Abstract
2019 Article IV Consultation and Proposal for Post-Program Monitoring-Press Release; Staff Report; and Statement by the Executive Director for Iraq
Fund Relations
(As of May 31, 2019)
Membership Status: Joined December 27, 1945; Article XIV General Resources Account
| SDR Million | Percent of Quota | |
|---|---|---|
| Quota | 1,663.80 | 100.00 |
| Fund Holdings of Currency | 3,425.13 | 205.86 |
| Reserve Tranche Position | 289.95 | 17.43 |
| SDR Million | Percent of Quota | |
|---|---|---|
| Quota | 1,663.80 | 100.00 |
| Fund Holdings of Currency | 3,425.13 | 205.86 |
| Reserve Tranche Position | 289.95 | 17.43 |
SDR Department
| SDR Million | Percent of Allocation | |
|---|---|---|
| Net Cumulative Allocation | 1,134.50 | 100.00 |
| Holdings | 2.64 | 0.23 |
| SDR Million | Percent of Allocation | |
|---|---|---|
| Net Cumulative Allocation | 1,134.50 | 100.00 |
| Holdings | 2.64 | 0.23 |
Outstanding Purchases and Loans
Emergency Assistance may include Emergency Assistance for Natural Disasters (ENDA), Emergency Post-Conflict Assistance (EPCA), and Rapid Financing Instrument (RFI).
| SDR Million | Percent of Quota | |
|---|---|---|
| Stand-By Arrangements | 1,494.20 | 89.81 |
| Emergency Assistance1 | 557.06 | 33.48 |
Emergency Assistance may include Emergency Assistance for Natural Disasters (ENDA), Emergency Post-Conflict Assistance (EPCA), and Rapid Financing Instrument (RFI).
| SDR Million | Percent of Quota | |
|---|---|---|
| Stand-By Arrangements | 1,494.20 | 89.81 |
| Emergency Assistance1 | 557.06 | 33.48 |
Emergency Assistance may include Emergency Assistance for Natural Disasters (ENDA), Emergency Post-Conflict Assistance (EPCA), and Rapid Financing Instrument (RFI).
Latest Financial Arrangements
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| Stand-By | Jul 07, 2016 | Jul 06, 2019 | 3,831.00 | 1,494.20 |
| Stand-By | Feb 24, 2010 | Feb 23, 2013 | 2,376.80 | 1,069.56 |
| Stand-By | Dec 19, 2007 | Mar 18, 2009 | 475.36 | 0.00 |
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| Stand-By | Jul 07, 2016 | Jul 06, 2019 | 3,831.00 | 1,494.20 |
| Stand-By | Feb 24, 2010 | Feb 23, 2013 | 2,376.80 | 1,069.56 |
| Stand-By | Dec 19, 2007 | Mar 18, 2009 | 475.36 | 0.00 |
Overdue Obligations and Projected Payment to the Fund (as of June 14, 2019) (SDR Million; based on existing use of resources and present holdings of SDRs)1
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | 279.70 | 862.26 | 690.23 | 219.08 | |
| Charges/Interest | 27.33 | 42.39 | 25.74 | 14.79 | 12.35 |
| Total | 307.03 | 904.65 | 715.95 | 233.86 | 12.35 |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | 279.70 | 862.26 | 690.23 | 219.08 | |
| Charges/Interest | 27.33 | 42.39 | 25.74 | 14.79 | 12.35 |
| Total | 307.03 | 904.65 | 715.95 | 233.86 | 12.35 |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
Implementation of HIPC Initiative: Not Applicable
Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable
Implementation of Catastrophe Containment and Relief (CCR): Not Applicable
As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.
