No distinction between foreign and Iraqi banks in currency auction

Central Bank of Iraq, denied there is a distinction between foreign and Iraqi banks in entry currency selling window [auction process].

“The branches of foreign banks operating in Iraq represent the main bank with all its capabilities, including its capital, the Iraqi Central Bank’s demand for these branches to provide [seventy billion dinars] Is an operating capital and does not represent the entire capital of the Bank.”

He added: “The entry into the foreign currency selling window for banks operating in Iraq in general is on the criteria approved by the Central Bank of Iraq and international accounting companies are solid and available to all banks to see and therefore when some branches of foreign banks exceed these standards are excluded from entering the window either When matching the standards as is the case with all Iraqi banks will get their entitlement.”

Jabbar denied “the existence of discrimination in dealing with the Central Bank of Iraq between banks operating in Iraq, whether foreign or Iraqi only on the basis of classification because they form part of the banking system of Iraq.”

He pointed out that “a number of Arab and foreign banks do not enter the foreign currency sales window originally or intervention in limited quantities and the share of Iraqi banks still represent the largest proportion of sales of the dollar.”



Plan to combat money laundering

The Central Bank Governor Ali Al-Aalak disclosed on Sunday the intention of the bank to prepare a solid base to tackle money laundering, stressing the need for concerted domestic and international efforts in this regard.

“The move to prepare a solid base to tackle money laundering is very important and contributes to the building of a sound financial sector,” a source from Alaq said.

He added that “the issue is receiving local and international attention and we are working on building sound rules by adopting international standards that regulate financial work and constitute immunity to the banking sector and prevent money laundering.”

“It is important for local and international efforts to work together and coordinate work mechanisms to achieve the objectives that prevent such practices from taking place in different economies,” he said.

Alaq stressed the need to “adopt sound rules using the latest technology and coordination among all concerned parties to control these diseases and prevent their spread through a road map to be put in this regard coordinates work between all parties, and there are legal regulations that draw the right course of action, The importance of training human resources and expanding the circle of knowledge in this aspect».

Al-Aalak stressed that “the Central Bank has made a great move on this side and providing basic and advanced work rules in this important chapter. There has been a development in this aspect during the past period.

The process of money laundering means collecting money from illegal black sources and introducing them into the economic cycle and removing them as clean money free from economic suspicions.

In another matter, the Integrity Commission on Sunday called on the Ministry of Finance to find legal mechanisms to prevent the recurrence of the phenomenon of withdrawing unsecured bonds, expressing concern over the recurrence of withdrawals of these instruments and in very large sums.

The Authority said in a press statement that it “expressed through its address to the Ministry of Finance and government banks all, expressed concern about the recurrence of withdrawals of unsecured bonds and the balance of large amounts.”

The Commission called on the ministry to «find legal mechanisms contribute to prevent the recurrence of the phenomenon, consistent with the nature of the work of government banks without affecting the flow of work so that the Commission can study these procedures and steps, and to determine the effectiveness and ability to eradicate the phenomenon».


New Morning

No room to cancel the dollar sales window

Iraqi Central Bank Governor considered the relationship stopping selling through a currencies window in the Bank would lead to the collapse of the Iraqi dinar financial situation in Iraq generally, stressing that the Central Bank is obliged to do the job, if you refrain from fulfilling this role for Iraq’s financial situation collapsed.

He said the relationship in dialogue interview Economy “News Agency on the sidelines of the annual Conference of the Arabic Bank Union held recently in Beirut, cancelling dollar sale window, price change to 3 and 4 thousand dinars, and maybe more.

The governor said it will force in case of cancellation the currency window printing trillions of dinar annually to cover local demand for the dinar, which eventually will lead to Iraqi dinar devalue due to inflation, known as cash-over-nodded.

The prospects for Iraqi dinar to float, like other countries in the region, this relationship does not arise in the present, we are working on is not currency float, and the big difference between the two.

He denied the relationship having its auction at the Central Bank, but foreign currency sale window confirming that the intermediary between the Finance Ministry and Central bank among the public.

Turning to Lebanon and Jordan experience, in maintaining the stability of their currencies, adding that the situation in Iraq is different.

He noted that the solution in Iraq lies in dollar demand reduction through structural correction of the Iraqi economy, not through refraining from selling the dollar.

The Governor stressed the Central Bank sought to resettle staff salaries in private banks, assuring a guide to localize all Iraqi civil servants in 2017 at banks.

Central Bank Governor welcomed deputies, stressing the importance of meeting with Parliament, judging from the fact that monetary policy cannot be specialized issue addressed from afar, or during the skirmishes and inaccurate analysis.

This will harness dialogue with conservative in the census the following Iraqi banks magazine issued by the Iraqi private banks Association.



