Al-Kazemi’s advisor proposes solutions to reduce the value of the dollar

Economie| 08:50 – 04/10/2021

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Baghdad – Mawazine News,
the financial advisor to the Prime Minister, Mazhar Muhammad Salih, determined today, Monday, the extent of the possibility of relieving pressure on the operating budget and addressing the financial situation in the country, while proposing solutions to support the private sector, reduce unemployment and reduce the value of the dollar against the dinar.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said, “It is possible to benefit from the recovery in oil prices by moving stalled projects, attracting a workforce and solving the problem of unemployment, which averages 450 thousand work force willing to work, and this results in the entire society.”
He pointed out, “The importance of spending additional rentier resources on projects to relieve pressure on the operating budget,” noting that “the operational budget includes dozens of decisions and laws and bears financial burdens, and needs to double the 2021 budget to implement all its requirements.”
Saleh explained, “There is poor planning, as well as the accumulation of unemployment, and treatment cannot take place unless the state sets laws for the private sector, such as the Social Security Law, which grants privileges to its workers, including ensuring his retirement rights or transferring an employee from the private sector to the government and others.”
He added, “The additional resources of oil cannot be used without directives to manage them,” noting that “the private sector has the ability and leadership, and money must be disbursed to it within a specific plan and be in the form of soft, recoverable loans to preserve wealth, as for the disbursement of amounts as consumption. It’s just a big loss for the future.”
He continued, “The government today is shackled by thousands of decisions and laws that carry consumer spending burdens par excellence, and cannot be applied even if the price of a barrel of oil reaches $ 160,” referring to the reasons for “the adoption of legislation without studying the financial burdens and thus costing the state to carry out a review of those legislation, and therefore Today, the Ministry of Finance is unable to implement dozens of legislation due to financial burdens.
And he indicated, “The transfer of problems from one cycle to another has caused a major imbalance, and long-term plans that are governed by laws must be developed and adhered to in order to rebuild the country properly,” noting that “Iraq in recent years has followed a policy of deportation and it must be replaced by a policy of communication, meaning that the government is changing With the continued implementation of the drawn plan, an example of this is the electricity sector, which has spent about 120 billion dollars and so far the country is unable to produce 20 thousand megawatts per day.
And on the extent of the possibility of reducing the value of the dollar against the dinar, the financial advisor said, “The monetary policy depends on the amount of foreign reserves supporting the Iraqi dinar, that is, the efficiency of the reserves and their escalation towards safe lines.”
He added, “There are expectations that the Iraqi dinar will improve with the development of reserves, and this is up to the monetary policy, especially since the timing is appropriate and the opportunity is appropriate, provided that there is financial discipline and correct development, and without them there is no value for any attempts.”
He pointed out, “The 2022 budget will be subject to great pressure, especially since the 2021 budget is built on a deficit,” stressing that “the improvement in oil prices will reduce the deficit in the 2022 budget, but there is an expansion if it is achieved, the spending ceiling will be fixed, meaning that the increase in revenues with The increase in operational spending does not achieve anything.” End 29 / h

https://www.mawazin.net/Details.aspx?jimare=169868

THE ARAB MONETARY FUND ORGANIZES A (REMOTELY) COURSE ON “INVESTMENT ALTERNATIVES IN THE MANAGEMENT OF RESERVES”

 2021-10-04

Abu Dhabi – United Arab Emirates

The training course on ” Investment Alternatives in the Management of Reserves  “, organized by the Institute for Training and Capacity Building at the Arab Monetary Fund, was inaugurated today , during the period  3-6 October 2021 , through the remote training method adopted by the Fund in continuation of its training activity. 

There are main elements that must be taken into consideration when dealing with investment alternatives and managing investment portfolio products, such as asset allocation, diversification, and portfolio rebalancing. The distribution of assets should be based on the fact that not all assets move at the same pace as there are assets that are more moving than others, so the distribution of assets aims to maximize profit within the lowest level of risk by mixing assets with low correlation. As for the other element of managing the investment portfolio, it is working to diversify the investment basket so that it contains assets with different exposures. A good diversification is one that includes investments in different assets, in different sectors, and in different geographies. 

