IMF ARTICLE VIII - The Department of Investments and Foreign Transfers OF IRAQ has CBT
October 10 -2023
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The Department of Investments and Foreign Transfers OF IRAQ has CBT - | Page1 Foreign Direct Investment Adolescents - Capital Movement to and from Iraq Foreign investment plays an essential role in the development of the receiving countries. Using foreign capital, countries - especially developing ones - can exploit their natural resources, complete major projects related to their infrastructure, such as roads and airports, and establish projects that require expertise. Technically, foreign investment contributes significantly to financing development processes and building national expertise in countries hosting investments.
BANK First: """"Iraq’s membership in the International Monetary Fund"""": Iraq’s membership in the International Monetary Fund since (December 27, 1945) "obliges" it to implement and take all possible measures to remove restrictions on the freedom of movement of capital, as indicated in """""Article Eight and Article Fourteen of the Fund’s Establishment Agreement"""".
Article Eight implicitly states: “ No member may impose - without the Fund’s approval - restrictions on the performance of payments and transfers related to international commercial transactions.” Article 14 implicitly indicates (if the member is prepared to accept the "obligations" contained in Sections 2, 3, and 4 of Article Eight). Thus, the agreement """encourages the free movement of capital between countries and the transfer of balances between other members, as well as the establishment of commercial and financial arrangements - international and bilateral - to facilitate the performance of international payments and work to create a stable exchange rate system, which provides the appropriate environment to attract foreign investments""".
Second: Iraq’s accession to the 1965 Washington Convention. At the end of 2015, Iraq joined the Washington Convention for the Settlement of Investment Disputes between States and Citizens of Other Countries, which was organized by the International Bank for Reconstruction and Development in 1965, establishing the International Center for the Settlement of Investment Disputes (ICSID). Iraq's accession to the aforementioned agreement means that this country has become bound by its provisions and makes this treaty an integral part of the national legal system. This results in harmonization between what is included in the agreement and the provisions contained in Iraqi legislation. CENTRAL
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Al-Murra Al-Ayafah Department of Investments and Foreign Transfers - 0 Tsu. 3 CBT the international center referred to above is considered the international organization that grants companies and foreign investors the right to stand on an equal footing with the country hosting their investments. Therefore, Iraq’s accession to the agreement is necessary to attract investments. Achieving the goals of economic development, especially in light of the transformation and adoption of the free market economy as the country’s economic system, and making room for the "private sector" in an "unprecedented manner". | Page 2 1941
BANK Third: The Foreign Direct Investment Law in Iraq Based on what was stated above, Iraq legislated the Foreign Direct Investment Law No. (13) of 2006, which provides the foreign investor with a set of benefits, which can be summarized as follows: 1. Retention of the land for a fee to be determined. And the owner of the land, without speculation, according to controls set by the National Investment Authority and with the approval of the Council of Ministers. 2. Facilitating the allocation of necessary lands for housing projects and ownership of housing units for Iraqis after the completion of the project. The law allows the investor to extract the capital he brought into Iraq and its returns. 4. The foreign investor has the right to trade in the Iraqi Stock Exchange in the stocks and bonds listed therein. 5. The law gives the investor the right to own the lands (an amendment to the law) necessary for the project after the banker gave him the lease of the lands for the period during which the project is in existence, provided that it does not exceed (50) years, renewable with the approval of the Authority. Possibility 6. The law guarantees the investor the right to employ non-Iraqi workers in the event that an Iraqi who has the necessary qualifications and is capable of doing the same task is not employed. 7. Granting foreign investors and non-Iraqi workers in investment projects the right to reside in Iraq and facilitating their entry and exit to and from Iraq, and they may transfer their salaries and compensation outside Iraq. 8. It also guarantees that the investment project covered by the provisions of this law will not be confiscated or nationalized, in whole or in part, except for what is issued by a final judicial ruling. 9. The project that has obtained an investment license from the Authority enjoys exemption from fees for a period of (3) years with respect to the project’s imported assets, and (10) from the date of the start of commercial operation, tax exemptions. Article (15) of the law confirmed this with other exemptions, and this enjoys The foreign investor receives additional benefits in accordance with international agreements between Iraq and its country or multilateral agreements to which Iraq has joined. CENTRAL
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Central Bank of Iraq Department of Foreign Investments and Transfers Fourth: Investment agreements concluded by Iraq before and after 2003 1. The Arab Investment Guarantee Corporation Agreement 1988. 2. The Unified Arab Capital Investment Agreement of 2012, amended. 3. Convention for the Avoidance of Double Taxation and Tax Evasion 1997. 4. The Agreement on the Settlement of Investment Disputes for Arab Countries of the year 2000. 5. The Amman Agreement on Commercial Arbitration of the year 1988. As for the bilateral agreements that were ratified and published in the Iraqi newspaper Al-Waqa’i, they are: 6. The Agreement on the Encouragement and Protection of Mutual Investment between Iraq and France of the year 2012. 7. The Agreement Encouraging and protecting mutual investments between Iraq and Armenia for the year 2014. 8. Agreement for the encouragement and protection of mutual investment between Iraq and Japan for the year 2013. 9. Agreement for the encouragement and protection of mutual investment between Iraq and Jordan for the year 2015. 10. Agreement for the encouragement and protection of mutual investments between Iraq and Kuwait for the year 2014. 11. The Agreement to Encourage and Protect Mutual Investment between Iraq and Germany for the year 2012. 12. The Investment Incentives Agreement between Iraq and the United States of America for the year 2012.
