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The central bank signs a banking arrangement document with the World Bank

As part of its strategy to develop its foreign reserves management in line with current and future developments, the Central Bank of Iraq signed a banking arrangements document with the World Bank's Reserves Management & Consulting Program ( RAMP ) Reserves Advisory & Management Program

This document aims to enable the Central Bank of Iraq to obtain technical support through the exchange of knowledge and experience in the field of investment portfolio management based on a performance indicator that helps to maximize financial resources, build human capital by exchanging knowledge and developing expertise in the financial field in accordance with best practices In the field of reserve management.

It is noteworthy that this program was developed by the World Bank in 2000, with the aim of building capacities and providing consulting and asset management services, and is considered a meeting place for a network of specialists, and it serves more than (70) members around the world, most of them are from central banks, managing nearly (2) One trillion dollars of sovereign assets.

The Central Bank of Iraq
information Office
May 13, 2020   LINK

Samson:  Corona may prompt the Iraqi parliament to hold unprecedented sessions

16:27 - 22/06/2020

MP Amjad Al-Uqabi confirmed, on Monday, that a number of members of Parliament were infected with Corona virus, but they recovered, noting that this week will witness a vote on the borrowing law.

Al-Aqabi told Al-Maaluma that "a number of members of the legislative authority have recovered from Corona after contracting the virus during the past few days." Without disclosing their names.

He added, "Next Wednesday will see a vote on the law on external and internal borrowing," noting that "the oil and gas law will be included in the upcoming sessions."  LINK

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Samson:  An economist comments on Al-Kazemi's procedures and reveals the lost amounts

22nd June 2020

Economist Kovind Sherwani confirmed on Monday that Prime Minister Mustafa Al-Kazemi's measures and financial reforms will bring more resources to the state, noting the loss of $ 500 billion in treasury money from the country since 2003

Sherwani said in a press statement that Digital Media received a copy of RT, today (June 22, 2020), that "the presence of an empty treasury in a country like Iraq is a clear indication of mismanagement and corruption of governments for 17 years

He explained, "The sum of the funds of the Iraqi budgets since the change in 2003 amounted to one trillion and two hundred billion dollars, 500 billion of which are classified as lost, according to some estimates

He added, "Two types of financial resources are physically present in Iraq, the first of which is the central bank’s financial reserves, estimated at $ 67 billion, and these were untouched, and the second is what the state treasury has

He continued, "The government of former Prime Minister Haider al-Abadi says it has handed over the previous government $ 17 billion, while Mustafa Al-Kazemi's government has given only empty treasury

And, he said, "We believe that the reforms that the Al-Kazemi government has begun to implement, including preventing double salaries, reducing expenses and allocating special grades, and these will provide large sums that the state will assist with the expected external loans to ensure that salaries continue to be paid  LINK

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Samson:  Ministry of Finance: There is no budget for the current year and 2021 will witness the formulation of an integrated economic plan

21st June, 2020

The Parliamentary Finance Committee revealed today, Sunday, that there is no budget for the current year, indicating that the government is working to provide salaries, while it will depend on increasing revenues and not relying on selling oil.

Member of the Committee, MP Haneen Al-Qaddou said that "Finance Minister Ali Abdul-Amir Allawi has informed us that there is no budget in the current year and that the government will work in accordance with the law on state administration."

He added that "the government will provide the salaries of employees during the next five months by borrowing and reducing public overheads, as well as seeking to increase revenues."

Al-Kiddu pointed out that "the Minister of Finance stressed the possibility of formulating an integrated economic plan during the budget of 2021 in order to provide salaries for employees and retirees and reduce dependence on oil in the budget." Continuous."

