Bondlady’s Corner – Iraq Economic News and Points to Ponder Sunday AM 2-25-24


Iraq Economic News and Points to Ponder Sunday AM 2-25-24

Tlm724 Administrator Bondlady’s Corner

The Value Of Electronic Payment Exceeded 9 Trillion Dinars During 2023

 Economical 02/25/2024   Baghdad: Hussein Thaghb  There is a consensus from the public and private sectors on the necessity of regulating the reality of electronic collection in Iraq after the local market witnessed great interaction using electronic payment and the value of use increased remarkably in 2023 to exceed 9 trillion and 661 billion dinars through financial movements exceeding 15 million transactions.

Participants in the workshop on enhancing electronic government collection, organized by the Iraqi Private Banks Association with the support of the Prime Minister’s Office and sponsored by the Central Bank of Iraq,

described electronic payment as an important new stage that guarantees the paths of funds and makes them more transparent, but it is not without challenges that can be overcome in cooperation with the Central Bank and specialized companies.

Governor of the Central Bank of Iraq Dr. Ali Al-Alaq said:

The successes achieved in the field of electronic payment stem from the great support given by Prime Minister Muhammad Shiaa Al-Sudani to this important project.

We also value the efforts of the ministries that interacted with this project and gave it priority, pointing out that the launch of electronic collection comes as a translation of the Central Bank’s objectives in Adopting advanced technologies in electronic payment. 

Al-Alaq stressed that electronic collection contributes to strengthening government financial resources and operates in a transparent environment in light of the components provided by the Central Bank.

The project targets ministries and non-governmental institutions at the same time, and the citizen can now pay from anywhere and this is for the optimal use of cash.

Director General of Payments at the Central Bank, Adnan Asaad, indicated that the decisions of the Council of Ministers had a positive impact on activating electronic collection, especially in the second half of 2023, pointing out that the total collection from gas stations exceeded 10 billion dinars, and the number is expanding, as is the number of employee cards.

In localization services as of June 2023, it amounted to 8,653,310, and the total electronic collection through electronic payment gateways in the year 2023 exceeded 108 trillion through financial transactions exceeding one million transactions. 

Asaad pointed out that the commissions charged to citizens in electronic payments are “zero” and in the public and private sectors, and this issue requires expanding the citizen’s culture, and here is the responsibility of all concerned institutions.

Executive Director of the Association of Private Banks, Ali Tariq, said:

The workshop brought together most of the state institutions and the private sector with a large and qualitative presence that witnessed identifying all the problems facing the ministries in this important project, and working to solve them through coordination with the companies and institutions concerned.

Tariq stressed that the great cooperation shown by the team of the Central Bank of Iraq and specialized companies with the presence of the Association of Banks achieves smooth work and contains all the problems or challenges facing some institutions, pointing out the presence of financial expertise capable of mastering advanced technology and employing it in the correct manner, and that the training carried out in We have begun to see positive results in this aspect,

and we now have a developed work team in Iraq, where the Association has prepared continuous training programs for several years that enable human resources to use advanced technology.

As for the representative of the International Smart Card Company, Ghazi Al-Kanani, he pointed out that the reality of electronic payment has begun to expand significantly, and the citizen has begun to interact greatly with the electronic services that are provided, and this came after the citizen felt the positives provided by this project, pointing out that electronic payment was established with the aim of providing The best services and mechanisms that facilitated his daily life.

He stated that  electronic collection will follow the collected funds to their legal destination without tampering, and will enhance the federal budget with large revenues, pointing out that Iraq is facing a new phase that preserves the funds’ paths and takes their destination to the appropriate place.

As for Traffic Major General Adel Al-Araji, he said:

Electronic collection is a new experience and has faced several challenges due to the ramifications of revenues and the lack of educational campaigns.

 He pointed out that there are committees in the General Traffic Directorate that supervise electronic payment operations, noting that collection in the Karbala Traffic Directorate reached 100% and in Basra 60%. He emphasized the work to allocate one day each week for electronic payment, as  we have platforms that work exclusively on electronic payment.

As for the representative of the Ministry of Oil, Yasser Ammar, he confirmed that the Ministry had circulated the electronic collection experience from the first quarter of 2023.

There were challenges to completing the work, but we worked to overcome them, pointing out that  all 350 government stations operate with electronic payment.

