Central Bank Related III

Many people don't realize how important this system is to Iraq being able to process transactions between banks and internationally. Iraq has been in the stone age for a long time and you can't process Forex exchange deals, and all the the banking operations that should be able to be done without this PBX system. Things like this, while insignificant in the news, I believe are sequential to the revaluation of their currency.

Director of private banks: preparations start System (PBX) is in its final stages and has formed a Committee to choose the best company to manage

Posted: July 11, 2012

Date: Wednesday, 11-07-2012 11: 07 am

Baghdad (News) … The Executive Director of the Association of private banks, the goldfinch-final stages to start PBX system between national banks, a joint Commission of the Central Bank and the ministries concerned to choose the best offers from global companies to manage.

He said goldfinch (News Agency news) on Wednesday: a meeting between the Central Bank and private banks Association on the possibility of applying the national interbank system divided Iraqi government branches, was taken by private banks to apply this system and linked to the unified communications network.

He added: there is strong global companies made for the implementation of this project was to set up a joint Commission by the Central Bank and the ministries of finance and communications as well as the communications and Media Commission to examine offers from companies to choose company discreet capable device management and control, noting that the final stages project and during the next period will start its implementation.

Explained: the divided national key device like (in tonnes) at a particular place is by the supervision and control of a central bank run by strong global company specifying the connection points between banks, through which all electronic bank card (credit or alvizakard or MasterCard) not only on a single card.

Said: that the security and high risk low under any circumstances which would apply where the system because it would be under the supervision and follow-up of the Central Bank, adding that the most important advantages of using credit cards will be promoted between citizens and facilitate their transactions and banking helps introduce technological global banking.

The Central Bank announced the founding of a new electronic system called (PBX) or phone banks to link all governmental and private Iraqi banks with unified communications network administered by a global company that specializes in facilitating banking operations.

The banking system in Iraq consists of forty-three banks as well as the Central Bank and distributed by ownership between banks (7) and (30) Bank of my family including Islamic banks (7) in addition to (6) foreign banks.

http://bit.ly/MZbJuG


CBI: Continue with the deletion of zeros despite calls to delay, wait

Posted: July 8, 2012

2012-07-08

Baghdad/JD/…Member of the parliamentary Finance Committee and Attorney for the State of law Coalition Haytham Al-Juburi, that the Central Bank of Iraq informed the Committee that the deletion of zeros past despite Government demands a wait …

Transfer Al-Juburi/JD/: Deputy Central Bank Governor Mohammed appearance on the sidelines of the meeting yesterday “that the Bank is in the process of deleting zeros currency will be put on the first of January or after a short period.”. He added “that the Central Bank works to persuade the Government to delete the currency switch positives zeros and put forward early next year.”.

He said the Central Bank has the right to replace the currency by regulations and instructions that authorized him to even without legislation by the House of representatives. “.

Promised parliamentary Finance Committee member and Deputy from coalition of State law to wait to put the currency requested by the Prime Minister of the Central Bank is coordination between fiscal policy and economic policy “.

The Central Bank has sent an official letter to the Iraqi Council of Ministers includes pros switch currency … She is a member of the parliamentary Finance Committee and MP for the Liberal block Magda El-Tamimi, yesterday, Saturday, for/JD/that “Central Bank Governor Sinan Al-Shabibi met with Prime Minister Nuri al-Maliki and spoke about the wait to switch currency and delete the zeros and the money supply.”.

Tamimi said “that the Central Bank in an official letter to the Cabinet of Ministers ensures the pros switch currency and delete the zeros to reduce the money supply and to facilitate business processes and other” … And remedied “but the cabinet so far has not responded to the Bank’s book.”.

Tamimi said “the Government supports the Finance Committee to wait till the present time not suitable for switching currency, we fear the emergence of counterfeit currency dealers Division.”. According to the parliamentary Finance Committee member and MP for the Liberal block “switch currency after 2003 witnessed the emergence of economic Division and dealers were counterfeit currency in the market, maybe switch currency at the moment is in addition to the money supply will grow more.”.

The Central Bank has said in the past week put new Iraqi currency after deleting zeros in January. Central Bank Governor Sinan Al-Shabibi/JD/”Bank will put up new Iraqi currency after deleting three zeros in 1/1/2013.”.

He was Governor of the Central Bank has stated that “there are numerous and many misgivings on its implementation of the Bank is keen to be a safe and easy exchange.”.

The parliamentary Finance Committee revealed earlier Central Bank contracted with major companies to print the currency of high quality paper. “

She is a member of the parliamentary Finance Committee Magda Tamimi “cost actions devoted to switch currency at 150 million dollars.

She noted that the “switch currency withdrawals be gradual through the check-in process at banks,” “currency be withdrawn gradually and not once as in the previous switch.”.

Tamimi noted that “the Finance Committee as a follow-up to the work of the Central Bank and abreast of what is going on with the printing of the new Iraqi currency. “The Finance Committee member of” parliamentary speech, “Central Bank Governor Sinan Al-Shabibi” deposit in banks when switching the currency would be in one place and controlled to protect the currency from counterfeiting. “

http://bit.ly/MeF5SqTheCurrencyNewshound


Finance Committee Member: Not appropriate time to drop zeros; Blames economy and banking sector

Posted: July 8, 2012

Resan: the economic situation is not appropriate to delete the zeros

BAGHDAD / Baghdadiya News / commented .. Member of the economy and investment representative Abdul Hussein Resan to postpone the project to delete the zeros from the currency, that the economic situation is not suitable for such a change in the present time.

Husseini said in a statement received / Baghdadiya News / copy of which was Sunday, that “the process of removing the zeros from the currency is a change of form and value,” adding that “such a thing as the law requires legislation enshrined in the Constitution.”

He attributed it to Hosseini, “not to appropriate the economic situation of the country to such a change at the present time not to mention the lack of real reforms to the banking sector.”

The General Secretariat of the Council of Ministers has called to be patient in the case of deletion of zeros from the currency and change, arguing that the mere thought of the withdrawal of about 40 trillion dinars, storage and destruction needs a serious study of the subject.

http://bit.ly/M7rIReTheCurrencyNewsound


Member of the Economic Committee: Current economic situation does not allow replacement of currency

Posted: July 8, 2012

Date: Sunday, 08-07-2012 09: 33 am

Baghdad (News) … Male member of the Committee on the economy and investment/National Alliance Deputy/Abdul Hussein Al-Husseini, that circumstance ressan economic disadvantage to delete zeros from the currency and replace.

Husseini said in a statement received (News Agency news) on Sunday: that the deletion of zeros from the currency means changing the format and value, noting such needed legislation as provided for in the Constitution.

He added that the country’s economic condition is not suitable for such a change at the present time, not to mention the lack of real reforms for the banking sector

http://bit.ly/Pvl3XDTheCurrencyNewshound


CBI: Process to switch currency will take two years; Will raise the exchange of currency and improve its value in the domestic and global market

Posted: July 8, 2012

On: Sun 08/07/2012 0:57

CBI: Switch currency and delete zeros will take two years

Deputy Governor of the Central Bank of the appearance of Mohammed Saleh, said that the process of switching the currency and delete zeros will not be completed this year and completion will take approximately two years.

Saleh said in a press statement on Saturday that preparations and preparations for the process of switching the currency and delete zeros began more than a year and will take approximately two years.

He pointed out that “the completion of the project the improvement of the payments and to facilitate the circulation of currency, that process will raise the exchange of currency and improve its value in the domestic and global market, denying caused by any effects on the standard of living of the Iraqi people. “and called on the Deputy Governor of the Central Bank to the” cooperation of everyone, both for its location in the success of the project as a national and for all. “

For his part, Member of the economy and investment Parliament, Salman al-Moussawi attempts Central Bank to replace the Iraqi currency practice is unconstitutional is leading the country towards the unknown. Al-Moussawi said in a statement received (citizen) a copy of that “no right to the central bank currency exchange, at a time, state in Article 110 of the Constitution provides that “the right of the federal authorities to draw financial policies and the issuance of currency in the country means the executive and legislative branches.”

He continued, “The presidency of the Central Bank and more than a year raises issue of deletion of zeros from the Iraqi currency attributes the reasons to strengthen the Iraqi currency and give it a universal value , but after that the audited subject and we found not a process of deleting the zeros, but replace the currency with full merits. “and the deputy coalition of state law that” the evidence of this is the change currency symbols present and the introduction of the Kurdish language emphasizes the process it replaced and not delete the zeros, “expected to lead replacement to the many problems which may enter the country fake currency while we work on the stability of the market leads to the collapse of the Iraqi currency in full. “and described” attempts the Central Bank of the implementation of this project early next year, as a unilateral act is valid and is rejected out of hand because it is the process of replacing unknown results. “went on” We are with the replacement of the currency if there is economic benefit to the country, but we found after the study and the possibility that many are fighting against Paschklat delete the zeros do not know what the future of Seoul him the Iraqi economy. “

He explained that “the stability of the economy and the Iraqi market is through the activation of income-generating sectors, and encourage the private sector and make the country an attractive environment for investment and the economy not by the deletion of zeros

For her part, MP Nahida Daini that the issue of deletion of zeros of the Iraqi currency has become a political issue and may be subject to the principle of compatibility.

Dani said in a press statement on Saturday that “the parliamentary Economic Committee hosted the director of the CBI and hosted the Economic Committee in the Council of Ministers and there was a difference and a clear difference in the position of the large sides of the issue of” currency reset “or delete Asfarha.

“The Economic Committee in the Council of Ministers believes in changing the currency laundering of money has cost the country huge amounts of money so to Avaúdh of change., And that the second party which is the central bank sees this change does not cost the country a lot and will support the country’s hard currency.”

She noted that “the parliamentary economic committee with a mechanism to change the currency, and see that the central bank is the owner of the biggest issue in this matter and has the final word to this subject, because his studies and supported by the evidence.”

Daini and predicted that “the currency change is definitely coming to Lucan until there are some objections from the Economic Committee in the Council of Ministers.”

Daini and revealed a “hold an expanded meeting will be held soon to decide on the issue of changing the currency and delete zeros in the presence of the Minister of Finance and members of relevant committees.”

http://bit.ly/MeCS9rTheCurrencyNewshound



Iraq’s currency strength and looking to the future

Posted: July 8, 2012

07/08/2012 0:00

D. The appearance of Mohammed Saleh
, despite the severity of changes in the political environment that have occurred in our country since 2003 and tugging the strong sustained political and social landscape and the National Economic and upload the country a lot of volatility, stability and Maravgah of concern and worries in the path of building democratic life and the advancement of the state of modern, it has been policy monetary stability, a tent, which gave a strong national currency dimension to the unity and cohesion of the country’s sovereignty to the fact that currency is a symbol of sovereignty as a purchasing one interacts with it all.

To hide the national currency which basis the Iraqi dinar and the various properties related to the lives of citizens’ economic and living conditions and contractual obligations to Atnevk for later strategic as a discharge of the legal carrying citizens of the Republic of Iraq to express their rights of entry and the wealth and obligations are, without doubt a model of the unity of our country’s political deal with the component sovereign national one which is currency of the country represented in Iraqi dinars, which handles it all with unity of the national territory politically, economically and socially in the framework of the Iraqi state of democracy.

and the cohesion of the Iraqi dinar and its stability as a purchasing bearer must be assigned reserves, strong foreign assets to reflect truly the foundation supporter of the Iraqi currency, and that the gravity of this basically represents the strength of the country’s economic and components sovereign and the political to the fact that the Iraqi dinar a political symbol and a sovereign should maintain its stability according to the strength of those foreign reserves chock for monetary union.

of the above, and the fact that foreign reserves are based away our country and their sovereign on the dangers of so-called B risk countries, especially after that Iraq has suffered, and for more than three decades of conflict and war that made him be treated by the international community that it is countries with risk in its credit and financing, the risks arising regrettably for economic changes and political of any country where a long period of conflict and political turmoil and economic development.

On top of those risks subject (decrease in reserves of foreign currency). And that this factor and variability is the day of the most important factors to be considered to Iraq from outside the economic entity in question away from risk countries. And that any fluctuation in the foreign reserves is a disease, is a sensitive indicator of the continued risk countries and put our economy in the economies of the countries that lie in the credit rating of insignificant in terms of its worth and its interaction with the outside world financially and properly and normally.

That the building of reserves, the country of such wealth cash in foreign currency and good management, provides clearly the capacity of the country’s financial and power of sovereignty, political unity towards the outside world, line up the Iraqi dinar to the elements and components of sovereignty, the other in the formation of a national uniform and similar to what is looking forward to him the United trendy all in the consolidation of its existence the National across the monetary union and stability of that cross at the same time the country’s unity and cohesion politically and economically as a sovereign one.

Therefore, the importance of the reserves of foreign currency and maintain a cover supported the Iraqi dinar, which depends stability of the power of those reserves, is a matter of making the power of the national currency in line with the other components of sovereignty within the rights guaranteed by the Constitution of the Iraqi people in reverence for his property and assets are a strong and stable, especially the national currency and cover supporter.

http://bit.ly/N7wQthTheCurrencyNewshound


CBI, Finance Ministry and Finance Committee reach agreement on currency reform; No objections

Posted: July 8, 2012

08/07/2012 11:10
Committee reveals tripartite agreement on the project to delete the zeros from the currency

BAGHDAD / Center Brief for the Iraqi Media Network – The member of the parliamentary finance committee that all parties involved to study the project to delete the zeros from the currency in line with each other and there is no objection to the project.

 

Said Secretary Hadi’s (Center Brief for the Iraqi Media Network) that his committee “and the Ministry of Finance and Central Bank do not have any problem to the project to delete the three zeroes from the currency to be considered a project aimed at improving the economy.”

 

He said Hadi that “the Finance Committee recommended the Ministry of Finance and the Central Bank to develop a plan to ensure no rigging of the new currency in the inside or outside the country,” noting that “the central bank was able to answer the inquiries made against him by all interested parties on the draft to delete the zeros.”

 

The government decided last week to wait to apply the draft to delete the zeros from the currency as a result of what she called “the economic problems expected to occur by the process of deletion of zeros.

 

Revealed the Finance Committee in Parliament that the budget for next year will be the new currency, the central bank as he emphasized that he needed two years to replace all the currency in Iraq.

 

http://bit.ly/Ne1xMVTheCurrencyNewshound


CBI: New currency to be put in circulation most likely Jan 1, 2013

Posted: July 4, 2012

The central bank is likely to put in the new currency (01/01/2013)
The central bank governor, “there are many procedures and many misgivings Bank is keen to implement them in order to be the process of replacing the currency safe and easy” ..

The Finance Committee, the parliamentary revealed earlier in the contract the central bank with major companies to be currency printing paper of high quality. “Said a member of the Knesset Finance Magda al-Tamimi that” the cost of the actions dedicated to the currency exchange at 150 million dollars, “.. and pointed out that” the currency exchange and withdrawal be gradual through the process of deposit in banks,

“saying,” The withdrawal of currency be gradual and not once as in the switch before, “.. and noted Tamimi that” the Finance Committee follow-up to the Central Bank and to share what is going on the process of printing new Iraqi currency . “and quoted a member of the parliamentary finance committee,” a talk by the Governor of Central Bank “Shabibi” “

The deposit in the banks when you switch the currency would be one place and controlled to protect the currency from counterfeiting.”

http://bit.ly/MJ2iia


CBI set a date early next year to launch the new currency

Posted: July 4, 2012

Select Central Bank of Iraq beginning in 2013 put forward the date for the new Iraqi currency after deleting three zeros of them, said Central Bank Governor Sinan Shabibi that there are many measures and many misgivings on the bank is keen to implement the process of currency exchange, safe and easy.

As indicated by the Finance Committee’s parliamentary Majida al-Tamimi that “the cost of the actions dedicated to the currency exchange at 150 million dollars,” adding that “the currency exchange and withdrawal be gradual through the process of deposit in banks,” saying,

“The withdrawal of currency be gradual and not once as in the switch Previous “, and noted that al-Tamimi,” the Finance Committee to follow up the work of the Central Bank and to share what is going on the process of printing new Iraqi currency. “

The parliamentary Finance Committee had revealed earlier in the contract for the central bank with major companies to be printed currency from a high-quality paper

http://bit.ly/NxZzD8


CBI wants Iraqis to drop the dollar in internal commercial transactions

Posted: June 30, 2012 

June 29, 2012

The Central Bank has decided to remove three zeros from the dinar, a move it sees essential to strengthen local currency and tempt Iraqis to stick to it.

For months, the bank has been mulling the issue but only recently it said a decision has been made and it was a matter of time to translate it into action.

“The knocking out of zeros will save Iraqis using massive sums of paper money in their transactions,” said Central Bank Deputy Governor Mudher Saleh.

Saleh, speaking in a seminar on currency organized by the High Institute of Accounting in Baghdad, assured skeptic Iraqis that the removal of zeros from the currency “shall not affect your earnings, wealth, financial transactions, financial obligations and duties.”

He said, on the contrary, the Iraqi economy and Iraqi citizens were to benefit from the move.

The Central Bank, awash with hard cash reserves estimated at more than $60 billion, is working hard to boost the dinar’s value against major convertible currencies.

A firmer currency along with the removal of zeros has been among the bank’s priorities.

But Saleh said the bank was concerned to see the economy being dollarized and one target behind the new move was to lessen dependence on the dollar in domestic transactions and dealings by Iraqis.

