Central Bank of Iraq launches Financial Sustainability Map Project
Al-Alaq announces a roadmap for financial sustainability for the Iraqi banking sector
The Governor of the Central Bank, Ali Al-Alaq, announced today, Monday, a roadmap for the financial sustainability of the Iraqi banking sector, while indicating that this map is part of the efforts to upgrade the banking sector.
Al-Alaq said in a speech during the launch ceremony of the Financial Sustainability Map Project and the Environmental, Social and Governance Standards Guide for Banks, “Today we are addressing an important and fundamental aspect in developing the banking sector in Iraq, as the term environmental, social and governance standards has witnessed turbulent growth since its first launch in 2005,” indicating that “the environmental aspects and the response related to climate change are major factors driving the development of environmental, social and governance standards, in addition to the growing importance of other essential elements, especially social ones.”
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He added, "If these standards are important for any economic entity or company, regardless of its activity, mission and products, then their importance to the financial sector is a matter of utmost importance, given the significant impact that social and environmental changes have on the reality of this sector and what is required to manage it according to regulatory, supervisory and technical rules that avert risks to guarantee the rights of shareholders and stakeholders within a framework of transparency and disclosure, and above all, to contribute to achieving financial stability, the repercussions of which are reflected in the economic and social environment and general stability, just as the environmental and social repercussions are reflected in stability."
He stated, "We are pleased to announce a roadmap for the financial sustainability of the banking sector in Iraq for the years 2023 to 2029 and social and institutional standards," noting that "this project is part of the ongoing efforts made by the Central Bank of Iraq to advance the banking sector based on international best practices as well as keeping pace with developments in the banking industry."
He stated that "with this announcement, the Central Bank of Iraq is the first in the region to implement this guide."
Al-Alaq praised "the role played by international experts at the International Finance Corporation, affiliated with the World Bank Group, and their effective contribution in preparing the roadmap for financial sustainability for the banking sector in Iraq," appreciating "the effective and ongoing partnership and fruitful cooperation with the institution."
He thanked "the fruitful and distinguished efforts of the Central Bank's work team, as well as the support provided by the Kingdom of the Netherlands in this context to push towards helping Iraq implement these important and necessary programs."
Full text of Al-Sudani's speech at the Future Summit in New York
Prime Minister Mohammed Shia Al-Sudani stressed, today, Sunday, September 22, 2024, the importance of adopting clear strategies for using artificial intelligence in a safe and responsible manner to serve humanity.
Al-Sudani participated in the Future Summit, which was held in New York today, Sunday, on the sidelines of the 79th session of the United Nations General Assembly.
The summit aims to enhance cooperation on key challenges and bridge gaps in global governance, reaffirm existing commitments to the Sustainable Development Goals (Global Goals) and the UN Charter, and lay the foundations for more effective global cooperation that can address today’s challenges and emerging threats in the future.
Al-Sudani delivered Iraq's speech at the summit, during which he stressed the pursuit of serious steps towards achieving sustainable development and effective response to the goals of the National Development Plan (2024-2028), by adopting comprehensive strategic reforms.
The following are the most important points made in the Prime Minister’s speech at the Future Summit:
We work to enhance economic reform and improve the conditions of the most vulnerable groups.
We have adopted a strategy that advances vulnerable groups in terms of social justice, building human resource capacities through developing education and health, and caring for youth and women.
- Committed to establishing the concepts of climate justice, especially in combating drought and desertification and ensuring the sustainability of water resources and food security.
- Addressing climate challenges requires effective international cooperation within the framework of the United Nations Framework Convention and the Paris Agreement.
We stress the need to give Iraq priority in climate finance, as it is one of the most affected countries, and we have begun implementing our commitments set forth in the National Contributions Document.
- We support investments that aim to diversify the economy away from oil, with our focus on the role of the private sector in providing job opportunities.
Sustainable development requires ambitious investments, and we are keen to provide incentives to the private sector and invest in renewable energy projects.
- We strengthen our international relations on the basis of mutual respect and common interests, and adhere to the principle of not allowing our territories to be used to attack other countries.
- We support all efforts to promote human rights and involve civil society organizations in achieving development goals.
Achieving peace requires a joint international effort, and diplomacy and dialogue are key to achieving stability.
