Central Bank: The issuance of new monetary denominations will not affect the dinar exchange rate
The video for this Blog post is below here:
The Sudanese advisor talks about the date when the dollar exchange rate approaches the official rate
Today, Saturday, Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Saleh, spoke today, Saturday, about the date when the dollar exchange rate approaches the official rate set by his government, while explaining the basic factors for the decline in the value of the US dollar against the Iraqi dinar in the parallel market.
Saleh said in an interview with a local agency followed by Al-Youm Al-Akhbariya, “The important factors that work to reduce the value of the US dollar against the Iraqi dinar in the parallel exchange market will remain centered on two important variables, the first of which is the increased capabilities of operating banks to comply with external transfer rules,” pointing out that “These indicators are witnessing a cumulative rise, according to which the percentage of requested and executed requests in foreign currency for the benefit of financing foreign trade for the private sector through official transfer ports has increased, which has increased to more than 85% of the total requests executed and in accordance with the principles of banking compliance, which are now being implemented with great speed and efficiency compared to the previous period.” Previously, it did not exceed 30% of the total desired demand for foreign currency.
He added, "This matter at the time caused great pressure on the parallel exchange market, which means that the foreign currency window or the transformation processes towards enhancing foreign currency requests for Iraqi banks with their correspondents from foreign banks are today meeting most of the basic demands for the desired dollar at an official exchange rate of 1,320 dinars per dollar, with flexibility and high governance, instead of financing using parallel market methods, which is an informal market that is highly distorted, noisy, high in cost and has high legal risks.”
Saleh continued, “The second part of the factors is the strength of the country’s foreign reserves, which exceeded 110 billion dollars, and at the same time indicates a distinguished standard for Iraq’s high commercial efficiency, which exceeds 18 import months compared to the global standard of 3 import months,” noting that “financing foreign trade from... Close and strong export areas to Iraq, including, for example, financing in the UAE dirham currency, are proceeding in a stable manner and in accordance with new and efficient banking arrangements, which have facilitated the external transfer of financing export trade to Iraq, which alone takes this market to approximately 20 billion dollars annually, that is, a rate touching 40%. Of Iraq's foreign imports to the private sector of various goods, especially durable ones.
He stressed that "the nearby market has become one of the largest equipped markets in Iraq with high commercial attraction (in addition to the markets of South and East Asia and Turkey), all of which today enjoy wide and great flexibility in establishing stability in the local exchange market as a result of adopting fast and highly compliant official external transfer mechanisms through... The role and mediation of the international banking system.
He explained that "the level of inflation in our country is still at about 4% annually, which is the lowest among the countries of the region, and this reflects high stability in the general level of prices in Iraq," adding that "this stability supports the food basket and the drug basket with their subsidized prices, which touch the needs of the poor and limited-income classes." ".
He pointed out that “the parallel price remaining fluctuating around less than 1,460 dinars per dollar is a secondary indicator that does not constitute any importance in influencing the stability of the general level of prices, which did not exceed 4%,” adding that “transactions within the national economy are affected by the official exchange rate of 1,320.” One dinar for every dollar, especially after the phenomenon of (dollarization) ended legally, and according to the enforcement of the law, the use of dollars was criminalized in settling obligations and internal transactions. The positive effects of the flexibility of external transfer through the international banking system, which is supported by the strength of the country’s foreign reserves, are gradually working to dispel the expectations of speculators.”
The Prime Minister’s Advisor for Economic Affairs explained that “the proximity of the parallel exchange rate to the official exchange rate is inevitable in the coming days as long as the current account surplus of the Iraqi balance of payments exceeds (positive 4% or more) relative to the gross domestic product,” concluding by saying “This ratio is an important standard indicator of the balance of the official exchange rate with indicators of overall stability in our country.”
After the government’s pledge.. the dollar is heading to decline and the “official and parallel” are equal.
Today, Sunday (May 26, 2024), financial affairs expert Alaa Glob Al-Fahd confirmed that the parallel dollar exchange rate is close to being equal to the official one.
