Iraq loses 10% of its total foreign official reserves in 2024 .. What are the reasons?
Economics 2025-02-18 | Source: Alsumaria News 2,299 views Alsumaria News – Economy witnessed Iraq During the year 2024, a remarkable decline in its foreign official reserves, as it decreased to 130 trillion Iraqi dinars by the end of the year, recording a loss of 6 trillion Iraqi dinars during the month of December alone, which represents 4% of the total reserves, according to what he mentioned The head of the Iraq Future Foundation for Research and Economic Consultation, Manar Al -Ubaidi. says Al -Ubaidi in a post followed by Alsumaria News, that
throughout the year, Iraq lost a total of 15 trillion Iraqi dinars, which is equivalent to 10% of its official reserves, to reach its lowest level in more than two years, as the reserves were at this level at the end of a year 2022, before it rose to 147 trillion Iraqi dinars in November 2023, and then re -decreased at the end of 2024.
This decline is due to several main factors, foremost of which is the
high government expenditures, as
revenues were unable to achieve sufficient levels to cover the increasing expenses, which necessitated
resorting to reserves to fill the financial deficit and financing operational and investment expenditures that are still in continuous escalation. Besides,
there are other factors that have contributed to this decline,
imposing economic challenges that require a review of financial policies to ensure the stability of cash reserves in the future, according to Al -Ubaidi.
https://www.alsumaria.tv/news/economy/516887/العراق-يخسر-10-من-مجمل-احتياطياته-الرسمية-الاجنبية-في-2024-ما-الأسباب
The Central Bank Organizes A Workshop To Introduce Artificial Intelligence
February 18, 2025 The Information Security Department, one of the formations of the Central Bank of Iraq, organized an introductory workshop for its employees with the concepts of artificial intelligence and its relationship to the security of cyber information and security.
The workshop discussed the
stages of the development of artificial intelligence and
its relationship with the security of cyber information and security, as well as
its new role in the financial and banking sector and the
risks that this sector can be exposed to.
The Central Bank of Iraq Media Office February 18, 2025 https://cbi.iq/news/view/2796
Banking Sector And Economic Bases
Economic 2025/02/17 of the. He Hamid Rhyme Janani It can be likened to the artery of life in relation to economic activity, and its role in any economy cannot be overlooked, regardless of that economy, sophisticated or developing, and even if it is backward, the
first model needs a banking system that is pushed through its sustainable activity to achieve positive growth in the gross domestic product, while the
second model has a role Under importance is to mobilize savings and direct them to investments to push towards the sustainability of development transformations. As for the
third category, it must activate the role of banks and improve their performance in a way that ensures the finding of the introductions of the economic transformation and change to move from the clutches of backwardness to the desired economic development.
Investments need financing and
the last is supposed to achieve by the banking sector and
this is what is discovered from the (Hardo-Dumar) model that is supposed to be
Economic growth as a product of economic development is based on the explicit relationship between the volume of savings and investments in the economy, and
this is definitely the role of banks.
The aforementioned roles are achieved through the mechanism of work of the banking system in any economy with the different pattern of its work, as
commercial banks that work with their credit policies using the teams that have the price of creditor and debtor, and
those Islamic ones that take a pattern based on speculation, agency, murabaha, participation and consultation, as some banks invest Trade in securities with its various types.
The essence of banking operations in its various forms is looking to achieve a very important purpose,
which is to find an economic balance between financial surpluses on the one hand and financial scarcity on the other hand, but how?
Of course, there are individuals in society who have financial resources and do not have investment thought, in return there are individuals and institutions that have investment thought but they need financial financing,
the banking system comes to exercise the role of the mediator between the two categories and through the interest rate and credit policy or the tools of Islamic banks to withdraw financial surpluses to re-pump it into the economy By directing it to the business sector, and
here is the secret behind the state of economic growth and enhancing development gains and shift towards the beginnings of economic development, and
it must be indicated by the transit role of the borders of the process of transporting capital across countries,
everything that is presented expresses the governing economic rules of the work of the banking system.
Iraq and the dilemma of the banking apparatus,
that dilemma that begins with international sanctions inherited from the previous regime, which was imposed on the largest banks, Al -Rafidain and Al -Rasheed, which have not been raised to this day, and
despite the establishment of many private banks, the number of banks reached (79) banks distributed according to ownership (8 (Government banks, (71) private banks, and (7) of private banks in which foreign partnerships, the observer did not touch the economic situation a developmental role for the banking system by noting
the general economic situation dominated by the rentier style according to the diversity indicators issued by the Ministry of Planning, the transformational industrial sector contributes to a rate The percentage of (2 percent) only and the agricultural (5 percent) only and other low percentages from other contributions and
the most important point is that the rate of what the banking sector maintains from the cash source by
the central bank did not exceed (12 percent) only and the rest is cash in trading the banking sector did not succeed in Attracting it, and this reflects the weak confidence in the device Banking.
The most important misfortunes on the banking system are the international sanctions imposed, as the number of punishable banks in 2023 (14) banks reached the penalties before them (4) other banks.
Despite the efforts to address the defect in the banking system, such as government attempts to structure the largest banks (Al-Rafidain and Al-Rasheed) by relying on international advice, the central bank’s policies to enhance control over its work and the ongoing negotiations to lift the sanctions and others, the banking system is still suffering from clear challenges.
The desired economic development in Iraq needs a banking sector working (with economic rules) a necessary condition and not sufficient to achieve the shift towards the beginnings of development, and without it the problems of (monetary liquidity) remain stuck because the monetary bloc in the economy is with its largest part of The banking system. https://alsabaah.iq/110251-.htm
For current and reliable Iraqi news please visit: https://www.bondladyscorner.com/
