Bondlady’s Corner – Iraq Economic News and Points to Ponder Monday Afternoon 10-30-23

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Iraq Economic News and Points to Ponder Monday Afternoon 10-30-23

Tlm724 Administrator Bondlady’s Corner

Al-Awadi: The Government May Have To Sell The Dollar Directly If The Crisis Continues

 10/29/2023  888 views   The Iraqi government spokesman, Bassem Al-Awadi, revealed today, Sunday, what the government of Muhammad Shiaa Al-Sudani achieved during the first year of its life,

pointing out that the latter placed a set of political norms in the government program, while stressing that the government may be forced to sell the dollar directly if the crisis continues.. Al-Awadifi said in a televised interview,

  “The result is optimistic in the first year of the government’s life and we seek to provide the best,” noting, “Al-Sudani established a set of political norms within his government program that were based on the basics of addressing poverty, unemployment, employment, and services,” explaining that “Al-Sudani established executive oversight.”

On the decisions and orders issued, a semi-annual report was also prepared to evaluate the government’s performance, and this is something that did not exist previously.” He added, “The government achieved more than 35% of the government program in its first year.”

He stated that during the first year, the total amount of funds to be preserved from waste reached one billion dollars, and more than one hundred million were recovered, while the number of reports reached 30,000, 8,690 people were brought in for investigation, 3,015 arrest warrants were issued, in addition to the arrest of 1,300 people, and the recovery files amounted to Fugitives 70 files.

 Al-Awadi touched on the dollar crisis, stressing that this crisis is major and affected the rise in the prices of cars, real estate, and construction materials,

 but the government was able to maintain food prices, and this is most important.

 He explained that trade with China will be opened in yen value, and our trade with Iran and the UAE will be in tomans and dirhams.

He pointed out,  “The government may have to sell the dollar directly if the crisis continues and through government exchanges,” noting at the same time that “inflation in Iraq decreased by 4%.”

Regarding Al-Sudani’s speech during the Cairo summit and the rumors about Washington’s anger, the government spokesman stressed that “Iraq is a sovereign country and has a decision, and in his speech he expressed the position of Iraq and its people, and we do not care who accepts or is upset.”

Ali stressed,  “We did not receive threats regarding Al-Sudani’s speech,” adding that  “protecting missions is the government’s responsibility and it must carry it out properly.”

https://www.nrttv.com/ar/detail3/16777

The Central Bank Announces The Imposition Of A Fine Of More Than 100 Billion On Exchange Companies

 Economy ,  10/29/2023  Number of readings : 225  Baghdad – Iraq today:   The Central Bank of Iraq announced on Sunday that fines imposed on banks and non-banking institutions (exchange companies) amounted to more than 104 billion Iraqi dinars during the past nine months.

 A table of the bank showed that the fines imposed on banks and financial companies during the past nine months, starting from January and until September, amounted to 104 billion and 769 million and 332 thousand and 606 dinars, indicating that

“the fines also included 348 administrative penalties for these banks and non-banking institutions, distributed among Between warning, warning, and grace period.”

 The table showed that “the month of April witnessed the highest fines for banks and non-financial institutions, as these fines reached 17 billion and 440 million and 383 thousand and 447 dinars, with administrative penalties amounting to 17 penalties, while the month of June witnessed the lowest fines, which amounted to 8 billion and 353 million, 387 thousand and 476 dinars with administrative penalties amounting to 50 penalties.”

 The table did not show the names of the banks on which fines and administrative penalties were imposed.

The  Investors Association in the Iraq Stock Exchange had criticized, in early last June, the Central Bank of Iraq’s increase in fines on banks. Pointing out that it will affect the profitability of investors in the shares of these banks.   https://iraqtoday.com/news/76926/البنك-المركزي-يعلن-عن-فرض-غرامة-اكثر-من100-مليار-على-شركات-الصرافة

With A Rate Starting From 25%…The Money Recovery Fund Promises Its Violators Who Cooperate With It To Exempt Them With A Percentage Of The Refunds

 29/10/2023  572 views The Parliamentary Integrity Committee confirmed today, Sunday, that the operations to recover smuggled funds are not at the required level, while it sent an invitation to the competent government agencies.

Committee member Jamil Al-Hadidi added,  “There has been a government movement during the recent period to recover smuggled funds, and the government was able to return a small portion of that money, and  therefore the operations to recover smuggled funds are not at the required level.”

He explained that “the volume of funds smuggled from corruption and other operations is very large, and  there is no accurate statistics for the size of all these amounts, and comparing the funds that were recovered with the amount of corruption shows that it is very small, and therefore the relevant government agencies must intensify their efforts in order to return these funds.” Announcing accurate statistics on the amount of money smuggled from Iraq.”

 The Iraqi government is seeking to recover the file of funds smuggled abroad, based on a reward announced last year, which is a method that was not used by previous governments, with the hope that it will reach the hundreds of billions that were stolen from official departments and institutions, and what was covered under the titles of projects, investments and deals,

 Not to mention the embezzlement of funds allocated to feed the ministries since 2003, which parliamentary committees and observers estimated at about $450 billion.

 The “Iraq Assets Recovery Fund”, an official body, called on all citizens, whether inside Iraq or residing outside it, to cooperate in order to recover Iraq’s money and return it to the state treasury.

