Guidance Manual for the Iraqi Balance of Payments 2024

Guidance Manual for the Iraqi Balance of Payments according to the IMF's 6th Edition Central Bank of Iraq Statistics and Research Department Balance of Payments and Foreign Trade Division

1. Current Account Current account: The current account displays the flows of goods, services, primary income, and secondary income as a result of transactions between residents and non-residents. It is also defined as the difference between the total exports and income receivable on one hand and the total imports and income payable on the other hand (exports mean goods, services, and imports as well).

1.1 Trade balance It is the difference between export value and import value on FOB basis.

1.1.1 Export (FOB) That is, the sale is on the condition of delivery on board the ship, i.e., (the seller is responsible for the goods until they are loaded on board the ship) and includes government exports and private sector exports.

1.1.1.1 Crude Oil 1.1.1.1.1 Governmental 2.1.1.1.2 Private 1.1.1.2 Oil Products 1.1.1.2.1 Governmental 2.1.1.2.2 Private 1.1.1.3 Other Exports

1.1.2 Imports (CIF) Cost, insurance and freight (which means that the seller is responsible for the goods until they arrive at the destination port).

1.1.2.1 Governmental Imports 1.1.2.1.1 Consumer (Current) Imports 1.1.2.1.1.1 Electrical Energy / Current 1.1.2.1.2 Capital Imports 1.1.2.1.3 Product Oil Imports 1.1.2.1.4 Other Governmental Imports 1.1.2.1.5 Currency Printing Costs 1.1.2.2 Private Sector Imports 1.1.2.2.1 Consumer (Current) Imports 1.1.2.2.2 Capital Imports 1.1.2.2.3 Product Oil Imports

2.1 Services Services account: is the account where all service transactions are recorded. It includes:

2.1.1 Manufacturing services for material inputs owned by others It includes processing, assembly, labeling, packaging and similar operations carried out by establishments that do not own the commodity, where the manufacturing process is carried out by an entity that does not own the commodity (oil refining, natural gas liquefaction, clothing and electronics assembly, with the exception of packaging operations related to transportation, which fall within transportation services).

2.1.2 Maintenance and repair services Maintenance and repair work carried out by resident entities on goods owned by non-residents.

2.1.3 Transportation services It is the service of transporting passengers, shipping goods and other transport.

2.1.3.1 Sea Transport 2.1.3.1.1 Sea Passenger Transportation 2.1.3.1.2 Sea Freight 2.1.3.1.3 Other/Sea Freight Others 2.1.3.2 Air Transport 2.1.3.2.1 Air Passenger Transportation 2.1.3.2.2 Air Freight 2.1.3.2.3 Other Air Transport 2.1.3.3 Others/Roads, Railways, Pipelines and Space Transport 2.1.3.3.1 Other/Passenger 2.1.3.3.2 Freight 2.1.3.3.3 Other/Other/Goods Storage and Packaging 2.1.3.4 Postal services and mail delivery

2.1.4 Travel Services Goods and services purchased during a visit from an economy for personal use and as gifts, and are divided into business travel and personal travel.

2.1.4.1 Official Travel 2.1.4.2 Personal Travel 2.1.4.2.1 Medical Travel 2.1.4.2.2 Study Travel 2.1.4.3 Other (Tourism) 2.1.4.4 Others (Hajj, Umrah, and visiting the holy shrines)

2.1.5 Construction Services This item includes the construction, renovation and repair of fixed assets and these assets are in the form of buildings and improvements of an engineering nature to be introduced on land and other engineering constructions such as roads, dams and bridges and also includes installation and assembly related works, and also includes within the construction goods and services purchased by the institutions carrying out construction work from the economy in which the site is located.

2.1.5.1 Abroad purchased services & Goods 2.1.5.2 Locally purchased services & Goods

2.1.6 Insurance and pension services Insurance services for goods and persons.

2.1.6.1 Direct Insurance 2.1.6.1.1 Commodity Insurance 2.1.6.1.2 People Insurance 2.1.6.2 Reinsurance 2.1.6.3 Ancillary insurance services 2.1.6.4 Unified and Guaranteed Pensions and Services

2.1.7 Financial services This item includes financial brokerage services and auxiliary services other than insurance, usually provided by banks and other financial companies, including (receiving deposits, lending, letters of credit, credit card services, commissions and fees related to financial leasing, underwriting and clearing guarantee, as well as financial consulting and custody of financial assets) etc.

