Central Bank Related VI


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Complete Minutes of Shabbibi World Bank meeting
Here is the entire document.

MRA 1901 - SEPTEMBER 24, 2011 - B&B Reporters
MR. KARASAPAN: Ladies and gentlemen--now you can hear me. Welcome to the launch of the Iraq Financial Sector Review. We have the Governor in the building and he's making his way over here, led by our Task Team Leader.
But because of time constraints, we will have Inger Andersen, our brand new Vice President for the Middle East and North Africa Region start with her remarks, and then we will move on to His Excellency, Dr. Rafi al-Issawi, and by then we should have His Excellency Sinan Al Shabibi, the Governor of the Central Bank here.
MS. ANDERSEN: [Off microphone.]
MR. KARASAPAN: Whichever way, but it's better over here for the TVs, I think.
MS. ANDERSEN: Oh, I see. Well, first of all, my first comment is, of course, to welcome everyone who's here. It's a real, real pleasure to have so many people who are interested in this very important topic.
But most importantly, I'm particularly pleased to welcome Dr. Rafi al-Issawi. It's a real pleasure to have you here, Mr. Issawi. I know that you have led this work, you have provided guidance to this work, and it's under your personal leadership that we have reached where we are. So we are very privileged to have this launch in your presence. And we will look forward, also, to Governor Shabibi speaking to us today.
Your personal leadership and your personal endorsement of this financial sector review is after many consultations and much work. It's actually what will make the difference. This is not just a dry report that will sit on a shelf. This is something that is live, and that is something that I'm particularly very pleased about.
I'm also pleased that many of our partners who have worked with us on this, such as the IMF, such as the U.S. Treasury, IFC, and many other partners are here today and will accompany this process looking forward.

We in the World Bank Group, we are here to provide support to the Iraqi Government, the Iraqi people in enhancing economic growth and in developing the financial sector to serve the nation and to serve the people at large. And we've learned from experience that attaining an inclusive system is essential for sustainable development. And so, Mr. Minister, I'd like to recognize the Governor who has now arrived. Governor Shabibi, it's a pleasure to have you here. We all agree that a very strong and vibrant financial sector is absolutely critical in promoting development in Iraq. And the launch of this report, therefore, comes at a very, very opportune time. I'm also very glad that we've had a project that is supporting the restructuring of key state-owned banks, Raffidain Bank and Rasheed Bank, that account for 86 percent of the total system, and that that overall helps strengthen the supervisory framework for these banks.

Now, some progress has been made, but the speed is going a little slow, so we know that with your leadership, we will, together, accompany that reform that is in hand. And so, we very much appreciate that leadership and that specific focus that we see you giving to this sector.
Now, the report today--and you will hear from our brilliant Task Team Leader, Sahar Nasr who is sitting there, some issues on the report, but let me just say that there are six items, six sort of to-do items that I think actually that the team, together with our Iraqi friends, have identified.
And frankly, when I look at these six items, they are very relevant to many of the reform programs and projects that we deal with, with banks. So they are not unique to Iraq. But obviously, we can learn from each time and in country to see the uniqueness in each place. But there's much that is of general nature. And these six areas, let me just mention them. First of all, the financial sector really can play that role of financial intermediation, but it's still a little weak, and the weak financial infrastructure is sort of preventing that from playing the full role, the full potential that it has.

Secondly, the story around finding a level playing field amongst all the banks is very important and something that the report highlights, and which I know is a desire of the Iraqi authorities to find between the private banks, the state-owned banks, et cetera. How can we get them in that level playing field? Thirdly, financial restructuring, as I mentioned, on these two large state-owned banks. That's important because they do govern control by 80-plus percent of the market. And so, once that is brought in level and once we have that restructuring, then we will be able to see the leveling between public and private banks. Fourthly, the whole issue around banking supervision. We know that if we ignore that, then the sector will be on a runaway track. So ensuring that we have solid supervision is absolutely key. Five, we have to also find ways to develop non-bank financial institutions and markets because they have a potential to provide access of sources of finance, and that's a very key piece to the full array, the full rainbow of financial products that we want to be sure are available to the citizens of Iraq and to businesses and growth.

And finally, of course, to ensure that we have--and I think we do have in the spirit of the Governor and the Minister here--a strong politically supported effort to prevent any abuse and any undermining of these very efforts on reform that are underway through working on corruption issues and anti-money laundering, and issues around prudent fiscal and financial management of the banking sector.

So when we look at Iraq's banking and financial systems and the speed of these adjustments that need to happen, it's very clear that there are some--this is not an easy road to travel because there are political and many other issues that play, and that's where leadership comes in, the leadership that we see today and the leadership that we have seen in the preparation of the report.
So we know that there's still much to be done on the legacy of the prevailing state intervention of the past. With that said, I want to stress that we feel that in this partnership and with that leadership that we see today, we can see that the policies and the recommendations that are contained in this report, we are very optimistic that they will prevail and see the light of day as we roll out the program.
So I'm, therefore, very glad, Mr. Minister, that you've taken a personal interest. I want to thank you on behalf of the Bank for that leadership that you have shown. And I want to thank, also, the Governor, as well as yourself, Mr. Minister, for the excellent cooperation that we've had.
So with these words, let me hand over to you, Mr. Minister. Thank you.
DR. AL-ISSAWI: Thank you very much. First of all, I would like to express my deepest congratulation for Mrs. Inger for being appointed as Vice President for the MENA Region, and looking forward to work directly with you and with your team.
And here I don't need to forget Mrs. Shamsehd [ph] who worked with Mr. Hedi Larbi and all the excellent team, and Maria, and everyone who worked and some of them are living in Iraq like Maria, or visiting. All of them are working very hard to support my ministry and my government.
Everyone around the table, maybe because of their different multiple meetings, is fully aware about the type of the problems of Iraq economy and Iraq financial sector.
But to me, maybe one of the most important reports or meetings or workshops that have been conducted in Istanbul that I already referred to in my meeting with Mrs. Inger this morning that are represented by your team, is what's called Solution Oriented or Problem Oriented Action Plan that focused on specific problem and the solution and the ministry or ministries in charge and time table.
To me this was really a new trend and new beginning, in fact. Just to focus on the different problems that diagnosed in the financial sector. And we in the Ministry of Finance, when we came back to Baghdad, me and Mr. Governor had a very extended meeting to put the time table for implementing that action plan.
So again, I would like to thank again Mr. Hedi Larbi and your team and especially because of the time short, very hard to present that action plan.
And again, I would like to stress the necessity of the partnership with the World Bank from the point of view of the government. And you have a very long way to work together, focusing on macro issues rather than the micro, despite the macros are also important as daily activities, but working on strategies and a comprehensive policies or strategies are very important to the ministries, not only to the Ministry of Finance.

Reform of the financial sector is definitely needs a very long time, not only our will or support of the government. We in the Ministry of Finance and the Governor of the Central Bank are definitely stand with you supporting all the reforms that are needed to update or to upgrade our financial sector.

Some other issues like capacity-building that I already stressed with Mrs. Inger this morning, and improvement of private sector participation in the Iraqi economy, diversification of Iraqi economy that already everyone knows very well that you depend on what's on the oil that make everything very volatile and very oscillating with the project of oil.
All these sectors or field responses have to be really--I cannot say very premature, but it leads off efforts to upgrade or to strengthen it.
Finally, I would like to present an open invitation for you, Mrs. Inger, to Baghdad and Shallah [ph], and I already discussed with you in the city of seeing your office completely in Baghdad despite the fact that they are doing very well from outside Baghdad. This is not for criticism, but this is only just to say that their presence in Baghdad will really open more opportunities to the ministries to work very close to them.
And thank you very much again for all the things that have been done by you and your team, Mrs. Inger. Thank you very much.
MR. KARASAPAN: Now we will have opening remarks by Dr. Sinan Al Shabibi, the Governor of the Central Bank of Iraq.
HON. DR. AL SHABIBI: Thank you very much for giving me this opportunity, and I'd like to thank very much the team who is actually working on the financial sector review. This is very important.
And I thank the efforts of all the staff of the World Bank on this, and especially Ms. Andersen, and, of course, the team of Mr. Larbi and Sahar Nasr, which is really very important, very essential for the Iraqi economy.
The financial sector is a complement to the real sector and, of course, in this case, it's very difficult to talk about any kind of development in the real sector without having all the resources to be mobilized for that sector and to be--actually serve it through inter-mediation, because development of the financial sector will make all these things actually easy for the development and for the resources to go from different saver to different investors and all these things.
So I think it is very important and I would like to appreciate very much the efforts of all the people who are actually working on this project and, of course, His Excellency, the Minister, actually lent his utmost support to this activity and we, in the Central Bank, we are actually all ready to give all the support, because we think that a lot of this work is a complement to the work of the Central Bank in providing stability and the fact that actually--despite the fact that we had a lot of success in the Central Bank in the provision of stability and provision and laying the ground for intermediation and exchange its stability.
But, I mean, that's not enough because we have a banking sector which needs to be developed, which needs actually to--especially the state-owned banks and, of course, the whole private sector banks.
So you can actually count on our support on that, because, I mean, not only the support actually--it is a support actually which we are going to benefit from, eventually. So I'd like to thank you again and look forward actually to the discussion which is going to take place.
MR. KARASAPAN: Well, then without further ado, we'll turn to Sahar Nasr, the Task Team Leader, who will introduce the team. We have 50 minutes until [inaudible]. We have good representation from the [inaudible], so time is of the essence. So, Sahar?
MS. NASR: I want to begin by thanking you all for being here today at the launch for the Iraq Financial Sector Report. I am especially honored to have His Excellency Dr. Rafi Al-Issawi, Minister of Finance, and, of course, His Excellent, the Governor, Dr. Sinan Al Shabibi, and our new Vice President, Ms. Inger Andersen. We are happy to have you here.
I would like to acknowledge that this is the first assessment of the Iraqi financial sector that took place over the case, so we're happy to be partners with you in this very key endeavor.
And as Ms. Inger indicated, it is a package of integrated work of support that the Bank has been providing the Iraqi authorities, and one of the key projects that we have is the banking sector reform project, and we are very happy to see, also, the new Minister of Finance with his leadership, because the Governor has been working on that project along with limited support from the government. So we are very proud to have you in moving especially the state-owned banks where we have issues.
And just quickly, the main objective of the report was to assess the soundness and stability of the financial sector, especially with the global crisis and what is happening in the Arab region, so we think it comes at an opportune time.

And we wanted also to assess the reform program, the gaps, the challenges, and also we wanted to make sure that the financial sector does play a key role in economic development in enhancing equal opportunities and poverty reduction for the Iraqis serving all citizens, and that is why we'll focus a little bit on the access issue.
One thing I want to highlight before the team takes over is it's a joint product. It's not the World Bank report. It's a product that was done in collaboration with the Iraqi government, and we did, as His Excellency, the Minister of Finance, mentioned, we did sit for three days, consecutive days, also with Hedi there, discussing.
And in many things that the team did put, we did reflect, we did make changes, we did discuss some laws we were not aware of, we reflected. So we had a lot of brainstorming and with the representation with the private sector, civil society, we had the banker's association, we had Islamic banks, state-owned banks, non-banks, stock market was there, and we were happy to see ownership and commitment.
And, of course, that was also due to your leadership, but also giving the opportunity for a transparent and solid discussion with everybody. So I want to thank you for that.
And Inger has already highlighted the key messages, but just very quickly I want to stress also that the level playing field, we think, is important. Enhancing the supervision of the Central Bank is one of the key issues. Reforming the banking sector, since it's dominant, so it plays an important role, but also developing non-banks to have a more diversified financial system and more competitive.
And very quickly, I will just take a look of the snapshot of the action plan that their Excellencies referred to where we clearly put time bound actions specified entities, whether they're mainstream or whether it's Central Bank, whether it's a greater role of the stock market, and we're all different players, market players. We're there and endorse the action plan.
I think that's documented now in Annex 18 and this is one that we've done in partnership that we are really, as a team, we're all very proud of. We understand that there are challenges. We had several missions in Baghdad and also the Istanbul event and many other missions in different parts of the region.
And we understand there is a security issue. We understand the political situation. We also understand there is a lot of challenges, but we see there is some progress made and there's more than can be done and we're happy to step in and provide any support through the current operation, but also moving forward.
Allow me now to introduce our new core team members and Sibel. So maybe we start with Sibel, who will give us a quick overview on the macro framework in which the financial sector operates and we think it's very important.
MS. ANDERSEN: I'm sorry. Before we do that, I'm afraid that His Excellency, the Governor, and I will need to leave because we have to be in the Development Committee. So I want to apologize for that, but you know, we are here for the annual meetings, and so--
DR. AL-ISSAWI: [Off microphone.]
MS. ANDERSEN: I expect that we will all have to go to the Development Committee so I hope that you will all understand, but this is the business of the Bank at this point. But thank you very much.

