Iraqi Dinar News Catch up Iraqi News for November 8th and 9th 2022
An economist reveals Kurdistan’s share of the 2023 budget, according to the political agreement
The economic expert, Nabil Al-Marsawi, revealed today, Tuesday, the Kurdistan region’s share of the 2023 budget, according to the political agreement.
Al-Marsawi said in a clarification followed by Earth News, "According to information received from Kurdish sources, the region's share in the 2023 budget will be the same as its share in the 2021 budget, meaning that it will receive 200 billion dinars per month while its oil remains for it", and it is noteworthy that the exchange will start from October The current second.
He added, "This is part of the political spending under which the government was formed, and this information can only be verified when the 2023 budget bill is completed."
122 trillion dinars, the Iraqi financial revenues in September are 96% for oil
The Ministry of Finance issued the Iraqi state accounts for the month of September for the fiscal year 2022, which indicated that the volume of financial revenues amounted to more than 122 trillion dinars and a financial surplus of more than 38 trillion dinars, while it indicated that the contribution of oil to the federal budget is still 96% for the month. Sixth in a row, while an economist called for the necessity of activating the economic sectors.
Shafak News Agency followed the data and tables issued by the Ministry of Finance in the current month of November for the accounts of last September, which indicated that oil is still the main resource for Iraq's general budget, reaching 96%, which is the same percentage for the past six months, which indicates that the rentier economy is The basis for Iraq's general budget.
Through the financial tables, it was shown that the total oil revenues for the month of September amounted to 122 trillion and 796 billion and 502 million and 987 thousand and 111 dinars, which represents 96% of the total revenues, while the total non-oil revenues amounted to 4 trillion and 958 billion and 597 million and 101 thousand and 636 dinars, which constitute 4% of the total revenues, indicating that the total expenditures with the advances amounted to 84 trillion and 666 billion and 606 million dinars.
According to the finance table, the budget surplus for the month of September amounted to 38 trillion and 129 billion and 896 million dinars, or the equivalent of 26.115 billion dollars.
For his part, the financial expert, Hilal al-Taan, called in an interview with Shafaq News Agency to "accelerate the diversification of the Iraqi economy and get rid of the rentier economic system in light of the high budget of Iraq and the existing surplus in order to free itself from dependence on oil as a basic material in Iraq's annual budget," noting that "the prices of Oil is affected by economic, political and health fluctuations in the world and by violent shocks as a result of fluctuations in global demand.”
He added, "The countries of the world began to move towards manufacturing industries, as they are the most dynamic, which equips the world with more new products and without interruption," noting that "Iraq if this money is not used now, it will waste the opportunity for progress and prosperity, and the future of future generations will be lost to misery and weakness in a world where it prevails." Developed and powerful countries.
The Prime Minister's Adviser for Financial Affairs, Mazhar Muhammad Salih, had confirmed in March 2021 in an interview with Shafaq News Agency that the reasons for the survival of the economy are rentier due to wars and the imposition of siege during the past era and the political conflicts we are witnessing today, which led to the dispersal of economic resources.
The continuation of the Iraqi state to rely on oil as the only source of the general budget makes Iraq at risk of global crises that occur from time to time due to the impact of oil on it, which makes Iraq turn every time to cover the deficit through borrowing from abroad or inside, which thus indicates the inability to manage Effectively state funds, and the inability to find alternative financing solutions.
President of the Republic: Iraq currently has a strong economic situation that enables it to complete projects
The President of the Republic receives the British Minister of State for Foreign and Commonwealth Affairs
His Excellency the President of the Republic, Dr. Abdul Latif Jamal Rashid, received, today, Tuesday, November 8, 2022, at his residence in Sharm El-Sheikh, the British Minister of State for Foreign Affairs, Commonwealth Affairs and Development James Cleverly.
During the meeting, which was held on the sidelines of the UN Climate Summit COP 27, they discussed friendship and cooperation relations between Iraq and the United Kingdom, and ways to enhance them.
The President of the Republic talked about the economic impact of Iraq and its people in the past period, especially during the war against the criminal organization ISIS, but the insistence of the Iraqis to go on the path of peace and prosperity, made the country maintain its high position in the region, noting that Iraq currently possesses a strong economic situation that enables it to achieve Projects that serve his children.