"""Most of these bilateral agreements and treaties included provisions related to the freedom of movement of capital. OF IRAQ... """
Article Eleven - First of the above law referred to the investor taking out the capital he / she brought into Iraq and its returns in accordance with the provisions of this law and the instructions of the Central Bank of Iraq and in ""convertible currency"" after paying all his "obligations" and debts to the Iraqi government and other parties. | Page 3 CBI CENTRAL
BANK Fifth: ""Mechanisms of capital movement ""to and from"" Iraq The Central Bank of Iraq has a prominent role in encouraging investments, introducing capital, and creating a system of financial dealings with foreign banks to work in the country, and benefiting from their expertise, ""to develop the Iraqi banking sector""..
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CENTRAL, Al-Rukn Al-Ayyafah, Department of Foreign Investments and Transfers, local companies, as well as with and to create an advanced financial dealing base, which contributes to supporting the economy and creating competition, enhancing confidence in the Iraqi market, in addition to the fact that the role of foreign companies and banks will be important in attracting investments. Among these banks are: CB BANK OF IRAQ Standard Chartered | QNB Group Subsidiary of Jordan Kuwait Bank Subsidiary of Ahli United Bank, Bahrain Ziraat Bankası Türkiye is Bankasi Bank of Jordan Abu Dhabi Islamic Bank Albaraka Bank Vakif Bank Representative Offices Subsidiaries in Iraqi Banks Citi Bank Commerzbank First Abu Dhabi Bank National Bank of Iraq Al-Mansour Bank 1. Standard Chartered Bank 2. Turkish Ziraat Bank 3. Turkish Ash Bank Bank of Baghdad 4. Bank of Jordan 5. Abu Dhabi Islamic Bank 6. Al Baraka Turkish Bank 10. First Abu Dhabi Bank Foreign investments in local banks 11. National Bank of Iraq 12. Al-Mansour Bank 13. Islamic Bank of Baghdad 7. Turkish Vakif Bank Representative offices of foreign banks 8. Citibank 9. German Commercial Bank 14. Commercial Bank of Iraq | Page 4
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Iraqi Visual Structure Department of Foreign Investments and Transfers OF IRAQ CBI BANK The Central Bank of Iraq issued instructions and controls for the flow of capital to foreign investors in the year 2011 based on the provisions of Article (11) of Investment Law No. 13 of 2006, including what was stipulated (the investor in Iraq has the right, in a manner consistent with the provisions of the Investment Law include the use of amounts transferred to the Republic of Iraq and deposited at its disposal in the investment account with the local bank, by re-transferring them outside Iraq whenever it wishes at the market exchange rate to finance its import operations of goods and services and obligations related to investment activity...) and in ""2023"" the bank issued Controls of transfers related to foreign investments in Iraq are as follows: 2. /i/First: Capital of investment projects granted investment licenses under the Investment Law (13) of 2006 and its amendments (after proving their income from outside Iraq for this purpose earlier) and the returns of investment projects after submitting Audited financial statements proving the realization of profits and proof of the settlement of the investor’s obligations with the Iraqi government and other relevant parties inside Iraq.
