The US Federal Reserve adopts a new strategy towards Iraq.. The dollar is threatened with rising to unprecedented levels

Economic researcher Ziad Al-Hashemi revealed new information about the US Federal Reserve’s policy towards Iraq, expecting the dollar to rise against the dinar, which will put great pressure on the Iraqi banking system.

Al-Hashemi told Alsumaria News that “some information from within the corridors of the Central Bank of Iraq indicates that the US Federal Reserve has adopted a strategy different from its previous strategies towards the Iraqi economy,” indicating that “this strategy will be more stringent and will depend on three axes:

The first axis: The continuation of the punishment of the previous banks, and there is no lifting of the sanctions on them, meaning that the ban on those banks trading in dollars will continue indefinitely.

The second axis: closing banks that continue to violate federal controls related to money laundering, dollar smuggling, and supporting sanctioned entities and countries.

The third axis: Preventing the Iraqi government from interfering in the dollar file, and for this file to be in the hands of the Central Bank of Iraq only.

He stressed that “the last axis explains that the Federal Bank has detected political influences from the Iraqi government,” noting that “the Iraqi Central Bank is today in a very embarrassing situation and is almost in trouble due to internal pressures on it to obtain a larger space for the dollar and its circulation.”

He stressed that “the Central Bank will only be able to delay and postpone federal procedures for the longest possible period of time, while achieving temporary protection for the Iraqi banking system and the Iraqi dinar.”

He stated that “the US Federal Reserve will not be able to wait forever, and it is expected that there will be federal measures that may occur at any moment, and there will be a sudden and large demand for the dollar, which will lead to a decrease in the value of the Iraqi dinar against the dollar, which will generate great pressure on the Iraqi banking system, the Iraqi economy and the official political system.”

Burathanews.com

Iraqi Dinar / US Dollar auction results for today 7-25-2024

Results of the foreign currency selling window for Thursday 07/25/2024

Advertisement No. (5168)

The amount:

Total amounts of transfers abroad (transfers, credits)
269,484,232

Total cash withdrawals
5,250,000

Total total sales
274,734,232

Note that: The selling price of documentary credits and international settlements for electronic cards is ( 1310 ) dinars per dollar.

The selling price for transfer amounts abroad is ( 1310 ) dinars per dollar.
The cash selling price is ( 1305 ) dinars per dollar.

cbi.iq/currency_auction

“Vigilant Guardian”… Harmonious Supervisory Cooperation to Guarantee Citizens’ Deposits in Iraqi Banks

At the heart of the Iraqi financial system, the harmonious cooperation between the Banking Control Department and the Iraqi Deposit Insurance Corporation (ICDI) is evident as two fundamental pillars in the edifice of financial stability.

Despite the apparent overlap in their duties, a deeper look into the details of their roles reveals a precise functional integration that ensures the safety and strength of the country’s banking sector.
The Banking Control Department’s mission is to supervise and closely monitor banking institutions operating in Iraq. It acts as a vigilant guardian that ensures strict adherence to applicable financial and accounting standards. The department’s responsibilities extend to assessing banks’ financial performance and ensuring their compliance with relevant banking laws and regulations, particularly with regard to liquidity and solvency requirements. In times of crisis, the department intervenes decisively to contain the repercussions and provide the necessary support to maintain the stability of the banking system and prevent its collapse.

On the other hand, the Iraqi Deposit Insurance Corporation (ICDI) plays a pivotal role in protecting and ensuring the safety of public deposits. It is a safety net that protects savings from loss in the event of a bank going bankrupt. By providing guarantees on bank deposits up to a certain limit, ICDI instills confidence in depositors and encourages them to save and invest in banks instead of hoarding, which contributes to increasing the liquidity available to the national economy, thus driving growth and development.

The integration between the Banking Supervision Department and the ICDI lies in the harmonious distribution of roles and tasks that ensures the achievement of the ultimate goal, which is to preserve the banking system and enhance its stability. While the Department plays the role of the “guardian” that monitors and guides, the ICDI plays the role of the “safe haven” that protects and provides reassurance. This precise functional integration reflects the close cooperation between the two institutions, and demonstrates that their roles are not conflicting, but rather complementary and harmonious to achieve a common goal, which is to protect deposits and ensure their successful and safe use by banks.