They also discussed environmental problems and climate change in the region and the world, and their negative effects in increasing desertification and water scarcity, which affect the lives and livelihoods of citizens and produce health and economic damage.
His Excellency pointed out that the phenomenon of climate change affects all of humanity, but Iraq is one of the countries affected greatly by it, stressing the need to take the necessary measures to reduce it, and the importance of international cooperation and providing the necessary support to overcome these risks through serious joint work and the exchange of experiences.
For his part, Minister Cleverly praised Iraq and its people, pointing to the importance of the close relations between the two countries and the need to expand horizons of cooperation in various fields, including those related to confronting the phenomenon of climate change and protecting the environment because of the damage this phenomenon affects all peoples of the world, pointing to the importance of strengthening international efforts and activating Ambitious plans through a joint international effort to confront this phenomenon.
The Minister of Finance discusses with the US Ambassador to Baghdad "Paths of Development Partnership"
The Iraqi Minister of Finance, Taif Sami Muhammad, discussed today, Tuesday, with Alina Romanowski, the ambassador of the United States of America to Iraq, the paths of partnership between the two countries.
According to a statement of the Ministry of Finance received by Shafak News Agency; "During the meeting, the minister welcomed the American ambassador, praising the level of bilateral relations between the two friendly countries, and stressed the importance of continuing to build on and strengthen the achievements that have been achieved, in a way that contributes to opening wider horizons at all levels, including aspects of finance and economy."
He added that "the paths of the development partnership linking the two friendly countries and the importance of continuing and upgrading them to achieve common aspirations and goals were discussed, in addition to discussing a number of financial and investment issues."
For her part, Romanowski congratulated the Minister of Finance on the occasion of assuming the duties of the Ministry of Finance, and stressed the continued support of the United States government to the government and people of Iraq, and its aspiration to create wider spaces of partnership and cooperation between the two countries.
A political bloc links the dollar exchange rate to the popularity of the Sudanese government
A deputy from the Sadiqoun bloc, Zainab Juma al-Moussawi, confirmed today, Tuesday, that changing the Iraqi dinar exchange rate helps the poor segment and increases the popularity of the Sudanese government.
Al-Moussawi said in a statement, followed by Mawazine News, that "the restoration of the old exchange rate means a reduction in the value of prices in the Iraqi market and indirectly helps the poor citizen to face the high prices."
The statement added, "Changing the exchange rate means increasing the popularity of the current government because it took an approach contrary to the previous government, which narrowed the Iraqi citizen."
Al-Moussawi: Changing the exchange rate helps the poor indirectly
The representative of the Sadiqoon bloc, Zainab Juma al-Moussawi, confirmed, on Tuesday, that changing the Iraqi dinar exchange rate helps the poor in an indirect way.
Al-Moussawi said in a press statement, which received "The Information", a copy of it, that "the restoration of the old exchange rate means a reduction in the value of prices in the Iraqi market and indirectly helps the poor citizen to face the high prices."
She added, "Changing the exchange rate means increasing the popularity of the current government because it took an approach contrary to the previous government, which narrowed the Iraqi citizen."
The Presidency of the House of Representatives decides to extend the legislative term
The Presidency of the House of Representatives decided, today, Tuesday, to extend the second legislative term for a period of one month.
And a statement received by Mawazine News stated, "The Presidency of the House of Representatives decided, today, Tuesday, to extend the second legislative term / the first legislative year / the fifth electoral cycle, for one month, based on the provisions of Article (58 / second) of the Constitution, in order to complete the number of necessary tasks and legislation.
Without affecting the economy.. Expert: The government is able to reduce the exchange rate
Today, Tuesday, the economic expert, Dia Al-Mohsen, stressed that the current government should work to reduce the exchange rate without affecting the citizen and its economy at the same time.
Al-Mohsen said in an interview with "Information", that "the economic steps that the new government has taken will contribute to the financial stability of Iraq and lower the exchange rate without affecting the Iraqi economy and citizens," adding that "the first steps were represented by announcing the cultivation of five million acres of wheat. "
He added, "The agricultural, industrial, and economic plan that the Sudanese government is going through, if it is properly applied to its end, the exchange rate will certainly be reduced without any of the parties affected."
He continued, "
A number of deputies had announced, earlier, the collection of parliamentary signatures from all political blocs in order to work to reduce the exchange rate of the dollar. The dollar in the year 2020.
