Wednesday Morning Iraq Economic News Highlights 3-29-23
Wednesday Morning Iraq Economic News Highlights 3-29-23
The Iraqi Central Bank Wants To Issue A Denomination Of 20,000 Dinars: We Will Issue A Decision To Print It Or Not
Today, Wednesday, the Central Bank expected a decrease in the difference between the official and parallel exchange rates during the coming period, and while it indicated the imminent issuance of a decision regarding printing a denomination of 20,000 dinars, it clarified its procedures for monitoring commercial banks.
The assistant general manager of the bank’s investment department, Muhammad Mounir, said, according to the official media, that “the packages and procedures of the Central Bank of Iraq contributed to limiting the continuous rise in the dollar exchange rate,” expecting “a decrease in the difference between the official and parallel exchange rates in the coming period through packages: The first, second and third of the Central Bank, as well as the government's continued support.
Mounir continued, "The Central Bank is in continuous updating of all procedures, and every step that is launched is reviewed and the extent of its response and impact on the market is measured, and what are its pros and cons, if any."
Regarding printing new cash categories, Mounir indicated that “the Central Bank is amending and updating currency papers in response to market requests and developments and limiting counterfeiting,” noting that “the Department of Issuance and Treasurys is working to study the possibility of printing a cash category of 20,000 dinars, and in the coming days a decision will be taken. The decision to print or not to print.
Regarding the central bank building, he emphasized that “work is in full swing and 24 hours to complete it.”
On the other hand, he pointed out, “The Banking and Credit Control Department monitors commercial banks, and there are field and office inspection teams that are responsible for monitoring the work and performance of banks.”
And he stressed, “The doors and phones of the Central Bank are open to any complaint submitted by the citizen to the banks or one of the financial institutions or merchants, and the complaint is met and urgent action is taken in its regard.” https://takadum-news.com/archives/156759
Declining Central Bank Of Iraq Sales Of Dollars
Shafaq News/ The Central Bank's sales of dollars decreased in the currency auction today, Wednesday, to reach 205 million dollars.
Shafaq News agency reporter stated that the Central Bank sold today, during its auction for buying and selling US dollars, 205 million and 333 thousand and 39 dollars, compared to yesterday, Tuesday, in which sales amounted to 230 million, 3 thousand and 162 dollars, which the bank covered at a basic exchange rate of 1305 dinars per dollar. Dollars for documentary credits and international settlements of electronic cards, at a price of 1310 dinars per dollar for foreign transfers, and the price per dollar is in cash.
Our correspondent added that most of the dollar sales went to reinforce the balances abroad in the form of (remittances, credits) at 156 million 333 thousand 39 dollars, while the rest of 49 million dollars went in the form of cash sales.
Our correspondent indicated that the number of banks that bought the cash dollar amounted to 12, while the number of banks that responded to requests for strengthening balances abroad reached 18, while the total number of exchange and mediation companies participating in the auction was 167 companies. LINK
New Talk From The Central Bank Regarding The Exchange Rate And The Possibility Of Printing A Denomination Of 20 Thousand Dinars
Economy News – Baghdad On Wednesday, the Central Bank expected a decrease in the difference between the official and parallel exchange rates during the coming period, while it indicated that a decision would soon be issued regarding the possibility of printing a denomination of 20,000 dinars.
The assistant general manager of the investment department in the bank, Muhammad Mounir, said, "The packages and procedures of the Central Bank of Iraq contributed to limiting the continuous rise in the exchange rate of the dollar," expecting "a decrease in the difference between the official and parallel exchange rates in the coming period through the first, second and third packages of the Central Bank." In addition to the government's continued support.
Mounir added, "The Central Bank is in continuous updating of all procedures, and every step that is launched is reviewed and the extent of its response and impact on the market is measured and what are its pros and cons, if any," according to the official news agency.
