The opening of a new branch of the Industrial Bank in Baghdad

2/10/2019


(Baghdad: Al Furat News) The Secretariat of the Council of Ministers announced on Sunday, the opening of a new branch of the Industrial Bank near the building of the Electoral Commission in Baghdad, to facilitate banking procedures.


The Secretariat said in a statement received by the agency {Euphrates News} a copy of it, "the Secretary-General of the Council of Ministers Mahdi Alalak, opened a branch of the Industrial Bank near the building of the Electoral Commission."

He stressed the importance of "the importance of banking expansion in providing services to citizens in light of the government’s trend towards the advancement of economic reality in the country and investment initiative of the Central Bank in facilitating banking and lending."

For his part, the Bank’s General Manager Bilal Sabah Hussein said, "The opening of the new branch comes to introduce electronic tools in the provision of its services in line with the development in the banking industry."

He explained that the new branch "will contribute to the process of settling salaries of state employees of the departments that fall within the scope of its work, through cards issued by the bank, which contributes to reducing the total cost of the process of paying salaries and keep cash within the banking system."

It is noteworthy that the Industrial Bank is one of the banks contributing to the process of settling the salaries of employees announced by the Central Bank of Iraq earlier

http://alforatnews.com/modules/news/…storyid=187874

The Governor of the Central Bank visits the Federal Supreme Court Pavilion at the Book Fair
2/9/2019
The Governor of the Central Bank visits the Federal Supreme Court Pavilion at the Book Fair


The Governor of the Central Bank, Dr. Ali Al-Alaq, visited the pavilion of the Federal Supreme Court at Baghdad International Book Fair, and reviewed the works in it.

"The governor of the Central Bank conducted a visit with the delegation accompanying him to the pavilion of the Federal Supreme Court at the Baghdad International Book Fair," said the spokesman of the court, Ayas al-Samuk.

Al-Samok added that "the wingers reviewed Dr. Ali Al-Aalak’s literature and presented him with a selection of the rulings of the Federal Supreme Court concerning the protection of freedoms and components, women, family, childhood and human rights."

He pointed out that "the Governor of the Central Bank praised the contents of the suite of books on constitutional justice, and stressed the importance of the Federal Supreme Court in strengthening the provisions of the Constitution and the law."

https://www.sotaliraq.com/2019/02/09…-%D8%A7%D9%84/

High-ranking officials from Iran and Iraq on Friday signed two memorandums of understanding (MoUs) and a contract to boost cooperation between the two countries in the electricity industry.

At the end of his three-day visit to Iran, Iraqi Minister of Electricity Luay al-Khatteeb signed two MoUs and a contract on the electric industry with Iranian Energy Minister Reza Ardakanian.

Speaking at the signing ceremony, Ardakanian said, “What is happening today as a result of the Iraqi minister of electricity’s visit to Iran and the negotiations that took place during this visit is the beginning of a new chapter in the comprehensive cooperation between the two countries in the field of electrical industry.”

“Within the framework of this cooperation, we intend to not only continue electricity exports as long as and as much as required by our Iraqi brothers and sisters, but also cooperate with them in technical terms… in the field of electricity,” he added.

The agreements came as governors of the central banks of Iran and Iraq signed an agreement to develop a payment mechanism aimed at facilitating banking ties between the two neighboring countries.

The deal on the payment mechanism was signed in a meeting between Iran’s Abdolnaser Hemmati and Iraq’s Ali Mohsen al-Allaq in Baghdad on Tuesday.

In addition to natural gas and electricity, Iraq imports a wide range of goods from Iran including food, agricultural products, home appliances, and air conditioners.

Speaking at a joint press conference with Iraqi President Barham Salih in Tehran in November, Iranian President Hassan Rouhani said the value of trade and economic interaction between Tehran and Baghdad stands at around $12 billion, adding that the two neighbors have the potential for a $20-billion trade target.