As for the representative of the Minister of the Interior, he confirmed that the Minister of the Interior directed the adoption of electronic payment and that collection and collection be electronic from May 1, 2024, pointing out that

there are challenges that are being addressed in cooperation with the concerned authorities, and that the  Ministry believes in developing the performance of electronic payment and what rises to global performance.

Treasury Penalties And The Bitterness Of The Lesson

Economical 02/25/2024   Yasser Al-Metwally, I completely disagree with those who portray the Treasury’s action against banks as a measure to prevent dealing in the dollar.

Rather, it is an actual punishment.

So why improve the image?

Let us examine the negative effects of the treasury’s decisions on the banking sector. The first effect is harming the banks’ reputation, and everyone knows the effects of reputational risks in disrupting banking work and the reluctance of customers to deposit or withdraw their money simply because of specific fears resulting from the chaos caused by sanctions, rumors, and some lurking speculators.

At a time when strenuous efforts were made by the banks, their associations, and even the Central Bank during the past short period to restore confidence, and banking activity began to recover and provide some banking services to the fullest extent, until the US Treasury’s decisions came against more than a third of private banks, without a doubt, causing reputational risks from new.

But it seems that confidence still remains among some of the customers in the strength, sobriety, steadfastness, and conviction in the face of these decisions that appear to be violations and are hidden for political purposes, and even

the violations highlighted were for previous periods before the instructions issued by the Treasury.

Here, the banks that were subjected to these sanctions must work steadfastly and not let these decisions weaken their role in providing banking services that contribute to enhancing confidence and deepening their bridges with customers in order to continue banking activity.

Perhaps what some banks offer is a source of admiration and unparalleled steadfastness.

I mention, for example, Al-Tafif Islamic Bank, the International Islamic Bank, and other banking activities and products that do not care about sanctions, which is the ideal response to these absurd sanctions in some of them.

The issue of canceling the currency window was decided a while ago, and we have warned in several articles not to rely on the window’s activity as it is temporary and under specific circumstances.

The process of mitigating the impact of Treasury sanctions requires the relevant authorities (the Central Bank, the Ministry of Finance) to find means of support to protect banks and support them in practicing their credit and other banking activities.

Perhaps the Deposit Insurance Company and its activation are one of the most important of these means, despite my observations on the weakness of its media and marketing role, as it

It needs to clearly show its activities.

In parallel, the Central Bank and the Association of Banks must work in all available ways to find means to cancel most of these unfair decisions against some banks due to their commitment to the required international standards.

Banks should benefit from the decision to allow dealing in currencies alternative to the dollar in foreign transfer activities, especially since BRICS is a strong competitor that is inevitably coming, and it is an opportunity that will provide Iraq and help it be accepted into the group in the future.

There is no way to get rid of the burden of the dollar except with the next alternative, and the Treasury, with its measures, is pushing to search for an alternative.

Mazhar Saleh: Iraq Is Searching For A Globally Advanced Position In Gas Production The first 02/25/2024  Baghdad: Hoda Al-Azzawi  Iraq is focusing on seizing an advanced position in the list of the ten largest gas producing and exporting countries in the world, while possessing huge reserves that place it in 12th place in the world, but it produces less than 9 billion during an entire year, in addition to the urgent need to enter the gas sector.

Sustainable energy.

 Adviser to the Prime Minister for Economic and Financial Affairs, Mazhar Muhammad Salih, said in an interview with “Al-Sabah”:

 “Iraq is one of the countries most likely to engage in the use of renewable energies, especially solar energy, as it is one of the rare countries with increased sunrise hours.”  Saleh added,

 “Iraq needs to enter the era of renewable energy, in addition to respecting carbon zero agreements for the optimal use of natural gas,” noting that”it is necessary to     diversify the sources of energy production and     use and enter into the clean energy sector and     economic development.

 Today, we need to produce twice the current energy.””. In the face of the increasing need for energy, Saleh pointed out that “the economic reform plan is moving towards diversifying the Iraqi economy.

Economic diversification   begins with the oil sector by   shifting from absolute rentierism to relative rentierism.

Instead of importing oil derivatives worth more than $5 billion, it can be compensated by switching from importing “To a source of petroleum products, which allows Iraq to  maximize the value of national income and  create diversity important for sustainable development.”

Hello, World!

