Float the Iraqi dinar economic phenomenon that will support the national currency
09/27/2016

The Journal News
"floating" instrument of monetary policy tools countries, only used with currencies that determine the value of governments, be left to other factors not.

The flotation is different from the "devaluation", which is determined by the open market on the basis of supply and demand.

The flotation reverse link, Currencies pegged against major currency or basket of currencies are floated through the "decoder" linkage partially or totally, while currency devaluation Fksh high value, as it happens for major currencies in free markets like the US dollar or the euro or the other, since rising value those currencies or fall in the market according to supply and demand, and the strength of the fundamentals of economies they represent, and the actions of speculators in the currency markets.

For example, China has linked its national currency, the yuan to a basket of currencies and the US dollar, essentially, it is under pressure from the West to lift this link and let its currency to rise or fall value based on market factors, which means "float the yuan."

Indeed, China has recently resorted to float its currency against the dollar, in response to criticism during the American presidential campaign of the policies of China’s cash and its impact on trade with America.

Float the Iraqi dinar: –
suggested economist banks Rahim al – Adli on the Central Bank of Iraq and the government ‘s adoption of the "unrestricted flotation" in the currency auction instead of "limiting factor" that determines a fixed exchange rate to the dollar price, trying to keep it fill the market need of hard currency,

but officials in Bank assert that the latter is subject to economic variables and the movement of the market, noting that Iraq ‘s cash reserve covers the needs of the private sector in foreign currency, as well as the currency bloc , the Iraqi dinar by 160 percent.

Adli said, "that there are three ways to deal with the central banks with foreign currency; The first is made up by the" limiting factor "to be adopted by the CBI, which includes a fixed exchange rate to the dollar price, and pumping dollars into the market to maintain the stability of the market price of traded currencies.

The second method is called "flotation", explains al – Adli as "thumb market is controlled exchange rate , " noting that "this way pose a threat to the exchange rates, being subjected Iraqi dinar to collapse."

The method involves third , a "floating orbit," or unrestrained, according to al – Adli "determine the specific price of the dollar, and another represents a maximum him, to leave that currency floats between these two prices."

Banking expert continued that if exchange rates exceeded the maximum the central bank to pump quantities of the dollar as needed for the domestic market, adding that he suggested to the central bank and the government to adopt this way "being the best, and supported in most countries of the world."

On the other hand saw Observer of money market auction CBI Hamid Salim "that the bank is trying to maintain the stability of exchange rates," he said, adding that the monetary policy and instructions "change according to economic conditions experienced by the country."

And see world oil prices since the middle of last year continuous decline, due to the use by some countries to increase Marodha against the lack of demand for it.

He says Salim, a competent observer for fiscal policy in Iraq, "The cash bank reserves fell to $ 60 billion due to falling crude prices, but he assured that this decline does not threaten the collapse of the local currency, being blocked 160 percent of the money supply of the Iraqi dinar."

The governor of the central bank on the Keywords may Hoon earlier fears, which says that the continued downward pressure the Iraqi dinar, which sells "the central bank" for banks and dealers who obtained the licenses at a price fixed in 1166 dinars to the dollar.

"If we look at the markets these days, we will see that the price is very stable, and very reasonable."

The local currency plunged to about 1400 dinars to the dollar on the parallel market in mid-June 1228 from the week earlier.

As part of the government’s efforts to bridge the budget deficit, Baghdad marketed the first version of its international bonds in nine years in Europe and the United States this week.

The government Taml collect six billion dollars of those dollar-denominated versions, but Keywords said that the first phase will be to collect two billion dollars, and the expectation that the interest rate exceeds the eight percent because of security concerns.

Baghdad also plans to issue local bonds worth five billion dollars, starting from the last quarter of this year.

The effect of flotation: –
would float the dinar that reduces pressure on the central bank in relation to the size of the foreign currency reserves, but this factor in the overall economy does not matter so much, but more importantly that the devaluation of national currency as a result of the flotation will lead to increased exports.

Products are Iraqi will become much cheaper in foreign markets (because of the Iraqi dinar depreciated significantly against the dollar and the euro, etc.) and thus become more competitive.

In contrast, imports will become much more expensive, and then it will be difficult for Iraqis to buy a lot of imported goods for high prices severely and this consequently will increase the consumption of local goods and the increase of the domestic economic activity.

But the disruption of the balance of exports and imports often lead to so-called "collective doubled demand", which in turn leads to higher inflation, and, of course, according to theoretical calculations, "he wrote the economy."