The Iraqi experience is the best evidence of the effectiveness of this integration. Following Iraq’s accession to the International Association of Deposit Insurers, the country witnessed a significant improvement in the stability of its financial system, and a significant increase in the volume of bank deposits, indicating the growing confidence of citizens in the banking system. These positive results confirm that close cooperation between the Banking Supervision Department and the ICDI plays a crucial role in achieving the desired financial stability.

In conclusion, there is no doubt that the integration between the Banking Control Department and the Iraqi Deposit Insurance Corporation constitutes a model to be emulated for constructive cooperation between state institutions. This integration contributes to achieving the common goals of protecting depositors’ funds, enhancing financial stability, and driving sustainable economic development in Iraq.

Alforatnews.iq

Saleh: The Central Bank’s dollar reserves are solid and the GDP rate is very optimistic

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed the cohesion of foreign reserves, especially the dollar, at the Central Bank of Iraq.

Saleh told Al Furat News Agency, “Covering urgent expenses in dollars, as they represent the desired demand for foreign currency, in addition to the level of sufficiency of incoming foreign currency flows and the level of maintaining the country’s reserves of the total foreign currency held by the Central Bank, is subject to two main factors.”

He explained that the first factor is “the nature of the oil asset cycle, which is still at its highest levels of global price increases due to the strength of global demand for energy, and that economic expectations indicate that potential price fluctuations towards a decline are still out of reach and are largely linked to the end of military operations in Ukraine, and the return of the flow of Russian gas and oil, especially to European markets, as the Russian Federation is the second largest oil-producing country in the world and leads the production and export of gas to major consumer markets in the European continent directly.”

The other factor, according to Saleh, “is related to the surplus in the current account of the Iraqi balance of payments, as estimates issued by international financial institutions indicate that this percentage of the surplus in the current account of the Iraqi balance of payments to the country’s gross domestic product is no less than {positive 6%}, which is a very optimistic positive percentage.”

He explained that “both factors indicate the cohesion of the country’s foreign reserves, which are generated by high oil export revenues to date, versus control over outward cash flows of foreign currency to meet local demand for imported goods, services and foreign benefits, as the current account of the balance of payments indicates that it is in a positive and stable position and is consistent with the general budget’s spending tendencies during the current fiscal year 2024.”

Alforatnews.iq

Parliamentary Finance Committee reveals a legal violation concerning the Central Bank Governor.. What about the dollar?

The Parliamentary Finance Committee confirmed, today, Thursday, July 25, 2024, that the procedures of the Central Bank of Iraq to change the exchange rate of the dollar in the local Iraqi markets did not reap any effect and did not achieve any real actual result, revealing a legal violation concerning the Governor of the Central Bank of Iraq, Ali Al-Alaq.
The member of the Finance Committee says Mohammed Nouri In an interview with Sumaria News, he said, Central Bank of Iraq He is still continuing his wrong measures that have not reaped any effect and have not achieved any real actual result in changing the dollar exchange rate in the local Iraqi markets, which has negatively affected the Iraqi reality and inflation rates have risen significantly in the past few days.

“There is work on this issue by the Parliamentary Finance Committee, whether it is interrogations or changing the governor of the Central Bank due to the legal age, as he has exceeded the legal age, and this is a violation of the Civil Service Law,” he added, noting that “many topics will be addressed by the Council in the coming days, especially the dollar file due to the major delays, in addition to the control of foreign banks owned by owners of foreign capital, and this causes a disruption to national security and Iraqi economic security.”

For some time, the price of the dollar has decreased in the parallel market, as it has stabilized at 145 thousand dinars for every 100 dollars throughout the past period, but it has risen again to exceed 150 thousand dinars a few days ago.

Since the beginning of last year, Washington has intervened to limit the smuggling of dollars from Iraq, which led to the dollar price rising in the local market to a record level of 170,000 dinars per 100 dollars, due to the decline in the Central Bank’s sales of dollars, due to its being subject to the international financial system “SWIFT”.

It is noteworthy that the Central Bank decided to finance trade in the euro, the Chinese yuan, the Emirati dirham and the Indian rupee, in steps to reduce the demand for the dollar.

