KTFA
Samson » July 29th, 2019
The International Monetary Fund warns Iraq against the current "extravagance."
29th July, 2019
The International Monetary Fund (IMF) on Monday warned Iraqi authorities against continuing what it described as "extravagance".
"Iraq's current budget for 2019, if current spending continues as it is, will eliminate any progress Iraq has made economically over the past years," the fund said, according to Babel Finance International.
"Expectations indicate an increase in Iraqi spending by 25% annually, unless the authorities amend their financial laws and balance sheet items."
The IMF described Iraq's economic situation as "facing serious challenges. Social conditions are low and still severe, post-war reconstruction is slow, growth requirements are very high, institutional weaknesses are very clear, volatile oil prices and geopolitical relations have a big role to play. Conditions of the Iraqi economy." LINK
KBC123 » July 29th, 2019
This doesn't sound too good. Hmmm. Maybe it's another "reminder" to INCREASE the RATE!!!
Don961 » July 29th, 2019
IRAQ STAFF REPORT FOR THE 2019 ARTICLE IV CONSULTATION AND PROPOSAL FOR POST-PROGRAM MONITORING— INFORMATIONAL ANNEX
Prepared By Middle East and Central Asia Department (In consultation with other departments)
FUND RELATIONS (As of May 31, 2019)
Membership Status: Joined December 27, 1945; Article XIV
General Resources Account
SDR Million ---------- Percent of Quota
__________________________
Quota 1,663.80 ---- 100.00%
Fund Holdings of Currency
3,425.13 ------------ 205.86%
Reserve Tranche Position
289.95 ---------------17.43
Latest Financial Arrangements
Type---------- Date of Arrangement---- Expiration Date---- Amount Approved (SDR Million)---- Amount Drawn (SDR Million)
Stand-By ----Jul 07, 2016--------------- Jul 06, 2019 -------3,831.00-------------------------------- 1,494.20
Implementation of HIPC Initiative: Not Applicable
Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable
Implementation of Catastrophe Containment and Relief (CCR): Not Applicable
As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.
Safeguards Assessments
The most recent safeguards assessment of the Central Bank of Iraq (CBI) was completed in April 2016. It concluded that the CBI continues to face capacity constraints in its operations, as well as a difficult security situation on the ground. In line with the IMF safeguards assessment's recommendations the Governing Council of the CBI approved a new charter for the Audit Committee prohibiting CBI executive representation on the committee. Also, the Parliament has approved amendments to the Law on the Central Bank of Iraq to strengthen CBI governance and the internal control framework. However, progress in strengthening the capacity of internal audit and financial reporting has been slow.
Exchange Arrangement
Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy. Effective January 2, 2017, the cash and transfer exchange rate was set at ID 1,184 plus ID 6 (fees) per U.S. dollar.
Effective May 24, 2018, the official exchange rate was set at ID 1,190 per U.S. dollar including the Central Bank commission (ID 1,182 plus ID 8 (fees)) according to the closing prices of the daily bulletin of gold & main currencies published on the CBI website (www.cbi.iq).
The CBI provides foreign exchange at the official exchange rate for permissible transactions through its daily auctions (allocations), establishing a peg. However, because certain transactions are excluded from access to the CBI auctions, many transactions take place at parallel market exchange rates. The CBI publishes the daily volume of the auction allocation on its website.
Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1 {1}
_____________________________________________
{1}The authorities have imposed a requirement that, to access the CBI foreign exchange window, a purchaser must have at least one bank account that has been opened for a minimum of six months. This requirement does not apply for access to foreign exchange from other sources, including purchases of foreign exchange from commercial banks’ own resources. Staff will monitor the implementation of this requirement to ascertain whether any undue burdens on access to foreign exchange for current international transactions emerge from its application in practice
___________________________________________
The MCP arises from the lack of a mechanism to ensure that the exchange rate at the CBI foreign exchange window and the market rates (retail exchange rates of commercial banks and exchange bureaus for the sale of foreign currency from sources other than the CBI foreign exchange window) do not deviate from each other by more than 2 percent.
A previously identified exchange restriction arising from an Iraqi balance owed to Jordan under an inoperative bilateral payment agreement has been eliminated.
Article IV Consultation
Upon the approval of the 36-month Stand-By Arrangement on July 7, 2016, Iraq was placed on the 24-month consultation cycle. The last Article IV consultation was concluded on August 1, 2017, along with the Second Review under the Three-Year Stand-by Arrangement. The staff report (IMF Country Report No. 17/251) was published on August 9, 2017, and is available on the internet.
Resident Representative
Mr. Kareem Ismail has been the resident representative for Iraq, based in Amman, since June 2018.
Technical Assistance, 2014–19
(a series of 3 charts follows ... showing various IMF departments offering Iraq assistance in various categories ....with headings of Department --- Date --- Purpose ....one entry stood out)
Department ----------- Date ------------ Purpose
LEG --------------------June 2015 ------Article VIII acceptance link
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
Samson » July 29th, 2019
The International Monetary Fund warns Iraq against the current "extravagance."