But add to that that the proportion of "parallel economy" (ie, that is outside the book) in Egypt is almost equal to the proportion of the informal economy, which means that the real inflation rates will be much higher than is caused by the collective demand doubled, may mean further impoverishment of the poorer classes already in the community .

Forms of flotation: –
either be floating or purely be directed:
– pure flotation: are left to determine the exchange rate to market forces and the mechanism of supply and demand in full, and the state refrain from any direct or indirect intervention.

– Flotation prompt: is left to determine the exchange rate to market forces and the mechanism of supply and demand, but the state intervenes (via the central bank) as needed in order to guide the exchange rates in certain directions by influencing the size of the offer or demand for foreign currencies.

Supporters of flotation: –
for as long as theorists monetary school in Economics defended (Milton Friedman model) for floating currencies, claiming that the liberalization of exchange rates will make it reflect theeconomic fundamentals of the various countries (growth, trade balance, inflation, interest rates), and will lead it thus to restore balance in relations trade and current accounts transactions consistently and automatically.

And sees these economists, like the neoclassical trend in the economy, that the liberation of all prices -osar goods and services, interest rates, labor prices (wages), foreign exchange rates (exchange rates) -oturk identified markets without any interference or direction from the state, always ensures access to state of balance.

This stems from the belief in blind efficient markets, despite the fact that economic reality has proved more than once that the markets in the absence of oversight and control lead to disaster (subprime mortgage crisis in the United States model).

And justify those convinced the currency float, saying that any trade deficit will lead to an intense demand for foreign currency, which will lead to devaluation of national currency against foreign currencies, and thus to enhance the competitiveness of the country concerned.

This sponsor, they say, increase exports and reduce imports, Viatdl so the trade deficit is due to a state of balance. The same logic works in reverse direction if there is a trade surplus.

Supporters of the flotation was welcomed very much the adoption of major economies in the world to systems of floating exchange rates (flexible), after the collapse of the Bretton Woods agreement in the seventies of the last century, which had been laid down by the International Monetary system based on fixed exchange rates (but adjustable) between currencies.

Disappointed
after several decades of the adoption of a floating exchange rate systems and disseminated to a large number of countries around the world (including developing countries), thecurrency was floated promises rebalancing has been done to the trade balances of the world, the hopes of his supporters did not materialize.

Artificially low exchange current moved far from the supposed level that leads to a balance, and the biggest proof of that is the size of global imbalances (Global Imbalances), which reached record levels and still are resistant to treatment.

The United States and some European countries as well as many developing countries known as the case of a structural trade deficit for several decades. In contrast, China, Germany, Japan and oil-exporting countries known as a trade surplus structurally.Instead of floating currencies that ensures a rebalancing of inter
national trade relations, the world knew the case of monetary instability due to the continuing exchange rates and fluctuations big change, which is sometimes subject to any rational logic because of the psychological factors that frame the movement of global speculators.

Equivalent to float the currency we could call the free exchange rate system Free or flexible exchange rate system, which is under which system the central bank of the state to leave the exchange rate (exchange) currency local (dinar) in foreign currency (dollar) is determined according to the trends of demand and supply on the dollar,

if the increased demand for the dollar in the foreign exchange market (dollar market), the dollar exchange rate tends to rise, and if the demand for the dollar has fallen, the dismissal rate tends to drop.

This means that the dollar exchange rate will be subject to waves of demand and supply of it, so it was on this system Floating float the currency, which let a floating currency value rise and fall with demand and supply waves.

And it is preferred to follow the policy of the currency was floated in weak economies or unstable due to the lack of equal competition between the local currency and foreign exchange in the market and the weakness of the industrial structure and the unavailability of exportable goods and the provision of foreign currencies increases the complexity of Almsolh.

http://journaliraq.com/myapp-1358/

Abadi adviser: Iraq will receive $ 634 million from the IMF and the budget deficit, "squeezed"
09.28.2016 at 11:05

The head of the Minister for Economic Affairs Advisor to the appearance of Mohammed Saleh, Wednesday, that the size of the deficit in the budget of 2017 shrank from 34 trillion to 12 trillion dinars, adding that the next installment of the IMF loan to Iraq amounting to $ 643 million.

Saleh said, L / balance News /, that "Iraq will receive new loans in the coming periods, according to prepare the credit agreement concluded with the International Monetary Fund," noting that "the agreement is a pivotal agreement provides for Iraq financial umbrella of up to more than $ 20 billion over the Three years".

