If implemented in a country where the central bank struggles to impose its will, the move devalues the official rate of the dinar to the dollar for such …

Governor of the Central Bank of Iraq participates in the meeting of the Board of Governors of central banks
9/19/2018


His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Ismail participated in the meeting of the forty-second session of the Board of Governors of Arab Central Banks and Arab Monetary Institutions in the Jordanian capital Amman and under the patronage of the Prime Minister of the Hashemite Kingdom of Jordan Dr. Omar Al-Razaz.

The meeting was chaired by Mr. Mohammed Mansour Zemam, Governor of the Central Bank of Yemen and Chairman of the current session of the Board in the presence of the Governors of the Central Banks and the Arab Monetary Institutions, as well as observers from the League of Arab States, the General Secretariat of the Cooperation Council for the Arab States of the Gulf, the Union of Arab Banks, Middle East and North Africa, as well as the presence of Arab executives at the IMF and the World Bank and the Director General of the Bank for International Settlements.

The participants discussed the regional and international monetary, financial and economic developments and their repercussions on the Arab countries, as well as discussing the promotion of credit for small and medium enterprises, financial inclusion files and support for the Arab banking sector.

https://cbi.iq/news/view/856


The central bank announces its sales rise to 191 million dollars
9/18/2018


The central bank’s foreign currency sales rose Tuesday to $ 191.56 million from $ 106.19 million in Monday’s auction of $ 85.37 million.

The exchange rate was 1190 dinars per dollar in the auction held with the participation of 35 banks and one company only for financial transfer, "the bank said in a statement.

The statement added that ‘these sales are the results of the auction on Wednesday,’ explaining that ‘total sales totaled $ 225.96 million’.

He added that ‘the volume of funds sold to strengthen banks’ assets abroad amounted to 190.06 million dollars, while the total amount of cash sold at $ 1.5 million’.

He explained that ‘the sale of amounts transferred to the accounts of banks abroad at the price of 1190 dinars per dollar, while the cash sale will be at the same price’.

http://www.ikhnews.com/index.php?page=article&id=172260

Central Bank: Most private banks did not reach the level of ambition
9/18/2018

The governor of the Central Bank Agency on the relations, on Tuesday, the number of private banks in the country of 70 banks, stressing that most of these banks did not reach the level of ambition.

"The number of private banks, transfer and exchange companies exceeds the need of the market, as we did not grant any new license to open a commercial bank or a license for a banking company.

We also canceled the financial transfer companies, in the presence of an intention to restructure the banking companies," Alaq said in a statement. Leads to greater control over them and there is a plan to merge some banks. "

He added that "licenses have been granted for the opening of a number of Islamic banks based on the facilities provided by its law, as the House of Representatives put a paragraph to help establish it, reducing the capital required at the establishment."

"There are currently 70 banks operating in the country, 20 of which are branches of foreign banks, but most of them are newly formed, so it did not reach the level of ambition, and these banks worked under exceptional circumstances passed by the country.

"As you know, the main task of the banks is to provide credit through the granting of loans and other services, in return, take the funds of depositors and give them a percentage of interest, but Iraqi banks in general have a great difficulty in doing this Activity.

When a loan is granted, the borrower often does not meet its repayment despite the high collateral given by the banks and the high interest rate, as borrowers may be up to 20 percent. "

He pointed out that "the problem is that the bank when it starts its actions against the borrower, such as the seizure of the property, for example, faces a significant delay in legal proceedings by other parties, in addition to threats of tribal or partisan, and this makes banks afraid to grant loans.

http://www.knoozmedia.com/361531/%D8…-%D9%84%D9%85/

Central Bank: The conversion of the dollar from Iraq to Iran has been suspended since 2012
9/17/2018

The governor of the Central Bank Ali Alalak, on Monday, that the conversion of the dollar from Iraq to Iran has been suspended since 2012, while pointed out that the past months witnessed the transformation of Iraq to the normal follow-up after it was in the gray area.

"The conversion of the dollar from Iraq to Iran has been suspended since 2012, and the Iranians are aware of this," al-Alak said in an interview with Al-Sabah newspaper.

"Any dollar transfer will go through the US Federal Reserve, which will stop the transfer," he said.