2.1.7.1 Clearly calculated financial services and other financial services 2.1.7.2 Indirectly measured financial intermediation services

2.1.8 Fees for the use of intellectual property not included elsewhere Includes exclusive rights (such as patents, trademarks, copyrights, industrial processes and designs, including trade secrets and franchise rights).

2.1.9 Telecommunications, computer and information services These services include broadcasting or disseminating audio or video information, data or information from telephones, telex, telegraph, radio and television programs, e-mail, fax and others.

2.1.9.1 Wired and wireless 2.1.9.2 Computer 2.1.9.3 Information 2.1.9.3.1 News agencies 2.1.9.3.2 Other Information

2.1.10 Other business services Research and Development services include legal, accounting, management consulting, administrative services, public relations, advertising services, engineering services, waste treatment (environmental) services, operational leasing services, trade-related services, business placement services, security and investigation, translation services, photography services, building cleaning services, personal and cultural services, audiovisual services, goods and services obtained by embassies, goods and services obtained by international organizations from abroad, goods and services obtained by military units from abroad, and other government services.

2.1.10.1 Research and development services 2.1.10.2 Professional services and administrative consulting services 2.1.10.2.1 Legal 2.1.10.2.2 Accounting (Auditing) 2.1.10.2.3 Administrative consulting 2.1.10.2.4 Administrative 2.1.10.2.5 Public relations 2.1.10.2.6 Advertising, market research, and public opinion surveys 2.1.10.3 Technical services, trade-related services and other business services 2.1.10.3.1 Architectural, engineering and other technical services 2.1.10.3.2 Trade-related services 2.1.10.3.3 Waste treatment, pollution control, agricultural services, and mining services 2.1.10.3.4 Operational leasing services 2.1.10.3.5 Other 2.1.10.3.5.1 Security and investigation 2.1.10.3.5.2 High Electoral Commission 2.1.10.3.5.3 Recruitment of workers 2.1.10.3.5.4 Translation 2.1.10.3.5.5 Building cleaning 2.1.10.3.5.6 Photography

2.1.11 Personal, cultural and entertainment Audio-visual services, related services, personal, cultural, and promotional services.

2.1.11.1 Audio-visual and related services 2.1.11.2 Other personal, cultural and promotional

2.1.12 Government goods and services not included elsewhere Goods and services provided or obtained by governments, such as embassies, military bases, and international organizations, in addition to the goods and services obtained from the host economy by members of the diplomatic corps and consular corps workers, in addition to the services obtained by governments and not included in other categories of services.

2.1.12.1 Military 2.1.12.2 Embassies 2.1.12.3 International organizations 2.1.12.4 Other/services provided or obtained by governments and not included in other categories of services

3. Primary Income It shows the primary income flows between resident and non-resident institutional units. Primary income represents the return that accumulates to the institutional units for their contribution to the production process or for providing financial assets and leasing natural resources to other institutional units. It consists of:

3.1 Workers' compensation It is the income from production operations, which is the total compensation in cash or in kind (in the form of goods and services) for their work during the accounting period (it must be less than a year).

3.2 Investment income It is the income that comes from interest payments, dividend distributions, and capital gains realized from the sale or purchase of securities. Most people obtain a large portion of their total net income through employment income.