A dollar is now worth about 1,200 dinars.

http://bit.ly/Mgf9sD


CBI completes steps necessary to remove zeros; Awaits signal from executive, legislative branch to implement

Posted: June 27, 2012

source reveals there will be a criteria for acceptance or rejection of banknotes 

06/25/2012 10:58

A source at the Central Bank “of the Iraqi gate” Today, ethnic, criteria for acceptance or rejection of banknotes in transactions to facilitate the circulation of cash within the banking system and the rest of Iraqi institutions and the public.

The source revealed the uncles of the bank to the general Iraqi banks counting paper cash fit for circulation if it had not reached harm or damage affects the shape, color, size and if there has been a rupture of one or more, including not more than 3 cm were repaired tape transparent so that it does not affect the features real. And if hit by a break in one of the angles up to 2 cm.

The source explained that “the banknote is considered unfit for circulation and compensate for the full value when they are submitted to the Central Bank and its branches and banks if Mthrih and if he was cut in more than one angle if they are installed with adhesive tape Transparent or more in length, display, or different numbers or subject to damage burning drowning or endorsement by an official having jurisdiction. “

“When it is considered the cash fit for circulation are offset by not less than 90% of their value if they are buried or burned or washed or Mkarodh in whole or in part after making sure of its authenticity, as well as if stuck with exotic materials and affected features or perforated hole or more.” .

He noted that the paper is not valid when presented does not compensate if it lost 50% of its area or contained the writings of the seals or affect the shape.

The source explained: “If not counting cards as a result of hit hard procures the relevant committee to compensate the damaged currency at the Directorate General for the issuance of the cabinets and an estimated quantity and value of the decision is ratified by the Central Bank Governor or the Director-General of the issue and cabinets.

The Central Bank of Iraq announced (29 September 2011) that the year 2013 will see the deletion of zeros and replacement of the currency, which warned him, officials and economists because of the presence of mafias currency is preparing to rig the trillions of Iraqi dinars to replace them in the light of the planned changes. Had demanded the prime minister’s central bank to wait project to delete the zeros of the three local currency, saying he was a big project and needs to be enough time to apply

Underscoring the deputies, “The central bank completed all the procedures related to the project to delete the zeros of the three local currency and the expected signal from the executive and legislative branches to begin to implement it.

http://bit.ly/QjhCB6


Expert: Establish a National Distributor between Iraqi banks will accelerate its work

Posted: June 27, 2012 

On: Tuesday 06/26/2012 19:34

According to an expert in banking as beautiful that the establishment of a system divided the national inter-Iraqi banks will reduce the red tape and helps to complete banking transactions as soon as possible.

Jameel said in a press statement yesterday «The banking system in Iraq is behind the development of technological talk in the banking field as it is still working systems, traditional old and he needs to introduce systems of modern electronic to facilitate the transactions customers banking ». and added a beautiful« the system of divided national, which links all banks Iraqi communications network one will facilitate a lot of things the banking and will eliminate the red tape tired in the review of banks and will be completed transactions as soon as possible,

He pointed out that the process of converting instruments to deposits of financial take a long time maybe a week while the divided national Sechtzelh two hours or three ». referring to» that divided the national system is an electronic modern and new to the work of Iraqi banks setting calls to educational programs and awareness, both for those working in banks or customers of in order to learn how to use this technology in completing banking transactions, calling for contracting with companies sober for the success of the project ».

has announced the CBI for initiating the establishment of new electronic system called« divider National »or banks, telephone, where the linking of all banks Iraqi government and private network unified communications managed by a specialized international company to facilitate banking operations in Iraq.

http://bit.ly/NBpavL


Member of Finance Committee: The new currency will be immune to fraud and will bring sophisticated equipment to detect fraud

Posted: June 27, 2012 

Baghdad (news) .. Announced by the Finance Committee MP / National Alliance / Najiba Najib, in agreement with the Central Bank to purchase sophisticated electronic devices to detect light cases of fraud and forgery after the process of removing and replacing the zeros of the Iraqi currency.

Najib said (of the Agency news) said on Wednesday: The Central Bank and the Finance Committee have reached agreement for the purchase of optical electronic devices to check and detect counterfeit money after which the process of deleting the zeros and the currency exchange.

She added that the new currency will be Viah paper and other metal will be released in early 2013, but it needs to be taken by the Central Bank reserves and the measures necessary to detect cases of fraud and forgery, which was repeated in the current currency by their weak souls.

She pointed out: that the new devices will be connected to the web to update the latest information about the counterfeit money and methods of detection.

It showed: that some foreign companies in coordination with the Central Bank and the Finance Committee will provide loans for the printing of a large new currency in accordance with specifications and standards have a high safety properties, although this does not dispense with the central bank for modern devices that enhance the detection of fraud and forgery.

The financial experts and members of the House of Representatives, warned of a possible use of procedures change the currency, to pump large amounts of money forged by gangs experienced, and for an extensive operation for laundering money, and it will cost the state huge amounts of money for the printing of new currency, while he says supporters of the measure that necessary to make the national economy stands on his feet, and increase confidence in the currency, as well as reducing the huge liquidity.

http://bit.ly/M42ybR


Iraqi Legislature supports deletion of zeros on currency; CBI says it has completed roadmap

Posted: June 26, 2012 

The legislature directed the CBI to support the deletion of zeros on the currency
25/06/2012 19:13

Erbil, June 25 (Rn) – The Finance Committee of the House of Representatives of ethnic Monday that the legislature go to support the central bank policy on the removal of zeros from the currency.

central bank says it completed a road map to get rid of three zeros from the currency to reduce the mass Cash and ease of financial transactions in line with the new situation of the Iraqi economy. But the government and the Securities Commission Ibdita Khchithma that affect the process negatively on the financial trading market in Iraq Stock Exchange.

A member of the Finance Committee parliamentary Najiba Najib told the Kurdish news agency (Rn) that “there is a tendency by the legislature to support a political central bank to restructure the Iraqi currency and delete zeros at the beginning of next year. ” She explained that “the subject began to mature day by day for the members of the Finance Committee and the Economic Commission,” noting that “the preparations of the central bank to implement the project under way but it is not incomplete until now. “

The market is in weeks fluctuation in the exchange rate of the dinar against the U.S. dollar, which cited experts to restrictions imposed by the Bank on sales of hard currency. and the imposition of bank procedures more stringent in the auction to sell the dollar after it said that the currency you go to countries neighbors, especially Syria and Iran imposed upon economic sanctions. and drew Najib is Deputy for the Kurdistan Alliance that “the project will be implemented over two years by government banks, and will be part of the new currency coins of small denominations as there will be coins large corresponding to $ 180-200 thousand Iraqi dinars from the current currency. “

she said, “through discussions extensive with the central bank and what has been providing us with the studies from the World Bank, the project aims to support the Iraqi currency as well as introduction of new categories of currency markets as well as reduce the size of the money supply, as well as the inclusion of the two languages Arabic and Kurdish in the currency. “

The main tasks of the Central Bank in managing monetary policy in the country and raise the level of the value of Iraqi dinar and deal with inflation in the country. the Iraqi Central Bank and four branches in Basra and Sulaymaniyah, Erbil and Mosul.

http://bit.ly/LO6FWi



A source at the central bank reveals "for the Iraqi gate" criteria for acceptance or rejection of banknotes

  • 06/25/2012 10:58

Baghdad, "Iraq's Gate" economics editor

A source at the Central Bank "of the Iraqi gate" Today, ethnic, criteria for acceptance or rejection of banknotes in transactions to facilitate the circulation of cash within the banking system and the rest of Iraqi institutions and the public.

The source revealed the uncles of the bank to the general Iraqi banks counting paper cash fit for circulation if it had not reached harm or damage affects the shape, color, size and if there has been a rupture of one or more, including not more than 3 cm were repaired tape transparent so that it does not affect the features real. And if hit by a break in one of the angles up to 2 cm.

The source explained that "the banknote is considered unfit for circulation and compensate for the full value when they are submitted to the Central Bank and its branches and banks if Mthrih and if he was cut in more than one angle if they are installed with adhesive tape Transparent or more in length, display, or different numbers or subject to damage burning drowning or endorsement by an official having jurisdiction. "

"When it is considered the cash fit for circulation are offset by not less than 90% of their value if they are buried or burned or washed or Mkarodh in whole or in part after making sure of its authenticity, as well as if stuck with exotic materials and affected features or perforated hole or more." .

He noted that the paper is not valid when presented does not compensate if it lost 50% of its area or contained the writings of the seals or affect the shape.

The source explained: "If not counting cards as a result of hit hard procures the relevant committee to compensate the damaged currency at the Directorate General for the issuance of the cabinets and an estimated quantity and value of the decision is ratified by the Central Bank Governor or the Director-General of the issue and cabinets.

The Central Bank of Iraq announced (29 September 2011) that the year 2013 will see the deletion of zeros and replacement of the currency, which warned him, officials and economists because of the presence of mafias currency is preparing to rig the trillions of Iraqi dinars to replace them in the light of the planned changes. Had demanded the prime minister's central bank to wait project to delete the zeros of the three local currency, saying he was a big project and needs to be enough time to apply

Underscoring the deputies, "The central bank completed all the procedures related to the project to delete the zeros of the three local currency and the expected signal from the executive and legislative branches to begin to implement it."



Tuesday, June 26, 2012 14:35

Central Bank: new instructions to regulate the sale and purchase of foreign currency

Central Bank: new instructions to regulate the sale and purchase of foreign currency

BAGHDAD / Baghdadiya News / .. revealed the CBI and in the words of his deputy, the first appearance of Mohammed Saleh, new instructions to be issued by the bank on Wednesday will add new mechanisms for the sale and purchase of the dollar and increase control over this sector.

It is noteworthy that the Iraqi market exposure to shocks violent, most recently two months ago from now, where the decline in the value of the Iraqi dinar against the dollar difference of up to more than 14 points, and quickly, as a result of what he called the central bank crisis exported from abroad, specifically through Iran and Syria after the imposition of international economic sanctions on them .

Saleh added in a statement to the Agency / Baghdadiya News / he "and as everyone knows that one of the most important policies of the Bank in managing monetary policy is to maintain the stability of currency exchange rates and the defense of the exchange rate and the stability achieved, and here and after the occurrence of oscillation the last, unfortunately, worked on third parties and exploited by small-scale speculators to make profits temporarily, to come to the instructions we will develop a set issued on Wednesday and be in force from the same date. "

He continued that "the Central Bank Law of 2004 and as an independent body responsible for monetary policy in the country, it is the right version and follow all what he sees as necessary to achieve the objectives above, and include these instructions to reduce the purchase and sale of foreign currency for other purposes the right place, namely trade and other official dealings away from the so-called money laundering or terrorist financing, etc., and here will be more secure transactions and (pasteurized) any health and free from impurities. "

He noted that "the new instructions will not guarantee the closure of banking offices or small shops banking, but will keep it even though the bank earlier work and after it had been buying and selling process confined within the auction currency in the bank only, we have worked to expand sales and purchases to cover all branches of banks government in Baghdad and the provinces and soon will be the private banks in the ports, it is important that the new regulations be more support for our work, safer and more control over the process and prevent the circulation of currency subject to the wishes of speculators in the market. "

Saw the last auction of the Central Bank sold 203 000 577 thousand dollars at 1166 dinars / USD, accounting for foreign remittances of which $ 191 million.

And mayors of the Central Bank during the past four months to issue resolutions to raise the value of Iraqi dinar by 17 points against the dollar, in a move towards larger project which is the equation of the value of the dinar and the dollar in the future, will be carried out after replacing the existing currency with a new one which deleted three zeros.

He had earlier called for a number of experts and members of the parliamentary economic committee, including Nora Salem Albjara tougher finding mechanisms to control the currency market and reduce the possibility of manipulation from outside the border.

The Albjara Agency / Baghdadiya News / "Everybody appreciates the role of the Central Bank, which managed to impose its policy on exchange rates and enhanced the value of the dinar for years to nine years, but the Iraqi market fear always shakes violently, and this increased the desire to deal in dollars even out buying and selling daily, and fear from dealing in dinars, which was supposed to be the most stable national currency and the most admissible. "

Ruled out Albjara "the end of the external influences on the value of the dinar is present and, unfortunately, there are those promoted by the inside, and also announced it has entered the large quantities of counterfeit currency of the country was the end of which is to hit the dinar and the withdrawal of the largest amount of real currency abroad, and there are goals of many, some terrorist-related and other targeting the country's economy and the other end of them to turn a profit, and here we really need more stringent mechanisms to control the entry and exit and the movement of money in full, finished / 27.

Last modified on Tuesday, June 26, 2012 16:24

CBI to import eco-friendly equipment to destroy coin and paper currencies

Posted: June 25, 2012 

CBI: coefficient of import-friendly environment for the destruction of paper currencies

06/25/2012

BAGHDAD / JD / .. Central Bank of Iraq announced on his contract for the import coefficient of damaging the coin-friendly environment.

The deputy governor of Bank of the appearance of Mohammed Saleh told / JD / “The Iraqi government contracted to purchase equipment for the destruction of eco-friendly currencies according to the latest global technologies.”

Saleh added that “the new devices will be distributed to banks and will be erected in places under the ground, indicating that new hardware will work to transform the categories of paper to be destroyed to ashes, and without issuing any heat or waste gas.

Iraq had adopted traditional methods in the destruction of currency is the author Commission to carry out the destruction of official documents of a chairman and two members elected by the Iraqi Central Bank Governor shall not be destroyed official documents, but the decision of the committee that decides, under its powers destroyed by burning in the presence of all members of the Commission and regulates the minutes thereof signed by them and send a copy to the competent departments.

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CBI: The process of deletion of zeros will not affect the entry of citizens

Posted: June 26, 2012 

BAGHDAD / Baghdadiya News / .. Iraqi Central Bank confirmed that the new change in the process of deletion of zeros will not affect the entry of citizens or their wealth, but will contribute to the cancel (dollarization) Amounts in banking.

The appearance of Dr. Mohammed Saleh, Deputy Governor of the Central Bank of Iraq, Monday, during the symposium at the University of Baghdad, entitled (monetary policy and the deletion of zeros) attended by agency / Baghdadiya News / “The new change in the process of deletion of zeros will not affect the entry of citizens or their wealth or contractual obligations them, but it will contribute to the cancellation (dollarization) the large amounts in banking transactions. “

It should be noted that the CBI had said (29 September 2011) that the year 2013 will see the deletion of zeros and currency exchange rates, pointing out that the current formed a cluster of large cash estimated at 30 trillion dinars.

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CBI: The demand for a ziggurat on the currency re-life project to delete the zeros

Posted: June 26, 2012

Deputy Governor of the Central Bank of the appearance of Mohammed Saleh, said that Council requested the Minister put the ziggurat as a slogan in the new currency re-life project to delete the zeros.

The appearance of the reporter (JD) that the request came during a cabinet meeting in Nasiriyah ziggurat status symbol as an emblem in paper currencies with large groups, suggesting that the government secure the project and its usefulness as a national project. Saleh added that the freeze on approval of the project was the result of fears of one polarity major participation in the approval, the Council of Representatives and the Council of Ministers and the Supreme Audit along with the Central Bank of the idea, noting that the concerns centered on the inadequacy of the political and territorial so big steps.

He assured the benefit of wary, saying, “The project is a change for the better and that any change requires courage and determination from all parties said the Deputy Governor,” If you’re still economic development projects hostage fears not Iraq has seen no tangible progress on all fronts. “The Finance Committee representative revealed that the month January of next year 2013 will see the deletion of three zeros and the replacement of the currency, as will next September 2012, the direct printing of new currency in different categories. It is noteworthy that some economists believe that Iraq is ready for the time being to delete the zeros of the Iraqi dinar, pointing out that the deletion needs to stabilize the security and political as well as economic stability.

The government had decided to wait in the application process to delete the zeros of the national currency. said Director of Cabinet Affairs in the Secretariat in an earlier statement: that the Council passed a resolution whereby the patient in the application of the process of removing the zeros from the currency National. He explained that the decision requires to stop the procedures all related to the operation and until further notice. He said “the decision to the Council of Ministers, which will carry number (111) for the year 2012 and approved at regular fifth session, held the day before yesterday was based on that introduced by the Committee on Economic Affairs. The central bank decided to adopt some of the features and pictures to be developed on the new currency after deletion of zeros ..

And obtained by / JD / a copy of the book’s central bank, which included the historical and cultural landmarks and images to be placed on the implications of the currency close to the mentality of the Iraqi public and culture .. According to the authors included a paper currency a number of monuments and pictures the most important, put a picture to bridge the imams and the magnitude of the significance of high-value if it reaches the bridge between both sides of the River Tigris and the terminal Mrakadi Imams Musa al-Kazim (AS) and Abu Hanifa (ra) .. He said a book entitled the bank to the Directorate General for the issuance and cabinets: This is dedicated to the highest class of the new currency a category (200) two hundred dinars and the dinars on the back of this paper and put a picture of the Baghdad school ..

He said the central bank: put on the face of the category (100) dinars, hundred dinars, pictures of Azwaip area in Baghdad, one of the areas which was set up by the ancient suspension bridge, one of the achievements of the Iraqi state .. Iraq is one of the leading countries in the establishment of this type of bridges, shown in the image building of the Iraqi Central Bank, in addition to the building of the University of Baghdad, is the oldest scientific institution in Iraq in the second half of the twentieth century, while placed on the back of the paper image (ziggurat), one of the features of construction Iraq at the dawn of history .. According to the book’s central bank: put on the face of the paper category (50) JD (fifty dinars) image of the King Codaa one of the most kings dynasty of Lagash II (King XII), a God of growth and fertility.