He added that "the budget began with a deficit estimated at 34 trillion but it shrank until it became no more than 12 trillion dinars," pointing out that "the next installment of the IMF loan to Iraq amounting to $ 643 million.

"The prime minister pointed adviser, that "the World Bank President gave a positive signal to Iraq that the roof is open for Iraq to borrow, provided that Iraq performs receiving it from the loans in accordance with the agreed" .

http://www.mawazin.net/%D9%85%D8%B3%D8%AA%D8%B4%D8%A7%D8%B1-%D8%A7%D9%84%D8%B9%D8%A8%D8%A7%D8%AF%D9%8A-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82-%D8%B3%D9%8A%D8%B3%D8%AA%D9%84%D9%85-634-%D9%85%D9%84%D9%8A%D9%88%D9%86-%D8%AF%D9%88%D9%84%D8%A7%D8%B1-%D9%85%D9%86-%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D9%88%D8%B9%D8%AC%D8%B2-%D8%A7%D9%84%D9%85%D9%88%D8%A7%D8%B2%D9%86%D8%A9-%D8%AA%D9%82%D9%84%D8%B5/%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A%D8%A9

Iraq participates in the Islamic Finance Forum

9/28/2016 0:00

In order to strengthen regional and international cooperation
BAGHDAD – Hussein Tgb
Iraq participates in the Islamic Finance Forum , which kicks off today in the Tunisian capital and dealing with the Iraqi delegation the role of Islamic financing instruments to achieve Arab economic integration of the frontier markets perspective.

The mean Frontier Market: Islamic finance market products as a place It brings together buyers and sellers, and is characterized by the balance between supply and demand (through the products and goods and the goods).

exchange commodity
head of the delegation of the international expert d. Sadiq al – Shammari said that thegoal of participation comes to learn about the role of Islamic finance in promoting work in the frontier markets of Arab countries and the formation of a conducive environment through the revitalization of the commodity exchanges in these markets, leading to theformation of added value on the path of environmental integration
and economic.

Testifies Iraq expanded horizontally to the field of banking Islamist who took their numbers increasing dramatically after that provided services in harmony and public beneficiaries, and relies on fixed assets is a guarantee of the rights of depositors.

competitive advantage
Shammari between the use of Islamic financing instruments in the border markets contribute effectively to the achievement of competitive advantage for goods and cemented the status of economic integration among themselves to become effective economic power in front of economic blocs intense competition faced by States products
Arabic.

He noted that the participation comes with positive results through friction participating delegations representing consortia Arab and international banks, and its role in the creation of bridges of cooperation with those agencies, especially as the international banks have opened branches in Iraq.

the harmonious interaction
between he will be shown the advantage of its Islamic finance which will bring theestablishment of infrastructure for the development of production among Arab countries on the road to economic integration and activation border market structures and works to activate the appropriate financing operations to achieve a sophisticated Arab economies can contribute to the reduction of unemployment and poverty eradication and thecreation and strengthening of communication and interaction and harmony among central banks and Islamic banks channels leading to motivate and energize their work
outstanding.

as funding is working on reducing the impact of regulatory and legislative restrictions by creating political will act to remove disruptive and interlocking to achieve economic integration among nations barriers Arab and thus activate the frontier markets and preparing bank staffs capable of Fatwa Islamic banking operations, as well as work on the development and innovation of new Islamic finance products able to compete with other products in terms of quality and quality.

http://www.alsabaah.iq/ArticleShow.aspx?ID=123869

Proposals to reduce the planned deficit and expand non-oil revenues

9/28/2016 0:00

Abdul – Zahra Mohammed al – Hindawi
is the state budget project, operational and investment in both its one of the most important projects undertaken by the Ministries of Planning and Finance , one of the projects that have considerable popular interest as well as the political and media attention to the fact that the budget represents the basis of all economic life details.

Hardly the draft budget survives arrows of cash every year despite the considerable efforts made by the government in preparation .. Valmentkaddon say that the budget has not undergone any change , but are reproduced in every year and thus remain inadequate to meet the economic demands of life in Iraq since the case came to the budget deficit for financing investment projects which barely covers the operational side ..