3.1.2.1.1 Direct Investment 3.1.2.1.1.1 Equity Income from Ownership 3.1.2.1.1.2 Interest 3.1.2.1.2 Portfolio Investment 3.1.2.1.2.1 Equity Income from Ownership 3.1.2.1.2.2 Investment income attributable to investment fund holders 3.1.2.1.2.3 Due Interest on Debt Securities 3.1.2.1.3 Other Investments 3.1.2.1.3.1 Equity Income from Ownership 3.1.2.1.3.2 Interest 3.1.2.1.3.2.1 Ministry of Finance 3.1.2.1.3.2.1.1 Overnight Investment Interest 3.1.2.1.3.2.1.2 Government Loans Interest 3.1.2.1.3.2.1.3 Other Revenues 3.1.2.1.3.2.2 Ministry of Defense 3.1.2.1.3.2.3 Commercial Banks 3.1.2.1.3.2.3.1 Earned Interest on Deposits 3.1.2.1.3.2.3.2 Interest Earned on TBI Deposits 3.1.2.1.3.2.3.3 Interest on Loans/Other Sectors 3.1.2.1.3.2.3.4 Investment income attributable to policyholders in insurance systems 3.1.2.1.4 Reserve Assets 3.1.2.1.4.1 Equity Income from Ownership 3.1.2.1.4.2 Interest 3.1.2.1.4.2.1 Central Bank 3.1.2.1.4.2.1.1 Overnight Investment Interest 3.1.2.1.4.2.1.2 Current Account Balances Interest 3.1.2.1.4.2.1.3 Foreign Currency Deposits Interest 3.1.2.1.4.2.1.4 Special Drawing Rights Interest 3.1.2.1.4.2.1.5 Overdrawn External Accounts Interest 3.1.2.1.4.2.1.6 Foreign Treasury Bills Interest 3.1.2.1.4.2.1.7 European Investment for Foreign Banks Interest 3.1.2.1.4.2.1.8 Euro Clear Interest 3.1.2.2 Other primary income It includes (rent, which represents the income due for making natural resources available to another institutional unit, taxes and subsidies on products and production, and grants received by the resident institution as a result of its production activities, such as grants to mitigate pollution).

4. Secondary Income These are current transfers between residents and non-residents. These Transfers can take the form of cash or in kind, and they consist of:

4.1 General government (official transfers) It includes (current taxes on income, wealth, and others, social contributions, social benefits, current transfers linked to international cooperation, and various current transfers to the general government).

4.1.1 Income taxes 4.1.2 Social contributions 4.1.3 Social benefits 4.1.4 Miscellaneous current transfers from the general government 4.1.5 Current transfers linked to international cooperation 4.1.6 Current grants 4.1.6.1 International Grants 4.1.6.2 Other Grants (International organizations)

4.2 Private transfers (financial and non-financial companies, households and non-profit institutions) It includes: financial and non-financial companies, households, and non-profit institutions that serve households, such as (personal transfers, other current transfers such as current taxes on income and wealth and others, social contributions, social benefits, net non-life insurance premiums, claims Non-life insurance, current transfers linked to international cooperation, miscellaneous general government current transfers).

4.1.2.1 Personal transfers 4.1.2.1.1 Transfers from Iraqi workers for more than one year 4.1.2.1.2 Retirement 4.1.2.1.3 Lottery and other forms of gambling 4.1.2.2 Other current transfers 4.1.2.2.1 Social contributions 4.1.2.2.2 Social benefits 4.1.2.2.3 Net non-life insurance premiums 4.1.2.2.4 Non-life insurance claims 4.1.2.2.5 Various current transfers 4.1.2.2.5.1 Subscriptions to unions and organizations other than international ones 4.1.2.2.5.2 Fines imposed except those mentioned in income 4.1.2.2.5.3 Taxes based on the banking system's data 4.1.2.2.5.4 Compensation based on the banking system's data 4.1.2.2.6 Other transfers 4.1.2.7 Current transfers linked to international cooperation 4.1.2.8 Social security salary 4.1.2.9 Current taxes on income and wealth

2. Capital account The capital account shows capital transfers received or paid between residents and non-residents, and the acquisition or disposition of non-productive non-financial assets between residents and non-residents.

2.1 Total acquisition or disposal of non-productive assets 2.2 Capital transfers 2.2.1 General government 2.2.1.1 Debt exemption 2.2.1.2 Other capital grants 2.2.1.2.1 Investment grants 2.2.1.2.2 Capital taxes 2.2.2 Financial institutions, non-financial companies, households 2.2.2.1 Debt exemption