- We call for strengthening international cooperation in the areas of land, maritime, cyber, and outer space security, in order to ensure comprehensive security.
Science and technology are the basis of sustainable development, and we are working to move to the digital economy and provide an integrated database to support decision-making.
We seek to enhance international cooperation in the field of technology transfer and capacity building, while supporting Iraqi inventors in every forum.
- We encourage scientific research in clean oil and gas technologies, and work to enhance technical education to provide young people with the skills required for the modern labor market.
-Strengthening international cooperation is essential to ensure that countries have access to the tools and capabilities needed to harness AI responsibly and ethically.
We seek to provide a supportive environment for youth by holding workshops to enhance their role in development.
We are keen to provide advanced educational opportunities and training programs, and we cooperate with the United Nations to develop indicators to measure youth development.
-We call for reforming international institutions to enhance their representation and ability to address global challenges.
We are committed to public sector governance, combating corruption, removing obstacles to private sector growth, and focusing on accelerating digital transformation and enforcing laws to hold violators accountable.
Iraq is committed to working with the international community to find common solutions, and our cooperation will contribute to building a better and more sustainable future for all.
PM's Advisor: Government Takes 8 Steps to Improve Technology Sector
The Prime Minister's Advisor for Banking Affairs, Saleh Mahoud, stressed on Sunday the importance of cooperation between the public and private sectors to develop the technological infrastructure in Iraq, while pointing out that the Iraqi government has taken 8 strategic steps to improve the technology sector in the country, stressing the existence of serious government efforts to achieve leadership in the field of digital innovation.
"We are pleased to represent the Prime Minister in attending the conference, and we convey his greetings and high appreciation, as he commends this conference and blesses its efforts," Mahoud said in his speech during the opening of the Iraq International Information and Communications Technology Exhibition and Conference (ITEX), which was followed by "Economy News."
He added that "the conference provides an opportunity for cooperation between the public and private sectors, which encourages the establishment of strategic companies that contribute to the development of a strong technological infrastructure."
He pointed out that "organizing and activating such conferences is an urgent necessity, as the Iraqi government, led by Prime Minister Mohammed Shia al-Sudani, looks forward to the importance of this event being an appropriate opportunity to discuss the exchange of experiences and ideas to achieve sustainable development and prosperity for our great people, which enhances Iraq's position as a leading country in the field of digital innovation."
He stressed that "digital transformation has become an inevitable necessity in recent years in the governmental and private sectors and even in our daily lives."
He added that "this conference comes at an important time, as the Iraqi government seeks to achieve a clear vision on how to use technology to improve the quality of services and enhance transparency and community participation."
He explained that "the current Iraqi government, since the start of its duties at the end of 2022, has worked to develop the information and communications technology sector, in coordination with relevant local and international sectors."
He pointed out that "the Iraqi government has taken a set of important steps in the field of developing information and communications technology, including:
1- Establishing laws and legislation to provide an appropriate environment for investment in information and communications technology, aiming to encourage innovation and protect the rights of investors.
2- Improving infrastructure, including supporting efforts to increase internet speed and expand networks in all regions of Iraq.
3- Achieving investment, as the Iraqi government encourages local and foreign investment in the information technology sector by providing banking incentives, including financial support for emerging projects in this field.
4- Partnerships with the private sector to accelerate technological development.
5- Implementing a national digitization plan to improve digital transformation in government institutions. This includes digital platforms for providing government services to citizens, such as registering documents, paying taxes, and submitting complaints, with the aim of facilitating procedures and reducing the time and effort expended, which facilitates the services provided to citizens and increases the efficiency of government performance.
6- Training and rehabilitation programs for youth and professionals in the fields of information technology, in addition to holding workshops and lectures to enhance digital skills.
7- Supporting emerging companies, by providing financial support to encourage entrepreneurs to innovate and expand.
8- Cooperating with international companies to bring new expertise and technology to Iraq.
Mahoud explained that "the above-mentioned steps are important indicators of the trend towards sustainable economic and social development."
He stressed "the government's readiness to make every effort to provide support to all local and international entities, institutions and companies in order to develop the information and communications technology sector."