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CBI: Will import equipment to check counterfeit money

Posted: June 26, 2012 

26/06/2012

BAGHDAD / JD .. The Central Bank announced its intention to buy electronic devices to check the optical detection of money and fake ones. The deputy governor of the Central Bank of the appearance of Mohammed Saleh told (JD) that the central bank intends to import counterfeit money detectors modern techniques noting that the new machines will be linked on the web for the purpose of updating the latest information about the counterfeit money and methods of detection.

Saleh added that the new devices will work through the process of receiving the old currencies after the ratification and implementation of the project to delete the zeros and the new currency trading. Iraq has suffered during previous periods of the existence of mafia fraud during the Iraqi invasion of Kuwait in 1990 and the war that followed, through the 1990-2003 economic blockade and even now, the fraud is still aimed at the Iraqi currency attached to the Iraqi economy a lot of damage.

The Iraqi Central Bank has announced a contract to import plants destroy the coin-friendly environment. The deputy governor of the Bank on the appearance of Mohammed Saleh told / JD / “The Iraqi government contracted to purchase equipment for the destruction of eco-friendly currencies according to the latest global technologies.” Saleh added that “the new devices will be distributed to banks and will be erected in places under the ground, indicating that new hardware will work to transform the categories of paper to be destroyed to ashes, and without issuing any heat or waste gas.

Iraq had adopted traditional methods in the destruction of currency is the author Commission to carry out the destruction of official documents of a chairman and two members elected by the Iraqi Central Bank Governor shall not be destroyed official documents, but the decision of the committee that decides, under its powers destroyed by burning in the presence of all members of the Commission and regulates the minutes thereof signed by them and send a copy to the competent departments

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An invitation to open branches of international banks in Iraq

Posted: June 26, 2012

25/06/2012 0:59

BAGHDAD – Al Sabah
called on the Member of the economy and investment MP Ibrahim Rikabi to the need to permit the opening of branches of international banks solid in the country to boost investment forward.

said Rikabi: The companies major investment needs to global banks prudent to deal with it being used technology of modern banking in its dealings banking to secure their money and to open special funds for lending to economic projects in the country.

He added that the failure of the banking sector one of the reasons for making investors reluctant to come to Iraq for investment, which led to make the movement of investment in the country is weak, stressing the importance of providing invitations to international banks are known to open branches in the country.

He pointed out: that the idea of opening branches of international banks in Iraq would create an atmosphere competitive between Iraqi banks as well as it was moving international experience developed in this area to the banking sector, which will gain the latter a development and rebound. consists of the banking system in Iraq from the forty-three banks as well as the Bank central and distributed according to ownership between (7) state banks and (30) banks waged, including (7) Islamic banks in addition to (6) foreign banks.

In spite of the Investment Law No. 13 of 2006 had excluded the investment in the banking sector of its provisions but the investment in the banking sector takes its legal framework on the basis of legal central bank No. 56 of 2004, banks No. 94 of 2004, with a minimum of the founding of a bank in Iraq 100 billion Iraqi dinars (ie, up to $ 85 million).

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CBI reveals attempts to make the 1000 dinars equivalent to one dollar

Posted: May 24, 2012 

May 24, 2012 (CNH) An official source at the Central Bank for the open windows of selling the dollar in the Rafidain and Rasheed played down the low exchange rate of the dinar against the dollar to four percent, compared to teams exchange rate two weeks ago, hoping to up the difference to two percent on the price the auction.

The Vice Governor of the Central Bank of the appearance of Mohammed Saleh said the two banks of government every citizen Sepeaan ten thousand dollars up to a maximum. , Pointing out that the sale price would be a thousand and one hundred and eighty-nine dinars to the dollar

And Saleh said the recent actions have had a positive impact of lower exchange rate of the dinar against the dollar.

According to Saleh, “the central bank is looking forward in the coming months, to be worth a thousand dinars, one dollar, indicating that the Bank is moving forward towards lifting the dinar exchange rate in proportion to the strength

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Alternate Translation:
Detection of Central Bank official that open Windows of selling dollars in the Rafidain and Rasheed played down the low exchange rate of the dinar against the dollar to four percent, compared with the exchange rate difference two weeks ago, hoping to reach the difference to two percent on the price of the auction.

Drew Central Bank Deputy Governor Mohammad Saleh appearance to Government banks they will sell every citizen $ 10,000 maximum. , Pointing out that the selling price will be a hundred and eighty-nine dinars for one dollar

Saleh noted that recent measures have had a positive impact on the depreciation of the exchange rate of the dinar against the dollar.

According to Saleh, “the Central Bank looked forward in the coming months, to be equal to 1,000 dinars one dollar, noting that the Bank is moving forward towards lifting the dinar commensurate strength.


CBI: our goal to reduce prices and raise the value of the dinar

Posted: May 23, 2012 

05/23/2012

An official at the Central Bank of Iraq that “the goal is to reduce the Bank’s President and response rates of inflation.”

The deputy governor of the Bank Mazhar Mohammad Saleh said that “The objective of the Bank President is to reduce prices and to address inflation,” noting that “the Bank seeks to raise the value of Iraqi dinar exchange rate in proportion to the surplus in the balance of payments of Iraq and especially the current account that a surplus of the 8 to 10% of the gross domestic product. “

Saleh pointed out, “according to the Sumerian News” that “the surplus in the balance of payments to him from the economic power of the financial impact on the rise in bank reserves to 18 percent,” pointing out that “the economic power of Iraq’s financial must be reflected on the strength of the Iraqi dinar, which in turn will be able to reduce inflation. “

The Deputy Governor of Central Bank of Iraq that “monetary policy is able to accommodate inflation and that he would intervene strongly to curb inflation in the moments when what he found up to the worry stages of stability.”

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CBI calls for economic reform for the country and reduce dependence on government

Posted: May 23, 2012 

Erbil, May 23 / May (AKnews) – The head of the Central Bank of Iraq Shabibi today that the Iraqi economy needs to be reformed to reduce its dependency on the government, where you should pay more attention to non-oil sectors of small, he said, adding that he does not need to encourage the private sector.

The network quoted France24 French, quoting Shabibi, who heads the organization since the mid-2003 as saying: “We rely entirely on the government to provide employment opportunities, and the provision of development (…) where there are a lot of people think that the development of non-oil sector will take a long time, Perhaps the easiest way to go.

He called Shabibi Iraqi authorities to ease regulations in the sector of work and an increased focus on agriculture, industry and technology, adding that the priorities for the government that is working hard to ease the working conditions of the private sector, noting that we have in fact some types of regulations that hinder each type of development for this sector .

He knew a lot of people in the private sector to come to Iraq for investment, but can not continue because there are many problems facing them, believing that it is important to alleviate the conditions in order to work people, as the sectors other than oil can work, noting that Iraq is in industries non-oil needs a lot of work. “

He said that if Shaibi we talk about the reduction of unemployment, we must develop a truly non-oil sector, although it is very small, but is one of the sectors which should focus on. “

Said Franz 24 that sales of oil dominates Iraq’s economy and government revenues, reaching a yield of oil last month’s $ 8.8 billion, the highest income since 1989, and is generally two thirds of GDP and 95% of government revenue, adding that Iraq currently produces more than three million barrels per day, but seeks to increase this figure significantly in the coming years.

She said that despite the large share of oil in the economy, however, constitute only 1% of jobs, according to UN reports.

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Central Bank Governer: Iraq must pay more attention to non-oil sector

Posted: May 22, 2012 

Sinan al-Shabibi calls for red tape to be cut to promote private businesses, says officials should concentrate efforts on boosting non-energy-related industries.

‘The government is expanding, too much’

Iraq needs to reform to lessen its economic dependence on the government, and must pay more attention to its tiny non-oil sector, the head of the country’s central bank urged in an interview on Monday.

Sinan al-Shabibi, who has headed the institution since mid-2003, called for red tape to be cut to promote private businesses, and said officials should concentrate their efforts on boosting non-energy-related industries rather than the lucrative crude oil sector.

“The government is expanding, too much,” Shabibi said in an interview in English at the Central Bank of Iraq’s (CBI) headquarters in Baghdad.

“(It is) as if we are relying completely on the government to provide jobs, and to provide development. … A lot of people think that developing the non-oil sector will take a long time, and probably they go the easy way, the government,” he said.

Oil sales dominate Iraq’s economy and government revenue, bringing in $8.8 billion last month, the highest figure since 1989. Overall, it represents two-thirds of gross domestic product and 95 percent of government income.

Income from the sector is also rising. The country currently produces more than three million barrels per day, but is looking to increase this figure dramatically in the coming years.

Despite its outsized share of the economy, however, oil accounts for just one percent of jobs, according to the United Nations.

That, combined with a moribund private sector, has resulted in an unemployment rate officially reported at 12 percent, but estimated to be as high as 30 percent.

Shabibi, an economist who wrote his doctoral thesis on managing industrialisation during times of uncertain oil prices, called for authorities to ease regulations on private business and step up their focus on agriculture, industry and technology.

“Another priority is for the government to work very hard to ease the conditions for the private sector to work,” he said. “We have, actually, some kinds of regulations which impede all kind of development for the private sector.

“I know a lot of private sector people come to the country, but they cannot actually continue because there are a lot of problems facing them. I think it is important that we ease conditions for people to work, we ease conditions for companies to work, so that… other sectors can work.”

Shabibi said that Iraq’s non-oil industries needed “a lot of work”.

“If you want to talk about reducing unemployment, all these things, really you should develop … the non-oil sector,” he said. “The non-oil sector, despite the fact that it’s very small, is the one where we should concentrate.”

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Governor of Central Bank of Iraq: Iraq needs to reform its economy by reducing its dependence on the government
05.22.2012 15:04:45
[-] Text [+]

BAGHDAD (Iba) .. See the Governor of Central Bank of Iraq that Iraq needs to reform its economy by reducing its dependence on the government, in parallel with greater emphasis on non-oil sectors in a country of oil money 94 per cent of the revenues.

Shabibi said in an interview with AFP that the government is expanding more than it should, in reference to the impact of government on the economy.

He said this looks as if we rely entirely on the government to provide jobs and growth, and many people think that the development of non-oil sectors will require a long time, so choose the easiest way, through the Government.

Iraq has the third oil reserves in the world is estimated at 115 billion barrels after Saudi Arabia and Iran, oil money and constitute about 94 percent of the country’s revenues.

The government announced Monday its oil exports rise during the month of April last, to reach 75.3 million barrels per day, the highest rate of export of oil since 1989.

The Government indicated in its statement that the amount of revenue derived from exports of the month in April amounted to eight billion and $ 795 million, noting that the average selling price of 116.7 dollars per barrel.

The Minister of Oil Abdul Karim Laibi confirmed early March that the production of Iraq’s daily oil is the highest since 1979, with Deputy Prime Minister Hussein al-Shahristani said production exceeded three million barrels.

However, do not represent the functions associated with the oil sector, only about one percent, according to UN figures, in a country where unemployment rate is about 12 percent, but unofficial figures indicate that the unemployment rate touches 30 percent.

And calls Shabibi, an economist who runs the Central Bank since mid-2003, the authorities to ease the laws imposed on the private sector, and focus on agriculture, industry and technology.

He explains that one of the priorities that the government is working hard to alleviate the conditions imposed on private business, he said, adding there are laws or hinder certain procedures for all forms of growth to the private sector.

Shabibi explains, saying that many people who work in the private sector come to the country, but they can not keep going because of the problems they face. I think it’s important to Nguetta of conditions even allow people to work, and also reduce the conditions imposed on the companies’ work to other sectors begin to flourish.

And at the same time indicates that the non-oil sectors need to work great. Shabibi says if we want to talk about the reduction of unemployment, we must develop non-oil sector, a sector, although it is relatively small, but the goal must be set our focus on it.

Iraq has suffered from continuous violence since the invasion in 2003 at the hands of U.S. forces has killed tens of thousands, which hampers economic growth.

It also said Iran and Syria, which are considered one of the most senior partners of Iraq, are subject to international sanctions, over its nuclear program first, and second because of the suppression of a protest movement which continued for more than a year.

Iraq has seen the market in recent weeks, an increase in demand for the dollar led the domestic currency to decline, an increase officials believe it is related to the endeavor of Syria and Iran to earn hard currency from Iraq.

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CBI provides Finance Committee steps on how the currency will switch

Posted: May 10, 2012 in Iraqi Dinar/Politics
Tags: , , , , , , ,

The parliamentary Finance Committee urged the Central Bank to coordinate monetary policy with fiscal policy of the Government to increase its cash and how to keep it, with the currency switch discussed and small categories and sizes.

Member of the Committee and a Deputy from the National Alliance al Haitham for/JD/”financial parliamentary discussed with the Central Bank to increase its cash and are preserved through cooperation with the Government for its policy of financial support Bank appropriately.”

Jaburi added that “the Central Bank provided Finance Committee currency switch steps and categories and sizes small to add other details.”

And between “that the Commission demanded detailed disclosure about Bank of banks and currency sold and how these funds are distributed properly or if only some of the personalities”.

He is a member of the parliamentary Finance Committee and Deputy from National Alliance to the discussions with the Central Bank on the questions I sent him about steps that annoy her anti-money laundering”

Alternative translation:

CBI provides Finance Committee moves the currency switch

urged the Parliamentary Finance Committee of the Central Bank to coordinate monetary policy with fiscal policy of the government to increase the mass of cash and how to preserve them, as discussed switching the currency and small categories and sizes.

A member of the Committee and the National Alliance MP for Haitham al-Jubouri / JD / “The parliamentary Finance discussed with the Central Bank to increase its mass cash and that are maintained through cooperation with the government because of their fiscal policy to support the bank properly.”

The Jubouri “said the central bank provided the Finance Committee moves the currency and switch categories and sizes, small ones in addition to other details.”

And between Jubouri “The Committee asked the Bank to disclose detailed foreign exchange banks and sold them and how these funds were distributed properly or you were just some of the characters.”

He noted a member of the Finance Committee and the parliamentary deputy for the National Alliance that talks with the Central Bank addressed the questions directed to him on the steps Atabha to combat money laundering”

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President Najafi and Shabibi discuss ways to stabilize national currency and revive the economy

Posted: May 10, 2012

Date: Thursday, 10-05-2012 01: 56 pm

Baghdad (newsletter) … Search House President Najafi with Central Bank Governor Sinan Al-Shabibi exchange rates and how to stabilize the national currency in order to revive the country’s economic situation.

President Najafi said in a statement received (News Agency news) on Thursday: continuous coordination between the Central Bank and the relevant parliamentary committees to find solutions to the problems afflicting Iraq in the areas of banking and monetary policy.

Full House supported the independence of the Central Bank in accordance with the provisions of the Constitution, referring to the refusal of the Council to intervene in the work of this enterprise.

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CBI governor calls for financial representative to the non-interference in his work

Posted: May 9, 2012 

09 May, 2012 07:12:24 Huda – Baghdad

Qald Vice Chairman of the Finance Committee MP Ahmed Hassan Faizullah that the committee held a meeting today Rabaa in the presence of the Governor of the Central Bank.

He touched on several topics of interest to the national economy and the Iraqi dinar, most notably preserve the value of the dinar against the dollar and how to work a project delete three zeros from the currency, indicating failure to reach any conclusion about those topics.

He Faizullah that his committee proposed to the Central Bank Governor Sinan Shabibi act reservoir monetary existing hard currency “dollar”, which is estimated at more than sixty billion dollars, in order to stabilize the exchange rate of the dinar against the dollar, but the Shabibi refused and asked not to enter any point of his work that the Central Bank is an independent body.

He ruled the Attorney Faizullah restoration of the Iraqi dinar during the current period with the absence of local products and dependence on extractive industries “oil, attributing this to the increased value of the dinar need a strong economy based on large sectors of the economy.

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Shabibi Parliament undertakes to raise the value of the dinar

Posted: May 7, 2012 

05/07/2012

Baghdad: As promised JD central bank governor and hosted during the day yesterday in the parliamentary Finance Committee raised the value of Iraqi dinar to better than it was before the start Ptzbzbh through the mechanics of solid and secure, the bank announced the auction on the sale of $ 190 million during the auction on Monday.

It was the opening of bids for the sale and purchase of dollar daily nineteenth and twenty-two thousand for buying and selling foreign currency at the Central Bank of Iraq day Monday, 7/5/2012, and the number of banks contribute to the auction 16, either the basic price, which landed him selling dinars / USD 1166, while the total amount sold by the Bank at the price advertised (000,153,190).

The amount purchased by the bank at the price advertised was zero, and the total purchase offers (USD) (000,153,190) and the bank confirmed that the price of the sale of remittances (1179) JD / dollar, including the central bank and a commission of $ (13) dinars per dollar.

The cash sales price (1179) JD / dollar, including the central bank and a commission of $ (13) dinars per dollar. While the quantity sold in cash of $ (12,210,000) dollars and quantity sold amount of remittances (000,943,177) dollars.

And the central bank earns a commission of (13) dinars per Dolarma discount (8) JD / dollar amounts for purchased ie, that: – the purchase price of the dollar cash = (sale price of the dollar cash – 8). And the Iraqi Central Bank continues to sell and buy the dollar and the price (1166) and receive the same commissions mentioned above.