MR. KARASAPAN: Okay, we will continue.
Yes, could everybody sit down, please? We have Sibel Kulaksiz was worried that everybody is leaving because she's starting to speak. I'm trying to reassure her.
Sibel, why don't you give us a picture?
MS. KULAKSIZ: Thank you, Omer.
I'll provide the macroeconomic background before Arne Petersen's presentation on financial sector.
As Mr. Minister mentioned, Iraq's economic and financial performance depends, to a significant extent, on the oil sector. We have the numbers here. In 2010, revenues from oil sector accounted for 62 percent of GDP, 87 percent of total revenues, and 99 percent of overall export revenues.
The lack of economic diversification makes Iraq's economic growth vulnerable to oil price and volume shocks. The financial sector's contribution to economic growth has been very low. The share of banking and insurance sector was only 1.9 percent of GDP in 2010. It starts from an average of 5.6 percent in 1980s.
Although credit to the economy has been on the rise in recent years, the level is still very low compared to other countries. It was around 9 percent of GDP in December 2010. Given the very, very low level of financial intermediation, the nominal exchange rate continues to be the main tool for conducting macroeconomic policy and maintaining price stability.
Also, international resources have played a critical role in helping ensure stabilizing Iraq. Gross international resources went up from $20 billion in 2006 to $51 billion at the end of 2010.
There have been a number of government post-interventions to encourage more lending to private sector, the Central Bank of Iraq lowered post-interest rate from 7 to 6 and the reserve requirements from 25 to 15 percent. This development is expected to encourage more lending to the private sector companies in Iraq.
Another encouraging status is that the Central Bank of Iraq remains committed to independence of the institute. Iraq's economic growth prospects are favorable. Real GDP growth decelerated in 2009 and in 2010, but it's expected to pick up this year and the coming year, mostly because international oil companies increased production while global oil prices have risen.
Although economic prospects are favorable, risks remain high. In addition to Iraq's vulnerability to oil price shocks, main risks include political factors, security issues, technical capability, and institutional capacity issues to implement reforms.
A deterioration in the political environment in the region might have a negative impact on implementation of reforms. And now I want to enlight Arne Petersen to talk about the financial sector.
MR. PETERSEN: Thank you very much.
I see that we've already exceeded the time limit allowed for intervention, so I shall be very quick, or try to be very quick at least. And also, all the good parts have already been spoken by the Minister and Ms. Inger. So all I have for you is a little bit of background to put in relief what are the key findings that have been mentioned here already. And it's also mentioned in the news release that I'm sure you already have seen.
As mentioned, Iraq's financial sector is very much dominated by the banking sector which holds most of the assets. There is a sluggish change, but conversion is very low and very few instruments are traded. It needs to be revitalized.
The insurance sector is even smaller and is not at all effectively supervised. There's a supervisor, but not staffed. As others have alluded to, the SME and bank financing is not well developed and access to finance is very low.
As an example, a USAID study has indicated that less than 5 percent of SME, small and medium enterprises, actually receive loans from banks. Seen from the other side, household service shows that only 3 percent of households in Baghdad receive loans from banks. So there's a lot of work to be done.
Now, the banking sector, to look at that, as other people have noted, it is dominated by the state banks. We have nine--sorry--we have seven state-owned banks, two of which are the large banks that take both deposits and make loans. They're mostly focused on the state sector and on state enterprises.
We do now have a number of new commercial banks coming in. We have as many as 36 small, private banks, nine of which follow Islamic principles, and they are gaining importance, but as you can see from the chart there, still they account for a rather small share of assets.
The bank system is small. There are some questions of the numbers and we had to make adjustments to take into account the fact that a lot of the assets accounts in the banks are actually the recent losses linked to the sharp depreciation of the dinar.
So if you adjust for that, you will see that only about 73 percent of GDP in terms of assets, compared to 130 percent for the MENA Region as a whole, so about half the size in other countries in the Region, and 86 percent of banks.

You'll see that credit extension is very low. If you compare it to the MENA Region, which you'll see in this chart, only 10 percent GDP compared to 55 percent for the MENA Region. Now, it is growing fast, but for a low base. Also, for all MENA GDP is low. And importantly, half of the money supply is in cash, which indicates still a largely cash-based economy.
As mentioned, the reform efforts, it's safe to say, are the focus of Raffidain and Rasheed Banks, which have suffered from the legacy of past economic losses and also some poor fiscal operations. They are not very efficient, according to modern standards, and reform efforts are needed.
Some progress has been made as acknowledged. It has taken longer, as has been anticipated regionally. I take heart in the fact that the Minister now is committed to accelerate his efforts.
A new player has entered the market over the last couple of years, namely the Trade Bank of Iraq, or the TBI, an increasingly large institution, and has been--the government has not yet developed a very clear strategy for the future of state banks versus that assigned to private banks.
Looking at the private banks, the expertise is improving. There are still very--I'm not going to say many cases, and not all provide a full range of services. Many banks provide only limited services and a particular focus on wholesale and retail trade rather than on construction or industrial work in public places.
Now, if you look at the share of credit, then the private banks actually have a larger share in credit than they do in total assets. So as you can see they do have an important role already and is one that is likely to increase as we go along.
That, of course, presupposes that they are able to function effectively and in a prudent manner and that's why we speak of bank supervision must go hand in hand and you have to strengthen the banks in parallel with the increased role that will be assigned to them.
No less, as mentioned, the premier indicators are going to be good, and we do not think there's a systemic risk. A few are in difficulty.
We referred to the level playing field and that is a clear issue that the government will need to tackle. At the moment, government and state-owned enterprises are not allowed to bank with private banks. The private banks have a limited mission for granting lines of credit, and this is strictly controlled by CBI, which was created with the express purpose of trade financing for the public sector.
An interesting little tidbit is that you cannot pay your taxes to the government with a check drawn on a private bank. It has to be drawn on a state bank. On top of that, of course, is the perception of a de facto deposit guarantee for state-owned bank which tends to let customers prefer deposits there.
I apologize. I'm trying to be very fast here. But let me go quickly through bank's original regulation. You'll see what it does. Banking regulations are broadly appropriate, but they need to be fine-tuned, brought to international standards.
On top of that, many regulations have just recently been introduced, and therefore, the track record has not yet been fully established. And the Central Bank is fully aware of the need to strengthen further supervision, and they have indeed asked for assistance in this area.
One area that needs improvement is that effectively Central Bank is not able to fulfill its supervisor function over state banks, in part basically because the state banks have had the first position in the past and they have not really adjusted to the new system yet. So that is an area that needs to be addressed very urgently.
And as I mentioned, in tandem with giving a larger role to the private sector, we must ensure that their risk management skills are improved and that bank supervision is strengthened. If not, you risk getting into a shock situation in the asset quality and we want to avoid that.
Briefly on the capital market, everybody agrees that in a fair and efficient capital market, it's crucial for supporting economic growth. The Iraq stock exchange appears to provide a good foundation to build on, and as I mentioned earlier on, we do need to build on it.
For the moment, only about--market capitalization only amounts to about 3.5 percent of GDP compared to around 30 percent in Egypt, similar in Oman, and over 100 percent in Jordan. So there's a long way to go.
To do so, there are some legal and regulatory framework issues that must be addressed. And supervision of the market must also be enhanced. For example, the Iraqi Securities Commission still work under a temporary law. It is a draft law, but that needs to be adopted quickly, also to allow then the operation and more detailed regulations.
So we're still waiting for that. It is going to happen soon, we believe. But in general, many of the prior conditions for effectiveness of markets are weak.
I mentioned the insurance sector is small. It is also dominated by the state companies. There are 18 small private companies and, de facto, they're not regulated. As I mentioned, there is a supervisor, there is a law, there's no staff except for two or three people, and effectively, the activities of these companies are not being regulated.
There are no mandatory insurance products. As the Minister has pointed out, he would like to see also developed some regulations for shar'ia compliant insurance products which not yet they have.
The pension sector is an undergoing a transformation in part with the assistance from the World Bank.

There are a number of issues that cut across all the sectors, and I have listed some of them there, but they're very clearly related to transparency and to governance and to the rule of law. That is not unique for Iraq. We find that in all countries. But it is very clear, though, there are things that must be focused on immediately, but will take a long time, as the Minister mentioned.
We believe that the move to IFRS could be very helpful, in particular to banks and privately-owned companies. We need to raise the proficiency of the audit profession. We need to secure accountants and auditors, update bankruptcy law, improve the competency of fiduciary, strengthen the framework, set up a comprehensive credit registry, and improve the general frame of doing business.
And I should mention here that in a survey, unfortunately, Iraq ranked last in the framework for doing business in the MENA Region. So there's work still to be done. In a sense, we already have talked about the key findings and what needs to be done to move forward, so I don't know if I need to go into this now or shall we stop here?
MR. KARASAPAN: Maybe very quickly.
MR. PETERSEN: Yeah. As I mentioned, some of the issues, if they're begun now will take a long time, but there are some that can be done very, very quickly up front, and I think which will show a very good demonstration effect, and also demonstrate the government's conviction of moving towards a level playing field.
So that will include the clean-up of the balance sheet of Raffidain and Rasheed Bank, and the implementation of the reconstructuring. There are progress in both areas. I mentioned one. There was another company in Istanbul where the focus was on the reconstructing of the two state banks. So again, they are moving forward and that's good to see.
Combined with that, we'd like to see very early developing a vision for the role of state banks because as I mentioned, there's also ICB and we have four sectoral banks. We need to have a clear message from the government how they see that going forward. Will there be a further liberalization? Will there be a further increase, a further move towards private banking?
I mentioned the bank supervision. Again, some things were done immediately, but that's also a longer term project. We need the adoption of the permanent securities law to permit the public relations and securities markets. And, of course, we need to have a proper supervisor established for the insurance sector.
Underlying all this, we need to accelerate the transit to a market economy, a full functioning market economy so that we can actually have some more customers for the banks, good strong customers for the banks, and also if you start accelerating some of these state banks, you will, in a sense, bring life into the stock market as well.
So a lot of things to do, some things in front, but we are convinced it will work.
MR. KARASAPAN: Nicely done.
MR. KARASAPAN: So we will now move to the open discussion. I will move to the mic and then we will move to the open discussion. But before the open discussion, let me also acknowledge some of our other partners who have joined us. Mr. Ron van Rooden, the Chief of Mission for the IMF in Iraq. He's there. Paul Leonovich, Associate Director, U.S. Treasury, is also here.
MR. THOMAS: I'm Bill Thomas sitting in for Paul. He was--
MR. KARASAPAN: That's what I meant actually. And Ziad Badr who used to be the Country Manager for Iraq and has now jumped ship to the IFC, but will continue to work closely with us.
So I open it up. Questions, comments?
MR. VAN ROODEN: If I may start, and I must say I very much support Arne Petersen's presentation. We have been working closely together on this. I think one of the issues that I see is that--I mean, we essentially all agree on what needs to be done and what the situation is.
What I see as a key constraint is capacity on the Iraqi side to implement these recommendations. And so, a question that I have is, how can we help the Iraqi authorities to implement some of these measures that they agree to that needs to be done? And also, to the extent that there is still a discussion ongoing in Iraq, for example, on what to do with the state-owned banks, how can we help as an international community in building support for these type of measures?
MR. KARASAPAN: Any other comments, questions?
Yes, please.

MR. THOMAS: I just want to reiterate, from the presentation, my observations--I've only been there once, but been looking at it pretty closely. They almost have no capacity to supervise banks.
They are struggling desperately, I think, and if this little 11 percent or 15 percent of the sector, they have two in serious difficulty and they, understanding how difficult it is in certain countries to live up and meet what their own law says, they've been unable to do that with these two banks.
They have no liquidity and they turn depositors away, and that's an unacceptable situation almost anywhere if you try to do it right. You have to have a level playing field toward depositors if they get their money or not.
So they're struggling with even implementing things the law allows them to do, and we're encouraging, as much as we can. I think those of us that have discussed this, this week, and are aware of the situation, they're trying--we're all trying to take the same basic position of what we think they need to do.
They have a short-term problem with these two banks, and then they have this much more difficult, ultimately long-term capacity-building problem. It's very difficult to help them when you can't travel freely and go to a bank with bank examiners and be there every day.
And I think there's a certain understanding how critical this is. They are going to get some help from Turkey, which was a big development. They had a meeting in Ankara with the Turkish bank supervision agency who's going to--I still think it's not ideal, but they will get some training from them. I think they'll be able to send people to Ankara to go through this Turkish examiner's training program.
There's still a possibility that they would contract help on their own that we could help facilitate and help them pick a good contractor and help oversee them, someone who could actually come in and go to the CBI every day and go out to banks. That's ultimately what they need. And until they get that, they're only going to get so far, I'm afraid.
So the real emphasis is they need that kind of assistance and it will take several years to build any real capacity. Maybe it's good that the private side is small, because I think it's one the sides--as the slide says, their capacity needs to grow with the sector as it develops. They can't get behind it.
Meanwhile, this new responsibility to oversee the state-owned banks, which we can wait and see how well they do that. Keep in mind, the state-owned banks are investing in the private banks, either through loans or equity positions and things like that. So it's getting pretty muddled to see how everything is working there.
MR. KARASAPAN: Thank you. Let's take one more comment.
[Off microphone.]
MR. BADR: Thank you.
Well, I just started my job in the field in Baghdad as the first representative for IFC, to find myself already under extreme pressure from the donors. They already have a trust fund with like $38 million.
And as you know, IFC has two arms. It has advisory services and investment services. So we will be happy to support the actual plan coming out of this review. As you know, we have the funding, so in all areas that IFC has comparative advantage, we will be happy to provide the support.
Also, we have a self-interest in the restructuring of commercial banks, to have a fair ground for commercial banks to operate. As Arne represented, 11 percent of the market is controlled by private banks. Half of that 11 percent is controlled by the Trade Bank of Iraq, which is not really a private bank. Okay?
So all commercial banks are competing in that whatever 5 percent that is left, and--
PARTICIPANT: TBI is a [off microphone].
MR. BADR: Okay. So it's not that 11 percent. Okay. So anyway, most banks, most commercial banks do not really operate as banks. We found out that some of them are selling cars, furniture, and so on. So, I mean, we have self-interest really to restructure the sector, because IFC is already an investor in two commercial banks.
One of the first foreign investment in Iraq was an IFC investment in the Credit Bank. It was the Kuwait National Bank where we have 10 percent equity. And IFC Board already approved recently another investment in the Commercial Bank of Iraq [Iraqi name] in partnership with the Ahli Bank of Bahrain with 7 percent equity.
So, you know, we would like to work in partnership with you and see whatever we could do to help in this sector. We already have some activities going on to support the Central Bank of Iraq in setting up a credit bureau.
And I would like to thank you for this opportunity to speak here today. Thanks.
MR. KARASAPAN: Thank you, Ziad.
Could you--the next speakers, we have one question and then one more. Could you identify yourself, please, and then we'll come to you.
QUESTION: Hi. I'm a reporter with Reuters. I just want--this question is for Mr. Leonovich. Do you think the banking, like this opaque banking sector, is Iraq's biggest roadblock to growing their economy?
MR. THOMAS: I can't say.

