According to an economic report, the possible Turkish-Iraqi-Iranian bloc is a step towards strengthening the economies of the region
New international praise for the Iraqi government's reforms
The Iraq Economic Contact Group, which includes the seven countries, the European Union and the World Bank, praised the economic reform steps adopted by the Iraqi government in accordance with the White Paper plan.
The group stated, according to a statement by the Ministry of Finance, that "the Iraq Economic Contact Group welcomed the success of the democratic electoral process in Iraq, and expressed his hope for the formation of a new government that would take upon itself the completion of the economic and financial reform program."
The statement stressed that "economic reforms are required to ensure diversified and inclusive economic growth, create sustainable job opportunities for young people, empower the private sector, and diversify sources of revenue outside the scope of oil revenue."
He stressed the "importance of continuing to implement reforms in the interest of developing human capital and providing basic services."
The contact group's statement also called on "the future Iraqi government to pay great attention to the reform package and to ensure its rapid and orderly implementation, and to provide all forms of support to the White Paper as it is an important tool in continuing to achieve reform goals."
It is worth noting that the Iraqi Economic Contact Group is an international alliance that emerged from the Group of Seven industrialized countries, the European Union, in addition to the World Bank last year, to support the efforts of the Iraqi government towards implementing its pivotal reform program represented in the White Paper
Iraq submits a proposal to form an economic bloc of three countries
Today, Thursday, the Ministry of Commerce announced that Iraq has submitted a proposal to form an economic bloc of three countries, indicating that the goal is to compete with the economies of the world.
A spokesman for the Ministry of Commerce, Muhammad Hanoun, said in a statement to the Iraqi News Agency (INA): “Iraq proposed during the Economic Forum for Investment and Contracting in Turkey the importance of forming an economic bloc from the regional countries (Iraq, Turkey and Iran), noting that” the goal of forming the bloc as an economic competitor It competes with the economies of the world because of the economic effects that these countries have.”
He explained, "Iraq presented its vision of forming an economic bloc to compete with economic developments and confront other blocs," noting that "the region needs an economic bloc that possesses wealth, money and labor to compete with the world's economies through an economic bloc capable of confronting economic blocs that already exist."
He added, "Iraq, through the Ministry of Trade, put forward an idea in Turkey to form an economic bloc," noting that "it will be presented in the form of a proposal through the Council of Ministers or the Ministry of Foreign Affairs and our commercial attaches, and communication will be made with countries in order to exchange ideas and information and how to form the bloc. What are the qualifications for the ability to face problems?
Hanoun added that "the Ministry of Commerce seeks for the economy to be the one that leads the policy, and therefore the economy today is the engine for the economies of the world," explaining that "the first step began in Turkey and was an Iraqi message that the economy must play a key role in political engines and a tool for protection." The region, through compatibility with other blocs, needs the resources and wealth in the region.”
He stated that "Iraq possesses great and enormous wealth that allows it to be a major economic player," pointing out that "there are problems that have had a dimension of economic backwardness and the lack of a clear economic vision. First, towards strengthening economic relations, and then towards the world.”
Hanoun stressed, "the need for Iraq to return to an important economic player, and all indicators allow it to be able to compete and enter into one of the important axes that manage the wheel of the economy in the world," noting that "the Iraqi delegation in Turkey stressed the need for international companies to enter Iraq to invest to build Factories, importing machines and equipment, relying on the national product, self-capacity, and rehabilitating banks, and this was discussed in Turkey to benefit from the Turkish expertise.
He explained, "Iraq needs well-thought-out decisions that have the ability to change through an economic policy that allows it to benefit from its experiences and the competencies of its children.
Record collapse of the Iranian currency
The Iranian currency (riyal) recorded today, Wednesday, a new collapse against foreign currencies in the exchange market, as the price of one US dollar reached 293,000 Iranian riyals, which is the largest collapse recorded by the currency since the arrival of the hard-line Iranian President Ibrahim Raisi to power and the formation of his government. last August.
The price of the euro was 327 thousand riyals, while the price of the pound sterling was 390 thousand Iranian riyals.
