Iraq Economic News and Points to Ponder Late Friday Evening 11-24-23
Tlm724 Administrator Bondlady’s Corner
Parliamentary Finance: The Central Bank Has Come A Long Way In Its Mission To Get Rid Of The Dominance Of The Dollar
Economy | 11/24/2023 Mawazine News – Baghdad The head of the Parliamentary Finance Committee, Atwan Al-Atwani, confirmed today, Friday, that the Central Bank has come a long way in the mission of restoring market stability and getting rid of the dominance of the dollar.
Al-Atwani said in an interview followed by Mawazine News, “Diversifying the sources of foreign currency dependence in commercial transactions is the only way to address the problem of the increasing demand for the dollar.”
He added, “We stress the importance of this trend as it is an effective solution and a well-thought-out strategy to open new horizons that ensure the facilitation of commercial transaction procedures at various levels.”
He continued, “We renew our full support for the steps of the Central Bank of Iraq as it moves steadily towards developing real solutions to the crisis.” https://www.mawazin.net/Details.aspx?jimare=238471
Central Bank Governor: Washington Responds To All That Iraq Needs In Terms Of Dollars And A Meeting With It Next Month
Time: 11/24/2023 Read: 2,041 times {Economic: Al-Furat News} Central Bank Governor Ali Al-Alaq announced that the Federal Reserve and the US Treasury are responding to all requests for the dollar Iraq needs.
Al-Alaq said in a press interview that “the Iraqi Central Bank will hold a meeting with the US Treasury and the Federal Reserve early next month in Dubai,” noting that “radical steps will be taken within the framework of reorganizing trade on the right foundations,” noting that “the electronic platform will be completed early next year.” .
He noted that “the Central Bank will exit the process of conducting the executive aspects of the external transfer, and its role will be limited to supervision, and we have worked to find a new relationship between Iraqi banks and internationally accredited correspondent banks abroad.”
He continued, “We succeeded in opening more than 40 accounts for Iraqi banks with correspondent banks abroad, and we developed radical solutions to end speculation and dollar smuggling operations, and we were able to diversify currencies in transfer operations abroad.”
Al-Alaq stated that “import operations in Chinese yen and euros have been in effect for some time and import operations in UAE dirhams will begin next week,” stressing that “there are preliminary understandings with the Turkish side to make transfers through Turkish banks in the euro currency.”
He pointed out that “the US Federal Reserve provides support in creating a relationship between Iraqi banks and correspondent banks,” noting that “the operations of opening accounts for Iraqi banks are happening for the first time, and that the rejection of transfers on the electronic platform has begun to decline and there are no restrictions on Iraqi funds abroad.”
Al-Alaq went on to say, “We began supplying dollars into the country from the accounts of Iraqi banks abroad, and supplying dollars comes from what is in the accounts of Iraqi banks abroad, and the Central Bank is studying the request of the bank that is supplying the dollar and its needs before giving approval.”
He explained, “The supply of the dollar supports the reserves in the Central Bank, and there is a broad reform plan that includes the merger of private banks and correcting their conditions. The Central Bank is working with the government on a broad plan to develop government banks, which represent the largest weight in the banking sector.”
He revealed the diagnosis of some merchants who are pressuring the dollar currency in the market without following the fundamental import processes, and the government is working to eliminate the episodes that put pressure on the cash exchange rate, pointing out that “the government issued a decision prohibiting dealing in the dollar locally, while studying the exception of some cases.”
Al-Alaq concluded his speech by saying, “There will be follow-up operations in the market and commercial stores to ensure that they entered with an original external transfer, and there will be besieging operations for every category that puts pressure on the cash dollar in the market.” LINK
Al-Allaq: There Will Be Blockade Operations For Each Category That Will Put Pressure On The Cash Dollar In The Market
Economy | 11/24/2023 Baghdad – Mawazine News Today, Friday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, announced the start of importing dollars into the country through the accounts of Iraqi banks abroad, and while he indicated the end of procedures to open accounts in the UAE dirham and the understanding with Turkey to make transfers in euros or the Turkish currency, he revealed a broad plan to reform and develop private and government banks. .
Meeting with the US Treasury and the Federal Bank. Al- Alaq said in an interview with the official agency, followed by Mawazine News, that “the Central Bank of Iraq is in constant communication with the US Treasury and with the US Federal Bank,” indicating that “this communication continues permanently, and there are quarterly meetings held.” To review all matters related to this relationship.”
He added, “There is a meeting that will be held at the beginning of next month as part of the periodic quarterly meetings held between the Central Bank, the Federal Bank, and the Ministry of Treasury, where in these meetings we review all matters with emphasis and focus on the issue of regulating external transfer in a way that ensures the safety of the financial system, especially after the implementation of the new transfer system.” external environment, which requires a lot of coordination.
He stated that “these developments that have taken place are radical and not formal developments within the framework of reorganizing trade on sound foundations and organizing external transfer on sound foundations,” explaining that “the details related to this issue require coordination and joint cooperation between the Central Bank and those parties.”