The Central Bank: The reserves are sufficient to finance imports for 22 months
Central Bank adviser Ihsan Shamran al-Yasiri revealed, on Wednesday, that cash reserves have reached 90.89 billion dollars, noting that these reserves are sufficient to finance imports for 22 months.
Al-Yasiri said in an interview seen by / the information /, that "the cash reserves of the Central Bank are sufficient to finance import operations for a period of 22 months, and this is positive for Iraq and makes it live a period of relief, as these reserves amounted to 90.89 billion dollars, which is the first time that the Central Bank's reserves have been reported on The launch, and indicates a well-being for the Iraqi economy, as well as being a major bond and wall for the national currency, and it is expected that these reserves will exceed the $90 billion barrier at the end of this year.”
Al-Yasiri pointed out that "the volume of the Iraqi currency issued for circulation is estimated at 83 trillion dinars, equivalent to 58 billion dollars, while the banknotes of the public and banks are estimated at up to six billion banknotes in circulation."
And regarding the devaluation of the currency, Al-Yasiri stressed, “This procedure has left a new threshold for the Iraqi industrialist and made it more competitive. New
Parliamentary Finance resolves the controversy of changing the dollar exchange rate
The Parliamentary Finance Committee decided, on Wednesday, the issue of changing the exchange rate of the dollar against the Iraqi dinar.
Committee member Jamal Cougar said in an interview with "Mawazine News", that "the House of Representatives, the Finance Committee and the government are not concerned with the issue of changing the dollar exchange rate, and that it is exclusively the prerogative of the Central Bank, and this matter was confirmed by the Prime Minister."
He added, "It is not the right of any deputy to intervene and make statements in this regard, and if they want to respect the terms of reference."
Economist warns the government of high inflation
Today, Wednesday, the economic expert, Abdul Rahman Al-Mashhadani, warned of the high inflation in the Iraqi economy, which has reached high stages that may lead to recession.
Al-Mashhadani said in an interview with "The Information", that "the new government must address the rise in inflation by taking the necessary decisions to prevent a stagnation in commodities."
He added, "The inflation that is happening now happened from two things, the first: due to the change in the exchange rate, and the second is as a result of the previous government's borrowing from the Central Bank to fill its financial deficit."
And he continued, "The central bank has financed the government from the new currency, and therefore the money supply is more than the need of the local market will result in a loss of its value."
He pointed out that "one of the other causes of inflation is the high import rate for Iraq and the country's economic and political instability."
The Governor of the Central Bank inaugurates the branch of the International Development Bank in Dubai
Today, Wednesday, the Governor of the Central Bank of Iraq, Mustafa Ghaleb Mokhif, inaugurated the branch of the International Development Bank in the United Arab Emirates/Dubai.
"We feel happy and proud when we see one of our banks occupying a position within the UAE banking sector after obtaining the confidence of the Central Bank of the UAE," Makheif said in a statement on the sidelines of the opening.
He considered that "the event is important, on which we build hopes that our banks will participate with this vibrant sector in the sister country."
He wished the bank, its management and employees continued progress and payment.
Parliamentary Legal: Extending the legislative term of Parliament to approve the 2023 budget
Committee member Ahmed Al-Fawaz told Al-Furat News that: “The Parliamentary Legal Committee has a package of suspended laws that have passed two parliamentary sessions, and the time has come for their approval, the most important of which are at the heart of the life of the Iraqi individual and have the importance of raising the level of per capita income in addition to extending the legislative term for the fifth session to approve The general budget for the year 2023.
He added, "After granting confidence to the Sudanese government, the parliamentary committees in the House of Representatives began to take their role and deserve it in order to provide what is better, as well as the continuation of parliament sessions to support the stalled laws throughout the previous sessions."
Al-Fawaz continued, "Tomorrow there will be a session to take the constitutional oath of some deputies and host the ministers of agriculture and water resources regarding the water scarcity that has occurred and preparing for the winter season for strategic crops that are at the heart of Iraqi food security."
He explained, "There is water scarcity, mismanagement, and failure to deal with water sources in accordance with the entitlements of the water share according to agreements with neighboring countries, so the House of Representatives is prompted to discuss several laws, including the second amendment to the Public Roads Law in addition to the Law of the National Authority for Nuclear Regulation, as well as the Law of Regulating Wages. Services in state departments in tomorrow's session.
