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https://almaalomah.me/2022/07/19/609258/
Deep concern” .. The Central Bank expects a 4% drop in Iraqi GDP due to drought
economic 2022/07/19 | 5:33 pm
Information / Baghdad..
The Director General of the Investment Department of the Central Bank of Iraq expected that the real GDP of Iraq would decrease by 4%, due to the problems of climate change and high temperatures, which coincide with the contradiction of Iraq's water shares from the Tigris and Euphrates.
“Central banks are necessary to combat climate change, although it is difficult for central banks to integrate climate change risks into their analytical and modeling frameworks, but they still play a role in acting,” Ahmed said in an article on the banking development website omfif.
Studying the effects of climate change and encouraging the transition to a green economy can do all this while maintaining an effective financial system and managing inflation, interest rates, growth, prudential policy and behavioral incentives.” He added,
“Climate-related risks add distinct challenges for central banks.
The first problem is one of the reliable information about a green transition.
Second, the real risks of climate change and a turbulent green transition may not be linear and manifest in the medium to long term.
Third, the future of change is difficult to predict. environment and work that is highly dependent on political events.” He continued,
"Central banks have various ways to mitigate climate-related risks,
they can reduce the size of polluting companies and support new companies that aim to reduce carbon emissions through financing channels, and
they can help spark broader reform –
central banks can constrain the ability of commercial banks to provide Financing for companies with a high carbon footprint while providing low-interest loans for green and renewable energy projects.
Given this, the focus is now on macroprudential management, guidelines, management assumptions and stress testing with greener monetary policy.” He warned that
“the Central Bank of Iraq is deeply concerned about the impact of climate change on the Iraqi economy after the dramatic weather events – with record temperatures exceeding 50 degrees –
Iraq experienced dry land and a shortage of clean water from the Tigris and Euphrates rivers and groundwater,
we estimate that these trends It could lead to a 4% decrease in Iraq’s real GDP, regardless of any gains in GDP levels due to higher oil prices.” He cautioned that
“the Central Bank operates in one of the largest oil-exporting countries in the world and relies heavily on crude oil revenues, which constitute more than 95% of Iraq’s fiscal budget and about 60% of its gross domestic product.
However, the significant risks posed by climate change It prompted the Central Bank to take urgent action, for example,
we are currently providing 1 trillion Iraqi dinars ($690 million) with low interest and soft-term loans for water, green and renewable energy projects.” He noted that
“loans will be provided through local banks.
In addition, we are working with local government partners to raise awareness about the economic impacts of climate-related risks on the Iraqi people.
We hope that by taking such an approach, we can avoid accelerating the severity of climate risks.” and cooperate with government, media and private organizations to achieve the necessary cultural change.” finished/25h
Deep concern” .. The Central Bank expects a 4% drop in Iraqi GDP due to drought
economic 2022/07/19 | 5:33 pm
Information / Baghdad..
The Director General of the Investment Department of the Central Bank of Iraq expected that the real GDP of Iraq would decrease by 4%, due to the problems of climate change and high temperatures, which coincide with the contradiction of Iraq's water shares from the Tigris and Euphrates.
“Central banks are necessary to combat climate change, although it is difficult for central banks to integrate climate change risks into their analytical and modeling frameworks, but they still play a role in acting,” Ahmed said in an article on the banking development website omfif.
Studying the effects of climate change and encouraging the transition to a green economy can do all this while maintaining an effective financial system and managing inflation, interest rates, growth, prudential policy and behavioral incentives.” He added,
“Climate-related risks add distinct challenges for central banks.
The first problem is one of the reliable information about a green transition.
Second, the real risks of climate change and a turbulent green transition may not be linear and manifest in the medium to long term.
Third, the future of change is difficult to predict. environment and work that is highly dependent on political events.” He continued,
"Central banks have various ways to mitigate climate-related risks,
they can reduce the size of polluting companies and support new companies that aim to reduce carbon emissions through financing channels, and
they can help spark broader reform –
central banks can constrain the ability of commercial banks to provide Financing for companies with a high carbon footprint while providing low-interest loans for green and renewable energy projects.
Given this, the focus is now on macroprudential management, guidelines, management assumptions and stress testing with greener monetary policy.” He warned that
“the Central Bank of Iraq is deeply concerned about the impact of climate change on the Iraqi economy after the dramatic weather events – with record temperatures exceeding 50 degrees –
Iraq experienced dry land and a shortage of clean water from the Tigris and Euphrates rivers and groundwater,
we estimate that these trends It could lead to a 4% decrease in Iraq’s real GDP, regardless of any gains in GDP levels due to higher oil prices.” He cautioned that
“the Central Bank operates in one of the largest oil-exporting countries in the world and relies heavily on crude oil revenues, which constitute more than 95% of Iraq’s fiscal budget and about 60% of its gross domestic product.
However, the significant risks posed by climate change It prompted the Central Bank to take urgent action, for example,
we are currently providing 1 trillion Iraqi dinars ($690 million) with low interest and soft-term loans for water, green and renewable energy projects.” He noted that
“loans will be provided through local banks.
In addition, we are working with local government partners to raise awareness about the economic impacts of climate-related risks on the Iraqi people.
We hope that by taking such an approach, we can avoid accelerating the severity of climate risks.” and cooperate with government, media and private organizations to achieve the necessary cultural change.” finished/25h