The Speaker of the Parliament, Muhammad al-Halbousi, had asked the government to send the semi-annual general budget to parliament for discussion and approval, warning of an economic catastrophe unless proper standards were set for disbursement.   LINK

Samson:  Syrian Minister: The exchange rate will stabilize soon

20:43 - 21/06/2020

The Syrian Minister of Internal Trade and Consumer Protection Talal Al-Barazi said, "The exchange rate of the lira will stabilize soon," and that the country is going through a phase of the decline of the dollar and an improvement in the status of the lira today.

Al-Barazi added in a meeting held today Sunday with Damascus merchants that the government knows the harmful dimensions of fluctuations in the exchange rate, and realizes that what ultimately matters to any trader is price stability.

The Damascus Chamber of Commerce page said that Al-Barazi “acknowledged that there are real problems with the issue of the exchange rate, and he wished that Damascus merchants postpone delving into this matter until a meeting with them is now being coordinated with the governor of the Central Bank of Syria, where he will answer various questions in this regard.”

On the meeting today, Chamber Chamber board member Mohammed Al-Hallaq said, in a statement to RT, that Al-Barazi promised to meet with merchants weekly to discuss the obstacles and how to overcome them, especially in light of the recent developments, including activating the American "Caesar" law and other sanctions imposed by the American administration on the country.

Al Hallaq explained that the merchants offered a number of proposals during the meeting, the most important of which was the issue of the frequency of import and the continuity of the availability of materials in the markets, adding that prices relate to several things, the most important of which is the availability of materials and competitiveness. Profitability.”

Hallaq added that what the merchants touched is that the government approach is to reduce the exchange rate first-hand "in addition to measures that will give its results." He pointed to a number of obstacles that make this task difficult, including the impact of the Lebanon crisis, in addition to what is related to measures to limit the spread of the Corona epidemic. , And the "Caesar" Law.

On the role of merchants in the unprecedented rise in prices today, Al Hallaq said that the government is fully aware that merchants sell at the lowest profitable margins possible in order to maintain a continuous pace of work, adding that there are a number of factors that determine prices, the most important of which are the cost of the product multiplied by the exchange rate in addition to customs duties and burdens. The other.

The Damascus Chamber of Commerce page stated that the meeting was held with the aim of "studying the reality of commercial markets and ensuring the flow of goods and price stability in a manner that guarantees the interest of the state, merchants and citizens", noting that the Brazilian minister focused on three main issues: helping the citizen with low incomes, and combating unknown sources (smuggled) ), And the exchange rate.    LINK

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Samson:  Oil is falling and demand fears overshadow supply tightness

22nd June, 2020

Oil prices fell on Monday as concerns about a recovery in fuel demand stalled as Coronavirus infections increased worldwide, overshadowing supply cuts from two major producers

And Brent crude hit 11 cents, or 0.3 percent, to 42.03 dollars by 0505 GMT, while the US crude recorded 39.69 dollars per barrel, losing 14 cents, or 0.4 percent. The two contracts rose nearly nine percent last week

In Canada and the United States, the number of oil and gas rigs operating fell to a record last week even as high oil prices encouraged some producers to resume drilling

The OPEC + group, which includes OPEC and its allies, including Russia, has not decided to extend production cuts of 9.7 million barrels per day for the fourth month in August

Iraq and Kazakhstan pledged to improve compliance with the cuts during an OPEC + committee meeting on Thursday

Oil prices were supported by a recovery in global fuel demand, as countries around the world resumed economic activity. 

Oil had fallen sharply in April and May during the interruption of activities due to the Corona virus but the World Health Organization announced a record jump in injuries worldwide, adding that the largest increase was recorded in North and South America    LINK

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Samson:  A high-ranking Iraqi military delegation explores the Turkish bombing areas in the Kurdistan Region

22nd June, 2020

An Iraqi military delegation visited, on Monday morning, the border region between the Kurdistan Region and Turkey, on the sidelines of a military operation launched by Ankara

A local official in Dohuk told Shafaq News, that the delegation is headed by Lieutenant General Hamed Abdullah, commander of the Iraqi border guards, and is inspecting border areas that have witnessed an aerial bombardment and Turkish artillery for several days, specifically the villages of Dasht Takht, Sir Zir, and other border areas and villages)

He added that the visit was carried out in advance with the Kurdistan Region, to assess the field situation in the border areas and to know the size and distance of the Turkish incursion into Iraqi territory

The Turkish planes bombed the border village in Zakho district of Dohuk governorate, causing panic among its residents without any casualties.

