Iraqi News Early Sunday AM 2-6-22
Iraqi News Early Sunday AM 2-6-22
TLM724 Administrator BondLady’s Corner
The Central Bank Announces The Increase In Its Reserves Of Gold And Hard Currency
Economie Yesterday, 19:44 Baghdad - INA - Nassar Al-Hajj The Central Bank revealed, today, Saturday, the increase in its reserves of gold and hard currency, while explaining its value.
Deputy Governor of the Central Bank, Ihsan Shamran al-Yasiri, told the Iraqi News Agency (INA), that "the central bank's reserves of hard currency witnessed a stable rise for more than a year, affected by the balanced measures of monetary policy, with which it exceeded the $64 billion barrier at the beginning of February 2022, as gold assets exceeded."
The Central Bank has 96 tons in reserves.
He added, "The Central Bank continues to support banks to expand development opportunities in the country and reduce the financing gap."
Earlier, the Central Bank of Iraq announced an increase in the allocations of its initiative to lend to small and medium enterprises.
And the Governor of the Bank, Mustafa Ghaleb, stated in a statement received by the Iraqi News Agency (INA), that "the Central Bank increased the amount of its initiative to lend to small and medium-sized enterprises by an amount of one trillion dinars, bringing the total amount allocated for this goal to two trillion dinars," noting that "the Central Bank's lending initiatives, contributed to Supporting the sectors of industry, agriculture, housing and trade, and they now constitute nearly 30% of the total credit granted to the private sector, and have contributed an important percentage to the GDP.
He added, "There are some loans provided by the Central Bank that are granted without interest, without an administrative commission only."
The percentage of its implementation reached 90%, which prompted us to increase its amount by an additional trillion dinars.
And he continued, fearing, according to the statement, that "the monetary policy tools contributed greatly to supporting the economy and overcoming the financial crises that occurred in the country."
It is noteworthy that the Central Bank launched multiple lending initiatives, including the initiative to finance small and medium projects, the initiative for large projects amounting to five trillion dinars to finance specialized banks, as well as three trillion dinars to support the real estate sector, and finally the clean energy initiative in the amount of one trillion dinars, bringing the total amounts allocated to development initiatives More than fifteen trillion Iraqi dinars. https://www.ina.iq/148159--.html
The Governor Of The Central Bank Confirms Iraq's Keenness To Benefit From Egyptian Investments
Economie 4-02-2022, 12:56 BAGHDAD – INA Central Bank Governor Mustafa Ghaleb affirmed, on Friday, Iraq's keenness to benefit from the Egyptian Investment Authority.
And the media office of the Central Bank stated in a statement received by the Iraqi News Agency (INA), that “the Governor of the Central Bank, Mustafa Ghaleb, met with Counselor Mohamed Abdel Wahab, CEO of the Egyptian General Authority for Investment and Free Zones, and in the presence of the Ambassador of the Republic of Iraq in Cairo Ahmed Nayef Rashid Al-Dulaimi and its permanent representative to the University of Arab countries, and a cadre of the embassy, at the headquarters of the General Investment Authority in Cairo.
According to the statement, the Governor of the Central Bank expressed his sincere appreciation and happiness for the warm reception he saw in Egypt, pointing out that "the welcome demonstrates the depth and solidity of the brotherly relations between the two brotherly countries that extend throughout history."
The Governor of the Central Bank praised "the development witnessed by the Arab Republic of Egypt in all sectors, especially the business and investment sector, stressing" Iraq's keenness to benefit from the capabilities available at the General Investment Authority and its training academy.
The work of the new Egyptian investment law continued, explaining that “the frequent coordination with brotherly Iraq comes with the aim of activating bilateral cooperation mechanisms in the fields of infrastructure, electricity, and real estate development, and maximizing mutual benefit from the experiences of the two countries in developing economic legislation, in a way that contributes to creating a business environment for investors from sides."
He referred to "Egypt's desire to work in the promising Iraqi market, which has become ready after defeating terrorism."
And he added, "Counsellor Mohamed Abdel Wahab, accompanied Mustafa Ghaleb, and the accompanying delegation, on a tour inside the corridors of the General Authority for Investment and Free Zones, to get acquainted with its facilities and mechanisms of work, noting that" at the end of the meeting, the CEO of the Egyptian General Authority for Investment and Free Zones presented a shield of appreciation. to the Governor of the Central Bank. https://www.ina.iq/148077--.html
Al-Kazemi's Advisor Clarifies The Most Important Tasks Of The Financial Management Law
Political Yesterday, 21:15 Baghdad - INA - Nassar Al-Hajj, Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, revealed today, Thursday, the fate of salaries, pensions, and grants, with the delay in approving the general budget for the fiscal year 2022, while clarifying the most prominent tasks of the Financial Management Law.
Saleh said, in a statement to the Iraqi News Agency (INA), that "the effective financial management law is one of its first tasks to secure actual current expenses with an average exchange base of 1/12," noting that
it is "an important mechanism that guarantees payments of a recurring, actual nature, specifically salaries, wages, government grants and pensions."
Pension and social care are non-stop, even if the budget approval is delayed.