He concluded by saying: “We urge all institutions and the private sector organizing the conference to exploit all challenges as an opportunity to achieve success in future plans.”
Al-Sudani meets in New York with the Yemeni President and the Kuwaiti Crown Prince, stressing the depth of relations
Prime Minister Mohammed Shia al-Sudani stressed, on Sunday, when he received Yemeni President Rashad Mohammed al-Alimi in New York, Iraq's keenness to support Yemen's stability.
The Prime Minister's media office said in a statement received by Shafak News Agency, "Prime Minister Mohammed Shia al-Sudani received this evening, Sunday, Baghdad time, the Chairman of the Presidential Leadership Council of the Republic of Yemen, Rashad Mohammed al-Alimi, on the sidelines of his participation in New York in the meetings of the 79th session of the United Nations General Assembly."
The office pointed out that "the meeting reviewed the overall internal situation in Yemen, the surrounding regional situation, its developments and its impact on the region." According to the office's statement, Al-Sudani pointed to "the depth of the historical and fraternal ties that unite Iraq and Yemen," stressing "Iraq's keenness to support Yemen's stability, the importance of finding solutions through internal dialogue, and providing appropriate conditions for the brotherly Yemeni people to enjoy prosperity and development."
For his part, Al-Alimi welcomed the "reopening of embassies between the two countries, and considered it a supportive step to strengthen fraternal relations and support communication between the two brotherly peoples."
In addition, the media office noted that "Prime Minister Mohammed Shia al-Sudani received this evening, Sunday, Baghdad time, the Crown Prince of the State of Kuwait, Sheikh Sabah Khaled Al-Hamad Al-Sabah, in New York, on the sidelines of his participation in the meetings of the 79th session of the United Nations General Assembly."
Al-Sudani stressed, "The depth of the fraternal relations between Iraq and Kuwait, which the government has established in its program that includes strengthening relations with sister Arab countries, and strengthening the bonds of cooperation with them in various fields." The Prime Minister stressed "Iraq's keenness to advance cooperation with Kuwait, and develop it in a way that achieves bilateral interests."
According to the statement, the two sides stressed "the resumption of the work of the joint technical committees between the two countries."
Prime Minister Mohammed Shia al-Sudani also met, this evening, Sunday, Baghdad time, at the United Nations headquarters in New York, with the United Nations High Commissioner for Human Rights, Volk Türk.
A statement from Al-Sudani's office received by Shafaq News Agency stated that the meeting discussed the qualitative development witnessed by the human rights file in Iraq, as Al-Sudani confirmed that the government views the Universal Periodic Review as an essential mechanism in promoting and protecting human rights, noting that Iraq will discuss its fourth periodic report in January of next year after it voted on it in the last cabinet meeting.
According to the statement, Al-Sudani stressed Iraq's commitment to human rights standards, as a party to international agreements and the International Covenant on Civil and Political Rights, appreciating the efforts of the human rights team working within the UNAMI mission in Iraq, and the breadth of measures implemented by the Iraqi government to preserve the rights of minorities and spectrums of the components of the Iraqi people, and to provide assistance to victims of terrorism and the dictatorial regime.
The Prime Minister stated that Iraq has succeeded in establishing a successful experience in the field of transitional justice, and the government has proceeded with the legal and executive framework for all human rights principles, in accordance with the Iraqi constitution and approved international standards.
For his part, the High Commissioner indicated the Commission's desire to open a representative office in Iraq, in order to raise the level of cooperation in the field of capacity development, technical, economic and social cooperation, and in the field of the environment, according to the statement.
Al-Sudani to Blinken: The region is going through a difficult time and it is necessary to intervene to stop the aggression on Gaza and Lebanon
Prime Minister Mohammed Shia Al-Sudani received, on Monday evening, Baghdad time, US Secretary of State Anthony Blinken, at his residence in New York, on the sidelines of his participation in the meetings of the 79th session of the United Nations General Assembly.
During the meeting, they discussed bilateral relations between the two countries and ways to enhance joint cooperation in various fields, as well as discussing the latest developments in the region, with regard to the recent escalation in Lebanon. His Excellency urged the need to exert all necessary efforts to quell the war and stop the ongoing aggression in Gaza and Lebanon, which threatens to expand the conflict in the region and destabilize regional and international security.
