Central Bank of Iraq": Our goal is to preserve the reputation of the banking sector
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Deputy Governor of the Central Bank of Iraq, Ammar Hamad, told News Arabia that the bank is working to lift the US ban on dealing in dollars in a number of Iraqi banks, and to preserve the reputation of the banking sector.
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Iraq is looking forward to the entry of Azerbaijani companies into the local market
The President of the Republic, Abdul Latif Jamal Rashid, confirmed today, Monday, Iraq’s aspiration for Azerbaijani companies to enter the local market.
The Presidency's Media Department stated in a statement received by Al-Eqtisad News: "Rashid received, at Al-Salam Palace in Baghdad, the Azerbaijani Minister of Economy, Mikayil Japarov, and his accompanying delegation."
The President of the Republic pointed out "the importance of bilateral relations between the two friendly countries and the necessity of working to develop and strengthen them in a way that achieves the common interests of all."
He stressed that "Iraq is looking forward to the entry of Azerbaijani companies into the local market and the enhancement of investment cooperation opportunities, especially after the signing of several memorandums of understanding between the two countries during the visit of the President of the Republic to Azerbaijan last November, and what these memorandums constitute an important start for building bridges of cooperation in the fields." Economic, tourism, cultural and air transport in a way that guarantees the interests of the two peoples.”
For his part, Minister Mikail Japarov expressed his "happiness to visit Iraq," praising "the successful visit made by the President of the Republic to Azerbaijan recently and its importance in strengthening bilateral relations."
He stressed "his country's desire to establish the best relations with Iraq in various fields."
Return of some laws of previous sessions and activation of parliamentary committees
Representative Ali Nimah stressed the importance of the role of the Iraqi Parliament in legislating laws and building the state, and pointed to the return of some draft laws from previous sessions and the reactivation of the Council’s committees.
Permit details:
- The importance of the role of Parliament:
- An important legislative institution in the Iraqi scene.
- It succeeded in legislating a large number of laws over the course of 20 years.
- Fate of bills from previous sessions:
- Some of them were withdrawn by the government to make changes and address some points.
- Effectiveness of council committees:
- All Board committees are effective.
- Discussing new laws:
- Dozens of important laws are currently being discussed.
- The importance of deciding the position of Speaker of the House of Representatives:
- It is necessary to advance legislation according to the paths and to serve the public interest.
- Achievements of the House of Representatives:
- Hundreds of laws were passed over the past years.
Economists: Citizens still prefer cash transactions over electronic transactions
Economic affairs specialists criticized the lack of infrastructure for electronic payment services in many departments and institutions, and confirmed that most citizens still prefer cash transactions over electronic transactions.
Economist Manaf Al-Sayegh told Al-Sabah: Electronic payment is a globally recognized technology that can be used without the need to carry paper money or coins, as the world today no longer needs paper payment or the use of coins, so we find it approved through the use mechanism. A credit card that enables its holder to pay anywhere.
He added that the need arises today for all financial operations to be transformed according to a banking system that adopts the principles of automation and dealing with electronic payment (MasterCard) or (Credit Card), as it facilitates banking operations and transfers and gives an element of speed in financial performance, pointing out that there is a value that is sometimes imperceptible. But the quality of the system in financial transactions between customers and the lack of difficulty, whether at the level of individuals or companies, give these advantages value for dealing according to the automation system.
Al-Sayegh pointed out that most institutions and companies currently deal according to the electronic payment system, and even malls and stores with limited capital deal according to this system for the purpose of financial facilities and raising performance, adding that there are some obstacles, including the lack of infrastructure in many departments and stations for this service, stressing. There is a need to prepare these systems by the Ministry of Finance and the Central Bank, as the country was late in introducing this service, which has been used in most countries for decades, especially the card service through mobile phones.
He noted the necessity of disseminating payment points (POS) in their modern form to obtain the best service in multiple places, and obligating all departments, institutions, and
shops to use them to benefit everyone.
He stressed that dealing with electronic payment enables controlling transfers and not taking the currency anywhere without the knowledge of the state, so it can be used as a security element to prevent currency leakage.
In turn, Imad Al-Mohammadawi, who is interested in economic affairs, called during his speech to “Al-Sabah” for the necessity of spreading the culture of electronic payment among the segments of society, pointing out that most citizens prefer cash transactions over electronic transactions because they have become accustomed to this method, believing that it is better.
Al-Muhammadawi pointed out the necessity of encouraging, supporting and facilitating dealing according to this new mechanism for citizens with the aim of attracting many customers according to this method, which is considered universal and one of the approved methods in all aspects of life, because of the safety it brings in not carrying lumps of cash in daily transactions.
It is noteworthy that the Deputy Governor of the Central Bank, Ammar Khalaf, explained in the first Iraqi Digital Economy Forum that “the digital financial transformation began with the localization of employees’ salaries and the opening of bank accounts, the primary purpose of which was the use of electronic payment in daily transactions, whether inside or outside the country,” and he pointed out that “some The ministries responded quickly to the directives of the Central Bank and the government, especially the Ministry of Oil by making collections at gas stations and others done electronically, as well as the Passports Directorate, which required that payment be electronic, in addition to the General Traffic Directorate and other ministries.
The Prime Minister expresses Iraq's desire to occupy its position in the international arena
Prime Minister Muhammad Shiaa Al-Sudani received, today, Monday, the Director General of the International Atomic Energy Agency, Mr. Rafael Mariano Grossi.
Al-Sudani confirmed in a statement received by Earth News that “Iraq was one of the first countries that sought to join the agency, abide by its treaties, and worked to establish nuclear reactors for peaceful purposes. Because of his conviction that nuclear energy must be a source of prosperity and not the development of lethal weapons, he pointed out that “at the end of last year, Iraq submitted to the Agency the requirements for its accession to the Nuclear Safety Agreement, and the Joint Agreement on the Safe Management of Spent Fuel and the Safe Management of Radioactive Waste, and it is looking forward to entering again into The field of peaceful applications of nuclear energy.
The Prime Minister expressed “Iraq’s desire to occupy its natural position in the international arena, and to engage in peaceful activity in the field of atomic energy. He also looks forward to assisting the Agency in developing programs and projects related to development in the field of nuclear applications for peaceful purposes.”