QUESTION: Can anyone answer that question?
MR. KARASAPAN: Why don't you--okay, one more, let's take one more question. Identify yourself, please.
QUESTION: Thank you.
This is Mohammad Wafir [ph] from Middle East Broadcast Network. Actually, I was very--I came to give the questions for the--to give the answers for the questions Mr. van Rooden had raised. And we all know that the Iraq, as other countries in the region, they need the capacity-building and the technical assistance now the IMF is really to introduce and help.
But at the same time, when we ask the IMF officials, they say, We are waiting for the request. And by experience, countries in the region, they don't ask for capacity-building. They don't ask for the technical assistance. Somewhat, they're pretty much interested in the financial thing.
So the questions you ask, we really need the answers. So if you can help with those answers, we will be very grateful.
Thank you.
MR. KARASAPAN: Let's take the questions in order. Sahar, the first question on the opaqueness of the system, and then we will let the IMF answer that one.
MS. NASR: Okay. I will comment on several things, also, that--
MR. KARASAPAN: Okay, sure.
MS. NASR: Because Ron raised the question of how can we help, and I think that's an important question. I think there are many ways that we can help, but it's the different issues. Some issues would require capacity-building. It's true that many of the implementing entities lack the capacity and skills, so that is one area.
But there are many issues that we have highlighted that requires political commitment and the decision to be taken. If we're talking about the cleaning of the financial statements, that requires more than capacity-building, a decision taken at the highest level.
We had many discussions with the banks. Chairmen of the banks don't feel they have the authority to take the decision. They need a higher level decision to do the write-offs, for example. So I think let's differentiate not only between the short-term and the long-term.
I think the political will and the commitment from the highest political level, and not necessarily the governors, but even beyond that, would be required because there is external debt. There are many issues. It's not only the regular non-performing loans.
We have a project, the World Bank has a project. It's not large, but it's reasonable, and I think we are slowly, but we are doing some progress there. Like I can give one example.
Two weeks ago we had a mission where we agreed on the new organization structure for the state-owned banks. It took us four days of discussion. We had to bring in like different organizational structure of different banks to convince them, because you need buy-in, because at the end of the day, they need to approve organization structure.
Even if we provide the best, they need to believe in it and really be committed to do it, and you have to make a good case by showing them what are other countries, especially in the region, are doing where they would reflect. So I think that's an area that I'd like to highlight.
Also, on supervision, things take time. I think banking reform takes time, and I think our expectations should be also very realistic on how much we can do.
And I want to, because we have this on-the-ground operation, and I have to highlight that it's sometimes very difficult to find the right competent consultants to go and work in Baghdad. That's a challenge we face. We have bidding's with procurement like every week and we get sometimes consultants. Sometimes we turn them off and we have to find more. So that's a key challenge that we face and we have to acknowledge that.
Okay. And on the question regarding opaqueness, I think there are different challenges. I think Ron had raised one. The team has also brought it up. It's not only opaqueness, but I think lack of skills. They need skills. They need political commitment, a willingness--like we have seen a significant, and I'm sure IMF colleagues would agree--the appointment of the new Minister of Finance who was more committed, because the Governor of the Central Bank has the responsibility of capacity-building of the Central Bank itself, as a supervisor, regulator.
For example, you see the payment system is one of the good, main outcomes of the reforms that took place which has been supported by U.S. Treasury and it's there operating, all banks are connected. So when there is the right support, there is some positive outcome.
But like when you're talking about state-owned banks, the owner is not the Minister of Finance, because these state-owned banks are owned by Treasury. So that's where a lot of the decisions have to be taken. So it's important to identify and that different entities have the commitment to really do that.
And maybe I'll ask Ron or Sibel if they want to comment on anything.

MR. PETERSEN: I'm Arne. That's Ron over there.
MS. NASR: No, no, sorry. Maybe Arne would want to comment.
MR. PETERSEN: Yes. I have to be careful not to get into areas that really belongs to the IMF. So maybe I should let Ron speak first.
The banking system is not the only roadblock to have the growth in the non-oil sector we would like to see in Iraq. And I'm speaking from, for example, personal observation. It seems to me there is still a legacy from previous regime, whatever.
We have not resolved all the issues relating to state intervention in the economy. There's been a lot of discussion going on and there's been decision taken, but yet, it has not come to fruition and there's some things to be done to fully implement that.
You see it clearly in the size of the state's role in the banking sector, which is indeed large by any standards around the world. It's commonly accepted by most observers that a state-owned bank in general is not quite as efficient as a private bank.
So the Iraq authorities do need to decide how they would like to see the banks develop, along private lines or along state-controlled lines.
We believe that they wish to move to the private sector, but to do so we have to have a clean-up of the state banks, we have to have proper governance in those state banks, and at the same time, the government has to realize if you have a strong state bank, we cannot--government should not tell them what to do. Then they have to accept it, behave along commercial principles. So that must also change.
Now another thing. The culture is still influenced by the previous situation. It seems to me that bureaucrats or all technical level staff are very careful in doing their job or in over-doing their job or taking the initiative, because in the old days, if they did something and it turned out to be wrong, well, you might pay with your life.
We have again heard when we asked, How come you didn't have much profit, they say, Well, the minister didn't tell us what to do.
MS. NASR: In writing.
MR. PETERSEN: In writing, yes. And then a letter in writing.
MS. NASR: And then they stopped it or they didn't.
MR. PETERSEN: And as I keep telling them, Well, it is your job to tell the minister what it tells you to do. You have to bring up proposals and give the answers and then the minister will be able to act in a good manner. But that's not yet the way they quite see this.
There's a lot of work to be done to change the culture.
MR. KARASAPAN: Then, Sibel, very quickly to you.
MR. KARASAPAN: And then over to the IMF and then we'll pass it on to Hedi for the closing remarks.
MS. KULAKSIZ: On capacity-building, Turkey is very much interested in providing support to Iraq's financial sector. In addition to banking, its Parisian agency, the Capital Board of Turkey is keen on providing capacity-building training. The Chairman was here wishing to gather with his team and he said he could team up with OECD and the U.S. SEC and could provide support to all Iraqis in their facilities in Ankara and Istanbul and they said they will be happy to provide that support.
MR. KARASAPAN: Sibel is also talking in her capacity as the former head of the Turkish Staff Association.
Yes, please go ahead, Ron.

MR. VAN ROODEN: If I may, indeed there is a need for capacity-building and authorities actually do request that and then the IMF is providing technical assistance in many areas, particularly also to the Central Bank.
But it's, to some extent, constrained, both by the security situation, and typically what the IMF does is provide missions. Short-term people are there for one week, two weeks, to help them develop and build capacity.
But what's the Central Bank and the banking system in general in Iraq needs is people there for a longer term, for a longer period. As Bill was saying, the capacity is weak at the Central Bank's supervision department, but also at Raffidain and Rasheed and the other banks.
So in that sense, I mean, it's very welcome, but the Bank of Turkey, Central Bank of Turkey, and the Turkish supervisory agency would be willing to provide that type of assistance, which we cannot do, unfortunately.
Sometimes we are able to put long-term advisors there, but for Iraq, it's very difficult as Sibel or Sahar is saying, to put people there for a long period, particularly into such difficult situations. And there, I think we need to do better to find that type of assistance, and also by approaching other central banks also in the region.
With regard to what is needed for private sector development, the financial sector is one aspect and it's a key aspect because the key role, essential role of the financial sector is financial intermediation, to mobilize savings and allocate that to investment in the private sector.
But it's only clearly one aspect. Another aspect is obviously security, which has improved an enormous, an enormous amount over the last few years, but it's still a risky environment.
You also need macroeconomic stability. And again, there are two--a lot has been achieved. Iraq has low inflation, has a stable exchange rate, government finances are doing reasonably well, largely supported by higher oil prices.
And then for private sector development, you also need the appropriate regulatory framework, what Arne was mentioning earlier. If you look at the rankings for--Iraq ranks, in terms of ease of doing business, they come in quite low. So last even.
So there is a huge effort that needs to be done there for the private sector to truly develop, and there's a lot of work still to be done. And, of course, I mean, the Iraqi government has a lot on its plate. It's still in a building capacity even inside the government having to invest in basic infrastructure, electricity, roads, health, education. So the agenda is enormous. So it's not easy.
MR. KARASAPAN: Thank you. Thank you very much.
I'll turn it over now to our Finance and Private Sector Development Director, Loic Chiquier, for a few minutes and then we will conclude with our Country Director, Mr. Hedi Larbi.
MR. CHIQUIER: Don't worry. I will not take a few minutes. One is enough, I think, not to repeat what have been already said or comments made by the team and the panelists.
Just two remarks briefly.
Number one now is we have to take into account the time of these projects, on these projects. It's really remarkable to have built a consensus with the different authorities and the different donors about this kind of not quite fair reflection of the situation. Some of these messages are strong messages.
It was remarkable to have built rather recently. The Istanbul meeting where this was presented and discussed in depth took place only a few days or few weeks ago. So this is for us a starting point and in completion phase and we're moving now to the phase of implementation. So let's keep in mind this consensus happened only very, very recently.
On the Minister this morning in the more global meeting, with the assistance of Sahar to pursue the same way of proceeding with other sectors. So he considers this as a pilot interesting to move forward to other sectors.
And the second thing is we have to look at the last slides. I agree with all the panelists' comments, we have eight major recommendations. Some of them we all agree will take time, because we're starting on building capacity. We spoke about Central Bank, but the insurance is even worse probably.
We'll take yours in the best case scenario. But I join the comment of Sahar, the TTL, that some other measures, it's not so much a matter of time, it's a matter of political will. It's a blank field starting with the private banks.
Adoption of the permanent securities law, it's not really so much a technical problem than a matter of a decision at the highest level and political will. So we hope in this scope of recommendation that some decision really be taken now and decision taken relatively fast. And we're giving a very important demonstration effect to the rest of the reforms.
MR. KARASAPAN: Thank you, Loic. Thank you.
Monsieur Larbi?
MR. LARBI: Thank you very much, Omer, and I would like for us, in abstentia, to thank their Excellencies, both the Governor of the Central Bank, Mr. Shabibi, and His Excellency, Mr. al-Issawi, the Minister of Finance who actually led this work from the very beginning, of course, and in cooperation with the World Bank team which was very heavy-handedly led by our colleague, Sahar.
But I would like also to thank you all because I think you probably have so many other things to do at the annual meeting, but the simple fact that you came here shows how much interest, not only to this work, but for me it's the interest in Iraq, which is even more important.
And finally, I would like to thank the team who organized this because, frankly, finding your spot at the annual meetings and finding the room, finding the logistics probably was certainly very, very challenging and I would like to thank the team, Sahar and Omer and Dale and the whole--maybe probably at least 10 or 15 people. Sorry?
PARTICIPANT: [Off microphone.]

MR. LARBI: And whoever participated, thank you very much.
Now, I hope that you are not expecting me to make a summary of whatever is in that report or of the debate, but I would like to leave you with a couple of thoughts on Iraq and this work and how we look at this work actually in terms of perspective.
One, we hear noise that Iraq is a fragile country. In my view, it is not a fragile country, it is a country in a transition, politically and economically. Politically, from that kind of dictatorship that we all know, to a democratic system that is being actually formed or shaped, and most recently, I see it even more shaped by the Arab Spring, and that is fundamental.
So the democratic process in Iraq is ongoing, but probably will take a little bit of different turns, and that's where the whole political will, whether we will build or the right governance where accountability, responsibility, and actually in a way accountability toward the people. Are we going to deliver services and are we going to deliver--and live up to the expectation of the people.
In transition economically, because this is a country which has been, for the last at least, let's say, 50 years, under a state-owner ran economy, how can you transit actually this economy to some sort of market-led type of economy. I hope it will not be a market--because in Iraq there are a number--I see the room for the government and if the government plays, there's a huge development and it has to play its role.
So that the transition is not easy at all when you have actually 15 years, when you spent 15 years of war, sanctions, and so on and so forth. We have to bear in mind what is Iraq and the challenges that Iraq is actually facing. So it is easy to say this is missing, the government denied this, they institution, et cetera, but this is Iraq and this is the exceptional innovation.
Now, how we see it in the perspective actually of the future, Iraq is a blessed country. I will tell you why it is blessed and it will succeed. One, this is the second, after Egypt, largest demographic country in the region. And therefore, its economy has no, in no way, in the future to look like any Gulf country.
It has to look like a well-developed and diversified economy because we have to provide the jobs for million and million of people because they have to provide services which the small Gulf countries can actually in a way subsidize that and they bring labor from other places.
Iraq cannot afford it if Iraq has to maintain some political stability and, hence, the need for diversification and so on and so forth, and I will come to this. So this is a big country in the region. It is not a small country and it has to be taken as it is.
The second why it's blessed, this is the second or maybe the third oil reserves and gas reserves which we have not yet put our hands on in the region--in the world, sorry. So this is a wealthy country. It is very, very important and hopefully those resources will be deployed in a very optimum way so that actually they develop their country and they use these resources appropriately.
Third, this is the only country in the world that has oil and gas. Big deal. And second, water. This is the only place in the Middle East after Lebanon where you have oil--sorry--water. And water, unfortunately, the day that Iraq will receive its fair share of water, everybody knows what I'm saying, then you will see that this country, its agriculture will thrive and will actually resume its export history in terms of foods, et cetera, et cetera. Today it's a net importer, and I'm sure that it will soon become a net exporter.
Now, it is also the first and unique country in the region that has some great actual potential for economic development. It is the next lion or tiger in the region, definitely before Saudi Arabia or any other country because why? They have all these endowments, but Iraq has the history for human capital.
Most of the writers, most of the philosophers, most of the scientists of the Arab world came from Iraq. So do you think that Iraq will not have it soon? Probably once they stabilize, probably once they redeploy these resources properly, this civilization is there. It's rooted there.
So this is the country where the potential is absolutely fantastic, it's huge, so up to us how to help Iraq today to mobilize their resources properly, to have the right strategies, the right vision so that they use these resources to build a thriving and a prosper country in the region, which will have a major, major impact on the rest of the region.
It can be the locomotive. We thought that at one time that Algeria could be the locomotive. Now we are looking for another locomotive and probably Iraq can be that locomotive. Just look back to its civilization. Let's look back to its history. And just the last few years, I started doing that. There is a wealth for human capital out there.
Now, what now Iraq has to do are three things, at least in my view. One is really to rebuild its social and economic infrastructure. It has been destroyed. It has been lagging behind for so many years, no help in this rehabilitation, and no actually additional investment for years. So rebuilding the social and economic infrastructure is fundamental.