His Excellency stressed that the world and the region are going through a difficult time, and Iraq has repeatedly warned of the consequences of a comprehensive war that could break out at any time due to the lack of solutions on the part of the international community and its relevant institutions, stressing the need for the United Nations to carry out its duties and responsibilities towards the aggressive crimes that Gaza and Lebanon are being subjected to, targeting civilians, especially women and children.
The meeting touched on areas of bilateral cooperation in the energy sector, as well as discussing the file of the international coalition and continuing dialogues to end its presence in Iraq, and moving to build bilateral cooperation relations with the coalition countries, in various fields and sectors.
Prime Minister meets Kenyan President in New York
Prime Minister Mohammed Shia Al-Sudani stressed the need to enhance mutual diplomatic representation between Iraq and Kenya. The Prime
Minister's media office stated in a statement received by Mawazine News that "Prime Minister Mohammed Shia Al-Sudani received at his residence in New York, today, Sunday, the President of the Republic of Kenya, William Ruto, on the sidelines of his participation in the 79th session of the United Nations General Assembly. During the meeting, they discussed bilateral relations between the two countries, supporting their frameworks in many fields, ways to consolidate joint cooperation, and everything that would enhance the interests of their peoples. The two sides also discussed the file of Kenyan workers in Iraq."
The Prime Minister referred to "the foundations of the relationship between Iraq and Kenya, which date back decades," stressing "the need to enhance mutual diplomatic representation and develop the level of fruitful economic partnership."
For his part, the Kenyan President praised "Iraq's pivotal role in the region and its efforts to enhance security and stability in it. He also expressed his country's desire to build the best relations between the two friendly countries in the economic and trade fields."
At the end of the meeting, the two sides exchanged official invitations to visit both countries, in order to develop bilateral relations at various levels and fields.
Washington seeks comprehensive reform of Iraqi banks.. and some sanctioned banks are "defrauding"
Failure to renew the banking system means meeting the Iranian fate
Iraq is trying, through the efforts of the Central Bank, to reassure the American side by applying strict international standards to its banking sector , especially with the imposition of a foreign currency sales window and a package of sanctions on many private banks that violate the controls, while the dollar exchange rate in the parallel market continues to be in a state of anxiety, rising and falling without stability, despite all the regulations being implemented to ease the stranglehold on the smuggling file for years.
Last August, a delegation from the Central Bank of Iraq headed by Governor Ali Al-Alaq traveled to Washington to hold talks with the US Treasury and the Federal Reserve, as well as meetings with MoneyGram, Visa, and MasterCard, as well as State Bank and JP Morgan, and international auditing firms ( KPMG , E&Y , K2i , and Oliver Wyman ) .
According to an official statement by the Central Bank, it indicated that another meeting will be held at the end of this year to discuss the major shift in ending the work of the electronic platform for foreign transfers and replacing it with direct banking relations between Iraqi banks and the network of international correspondent banks, according to the plan in place.
Update banking work
Regarding this, the specialized banker, Mustafa Akram Hantoush, told Al-Jabal, “The United States of America wants to review the entire private banking system, as the financial auditing company that will be contracted with is the one that will prepare a study for this,” indicating that “the meetings of the Central Bank delegation with the American side were good, and one of the international financial auditing companies will work in the Iraqi banking sector.”
He continued, "The Iraqi banking system does not conduct accurate financial operations, but rather transfer operations requested by the Central Bank, which in turn relies on old standards to classify those banks," stressing that " the Central Bank must force banks to work according to international standards, because some of those banks have been around since the nineties of the last century, at a time when it is known that there are Iraqi banks that are considered the best compared to other foreign banks."
Hantoush considered that "the problem also lies in the fact that banking transactions are based on commercial activity and the issue of customs and automation that must be applied at a time when the Central Bank has appealed to banks for the purpose of linking them electronically with customs," noting that "the electronic link with banks will inevitably lead to preventing fraud and increasing state revenues by reducing economic chaos."
The specialized banker said, "The Central Bank of Iraq is now on its way to correcting the course as a first step in the issue of the banks sanctioned by the US," while he explained that "the visit that was made to Washington was serious about resolving the banking crisis and it is a necessary step that was in its place."