Regarding printing new cash denominations, Mounir stated that "the Central Bank is amending and updating currency notes in response to market requests and developments and limiting counterfeiting," noting that "the Department of Issuance and Treasurys is working to study the possibility of printing a cash denomination of 20,000 dinars, and in the coming days it will take the decision to print it or not printed.” https://economy-news.net/content.php?id=33189
The Central Bank Records The Highest Cash Reserve In Its History
Economical 2023/03/29 The Central Bank of Iraq recorded a financial reserve, the largest in the country's history, according to what the government's financial advisor said on Tuesday.
Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, said in a press statement: The central bank's reserves are currently the largest in Iraq's history, after reaching $115 billion.
And Saleh considered that "the Iraqi economy is strong and faces crises easily, and the situation is heading towards improvement," noting that "Iraq is moving towards gradually improving the digital payments climate and compliance with the world."
He stressed that "the packages launched by the Central Bank are smart and give reassurance to the Iraqi citizen," explaining that "we have entered the stage of digital payments correctly in Iraq."
On January 19, the Iraqi Central Bank announced a significant growth in its foreign currency reserves in the past year.
The Deputy Governor of the Central Bank of Iraq, Ammar Hamad, said, on January 23, that "the central bank's reserves amounted to more than $99 billion.
The Iraqi Council of Ministers had approved the adoption of the Central Bank of Iraq's decision to raise the value of the dinar against the dollar to 1300 dinars instead of 1470 dinars, in a step aimed at enhancing the value of the local currency.
The rise in oil prices over the past year, which in some months reached more than $100, contributed to the rise in Iraqi financial revenues, which was positively reflected in the rise in Iraq's hard currency reserves. https://alsabaah.iq/74212-.html
The Iraqi Central Bank’s Sales Of Dollars Reach More Than 200 Million
Economy |Today, 10:58 Baghdad today – Baghdad The Central Bank of Iraq's sales of foreign currency decreased today, Wednesday, to record 205 million dollars.
And the currency sale window stated in a table it received (Baghdad Today) that "the total amounts of transfers abroad (remittances, credits) amounted to 156,333,039."
While "the total amounts of cash sales amounted to 49,000,000, and the total sales amounted to 205,333,039." LINK
Central Bank: Our Measures Contributed To The Stability Of The Exchange Rate
Posted On2023-03-29 By Sotaliraq Yesterday, Tuesday, the governor of the Central Bank, Ali Al-Alaq, spoke about the stability of the exchange rates of the dollar, stressing that the reserve depends on oil revenues.
Al-Alaq said in a statement to the official news agency, “The central bank’s procedures are continuing, and the packages that it launched are serious and have contributed to the stability of the dollar exchange rate, and we are still continuing our procedures.”
Al-Alaq added, “The central bank’s reserves depend on oil revenues through the sale of oil, as it is the source of foreign currency reserves that come from Iraq’s oil exports and is the main factor in determining the reserves,” noting that “the central bank’s reserves are within international standards.”
It is noteworthy that the Central Bank launched a set of packages in order to advance the banking sector and stabilize the exchange rate of the dollar.
For his part, the financial advisor in the Council of Ministers, Mazhar Muhammad Salih, stated that “the Iraqi financial sector is living in a transitional circumstance that includes several goals, including reducing the value of the dollar against the dinar from 1450 dinars per dollar to 1300 dinars per dollar.”
Saleh denied, in an interview with the official news agency, "the existence of transient or ambiguous external transfers or intersection with international compliance at the present time."
He pointed out, "There is freedom in the transfer of trade and capital, such as buying a property outside the country, provided that it passes through the correct banking digital tools and through international compliance."
Saleh pointed out, "This procedure generated two prices for the dollar: the first is official, and the other is parallel, but the difference between the two prices began to shrink over time."
He stressed, "The economic situation is gradually improving as long as there is freedom in transfers that must be subject to compliance," noting that "during the next few weeks or months, the official exchange rate will match with the parallel."
Saleh stated, "The banks have begun to comply properly, and have begun to make the correct transfers."
And he noted, "The number of external transfers from the Central Bank's window reached a normal rate, which is 200 million dollars per day."
Salih reassured the Iraqis that "Iraq's reserves are sufficient and freedom of transfer is available through legal frameworks and compliance."
He stated, "Imports are made at an exchange rate of 1,300 dinars to the dollar, and this gives strength to the Iraqi dinar."