Rouhani hoped that cooperation between Tehran and Baghdad would contribute to regional security and stability.

(Source: Tasnim, under Creative Commons licence)

High-ranking officials from Iran and Iraq on Friday signed two memorandums of understanding (MoUs) and a contract to boost cooperation between the two countries in the electricity industry.

At the end of his three-day visit to Iran, Iraqi Minister of Electricity Luay al-Khatteeb signed two MoUs and a contract on the electric industry with Iranian Energy Minister Reza Ardakanian.

Speaking at the signing ceremony, Ardakanian said, “What is happening today as a result of the Iraqi minister of electricity’s visit to Iran and the negotiations that took place during this visit is the beginning of a new chapter in the comprehensive cooperation between the two countries in the field of electrical industry.”

“Within the framework of this cooperation, we intend to not only continue electricity exports as long as and as much as required by our Iraqi brothers and sisters, but also cooperate with them in technical terms… in the field of electricity,” he added.

The agreements came as governors of the central banks of Iran and Iraq signed an agreement to develop a payment mechanism aimed at facilitating banking ties between the two neighboring countries.

The deal on the payment mechanism was signed in a meeting between Iran’s Abdolnaser Hemmati and Iraq’s Ali Mohsen al-Allaq in Baghdad on Tuesday.

In addition to natural gas and electricity, Iraq imports a wide range of goods from Iran including food, agricultural products, home appliances, and air conditioners.

Speaking at a joint press conference with Iraqi President Barham Salih in Tehran in November, Iranian President Hassan Rouhani said the value of trade and economic interaction between Tehran and Baghdad stands at around $12 billion, adding that the two neighbors have the potential for a $20-billion trade target.

Rouhani hoped that cooperation between Tehran and Baghdad would contribute to regional security and stability.

(Source: Tasnim, under Creative Commons licence)

1,000 dinars: The face side is proposed to include an image of the Great Mosque of Algiers, which is presently under construction. When this structure …

The governor of the Central Bank of Iran unveiled plans for using non-dollar accounts for oil and gas trade with Iraq.

Abdolnaser Hemmati on Wednesday held a meeting with presidents of Iraqi banks, members of Iraq’s chamber of commerce and the Arab country’s business people during a trip to Baghdad.

In the gathering, the top Iranian banker unveiled a new mechanism to continue Iran’s trade with Iraqi businesses, saying the CBI is going to open euro and dinar-based accounts to process transactions for trade in oil and gas.

Describing Iraq as Iran’s major partner, Hemmati said the two countries have agreed to make the banking ties much stronger.

“According to the agreements, Iranian exporters should be able to continue activities via Iraqi banks, and Iranian banks could also open dinar accounts in Iraqi banks.”

He also stated that Iraqi companies can reciprocally open accounts in Iranian banks and conduct transactions in dinar.

In December 2018, Chairman of Iran-Iraq Chamber of Commerce Yahya Ale-Eshaq said the central banks of Iran and Iraq were finalizing negotiations to begin trade in their own currencies.

Iraq’s Foreign Minister Mohamed Ali Alhakim has made it clear that his country cannot cut off trade ties with Iran under the US sanctions, saying the value of annual trade between Iran and Iraq amounts to $12 billion.

(Source: Tasnim, under Creative Commons licence)

The governor of the Central Bank of Iran unveiled plans for using non-dollar accounts for oil and gas trade with Iraq.

Abdolnaser Hemmati on Wednesday held a meeting with presidents of Iraqi banks, members of Iraq’s chamber of commerce and the Arab country’s business people during a trip to Baghdad.

In the gathering, the top Iranian banker unveiled a new mechanism to continue Iran’s trade with Iraqi businesses, saying the CBI is going to open euro and dinar-based accounts to process transactions for trade in oil and gas.

Describing Iraq as Iran’s major partner, Hemmati said the two countries have agreed to make the banking ties much stronger.

