Iraqi News Highlights Saturday Afternoon 6-10-23
Iraqi News Highlights Saturday Afternoon 6-10-23
Tlm724 Administrator Bondlady’s Corner
The Central Bank Of Iraq Promises A Decrease In The Dollar And Clarifies Regarding Prepaid Cards
Economy | 10/06/2023 Baghdad - Mawazine News Today, Saturday, the Central Bank revealed its plans to raise financial reserves and gold, and while specifying its procedures for installing prepaid devices, it clarified its plans for restructuring government banks.
And the Governor of the Central Bank, Ali Al-Alaq, said that “packages of instructions for financing foreign currencies abroad were launched with the launch of the electronic platform,” noting that “the aim of this package is to meet the requests of all the needs of the Iraqi economic sectors in addition to the needs of citizens for travel, treatment and study.” .
Al-Alaq added, "These packages contributed to organizing a large part of the trade process in Iraq through the entry of various sectors into the official channels of transfer, and mitigated exchange rate fluctuations that reached approximately 160,000 dinars per dollar at the beginning of the launch of the platform in the market." ,
stressing that "there is a significant improvement in the work of the trade financing platform and the cash payment platform, and that proceeding in this framework will contribute to a significant decrease in the exchange rate in the coming days."
And he continued, "There is no need to launch new urgent packages at the present time, as the operations are proceeding consistently through electronic platforms with the presence of some operational obstacles or obstacles related to international commercial operations related to financing. Each case is resolved separately, and therefore we see that the situation is going well." towards stability and there is no need to take additional measures.
Regarding setting $2,000 as a maximum limit for spending on Visa and MasterCard cards abroad, Al-Allaq explained, “The aim of setting ceilings for cash withdrawals from payment cards is to avoid misuse of these cards by weak-minded people and currency speculation, since continuing with the previous situation exposes the financial sector to a great threat.” And pushes for more currency smuggling.”
Regarding the operations of seizing cards at airports, the Governor of the Central Bank said: “We believe that this issue has ended or is nearing completion through the circulars issued by this bank, which obligated banks and payment companies to issue one card for each customer and to use the biometric fingerprint, and to set ceilings for cash withdrawals and the cooperation of the security services.” with this bank.
Regarding the insistence of some merchants on buying dollars from the parallel market, Al-Alaq said: "The insistence of some merchants on such transactions despite the facilities provided by this bank constitutes a factor of instability in the exchange rate and also exposes the owners of these transactions to legal accountability,"
stressing that "The failure of small traders to turn into companies that were allowed to enter the window and their insistence on financing through informal methods by buying currency from the secondary market puts pressure on the exchange rate towards an upward trend, and therefore we urge these merchants to establish small companies to enter the window and obtain dollars at the official rate."
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He pointed out that "the Central Bank's procedures in monitoring the decision to deal in Iraqi dinars instead of dollars by investment companies and the sale of housing units in investment complexes are carried out through coordination with the National Investment Commission and the office of the Chairman of the Supreme Committee for the Support of the Dinar and law enforcement agencies, as well as the facilities provided by these The complexes, all sides agreed to accept the Iraqi dinar.
Regarding the central bank's plans to implement the government bank restructuring program, Al-Alaq explained, "The central bank's plans to implement the restructuring program continue, but the progress of this project is slow, because of its association with other parties related to the Federal Bureau of Financial Supervision and the Ministry of Finance, or because of the weak human capabilities available to it."
Governmental banks," pointing out that "the Central Bank continues to provide support to these banks to improve the quality of data, including conducting an assessment of the quality of assets for the Rafidain and Rasheed banks, as an international auditing company was contracted for this purpose, and this bank bore the cost of contracting with this company."
And he continued: “
1- Draft supervisory work guide / risk management controls in commercial banks.
2- Draft capital adequacy controls.
3- The Scorecard Project for Environmental, Social and Corporate Governance Standards (ESC), where this bank issued the first report on the results of (ESC) on 1/23/2023, which is the first of its kind that reflects on the extent to which environmental, social and corporate governance standards are applied in the Iraqi banking sector.
4- Work is currently underway to update the disclosures and financial statements of commercial banks, in cooperation with the Middle East Technical Assistance Center (METAC).
5- A project to develop regulatory tools to deal with systemically important local banks.
Regarding the Central Bank's procedures for installing prepaid devices that were installed in a number of locations, Al-Alaq said that "based on the decision of the General Secretariat of the Council of Ministers No. 23044 of 2023, paragraph (2) thereof, this bank received a number of requests from ministries and government and private institutions, and it was completed."
Addressing it to approach companies providing electronic payment services and request offers to supply, install and operate point-of-sale (POS) devices according to the mechanism and strategy of this bank.
He pointed out that “the above entities were provided with the names of payment service providers licensed by this bank to actively (processor, collector) for the purpose of concluding the agreements required to serve the collection of funds electronically for financial dues through (POS) devices,”
noting that “electronic payment service provider companies can Licensors collect amounts due for services provided by institutions and government departments electronically, whether in connection with electronic payment gateways or directly through the deployment of point-of-sale (POS) devices.
He stressed that "the electronic bill payment project has already been launched for a number of billed departments affiliated to the ministries (construction, housing, public works, trade, electricity, interior - passports)."
