Hey everyone,

Here is the final complete and officially translated version of the Central Bank of Iraq’s Strategic plan from 2016 to 2020.  It doesn’t mention deleting the zeros (LOP, also called re-denomination) nor does it mention Revaluation (RV) or reinstatement (RI) in the text.  But regardless of what the reader is expecting, here is the document.  I am embedding this document here but you can also read the text on this page.  There were two versions released, an English partial translation and an Arabic version containing nearly 10 additional pages.  I do not know why the English version did contain the complete translation, therefore, I had it professionally done.  I ask that you keep the original links in the document as is and don’t remove or change anything.  I paid to have this done and it took considerable time.  If you want to put it on your website, please add credit to my site by simply linking back to this webpage url using the following HTML code:

<a href=”https://dinarrvnews.net/central-bank-iraq/strategic-plan-2016-2020/” target=”_blank”>Translated Central Bank of Iraq Strategic Plan 2016-2020</a>

Translated Central Bank of Iraq Strategic Plan 2016-2020

Last Updated On: October 24, 2016
By: Nick Giammarino
Subscribe to the Dinar RV Newsletter – [OptinLink id=1]CLICK HERE TO SUBSCRIBE TO THE FREE NEWSLETTER[/OptinLink]

Page 01 of 32

Central Bank of Iraq

Strategic Plan 2016-2020

Page 02 of 32

Contents (from English Version)

An Opening Message from the Governor of the Central Bank of Iraq

2. Introduction

3. Opportunities and Challenges

4. Main Elements of the Strategic Plan

Mission, Vision and Organizational Values

Objectives and Initiatives

6.1- First Corporate Objective: Achieve and Maintain the Financial Market Stability

6.1.1- Stabilize Currency Exchange Rate

6.1.2-Create New Tools for Financial Lending and Investment

6.1.3-Consumers’ Protection

6.2- Second Corporate Objective: Restore the force and impact of the Local Financial Sector

6.2.1- Effective Processes and Procedures

6.2.2- Transparency and Integrity

6.2.3- New line of Financial Products and Services including Offering of Islamic Banking

6.2.4- Support and Improve the Financial and Share Market

6.2.5- Establishment of Special Entities to Safeguard Banking Deposits

6.3- Third Corporate Objective: Perform a complete organizational restructuring

6.3.1- Organizational Structure

6.3.2- Processes, Procedures and Operations

6.3.3- Performance and Auditing Systems

6.4- Forth Corporate Objective: Development of Human Resources

6.4 .1- The Central Bank Employees

6.4.2- Loc l Bank Employees

6.5- Fifth Corporate Objective: Build up and integrate internal and external communications and ties

6.5.1- Decision-making process

6.5.2- Organizational channels

6.5.3- International ties and cooperation

7- Appendix: Main Objectives and Initiatives

An Opening Message from the Governor of the Central Bank of Iraq

Page 03 of 32

I am very proud to unveil the strategic plan of our organization for

2016-2020, which has been engineered by a group of international experts in collaboration with our organization’s leadership and top management. This grand plan aims and strives to deliver the objectives and goals of our mission of safeguarding stability, organization re-structuring, and protecting consumers over the coming five years, using the most effective and widely used tools in strategic planning such as the SWOT analysis, Risk Management

Matrix, and the Balanced Scorecard Approach.

The progress to achieve our objectives will not only be measured and determined by factors such as flexibility of our plan and its capacity to deliver the intended results but more importantly by adopting a profound process of implementation, monitoring and adjustment. In the line of this statement, we have created a new department under, “Total Quality Management and Organizational

Development”, which will be responsible of ensuring and assuring that the objectives and goals of this plan continuously monitored, adjusted when obstacles arise, and truly achieved. A similar concept currently implemented at the General Secretariat for the

Council of Ministers has delivered enormous success.

The objectives have been well aligned with the government program, “Develop and promote a free market economy based on competition”. We aim to exert our utmost effort to ensure that this era sees significant progress and tangible results in restoring the financial and banking stability and support economic developments as we work out the legacy of the austerity measures. In addition, expanding the reform of our regulatory supervisory framework will guarantee that future risks to market stability and consumers are identified and minimized, while we continue improving our financial sector, and promoting wider economic policy formulations.

The current financial system adopted by most of the local banks uses out-of-date and bureaucratic practices and regulations compared to those implemented by international counterparts, in particular, the information technology infrastructure and the financial transactions, therefore, we have given a top priority to the supervision, monitoring and audit processes, in order to create a competent, efficient and controlled banking environment. From this perspective, we have added a comprehensive plan to implement state-of-the-art information technology systems and networks to support, monitor and control our operations and activities.

I am confident that our employees will rise to these challenges with the necessary skills, determination and commitment as always have shown and for which I am very grateful. Finally, I would like to extend my thanks and appreciation to the General Secretariat for the Council of Ministers, particularly, the Total Quality Management and Organizational Development Department for their large contribution and assistance to formulate this plan.

Ali M.Al-Alaak

The Governor-Central Bank of Iraq

Page 4 of 32

Introduction

The Central bank of Iraq, established in 1947, is considered as one of the deep-rooted organizations in Iraq’s modern history. It is the sole government organization that is responsible for the monetary policy, issuance and management of the national currency and gold reserve, developing and monitoring the infrastructure of the local banking system including processes and procedures, operations and activities and last but not least monitoring and determining the supply and demand of money flow.