Al-Fahd said in an interview with "Baghdad Today", that "according to the reform measures and indicators carried out by the Central Bank of Iraq throughout the previous period through the application of an electronic platform for currency transfer and also procedures for direct correspondent relations between Iraqi banks and foreign banks, these measures brought positive results to control... On the parallel exchange rate and the black market.”
He added, "There is a decrease in demand in the parallel market for the dollar, and this has had a positive and direct impact on the stability of the exchange rate, and these measures must be fully implemented," pointing out that the measures began gradually, and this will call for a decline in the difference between the parallel price and the official price, which is expected. During the coming period, there will be equality between the two prices, and there will be great financial and economic stability.”
Yesterday, Saturday (May 25, 2024), Mazhar Muhammad Saleh, the economic advisor to the Prime Minister, confirmed that the dollar exchange rate in the parallel market was close to matching the official price, in conjunction with the increased capacity of banks to meet requirements.
Saleh said in a press statement followed by “Baghdad Today” that “the price of the dollar will be 1320 dinars in the coming days,” noting that “the important factors that work to reduce the value of the US dollar against the Iraqi dinar in the parallel exchange market will remain centered on two important variables, the first of which is the rise Capabilities of operating banks to comply with external transfer rules.
He explained that "the indicators are witnessing a cumulative increase, according to which the percentage of requested and executed requests in foreign currency for the benefit of financing foreign trade for the private sector through official transfer ports has increased, which has increased to more than 85%."
For more than two months, the exchange rates of the dollar against the Iraqi dinar have stabilized around 145 thousand dinars per 100 dollars, after it was between 155 and 160 thousand dinars per 100 dollars, while the decline in the exchange rate coincided with an increase in the amount of the Central Bank’s sales of dollars.
Why Iraq wants the UN's political mission to wind down
Analysis: The call to wrap up the UN Assistance Mission for Iraq is part of Baghdad's efforts to change the country's international image.
Iraq increasingly wants to forge a new path that emphasises it is a normal member of the international community and can stand on its own feet. This requires that it shed the institutional hallmarks of the post-2003 period.
As part of that, Baghdad wants to end the mandate of the UN Assistance Mission for Iraq (UNAMI), which has provided the country with political, electoral, and development support for the last two decades.
In a letter to UN Secretary-General António Guterres dated April, but made public on 12 May, Iraqi Prime Minister Mohammed Shia al-Sudani noted UNAMI’s positive contributions, but asserted that “after [twenty] years of democratic transition and overcoming great and varied challenges, the grounds for having a political mission in Iraq are no longer available”.
The letter said that Iraq is calling to “permanently” end UNAMI’s mandate on 31 December 2025, adding that the mission’s efforts should be “limited to completing its work (only) on the files of economic reform, service provision, sustainable development, climate change, and other development sectors” from now on.
What this leaves out is UNAMI’s critical political functions. The mission provides what is known in international relations as “good offices,” where a third country or a neutral institution offers a platform for bringing parties together to resolve disagreements.
UNAMI does this in a variety of ways, including helping to broker deals between Baghdad and Erbil, offering mediation between Kurdish parties, and facilitating dispute resolution between Iraq and neighbouring countries, most notably Kuwait.
The mission’s political mandate also includes a requirement that it report to the Security Council about developments in Iraq. The most recent such briefing took place on 16 May.
In light of Iraq’s demands, the question arises: what is the point of a political mission like UNAMI if it is unable to carry out a political role?
"Baghdad wants to show that this is not the same Iraq that had a civil war, insurgencies, or all of these sort of conflicts that have represented the country for the last few years"
Changing Iraq's image
The call to wrap up UNAMI’s mission is part of a larger effort by Baghdad to change Iraq’s image and steer it into an era focused on ordinary, bilateral relations with other countries and international institutions.
Renad Mansour, director of the Iraq Initiative at Chatham House, told The New Arab that “the veneer of sovereignty” is important to the government of Iraqi Prime Minister Mohammed Shia al-Sudani.