For his part, Grossi extended “an invitation to Mr. Sudanese to attend the Nuclear Energy Summit, which will be held in Brussels this March, expressing his appreciation for Iraq’s cooperation with the agency,” stressing that it is “one of the leading countries working with the agency, and he also declared his commitment to working with Iraq in its program and projects.” Peaceful, which includes energy, soil desalination, disease treatment, and other peaceful fields, indicating his aspiration for the Iraqi delegation to visit the agency’s headquarters in the coming weeks; “To work on developing a road map to develop Iraq’s work, build infrastructure, and obtain nuclear technology in peaceful fields.”
Iraq: A thriving smartphone market led by the “Chinese”
Iraq topped the list of the “smart phone” market in the Middle East until 2027, supported by the development of technology and improved economic conditions.
Growth details:
- Government statistics: 86% of Iraqis over the age of 5 own a mobile phone.
- Global studies:
- 2% annual growth for smartphone shipments in the Middle East during the second quarter of 2023.
- 21% increase in smartphone shipments in the Middle East during the third quarter of 2023.
- Smartphone shipments in Iraq are expected to reach 7.3 million by the end of 2027.
- Factors that support growth:
- Availability of mobile communications networks.
- Improved economic conditions.
- Innovative marketing strategies from manufacturers.
- Diversity of brands and models available.
Dominance of Chinese brands:
- Chinese brands such as Infinix and Tecno have gained popularity and trust among Iraqi consumers.
- Chinese companies' focus on product engineering and design contributes to their success.
- Models like HONOR X6 and Realme C53 are very popular.
Targeting younger age groups:
- Marketing campaigns focus on attracting younger demographics.
- These categories prefer phones with attractive designs, advanced technology, and affordable prices.
Market revenue:
- Revenues from the smart phone market in Iraq reached $2.1 billion in 2024.
- Expected annual growth of 1.16%.
Government decisions:
- Facilitating the import of smartphones through the external money transfer platform.
- Providing a complete mobile registration platform to combat tax evasion.
Phone prices:
- Smartphone prices in Iraq range between $70 and $1,000.
- Taxes, customs, shipping and transportation costs affect the prices of phones.
- The smartphone market in Iraq is witnessing remarkable growth, led by Chinese brands.
- Multiple factors support this growth, such as the spread of the Internet and the presence of technology-savvy young people.
- Government decisions are taken to regulate the market and protect the consumer.
Mobile revolution in Iraq: global companies cater to growing demand
With the continuous technological advancement and the emergence оf smartphones that offer a variety оf features and services, the demand for these devices іs increasing іn Iraq.
While global studies indicate that Iraq will lead the "smartphone" market іn the Middle East region until 2027, surpassing China, government statistics show that 86% оf Iraqis aged over five have a "mobile phone," as global companies change their strategies tо satisfy Iraqi consumers.
The availability and expansion оf mobile communication networks іn Iraq promote the use оf mobile phones and make them easily accessible, and improving economic conditions, individuals show greater willingness tо invest іn technological devices, including mobile phones.
Mobile phone manufacturers exploit innovative marketing strategies tо boost their sales іn Iraq, contributing tо increased demand for new devices. Various brands and models оf mobile phones are available іn Iraq, allowing consumers tо choose the option that suits their needs and budgets.
Overall, the mobile phone market іn Iraq іs considered active and witnessing continuous growth. This growth іs expected tо continue with the ongoing technological advancements and improvements іn economic conditions іn the country.
First іn the region
Research by Canalys specializing іn economic affairs reveals that "vendors shipped 9.5 million smartphones іn the Middle East (excluding Turkiye) іn the second quarter оf 2023, representing an annual growth оf 2%. Iraq, іn particular, has been experiencing continuous growth, overcoming economic challenges and currency fluctuations tо achieve significant growth оf 24% іn smartphone shipments."
In the third quarter оf 2023, according tо Canalys research, "smartphone shipments іn the Middle East reached 12 million, with a significant increase іn annual growth by 21%. Iraq continued its strong momentum with a 57% growth driven by demand for smartphones priced under $150 and increased brand activities, notably Infinix and Tecno."
The Iraqi smartphone market has witnessed a flow оf various brands іn recent years, and the emergence оf Chinese smartphones has led tо a significant shift іn market dynamics, with these brands gaining popularity and trust among Iraqi consumers.
The success оf Chinese vendors can be attributed tо their focus оn product engineering and design, which the local audience has well received.
According tо the study, "Transition Company transferred the regional head оf Tecno tо Iraq, while Xiaomi maintains its presence with more than eight stores іn different cities, including Baghdad, Erbil, Al-Sulaymaniyah, Kirkuk, and Basra. HONOR, which has witnessed significant growth іn this region, attributes its achievements tо its association with Huawei. Despite that, models like HONOR X6, priced at 159,000 Iraqi dinars ($119), received positive responses from many customers, and Realme's C53 model helped the brand's market share іn the Iraqi smartphone market reach its highest levels ever."
Canalys expects "the Iraqi smartphone market tо remain relatively stable and reach 7.3 million shipments by the end оf 2027."
In the fourth quarter оf 2023, the growth rate оf smartphones іn Iraq increased tо 86%, despite increasing restrictions оn cash withdrawals іn US dollars by local banks, leading tо worsened shortages and an increase іn exchange rates іn the parallel market.
At the same time, vendors target younger demographic groups through marketing campaigns, capitalizing оn the preference for smartphones with attractive designs, advanced technology, as well as reasonable prices.
According tо the global German data and business intelligence platform Statista, іn 2024, smartphone market revenues іn Iraq reached $2.1 billion, with an expected annual growth rate оf 1.16%.
The Iraqi smartphone market іs witnessing significant growth due tо the increasing internet perception and the presence оf a number оf tech-savvy youths.
Iraqi children and mobile phones
In a related context, the Ministry оf Planning, іn its latest report оn smartphone usage іn 2022, published оn October 19, 2023, affirmed that "86% оf Iraqis aged over 5 use mobile phones," indicating that "the usage rate among males reaches 90%, compared tо 81% among females."
