By John Lee.

The Central Bank of Iraq (CBI) has reported that 29 banks and 18 remittance companies took part in its currency auction on Tuesday.

A total of $134,305,728 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

Hafiz: Required sound management to overcome the financial crisis

5/30/2016 0:00

BAGHDAD Shokran Fatlawi
discussed economic seminar organized by the progress of policy development institute on the IMF loan to Iraq, and to clarify misunderstandings among different circles about it details, it came during a seminar organized by the progress of the Development Policy Institute in the presence of a financial advisor to the prime minister and a group of finance and economy experts.

And initiated the seminar titled « The role of foreign loans in resolving the financial crisis» and attended the »morning» word to the director of the institute , Dr. Mehdi al – Hafez said through which the country faces a financial are conditions described Balassabp,

pointing to the need for sound management of real and review the political, financial management, pointing out that the country in its current state it needs to make the right decisions based on sound management, according to the standards of corporate governance.

International loan details

For his part , Economic Adviser to the Prime Minister Dr. occur. The appearance of Mohammed Saleh international loan details , saying that the relationship began with the World Bank and the International Monetary Fund in 2004 , and that Iraq is a founding member of the bank ‘sin ternational fund since 1944

, adding that that relationship foundered in 1977 after the former regime had decided not to provide the Fund ‘s statements on the economy Iraqi.

He noted that the relations returned with the two organizations to normal after the fall of the regime in 2003, pointing out that these relations organized by the UN Security Council , which committed Iraq positively engages with the International Monetary Fund and the World Bank in order to reach the settlement of foreign debt through the agreement «Paris Club» ,

which is an order binding decision and is not an option for Iraq that the recent stability is part of the regional and international economic stability.

the «Paris Club» an informal group consisting of Mmoliyn finance officials from 20 countries of the largest economies in the world, offering financial services instead of declaring bankruptcy or debt relief cut interest it, and cancel the debt of highly indebted countries.

Saleh added «World Bank» request from Iraq to prepare detailed breakdown of the economic its potential and infinite money and funds available to the state institutions, as well as knowledge of dues Contractors details accompanying the performance of the Ministry of Finance and re bank restructuring Rafidain and Rasheed governance and the establishment of the company to guarantee deposits and ensuring social welfare and the ration card and displaced communities.

Net exchange real

He hinted that the IMF and World Bank deal size distress at more than $ 50 billion for the period from 2016 to 2019, after an evaluation process by the Fund and the World Bank , which completed the Iraq mission steps , including, explaining that access to international loan easily not taken but after taking a series of measures, including access by the Fund on the net real exchange for Iraq during the
year 2015.

He noted that the fund after the follow – up to the exchange discovered Salaries exaggeration as well as inflation and other passages, prompting the Fund and the World Bank to demand from Iraq , including the oil price of $ 35 instead of 45 and the export of 3.6 million barrels per day, bringing the deficit to $ 11 billion ,

pointing out that he later deleted several paragraphs remaining $ 6 billion a year fund and the bank Internationals take care paid off.

he concluded in favor of clarifications on the loan, that the agreement Iraq is required to issue the law of financial management, as well as the introduction of the integrity Commission as an active player in the independent follow – up process and adopt a document of the United Nations anti – corruption,

accompanied by an amendment of the Central Bank Act restricts the Ministry of Finance of new foundations and subdue external and internal debt in the country to scrutiny as the domestic public debt amounted to 37 trillion dinars.

It should be noted that the IMF agreement with the federal government in the absence of any clause referring to allocate a portion of the Kurdistan region , where the provincial government took the initiative to subdue its oil exports to a foreign auditor for submission of the federal government , according to an economic advisor to the Prime Minister.

Government bonds pay dues adoption ensures the continuation of projects

5/29/2016 0:00

Thamer Alheims
choice international loans or withdrawals is Msthabayn Reserve, said that they were not makrooh, in light of the financial health would reimburse the government through dues companies and contractors Treasurys, who docked their projects in the period before the drop in oil prices and the measure, indisputable, took under pressure this circumstance omnipotent, to ensure the continuation of infrastructure projects and other vital state projects.

in Basra, for example, the benefits companies and projects 30 billion dinars.