He explained that "Iraq was classified in the financial organization responsible for the classification of countries within the framework of money laundering, within the gray area, and his way to enter the black area, to become a financially isolated area and the report of the assessment of Iraq contains 700 observations,"

noting that "After hard work removed All reservations and turned us Iraq from the gray area to the area of ​​continuous follow-up, and in the past months we have become a normal follow-up area, we are the case of any country in the world. "

http://aletejahtv.com/archives/254321

Governor of the Central Bank of the {morning}: cash reserve is approaching 60 billion dollars
9/17/2018

An initiative to rehabilitate Baghdad bridges in coordination with banks
Baghdad / Abbas Abboud and Ahmad Abed Rabbo
The governor of the Central Bank Ali al-Alaq that the size of reserves of hard currency up to 60 billion dollars, and covers 170 percent of the size of the mass of the local currency, while revealing the existence of a plan for the future restructuring of the Iraqi currency.

Al-Aalak said during a dialogue with him "morning", that the Central Bank will launch in coordination with the banks initiative to rehabilitate the bridges of Baghdad, similar to the Baghdad initiative launched to rehabilitate the public squares. Of things to be calculated for the central bank is the exchange rate stability, how is it? What are your future plans in this direction?

– The stability of the exchange rate is one of the macroeconomic features, and is an important indicator of the stability of the country economically, which makes it a key task of the Central Bank, as stated in the law, because it is directly linked to the purchasing power of citizens, This means that any disruption in the standard of living of the citizens may increase the challenges faced by the government, so we have worked hard to stabilize the exchange rate and reduce inflation rates. .


We have succeeded in overcoming a very complex and challenging phase, especially when the country’s oil revenues have fallen to 70 percent in some months, in light of the war against terrorist gangs by setting a set of balances that have made inflation no more than 2 percent.



Will the value of the Iraqi dinar remain the same or is there an intention to raise
it?
– The exchange rate in Iraq follows a monetary policy based on the fixed exchange rate of the dinar and this does not mean absolute stability, may come under some circumstances may increase or reduce it according to various economic data.


We are currently moving towards no change in the value of the dinar, as it is not right to make changes under completely unstable conditions, which may confuse the overall situation. Why are not there large quantities of small coins, and what is the reason for the absence of metal groups?

– We have small currencies in the appropriate quantities, but the frequent movement and circulation and use and lack of attention to lead to damage quickly, as the Central Bank of Iraq after 2004 to mint coins in large quantities but did not receive acceptance or popularity in the local market, which caused losses, Because the market has been accustomed to paper currency making it difficult to market the coin.

So the central bank recently put in place a plan to compensate for the existing small categories damaged, as next month will be large quantities of them will meet the needs of the market completely.

On the other hand, we receive a lot of damaged banknotes and replace them with new banknotes through an expanded committee that checks them to make sure they are correct. Our doors are open to citizens to receive any amounts of damaged currency. Where does the central bank print the local currency?

– We print in international companies
, possess enough capacity to print banknotes within the advanced security standards in France, England and Germany, the design is by the Central Bank, and the paper used in printing is very high specifications.

The Central Bank is trying to print non-counterfeit paper. We have succeeded in this. The counterfeit quantities are very few and negligible, and we have very advanced equipment in the electronic and electronic detection of counterfeit currency, called comprehensive machines, so we do not rely on human effort Just.

The central bank has recently offered the category of 50,000 dinars, is there an intention to put the category of 100 thousand? – These ideas are traded by the Central Bank, but at the present time, there is a tendency in some countries to reduce the categories of currencies so as not to be stored or counterfeited, and that the currencies of small groups, may lead the citizen to bid farewell to banks for the difficulty of storage.

But generally the central bank has a future plan to restructure the Iraqi currency, including the deletion of zeros, but that plan needs to deliberate steps, and a stable situation in order not to be exploited in the fraud and other.

How does the dollar sell in the central bank or what is known as the currency auction? – It is a common mistake now to talk about the currency auction in some media and social networking sites, while this auction has been suspended since 2006, but what is happening now is the process of financing the foreign trade of the dollar, covering the country’s needs for import in addition to the requirements of travel and treatment And the transfer of profits resulting from investments and others.