For its part, showed a member of the parliamentary Finance Committee Najiba Najib’s (JD) Achtdavc that its central bank governor Sinan Shabibi to discuss several files concerning the work of the Bank, including money laundering mechanisms and the reasons for the low exchange rate of the dinar against the dollar, as well as deleting three zeros, and others.

And on the value of the dinar Najib stressed that Shabibi pledged to raise the value of the dinar, and again in a short period and across a very solid mechanics, attributed the reasons for minimize and, according to conservative interpretations of the external and internal factors.

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Governor of the CBI in Hospitality House of Representatives on Monday

Posted: May 7, 2012 

BAGHDAD / With: Member of the Committee declared the economy and investment, Salman al-Moussawi said his committee will host tomorrow’s central bank governor Sinan Shabibi and Deputy Prime Minister for the Economy Rose Nuri Shaways to discuss the exchange rate of the dinar against the dollar.

Moussawi said: “I will put the guests on the set of proposals to end the state of the dinar exchange rate fluctuations, including the abolition of currency transfer companies because it has become a burden on the citizen and the state of corruption marred by the financial impact on the dinar exchange rate.”

Al-Moussawi said: “in the proposal called for a return to the mechanism that was followed in the nineties and eighties and of the central bank to take over the conversion process itself and end the vicious excess between the Bank and the citizen.”

He continued, “The second proposal is to form a committee within the integrity of the central bank made up of experts in accounting and auditing firms to monitor contracts and sort the good from the bad.”

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Banker: global banks to enter a partnership with the Iraqi

Posted: May 7, 2012

Date: Monday 05/07/2012 7:12

Between the Director of the Association of private banks Abdul Aziz Hassoun entry-known international banks for the purpose of sharing with Iraqi banks in the performance of its duties banking in the coming period.

The Goldfinch, according to the Agency (news): There is a great desire by the international banks to contract with the Iraqi banks in order to participate in its work and technology transfer, global banking to it, adding that negotiations are still ongoing with council departments, banking, and that the coming period will witness more than international bank involved with an Iraqi bank.

He added that all the indicators and the results released last year showed that the Iraqi banking sector began to develop and lead its work well, which is reflected in the budget, which increases continuously and achieve good returns through shares and shareholders.

The central bank has set a three-stage plan to raise banks’ capital to 213 million by June 2013 to stimulate lending at a time when Iraq is recovering from Chapter VII sanctions.

It is noteworthy that Iraq has seven banks owned by the state and 23 private banks, eight Islamic banks in particular, according to the site’s central bank, while dominated by the banking sector, banks, Rafidain and Rasheed, and the subject is currently restructuring to pay off debts that have accumulated after years of war and sanctions.

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Parliamentary circles: the phenomenon of foreign currency to replace fake ones cause great damage to the economy

Posted: May 7, 2012 

Date: Monday 05/07/2012 7:15

Witnessed the emergence of local markets, specialized gangs replacing foreign currency in the country, Iraqi currency counterfeit.
And warned the circles of parliamentary and other economic expert (of the Agency news) from the exploitation of neighboring countries, unstable political situation in Iraq enter the counterfeit currency and replace it with hard currency “dollar” to their advantage.

And revealed some of the banking offices in Baghdad and the southern provinces for the emergence of forged Iraqi currency, class (10) thousand dinars and in large quantities, and finds that the category of specialists (10) thousand dinars easy rigging of the other categories of the local currency.
He says the decision of the Economic Commission Mahma MP Khalil: You must fight the gangs forged currency and specialized knowledge of the source where it comes from this currency to Iraq, being a dangerous phenomenon threatening the economic security of the country.
Khalil says: In case of failure to take tough measures against counterfeiters of coins of the Iraqi economy would suffer significant losses through the drain of hard currency “dollar” and the proliferation of counterfeit currency in the country.
Is the phenomenon of counterfeit currency of the most dangerous phenomena on the national economy, one of the economic crimes that are punishable by law.
He indicated that the Iraqi environment is not attractive to foreign currency because of the political situation is stable in the country, making neighboring countries dare and take steps to destroy the Iraqi economy through the introduction of the currency counterfeit and replace them in dollars in order not to take Iraq Mkanadtha economic and be an active player in the region.
He acknowledged the Iraqi Central Bank Governor Sinan Shabibi earlier in the presence of counterfeit currency in circulation in Iraq is limited proportions, calling for the House of Representatives to pass a law reset the Iraqi dinar, a deletion of three zeros from the currency and replace the current currency of more sedate difficult to falsify.
The several governorates, including Karbala, Najaf, Babil, Wasit, Sulaymaniyah and Baghdad, has seen in recent months, adjust the amounts of counterfeit currency, and detained by local authorities in these provinces specialized gangs forged currency, promotion and fraud on the citizens, and noted press reports that there are presses specialized rigging the currency in a number of areas of the capital Baghdad.
A member of the Finance Committee MP Ibrahim al-Mutlaq said the phenomenon of entry of counterfeit currency by neighboring countries and replace them with hard currencies will lead the country into economic disaster is difficult to avoid.
He said al-Mutlaq (the Agency news): The trends of the U.S. dollar in the non-specific, but is sold at auction the central bank without knowing the trend is gone is it to invest or to smuggling or import from outside the country, calling for setting the direction of exchange both within the country or outside by the authorities concerned.
He called on security authorities to the need to take the role to prosecute those who enter the money through the control of border crossings to reduce the danger to the national economy.
It should be noted that the Interior Ministry said in recent days arrested a number of people of Iranian nationality in southern Iraq in possession of a quantity of the Iraqi currency counterfeit, as well as the emergence of other replacement hard currency currencies Iranian by Iranian pilgrims coming to the holy sites, as well as men of their actions on the Iraqi border Iran, where he sees specialists in the field of the Iraqi economy that the phenomenon of replacement of hard currency “dollar” currency of Iran is not legal, but also serves as the smuggling of foreign currency of the country, presumably fought by the security authorities, stating that the Iranian currency is not international, but are not allowed to get out of the country. This phenomenon affected the value of the dollar in Iraq, and raised the demand for purchase by auction the central bank.
The U.S. dollar is witnessing a big increase and unprecedented value to him in front of the Iraqi dinar during the current period.
With the exception of a member of the Finance Committee MP Abdel Hussein al-Yasiri: the phenomenon of replacement of hard currency in the currency of Iraq fake a “great danger” on the Iraqi economy, calling for the fight to save the national currency deterioration.
He Yasiri (of the Agency news) to: that the political divisions and conflicts taking place in the Iraqi arena during the current period played a key role in breaking down the national economy and the Iraqi dinar, which made the government preoccupied with political problems, leaving the important things and gave way to the outlaws of neighboring countries to take on the currency Iraqi difficult pumping large quantities of counterfeit currency into the country.
He suggested Yasiri use devices allergic closer to the currencies in all Iraqi banks and banking offices and even shops in order to find out counterfeit currency and the arrest of traffickers. The Central Bank of Iraq has made adjustments to their systems to sell the dollar in the official auction, because the traders and the offices of Banking remove large amounts of dollar to Iran and Syria, which applied the right to economic sanctions led to the deterioration of their local currencies worldwide, where he started the Central Bank, private banks claim documents to prove their need for hard currency.

http://bit.ly/KHmxqM



Discuss currency matters including deletion of zeros

Posted: May 5, 2012 

Finance Committee approves abolition of pensions for members of local councils.And tomorrow is hosting Central Bank
Date: Saturday, 05-05-2012 02: 32 pm

Baghdad (newsletter) … Finance Committee approved in the Chamber of deputies to cancel pensions for members of local councils in the future.

The Commission said in a statement received (News Agency news) on Saturday that the Committee agreed in principle to the proposed Act abolishing pensions for members of local councils in the future to avoid wasting public money.

Regarding the draft law student grant by Government statement said: the Committee considers dramatically by the Parliamentary Commission on higher education equals needy students with others which alter the draft Basic Law fundamentally entails a financial burden without taking the Government’s view on it which is contrary to law.

The statement said another economic: the Committee decided to host a delegation from the Central Bank on Sunday to discuss some matters relating to foreign currency conversions and three operation delete zeros from currency

http://bit.ly/ILjzXC


Iraq News

Parliamentary Economic Commission demanding the central bank to halt decline in the Iraqi dinar against the dollar




Posted 07/04/2012 06:33 AM



BAGHDAD - "squares of liberation"
Commission asked for the economy and investment parliamentary Central Bank of Iraq to take practical and serious steps to reduce the low exchange rate of the Iraqi dinar in the local markets against the dollar.
A member of the Committee Aziz Sharif Mayahi that "the central bank controls and the application of strict penalties on banks that violate financial regulations and instructions issued by the Central Bank of Iraq, which obliges banks to sell the dollar at the price specified formally."

Building the Iraqi Central Bank (left)
 
Mayahi said in a press statement that "the low price of the dinar against the dollar has caused a rise in commodity prices in the domestic market and to add new burdens on the shoulders of citizens, especially the poor."

He stressed the need "to reveal the spoilers and the development banks and companies off the black list", blaming the Iraqi Central Bank, full responsibility for any reduction in the Iraqi dinar exchange rate against the dollar as responsible for formulating monetary policy in Iraq.


Citizen newspaper » News » Economy


Financial: "Iraq is creating the conditions for even (evening) the Iraqi dinar against the U.S. dollar
Date: Thursday, 04/05/2012 20:48




Citizen / special / Sarah al-Obeidi


At the time when the central bank that its policy on the level near will work to stabilize the Iraqi dinar exchange rate against the U.S. dollar, for mid-level and near will work to equal the exchange rate of the Iraqi dinar against the dollar, a number of finance confirmed that the implementation is the step in such circumstances taking place in the country things are complex and require a brief period in order that the central bank can be in his ability to equal the Iraqi dinar against the U.S. dollar (Citizen News) The follow up this subject and was the first speaker.


Financial expert, Munzer Mohsen said: "that it is very difficult in such complex conditions that are equal Iraqi dinar with the U.S. dollar for the time being at least, the reason for a number of objective reasons is most important that the budget that passed shortly before given a majority for the area Alchglah and not investment, making it difficult the development of the Iraqi economy to diversify its resource-dependent by an estimated 95% on oil exports, and that most of the materials, goods and services imported and non-productive and nationally. He improved ": the problem is the other sensitive to Iraqi oil, which is such a large proportion of the resources of the country is stable prices It is characterized by fluctuations at the global level as he is now at risk of serious and real because of the complexities of the political situation in the region and the risk of transformation into armed conflicts as they are in crisis, the Syrian and the Lebanese south, which relate directly and indirectly, the existing problem between Iran and the Zionist entity, backed by all States Bank and led by the United States and there are threats of increasing direct blow to Iran, which for its part, threatened to close the Strait of Hormuz, which is a port to export our oil major which will negative consequences on the economic situation of Iraq and thus the price of the Iraqi dinar. and resulted in improved in his interview with

(Citizen News) ": he finds that the expectation of excessive optimism that was expressed by a senior officials of the Central Bank of Iraq on the equal rate of the dinar with the dollar but in spite of all that I is hyperbolic pessimistic because the scenario that is analyzed at the highest levels of decision-making at the regional level and international level adjustable or complete change because customary to crises when complicated there are opportunities to resolve them through informal meetings and secret negotiations!, and where there is many concessions on the part of one of the parties due to internal or external pressure versus specific guarantees and it is not predictable Bavtradih equal to the dinar and the dollar, at least until the clarity of picture of current reality tense but I would not call Palmtfjr as he put it.

For his part, said a member of the Finance Committee and MP Abdul-Hussein al-Yasiri ": that the central bank was able to successfully follow the auction method, who is in the bank to maintain the value of Iraqi dinar. He Yasiri" The Central Bank every day working to buy Iraqi currency and sell the dollar, and this is what leads to the process of balance between the demand curve and supply in relation to the dollar, he said, adding that this curve intersects the price higher the demand for increased prices and the greater the supply the price dropped, and in this way maintains the central bank on the price of the dinar Iraqi and values ​​of the economy in general.

The Yasiri ": that the process is equal to the Iraqi dinar against the U.S. dollar depends primarily on core strength and stability of the domestic market as well as political and security stability. explained that the Iraqi dinar is the currency of an important and influential in world markets being covered with cash reserve large of hard currency, which is estimated at (60) billion dollars, and this number is too large due to central bank policy.
Abizaid and Yasiri in his interview with (Citizen News) "that the gross national product and enhanced by oil revenues, which comes to Iraq, amounting to (300) billion U.S. dollars.

http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Falmowatennews.com%2Fnews.php%3Faction%3Dview%26id%3D39121

Central Bank: the deletion of zeros reform project needs to issue a regulation





Author: News Room News Room

04/04/2012 18:20

Deputy Governor of the Central Bank of the appearance of Mohammed Saleh said that the project to delete the three zeroes from the local currency does not need new legislation but needs to issue a regulation to serve as instructions as stipulated by the Central Bank Law. Saleh pointed out that the deletion of zeros reform project because it reduces the large numbers that cause problems in the system of cash payments through the number of digits and the difficulty of counting Kalmbalg of up to trillions.

http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fwww.alahad.tv.iq%2FArticleShow.aspx%3FID%3D6248

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Iraq planning new 50,000-dinar note

Mar 08, 2012 11:45 AM Category: Middle East
According to an article on Iraq-Business News dated 28 November 2011, the Central Bank of Iraq confirmed it will issue a new banknote valued at 50,000 dinars (US$43), but marked as 50 dinars. Deputy Chairman Dr. Muzher Saleh said the bank is working to issue this new money in addition to coins in both Arabic and Kurdish in an effort to address the liquidity problem in Iraq. Currently the largest denomination in Iraq is the 25,000-dinar note (Pick 96). The new currency will include symbols that reflect the diversity of Iraq’s sects and cultures including the Kurdish culture. “Iraq needs to support its economy and its currency through the issuance of a currency similar to foreign ones like the $100 bill,” Saleh added.

Keep in mind, for the past four years Iraq has reportedly been attempting to revalue its currency, and just last month it was reported that new notes would be issued in September 2012.

Courtesy of Mehdi Kasumov.
http://www.banknotenews.com/files/068204b31aad6ab118ac36d98acd89a4-2013.php
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Cash Only: Why the Messy Banking Sector Endangers Iraqi Development


ATM Bank Machine in Kurdistan      

By: Shwan Zulal

Iraq could be one of the richest countries in the world. Yet over three quarters of Iraqis do not have bank accounts. So where do they keep that wealth? And can the Iraqi banking system be dragged into the 21st century?

The banking sector in Iraq reflects the economic mess that the country is in. Basic modern banking practices – like electronic funds transfers for payroll or other banking needs – are almost non-existent and credit facilities are hard to come by. Automatic teller machines remain a novelty while mortgages and loans are a rarity.

Iraq has only a few banks with the ability to transfer funds electronically and the number of branches able to undertake this sits at around 240. Transferring funds directly to Iraqi banks remains a patchy process and it is more often done through other banks in the region, such as more reliable sister bank in Jordan or the United Arab Emirates.

Latest research estimates that around 80% of Iraqis do not have a bank account or even access to one. The public’s trust in the Iraqi banking sector remains low. Which is why most banks in Iraq simply act as a glorified safety deposit box.

Meanwhile Iraq is on track to become one of the wealthiest countries in the world, with the fourth largest oil reserves in the world and the potential to be one of the globe’s leading oil exporters, eventually matching, or even surpassing, Saudi Arabia, currently one of the largest oil exporters in the world. But despite incoming revenue and the potential for growth, economic progress remains slow – and this is partly due to dysfunctional banking sector. There is talk of sector reform and new electronic banking systems – yet this vital sector is still underdeveloped.

The financial sector in Iraq is still in its infancy and a lack of understanding of it, by the political elite and economically illiterate policy makers, has not helped.

Politicians in Iraq keep failing to grasp the importance of this vital part of the economy, a part that could transform the country’s dated economic structure and bring it out of the cash economy and further toward the modern world of finance.

Iraq’s banks were nationalised in the mid-1960s, in line with the government’s nationalist and socialist policies of the time. Before then there had been a privatised banking system. In the early 1990s, former Iraqi leader Saddam Hussein’s regime tried to kick start private banking again but two decades later not much progress has been made.

According to the website of Iraq’s National Investment Commission, the minimum capital required to set up a bank in Iraq is IQD100 billion (around US$85 million). Currently there are 49 banks with licenses to operate – 42 of these are private banks, including 11 Islamic banks and foreign banks. The rest of the licensees are state owned banks like the giant Rasheed and Rafidain banks, which account for the vast majority of banking business in Iraq. There has also been a surge in the numbers of financial and investment firms, with around 40 such licences issued to date.

Interestingly, despite the capital requirement of IQD 100 billion though, some of the private banks have yet to comply with that regulation.

Iraq currently has around one local banking branch for every 60,000 people. Compared to other countries in the region, this is very low: for example, the average in Saudi Arabia is around one branch for every 3,500 citizens. Which means that despite the growth needed in the banking sector and the emergence of many small, boutique-style banks and investment houses, the population still has little, or no, access to banking facilities.

Most Iraqis rely on relatives and friends to borrow money. But obviously this can cause social problems. There are also small organizations that provide loans for start up businesses but the amount that these schemes can lend is usually minimal.