If completed after the surrender deferred payment bonds for a year, we stand in honor of this achievement in this circumstance as a substitute for acceptance of pre – conditional loan procedures may reach the level of dependence to stretch to the lower segment of the community to lift the subsidies and support for goods and services in a situation does not react with the terms of the loans most likely as the withdrawal of the cash reserves of the most serious.

in light of this action, which we hope to be active in other key areas, where have to revise the sheer volume and jump over the quality in the area of inflation , the administrative apparatus of the state rising from (800 000 government employees at the end of 2003 to nearly 4 million and a half million in early 2015)

and this is incompatible with the (liberal school), what can be likened to the transformation of the state to the insurance company (for three and a half million) retired government and four and a half million employees are in government service salaried with an annual average of nearly identical per capita

GDP amounting to estimate b (US $ 6,600) , according to a d.Appearance of Mohammed in one of its publications, we note that the number of workers and retirees for twelve years (2003 2015 equivalent to ten times the workers before 2003).

This means that about four million were employed for the period. This slide resulted in the current oil revenue does not cover paid as a nearly 60 percent from the previous budget operational counterbalance Although the rentier state centered Based on this policy,

but the private sector overall remained out of the game, it is still unemployment hit cords , despite the jump employment, as a result of weakness relationship between state capitalism and market capitalism through operational capacity investment projects the government at rates not exceeding 27 percent of the investment allocations up to 2014.

this huge challenge and Ashkalath that the state no matter how hired, despite the futility of economic employment, they do not eliminate unemployment and poverty , which are the basis of the security vulnerability and economic ,

as that market capitalism is unable to contribute to deserve attention, so the purpose of stopping breeding losses must be a process to put an end to slouch in the government apparatus through measures to be taken for a slice of staff by 2003 , a reduction of the retirement age and years of service to open the way for the new generation.

the reduction of pension age for women to ten years and to encourage early retirement for both sexes through the payment of a bonus last service treasury bills for a very rewarding so that the holder can establish the work of his or other post project or buy shares in the mixed sector companies or the private sector.

authorized the target population is the staff after the (2003 ) who have served more than ten years must pay the largest possible number of them to leave without pay to try his luck or early retirement bonus rewarding treasury bills.

The executive branch is responsible for the decline of evolution through poor and the weak performance of government officials, as an employee ‘s employment rate ,according to statistics 17 minutes as it did not address unemployment. In all cases , and despite the non – renewal of appointments, the many Msltzmath (bonuses, services and promotions).

So do not be liberated budget this device that are working hard down sample Atralh the electronic government because it intersects with the agility and his performance is known.

And does not need to be convinced beforehand that this device is too costly and confusing for any project or say goodbye to shift the slack, and this does not mean in any case , looking down on the ambitious young cadres and experts who did not find room for their ambitions in government jobs, the private sector , we welcome such cadres to find themselves in it.

Central Bank of civil and banking relationship paint economy

5/28/2016 0:00

Abbas Younis Anzi
released Iraqi Central Bank Law by matching US and European laws which made ​​thebank fully independent institution and it entrusted the responsibility of formulating monetary policy and determine the local currency ‘s exchange rate.

But the basis of thecrisis in the economy , including houses and money, is Billabih vision and confusion in the definition of the nature of the economy and its mechanisms, does our economic system belongs to the school of free economy ,

as stipulated in the Constitution? System or believe in state intervention at all? Or a socialist economic system of the former Soviet – style? .. But it seems the economic landscape selective beyond the border.

However central it has managed over the years to maintain a quasi – exchange rate fixed for the Iraqi Dinar as a result provide significant financial returns resulting from oil exports improved and the steady increase of the price of a barrel of oil, but there were no joint studies fruitful with the state institutions involved in economic affairs

since leaving the higher exchange rate of the Iraqi dinar price of a negative impact on sectors of the real economy and strongly contributed to enhancing the content of the rentier economy and the overall adoption and awful on the proceeds of

there is a contradiction serious between the turbulent economic policy after 2003 and between monetary policy adopted by the Central Bank and the nature of the relations that linked the Central civil banks,

which was established under law No. 94 issued in 2004, receded those relationships actually limited to a single subject , a currency auction has become the subject is al – Faisal in the central bank ‘s relationship banks

in the explanation of this fact has reflected the nature of the rentier economy , which is built by the state with all its institutions on the work of the majority of private banks and now are other works unilateral actively represent a maximum of auction by building currency held by central and dispense with the rest of the banking activities of known or employ them for his service,

and certainly can not blame entirely on departments of private banks as they exist under conditions very bad work at all levels every activity of any size remains fraught with serious risks as a result of social decline.

