Home
Our financial and banking system and the global economy
Economical 07/16/2024
Samir Al-Nusairi
Most of the countries of the world have been suffering from successive economic crises since 2020 until the present.
They are the harshest and most harmful to the countries’ economies than the previous crises that swept the world previously, which began with the lockdown crisis as a result of the Corona pandemic and the (stagflation) crisis due to food shortages, high prices, the Russian-Ukrainian war, and economic conflicts between... America and China, most recently the Zionist war on Gaza and the occupied Palestinian territories, expectations of a new aggression against Lebanon, the struggle to control oil prices, and the attempts of the affected countries to find plans and deals to control this rise that has occurred over the past years.
From our follow-up, monitoring and analysis of the movement of the global economy,
we notice that most countries in the world have increased inflation rates and exceeded one rank, and economic growth rates have decreased, especially regional countries and most countries with major economies and even emerging countries have tried to form new axes, poles and economic blocs and conclude agreements between themselves and other countries for transactions.
Trade and finance outside the Group of Seven major countries, such as the BRICS bloc.
The central banks in most countries have taken difficult decisions in order to control the prices of their local currencies from falling and maintain their foreign currency reserves at safe rates, thus reducing stagflation and maintaining relatively stable prices and economic growth balanced with economic conditions.
Currently prevailing by raising interest rates at a rate that is commensurate with its economic situation.
Therefore, as far as the matter is concerned with Iraq’s economic situation, although the reports of the World Bank and the International Monetary Fund to evaluate the Iraqi economy for the current year indicate that the inflation rate did not exceed 3 percent, and according to what the
Central Bank announced, it is better than the inflation rates in the regional and neighboring countries and that the growth rate in output The gross domestic product for this year is expected to be 6 percent, and
Iraq still maintains a good foreign exchange reserve to cover its imports and cover its local currency in circulation.
However, it is a one-sided economy and
depends on oil revenues, and
its financial and banking sector is weak and suffers from sanctions and restrictions on the use of the US dollar in foreign banking transactions, and still
Its credit rating is within limits that are internationally classified as unstable and in the absence of...
New policy measures: The public finance deficit is expected to reach 7.6 percent in 2024 and expand further after that with the expected decline in oil prices in the medium term.
As a result, public debt will almost double from 44 percent in 2023 to 86 percent by 2029.
The sector also The real sector suffers from many problems that prevent it from achieving the necessary revenues to reduce the share of oil revenues in public budgets.
This means that the deficit in the balance of payments and the deficit in the trade balance are prevalent despite the fact that the government, finance and central bank are making great efforts to rebuild a solid and solid banking sector because
without the existence of a sector With developed banking, it is not possible to build a sound national economy.
The inherited and complex problem is the weak compliance of the Iraqi financial and banking sector with international standards, and the
foreign trade policy is unclear despite the measures taken by the Central Bank to regulate trade financing and the accreditation of some reputable foreign registered banks, but the
presence of informal border crossings and intra-trade is not Legitimate speculators in the foreign exchange trading market have led to fluctuations in exchange rates from time to time.
For the purpose of the Central Bank exercising its role in
reducing inflation,
controlling the general level of prices,
maintaining the dinar exchange rate within its target limits,
controlling the interest rate, and
maintaining its foreign cash reserves within the required rates, as well as
controlling the money supply, and certainly
all of these aspects are within the goals and interests of the Central Bank.
Its Board of Directors during the next stage and for the purpose of avoiding the harm that currently threatens the global economy.
This requires taking bold steps, as follows:
First - reconsider the structure and presentation of the general budget and determine the contribution percentages of the agricultural, industrial, tourism sectors and non-oil revenues at no less than 30 percent during the coming years until 2030.
The total expenditures must not exceed the total revenues in any case and the deficit must be zero.
Second - Adopting agricultural, industrial and commercial policies that are consistent with the trend to support and support the private sector and stimulate and encourage it to contribute to sustainable development projects and move to market leadership in 2030.
Third - Recreating a new strategy for the Central Bank for the years (27-2030) in the field of
monetary policy applications,
enhancing financial inclusion,
controlling exchange rate stability,
enhancing compliance with international standards,
comprehensive application of digital transformation in the banking sector, and
transforming Iraqi government banks into mixed joint-stock companies
in accordance with government procedures in this regard. Relevant and internationally classified.
It is managed in accordance with
modern banking techniques,
lifting sanctions on private banks,
developing their work in accordance with international standards,
not allowing the weak ones to remain working within the banking market, and
adopting the principle of competing for whichever is better and serving sustainable development.
https://alsabaah.iq/99579-.html
Economical 07/16/2024
Samir Al-Nusairi
Most of the countries of the world have been suffering from successive economic crises since 2020 until the present.