The government gets the dollar through the sale of oil and then replace the dollar with the Iraqi dinar from the central bank, because the balance of the state’s financial dinars, and then the central bank to withdraw the local currency from the market and replace them in dollars, to maintain
monetary stability .

The process of withdrawing the dinar by meeting the market need of the dollar represents a revaluation of the local currency, and this method does not represent the diligence of the Central Bank, as its law provides for the sale of foreign currency in a simple and unconditional manner, in addition to the existence of an agreement between Iraq and the IMF International approved by the House of Representatives in 2008 provides for this.


The situation in Iraq is different from other countries, because of the lack of diversity in the financial revenues of hard currency other than oil, as the Iraqi private sector is unable to support the local market in dollars through imports, which makes the market depends entirely on trade finance Through the
central bank .

How much is the central bank’s reserve of foreign currency and what is the size of the local currency’s currency?

– The size of the cash reserve of foreign currency is always measured to the size of the currency mass of the local currency in the market, in addition to other international standards, especially as the International Monetary Fund recently developed a new standard, which added the ability of the state to cover trade and debt repayment.

As for the Central Bank of Iraq, it has a reserve of foreign currency is very comfortable within international classifications and is ahead of other countries, compared to the mass of cash offered by the local currency, as the reserve is close to 60 billion dollars, compared to 43 trillion dinars, which means it covers 170 percent of the size The monetary bloc, especially as the Arab Monetary Fund considers Iraq to be a country that exaggerates the size of reserves of foreign currency.
Are there any bodies that monitor the reserves of foreign currency and can the central bank act in such funds?

– The supervision is subject to several levels, foremost of which is the Internal Control Department of the Central Bank, in addition to an audit committee composed of independent observers who report to the Board of Directors of the Bank.

The Committee also supervises the Internal Audit Department of the Central Bank. In addition, On the final accounts of the Central Bank, the data of this office are internationally accredited by the international financial institutions, not to mention the ongoing monitoring by the Office of Financial Supervision.

The Central Bank of Iraq is the most institution subject to the multiplicity of regulatory bodies, and can not be disposed of any amount except within the standards provided for in the law and adopted internationally, so the rumored lack of reserve or conversion are all false rumors.

What happened during the past years, from the decline in oil prices sharply, so did not stop the revenues in some months to fill the salaries of employees, made the Central Bank to two options, either the collapse of the situation or intervention to save, so the government issued treasury transfers worth 20 trillion dinars,

And we bought them from the market, which affected the size of the cash reserve at the time, but we maintained the balance by maintaining the reasonable level of this reserve in exchange for meeting the need for the budget and maintain the exchange rate and inflation rates, this achievement is recorded to the Central Bank and has become highly praised by international organizations. How do you evaluate your relationship to the country’s fiscal policy?

– There is a close relationship, but along the line fiscal policy negatively affects the monetary currency, because the first may take certain trends do not benefit the second, for example when he notes a decline in foreign exchange reserves draws criticism to the central bank, but in fact When the budget law recognizes a financial deficit and provides for the deficit to be met by treasury transfers,

it means that such remittances will be financed by the central bank. Is the number of private banks exaggerated, and how do you evaluate their work? – When I took responsibility, I found that the number of private banks and transfer and exchange companies outweigh the need of the market, as we did not grant any new license to open a commercial bank or leave a banking company, and we have canceled the financial transfer companies, with an intention to restructure banking companies, leading to control The biggest is there is a plan to merge some banks.


But granted us licenses to open a number of Islamic banks based on the facilities provided by its law as the Council of Representatives put a paragraph to help establish the reduction of capital required at the establishment.

There are currently 70 banks working in the country, 20 of which are branches of foreign banks, but most of them are newly formed, so did not reach the level of ambition, and these banks worked under exceptional circumstances experienced by the country. The initiatives of private banks to lend to citizens are very limited. Why?

– As you know, the main task of banks is to provide credit through the granting of loans and other services, in return, take the money of depositors and give them a percentage of interest, but Iraqi banks in general have great difficulty in the practice of this activity, when you grant a loan, often does not meet the borrower to pay on Despite the large guarantees taken by banks and the high interest rate, as borrowers could be up to 20 percent.

The problem is that when the bank starts its actions against the borrower, for example, the property is facing a significant delay in legal proceedings by other parties, in addition to tribal or partisan threats, which makes banks afraid to grant loans.