Mansour said that Baghdad wants to show that “this is not the same Iraq that had a civil war, insurgencies, or all of these sort of conflicts that have represented the country for the last few years, but that this is a new chapter”.
This is also why Sudani’s government hopes to renegotiate the presence of international troops that are in Iraq as part of the anti-Islamic State (IS) coalition.
In March, the results of the strategic review were released. Although it largely praised UNAMI’s work, it advised that the mission’s current mandate, including its political role, be extended for just two years before being concluded on 31 May 2026.
Sudani’s April letter was a response to the strategic review’s activities and conclusions. It objected to the fact that Perthes met with officials and figures outside of the Government of Iraq, including party officials, members of the Kurdistan Regional Government (KRG), and civil society, and demanded a shorter timeline for closing down UNAMI and that its activities be restricted to non-political functions.
Mansour noted that there is a “big debate about UNAMI’s role” and that not everyone agrees with the government in Baghdad that the mission’s political activities are no longer needed.
Baghdad’s desire “to end the mission like this was a bit unexpected, because it basically killed everything,” a Kurdish foreign policy official speaking on background told The New Arab, saying that they had anticipated that the mission would conclude eventually.
“UNAMI’s good offices were always very helpful in facilitating dialogue,” they said. “Losing that channel, it's not helpful, to say the least.”
The end of UNAMI’s mandate will not mean that Iraq completely ends UN activities in the country.
As the April letter noted, Baghdad wants “to raise the level of cooperation with the United Nations and its specialised agencies,” including UNDP specifically, to “overcome economic, climate, and environmental challenges that face Iraq and the region”.
"This is a symbolic effort from the government to present the country as a sovereign state that does not need a UN mission, that it does not need the UN Security Council having a briefing every quarter"
Therefore, it is clear that the purpose of ending UNAMI’s mandate is largely for political reasons, rather than practical ones.
“This is a symbolic effort from the government to present the country as a sovereign state that does not need a UN mission, that it does not need the UN Security Council having a briefing every quarter,” Mansour said.
Some members of the international community have expressed trepidation about ending the mission, albeit in diplomatic language.
“The US has strongly supported the mission’s work,” Vedant Patel, a State Department spokesperson, told a press conference on 13 May. “We are working with the Government of Iraq and fellow Security Council members to ensure an orderly and responsible wind-down that meets…the needs of the Iraqi people.”
The US is a particularly important actor because it is the penholder for Iraq issues on the Security Council, which means that it leads negotiations and drafting resolutions. This will be important in the coming weeks.
Next steps
There are several possible scenarios in terms of how the mandate renewal process could play out in New York when the Security Council meets to discuss the issue at the end of May. Ultimately, the mission’s fate is dependent on these negotiations.
The Security Council could accept Iraq’s demands as expressed in Sudani’s letter and issue a mandate that ends on 31 December 2025 and does not include authorisation for continuing UNAMI’s political role.
Alternatively, it could establish a new mandate negotiated with Iraq that outlines a new set of core functions. It could also temporarily roll over the current mandate for a period of three or six months to give itself time to decide what to do next.
Less likely scenarios include the Security Council rejecting Iraq’s demands outright and continuing the mandate as it stands. At the Security Council briefing on 17 May, however, most country representatives recognised that UNAMI’s presence should end, even those who expressed support for its work.
“Now is the time to transition to a new partnership between Iraq and the United Nations,” the UK’s representative said, while Switzerland emphasised that the transition be “responsible, orderly, and gradual”.
However, others strongly backed Iraq’s demands. For example, Russia’s representative told the meeting that Iraq’s continuing challenges “should not be used as an excuse for the Mission’s endless presence there”.
Baghdad could also change its mind and request the current mandate remain in place. This situation occurred earlier this month when Somalia appeared to step back from a demand to quickly terminate the UNSOM mission. However, this would cut across Iraq’s apparent motivations and is a far-fetched scenario.
Twenty-one years after the removal of Saddam Hussein and a decade on from the IS emergency, Iraq is not without major challenges. It is clear, however, that the UN’s political role in helping Iraq navigate those treacherous waters will soon end.
