Flexible Management of Foreign Currency

7/19/2018

Dr. Basem Brahimi,
the central bank was able during this year to strengthen foreign currency reserves to more than fifty five billion dollars, this is contrary to the expectations of some international organizations two years ago, which indicated that foreign currency reserves will fall to below 30 billion dollars as a result of the financial crisis Which is presented to Iraq, and perhaps useful to mention here that the IMF is currently adopting what is known as the composite index of foreign reserves without regard to the absolute size of what exists, and by calculating this index in Iraq, it is estimated at (169%) and this confirms adequacy Foreign Reserves Yeh
we have.
The success of the Central Bank in the management of foreign currency and reserves was the result of a number of important steps taken by adopting a new method in the management of foreign reserves through self-management, where the bank performs the renewal of deposits and currency conversion itself according to the latest international practices in this
area.
The movement of the foreign currency has been pursued internally through the introduction of a new system for the series of banknotes and tracking them until they reach the exchange companies. The system has started to operate in electronic form, starting with recording the dollar sequence electronically until the final distribution of the cash categories, Ensures that the dollar does not reach the terrorist organizations listed on the OFAC list, which is one of the world’s most sophisticated systems and a requirement to comply with the distribution of the
dollar.
In order to control the flow of foreign currency issued by the Central Bank instructions for the sale and purchase of foreign currency for the year 2017 and continued to follow the commitment of banks in quarterly terms, as well as to follow a package of administrative procedures to close the exchange rate gap, which contributed to control the sales of the dollar and stability of its price In the same context, user security applications were approved with SWIFT International for the first time, as well as work to comply with all SWIFT network users in Iraq to implement these standards according to the time limit set for them.
The experience of the Central Bank in the transparent and flexible management of foreign currency reserves proved successful and this requires the support of the experiment by all of us.

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

When the Al-Nouri Mosque and the adjacent al-Hadba minaret in Mosul were bombed by the Islamic State (IS) on June 21, 2017, many thought that the landmark mosque and its “hunchback” minaret most famous for its leaning structure were gone for good.

But today, there is some hope of restoring both structures. The reconstruction of the mosque and the minaret will start in June, said Nofal Sultan al-Akoub, the governor of Iraq’s northern province of Ninevah, on May 6.

The announcement follows a protocol signed April 23 between Iraq and the United Arab Emirates, where the latter would commit $50.4 million over five years for the reconstruction of the mosque that dates from the 12th century. UNESCO is also a signatory to the reconstruction agreement.

The mosque is an important symbol for Mosul, and it was used in 2014 as the venue where Islamic State (IS) leader Abu Bakr al-Baghdadi and militants proclaimed a caliphate. Three years later, IS fighters blew it to pieces weeks before their defeat.

The minaret, which was one of the few remaining parts of the original construction, is less known to the international world. It had a design often attributed to Iranian architectural influence, with a white plastered top. It had a significant lean since the 14th century, and its likeness can be found on 10,000-dinar bills.

The main questions on the renovation are whether the amount allocated, which is one of the largest sums committed for a restoration project in Iraq, will be enough and whether the reconstruction will be successful.

Mohammed Nouri al-Abed Rabbo, a parliament member from Ninevah, told Al-Monitor that the next phase would be to take bids for the reconstruction after the government agencies finalized the contract and the blueprints for the work required.

Abed Rabbo added that the reconstruction process “needs more funding than what has been allocated by the UAE.” Pointing out that the monument was essentially razed to the ground, he said that great architectural skills would be required for the reconstruction, and UNESCO — the cultural arm of the UN — would need to be involved.

“There have been efforts since the liberation of Mosul to clean the mosque of explosive devices, remove rubble, document the destruction and collect the damaged authentic relics. The area was cordoned off to prevent the loss of the remaining relics from the minaret and the mosque,” Abed Rabbo added.

Mosul Mayor Zuhair Muhssein al-Araji told Al-Monitor via phone that the reconstruction plan was developed following discussions and meetings with UNESCO. These meetings have taken up costs and conducted feasibility studies. He said he expected the construction to take at least four years.

“The implementation process is likely to take a long time, as it is a large area. Given its great historical importance, the work needs to be meticulous. We need to study the available historical data so it can be restored to its original architecture,” Araji added.

According to professor of modern history at Mosul University Ibrahim al-Allaf, Nur al-Din al-Zanki — who ruled Mosul — “ordered the building of the mosque [and its minaret] in A.D. 1172.”