And the second is really to rebuild, to re-establish, to restore the institutional, the institutions, the government institutions. This is what you are talking about, the capacity, the capacity is not there. But this is just the beginning. Institutions are fundamental for Iraq.
And third is really to work hard to stabilize its nascent political and democratic system. This is fundamental. Political stability and consolidation of its democracy are absolutely fundamental for Iraq to move forward on its economic development.
So it is under that actually pillar of institution and development of Iraq that this work has been designed, has been carried out, and has been achieved. So it is fundamental to see where we are when we have done this work.
Now, while I see that this work is unique based on what we have been doing in the country and in a number of sectors, this is particularly unique and this is what I wanted to leave you with a last thought.
One, it has been led in cooperation with Iraq from the very beginning. I don't recall one single sector, maybe the education started learning from the financial, where actually the Iraqis are in the driving seat. That's fundamental and I think we have to move forward to the future.
The second thing is the strong leadership and political engagement of both the Central Bank and the Minister of Finance, and here I want to highlight one thing.
I'm working in five countries. It is very hard to bring to the same table the Central Bank and the Minister of Finance and to get them agree to something.
Not only they agreed on how to lead the work, how to supervise it, but they sit with us, as you rightly mentioned, three days to come up with an action plan on which they agreed, both, and I signed it off. So, fundamental cooperation bringing probably the governing power playing a role in it.
Third is we don't have a strategy and this is exactly what we like. We have an action plan with the timing, with the possibility, and what needs to be done. This is the first, and I think in that mode, that we have to look at it as a model that we probably, hopefully, can replicate somewhere else.
But the most important thing, as I heard you all, is that action plan, embedded in that action plan, a capacity development of the financial institutions, including the Central Bank by the way manage their funds, but other, non-related--sorry--related financial institutions in terms of human capital, in terms of training, in terms of management system, capacity, financial system.
It is fundamental because I recall in the discussion, you said yes, the capacity is very low and anything that you want to implement in Iraq, we should first and foremost start by building the capacity. So this is a model that we really need to replicate in anything that we should do and we should help Iraq as the next tiger of the region. Thank you very much.
MR. KARASAPAN: Ladies and gentlemen, before going, we should also thank our translators who unable to do have been working the whole time.
MR. KARASAPAN: And also Halid Al-Awan, Sophie Cox and David Fann [ph]. Without them, none of this would have happened. And, of course, the MENA EXT team.
MR. KARASAPAN: And Nalia, yes.
PARTICIPANT: [Off microphone.]
MR. KARASAPAN: Next time around we will have everybody here.
Thank you very much.
[Whereupon, at 3 p.m., the seminar concluded.]

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CBI efforts to drop zeros not effected by criticism

CBI: Delete the zeros based

Posted 21/09/2011 08:55 AM

BAGHDAD – Babinaoz: Central Bank of Iraq continued the project of deleting three zeros from the Currency against the backdrop of the criticism faced by the officials, adding that These criticisms do not affect the conduct of the monetary reform.

The deputy governor of Central Bank of the appearance of Mohammed Saleh, a reporter for the Agency (news) Tuesday: The project to delete the three zeroes from the currency was not affected by any existing Faced criticism, noting that a national project must be implemented, and continued: Much of the world has gone through this experience and successfully applied

And exceeded all the conflicts and the decline in economic reality to them. He said Mohammed Saleh: that the project will be studied in more depth and Etbiana and explained to the public and it is not a project simultaneously, “but long-term needs to long to apply,” likely that they will be applied more than a year from now.



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Prime Central Bank policies are wrong and last longer "cheap talk" and guarded

Author: HM
Editor: MN | BK
Saturday 17 September 2011 14: 49 GMT
ATM mobile Iraqi in Baghdad

Sumerian news/Baghdad

The Prime Minister said Saturday that the monetary policy of Central Bank of Iraq to address economic conditions "wrong" because they should be adapted to other policies and development programmes, while the last count on some charges "failure" to address monetary policy in the country, "" cheap talk, showing the Bank's readiness to manage the country's economic development if they failed to other institutions.

He said Prime Minister Counsellor for Economic Affairs, Abdel Hussein Al-Anbuge, in an interview for "Sumerian news, on the sidelines of a seminar hosted by the Institute of economic reform, Saturday, at the Sheraton downtown Baghdad," the Central Bank used in the process of the reform policy of deflationary Iraqi currency depend on monetary reform without ".

Al-anbaki said that "the Central Bank should not deal with inflation alone to ensure the stability of the Iraqi currency, but that means tackling the recession and unemployment in Iraq because it would contribute to the development of the country economically."

"The Central Bank had not coordinated with other economic policy system in the country to address the situation", stating that "there is a mistaken understanding of the topic of independence by the Bank."

"Independence does not mean never be decisions taken by the Bank away from the interests of the economy, which should be in", "monetary policy should be adapted to other economic policies."

The Deputy Governor said the Central Bank of Iraq, the appearance of Mohamed Saleh, in an interview for "Sumerian news", "some claim on Central Bank policy fails to address the situation in Iraq, not only guarded and turn green with envy. success of the reform process of the Central Bank over the past years", describing it as "just talk is cheap", according to his opinion.

"The Central Bank exercises its coordination with fiscal policy and Government agencies to fully address the external indebtedness of Iraq accordingly arranged for signing agreements with the IMF," he said, adding that "what he was talking about some of the Central Bank's isolation and spacing on other State institutions, the word void guide everyone still operates under the umbrella of the International Monetary Fund to address the issue of indebtedness, loans obtained by Iraq."

And the World Bank had demanded Iraq several economic reforms, including the lifting of government subsidies on petroleum products and ration for abolition of foreign debt, estimated at more than $ 120 billion.

Saleh said that "the Central Bank achieved its objectives through sheet and build large reserves supported Iraqi dinar and created a stable", pointing out that the "Iraqi dinar exchange rate has stabilized, as well as low inflation to price level to one decimal.

"Development policy for Iraq was not the responsibility of the Central Bank of Iraq, as well as with entrepreneurship, because it is the responsibility of political finance", wondering "ability of fiscal policy in building production plants or power stations or hospitals."

Saleh said that "the Central Bank unable to manage the economic development of Iraq if unable to other institutions."

The Central Bank of Iraq has four branches in Basrah, Sulaymaniyah, Erbil, Mosul, founded as an independent bank, under a special law (the Central Bank of Iraq Act), promulgated on 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.

He accused the Central Bank of Iraq, in a statement issued Monday (12 September 2011), government bodies, "block" the idea of monetary reform in Iraq, and while he retains the legal right to defend its existence, those responsible for "endangering the financial interests of the country to danger."

This is not the first time attacked Prime Minister Counsellor for Economic Affairs, Abdel Hussein Al-Anbuge, Central Bank, as it was considered at the twenty-fifth from last August, the lifting of the Iraqi currency zeros is "biggest" corruption in Iraq if it was during this time, pointing out that they fall under the rubric of "tampering", warning of "maviat" preparing for counterfeiting trillions of Iraqi dinars in light of the upcoming changes to substitution.

While the Central Bank said in its statement dated 12 September, it had received an official letter from the Committee on Economic Affairs in the Cabinet during 2007 which calls the draft study of Iraqi currency system reform through restructuring and deleting three zeroes.

The Iraqi Central Bank Governor Sinan Al-Shabibi, confirmed during a meeting of independent bodies with Prime Minister Nouri al-Maliki, on 19 June 2011, ready to initialize all items to replace Iraqi currency.



17 September 2011


Iraq recovers $116 million from Saddam officialsAFP

BAGHDAD, Sep 17, 2011 (AFP) - Iraq has recovered $116 million from bank accounts in France belonging to an official from ex-dictator Saddam Hussein's regime, the country's anti-graft watchdog said in a statement seen on Saturday.

The Commission on Integrity said the funds comprised $106 million deposited in UBAF, a French-registered bank whose shareholders include 19 Arab banks and Credit Agricole, and the equivalent of $10 million in foreign currency deposited in several banks in France.

It said in the statement published on Thursday that the accounts had been registered "under one of the former regime members," but did not say which official specifically.

It said it had obtained the funds with the help of the US embassy in Baghdad.

 Sep 2011

Aswat Aliraq


CBI closes its Thursday session with selling US$194 million dollars

BAGHDAD: The Central Bank of Iraq (CBI) has closed its weekly auction sessions for the sale and purchase of foreign currencies on Thursday with selling 194 million US dollars, on an average rate of 1,170 dinars per dollar, the CBI's daily bulletin reported.

"The total demand on the US dollar on Thursday had reached 194 millions and 983,000 dollars, covered by the exchange rate of 1,170 dinars per dollar, including the Bank's interest rate of 13 dinars per dollar" the bulletin, copy of which landed in Aswat al-Iraq news noted

It pointed out that the Bank's foreign transfers had reached 190 millions and 803,000 dollars, on an average exchange rate of 1,183 Iraqi dinars per dollar, with an interest rate of 13 dinars per dollar.

The bulletin repeated its daily comment that none of the banks that attended the sessions, including the 23 banks that attended today's session, had offered any dollar for sale.

Restructuring of the Iraqi currency: the project to delete the three zeroes and the cost of cash transactions

Same article as below about time to delete the three zeros.


Wed, 15/09/2011
The appearance of Mohammed Qasim
Deputy Governor of the Central Bank of Iraq

In light of economic conditions and volatile financial pressure and monetary inflation that has befallen our country before, and led to negative effects on the regularity of the commercial market and the labor markets and production and living standards of citizens, it has generated distortions many structures, economic relations, among which was the Activity block cash many zeros of little value and way that is not commensurate with the future developments in the present and the future of the Iraqi economy, which requires a solution to these conditions and offal, and these solutions reform the management of currency cash through the structure and the deletion of zeros to control the flow and management of the cost of the cash block optimally.

The trading bloc cash exporting more than 30 trillion Iraqi dinars to the various groups and reflected by the number of securities traded $ 4 trillion paper money is the product of a long period of inflation and economic decline, rising, for example, the index of consumer prices Bassas 1993 from 100 to 200,000 in the midst of the year 2003, which means that the item that was sold for 100 dinars became sold for 200,000 dinars …


First Published: 2011-09-14

هل حان وقت حذف ثلاثة أصفار من العملة العراقية

Is it time (for) deleting three zeros from the Iraqi currency



مشروع هيكلة العملة العراقية يواجه تركة ثقيلة من التضخم النقدي الذي يحارب أي إصلاح اقتصادي محتمل.

Project restructuring the Iraqi currency is facing a heavy legacy of inflation, which is fighting any possible economic reform.


ميدل ايست أونلاين Middle East Online

بقلم: د. By: d. مظهر محمد صالح قاسم The appearance of Mohammed Qasim


في ظل الظروف الاقتصادية والمالية المتقلبة وضغوط التضخم النقدي التي حلت في بلادنا سابقا، وادت الى اثار سلبية على انتظام السوق التجارية واسواق العمل والانتاج ومستوى معيشة المواطن، فقد تولدت تشوهات كثيرة في البنى والعلاقات الاقتصادية والتي كان من بينها تواجد كتلة نقدية كثيرة الاصفار قليلة القيمة وعلى نحو لا يتناسب والتطورات المقبلة في حاضر ومستقبل الاقتصاد العراقي، مما يقتضي ايجاد حل لهذه الظروف ومخلفاتها، ومن هذه الحلول اصلاح نظام ادارة العملة النقدية من خلال هيكلتها وحذف الاصفار منها للسيطرة على تدفق وادارة كلفة الكتلة النقدية على نحو امثل.

In light of economic conditions and volatile financial pressure and monetary inflation that has befallen our country before, and led to negative effects on the regularity of the commercial market and the labor markets and production and living standards of citizens, it has generated distortions (of) many structures, economic relations, among which was the Activity block (addition to our) cash many zeros of little value and way that is not commensurate with the future developments in the present and the future of the Iraqi economy, which requires a solution to these conditions and offal (offenses), and these solutions reform the management of currency cash through the structure and the deletion of zeros to control the flow and management of the cost of the cash block optimally.


تداول كتلة نقدية مصدرة تربو على 30 ترليون دينار عراقي بمختلف الفئات والتي يعكسها عدد الاوراق المتداولة البالغة 4 ترليون ورقة نقدية هي نتاج مرحلة طويلة من التضخم والتدهور الاقتصادي، حيث ارتفع على سبيل المثال الرقم القياسي لاسعار المستهلك باساس 1993 من 100 الى 200000 في خضم العام 2003 مما يعني ان السلعة التي كانت تباع بـ100 دينار اصبحت تباع بـ 200000 دينار...

The trading bloc cash exporting more than 30 trillion Iraqi dinars to the various groups and reflected by the number of securities traded $ 4 trillion paper money is the product of a long period of inflation and economic decline, rising, for example, the index of consumer prices Bassas 1993 from 100 to 200,000 in the midst of the year 2003, which means that the item that was sold for 100 dinars became sold for 200,000 dinars ... 



And so on. 


وتحت هكذا ظرف وتدهور قيمة العملة ارتفعت فئة العملة الاكبر من 25 دينار الى 25000 دينار مما يعني ان التضخم هو الذي اضاف هذه الاصفار

Under such circumstances, the deterioration of the value of the coin currency rose greater than 25 dinars to 25,000 dinars, which means that inflation is added, these zeros


لا تتناسب فئات العملة الحالية مع الوضع الاقتصادي الراهن والمقبل.فعلى سبيل المثال وقبيل اندلاع الحرب العراقية الايرانية كانت فئة الـ25 دينارا تعادل 75 دولارا بالقوة الشرائية لذلك الوقت او ما يعادلها في الوقت الحاضر 300 الف دينار.

Categories do not fit with the current currency of the current economic situation and the next. For example, before the outbreak of the Iran-Iraq war was the category of 25 dinars equivalent to $ 75 purchasing power of the time or the equivalent in the present 300 thousand dinars.


لقد اضاف التضخم المالي في البلاد على مدى ثلاثة عقود من الزمن اصفارا الى العملة وعلى الرغم من ذلك لم ترفع تلك الاصفار من القدرة الشرائية لاكبر فئة من العملة وهي الـ 25 الف دينار والتي تساوي اليوم 21 دولارا.

I said inflation in the country over three decades of zeros to the currency, although this did not raise those zeros of the purchasing power of the largest category of the coin is 25 thousand dinars, which is equal to today's $ 21. 


ونحن بحاجة اليوم الى اعادة هيكلة العملة.

We need today to restructure the currency.


فالاصفار الكبيرة تعني كتلة نقدية كبيرة في التداول تبلغ اليوم قرابة 30 تريليون دينار مما تطلبه من تداول نقدي مباشر والى كلفة كبيرة في العد والفرز وما تستغرقه من وقت وخواص مكانية وامنية.

Valasfar mean large cluster of large cash in circulation today of about 30 trillion dinars, which requested the circulation of cash directly and significantly to the cost of sorting and counting and it takes time and spatial properties and security.