The central bank represents Iraq in the international monetary forums and conferences organized by the International Bank, the International Monetary Fund (IMF) and the Arab Monetary Fund

(AMF). The central bank has great responsibilities towards rejuvenating the economy in areas such as growth, inflation, unemployment, interest rates and safeguarding our wealth by countering money laundering.

Considering the above tasks and responsibilities, the central bank has developed a comprehensive strategic plan in alignment with the vision and mission statements for 2016-2020, which produced the following corporate objectives:

1. Stable and solid monetary policy.
2. Competitive and progressive local financial sector.
3. Flexible and adaptive organization.
4. Competent and skilled human resources.
5. Constructive and integrated communication channels and. business relationships.

“The Central Bank of Iraq must adapt a monetary policy that stabilizes the value of local currency, and build up and preserve a stable financial system to establish and promote a free market economy based on competition, sustainable development and business opportunities” .

The Central Bank Act-Clause (3)

See delete zeros document

Page 5 of 32

Challenges and Opportunities

Due to new changes in government economic policy and directions from state-owned and centrally controlled economy to privatization and free market economy, where government’s role and influence is limited and driven by the private sector and foreign investments to take the lead, the Central Bank of Iraq has a critical task to identify and diagnose the opportunities and challenges for such changes and formulate a strategy with effective objectives to ensure economic prosperity and stability.

Disruptions and Breakdowns in Iraqi Economy

For decades, the Iraqi economy has been largely dominated and driven by oil industry, which has impeded and limited the economy to expand and diversify to opportunities and investment in other industries. Therefore, it is imperative for the government to exploit regional and global business opportunities to restructure its economic policy and directions to a competitive and diversified one despite the recent quantitative development quotient in oil production and prices. In addition, the recent global and regional crisis and weak efficiency have limited the emergence and growth of other industries.  All these imbalances had a significant impact on highlighting the growing importance of monetary policy and its power and authority to influence the desired growth rate, particularly, when the government has in its disposal the power and legal authority to formulate the necessary laws, regulations and decisions that will determine the monetary aspects of the national economy. This new orientation has become a major concern for many and therefore, the government must create or develop more effective and influential monetary policy on economic variables, to achieve its goals and objectives.

Page 6 of 32

Motives for Diversification

The decline in oil prices globally, had an enormous impact on economies that are mainly dependent on oil production, particularly in Iraq, combined with recent internal challenges.

Therefore, the Central Bank of Iraq had to respond swiftly to explore opportunities that will minimize the impact of such scenarios, and has adopted an integrated framework and strategy based on extensive financial and economic analysis in order to achieve a structure that provides a long term stability for the adopted monetary policy.

Financial Stability Framework

It seems that the prospect and believe of steady and stable recovery of the global economy and a rapid increase of oil prices again as the main source of revenues is a weak and unrealistic scenario, particularly, when the current market trends continue to demonstrate that there will be more slump ahead. This could cause a serious issue in terms of decline the Gross Domestic Product (GDP) and increase of the unemployment rate. Such economic environment would put pressures and difficulties on the Central Bank to achieve its targets, which therefore, require prudent policies to mitigate the external financing difficulties, and support a calculated correction of the imbalance in the external account and maintaining sufficient liquidity, and enhance the capability of Iraqi economy to attract foreign investments, and international donor and lending institutions. In order to achieve high and scalable growth rates and low unemployment rates, the Central Bank must concentrate and focus on mobilizing and allocating its resources and infrastructure effectively and efficiently.

Policy Coherence and Adjustment

One of the core tasks of the Central Bank is to develop and implement a consistent and well-aligned monetary policy with government funding and spending policy. To achieve this, the Central Bank must identify and introduce new and successful procedures and actions of macroeconomic, since both government’s debt management and cash liquidity directly interact with tools of monetary policy. Another task of the Central Bank is working as an agent to advise and provide the government a range of economic and financial services at the operational level, such as public debt management and the adjustments and registration of securities and bonds. This interactive and balanced relationship between the Central Bank and the Ministry of Finance, where both manage different areas of the balance sheet of the government sector, has attracted serious interests for many Observers for their ability to avoid their differences in policies and priorities setting, which could result in creating risks affecting the economy on large scale.

To adjust and balance this sensitive relationship between the Central Bank and Ministry of Finance and the Financial Securities Authority at different levels, it requires establishing technical committees and special working groups, to ensure that information and data regarding the trends and changes in the financial market locally and internationally are shared and exchanged effectively and continuously. This practice will reduce the risks associated with borrowing concept, liquidity and the money exchange and securities market (locally and internationally) and also will reduce their differences at the operational level to ensure that the cost associated with interest rate is kept at a minimum level.  This strategy on the other hand, will bring efficiency and strong coordination to create a competent and dynamic financial market and hence strong and efficient economy.

“The state is responsible for all economic reforms that are based on modern economic principles, standards and practices to ensure that investment of its resources and development of the private sector are effectively and efficiently implemented and managed”

Article (25) – The Constitution of the Republic of Iraq

Page 7 of 32

Key Features of the Strategic Objectives

This plan has been engineered to firstly, deliver the mission and key objectives of our organization and, secondly, to ensure its complete alignment with the government program-Article (3), which quotes “to create an environment that supports a smooth transition from centrally planned economy to market driven economy, where the Central Bank of Iraq has the leading role to formulate an economic policy that will result in financial and monetary stability and high credibility and trust among people and the government.

