Iraq Economic News and Points to Ponder Wednesday Afternoon 12-25-24
What Are Iraqis Waiting For After News Of The “Sudden Suspension” Of The Dollar Selling Platform By The Central Bank?
Economy | Yesterday, Baghdad today – Baghdad Today, Tuesday (December 24, 2024), the specialist in financial and banking affairs, Alaa Al-Fahd, commented on the impact of stopping the “platform” by the Central Bank on the markets during the next stage.
Al-Fahd said, to “Baghdad Today,” that “the Central Bank of Iraq worked during the previous period with a plan through
an auction to sell the currency in the first stage, then
establishing the electronic platform and
working intensively to find methods of correspondence between local banks and foreign banks with which we have commercial relations and their results in transfers.”
“For this reason, the bank announced some time ago that at the end of the current year, the platform will be stopped and there will be direct correspondent banks.” He stated,
"This is normal.
All central banks in the world's mission is to maintain monetary policy and not sell the currency.
There is no central bank in the world that sells the currency and mediates in the buying and selling of the currency.
This work is the jurisdiction and responsibility of the banks and exchange companies.
This matter is correct and it is a major challenge."
So that the relationships are direct commercial and banking, according to supervision by the Central Bank of Iraq.” He added,
"Stopping the platform will not affect the local markets regarding the exchange rate of the dollar, but there are those who are trying to spread rumors that this step will change the exchange rate, so
selling the same dollar that the Central Bank of Iraq was selling through the platform will be sold to banks and banks that have...
Relations with foreign banks so that the transfer is direct according to electronic transactions and monitoring, and for this reason the situation is under control and there is no fear of the influence of the markets.”
Yesterday, Monday, the economic expert, Ziad Al-Hashemi, revealed that the Central Bank of Iraq suddenly stopped the work of the dollar transfer platform, before the specified date, without an official announcement, and without taking into account the interests of Iraqi companies and markets, in a step that, to say the least, is far from professionalism and transparency.
Al-Hashemi said in a post on the social networking site “Facebook,” followed by “Baghdad Today,” that
“stopping the platform without an official announcement by the Central Bank may indicate that there is uncertainty and fear about the results of stopping the platform on the dollar exchange rates, and
not announcing it could It gives the Central Bank an opportunity to disavow and evade the decision to stop the platform and return to operating the platform, even temporarily, in the event that the dollar begins to rise to significant rates.”
Do Regional Challenges Play A Role In The Continued Rise Of The Dollar In Iraq?
December 24, 2024 Baghdad/Iraq Observer The researcher and specialist in financial and banking affairs, Mustafa Hantoush, confirmed that the
reason behind the continued rise in the exchange rate of the dollar against the Iraqi dinar is the amount of demand for it in the parallel market, while calling for the necessity of conducting an extensive study to analyze the reasons for this rise. Hantoush told the Iraq Observer,
“One of the most important reasons behind the continued rise in the exchange rate is the collapse of the Iraqi banking system due to the control of Jordanian and Gulf banks over the dollar, which caused the lack of competition and monopoly of the dollar.” He added,
"Among other reasons is the existence of huge trade with Iran and Syria without an official platform or commercial solutions or even preventing it.
It is a continuous trade and without any official restrictions.
In addition to the fact that travelers, who number in the millions, to Iran and Syria, they move without the cover of the dollar."
He continued, “Because there are small merchants, numbering in the thousands, who do not have companies or import licenses, which caused pressure on the parallel market,
therefore all of the above were not covered through the currency auction, which led to the continued state of fluctuation in exchange rates.”
The person concerned with financial and banking affairs continues to say that
“there are fears of wars in the region that push market traders and citizens to exaggerate the quantities imported and purchased, and also push some citizens to save dollars in anticipation of any emergency.”
Today, Tuesday, the exchange rates of the US dollar against the dinar recorded an increase in the local markets in the capital, Baghdad. The Iraq Observer correspondent said that
dollar prices rose with the opening of the Al-Kifah and Al-Harithiya stock exchanges to record 151,200 dinars for every 100 dollars, while yesterday morning, Monday, they recorded 151,000 dinars for every 100 dollars. He added that
selling prices in exchange shops in local markets in Baghdad rose, as the selling price reached 152,250 dinars, while the purchase price reached 150,250 dinars for every 100 dollars. https://observeriraq.net/هل-للتحديات-الاقليمية-دور-بأستمرار-ار/
The Central Bank Of Iraq Launches Strategic Projects To Support Digital Transformation
December 24, 2024 His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Al-Alaq, announced the launch of strategic projects to support digital transformation in the country.