It is noteworthy that the Prime Minister, Mohammed Shia Al-Sudani, had received last week the head of the Private Banks Association, in the presence of a number of directors of private banks, and during the meeting he pointed out "the formation of a higher committee to undertake the development of treatments for the work of banks; to be in line with the requirements of work in the international financial arena, confirming the Central Bank's contract with Oliver Wyman Company with the aim of developing the banking and financial sector."
Al-Sudani also directed "the preparation of a draft resolution to be presented to the Council of Ministers, which includes obligating ministries to provide facilities that support the banking sector in Iraq." This was preceded by the announcement by the Central Bank of Iraq of contracting with Oliver Wyman to conduct a comprehensive review of the conditions of Iraqi banks, especially banks prohibited from dealing in the US dollar, in addition to improving the level of banks' procedures in line with international standards.
Since the beginning of 2023, Washington has intervened to limit the smuggling of dollars from Iraq, which led to the dollar price rising in the local market to a record level of 170,000 dinars, then gradually declining and stabilizing at less than 150,000 dinars per 100 dollars, due to the decline in the Central Bank’s sales of dollars, due to its subjection to the international financial system “SWIFT”.
circumventing sanctions
In contrast, the economic analyst, Omar al-Halbousi, interprets the recent visit of the Central Bank delegation to Washington as “the US Treasury Department’s summoning of the Iraqi bank’s management, which came after it was postponed twice during the same month for the purpose of the US administration completing the auditing of data and banking activities in Iraq, which proved the continued circumvention of the imposed sanctions.”
Al-Halbousi added to Al-Jabal that “ the manipulation practiced by some Iraqi banks, especially the sanctioned ones, is fully proven by the Federal Bank and the US Treasury, and they are insisting on the auditing company continuing its work in following up on transfers,” considering that “the financial situation in Iraq is now very worrying and we must be careful not to fall into new US sanctions that will cause the country further economic losses.”
He explained that "the banks that are allowed to conduct financial transfers are not Iraqi and are divided between Jordan, Qatar, the Emirates and Kuwait in cooperation with internal Iraqi banks," stressing that "the acquisition of Iraqi banks by Arab banks is a process that will lead to the entry of new foreign banks into the line of commercial transfers, which will accurately reveal the high financing line that comes out of the current Iraqi banks towards the economic offices and armed factions and will eventually expose them to new sanctions during the coming period."
It is worth noting that the Central Bank of Iraq has been planning for months to gradually cancel the electronic platform for foreign transfers during the current year 2024, until it is completely canceled by the end of the year, and to keep it for auditing and statistical purposes, as part of its efforts to enable Iraqi banks to establish and establish relations with the global and regional banking sector.
The rift between the Iraqi and the banks
Despite the government's attempts to restore confidence between citizens and the banking sector through electronic improvements and the shift to electronic payment, they are still ineffective so far. According to World Bank figures, only 23 percent of Iraqi families have an account in a financial institution, which is one of the lowest percentages in the Arab world, especially since the owners of these accounts are government employees whose salaries are distributed to public banks at the end of each month. However, these salaries also do not remain in the accounts for long, as queues quickly form in front of banks from employees who withdraw their salaries in cash and prefer to keep them at home.
In the same context, economic researcher, Nabil Al-Ali, during his interview with “Al-Jabal”, believes that “the recent Iraqi-American negotiations appeared positively through the statement of the Central Bank of Iraq because the latter tried during the past period to expand the base of banks that work directly with American correspondent banks,” stressing that “the situation is going positively because the work depends on the non-sanctioned banks and operates according to a clear system and is far from the methods of the sanctioned banks that do not develop regarding their return to dealings.”
Iranian destiny
Al-Ali pointed out that "the Central Bank will succeed in one way or another if it is able to conduct transfers to banks at a rate that covers 90 percent of the volume of Iraqi trade, and what it cannot cover will be linked to the countries sanctioned by the US, such as Iran, which produced the parallel market and raised the prices of goods as a result of the conflict between the dollar and the dinar," stressing that "the Iraqi Central Bank controlled the dollar crisis at a certain rate related to the prices of goods that come at the official price, which made them decrease after they were imported at the parallel exchange rate."
