IMF recommends accelerating the pace of financial reform in Iraq

Posted: July 23, 2013 in Iraqi Dinar/Politics
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International Monetary Fund

recommended report issued by the International Monetary Fund for Iraq pace of structural reform to boost growth and job creation in the private sector, and the need to continue the good governance of foreign reserves at the Central Bank of Iraq and the Development Fund for Iraq.

The report recommended that display the Resident Representative of the International Monetary Fund for Iraq Ghazi الشبيكات during a press conference held at the Iraqi Business Council in Amman to “accelerate the pace of structural reform to boost growth and job creation in the private sector and the intensification of work for the Liberation of the foreign exchange market and the creation of a stable exchange rate and simplify the instructions of foreign currency . “

He stressed “the need to ensure the continuation of fiscal consolidation and building margins and preventive financial face of fluctuations in oil revenues,” stressing “the need to continue the governance of reserves of foreign Central Bank of Iraq and the Development Fund for Iraq and deepen the reform of the financial sector and the establishment of equal treatment for private banks.”

He advised the report “Iraq by creating a system of anti-money laundering and counter-terrorism and there should be management prudent reserve the Iraqi Central Bank’s foreign currency and the Development Fund for Iraq,” calling for “a law on the Gaza hydrocarbons and investment in electricity production and the abolition of fuel subsidies granted to producers and restructuring of state-owned enterprises Iraqi and governance reform and capitalization of institutions that can be fixed and the closure of non-viable. ”

The report emphasized “the need to improve the business environment and attention to the agricultural sector through the reform of the public distribution system, which contributed to the decline of domestic production and to reconsider support mechanisms provided by the Iraqi government to its citizens,” noting that “the cost of supporting the fuel up to $ 10 billion or so.”

The Resident Representative said “the most prominent risks facing Iraq is the implementation of weak political reform and the decline in the level of political and security situation and the delay in increasing the volume of oil production and declining global oil prices,” pointing to the necessity that “Iraq has the private sector is able to produce and direct investment sectors, non-oil especially electricity and agriculture that Iraq has a significant competitive advantage, “stressing that” Iraq needs to long years of work to rebuild the fortune of mankind. ”

He added, “Despite the political and security conditions difficult through which Iraq but were positive economic developments in general has witnessed accelerated economic growth reached 8.4% last year and is expected to reach 9% during the current year.”

He explained that “macro-economic prospects over the medium term will remain driven by developments in the oil sector, where output is expected to rise gradually from Iraq’s oil by 500 thousand barrels per day in the year to up to 5.7 million barrels per day by the year 2018 compared to 3.3 million barrels now.”

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