The Al-Bayan Center for Planning and Studies has proposed the creation of sovereign wealth fund in Iraq.

Once used by only a few countries around the world, Sovereign Wealth Funds (SWFs) are becoming an increasingly common feature of international finance and state-led economic development.

An increasing number of countries, predominantly developing countries, who rely on the export of commodities such as hydrocarbons and minerals are creating SWF portfolios .

The exact motivation behind creating an SWF varies between countries. Some SWFs aim to provide funds for an aging or growing population while others invest the funds in development and investment programmes to help diversify revenue generation mechanisms.

Others are explicitly designed to cushion a country’s economy from price shocks ,currency volatility and general international economic instability.

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The World Bank expects the Iraqi economy to grow 3.1 percent in 2016, according its flagship “Global Economic Prospects report released yesterday.

This follows an estimated growth of 0.5 percent last year, driven by increased oil production.

Growth rates of 7.1 percent and 6.5 percent are predicted for 2017 and 2018 respectively.

These figures are based on the assumption that the impact of the Islamic State group (IS, ISIS, ISIL, Daesh) on Iraq’s economy will slowly become more limited.

The report warns, however, that with external financing conditions expected to tighten, Iraq could have difficulty attracting enough foreign capital to finance its deficit.

Budget deficits were financed in 2015 predominantly by borrowing from stateowned banks, the Development Fund for Iraq having been exhausted by 2014,” the report argues, adding that “bank borrowing is putting liquidity under strain“.

(Source: World Bank)

BAGHDAD / tomorrow Press: confirmed member of the parliamentary Finance Committee Magda al-Tamimi, on Thursday, the International Monetary Fund drew a report on the budget for Iraq in 2014 to the Ministry of Finance and a copy of it to the House and the Finance Committee he refers to the balance of 2014 to be discussed now before the Council of Ministers adopted on very optimistic assumptions about oil revenues.

informed banking sources said that the report on the acts of the Executive Board of the International Monetary Fund last May endorsed the central bank’s target Iraqi central goal of liberalization of the foreign exchange market.

recommended report issued by the International Monetary Fund for Iraq pace of structural reform to boost growth and job creation in the private sector, and the need to continue the good governance of foreign reserves at the Central Bank of Iraq and the Development Fund for Iraq.