Key Features for the Strategic Plan (2016-2020)

The Central Bank has formulated this strategy to stimulate the economy and achieve financial and monetary stability, which ultimately brings prosperity and development in many areas of the society, in particular, the financial and banking system and services similar to those in many developed countries. Therefore, this strategy must focus and aspire on identifying long and short terms key performance indicators and building-up state-of-the-art infrastructures and technologies to meet the demanding challenges ahead and achieve the goals and objectives

In general, we can sum up the key objectives of this strategic plan

(2016 – 2020) as follows:

• Promote and encourage accountability, transparency and corporate governance systems throughout financial and banking sector and in alignment with changes in international standards and practices.
• Embrace and endorse the best financial practices and methods to improve products and services offered by the banking and financial sector, and educate the workforce continuously through training and development.
• Expand the scope of the prudent supervision and update the regulations, procedures, and systems continuously.
• Control the strategic cash reserve through changes in interest rates and minimize the impact and role of the exchange rate in the financial operations and transactions.
• Develop and introduce technology-driven control, audit and payment systems with the necessary mechanisms and actions to facilitate the communication process and to enhance the reliability and credibility of the banking
• Re-structure the organization to create a dynamic and flexible structure that is capable to face and stand the internal changes and external challenges ahead.
• Avert the Iraqi Economy, in general, and the banking sector, in particular, from any negative impacts and consequences of money-laundering operations and criminal activities through effective processes and procedures.
• Support and assist the dynamic small to medium size business enterprises that are considered the driving force for many economies to create jobs and growth
• Create a robust, strong and dynamic infrastructure for the financial and banking sector to advance, improve and grow up with time to provide outstanding products and services, comparable to those in many developed countries.

Page 8 of 32

• Provide the necessary protection tools for consumers and clients of the financial institutions and banks from any fraud, exploitation or discrimination to establish trust and confidence in the system ensure that a high quality of service is continuously available.
• Strengthen monetary and financial integration including capital and investment banking and insurance services among banks and investment companies.
• Develop the human capital through targeted and specific training programs, to identify the emergence of influential leaders, and maintain the core culture and ethical practices of the organization and across all banking sector.

Page 9 of 32

Vision, Mission and Organizational Values

Our Vision

Performance excellence to achieve sustainable economic development and prosperity for our society and citizens.

Our Mission

• Adopting and implementing an effective and efficient monetary policy to create a favourable and sustainable environment for our economy that will deliver long-term stability, growth and confidence in our financial market and the national currency value, protect the purchasing power of our citizens and a solid ground for true and legitimate investments.
• Building efficient institutional governances, systems and procedures for our financial sector, operations and activities that meet international standards and best practices.
• Applying an effective and prudent risk minimization policy to all operations and activities by identifying, analysing and assessing the associated business risks.
• Improving our organization overall performance, by investing in our people and smart technologies combined with effective management practices to achieve our goals

Our Organizational Values

Justice and Equality

Integrity and Transparency

Creativity and Innovation

Teamwork and loyalty

Page 10 of 32

Key Objectives of the Strategic Plan 

1. 1. Solid and stable monetary policy

• Safeguard the financial market against uncertainties.
• Effective and forceful auditing and monitoring systems.
• Safeguard and Support the local financial market with protection mechanisms.
• Credit Classification and rating System.
• Encourage financial comprehension.
• Strong and diversified small businesses sector.
• Strong and effective consumers protection programs.
• Stable and steady exchange rate.

2. Competitive and progressive local financial sector

• Re-structuring of the financial sector.
• Encourage and support transparency and disclosure practices.
• Competitive and reliable Islamic banking industry.
• Establish a specialized entity for deposits guarantee.
• Strong contribution and support to the local financial market.
• Stimulate the market of government debts.

3. 3. Flexible and adaptive organization

• Develop monitoring, supervision and auditing processes and procedures.
• Perform organizational re-structuring.
• Improve the business infrastructure and information technology systems.

4. Competent and skilled human resources

• Human Resources development.
• Develop the skills and competencies of the employees of the financial sector.

5. Constructive and integrated communication channels and business relationships

• Effective and reliable channels for the decision-making processes.
• Strong and reliable cooperation and collaboration with local banks and financial institutions.
• Strong and interest-based ties and agreements with international related organizations

Page 11 of 32

First Corporate Objective: Stable and Solid Local Financial Market

Central Bank of Iraq provides it complete legal Independence and obvious delegation to seek stability of prices and active control authority to implement all incoming requirements in Iraqi Bank law. It also reflects government’s role in financial and economic activities through controlling money transactions in market, setting financial policies, directing resources and production fields towards optimum and active use according to abilities available, releasing bank notes, keeping income level and prices, controlling exchange rates and taking suitable measures for stability of financial and economic life in general, using methods and tools that make it perform efficiently and effectively to do these jobs according to law(56) in 2004. That plays and important role in representation of government and supports its reign on daily life activities(finance – economy -investment – trade  – society).

1. Establish financial stability management

To support financial stability in advance, and to support CBI role in limiting systematic risks and to take helping measures both on macro and micro levels in order to support suitable systems of early alarm suitable with changes in economic environment and to face different crises; the bank made sure to include establishing financial stability management and evaluating risks which takes over determining weakness points that affect financial system and controlling moves needed to face it. It will also be the core to financial system and controlling moves needed to face it. It will also be the core to financial stability through contributing in supporting coordination and information exchange between parties in charge of financial stability and adopting strategic points of view to set policies, instructions emergency plans to manage crises and overcoming financial disorders.