“According to the agreements, Iranian exporters should be able to continue activities via Iraqi banks, and Iranian banks could also open dinar accounts in Iraqi banks.”

He also stated that Iraqi companies can reciprocally open accounts in Iranian banks and conduct transactions in dinar.

In December 2018, Chairman of Iran-Iraq Chamber of Commerce Yahya Ale-Eshaq said the central banks of Iran and Iraq were finalizing negotiations to begin trade in their own currencies.

Iraq’s Foreign Minister Mohamed Ali Alhakim has made it clear that his country cannot cut off trade ties with Iran under the US sanctions, saying the value of annual trade between Iran and Iraq amounts to $12 billion.

(Source: Tasnim, under Creative Commons licence)

President of the Republic opens the pavilion of the Central Bank of Iraq at the Baghdad International Book Fair 2019
2/7/2019


The President of Iraq Dr. Barham Saleh opened the Central Bank of Iraq at the Baghdad International Book Fair 2019 in the presence of the Governor of the Central Bank of Iraq Mr. Ali Mohsen Ismail.

Where the opening was attended by His Excellency the Secretary General of the Council of Ministers Dr. Mahdi Alalak and Minister of Culture Abdul Amir Al-Hamdani The President praised the role of the Central Bank to support the Book Fair because of its cultural and literary repercussions on the Iraqi street, especially on seekers of science and culture.

For his part, the Governor of the Central Bank, Ali Mohsen Ismail, said that the wide participation witnessed by this exhibition in the presence of six hundred and fifty publishing houses from 24 countries presented hundreds of intellectual and cultural titles in various fields.

This underscores the importance of culture in Iraq and its return to its customary Arab and international status.

The importance of the convergence of civilization in a place has a historical and cultural identity, especially this is what led us in the initiative of Tamkeen, which is sponsored by the Central Bank of Iraq and contribute to the Iraqi banks to support this forum as well as participate in some of its activities and intellectual.

https://cbi.iq/news/view/1004

Central Bank: Mechanism to pay Iran’s debt in the light of the exceptions granted to Iraq
2/7/2014

The author of an official source at the Central Bank of Iraq said Thursday that the latter held meetings with the Central Bank of Iran in the capital Baghdad on the sidelines of the visit of the Governor of the Central Bank of Iran and his delegation to Iraq,

focused on the search mechanism to pay the debt to Iran in light of the exceptions that Granted to Iraq from the sanctions imposed on Iran.


"The meetings focused on examining the executive mechanisms to pay Iraq’s debt owed to the Islamic Republic of Iran in light of the exceptions granted to Iraq from the sanctions imposed on Iran," the source said in a statement.

"The mechanisms that were discussed and agreed upon are within the framework of the permitted and agreed technical framework with the Ministries of Foreign Affairs and the US Treasury."

The Central Bank of Iraq, according to the statement, "his keenness and his constant work to protect the Iraqi banking system and its international banking relations."

http://alforatnews.com/modules/news/…storyid=187564

By Ahmed Tabaqchali, CIO of Asia Frontier Capital (AFC) Iraq Fund.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The Iraq Stock Exchange (ISX), as measured by the Rabee Securities RSISUSD Index, started the year not with a bang but with a whimper, as befits the ending of the Chinese year of the Dog, by going mostly sideways on a continuation of the low turnover of the last few months. However, the emergence of a moderate foreign seller took the index down to about -5% for the month before buyers emerged to absorb some the selling, taking the market to a decline of -3.1% for the month.

The real economy on the other hand is showing increasing signs that liquidity is returning as the healing effects of higher oil revenues over the last two years are having a positive effect. As reported last month, this was seen in the recent recovery in broad money, or M2 which acts as a proxy for economic activity. Driving the recovery in M2 has been the growth in the monetary base M0-defined as “the sum of currency in circulation and reserve balances in Iraqi Dinars (IQD) held by banks and financial institutions with the Central Bank of Iraq (CBI)”.