Allaf said the mosque had been damaged many times in its history. “The Iraqi Department of Antiquities dismantled and rebuilt the mosque in 1942 as part of a renovation campaign,” Allaf told Al-Monitor. “Al-Hadba minaret is the only remaining feature of the original building of the mosque. Due to its historical value, the minaret has been printed on Iraqi banknotes.”

Leafing through the documents he held on the minaret, Allaf said of its structure: “The minaret was 55 meters high [although there are different accounts of its height], while the mosque area is about 6,000 square meters. The minaret’s base is large, and it features Islamic decorations on its four facades. The building of the entire mosque cost at the time 60,000 dinars of gold.”

Louise Haxthausen, the UNESCO director for Iraq, said at the press conference April 23 that the “reconstruction of the minaret is an ambitious project that carries major symbolism for the liberation of Mosul.”

The head of Iraq’s Parliamentary Committee on Media and Culture, Maysoon al-Damluji, who is from Mosul, told Al-Monitor that the National Authority for Antiquities and Heritage will be involved in the restoration, and that she hoped archaeologists and architects from Mosul would be involved.

“The reconstruction project will not only address the physical and structural aspects of the building, but also highlight the cultural and artistic heritage such as the decorations, ornaments, inscriptions and writings,” Damluji said. She urged the authorities to be careful “not to damage the remaining relics during the removal of rubble and the works on the site.”

Meanwhile, Ahmed Kassem al-Juma, a retired professor from the University of Mosul and a UNESCO Islamic monuments and archaeology expert based in Mosul, told Al-Monitor, “No matter how meticulous and careful the work to restore the relics is, the restored building will not bear the same value of the original that was blown up by IS.”

“The minaret and the mosque were characterized by fine technical details such as the marble pillars of the praying room, the cubic crowns, the strip engraved with words from the Quranic verses, as well as the mosque’s mihrab ornamented with arabesque decorations carved on marble,” Juma added.

He said, “The summer prayer mihrab (the outdoor niche in the wall where the imam stands to conduct prayers) is made of marble. It is currently at the National Museum in Baghdad.”

Juma accompanied the UNESCO delegation that toured the site before the launch of the project. “I keep all the documents, blueprints and drawings of the mosque with all its parts, the architectural details, measurements and maps of the original locations,” he said.

“I worked for a full year in a field survey of the minaret and the mosque before IS entered Mosul in 2014. I documented the details of the mosque and the ceramic construction units with more than 500 sketches and technical drawings,” Juma said, adding, “The mosque has great moral, social and religious significance, as it has been in the past … the place to hold meetings and gatherings for religious and official public events.”

(Picture Credit: Tasnim, under Creative Commons licence)

Damaged currency causes great suffering and embarrassment to citizens

5/21/2018

Some circles do not accept dealing with them
Baghdad / Huda al-Azzawi

The Iraqi citizen may be one of the few citizens in the world, who complain about not accepting the deal in the national currency torn or damaged by some departments or institutions or shops, which causes him many problems and verbal quarrels may reach sometimes to conflict with hands in full view of The concerned authorities that did not issue a clear and direct order obligates everyone to deal with the currency in any way.

Currency torn within salaries
Al-Sabah spoke with more than one official and a citizen in order to shed light on this problem.

"At the end of each month, we allocate more than (200) thousand dinars of the currency torn apart equally among the employees of our district," said a member of the committee to receive salaries in a state department.

The employee, who did not want to be named, said that «a lot of problems and verbal quarrels occur between us and the trustees of the Fund, who insist on handing over sums of money smuggled and affixed on both sides, beginning with the employee’s suffering in how to manage this currency rejected by most dealers, Cabs to shop owners ».

She cautioned the employee that all this is happening as a result of the absence of a number of measures and means that the Central Bank of Iraq to take to maintain the prestige of the currency and ease of circulation in the markets.

Currency exchange

As for the burning or buried currency, Hassan pointed out that it is submitted to the Central Bank exclusively to replace them according to certain controls, noting that the bank is working on its part to solve this problem through the processing of Rafidain Bank and Rashid new banknotes and small categories to pay within the salaries of employees,

He pointed out that t
he bank continues to print and improve the banknotes, especially small groups, and pump them to compensate for the damaged paper, while at the same time preserving the currency and accepting it whatever its status as a symbol representing Aadh country and inform the bank in the case of refusal of banks received the damaged currency of citizens.