The management also aims to develop policies and tools, exchanging experiences with international organizations and counterparts.

Furthermore, it works on rising awareness of financial stability issues through meetings, workshops, researches and releasing periodic reports.

2. Supporting comprehensive control risk-based systems

CBI made sure to establish control systems to guarantee financial safety and stability of financial system and efficiency in order to keep up with changes and updates. So that the system will be safe from crises and works and monitors according to best standards, especially that are releasing by Basel committee.

Page 12 of 32

3. Safeguarding financial system

In order to make banking section in particular and Iraqi economy in general avoid negative effects of money laundry crimes, a law of fighting money laundry and funding terrorism has been approved recently. In light of the latest updates on international scene in the recent few years, it became a must to take deterring measures against money laundry crimes which threatens financial stability in some countries. The law organizes concepts, measures, sources and sanctions of money laundry as well as adopts framework and measure that banks and other financial corporations have to take in order to avoid taking part of such crimes.

4. Establishing credit information office

According to hedging method and in order to help banks choose their customer in a very high level of trust and professionalism and to lower credit risks, and initiative has been taken to build modern database that includes a set of automated systems and to be available for use by all banks. This office provides database that financial and personal data of debtors and their bailers. It makes query about any customer available whatever amount of credit given which limits credit risks and makes banks and loan associations abler of taking right decisions.

5. Supporting financial comprehensiveness

Generalizing financial services is considered to have a big part in achieving welfare and a very effective part in limiting poverty and aims to support financial comprehensiveness in Iraq and enables all society groups to reach banking services and gives opportunity to get basic services that official financial system offers. We will work on achieving that through setting goals and ambitious reforms led by CBI through using technology, innovations and data to make core changes in business. And by joint initiatives between both private and public sectors that aims to merge efforts to fulfill financial comprehensiveness concept that  enables the poorest groups that are excluded by traditional banking sectors from taking part in participating in economic cycle, through providing them infrastructure and giving the required fund based on savings, money transfer and micro-funding

Page 13 of 32

1. Microfinance

Microfinance is considered as a mechanism to counter poverty and to enable the poor to get a group of financial services in order to create small projects that increases individual income which gives economy more jobs.

It also contributes in improvement of standards of living and narrowing poverty circles and it also works on the unofficial sector to the formal economy. We, CBI fully understand that banking sector in Iraq(in the current status) is unable to do such mission separately, so a separate initiative has been put in the strategic plan to raise awareness about microfinance and to do what is needed to build a comprehensive banking system that can make different economically-active groups take part in it,

Taking in consideration the negative effects made by high demand on loans according to the current banking systems because there are a lot of negatively-affected groups by security and political circumstances. That created a situation of continuous social mobility which increased demand as complete groups of people left homes and that made them leave formal economy as producers, farmers and craftsmen to informal economy to work as hawkers who usually have unstable work or home. This, made it hard for these groups to access banking services.

1. Safeguard financial consumer

CBI is working hard on making efforts to safeguard consumers and balance in relationship between banks and their customers merging that with the comprehensive financial system and raising financial awareness. CBI is working on protecting consumers and focusing on banking sector which supports control aims in order to reach financial stability through making legal frameworks and general concepts and instructions to banking sectors which aims to provide safe environment that protects consumers in order to support control role. And there will be a new department called “consumers safeguarding department” to receive complaints, suggestions and monitor commitment which will help spread protection culture.

6. Exchange rate stability

Exchange rate is considered the main factor in financial economy and plays a very important role in fixing disorders that happen in expenses and it is considered a priority in monetary policy of CBI because it leads to a convenient investment environment as well as stability of prices.  Not to forget that safeguarding stability means keeping national currency otherwise Central Bank’s reserves of hard currency will be exhausted due to supply and demand rules. Supporting national currency will be by encouraging investment, increasing productivity and export levels.

Page 14 of 32

SECOND CORPORATE OBJECTIVE: SUPPORTING AND STRENGTHENING BANKING SECTOR AND FINANCIAL

Strengthening banking system to enable it play its role in monetary and financial policies to support growth and financial stability through filling savings, offering credit facilitations required for projects, supporting privatization projects, improving and activating private market, supporting industry sector, contributing in providing convenient investment environment and creating competitive one, supporting business sector, backing production process and enhancing abroad trade, expanding personal services of customers ,offering consulting funding for production and services  purposes and encouraging foreign investments. So, second strategic objective has included a number of initiatives and plans to support this sector. 

1. Improvement of organization in banking sector

In this regard, CBI put a comprehensive plan to applying governance on Iraqi banking sector and privatization of trade government banks which take part in banking services and expands banking activity base starting from supporting Islamic banking activities, establishing comprehensive banks and supporting them to get long-term loans that suits their funding requirements for improvements projects in different economic sectors.

1. Establishing governance framework

Due to the importance of supporting governance systems in banking sector and keeping up with international improvements in applying the best practices in this field, the plan focuses on implementing fundamentals of good governance through improvements in structure, control and judges that aim to fulfil banking safety and to limit risks that banking sector is facing to make use of governance practices that are represented by monitoring performance by board of directors and top management of CBI and protect the rights of stakeholders and shareholders. So, CBI works on approving an ambitious strategy to support governance of companies in through two things: First, banks, as Joint-stock company have to be pioneers in governance field by building and implementing principles of companies’ governance. Second, banks are one of change tools towards adopting and implementing principles and concepts of governance by companies as banks are main funders.

