KTFA Members "News and Views" Wednesday 10-20-2021

KTFA:

19 Iraqi banks get a rating from international agencies

20th October, 2021

The Central Bank of Iraq announced, on Wednesday, that 19 private Iraqi banks obtained a classification from international agencies

The bank said in a statement received by "Al-Iqtisad News", that in the framework of the efforts made by the Central Bank of Iraq to develop the Iraqi banking sector and keep it in line with international standards, 19 licensed banks in Iraq obtained a classification from accredited international rating agencies: (Capital Intelligence - Fitch - Moody's Standard & Poors)

He added, "These banks will receive several banking facilities, which reflects the development of the performance of the banking sector in Iraq and the solvency of banks and is evidence of their compliance with local and international standards

It is worth mentioning that the Central Bank seeks to increase the ability of Iraqi banks to expand their network of relations with international banks and enhance the confidence of citizens and investors in them, especially after their success in obtaining such ratings  LINK

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Don961:  The Central Bank organizes workshops for digital transformation in the business sector

Tuesday 19 October 2021

Morning: Nafeh Al-Naji

The Central Bank of Iraq, with the participation of the Association of Private Banks, is intensifying their efforts aimed at implementing training programs for large sectors of Iraqi youth on the new specializations required in the labor market in order to qualify them to lead the transition to the digital economy. 

Economists agree that digital transformation will establish a new economy in Iraq that keeps pace with global developments, but this depends on the active participation of all institutions looking to develop and improve their services and facilitate their access to beneficiaries.

 E-Marketing

The financial affairs specialist, Shirwan Mustafa, explained that "the effective and effective use of communication networks in the field of electronic marketing works to encourage and consolidate the idea of ​​marketing local products strongly through these networks," adding, "What we are doing is part of a large program to create a training environment for young people to invest These are opportunities that fit their hopes and aspirations in the era of the information revolution.”

Academics believe that the digital transformation of the Iraqi economy requires long-term economic reforms that cover the pillars of the digital economy, such as ensuring access to an ideal, efficient and high-speed Internet service, improving the delivery of digital government services, and improving secure access to data. 

 digital transformation

Academic Saud Jayed says, “The first step in the Iraqi digital transformation should be through the provision of electronic payment services and means in full, including all Iraqis,” adding: “The Iraqi economy currently appears to be lagging behind its peers in neighboring countries, due to the absence of modern technologies that The whole world is currently pursuing it, but this does not mean that we have the necessary capabilities and resources in digital transformation, and most banks have recently expanded the method of electronic payment and providing loans after it was done according to a cumbersome mechanism for customers.”

 Work Governance

As for the lecturer at the Faculty of Administration and Economics, Dr. Muhammad Samir Dheereb, he said to (Al-Sabah) “We must have clear laws regulating the work of dealings with companies that provide us with telecommunications and Internet services before we begin to govern the banking business and turn it into a fully digital field.”

 He continued, “The world of banking is in dire need. to modern digital technologies, but this requires huge efforts and capabilities at the highest level in providing the appropriate infrastructure, as well as ensuring cyber security, lest hackers and fraudsters penetrate those digital networks and banks sites.}.

It is known that the digital economy occupies an advanced position in the priorities of decision-makers in various countries of the world, for its important role in increasing economic growth and improving competitiveness in markets by improving access to information, characteristics and requirements of markets in order to achieve comprehensive development.   LINK

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Samson: After the rise in oil, an expert reveals the possibility of reducing the dollar exchange rate with this mechanism

20th October, 2021

The economic expert, Nabil Al-Marsoumi, revealed, on Wednesday, the possibility of restoring the dollar exchange rate to its previous era, by a certain mechanism.

Al-Marsoumi told Mawazine News, "The current budgets in Iraq have inflated, and the 2021 budget differs from its predecessors," noting that "the actual spending of the country exceeds 110 trillion dinars. Therefore, in light of current prices, if the exchange rate is restored, debts of up to 120 trillion dinars will accumulate."

He added, "It is possible for the state to gradually improve the Iraqi dinar exchange rate because the shock method adopted in changing the exchange rate was not appropriate."