They are the harshest and most harmful to the countries’ economies than the previous crises that swept the world previously, which began with the lockdown crisis as a result of the Corona pandemic and the (stagflation) crisis due to food shortages, high prices, the Russian-Ukrainian war, and economic conflicts between... America and China, most recently the Zionist war on Gaza and the occupied Palestinian territories, expectations of a new aggression against Lebanon, the struggle to control oil prices, and the attempts of the affected countries to find plans and deals to control this rise that has occurred over the past years.
From our follow-up, monitoring and analysis of the movement of the global economy,
we notice that most countries in the world have increased inflation rates and exceeded one rank, and economic growth rates have decreased, especially regional countries and most countries with major economies and even emerging countries have tried to form new axes, poles and economic blocs and conclude agreements between themselves and other countries for transactions.
Trade and finance outside the Group of Seven major countries, such as the BRICS bloc.
The central banks in most countries have taken difficult decisions in order to control the prices of their local currencies from falling and maintain their foreign currency reserves at safe rates, thus reducing stagflation and maintaining relatively stable prices and economic growth balanced with economic conditions.
Currently prevailing by raising interest rates at a rate that is commensurate with its economic situation.
Therefore, as far as the matter is concerned with Iraq’s economic situation, although the reports of the World Bank and the International Monetary Fund to evaluate the Iraqi economy for the current year indicate that the inflation rate did not exceed 3 percent, and according to what the
Central Bank announced, it is better than the inflation rates in the regional and neighboring countries and that the growth rate in output The gross domestic product for this year is expected to be 6 percent, and
Iraq still maintains a good foreign exchange reserve to cover its imports and cover its local currency in circulation.
However, it is a one-sided economy and
depends on oil revenues, and
its financial and banking sector is weak and suffers from sanctions and restrictions on the use of the US dollar in foreign banking transactions, and still
Its credit rating is within limits that are internationally classified as unstable and in the absence of...
New policy measures: The public finance deficit is expected to reach 7.6 percent in 2024 and expand further after that with the expected decline in oil prices in the medium term.
As a result, public debt will almost double from 44 percent in 2023 to 86 percent by 2029.
The sector also The real sector suffers from many problems that prevent it from achieving the necessary revenues to reduce the share of oil revenues in public budgets.
This means that the deficit in the balance of payments and the deficit in the trade balance are prevalent despite the fact that the government, finance and central bank are making great efforts to rebuild a solid and solid banking sector because
without the existence of a sector With developed banking, it is not possible to build a sound national economy.
The inherited and complex problem is the weak compliance of the Iraqi financial and banking sector with international standards, and the
foreign trade policy is unclear despite the measures taken by the Central Bank to regulate trade financing and the accreditation of some reputable foreign registered banks, but the
presence of informal border crossings and intra-trade is not Legitimate speculators in the foreign exchange trading market have led to fluctuations in exchange rates from time to time.
For the purpose of the Central Bank exercising its role in
reducing inflation,
controlling the general level of prices,
maintaining the dinar exchange rate within its target limits,
controlling the interest rate, and
maintaining its foreign cash reserves within the required rates, as well as
controlling the money supply, and certainly
all of these aspects are within the goals and interests of the Central Bank.
Its Board of Directors during the next stage and for the purpose of avoiding the harm that currently threatens the global economy.
This requires taking bold steps, as follows:
First - reconsider the structure and presentation of the general budget and determine the contribution percentages of the agricultural, industrial, tourism sectors and non-oil revenues at no less than 30 percent during the coming years until 2030.
The total expenditures must not exceed the total revenues in any case and the deficit must be zero.
Second - Adopting agricultural, industrial and commercial policies that are consistent with the trend to support and support the private sector and stimulate and encourage it to contribute to sustainable development projects and move to market leadership in 2030.
Third - Recreating a new strategy for the Central Bank for the years (27-2030) in the field of
monetary policy applications,
enhancing financial inclusion,
controlling exchange rate stability,
enhancing compliance with international standards,
comprehensive application of digital transformation in the banking sector, and
transforming Iraqi government banks into mixed joint-stock companies
in accordance with government procedures in this regard. Relevant and internationally classified.
It is managed in accordance with
modern banking techniques,
lifting sanctions on private banks,
developing their work in accordance with international standards,
not allowing the weak ones to remain working within the banking market, and
adopting the principle of competing for whichever is better and serving sustainable development.
https://alsabaah.iq/99579-.html
