TNT – “Tidbits From TNT” Wednesday Morning 12-20-2023

Tishwash:  Al-Sudani directs that the 25th and 26th of December be an official holiday for Christians

The Prime Minister, Mr. Muhammad Shiaa Al-Sudani, directs that the 25th and 26th of this December be an official holiday for Christian citizens, on the occasion of the glorious Christmas holidays

Prime Minister’s Media Office
December 20, 2023   link

Tishwash:  Al-Alaq: Employing information technology in state institutions will eliminate corruption

 Central Bank Governor Ali Al-Alaq said on Wednesday that purging state institutions of corruption is fundamentally linked to the use of information technology. He stressed that providing data and information at the state level maximizes state revenues.

Al-Allaq stressed in the annual international scientific conference held under the auspices of the Minister of Finance and followed by “Earth News” that purging state institutions of corruption is largely and fundamentally linked to the use of techniques and information technology to reshape the relationship between the institution, society and the individual, thus eliminating many areas that cause institutional confusion. performance, corruption operations, weakness, or delay in the various procedures related to what these institutions provide,” explaining that “employing information technology in state institutions is very necessary.”

He pointed out that “when the government structure was reconsidered years ago, two important ministries were abolished, namely the Ministry of Science and Technology and the Ministry of Environment,” explaining that “the Ministry of Environment was restored, but the abolition of the Ministry of Science and Technology contradicts the desired developments and goals in focusing on this aspect and embracing all energies that can work in this direction.”

He continued, “The companies that operate within this framework are the most profitable in the world, and we have human resources and young energies that deserve to have a role in stimulating and developing this important aspect.”

He noted that “the Central Bank is the institution that most uses and benefits from modern and digital technologies,” stressing “the necessity of stimulating and developing the development of these trends to regulate the work of the Central Bank.”  link

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Tishwash:  Economic reform in the Prime Minister’s vision and governmental approach

Prime Minister Muhammad Shiaa Al-Sudani said last week while answering questions from attendees of the “Beston Talk” program on Rudaw TV that economic reform begins with financial and banking reform, stressing that the government’s economic vision is based on an accurate diagnosis of the obstacles and challenges of economic reform, which has not been achieved since 2003 due to… The banking and financial sector has not witnessed any real reform process for two decades because without a sound financial and banking sector it is not possible to build a sound national economy.

Therefore, the vision of the Prime Minister for comprehensive and radical economic reform comes in line with what was stated in more than 12 axes examining economic reform, the details of which were included in the government curriculum, which were emphasized and considered among the priorities that must be implemented.

What concerns us here is what is stated in the twelve axis (financial and banking reform) and paragraphs (1, 2, 3, 4, 5, 6 and 7) thereof, which clearly and accurately state that (financial and banking reform provides a real and effective basis for the advancement of the Iraqi economy and stimulating investment through restructuring and mechanizing government banks, reconsidering their work and stimulating… Private banks and empowering them to be able to support investment and development in a real way)

And that the Prime Minister’s vision focuses on the importance of the financial and banking sector so that it occupies within the financial structure of the economy a vital position in mobilizing savings and financing development through its ability to flow money between the categories of the national economy, which is the basic step for economic reform and that The measures that the Central Bank is currently taking in high coordination with the support of the government to implement its new comprehensive strategy to reform, develop and classify banks according to several axes, the most prominent of which is the completion and implementation of projects for the transformation from a cash economy to a digital economy and a cashless society and the development of national payments systems by establishing the National Payment Systems Company, which will undertake the development and operation of systems.

Payments are under the supervision of the Central Bank, launching a financial inclusion strategy, working to adhere to international standards for the global financial system, focusing on regulating foreign trade financing, opening accounts for Iraqi banks with correspondent banks, controlling foreign transfers, and opening dealings in other foreign currencies in addition to the US dollar, as well as drawing up a national lending plan to be approved.

New mechanisms for organizing the granting of loans for the development of small and medium enterprises in accordance with the Prime Minister Riyada’s initiative to employ young people and qualify them to choose their projects, relying on the banks’ own financial capabilities and attracting deposits to provide liquidity and invest them in accordance with the instructions of the Central Bank.

Directing the small and medium enterprise financing initiative towards the economic and productive sectors that have the greatest impact on contributing to development. Establishing Riyada Bank, creating a loan guarantee company, activating the work of the deposit guarantee company, and amending its internal system in a way that enhances confidence in the banking sector. Continuing the procedures and using monetary policy applications to control the exchange rate and reduce the gap between the official rate and the black market rate, which has begun to narrow towards reaching the targeted and balanced exchange rate.

Referring to the Prime Minister’s assertion that the government cannot accept that the official exchange rate be equal to the black market rate. All of this indicates that the many services provided by the banking system in developed countries have enabled these countries to achieve the progress and economic growth they have achieved. The solidity of the banking structure has become one of the necessities of building a prosperous economy that adopts modernity and sound sustainable development systems. The development of banking habits and awareness of the importance of developing banking facilities in a way that secures the building of the national savings base and develops the financial resources necessary to build the economy have become among the priorities of decision makers.

Therefore, the soundness of the banking system and the mobilization of sound decisions in the field of economic policies towards developing and modernizing banking systems ensures achieving momentum in the world of real and financial investment, which revitalizes the financial and monetary markets, leading to attracting foreign capital in search of profit, which requires the government and the central bank to take measures. It is necessary to fortify and strengthen local banking systems in a way that makes them capable of facing the challenges of transferring capital to and from abroad without causing money laundering or foreign exchange smuggling operations, and thus increasing the profitability of financial and banking institutions and enhancing the structure of the gross domestic product.

This is what the government and the Central Bank are currently active in doing. It is, in fact, a new reformist economic vision and thought to harness all capabilities and energies in order to achieve it in the next stage.  link