The Iraqi banking sector has made significant progress

The central bank governor Ali Allaq confirmed on Saturday that the Iraqi banking sector has made significant progress in its activities during the current period, while declared the President of the Association of private banks Wadih Handal, that private banks working hard to implement anti – money laundering law to protect the country from the risks.

According Allaq in the workshop of anti – money laundering held Babylon Hotel in central Baghdad and attended by Economy News, the great mobility is happening today in the banking sector to develop its employees on important banking issues such as anti – money laundering and risk management, adding that the exercises that are happening now in a very large evolved and its goal expand the circle of culture and knowledge of the banking employee.

He explained that the Iraqi banking sector in significant progress in its activities and has become focused on it locally and internationally, pointing out that the central bank is working to build a sound information base through the use of information technology.

On the other hand, head of the Association of private banks, Wadih Handal, in his speech to the Conference, said that the Association of private banks is working hard to implement anti – money laundering to protect the country from the dangers faced by the law, adding that the Association of private banks has trained about 600 bank employees in the first quarter of this year on various banking issues.

Among the private banks association it is currently working on the development of the relationship with foreign banks in addition to the use of the world ‘s best technology and the application of international standards.

He stressed the need financial statements issued by financial institutions with the application of international standards and under the supervision of the Central Bank.


Encyclopedia of this Day News

Main objectives announced by the CBI to fix U.S dollar price

On Tuesday, the Iraqi Central Bank has confirmed that its major objective is to maintain a stable and meaningful price of the U.S dollar. The CBI also pointed out that growing political and security risks generated a higher demand for the U.S dollar. The Iraqi dinar currency has confirmed that sale window is not an alternative at the current stage. The director general of financial operations at CBI, Mehmood Muhammad said that window for selling U.S dollars has 2 sides, first technically sterilize mass monetary and it will increase U.S dollar price against Iraqi dinar currency. It will be due to spending massive amounts from the budget. He also pointed out that we can’t withdraw amount from the markets because it would increase a huge price. He added that the foreign currency sale window has its own importance in the light of low purification in the financial level of overall economy.

He pointed out that the unavailability of essential and handsome amount would lead to a considerable disintegration in the national economy. He added that our technical side is unable to find that how any kind of reasonable alternative against selling U.S dollar window will be perfect and workable. He said that the other side has been considered a difference in the price and we are very well focused on it. Point to be noted that the recent proceedings was started since the month of February 2017. It could improve results in order to reduce the U.S dollar exchange rate against Iraqi dinar. He stressed that our major targets are appropriate and dedicated to a stable & fixed prices. He pointed out that there are a number of elements, but political and security risks in the country causing instability. It might lead to a significantly higher demand of the U.S dollar. He confirmed that CBI is continuously developing electronic tools in order to maintain the U.S dollar prices at a reasonable level.


Iraqi123 News

Iraq will be liberated soon from Chapter VII … How much money will be recovered?

chapter 7
A few days ago, Prime Minister Haider Abadi stressed that the country is out of Chapter VII within two months, after he met all the international sanctions imposed during the rule of the former regime, which caused internal crises culminated in placing the country under this international chapter.

What is this chapter, and what did it do with the lives of the Iraqis?

UN Security Council A few years ago, a unanimous vote was taken on Resolution 2107, which partially exempts Iraq from the provisions of Chapter VII of the United Nations Charter and terminates the mission of the UN Special Coordinator in charge of the missing persons and Kuwaiti property.

This chapter, and all the obligations that accompany it, was the result of Iraq and the Iraqis because of the invasion of the former regime of Kuwait in 1990, in what is known as the invasion of Kuwait or the Second Gulf War.

Chapter VII of the Charter of the United Nations provides for intervention in situations of threat of peace and aggression, whereby the Security Council can take non-military measures or resort to force to maintain international peace and security in the event of failure of the parties to the conflict to resolve their differences.

Baghdad has been under the seventh item since 1990, and since that time and Iraq under the weight of economic sanctions did not end until after 2003, while Iraqi officials confirm today that Baghdad has fulfilled all its obligations and has left only to end the file of compensation with Kuwait, Of Chapter VII.

The famous resolution 661, adopted unanimously by the Security Council in 1990, contained several articles relating to the imposition of punitive decisions that ended with the use of the provisions of Chapter VII and the provisions of the binding application of Article 39 to Article 51.

Articles 41, 42 and 43 of that resolution imposed severe sanctions on Iraq. Article 41 called on UN member states to stop all economic ties and communications with Iraq and to cut off all diplomatic relations with the former regime.

Article 42 also addressed the issue of the military solution when it stated that, should the Security Council consider that the measures provided for in article 41 were inadequate, the Council was entitled to take the necessary measures to maintain or restore international peace and security.