He stressed that “the next meeting will be in the Emirati city of Dubai,” pointing out that “there are quarterly meetings in addition to emergency organizational meetings or communications via phone or video.”
He agreed to strengthen banks with dollars and stated that “the Federal Bank agrees with the Central Bank on the need for them to exit the process of conducting the executive aspects of external transfer and their role is limited to supervision and control, and this is normal in central banks that do not exercise these executive roles or detailed operations with regard to transfer.”
Therefore, the plan and agreement between us was for the Central Bank of Iraq and the Federal Bank to exit these procedural processes, confirming the development of a plan to shift the external transfer process from the electronic platform that will be completed at the beginning of next year.
He pointed to creating a new relationship between Iraqi banks and internationally accredited correspondent banks abroad, where the process would be limited between them, and the role of the Central Bank of Iraq and the US Federal Reserve would be the process of monitoring and supervision, and we began some time ago trying to find a relationship between correspondent banks and our Iraqi banks.
“Opening more than 40 He opened a bank account and stated: “We have greatly succeeded in this context, and we were able to open more than 40 accounts for Iraqi banks with correspondent banks or abroad,”
Diversifying Currencies
and stating that “to increase flexibility and facilitation in the external transfer process, we have diversified the currencies in which transfers are made to Abroad, and we now have transfers in addition to the dollar, euro and UAE dirham.”
Understandings For Making Transfers Through Turkish Banks
He stressed that “the procedures have been completed for opening accounts in the dirham, the Chinese yuan, and the Indian rupee,” noting that “there are preliminary understandings with the Turkish side to make transfers through Turkish banks in the euro or the Turkish currency.”
He stated that “this issue is important and is being conducted in coordination with the Federal Bank and the US Treasury, and they are helping us in this,” noting that “this is the opposite of what some understand as an escape from the pressures of the Federal Bank regarding the dollar, as these currencies are covered by the dollar and we buy them from the dollars in the bank.
” The Federal Bank, which is not far from the Federal Bank, but rather with the coordination and support of the Federal Bank, as it wants to reach with us the desired goal, which is to have a relationship between Iraqi banks and correspondent banks.”
He stated, “This is happening for the first time by opening this number of accounts for our banks, and it is a very important step to strengthen the banking system in Iraq, because accepting these banks means that they now have systems capable of being accepted internationally,” explaining that “any correspondent bank currently accepts… By opening an account with an Iraqi bank after ensuring that this bank has the necessary systems, standards, conditions and rules under which it operates.”
End Of Work On The Electronic Platform.
Al-Alaq confirmed that “this will lead to the end of work on the electronic platform in the year 2024,” explaining: “We have reached an advanced level and with the completion of the other episodes, we will leave this method.”
He stated, “In this case, operations will be faster, easier, and more disciplined, because these internationally accredited correspondent banks have complete systems for conducting audit and monitoring operations before implementing this operation.”
Treating Rejected Transfers Gradually.
Al-Alaq pointed out that “this will gradually reduce the percentage of rejected transfers,” pointing out that “rejecting transfers has reasons, but the banks and transferring people will learn the conditions and points that must be taken into account when submitting a transfer request, as there are formal issues, for example, coding.
” The numbering, and there are required documents and review for the final beneficiary, is that there are well-known companies, and the prices are reasonable, etc., and over time, the importer or the applicant gets used to adapting or providing the requirements for the transfer.”
The fact that the American side is reducing the amount of dollars, and he stated that “the Federal Reserve and the US Treasury are responding to all requests related to the process of providing and strengthening the dollar that Iraq needs by following sound rules and standards for the movement of money,” explaining that “this is in the interest of the two countries and ridding the financial system of any suspicious operations such as laundering operations.
” Money and terrorist financing, so the money abroad is Iraqi money with no restrictions on it, but there are requirements and standards, whether they are in the dollar currency or even if they are in European currencies or other currencies, and these have become among the required rules in all cases.”
He continued, “Some people believe that if this money were in another country, it would be without restrictions, but these have become international standards followed, even if it was in euros, yuan, or pounds sterling, and there will be the same business rules.”
Expanding the diversification of foreign transactions for all Iraqi banks
He stated, “Our goal is that all banks must have correspondent banks, and we emphasized this issue years ago, as a bank that does not have correspondent banks cannot carry out its real work and is cut off from the world,” explaining that “some banks are late in this regard.” There were easy methods available, so some did not bother to work seriously on this issue, but now all banks have realized that there is a necessity, so they began to intervene successively.”
He continued: “All that provides the bank is the correspondent bank’s belief that it has the system required to control the movement of funds, provide conditions, and follow international standards, and the presence of a monitoring system on the issue of money laundering and terrorist financing will enter this field,” noting that “some banks have begun seeking the assistance of specialized international companies.” To organize these aspects until they become qualified.”
Importing Various Currencies Comes Into Effect.