Turkish aircraft and artillery have been heavily bombing border areas in the Kurdistan Region since last week, in attacks it says are targeting anti-Ankara PKK fighters. Turkish forces also carried out airdrops of commando forces in areas within the region.

The attacks resulted in human and material losses in the border villages inside the Kurdistan Region, which sparked the condemnation of the Kurdistan Regional Government.  LINK

Samson:  The Arab Parliament rejects and condemns the attack on the sovereignty of Iraq

20:37 - 21/06/2020

On Sunday, the Arab Parliament rejected and condemned the violation and aggression against Iraqi sovereignty.

The Media Office of the President of the Parliament, in a statement received / information /, stated that “Speaker of Parliament Muhammad Al-Halbousi received a phone call from Arab Parliament Speaker Meshaal bin Fahim Al-Salami, where during the call the President of the Arab Parliament expressed the position of the president and members of the Arab Parliament rejecting and condemning the attacks on the rule of Iraq, which is inconsistent with international laws and norms, and threatens regional security and stability.”

Al-Salami indicated that the Arab Parliament expresses its full support for Iraq, stressing the preservation of Iraq’s sovereignty and its full support for its people.  LINK

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Samson:  Economist: Iraq has several options to punish Turkey for its attacks

09:08 - 22/06/2020

Economist Ihssan Al-Kinani stressed that Iraq has several options to punish Turkey for its repeated targeting of the country's lands in the Kurdistan region, pointing out that closing the border crossing points with Turkey is the best punishment for it.

Kanani said in a statement to the "information", that "Iraq has border crossings with Turkey through which various goods enter and engage in various commercial activities, and despite the use of Iraq from them, Turkey is the first beneficiary of that."

He added that "Iraq has the option to close the border crossings with Turkey and punish it for its repeated attacks on Iraqi territory, as it will lose many commercial activities, especially that Iraq is one of the first importers of its goods."

He said, “Turkey receives a lot of goods through Iraq is coming from various countries of the world, especially Asia, where it is possible to download Ankara large financial losses in the event that goods are not allowed to reach through Iraq.   LINK

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Samson:  A banking expert recommends switching to a digital economy

22nd June, 2020

Member of the Board of Directors of the Federation of Arab Banks and Chairman of the Board of the International Development Bank, Ziad Khalaf, when participating in the virtual financial conference organized by Frontier Exchange Company, presented a detailed analysis of the reality of the Iraqi economy and ways to advance the reality of the Iraqi economy and bring it to safety.

Khalaf said during the conference, which witnessed wide international participation via an electronic circuit: “The world and our Arab region live in an exceptional situation in light of the spread of the Corona virus and its wide effects on most economic sectors, according to the reports of the World Bank and the International Monetary Fund, which is expected to shrink The world economy increased by 5.2%, and the Iraqi economy increased by 4.7% during the year 2020.

It is expected that this deflation will represent the most severe recession since the Second World War, and one of the main reasons for this deflation is the decrease in oil prices by about 50% to reach the lowest level in 20 years as a result of the decline in oil production and restrictions on travel and the movement of individuals due to stone and closure, in addition to the decline in interest rates to zero levels And negative in some global central banks, as well as the decline of the main stock indexes to more than 35%, and its impact on the performance of global financial markets.

Decline in oil exports

He added, "On the level of Arab economies, the implications can be summed up in the impact of the exports of Arab countries by the decline in global demand by at least 50 percent, which is responsible for generating about 48 percent of the gross domestic product, as well as the decline in oil and non-oil exports, in particular it will be affected Arab economies are slowing demand by a number of their trading partners, as the countries affected by the Corona virus are currently considered one of the most important trading partners of the Arab countries as they absorb 65% of Arab exports.