His Excellency the Governor affirmed in his speech during the fourth annual international scientific conference, which was entitled
(Digital Financial Services - Challenges of Reality and Foresight of the Future), that
“the Central Bank paid great attention to digital transformation as one of its goals within its third strategic plan for the years 2024 to 2026 to enhance work efficiency.” banking, improving financial performance and meeting customer needs in light of rapid technological development.” His Excellency noted that,
“The Central Bank has made great strides to support digital transformation by developing the technical infrastructure and issuing regulations and instructions that contribute to enhancing financial inclusion,” noting that
“it has begun launching strategic projects, including the instant payments project, local cards, and unified payment gateways, as well as issuing controls.” To license digital banks in Iraq, taking into account cybersecurity requirements and the risks associated with this transformation. His Excellency added,
"Cybersecurity represents one of the most important challenges facing us today.
Therefore, the Central Bank launched projects to enhance cybersecurity by developing the tools and systems of the Cybersecurity Management Center, and adopting an advanced approach to enhance cybersecurity for the Central Bank and the banking sector."
His Excellency stressed "the Central Bank's commitment to continuing its efforts to achieve financial digital transformation and enhance innovation and sustainability in the financial sector."
Central Bank of Iraq Media office December 24, 2024 https://cbi.iq/news/view/2745
Positive Indicators For The Third Quarter Of 2024
December 24, 2024 1. Growth in the volume of cash deposits and credit of operating banks by (4.2%) and (11.6%), respectively:
Total deposits with banks operating in Iraq recorded a growth of (4.2%) in the third quarter of 2024, reaching a value of (127.6) trillion dinars, compared to their value of (122.4) trillion dinars in the third quarter of 2023. In contrast, the
cash credit record Granted by public banks grew by (11.6%) in the third quarter of 2024, as its value reached (72.7) trillion dinars, compared to Its value amounts to (65.1) trillion dinars in the third quarter of 2023.
Positive indicators for the third quarter of 2024 File-173502791644793
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2. Growth in the volume of cash deposits and credit to private banks by (14%) and (15.1%), respectively:
Deposits with private banks operating in Iraq recorded a growth of (14%) in the third quarter of 2024, reaching a value of (18.7) trillion dinars, compared to their value of (16.4) trillion dinars in the third quarter of 2023.
On the other hand, it achieved Monetary credit granted by private banks grew by (15.1%) in the third quarter of 2024, reaching a value of (12.2) trillion dinars, compared to With a value of (10.6) trillion dinars in the third quarter of 2023.
It should be noted that these percentages reflect the increased confidence of economic units in private banks operating in Iraq.
Positive indicators for the third quarter of 2024 File-173502819314514
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3. Growth in the volume of deposits and cash credit to the private sector by (3%) and (8.6%), respectively:
Private sector deposits with banks operating in Iraq recorded a growth of (3%) in the third quarter of 2024, reaching a value of (56.1) trillion dinars, compared to their value of (54.4) trillion dinars in the third quarter of 2023. On the other hand, credit achieved...
Cash granted to the private sector by banks operating in Iraq grew by (8.6%) in the third quarter of 2024, reaching a value of (42.8) trillion. dinars, compared to its value of (39.4) trillion dinars in the third quarter of 2023.
It should be noted that this increase reflects increased private sector confidence in banks operating in Iraq.
Positive indicators for the third quarter of 2024 File-173502835431430
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4. Growth of the money supply in the narrow sense ( M1 ) by (4.1%), and the money supply in the broad sense ( M2 ) by (3.3%):
The money supply in the narrow sense in Iraq recorded a growth of (4.1%) in the third quarter of 2024, as its value reached (158.6) trillion dinars, compared to its value of (152.4) trillion dinars in the third quarter of 2023.
On the other hand, the money supply in the narrow sense recorded Broadband in Iraq grew by (3.3%) in the third quarter of 2024, as its value reached (179.8) trillion dinars, compared to its value of (173.9) trillion dinars in the third quarter of 2023.
Positive indicators for the third quarter of 2024 File-173502876777164
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5. Growth of gold reserves at the Central Bank by (57%):
Gold reserves at the Central Bank of Iraq recorded a significant growth of (57%) in the third quarter of 2024, reaching a value of (16.8) trillion dinars, compared to its value of (10.7) trillion dinars in the third quarter of 2023.
It should be noted that gold reserves are an important hedge against the risks of falling global oil prices.
Positive indicators for the third quarter of 2024 File-173502907237970
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6. The annual inflation rate for the months of August and September was (3.7%) and (3.1%), respectively:
Annual inflation rates in Iraq are among the lowest annual inflation rates in the countries of the region for the months of August and September of 2024, as the rest of the rate is acceptable at (3.7%) and (3.1%), respectively, and this reflects price stability and the success of monetary policy in Iraq.
Positive indicators for the third quarter of 2024 File-173502988143405
https://cbi.iq/static/uploads/up/file-173502988143405.jpg https://cbi.iq/news/view/2744
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