The suffering of the working class
For his part, said the citizen Rafie Abdul Latif MP, that the working classes and poor are the most social groups are vulnerable to deal with damaged currencies, because this segment traded in many of them, in addition to the same currency to factors that lead to damage early, such as moisture and wet and other It is noteworthy that even the gas stations have refused to accept the torn paper currency,

Therefore, the government and the concerned parties should enact laws to protect the currency as is the case in a number of foreign countries that have issued legal provisions criminalizing those who refuse to deal with them if they are torn or
old.

Stamping of coins

On the re-minting of the coin for small groups and thus salvation from the problem of extinction of the currency currently in circulation, drew Professor of Economics, University of Nahrain Dr. Ngham Hussein Nima, that there were attempts in 2005-2006 to issue a coin of 250 dinars and 100 dinars and 50 dinars and 25

But the loss of the culture of trading in small metal groups among the public forced the Central Bank to stop circulation and convert it into scrap metal and sell it to a trader, so before taking any steps for the introduction of the coin must propagate the culture of trading in small metal categories

And this is certainly the responsibility of the Central Bank of Iraq through the dissemination of financial culture among all segments of the society and openness to the public to raise financial awareness among their ranks and to indicate the importance of dealing with metal groups And keep the currency

Measures to protect the currency
to that said economic researcher Hassan Jamg, said the currency ‘s strength will be in a positive state with the power of the state, the larger the strong and stable state and the economy in the active state, the same presence and effectiveness in the transactions of internal and external of this currency,

and no secret that most communities and nations take A number of measures and means to preserve this currency and to attempt to secure its material and moral status from any external influences that may be natural or by an effective act, such as the case of currency fraud or smuggling abroad,

it may be among the solutions to emphasize the need to respect National currency and dealing Regardless of their condition, and in the case that the currency is very tired or in poor condition, such as torn or semi-damaged, the obligation of government agencies to facilitate the taking or retrieval, and then delivery to banks or the competent banking authorities to destroy them and issue a new currency instead of that damaged.

http://www.alsabaah.iq/ArticleShow.aspx?ID=157412

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on the Governor and a senior official of the Central Bank of Iran, an Iraq-based bank and its chairman, and a key Hizballah official, all of whom have moved millions of dollars on behalf of the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) to Hizballah.

They were designated as Specially Designated Global Terrorists (SDGTs) pursuant to Executive Order (E.O.) 13224, which targets terrorists and those providing support to terrorists or acts of terrorism.

“Iran’s Central Bank Governor covertly funneled millions of dollars on behalf of the IRGC-QF through Iraq-based al-Bilad Islamic Bank to enrich and support the violent and radical agenda of Hizballah.  It is appalling, but not surprising, that Iran’s senior-most banking official would conspire with the IRGC-QF to facilitate funding of terror groups like Hizballah, and it undermines any credibility he could claim in protecting the integrity of the institution as a central bank governor,” said Treasury Secretary Steven T. Mnuchin.

“The United States will not permit Iran’s increasingly brazen abuse of the international financial system.  The global community must remain vigilant against Iran’s deceptive efforts to provide financial support to its terrorist proxies.”

Today’s action cuts off Iran’s use of a critical banking network and follows last Thursday’s disruption of an IRGC-QF-associated currency exchange network procuring millions of dollars through the UAE.  Both actions seek to stifle Iran’s ability to abuse the U.S. and regional financial systems.  These actions continue the aggressive campaign against the IRGC and its proxies that the Treasury Department has led under this Administration.

These actions build upon President Trump’s May 8 decision to cease the United States’ participation in the Joint Comprehensive Plan of Action (JCPOA) and begin reimposing U.S. sanctions that had been lifted under the JCPOA, including against the Central Bank of Iran.

The IRGC-QF was designated pursuant to E.O. 13224 on October 25, 2007.  The IRGC-QF’s parent organization, the Islamic Revolutionary Guard Corps (IRGC) itself was also designated on October 13, 2017 pursuant to E.O. 13224 for its support to the IRGC-QF, and consistent with the Countering America’s Adversaries Through Sanctions Act.

Hizballah was designated by the Department of State as a Foreign Terrorist Organization in October 1997 and as an SDGT pursuant to E.O. 13224 in October 2001.  It was listed in January 1995 in the Annex to E.O. 12947, which targets terrorists who threaten to disrupt the Middle East peace process, and also designated in August 2012 pursuant to E.O. 13582, which targets the Government of Syria and its supporters.