Minister Of Oil: Economic Motives Are Behind The Withdrawal Of Some Companies, And We Will Stop Importing Gasoline This Year

Economy    Baghdad – IA  Today, Saturday, Oil Minister Hayan Abdul Ghani revealed a plan to increase oil production in the southern fields, while stressing that the withdrawal of some investment companies has economic motives.

Abdul-Ghani said in his speech during the (Sixth Baghdad Dialogue Conference / Regional Communication), which was attended by the Iraqi News Agency (INA):

“The Ministry of Oil has developed an ambitious plan to increase production, but  Iraq is a major part of OPEC, and is committed to the organization’s production ceilings, and

Iraq’s share reached Four million and (600,000) barrels per day, and there was a reduction two years ago and production became four million and (400,000) barrels per day.

 There are two voluntary reductions, and Iraq implemented them, and production reached (4) million barrels per day,” pointing out that “the goal of that is to maintain stability.” Prices and achieving a balance between supply and demand. 

 “Most oil fields are managed by international companies, and there are ambitious plans to increase production in the Rumaila field in Basra Governorate, which is the largest field, where production currently reaches one million and 300 thousand barrels per day, and production will reach one million and 800 thousand barrels, in addition to developing the Zubair and Western fields.”

 Qurna and West Qurna 2,” noting that “development plans and increased production will be consistent with global requirements for crude oil and without flooding the market with surplus oil.”

 The Minister of Oil continued, “OPEC has a plan to increase crude oil production to 16 percent in the coming years,” explaining that “the organization’s production currently amounts to about 100 million barrels, and production will reach 116 million barrels per day, according to the market’s need.”

 He stressed that “Iraq has made plans to use clean energy, especially in the field of gas, and plans have been drawn up to invest in gas, and contracts have been signed in this regard and to stop burning gas,” noting that “Iraq has launched two licensing rounds in the field of gas, targeting more than 33 fields in order to increase gas and transform Iraq.”

From an importing country to a producing country, Iraq is likely to be a gas exporter.” He stated that “gas investment will be in exploratory patches in Nineveh, Anbar, Diwaniyah and Muthanna because they contain large quantities of gas.”

Regarding oil refineries, the Minister of Oil indicated that “the oil products produced by the Karbala refinery are all environmentally friendly,” noting that “the ministry opened a refining unit in the Basra refineries, as well as the opening of the Baiji refinery,” stressing that  “the ministry proposed investment refineries in many From the governorates, there are companies that have expressed a desire to invest in these refineries, and the offers will be discussed by the ministry.”

He stressed that  “the Ministry of Oil is keen to transform Iraq from an importer to an exporter in the field of petroleum products, especially gas oil and kerosene.

The Ministry was able to stop many petroleum products, and the import of gasoline was reduced from 16 thousand cubic meters per day to 6 or 7 thousand cubic meters and within In the coming months, these quantities will be reduced and imports will be stopped in the second half of this year.”

Abdul-Ghani explained,   “Foreign companies are still operating freely in Iraq and are expanding and growing, whether in oil or gas investment.

As for the companies that withdrew, they withdrew of their own volition and for purely economic motives, especially ExxonMobil.

This company was informed not to agree to the withdrawal, but it insisted.” To withdraw due to the creation of investment opportunities in Africa.” He continued,

“These companies aim to achieve profits and are looking for profitable opportunities wherever they are.

As for foreign companies, especially European ones, they have a desire to invest in gas fields in Iraq.”–.html

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Provoking Points To Ponder on Money

Definition of the upper crust: A bunch of crumbs held together by dough. – Anonymous

Money can’t buy happiness, but it will certainly get you a better class of memories. – Ronald Reagan

The man who invented slow-motion movies got his idea while watching a Scotsman reach for a check in a restaurant.  – Anonymous

When asked to borrow money: “I’ll see what my lawyer says. . . . And if he says yes, I’ll get another lawyer.”  – W. C. Fields

Money won’t buy happiness, but it will pay the salaries of a large research staff to study the problem.– Bill Vaughan

By the time a man is rich enough to sleep late, he’s too old to enjoy it.  – Anonymous

Money can’t buy you happiness, but it does bring you a more pleasant form of misery. – Spike Milligan

Another good thing about being poor is that when you are seventy your children will not have you declared legally insane in order to gain control of your estate.  – Woody Allen

Money makes the man.  – Aristodemus

A fool and his money are soon parted.  – George Buchanan

Penny wise, pound foolish.   – Henry Burton

Famous Quotes and Authors, Famous Quotations for all Occasions