Recently, there has been talk of replacing the dollar with other currencies in remittances with Iran because of US sanctions. How will this happen?

– The transfer of the dollar from Iraq to Iran has been suspended since 2012, and the Iranians are aware of this, as the conversion in other currencies, because any transfer of dollars will pass the US Federal Reserve, which leads to the suspension of the transfer.

Is there a control of the Central Bank in its branches in Kurdistan? – There was an abnormal situation in the status of branches of the Central Bank in Erbil and Sulaymaniyah, where it belongs to the Ministry of Finance in Kurdistan and this represents a violation of legal and constitutional, at a time that all the countries of the world have one central bank,

so we moved with the provincial government and agreed with them to close those branches, And the opening of a new, so the Central Bank opened its new branch in Erbil and will open another branch in Sulaymaniyah, as the central bank is currently playing its full role in Kurdistan.

What is the role of the Central Bank in supporting community initiatives and activities, such as the Baghdad Initiative launched by the Association of Private Banks?


– We are working in the Central Bank to stimulate social contributions and initiatives by the banking sector and other financial institutions. We have established an optional fund called Tamkeen, in which banks and exchange companies participate in monthly amounts. We have established an internal system for this fund and a board of directors.

As well as environmental and youth.
Within this fund, we coordinated with the Ministry of Agriculture to dig artesian wells in some Iraqi provinces to contribute to solving the water scarcity experienced by the country, as we seek to launch the initiative to rehabilitate the bridges of Baghdad in order to appear properly.

Honored by the Union of Arab Banks as the best Arab central bank governor, what are the most important achievements that led to this honor?

– We, as a central bank, have close relations with central banks and international or Arab organizations, and those relations we have worked to deepen in order to benefit from those institutions in the transfer of the central bank from a bank that works with the mechanisms, standards and objectives of the twentieth century to another working in the 21st century,

We have succeeded for a long time in introducing new functions and tasks in the Bank’s work related to financial and monetary stability, developing methods of monitoring and abiding by the rules, methods and standards of combating the laundering of illiteracy.

Terrorism financing, risk management, overall quality and economic modeling
.
The US Treasury Department said that the efforts exerted by the Central Bank in this regard are equal to the effort it has made in its previous history, as Iraq was classified in the financial organization responsible for the classification The countries within the framework of money laundering, within the gray area, and his way to enter the black area, to become a financially isolated area and the Iraq assessment report contains 700 observations.


In the past few months, we have become the normal follow-up region, as we have been in the world, in the face of the great challenge that the country has experienced in terms of security and finances. So we have become very impressed with these financial institutions. , Federation of Arab Banks.

http://www.alsabaah.iq/ArticleShow.aspx?ID=163226

Experts: Ensure the investment is the basis of development

9/17/2018

Baghdad / Emad Al-Amara Iraq is suffering from the problem of the slow arrival of international and regional investments to be present in the local business arena, despite the great tendency to open up to foreign investment, especially after the achievement of the Central Bank achievement in getting out of the list of sanctions in the European Union to contribute to attract money and create the investment environment in the country and ensure the flow Investments to Iraq \ Attract investments between the academic economist d.

"The success of the entry of foreign investment into Iraq requires the creation of an appropriate environment for the process of attracting these investments, after reforming the financial structure with procedures to facilitate the entry of investors’ funds," he said.

"The institutional and legal frameworks must be set up to instill confidence in the foreign investor, Which is stipulated in the investment law is the basis for organizing any economic activity.

" Conflicting policies
He continued: "It is necessary to achieve general stability, so if the investor enters its money, it must be dealing with the administrative policies and decisions in force in Iraq smoothly and without obstacles and away from routine."

He stressed the importance of directing foreign investment first in the infrastructure, especially in the energy sector, transport and basic services as it is the basis for the success of other investments, while encouraging joint investments between foreign and national capital to transfer expertise to local investors to develop their capabilities and potential.

He explained the importance of pushing foreign investors to use national labor after being given the possible facilities and exemptions from duties and taxes levied on such investments, and obliging foreign investors to run specific percentages of the labor force to absorb the phenomenon of domestic unemployment. "

Infrastructure
For his part, the academic economist Amr Hisham need to "overcome the challenges facing foreign investment to enter the country through upgrading the infrastructure in Iraq, especially in energy sources, roads, transportation and basic services necessary for the success of investment projects."