Among the most prominent notes that guide the budget annually interest in providing grades through recruitment in government departments, while the first out was the creation of jobs comes from the support of sustainable development and activation of the private sector.

here , we put a set of proposals which could be introduced to each other at the moment as are discussed others and the possibility of adopting future Almighty these proposals is in the search for new resources and maximizing revenue in an effort to reduce dependence on oil.

proposals to
benefit from the properties of large and numerous state through sold or leased to the private sector and this is a source important to finance the deficit and reduce dependence on oil, not a secret one and there are quite a number of presidential palaces and other can be invested tourism or in other investment areas.

reducing the number of private cars with officials of the state that are selling the surplus in the auctions and the allocation of funds sales for the maintenance of the remaining cars and delete the allocations of the budget .. we have already the government that has taken such a decision but we still need to reduce the number of these
vehicles.

benefit from the accession of the marshes and the number of Iraqi archaeological sites to the World Heritage list to encourage foreign tourism, especially that these areas are safe areas is done by facilitating procedures in the granting of visas to foreign tourists and make way for tourism companies to organize and develop the tourism actually there and included budget paragraph in this
regard.

benefit from the large numbers of foreign visitors the holy shrines in the religious seasons through the imposition of appropriate fees to grant entry visas to Iraq and the applicable system all countries of the
world.

privatize state – owned companies and is losing businesses and cost the budget a lot of money to pay the salaries of employees which by borrowing from government banks, and be privatization in accordance with the mechanisms and controls to ensure the rights of their employees and achieved revenues of the budget

reduction of certain taxes imposed on taxpayers proportions ratios in order to encourage them the tax settling accounts and an end to corruption in this area because the high rates of taxes paid in charge to tax evasion and try to pay bribes to employees in exchange for reducing the amounts and on this basis,

the money coming into the pockets of corrupt most of the money obtained by the government .. here can stakeholders have recourse to the style of privatization also, in the sense that is contracted with companies specialized tax collector to be agreed with those companies to determine the specific ceiling for amounts that must be paid to the government each year,

for example , that determines the amount of two billion dollars a year and the company is concerned to determine the tax ceilings in coordination with the governmental organizations.

to
benefit from surplus cash reserves at the Central Bank to finance the budget deficit .. and do not necessarily have to withdraw the money by about directly but through the investment developmentally, it is no central bank financing of investment projects to create new jobs rather than overburden the budget varying functional a new initiative along the lines of the recent lending to the private sector 6 trillion dinars for the sectors of housing, agriculture
and industry.

Opening up to the private banking sector and benefit from the potential of this sector in the financing of investment projects in Iraq as there are about 57 private banks and has a large cash governor
and important. Reduce the issuance of treasury bonds to finance the deficit and work to find alternative sources for these bonds because they strain the economy in the future.

http://www.alsabaah.iq/ArticleShow.aspx?ID=123867

Iraq needs a unified vision of the government and banks


9/27/2016 0:00

BAGHDAD / Suha Shaykhli
constitute one of the important pillars of the private banking sector in economic activity in all important countries varied activities, as is the main engines in a country like Iraq, especially in the critical period is going through, but the multiple reflections trends of financial distress influenced in the performance of banks and the economy both , despite the availability of human resources and advanced technology.

the attention of the banking expert , Abdul Rahman al – Sheikhli Speaking »Sabah» that the decline in global oil prices and financial pressures because of the war on «Daesh», along with the pressures of the international Monetary Fund and the World Bank and the commitments that dates back to the before 2003 have exacerbated the severity of financial distress.

he Shaykhli to that if these conditions persist , will lead to negative consequences such as the circulation of funds deficit in the banks would be reflected negatively on the funding and other economic activities, particularly in the areas of export domestic production and import, stressing that the indiscriminate import leads a waste of money in hard currency would be good to spend at home and replace them with local products.

rentier economy
and indicates Shaykhli that rentier economy requires speed up finding alternatives to diversify its budgetary resources which are reasonably increase tax rates so as not to put pressure on low – income people, as well as Note tariff customs because a lot of goods are exempt from fees and stop wastage and minimize financial and administrative corruption to develop the economy.

the difficulty of the task in front of the banking sector alone in drawing a road map to avoid the financial crisis , there is no common constants unified economic vision with the government, adding that the economy is still without identity Oomlameh, in addition to the financial and administrative corruption after the proceeds from the sale of oil cash blocs during 13 years there was no fixed budgets for the entry and exit of the money obtained was employed for the development of the productive sector , both public and private.

human resources
and between Shaykhli the role of modern technology in fact banking service and private in the areas of transportation and communications has contributed to the diversification of great services to customers , including automated banking deal in addition to the competencies and human resources has been active since 1993 as Iraq began working since then on the window of a free economy by opening banks
civil.

