KTFA:

Clare:  Planning and the World Bank are discussing three important files, including financial reform

Deputy Prime Minister - Minister of Planning, Muhammad Ali Tamim, discussed today, Sunday, with the World Bank Vice President for the Middle East and North Africa, Farid Belhaj, 3 important files, including financial reform.

 A statement from his office, which {Euphrates News} received a copy of, stated that: "During the meeting, which was attended by John Kristoff, the Regional Director for the Levant Countries, Paul Numba, Richard Abdel Nour, the Special Representative of the World Bank Mission in Iraq and the Director General of International Cooperation in the Ministry, Saher Abdel Kazim, and a number of officials took place. Exchanging views on a number of issues related to the role of the World Bank in supporting development efforts in Iraq.

He added, "especially with regard to the work of the Recovery Fund, the Social Fund for Development, and carrying out financial reform."

Belhaj expressed "the World Bank's readiness to continue serious and fruitful cooperation with the Iraqi government in everything related to financing development projects."   LINK

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Clare:  The World Bank is "optimistic" about the future of Iraq because of its "rich" resources and looks forward to developing its economy

2022-12-11

A delegation from the World Bank expressed, on Sunday, its optimism about the future of Iraq due to the presence of rich human and natural resources, stressing its aspiration to develop the country's economy.

A statement by the Iraqi Presidency, received by Shafaq News agency, stated that "President Abdul Latif Jamal Rashid received, at the Baghdad Palace, the World Bank delegation,

He said that Iraq is one of the active countries in the international community and one of the founders of the United Nations, the World Bank and the League of Arab States, stressing the need to strengthen and expand relations with the World Bank.

He added, "It is important for the international community to know that Iraq, since the defeat of ISIS, has become more politically, security and economically stable, in order to encourage investments and capital to work in the country."

The President of the Republic noted that "the Iraqi government is serious about developing plans, programs and laws that are directly related to the needs of citizens through the advancement of the economy, infrastructure projects and support for the private sector."

The Iraqi president stated that "the most important challenges facing the country is the climate change crisis that threatens the world as a whole, as well as the water problem with neighboring countries, stressing the presence of joint delegations exchanging dialogues to reach successful solutions for a more equitable distribution of water shares commensurate with the increase in the population."

He continued, "What exacerbates the water crisis is waste and the absence of the required organization, pointing out that the relevant Iraqi government agencies have plans developed by specialists that need work and implementation more than the need for conferences and meetings."

During the meeting, aspects of the existing cooperation between Iraq and the World Bank were reviewed in the financial and economic sectors, and the need for the banking system in Iraq to develop in a way that is more rapid, accurate, safe and transparent was emphasized, in addition to emphasizing the importance of diversifying sources of national income and not relying solely on oil through Strengthening the agricultural and industrial sector.

For its part, the World Bank delegation affirmed its optimism about the future of Iraq due to its rich human and natural resources, expressing the World Bank's aspiration to enhance cooperation with Iraq in order to develop its economy.   LINK

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Clare: In numbers, Parliamentary Finance reveals the features of the 2023 budget and expects its approval date

12/11/2022

The Parliamentary Finance Committee expected the approval of the draft financial budget law for the year 2023 at the beginning of next year.

Committee member Mueen Al-Kadhimi said in a press statement this evening: "The government will present a draft budget law for 2023 in the resumption of parliament sessions next month."

He added, "The budget will reach 130-140 trillion dinars, and its discussion will take two months in the House of Representatives because there are opinions of committees and political blocs, and we hope that it will be approved at the end of February or early March, so that ministries and institutions can launch their service projects."

Al-Kadhimi stressed, "the need to benefit from the surplus of 2022 and the reconstruction fund, which was formed by an Iraqi-Chinese agreement, and it currently contains 3 billion dinars, which would support investment projects."

He noted that "1/12 will be spent until the budget is approved," ruling out that "
He stressed that "the government is very keen to provide citizens with 12 ration rations in 2023," noting that 70% of the budget goes to operating expenses and 30% to investment. The price of oil is conservative with the decline in crude prices, and 65 dollars may be appropriate.”

For his part, Jamal Koujar, a member of the Finance Committee, told Al-Furat News: “We heard that the price of a barrel of oil was approved between 65 to 75 dollars in the 2023 budget, but the exact number is not

It is clear so far.” In the sense that it was for some reason and will rise? Or is it real in the sense that prices will remain at this level?”    LINK

Clare: Parliamentary Finance announces the completion of the touches of the budget and its transfer to the Sudanese office

11/12/2022

The Parliamentary Finance Committee announced, today, Sunday, the completion of the final touches of the budget and its transfer to the Prime Minister's Office, and while it recommended benefiting from the 2022 surplus, it indicated the trend to increase the amounts for the development of the regions.

Committee member Mueen Al-Kadhimi said in a televised interview, followed by Mawazine News, that "the competence of the Ministry of Planning in the 2023 budget is the financial and investment side, while the Ministry of Finance is responsible for operational estimates," noting that "the final touches of the budget have been completed in the two ministries and have been transferred to the head office." Ministers to discuss it and transfer it to the Council of Ministers later.

He added, "The budget will make some amendments to it," noting that "the legislative recess of Parliament does not affect it, and there will be room to complete it."