With regard to the Central Bank's procedures regarding monitoring money laundering operations and recovering funds smuggled abroad, Al-Alaq stated, "Based on Article 9 (9 / First / A) of the Anti-Money Laundering and Terrorist Financing Law No. (39), the work of the Anti-Money Laundering Office And the financing of terrorism is receiving or obtaining reports or information about transactions that are suspected to include the proceeds of a predicate crime, money laundering, or terrorist financing from the reporting authorities. The use of prepaid cards by criminals.
And he went on to say: “Following the reports received, the office took the following measures:
A- The Ministry of Finance / General Authority of Customs was contacted, for the purpose of preventing the issuance of any card that does not bear the name of the card owner (prepaid cards / PREPAID / CARDS).
B- The office has issued a circular to the companies and banks that issue these cards, which includes the following:
1- The ceiling of the aforementioned card is (10,000,000) dinars (ten million Iraqi dinars), and the owner of the aforementioned card may withdraw cash up to (3,000) dollars (three thousand dollars) or what Equivalent in the currencies of other countries outside Iraq on a monthly basis.
2- Due diligence measures are taken when recharging, based on Article (10) of the Anti-Money Laundering and Terrorist Financing Law No. (39) of 2015 and the controls and instructions issued thereunder.
3- The company or the bank has the right to issue only one prepaid card to the same customer, with the necessity that these cards be issued in the customer’s name, and the customer’s name is recorded on the card.
He pointed out that "the office carries out investigations and analysis of the information received from the above authorities, on the basis of which the defaulters are identified from individuals, companies and banks, and a number of suspicious transactions have been referred to the courts specialized in combating money laundering and terrorist financing, based on Article (9 / first / c). ) of the above law, which states:
Reports that are based on reasonable grounds for suspicion of money laundering, terrorist financing, or predicate offenses shall be referred to the Presidency of the Public Prosecution Office to take legal action in their regard, and to notify the relevant authorities of that.
Regarding plans to raise financial reserves and gold in the Central Bank, Al-Alaq indicated that “the two most important factors that determine the accumulation and depletion of foreign reserves are external, as the accumulation of reserves is mainly linked to the amount of oil exports and the price of a barrel, while the depletion of reserves takes place through importing goods and services as well as transfers.”
Foreign Affairs," stressing that "under normal conditions, this bank aims to build a sustainable level of foreign reserves while ensuring high liquidity and relatively good returns."
He continued, "With regard to gold, this bank places increasing its holdings of gold on a high level of importance, and by the end of this year, this bank aims to increase its holdings by at least the equivalent of $500 million."
And about the housing loan initiative between Al-Alaq, that “the housing loans did not stop, as the circular of this bank No. 6/5/988 on 4/27/2023 in paragraph (5) of it indicated that the financing of applications submitted to the Real Estate Bank and the Housing Fund within the allocated allocation would continue.” To them, it is derived after that by reallocating 50% of the total loan installments previously granted, whose total loans financed by the Central Bank through its initiative amount to more than 10 trillion dinars.” https://www.mawazin.net/Details.aspx?jimare=228901
More Than A Billion Dollars Sales Of The Central Bank Of Iraq Last Week
Saturday 10, June 2023 | Economical Number of readings: 396 Baghdad / NINA / The Central Bank of Iraq's total sales of hard currency during the past week amounted to more than one billion dollars.
And the bank stated in a statement, “It sold during the past week for the five days in which the auction opened, one billion and 54 million, and 121 thousand, and 159 dollars, at a daily rate of 210 million, and 824 thousand, and 231 dollars, down by 17% from what was recorded last week.
The one that preceded it, which was at a daily rate of 254 million, 102 thousand, and 314 dollars.
He added, "The highest dollar sales during the past week were on Wednesday, when sales amounted to 234 million, 785 dollars, while the lowest sales were on Sunday, when sales amounted to 184 million, 60 thousand and 577 dollars."
He pointed out that "sales of foreign remittances amounted during the past week to 957 million, 831 thousand, and 159 dollars, an increase of 81% compared to cash sales, which amounted to 180 million and 90 thousand dollars."
He explained, "The sales went in the form of cash and transfers abroad to finance foreign trade, while the price of selling amounts of documentary credits and international settlements for electronic cards amounted to 1305 dinars per dollar, while the price of selling amounts of remittances abroad and the price of cash sales amounted to 1310 dinars per dollar."/
https://ninanews.com/Website/News/Details?key=1058777
Decrease In The Exchange Rate Of The Dollar On The Local Stock Exchange
Saturday 10, June 2023 10:32 | Economical Number of readings: 485 Baghdad / NINA / - Today, Saturday, the exchange rates of the US dollar against the Iraqi dinar witnessed a decline in the main stock exchange in the capital, Baghdad.
The central Al-Kifah and Al-Harithiya stock exchanges in Baghdad recorded this morning an exchange rate of 146,500 dinars for every 100 dollars.
The buying and selling prices decreased in exchange shops in the local markets in Baghdad, as the selling price reached 147,500 dinars, while the purchase price reached 145,500 dinars, for every 100 dollars./ https://ninanews.com/Website/News/Details?key=1058743
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