The Governor of the Central Bank of Iraq participates in the fall conference of the Iraqi British Business Council in Dubai
His Excellency the Governor of the Central Bank of Iraq, Mr. Mustafa Ghaleb Mokhif, participated in the Autumn Conference of the Iraq British Business Council, which opens its work today, Thursday, in the United Arab Emirates / Dubai.
His Excellency said: The efforts made by countries in creating industrial and agricultural development and providing job opportunities and development cannot be achieved without the banking sector responding to the aspirations and expectations of investors and workers in the economic sector.
He added: Money is the lifeblood and the means for development, development and prosperity. We believe that our banking sector has become qualified to play the roles that everyone aspires to.
His Excellency commended the efforts of the organizers of the conference, and the generosity of the brothers in the United Arab Emirates.
Central Bank of Iraq
Media Office
10/11/2022
This is a statement he made
Al-Sudani is preparing to launch a major reform project
Prime Minister Muhammad Shia Al-Sudani is preparing to launch a major reform project for the Iraqi economy.
The Prime Minister's Adviser for Economic Affairs, Abdul-Hussein Al-Anbaki, said in a statement reported by the official newspaper and seen by "The Information", that "the Sudanese are carrying out a major reform project for the Iraqi economy as a first step for the executive authority."
Al-Anbaki added, "This project works to consolidate the large competitive market, protect vulnerable segments, greatly support the local product, and conduct banking reform that enables the agency to have correspondent banks abroad, and adopt international standards in the field of banking reform and reduce corruption."
He pointed out that "the project also includes empowering the private sector and improving the business environment," expressing his hope "that economic activity outside the state will move forward."
Adviser to the Prime Minister: The government plans to adopt international standards for banking reform
Prime Minister Muhammad Shia Al-Sudani is preparing to launch a project described as reformist for the Iraqi economy.
The Prime Minister's Adviser for Economic Affairs, Abdul-Hussein Al-Anbaki, said in a statement reported by the official newspaper, "Al-Sudani is carrying out a major reform project for the Iraqi economy as a first step for the executive authority."
Al-Anbaki added, "This project works to consolidate the large competitive market, protect vulnerable segments, greatly support the local product, and conduct banking reform that enables the agency to have correspondent banks abroad, and adopt international standards in the field of banking reform and reduce corruption."
He pointed out that "the project also includes empowering the private sector and improving the business environment," expressing his hope "that economic activity outside the state will move forward
Parliamentary Finance: The 2023 budget will be “different”
Today, Thursday, the Parliamentary Finance Committee described the financial budget for the year 2023 as “different.”
Committee member Jamal Cougar said that "the budget for the year 2023 will be somewhat different, especially the investment budget in it."
He explained, "The operational in it will be similar. As for the investment, we believe it will be different, as the budget is supposed to include job opportunities, support for the private sector, and support for small projects."
In a statement to "Al-Furat News", which was followed by "Al-Iqtisad News," Cougar added, "We also expect that it will include steps that lead to the construction of strategic projects such as roads and dams," stressing "the need to focus on these areas."
Economist: Central Bank policy serves the rich and hits the poor
The economic expert, Rami Jawad, analyzed the monetary policy of the Central Bank, considering that it flows into the pockets of the affluent and the wealthy class only.
Jawad said, in a Facebook post seen by / the information /, that “the policy of the Central Bank contributes to the rise in inflation rates, which reached 6%, which is a high rate, and the Central Bank did not take any measures to limit the rise in inflation, but rather its procedures for granting loans and advances and reducing the rate of Interest and the increase in cash issuance has become in the interest of the wealthy and hits middle and low income earners towards the poverty curve.”
He added, "The rise in inflation rates compared to the decrease in bank interest on deposits at less than the inflation rate means the loss of depositors in banks, because real interest rates have become less than 0%, meaning that depositors are currently losing from their balances in favor of borrowers from banks, especially large loans!!" .
He explained that "banks give annual interest on deposits at a rate ranging between (3.5% - 5%) the current inflation rate (6%), the real interest on deposits = (the interest rate minus the inflation rate) and the result is negative!! The result: every depositor is currently In banks, it loses at a rate ranging between (2.5% -1%), so borrowing at low interest in times of high inflation is considered less risky and more profitable for entrepreneurs.”