The rise in foreign exchange and gold prices in Iran comes on the eve of the meeting of the Board of Governors of the International Atomic Energy Agency, and the holding of a new round of talks on reviving the Iranian nuclear agreement with international powers, starting next week in Vienna.
Due to the relatively large difference between the price of the “National Stock Exchange” currency and that of the free market currency, Iranian exchange offices have witnessed long queues to buy the currency in recent weeks.
According to economic experts, the recent rise in the exchange rate in Iran is more due to political developments and the visit of Rafael Grossi, Director General of the International Atomic Energy Agency, to Iran, as well as the start of a new round of negotiations with Iran.
According to these experts, due to concerns about the outcome of the Vienna nuclear talks, the dollar tended to rise, as it jumped 4,000 riyals in one day.
At a meeting of the International Atomic Energy Agency's board of governors on his visit to Tehran on Wednesday, Rafael Grossi said his talks with Iran on safeguards were "not fruitful" despite his efforts.
Referring to his visit to Tehran, Grossi said: "Iran has not yet commented on the origin of uranium particles found in some nuclear facilities."
The Iranian government is trying to cancel the government dollar price approved by the government of former President Hassan Rouhani at a value of 42,000 riyals, by submitting a bill to the Iranian parliament.
Government officials in Iran claim that the purpose of the bill is to “change the recipients of the foreign currency (dollars) subsidized by the government.”
According to an economic report, the possible Turkish-Iraqi-Iranian bloc is a step towards strengthening the economies of the region
Attention is drawn to a possible joint step between Turkey, Iraq and Iran, represented in the establishment of a joint economic bloc, which may be the necessary step to strengthen the economies of not only the three countries, but also to support the region.
The economic report published here today stated that if practical steps are taken to activate this bloc, there are several benefits that can accrue to everyone, provided that there is better political and security stability in Iraq, where Turkey and Iran can supply Iraq with the establishment of joint industries that improve the structure of Iraq's GDP. .
The report added that in the event of the development of forms of integration between the countries of the bloc, Iraq would be in a better position in terms of diversifying its economy, so that oil would be one of the resources, and the agricultural sector could be developed there after reaching shares of water that Turkey would pay to Iraq.
Iraq will not be the only beneficiary, but Turkey will have a better opportunity to expand its regional relations, which will increase its regional position in a geopolitical framework, and its inter-trade with both Iran and Iraq will be in a better position.
What can achieve a better outcome for the bloc will be the lifting of sanctions on Iran, which will enable Turkey to contribute significantly to the development of its infrastructure, which is reflected well on the Turkish companies specialized in this field, from the construction of roads and power stations, as well as the establishment of many One of the industries that can come within the framework of the partnership between the two countries.
As for the developments that will occur in the economic relations of the countries when the bloc is formed, the report saw that there are a number of developments that can improve relations between the countries of the bloc through the economic gate, even if there are some obstacles, such as that Iran is not a member of the World Trade Organization, and Turkey is It adheres to certain customs and trade agreements with the European Union.
The three countries may be eligible to bypass the free trade zone stage in the short term, and move to the customs union stage, which will take a period to rehabilitate Iran and Iraq to keep pace with their systems with Turkey, which is more integrated into the global economy.
As for the repercussions of the possible bloc on neighboring countries and the region, it provokes other gatherings in the region, especially the Gulf Cooperation Council, whose position has been shaken significantly since the crisis of the blockade of Qatar in June 2017.
The expected bloc can also be considered as facing the trend of normalization with Israel, to which 4 Arab countries joined in 2020, namely, the UAE, Bahrain, Sudan and Morocco.
And the bloc can be employed in a positive framework, so that it accommodates the Arab countries wishing to join it, and in this case it will be considered a fulfillment of the desire of many experts for the need to achieve integration between the Arab countries, Iran and Turkey, which will improve the region’s situation in the areas of confronting other regional blocs at the world level.
It is also necessary to make real efforts to develop the road transport network between the countries of the bloc, which leads to the ease of the flow of goods, as well as shortening the time related to shipping and the rest of the procedures, as well as facilitating the procedures for inter-investment for those countries.
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