Safeguards Assessments
The most recent safeguards assessment of the Central Bank of Iraq (CBI) was completed in April 2016. It concluded that the CBI continues to face capacity constraints in its operations, as well as a difficult security situation on the ground. In line with the IMF safeguards assessment’s recommendations the Governing Council of the CBI approved a new charter for the Audit Committee prohibiting CBI executive representation on the committee. Also, the Parliament has approved amendments to the Law on the Central Bank of Iraq to strengthen CBI governance and the internal control framework. However, progress in strengthening the capacity of internal audit and financial reporting has been slow.
Exchange Arrangement
Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy. Effective January 2, 2017, the cash and transfer exchange rate was set at ID 1,184 plus ID 6 (fees) per U.S. dollar. Effective May 24, 2018, the official exchange rate was set at ID 1,190 per U.S. dollar including the Central Bank commission (ID 1,182 plus ID 8 (fees)) according to the closing prices of the daily bulletin of gold & main currencies published on the CBI website (www.cbi.iq).
The CBI provides foreign exchange at the official exchange rate for permissible transactions through its daily auctions (allocations), establishing a peg. However, because certain transactions are excluded from access to the CBI auctions, many transactions take place at parallel market exchange rates. The CBI publishes the daily volume of the auction allocation on its website.
Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1
The MCP arises from the lack of a mechanism to ensure that the exchange rate at the CBI foreign exchange window and the market rates (retail exchange rates of commercial banks and exchange bureaus for the sale of foreign currency from sources other than the CBI foreign exchange window) do not deviate from each other by more than 2 percent.
A previously identified exchange restriction arising from an Iraqi balance owed to Jordan under an inoperative bilateral payment agreement has been eliminated.
Article IV Consultation
Upon the approval of the 36-month Stand-By Arrangement on July 7, 2016, Iraq was placed on the 24-month consultation cycle. The last Article IV consultation was concluded on August 1, 2017, along with the Second Review under the Three-Year Stand-by Arrangement. The staff report (IMF Country Report No. 17/251) was published on August 9, 2017, and is available on the internet.
Resident Representative
Mr. Kareem Ismail has been the resident representative for Iraq, based in Amman, since June 2018.
Technical Assistance, 2014–19
| Department | Date | Purpose |
|---|---|---|
| FAD | March 2014 | Budget classification (METAC) |
| June 2015 | Status of public financial management reforms (METAC) | |
| November 2015 | Public financial management law, budget execution, and program-based budgeting | |
| March 2016 | Public financial management law | |
| February 2017 | Revenue administration: tax policy | |
| February 2017 | PFM: commitment controls, cash management, treasury single account (METAC) | |
| March 2017 | Advice on a modern LTO/ Tax administration | |
| July 2017 | Seminar on Commitment Control System | |
| January 2018 | Assist in the Development of an IT System | |
| February 2018 | Commitment controls, cash management and TSA | |
| March 2018 | Improved Integration of Asset and Liability Management Framework | |
| April 2018 | Follow up on establishment and functioning of large taxpayer office | |
| July 2018 | Follow-up on Treasury Single Account and Cash Flow Management Unit (METAC) | |
| July 2018 | Budget Classification and Chart of Accounts (METAC) | |
| August 2018 | Implementation Plan for New Sales Taxes (METAC) | |
| March 2019 | Budget Classification and Chart of Accounts (METAC) | |
| LEG | May 2015 | Desk review of the draft AML/CFT Law |
| June 2015 | Article VIII acceptance | |
| September 2015 | Desk review of the draft AML/CFT Law | |
| January 2016 | Anti-money laundering activities | |
| March 2016 | Cross-border financial flows | |
| June 2016 | AML/CFT: review of the framework to implement targeted financial sanctions | |
| December 2016 | UNODC Seminar on Strengthening the legal regime against terrorism in Iraq | |
| December 2016 | Program TA in Central Bank Law | |
| December 2017 | Review of AML/CFT law and integration of internal comments | |