The clearest evidence of this nascent recovery is seen in the IQD Current Account (C/A) component of banks’ reserves with the CBI, which has been behind the recovery in M0 as seen in the chart below.

(Source: Central Bank of Iraq, Asia Frontier Capital)

(Note: M0 as of Nov, IQD C/A component of bank’s reserves as of Dec)

The IQD C/A component of banks’ reserves with the CBI, reversed its multi-year decline in late 2017 and began a recovery that picked-up momentum in May 2018, with the latest data as the end of December 2018 showing a continuation of this trend. This in turn is driven by the level of customer deposits (consumers, businesses and government) held with the banks. The early evidence of increased private sector deposits was discussed a few months ago in “Of Banks and Budget Surpluses”, however the granular data for private sector deposits is only available for end of 2017. The rise in deposits for 2018 is likely to have been driven by government deposits, which should lead to a rise in private sector (consumers and businesses) deposits as the government begins its spending programme as discussed later in this report.

The current trends indicate a continuation of this recovery, and as such to a continued recovery in M2. The latest M2 figures from the CBI for October and estimates for Novemebr (based on MO figures for November and recent M2/M0 multiplier figures) support this as can be seen from the chart below.

(Source: Central Bank of Iraq, Iraq’s Ministry of Oil, Asia Frontier Capital)

(Note: M2 as of Oct with AFC est.’s for Nov; Oil revenues as of Dec with AFC est.’s for Jan)

The prospects of increased economic activity got a boost with the end of the government’s spending paralysis, as parliament finally approved the 2019 budget in mid-January. The budget, however, is heavily skewed towards current spending, as opposed to investment spending, as both of parliament and government are under pressure to appease the population with some immediate rewards from the end of conflict and the recovery of oil prices. (for a review of the budget see the appendix in this report).

The government’s financial firepower is considerable, as the latest Ministry of Finance (MoF) budget report of October 2018 shows a surplus of USD 21.5bn for the first 10 months of 2018. As such, in addition to the surplus of USD 1.5bn for 2017, this means that the government could easily achieve the estimates made here over the last few months—a two-year surplus of USD 24.5bn by end of 2018.

The immediate consequence of government spending would be improvements in consumer and business sentiment leading to a pick-up in consumer and business spending, and subsequently an economic recovery as the multiplier effect works through the economy. The long term sustainably of the upcoming economic recovery would be driven by the implementation of the government’s non-oil investment programme for 2019 of about USD 12.5bn, which would be equivalent to about a 7.5% stimulus to the estimated non-oil GDP for 2019.

The recovery in M0 that is leading to a gradual recovery in M2 seems to be happening in a mirror image of Ernest Hemingway’s phrase on going broke, i.e. “Gradually and then suddenly” (attributed in error here in the last few months to Mark Twain), and so the next few months should see this translate into actual economic recovery.

If we are to go on similar experiences in other frontier markets (of declining markets while fundamentals show gradual recovery following a long basing period) then the market’s declining trend of the last few months should be followed by a sharp reversal and the beginning of a new trend.

Please click here to download Ahmed Tabaqchali’s full report in pdf format.

Mr Tabaqchali (@AMTabaqchali) is the CIO of the AFC Iraq Fund, and is an experienced capital markets professional with over 25 years’ experience in US and MENA markets. He is a non-resident Fellow at the Institute of Regional and International Studies (IRIS) at the American University of Iraq-Sulaimani (AUIS), and an Adjunct Assistant Professor at AUIS. He is a board member of the Credit Bank of Iraq.

His comments, opinions and analyses are personal views and are intended to be for informational purposes and general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any fund or security or to adopt any investment strategy. It does not constitute legal or tax or investment advice. The information provided in this material is compiled from sources that are believed to be reliable, but no guarantee is made of its correctness, is rendered as at publication date and may change without notice and it is not intended as a complete analysis of every material fact regarding Iraq, the region, market or investment.