Iraqi News Highlights Friday Evening 5-12-23

Iraqi News Highlights Friday Evening 5-12-23

Tlm724 Administrator Bondlady’s Corner

The Central Bank Organizes A Workshop To Activate The Mechanism Of Buying And Selling Real Estate Through The Banking Sector

Money  and business  Economy News – Baghdad  The Anti-Money Laundering and Terrorist Financing Office, in cooperation with the Central Bank of Iraq, held a workshop entitled "Due Diligence Controls for Combating Money Laundering and Terrorist Financing of Real Estate Registration Departments No. 1 of 2022".

A statement by the Central Bank stated that the workshop aims to "activate the mechanism of buying and selling real estate through the banking sector at the headquarters of the Central Bank of Iraq, in which representatives of the Central Bank of Iraq departments and the Office of Combating Money Laundering and Terrorism Financing participated in it, and the official presence of government banks and officials in the Real Estate Registration Department."

And the authorized managers of private banks and officials of the departments for reporting suspicions of money laundering and terrorist financing and compliance departments in private banks.

The statement added, "The workshop sought to create cooperation between the real estate registration departments and all licensed banks for the purpose of reducing the risks of this sector, limiting money laundering and financing terrorism, applying controls and facilitating implementation procedures, as well as the mechanism for buying and selling real estate that will be approved by banks and under the supervision of the Central Bank of Iraq."

And emphasizing the importance of the role of all parties in strengthening measures to combat money laundering and terrorist financing.

The statement continued, "The workshop demonstrated the importance of implementing the action plan contained in the National Risk Assessment Report, each according to its competence, and its importance in reflecting the efforts of the Republic of Iraq during the mutual evaluation process."

Views 123  05/12/2023 - https://economy-news.net/content.php?id=34159

CBI Al-Alaq Is Discussing With The World Bank His Plan To Establish A Loan Guarantee Company

Economy News – Baghdad  On Thursday, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, received a delegation of experts from the International Finance Corporation (IFC) of the World Bank, headed by the supervisor of financial market projects in the Levant region, Marcel Rashid.

According to a statement by the Central Bank, the two parties discussed "ways to develop the relationship between the Central Bank of Iraq and the International Finance Corporation, and to develop a plan to establish a (loan guarantee company), which was proposed by the governor earlier as part of a comprehensive study he presented regarding building national strategic bases for bank lending, while the bank staff is responsible for Building the national strategy for lending in accordance with its rules.

The statement continued, "The establishment of a loan guarantee company is an important factor in stimulating lending, by reducing the rates of loan defaults that the banking sector in Iraq suffers from."

Views 472  Added 05/11/2023 - https://economy-news.net/content.php?id=34156

Report: A Decrease In The Price Of Oil In The Budget, One Dollar Will Cost Iraq 1.5 Trillion Dinars

Money  and business  A report by the British (SLI) website confirmed, on Tuesday, that the decline in the price of a barrel of oil by one dollar within the price specified within the federal budget for Iraq will cost the country a decrease of 1.5 trillion Iraqi dinars annually.

The report stated that "the budget proposal calls for a total spending of 199 trillion dinars, consisting of current expenditures amounting to 149.6 trillion dinars and investment spending amounting to 49.5 trillion dinars, as revenues are expected to reach 134.6 trillion Iraqi dinars, consisting of oil revenues amounting to 117.3 trillion Iraqi dinars on The basis for exporting 3.5 million barrels per day, at an average price of $70 per barrel, in addition to non-oil revenues amounting to 17.3 trillion Iraqi dinars.

He added, "The resulting deficit of 64.5 trillion Iraqi dinars will be funded by 23 trillion Iraqi dinars from the account of the Ministry of Finance in the Central Bank of Iraq and about 10 trillion Iraqi dinars from continuous foreign financing for investment projects, which requires new local construction and borrowing 31.5 trillion dinars."

He continued, "The new Iraqi budget differs from its predecessors in three main points. The first is that it was conducted in consultation within the State Administration Coalition in the hope that it will be passed by the House of Representatives with minimal changes.