"Only 14% оf individuals dо not use mobile phones," noting that "the highest mobile phone usage rate was іn Baghdad, reaching 97%, followed by Najaf at 93.5%, then Basra slightly below 93%, while Kirkuk ranked fourth at 92% and Wasit fifth at 72%." Survey results showed.
Government decisions
During a session оf the Iraqi Council оf Ministers оn November 23, 2023, according tо a statement at the time, "a series оf decisions and measures were taken tо facilitate the use оf the financial transfers platform by importers оf goods (gold, cars, mobile phones, cigarettes), enabling them tо access foreign currency financing at the official exchange rate and eliminating the need tо purchase foreign currency from the unofficial market,"
They also noted that "this will positively impact reducing the exchange rate оf foreign currency іn the unofficial market, as trade іn the mentioned goods constitutes a significant part оf the demand for foreign currency іn the unofficial market."
Meanwhile, the Digital Media Center (DMC), оn June 9, 2023, іn the context оf protecting Iraqi consumers from fraud, affirmed that "the budget law obligated the Media and Communications Commission tо contract with a specialized company tо start a project providing a comprehensive registration platform for mobile devices, aimed at ensuring tax and customs duty compliance by preventing the illegal importation оf mobile devices and ensuring that imitated, stolen, and cloned devices are not imported tо protect consumers."
The DMC emphasized that "these laws, which its team has been advocating for and promoting over the past years, are a necessary requirement and an essential part оf the digital age and artificial intelligence, tо regulate and determine its methods and contexts оf work, and must be implemented professionally and not remain merely theoretical."
"Essential" mobiles
A mobile phone store owner indicated that "there іs significant demand from citizens for modern technology, as mobile phones are not just for communication, they are used for photography and games as well."
Mobile phone prices іn Iraq are a matter оf concern for many, as smartphones are essential devices іn people's lives at present. Mobile phone prices іn Iraq range from cheap tо moderate tо expensive, and prices vary greatly depending оn the brand, model, and different technical specifications.
For example, a smartphone can be purchased for between $70 and $200 іn the cheap category, while a mid-range smartphone can be purchased for between $200 and $500. As for advanced phones with the latest technologies and specifications, their prices can exceed $1000.
According tо specialists, several factors affect mobile phone prices іn Iraq, including taxes, customs duties, shipping and transportation costs, advertising costs, as well as the availability оf the device іn the market and the demand for it.
Iraq sends technical and military committees to several countries to purchase advanced air defense systems
The spokesman for the Commander-in-Chief of the Armed Forces, Major General Yahya Rasoul, announced today, Monday, the sending of technical and military committees to several countries to contract for the purchase of advanced air defense systems.
Major General Rasoul said, according to the official agency, “Iraq has contracted French radars and a batch of them have arrived, and we are proceeding to
complete the radar system in general,” indicating that “there are low-, medium- and high-range radars.”
He added, "The Air Defense Command is capable of radar detection and monitoring the movement of aircraft within Iraqi airspace," noting that "the Military Command, led by the Commander-in-Chief of the Armed Forces, confirms the first priority of the Air Defense Command systems."
He stated that "there are technical and military committees that visited a number of countries and made offers to them, along with reviewing anti-aircraft weapons," pointing out that "when contracting for weapons or advanced systems, this will be announced."
Amid Skepticism About Its Futility.. Sudanese Prepares For An American Tour To Arrange Relations And End The Presence Of The International Coalition
Prime Minister Muhammad Shiaa Al-Sudani is preparing to make an important visit to the United States of America to meet with a large number of officials there, headed by Joe Biden, to discuss many important issues, especially in light of the development of aggression against some regions of the Middle East, in addition to the aggression against the security forces. Iraqi aircraft by American drones.
This visit comes in light of the dangerous escalation the world is witnessing and warnings about the expansion of the circle of fighting, while the Sudanese will carry many other sensitive files, most notably the foreign presence in Iraq, in addition to the continuing strikes between the Iraqi resistance factions and the American forces.
In September of last year, Al-Sudani participated in the meetings of the United Nations General Assembly in New York, during which he met with US Secretary of State, Anthony Blinken, but he did not meet President Joe Biden. At that time, the US Minister extended an invitation to the Iraqi Prime Minister to visit Washington and meet with Biden, to discuss relations. Duality.
Regarding this visit, political analyst Ghaleb Al-Daami said in an interview with Earth News Agency, “The talk about the visit took place a year ago when the government was formed and its date was not set. US Secretary of State Blinken had previously invited Mr. Sudanese to visit the United States, but without specifying the appropriate date, which caused it to be postponed.”
He added that “Al-Sudani’s visit and his meeting with US President Biden, who the media says is that he has lost his memory, will not have a major impact considering that the current President Biden will leave office after about 8 months,” noting that “the visit will be of great benefit if it includes American circles.” Others, such as Parliament, the Ministry of Defense, the Ministry of Foreign Affairs, and decision-making circles in Washington.”
Al-Daami pointed out that “the Sudanese Prime Minister will carry with him all the files related to the Iraqi economy, Iraqi security, the American presence, the stability of the country, and everything related to that.”
For his part, government spokesman, Basem Al-Awadi, revealed in a statement followed by Earth News, that “the date of the Prime Minister’s visit will be during the spring, explaining that its goal is to arrange bilateral economic, political, cultural, and security relations, and to end the mission of the international coalition and move to a bilateral relationship only.”
Regarding the truce between the United States and the Iraqi factions, Al-Awadi stressed that “stability in Iraq and stopping the strikes directly contributed to the completion of the dialogue and setting the timetable for ending the international coalition’s mission and the withdrawal of foreign forces,” adding that “targeting the Iraqi bases where international advisors are present “It reflects negatively on the speed of completing the mission of the Supreme Military Committee and completing the mission of ending the international coalition.”
Al-Sudani’s expected visit during the next two months, which has been postponed more than once, due to tense regional circumstances, most notably the “Israeli” war on the Gaza Strip, is considered important in the eyes of monitoring circles, as it is his first official visit since he took office in October 2022, and it will be on its agenda. Discussing the security disturbances, including the escalation of mutual attacks between the United States and Islamic resistance factions since the beginning of the Gaza events.