| January 2018 | Review of the “AML/CFT Regulations for Dealers in Precious Metals and Stones” | |
| January 2018 | Review of the “Process for Implementing Targeted Financial Sanctions” | |
| MCM | March 2014 | Assessment of banking needs (METAC) |
| April 2014 | Central bank reserve management | |
| May 2015 | Asset management | |
| November 2015 | Banking supervision (METAC) | |
| November 2015 | Prudential regulations: review and assessment (METAC) | |
| March 2016 | Seminar on foreign exchange regimes and controls (Joint LEG/MCM) | |
| September 2016 | Reserve management workshop | |
| November 2016 | Regulations on capital adequacy and liquidity (METAC) | |
| March 2017 | Regulations on credit risk (METAC) | |
| March 2017 | Banking supervision: upgrade CBI prudential regulations (METAC) | |
| April 2017 | Banking supervision (METAC) | |
| June 2017 | Improving Regulatory Framework (METAC) | |
| February 2018 | Improving Regulatory Framework – Follow-up (METAC) | |
| September 2018 | Regulatory Framework of Internal Audit (METAC) | |
| November 2018 | Training on dealing with weak banks (METAC) | |
| November 2018 | Forecasting and Policy Analysis System (FPAS) | |
| STA | December 2014 | Balance of payments statistics (METAC) |
| March 2015 | Government finance statistics (ArabStat) | |
| May 2015 | Government finance statistics | |
| November 2015 | Consumer price index (METAC) | |
| January 2016 | National accounts statistics (METAC) | |
| March 2016 | Government finance statistics | |
| March 2016 | External sector statistics | |
| April 2016 | Financial stability indicators | |
| January 2017 | National accounts (METAC) | |
| January 2017 | External sector statistics (METAC) | |
| February 2017 | Price statistics (METAC) | |
| August 2017 | National accounts (METAC) | |
| April 2018 | External sector statistics (METAC) | |
| August 2018 | National accounts (METAC) | |
| October 2018 | Price statistics (METAC-EDDI2) | |
| December 2018 | Government Finance Statistics | |
| December 2018 | FSI: Financial Soundness Indicators |
| Department | Date | Purpose |
|---|---|---|
| FAD | March 2014 | Budget classification (METAC) |
| June 2015 | Status of public financial management reforms (METAC) | |
| November 2015 | Public financial management law, budget execution, and program-based budgeting | |
| March 2016 | Public financial management law | |
| February 2017 | Revenue administration: tax policy | |
| February 2017 | PFM: commitment controls, cash management, treasury single account (METAC) | |
| March 2017 | Advice on a modern LTO/ Tax administration | |
| July 2017 | Seminar on Commitment Control System | |
| January 2018 | Assist in the Development of an IT System | |
| February 2018 | Commitment controls, cash management and TSA | |
| March 2018 | Improved Integration of Asset and Liability Management Framework | |
| April 2018 | Follow up on establishment and functioning of large taxpayer office | |
| July 2018 | Follow-up on Treasury Single Account and Cash Flow Management Unit (METAC) | |
| July 2018 | Budget Classification and Chart of Accounts (METAC) | |
| August 2018 | Implementation Plan for New Sales Taxes (METAC) | |
| March 2019 | Budget Classification and Chart of Accounts (METAC) | |
| LEG | May 2015 | Desk review of the draft AML/CFT Law |
| June 2015 | Article VIII acceptance | |
| September 2015 | Desk review of the draft AML/CFT Law | |
| January 2016 | Anti-money laundering activities | |
| March 2016 | Cross-border financial flows | |
| June 2016 | AML/CFT: review of the framework to implement targeted financial sanctions | |
| December 2016 | UNODC Seminar on Strengthening the legal regime against terrorism in Iraq | |
| December 2016 | Program TA in Central Bank Law | |
| December 2017 | Review of AML/CFT law and integration of internal comments | |
| January 2018 | Review of the “AML/CFT Regulations for Dealers in Precious Metals and Stones” | |
| January 2018 | Review of the “Process for Implementing Targeted Financial Sanctions” | |
| MCM | March 2014 | Assessment of banking needs (METAC) |
| April 2014 | Central bank reserve management | |
| May 2015 | Asset management | |
| November 2015 | Banking supervision (METAC) | |
| November 2015 | Prudential regulations: review and assessment (METAC) | |
| March 2016 | Seminar on foreign exchange regimes and controls (Joint LEG/MCM) | |
| September 2016 | Reserve management workshop | |