Iran’s Central Bank Governor and a Senior Staff Officer

OFAC is designating Valiollah Seif, Iran’s Central Bank Governor, for assisting, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of, the IRGC-QF.  Seif has conspired with the IRGC-QF to move millions of dollars through the international financial system in a variety of foreign currencies to allow the IRGC­QF to fund its activities abroad.  Seif has also supported the transfer of IRGC-QF-associated funds to al-Bilad Islamic Bank, an Iraq-based bank which is also being designated today.

OFAC also is designating Ali Tarzali, the assistant director of the International Department at the Central Bank of Iran, for assisting, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of, the IRGC-QF.  Tarzali has worked with Hizballah and proposed that the terrorist group send funds through Iraq-based al-Bilad Islamic Bank.

As a result of today’s actions, Veifollah Seif and Ali Tarzali are subject to secondary sanctions pursuant to the Iranian Financial Sanctions Regulations (IFSR), which implement, among other authorities, the Comprehensive Iran Sanctions and Divestment Act of 2010 (CISADA).  Pursuant to the IFSR, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly facilitates a significant transaction for designated agents or affiliates of the IRGC or persons designated pursuant to E.O. 13224 in connection with Iran’s support for international terrorism or E.O. 13382 in connection with Iran’s proliferation of weapons of mass destruction and their means of delivery.

Today’s designations of Valiollah Seif, Iran’s Central Bank Governor, and Ali Tarzali, assistant director of the International Department at the Central Bank of Iran, do not extend to the Central Bank of Iran.  However, due to President Trump’s May 8, 2018 decision to cease the United States’ participation in the JCPOA, as of August 7, 2018, the United States Government will re-impose sanctions that extend to certain transactions with the Central Bank of Iran, including sanctions on the purchase or acquisition of U.S. dollars banknotes by the Government of Iran.  Furthermore, on November 5, 2018, additional sanctions will be re-imposed on persons knowingly engaging in certain significant transactions with the Central Bank of Iran.

Al-Bilad Islamic Bank and Its Chairman and Chief Executive

OFAC is designating Aras Habib, the Chairman and Chief Executive of Al-Bilad Islamic Bank, for assisting, sponsoring, or providing financial, material, or technological support for, or financial or other services to or in support of, the IRGC-QF.  Aras Habib enabled the IRGC-QF’s exploitation of Iraq’s banking sector to move funds from Tehran to Hizballah, jeopardizing the integrity of the Iraqi financial system.  Habib, who has a history of serving as a conduit for financial disbursements from the IRGC-QF to Iranian-backed Iraqi groups, has also helped provide IRGC-QF financial support to Lebanese Hizballah.  Al-Bilad Islamic Bank is being designated for being owned or controlled by Aras Habib.

As a result of today’s actions, Aras Habib and Al-Bilad Bank are subject to secondary sanctions pursuant to the IFSR, which implement, among other authorities, CISADA.  Pursuant to the IFSR, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly facilitates a significant transaction for designated agents or affiliates of the IRGC or persons designated pursuant to E.O. 13224 in connection with Iran’s support for international terrorism or E.O. 13382 in connection with Iran’s proliferation of weapons of mass destruction and their means of delivery.

Hizballah Official Working with IRGC-QF

OFAC is designating Muhammad Qasir (Qasir) for acting for or on behalf of Hizballah.  Qasir acted as a critical conduit for financial disbursements from the IRGC-QF to Hizballah.  Qasir has worked with the IRGC-QF to transfer funds.

Qasir is subject to secondary sanctions pursuant to the Hizballah Financial Sanctions Regulations, which implements the Hizballah International Financing Prevention Act of 2015.  Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly facilitates a significant transaction for Hizballah, or a person acting on behalf of or at the direction of, or owned or controlled by, Hizballah.

Identifying information on the individuals and entities designated today.

(Source: U.S. Department of the Treasury)

Local produce and foreign exchange rates

5/7/2018

Walid Khaled Al-Zaidi
Foreign exchange rates in each country are affected by demand and demand. We in Iraq do not go out of this economic process. Foreign currencies such as the dollar or the euro are rising and their exchange rates fall mainly on the amount of demand by state institutions, private sector companies or individuals To facilitate the process of obtaining goods or services from abroad or in the case of travel to the countries of the world

