Iraqi Dinar/US Dollar auction results 10-28-2020
Iraqi Dinar/US Dollar auction results 10-28-2020
The results of the foreign currency sale window on Wednesday 10/28/2020, and executed today
Advertisement No. (4284)
Sale date – Wednesday 10/28/2020 and executed today
the details
Amount
Total sale for the purposes of enhancing funds abroad (transfers, credits)
157,497,000
Total cash sale
21,200,000
Total total sales
178,697,000
Note that:
The sale price of the sums transferred to bank accounts abroad is ( 1190 ) dinars per dollar.
The cash sale price is ( 1190 ) dinars per dollar.
cbi.iq/currency_auction/view/898
Iraq’s economy is under pressure from corruption and unemployment, so what do international institutions say?
A bleak picture of growth prospects, amid warnings of instability and widespread poverty
Kefaya Olier is a journalist
Wednesday 28 October 2020 15:00
The World Bank announced its readiness to support Iraq (Reuters)
The Iraqi economy faces a number of challenges, starting from the deteriorating security situation in the country and the significant decline in oil prices, to geopolitical tensions and social unrest in the context of poor public services and the lack of progress in combating rampant corruption, not to mention the widespread poverty and unemployment among the population. Reconstruction after many years of wars, and a faltering economic recovery that faces today the repercussions of the painful Corona crisis.
In this report, we monitor the vision of major international institutions for the economy of the state of Mesopotamia, the first cultural and commercial centers in the world before successive regimes that caused the depletion of Iraq and put its people in the cycle of poverty and unemployment for decades to come. Achieving peace, stability and better living standards for its citizens and a return to past growth rates. Its reports also suggested strategic paths through which Iraq could free itself from the fragile reality it lives today.
The World Bank
The World Bank says that Iraq today stands at a crossroads. Almost two decades after the 2003 war, the country is still stuck in a fragile reality, and faces increasing political instability, mounting social unrest, and an increasingly deep gap between state and citizen. And in the midst of a number of crises; Including falling oil prices, the Corona pandemic, and recent protests. This is in addition to the accumulation of the effects of weak economic policies, the absence of reforms, and the inability to address corruption. Iraq is now experiencing its worst annual GDP growth performance in 2020 since the fall of Saddam Hussein’s regime. Instability, lack of employment opportunities, corruption and poor service delivery remain among the most important risks surrounding the country’s long-term growth.
The bank expected that the Iraqi economy would contract in 2020 due to the drop in oil prices and the outbreak of the Covid-19 pandemic. As a result, the double deficit is likely to increase, reflecting the downward trend of public debt, and increasing pressure on the exchange rate and central bank reserves.
The World Bank pointed out in its report that weak oil prices, lack of budget flexibility, as well as curtailing programs that encourage growth and slow implementation of structural reforms, all of which pose major risks facing the country’s economic prospects, and constitute an obstacle to enhancing human capital formation and job creation.
He added that, in light of this multi-faceted crisis, the growth rate in Iraq is expected to contract by 9.5 percent during 2020, which is the worst annual performance since 2003. As the oil GDP records a 12 percent contraction amid the constraints of the OPEC-producer agreement. From abroad, to reduce production, while the non-oil GDP shrinks by 5 percent due to the impact of the service sectors with measures to limit the spread of the pandemic, especially the very important religious tourism sector.
The report indicated that the weak domestic demand and the depreciation of the Iranian and Turkish currencies against the Iraqi dinar led to curbing the rate of inflation, indicating that the overall and base inflation rate did not register an increase of only 0.4% and 0.7% during the first seven months of 2020 on an annual basis. .
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The bank said that the future prospects for Iraq are characterized by a high degree of fragility and depend on the development of global oil markets, the ability of the Iraqi health care system to respond to this pandemic, and the reform process.
Despite the bleak picture drawn by the bank, it gave a glimmer of hope by saying that if conditions improve, the growth rate is expected to gradually return to between 2.0 and 7.3 percent between 2021 and 2022 with the expectation of a recovery in the non-oil economy. To score an average of 4 percent in the same period. The recovery in domestic demand is expected to increase the rate of inflation by an annual average of 2 percent over the same period.
In April, the World Bank announced its readiness to support Iraq and restructure the loans granted, in a way that would contribute to protecting vulnerable segments of society.