On this occasion, the speech of His Excellency Dr. Abdulrahman bin Abdullah Al-Hamidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund stated:

Ladies and gentlemen,

I am pleased to welcome you to the opening of the ”  Investment Alternatives in the Management of Reserves  ” course, which is organized by the Institute for Training and Capacity Building in coordination with the Investment Department. I hope that the course will contribute to enriching and deepening your knowledge on this important subject.

Ladies and gentlemen,

There are main elements that must be taken into consideration when dealing with investment alternatives and managing investment portfolio products, such as asset allocation, diversification, and portfolio rebalancing. The distribution of assets should be based on the fact that not all assets move at the same pace as there are assets that are more moving than others, so the distribution of assets aims to maximize profit within the lowest level of risk by mixing assets with low correlation. As for the other element of managing the investment portfolio, it is working to diversify the investment basket so that it contains assets with different exposures. A good diversification is one that includes investments in different assets, in different sectors, and in different geographies. 

Ladies and gentlemen,

In this context, the course provides mechanisms for dealing with investment alternatives and managing multi-asset investment portfolio products and services. It also focuses on the importance of managing official foreign reserves and how to maintain their integrity and development in a manner that ensures a balance between liquidity and security on the one hand and a reasonable return on the other hand. As you know, one of the objectives of maintaining foreign reserves is to support confidence in the exchange rate management policies, including the ability to intervene to support the national currency in order to achieve a balance between demand and supply of foreign currencies, and reduce exposure to external fluctuations and shocks, which leads to increased confidence. The extent to which the economy is able to meet its external obligations and debts. 

Ladies and gentlemen,

Your course is rich in various topics that shed light on the sound foundations in dealing with investment alternatives and within the following main themes:

  • ​Alternative Investments
  • Investments in hedge strategy funds
  • Managing foreign reserves



Ladies and gentlemen,



in conclusion, I would like to extend my thanks and gratitude to the colleagues at the Arab Monetary Fund for providing the course materials, and I also urge you to take advantage of this occasion to benefit from the experiences of the various Arab countries, thus maximizing the benefit of the course.



I wish you a successful course and may God bless you wherever you are.



Peace, mercy and blessings of God.

https://www.amf.org.ae/ar/content/%D8%B5%D9%86%D8%AF%D9%88%D9%82-%D8%A7%D9%84%D9%86%D9%82%D8%AF-%D8%A7%D9%84%D8%B9%D8%B1%D8%A8%D9%8A-%D9%8A%D9%86%D8%B8%D9%85-%D8%AF%D9%88%D8%B1%D8%A9-%D8%B9%D9%86-%D8%A8%D8%B9%D8%AF-%D8%AD%D9%88%D9%84-%C2%A0%D8%A7%D9%84%D8%A8%D8%AF%D8%A7%D8%A6%D9%84-%D8%A7%D9%84%D8%A5%D8%B3%D8%AA%D8%AB%D9%85%D8%A7%D8%B1%D9%8A%D8%A9-%D9%81%D9%8A-%D8%A5%D8%AF%D8%A7%D8%B1%D8%A9-%D8%A7%D9%84%D8%A5%D8%AD%D8%AA%D9%8A%D8%A7%D8%B7%D9%8A%D8%A7%D8%AA%C2%A0

The President of the Republic: Big changes will happen after the elections

political| 06:59 – 04/10/2021

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Baghdad – Mawazine News
, the President of the Republic, Barham Salih, confirmed that major changes will occur after the parliamentary elections scheduled for the tenth of this month.
The President of the Republic said in an interview with reporters during his visit to the tomb of former President Jalal Talabani in Sulaymaniyah, that “the legislative elections this time have a special and fateful importance for Iraq and the Kurdistan region, and it is necessary that citizens participate massively in them and go to the polls to vote.”
He added, “These elections will leave behind major changes, and there will be amendments to the constitution, and these are all important matters for Iraq and the Kurdistan Region.” Ended 29 / h

https://www.mawazin.net/Details.aspx?jimare=169851

Beirut hosts the Iraqi-Lebanese Business Conference

money and business

Economy News – Baghdad

The first Iraqi-Lebanese Business Conference kicked off in the Lebanese capital, Beirut, on Monday.