He added, "The adoption of the Federal General Budget Law for the year 2022 is a fundamental goal in planning economic policy and its essential pillar, as it is linked to the issue of growth in the economy."
He pointed out that "the budget has an important function, which is to ensure the achievement of a prosperous level of GDP that exceeds the annual population growth, and this can only be achieved by advancing the added or new production capacities approved by the investment budget towards income-generating and employment projects." https://www.ina.iq/148045--.html
Finance: The Iraqi Economy Has Begun To Recover As A Result Of The Reform Steps Of The White Paper
Economie Yesterday, 20:43 Baghdad – conscious Today, Saturday, the Ministry of Finance confirmed that the Iraqi economy has begun to recover as a result of the reform steps of the White Paper.
The ministry said in a statement received by the Iraqi News Agency (INA), that "Finance Minister Ali Abdul-Amir Allawi participated in the activities of the Bahr al-Ulum Dialogue Forum, which aimed to activate dialogue between the Iraqi elites and fill part of the void that the arena suffers from in its various axes, and one of its requirements is openness." On the various Iraqi segments, away from partisan, sectarian and nationalist entrenchments.
She pointed out that "the main objective of establishing such intellectual activities and meaningful dialogues is to produce a movement that helps create a moderate climate for the practice of political and economic work."
And she continued, "The forum witnessed the presentation of many of the articulated axes that His Excellency the Minister touched upon, the most important of which is the policy of changing the exchange rate that guarantees the revival of the Iraqi economy by supporting the productive sectors in the private sector and discussing opinions and ideas related to the current economic reality, and ways to move from the current low level of productivity.
And income to a high level of productivity and income, which is done by addressing the factors that led to low labor productivity in Iraq, which in 2018 recorded less than half of what it was in the seventies of the last century due to the dominance of the unproductive public sector, in addition to the decline in the goods sector. tradable, and the negative effects of the non-competitive exchange rate of the Iraqi dinar - especially against the exchange rates of the currencies of Iraq's trading partners - on the agricultural and basic industries sectors in Iraq over the past decades.
She pointed out that "reports of the World Bank, the International Monetary Fund and international organizations show that the Iraqi economy began to recover gradually at the beginning of 2021, as the World Bank and the International Monetary Fund expected the growth of the Iraqi economy, as a result of the reform steps that the Iraqi government is working on, embodied in the White Paper and its contents."
And she indicated that "the forum granted Allawi the shield of creativity and excellence and a certificate of appreciation for the distinguished efforts he made during the short period that passed since his assumption of the ministerial position." https://www.ina.iq/148163--.html
Economist For / Nina /: The Security And Political Situation Are Two Reasons For The Flight Of Capital And Investors From The Country
Saturday 05, February 2022 11:31 | economic Number of readings: 99
Baghdad / NINA / - An expert in economic affairs, Malaz Al-Amin, confirmed: "The instability of the political and security situation in Iraq negatively affects the economic situation of the country through the flight of capital and investors," calling for the development of productive economic plans to revive the economy in Iraq.
Al-Amin said in a statement to the National Iraqi News Agency / NINA /: "There is a close relationship between politics and the economy, and the economy may control politics or politicians control the economy, and this matter is affected by the system of government, the culture of society, and external influencers."
He added: "When the political situation in a particular country is stable and the political leaders agree to rule or distribute power in a stable manner, markets flourish and money flows in investments, building and operating productive sectors, taking advantage of the profits achieved in the stable and secure future, which supports the country's economy and encourages it to innovate new means. To strengthen, increase and expand it, as the benefit will spread to the citizens and the value of the national currency.”
Al-Amin pointed out that "some leaders set economic plans, but they are not implemented, which pushes the capital to flee, which leads it to difficult economic setbacks that cannot be treated until decades later."
He called on the political leadership that developed the economic plans to take advantage of the available capabilities in the country, such as the geographical location, natural resources and human wealth, and to develop the economic capabilities to build a balanced, stable economic system capable of growth and development. New ones that generate profits and provide job opportunities.
https://ninanews.com/Website/News/Details?key=954745
An Economist Warns Of The High Unemployment Rate In Iraqi Society
Saturday 05, February 2022 10:28 | economic Number of readings: 193 Baghdad / NINA / - An expert in economic affairs, Raad Twij, warned of the high rate of unemployment in Iraqi society in return for the increase in human growth, stressing:
"Unemployment increases the negative social repercussions, which requires controlling the engineering population growth process through awareness, planning, setting standards and guidance."
Twig said in a statement to the National Iraqi News Agency ( NINA ): "The percentage of young people in the population pyramid in Iraq has increased, after the percentage of young people was 45%, which ranges between ages (15 to 45 years), that is, of working age, it has become, according to the declaration of the United Nations. 60%.
In such cases, the dependency ratio is supposed to decrease, as each person supports 5 people, and the dependency ratio becomes each person supports 7 people, due to the high unemployment rate.” He pointed out that "the high rate of unemployment increases the negative social repercussions, which requires controlling the process of engineering population growth through awareness, planning, setting standards and guidance,"
noting that, the Ministry of Planning did not work in this direction and it is at the core of its work and duty, and that population growth rates in Iraq are from the highest Growth rates in the world, and may reach 2.7%. It is supposed to be 2% or less, as in the European Union countries, and in this way, these countries preserved their well-being.” https://ninanews.com/Website/News/Details?key=954727
Is China Seeking Iraq's Oil To Reduce Its Dependence On Iran?