Page 5 2/i/ Second: Transferring the proceeds from the sale of shares to an Iraqi residing abroad or a foreigner (the original value plus its proceeds, if any) in the event of selling them, provided that approval is provided from the Iraq Stock Exchange. In addition to the Iraqi government directing all licensed banks to reduce foreign currency transfer commissions. Executive procedures for the movement of funds: The transfer of funds for investment projects granted a basic investment license is through opening current accounts in the Iraqi dinar and in foreign currency in one of the banks operating in Iraq, and the amounts are transferred and received from these accounts according to the controls of the Central Bank. CENTRAL
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Al-Bunni Al-Murrah Iraqi Department of Investments and Foreign Transfers CBI OF IRAQ With CENTRAL BANK The investor can transfer money from his accounts in foreign banks and their """correspondents operating abroad"", to the account of the Central Bank of Iraq with one of its """correspondent abroad"", and then receive the "equivalent" from his account opened with one of them""".
Banks operating domestically. In the event that the investor removes money from Iraq, such as the project’s capital, profits, or any transfers to the project’s workers, in foreign currency, this is done according to the above controls through the electronic platform for buying the dollar, where a request is submitted through the local bank for the purpose of transferring the money through the platform (after submitting all the required documents include the investor’s data and the data of the intermediary and correspondent bank, as well as evidence of its entry from outside Iraq for this purpose at an earlier time, and the fulfillment of all "obligations" with the government and relevant parties in Iraq.
The equivalent of these funds in Iraqi dinars is recorded on the bank’s current accounts opened with the Central Bank of Iraq. At least two working days before, after which the external transfer for these purposes will be carried out.
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Reposting this article above is in my view a fresh reminder of what we are are seeing take place from going back in time to see what they already told us and the world at large. They have over the last few days been talking about correspondent banks opening accounts abroad and doing currency swaps with countries they represent. They are presently under way this month even today, attracting foriegn investment into Iraq noted by the conference with about 200 companies representing many countries. Iraq is working to rid the dominance of the US Dollar and strengthen the Iarqi Dinar to bring it in line to do commercial transactions.
We can clearly see what they told us in October 2023 relating to accepting obligations to Article VIII, Article XIV, mechanisms for freedom of capital movment, correspondent bank accounts, etc., shows that where we were then and where we are now shows that Iraq is preparing to show the world they have made it.. Show the world the mechanism she will use in trade. I suspect the REER will be one that she can be proud of.. One the world will be confident with. What we are seeing has my confidence level at the top!!
This is the data one can see with Militia Man & Crew in the forum and Discord Chat room. The place is on fire and will continue as the amazing events unfold.. Come chack us out.. You do not want toe miss it.. imo ~ MM
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Parliamentary Finance talks about a measure by the Central Bank: the only way to stabilize exchange rates
3 days ago
|Today, 18:36 |
Baghdad
Today, Friday (November 24, 2023), the Parliamentary Finance Committee described the Central Bank of Iraq as having come a long way in restoring exchange rate stability, considering that addressing the dollar problem will not be achieved without diversifying sources of foreign currencies.
The head of the committee, Atwan Al-Atwani, said in a statement received by “NEWS Today” that “diversifying the sources of foreign currency dependence in commercial transactions is the only way to address the problem of the increasing demand for the dollar.”
He added, "The Central Bank has come a long way in its mission to restore market stability, """get rid of the dominance of the dollar""", strengthen the Iraqi dinar, and """bring it into the line of global commercial transactions."""
He stressed "the importance of this approach as it is an effective solution and a thoughtful strategy to open new horizons that ensure facilitating commercial transactions procedures at various levels," noting that "we renew our full support for the steps of the Central Bank of Iraq as it moves steadily towards developing real solutions to the crisis."
Earlier, the Central Bank took several measures to increase the number of Iraqi banks to which external transfers are available, by opening accounts for them in a number of ""correspondent banks in a number of countries, especially Jordan and the Emirates"".
The procedures included opening accounts in the ""Chinese yuan, the Indian rupee, the euro, and the UAE dirham"", in order to allow trade exchange in the currencies of the countries that export most to Iraq, such as India, China, and the UAE. | | | |
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