Samson » November 14th, 2016
Monday 14th November, 2016
The Central Bank of Iraq (CBI)disclosed that it contracted international companies to "evaluate" the work of the Iraqi banks.
The dealings with these banks shall be determined by such evaluations, in regard auditing and danger managements.
Governor Ali al-Alaq pointed that the Iraqi banking system is a new one with "unstable" circumstances and many challenges, but it contained various "opportunities".
Iraq has 54 banks in addition to the CBI, including 7 governmental banks, 23 private banks, 9 Islamic bank and 15 foreign banks' branches.
75% of Iraqi budget for governmental salaries, Parliament Speaker
November 13th, 2016
Iraqi Parliament's speaker Saleem al-Jbouri disclosed that 75% of the Iraqi 2017 budget shall be spent on the governmental salaries and expenditures.
He added that the Iraqi budget put 42 dollars for selling one oil barrel in international markets. "32% of the budget was allocated for security and defence purposes", he confirmed.
On the other hand, member of the parliamentary financial commission Majda al-Timimi reported that 2017 budget is "just only" financial loans, charging the government with the failure to ensure the financial situation in the country.
Iraqi economic experts believe that the most of the items mentioned in 2017 were repeated from 2016.
Don961 » November 14th, 2016
Monday, November 14, 2016
Tayyebnia Says Rial Revaluation Should Wait
Addressing renewed calls for dropping three zeros from Iran’s national currency, Ali Tayyebnia, the economic minister, supported the move. He, however, was soon to add that the time is not suitable for doing so.
“I think dropping the three zeros from the rial is a necessary measure that should be done in the future,” ISNA quoted him as saying on Sunday.
“We need to fully reduce inflation and make the economy more stable before lopping of the naughts from the national currency,” the minister added.
Earlier this month Hussein Qazavi, a deputy minister of economy, and Gholamreza Mesbahi-Moqaddam, a member of the Expediency Council, called for the parliament and government to create the grounds for revaluing the rial. The move is expected to help lift the efficiency of the currency and ease daily transactions, according to two experts.
Kamran Nadri, deputy director of Monetary and Banking Institute, also welcomes the move, since “it would make calculation easier and make the currency more resilient to inflation.”
Nadri went further by saying that since the revaluation would be costly and time- consumingit is better to drop even more zeros from the rial all at once. “I think we should remove four zeros from rial.”
He emphasized that enhancing monetary markets is a key prerequisite for revaluating rial.
The policy was successfully initiated by several countries in the past: Turkey, for instance, lopped six zeros from its lira in 2004 as a way to get rid of decades of high inflation.
Although the official currency in Iran is the rial, most people use the term ‘toman’, which deducts one zero. A 10,000 rial bill therefore is generally called 1000 tomans.
Currency Revaluation in Iran
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