Economist: Three reasons behind the decline in dollar prices
Today, Monday, economic expert Zia Mohsen explained the reasons for the decline in the price of the dollar in Iraqi markets, noting that speculation is the prominent most of these reasons.
Mohsen said in a statement to Al-Maalouma, “The speculative operations that take place in order to remove some small traders from the market pushed them to pump the dollar more, which contributed to its decline.”
He added, "The decrease in the level of family purchases compared to the first days of Ramadan is one of the reasons for the decline," pointing out that "the Central Bank's turbulent policy and multiple decisions do not make the exchange rate stable."
Mohsen added, “Exchange rates will rise again with the demand for spending on Eid al-Fitr.”
The Iraqi markets witnessed a significant decline in the exchange rates of the dollar against the Iraqi dinar after a wave of rise that affected the economic movement.
Sudanese: We are continuing to expand the investment environment and attract international expertise
Prime Minister Muhammad Shiaa Al-Sudani confirmed, on Monday, that the state of stability achieved in Iraq confirms progress in the file of ending the presence of the international coalition.
A statement from the Prime Minister's Media Office, received by Al-Maalomah, stated that "Prime Minister Muhammad Shiaa Al-Sudani received the German Minister of State for Foreign Affairs, Tobias Lindner, and his accompanying delegation."
Al-Sudani stressed - during the meeting - “Iraq’s welcome to the presence of German companies and their participation in development projects and infrastructure construction,” noting that “the government is continuing to expand the investment environment and attract global expertise, especially with the launch of the Development Road Project and the opportunities accompanying it, and Iraq’s imminent signing of an agreement with the company.” Siemens and other German companies, in the field of investing in gas associated with generating electric power.”
He stated, “The state of stability and security achieved today in Iraq and the growing capabilities of our security forces confirm the progress in ending the presence of the international coalition and shifting to bilateral relations with member states, especially in the context of defeating the terrorist remnants of ISIS.”
The statement explained, “The Prime Minister touched on the current situation in the Gaza Strip, and Iraq’s efforts to deliver the necessary humanitarian aid to the sector under aggression, and to support efforts aimed at halting the fire and preventing the expansion of the conflict. He also called on the international community to bear responsibility in stopping the approach of aggression and war.” "The genocide that the Palestinian people are being subjected to."
For his part, Lindner expressed his "appreciation of the extent of development, economic growth, and security improvement that Iraq is witnessing," stressing, "The German government is continuing to activate the joint action plan that the Sudanese signed with the German Chancellor, During his recent visit to Berlin."
Lindner expressed, "His country supports the government's steps to end the presence of the international coalition in Iraq," expressing "Germany's readiness to sign a bilateral cooperation agreement with Iraq in the security and military fields, in addition to its support for Iraq's position on the necessity of a permanent ceasefire in the Palestinian territories and assistance to the Palestinian people.”
IAEA to help Iraq develop peaceful nuclear programme, agency head says
The United States intends to refill the strategic oil reserve
this is from Iraq's news
US Secretary of Energy Jennifer Granholm said that the United States intends to refill its strategic oil reserve by the end of 2024, after the stock fell to its lowest historical levels last year.
In the wake of the Russian-Ukrainian war, US President Joe Biden announced an unprecedented withdrawal from oil reserves in a move criticized by Republicans.
Between September 2021 and July 2023, the United States consumed about 274 million barrels of reserve, causing it to fall to its lowest level in 40 years.
In June 2023, the US government began buying back oil to boost reserves, and in the following nine months, the strategic oil reserve was increased by about 14.7 million barrels, according to the US Energy Information Administration.
Washington established the reserve in the 1970s as an emergency reserve after the 1973 energy crisis.
The President of the Republic stresses the importance of following up on the implementation of Article (140) of the Constitution
The President of the Republic, Abdel Latif Gamal Rashid, stressed today, Tuesday, the importance of working to follow up on the implementation of the decisions of the Supreme Committee for the implementation of Article (140) of the Constitution.
The Presidency's Media Department stated, in a statement received by Al-Rabaa, that "Rashid received, at Al-Salam Palace in Baghdad, the United Kingdom's ambassador to Iraq, Stephen Hitchen."
During the meeting, the President pointed out “Iraq’s keenness to strengthen its relations with the United Kingdom and consolidate ways of bilateral cooperation in a way that serves mutual interests,” noting “the need to intensify international efforts to promote peace and stability at the regional and international levels.”
He pointed out that "the Presidency is continuously working to end the file of detainees whose sentences have expired through the committee formed by the Presidency of the Republic, the Ministries of Interior and Justice, and the Supreme Judicial Council, where approximately nine thousand detainees have been released."
He stressed "the importance of working to follow up on the implementation of the decisions of the Supreme Committee to implement the Constitutional Article (140), resolve issues related to agricultural lands, and address demographic changes in a way that guarantees the rights of citizens in Kirkuk through the application of the law."
He referred to "the relationship between the federal government and the Kurdistan Region," indicating that "there is a desire on both sides to continue the dialogue on issues related to approving the budget and paying the dues of Kurdistan Region employees on the same basis as their fellow employees, and the necessity of providing the appropriate atmosphere for holding elections in the Kurdistan Region."
For his part, Ambassador Hitchin affirmed "the British government's support for Iraq's efforts to establish regional security," praising its "pivotal role in consolidating the foundations of peace in the region."
He praised "the role of the President of the Republic in bringing the views of Iraqi political forces closer together."
Finance begins paying the salaries of state employees
The Ministry of Finance announced, today, Tuesday, the launch of funding for the salaries of employees and members of the security forces for the current month of March.
The Ministry said in a statement, “The Ministry of Finance/Accounting Department is initiating procedures for financing the salaries of state employees and members of the security forces for the current month of March,” calling on spending units in ministries, governorates, and entities not affiliated with a ministry, to “review the Accounting Department to complete the requirements for financing the salaries of their employees and members.”