 A statement from the Fund stated that

 it “promises its violators to cooperate with it to exempt them from the amounts owed by them at a rate of (25%), up to a maximum of $5 million of the recovered money,” indicating that

 “the Fund’s Board of Directors grants a reward to the informant at a rate of (10%), provided that it does not exceed $5. Millions of dollars in money recovered, and

 in the event of multiple informants, rewards will be distributed in specific proportions to each of them, and according to the role of each of them in recovering the money.”

https://www/nrttv.com/ar/detail3/16763

“Banks Are Neglected” By The Responsible Authorities.. The Financial Sector In Iraq Is Entering A Stage Of “Idle And Failure”

 Economy |  Baghdad today – Baghdad   The financial and banking sector in Iraq needs financial and administrative reforms to advance it after it entered a stage of “idle and failure,” according to international economics professor Nawar Al-Saadi.

 Al-Saadi said, today, Thursday (October 26, 2023), that  “Iraqi banks are witnessing negligence from the responsible authorities, and have entered a stage of inactivity and failure,

 which has made them lag behind significantly compared to other global banks or even neighboring countries that are witnessing sustainable developments,” noting that

“This negligence and delay causes the use of modern technologies in daily dealings and banking transactions.”

 Al-Saadi explained in an interview with “Baghdad Today” that  “the main reason for the citizen’s avoidance of dealing with these banks is due to his loss of confidence in them,

 which led to the accumulation of funds and deposits with capital owners instead of depositing them in banks, in addition to increasing interference and negative political influence.” on the performance of these banks.

Transparency And Anti-Corruption

 He pointed out “the need for radical financial and administrative reforms for the financial and banking sectors, such as enhancing transparency and combating corruption,” noting that

“transparency in the operations of the financial and banking sector and

 combating corruption must be enhanced through the application of strict laws and effective supervisory mechanisms.” 

Al-Saadi also stressed “the necessity of improving infrastructure, as  banks and financial institutions need to improve their infrastructure and adopt modern information technology to provide better and safer services, as well as develop policies and regulations to enhance stability and economic growth.”  He pointed out that “the  most important thing is to strengthen small and medium-sized finance by supporting loans and financing for small and medium-sized companies, which in turn encourages the growth of the economy.

In addition to everything mentioned, we also need to  train and develop human resources, as investment must be made in training and developing professionals in the banking and financial sector to ensure the provision of Services are of high quality.”

Financial And Administrative Reforms

The professor of international economics stressed that  “financial and administrative reforms must usually be implemented in cooperation between the government, parliament and the judiciary, as they are a complete system,”

 noting that  “the government plays an important role in providing the necessary policies and procedures to achieve reforms, and

Parliament plays an important legislative role in passing the financial and banking laws and regulations necessary to implement them.”

Reforms.

In addition, the judiciary can be effective in monitoring the implementation of these reforms and holding those responsible accountable for any violations, especially cases of financial corruption that destroyed everything in Iraq.”  He concluded his speech by saying,

 “Therefore, the cooperation of the authorities helps in achieving

 success in implementing financial and administrative reforms,

ensuring their sustainability, and

avoiding the collapse of the financial and banking sectors.”

On (August 3, 2023), Prime Minister Muhammad Shiaa Al-Sudani directed all concerned institutions to adhere to working in accordance with what was stated in the Central Bank of Iraq Law No. 56 of 2004.

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 The Sudanese Media Office stated in a statement, “In confirmation of the government’s approach to continuing reform of the financial and banking sector, and

to complement the efforts made by the regulatory agencies and financial institutions concerned with controlling transparency and integrity in this vital sector, the

 Prime Minister directed all concerned institutions to adhere to working on… According to what was stated in the Central Bank of Iraq Law No. 56 of 2004.” 

He stressed,  “The above-mentioned law shows that the Central Bank of Iraq is the only body that has the authority to take all measures to regulate and monitor the work of banks and non-banking financial institutions to ensure their compliance.”    

https://baghdadtoday.news/234133-المصارف-مُهملة-من-الجهات-المسؤولة.-القطاع-المالي-في-العراق-يدخل-مرحلة-الخمول-والفشل.html

 

To read more current and reliable Iraqi news please visit BondLady’s Corner:

https://www.bondladyscorner.com/

 

Provoking Points to Ponder on WORDS:

Such as thy words are – such will thy affections be esteemed — and such will thy deeds be as thy affections – and such thy life as they deeds — Socrates

A good word is an easy obligation — but not to speak ill requires only our silence – which costs us nothing — Tillotson

Discontent is the first step in progress. No one knows what is in him till he tries, and many would never try if they were not forced to.  – Basil W. Maturin

It is the spur of ignorance, the consciousness of not understanding, and the curiosity about that which lies beyond that are essential to our progress.  – John Pierce

Some people change their ways when they see the light, others when they feel the heat. -Caroline Schoeder

It is unwise to be too sure of one’s own wisdom — It is healthy to be reminded that the strongest might weaken and the wisest might err – Mahatma Gandhi

We can do whatever we wish to do provided our wish is strong enough. What do you want most to do? That’s what I have to keep asking myself, in the face of difficulties. – Katherine Mansfield

Where the willingness is great, the difficulties cannot be great.  – Niccolo Machiavelli