The conference was attended by the Lebanese Minister of Industry, the Ambassador of Iraq in Beirut, the Ambassador of Lebanon in Baghdad, the Director General of the General Company for Exhibitions and Commercial Services in the Iraqi Ministry of Trade, the President of the Chamber of Commerce, Industry and Agriculture in Mount Lebanon and Beirut, and the Vice President of the Baghdad Chamber of Commerce.

The conference, organized by Novelty, aims to organize economic and industrial exhibitions and conferences between the Baghdad and Beirut Chamber of Commerce. The conference works to strengthen the economic role between Iraq and Lebanon and activate the role of the private sector between the two countries to include the commercial, industrial, health, tourism, environmental, agricultural and renewable energy sectors.

For his part, Lebanese Minister of Industry, George Bushekjian, stated that “the conference today in Beirut is the start of a long journey for trade and industry and the development of various fields between Lebanon and Iraq.

Iraq’s ambassador to Lebanon, Haider Shaya al-Barrak, said, “This conference is the first of my activities after assuming my duties in the management of the Iraqi embassy in Beirut. The two countries are in more than one field.

In turn, Lebanon’s ambassador in Baghdad, Ali Al-Habhab, said, “The aim of the conference today is to gather companies from Iraq and Lebanon in order to anticipate understandings that help develop commercial and industrial work between the two countries.”

He pointed out that “work is underway with all Iraqi government institutions and private sector institutions in order to facilitate the work of companies and to find ways that develop and strengthen all business between the two alternatives.”

As for Sarmad Taha, director general of exhibitions in the Iraqi Ministry of Trade, he said, “The ministry is working to broaden the horizon of commercial and industrial cooperation between different countries, and today’s conference enhances Iraq’s role at the Arab level and promotes commercial work between Lebanon and Iraq.”

For his part, the Vice-President of the Baghdad Chamber, Raad Kazem Brij, stated that “what happened today today is a twinning and the signing of memoranda of understanding that enhance commercial work between the Baghdad Chamber of Commerce and Lebanon in order to organize joint commercial work and raise the level of trade exchange between the two countries.”

https://economy-news.net/content.php?id=26509

The Central Bank and the Association of Private Banks hold a workshop on “digital transformation and its impact on the Iraqi business environment”

Counselor at the Association of Private Banks Sherawan Anwar Mustafabanks

Economy News – Anbar

The Central Bank, in cooperation with the Association of Iraqi Private Banks, organized a workshop entitled “Global Digital Transformation and its Impact on the Business Environment in Iraq”. In cooperation with the Federation of Iraqi Businessmen, Al-Anbar branch.

The workshop was held in the meeting and conference hall in Al Rayyan Tourist Complex in Al Ramadi Corniche.

The workshop aims to support the youth category in the governorate, as they were provided with 200 free licenses from the Coursera program to develop their skills and push them into the labor market.

This is in line with the Central Bank’s supportive vision for the youth category, especially as it constitutes the largest segment of Iraqi society. 

It is noteworthy that the Central Bank of Iraq launched more than one initiative that contributed to creating many job opportunities for the youth category and contributed to supporting many small and medium enterprises.

The consultant at the Association of Private Banks, Sherawan Anwar Mustafa, gave a presentation on the “Global Digital Transformation Program and its Impact on the Development of the Business Environment in Iraq”. 