29th July, 2019
The International Monetary Fund (IMF) on Monday warned Iraqi authorities against continuing what it described as "extravagance".
"Iraq's current budget for 2019, if current spending continues as it is, will eliminate any progress Iraq has made economically over the past years," the fund said, according to Babel Finance International.
"Expectations indicate an increase in Iraqi spending by 25% annually, unless the authorities amend their financial laws and balance sheet items."
The IMF described Iraq's economic situation as "facing serious challenges. Social conditions are low and still severe, post-war reconstruction is slow, growth requirements are very high, institutional weaknesses are very clear, volatile oil prices and geopolitical relations have a big role to play. Conditions of the Iraqi economy." LINK
KBC123 » July 29th, 2019
This doesn't sound too good. Hmmm. Maybe it's another "reminder" to INCREASE the RATE!!!
Don961 » July 29th, 2019
IRAQ STAFF REPORT FOR THE 2019 ARTICLE IV CONSULTATION AND PROPOSAL FOR POST-PROGRAM MONITORING— INFORMATIONAL ANNEX
Prepared By Middle East and Central Asia Department (In consultation with other departments)
FUND RELATIONS (As of May 31, 2019)
Membership Status: Joined December 27, 1945; Article XIV
General Resources Account
SDR Million ---------- Percent of Quota
__________________________
Quota 1,663.80 ---- 100.00%
Fund Holdings of Currency
3,425.13 ------------ 205.86%
Reserve Tranche Position
289.95 ---------------17.43
Latest Financial Arrangements
Type---------- Date of Arrangement---- Expiration Date---- Amount Approved (SDR Million)---- Amount Drawn (SDR Million)
Stand-By ----Jul 07, 2016--------------- Jul 06, 2019 -------3,831.00-------------------------------- 1,494.20
Implementation of HIPC Initiative: Not Applicable
Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable
Implementation of Catastrophe Containment and Relief (CCR): Not Applicable
As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.
Safeguards Assessments
The most recent safeguards assessment of the Central Bank of Iraq (CBI) was completed in April 2016. It concluded that the CBI continues to face capacity constraints in its operations, as well as a difficult security situation on the ground. In line with the IMF safeguards assessment's recommendations the Governing Council of the CBI approved a new charter for the Audit Committee prohibiting CBI executive representation on the committee. Also, the Parliament has approved amendments to the Law on the Central Bank of Iraq to strengthen CBI governance and the internal control framework. However, progress in strengthening the capacity of internal audit and financial reporting has been slow.
Exchange Arrangement
Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy. Effective January 2, 2017, the cash and transfer exchange rate was set at ID 1,184 plus ID 6 (fees) per U.S. dollar.
Effective May 24, 2018, the official exchange rate was set at ID 1,190 per U.S. dollar including the Central Bank commission (ID 1,182 plus ID 8 (fees)) according to the closing prices of the daily bulletin of gold & main currencies published on the CBI website (www.cbi.iq).
The CBI provides foreign exchange at the official exchange rate for permissible transactions through its daily auctions (allocations), establishing a peg. However, because certain transactions are excluded from access to the CBI auctions, many transactions take place at parallel market exchange rates. The CBI publishes the daily volume of the auction allocation on its website.
Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1 {1}
_____________________________________________
{1}The authorities have imposed a requirement that, to access the CBI foreign exchange window, a purchaser must have at least one bank account that has been opened for a minimum of six months. This requirement does not apply for access to foreign exchange from other sources, including purchases of foreign exchange from commercial banks’ own resources. Staff will monitor the implementation of this requirement to ascertain whether any undue burdens on access to foreign exchange for current international transactions emerge from its application in practice
___________________________________________
The MCP arises from the lack of a mechanism to ensure that the exchange rate at the CBI foreign exchange window and the market rates (retail exchange rates of commercial banks and exchange bureaus for the sale of foreign currency from sources other than the CBI foreign exchange window) do not deviate from each other by more than 2 percent.
A previously identified exchange restriction arising from an Iraqi balance owed to Jordan under an inoperative bilateral payment agreement has been eliminated.
Article IV Consultation
Upon the approval of the 36-month Stand-By Arrangement on July 7, 2016, Iraq was placed on the 24-month consultation cycle. The last Article IV consultation was concluded on August 1, 2017, along with the Second Review under the Three-Year Stand-by Arrangement. The staff report (IMF Country Report No. 17/251) was published on August 9, 2017, and is available on the internet.
Resident Representative
Mr. Kareem Ismail has been the resident representative for Iraq, based in Amman, since June 2018.
Technical Assistance, 2014–19
(a series of 3 charts follows ... showing various IMF departments offering Iraq assistance in various categories ....with headings of Department --- Date --- Purpose ....one entry stood out)
Department ----------- Date ------------ Purpose
LEG --------------------June 2015 ------Article VIII acceptance link
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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