Alsumaria.tv

Central Bank of Iraq warns of million dollar bills: worthless souvenirs

The Central Bank of Iraq renewed its warning on Thursday against circulating commemorative notes of one million US dollars that are used to defraud citizens.

The bank confirmed, in a statement received by Shafak News Agency, that the security and regulatory authorities are following up on the people who promote these commemorative papers and taking appropriate legal measures against them.

The bank explained that the highest denomination of the US dollar in circulation is the $100 denomination.

He pointed out that the aforementioned commemorative note is not circulated in global currency markets, as it is issued by the American Millionaires Association and is not considered currency because it is not issued by the US Federal Reserve, but is used for gifting purposes only.

In February 2020, the Central Bank of Iraq warned against circulating the “one million” dollar note because it is a non-cash note.

Shafaq.com

Halbousi’s alternative crisis.. Doors to amending the parliament system are “closed” and an upcoming session is likely

The leader of the Azm Alliance, MP Raad Al-Dahkali, said on Thursday that “the doors are closed” in the face of those who want to amend the internal regulations of the House of Representatives regarding the nomination file for the position of a new speaker of the House of Representatives, which has been stalled since the membership of Mohammed Al-Halbousi was terminated by a judicial decision.

Al-Dahlaki added, in an interview with Shafaq News Agency, that “the political atmosphere is currently pressuring towards holding a session to elect the Speaker of the House of Representatives next week,” explaining that “the atmosphere, political pressure and real will at the present time will resolve the issue of electing the Speaker of Parliament as soon as possible.”

He continued: “The doors are closed to anyone who wants to open the internal regulations file, amend it, and re-nominate for the position of Parliament Speaker,” noting that “the candidates for the position of Parliament Speaker are present and there is no need to re-nominate again, and whoever gains the confidence of the members of the House of Representatives will be the Speaker of the House.”

Since the Federal Supreme Court (the highest judicial authority in Iraq) decided in November 2023 to terminate the membership of former Parliament Speaker Mohammed al-Halbousi, the political parties and forces have not been able to name a new Parliament Speaker due to the differences between them.

The Coordination Framework had set July 20 as the date to resolve the Sunni dispute over naming a new speaker of the Iraqi parliament, and said that after this date the matter would be left to the members of the House of Representatives to choose for themselves who they see as suitable for this position.

Shafaq.com

Iraqi banking system.. A significant increase in the number of bank accounts and the volume of deposits for citizens

The banking system in Iraq is gradually regaining citizens’ confidence with the increase in the number of bank accounts in the country.

Banking systems around the world are facing increasing challenges in light of rapid economic and financial changes. To ensure the stability of these systems and protect depositors’ funds, many countries are moving towards joining the International Association of Deposit Insurers. This membership is not just a formality, but a strategic step that carries significant benefits for member countries and their banking systems.

In Iraq, economic and political challenges over the decades have provided a strong justification for keeping money at home rather than in banks. However, the accession of the Iraqi Deposit Insurance Corporation (ICDI) to the International Association of Deposit Insurers was a decisive step in improving confidence in the banking system. Since its accession, Iraq has witnessed a significant increase in the number of bank accounts and the volume of deposits, reflecting a significant improvement in citizens’ confidence in banks. This development enhances Iraq’s ability to attract investment and support economic growth by converting savings into productive investments.

In a world characterized by increasing economic and financial interdependence, countries cannot operate in isolation from each other. Membership in international deposit insurance bodies reflects countries’ commitment to international cooperation and exchange of expertise, and confirms their relentless pursuit of financial stability and the protection of depositors’ funds. This membership is not just a formality, but a strategic investment in the future of the banking system and the national economy as a whole.

International bodies provide a unique platform for the exchange of expertise and knowledge between member states. National financial institutions can benefit from the successful experiences of other countries in the field of deposit insurance, and avoid the mistakes made by some countries. This ongoing exchange contributes to the development and modernization of deposit insurance policies and procedures in line with international best practices.

Joining the International Association of Deposit Insurers (IADI) enhances the transparency and credibility of the national banking system. A country’s commitment to strict international standards in the field of deposit insurance sends a positive message to citizens and investors, stating that their deposits with banks that are members of the deposit insurance system are in safe hands and that the banking system is subject to effective local monitoring and supervision. International bodies do not only provide a platform for the exchange of expertise, but also provide technical and advisory support to their members. National institutions can benefit from the expertise of international specialists in developing and implementing effective deposit insurance policies, assessing potential risks, and preparing for financial crises.