He added in his speech during the workshop, which was attended by “Economy News”, that “the Association of Private Banks continues its cooperation with the Central Bank through this workshop in support of the community category.”

He stressed that “what the cities liberated from ISIS have been subjected to requires us all to focus on the youth category, as they are the leaders of tomorrow and the best people to live in the destroyed cities.”

Mustafa is clear that “the concerned authorities decided to allocate 200 free scholarships from Coursera grants in various fields to develop youth skills.”

He pointed out that “the presence of future workshops that support the youth and women category in all Iraqi governorates, and this is part of a joint vision between the Association of Iraqi Private Banks and the Central Bank of Iraq.”

https://economy-news.net/content.php?id=26508

BAGHDAD SENDS 200BN IQD STIPEND TO ERBIL TO PAY PUBLIC SERVANTS: SOURCE

PM:01:01:04/10/2021 

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SULAIMANI — A source from Kurdistan Regional Government’s (KRG) Ministry of Finance told NRT that Iraq’s federal government has transferred a stipend of 200 billion Iraqi dinars ($137 million) to the KRG.

The source spoke on condition of anonymity because the announcement has not yet been made public by the KRG.

On Sunday, KRG Spokesperson Jotiyar Adil said that the stipend had not yet been sentbecause of technical issues.

The stipend is not a part of the 2021 Federal Budget Law, which has not been fully implemented because of persistent disagreements between Erbil and Baghdad over oil and customs income. Rather, it is based on side deal between the KRG and Prime Minister Mustafa al-Kadhimi that went into effect in July.

The KRG has said that it is only able to pay full public sector salaries because of the stipend. It had been either missing monthly salary payments entirely or cutting them by nearly a quarter between March 2020 and July 2021.

Public servants at some ministries have not yet been paid the September salary disbursement, which was supposed to be given out to employees starting on September 25.

Ensuring that public servants are paid is critical to the electoral campaigns of the ruling parties in the Kurdistan Region.

Voters go to the polls on October 10 to elect members of the Council of Representatives.

(NRT Digital Media)

nrttv.com

Iraqi banks acquire 99% of government bonds

economyCentral Bank of IraqIraqi banksbond 2021-10-04 06:22A-AA+

Shafaq News / A government source said, on Monday, that most of the bonds offered by the government are bought by banks through their cash reserves with the Central Bank of Iraq, while citizens are satisfied with only one percent of those bonds.

From time to time, the Central Bank issues bonds in favor of the Ministry of Finance, for the purpose of financing some public expenditures, as it recently issued construction bonds in denominations of 500 thousand dinars and one million dinars.

The source told Shafak News Agency, “The banks use the mandatory cash reserve at the bank, which ranges between 35 to 40% of its capital of 250 billion dinars, for the purpose of purchasing the bonds offered by the government through the Central Bank.”

The source added, “99% of these bonds are bought by banks and one percent is bought by the citizen,” noting that “buying bonds by banks achieves great profits for them through the high interest offered, and the amounts that banks buy for these bonds are frozen with the bank as a reserve. You will move it by buying these bonds.”

The source noted that “the government issues bonds from time to time due to its lack of financial liquidity to finance public expenditures,” noting that “the government owes the Central Bank more than 21 trillion dinars as a result of borrowing funds during the last period to cover employee salaries and other expenses.”

https://shafaq.com/ar/%D8%A7%D9%82%D8%AA%D8%B5%D9%80%D8%A7%D8%AF/%D8%A7%D9%84%D9%85%D8%B5%D8%A7%D8%B1%D9%81-%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82%D9%8A%D8%A9-%D8%AA%D8%B3%D8%AA%D8%AD%D9%88%D8%B0-%D8%B9%D9%84%D9%89-99-%D9%85%D9%86-%D8%B3%D9%86%D8%AF%D8%A7%D8%AA-%D8%A7%D9%84%D8%AD%D9%83%D9%88%D9%85%D8%A9