Page 15 of 32

1. Supporting transparency practices

Our bank will work on making banks implement international accountancy standards and financial transparency as well as providing obvious, easy-to-understand and accurate information about products and services that are offered to customers. This makes customers Know more about advantages and disadvantages of each. Banks also has to take in consideration that information has to include rights and responsibilities of customers, prices and charges each bank deducts in exchange for each service or product and clarifying advantages and risks related to each and the way to end relationship and what the consequences are in order to make the customers abler to make decisions. Advice has to suit customer’s abilities and financial goals, in that course, banks have to highlight products and services that encourages customers. Banks will commit to preparing credit and investment policies approved by board of directors

1. Supporting and developing Islamic banking industry

Islamic banking industry is experiencing wide spread extending to many international financial centers that have invested in this filed, which reflects increase in interest in products and services in such type of banking. Islamic banks have imposed new situation on international baking market and terms like “participation”, “checks” and “joint liability” were added to western banking terms and they could present new understanding of banking transactions.

So, the aim of building and developing Islamic banking industry in Iraq has become a basic part of bank plan for the next 5 coming years. That is because of products and services result from that to take part in development of capital markets and moving monetary policy that is not based on interest that contributes in achieving real economic and social development through investment directly in fields really related to real economy such as industry of goods, services and trade. Furthermore, they partake in financial stability because Islamic funding system is characterized by safety against market damage cause by false capital and it also enjoys high ability to productivity and local market prosperity. 

Page 16 of 32

1. Establishing deposit guarantee corporation

In order to protect customers and support bank stability, the bank aims to establish deposit guarantee corporation that is considered a main part of financial security network and aims to make use of the international experiences in this field, the banks will seek joining The International Association of Deposit Insurers (IADI) to form a corporation that is able to insure customers, especially those who deposit small amounts.

2. Contributing in developing capital markets

To incarnate integration of relationship between financial and banking system, and capital market sector, the bank seeks to develop coordination with banknotes agency and Ministry of Finance to develop capital markets in general and government debt in particular which strengthens market’s flexibility and differentiates its recourses and grants investors access to a wide variety to financial assets that are different based on level of risk and maturity dates. In addition, it differentiates sources of fund and lowers loan costs and this gives this issue high importance due to the current situation of Iraqi economy during such high demand on funding. Developing government stock market is the first step of local funding sectors reform.

1. Refreshment of government debt market

Based on the different tasks that local active stock markets can achieve whether it in financial stability or motivation of financial activities and support of financial policy approach, the plan aims to release a set of motivating initiatives that are represented especially in support and development of reference releases In governmental stock markets and activation of banking meditation and contribution in strengthening and providing intact infrastructure either in exchange systems, information publishing or reducing cash and carry period as well as fixing weakness and lack of liquidity in secondary markets and supporting their ability to stimulate government debt markets through working on providing requirements to expand participation domain ton include investment, saving (provident fund) and insurance companies.

Page 17 of 32

THIRD CORPORATE OBJECTIVE: DYNAMIC, RESPONSIVE AND ADAPTIVE ORGANIZATION

1. Development of monitoring and auditing process

Monitoring has become very significant recently in order to avoid crises and problems. CBI makes sure to put monitoring and supervision systems to guarantee stability and safety of financial system and to guarantee its efficiency according to changes and updates through approving standards and indicators that help reduce risks and avoid crises and considering changes which use banking liquidity, appointing wise management and serious implementation of these standards to guarantee financial and banking systems and making sure there is a strong, safe and active system by developing monitoring and supervision sector which qualifies it to be able to make monitoring approach a reality. In the same time, developing management information system to insure quality and data availability in time.

2. Performing organizational re-structuring

During the fast updates in principles and systems related to infrastructure of financial sector and increasing interest in issues of stability and financial comprehensiveness, CBI works on developing paying methods to keep up with latest developments and supervision requirements of these systems. Not to drop the importance of paying methods which is one of the main three parts of central banks’ functions according to Bank for International Settlements (BIS) which are: Financial policy, monitoring banks and paying methods. That is because they contribute in achieving financial stability based on efficiency and safety of paying systems. In addition to providing services and paying systems that are suitable to meet the requirements of its users, making sure to continue that services and guarantee their availability in a way that contents all users and working on providing what it needs during opening new communication channels and exchanging experiences with international organizations and counterpart banks.

1. Development of structure and process

CBI management adopts a project to develop processes through development of structure and operational model that takes into account the structure requirements that abides by clear policies that cover activities and all bank functions. It also separates these policies from other equipment in number and types with clear selection of permissions in addition to preparing policies and work measure and documenting and studying their effects on meeting customer’s needs.

There will be conditions for selecting employees that is considered an integrated process to reach optimal organization and efficient operational processes for programs and upcoming activities, and preparing suitable infrastructure to work accordingly.

Page 18 of 32

FOURTH CORPORATE OBJECTIVE: DEVELOPMENT OF HUMAN CAPITAL

Stemming from CBI vision to achieve distinguished performance, the strategy focused on development of human resources in CBI and local financial sector corporations as investment in human capital is a basic aspect of building to achieve distinguished performance. In this field, top management will adopt continuous teaching policy for CBI and government and non-Implementing this strategy will be through a set of initiatives CBI will execute internally (CBI employees) and externally (Other government and non-government employees).