| November 2016 | Regulations on capital adequacy and liquidity (METAC) | |
| March 2017 | Regulations on credit risk (METAC) | |
| March 2017 | Banking supervision: upgrade CBI prudential regulations (METAC) | |
| April 2017 | Banking supervision (METAC) | |
| June 2017 | Improving Regulatory Framework (METAC) | |
| February 2018 | Improving Regulatory Framework – Follow-up (METAC) | |
| September 2018 | Regulatory Framework of Internal Audit (METAC) | |
| November 2018 | Training on dealing with weak banks (METAC) | |
| November 2018 | Forecasting and Policy Analysis System (FPAS) | |
| STA | December 2014 | Balance of payments statistics (METAC) |
| March 2015 | Government finance statistics (ArabStat) | |
| May 2015 | Government finance statistics | |
| November 2015 | Consumer price index (METAC) | |
| January 2016 | National accounts statistics (METAC) | |
| March 2016 | Government finance statistics | |
| March 2016 | External sector statistics | |
| April 2016 | Financial stability indicators | |
| January 2017 | National accounts (METAC) | |
| January 2017 | External sector statistics (METAC) | |
| February 2017 | Price statistics (METAC) | |
| August 2017 | National accounts (METAC) | |
| April 2018 | External sector statistics (METAC) | |
| August 2018 | National accounts (METAC) | |
| October 2018 | Price statistics (METAC-EDDI2) | |
| December 2018 | Government Finance Statistics | |
| December 2018 | FSI: Financial Soundness Indicators |
Relations with Other International Financial Institutions
World Bank: http://projects.worldbank.org/search?lang=en&searchTerm=&countrycode_exact=IQ
Statistical Issues
(As of May 31, 2019)
| I. Assessment of Data Adequacy for Surveillance |
| General |
| Data provision to the Fund has serious shortcomings that significantly hamper surveillance. Data availability also continues to impair policy-making in Iraq. The Central Statistics Organization (CSO) lacks adequate technical expertise and resources to address the requirements for a modern statistical system. Both the CSO and the Central Bank of Iraq (CBI) face challenges with interagency data sharing as well as issues surrounding data collection responsibilities. |
| National Accounts |
| The CSO compiles annual and quarterly GDP at current and constant (2007) prices from the production approach, and in current prices from the expenditure approach. The national accounts mainly follow the 1968 System of National Accounts (SNA). The lack of regular, reliable and comprehensive source data for some industries and for GDP by expenditure undermine the quality of the national accounts. Volume estimates of GDP suffer from shortcomings, and delays in source data affect the timeliness of the annual estimates. Reduced regional coverage of source data due to the conflicts in four provinces has further weakened the GDP measures. Ongoing TA from METAC is helping the CSO to introduce 2012 as a new base/benchmark year, and to implement core concepts and definitions of the 2008 SNA and to improve the compilation methodology and coverage of GDP. Access to administrative data could be a very significant data input for national accounts estimates, but this would require strong ministerial support and proactive collaboration with other government institutions. |
| Price Statistics |
| The CSO compiles and disseminates a monthly CPI for all-Iraq (including Kurdistan) and for each governorate. The index was rebased in 2016, based on the 2012 Household Social and Economic Survey. However, the CPI covers only the urban areas in all governorates and there are insufficient resources to expand coverage. Starting June 2014 official data on CPI do not include the four conflict-affected governorates. A quarterly PPI for manufacturing is also compiled on a 2012 base. An upcoming STA TA mission will provide advice on further improvements to the CSO’s price statistics. |
| Government Finance Statistics |
| Despite the difficult security situation, which has a direct impact on data compilation and analysis, the provision of fiscal data for program monitoring purposes has been satisfactory. Infrequent submission delays occur, and coverage of Kurdistan remains sketchy. However, the authorities are taking measures to address these shortcomings. |
