this bank has observed the circulation of foreign banknotes from various countries,  some of which are genuine and in circulation,  others withdrawn from circulation, and 
some counterfeit.
 
Such banknotes are used by unscrupulous outlaws to defraud citizens by luring them into exchanging them for Iraqi dinars at prices far exceeding their actual value.

They claim that exchanging them offers them significant profits and rare investment opportunities.
 
Therefore, the Central Bank of Iraq calls upon the public and the specialized security and regulatory agencies to monitor these matters and refrain from handling these banknotes.
 
They should focus on Iraqi banknotes and those handled by the Central Bank of Iraq and the banking system, to avoid falling prey to outlaws.  Central Bank of Iraq     https://cbi.iq/news/view/2860  

Al-Sudani's Advisor: Annual Returns From Investing Reserves Are No Less Than $2 Billion.
 
Money and Business  Economy News – Baghdad  The Prime Minister's financial advisor, Mazhar Mohammed Saleh, confirmed on Tuesday that the "annual returns" from investing foreign reserves are no less than $2 billion, according to his estimates. Saleh said,
 
"These investments are often short-term and  directed toward US, European, or British treasury bonds, 
with the goal of achieving appropriate returns."

He added, "These investments are characterized by low risk and generate appropriate returns, and the invested assets can be quickly converted into cash without incurring losses."

Saleh pointed out that "profits generated from reserves are divided into two types: the  first is realized, represented by direct interest, and the  second is unrealized, resulting from diversifying the investment portfolio, in addition to realizing potential profits from exchange rate differences between currencies and gold."

The Central Bank of Iraq previously revealed a decline in foreign reserves for 2024, reaching 130.81 trillion dinars, a 10.18% decrease compared to the same period in 2023, when these reserves reached 145.64 trillion dinars. https://economy-news.net/content.php?id=54462    

Will The Government Resort To Mandatory Deposits For Citizens? These Obstacles
 
Time: 2025/04/21 22:48:02 Reading: 4,920 times {Economic: Al Furat News} The head of the Iraqi Economic Alliance, Adi Al-Alawi,
 
warned of the major challenges facing monetary and fiscal policy in Iraq,
emphasizing that financial reform requires real tools for transformation,
most notably the independence of the central bank.
 

During his appearance on the "Free Talk" program on Al Furat satellite channel this evening, Al-Alawi pointed out that:
 
"The most prominent problem lies in the lack of effective oversight of banks," stressing that
 
"the Central Bank is in one valley, and the banks are in another, as the latter
 
     do not adhere to official instructions and
     operate according to special policies,
 
which has caused the banking system to lose real control over it." He added that
 
"strict oversight represents the Central Bank's best weapon in controlling banking activity,"
 
calling for "a move toward a cashless economy despite a deep-rooted crisis of confidence among citizens in the banking system due to past experiences, including the seizure of funds in the 1990s and the subsequent bankruptcy or failure of some banks." Al-Alawi stressed that
 
"citizens cannot be forced to deposit their money in banks, even within the legal framework, because that would have negative repercussions." He pointed out that
 
"persuasion must be achieved through incentives," revealing that
 
"the number of shops and commercial companies registered with the Iraqi Chambers of Commerce is 1.2 million,
 
while the number of unregistered ones is 2.8 million,
 
bringing the total to approximately 4 million outlets." He explained that
 
"the mentality governing the Iraqi economy remains socialist,
despite the official transition to a market economy following the 2005 constitutional vote," suggesting that
 
"Iraq's budget is close to $100 billion or more, and was supposed to generate $12 billion from non-oil revenues."
 
Al-Alawi called for "a five-year tax freeze to
 
     regulate corporate operations and
     alleviate concerns about joining the financial system,
 
which could bolster the state treasury by $17 billion currently missing due to dollar-selling mechanisms."

In the same context, Al-Alawi revealed that
 
"the Central Bank has agreed with two international companies,
 
    one specializing in bank mergers and the
    other in private sector restructuring,
 
to submit a comprehensive study next July on the struggling banks."      
https://alforatnews.iq/news/هل-ستلجأ-الحكومة-إلى-الإيداع-الإجباري-للمواطنين؟-هذه-العقبات   

Banking Sector Update
 
Economic 04/15/2025  Yasser Al-Mutawali  Iraq has recently witnessed significant improvements on the political, economic, and security fronts, which has had a positive impact on attracting foreign and Arab investments, particularly in the banking sector.
 
The increasing presence of foreign and Arab banks in the country is evidence of a recovering investment environment and reflects government efforts to enhance economic stability.
 
Among the most notable positive indicators that have contributed to strengthening the investment environment are regional and international cooperation and Iraq's openness to Arab and international countries.
 
This has boosted investor confidence and encouraged Arab banks to expand their presence in Iraq, which is relied upon to provide advanced financial services, such as trade finance and Islamic banking, in addition to supporting the private sector and joint investments.
 
This step represents the optimal means for global integration through the entry of international banks, reflecting the return of investor confidence in the Iraqi economy.
 
Meanwhile, the Iraqi banking reform process, undertaken by the government to address the challenges facing the banking sector and keep pace with the digital age and international requirements, is proceeding along two parallel tracks.
 
The first involves reforming private banks, led by the Central Bank, and ensuring compliance with international standards and the implementation of anti-money laundering and counter-terrorism financing requirements.
 
This includes lifting the ban on dealing with Iraqi banks and cooperating with international companies to develop the technical infrastructure.
 
The second path is being adopted by the government to modernize state-owned banks, with support from the executive branch.
 
This involves improving efficiency and adopting modern banking systems to reduce corruption, increase transparency, integrate with the private sector, and encourage partnerships between banks.
 
It's worth noting that there are obstacles hindering banking development, including bureaucracy, legal complexities, weak digital infrastructure in some local banks, and the need for qualified human resources to manage modern financial systems.
 
This goal aims to create a modern banking system that supports the national economy.
 
However, complete success requires accelerating reforms to ensure compliance with international standards, transforming Iraq into an attractive financial center that contributes to economic diversification and the creation of new job opportunities, thus strengthening its regional and international standing.
 
In any case, there is no alternative but to integrate with the global financial and banking climate, after comprehensive reform is completed, with the aim of creating a unified national banking market, directing banking credit towards investment, driven by the promising economic stability our country enjoys.   https://alsabaah.iq/112899-.html  

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