He emphasized that "the budget will be handed over to the House of Representatives early next year, and its total amounts will range from 130-140 trillion dinars," pointing out that "discussing the budget will take from one to two months in Parliament."

And he stressed the need to "take advantage of the surplus in 2022 in addition to the reconstruction fund, which was formed as a result of the Iraqi-Chinese consensus several years ago," expressing his hope that "the budget will be resolved and approved early."
And that "the operational budget includes the salaries of 4 million employees and social protection, which amounts to 5-6 trillion dinars," explaining that "70 percent of the budget will be operational and 30 percent investment."

He stressed "the importance of benefiting from other aspects, including the Reconstruction Fund funded by the sale of Iraqi oil to China, in which there are currently 3 billion dollars," noting that "

He stated that "this fund would support the investment projects called for by the Prime Minister in the government program," noting that "the price of a barrel of oil in the budget is $75 unrealistic due to the possibility of a drop in oil prices in 2023, so the price of a barrel must be realistic in agreement with the Ministry of Defense." oil.”

Regarding the development of the regions, Al-Kazemi explained that "the budget includes an item for the development of the regions, which is expected to be 5 trillion dinars distributed among 15 governorates according to the population percentage," explaining that "the committee will work to increase the amount of development of the regions if there is room in the budget with the aim of including the provinces with more projects."   LINK

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Clare:  The Central Bank launches an electronic platform for buying and selling the dollar next month

 12/11/2022

 An economist revealed the readiness of the Central Bank of Iraq to launch an electronic platform for buying and selling the dollar.

Ahmed Abd Rabbo said to the program "Unannounced" broadcast by Al-Furat TV channel this evening: "The Central Bank will launch in December next an electronic platform for those who buy and sell dollars."

He added that the bank "directed banks to be more scrutiny of dollar customers, which led to a rise in the currency, but it was slight and took more than its range," expecting that "the central bank will control the price of the dollar in the next two weeks."

Abed Rabbo pointed out that "the central bank has cash reserves that exceed 90 billion dollars, and the Iraqi economy is better than many countries," he said. 

And between "there was a rush to sell the dollar, which led to a drop in the exchange rate a month ago, and what happened today is that the central bank withheld dealing with a number of banks because of the instructions of the US Federal Bank, which stopped dealing with them due to money laundering, which created a gap in the local market between supply and demand for the dollar." .

Abed Rabbo noted that "the fears of citizens and traders prompted more demand for the currency market, and we must send messages of reassurance," stressing that "the central bank is in control of the situation."

He continued, "The central bank is working in a difficult economic situation and cannot stop selling the currency in a country that imports everything, and the government is supposed to know the identity of importers who have large bills."

And he stressed, "The central bank's measures to control the market contributed to raising the price of the dollar and the Iraqi economy is proceeding in a way that warns of the next in the event of a drop in oil prices," noting that "the lack of sales of the central bank affected the imbalance and high prices of the local market."

He stressed that "the US federal monitors the dollar in all countries of the world and the Iraqi Central Bank has no ability to do so, and today there are indications of the recovery of the Iraqi economy."
LINK

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Clare:  An economist expects the dollar to decline within two weeks and warns of rising commodities

12/11/2022

The economist, Safwan Qusay, predicted a decline in dollar prices during the next two weeks, while he warned of a rise in commodities. 

Qusay said; For the program {Unannounced} broadcast by Al-Furat TV channel this evening: “The rise in the exchange rate of the dollar due to the four withdrawn banks, as well as for the purpose of checking the documents that were submitted to the window and verifying the Iraqi gender, in addition to the procedures for money transfers that entered the auditing and then transferring processes according to the new system.”

He added, "The central bank's sales decreased by 90 million dollars per day, and there are rejected transfers due to the inability of some banks to enter the currency auction after the new conditions," expecting "the return of the dollar price to its previous state during the next two weeks."

Qusai pointed out, "The transformation process will not be completely returned to whoever owns the dinar to enter the window, because some of the merchants are not organized. There may be drug dealers or money laundering, and these cannot, with the conditions of the central bank, enter into the currency increase."

He continued, "What tells us, as consumers, is that commodity prices will rise, and currently market prices have risen to 51%, but the central bank has sufficient reserves to meet the market's need." 

Qusai called on the central bank to "track the movement of the dinar outside the banking system, as there is a cash block outside this system, we do not know where it comes from, and the US treasury has observations on the financial system in Iraq, just as the goods that enter the country do not equal the money that goes abroad."

And Balfoul added, "The central bank sells $20 million per day for tourism and treatment purposes, and the money laundering follow-up department in the central bank is demanding that it have offices in the real estate and gold market to know the legitimacy of returns."

Qusai explained, "More than 80% of the banking sector is funded by government banks such as Al-Rafidian and Al-Rasheed, and in practice they are within the misleading law, but tracking the movement of money contributes to controlling the hard currency."

And he continued, "In practice, there is a kind of reducing the burden on Iraq through diversifying currency sources, and there is a basket of global operations, and the Chinese yuan is one of them."

However, Qusay said, "When the port of Faw is completed, there will be a transfer of goods, and the demand for the Iraqi dinar will increase.

 The problem now is the strength of the Iraqi dinar is tied to oil only, and we have to support monetary policy. As for restoring confidence in the Iraqi dinar, it takes time, especially after the theft of the century." LINK