Only time will tell whether this will leave the country without a useful tool for ensuring stability and progress.
Winthrop Rodgers is a journalist and analyst based in Sulaymaniyah in Iraq's Kurdistan Region. He focuses on politics, human rights, and political economy.
Al-Haims announces joint cooperation to list government bonds on the Iraq Stock Exchange
Today, Sunday, Chairman of the Securities Commission, Faisal Al-Haims, announced joint cooperation with the Central Bank and the Ministry of Finance to list government bonds on the Iraq Stock Exchange.
Al-Haimas told the Iraqi News Agency (INA): “The authority is independent and affiliated with the Council of Ministers. Its work is to monitor the trading of bank shares to complete their requirements and list them in the Iraq Stock Exchange, by submitting financial statements according to the required timelines.”
He pointed out, "There has been great cooperation during the recent period with the Central Bank and the Ministry of Finance to list government bonds in the Iraq Stock Exchange."
this is all over everywhere over there because they want people to know it's fake
but interesting time for it to come out
The Iraqi Central Bank reveals the truth about the “Zaha Hadid” currency, denomination of 100 thousand dinars
On Sunday, the Central Bank of Iraq denied issuing a new currency in the denomination of (100) thousand dinars, on which a picture of the late architect Zaha Hadid appears.
The Central Bank indicated, in a statement received by Shafaq News Agency, that “the image of a new currency circulated on social media is a (fake) image bearing the image of the late Iraqi architect Zaha Hadid,” calling on citizens to “be careful and not deal with it if it is presented.” Some for the purpose of fraud.”
The Central Bank confirmed that there are no intentions to print a new currency at the present time, and that it will take legal measures “against violators and promoters of this counterfeit currency.”
Nechirvan Barzani: The environment is suitable for Qatari investment in Iraq and the region
The President of the Kurdistan Region, Nechirvan Barzani, received today, Sunday, the Secretary-General of the Qatari Ministry of Foreign Affairs, Ahmed bin Hassan Al-Hammadi.
The Presidency of the Region said, in a statement received by Shafaq News Agency, that the meeting was attended by the Ambassador of Qatar to Iraq and the Consul General of the State of Qatar in Erbil, indicating that the two sides stressed the development of Qatar’s relations with Iraq and the Kurdistan Region, and they also talked about Qatari investment opportunities in Iraq and the Region.
The Qatari delegation affirmed its confidence in Iraq and the Kurdistan Region, and its desire to develop relations in the economic and commercial fields that Qatar is opening in Erbil.
The delegation also expressed its willingness to invest in the fields of energy, tourism, agriculture, education, health and many other fields.
Barzani congratulated the Qatari delegation on the opening of the Consulate General in the Kurdistan Region, and stressed that the environment is suitable for Qatari investment in Iraq and the Kurdistan Region, especially in infrastructure projects.
He also expressed his gratitude for the support of the State of Qatar and its assistance to Iraq and the Kurdistan Region, noting that Iraq and the Kurdistan Region have many partnerships with Qatar.
During the meeting, the situation in the region and a number of issues of common interest were also discussed.
Advisor to the Prime Minister: The pattern of public spending will contribute to reducing the 2024 budget deficit
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Sunday, that the variables of the financial tables for the 2024 budget match the constants of the tripartite budget, and while he indicated that the spending pattern will contribute to reducing the deficit, he pointed to the presence of high discipline in maximizing non-oil revenues.
Saleh told the Iraqi News Agency (INA): “The variables in the financial tables for the year 2024 were in accordance with the constants adopted by the Federal (Tripartite) General Budget Law No. 13 of 2023, especially with regard to the axis of the hypothetical deficit, which amounts to approximately 64 trillion dinars.”
He explained, "There are important trends in the management of the public budget in addition to public expenditures, as the spending ceiling reached 211 trillion dinars, or revenues and deficits."
He pointed out that "oil prices are still higher than their estimates in the tripartite budget of $70 per barrel, with a positive change rate of more than 16 percent above the approved price, and we are approaching the middle of the fiscal year while maintaining the export rates approved in the budget and managing oil production efficiently and in accordance with... International agreements with OPEC on the issue of controlling production quotas.”