He continued since that time and even now expanded the scope of work in the private banks and the need arose to post significant human cadres , mostly retired personnel who have experience and competence, but they lack the correct vision of the free economy , which the world is witnessing at the moment,

noting the difficulty that develop these themselves to be part of a free economy, and these staff can be advisers and not the executives, some of whom do not understand anything in dealing with the most advanced technology, even though he has good ideas in the banking and financial matters.

He stressed the need to be experienced now for young people and to take their role in the banking business, but he also, but the majority of banks are looking for practical experience rather than academic experience has We tried pushing young people in practical courses but fared a minor still, however,

some of whom responded to gain experience and some of them are now filled sections administration with the knowledge that their experience does not exceed five years , but the number is small does not fit the actual need for it we are forced sometimes to hiring staff veterans and retirees of them stressing the need to develop human skills match the actual requirements.

Monetary hoarder
the number of private banks suffering from a fiscal deficit forcing citizens to hoard his money in his house , so it is necessary to restore confidence in the financial institution that contributes to the employment of money in projects prompted the central bank ‘s introduction of the company to ensure deposits capital of 100 billion Iraqi dinars, where some experts believe that a small amount where there are some traders owed in the
same covenant larger amounts.

He Shaykhli that hoarding money at home has become a problem, as there are 80 percent of the cash found in government banks and what remains a twenty percent of current cash outside the official government institution, and that 15 percent of the cash deposited and chunky outside the banking institution they are at the merchants, contractors and big capitalists in Iraq and what is left is five percent , which is suffering from problems have hoarded because of the loss of confidence.

he concluded Shaykhli his speech saying: The central bank is the President responsible for ensuring these deposits Bank In all banks in the world when aggregated approval of the legitimacy of their work, first job to do is the central bank approval is assumed under this agreement ensures that deposits the customer in the Middle East and North Africa , the Central Bank which ensures these deposits is , as the central bank ‘s use of a good governance policy in the
performance.

http://www.alsabaah.iq/ArticleShow.aspx?ID=123782

Iraqi economy and bets debts

9/27/2016 0:00

Ali Hassan al – Fawwaz
build a true economic base it requires a range of effective measures, and a realistic vision in dealing with the problems that Effersha- Aadh- mono – economy, and this iswhat makes the sketch plans more difficult and complex programs with outstanding deposits in the scheme of the Iraqi economic system.

Days before the Finance Committee approved in the House of Representatives on the conditions set by the international Monetary Fund on Iraq, in return for agreeing to give financial loans for the implementation of several economic projects, which require a basic guarantees on the part of that, and to a consensus with the policies that the fund performs in the field of loans.

approval of the Commission accompanied by a claim Mr. chairman of the Council of Ministers to take a process with respect to addressing issues of corruption, and the files are corrupt actions, as well as the importance of working to apply compressive programs related to the rationalization of spending is necessary, and activate the work of other sectors of the economy, which means a review of the general budget and write off a lot of assignments unrelated to economic rationalization policy that determined by the Fund.

that has patterns and policies, and has negative effects also centralized economy, and when there is a financial surplus, this Central is straining the national wealth through expenditures undisciplined, and across succumb to trends related to the policy of the central state, and the nature of the orientation of those expenditures, especially his money relationship spending armament, or the money linked to (petty cash) ministries and other institutions and Oivadat officials, which will be room for corruption and illicit enrichment, as well as the direct impact on the waste of public money and inflation phenomena slack in institutional work against the weakness in the planning, organization and rationalization, and in control of the doors exchange, and in accordance with the necessary benefits.

policy «international Monetary»
some shows fear of these trends, and under the pretext undergo Alysaasat the international Monetary Fund, and because the Iraqi economy rentier nature, these fears turn out to be the practices of the Iraqi government has put in front of rejected this some problems, and therefore disable a lot of economic promises that have been agreed upon on these loans,

and perhaps Alemradjahalojerh preparedness credit between Iraq and the international Monetary Fund agreement in Amman pointed to this risk on the part of , and to the importance of framing, all the way for approval of the Fund ‘s terms and adhered to.