| STA GFS TA missions have proposed a work plan aimed at improving the frequency and timeliness of fiscal reporting data and setting a migration plan to improve fiscal statistics based on the Government Finance Statistics Manual 2014 (GFSM 2014). The missions have also assisted in setting up a reporting tool on quarterly and monthly statements of government operations for budgetary central government. Iraq resumed reporting government finance statistics for publication in the Government Finance Statistics Yearbook (GFSY) but the time lag remains long. |
| Monetary and Financial Statistics |
| The CBI reports monetary statistics for the central bank and other depository corporations (ODCs) for publication in the IMF’s International Financial Statistics (IFS), using the standardized report forms (SRFs). However, the quality and timeliness of the data continue to be hampered by the lack of staff capacity, particularly at the commercial bank level and source data quality. With technical assistance from a monetary and financial statistics mission in December 2017, the updated SRF 1SR for the central bank is now broadly in line with the Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG). The publication of SRF data in IFS has been resumed. However, more efforts are required to improve the compilation of the SRF 2SR for ODCs as the current source data lack the required breakdowns. Source data improvement will also address the inconsistencies between financial soundness indicators for deposit takers and the SRF 2SR for ODCs. As part of efforts to improve data quality, the CBI plans to use a more detailed form to collect data from commercial banks. According to the CBI, some foreign-owned companies operating in Iraq are classified as nonresidents—a deviation from international standards regarding the application of the residence concept. In addition, monetary statistics do not cover bank operations in Kurdistan Region due to problems with data collection. Iraq reports some data and indicators of the Financial Access Survey (FAS), including the two indicators adopted by the UN to monitor Target 8.10.1 of the Sustainable Development Goals (SDGs). There is room for improvement in reporting to the FAS, especially for series on use of financial services (depositors, deposit accounts, borrowers, and loan accounts). |
| Financial Sector Surveillance |
| Following a mission on financial soundness indicators (FSIs) in April 2016, the CBI has compiled the 12 core FSIs and 7 of the 13 additional FSIs for state banks and a similar set of FSIs for private banks with quarterly frequency. The last FSI mission in December 2018 assisted in compiling the sectoral FSIs, covering the entire banking sector, merging the FSIs for the state-owned and private banks, and prepared metadata. The dissemination of the sectoral FSIs and metadata on the IMF’s FSI website awaits the CBI’s approval. |
| External Sector Statistics |
| Balance of Payments and IIP Statistics |
| The CBI compiles and reports annual as well as quarterly balance of payments data in the format of the IMF’s Balance of Payments Manual, sixth edition (BPM6) to the IMF. The CBI also compiles and disseminates an annual international investment position (IIP) statement. The latest TA mission on external sector statistics (ESS) was conducted in April 2018. Despite some progress in reducing net errors and omissions (NEOs), they remain high and persistently negative, suggesting capital flight. STA will continue assisting the CBI in improving data reliability by addressing the most probable sources of the large NEOs, including the recording of oil sector transactions, cross-border trade with Kurdistan, arrears, and in-kind payments for external borrowing. International reserves are compiled consistent with international methodologies and published in the IFS since end-2006. |
| External Trade Statistics |
| External trade data have serious problems of timeliness and are of poor quality, given the absence of reliable customs data. A new customs form for imports is available but is not being used at the customs border due to the security situation and the lack of Customs Department resources at the border outlets. The compilation of external trade statistics has been hampered by a lack of interinstitutional coordination among key data providers. |
| Coverage of private sector imports is constrained by a lack of data sources. Only goods that are paid for through the Iraqi banking system are captured. Thus, goods that are imported under external payments arrangements (for example, imports for direct investment projects by international oil companies) are not recorded in the balance of payments. The coverage of the external trade statistics excludes Kurdistan, and no estimates for smuggling are made. |