He added, "There is high discipline in maximizing non-oil revenues, especially tax and customs revenues, specifically after adopting automation, modern methods, and information technology in tax and customs estimation, estimation, and collection."
He pointed out, “Seeking to impose discipline on operational expenditures and keeping spending on them within acceptable minimum limits, in addition to being keen to raise the efficiency of investment spending and operating all approved projects, in order to ensure a high growth rate in the gross domestic product at a rate exceeding twice the population growth rate, by launching a movement New projects without delay or stop.
Saleh stressed that “the pattern of public spending, according to the schedules announced, is characterized by accuracy, objectivity, and self-savings, which contributes to reducing the resort to financing the actual deficit, even when needed, through internal borrowing and within limits that ultimately do not exceed the acceptable international standard ratio for financing the deficit, which is.” 3 percent of the country's total gross domestic product.
I can't find the other article but it showed the security forces showing up
but I should be able to find it eventually then I'll send it
An explosion in Khan Bani Saad, south of Diyala
link
Khan Bani Saad (Diyala)
A security source reported, on Saturday evening, that an Awakening member was killed and 7 others were injured when an explosive device exploded in Khan Bani Saad.
The source told:
An explosive device exploded in the city of Khan Bani Saad, southwest of Baquba, the center of Diyala Governorate, killing a member of the Awakening and a civilian who was near the site of the explosion.
When an army force arrived, a second bomb exploded, wounding 7 army soldiers and another Awakening member.
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MONDAY MAY 27 24
The advisor to the head of the State of Law coalition, Nouri al-Maliki, directed a strong censure at Prime Minister Muhammad Shiaa al-Sudani, in what appears to be a rare decline in the relationship between the two parties. Abbas al-Moussawi said that the framework believes that the tables that reduced the governorates’ budgets were issued with the intervention of al-Sudani and was not the action of the Minister of Finance. Taif Sami, and pointed out concerns that the Prime Minister might be thinking about reducing the funds allocated to the governors, and keeping them for electoral investment in federal projects before the next elections, and strongly criticized the government’s policy of “accustoming” Iraqis to social welfare salaries, and said that they should only be for those unable to work. This is one of the few times that the objections of the Maliki coalition to government policy have escalated, especially what the Minister of Labor, Ahmed Al-Asadi, who belongs to the coordination framework, is doing to increase the number of beneficiaries of social welfare salaries, which is believed to have been one of the reasons that forced the government to reduce budgets. Governorates.
Al-Moussawi confirmed that the circulated tables are correct and have been verified by the Finance Committee. He said that the Sudanese should have discussed the governorates’ investment budget tables with the coordination framework and the state administration coalition before sending them, and he warned against repeating the scenario of former Prime Minister Haider al-Abadi, who at that time stopped most investment projects. In the governorates to deal with the decline in oil prices, which caused the disappearance of the completion of lagging projects, and great losses for the state.
Abbas Al-Moussawi, advisor to the head of the State of Law coalition, in an interview with the journalist Hisham Ali, followed by the 964 network :
Regarding the tables mentioned in the media...are they correct?
We contacted the Finance Committee and parliamentarians, and these schedules have actually arrived.
The governorates that we believe are oppressed and in need of larger amounts of funds and larger projects have had their allocations reduced to two-thirds.
Frankly, before presenting these controversial tables, Al-Sudani was supposed to address the leaders of the framework, as the tables were not presented in the framework, and everyone was surprised by that. The artistic direction of these tables shocked everyone.
It was supposed to be presented within the framework and discussed within the framework, so that we could convince our partners in the state administration of this.
We do not want to go back to Al-Abadi’s stage, which cost the state billions that we do not need, when the government stopped entire projects, and caused project failures, and then in the governments that came after it, contractors filed lawsuits against the government because they say that the government was the one who blocked them because it did not have the money, and now If we reduce the budget, how will we finance ongoing projects?