The Resident Representative of the World Bank in Iraq, Ramzi Numan, said during a meeting with the Iraqi Minister of Planning, Nuri al-Dulaimi, that the World Bank seeks to provide an integrated vision to address the future repercussions that will result from the Corona crisis, including the high rates of poverty and unemployment as a result of the economic downturn, the decline in growth rates, and the decline in gross domestic product. .
He indicated that the World Bank is ready to provide possible support and restructure the loans granted to Iraq, in a way that contributes to protecting vulnerable segments of society, indicating that 11 Iraqi governorates are included in the Social Fund for Development project that supports the Iraqi government’s strategic plans to alleviate poverty.
Monetary Fund
The International Monetary Fund believes that the end of the war on ISIS and overcoming long-standing socio-economic problems, and linking this to a strong return of oil prices, may all constitute an opportunity to rebuild Iraq, which according to the Fund faces enormous challenges.
The Fund stated that the wheel of economic recovery in Iraq is still moving at a slow pace, and reconstruction projects are very limited, after the war has ended, while large current spending strengthens the risks that threaten the Iraqi economy, which puts public funds and the reserves of the Central Bank on a path that cannot be supported Its continuity. The report, issued in 2019, stressed the importance of combating corruption in order to enhance the effectiveness of public institutions, and to support investment efforts and job creation on the part of the private sector.
In the financial sector, the Fund called on the Iraqi government to create a strong plan to restructure the large public sector banks, and the associated strengthening of banking supervision, which he said has become a necessity to ensure financial stability, and also called for strengthening financial development and inclusion, and establishing stronger controls to combat Money laundering and terrorist financing, and strengthening oversight operations, which will help Iraq prevent abuse of the country’s financial sector for the purposes of reaping criminal proceeds from money laundering and terrorist financing.
The IMF believes that addressing weaknesses in governance and the weaknesses through which corruption is spread is a very important factor in achieving the goals. As a first step, the Fund urged the Iraqi authorities to develop a holistic understanding of corruption risks in the country, and then work to implement policies to eliminate these risks in a coherent and coordinated manner.
Stressing the need to strengthen the legislative framework in order to effectively prevent officials from misusing their positions, or misusing state resources. To this end, the fund proposed to expedite the passage of laws that enhance the enforcement of the financial disclosure system, criminalize illicit gain, the need to ensure the independence and integrity of the bodies working in the field of anti-corruption, and the necessity to activate the anti-money laundering and terrorist financing system to support anti-corruption efforts.
Transparency International
As for Transparency International, it focused in its report on the widespread unemployment among Iraqi youth, the decline in freedoms, including media freedoms, and the dominance of sectarian groups in the country, which reinforced societal division.
The organization said that the high rates of youth unemployment and the meager reform efforts were the reason behind the descent of thousands of Iraqi youths to the streets in early October of last year. Horrific scenes of violent repression ensued, as security forces used live ammunition against crowds of peaceful protesters, killing more than 100 and wounding thousands.
The organization’s report, issued last year, said that sectarian groups in the country have dominated politics in Iraq since the US overthrew Saddam Hussein in 2003. The entrenched power between these groups has divided the population and created space for political parties to control more areas of life, which affects In everything from job opportunities to distributing government contracts, the country is fertile ground for corruption.
The organization indicated the closure of the US-backed Al Hurra channel last September after it published reports of rampant corruption among sectarian groups. The Iraqi government called for respecting basic rights and freedoms, such as freedom of assembly, protest and expression, and called on it to support Iraq’s struggle against corruption.
International Finance Corporation
Iraq is one of the priorities of the International Finance Corporation in the Middle East. The corporation has funded about 10 projects in the country covering telecommunications, industry, water and hotels, among other sectors. It is also studying more investment opportunities in the energy and manufacturing sectors. The investments of the International Finance Corporation have grown significantly over the past nine years, as the corporation has invested $ 1.5 billion in Iraq, the amount includes joint investments with other parties, and its current project portfolio is $ 330 million. These projects focus particularly on improving access to critical infrastructure and supporting the manufacturing sector.
The International Finance Corporation, a member of the World Bank Group, said that years of war and lack of investment have crippled Iraq’s energy infrastructure, which led to frequent power outages and stifled economic growth. And she talked about the country’s public sector’s lack of the necessary resources to finance the reconstruction.
The corporation had also provided a financing package of $ 375 million to the Iraqi private energy company, Mass Global Energy, Sulaimaniyah, in a step towards strengthening the energy infrastructure in the region and its residents.
independentarabia.com