And he stressed, "The central bank reserves today are around $115 billion, which is the largest reserve in the country's history."
And between Saleh, "The Iraqi economy is strong and easily faces crises, and the situation is heading towards improvement."
He explained, "Iraq is moving towards gradually improving the digital payments climate and complying with the world."
And Saleh went on, that "the packages launched by the Central Bank are smart and give reassurance to the Iraqi citizen, and we have entered the stage of digital payments correctly in Iraq."
It is noteworthy that the parallel market is still recording high numbers in the exchange rate of the dollar, which are higher than what is officially announced by the Central Bank. LINK
The Maximum Limit Is 150 Million.. An Iraqi Company Determines Deposit Compensation Rates
Money and business Economy News – Baghdad The Iraqi Deposit Insurance Company set, on Wednesday, deposit compensation rates in banks subject to the company's guarantee.
The company said in a statement, "Do not worry about your money deposited in banks that are subject to the guarantee of the Iraqi Deposit Insurance Company. With the guarantee ratios provided, you can open a bank account with complete confidence."
Regarding compensation percentages, the statement explained, “Up to 25 million, the rate is 100%, from 25 to 50 million, the rate is 30%, from 50 to 100 million, the rate is 20%, from 100 to 250 million, the rate is 10%, and from 250 to 500.” One million, the rate is 5%, from 500 to one billion, the rate is 4%.
The statement indicated that "the maximum compensation is 150 million, and the percentages are determined by the Central Bank of Iraq." https://economy-news.net/content.php?id=33187
Lawmakers: The Three-Year Budget Cuts The Path Of Corruption
The first 2023/03/29 Omar Abdul Latif Representatives believe that preparing a budget for the next three years will reduce the chances of looting and corruption from public money, while an economist warned against adopting 2023 allocations in the 2024 and 2025 budgets, explaining that these allocations may go into the pockets of manipulators and corrupt people, he said.
Representative Abbas al-Jubouri said, in an interview with "Al-Sabah", that "the three-year budget that the government sent to the House of Representatives is a financial plan for more than a year, according to what is designed by the Ministry of Finance and after the approval of the Council of Ministers," adding that "the stages of budget formation are preparation, approval and implementation." ".
The deputy pointed out that the budget "took a long period of time for a new government not more than four months ago, which is normal for a government with national expertise that walks between mines and surprises," noting that the government's supporters consider it "a national achievement that is produced for the first time in Iraq, and indicates a state of stability." This gives a reassuring impression to others.”
Al-Jubouri continued, "The government is working to gain time for the coming years and not to waste useful time in discussions that are often repetitive every year."
The deputy pointed out that the opponents of this government "see that the three-year budget is a point in Al-Sudani's political balance due to its leadership and high audacity, and it is an early election propaganda for Al-Sudani and a method for rapid implementation," adding that "the budget from the opponents' point of view gives Al-Sudani "surplus power" that enables him to Building a lot in the world of politics, money and power, and distancing the government from the House of Representatives and expelling it from the circle of partnership, monitoring and accounts, in light of the instability of the global and local market, the dollar exchange rate and oil prices, and these are all factors of concern.
The deputy explained that "the neutrals believe that the tripartite budget was adopted in many stable countries and was not a financial or political heresy, and the objection to it falls within the political framework, not the economic or financial."
Economist Haitham Al-Husseini points out, "An error in understanding Article 4 second of Financial Management Law No. 6 of 2019 for preparing a medium-term budget."
Al-Husseini added in his interview with "Al-Sabah" that "within the general framework, the purpose of preparing a medium-term budget may be to provide financial stability," adding that "what is mentioned in the budget law in Article 65 is just a reference to approving the same allocations for the year 2023 for the two years that follow." .
The expert stressed that "preparing three separate budgets with an allocation for each fiscal year according to the actual need based on the final accounts of previous years is the right procedure," explaining that "if the same previous allocations are approved, they may go into the pockets of the manipulators and the corrupt." Edited by: Ali Abdel-Khalek https://alsabaah.iq/74232-.html