ففي نظام الاسعار، يعد السعر هو القيمة معبر عنها بالنقد وبالتالي فان هيكلالتكاليف والمدفوعات الاجرية والرواتب واقيام المعاملات أمست جميعها لا تتناسب مع حاجة البلاد الى نظام ادارة نقدية ينسجم وهيكلة القطاع الحقيقي والمستويات السعرية التي بلغها.

In the price system, is the price is expressed in exchange value and thus the structure of costs and payments of salaries and the Cubs and eventually become Akiem all transactions not commensurate with the needs of the country into a cash management system consistent with the restructuring of the real sector and price levels reached.


فالبلاد بحاجة الى نظام نقدي سهل التعامل ومن فئات صغيرة وكبيرة معبرة عن كلفة ذلك الهيكل الحقيقي.

The country needs a monetary system is easy to handle small groups and large reflect the real cost of that structure.


خصوصاً اذا ما علمنا ان التضخم يعني بنفسه ارتفاع اسعار النقود money price على السلع والخدمات (اي كم من النقود نحتاج لمبادلتها بحزمة معينة من السلع والخدمات.. فكلما تزداد كمية النقود المخصصة لمبادلتها على الحزمة نفسها معنى ذلك ان هناك تضخم او ارتفاع في اسعار النقود).علما ان قيمة النقود تتناسب عكسياً مع اسعار النقود، خصوصاً اذا ماعلمنا ان السعر هو قيمة السلع والخدمات معبر عنها بالنقد.

Especially if we know that inflation means self-rising prices of cash money price of goods and services (ie, how much money we need in exchange for package of goods and services .. the more increase the amount of money allocated in exchange for the package itself means that there is inflation or a rise in the price of money) . note that the value of money is inversely proportional with the price of money, especially if Maalmana that price is the value of goods and services expressed in cash.


ولما كانت النقود هي اي شيء يتفق عليه المجتمع ليصبح وسيط للتبادل ومخزن للقيمة ووحدة حســاب، فان النقود (القانونية) الصادرة عن السلطة النقدية بموجب القانون وذات قوة ابراء للذمم ويُنظر اليها بانها مؤسسة اجتماعية Social Institution تزداد كفاءة الاقتصاد وعملياته الاقتصادية في تحريك التبادل بكفاءة تلك المؤسسة الاجتماعية او النقود والعكس بالعكس.

Since the money is anything agreed upon the community to become a broker of exchange and store of value and unit of account, the money (legal) issued by the Monetary Authority under the law and with the power of discharge of the receivables and is seen as a social institution Social Institution increases the efficiency of the economy and economic ventures in moving the exchange efficiency of the institution social or money, and vice versa.


لقد ادى التضخم المستمر الى ارتفاع رقم العملة المتداولة من 23 مليار دينار في العام 1991 الى حوالي 30 ترليون دينار في الوقت الحاضر، وارتفاع اكبر فئة عملة من 25 دينار الى 25000 دينار بمرور الوقت.

Has led to high inflation continued currency of No. 23 billion dinars in 1991 to about 30 trillion dinars at the present time, the high currency the largest category of 25 dinars to 25,000 dinars over time.


وبهذا، رسم التضخم ارقاماً جديدة للعملة المتداولة باضافة ثلاثة اصفار مما زاد من مقدار العمليات النقدية الاسمية ورتب تكاليف انتاج كميات كبيرة منها رافقتها عمليات خزن وتوزيع وعـد وفـرز وتدقيق مرافقة لها وبمستويات مضاعفة، ساعدت على تعاظم المخاطر التشغيلية المصاحبة لها

Operational Risk.

In this, draw the inflation figures of new currency in circulation by adding three zeros, which increased the amount of cash operations in nominal and arranged the production costs of large quantities of them were accompanied by operations, storage, and distribution of promise, sort and check to accompany her and the levels increase, helped to increase the operational risks associated with Operational Risk.


وفي ظل الاستقرار السعري والتفاؤل بمستقبل العراق الانمائي فقـد بات من اللازم اجراء اصلاح جذري على نظام ادارة العملة وذلك باعادة هيكليتها بما يتناسب وهيكل الاسعار الجديد المختلف والمستقر ومستويات الاجور والرواتب التي اختلفت كثيرا عن السنوات الثلاثين الماضية، فضلا عن التعامل بكتلة نقدية كبيرة ضعيفة في مكوناتها بحيث باتت اكبر فئة عملة لاتساوي الا 21 دولار اميركي في الوقت الحاضر.

In the light of price stability and optimism in Iraq's future development, it became necessary to hold a radical overhaul of management system of currency and the re-structure commensurate with the structure of the new price is different, stable and levels of wages and salaries, which differed significantly from the last thirty years, as well as handling the mass of large cash weak components so that become the largest category of currency, but not worth $ 21 U.S. for the time being.


منوهين ان ارتفاع الناتج المحلي الاجمالي للعراق من 140 مليار دولار في نهاية العام 2010 الى اكثر من 300 مليار دولار في نهاية عام 2015 سيرفع الكتلة النقدية المصدرة من 30 ترليون دينار الى حوالي 70 ترليون دينار.

Noting that the increase in gross domestic product, Iraq's $ 140 billion at year-end 2010 to more than $ 300 billion at the end of 2015, will raise the monetary mass exported from the 30 trillion dinars to about 70 trillion dinars.


وان التركيب الضعيف في هيكل العملة كما ذكرنا آنفاً قـد اخذ يضيف كلفة تسمى كلفة المعاملات النقدية من حيث التداول بها بين الافراد والافراد المصارف وداخل الجهاز المصرفي.

And installation in the structure of the weak currency as mentioned above may take the added cost is called the cost of cash transactions in terms of traded between individuals and within individuals, banks and the banking system.


فالطلب على الدولار الاميركي (ولا سيما فئة الـ 100 دولار) أمسى حاجة ملحة لتسوية المعاملات النقدية في السوق المحلية خارج ارادة السياسة النقدية لكون تلك السوق تتطلع في معاملاتها الى فئات اكبر غير متوافرة حالياً ولكنها تتجسد بفئة العملة الاميركية الكبيرة لسهولة حملها وتداولها.

The demand for the U.S. dollar (in particular the category of $ 100) has become an urgent need for the settlement of cash transactions in the local market beyond the control of monetary policy to the fact that market is looking at the transactions into categories, the largest currently unavailable, but it reflected the category of U.S. currency large for easy carrying and handling.


لذا فأن النظام النقدي العراقي بحاجة الى اصلاح اداري ليكون هناك فئات نقدية عالية القوة الشرائية في التداول سهلة الحمل والحيازة بما يسهل عمليات التبادل النقدي لاغراض المعاملات والمتاجرة منوهين ان الاختلال في هيكل او تركيب الوحدات النقدية قد عمق من مشكلات "الدولرة" التي رتبت اثارا غير مرغوبة على فاعلية واداء السياسة النقدية.

Therefore, the monetary system of Iraq need to reform the administrative order to have a monetary of high purchasing power in the trading easy pregnancy and acquisitions in order to facilitate exchanges cash for the purposes of transactions and trading noting that the imbalance in the structure or installation of monetary units have the depth of the problems of "dollarization", which impacted undesirable on the effectiveness and performance of monetary policy.


ففي السويد على سبيل المثال، التي يتوافر فيها حالياً واحدة من افضل انظمة المدفوعات النقدية في العالم وعلى الرغم من ذلك، فان كلفة التداول النقدي من عـد وفرز ونقل وخزن للعملة تكلف الاقتصاد الوطني مانسبته 4% من الناتج المحلي الاجمالي للسويد.

In Sweden, for example, that where there is currently one of the best systems of cash payments in the world, however, the cost of trading cash counting, sorting, transport and storage of the coin cost the national economy gain of 4% of the GDP of Sweden.


فكيف نقارن ذلك في بلد مثل العراق يتولى ادارة هكذا مقادير نقدية هائلة ضعيفة التركيب، مما يضيف كلفة معاملات نقدية ربما تصل الى 8% او اكثر من الناتج المحلي الاجمالي، وهو عبء يتحمله الفرد في تعاملاته مما اخذ يقلل من كفاءة النقد كمؤسسة اجتماعية مؤازرة لمؤسسات الاقتصاد المختلفة بما فيها السوق والدليل على ذلك تنحصر المعاملات النقدية الكبيرة للدفع بالدولار الاميركي، مما يعني احلال عملة دولة اخرى في التداول لاسناد المعاملات النقدية بسبب هبوط كفاءة وتركيب الكتلة النقدية الحالية.

How can we compare this in a country like Iraq shall be managed so amounts of cash tremendous weak structure, which adds the cost of cash transactions may have up to 8% or more of the gross domestic product, a burden borne by the individual in his dealings, which took reduces the efficiency of the exchange as a social support for the institutions of the economy different, including the market as evidenced by the large cash transactions are limited to the payment in U.S. dollars, which means substituting other country's currency in circulation for the award of cash transactions because of falling efficiency and installation of the current monetary bloc.


ويثير تعدد الاصفار على فئات العملة مع انخفاض القوة الشرائية لها مصاعب جمة منها صعوبة التعبير عن القيمة النقدية فضلا عن مصاعب العمليات النقدية نفسها ومشكلات فنية في تسجيل البيانات الاحصائية والتسجيل في الدفاتر المحاسبية وتغيير انظمة الحاسبات ونظم التسويات فضلا عن اظهار الاسعار بارقام طويلة تصعب احياناً حتى العدادات او الاجهزة الرقمية من قراءة اصفارها في محطات الوقود او الاجهزة الرقمية الاخرى.

And raises the multiplicity of the zeros on the categories of currency with a lower purchasing power has enormous difficulties, including the difficulty to express the monetary value as well as the difficulties of monetary operations itself and the technical problems in the recording of statistical data and registration in the accounting books and changing the computer systems and settlement systems as well as show price figures for a long difficult sometimes even counters or digital device, read the digit at gas stations or other digital devices.


وعلى هذا الاساس، اصبحت حاجة لاصلاح نظام المدفوعات النقدي من خــلال المزايا الآتيـة:

On this basis, the need to reform the system of cash payments through the following advantages:





- على المستوى الافقي: حذف الاصفار الثلاثة -

At the horizontal level: delete the three zeroes


- تحويل 30 ترليون دينار الى 30 مليار دولار عن طريق حذف ثلاثة اصفار من العملة الحالية واستبدالها بعملة جديدة مما يسهل التعامل الحسابي مع ارقام هي اقل عددا على صعيد حسابات الموازنة الاتحادية، موازنات البنوك والشركات فضلا عن موازنة الاسرة النقدية (الافراد) دون ان يرتب اي تغيير او تبدل على الدخل او الثروة النقدية للاشخاص الطبيعية والمعنوية فضلا عن عدم تأثيره على التعاقدات والالتزامات بين الاشخاص الطبيعيين والمعنويين كافة. -

Transfer of 30 trillion dinars to $ 30 billion by deleting three zeros from the current currency and replace it with a new currency making it easier to handle arithmetic with numbers are less numerous on the level of the accounts of the federal budget, budgets of banks and companies as well as balancing family cash (individuals) without arranging any change or change of income or monetary wealth of the people, the natural and moral as well as the lack of impact on the contracts and obligations between natural persons and legal entities all.


وهو مايطلق عليه بتوليد دالة رياضية متجانسة من الدرجة الصفر

Homogenous Function of Degree Zero


، طالما ان كمية النقود الجديدة الاصغر رقما تغطي في التبادل الحزمة السلعية نفسها في النقود القديمة ذات الرقم الاكبر.

It generates a so-function sports homogeneous degree zero Homogenous Function of Degree Zero, as long as the amount of new money covers the smaller number in the package of commodity exchange in the same old money with the largest number.





- على المستوى العمودي: اعادة هيكلة العملة وتركيبها -

On the vertical plane, the restructuring of the currency and installed


- لما كانت الفئة الكبيرة البالغة 25000 دينار تشكل لوحدها ( ثلثي كمية الاوراق المتداولة ) فان اصدار فئات اكبر يعني اختزال الاربعة ترليون ورقة نقدية المتداولة حاليا وتحويلها الى عدد يساوي ( 2.8 ) مليار ورقة نقدية. -

As the large category of $ 25,000 a JD alone (two thirds of the amount of securities traded), the biggest issue categories mean reduction of four trillion banknote currently in circulation and converted to a number equal to (2.8) billion banknotes.


اذ ستختزل الفئات الكبيرة من العملة قرابة 90% من اجمالي الفئات المصدرة الى التداول.

Stakhtzel as large groups of the coin about 90% of the total categories exported to the circulation.


استنادا الى ما تقدم، فان كلفة المعاملات النقدية بين الافراد والمصارف وبين الافراد انفسهم طبيعية ام معنوية ستنخفض حتما من حيث تكاليف العد والفرز والتدقيق.واذا ماعلمنا، ان الاوراق النقدية المتداولة تتآكل بالمتوسط خلال مدة خمس سنوات مما يعني استبدال كتلة هائلة ضعيفة التركيب وترتب تكاليف طباعية ذات مواصفات امنية عالية وهو عبء آخر تتحملة سلطة الاصدار النقدي وهو من مخلفات نظام ادارة نقدية ولدها التدهور الاقتصادي السابق واصبحت لاتتناسب والاستقرار والتقدم الاقتصادي المنشود.

Based on the foregoing, the cost of cash transactions between individuals, banks, and between individuals themselves, natural or moral will fall inevitably in terms of the cost of counting and checking. If Maalmana, the banknotes traded eroded the average over a period of five years, which means the replacement of enormous mass weak structure and the consequent costs of printing specifications, a high-security burden is borne by the authority of another version of the remnants of a cash management system cash generated by the economic downturn and the former has become not fit, stability and economic progress desired.


ختاما، ان اسباب تغيير العملة الراهنة يعبر عن ثمرة الاستقرار الاقتصادي ونجاح سياسات البنك المركزي العراقي في الحفاظ على الاستقرار والمتمثلة باستقرار سعر صرف الدينار العراقي وهبوط التضخم الى مرتبة عشرية واحدة وبناء احتياطيات اجنبية مؤازرة للدينار العراقي بمستويات لم يسبق تحقيقها خلال الثلاثين عام الماضية والتي تعد غطاء العملة العراقية.

Finally, that the reasons for changing the currency of the current reflects the fruit of economic stability and success of the policies of the Iraqi Central Bank in maintaining stability and of stability of the Iraqi dinar exchange rate and lower inflation to the level of one decimal place and build reserves of foreign support of the Iraqi dinar at levels not previously achieved during the last thirty years ago, which is a cover Iraqi currency.