| Export data from the oil sector are received from the Balance of Payments Statistics Division at the CBI. The data on non-oil exports, which amount to the equivalent of 3–5 percent of total exports, are derived from information on the customs export form. Non-oil export data are provided to the CBI monthly for crosschecking purposes. |
| Transactions related to oil exploration, extraction, and development payments to international oil companies have recently been included in the balance of payments. |
| II. Data Standards and Quality |
| Iraq has been participating in e-GDDS since 2009, but has not yet launched a National Summary Data Page for the dissemination of key macroeconomic statistics. The metadata, some of which have been updated in early 2016, for key macroeconomic indicators are available on the country page on the IMF’s Dissemination Standards Bulletin Board. |
| I. Assessment of Data Adequacy for Surveillance |
| General |
| Data provision to the Fund has serious shortcomings that significantly hamper surveillance. Data availability also continues to impair policy-making in Iraq. The Central Statistics Organization (CSO) lacks adequate technical expertise and resources to address the requirements for a modern statistical system. Both the CSO and the Central Bank of Iraq (CBI) face challenges with interagency data sharing as well as issues surrounding data collection responsibilities. |
| National Accounts |
| The CSO compiles annual and quarterly GDP at current and constant (2007) prices from the production approach, and in current prices from the expenditure approach. The national accounts mainly follow the 1968 System of National Accounts (SNA). The lack of regular, reliable and comprehensive source data for some industries and for GDP by expenditure undermine the quality of the national accounts. Volume estimates of GDP suffer from shortcomings, and delays in source data affect the timeliness of the annual estimates. Reduced regional coverage of source data due to the conflicts in four provinces has further weakened the GDP measures. Ongoing TA from METAC is helping the CSO to introduce 2012 as a new base/benchmark year, and to implement core concepts and definitions of the 2008 SNA and to improve the compilation methodology and coverage of GDP. Access to administrative data could be a very significant data input for national accounts estimates, but this would require strong ministerial support and proactive collaboration with other government institutions. |
| Price Statistics |
| The CSO compiles and disseminates a monthly CPI for all-Iraq (including Kurdistan) and for each governorate. The index was rebased in 2016, based on the 2012 Household Social and Economic Survey. However, the CPI covers only the urban areas in all governorates and there are insufficient resources to expand coverage. Starting June 2014 official data on CPI do not include the four conflict-affected governorates. A quarterly PPI for manufacturing is also compiled on a 2012 base. An upcoming STA TA mission will provide advice on further improvements to the CSO’s price statistics. |
| Government Finance Statistics |
| Despite the difficult security situation, which has a direct impact on data compilation and analysis, the provision of fiscal data for program monitoring purposes has been satisfactory. Infrequent submission delays occur, and coverage of Kurdistan remains sketchy. However, the authorities are taking measures to address these shortcomings. |
| STA GFS TA missions have proposed a work plan aimed at improving the frequency and timeliness of fiscal reporting data and setting a migration plan to improve fiscal statistics based on the Government Finance Statistics Manual 2014 (GFSM 2014). The missions have also assisted in setting up a reporting tool on quarterly and monthly statements of government operations for budgetary central government. Iraq resumed reporting government finance statistics for publication in the Government Finance Statistics Yearbook (GFSY) but the time lag remains long. |
| Monetary and Financial Statistics |