"This requires directing the state’s effort to rebuild the basic infrastructure of the society so that the process of reconstruction and foreign investment can succeed," he said.

Investment flows
Hisham pointed out that "the absence of sophisticated financial markets able to meet the requirements of the investment sector in all forms is another obstacle to the success of any investment," but the central bank opened the door to enter the money to Iraq after he managed to get the country out of the list "The presence of such sophisticated markets helps the process of investment flows and motivate citizens to invest their savings, especially if we know that there is an intention to privatize a number of state-owned enterprises."

Investment Decision
Hisham focused on "
He called for "the development of the institutional and legal framework, especially after changes in the methodology of the state and its future directions in the transformation of the Iraqi economy from the central planned economy to the free economy, and the transition from the central management of the strong state to the federal system with broad powers to manage the regions and provinces, Its interaction with multiple institutions with unaligned powers ".

http://www.alsabaah.iq/ArticleShow.aspx?ID=163212

Digital Media: Cancellation of European sanctions on the Central Bank will activate the PayPal service officially

Thursday 13 September

Alsumaria News / Baghdad

The Center for Digital Media, on Thursday, that the abolition of European sanctions on the Central Bank will lead to the activation of PayPal service officially in Iraq.

The Center said in a statement received by Alsumaria News a copy of it, "The abolition of European sanctions on the Central Bank of Iraq will make it a reliable financial institutions to deal with European institutions and thus eliminate the obstacles to activate the services of PayPal officially in Iraq."

"PayPal is considered the best and most popular bank in the world, providing users with digital financial services. Thousands of e-shops and e-commerce sites support PayPal, which was established in 1998 and supports Arab countries – Qatar, Oman, Yemen, Kuwait, Jordan, Saudi Arabia, Algeria, Egypt, Tunisia, Morocco and Somalia. "

The Central Bank of Iraq announced on Thursday that it was officially released from the list of EU sanctions, pointing out that it has become a reliable financial institutions dealing with European international institutions.

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Central Bank: Iraq’s fourth Arab ownership of US Treasury bonds

9/16/2018

The Central Bank of Iraq said on Sunday that its ownership of US Treasuries for June 2018 rose by 24.0 billion dollars compared to 14.3 billion dollars for the month of August 2017, an increase of 67.8%.

The Central Bank said in a statement received by the Echo Agency, "Iraq ranked fourth among some oil countries in its ownership of US Treasury bonds, as Saudi Arabia ranked first in investment in US bonds and bonds worth 164.9 billion dollars for the month of June 2018 compared to 137.9 billion dollars for the month of August 2017 ".

He added that "while the UAE came second with total investments amounted to 59.6 billion dollars compared to 55.9 billion dollars in 2017, and came in third place by 42.9 billion dollars."

He added that "for the foreign currency reserve for Iraq, this bank confirms that" the other rose for the month of June 2018 to record $ 54 billion, compared to $ 46.2 billion for the month of August 2017, an increase rate of 16.9% and ranked Iraq ranked third among the Arab countries.

He pointed out that "the Kingdom of Saudi Arabia ranked first as the foreign exchange reserves amounted to 508 billion dollars within the Arab countries, while the United Arab Emirates ranked second place by 171 billion dollars."

http://pressiraq.net/p=164180

The Central Bank Of Iraq Officially Comes Out Of The EU Sanctions List
9/13/2018

BAGHDAD – Wisdom: The European Union officially announced the exit of the Central Bank of Iraq from the list of sanctions imposed by the Union on the institutions.

A statement by the Central Bank received a copy of the wisdom that the decision was "through the publication in the official newspaper of the European Union, which confirmed the abolition of sanctions imposed on this bank under the former regime, which provided for the {prohibition of dealing with a group of financial institutions and non-financial Iraqi, including the Central Bank Iraqi}.
"
He pointed out that "this step comes as the Iraqi Central Bank achieved significant progress in improving its performance and the application of international regulations and standards in this field.

This bank shows that under these recent amendments will allow the international financial banking institutions to deal with the new instructions as it has become a reliable financial institutions to deal with European international institutions ".

http://www.alhikmeh.org/news/archives/141297