He pointed out that “import operations in various currencies have entered into force. For example, with the Chinese side and the euro, they were initiated some time ago, and the UAE dirham will begin next week.”
We Aim To Reduce The Demand For The Dollar.
He stated, “These measures aim to reduce the pressure on the demand for the cash dollar, as we want all importers to carry out import operations through fundamental external transfer. However, some trade in Iraq does not follow this path, but rather goes to put pressure on cash.”
The dollar is in the market, so the price imbalance occurs, that is, it is the result of the presence of groups that put pressure on the cash while there are correct and fundamental procedures for transfer available,” he said, declaring work with the government to eliminate the episodes that put pressure on the cash exchange rate, and we found a group of groups, on For example, some deal in cash dollars inside Iraq.
The government issued a decision not to deal in dollars locally. As for the second class, they are the merchants who import some materials and do not enter the platform or transfer in the proper manner. We began by analyzing these categories, such as the cigarette trade, which takes the dollar from the market at a percentage 100 percent.
As we began to analyze the materials entering Iraq, such as some mobile phones and other materials, a decision was issued stating that these materials must have proof that they entered Iraq based on a fundamental external transfer. If these goods do not carry an official fundamental transfer, this means that they are goods. “I entered illegally.”
Following Up On The Market
and stating that “there will be follow-up operations in the market, and even in the warehouses, to ensure that these materials enter based on an official transfer so as to keep them away from pressure on the cash dollar market, and we will expand this to other categories, and any category we find is making non-fundamental transfers.” Or by paying cash, we will besiege it.”
Transfers From Iraqis In Dollars
, and he pointed out that “the general principle is what was approved by the Council of Ministers that trading or payment inside Iraq is in dinars, but there are cases that are being studied at the present time, and there was a meeting in the Ministry of Planning regarding contracts in their various forms and how to make payment options, whether in dinars.” Or in dollars, as a group of proposals were put forward that we are now studying,” noting that “some types of contracts or obligations with foreign companies previously will continue to be dealt in dollars, and we are studying other cases to develop the best or most appropriate method for them.”
He pointed out that “in the past, inward transfers did not matter to the beneficiary if they were given in dinars, but now, because of the price difference, it is a temporary solution and we are working to solve the problem radically.”
The mechanism for importing dollars by private banks. Al- Alaq announced the start of supplying dollars into the country from the accounts of Iraqi banks abroad, explaining that “the supply of dollars from abroad comes from what is in the accounts of Iraqi banks abroad. For example, we have an account in a bank, so we can withdraw it in cash or a check, and it is transferred.” In cash, and it has benefits, including that the amounts come into the country instead of abroad.”
He explained that the instructions of the Central Bank will not allow the bank to keep a large amount of foreign currency abroad, as there are certain percentages, in addition to preventing misuse of this currency coming into the country, and we put Rules for its uses.
He warned that “the Central Bank is studying the request of the bank that supplies the dollar and its needs before giving approval and verifying the source of the amount and even the transporting company, in addition to verifying the uses of this amount.”
He pointed out that “because of the price difference, there was pressure on banks to withdraw their balances or transfers received from the dollar, which led to some banks becoming scarce in the currency,” explaining that “foreign currency can be available in more than one way, not only through the central bank.” We seek to deepen this practice.”
He stated: “As long as our Iraqi banks have balances abroad in foreign currencies, it is better for us to enter them, and this supports the reserves in the central bank, that is, instead of the bank using its foreign currency reserves, the currency will be available from the banks’ accounts, and this is an important point.”
A Study To Restructure Banks In Iraq.
Al-Alaq confirmed that “there is a broad reform plan for private banks with mergers and correction operations in some of their situations, and there is a broad plan for government banks, some of whose details will be announced, and we are working with Prime Minister Muhammad Shiaa al-Sudani in this regard,” pointing out that “government banks It represents the greatest weight in the banking sector, and we must put it in the best possible way.” https://www.mawazin.net/Details.aspx?jimare=238455
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Provoking Points to Ponder on Feelings – Sincerity – Slander
Sincerity is the indispensable ground of all conscientiousness and by consequence of all heartfelt religion — Kant
The shortest and surest way to live with honor in the world is to be in reality what we would appear to be ; all human virtues increase and strengthen themselves by the practice and experience of them — Socrates
Believe nothing against another , but on good authority; one report what may hurt another, unless it be a greater hurt to some other to conceal it — Penn
The worthiest people are the most injured by slander, as it is the best fruit which the birds have been peeking at — Swift
Slander is the revenge of the coward, and dissimulation his defense — Johnson
Plato, hearing that some asserted he was a very bad man. said “I shall take care so to live that nobody will believe them” — Guardian
Diogenes being asked “What is that beast, the bite of which is the most dangerous?” replied “Of wild beasts, the bite of a slanderer; and of tame beasts, that of the flatterer” — Diogenes
No one is safe from slander — The best way is to pay no attention to it – but live in innocence and let the world talk — Moliere