Article 43 contains the commitment of all Members of the United Nations to contribute to the maintenance of international peace and security at the request of the Security Council at their request and in accordance with special agreements or agreements, including the necessary armed forces, assistance and facilities necessary for the maintenance of international peace and security.

Today, Iraq is just around the corner from Chapter VII. With the completion of this step, Baghdad will recover frozen funds in the foreign banks estimated at nearly $50 billion, as well as those in the Development Fund for Iraq, will return to its place in the international arena, amid direct cooperation And effective from all the members of the Security Council and at all levels, in addition to raising the opportunities for investment of major companies and the consolidation of its role in the region and the world … And most importantly liberate Iraq from the planks of the major powers!


Alqurtas News

Printed currency volume exceeded 11 billion and 600 million dinars

Cost of the Iraqi Central Bank steps are subject to political and legal environment of the country, especially in regard the deletion of zeros that specialists counted earlier trend sensitive and dangerous may still be, but the central bank remains the most important institution in terms of the need to adjust the financial management in light of the financial crisis experienced by the the Iraqi economy, which must have to deal with dilemmas, whether with regard to the citizen or the work of the central bank itself.

Questions concerning important files posed in this meeting, the director of the release department and the Treasury in the Central Bank Abdulabbas Kalaf Sultan being answered by briefly he pointed out the most important points that showed that the currency in circulation has exceeded one billion and a quarter of a million dinars an amount that is not a little if they were compensated by the stored banknotes at the bank, as some believe, at the time between the printed currency size has exceeded the “11 billion and 600 million dinars, he urged citizens on the need not to keep large amounts in homes or buried in the ground, the fact that the process of replacing in the event expose to burn or damage costs the central bank administrative and financial burdens, stressing that the counterfeit currency rate is still within the internationally accepted borders, with the central bank quest to carry out an information campaign to educate the public on how to distinguish between the original currency and counterfeit on a question about the possibility of having higher versions of a class (50000 ) dinars?

– No at present intention to issue a higher class category (50000) dinars.

* What about the subject of the deletion of zeros and the reason for the delay?

– the decision on the deletion of zeros can not be taken in isolation from the political and legal environment in the country under conditions the security situation as a result of terrorist acts and exit from the provinces outside the control of the state for the years 2014,2015 and 2016 which prevents certainly to wait in the implementation of this project, in addition to that this must be done in coordination with all state departments and the private sector, where it should be followed by changing the paragraphs contained in the various laws, which include a reference to fines or lump – sum collection of fees, must also change the financial and statistical records in order to conform with the process the deletion of zeros. On the other hand, the technical preparations are underway by us.

* How is the cost of the annual replacement and replacement of damaged currency?

– First there is no substitution instead of a damaged annually, as the bank instead seeks to issue new notes for security specifications developed, so the cost is reduced in this way it is the cost of issuing new banknotes specifications better used at the same time damaged to the replacement of currency from the previous editions.
We seek to carry out an information campaign to distinguish between original and counterfeit currency.

* How discovered the size of counterfeit currency?

– The Central Bank of Iraq resorted to the use of machines to sophisticated counting and sorting which can detect counterfeit currency, in addition to banks guide using modern techniques in the currency examination, but the problem is not shopkeepers doing enough efforts to use the machines to check the currency, as the bank seeks to campaign media to sensitize the public on how to distinguish between the original currency and counterfeit currency by issuing a booklet definitions and (posters) for this purpose and will be distributed to banks in major shopping malls, in all cases, the counterfeit currency rate is still within the internationally accepted borders, where even T ratio (0.000025) (Twenty – five million paper sheet).

* What currency damaged by fire or poor storage of citizens compensation mechanisms?

– While we hope the citizens do not keep large amounts in homes or buried in the ground, to do instead in the deposit with the banks, as the replacement of the burnt currency process or damaged it costs the central bank financial burdens and administrative Cost unwarranted, however the bank is to receive citizens whose savings in Iraqi currency to fire accidents provided that they are documented by the civil Defense Department and be sourced from the project, either in terms of currency (buried) are sufficiency statement on the sources of these funds, in this regard we call on citizens not to accept the mediation of any to The Iraqi currency and that this bank does not receive any commission for its replacement.
We applied security methods with modern technology advanced counting and sorting currency.

* What future plans for the central bank currency and print?

– Iraqi Central Bank seeks to keep pace with the evolution of printing currency and modern technologies both in currency printing or counting devices and sorting the currency where they are constantly adding new security features in addition to the acquisition of advanced machines counting and sorting currency, was dispensed with final counting and manual screening process.

* How much is the size of the torn currency and how much of the size of the printed currency?

– The number of banknotes unfit for circulation deposited with this bank (1,277,049,543) cash paper of various categories, where they are compensated from the stored banknotes have this bank, as the number of printed banknotes (11,615,265,154) cash paper of various categories.