By adhering to international standards and implementing best practices, national institutions can reduce the risk of financial crises and enhance the stability of the banking system. This stability is not an end in itself, but rather a means to achieve broader economic and social goals, such as increasing economic growth rates and creating job opportunities. When citizens and investors trust the banking system, they are more willing to deposit their money in banks. This increased confidence leads to an increase in the volume of deposits available for investment, which supports economic activity and contributes to achieving sustainable development.

The impact of membership in international bodies is not limited to enhancing financial stability and confidence in the banking system, but extends to supporting economic development. Increasing the volume of deposits available for investment can contribute to financing development projects, providing loans to small and medium enterprises, and creating new job opportunities.

Malaysia joined the International Association of Deposit Insurers, which helped improve deposit insurance policies and increase confidence in the banking system. This accession led to an increase in the volume of bank deposits and greater financial stability, which contributed to supporting economic growth in the country.

After the Asian financial crisis in the late 1990s, South Korea joined the International Association of Deposit Insurers. International membership helped restore confidence in the banking system and stabilise the national economy, allowing South Korea to achieve a rapid economic recovery.

Alforatnews.iq

Minister of Planning announces completion of five-year development plan for 2024-2028

Minister of Planning, Mohammed Ali Tamim, announced today, Wednesday, the completion of the five-year development plan for the years 2024-2028.
The ministry stated in a statement received by Sumaria News, that “the Minister of Planning Mohammed Ali Tamim Today, the Australian Ambassador to…Iraq Glenn Myler, and the accompanying delegation, where the meeting was attended by the Director General International Cooperation Saher Abdul Kazim Discussing a number of issues and files of common interest.

During the meeting, the Minister of Planning appreciated the “support provided by Australia For efforts Iraq In various fields of development,” indicating that “the Iraqi government has set a package of priorities that it seeks to achieve within its government program.”

He pointed to “the completion of the five-year development plan for the years 2024-2028, and what it included in terms of priorities to achieve sustainable development goals, keep pace with challenges, and optimal use of natural resources, most notably rationalizing water use and combating desertification, and confronting climate change, by finding innovative solutions and treatments, in addition to moving towards building integrated, environmentally friendly residential cities, and developing solutions and programs to address unemployment by encouraging employment in the private sector.”

He continued that “the plan aims to expand in the field of renewable energy, and benefit from solar energy, in providing electricity, and reducing dependence on fossil fuels, and working to establish 4 solar energy stations in the governorates of Muthanna, Karbala and Anbar And Kirkuk

The Minister of Planning stressed the ministry’s preparations to conduct the general population and housing census on November 20, and its strategic importance in identifying development gaps and drawing a picture of the Iraqi reality in all development sectors, calling on “Australian companies to take advantage of the investment opportunities available in Iraq In various sectors.”

For his part, he praised Mylar “At the level of cooperation between the two countries, expressing his country’s readiness to enhance and develop this cooperation, in a way that serves the interests of the two friendly peoples.”

Alsumaria.tv

Rafidain announces the implementation of the comprehensive system at the bank’s outlet at Baghdad Airport

A statement by the bank received by / Al-Maalouma / agency stated that “in line with the government program to move from paper transactions to electronic transactions to provide the best services to citizens. Rafidain Bank announces the implementation of the comprehensive banking system at the bank’s outlet at Baghdad International Airport and the Ur branch in Dhi Qar, thus joining the branches that have activated the comprehensive system in Baghdad and the governorates in addition to the branches of the border outlets (Zurbatiyah – Safwan – Arar – Trebil).”

He added, “The number of effective and completed branches of the system becomes (35) branches, in an important step to strengthen the banking system and achieve its requirements and leave paper work and move completely to electronic systems.”

The bank confirmed that “the digital transformation plan and the adoption of the comprehensive banking system are proceeding according to the set timetables to include all the bank’s branches in the application of the system, especially since the priorities and adoptions of the government program include electronic transformation in financial transactions, reducing the circles of routine for citizens, shortening time, simplifying procedures, overcoming obstacles, and intensifying efforts to improve the level of services provided to customers and completing their transactions.”

Almaalomah.me