The Ministry stressed that the spending units should “take into account adherence to the monthly funding schedule approved by them and fulfill the required funding requirements,” reiterating its emphasis on “what was stated in its Circular No. (5991) on March 5, 2024, in terms of submitting trial balances for the previous months documented with their augmented analytical tables for the two operational budgets.” and investment, in addition to the priorities related thereto.”
The Ministry called on the media and social media platforms to "be responsible in conveying news, and not to promote information that would confuse public opinion, including what is related to the dates for financing salaries and other news, without referring to the official and approved sources of the Ministry."
An economist criticizes the Central Bank's measures to resolve the dollar crisis and proposes actual solutions
Economic researcher, Omar Al-Halbousi, said today, Tuesday, that the Central Bank’s measures to resolve the dollar crisis have not achieved success so far. On the contrary, they have contributed to establishing an oligopoly of the dollar, calling on the government and the Central Bank to take corrective measures using monetary policy tools and monitoring the work of banks and the parallel market to control the price. Exchange.
Al-Halbousi told that “it is well known that the Central Bank’s measures, over a whole year, regarding controlling exchange rates, resolving the dollar crisis, and reducing the difference between the official and parallel exchange rates have not achieved success until this moment. On the contrary, they contributed to establishing the oligopoly of the dollar.” By allowing banks not to deliver remittances to individuals and companies in dollars, but rather deliver them in dinars and at the official exchange rate, which causes a huge loss to the owner of the remittance, in addition to the banks benefiting from this decision and giving them dominance.”
He added, “Especially since the banks are the ones who control the parallel market and dispute the exchange rate in it, which Al-Sudani confirmed in a previous statement, and the banks that dominate the currency selling window are the ones who pay to keep the exchange rate high because they achieve large gains whenever the exchange rate rises.”
He continued, “In addition to that, the continued inactivation of exchange companies in the western governorates and the Kurdistan region contributes to the exchange rate remaining high, and there are regional countries that live on the dollar in Iraq and they use their affiliated sensors represented by private banks and currency traders who monopolize the dollar for their benefit and then deliver it.” The dollar is transferred to these countries through fraudulent means, which is a sign that proves the continued circumvention of American sanctions, which exposes Iraq to the risk of new sanctions.”
He stressed, “Therefore, the government and the central bank must take corrective measures using monetary policy tools and fair application, away from police measures that do not solve the crisis, but rather exacerbate it, and monitor the work of the banks and the parallel market in order to control the exchange rate and not leave it in the hands of bank speculators who caused the value of the Iraqi dinar to decline.” And huge losses to the state treasury due to the difference between the two prices, knowing that the value of the dinar is part of national sovereignty that requires preserving it and not wasting it like the other ones.”
Revealing the reason for the persistence of the gap in the dollar exchange rate between the official and the parallel
An economic expert attributed the persistence of the price gap between the dollar and dinar exchange rates to “illegal trade.”
Nabil Al-Marsoumi told {Al-Furat News} agency, “Illegal trade with sanctioned countries is the main reason for the gap between the official price of the dollar and the parallel, as it is difficult to cut off trade with neighboring countries such as Syria, Iran, and others like Russia, because they cover a large part of the market, especially with regard to goods.” and Iranian goods.
He added, "We expect the exchange rate to stabilize at these rates, and if the United States reconsiders and eases the sanctions, the price gap will decrease slightly now. It will not disappear."
It is noteworthy that the Central Bank of Iraq sells the dollar at the official rate of 1,320 dinars, while it reaches the “parallel” black market at a rate of 1,500 dinars.
US sanctions increase Iran's anxiety after the decline in agricultural exports to Iraq
Iranian fears of a decline in its agricultural exports to Iraq are increasing, due to many factors, including internal and external factors, represented by the American sanctions imposed on it, and the tightening of procedures for financial transfers in dollars from Baghdad abroad for the purpose of import.
Regarding the internal reasons, the head of the Agriculture Committee in the Iranian Parliament, Muhammad Jawad Askari, confirmed that Iran has begun to lose its markets abroad for local reasons, related to the presence of problems in legal legislation that have disrupted the private sector, which reveals that the decline in exports is not limited to the dollar financing crisis in Iraq.
Askari said in a press interview that Turkey easily took over the Iraqi market instead of Iran, noting that the Kingdom of Saudi Arabia also began to take over neighboring markets in the production of agricultural products, and this is a serious danger to the Iranian economy.
He indicated that Iranian agricultural product exports decreased somewhat, especially with regard to dried fruits and vegetables. Askari held the Iranian Tax Authority responsible for the decline in exports of agricultural products, saying: “The Tax Affairs Authority makes mistakes in some aspects of the export of agricultural products, which leads to a lack of incentive in the export of agricultural products.”
According to Iranian media, exports of Iranian food and agricultural products to countries in the region recorded about $5.6 billion last year, a growth of 6.5% over the previous year, and Iraq then topped the list of the top ten markets importing Iranian agricultural and food products with $1.784 billion.
In this context, the Iraqi economic expert, Manar Al-Obaidi, said that the Iranian side’s data on the total volume of its exports to Iraq amounted to approximately 11 billion dollars, a large percentage of which represents annual gas and electricity exports, while the rest of the percentages are distributed to industrial and agricultural products exported to Iraq during the past year 2023.
According to According to Al-Obaidi’s figures, fruits and vegetables represented 10 percent of all other Iranian exports to Iraq, which include construction materials and plastic industries in addition to oil and gas derivatives.
Al-Obaidi explained to Al-Arabi Al-Jadeed that Iran’s fears increased due to the sanctions and the existence of the price difference for cash transfers between transfers through the platform and transfers in the parallel market, which led to the search for sources and destinations other than Iran.
He explained that Iraqi merchants are heading towards Turkey because it is close to the border and is not subject to US sanctions, which facilitates financial transfers, in addition to the quality of the Turkish product.
He stressed the importance of controlling the border crossings between Iraq and Iran and reducing smuggling and customs evasion operations, in order to significantly know the volume of trade exchange and contribute to providing radical solutions to the problem of commercial transactions and using the commodity exchange system or establishing free zones for trade exchange between the two countries.
According to the Iraqi economic expert, the value and volume of Iraqi exports to Iran are unknown, because most of these goods are re-exported through unofficial outlets or through smuggling operations through unofficial methods.