There is also the issue of trust in the banking system. In a recent banking scandal in the semi-autonomous state of Iraqi Kurdistan, local businessmen, most of them based in the city of Sulaymaniyah, lost around US$500 million. This was due to the drop in value of Iranian currency, after US and European sanctions were imposed, which led to the failure of a small but active Iranian “bank”. The so-called bank had been operating as a middleman transferring funds to and from Iraqi Kurdistan, Dubai and Iran. 

Incidents like this do not reinforce public trust in the banking sector; most Iraqis remain very sceptical about local banks due to a lack of rigorous regulation. And the weak banking culture simply encourages the current cash economy. All of which has stalled foreign and local investment needed to rebuild the country. It has also encouraged local businesses to be apathetic about taxation or social responsibility.

Another major issue plaguing Iraq’s banking sector, and for that matter, the private sector too, is the prevailing ideology of top-down politics and big government. Many Iraqi politicians, including Prime Minister Nouri al-Maliki’s ruling party, are suspicious of the private sector; they prefer to stick to what they know best, which is having the state control almost all economic activities – including the banks.

Looking around the world, it is clear that a strong banking sector is essential to a successful economy. Apart from helping the private sector and small business grow by providing financing, the government can also measure and quantify economic activity. Once the banking sector flourishes, and transactions are recorded and regulated, money laundering and corruption is automatically reduced.

Meanwhile on the positive side, the Iraqi stock exchange has been growing faster than any other index in the region, the main stocks being traded involve banking and projections for the stock market’s growth are very optimistic. This is a big vote of confidence in the future of the banking sector.

Additionally there have been talks of banking sector reform, which has included the introduction of electronic banking. While only 20% of Iraqis have a bank account, around 80% have a mobile phone and phone banking was a hot topic at the “Integrating the Banking and Financial Services Sector in Iraq” conference held by USAID and the Central Bank of Iraq last November.

However modernising Iraq’s banking sector will not be achieved solely by introducing new technology. Modernisation needs to start by opening up the markets and bringing in competition. As long as the public banks remain the dominant players in the market, there is not much chance of improving the current situation. Privatising the major banks would be a quick way of revolutionising the Iraqi banking sector. Having said that, this move seems unlikely given the current government record of maintaining control. 

At least some of the problems Iraq has could be healed by a strong economy and more prosperous nation. And the long road toward this begins with better financial structures and a stronger banking sector, complete with all the regulations required.

A free market and the equal right of all consumers to participate in it, has helped to bring communities together. The failure of Iraqi politicians to grasp the urgent need to revamp the banking sector, and to understand the basic economics of growth, has had a significant impact on the pace of development in the country. The failure to carry out needed reforms – and not just those in the banking sector – is one of the major reasons that, as was reported recently, around 23% of the population in resource-rich Iraq are living below the poverty line.


Strategy of monetary policy in Iraq, c 1 / / d. The appearance of favor

Posted: February 27, 2012 

On: Saturday 02/25/2012 14:43

- The entrance
A – I have put monetary policy of the Central Bank of Iraq

Specific Bakannouna number (56) for the year 2004 issue of inflation targeting and to address the rates rising and work to reduce the priority objectives to reach a state of lasting stability in the general level of prices, so by influencing the levels of liquidity and public control of the trends and at the same time to strengthen the financial sector and its balance and stability and stimulated to respond to market signals fired by the Central Bank through its monetary policy.

So he held the Iraqi Central Bank an amendment to the interest rate adopted has a (rate policy), which has become 20% since the beginning of 2007 before declining to 15% in 2008 to stimulate the interest rates overall in the economy in order to achieve the levels of savings high and desirable to suit the level of revenues that stimulate public and businesses to increase Aidaatha the banks as well as to address the high levels of liquidity through the role played by the reference rate of interest in strengthening the mechanical transition from cash to curb rising inflation.

Also rose at the same time the exchange rate of Iraqi dinar against the U.S. dollar (by buying and selling auction of foreign currency since the fall of 2003) at a rate of 34% in part to curb inflationary expectations as of November 2008 and the establishment of equilibrium in the money market between the desire to retain cash balances JD and the real supply of such assets by making the Iraqi dinar more attractive and more likely in the face of the phenomenon – dollarization – and its implications in the deepening problems of replacement cash and hit the elements of stability in the demand for money, which deepens the disruption of the money market. In order to view the realities of the current monetary policy and its results in reducing inflation and stabilizing, this paper comes to the expression of some aspects of central bank policy and the main frame according to the approved cash at the moment. Stating the following: -

B – trends and signals of monetary policy during the era of inflation
- Reflects the inflation phenomenon continuously increasing in the level of prices of goods and services, which exceeded the rates of annual rate of 76%, especially in the month of August of 2006, regardless of supply bottlenecks macro and its contribution to the phenomenon of inflationary monetary policy on addressing this phenomenon and lower levels, in particular the inflationary pressures generated by the by aggregate demand or total spending in the economy.

- If we exclude the two paragraphs of fuel and lighting, transport and communications of the index of consumer prices, as an indicator of inflation, could reach the so-called inflation-basis core inflation, which reflects the pressure of aggregate demand, which stood at the end of 2006, including more than 32% per year (less than half the proportion of annual inflation referred to in the above) came after a decline of about 13.6% annually in the month of October 2008.

- The case of deep-rooted phenomenon in which inflation and inflation Eshrha basically caused by the pressure of aggregate demand led to an imbalance of Amehal exchange market in terms of the public’s desire to retain cash balances over the supply of those assets. Reflecting an increase in the speed of money circulation and an increase in inflationary expectations at a time, as it became the final source of inflationary persistence of the phenomenon.

- And now money is no doubt confounded, is good value in light of real interest rates (negative) made people inclined to hold foreign currency as a store alternative to value over the spread of the phenomenon of substitution of cash (Dollarization Dollarization) any use of foreign currency in domestic transactions over the narrow and weak in market operations Finance and limited their instruments prior to impose stability (due to the unstable nature of the cash demand, which came under the influence of the continuing rise in inflationary expectations, which is pushing the negative real interest rate).

- In spite of the great abilities exhibited by monetary policy in controlling the stability of the foreign exchange market and the stability of the exchange rate of Iraqi dinar against the U.S. dollar during the years 2005 – 2006 and as Achertha exchange rates in the Central Bank auction of foreign currency (as a market exchange central is their prices are the price-oriented or the leader in the exchange market), but the limited contact with their effects in the treatment of deep-rooted in the inflationary phenomenon in general and inflation in particular, the foundation is due to the following reasons: -

- Decline in the real dinar exchange rate below its nominal intervention which the central bank to defend its stability through the auction of foreign currency over the two years mentioned above. Note that this discrepancy between the nominal exchange rate and real was the result of improved oil revenues of Iraq over the past two years and until the present time plus the expenses of the multinational forces high and other foreign currency inside Iraq, which contributed to the deepening of the phenomenon of dollarization and find a gap or difference between the price of the dinar exchange real ( high) and the nominal exchange rate of the dinar (low in spite of its stability), which was then in the depth of the phenomenon of inflation.

- If the oil sector is responsible for generating 55 to 65% of the gross domestic product in Iraq, that was reflected strongly on the size and installation expenses of the state budget, which strengthened the root of inflation basis, after becoming a paragraph of salaries and wages and flows downstream are alone on the For example 60% of the gross domestic product, a non-oil part of the national income is responsible for generating the proportion of 30 to 40% of the total GDP. And that this percentage of GDP is made up mostly of non-oil (no more than 60%) of the service activities of a weak link in the productive sector commodity.

- Since the monetary policy of the country aims to reduce the levels of inflation, the package adopted by the Central Bank of Iraq in the face of inflationary conditions inappropriate began steps in the face of inflation mainly through the creation of influence on the desire to trends in demand for real money stock, which is less than stockpiling available of those assets to achieve a balance between supply and demand of them and lead to stability and balance of the money market as we have indicated in advance. As well as reduce the case of replacement of cash and to address the problems of dollarization (ie, raise the level of desire to keep in cash balances down to the level of inventories by the supply of such assets). And at the forefront of that, comes the importance of providing an atmosphere between the two activities
disproportionate economic and price so that the ratio of money to income (ie, the cash demand) grow in a stable and consistent goals of financial growth and macroeconomic stability.

- Comes on top of that package, work to strengthen the Iraqi dinar exchange rate (which represents the external value of the Iraqi dinar as well as face the phenomenon of substitution of cash and the requirements of the availability of a tight monetary policy tighten policy two-way or across the two signals powerful are the reference exchange rate and the signal of interest, which is enhances the mechanical effect of moving cash in the balance of the money market and then the stability of real activity and as follows: -

I – Raising the external value of the Iraqi dinar (ie, the nominal exchange rate) in a manner commensurate with the real exchange rate to contain inflationary expectations, taking into account the trends emerging inflation and the level of acceptance and availability of reserves, inflation and the level of acceptance and availability of international reserves with the Central Bank of Iraq and on to curb inflationary expectations referred to above and to reduce the speed of circulation of money.

II – Modify the interest rates the Iraqi Central Bank policy rate in a given financial market signals robust to changes in proportionate and popular with the evolution of structure in time of the interest rates, which helps to ensure positive returns to public savers with the banking system and reduce the status of the spacing between savings and investment by borrowing is equal between Showing the money intended for lending and demand.

Stating in this regard that the benefit is not a monetary phenomenon, but is a real phenomenon is also related to the decisions of investors and investment returns, so the spacing mentioned the savings desired and desired investment caused real interest rates negative during the years 2005 – 2006 (before it becomes positive since the beginning of the year 2008) which was due to the impact of inflationary expectations high compared to low interest rates of cash in banks and public financial market. Also, the elimination of the gap between savings and investment is through access to the interest rates static subject consistently inflationary expectations and contained something adopted by the Central Bank to adopt Sticky nominal Nominal Anchor for the exchange rate to stabilize public expectations of inflation and at the same time for the benefit of the Iraqi dinar over the monetary framework adopted flexible exchange policy, but under the influence of central bank intervention in order to achieve high nominal exchange rate to the level of the real.

The phenomenon of the spacing between savings and investment means, in essence, the spacing between the productivity of investment and real return it on the one hand, compared to returns on savings, especially when the investor gets a return on a real regular plus the margin of the inflation of prices of goods and services generated by the investment usually of outputs, which in any case all over bank interest and Astalp of return on savings through interest rates, banking low from the perspective of the money market is the organization, we mean the market is not legal (of usury), which reflects the reality of actual transactions and the real value (for the price of money) no interest away from the regulatory framework approved legal with the banking system Thdidalvaúdh in cash.

http://bit.ly/zCzrBW


New measures to maintain the value of Iraqi dinar

Posted: February 21, 2012 

Said the Iraqi Central Bank announced new measures to maintain the value of the Iraqi dinar against the dollar.

Said Central Bank Governor Sinan Shabibi »Sabah»: it is «given the high demand for the dollar has taken the Central Bank of new measures regulatory rather than a restrictive».

Assured Shabibi that «the monetary policy Iraq’s okay because there are up high which is called the cover of the currency, which gives us flexibility in dealing with monetary policy based on the study of the march of the economy, inflation and high prices as if prices rose significantly we will resort to tougher measures, but if increased the pace of price is less there will be other action ».

the past few days have seen a rise in the exchange rate of the dollar against the Iraqi dinar, prompting concern among some citizens on the process .. and delete the zeros,

Shabibi said: The« There are a lot of work and continuing in relation to the process of deletion of zeros. The new currency will be launched in 2013 .. But now we have many ideas for the design of the coin and paper to reach a final form for the new currency, but it needs time to the multiplicity of designs and designers, the competition for features included in the currency ». Ruled out the central bank governor influenced by the market to change the currency,

saying:« steps a well-thought, and all banks will contact the bank Central in accordance with the regulatory process will withdraw currency from banks and provide them with the Central Bank of new currency will not accompany the process has no effect in relation to the markets and trading will be easy for the new currency ».

is scheduled to be deleted three zeros from the new currency, ie that the sum of one thousand dinars will become the new currency dinars one Iraqi.

describes the process of central bank currency exchange project, the national supporter of the economy in the country, expresses in government and political parties for fear of the project as it will increase the phenomenon of money laundering, also believes that adversely affect the financial trading the stock market.

http://bit.ly/zb6sqL


Member of Parliament calls for CBI to raise the price of the dinar against the dollar

Posted: January 28, 2012 

On: Sat 1/28/2012 8:30

The member of parliament Abdul-Hussein Abtan the central bank to work on raising the price of the dinar against the dollar and to improve the living conditions of the individual.

Abtan said, according to the Agency (news): the central bank to do a study to raise the rate of the dinar against the dollar and foreign currency in excess of (60) billion dollars.

He Abtan: that the dinar at a standstill for four years since he was a cash reserve (20) billion dollars by the need to raise the price of up to (1000) dinars against the dollar over the economic recovery and the reality of living of the individual and restore its distinguished position among nations.

This is noteworthy that the central bank stressed that raising the value of the dinar by 3.4%, which may seem at first glance a low rate, although it is in fact a monetary value large part of the financial settlement large inter-bank “that this lifting” sends a strong message confirms the strength and stability of national currency and the promising future of the Iraqi economy “and dispel all fears of the possibility of a deterioration of the latter.

http://bit.ly/wZII6s


Member of Energy and Investment Committee: Calls on CBI to study to raise the price of the dinar against the dollar

Posted: January 27, 2012 

On: Friday 1/27/2012 9:09

Baghdad (news) .. called a member of the Committee on Energy and Investment parliamentary MP / National Alliance / Hussain Alabtan to raise the price of the Iraqi dinar against the dollar to improve the living conditions of the individual.

The Alabtan in a statement (the Agency news) on Thursday the central bank to do a study to raise the proportion of the Iraqi dinar against the dollar and foreign currency in excess of (60) billion dollars. The Alabtan to: that the Iraqi dinar at a standstill for four years since he was a cash reserve (20) billion dollars so far.

The Alabtan: to raise the price of the dinar for up to (1000) dinars to the dollar appropriate at present to increase the economic recovery and the reality of living of the individual and restore its distinguished position among nations.

This is noteworthy that the central bank stressed that raising the value of Iraqi dinar by 3.4%, which may seem at first glance a low rate, although it in fact constitutes monetary value large part of the financial settlement large inter-bank “that this lifting” sends a strong message confirms the strength and stability of the national currency and the promising future of the Iraqi economy “and dispel all fears of the possibility of a deterioration of the latter, as he put it

http://bit.ly/zXX4n9



Anbuge: income must be increased to meet the inflation .. And resolving the economic problems

Posted: January 11, 2012 

Warned the specialists in the economic risks of continued high rates of inflation, confirming that the increase in prices and the high cost of services are factors that can adversely affect many of the economic gains achieved in recent times, as mentioned Advisor to the Prime Minister for Economic Affairs that inflation in Iraq due to structural reasons, indicating that inflation will accumulate during the times ahead by not finding radical solutions to the suffering of the Iraqi economy in general, especially unemployment and poverty, which he said the most significant factors that could that lead to a what he called (the dimension is not visible in inflation), which result from reduced purchasing power of individuals and the high cost of living.

The Central Bureau of Statistics of the Ministry of Planning showed during his annual inflation for 2011 past by 6 percent compared with the previous year 2010.

He attributed the statement that got the (morning), a copy of the reasons for high inflation to rising prices, Department of Housing during the year, a rate (12 percent) as well as higher wages for electricity by (100 percent) after the application of new rates, indicating that the Directorate of records in the Central Bureau of Statistics completed Inflation Report for the month of December 2011 which was prepared on the basis of data collection in the field “on the prices of goods and services components of the consumer basket of selected sample of outlets in all of Iraq’s provinces have adopted the base year 2007, and showed the results, indicators indices of consumer prices at the level of Iraq, where total index of consumer prices (135.6 percent) in the month of December 2011, recording an increase rate of 0.9 percent for Alshahralve preceded by a rate of 6 percent compared with the month of December 2010.

He attributed the economic advisor to Prime Minister Dr. Abdul Hussein Al-Anbuge Speaking (morning) the reasons for high rates of inflation to change the consumption pattern of the individual in Iraq and the increasing rates of population growth of 3 percent as well as increased funds allocated to consumption, confirming that these factors have created a kind of high demand on goods and services offset a lack of local production system, who said he was unable to meet the increased demand and therefore high rates of inflation.

He Anbuge the apparent weakness suffered by the production in Iraq has led to a large rise in imports of foreign goods and services in order to fill the void experienced by arena domestic production and this, according to Anbuge Born a different kind of high prices caused by poor process of importation and the large number of transactions logistics of the importer The long wait you spend for goods and materials imported into the ports and warehouses as well as delay in the offices of inspection and quality control at the border gates as well as other costs that are now in the Iraqi trader borne by those complications, which reflected negatively on the high value of materials and therefore affected by the consumer so high and increasing rates of inflation.

Counsel indicated the presence of other risks that could reflect negatively on the reality of development in Iraq due to high rates of inflation, confirming the presence of what he called the dimension of (III) of unemployment and deflation and the relationship of this dimension of inflation, he said, when the unemployment solid, stable and accumulated for long periods will lead to lower incomes distributed the elements of production, and those at low income, it will cause low purchasing capacity of people, and this is visible in the post-inflation can affect the purchasing power of incomes and thus lower their real income, and all this caused by rising prices and rising inflation.

