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The Latest Central Bank Iraq News – currency, banking, dinar, reserves, prices, inflation, IQD, revaluation, redenomination – brought to you by Iraq Business News

“Influential Figures” Manipulating Dinar Exchange Rate

By John Lee.

An MP and member of the Parliamentary Economic and Investment Committee, Aziz Sharif al-Mayahi, has demanded that the Iraqi Central Bank dismiss and replace some “influential figures” in the Bank who allegedly manipulate the exchange rate of the Iraqi dinar against the US dollar.

The article in AIN refers to what it calls an “unreasonable rise (sic) in the exchange rate of the Iraqi dinar”.

Mayahi said “The Iraqi Central Bank is not serious in coping with this problem because it adopts routine and useless measures in this regard.”

The Head of the Central Bank, Sinan Shibibi, attributed the weakness of the Iraqi dinar to the weakness of the local production and the lack of Iraqi exports (except oil), in addition to weakness of the government’s efforts to attract foreign capital, and the unstable political situation internally and regionally.

(Source: AIN)

Posted in Banking & Finance, Industry & TradeComments (1)

Deleting Zeros from Dinar “Needs Further Deliberations”

The Iraqi Central Bank (ICB) said on Sunday that the deletion of zeros from the currency still needs further deliberations with relevant institutions, according to a report from AKnews.

The ICB added that it is seeking to make the Iraqi currency stronger and more stable through new mechanisms with regard to dealing with banks for hard currency.

ICB deputy governor Muzher Mohammed said:

The main task of the ICB is to keep and maintain the stability of the currency and support the Iraqi dinar … A new plan is followed to deal with the banks with regard to converting the foreign currency to their customers, where the ICB provides the banks with the foreign currency depending on the amount of their capital … The banks will audit the transactions instead of being handled by the ICB on the condition of serving the Iraqi economy.

(Source: AKnews)

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Parliament and Finance Cmte Support “Revalue” (sic) of Iraqi Dinar

The Iraqi Parliament and the Finance Committee support the Central Bank of Iraq (CBI)’s efforts to revalue of the Iraqi Dinar through the removal of three zeros from the currency, according to a report from AKnews.

The CBI has announced that it has finalized plans to remove three zeros from the Iraqi currency in order to revalue it. The smallest unit of the current Iraqi current is 250 Iraqi Dinars which is equivalent to $0.20.

The removal of three zeros is expected to raise the value of the Dinar as well as facilitate dealing with the currency and the payroll system in the country.

The Iraqi government and the securities committee have raised concerns that the process will negatively affect the Iraqi stock market.

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Iraq’s Core Inflation Slows

Trade Arabia reports that Iraq’s core inflation slowed to 6.2 per cent in May, down from 6.7 per cent in April.

The fall was due to a drop in the costs of food and housing said Mudher Kasim, deputy governor of the central bank.

In April, the country saw high annual inflation mainly due to the housing sector and to fluctuations in the exchange rate. “Core inflation” is a measure that strips out fuel prices.

(Source: Trade Arabia)

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ICB Grants Licences to Private Banks for more Branches

The Iraqi Central Bank (ICB) said it is granting licences to “a limited number” of private banks to increase their branches in Iraq.

Deputy governor Muzher Mohammed Saleh said more than 40 banks were granted the licences.

Iraq has about 800 bank branches, and the ICB has required all banks to have at least 250 billion IQD ($215 million) in capital by the end of June.

Warka Bank, which has several branches in Iraq, was recently placed under the guardianship of the ICB following major financial problems.

(Source: AKnews)

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Iraqi Banks Must Increase Capital This Month

The deputy governor of the Iraqi Central Bank (ICB), Muzher Mohammed Saleh, has set a deadline for all banks in Iraq to increase their capital to at least 250bn IQD ($215m).

He said: “We asked all banks in Iraq to increase their capital this month to strengthen their dealings and give more loans.”

According to the report from AKnews, there are more than 50 banks in Iraq, with more than 800 branches spread across the provinces, a figure that is considered low compared to the size of the population.

(Source: AKnews)

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Iraq begins Paying Warka Bank Depositors

The Central Bank of Iraq (ICB) said on Monday that it has begun to pay the small depositors in Warka Ahli Bank for Investment, reports AKnews.

Following a financial crisis, the bank was placed under ‘guardianship’ in March.

The Deputy governor of the bank, Muzher Mohammed Saleh said:

There is payment for small depositors in Warka Bank and this payment depends on the rate of sale of real estate and some property belonging to the bank. Warka Bank is still under the custody of the ICB which is awaiting the report of the financial supervisor to decide whether the bank will return to work or not.

According to some reports, Warka Bank wanted to free itself from its financial crisis by negotiating with the British-based bank Standard Chartered to sell some of its shares, but the talks reached a dead end.

According to law, the guardian assigned by the ICB can request the Minister of Finance, through the ICB, to save the bank if possible.

(Source: AKnews)

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UAE’s Construction Tech Wins $47m Deals in Iraq

Construction Tech, part of the UAE-based Tech Group, has won two significant deals in Iraq totaling over $47 million, according to a report from Trade Arabia.

The bigger of the contracts is a $45 million deal to revamp the Central Bank of Iraq, while there is also a $2.15 million agreement with Shell to support development of its main office in Burjisia, Basra.

Construction Tech will undertake extensive reconstruction of the exterior of the Central Bank, overhaul elevators, and update IT systems, with assistance from other parts of the group, such as Elevators-Tech, MEP Tech and Wood Tech.

Under the agreement with Shell, the company will supply and erect the main office building for its operations at the Majnoon oil field.

Ghaleb Kamel Jaber, vice chairman and partner of Tech Group, said:

Winning these contracts signifies the increasing presence of the UAE-based companies in the infrastructure development and maintenance activities in Iraq. For Tech Group, these projects will help us further firm up our presence in Iraq across various construction and redevelopment opportunities.

Ali Ghaleb Jaber (pictured), Group CEO, said:

We consider winning these two contracts in Iraq within a short span of time ever since we made our presence in that country a testimony to the capabilities of the group as a whole and specifically an endorsement to the expertise of Construction Tech.”

“We are now one of the major players in Iraq’s construction and infrastructure development activities with a line-up of significant projects under our portfolio. We are also present in the oil sector now with significant wins.

(Source: Trade Arabia)

Posted in Construction & Engineering, Oil & GasComments Off

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