Different.
What is important in this area is the request of the State institutions for foreign currency as the largest source for these currencies, because of its wide circle in economic relations and trade exchanges with different countries of the world dealing with foreign banknotes, which we have difficult currencies, or values ​​of purchase
High.
Among the things that the Ministry of Commerce needs from foreign originators are the ration card items, which are available only through the purchase of companies specialized in the supply of food mainly, to deal in foreign currencies, especially the dollar most traded in the world markets, where Iraq believes the ration card items from abroad Over the past period, it is necessary to buy (withdraw) large amounts of the dollar from the foreign exchange market to fill the
purchase.
Which keeps the exchange rates of the dollar and the rest of the foreign currencies for the exchange rate of the Iraqi dinar is
relatively high .
The recent action of the Ministry of Commerce, which decided to secure the flour and sugar from the local product for the purpose of distribution within the ration items to citizens.
The most important of which is the process of buying these materials from two local crops depending on the national currency (dinar), which reduces the amount of demand for amounts as funds allocated in dollars and other foreign currencies To buy these articles of global origin and ease the financial burdens that weigh heavily on the state treasury
.
In economics and finance, the value of needs increases mainly on the increase in demand and vice versa. The value of the dollar is lower than the value of the dinar adopted by the Ministry of Commerce to buy flour as a domestic crop and sugar as a crop and a
national product .
Such behavior is an important fact that raises a very important issue for the nature of external and internal factors, which contribute to a large extent to the actual need to fall within the framework of national public requirements of domestic payments.
It should be recalled that a group of experts and specialists in financial and economic affairs have been encouraged to process the revaluation of the Iraqi dinar against the value of the dollar and other foreign currencies depending on the frequent circulation in the purchase of ration items and not limited to international purchases that rely on foreign currency from external sources, Is a practical way out of some of the dilemmas suffered by the Iraqi national economy related to the large foreign exchange of the proceeds of Iraqi oil sold in the world crude oil markets.
Iraq, which has risen and overcome many of the challenges and difficulties on the path of emancipation is today in a better way than to open the way for reforms and economic treatments studied that would rid the country of many constraints and self-reliance and the activation of benefits based on national capabilities and capabilities

The Central Bank reveals how it deals with counterfeit banknotes

4/18/2018



The Central Bank deals with counterfeit banknotes through confiscation and stamping them and sending them from banks to the Central Bank.


The Central Bank said in a statement received by the news agency N , a copy of it, that "the counterfeit banknotes at the time of disclosure, they are confiscated and provide the holder to support the details of those securities of the trustees of the Fund in the Central Bank and its branches and banks and all branches and the competent authority that confiscated,

" noting that " A special record shall be kept from each treasurer setting the number of counterfeit banknotes and their categories and the name of the depositing customer appearing in his deposits and account number.

The bank said that "counterfeit banknotes will be stamped with the stamp of fraud, which bears the name of the bank and branch after being confiscated from the bank and sent to the Central Bank under an official letter."


The bank pointed out that "the Treasury and Issuance Department sends weekly, monthly and quarterly statistics on the details of the counterfeit documents discovered or received by categories and the recipient to the relevant authorities which the Governor considers to be informed."
http://www.non14.net/99518/

The Central Bank determines the conditions of non-negotiable banknotes
4/16/2018


Baghdad / … The Central Bank of Iraq, on Monday, the terms of banknotes are not valid for trading, which is compensated after depositing in the bank.

The bank said in a statement received by "Iraq News" that "the banknotes are not valid for trading if applicable one of the descriptions and compensates the holder of their full value as soon as they are submitted to government and private banks and subsidiaries and deposited in the Central Bank and the corresponding amount in their accounts."

The bank said that "one of the conditions of banknotes not valid for trading is if the banknotes are smuggled or damaged, although not torn and not lose part of it, in addition to if the paper was damaged as a result of exposure to water," indicating that "the banknote will be invalid in the case of The banknote consists of two parts "different numbers".

"The other conditions are that the banknote is affixed to a transparent tape or more along its length or width, or if the banknote was cut in more than one angle or loaned," the bank said, adding that "the other conditions are if it contains seals or Writings do not affect the appearance of the outside, or if the bank lost 50% of its area.

The bank noted that "other conditions also if the monetary paper stuck strange materials and affected the features such as inks, dyes, glues, fats and oils, in addition to if the banknote perforated puncture or more and randomly."

http://aynaliraqnews.com/index.php?aa=news&id22=96339&lang=

0000 USD = 10000 IQD, on 06/03/2017. د; Subunits: 1/1,000 fils; Coins available: 25, 50, 100 dinar; Banknotes available: 50, 100, 250, 500, 1,000, 5,000, 10,000, 25,000 dinar; Central 9 May 2013 Iraqi dinar was introduced in 1931, the Iraqi dinar has replaced by British pounds into being pegged to the …