He denied Anbuge that inflation in Iraq, cash only, stressing that there is inflation, real cost caused by a decline in services and inadequate infrastructure. Called Anbuge to increase the incomes of people step can reduce the high rates of inflation, indicating that the high prices if it coincides with high incomes people, there will be no effects of inflation, pointing out that this equation will keep the standard of living of the people as the occurrence of effects due to high prices, Zakir it is wrong to look at inflation in terms of rising prices only, but must look to the size of the income earned by, saying that, according to the equation will be the real indicator of inflation is what is happening down by the people of goods and services admitted.

According to a Central Bureau of Statistics, the prices of housing rose during Alshahralhala rate of 0.3 percent compared to the previous month, due to high housing prices in the Kurdistan region by 1.7 percent in the central region at 0.1 percent, while settled in the South. He confirmed that the prices of this section have risen by 11.9 percent compared to price levels in the month of December 2010 due to rising rents Alldoralexanah rate of 10.4 percent, as well as a result of higher electricity prices wages by 100 percent as a result of the application of new rates.

The statement noted that the sub-group of the fuel (gasoline, oil and gas) have seen their prices rise during the month of December 2011 by 0.7 percent compared to the previous month due to higher prices in the region of Kurdistan, a rate of 1.9 percent in the central region by 0.4 percent in the South by 0.1 percent. He explained that the prices of this group registered an increase rate of 2.6 percent in 2011 compared to prices in December 2010.

The statement said that indicators indices of consumer prices at the district level, recorded in the Kurdistan region in the month of December 2011 compared to the previous month increased by 1.2 percent resulted mainly from a rise in prices of food and non-alcoholic beverages at a rate 2.8 percent, and prices of clothing and footwear by 1.1 percent and housing by 1.7 percent, health by 0.1 percent, and transport rate of 0.3 percent, recreation and culture rate of 0.3 percent, education at 0.8 percent, and restaurants by 1.8 percent, either in the center recorded price according to the statement in the month of December 2011 compared to the previous month increased by 1.0 percent resulted mainly from the increase in prices of food and non-alcoholic beverages by 2.3 percent, alcoholic beverages and tobacco by 0.1 percent, clothing and footwear by 2.1 percent, and all of the housing and health by 0.1 percent, education at 2.7 percent, and restaurants by 0.3 percent, either in the South recorded price according to the statement also in the month of December 2011 compared to the previous month increased by 0.6 percent resulting mainly from higher prices for food and non-alcoholic beverages at a rate of 1.8 percent, clothing and footwear by 0.4 percent, and equipment, household equipment and maintenance by 0.2 percent, and health at 0.3 percent, and transport rate of 0.3 percent, and education by 1.2 percent, and restaurants by 0.5 percent.

http://bit.ly/zxvPQ6


Dysfunctional banking sector helps keep Iraq in economic shambles

Roy Gutman

McClatchy Newspapers

Roy Gutman McClatchy Newspapers
Updated: 2011-12-26T12:47:37Z
Hamdiya al Jaff leads Iraq's only successful state bank. Her only experience in banking is with the failed Rafidain bank. She was installed last summer by Prime Minister Nouri al Maliki to replace a protege of banker-politician Ahmed Chalabi.
Hamdiya al Jaff leads Iraq's only successful state bank. Her only experience in banking is with the failed Rafidain bank. She was installed last summer by Prime Minister Nouri al Maliki to replace a protege of banker-politician Ahmed Chalabi.

BAGHDAD — The shelves are packed with imported goods at Baghdad's thriving Warda supermarket, and customers can barely move their shopping carts in the narrow aisles without bumping one another.

If there were a bank to borrow from, owner Ammanuel Dankha al Tallani said, "I would ask for a loan to open a new market 10 times bigger than this one."

But there isn't. Three months ago, when he sought $2 million to build a new store elsewhere, the bank agreed to only $250,000, at high interest and collateral.

To understand the economic shambles that is Iraq, look no further than the banking sector. There are no electronic funds transfers for payroll or bills and almost no checking accounts or credit cards. ATMs are few and far between. There are no home improvement loans and few mortgages.

For most Iraqis, banks serve only as a safety deposit box.

With proven oil reserves third only to Saudi Arabia and Iran, Iraq could one day be one of the richest countries in the world. Oil is Iraq's sole export, accounting for two-thirds of gross domestic product. President Barack Obama this month cited estimates that in the coming years, Iraq's economy "will grow even faster than China's or India's."

But compared to pre-2003, industry and agriculture are moribund, and construction is frozen in Baghdad and many other parts of the country. Eighty percent of the economy is in government hands, according to the Central Bank of Iraq. Unemployment and under-employment are at 46 percent, the bank says.

What makes the outlook so bleak is that Iraq lacks the banking infrastructure to grow out of this mess and the political will to undertake dramatic economic reform. Dominating the financial scene are two bloated state banks with phony balance sheets, which are widely viewed as facilitating corruption.

"Iraq is a completely destroyed country. Nothing is working. All the sectors are obsolete, and we have to start from minus, not zero," said Ali al Dabbagh, a minister of state and the official government spokesman.

Many of Iraq's woes predate the U.S. invasion. The government nationalized banks in 1965, and dictator Saddam Hussein, who came to power in 1979, tightened the state economy to increase his political control. After Saddam launched a war with Iran from 1980 to 1988 and invaded Kuwait in 1991, the United Nations, with the U.S. playing a leading role, imposed more than a decade of harsh economic sanctions.

The 2003 U.S. invasion, which was ill-planned and based on flawed intelligence, touched off a sectarian war, in which 4,483 U.S. troops, more than 50,000 Iraqi security forces and more than 104,000 Iraqi civilians died, according to icasualties.org and iraqbodycount.org.

Yet it seems astonishing that after nearly nine years of U.S. occupation and military presence, Iraq is in so sorry a state. Many other basic services are missing in the fledgling democracy: Regular electricity supplies — most people get four to six hours at best — a postal service, public transport, a national airline and a judicial process to protect foreign investments and resolve claims, to name just a few.

Iraqis seem paralyzed about how to get out of the morass. On his recent visit to Washington, Prime Minister Nouri al Maliki promised new legislation to encourage foreign investment. But some of his own top aides disparage the role of the private sector and are perfectly happy to have the public sector crowd it out.

"Let me say in general we have deficient people here, sitting in certain high posts, who cannot create any economic vision," said Dabbagh.

To give but one example, half the public budget, including much of the oil revenues now starting to pour in, are going not to invest in future production or to capture the gas now being flared off — which could provide enough electricity to power the whole country. Instead it's going to a jobs program to put more Iraqis on the government payroll.

"The government cannot employ everyone. The private sector has to play its role," said Dabbagh.

The economy is only one of Iraq's social issues. Sectarian tensions still simmer after the internal war. Major constitutional disputes such as the political status of oil-rich Kirkuk could lead to violence. Neighbors like Iran, Saudi Arabia and Turkey and are all too willing to throw money into Iraqi politics.

There are 3 million internally displaced and refugees abroad, according to the United Nations. And it's possible that the uprising in Syria, Iraq's neighbor to the north, will spill over, inflaming sectarian tensions once again.

Yet a robust economy could solve many of the country's problems, creating a common ground to bridge those divisions, said the vice chairman of Iraq's Central Bank.

"The economy can build the nation and integrate the nation, even a nation with sectarian, religious and national divisions," Mudher M. Salih told McClatchy. "The market is the best thing to integrate every minority, to solve every problem and to create a great nation."

But that market doesn't exist.

There is no real estate market or property market. Almost all goods are imported, and almost nothing from Iraq is sold at the markets in Baghdad, other than dates and some produce.

"Everything you have for breakfast — yogurt, jam, fruit salad — is from Turkey, even bread sometimes," Salih said.

"Would you like some water?" he asked a visiting reporter, smiling as he passed a plastic bottle of water from Kuwait. "Turkey has water. But Kuwait is one of those countries without water. And here we are in Mesopotamia, a country with two great rivers, importing water from Kuwait."

"I think we need a new start," said Haider al Abadi, an economist who chairs the parliamentary finance committee and has set up a working group "to come up with new ideas and legislation." His biggest frustration: lack of interest at the top of government.

Banks may be the single biggest obstacle to creating a free-market economy. Iraq is one of the most "under-banked" countries in the Middle East and beyond — with only 450 bank branches in a country of 31 million. Saudi Arabia, by comparison, has 6,000 branches for 18 million citizens.

At the heart of the crisis are two debt-laden, state-owned banks, which are the depository for all government funds. Far from functioning as lending institutions to stimulate the economy, the Rafaidan and Rasheed banks are widely thought to facilitate the corruption that bogs the economy down.

Transparency International, which monitors corporate and political corruption in international development, rates Iraq as the eighth most corrupt country on the planet, tied with Haiti and only slightly less corrupt than Sudan, Afghanistan and North Korea.

Knowledgeable foreign experts say that the problems begin with government contracts, where bidders are chosen from pre-determined, closed lists, rather than an open competition. The rules of the game are anything but transparent.

"I tried to find out what actually qualified these firms to be on that list, but no one can tell me," said one foreign observer, who didn't want to be identified because of the sensitivity of the issue.

In one of the biggest recent procurement scandals, Electricity Minister Raad Shallal al Ani was forced to resign in August after signing contracts worth $1.3 billion with a firm in Canada that didn't exist and one in Germany that had gone bankrupt a month before the contract was signed.

The World Bank has proposed a new procurement law that would open up the bidding process, creating committees to select and evaluate the bids. To ensure that bidders are legitimate, it would require them to make deposits in advance, as in almost anywhere in the Western world. But Maliki's government is dragging its feet.

At the bank's annual meetings in Washington in September, Finance Minister Rafie al-Essawi tangled over the draft law with a top Maliki aide, Muhammed Fadel. Fadel, a suave English speaker, is Maliki's legal adviser, and Western diplomats say he's "the man you go to when you want to block something."

"I was against the law," said Fadel, complaining that it didn't allow enough flexibility to accommodate the needs of different federal agencies, according to a witness to the exchange. Essawi retorted that a law isn't supposed to be flexible and that "it only allows for flexibility in the (supporting) regulations." Fadel, a fixture in successive governments, wouldn't budge.

After the deal is made, the state banks come into play. A Western diplomat explained one way the banks can facilitate fraud.

"You buy something overseas, but the transaction never happens," said the diplomat, who could not be named because he was not authorized to speak to reporters. "Fake documents are sent, saying the goods were shipped, and the money is released to some seller offshore. The goods never show up. The money's gone. You throw up your hands. Gee, I don't know what happened to it."

Under a second scenario, a government agency buys a truckload of parts but what actually shows up is one small box, or a box of figs.

"There's a thousand ways you can do this, so long as you don't fear that the banks will go after you in a criminal sense, or in a civil sense," said the diplomat.

A third way the banks feed corruption is to loan funds to a prominent government official who has no intention of paying them back. "The bank will never get back to you. They will just write it off," the diplomat said.

The international observer added that Rafidain and Rasheed function "like a private banking system" and a "slush fund for oligarchs."

The World Bank, in a major review of the Iraqi financial sector, said in September that it was crucial to "clean up the balance sheet" of the two banks, noting that this had been under discussion since 2006.

These are not small banks. They have a monopoly on government deposits and control 90 percent of the bank assets in Iraq. The losses on their books are enormous, because of devaluations of the Iraqi dinar — in which government debt was denominated — as well as loans to defunct state enterprises, losses from the two Gulf wars, and "claims related to fraudulent currency exchange," the bank said.

The losses may be so great that the banks in fact have a negative worth of several billion dollars.

Moreover, of the Iraqi households that borrow money, 88.9 percent borrow from family and friends and only 3.4 percent from banks, the World Bank found.

"These banks are a payment system for the government, " said Salih, the Central Bank deputy director. "They have no capital, believe me. But if you look at liquidity, they are highly liquid with government money."

He didn't dispute the widely held belief that the banks function to funnel illegal payments to powerful politicians. "It's a black hole," he said.

"This may explain a lot of the difficulty in getting the government to focus on restructuring and privatizing Rafidain and Rasheed," added the Western diplomat. "Everyone agrees we have to do something about these dinosaurs, but when it comes to actually doing something, it seems to run into a wall of molasses."

Rafidain and Rasheed are not the only state banks. A third, the Trade Bank of Iraq, launched by the U.S. occupation authority in 2004 with guidance from Ahmed Chalabi, an Iraqi banker and controversial politician, started life as a bank issuing letters of credit for foreign trade, but then expanded into other fields of banking.

While the TBI bank is profitable and its books have been audited and published online, Maliki earlier this year demanded that it provide credit to the government to finance the purchase of electricity-generating equipment. When Hussein al Uzri, the chairman and a Chalabi relative, resisted the demand, Maliki replaced him with Hamdiya al Jaff, who worked for the Rafidain bank.

Moving an administrator who's worked at a failed bank to the most successful state bank would raise a ruckus almost anywhere else, but in Iraq, it seems like par for the course.

International bankers are still scratching their heads over the upheaval, wondering whether Jaff's mission is to bury the skeletons that may be in TBI's closet or to prepare the way for the government to grab the bank's assets.

Jaff told McClatchy that her appointment was an "administrative change" and that bank policies will not change.

It raises a question: Does anyone at the top of government understand the role of banks in stimulating free enterprise?

"I find that some people at the higher ranks believe in market economy," said Salih, the deputy director of the central bank.

Altogether there are seven state banks and 39 private banks in Iraq, but the private institutions, while growing rapidly, have but a tiny fraction of the bank assets in the country.

The implications for Iraqi business owners and consumers are all too clear.

At Baghdad's Al Sinobar furniture store, everything is cash and carry.

"All of our imports are self-financed," said Ali Adnan, 30, the store manager. "We have no relationship with banks."

Nearly every product on the floors is imported. Iraqi furniture builders, concentrated in the Salhiyah section of Baghdad, do fine custom work, according to Adnan, and the quality is superior to imports from China, Malaysia and Turkey, his main sources of supply. But it's also much more expensive.

"They're now producing at just 15 percent of their previous output," he said, but they could be revived. "Give me electricity, machinery, and allow me to import materials, and see what I can do."

When McClatchy paid the rent for its Baghdad bureau, which closes this month after nearly nine years in operation, a staffer had to hand over a bundle of U.S. currency to the landlord. For years, the bureau paid freelancers in far-flung provinces through Hawala, the informal Islamic money-transfer system, or via messenger.

If the Warda supermarket's Tallani went to one of the state banks, he probably wouldn't even be admitted, as he's not a state employee. But if he were, it would likely to take up to six months for the bank to approve a loan, and it would require collateral equal to 300 percent of the value of the loan, the Western diplomat said.

One reason for the high collateral is the difficulty in estimating the value of property, and this is because there is no property market and only a nascent real estate market. Even at a private bank, Tallani had to pledge the entire parcel of land as collateral and pay 11 percent interest.

This actually is modest. Other businessmen say they are quoted upward of 50 percent interest. Iraq even has a "usury market" where the interest rate is up to 80 percent.

"Since we opened our market in 1973, we never dealt with banks, because they were not at the level we needed. They are just safes to keep money in," Tallani said. "If the banks supported small business, the economy would improve and we could hire more people and decrease unemployment. But this doesn't happen in Iraq. In Iraq, it's zero."


Activate, this word is used countless times in many articles! Activate is defined as "trip or trigger" you don't activate anything slowly, it's all of a sudden. "as in RV" Read at the bottom of this article...

Ministry of Finance refuses to apply the Commission’s decision to support the economic sector, the private banks

Posted: December 17, 2011 

Despite growing calls for the need to support the sector of private banks in Iraq as the mainstay of the national economy and its role in attracting foreign investments to Iraq, but the practical measures to be taken by the Ministry of Finance and Central Bank are still lagging behind in this aspect, which was a disappointment for a number of those banks that are still at the stage of growth.

Was abolished and the Ministry of Finance instructed that until now had been circulated to the ministries and government departments not to open accounts in private banks.

Showed a document obtained by the independent press (Iba) a copy, the Economic Commission of the Council of Ministers issued a directive to the Ministry of Finance of 04.06.2009 on the support of private banks, but the Finance Ministry did not take any action on it yet.

The document, which is an official letter addressed by the Office of the President of the Economic Commission Deputy Prime Minister Barham Salih, then to the Office of the Minister of Finance requested that the Commission allow the ministries to open accounts with private banks for the purpose of opening credits and increase the amount of two million to $ 5 million.

Also called the Economic Commission urged companies to self-finance for the deposit and the opening of bank accounts in private banks.

From the other, and directed the Commission and the Ministry of Finance to create a bank which contribute to a mixed government and private banks and branches of foreign banks with a capital of a suitable, depending foundations of modern banking.

Even after a long time on these directives, but the Ministry of Finance is still far from the application, in a time when private banks from dealing with the official, despite the advice of experts should be shown by their support.

In this side said an adviser to Prime Minister for Economic Affairs Abdullah Al-Hussein Anbuge in a press statement that the phase transformation to a market economy requires a private sector a more active role and be directed to the economy of the country, pointing out that such approach requires the creation of a bank Ghaderaly mobilization of financial savings will be huge waiting for Iraq, and that, especially coming on the stage of economic growth and broad, as well as follow-up of the various economic projects, and stand at the economic feasibility verified.
He Anbuge in his statement that the process of economic reform requires that the head of government banks towards lending to private banks, to expand its work and services that must be provided to the local economy.

Experts argue that the trend toward a market economy in Iraq requires the activation of the private sector and support, especially in the banking sector so as to enable it to support investment projects and the various economic at the same time attract foreign capital to work in Iraq.

Click on the link below to view the document

The first document: Http://bit.ly/rp5X6U

The second document: Http://bit.ly/vSdZV3

http://bit.ly/u9mbLE


Inflation is our best friend!