| The CBI reports monetary statistics for the central bank and other depository corporations (ODCs) for publication in the IMF’s International Financial Statistics (IFS), using the standardized report forms (SRFs). However, the quality and timeliness of the data continue to be hampered by the lack of staff capacity, particularly at the commercial bank level and source data quality. With technical assistance from a monetary and financial statistics mission in December 2017, the updated SRF 1SR for the central bank is now broadly in line with the Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG). The publication of SRF data in IFS has been resumed. However, more efforts are required to improve the compilation of the SRF 2SR for ODCs as the current source data lack the required breakdowns. Source data improvement will also address the inconsistencies between financial soundness indicators for deposit takers and the SRF 2SR for ODCs. As part of efforts to improve data quality, the CBI plans to use a more detailed form to collect data from commercial banks. According to the CBI, some foreign-owned companies operating in Iraq are classified as nonresidents—a deviation from international standards regarding the application of the residence concept. In addition, monetary statistics do not cover bank operations in Kurdistan Region due to problems with data collection. Iraq reports some data and indicators of the Financial Access Survey (FAS), including the two indicators adopted by the UN to monitor Target 8.10.1 of the Sustainable Development Goals (SDGs). There is room for improvement in reporting to the FAS, especially for series on use of financial services (depositors, deposit accounts, borrowers, and loan accounts). |
| Financial Sector Surveillance |
| Following a mission on financial soundness indicators (FSIs) in April 2016, the CBI has compiled the 12 core FSIs and 7 of the 13 additional FSIs for state banks and a similar set of FSIs for private banks with quarterly frequency. The last FSI mission in December 2018 assisted in compiling the sectoral FSIs, covering the entire banking sector, merging the FSIs for the state-owned and private banks, and prepared metadata. The dissemination of the sectoral FSIs and metadata on the IMF’s FSI website awaits the CBI’s approval. |
| External Sector Statistics |
| Balance of Payments and IIP Statistics |
| The CBI compiles and reports annual as well as quarterly balance of payments data in the format of the IMF’s Balance of Payments Manual, sixth edition (BPM6) to the IMF. The CBI also compiles and disseminates an annual international investment position (IIP) statement. The latest TA mission on external sector statistics (ESS) was conducted in April 2018. Despite some progress in reducing net errors and omissions (NEOs), they remain high and persistently negative, suggesting capital flight. STA will continue assisting the CBI in improving data reliability by addressing the most probable sources of the large NEOs, including the recording of oil sector transactions, cross-border trade with Kurdistan, arrears, and in-kind payments for external borrowing. International reserves are compiled consistent with international methodologies and published in the IFS since end-2006. |
| External Trade Statistics |
| External trade data have serious problems of timeliness and are of poor quality, given the absence of reliable customs data. A new customs form for imports is available but is not being used at the customs border due to the security situation and the lack of Customs Department resources at the border outlets. The compilation of external trade statistics has been hampered by a lack of interinstitutional coordination among key data providers. |
| Coverage of private sector imports is constrained by a lack of data sources. Only goods that are paid for through the Iraqi banking system are captured. Thus, goods that are imported under external payments arrangements (for example, imports for direct investment projects by international oil companies) are not recorded in the balance of payments. The coverage of the external trade statistics excludes Kurdistan, and no estimates for smuggling are made. |
| Export data from the oil sector are received from the Balance of Payments Statistics Division at the CBI. The data on non-oil exports, which amount to the equivalent of 3–5 percent of total exports, are derived from information on the customs export form. Non-oil export data are provided to the CBI monthly for crosschecking purposes. |
| Transactions related to oil exploration, extraction, and development payments to international oil companies have recently been included in the balance of payments. |