اضافة الى تحسين نظام المدفوعات النقدية وجعله يغادر التصاقه وتركيبه الراهنين بالماضي واختلالاته الاقتصادية واعادة بنـاءه على مستقبل التطور الاقتصادي ومعطياته الحقيقية والاسمية.

In addition to improving the system of cash payments and leave him stuck to the past and the actual composition and its imbalances and economic re-construction on the future of economic development and its data in real and nominal.


لذا، فقد أعد البنك المركزي العراقي ستراتيجية بعيدة الاجل قابلة للتطبيق مستقبلا عند توافر الفرصة الملائمة وبصورة تدريجية وفق تعليمات واضحة ولوائح ارشادية توفر الحماية للحقوق والمصالح المختلفة بما يتلاءم ومرحلة الازدهار المقبلة والنمو الاقتصادي المتوقع حيث سيزداد متوسط دخل الفرد خلال السنوات القادمة الى أكثر من مرة وسيخطو الاقتصاد خطوات نحو التقدم مما يتطلب اصلاحا لمخلفات مراحل التضخم وربما يتطلب بعض التشريعات بهذا الشأن.

So, has prepared the Iraqi Central Bank strategic long-term viable future, when the availability of the appropriate opportunity and gradually according to clear instructions and regulations, guidelines provide protection of the rights and interests in line and the stage of prosperity ahead, economic growth is expected in terms will increase the average per capita income in the coming years to more than once and will step steps towards economic progress, which requires a reform of the waste stages of inflation and may require some legislation in this regard.


د. D. مظهر محمد صالح قاسم The appearance of Mohammed Qasim


نائب محافظ البنك المركزي العراقي Deputy Governor of the Central Bank of Iraq

Central Bank of Iraq to retract from the process of deletion of zeros
2011-09-13 01:18:00 2011-09-13 01:18:00

خاص _بغداد بوست _ Special Baghdad Post

أكد البنك المركزي العراقي انه لاتراجع عن مشروع حذف الاصفار مؤكداً وجود قوى سياسية لتعطيل مشروع حذف الاصفار . The Central Bank of Iraq was to retract the deletion of zeros from the draft confirming the presence of political forces to disrupt the project to delete the zeros.

وقال نائب محافظ البنك المركزي مظهر محمد صالح لـ"بغداد بوست " أن " البنك المركزي عازم على إعادة هيكلة العملة من خلال حذف الاصفار بعد ان يشرع البرلمان العراقي قانوناً مناسباً وتعطيل مشروع قوى سياسية تحاول تخريب الاقتصاد العراقي ". The deputy governor of the Central Bank of the appearance of Mohammed's "Baghdad Post" that "the central bank is determined to restructure the currency through the deletion of zeros after the Iraqi parliament is prescribed legally appropriate and disable the draft political forces trying to sabotage the Iraqi economy."

وأضاف إن" تأخير مشروع حذف الاصفار الثلاثة من العملة العراقية خاطئه جدا ويجب الاسراع بعملية حذف الاصفار لنهوض بالواقع الاقتصادي العراقي" . He added that the "delay the project to delete the three zeroes from the Iraqi currency is very wrong and should speed up the process of deletion of zeros to the advancement of the economic reality of Iraq."

وتابعَ إنهُ" أذا تعدل الاقتصاد العراقي بعد 10 سنوات فهذا لايأتي بصالح الشعب ويبعث صورة اليأس على كل نفس عراقي". He continued that "If the Iraqi economy adjusted after 10 years, it does not come to the welfare of the people and send a picture of despair all the same to the Iraqis." . .

  وكان المستشار الاقتصادي للحكومة العراقية عبد الحسين العنبكي قد كشف He was economic adviser to the Iraqi government Abdul Hussein Al-Anbuge has revealed   لوسائل الاعلام محلية ، الجمعة عن وجود مافيات تحاول خرق العملة المحلية To local media on Friday about the existence of mafias are trying to breach the local currency اثناء مشروع إعادة هيكلتها الذي يقوم به البنك المركزي العراقي During the project restructuring carried out by the Central Bank of Iraq  

CBI reiterates the need to delete the zeros and the issuance of new currency in three languages

Posted: September 5, 2011 by THE CURRENCY NEWSHOUND      

Friday 09/02/2011 14:18

New Central Bank of Iraq, Friday, reiterated the need to delete the zeros and the issuance of new currency, adding that there is a need to bridge the categories of large cash transactions in addition to the large presence of small coins, while noting that the new currency will be in three languages.

The deputy governor of Central Bank of Iraq the appearance of Mohammed in an interview for “Alsumaria News,” The installation of the currency in which defect, as the largest category of the Iraqi currency is now worth $ 21, and therefore resort traders and senior traders to dealing in cash to the United States and the hundred-dollar specifically , for example if I gave them $ 10 they do not accept it.

Saleh added that the new currency will carry the three languages ​​are Arabic, Kurdish and English, noting that the Swiss currency with four languages, stressing that the currency symbols will be a national legacy of Iraqi civilization, which extends eight thousand years, and therefore reflect the Iraqi nation a hundred percent.


New Iraqi Dinar – “Corruption and Money Laundering”

Posted on 04 September 2011. 

New Iraqi Dinar – “Corruption and Money Laundering”

According to a report from Aswat al-Iraq, an economic advisor to Iraq’s Prime Minister, Nouri al-Maliki, has described the Central Bank of Iraq (CBI)’s plan to redenominate the Iraqi currency as “the worst corruption and money-laundering process in the history of Iraq.”

“The CBI must understand that it is playing with fire and undermining the course of the consumers, producers and the economic changes in the country,” Abdul-Hussein al-Anbaky told Aswat al-Iraq news agency on Sunday, adding that the move was taking place “at a time when the Iraqi economy was suffering from instability and chaos.”

Anbaky’s statement was issued the day after the Central Bank announced its intention to drop the zeros from the Iraqi currency and to change it, in an attempt to ease inflation, and to encourage citizens to use their own currency instead of the US dollar.

“The changing of the currency shall be the greatest corruption process in the history of Iraq, because the currency counterfeiting Mafias are ready to change the counterfeited currency with the new currency,” Anbaky said, adding that “the money-laundering merchants would come with trillions of dinars to change them.”

Anbaky, at his position as the government’s economic advisor, had called on the Economic Committee of the Council of Ministers “not to respond to the draft-law for changing the Iraqi currency, raised by the CBI to the Council for ratification.”

AlsumariaTV reported on Saturday that the CBI had sent a draft resolution regarding the redenomination to the Iraqi cabinet. The report said the new notes will be printed in three languages, including Kurdish, and the changes would also involve the introduction of coins.

The CBI reportedly emphasised that the changes will not affect the buying capacity of the Iraqi dinar.

CBI: trillions of Iraqi currency comparable to the U.S. .

Monday, 05 September

Twilight News / The Central Bank, on Monday, he sought to reform the Iraqi currency, which suffer from inflation in the monetary mass, indicating that the size of several trillion and reached a size comparable to U.S. monetary bloc.

The deputy governor of the Central Bank of the appearance of Mohammed in an interview with ” Twilight News “that” the Iraqi currency to suffer from inflation of several trillions and trillions of comparable size in the U.S. monetary bloc. “

It is said that the Iraqi Central Bank revealed, earlier, that the new Iraqi currency will increase [decrease] by three zeros, indicating that he had conducted an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency.

Saleh explained that “the mass of U.S. monetary inflation because of the strength of the U.S. economy, but inflation, the Iraqi currency was due to the deterioration of the Iraqi economy.”

Economists and shows that the process of deleting three zeros from the Iraqi currency will lead to increased value and to increase the purchasing power of citizens, pointing to the need to follow the policies of peaceful citizens and to persuade them to get used for a period not exceeding two years.

The Deputy Governor of the Central Bank, “the Bank seeks to reform the Iraqi currency by deleting the zeros and the issuance of coins of small and large are not exposed to damage quickly.”

The Central Bank of Iraq began to discuss amending the dinar categories last year, and is still a large part of the payments are in cash because of the evolution of the banking system.

And between the head of the Iraqi Securities Commission, earlier, that the deletion of zeros from the Iraqi currency will not affect trading in the Iraqi Stock Exchange and its shares

Read more: http://dinarvets.com/forums/index.php?/topic/82500-central-bank-trillions-of-iraqi-currency-comparable-to-the-us/#ixzz1X5XAxM00


Al Sumaria TV: Iraq Central Bank to delete zeros soon

Saturday, September 03, 2011 12:21 GMT

The denomination of the Iraqi currency reached its final stages as the study and draft resolution reached the Cabinet after being sent by 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 banknotes the Central Bank will recourse to international institutions to print them.

The new currency will be printed in 3 languages including the Kurdish and it will include pictures that represent the Iraqi civilization.

Since a while Central Bank tries to pass this project.

The Central Bank stresses that this change will not affect the buying capacity of the Iraqi dinar and its influence is only restricted on the organizational things and it aims to decrease the huge volume of currencies in Iraq.


Talk about Propaganda, this is the ultimate in it! LOL!

Iraq doesn't even have a plan for all of the currency outside the country while many other central banks, big companies and regular consumers like you and I sit on top of billions of Dinars, Iraq is trying to get their citizens to trade down to the new currency.

Here's what I see as a quandary. Theres no way all of the Dinars out side Iraq will get exchanged at a rate equal to what they were bought at the 1170 per 1 US dollar. And Iraq can't go two years without a revaluation, their country would be in turmoil.

While inside the country, if they tell their citizens that a 25000 dinar bill is the same as the new 25 dollar Dinar and all of the Iraqi's trade theirs in and then Iraq revalues the currency to the old eighties rate of 3.22 or more which they claimed they want to do, there's going to be rioting in the streets.

Iraq is a corrupt nation, no two ways about it. They say they want to please the citizenry and give their Dinar more purchasing power, but at the same time, they are conning them.
Iraq is hurting economically and they want to revalue their Dinar very bad so the world will have new faith in their currency and their assets.

They are also under a mandate by the W.T.O. to have a tradable currency in a market based economy.
So they are pumping out all kinds of propaganda trying to fool many people just before they revalue. They need this revaluation more than anything else to jump start their economy and to be accepted into the World Trade Organization.

Iraqi Association of Private Banks: Removing zeros is only a modification, not a revaluation

Bank excludes revaluation by deleting three zeros

On: Saturday 03/09/2011 10:18

Baghdad (news) .. The director of the Association of private banks Abdul Aziz Hassoun that the project to delete the three zeroes from the Iraqi currency is simply a modification of the categories of cash and is not intended to raise the Iraqi dinar exchange rate against the dollar or other currencies, pointing out that the strengthening of the currency comes through security and stability and increasing domestic production in the country.

He said Hassoun, a reporter for the Agency (news) on Saturday: the project to delete the three zeroes from the Iraqi currency intended to modify the denominations do not is not to raise the price of the Iraqi dinar exchange and support, and continued as long as there is no local production is real and security stability in the country it is difficult to raise the price of exchange of the dinar.

Hassoun and expressed concern that the project is accompanied by the deletion of zeros of some negative aspects such as what happened in the year (2004), the project likely to affect prices in the market, stressing at the same time that its impact will be in my time on the consumer until the stability in the circulation.

The Director of the Association of private banks: There was a proposal could be altered some of the large groups of the coin instead of the currency completely, but there are different points of view other that there is significant inflation in the amount of currency in circulation and are aiming to reduce to the extent reasonably possible, and called to have a production of a national real and the Iraqi dinar in order to be an international currency are treated abroad.

The Central Bank of Iraq has confirmed that the new currency will be printed in three languages ​​Arabic, Kurdish, English for the application referred to by the Iraqi constitution, noting that the old currency will be dispensed gradually.

The Advisor to the Central Bank of the appearance of Mohammed Saleh said earlier in (the news): The new currency will work in three languages: Arabic, Kurdish and English, the real opportunity to apply what was referring to the Iraqi constitution, stressing that the aunt of old has not been canceled but will be dispensed gradually and work together with the new currency.

Saleh pointed out that there is no difference and disagreement about the rights of the exchange rate and purchase, noting that when we want to buy the rotor b (1200), we will buy dinars Bdenaro (200) fils.

He added that the project to delete the zeros approved by the Department of the Central Bank has been forwarded to the Council of Ministers and House of Representatives, explaining the government’s approval if it will work by hand.

The central bank adviser that the purpose of the project to delete the zeros of the three is to reduce the large numbers that we are exposed by Bataamlat that reach trillions, and shorten the blocks of cash without disparage and wealth or income, they are all be fixed.

And that the project will be working gradually, and differs from the previous project, which began at the end of the year (2003) and continuing until the end (2004), is most probable that this project will take Nada time broader and continue to the year and thus we note that the old currency will gradually disappear.

The project to delete the zeros of the three is the restructuring of the Iraqi currency and start a new currency system is the replacement of categories (250.500) JD currencies metal to facilitate a lot of things.


Alternate translation of same article”

Price excludes Bank dinar by deleting three zeros
Date: Saturday, 03-09-11 10: 18 am
Baghdad (newsletter).The Director of the Association of private banks, said Abdel Aziz Hasson on draft deleted three zeros Iraqi currency is simply modified cash categories is not intended to raise the price of the Iraqi dinar against the dollar or other currencies, adding that strengthening currency comes through security stability and increase local production in the country.
Hasson said reporter (News Agency KCNA) Saturday: draft deleted three zeros from the Iraqi currency meant to modify categories only cash and not to raise the price of Iraqi dinar and support, and continued as long as there is no local production and security in real stability of the country it is difficult to raise the exchange rate of the dinar.
He expressed concern that the accompanying Hassoun draft deleted some negatives as zeros in (2004), likely to affect the project at market prices, but added that its impact is my time to the consumer until stability in circulation.
The Director of the Association of private banks: there was a proposal that could be altered some large groups of currency currency allowance, but there are different views on the existence of significant inflation in the amount of currency in circulation and aim to reduce it to a reasonable extent, calling for there to be a national production and real Iraqi dinar to be international currency traded abroad.
The Central Bank of Iraq had stressed that the new currency will be printed in three languages, Arabic, Kurdish, English application indicated the Iraqi Constitution, pointing out that the old currency gradually will be dispensed with.
Central Bank Adviser was the appearance of Mohamed Saleh said earlier (News): the new currency will work in three languages are Arabic and the Kurdish and English this is an opportunity for real application indicated by the Iraqi Constitution, stressing that the old aunt was not abolished but gradually will be dispensed with and work together with the new currency.
Saleh said there was no difference and difference of rights over the exchange rate and purchase, stating that when we want to buy swivel b (1200) JD we will buy the dinaro 200 Fils.
He said the draft approved by deleted zeros Central Bank management and forwarded to the Council of Ministers and deputies, saying if the Government agrees to work on it directly.
Central Bank Adviser stated that the purpose of the draft deleted three zeros is reducing the large numbers that are exposed by the ataamlat by the trillions, and monetary blocs shortcut without shortcut income rights and wealth, they all be fixed.
The project will be introduced gradually and differs from the previous project, which began at the end of the year (2003) and continued until the end (2004), the more likely that this project will take a broader and continue Nada years therefore note that the old currency will gradually disappear.
Project deleted three zeros is restructuring Iraqi currency and launching a new currency system been replaced categories (250, 500) dinars coins to facilitate a lot of things.