The financial market liberated from the restrictions entirely rely on the laws of the market, particularly the subject of supply and demand and consumption is a measure of engine macro -economic operation and these laws are that allow domestic banks to achieve double the profit as a result of handling the goods, and this is present in all world markets , free and not limited on Iraq.

the adoption of Iraq entirely on the import of all he needs makes consumption index at its highest this leads inevitably to a significant rise in the banks ‘ profits as a result of circulation necessary to process import financial commodities, where we find that the fundamental obstacle that prevents traders from dealing transparent and publicly is the issues of customs and taxes,

and certainly there is a big contradiction between the fact that the country ‘s economy Rieia where the oil resources of the whole go to state and between the presence of tax rates and high customs duties, financing of the entire activities of the state depends on oil revenues and not on the tax and customs,

it is fair and necessary to reduce the tax and customs to zero limits to narrow into the possible money laundering to the least we can even prevent it, where traders have in front by a roomy and safe to announce their activities without resorting to methods of fraud and evasion on the other hand will fill a big door for corruption in more than one facility,

or traders are forced to pay tax and customs in advance , making them indispensable in the manipulation and game hide as happened imposing ratio known 8 percent.

Alnasiri must reconsider the structure of funding

5/26/2016 0:00

BAGHDAD – Shokran Fatlawi
confirmed expert in banking affairs need to develop a proactive plan to prevent the bankruptcy and the collapse of some banks that would sustain the banking wheel under the current circumstances by using tools for new applications monetary policy mechanisms.

He noted the economic consultant Baghdad forum Samir Abbas Alnasiri in his speech « Sabah », to the importance of amending banking legislation governing the banking work for the advancement of the services provided to the public beneficiaries.

alluded to the need to reconsider the instructions and implementing regulations and guidance on application of monetary policy as well as a proactive regulatory system for accurate monitoring of implementation in relation to the external switch is private auctions currency which is overseen by the central bank and the development of new mechanisms for external conversion and documentary credits,

as well as study the possibility of leaving the currency auction and find a substitute for it ,to control the dinar exchange rate against foreign currencies.

and Alnasiri suggested that the issuance of small and medium companies Act and Minor to help create jobs and reduce the high unemployment rates exceeded 28 percent and the issuance of the deposit Insurance Act, the credit guarantee and loans and the establishment of professional companies in order to contribute to the economic and social development plans and poverty reduction ratios.

He continued, in spite of the central bank initiative firing Strutijeth for the years 2016-2020, to achieve financial stability and development of the banking system according to the points of new mechanisms of action, but that does not prevent the central do set priorities through cooperation with the Ministry of Finance analysis of the current financial situation and is expected to banks for 2016

and determine the need actual liquidity to sustain cash trading in the Iraqi market and stimulate the economic cycle in all areas. move the economic cycle and sees Alnasiri to activate the financing of small and medium – sized private enterprises it is a social objective

and economically a special urgency to have the Iraqi Central Bank the role of supervisory and regulatory effectively the priority, as well as development initiatives and activating and expanding and doubling the allocations to 10 trillion dinars.

He pointed out that the structure of the current bank financing riddled with obstacles and failures, pointing to the importance of increasing the credit product and financing from banks and activate their contribution to the diversification of the various aspects of investment and reconstruction and advancing the process of development and move the economic cycle in the country.

adoption of censorship proactive also suggested activating the role of state banks and specialized banks and private banks to provide soft loans for the national private sector, as well as finding solutions to the problems of tax accumulated and the benefits resulting from the owners of the stalled projects for production solutions is accompanied by the development of short and medium –

term fiscal policy depends proactive control, audit and evaluation to be continuous coordination between fiscal and monetary policies and the development of operational mechanisms in this area.

secure legal requirements promised Alnasiri secure legal and technical requirements for twinning widespread among government banks and private banks on the one hand and between the international banks on the other hand, evolutionarily target of the payments system and modernize and regulate monetary and financial trading operations

which according to the latest modern electronic banking systems applied in the countries of the world accompanied by a review and evaluate and re – classification of banks according to the efficiency standards of performance and activity adoption based on the international standards in the process of review and evaluation accredited international neutral accounting institutions and under the supervision of the Central Bank.

He concluded Alnasiri his speech by referring to the importance of the Central Bank to prepare an analytical study to review the reality ofbanks in the light of the financial results for 2015 and to take critical decisions Bhikltha and merging small size and weak banking activity with large and discreet banks

with aview to the development of the private banking sector, such that the banking merger specific rules and means to address the problems and constraints of working for the sector banking and move him from the role of banking to the developmental role.