referents problem debts originally linked to the existence of widespread corruption in state institutions, and the large Bagr of public money, and to the confusion of banking policies, and to other aspects related to the political with data mysterious, and the nature of the threats and challenges faced by Iraq, which has devoted an increasing spenders security side, compared to reduce the allocations pertaining to economic recovery programs Iraqi in various investment fields,

what makes the commitment to the demands of the international Monetary Fund over Napoleon represented realism, but the possibility of confrontation (forced) with corruption and the corrupt, and according to the monitoring, control and audit files mechanism.

also, this realism is also to preserve the employees and pensioners, and related activities perpetuation of public life citizens, compared Aadhalnzer many of the economic policies that lacks the realism, and exercises its authority as if the Iraqi wealth is depleted, and that limitless spending Profile, which is referred to by the MP Magda Tamimi ,

a member of the economic Committee (b spend three million and 799 thousand dollars to hire a private aircraft, during the last quarter of 2014 and over the past year in 2015, as well as the expenditure of funds and other money on Aivadat officials, in spite of the serious consequences of falling oil prices and the war against al «Daesh» terrorist.)

this information confirms the size of expenditures is necessary, and in the work contexts many of them, Maittalb face resolute, not only committed to the policies of the international Monetary Fund, but to restructure the Iraqi economy and Moisnath and Anfaqath, and to ensure the reduction of the budget deficit,

which is referred to during the discussion of the budget year 2016- member of the Finance Committee MP Hussam punitive , saying: (The 2016 budget deficit will be larger than the budget 2015 deficit », noting that,» budget in 2016 which put deficit to 29 trillion dinars , or the equivalent of $ 25 billion, representing 25 percent of the total budget).

limbering economic
Prime Minister claim to be more decisive in dealing with corruption and corrupt files, it runs from the dangerous Maewagha Iraq’s economic problems, and complications specific to those files and the multiplicity of their references, which relates to issues concerning waste, and money laundering, and the imbalance in the control procedures,

and keep track of exchange and other mechanisms, this Maittalb put decisive action , concerning the procedures for administrative and limbering Alanvaqa, and measures concerning the control and supervision, and a review of the general budget.

The seriousness of the propensity for loans from countries and banking authorities are in the economy put in front of data impose conditions on Iraq, which may make Iraq Amadzera to continue lending policy, distancing from taking (forced) to look for other opportunities to maximize the national wealth, and not total reliance on oil which is exposed to the fluctuation of prices,

and the deterioration under the conflict and political factors tugging, or flooding the oil market affluence, a Maigll of demand relative about a lot of offers, which are adopted by some countries , a political measure against other countries ..

http://www.alsabaah.iq/ArticleShow.aspx?ID=123781

By Omar Sattarfor Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

What’s the status of IMF loan as Iraq dismisses finance minister?

Prior to his dismissal Sept. 21, Iraqi Finance Minister Hoshyar Zebari ran successful negotiations with international banks to obtain financial support for Iraq.

His last achievement was a $3 billion loan from the International Monetary Fund (IMF) that was secured during negotiations on Sept. 9.

These second round of negotiations between the Iraqi government and the IMF took place in the Jordanian capital Amman. The loan addresses the huge deficit in the 2016-17 fiscal budget due to lower oil prices; however, mystery still surrounds the amount of money that Iraq will have to pay in interest and the conditions imposed by the IMF on the Iraqi government.

Iraq originally began negotiations with the IMF during a first round of negotiations on May 14. With the objective of receiving $16 billion in installments over a three-year period, Iraq secured $5.4 billion.

The World Bank delegation participating in the meetings provided an economic development funding vision for Iraq that consisted of a soft loan of about $3 billion to be paid in installments and settled over a long period of time at a very low interest rate.

Mazhar Mohammed Saleh, the economic adviser to the Iraqi government, told Al-Monitor, “The World Bank said that the loan aims to support the federal budget in line with the economic reform paths and the document of reform launched by the prime minister.”

However, the government still has reservations in regard to the loan interests and the conditions of the World Bank at a time when the stated details seem inaccurate, economist Abdul-Rahman al-Mashhadani told Al-Monitor.

He said, “According to the IMF laws on loans, the initial interests of any loan range between 1.4% to 2.6% and fluctuate between 6% and 10% in the second and third installments. As far as the conditions are concerned, they vary depending on the state of the creditor.”

By John Lee.

The Central Bank of Iraq (CBI) has reported that 28 banks and 15 remittance companies took part in its currency auction on Sunday.

A total of $115,388,428 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)