As for a member of the Federation of Iraqi Chambers of Commerce, Hassan Al-Sheikh, he revealed that exports of agricultural crops coming to Iraq from Iran are carried out according to smuggling operations and illegal methods through unofficial ports, and that there are Iraqi companies that have stopped importing from Iran and headed to other markets.
The sheikh said that Iranian agricultural crops are close to Iraqi products, and are imported because they suit the taste of the Iraqi individual who desires fresh crops and products, and this is due to the overlapping atmosphere and the long borders between the two countries.
He added that Turkish products are subject to human intervention through their cultivation through glass and plastic farms, and the uses of chemical materials and formulations that cause them to lose their natural properties, but the market is subject to the price difference and the facilities provided in import and export operations.
According to the Sheikh’s data, the US sanctions imposed on Iran had a direct impact on the trade exchange movement with Iraq, and that there were commercial companies that were dealing with Iran directly withdrew from the Iranian market and headed to other markets for fear that they would also be exposed to US Treasury sanctions.
Economic researcher, Ali Al-Amiri, pointed out the impact of restricting foreign remittances from Iraq and monitoring them by the US Federal Bank on Iranian foreign trade.
Al-Amiri told Al-Araby Al-Jadeed that the external financial transfer operations carried out by Iraqi banks to Iran suffered a severe setback after those banks were banned from dealing in dollars under sanctions, which led to financial transfers to Iran being limited to black transfers and smuggling operations.
Al-Amiri stressed that Iran's foreign trade has been greatly affected, not only at the level of crops and agricultural products, but also on a large scale that includes industries and oil and gas derivatives.
This is the COUNCIL of MINISTERs MEETING RESULTS
I don't normally read this in full but I was hoping to see something about the budget schedultes
but lot's of financial stuff and decisions on projects just fyi
"Al-Eqtisad News" publishes the full decisions of the Council of Ministers session
Al-Eqtisad News publishes the full decisions of the twelfth regular Council of Ministers session held today, Tuesday, the most important of which was obliging the Ministry of Finance to pay the dues owed by an Iraqi bank to Kurdistan, provided that they are deducted from the region’s allocations.
The Prime Minister’s media office said in a statement, seen by Al-Iqtisad News, that “Prime Minister, Mr. Muhammad Shiaa Al-Sudani, chaired, today, Tuesday, the twelfth regular session of the Council of Ministers, in which the general situation in the country was discussed, and the most important service files were reviewed.” economic, and to deliberate on the issues on the agenda and take the necessary decisions thereon.”
The statement added, “In the field of energy, the Council voted on the following:
1. Approval to authorize the Minister of Finance, or whomever she authorizes, to sign with the relevant authorities an amendment to the loan agreement for financing the 400 kV Babylon station rehabilitation project, which is financed by the Swedish loan with JPM Bank.
2. Approval of the financing terms for the loan according to the Ministry of Finance’s letter dated February 25, 2024.
He explained, “Based on the government’s priorities, which focused on administrative reform, the Council voted on the following:
1- Approval of the controls regulating the dealings of beneficiary entities with letters of guarantee issued in their favor, taking into account the observations of the Ministerial Council for the Economy confirmed by its letter dated January 14, 2024, amending Article (17) of the aforementioned controls, according to what was stated in the department’s memorandum. Legal of the General Secretariat of the Council of Ministers, dated March 14, 2023.
2- Agreeing to accept a certified instrument or a letter of guarantee, taking into account the validity period of the certified instrument, and the beneficiary party must renew it before it becomes effective until the need no longer exists, in accordance with the rules.
The statement indicated, “Within the path of financial and banking reform, the Council issued a decision obliging the Federal Ministry of Finance to pay the dues of the Trade Bank of Iraq/TBI, due from the Kurdistan region of Iraq, in annual monthly installments for the years (2023, 2024) at a rate of (636) billion dinars for each year.” It will be deducted from the region’s allocations for the year 2024, and will be deducted later.”
He continued, "The session witnessed the approval of recommendations regarding settlement procedures for foreign claims, in accordance with Cabinet Resolutions 28 of 2014 and 48 of 2018, as follows:
1. Make an amendment to paragraphs (1 and 2) of Cabinet Resolution 28 of 2014 as follows:
a. Amend paragraph (1) to become: Authorizing ministries and entities not affiliated with a ministry with the authority to negotiate with creditor companies that have a final court ruling, and which have seized the funds of Iraqi government institutions abroad, or have not seized in their consensual settlement, at a rate less than the principal of the debt without interest, While giving it preference in contracting with state departments in one of the government projects or contracts in exchange for the creditor party dropping the entire amount of the debt and its interests, and invalidating the lawsuit filed.
B. Amending paragraph (2) to read: Negotiating and negotiating committees shall be conducted by the relevant authorities under the supervision of the Ministry of Justice. It is exclusively concerned with following up on foreign lawsuits, and each case is presented individually to the Council of Ministers for approval.
C. Continued implementation of Cabinet Resolution No. 48 of 2018.
2. Taking into consideration the opinion of the Legal Department in the General Secretariat of the Council of Ministers.
The statement continued, "The session included approval of the following:
First: Cancellation of the recommendations of the sixth meeting of the Chinese Framework Agreement issued by Cabinet Resolution (24006 of 2024).
Second: Cancellation of the Council of Ministers’ decision (24059 of 2024) regarding the completion of the new Nasiriyah warehouse and model school buildings, funded by the Chinese agreement.
Third: Approving the projects approved by Cabinet Resolution (24130 of 2023), with an annual allocation of (7059) billion dinars, instead of (7137) billion dinars, signed by the committee.
The following was also voted on during the session:
1. Deletion of the project (constructing an international stadium in the center of Nineveh Governorate at a cost of (22,813,000,000 dinars), based on the technical reports issued by the advisory office, affiliated with the College of Engineering at Al-Mustansiriya University, which includes the recommendation to completely remove the structure with the foundations, as well as the recommendation of the advisory body / Advisor to the Governor for Technical Affairs, adopting the opinion of the Advisory Office of Al-Mustansiriya University, to demolish and completely remove the foundations, taking into account the amounts spent on the aforementioned project and the amounts of work completion, and transferring the amounts of the deposits to the project account after its deletion, according to the controls and instructions issued by the Ministry of Planning.