The list of banks banned in Iraq from dealing in the US dollar includes a large number of Islamic and commercial banks, including Elaf Islamic Bank, Al-Qirtas Islamic Bank for Investment and Finance, and Bank Melli Iran, as these banks cannot deal in the dollar, while they can deal in the Iraqi dinar and other currencies.
The Central Bank is responsible for determining which banks are banned in Iraq, in addition to announcing the reasons for the ban. This is a group of banks that have been announced to be banned from using the US dollar in their transactions, and their number has reached more than 20 different banks after they were included on the US sanctions list.
Iraq Plans Currency Redenomination Amid Economic Challenges
The Central Bank of Iraq (CBI) has announced that discussions regarding the project to remove zeros from the Iraqi dinar are ongoing, with assessments continuing. The bank also noted a reduction in reliance on the US dollar for trade transactions.
Ali Mohsen al-Alaq, Governor of Iraq's Central Bank, stated that the bank is facing global economic challenges, such as rising energy and raw material prices.
To address these issues, it has amended some monetary policies in line with the international situation, aiming to increase confidence in the Iraqi dinar and prevent a significant decline in its value.
The central bank has also increased its holdings of foreign currency and gold reserves to enhance the country's financial stability and its ability to cope with economic crises in any situation, he added.
Many countries remove zeros from their currencies to revalue the national currency and facilitate financial transactions. This process involves eliminating a certain number of zeros from the nominal value of the currency, making it less inflationary and more stable.
Earlier this year, the Iraqi federal government decided to postpone a plan to remove three zeros from the nominal value of its currency notes, citing that the current economic climate is not suitable.
Last year, the central bank indicated plans to redenominate the Iraqi dinar to simplify financial transactions in an economy that remains heavily centralized and oil-dominated, where deals are often conducted in cash.
Removing zeros from the Iraqi dinar is back in the spotlight..Strengthening the currency or just changing its form?
this has even more information
Talk has returned again about the process of removing zeros from the local Iraqi currency, as the Central Bank of Iraq confirmed that the project to remove zeros from the dinar is subject to continuous review and study.
Countries remove zeros from their currency to revalue their national currency and simplify financial transactions. This is done by removing a specific number of zeros from the nominal value of the currency, making it appear less inflationary and more stable.
The central banks of these countries usually issue a new currency, equal in value to one hundred thousand or one million of the old currency, with the old currency gradually being withdrawn from the markets, after a period in which the two currencies are allowed to be used side by side. The most famous countries that have implemented this process, more than once, successfully were Turkey and the former Yugoslavia.
In his statements, Ali Mohsen Al-Alaq, Governor of the Central Bank of Iraq, considered that the bank responded to global economic challenges such as rising energy and raw material prices by amending some monetary policies in line with the international situation and to enhance confidence in the Iraqi dinar and prevent a sharp decline in its value.
Al-Alaq pointed out that the Central Bank of Iraq increased its holdings of foreign exchange and gold reserves to strengthen the country's financial position and stability, in order to enhance its ability to confront potential economic crises.
Commenting on this, economic researcher Ali Daadoush said in an interview with Al-Mada, “The process of deleting zeros is linked to the Central Bank of Iraq,” indicating that “the issue is not new and was previously discussed about 14 years ago. “
Daadoush pointed out that "the process of deleting prices is psychological, as the commodity worth a thousand dinars will be worth one dinar and remain at the same value."
The economic researcher pointed out that "removing zeros leads to flexible dealing with the local currency and strengthens it, and may lead to increased production and diversification of the economy, and thus enhance the value of the Iraqi dinar."
For his part, economic affairs expert Mustafa Hantoush said in an interview with Al-Mada, “The issue of removing zeros from the Iraqi currency is only arithmetic and keeps the currency at the same value. That is, when you sell a house for 100 million, it will be sold for 100 thousand.”
Hantoush added that "countries resort to deleting zeros when there is an expansion in the value of the printed currency and problems occur in the book value and accounting entries, for the purpose of restoring accounting balances."
The economic researcher went on to say, “Iraq is currently suffering from problems with the exchange rate,” indicating that “the value of printing and replacing the currency costs Iraq time, effort and millions of dollars.”