"Beijing does not want to link more with Tehran because of its involvement in many files in the countries of the region."
Ahmed Mostafa is a journalist specializing in international affairs
Friday 4 February 2022 7:09
A general view of an oil facility in Iran (Reuters)
At a time when Chinese investments abroad are declining from their previous level, Beijing is intensifying its investments in the Middle East, specifically in Iraq, as indicated in the report issued on Wednesday by the Center for Green Finance and Development at Fudan University in Shanghai and reported by news agencies.
According to the report, China signed deals in Iraq last year worth $10.5 billion as part of the Belt and Road Initiative, which is a priority for Chinese President Xi Jinping.
The increase in the volume of Chinese investments in Iraq comes at a time when it is declining abroad, according to the Fudan University report.
Director of the Institute of Development and Green Finance at the university, Christoph Nedobel Wang, said they were surprised by the huge increase in the extent of China's pursuit of linking with the Middle East and Arab countries.
He added, "We imagined that the focus would be on the Southeast Asia region, including investment in infrastructure in the countries of that region, but the reality was that the greatest interest was Iraq and the shift towards the countries of Africa and the Middle East."
According to the report’s figures, the Chinese Ministry of Commerce’s pledges within the five-year plan to 2025 for investments within the Belt and Road Initiative and others amounted to 550 billion dollars, which is about a quarter (25 percent) less than foreign investments in the previous five-year plan 2016-2021, which included the value of 740 billion dollars.
While Chinese investments in Arab and Middle Eastern countries within the current five-year plan increase by 360 percent for construction and infrastructure investments, and by 116 percent for investments in economic and commercial contracts.
Over the past two years, Iraqis have been talking about a powerful increase in Chinese influence in the country. In the opinion of the "Financial Times" newspaper, China's strong entry into Iraq came after what appeared to be the withdrawal of the United States from the Middle East, so China is trying to fill the void.
Some analysts link the Chinese tendency towards Iraq more with the American withdrawal from Afghanistan and the return of the "Taliban" control over the country rich in natural resources.
It is not excluded that Beijing's eye on Iraq's wealth of energy and raw materials, especially since Iraq is the third largest oil producer in the Organization of Petroleum Exporting Countries (OPEC).
The start of the development of Chinese-Iraqi relations dates back to the presidency of Adel Abdul-Mahdi, the Iraqi government, who described these relations in 2019 as a "huge leap". It seems that this jump coincided with the American disengagement from the region, according to observers.
According to a semi-official source, who asked not to be named, Beijing has been working hard to increase its influence in Iraq for some time, in order to compensate for any decline in its relationship with Iran.
The Iraqi source adds: "It is clear that the Chinese have begun to abandon and develop their close relationship with the Iranians, due to the increasing difficulty in importing Iranian oil.
The Chinese do not want to link with Iran more because of its involvement in many files in the countries of the region that could constitute an obstacle to developing China's relationship with Iran." These countries.
This is the reason for their interest in switching to Iraq to compensate for their imports of Iranian oil.
In this context, the Chinese are expanding in concluding deals and agreements, even with extremist groups, warlords and militias, in order to promote the extent of benefit that can accrue to the Iraqis from increasing the Chinese role in their country.
Sources close to the Vienna talks between Iran and the major powers on reviving the 2015 nuclear deal, from which the US administration during the presidency of Donald Trump withdrew in 2018, said that China is no longer "absolutely supportive" of the Iranian position in the negotiations.
China and Russia have traditionally favored Iran's position vis-à-vis the positions of the three European signatories to the agreement: Germany, France and Britain. But the Chinese in recent rounds began advising the Iranians not to be strict in their demands to lift all sanctions and to "reason" in reversing the violation of the nuclear agreement.
Capabilities
Iraqis from different components of the country's political spectrum fear that the significant increase in Chinese influence may not be in Iraq's interest, despite the country's need for investments in restoring the infrastructure of various sectors of the economy.
The "Financial Times" says that Western companies are reluctant to work in Iraq as a result of the instability of the political and security situation and the worrying Iranian influence in the country.
This is what China is currently trying to exploit.
It may not appear that Iraq has "become an economic colony of China," says Kirk Sowell, the author of "Inside Iraq's Politics".
But he adds: "The source of concern among critics of Chinese influence in Iraq is the amount of Iraqi oil that has already been mortgaged to pay for Chinese investments in the country, a question that no one knows the answer to."
It is noteworthy that among the contracts that China recently concluded with Iraq, in addition to building a heavy oil power station in Karbala, the Iraqi government concluded with the Power Construction Corporation and Sinotech to build about 1,000 schools, the cost of which Iraq pays in the form of oil products to China. .
This is in addition to rebuilding Nasiriyah airport and developing the Iraqi Mansouriya gas field on its border with Iran. https://www.independentarabia.com/node/300776/
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