1. Human resources in CBI

On the internal level, there will be a comprehensive training plan that focuses on development of bank employees according to their training needs which will be decided using efficiency matrix. The plan will also focus on enhancement of work quality through training programs on quality systems including ISO standards such as ISO 20000 for Information Technology infrastructure. This is hoped to support information protection measures in normal and emergency conditions and develop electronic work environment which will raise quality and efficiency of employees in addition to some special programs and work continuity management as well as international accountancy standards and special standards for Islamic banking and countering money laundry and also Basel and Camels standards. CBI will also work on developing employees’ abilities through seeking vocational certificates in different majors.

1. Human resources in banking sector

CBI works on developing training and special programs for employees in banking sector to reduce the gap between academic competence and vocational qualification according to banking markets requirements and in order to develop employees’ performance and creating innovative leaders. So, CBI’s strategy focuses on activating research center’s role in organizing courses and training programs for local bank’s employees and financial investment companies according to a thorough training plan that meets the most important training needs with the newest technologies and international practices in finance sector. That raises employees’ efficiency in international corporations which is reflected positively on quality of financial services offered to the public and on financial disclosure which supports trust of market in these corporations supporting funding process efficiency.

Page 19 of 32

FIFTH CORPORATE OBJECTIVE: SOLID AND INTEGRATED INTERNAL AND EXTERNAL COMMUNICATIONS AND

Success in fulfilling achievements in economic reforms requires taking a group of procedures and making strategic partnerships with all parties that can affect reform process both on formal and informal sides. Assuring that these procedure do not risk CBI’s independence regarding monetary policy.

1. Building strong basics of decision making

CBI seeks strengthening its consultative role for government through developing and building a trustworthy database to provide statistics, analyze data, releasing reports and studies with basic information which supports bank’s management in providing suitable consults for economic decision makers.

2. Reinforcing corporate relationships

In order to activate mutual cooperation between CBI and government corporations, the bank will work on some procedures to activate coordination with these parties through establishing coordination council for both monetary and financial policies and forming technical work groups and preparing notes of understanding and organizing roles and opinions about expectation, local loans and the best ways of facing interest costs for example.

3. Strengthening international cooperation

CBI aims to strengthen relationships with international financial corporations and determine parties it needs to work with. This cooperation includes a wide set of activities as it works on reinforcing joint training programs within special and advanced programs that guarantee enhancement of abilities as well as active participation in conferences and workshops organized by international parities as well as those organized by CBI. Especially, those workshops and conferences that include technical level and policies. The bank seeks twinning agreements in order to build strong bonds with international organizations that act the same.

The bank also works on linking Iraqi banking system to international system through joining international organizations to achieve higher levels of banking services.

Page 20 of 32

Appendix: Corporate, and Business Objectives and Initiatives of the Strategic Plan

Page 21 of 32

First Corporate Objective: Stable and Solid Local Financial Market

Business Objectives: Safeguard the financial market against uncertainties

Initiatives and Projects

• Establish a regulatory framework with effective policy and processes and procedures for the responsible departments to counter uncertainties and turbulences in the local financial market.
• Identify and analyze business and financial risks and weaknesses in the financial market, particularly those in payment and settlement systems and in disagreement with international financial practices and standards.
• Implement an effective framework to improve coordination and cooperation channels for the related departments and authorities.
• Develop and apply a scenario-based mathematical model to identify, analyst and weigh out business and financial risks in the financial systems before it elevates to crisis or disaster situation.
• Develop and formulate with appropriate sections the necessary policy, processes and performance indicators for risks and credit rating classification to determine the value of financial assets accurately.

Business Objectives: Effective and forceful auditing and monitoring systems

Initiatives and Projects

• Develop and implement an organizational framework based on risks identified compatible with Basel Ill Accord and standards.
• Design effective and prudent monitoring and auditing processes and procedures for the financial sector with effective performance indicators.
• Implement an evaluation/assessment system for the local banks and financial institutions in accordance with CAMELS system.
• Identify a group of performance indicators to measure and manage business and financial risks.

Page 22 of 32

Business Objectives: Safeguard and support the logical financial market with protection mechanisms

Initiatives and Projects

• Develop and implement a national strategy to counter money laundering and terrorism financing.
• Develop and implement a regulatory framework for related entities to provide and facilitate effective auditing and monitoring processes.
• Review and update the procedures and work instructions of the local financial institutions in accordance with international standards and practices.
• Promote and encourage local banks to review and update their internal control and audit systems to prevent and combat money laundering and terrorism financing in accordance with the required international standards, including joining the Egmont Accord and FATF organization for

Middle East and North Africa.

• Establish bilateral memorandum of understanding with local and international organizations to combat money laundering and terrorism financing.
• Update and upgrade information technology applications in accordance with ISO27001 and ISO20000 international standards.

Page 23 of 32

Business Objectives: Credit Classification and rating System

Initiatives and Projects

Establish a credit information and rating centre to gather and organize information received from banks and provide the centre with necessary tasks and responsibilities, procedures and resources in accordance international practices and standards.

• Develop a regulatory framework to collect, classify and analyze credit information and ratings for customers and banks to ensure transparency and integrity and minimize credit risks.
• Use the credit classification and rating system to grant and deny certain financial institutions
• and banks the access to banking and credit information of their customers and clients.

Business Objectives: Encouraging financial comprehension

Initiatives and Projects

• Develop a national strategy for financial comprehension.
• Support and promote the new culture and philosophy in the financial sector.
• Develop a special entity to protect consumers’ rights and banks obligations.