Iraqi Planning announces rise in annual inflation for the past month by 5%

Posted: December 18, 2011 in Iraqi Dinar/Politics
Tags:

Baghdad, 18 December / December (Rn) – The Iraqi Ministry of Planning of the Federal, Sunday, a rise in annual inflation for the month of November last by 5% compared with November of last year.

He said the ministry spokesman Abdul Zahra al-Hindawi told the Kurdish news agency (Rn) that “the rate of inflation for the month of November last rose by 5% compared with November of last year.”

He added that “the housing section in which inflation rose higher average rate of 11.4% compared to price levels in the month of November 2010 because of rising rents Alldoralexanah of 10.4%, and also because of the high price of electricity fees by 100% due to the application of new rates.”

He said, “Alcoholic beverages and tobacco rose by 5.7% and clothing and footwear rose the other is a 7.1% and oil products increased 5% compared with the month of November of 2010.”

He said “household equipment rose by 2.2%, and increased health equipment by 7.9% and rose CTO compared prices to 3.9 in November of 2010″

And that “the communications department at a rate of inflation rose 1.7% and that the Department of Recreation and culture have declined by 1.9% and rose by 8.1 Department of Education and the Department of restaurants, 6.4% and a section of goods and services 14%, all compared to November of last year.”

The rate of inflation in the last month, 5% for the month of last October compared to October 2010.

And inflation is the excessive rise in the general level of prices and higher cash income as well as high costs and create excessive cash balances.

http://bit.ly/tA7Yif


CBI warns of collapse of IQD and the fall of the Iraqi economy; Inflation

Posted: November 14, 2011 by THE CURRENCY NEWSHOUND 

14/11/2011 9:04

Warned the Iraqi Central Bank of the vicious circle of inflation in the Iraqi economy and the collapse of the currency in light of the economic data and inflation present in the next two years.

“Deputy central bank d. The appearance of Mohammed Saleh said that” the overall rate of inflation will continue to rise over the coming months, and will not do any good monetary policy instruments of the Central Bank in the restrained sense, because the supply of commodity and service is still absent from the local economic landscape. “

He added that “the continuing high rates of inflation below the 3% earlier this year to 7.6% currently, due to import sub-total for food products, which are bourse down to a wave of speculation, which led to high prices of these materials by 140% until the year 2011.”

He pointed to “waste and extravagance and corruption in the operating budget of the Iraqi state, the corresponding increase in the operational budget and a decline in production, as well as the waste in government expenditures of consumption as well as the purchase of furniture, cars, and the like,” noting that “the Bank monitors continuously levels inflation, and will not hesitate to intervene strongly in the event of a rise of two places decimal places or more over the monetary policy tools of Baharta exchange rate and interest of the Iraqi dinar “

The government said it would discuss the country’s budget for 2012 in preparation for approval and sent to the House of Representatives.

Government figures indicate that Iraq’s budget for next year will amount to 131 trillion dinars (About $ 112 billion), up 36% from the current year budget and a deficit of 23.3 trillion Iraqi dinars (20 billion dollars)

The government says the deficit will be covered by the amounts of cash retained from the current year budget 2011 is internal and external borrowing and the proportion of savings is expected to increase selling prices or increased oil production or borrowing from the IMF and the World Bank. “

The value of the current year budget which was approved on 20 February, of which $ 82.6 billion $ 25.7 billion of investments. Iraq has suffered from dilapidated infrastructure sectors in the overall result of long years of siege and war during the last two decades of the last century.

http://bit.ly/vb3cEN

Related articles

CBI: Deleting the zeros from currency is being studied and debated by GOI; Requires approval and education

Posted: November 13, 2011 by THE CURRENCY NEWSHOUND - 

Central Bank: Delete the zeros of the Iraqi currency in the process of study and debate, but will take a long time
Sunday, 13 October

The Central Bank of Iraq’s need for Iraq to the process of administrative reform of the currency cash.

The central bank adviser said the appearance of Mohammed Saleh told all of Iraq [where] that “the proposed change the currency in Iraq is a step comes as part of the country’s needs to the process of administrative reform of the currency in order to reduce the cost of cash transactions in the economic process as well as the need for coins of categories of small used in the circulation of small transactions daily. “

He added that “all proposals and needs were studied and included a project to delete the zeros from the currency of Iraq has been submitted to the government and is now in the process of study and debate, but will take a long time until the direct implementation because of the draft Strategy affect the country’s economy and if the program was approved Vstsahbh education process and the announcement of the citizens and the statement of duties and necessity “.

Saleh continued, “with regard to government’s efforts to raise oil exports to increase Allowaradt and financial income of the state must deal with this side of caution and not to build great hopes on rising world oil prices as much reliance on the capacity expansion of exports if Maraafqatha increase in prices and this is the best and which should go to activate economic movement in the country and reduce the real physical capital in other sectors of the economy and this is the real economic map that should be at this picture. “

And that “Iraq is a rich country and has a wealth of great natural, but we now need to regulate the administrative, economic better addition to having a strong will and agenda of the right economic than what exists today on the political agenda and quotas factional and party as well as the cooperation of all for the advancement of the country and raise the standard of living of citizens.” .

The officials at the Central Bank as well as some politicians and economists urged the government to delete the zeros from the currency and the issuance of new currency denominations large cash in addition to the presence of small coins.

Observers say that the government intends to delete the zeros from the currency as a step towards improving the purchasing power of the Iraqi dinar is that economists played down the importance of this step, considering that the cost of raising the zeros will be greater than the benefit expected to raise zeros. “

And Abdul Hussein Al-Anbuge Adviser to the Prime Minister for Economic Affairs had warned earlier that the removal of zeros from the currency in the events will cause big problems and disrupt the Iraqi economy.

http://bit.ly/w0r2XA


CBI calls for review of operating expenses

Posted: November 8, 2011 by THE CURRENCY NEWSHOUND 

Tuesday November 8, 2011

Central Bank of Iraq stressed the importance of reviewing operating expenses. The deputy governor of Central Bank of Iraq the appearance of Mohammed Saleh, said that “the Bank will intervene strongly to curb inflation if arrived at two places in the decimal places when he called for review of operating expenses in the general budget.”

Saleh added that “there are a lot of doors in the exchange operating budget is incorrect.” Noting that “Iraq has not seen since the 20-year decline in annual inflation to the level of one decimal place only during the year 2011, and reached the figure in February to 3 per ten to rise then gradually going up in August to 7.6 per ten to fall in the month of September to 7.3 per ten. “

He explained that “the Iraqi Central Bank monitors the indicators of inflation in Iraq with the gradual rise during the past months. He pointed out that” the Bank will intervene strongly to curb inflation when what he found up to the stages of worry about the stability and close to two places decimal places and up to 10% or more, the fact that monetary policy able to accommodate inflation. “

Saleh continued that “inflation in Iraq in most facets importer due to the importation of food and rising global oil prices, in addition to higher pay rent houses internally. Pointing out that” the Bank is able to tackle inflation through the use of tools the bank cash correctly to bolster the currency Iraq through the control of the levels of cash flow and enhance the purchasing power of the Iraqi dinar by using the signals of exchange and interest rate.

http://bit.ly/tZwaeQ


Shabibi: Iraqi economy will improve after US withdrawal; World view will change, Dinar value will rise

Posted: October 26, 2011 by THE CURRENCY NEWSHOUND 

imageThe head of the Liberal: the Iraqi economy will improve after the departure of U.S. troops from Iraq

The head of the Liberal parliamentary Bahaa al-Araji, at a conference in the House of Representatives with the various Iraqi political blocs and the host central bank governor, “Shabibi” that the Iraqi economy will improve after the departure of U.S. troops from Iraq.

Araji said the reporter (and independent Iraqi news agency) “that there are four important things were discussed with the Governor of the Central Bank of Iraq’s economic future, first after the occupation and how to restore economic activity through the profits to be provided by the Iraqi economy.

Saying was “discussed the possibility of the distribution share of the oil to the Iraqi citizen.

Noting “that the governor welcomed this proposal and prepared to cooperate to achieve this important project.

Adding, “discussed the private banks and retail banking, remittances, and how to adjust and with great regret we received information that there are points of a terrorist group and Saddam’s Baath The control of these banks.

He explained” were discussing these things because we are at the doors of the liberation of Iraq and return of Iraqi sovereignty, even to Anattiy way for terrorists.

He said al-Araji said the most important matter which has been discussed is to delete the zeros of the Iraqi currency and the pros in this project.

Stressing that “the world view to the Iraqi dinar because of the loss of sovereignty would be a diminution of the dinar and the evacuation of troops will raise the value of Iraqi dinar.

http://bit.ly/vrCSNO



Deputy Governor of CBI: Inflation and credit risk increases the interest rate

Posted: October 26, 2011 by THE CURRENCY NEWSHOUND 

Deputy Governor of the Central Bank of Iraq the appearance of Mohammed Saleh, the fact that the interest rate compared to the current inflation rate is negative 1%, indicating that lingered in the Central Bank to take measures in accordance with the theoretical mechanisms to counter this decline is due to the negative free interest rates of commercial banks under System of financial liberalization that has occurred since 2004.

Saleh told the correspondent of news agency Baghdad International that the highest interest rate is positive and relates to the monetary policy of the Central Bank of Iraq is what has been achieved in the month of January of this year, which amounted to 3% in the affirmative, noting that the central bank to take a standard in calculating the interest rate is that interest rates real and positive, which is calculated by calculating the interest rate minus the inflation rate basis.

Saleh said inflation, which happened recently in Iraq, inflation is influenced by inflation in foreign markets where inflation inside Iraq affected by inflation and the external called imported inflation, and that this accumulation led to inflation in that there will be a decline in real interest rate to be negative.

Saleh said that the lending market in Iraq involved a number of factors where taken into account several factors, including taking credit risk and market risk and other risks is what makes the interest rate on loans is high, indicating that the average interest rate on lending loans in Iraq for a year of not less than 14% to 15%, and that the spread between the interest in the deposit and borrowing high up to 9 points, sometimes reflecting the fragility of the market and uncertainty, considering that the market is immune to the issue of interest rates and it is right to increase the central bank interest rates, especially as the Central Bank adopted a monetary policy to cope with activity development in the country, expressing the hope that inflation is downwards.

He noted the benefit to the possibility of intervention of the central bank towards inflation control without reference to raise interest rates through the control of the levels of liquidity, which is the biggest strength and through expansion of open market operations, indicating that the control of the Central Bank of the levels of liquidity in Iraq is 100%, which is a positive point of the bank due to lack of control of any country in the world to levels of liquidity in the same proportion, especially since Iraq which the general budget pumps about 57% of demand in Iraq, which represents the expenditure as requested spending this is a blow to the monetary policy in Iraq, confirming receipt of monetary policy Many of these strikes, and faced by the central bank policies are called policy sterilization of liquidity, particularly for open market operations.

http://bit.ly/t6M7VJ



Renewed calls for the development of the banking system of public and private Posted: October 26, 2011 by THE CURRENCY NEWSHOUND - Just Hopin in Iraqi Dinar/Politics

Baghdad, Hussein Tgb Tamimi achieve economic progress away from the adoption of developed banking system is can not reach the economy to the desired goals, as economists argue that the basis of the economy is based on the possibility of adopting the global monetary system developed is able to provide support for economic projects and service productivity, especially as the investment business of local and foreign who wants to enter Iraq is dire need for advanced banking services include capital inflows into the country, in addition to the possibilities of supporting projects financially.

economic expert, Alaa Abdul Salman said in an interview (morning): that the suffering of the Iraqi economy is concentrated mainly side of the banking , where you can find today that the local banking sector’s weakest as required by the economic reality, pointing to the limited capital in these banks, in addition to the confusion that accompanies the work of some private banks, at a time when there are private banks provide services acceptable,

but sometimes affected by the mistakes banks faltering, which make them work under the instructions and regulations of the Central Bank, which issued on the organization of the work of these banks, you see some of the private banks, a restriction of the work, and these things is fraught with a lot of negatives on the investment business, which comes into the country, looking for the service of cash and which must be provided banks through the adoption of methods of working the cash advanced, which must be followed within the system of work.

He added that the reality of dealing bank in the country need to develop all his joints, because the services provided under the laws of ancient traditional does not serve the economic field, which leads to the need to review the mechanisms of action government banks, and instructive cadres financial trained according to the methods of banking developed in the international financial institutions advanced, and then begin the process of development of the Iraqi banking sector, noting that the Trade Bank of Iraq at the present time, adopt a system acceptable to serve the Iraqi economy at the present time, and we hope to activate current regulations to provide better service to the local economy.

He Salman by saying: that the country needs to build an economic on the basis of a sound, strong, and this is by adopting a developed banking system is able to provide a high degree of sophistication that can provide support to projects of economic investment, and here noted that banks were closed on the same as the Help Central Bank, which was also restricted Btaúlh Chapter VII, which indicate a negative impact on the reality of his dealings International,

at a time when the private banks listed on the mechanisms of action and work for its own benefit in the first place then the companies, and the Central Bank When restrictions were imposed because of some bumps that permeated the work of some banks has affected negatively on other banks able to offer great services, indicating the presence of banks with the largest real estate and property of their capital, and ask why it provides little support by the Central Bank? Although their systems to date, noting that the World Bank describes the private banks in Iraq as weak and can not deal with it, because it is subsidized, which shows that the construction of the project is winning the support of government is a failure,

because the private banks need to support banks, the largest is the State-owned banks , especially that some private banks have worked on the training of its staff outside the country on the new regulations, saying the country needed to banking experience to manage the reality of private banks and investment funds within the country in economic projects that serve the country and the private sector is heading to the administration of the Iraqi economy in accordance with the Constitution local levels.. As for the Delete the zeros said that this approach leads to positive results,

according to Salman and raise the purchasing power of the citizen, because the presence of zeros came to inflation and cost inflation and unemployment, and today this trend back the currency to its former level, and stop when the Turkish experience with the adoption of the subject to delete the zeros That led to the rise of economic, He noted that this matter must be accompanied by inter crack to keep the new currency, and that there is a solid mechanism for the process of replacing the large cash currency bloc in the country.

The issue of equipment investment called Salman to the need to facilitate the procedures and tax rates that encourages the entry of production lines and materials logistics that promote the process of investment, and move away from the mechanisms used in the ports and border crossings that impact negatively on the reality of investment in the country because of the difficulties faced by investors when the introduction of their equipment and their machines which comes out to develop production and service sectors of the various, and the investment process needs to infrastructure will help promote investment reality.

http://bit.ly/rCMoax


Iraq Coinage One Step Closer to Reality

Posted: October 19, 2011 by THE CURRENCY NEWSHOUND

Iraq may soon see its first circulating coinage since 2004, but it might be quite different from what was used in the past.

Alsumaria Iraqi satellite television reported on Sept. 3 that, “The denomination of the Iraqi currency reached its final stages as the study and draft resolution reached the Cabinet after being sent by [the] Iraq Central Bank. Iraq Central Bank said that it won’t only delete the zeros, but it will also change Iraq monetary structure in order to provide bigger currencies. According to this project, coins will appear again in the Iraqi currency. As for the bank notes, the Central Bank will recourse to international institutions to print them.”

Comment from website owner - Think, they're saying bigger currencies, if your going to delete three zeros, it's not because you want bigger currencies. Bigger normally means, not only a 25,000 Dinar, but a 50,000 Dinar or bigger right? What they mean is a smaller currency worth a lot more money! If a 25,000 Dinar right now is only worth 21 US dollars, what's bigger? A 25 dinar bill worth 75.00 US dollars or more!

Read More:  http://bit.ly/qiuxPB


Politicians, economists call for plan to reduce inflation; CBI: inflation will continue if current policy doesnt change

Posted: October 10, 2011 by THE CURRENCY NEWSHOUND -

With price increases and disparity in salaries .. MPs and economists calling for an actual plan to reduce inflation

Expect MPs and economists high rates of inflation during the next term, in light of a number of economic data, demanding that there be programs and plans lead to the outcomes and objectives are based on a scientific basis to promote economic growth during the limited period of time, “Future of Iraq” held a meeting with a number of deputies and economic experts to find appropriate solutions.

Member of the former Economic MP Abdul Hadi al-Hassani explained in that the increase in the inflation rate for consecutive months due to increased prices of imported food from abroad, the fact that the country lacks a local production of food, indicating that the material prices are high as a result of the global economic crisis, as Abdel-Hadi growth during this period tends negative, given that Iraq is not a producer, as one of the largest importing countries in many of the things on the grounds that Iraq is subject to the controls of supply and international demand.

As reflected by the other hand, the more the prices for materials abroad reflected negative in the price of home, and continued: the country today, in fact, not subject to the financial system, economic prevents the increase in inflation and there is no hardware control that prevented this increase is calculated and unjustified, given that the citizen is subject to the real situation, which is known in the market increase is not quality, but improvised a number of materials, especially that Iraq is a consumer non-industrial and non-productive are subject to market supply and demand world, so that inflation has become a central issue throughout the region, pointing out that the increase for salaries was not as fast as inflation, as reflected On the savings of workers and the standard of living, while being forced to the economy in some of the expenses,

in addition to the shortage experienced by the region in some of the basic infrastructure services and continued: The prices of wages of managers and employees and even the private sector increases the rate of inflation as well as the state today are trying to increase the salaries of citizens because the reality imposes on the government some of the benefits that have made the price increase per year and there is no tax system that regulates not increase that calculated to be increased up to 5 or 6%.