Hantoush said, “The situation now requires focusing on how to maintain the value of the Iraqi currency against foreign currencies.”
According to the latest data, the Central Bank of Iraq's foreign reserves cover 83.62% of the broad money supply, which covers the cost of importing 15 months, while the global standard rate is 20%, covering 6 months of importing.
Foreign exchange reserves are a tool used by all central banks to maintain the stability of the local currency exchange rate against foreign currencies, as well as to reduce exposure to external crises by maintaining liquidity in foreign currency to absorb shocks in times of crisis.
The Iraqi currency is under great pressure, which has caused its price to decline against the dollar during the past period, including the increase in the Iraqi budget deficit. Two weeks ago, Mazhar Salih, financial advisor to Iraqi Prime Minister Mohammed Shia al-Sudani, said that Iraq will face a budget crisis in 2025 due to the decline in oil prices, the country's main source of revenue. Salih said in an interview with Reuters: “We do not expect major problems in 2024, but we need stricter financial discipline in 2025.”
Retroactively.. Starting the procedures for disbursing the student grant
The Ministry of Education has begun financial procedures to launch the student grant, noting that it will be disbursed retroactively from the beginning of the current academic year.
The official spokesman for the Ministry of Education, Karim Al-Sayed, told the official newspaper, “The student grant amounts are included in the current year’s budget and are secured for those covered by it.”
He explained that "the current academic year 2024-2025 will be easier and better in terms of distributing the grant amounts among students compared to the last academic year, because the ministry has a special approved and official database that was prepared during the past year and I will adopt it after making some updates to it and verifying the names of those included."
He pointed out that "the Ministry is keen to distribute the student grant to those who deserve it, as it enhances the scientific aspect of students and pupils who are below the poverty line, in addition to enhancing their health aspect, in addition to its contribution to reduce the phenomenon of school dropouts."
Pentagon warns of regional war, announces sending US forces to Middle East
The US Department of Defense (Pentagon) warned, on Monday, September 23, 2024, of the escalation between Israel and the Lebanese Hezbollah turning into a "regional war."
The Pentagon said: "The escalation between Israel and Hezbollah raises the possibility of the situation getting out of control and turning into a regional war."
She stressed "her support for Israel's right to defend itself, but we stress the need to work through diplomatic channels."
She explained that she "made clear to the Israelis the importance of reducing tension and finding a diplomatic solution to ensure the return of residents on both sides of the border."
The Pentagon revealed that "a small number of troops are being sent to reinforce US forces in the Middle East."
The intensity of the Israeli bombing of Lebanon increased today, Monday, as it carried out about 100 raids on southern towns. The bombing also extended to the Bekaa region in addition to the city of Byblos for the first time.
Today's Israeli operations in Lebanon are the most dangerous escalation since Hezbollah's involvement in the war that erupted in Gaza on October 7, recording new human losses in its ranks.
In the latest statistics of victims, the Lebanese Ministry of Health announced the martyrdom of 356 people and the injury of 1,246 others as a result of the Israeli raids on the south and east of the country.
Central Bank of Iraq launches Financial Sustainability Map Project
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, said on the sidelines of the launch ceremony: The Central Bank plays an important role in supporting the development, growth and financial stability of Iraqi banks, while ensuring that their environmental, social and governance performance is consistent with international standards.
The Governor stressed that the Central Bank is implementing this guide, which is unique in the Middle East region, praising the role of the International Finance Corporation and the Kingdom of the Netherlands in helping Iraq implement these programs.
In turn, Fawaz Al-Bilbeisi, Director of the International Finance Corporation in the Kingdom of Saudi Arabia, Iraq and Lebanon, said that this partnership represents a milestone in Iraq's strategic approach to sustainable financing, and demonstrates the IFC's commitment to partnering with the Central Bank and the banking sector in Iraq to strengthen the country's financial infrastructure and increase the competitiveness of its banks.
He noted that the Environmental, Social and Governance Regulation will help banks improve their performance.
The first session witnessed the strengthening of the Iraqi banking sector for a sustainable future and investment, which addressed the bank’s journey to prepare a roadmap for financial sustainability, while the second session witnessed the possibility of managing environmental and social risks as a focus for change in the Iraqi banking sector.
Media Office
September 23, 2024
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