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Iraq Central Bank Rules out Threat from Borrowing to Hard Currency Reserves

A worker wears a protective face shield at a store in Baghdad, Iraq. (Reuters)
A worker wears a protective face shield at a store in Baghdad, Iraq. (Reuters)
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Iraq Central Bank Rules out Threat from Borrowing to Hard Currency Reserves

A worker wears a protective face shield at a store in Baghdad, Iraq. (Reuters)
A worker wears a protective face shield at a store in Baghdad, Iraq. (Reuters)

The Central Bank of Iraq (CBI) has ruled out a threat to hard currency reserves as a result of borrowing.

While noting that the oil market recovery maximizes the reserve, it stressed that changing the exchange rate had created competition between local producers and importers.

According to the Iraqi News Agency (INA), Director General of the Accounting Department at the CBI Ihssan Shamran said that “the CBI’s dollar reserve is not directly affected by the Finance Ministry’s borrowings from banks,” stressing that “its impact is indirect and limited.”

The CBI monitors and ensures that the Iraqi dinars handed over to traders to buy dollars are not forged.

Changing the exchange rate will help marketing local products after the value of imported goods increased by 22 percent, Shamran said.

The oil market recovery would maximize the need for hard currency and reduce the deficit in the 2021 general budget, he noted.

“The dollars levied from the differences in the sale of oil will increase the CBI’s foreign currency reserves and reduce the pressure on the bank’s local currency reserves.”

On Dec. 19, the CBI announced it will devalue the dinar by over 20 percent in response to a severe liquidity crisis brought on by low oil prices.

In a statement, the Central Bank set the new rate for the dinar, which is pegged to the US dollar, at 1,450 IQD when selling to the Iraqi Finance Ministry.

The dinar will be sold to the public at 1,470 IQD and to other banks at 1,460 IQD.

The bank justified the devaluation saying it was the product of “intense deliberations” with the prime minister, finance minister and lawmakers, and stressing it would be a one-time occurrence.

“The Central Bank will defend this price and its stability with the support of its foreign reserves,” which it maintained are still at stable levels.

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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.