In the same context, member of the Economic Commission Amer Al-Fayez said the country was experiencing a state of inflation and the continuing rise in price, and if placed solutions of inflation will certainly increase in coming years, and added that there are studies put forward by the Economic Commission of the Council of Ministers in cooperation with the Central Bank of the existence of solutions to absorb inflation happening in the country and the solutions put forward is to delete the three zeroes,

but the fact that this deletion will not increase if inflation and we serve as the economic studied the results and show that the case is not feasible in practice, but may be a psychological consequences on the citizen may have some positive impact but there is another side, it will increase the process of inflation, if left on the side of studies, it is certainly the case that inflation will remain on the rise.

And in turn, confirmed an economist leading net that the rate of inflation will continue to rise during the next term, because the government did not take any radical decisions about reforming the economic structure and organization of the markets and prevent the intermediaries in the marketing process, and added net that the market is in the current term spread of slums and the absence of any organizations with the absence of the oversight role of the markets,

he added that the central bank is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign reserves and the issuance of currency management, as well as regulate the banking sector, and followed the (net): The absence of security and stability in the country led to a lack of the flow of transport operations and the sequence of the marketing and subsequent bottlenecks in import lead to an increase in prices,

on the other Chancellor of the Arab Organization of the economy high-Shammari that inflation experienced by SELA in Iraq needs to decisions characterized Bajeriih to sever financial grants high to be granted to officials to the activation of the tax system with a re-balance the spread of funds between government institutions, and explained that the ingredients of treatment of inflation is not currently available that the decisions are still intertwined between the Ministry of Finance and Central Bank of Iraq with the continuing differences between them on a loan granted by the Ministry of Finance for farmers and citizens and the unemployed, and continued must activate the international economic organizations and consulted in saving Iraq from continuing inflation in its system of general economic,

in the prior authorization of the Governor of the Central Bank, the appearance of Mohammed Saleh said that inflation in Iraq will continue to increase if it continues policies have cash and finance in Iraq through the establishment of the necessary steps and decisive action to curb this dangerous phenomenon, pointing out that this kind of inflation, which is called (transition or importer) if left without treatment would cause damage to a chronic, through pressure on the cost decimal continuously, leading to increased rental rates for real estate and food in local markets .

He continued that Iraq is part of the world is affected by any change affects the global markets.

The Deputy Governor of the Central Bank that the trade account of the payments system in Iraq has a surplus of Mali, and this is something that reduces the risk of inflation in Iraq, as well as that Iraq is exporting oil than it imports Vtatherh on the economy be a bit although there is an increase in the rate of inflation, said that the Iraqi economy is stagnant economies and powerful at the same time it is facing economic problems with ease.

http://bit.ly/ohRQ9M


CBI: Deleting the zeros law will strengthen value; Economist says Dinar to equal one USD

Posted: October 10, 2011 by THE CURRENCY NEWSHOUND

Dinar is equal to the dollar
Deputy Governor of the Central Bank of the appearance of Mohammed Saleh: that the bill included proposals for a new currency and the groups that carried and details of technical and economic.

Saleh pointed out during the permit media to switch the currency and the deletion of zeros decision taken by the executive branch and approved by the legislature, and that the project will not be implemented hastily, but will be taken among other factors to consider before you start to implement it, including the date of the financial year and the strength of the national economy, among other indicators in the favor of the view that

This law, if approved, will have a positive impact on the Iraqi currency in several aspects of the need during the next phase, which will strengthen the value of the Iraqi currency.

He described the favor of a system of cash payments of the current Iraqi regime miserable, noting that the largest denomination in which value does not exceed twenty dollars, stressing that the deletion of zeros will enhance the value of the Iraqi currency, and reduces the cost of handling cash, currency should its current estimated size of today Petrlionat dinars, making the process of dealing monetary cost is high.

And the concerns of rigging the new currency in the event made or it will affect negatively on the economic situation, responded in favor of: that it reflects the look bleak, do not forget that there are other countries in deciding to switch its currency and dropped them zeros, such as Turkey, Romania and Brazil, without being of its economy to shocks and thus Iraq is not engaged in unknown waters or walking on the road did not knock him one before is likely to include the new currency for the population of the coin by the paper.

The increased zeroes on the Iraqi dinar to the days of inflation, which came on the value of the Iraqi currency as a result of previous wars and the subsequent economic blockade was over, the currency of Iraq to the paper was printing the former regime, issued in large quantities without the cover, while the Iraqi dinar until the mid-eighties equivalent of more than three U.S. dollars.

But the adviser to Iraqi Prime Minister for Economic Affairs Abdullah Hussein Al-Anbuge said in a press statement: that corruption is rampant in state institutions and the low level of efficiency and economic situation in general at this time not in favor of lifting of the zeroes.

He pointed to what he said that he was pitfalls will change the currency, and the deletion of zeros, including the risk of fraud and increasing the demand for goods for reasons of fake due to payment of dinars instead of a thousand dinars, as now, explaining that the re-printing of new currency will have the costs of expensive, stressing that attempts will be made to convince the bank Central plans to slow down in this regard.

Previously, the President of the Iraqi Securities Commission confirmed that, earlier, that the deletion of zeros from the Iraqi currency will not affect trading in the Iraqi Stock Exchange and its shares

The director of a money transfer companies externally Sami Rashid: I think that lifting the zeros from the currency will increase confidence in the currency, and will lead to increased purchasing power of citizens, and the phenomenon of trading blocs will drop large cash used by Iraqis since the nineties.

He believed economic analyst Talal Jassim said the switch of the Iraqi currency a necessary but pointed to the need to provide the conditions necessary for its implementation, particularly the security and political stability, adding that the relative stability of the Iraqi currency after the issuance of currency recently, and the result of the return link Iraq to the global economy and the availability of reserves of foreign currency due to oil exports , encouraged the Central Bank to consider the deletion of zeros.

Jassim (economist) added that the lifting of the zeroes of the three will lead to an exchange rate of one dollar per dinar to Jasim, who called to the need to follow the policies of peaceful citizens and to persuade them to get used for a period not exceeding two years.

http://bit.ly/nbeGtO





Flashback Sept 14, 2010: The CBI is ready to delete the zeros from the dinar after the formation of the government directly

Posted: October 9, 2011 by THE CURRENCY NEWSHOUND

9/14/2010

Economic expert called for increased funds in central bank dollar and the reduction of import commodity because of its link the issue of the deletion of zeros.

Mahouelle’s (Citizen): The process of deletion must be matched by the power of currency

Said Dr Issam Mahouelle’s (Citizen) said yesterday that the process of deleting the zeros must be offset by increasing the power of the local currency to be considered at the highest levels of accuracy in choosing the appropriate time to inject a new currency.

Stressing that the issue is not the issue, but delete the zeros is the issue of currency of a country which can raise the value through the revitalization of internal and external trade balances and increase the dollar and the reduction of import.

The Central Bank of Iraq has affirmed its readiness to delete the zeros from the currency after the formation of the government directly, pointing at the same time that those zeros that are added to the Iraqi currency during the past formed a cluster of large cash amounted to 27 trillion Iraqi dinars.

The adviser said the Iraqi Central Bank Governor appearance of Mohammed Salih in an interview with “Alsumaria News”, “The zeros that are added to the Iraqi currency, during the last period, formed a cluster of large cash amounting to more than four trillion paper money, financial value amounted to 27 trillion Iraqi dinars, after that was 25 billion dinars in 1980, “noting that” Iraq is unable to manage this block because it is a small country where the large number of funds that traded on the Iraqi market has led to confusion in transactions for large commercial banks and in the work. “

The Iraq and gradually the issuance of new banknotes after 1991 when it began currencies are scarce in the Iraqi market for several reasons, most notably the high demand for them to meet the buying and selling as well as the smuggling of currency abroad, and to the north of Iraq, which split its time for the central administration, which made the Iraqi government allows Central Bank of printing new banknotes to meet the local need, and continued the process of lifting of the zeroes of the dinar to beyond 2003 through the issuance of a class of cash amounting to 25 thousand dinars.

Saleh added that “the Bank has fully prepared to delete the zeros of the Iraqi dinar, once forming the Iraqi government,” noting that “the deletion of zeros is a national issue and may need to special legislation, despite the fact that the Central Bank of Iraq is a reform of the currency management from the core work and to delete the zeros is one of the strategic functions of the Central Bank of Iraq. “

Saleh pointed out that “the Bank was able, during the last term, to reduce the level of inflation to the level of one decimal place, after more than twenty years,” noting that “Iraq has managed for the first time to reduce inflation to 3%, which reflects the success of the policy of the country’s monetary” . For his part, said economic expert on behalf of Jamil Antoine in an interview for “Alsumaria News”, “Iraq is not formatted for the time being to delete the zeros of the Iraqi dinar,” noting that “the deletion of zeros needed to stabilize the security and political, as well as economic stability.”

Antoine said that “the central bank by seeking to delete the zeros of the Iraqi dinar is designed to give moral force, not physical strength of the dinar,” noting that “the deletion of zeros needed to create and cultural awareness for the Iraqi people and the Iraqi market.”

The CBI, with headquarters in Baghdad, has four branches in Basra and Sulaymaniyah, Irbil and Mosul, and founded the bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March 2004, and is responsible for the maintenance of price stability and the implementation of monetary policy, including policies, prices exchange and management of foreign reserves and the issuance of currency management, as well as to regulate the banking sector.

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Iraq Economic Committee: deletion of three zeroes from the Iraqi currency will increase confidence internationally

Posted: October 4, 2011 by THE CURRENCY NEWSHOUND - Just Hopin in Iraqi Dinar/Politics
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Economic parliamentary: the deletion of three zeroes from the Iraqi currency will increase the confidence internationally

The decision of the Economic Committee in the Iraqi parliament on Saturday that the deletion of three zeros from the Iraqi currency will increase the confidence and international credibility in Iraqi currency, noting that the Central Bank of Iraq has a real strategy on the matter, adding that the dinar Iraq will be the strongest in the Middle East.

The Mahma Khalil told the Kurdish news agency (Rn), announced today that “the Iraqi government go really about the process of removing the zeros from the Iraqi currency and giving the fundamental pillars of it, so that there is a balance between the value in the hands of the citizen with the appropriate and value of the real exchange rate in the market.” . Noting that “the deletion of zeros will increase the confidence and international credibility in Iraqi currency, particularly that Iraq possesses huge economic resources.”

The organizers of the Central Bank of Iraq, has indicated in more than one occasion to the need to delete the three zeroes and issue a new currency, the categories of large cash transactions to fill the large, in addition to the presence of small coins, as well as the issuance of new currency in Arabic, Kurdish and English.

He Khalil, MP for the Kurdish coalition, said that “a promising future awaits the new Iraqi dinar, which will be the strongest currency in the Middle East, particularly that Iraq will have in the next few years, balance the fantasy depends on imports of oil could reach 6 million barrels every day “.. He continued by saying “as well as gas revenues and income of industrial, agricultural and religious tourism, along with the experience and capabilities and the bright minds of Iraq.”

He believed that “the Iraqi Central Bank has a real strategy about the deletion of zeros from the Iraqi currency, and we trust those who hold it to have the experience of banking and economic outlook contributed and contributes to maintaining the balance of the sovereign of the Iraqi dinar and the holdings of the Iraqi people” .. Noting that “there is full coordination between the parliamentary Economic Committee and the Central Bank of Iraq, and to have our support and our confidence.”

And reduced specialize Iraqis in the area of ​​the economy from the impact of the Central Bank of deleting zeros from the currency the purchasing power of the Iraqi dinar, also hopes the government from behind the move, as seen researchers that the cost of raising the zeros will be the biggest of its usefulness, given that the currency’s strength is measured by the stability of disbursement, which is based on the strength of the productive sector is capable of providing goods and services.

And on printing new currency in three languages, Khalil said “the Iraqi constitution states in Article IV that the Arabic and Kurdish are the official languages ​​of Iraq, and guarantee issuing the official gazette in both languages, with the Speech and expression in official domains, like the parliament, Cabinet, courts and official conferences , any of the languages, “..

He continued by saying, “The law also stipulates the recognition of official documents and correspondence in the issuing of official documents in them and open schools in both languages ​​and in accordance with educational guidelines, and paragraph (e) says any other realms that require the principle of equality, such as banknotes, passports, and stamps.”

The CBI had announced in June 23 last for his willingness to delete the zeros of the Iraqi currency, and as he emphasized that this step is one of the strategic functions of the Bank, pointed out that the new currency will contain on the Kurdish language in addition to Arabic.

The Central Bank of Iraq four branches in Basra and Sulaymaniyah, Irbil and Mosul, where established bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March / March 2004, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign reserves and the issuance of and currency management, as well as to regulate the banking sector.

http://bit.ly/nTJhlN

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CBI stresses need to delete the zeros and issuing new currency in three languages

Posted: October 4, 2011 by THE CURRENCY NEWSHOUND - Just Hopin in Iraqi Dinar/Politics
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Central Bank of Iraq, Friday, stressing the need to delete the zeros and the issuance of new currency, saying that there is a need for large cash categories to fill large transactions in addition to the existence of small currencies, he noted that the new currency will be in three languages.

Deputy Governor Central Bank of Iraq the appearance of Mohamed Saleh said in an interview for “Sumerian news”, “installation of faulty currency, as the largest category of Iraqi currency now equals $ 21, and therefore used by traders and dealers to deal with the United States banknotes and 100 dollars, for example if I gave them $ 10 class, they do not accept them”.

Saleh said that “this issue if this figure with the evolution of the economy and growth will be disabled, thus we must restructure the currency and delete zeros in that one.”

Saleh said there was “a need to small groups consisting of metal currency cash transactions, large groups to fill large cash transactions prepared in first-class institutions around the world global co.,” “lack of possibility of printing currency inside Iraq after that accompanied this experience several problems during the 1990s”.

Iraq has already the oldest printing currency within the country, the impact of the economic embargo imposed following the occupation of Kuwait in 1990, where it witnessed the Iraqi market, unprecedented inflation, as well as the increasing incidence of counterfeiting of currency at the time due to a lack of sound international standards in the course.

And he said that “the new currency would carry three languages are Arabic and Kurdish and English, we know that the Swiss currency bearing four languages”, stressing that “currency symbols will be national Iraqi civilization legacy spanning 8,000 years, thus reflecting the Iraqi nation, 100 percent.”

Has said the Central Bank of Iraq on 23 June last year expressed readiness to delete zeros of Iraqi currency, and stressed that this step is the Bank’s strategic posts, he noted that the new currency with the Kurdish language in addition to Arabic.

The Advisor to the Prime Minister for Economic Affairs in the 25 August, the Central Bank of Iraq to stop the procedures for changing currency, warning of “maviat” preparing for counterfeiting trillions of exploiting dinars, currency change with stressed that it would result in enormous cash block are difficult to face.

The Iraqi specialists in the field of economy pared the impact that the Central Bank currency zeros omitted on the purchasing power of the Iraqi dinar, the Government also hopes the step, researchers also finds that the cost increase would be greater than the benefit of zeros, as measured by the strength of the currency stability disbursement based on the strength of the productive sector capable of providing goods and services.

The Iraqi Central Bank Governor Sinan Al-Shabibi said during a meeting of independent bodies with Prime Minister Nouri al-Maliki held, in the 19 June, ready to initialize all items to replace the Iraqi currency.

Wheelock, the Central Bank of Iraq four branches in Basrah, Sulaymaniyah, Erbil, Mosul, where a separate Iraqi bank was established under the Central Bank of Iraq Act of 6 March 2004, and is responsible for maintaining price stability and the implementation of monetary policy including exchange rate policies and management of foreign reserves and currency management version, in addition to regulating the banking sector.

http://bit.ly/nhR4am

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Deputy Governor of the Central Bank expects continued rising inflation; Monetary reform needed

Posted: October 4, 2011 by THE CURRENCY NEWSHOUND - Just Hopin in Iraqi Dinar/Politics
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Baghdad (news) .. most likely the deputy governor of the Central Bank of the appearance of Mohammed Saleh, the continued increase in inflation rates in Iraq, in the event of failure to take fiscal and monetary policy actions necessary to reduce this phenomenon, citing the reasons for growing, ongoing for months in a row to higher prices for imported foodstuffs.

said Saleh in a statement to the Agency (news) on Tuesday: that inflation in Iraq will continue to increase if it continues policies have the monetary and financial of Iraq to develop the steps necessary and decisive action to curb this dangerous phenomenon, pointing to this type of inflation, which is called (transition or importer ) if left without treatment would cause damage, “chronic”, through pressure on the cost decimal continuously, leading to increased rental rates for real estate and food in local markets.

He said Mohammed Saleh, that the reasons for increasing the rate of inflation in Iraq for months in a row due to an increase in food prices imported from abroad, the fact that Iraq lacks the domestic production of food, indicating that these materials prices high globally as a result of the global economic crisis and continued: that Iraq is part of the world is affected by any change affecting global markets.

The Deputy Governor of the Central Bank that the trade account of the payments system in Iraq enjoyed a surplus of Mali, this is something that reduces the risk of inflation in Iraq, as well as that Iraq is exporting oil than it imports Vtatherh on the economy will be small although there is an increase in the rate of inflation, said that the Iraqi economy is one of the economies stagnant and powerful at the same time, he faces problems economic with ease.

http://bit.ly/o8k3rj

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