CBI says value of dinar not affected by high inflation; World Bank calls on Iraq to take action

September 2, 2011  

Komaki haiti, Para, MoneyCBI confirms the value of the dinar is not affected by high inflation rates in the country
02/09/2011 11:10

Baghdad, September 2 / September (Rn) – The Central Bank of Iraq, Friday, on the value of the dinar is not affected by high inflation rates in the country, denying the existence of any economic risks on the country it came from.

The World Bank called Bank of Iraq, the Ministry of Finance, on Thursday to take action to prevent increasing the persistence of high monthly inflation.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that “the concerns of the international financial institutions of high rates of inflation, monthly and annual amounts which are under the control of the Central Bank of Iraq and any threat does not cause deterioration of the value of the Iraqi dinar.”

Iraq has seen a rise in inflation for the month of July in 2011 compared to the same month of 2010 by 7.1% after it was last year’s 2.4% due to higher prices, housing rent allowances.

He pointed out that “the crisis of the dollar and the rising prices of rents and higher wages for electricity and the main reasons behind the persistence of high inflation in the country.”

He explained that “the Central Bank of successful political support in reducing the rate of inflation and reduction in line with demand and supply prices on the Iraq dinar and increase the monetary value.”

Defines inflation as excessive in the general level of prices and rising incomes in cash or a component of cash income such as wages or profits as well as high costs and over-the creation of cash balances. And worried about a number of economists from the continuing high rates of inflation in the country in the absence of mechanisms to reduce height of the government institutions involved in the management of the economy in the country.

Central Bank underlines the need to delete the zeros and the issuance of new currency in three languages
02/09/2011م - 4:15 م | عدد القراء: 188 02/09/2011 PM - 4:15 PM | Hits: 188

جدد البنك المركزي العراقي، الجمعة، تأكيده على ضرورة حذف الأصفار واصدار عملة جديدة، معتبرا أن هناك حاجة الى فئات نقدية كبيرة لسد التعاملات الكبيرة اضافة الى وجود عملات صغيرة، فيما اشار الى أن العملة الجديدة ستكون بثلاث لغات. New Central Bank of Iraq, Friday, reiterated the need to delete the zeros and the issuance of new currency, adding that there is a need to bridge the categories of large cash transactions in addition to the large presence of small coins, while noting that the new currency will be in three languages.

وقال نائب محافظ البنك المركزي العراقي مظهر محمد صالح في حديث لـ"السومرية نيوز"، إن "تركيب العملة فيها خلل، إذ أن اكبر فئة من العملة العراقية الان تساوي 21 دولارا، ولذلك يلجأ التجار وكبار المتعاملين الى التعامل بالأوراق النقدية للولايات المتحدة وفئة المائة دولار بالتحديد، وعلى سبيل المثال لو اعطيتهم فئة 10 دولارات فإنهم لا يقبلون بها". The deputy governor of Central Bank of Iraq the appearance of Mohammed in an interview for "Alsumaria News", "installation of the currency in which defect, as the largest category of the Iraqi currency is now worth $ 21, and therefore resort traders and senior traders to dealing in cash to the United States and the hundred-dollar Specifically, for example if I gave them $ 10 they do not accept it. "

واعتبر صالح أن "هذه المسألة إذا ما استمرت بهذا الشكل مع تطور الاقتصاد ونموه فستكون معوقا، وبالتالي يجب إعادة هيكلة العملة وحذف الأصفار في آن واحد". Saleh said that "this issue if it continues like this with the development of the economy and growth will be disabled, and therefore must restructure the currency and the deletion of zeros at the same time."

وأضاف صالح أن هناك "حاجة الى فئات صغيرة من العملة متمثلة بالنقود المعدنية للتعاملات الصغيرة، وفئات كبيرة لسد التعاملات النقدية الكبيرة التي يتم إعدادها في مؤسسات من الدرجة الأولى بالعالم وبمواصفات عالمية"، مشيرا الى "عدم توفر امكانية طبع العملة داخل العراق بعد أن رافقت هذه التجربة عدة مشاكل خلال تسعينيات القرن الماضي". Saleh added that there was "a need for small denominations of currency represented by coin of the transactions small and large groups to meet the trading large cash that is prepared in the first class institutions in the world and a world-class," pointing to "the lack of the possibility of printing the currency in Iraq after taking this experience several problems during the nineties of the last century. "

وسبق أن أقدم العراق على طبع عملته داخل البلاد اثر الحصار الاقتصادي الذي فرض عليه عقب احتلاله الكويت عام 1990، حيث شهدت السوق العراقية تضخما غير مسبوق، فضلا عن تزايد حالات تزوير العملة انذاك بسبب افتقارها الى المواصفات العالمية الرصينة في الطبع. Previously, the oldest of Iraq to print its currency within the country after the economic blockade imposed on it following the occupation of Kuwait in 1990, where the Iraqi market has seen unprecedented inflation, as well as the increasing cases of counterfeit currency at the time because of the lack of international standards in printing sober.

واشار صالح الى أن "هذه العملة الجديدة ستحمل ثلاث لغات هي العربية والكردية والانكليزية، ونحن نعرف أن العملة السويسرية تحمل اربع لغات"، مشددا على أن "رموز العملة ستكون وطنية من إرث الحضارة العراقية التي تمتد ثمانية الاف سنة، وبالتالي فهي تعبر عن الأمة العراقية مائة بالمائة". Salih noted that "this new currency will carry the three languages ​​are Arabic, Kurdish and English, and we know that the Swiss currency with four languages," stressing that "the currency symbols will be a national legacy of the Iraqi civilization, which extends eight thousand years, and therefore reflect the Iraqi nation One hundred percent. "

وسبق أن أعلن البنك المركزي العراقي في 23 حزيران الماضي عن استعداده لحذف الأصفار من العملة العراقية، وفيما أكد أن هذه الخطوة تعتبر من الوظائف الاستراتيجية للبنك، أشار إلى أن العملة الجديدة ستحوي على اللغة الكردية بالإضافة إلى اللغة العربية. Previously, the Iraqi Central Bank announced on 23 June 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.

يذكر أن مستشار رئيس الوزراء للشؤون الاقتصادية دعا في الـ25 من اب الحالي، البنك المركزي العراقي إلى إيقاف إجراءات تغيير العملة، محذرا من "مافيات عملة" تستعد لتزوير ترليونات الدنانير مستغلة تغيير العملة، فيما أكد أن الأمر سينتج عنه كتلة نقدية هائلة يصعب مواجهتها. The Advisor to the Prime Minister for Economic Affairs called on the 25 of a father present, the Iraqi Central Bank to stop the action to change the currency, warned of "mafias currency" is preparing to rig the trillions of dinars exploited to change the currency, as he emphasized that it will result in a mass of cash huge hard face.

يشار الى أن متخصصين عراقيين في مجال الاقتصاد قللوا من تأثير قيام البنك المركزي حذف أصفار من العملة على القوة الشرائية للدينار العراقي، كما تأمل الحكومة من وراء تلك الخطوة، كما يرى باحثون أن كلفة رفع الأصفار ستكون اكبر من منفعتها، باعتبار ان قوة العملة تقاس باستقرار صرفها الذي يرتكز على قوة القطاع الإنتاجي القادر على توفير السلع والخدمات. Referred to the specialists the Iraqis in the area of the economy have reduced 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 disbursement, which is based on the strength of the productive sector is capable of providing goods and services.

وكان محافظ البنك المركزي العراقي سنان الشبيبي أكد خلال اجتماع الهيئات المستقلة مع رئيس الوزراء نوري المالكي الذي عقد، في الـ19 من حزيران الجاري، استعداده لتهيئة كافة المستلزمات لاستبدال العملة العراقية. The Iraqi Central Bank Governor Sinan Shabibi said at a meeting of independent bodies with Prime Minister Nuri al-Maliki, who held, in the 19 of June, and, ready to create all the supplies to replace the Iraqi currency.

ويملك البنك المركزي العراقي أربعة فروع في البصرة والسليمانية وأربيل والموصل، حيث تأسس كبنك عراقي مستقل بموجب قانون البنك المركزي العراقي الصادر في السادس من آذار عام 2004، وهو المسؤول عن الحفاظ على استقرار الأسعار وتنفيذ السياسة النقدية بما فيها سياسات أسعار الصرف وإدارة الاحتياطات الأجنبية وإصدار وإدارة العملة، إضافة إلى تنظيم القطاع المصرفي. And have the Iraqi Central Bank has 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 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 and management currency, in addition to the organization of the banking sector.

New Iraqi Dinar to be Harder to Counterfeit
 August 31, 2011 

New Iraqi Dinar to be Harder to CounterfeitAccording to reports from Al-Sabaah, the Central Bank of Iraq is planning to make its new currency forgery-proof.

Central Bank Governor Sinan al-Shabibi claims that the new currency’s attributes will make it ‘difficult’ to falsify, and says that the project to delete the three zeros, if implemented [awaiting parliament approval], will enhance the value of the Iraqi dinar against other currencies.

The Central Bank and the Finance Committee in the House of Representatives agreed to hold further meetings to finalize discussions on the project.

(Source: Al-Sabaah)


Central Bank reveals details of Iraq’s new currency
August 30, 2011 

The central bank of Iraq, Tuesday, that the new Iraqi currency will increase by three zeros, indicating that he had conducted an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency.

The deputy governor of Central Bank of Iraq in favor of the appearance of Mohammed in an interview with “Twilight News” that “the central bank is determined to raise three zeroes from the currency of the new Iraqi and presented its project to the government and the House of Representatives, is awaiting the government’s decision and the Council of Representatives.”

Shows the economists, that the process of deleting three zeros from the Iraqi currency will raise its value, and to increase the purchasing power of citizens, pointing to the need to follow the policies of peaceful citizens and to persuade them to get used for a period not exceeding two years.

And the benefit of that “project raise three zeroes from the currency made by the government five years ago to the Central Bank, and has undergone during this period to an extensive study over the need to raise the value of the zeros to strengthen the Iraqi currency.”

He added that “the deletion of zeros to enhance the value of the Iraqi currency and reduce the cost of handling cash, currency, and its current estimated size of today Petrlionat dinars, which makes the process of dealing with critical high cost.”

The Central Bank of Iraq began to discuss amending the dinar categories last year. And is still a large part of the payments are in cash because of the evolution of the banking system.

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


Saleh: Political forces are trying to delay economic advancement and deletion of zeros; Any delay would be wrong
August 29, 2011 

CBI accused of sabotaging the political forces of the Iraqi economy
29/08/2011 13:53

Baghdad / Orr News
The Central Bank of Iraq and the existence of a hidden political forces did not identify to sabotage the economic reality and delay the project to delete the three zeroes.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh said that “political forces behind the sabotage and delay the advancement of the economic reality of Iraq and the project to delete the three zeroes.”

He added that the “delay the project to delete the three zeroes from the Iraqi currency is very wrong and should speed up the process to delete the zeros for the advancement of the economic reality of Iraq.”

He continued that “if the Iraqi economy was modified after 10 years, it does not come to the welfare of the people and send a picture of despair in the soul of every Iraqi. “

He was economic adviser to the Iraqi government Abdul Hussein Al-Anbuge has revealed to the media, local, of the existence of mafias are trying to breach the local currency during the project restructuring carried out by the CBI.

The main tasks of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies, and management of reserves of foreign currency, and the issuance of currency management, as well as to regulate the banking sector.

The Central Bank of Iraq on 22 June he had decided to restructure the local currency in order to the development of the payments system in the country.


28 Aug 2011 Aswat Aliraq

CBI sells 170 million dollars in its Sunday auction

BAGHDAD: The Central Bank of Iraq (CBI) has sold 170 million U.S. dollars in its auction for the sale and purchase of foreign currencies on Sunday, exceeding Saturday sales that reached 164 millions, its daily bulletin reported.

"The total size of the demand on the U.S. dollar had reached 170 millions and 202,000, covered by an average sale of 1,170 Iraqi dinars per dollar," the bulletin stressed. The CBI sales for Saturday had reached 164 millions and 686,000 U.S.

The CBI's sales were distributed on 14 millions and 350,000 U.S. dollars on its cash sales, on average rate of 1,183 dinars per dollar, including the Bank's interest of 13 dinars per dollar, the bulletin pointed out. "The CBI's foreign transfers for Sunday had reached 155 millions and 852,000 U.S. dollars, on average rate of 1,183 dinars per dollar as well, along with the Bank's interest of 13 dinars per dollar.

The bulletin repeated its daily comment that none of the banks that attended the auction, including the 25 banks that attended it on Sunday, had shared in offering any dollar for sale. The CBI holds 5 weekly sessions to sell and purchase foreign currencies, beginning on Sunday and ending on Thursday, charging 13 dinars per dollar, along with 13 dinars per dollar for its foreign transfers as well.
© Aswat Aliraq 2011

Maytham Laibi
سفينة المركزي وبحر السلطتين
Ship and the Sea of ​​the central authorities

يبدو ان الخطوات التي يتخذها البنك المركزي بصدد إصلاح نظام العملة بدأت تأخذ منحى جديا نحو التطبيق، خاصة ما يتعلق برفع الاصفار من العملة العراقية، او ما يعرف بالتبديل الاسمي للعملة القديمة (الحالية) وتغييرها بعملة جديدة (في المستقبل القريب). It seems that the steps taken by the Central Bank on the reform of the currency system began to take a serious turn towards the application, particularly with regard to lifting the zeros from the Iraqi currency, or what is known as the nominal switch of the old currency (current) and change a new currency (in the near future).