Most of the world experts

A representative of the company, "Forintir Exchange" Ahmed Al-Jadir explained that "Iraq is an important economic center and this is something that all global economies realize, as most of the world experts assert that Iraq can be a tiger economy eighth in the world and this is not a complicated or inaccessible matter in light of the availability Natural and human resources.

Economic sectors

Khalaf went back to clarify, "The Arab countries were affected by a partial halt to local production in a number of economic sectors, the most important of which are the productive services sectors, especially the tourism, transport and internal and external sectors. These sectors collectively are responsible for generating about 40 percent of the GDP, and certainly the Arab oil exporting countries were affected. From the decline in foreign exchange receipts in light of a possible decline in export levels as a result of the spread of the virus, and the decline in remittances of workers abroad that contribute to rates exceeding 10 percent of the GDP in some of these countries. To 40 million citizens, in addition to the impact of this small and medium-sized pandemic, and therefore things combined will necessarily lead to an increase and deepening the budget deficit for most Arab countries.

Digital economy

He emphasized that "the role of the private and public banking sector comes to coordinate with the national units of partnership between the public and private sectors so that our first goal is to proactively provide support to the Iraqi economy through three main axes represented in the transition to the digital economy with Iraqi leadership in light of the Iraqi government's tendency to play a leadership role in Creating regional economic integration, which will lead to a reduction in the commercial cost and the creation of new jobs by 2% and an increase in the volume of commodity trade. This can only be achieved through the establishment of strong infrastructure that includes 4 main networks: electronic trading companies, banking and financing institutions, Insurance companies and technology companies. These four pillars collectively form the basis of the true digital economy.”

And he added, "This is what we have worked on in our group since its founding to develop a strategy through the adoption and operation of the latest advanced practical technologies from systems, devices, means of communication and protection, and at the same degree employing the latest systems related to laws and compliance laws and institutional governance, in the forefront of which the International Development Bank adopted the latest practical applications And global in this area, which supports his ambitions and strategic goals in leadership.

Crisis Management

And that Iraq possesses the ability to play a pivotal role in leading an economic renaissance through its adoption and sponsorship of the transition to the digital economy, which leads to congruence and economic integration, and to work on real partnerships between the public and private sectors aimed at managing crises and recovering from their effects to support projects, especially faltering and To prevent their stumbling, pointing to the necessity of supporting the health sector and its development and supporting the pharmaceutical industry, the truth is that Covid 19 revealed the major gaps in the health system not only at the level of Iraq but also at the level of the whole world and the negative impact of that on the economy and public health.

The medical section

He emphasized that “within the IDB’s strategic plan to sponsor investment projects in various sectors, the most important of which is the health sector through the Memorandum of Understanding signed between the International Development Bank and the International Finance Corporation IFC, one of the World Bank’s arms for the purposes of financing foreign trade operations and providing banking products and solutions to Iraqi companies in the face of Challenges and changing conditions in our Iraqi economy, and it is worth noting that in April 2020, the World Bank’s Board of Executive Directors approved the launch of a first set of emergency support operations for developing countries around the world, using the assistance of facilitating rapid and ad hoc funding to tackle a virus Corona Novelty. ”

The strongest pillars

Khalaf focused on "the importance of the transition to industrial and agricultural economics in order to be an effective penalty in the economy. The industry is one of the most powerful pillars of the Iraqi economy to get it out of a rentier economy to a productive economy, as it is the cornerstone that can be built on to launch a vital economy with positive effects that have a fundamental impact on other sectors, so that they are a factor of attracting and attracting funds and securing job opportunities and moving the growth wheel, and this is what has been done Work on it by the International Development Bank through its effective contribution to the initiative of the Central Bank of Iraq in financing small and medium projects.  LINK