There will also be unemployment, and it is not true that every year we add a million people to social welfare. Rather, I am supposed to increase job opportunities by operating companies.
It is a big mistake to accustom our people to social care. Social care should be for the needy and the elderly who are unable to find a real job opportunity, not to turn social care into “staying at home” and receiving a salary and not looking for work.
The Ministry of Planning’s statement says the governorates are not qualified to take money to manage projects, and Basra Governorate says it has not received 30% of the 2023 allocations. In the end, this government is our government, and the Sudanese must solve these basic files directly and not depend on someone here and someone there for that, and he must He requests a meeting with the framework and explains to him the schedules, the financial situation of the country, and our entire financial stock.
But you voted on the tripartite budget and now you disagree with Sudanese?
The agreement last year was to vote on the general lines, and annually to vote on the schedules.
Now in the tables, our fear is not electoral. We are not afraid of the Sudanese entering the elections, nor are we afraid that the Sudanese will use it, but in the last elections some ministers used state funds and it did not affect us electorally.
All parties fear that the Sudanese will take all the shares, as all the projects will be in the hands of the centre.. Is this true?
We are waiting for Sudanese to meet with the framework to dispel these fears.
So...this fear of using money electorally is real?
naturally.
Will you continue the schedules as they are, even if the Sudanese does not attend the meeting?
I do not imagine that it will pass. I imagine that the first touches of these tables have been drawn up by the Minister of Finance, but the other aspect is political, so I do not imagine that the Minister of Finance determines these large numbers (herself), so how can she raise Kurdistan’s number from 2.4 to more than 4 trillion, while it has been reduced? Nasiriyah 70%...on what basis? So I took a political opinion, the Prime Minister’s opinion on the matter.
For example: She had a vision, and she came to the Prime Minister and told him that she had a financial problem, and the Prime Minister started downloading the schedules, so it is impossible for the Minister of Finance to make the decision to raise Kurdistan’s budget on her own. We are waiting to hear from the Prime Minister this vision. Why did the budget increase in Kurdistan and decrease in other provinces?A
Barzani: The ground is suitable for Qatari investment in Iraq
The President of the Kurdistan Region, Nechirvan Barzani, said on Sunday that Iraq has many partnerships with Qatar.
The regional presidency said in a statement, seen by Al-Eqtisad News, that “Barzani received, today, Sunday, Ahmed bin Hassan Al-Hammadi, Secretary-General of the Qatari Ministry of Foreign Affairs, during a meeting attended by the Ambassador of the State of Qatar to Iraq and the Qatari Consul General in Erbil.”
The statement added, "The two sides emphasized strengthening Qatar's relations with Iraq and the Kurdistan region, and exchanged views and views on opportunities and areas of Qatari investment in Iraq."
For its part, the Qatari delegation stressed that “its country trusts Iraq and the Kurdistan region and desires to strengthen relations in the economic and commercial fields, and for this reason the Qatari General Consulate in Erbil will be officially opened today,” expressing its readiness to “invest and operate capital in the sectors of energy, tourism, agriculture, education and health.” And other fields.”
The President of the Kurdistan Region, Nechirvan Barzani, expressed his “happiness at the opening of the Qatari General Consulate in the Kurdistan Region,” stressing that “the ground is suitable for Qatari investment in Iraq and the Kurdistan Region, especially in infrastructure projects,” according to the statement.
Barzani also expressed "thanks and appreciation for Qatar's support and assistance to Iraq and the Kurdistan Region," noting that "there are many things in common between Iraq, the Kurdistan Region, and the State of Qatar."
BUDGET
Despite the observations recorded on its schedules... a parliamentary affirmation of the necessity of resolving the budget
Members of the House of Representatives expressed their keenness to approve the budget despite the presence of comments on its schedules.
A member of the Parliamentary Legal Committee, Raed Al-Maliki, said, “The House of Representatives is keen to complete voting and approve the budget tables, but there are observations on the tables, as well as ambiguity in some allocations, whether increased or decreased, so we need clarifications from the government.”