هذا ما يتأكد لي رويدا رويدا، وأنا أتابع هذا الملف منذ ان انطلق، وتأجيلاته المتعددة. This was confirmed to me slowly, and I follow this file since it was launched, and multiple Tagelath.آخر التطورات التي تعطي اشارات ان العد التنازلي للمشروع بدأ يدخل لحظات ذروته الاخيرة، هو ذلك اللقاء الاخير الذي جمع محافظ المركزي؛ الشبيبي، مع السيد حيدر العبادي عن اللجنة المالية لمجلس النواب، حيث تم مناقشة ما يمكن ان يسمى بـ"لمسات المشروع النهائية"، وحمدا له ان تلك المناقشات تطرقت الى اهم ما في هذا المشروع وتفصيلاتها كالمتطلبات القانونية والمحاسبية والاجرائية واستعدادات المركزي لطبع ونقل وتوزيع العملة الجديدة. Recent developments that give signals that the countdown for the project has become the moments of peak recently, is that the recent meeting that brought together the Central Bank Governor; Shabibi, with Mr. Haider Abadi, the Finance Committee of the Council of Representatives, where they discussed what could be called the "touches the final project," and thank him that those discussions touched on the most important thing in this project and its details Kalmttlebatt legal, accounting and procedural preparations, and central printing and transporting and distributing the new currency. الملاحظة الاهم التي استوقفتني والتي تثبت ان المشروع بصدد اقراره كقانون ورود عبارة "الاسباب الموجبة"، وهي عادة عبارة يتم مناقشتها عند اقتراب اقرار الصيغة النهائية لأي قانون. Observation that struck me the most important and which prove that the project approval process as one of the phrase "reasons", which is usually a discussion on the approach of the final version of any law.

ما يحسب هذه المرة لعلاقة البنك المركزي مع مجلس النواب هو الاحساس العام بعلاقة التناغم والانسجام التي تبدو سائدة بينهما، وهي علاقة كنا افتقدنا لمثلها بين المركزي والحكومة والتي تحولت الى تقاطع وقطيعة وصلت ذروتها عند محاولة الحكومة "نزع" صفة الاستقلال عن المركزي. What counted this time to central bank's relationship with the Council of Representatives is the general feeling relationship harmony that seem prevalent between them, a relationship we have lost the like between the central government, which turned out to be the intersection of the break and reached a peak of government's attempt to "disarm" the status of independence from the central. وعلى ما يبدو فإن "الحرب الناعمة" بين الاثنين ما زالت مستمرة، وهو ما يمكن ان نجده في تصريحات المركزي ذاته، حيث انه إذ يطرح مشروع رفع الاصفار الى البرلمان، يؤكد "ان العملة الجديدة المتوقع العمل بها لا يمكن تزويرها"، في حين ان المركزي من جهة اخرى يعطي اشارات مبطنة الى ضرورة "حماية العملة المحلية من مافيات متخصصة بالتزوير" وذلك على لسان الناطق الرسمي باسم مشروع رفع الاصفار السيد مظهر محمد صالح الذي يؤكد على ان "الحكومة العراقية مطالبة بملاحقة مافيات عملة تحاول استغلال مشروع اعادة هيكلة العملة لزج عشرات المليارات من الدنانير المزورة" وهو ما يشدد عليه موضحا ان "الامن الاقتصادي من تخصص الحكومة وليس المركزي لانه معني برسم السياسة النقدية في البلاد". Apparently, the "soft war" between the two are still going on, which can be found in the statements of the Central itself, where he as put the draft lifting of the zeroes to the parliament, confirms that "the new currency is expected to work out can not be falsified", while the Central the other hand, gives signals lined the need to "protect the local currency of the mafias specialized fraud" in the words of the official spokesman for the project raise zeros Mr. appearance of Mohammed Saleh, who asserts that "the Iraqi government claim to prosecute mafia currency trying to use the project to restructure the currency viscous scores of billions of counterfeit dinars, "which he stresses, explaining that" the economic security of allocated central government, not because he is drawing on monetary policy in the country. " آخر ما يمكن ايراده بهذا الشأن ان المركزي يقود سفينة مشروع رفع الاصفار على ايقاع هادئ، والدفة الرئيسة لهذه السفينة هي حصر لعبة التصريحات بيد "ناطق" واحد يتبادل الادوار احيانا مع محافظه، وهو اجراء يكون الهدف الرئيس منه المحافظة على عدم افساد هذا المشروع الحساس، الذي قد يؤدي أي خطأ تكتيكي فيه الى اثارة موجة من ردود الفعل السلبية على المشروع برمته، وهو المشروع الذي ربما تكون آثاره الايجابية كبيرة في حال تم قيادة سفينة نجاته بشكل سلس الى بر الامان، في حين ان تعثرات المشروع قبل اكتماله قد تكون كارثية ومكلفة على الاقتصاد والمركزي وشخوصه. The last can be cited in this regard that the central lead ship of the draft lifting of the zeroes on the rhythm of quiet, and rudder key for this ship is the inventory of game comments but "speaking" one exchange roles sometimes with the governor, a move that will be the main goal it to maintain not to spoil this project is sensitive, which may result in a tactical error which to provoke a wave of negative reactions on the entire project, a project that may have positive effects significant in the event of the command ship survived smoothly to safety, while the hurdles the project before its completion may be catastrophic and costly to the economy and the central and Characters.

سفينة المركزي تسبح في بحر السلطتين، فهل يلتقيان! Ship of the Central swim in the sea powers, will meet!

ميثم لعيبي Maytham Laibi

البنك المركزية يؤكد اهمية حذف الاصفار على واقع الاقتصاد العراقي

 Central Bank underlines the importance of the deletion of zeros on the reality of the Iraqi economy
28/08/2011م - 9:59 ص | مرات القراءة: 208 28/08/2011 PM - 9:59 | Hits: 208

أكد نائب محافظ البنك المركزي د. Deputy Central Bank Governor Dr.
مظهر محمد صالح ان مشروع القرار هذا يندرج ضمن سياسة الاصلاح النقدي بهدف تقليل الكتلة النقدية من جهة وحساب الكتلة من جهة ثانية. The appearance of Mohammed Saleh, said that this draft resolution falls within the monetary policy of reform in order to reduce the money supply of hand and calculate the mass of the other.
صالح اوضح بان هذا المشروع طويل الامد يحتاج الى سنتين او ثلاث ويحتاج الى ستراتيجيات وتوقيتات لحين اكتمال القناعة بالمشروع.وألمح الى ان مشروع القرار هذا كان بتكليف من اللجنة الاقتصادية في العام 2007 ومضى على تداوله اكثر من 5 سنوات.مقللا من المخاوف التي تعتري البعض من الاثار التي قد تنجم عن تطبيقه. Saleh explained that this project long term needs to be two or three years and needs a strategy and timing until the completion of the conviction to the project. He suggested that this draft resolution was commissioned by the Economic Commission in 2007 and went on trading of more than 5 years., Diminishing fears Taatari some of the effects that may result from its application.

ولفت نائب محافظ البنك المركزي الى ان دولا عديدة مرت بهذه التجربة,مشيرا الى ان مشروع القرار عرض على مجلس الوزراء واللجنة الاقتصادية والبرلمان بهدف اغنائه بالمناقشة والخروج بقرار سليم يستبعد كل التاثيرات الجانبية اجتماعية كانت ام اقتصادية داعيا الى اعطاء الفرصة لدراسته قبل الحكم عليه. The Vice Governor of the Central Bank that many countries went through this experience, noting that the draft resolution presented to the Council of Ministers and the Economic Commission and the Parliament in order to enrich the discussion and leave the decision of the proper rule out all the side effects social mother was an economic and called for giving the opportunity to study it before judging it.

واستغرب صالح من تطير البعض من هذا القرار لافتا الى ان حجم الكتلة النقدية بالترليونات غير موجودة سوى في امريكا والعراق، ووجودها في امريكا يعبر عن متانة وقوة اقتصادها اما في العراق فيعبر عن حالات التضخم وضعف الاقتصاد الوطني.ويضيف بان الاتجاه سائر نحو تقليل هذه الكتلة النقدية لكبح جماح التضخم من جهة ولرفع قيمة الدينار العراقي مقابل العملات الاجنبية من جهة ثانية.كاشفا عن ان العملة المقترحة ستتضمن نقوداً معدنية للفئات الصغيرة تكفل تمشية التعاملات في السوق المحلية. He was surprised at the benefit of flying some of this decision, pointing out that the cluster size cash trillions do not exist only in the U.S. and Iraq, and its presence in America reflects the strength and the strength of its economy, either in Iraq is thus expressed cases of inflation and the weak national economy. He adds that the trend is towards reducing the cash block to rein in inflation on the one hand and raise the value of the Iraqi dinar against foreign currencies from the other. revealing that the currency will include the proposed coins for small groups to ensure that walking in the local market transactions.

CBI: New currency can not be falsified 

Baghdad morning
The Central Bank of Iraq that the new currency is expected to work out can not be forged. This came during an interview the President of the Finance Committee in the House of Representatives Haidar Abadi, with the Central Bank Governor Sinan al-Shabibi.

During the meeting, according to a statement issued by the commission received “morning,” a copy of it, search the project to delete the zeros of the Iraqi dinar and the reasons and legal requirements and accounting and procedural preparations conducted by the Central Bank of the process of printing, transfer and distribution of new currency, in addition to the role of the Finance Committee in support of this project.

The statement quoted Shabibi assertion that «the new currency attributes are difficult to falsify, in addition to the fortifications that put the new currency », pointing out that« the project if implemented will enhance the Iraqi dinar exchange rate against foreign currencies ».

The two sides agreed to hold further meetings to finalize discussions on the project. The Deputy Governor of the Central Bank of the appearance of Mohammed Saleh announced mid-month that the central bank raise the bill to delete the zeros of the Iraqi currency to the government and parliament for consideration and discussion and approval in the event was approved.

Saleh explained in a press statement that «the bill included all the details of legislative and executive on a subject to delete the zeros and the positive economic effects that would leave in the event of approval»

He pointed out that «the bill included proposals for a new currency and the groups that carried and details of technical and economic». and Saleh stressed that «the law, if approved, will have a positive impact in the Iraqi currency in several aspects of the need during the next phase».


Professionals aspire IQD to trade internationally; Economic policy likely on immediate horizon 

Financial (the news): We aspire to make the Iraqi dinar portion of international reserves
On: Saturday 08/27/2011 13:01

BAGHDAD (Alobaah) / report / Faleh Hussein / .. aspiring professionals is that the financial affairs of the adoption of the Iraqi dinar as part of international reserves, through the establishment of a strong economy enhances the value of local currency.

Justified in speaking professionals (of the Agency news) on the adoption of the Iraqi trader when importing his goods dealing in foreign currencies and the dollar, the euro, and that the weakness of the Iraqi economy, which led to the unwillingness of countries to deal currency it.

The economic expert attributed the peace Sumaisem reasons for non-traded Iraqi currency in foreign dealings, the weakness of the Iraqi economy and overburdened by debt, noting that the Jordanian dinar and have become powerful because of their economies, in addition to the lack of debt and internal problems.

And khat Sumaisem in a statement to the Agency (news) on Saturday: that the Iraqi trader himself has refused to deal in Iraqi dinars when the import of goods because it would not be desirable abroad.

For his part, central bank adviser said the appearance of Mohammed Saleh in a statement to the Agency (news
for the news) on Saturday: that the Iraqi dinar is not an international reserve currency until it is handled in the outside,
saying we as a policy cash aspire to be the Iraqi dinar portion of international reserves, and this needs a long time.

Saleh added: that the Iraqi dinar is the local currency convertible to other currencies, that is unlikely to deal in Iraqi dinars externally at present evidence is that the instructions do not allow the central bank to bring the Iraqi dinar, but the limits of (200) thousand dinars for the traveler.

The central bank adviser that all countries in the world dealing in currencies neighboring countries, but narrowly and not on any large scale to deal with a small cross-border transactions and not the means of payment to finance a large foreign trade.

And most likely a member of the economic and parliamentary deputy / National Alliance / Amer al-Fayez told the reporter Agency (news) on the immediate horizon that there will be economic policy, vision, and clear to make the Iraqi dinar refineries stable countries, stressing that there is no law forcing the Iraqi traders to deal in Iraqi currency abroad because the issue is not related to the merchant, but related to the global market.

Fayez and that which makes dealing in Iraqi dinar abroad is out of Iraq from Chapter VII, as the complete and maintain on deposits and balances are now in the Central Bank.

He said the parliamentary economic committee member: the idea that the list now to delete the three zeroes from the Iraqi currency, and this project will hopefully contribute to give power to the Iraqi currency to foreign dealings.

Iraqi dinar was introduced in the thirties of last century and equated during the seventies three dollars, but later deteriorated in 1990 as a result of the invasion of Kuwait and the United Nations to impose strict economic blockade, to lose value quickly and up to 3000 dinars per dollar mid-nineties.

The former regime has printed currency outside of Iraq have been issued new bank notes worth up and after that was the largest number of 25 dinars, was printed banknotes and the category of 250 dinars, which were not equal, in fact, more than 25 fils to KD seventies.

After 2003, issued new Iraqi dinar denominations larger to facilitate the daily transactions, making the 25 thousand dinars, the largest Iraqi currency now (the U.S. dollar is equal to 1120 dinars), but this price is still far from the ambition of the Iraqi citizen, is the deletion of zeros, the fastest way to raise the exchange value of local currency against the dollar, according to observers.


Shabibi, Iraq Parliament Finance Committee Discuss Deleting the Zeros Project

Finance Committee meets Iraqi Central Bank Governor

Sunday August 21, 2011

Met Haider Abadi, head of the Finance Committee on Tuesday, 16/8/2011 Mr. Shabibi central bank governor, and also discussed the project to delete the zeros of the Iraqi dinar and the reasons and legal requirements and accounting and procedural preparations conducted by the Central Bank of the process of printing, transporting and distributing the new currency as well as the role of the Finance Committee in support of this project.

For his part, Shabibi that the new currency attributes are difficult to falsify in addition to the fortifications that put the new currency and explained that the project if implemented will enhance the Iraqi dinar exchange rate against foreign currencies.

At the end of the meeting, both sides agreed to hold further meetings to continue discussions on the project.


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