2. Considering the request to include the project to establish the Nineveh Central Stadium with a closed sports hall on the right side of Mosul in a turnkey manner, within the governorate’s projects for the year 2023 (amended Schedule E) specified in the Federal General Budget Law (13 of 2023), for a total amount of (36,200). 000,000 dinars) after completing all relevant listing requirements.
3. Nineveh Governorate bears full responsibility for the truth and accuracy of the information submitted to the Ministry of Planning.
He pointed out that "with regard to the contract concluded with the Turkish company Tarmash for the school buildings project, the Council issued a decision approving the acceptance of the letter of guarantee previously submitted to the Ministry of Industry and Minerals, for the same contract outside the electronic platform for the letter of guarantee, until the company has financial liquidity that enables it to return Letter of guarantee, within the electronic platform.
The Council also issued a decision approving the Ministry of Finance’s contract with the Scientific Consulting Office at the Ministry of Higher Education and Scientific Research/University of Baghdad/College of Science. To complete the system for modernizing public financial management systems (IFMIS), as an exception to the instructions for implementing government contracts (2 of 2014).
The statement explained, “The sale of residential plots of land starting from the property numbered (45373 to 49551 AD/21 Haidariyah) was approved for sale at a rate of (4176) plots, separated from the area of the two plots of land numbered (42062/1, and 42063/1) district (21). ) Haidariyah, to the employees of the General Secretariat of the Holy Shrine of Hussein, as an exception to the public bidding procedures, and based on the provisions of the Law on the Sale and Rent of State Funds No. (21) of 2013, as amended, and replacing it with a lottery system, according to controls from those who are not beneficiaries of the Council of Ministers’ Resolution (20 of the year 2019), taking into account Articles (4 and 15/First/A) of the aforementioned Law on the Sale and Rent of State Funds.”
Within the framework of organizing union work, the recommendation of the Ministerial Council for Human Development (24004 B) of 2024 was approved, which includes obligating the Engineers Syndicate to address the issue of registering engineering colleges and departments and accrediting them in the Engineers Syndicate.
The Council agreed to authorize the Director General of the General Tax Authority to negotiate and initial a draft agreement to avoid double taxation and prevent evasion of taxes imposed on income and capital between the Government of the Republic of Iraq and the Government of the Republic of Latvia, based on the provisions of the Constitution, and to authorize the Minister of Finance to negotiate. And the final signature on the above project.”
He continued, "The draft law on the Republic of Iraq's ratification of the air services agreement between the government of the Republic of Iraq and the government of the Republic of Azerbaijan was approved and referred to the House of Representatives, based on the provisions of the constitution."
THIS IS THE GLOBAL ECONOMY ARTICLE BELOW HERE
I know not everyone will read this but it's really good explanation of global economy
Towards a multipolar global monetary policy
I do not believe that there is an authority stronger than the dollar in Iraq, as all authorities submit to it willingly, and there are those who justify themselves by defending their dollar interests and others who advise against harming this authority out of fear or greed. Can we find a way out close to this authority that controls everything, especially since Most of Iraq's revenues are generated through the dollar.
In 2014, BNP Paribas was punished with a fine of $9 billion to be paid to the United States as a result of financing exports from Cuba, Sudan, and Iran with US dollars, because the three countries are under US sanctions, even though the financing process took a fraction of a second when it passed through an account ( Paribas) in New York and nothing more, which made an American court issue this heavy fine despite the fact that all the procedures followed in the transfers were legal according to European laws and despite the fact that the aforementioned bank is a global multinational institution and a financial services holding company that belongs to a friendly country and is headquartered in Paris and is knowledgeable. The nature of international financial laws is broad, yet it was subjected to this harsh punishment, and it was not taken into consideration that this bank belongs to allied countries and is one of the Big Five in the Security Council. These harsh, unilateral measures enabled the Americans to impose their financial hegemony on other countries of the world. As a result of this method and the fear of harsh sanctions, European companies left Iran in 2018 after they complied with the decision of former US President Donald Trump after his unilateral withdrawal from the Vienna Nuclear Agreement. In 2015, when the government of Mr. Adil Abdul Mahdi refused to comply with the implementation of sanctions on Iran, it was overthrown.
It is clear that due to the strength of the dollar, the United States has dominated global trade for a long time, but recently the views of many global financial institutions have differed regarding the future of the US dollar, between those who believe in its weakness in the future and those who believe that it will remain strong as the only stable international currency guaranteed in circulation.
Seventy-eight years ago, specifically after the end of World War II, the dollar became the undisputed reserve and exchange currency around the world, but after the world became involved with it on the basis of replacing it with gold at a fixed price of $35 per ounce, and after central banks flocked to the dollar in order to build up their own reserves. Its deposits were as stable as gold, in addition to being easy to keep or manage. At that time, the Americans began to produce gold when they printed dollars as a counterweight to it. For example, the Bank of France, starting in 1965, systematically replaced gold with the dollar, before America surprised the world on August 15. / August 1971, without prior coordination with any of its allies, by ending the direct international transfer from the dollar to gold. After abandoning gold as a complete cover for money, the currency cover began to combine several components, including gold and the major foreign currencies the state owns (the dollar, the euro, the British pound, the Japanese yen, the Swiss franc, the Australian dollar, and the Chinese yuan), which made every fluctuation in The financial and monetary policies in the United States lead to the instability of the currencies of emerging and developing countries, up or down in a way that does not reflect the economic performance of those countries, which constitutes a source of continuous economic danger. This matter has prompted some countries to use their local currency to settle their commercial transactions in order to avoid the risks of dollar fluctuations or Use of currencies other than US currency.
After the significant rise in global oil prices starting in 1973 and as a result of huge dollar bills, a problem or phenomenon called the “petrodollar” emerged, as the huge amounts produced by the energy markets began to be invested in American markets, which provided a comparative advantage for the United States economy, and led to great frustration among the people. Its European partners in particular, which prompted them, as a natural reaction, to issue a unified European currency in 1999, where the euro was established as a global currency, but it was unable to compete with the dollar due to the lack of a unified European treasury corresponding to the liquidity of New York markets, and thus the dollar remained in its position and influence as the reserve currency. The main trading in the world.
