Finance indicates the highest reserves of hard currency recorded by Iraq in its history
The Ministry of Finance announced today, Tuesday, that the highest foreign currency reserves in Iraq amounted to $82 billion in 2014.
The ministry said in its official statistics, which was seen by Shafak News Agency, that “the reserves of the Central Bank of Iraq witnessed their highest rise in July 2014, reaching 82 billion dollars,” noting that “these reserves later decreased to reach 44 billion dollars in 2017.”
She added, “The reserves fluctuated between 2020 and 2021 after the drop in oil prices and the rise in the dollar exchange rate in Iraq, as these reserves ranged between 45 billion and 61 billion dollars, noting that these reserves recorded 60 billion dollars in April of the year 2021.”
The Arab Electronic Payment Company and the Kurdistan International Islamic Bank sign an agreement to support the digital economy
The Arab Electronic Payment Company and the Kurdistan International Islamic Bank signed, on Tuesday, a cooperation agreement to issue electronic cards and comprehensive and advanced electronic payment services.
An official source in the company said, in a statement received by “Al-Iqtisad News”, that “the agreement signed by the managing director of the Arab Electronic Payment Company Haider Al-Obeidi and the managing director of the Kurdistan International Islamic Bank Dr. Khawla Talib Al-Asadi comes with the aim of achieving integration in performance that advances the reality of comprehensive electronic services to deliver them.” To the beneficiary in the shortest way, from citizens and companies.
The source pointed out that “this comes in harmony with the aspirations and goals of the Central Bank of Iraq by applying the principle of digital transformation in electronic monetary transactions, and serving the digital economy, which has become the country in its early stages.”
He added that: Al-Arab Electronic Payment Company has a specialized team that follows up on every update in services witnessed by electronic payment globally, and is working to adopt it locally to serve the country and to always be at the forefront.
The source pointed out that “Arabs for electronic payment has succeeded in classifying it as the best company in providing electronic services in Iraq, as it is working on building an ambitious strategy to spread electronic payment services in Iraq, with which the citizen interacts greatly link
Oil prices hit their highest level in 3 years, with a commitment to increase production
Oil prices jumped on Tuesday, reaching their highest levels in at least three years, to extend the gains made during the previous session, after the world’s major oil producers announced their commitment to their current production policy and to maintain a ceiling on crude supplies.
Brent crude rose 21 cents, or 0.26 percent, to $ 81.48 a barrel by 05:01 GMT, after rising 2.5 percent on Monday, and the price of US West Texas Intermediate crude also rose 10 cents, or 0.13%, to $ 77.70, after rising 2.3% in the session. previous.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, said on Monday they would keep a deal to increase oil production only gradually, ignoring calls from the United States and India to raise production.
Russian Deputy Prime Minister Alexander Novak said after the talks that he believed the market was now balanced.
And OPEC + agreed in July to increase production by 400,000 barrels per day every month until April 2022, at least, to gradually phase out a production cut of 5.8 million barrels per day at the present time.
Oil prices have already risen more than 50% this year, a rise that has added to the inflationary pressures that crude oil consuming nations feel will derail the recovery from the pandemic. link
Banking reform and fiscal stimulus (10/5)
Several months ago, the government issued the white paper, which is the roadmap for the desired macroeconomic reform for the coming years. The white paper, on pages 56 and 57, identified the main objectives of banking sector reform in the medium and long term, between 3-5 years. In fact, it is an accurate diagnosis of the problems that have already been diagnosed by the Central Bank and the World Bank.
It has already developed urgent and strategic solutions and mechanisms for it as is evident in the Central Bank’s strategy (2016-2020) and strategic banking projects for the years (2019-2023).
The paper focused on the basic objectives of private banking reform.
In turn, we identify proposals for a number of urgent measures and solutions for banking reform
First – take decisions on financial policy to restore balance between government banks and private banks in terms of capital, activity and tasks, and focus on starting to restructure the Rafidain and Rasheed Banks, according to what was stated in agreement with the World Bank since several years.
Second, through an analytical view of the reality of the Iraqi economy and the challenges facing the fiscal and monetary policies, in particular stimulating and revitalizing the economy with bank financing requires clarity of financial policies and coordination with monetary policy in stimulating Economy.
Third – Take immediate measures to redistribute the banking density of private banks in proportion to the actual need of the Iraqi economy and towards stopping the granting of new licenses to establish new banks and start rehabilitating troubled banks, and studying the economic feasibility of continuing to work or merging them in accordance with the merger guide issued by the Central Bank in 2019.
Fourth – that the nature of the activities of banks depends on the nature of the activities of other economic sectors, and as long as the economic activity is concentrated in trade (imports), the activity of banks remains focused on external transfer, and this means that the problem of the currency window is not in the supply of the dollar from the central bank, but rather the reason is the demand for the dollar .. Therefore, unless other sectors (industry, agriculture, tourism and others) move, we cannot expect diversification of banking activity.
Fifthly, it is necessary to provide a legal environment and extend the rule of law in order to eliminate the phenomenon of default in the payment of loans, as the non-performing debts amounted to (5 trillion dinars), 70% of which are the debts of government banks and 30% of the debts of private banks, which constitute a large percentage of the total monetary credit granted.
Sixth – Activating the implementation of the decisions of the Council of Ministers and the Economic Affairs Committee in the Council of Ministers, which were previously directed to support the banking sector, in particular private banks by opening accounts for ministries and government departments, accepting certified instruments and opening documentary credits to the government in the amount of 50 million dollars without going through the Ministry of Finance and the Iraqi Trade Bank and decisions Others pertain to borrowing for investment projects, collecting taxes and customs duties, and settling salaries.
Seventh– Considering the cases of bad debts owed by customers in private banks are urgent cases and excellent debts, similar to the debts governmental.
Eighth – Working to provide conditions and take measures to help private banks obtain the internationally approved credit rating, and then strengthen international banking relations with correspondent banks. link
Source: Dinar Recaps
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