KurdCoin founder says lack of regulation crypto's big challenge in Iraq
Cryptocurrency is becoming more popular in Iraq, where the lack of a robust financial system is driving people to use it, the head of the country’s first cryptocurrency exchange told Al-Monitor.
“We don’t have a trading or financial system,” said CEO and founder of KurdCoin Abdurrahman Bapir. “Crypto has become an alternative to what has failed them.”
Al-Monitor interviewed Bapir about all things cryptocurrency in Iraq and the Kurdistan Region, including challenges, demographics, societal views and the effects of the crypto crash.
KurdCoin started operation in 2017 in Erbil, the capital of the autonomous Kurdistan Region in northern Iraq. Most clients are from the Kurdistan Region, though there are others from Mosul, Najaf and elsewhere in Iraq. The overwhelming majority of KurdCoin users are male and most of them are businesspeople, programmers and young people interested in technology.
Bapir added that some foreign workers in the Kurdistan Region also use cryptocurrency to send remittances back home. Unlike wire services like Western Union, crypto does not involve amount limits on transactions. The American payment platform PayPal is also notably unavailable in Iraq.
More Iraqis are turning to cryptocurrency due to a lack of financial opportunities in the country.
“The appeal is there are not many job or investment opportunities here aside from real estate,” said Bapir. “There are not opportunities to invest through banks.”
Because bank accounts are uncommon in Iraq — 90% of Iraqis don’t have one, said Bapir — KurdCoin allows customers to use cash to buy and sell virtual coins via partner offices throughout the country. Some cryptocurrency exchanges that function in Iraq, such as the Seychelles-based OKX, allow users to make transactions via payment cards that do not require a bank account. ZainCash is one such program.
Some Iraqi programmers and app developers also get paid in crypto due to the lack of a banking or PayPal option, Bapir said.
Cryptocurrency faces many challenges in Iraq and the Kurdistan Region, chiefly a lack of government regulation. “The lack of regulation is the number-one challenge to crypto in Iraq,” he explained, adding, “It creates room for people who are not sincere, scamming people.”
Crypto scams are a problem throughout the world. For example, someone may ask for money to be sent in the form of cryptocurrency in exchange for a promised huge return on the investment. In reality, the receiver will pocket the money.
“It’s like the Wild West without oversight,” said Bapir. “We need a framework so we and the users know our rights and obligations, to hold people accountable.”
Authorities in Iraq and the Kurdistan Region are not supportive of crypto at present. The Iraqi Central Bank actually prohibited crypto’s use back in 2017, though the bank has limited ability to enforce the ban. In 2018, the Kurdistan Regional Government’s Supreme Fatwa Board ruled against the use of the cryptocurrency OneCoin.
Iraq stands in contrast to some other countries in the Middle East, particularly the United Arab Emirates and Bahrain. Both countries issued regulations on virtual assets this year, and they have helped increase the number of crypto platforms operating in the Gulf.
Bapir added that laws must “protect the retail client” and establish how much can be invested and the requirements to invest in cryptocurrency. Fraud is the biggest risk associated with cryptocurrency in Iraq, not terrorism or money laundering, according to him.
“There is a lack of financial literacy in Iraq. The country is not modernized financially and is isolated,” said Bapir. “Some people are promised a 30% return of investment. People with financial literacy know how that’s impossible.”
Much of KurdCoin’s social media activity focuses on protecting people from fraud, going over common crypto scams in a Kurdish-language video posted Oct. 19.
Iraqi societal views on cryptocurrency are divided between those who have experience with it and those who do not, according to Bapir. He said people unfamiliar with cryptocurrency are often “skeptical.”
Cryptocurrency is in the midst of a major crash. One Bitcoin was worth roughly $65,000 at this point last year, but is now trading below $18,000. Ethereum’s value has also dropped by thousands of dollars in 2022, and the cryptocurrency exchange FTX is on the brink of collapse.
“The crypto crash affected all businesses, including us. There was a drop in volume in transactions,” said Bapir on the crash’s effects in Iraq. “Some users got demotivated; some who invested at the peak lost money.”
Still, Bapir remains optimistic about cryptocurrency’s future.
“I believe in crypto’s potential to improve the quality of life here and the world,” he said. “I hope our government and the central bank approach crypto with an open mind and see it as a door to the future, not a threat.”
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