When the global financial crisis occurred in 2008, it was expected that the dollar’s dominance would decline because the crisis was the responsibility of the United States alone, but the strange irony is that its dominance was strengthened, which prompted President Barack Obama to confirm in March 2009 that the dollar would maintain its dominance over global trade, basing this on political reasons. Not economic, which is (that America has the most stable and transparent systems in the world), and an example of that transparency is that everyone is aware of how the US budget, the Federal Reserve, and the financial system work, while their Chinese counterparts operate in a way that lacks complete transparency, which has made the dollar a safe haven without a real competitor. In the short term, which prompts investors to resort to it in any subsequent financial crisis, but this does not negate the decline in its use globally, as the control of the American currency over the world has begun to lose its momentum with the emergence of the phenomenon of “weaponizing the dollar” after the start of the Russian-Ukrainian war, as it resulted in Western economic sanctions on Russia has a bad influence on the global economic, commercial and financial systems in a way that has raised great concerns in global markets regarding the modification of the global financial system. This anxiety and fear led to a decline in global monetary reserves in dollars to 59% currently, after they constituted about 72% in 1999, which is a significant decline in a relatively short period.
However, the de-dollarization of the world will not be completed in the short term, but it is clear that the movement that has begun is irreversible, especially since the United States acted “stupidly” when it made its currency a weapon of political pressure, and they (the Americans) have pushed the world - from... Unintentionally - to form a global movement to get rid of the dollar in order to shake the world’s confidence in American financial actions, especially the unilateral financial sanctions it imposed on many countries.
The United States was not satisfied with that, as it further depleted the reputation of the dollar when it froze the foreign exchange reserves of the Russian Central Bank denominated in dollars in 2022 after their participation as a party in the Russian-Ukrainian war, which made non-Western world leaders fear similar behavior with their countries if a country entered into a war. With one of the neighbors, and that conflict did not satisfy Washington, this means that their countries will lose the bulk of their foreign exchange reserves, which prompted them to begin gradual work to reduce those dollar reserves.
Global resistance to the dominance of the dollar has taken different dimensions, but the clearest example is the increased activity of the BRICS group in accelerating the launch of its own currency to finance its stock exchanges, and China’s development of its own electronic settlement system between banks to constitute an alternative to the Western-controlled SWIFT system after it banned the “SWIFT” association. Almost all Iranian banks, and later Russian banks, stopped using the messaging system, as they justified their actions with money laundering problems and not with US sanctions, which prompted Tehran to link its domestic financial clearing system (SEPAM) to Russia’s financial message transfer system (SPFS), which theoretically enables the two countries. of conducting
cross-border transactions. This activity was then reinforced when Presidents Vladimir Putin and Xi Jinping met on December 15 and announced plans to develop a joint system for financial messages and clearing between Russia and China. This announcement included an invitation to international banks to join this system with the aim of deterring the continuing Western threat of economic sanctions.
The BRICS group of countries, which includes the fastest growing economies in the world, represented by Russia and China, along with Brazil, India, South Africa and other developing countries that have recently joined and others are awaiting approval of their accession requests. The five founding countries of the BRICS structure do not explicitly hide their intentions, namely that they are working to form a new international order that believes in pluralism and the rejection of exclusivity in political and economic decision-making. They do not hide their political goals of attracting international forces that reject
the current international order. This group acknowledges its weakness, represented by the close relationship of some of its members with the United States, but it considers it a challenge that can be overcome over time, through the availability of significant strength factors, such as its share of foreign currency reserves. Four countries, including (China, Brazil, India, and South Africa) hold about 40% of the world’s total monetary reserves, while China alone has about 2.4 trillion dollars, which is a very large number, if we know that it is enough to buy two-thirds of the companies in the Nasdaq index. It is the second
largest creditor after Japan.
As for Russia, it classifies its battle with the West as an “existential battle,” and considers its membership in this group to be a protection for it. It supports its strategic directions and its own choices in formulating a new global principle that emphasizes that all roads no longer lead to Washington alone. The serious work of the BRICS group can be seen through the formation of a group of important financial institutions, such as the establishment of the New Development Bank, based in Shanghai, to become a counterpart and competitor to the World Bank, as well as the establishment of the BRICS Fund, opposite the International Monetary Fund. These two important establishments announced their goals of supporting growth and development at the international level, which represents the first step in the BRICS countries’ plan to create a new global order, and to liberate the world from the restrictions of the two financial institutions (the World Bank and the International Monetary Fund) that the United States controls in formulating their general policy. In a way that serves its interests, as its opponents accuse it of.
An important factor accelerating the emergence of the new system is the utilitarian nature of American economic institutions themselves. As it is expected to follow its interests and join the new system, it will simply not be more patriotic than the European economic institutions that abandoned Europe and left for America, when their interests required that, when America emerged as a unique power in the world at the financial level, and we may witness the transfer of American capital to China. And its allies faster than expected, and then the new international bank and fund will be more attractive to international capital, which will contribute to increasing the growing competitiveness of the BRICS markets in attracting global capital, and this will help the group in overcoming the varying points of weakness among its countries represented by poverty rates. Inequality, in addition to the geographical distance between these countries and the presence of ideological currents of a sharp competitive nature, as is the case between Russia and China.
Iraq, as a developing country, is important to all parties to the global conflict because of its position in the Middle East and its possession of the most important elements of the conflict represented by energy. It can make the right decision after the picture has become clear about the nature of the global economic trends and work to attract everyone to compete in investments that benefit the people of Iraq and provide... Important opportunities in building infrastructure that form the basis for those investments, both Western and Eastern, but he must choose emerging trends when he is in the position of choice, noting that what is rumored about devastating American sanctions against Iraq are merely ideas and stereotypes repeated by some teenagers in politics. And the economy, because I believe that the United States will not resort to such a measure because it will close the expiry date of its remaining confidence as a global economic authority. If it does so, it will lose Iraq forever, and it does not want that at all.
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