A workshop in compliance in anti-money laundering for 50 bank employees

The Iraqi Private Banking Association organized a workshop for staff working in compliance, anti-money laundering and terrorist financing sectors in 27 Iraqi and foreign private banks.

Participated in the workshop organized by the Association in cooperation with the International Bank of Ashur 50 bank employees specialized in this area, during which they learned about the latest international developments in the fight against money laundering and terrorism financing, which is the concern of all banks in the world now and reviewed the assistant director of the Department of Anti-Money Laundering and Terrorism Financing in the Ashur International Bank Mohamed Anas Al-Nibakh The development witnessed by the banks in the world in this jurisdiction and the measures taken to protect themselves from operational errors and comply with international and domestic laws and regulations, foremost of which is the AML / CFT Law The initiative, which was approved by the Central Bank of Iraq comes as a workshop under the framework of an ambitious training program adopted by the Association of Iraqi private banks for this year, including so far the training of 600 employees in government and private banks.


Encyclopedia of this Day News

Iraq issued electronic payment tools for the staff of Iraqi University

Rafidain Bank announced an issuance of electronic payment tools for the staff of the university one of the formations of the Iraqi Ministry of Higher Education and Scientific Research for receiving their monthly salaries through to shorten trading cash currency routine.

The Information Office of the Bank said in a statement Economy News obtained a copy of it, that the bank has issued more than 650 within the electronic payment tools for the staff of the Presidency of the University and the Faculty of Administration and Economics and the College of Education and internal departments of the University and the localization of their salaries in the private electronic accounts to receive their monthly salaries.

He explained that the move was aimed at reducing the trading manual cash and reduce theft and robbery on the salaries of staff operations, especially when transferred from bank branches to government departments.


Encyclopedia of this Day News

Iraq’s current economic outlook and how it can affect Dinar value


Written by Emma Miller
After years of economic neglect, poverty for the common man and turmoil in the region, Iraq has finally reached a state of constant economic growth under the democratic leadership in the aftermath of the US invasion in 2003 and the overthrowing of Saddam Hussein’s ruthless regime.

An even greater exploration of Iraq’s oil reserves by international companies will lead to an even bigger tally of the country’s oil wealth, along with its already-known, vast reserves.

Iraq’s Economy is Rising
The main driving force behind Iraq’s economic growth is the wealth of natural resources reflected in the large number of oil and gas fields which are now open to international trade. Companies from around the world are investing into the development of these resources, which is reflected in the country’s ever-increasing oil exports. It seems that Iraq has completely recovered from the damage and downfall it suffered under the rule of Saddam Hussein.

An even greater exploration of Iraq’s oil reserves by international companies will lead to an even bigger tally of the country’s oil wealth, along with its already-known, vast reserves. In addition to all that wealth, Iraq seems to be blessed with geological formations that are perfectly accessible for drilling as opposed to most countries, which significantly brings down the costs of oil extraction.

The most obvious example of Iraq’s production advantages can be seen in the most recent Saudi Arabian oil production war which was designed to bankrupt the US shale-oil producers. And while oil producers in the US have been severely impacted by the overproduction “attack” from Saudi Arabia, Iraq still continues to produce and sell oil profitably.

What does this mean for the Iraqi Dinar?
The value of a nation’s economy as well as its currency is directly reflected in its natural resources, and Iraq’s oil reserves are big enough to drive its young democratic economy to prosperity. Given the fact that there is an insatiable need for gas and oil across the world, Iraq is can look forward to constant growth in its ever-growing role of the oil supplier to the world. Although Iraq is not there yet, it is becoming increasingly obvious that the country will take on the role of a regional and international energy super-power given its natural reserves in the near future. In fact, just recently the country’s Minister of Oil stated that Iraq will be able to produce 5 million barrels of oil a day in the second half of 2017.

With the economic boom led by Iraq’s oil industry, the national currency in the form of the Dinar will eventually rise to reflect the true value of the country’s oil wealth. The rise will most likely happen when the National Bank of Iraq lifts the artificially-low value placed on the nation’s currency in 2003.

Additionally, current political events play a key role in predicting the future of any given currency, and the controversial “Muslim ban” instituted by Donald Trump could have had major consequences for the Iraqi economy, had it not been lifted on March 6th this year. This new order to exempt Iraq from the list of banned countries has proven to be very beneficial for the country’s currency with foreign currency investors being able to exchange Iraqi dinar at favorable rates, keeping the country a valuable asset in the foreign exchange market.

All in all, it seems that the Iraqi dinar is looking at a bright future.

In the end, it is important to note that Iraq presents a wealth of investment opportunities in many industries, with the economic rise being driven by oil and gas reserves. These opportunities will become even more apparent in the following years, as the newly-established government continues to offer new possibilities to international investors.

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