Al-Marsoumi stressed, “The rise was at a high rate and at an inappropriate time, at a time when poverty indicators rose due to the Corona virus, and there was an uproar and shock in the markets.”   LINK

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Tivon:  IMO: There is that word "mechanism" again. Are we not familiar with what this means? Surely they repeated this mantra enough for you to become accustomed to the eventual outcome if this mechanism were to be implemented.

I mean wasn't this the reason the Master/Visa card issuance was delayed to retirees and employees because this mechanism was not in place?

 I do not know the nature of a gradual in release or increase means as I assume out of the gate that the Dinar will come out on the Forex at 1:1 and slowly rise from that value to higher digits. Because I highly doubt that they would gradually increase the rate on global trade markets coming out the gate at only 10-20 cent as this would cause imbalances in their markets in terms of fair trade value against other currencies.

 I do not like how this economic expert is presenting this option as if they have other viable means to bring purchasing power to Iraq. They are at the bottom of the pit.

 How can you say possible and not mandatory that it is imperative that you increase your currency so you can survive that next year onwards? Is it not obvious that this has to be done immediately?

Does he not know that this is what was promised by Al-khazemi (PM) prior to October 10th elections? The new digital payment system is what is needed for the credit cards to work alongside the paper money as they withdraw them from the market.

I don't know how else to address the pending emergence of a new rate with all its variables as to how it can happen.

Are they waiting for an economic crash by way of Evergrande default on the 23rd? Which will have worldwide implications.

What major event needs to happen in order to bring about this reinstatement? WW3? Economic Crash? Food Shortages?

I mean a National Emergency would surely put the fire under Iraq if they were faced with possible conflict from Iran. I guess I am just ranting at this point but the point remains someone is causing problems in the roll out. Any guess as to who or what anyone? Or is this apart of the strategy? 

Samson:  Iraq and Iran agree to exchange convicts and return corruption money

20th October, 2021

Justice Minister Abdul Sattar Mohammad signed in Tehran with his Iranian counterpart, Amin Hossein Rahimi, today, Wednesday, a joint statement on expanding legal and judicial relations between the two countries.

The statement was prepared and signed in four paragraphs on the principle of good faith and the need to strengthen mutual relations between the two countries, according to the official IRNA news agency.

The main themes of the statement revolve around the following topics:

1- Holding continuous and periodic talks within the framework of a joint legal committee, with an emphasis on the implementation of legal and judicial agreements between the two countries.

2- The exchange of experiences in the field of human rights, anti-corruption and children’s rights, and “

3- The exchange of convicts between the two countries and the removal of obstacles in this field”.

4- Drafting an agreement to return corrupt financial assets.

It is reported that Justice Minister Abdul Sattar Muhammad arrived in Tehran two days ago at the invitation of his Iranian counterpart Amin Hossein Rahimi, and his visit will last for four days.  LINK

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Samson:  The Minister of Oil sets the price of a barrel in the budget and expects crude to reach $100

20th October, 2021

On Wednesday, Oil Minister Ihsan Abdul-Jabbar set the price of a barrel in the 2022 budget, while he expected crude to reach $100   LINK

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Samson:  Oil Minister: Fixing the oil price in next year's budget at $60

10/20/2021 13:40:17

 Oil Minister Ihsan Abdul-Jabbar announced that the price of oil in the next year's budget 2022 will be fixed at $60 per barrel instead of $50.

Abdul-Jabbar expected oil prices to reach $100 per barrel in the first and second quarters of 2022, with global stockpiles dropping to their lowest levels, Reuters reported.

On the sidelines of his recent participation in the Russian Energy Week conference in Moscow, he said that the market must be balanced during the second half of this year, explaining that the fair price of oil is $85 per barrel.  LINK

Iobey777:  I seem to recall FRANK talking (a long time ago) that the price of oil would be $100/brl  at the time of the RI! Perhaps, that may be when we see the highest rate of the dinar? It could happen that we see them start the float ( which I believe they have according to articles) and then in early 2022, we reach the height of the scale! Just my thoughts...