No New Resolution On Delete The Zeros Project from Richard Morris on Vimeo.

Page 24 of 32

Business Objectives: Strong and diversified small business sector

Initiatives and Projects

• Establish a special unit, responsible for developing and implementing an effective strategy to finance small businesses including:
• Reviewing and updating legislations that sport small business sector
• Establishing a national data and information centre
• Coordinating activities and operations to finance small business sector
• Develop and encourage multiple credit funds and joint enterprises between the government and private sector.
• Establish benchmarks and standards for performance evaluation.
• Review and improve procedures for local banks and other financial institutions supported by research studies that directly affect the progress of small business sector.
• Develop special training programs and workshops to improve competencies and skills for employees in the Central Bank and local banks and financial institutions
• Design training programs and awareness campaigns for government entities and related organizations responsible for policies development.

Business Objectives: Strong and effective consumers protection programs

Initiatives and Projects

• Develop a working framework including processes and procedures for the local banks and financial institutions to minimize related risks and provide maximum protection and confidence for consumers within three dimensions:
• Supervisory and auditing dimension, which covers a group of methods, applications and practices that, must be implemented to ensure that consumers’ rights are protected.

Page 25 of 32

Business Objectives: Strong and effective consumers protection programs

Initiatives and Projects

• Legislative dimension, which includes a group of legislations and laws to protect rights and obligations of consumers and banks and financial institutions.
• Educational and awareness dimension, which includes a group of activities and practices that improve the awareness about financial sector and its systems.

Business Objectives: Stable and steady exchange rate

Initiatives and Projects

• Re-structure the non-banking financial institutions particularly those in money transfer and exchange through:

– Withdraw excessive cash in the market and regulate sufficient amount of banknotes.

– Diversify investment tools qualitatively and timely and introduce convertible new currencies

– Authorize responsible department(s) to perform and utilize their tasks and duties in purchasing and selling of foreign currencies and Investment tools.

– Re-structure or review periodically the interest rates. 

Page 26 of 32

Second Corporate Objective: Dynamic and progressive local financial sector

Business Objectives: Restructuring of the financial sector

Initiatives and Projects

• Develop a governance framework for local banks and financial institutions including:
• A comprehensive study to identify the differences between Basel Ill Accords and economic cooperation organization (ECO) for banking and financial governance.
• Any changes to the national legislations and regulations, and auditing and supervision authorities (including the Central Bank and Companies Registrar and currency exchange authority).
• A working manual with appropriate instructions for banks and financial institutions in accordance with international standards and practices.
• A customer satisfaction survey for the local banks and financial institutions

Business Objectives: Encouraging and support transparency and disclosure practices

Initiatives and Projects

• Develop a plan with gradual shift and timetable to force local banks and financial institution to implement international accounting standards.
• Issue clear and effective working instructions to enhance the transparency and disclosure practices in financial and banking transactions across all sectors

Business Objectives: Competitive and reliable Islamic banking industry

Initiatives and Projects

• Develop the accounting systems of Islamic banking.
• Support and encourage long-term plans of the Islamic banks to expand their presence and operations with introduction of a wide range of their products and services in the local financial market.
• Provide the legal infrastructure for the lslamic banking with necessary laws and regulations that will allow commercial banks and other financial institution to tap into this

Page 27 of 32

• Develop appropriate guidelines and policies including an integrated audit and monitoring

Procedures and applicable liquidity for the lslamic financial market and banks.

• Establish special training programs for Islamic banking and accounting systems and internal audit processes.
• Develop prudent standards and reporting tools on adequate capital and solvency and liquidity consistent with guidelines and regulations of Islamic banking.

Business Objectives: Establish a specialized entity for deposits guarantee

Initiatives and Projects

• Develop an integrated working framework to establish an entity for deposits guarantee including the legislative requirements, mobilization and allocation of adequate resources.
• Explore the opportunities for the local entities to join the International Deposit Insurance Corporation (IADI), which provides assurance and security on client’s deposits

Business Objectives: Strong Contribution and support to the local financial market

Initiatives and Projects

• Establish a structural framework between the Central Bank and Ministry of Finance and Financial Market Authority to settle and improve operations in the financial market using payments and stock exchange system.
• Expand the secondary market and improve its competence through activation of re -sale agreements among banks and financial institutions
• Establish effective mechanisms to promote and strengthen the central depository and settlement systems and to reconcile the clearing and settlement of securities trading with payment systems.
• Monitor and evaluate the functions of existing clearing and settlement systems in accordance to the Basel Ill Accord Standards for payment and settlement systems.
• Assess the extent of compliance with international transfers in the Central Bank to the World Bank requirements and the

Committee of payment and settlement systems.

• Allow investors to expand and diversify their portfolios into government securities markets through:

Page 28 of 32

– Identifying the needs and requirements for investors’ participation in the primary and secondary markets.

– Promoting a transparent registration process and pricing disclosure and expand IPO methods.

• Develop new business opportunities in issuance of government securities for long periods to:

– Determine the scale of government revenue.

– Develop a pricing index for all assets and other financial instruments.

– Highlight and group the phenomenon of scattered tools and versions of government debt in one integrated system.