The second is a proposal that the budget be for three years instead of one year to provide The political stability of the government during its tenure, and the third is that it contains a framework for addressing disputes between the federal authorities and the Kurdistan Regional Government regarding oil exports in a way that satisfies the ruling issued by the Federal Supreme Court for the year 2022 and provides for the Kurdistan Region of Iraq’s share of the budget.

He explained, "High oil prices in 2022, and medium-term expectations of higher oil prices provide the government with the flexibility to pursue its spending plans for 2023.

However, these dynamics will change even when assuming that oil prices will continue to rise in 2024, and this scenario will be repeated in 2025." If oil prices are the same as assumed for 2024, but more domestic borrowing means the domestic debt stock could be 70-80 percent larger by the end of 2024 than it was at the end of 2022.

He pointed out that "the sensitivity of the budget to oil prices makes every decrease of one dollar per barrel in the annual average of Iraqi oil prices translate into a decrease in revenues of 1.5 trillion Iraqi dinars (assuming proven oil exports and the current exchange rate for dollars and thus a local increase in borrowing needs.

On the other hand, A rise in oil prices would change the picture for the better, but it would not change the trajectory of domestic debt to increase oil revenues, which, over time, would lead to the exclusion of other budget expenditures and reduce flexibility for future budget planning.

Views 549  Added 05/11/2023 - https://economy-news.net/content.php?id=34153

Oil Rises In Early Asian Trading

Friday 12, May 2023 11:01 | Economical Number of readings: 254  Baghdad / NINA / - Oil markets regained some of their gains in early Asian trading, today, Friday, while concerns about a banking crisis in the United States linked to the debt ceiling limited gains.

Brent crude futures rose 36 cents, or 0.5 percent, to 75.34 dollars a barrel, and US crude futures rose 41 cents, or 0.6 percent, to 71.28 dollars.

And the two crude oil recovered from losses that ranged between three and four percent during the past two sessions.”/End2   https://ninanews.com/Website/News/Details?key=1052866

The Exchange Rates Of The Dollar On The Baghdad Stock Exchange

Economy  Friday, May 12, 2023 Baghdad / National News Center   Today, Friday, the exchange rates of the dollar against the dinar witnessed stability in the main stock exchange in the capital, Baghdad, as the selling price reached 148,000 dinars per 100 dollars, while the purchase price reached 146,000 dinars per 100 dollars.   https://nnciraq.com/204936/

The Central Bank Refers Speculators With Exchange Rate Issues To The Competent Courts

May 12, 2023    In response to citizens’ requests for the US dollar currency at the official exchange rate for legitimate purposes,

the Central Bank of Iraq succeeded in providing easy and appropriate tools represented in the facilities packages it issued,

which include support for the settlement of electronic cards at the official rate and money transfers of various types,

but some of those who were able to obtain cards They were misused far from the intended goals for this purpose,

as revealed by the reports of the competent security authorities and the supervisory procedures of the Central Bank and the Office of Combating Money Laundering and Terrorism Financing,

which called for the establishment of a “strict new electronic system” that ends this phenomenon and the violations used in those cards.

The Central Bank of Iraq revealed the completion of legal procedures against the violators, individuals, companies and banks,

announcing their referral to the courts specialized in money laundering and financing terrorism,

stressing its keenness to provide all appropriate tools to achieve the stability of the exchange rate,

especially with the arrival of external transfers through the electronic platform to high levels,

In addition to the use of electronic cards and the cash sale of dollars,

all of this made what is called the “parallel market exchange rate” not reflect the real exchange rate as long as the Central Bank of Iraq responds to all (legitimate requests) to buy dollars, and that

the price in the parallel market is linked to activity. Speculation, and non-fundamental operations trying to move away from the methods provided by the Central Bank of Iraq law and its decisions.

Central Bank of Iraq    information Office    12 - May – 2023   https://cbi.iq/news/view/2331

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