| II. Data Standards and Quality |
| Iraq has been participating in e-GDDS since 2009, but has not yet launched a National Summary Data Page for the dissemination of key macroeconomic statistics. The metadata, some of which have been updated in early 2016, for key macroeconomic indicators are available on the country page on the IMF’s Dissemination Standards Bulletin Board. |
Iraq: Table of Common Indicators Required for Surveillance
(As of May 16, 2019)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic non-bank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Iraq: Table of Common Indicators Required for Surveillance
(As of May 16, 2019)
| Date of Latest Observation (For all dates in table dd/mm/yy) | Date Received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange rates | 01/2019 | 03/07/2019 | M | M | M |
| International reserve assets and reserve liabilities of the monetary authorities1 | 12/2018 | 03/2019 | M | M | M, 4–6-week lag |
| Reserve/Base money | 12/2018 | 03/2019 | M | M | M, 4–6-week lag |
| Broad money | 12/2018 | 03/2019 | M | M | M, 4–6-week lag |
| Central bank balance sheet | 12/2018 | 03/2019 | M | M | M, 4–6-week lag |
| Consolidated balance sheet of the banking system | 12/2018 | 03/2019 | M | M | Q, 4–6-week lag |
| Interest rates2 | 01/2017 | 02/03/2017 | M | M | M, 4–6-week lag |
| Consumer price index | 03/2019 | 04/2019 | M | M | M, 3-week lag |
| Revenue, expenditure, balance and composition of financing3—general government4 | 06/2016 | 09/2016 | M | M | N/A |
| Revenue, expenditure, balance and composition of financing3—central government | 06/2016 | 09/2016 | M | M | N/A |
| Stocks of central government and central government-guaranteed debt5 | 12/2015 | 03/2016 | N/A | N/A | N/A |
| External current account balance | Q4/2018 | 04/2019 | Q | Q | Q, |
| Exports and imports of goods and services | Q4/2018 | 04/2019 | Q | Q | Q, |
| GDP/GNP | 03/2016 | 04/2016 | Q | Q | Q, |
| Gross external debt | 12/2015 | 03/2016 | N/A | N/A | N/A |
| International investment position6 | 12/2014 | 12/06/2016 | Q | Q | Q, |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic non-bank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Iraq: Table of Common Indicators Required for Surveillance
(As of May 16, 2019)
| Date of Latest Observation (For all dates in table dd/mm/yy) | Date Received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange rates | 01/2019 | 03/07/2019 | M | M | M |
| International reserve assets and reserve liabilities of the monetary authorities1 | 12/2018 | 03/2019 | M | M | M, 4–6-week lag |
| Reserve/Base money | 12/2018 | 03/2019 | M | M | M, 4–6-week lag |
| Broad money | 12/2018 | 03/2019 | M | M | M, 4–6-week lag |
| Central bank balance sheet | 12/2018 | 03/2019 | M | M | M, 4–6-week lag |
| Consolidated balance sheet of the banking system | 12/2018 | 03/2019 | M | M | Q, 4–6-week lag |
| Interest rates2 | 01/2017 | 02/03/2017 | M | M | M, 4–6-week lag |
| Consumer price index | 03/2019 | 04/2019 | M | M | M, 3-week lag |
| Revenue, expenditure, balance and composition of financing3—general government4 | 06/2016 | 09/2016 | M | M | N/A |
| Revenue, expenditure, balance and composition of financing3—central government | 06/2016 | 09/2016 | M | M | N/A |
| Stocks of central government and central government-guaranteed debt5 | 12/2015 | 03/2016 | N/A | N/A | N/A |
| External current account balance | Q4/2018 | 04/2019 | Q | Q | Q, |
| Exports and imports of goods and services | Q4/2018 | 04/2019 | Q | Q | Q, |
| GDP/GNP | 03/2016 | 04/2016 | Q | Q | Q, |
| Gross external debt | 12/2015 | 03/2016 | N/A | N/A | N/A |
| International investment position6 | 12/2014 | 12/06/2016 | Q | Q | Q, |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic non-bank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
The authorities have imposed a requirement that, to access the CBI foreign exchange window, a purchaser must have at least one bank account that has been opened for a minimum of six months. This requirement does not apply for access to foreign exchange from other sources, including purchases of foreign exchange from commercial banks’ own resources. Staff will monitor the implementation of this requirement to ascertain whether any undue burdens on access to foreign exchange for current international transactions emerge from its application in practice.