Business Objectives: Stimulate the market of government debts

Initiatives and Projects

• Urge the ministry of finance to develop a clear annual strategy for debts management
• Develop new practices for government securities and bonds issuance to stimulate brokerage market
• Build up an advanced technology infrastructure for trading systems and information disclosure.
• Broaden the participation circle to include savings and investment funds (such as fund retirement) and insurance companies.

Page 29 of 32

Third Corporate Objective Dynamic, responsive and adaptive Organization

Business Objectives: Develop monitoring, supervision and auditing processes and procedures

Initiatives and Projects 

• Develop a new classification system for local banks and financial institutions in accordance with
• CAMELS system.
• Create the “Risk Analysis and Management” department.
• Embrace and implement the requirements of Basel Ill accord on local banks and financial institutions
• Support the business continuity environment through:

-Issuance of comprehensives monitoring and supervision instructions in accordance with those issued by the United Kingdom Institute for business continuity and Basel II accord for the financial and banking organizations

-Increase awareness level for business continuity including operations and activities strategies for business infrastructure

-Attract skilled, experienced and competent professionals to improve and train our employees skills and competencies

-Rectify monitoring and auditing activities on payment systems including coordination, assessment and change implementation.

Business Objectives: Perform organizational re-structuring

Initiatives and Projects

• Re-structure the organization chart in accordance to the revised central bank act, its by-laws and the revised tasks of each department.
• Develop and implement a performance management system including recruiting process based on competency and experience selection
• Implement international quality, occupational health and safety and environmental systems in accordance with ISO9001, ISO14001 and OHSAS18001 respectively.
• Develop and implement a Core Banking System to convert all activities, operations and transaction in the organization from paper based to a unified electronic system. 

Page 30 of 32

• Develop and implement a set of key performance indicators for each department to ensure accomplishment of each task, initiative, objective is met with high standard of outcome
• Conduct a comprehensive business process re-engineering on Central Bank’s procedures and processes

Improve the coordination and communication channels among various departments and sections and provide more flexibility and independency for different levels of leadership and management

Business Objectives: Improve the business infrastructure and information technology systems

Initiatives and Projects

• Develop a state-of-the-art system for credit information exchange.
• Implement clouding and virtual computing
• Re-design the current organization Website to include economic reports and statistics in inflation, unemployment rate, gross domestic product for academic and business purposes
• Develop a state-of-the-art data and information centre and backup system including a documentation system comply with international standards and practices
• Automate and integrate Central Bank’s financial systems such as National Switch,
• Payments, Financial Transaction and Operations and IBAN in one system
• Introduce the XBRL technology for report making and security requirements for checks
• Develop and implement the Electronic Dinar {ED) system for payments in government ministries

Page 31 of 32

Forth Corporate Objective: Competent and skilled human resources

Business Objectives: Human Resource Development

Initiatives and Projects

• Develop a strategy to attract competent and experienced professionals in various disciplines and design a corporate training plan to improve the competency and skills of our employees.
• Implement total quality management standards and practices and knowledge management programs, particularly, those related to information technology such as Information Technology Infrastructure Library (ITIL Frameworks and ISO20000) and Information Security Management (ISO27001).
• Develop a comprehensive performances management program including implementation of competency matrix concept for each position

Business Objectives: Develop the skills and competencies of the employees of the financial sector

Initiatives and Projects

• Develop a comprehensive and prioritized training plan for the financial sector to include all pivotal points in the strategic plan, particularly, those related to prudential supervision, transparency and processes and procedures and Basel IU accord.
• develop and design specific awareness programs for employees of financial sector in consumers’ rights protection and highlighting the importance of electronic services

Page 32 of 32

Fifth Corporate Objective Solid and integrated internal and external communications and relationships

Business Objectives: Effective and reliable channels for the decision-making process

Initiatives and Projects

• Develop a comprehensive and secured database and information structure as a platform for business analysis and statistical reports
• Support a new field of studies and reports to enable the top management the provide sensible economic consultation and policies for the government

Business Objectives: Strong and reliable cooperation and collaboration with local banks and financial institutions

Initiatives and Projects

• Establish a cooperative council with working mechanisms to share and exchange information and appropriate recommendations with related government organizations in relation to financial and monetary policies.
• Design educational and awareness workshops and training programs in developing economic policies and strategies
• Preserve the required liquidity for those struggling banks and financial institutions to stabilize the financial market

Business Objectives: Strong and interest-based ties and agreements with international related organizations

Initiatives and Projects

• Expand lraq’s presence and relations with other central banks to enhance its reputation in the international arena.
• Establish bilateral accords with other central banks and international financial organizations that will assist the Central Bank to implement international standards and practices.

Central Bank of Iraq Strategic Plan 2016-2020 Translated With Missing Pages
https://goo.gl/VVyOF5 – The Central Bank of Iraq has released the 2016-2020 Strategic Plan, however, there were more than 10 missing pages. See a preview in this video. The translations will be made available for everyone to see the missing pages at the link above.

If you are not already a subscriber to my free newsletter on the Iraqi Dinar, sign up here – https://goo.gl/0XNCmL

Here is my other Iraqi Dinar YouTube Channel – https://goo.gl/8mLcOa

The official Global Currency Reset Facebook group where you can ask questions – https://goo.gl/ZYSeRw

For those more interested in the Iraqi Dinar here is the Facebook page – https://goo.gl/WlKgbH

More Documents on the Iraqi Dinar and translations from the Central Bank of Iraq – https://goo.gl/Cz4vSf

iTunes Podcast – https://goo.gl/d0sHr9

Comments

comments