He added, "The clarifications we are demanding will be obtained through the meetings of the Finance Committee with the Ministry of Finance and the relevant authorities," indicating that "in the end, the House of Representatives has the authority to reduce the budget ceiling and expenditures by making transfers."
For his part, a member of the Finance Committee, Khalil Dusky, said, “There is no increase in the tables that reached the House of Representatives regarding the workforce, but the paragraphs related to the budget law give powers to the ministries - especially the security services, health, and education - and these paragraphs will not be discussed in the tables.” But we will discuss the current and investment budget allocations for the governorates and ministries in general.”
Expert: 3 files hinder voting on budget tables
The economic expert, Abdul Rahman Al-Sheikhli, revealed 3 files that hinder voting on the budget tables.
Al-Sheikhli said, during his hosting of the program {Free Speech} broadcast by Al-Furat satellite channel this evening, that: “
There are three problems that hinder voting on the budget, which are {provincial allocations, the process of transferring between chapters, and political interference}.
-The tables attached to the budget are important and should be Taking into account the revenues in it
- The total amount in the 2024 budget changed from the 2023 budget, as well as the tables, there is a large difference between the two years -
The total amount in the 2023 budget changed from 199 trillion dinars to 226 trillion dinars in the 2024 budget.
- The 2024 budget revenues amounted to 144 trillion dinars and more. 300 billion dinars, while the percentage of expenditures according to the tables amounted to about 211 trillion dinars -
The planned deficit in the budget is 36 trillion dinars, and according to the new projects, it will reach 80 trillion dinars -
The number of projects increased in the 2024 budget to 5,500 projects
- We have a waste of money that led to the delay of projects. -
Within 10 years, Iraq is qualified to advance the economic file beyond the economies of neighboring countries.
- We have 20 items that can be invested in, except oil.
A government advisor reveals a plan to reduce the budget deficit
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that the variables of the financial tables for the 2024 budget are consistent with the constants of the tripartite budget, and while he indicated that the pattern of spending will contribute to reducing the deficit, he pointed to the presence of high discipline in maximizing non-oil revenues.
He pointed out that "oil prices are still higher than their estimates in the tripartite budget of $70 per barrel, with a positive change rate of more than 16 percent above the approved price, and we are approaching the middle of the fiscal year while maintaining the export rates approved in the budget and managing oil production efficiently and in accordance with... International agreements with OPEC on the issue of controlling production quotas.”
He added, "There is high discipline in maximizing non-oil revenues, especially tax and customs revenues, specifically after adopting automation, modern methods, and information technology in tax and customs estimation, estimation, and collection."
He pointed out, “Seeking to impose discipline on operational expenditures and keeping spending on them within acceptable minimum limits, in addition to being keen to raise the efficiency of investment spending and operating all approved projects, in order to ensure a high growth rate in the gross domestic product at a rate exceeding twice the population growth rate, by launching a movement New projects without delay or stop.
Saleh stressed that “the pattern of public spending, according to the schedules announced, is characterized by accuracy, objectivity, and self-savings, which contributes to reducing the resort to financing the actual deficit, even when needed, through internal borrowing and within limits that ultimately do not exceed the acceptable international standard ratio for financing the deficit, which is.” 3 percent of the country's total gross domestic product.
We are not Qashmars.” Parliamentary Finance reveals a surprise about the 2024 budget and reveals what is hidden
A member of the Parliamentary Finance Committee, Mustafa Jabbar Sanad, revealed that stopping disbursement in the 2024 budget is due to the lack of cash liquidity, as there is a need for 17 trillion per month, while all revenues do not reach the limits of 10 trillion, so the problem is the lack of money whether it is Vote on the budget in the House of Representatives or not.
Sanad said in a voice print seen that “the budget tables, whether voted on by the House of Representatives or not, will not stop the budget, as the tripartite budget came to treat the annual budget, knowing that the annual budget has no problem if it comes.” The annual budget has ended and the year after which the Operational Financial Management Law is implemented, 1/12 is spent, and investment is spent on completed work sectors, that is, when the contractor completes his work, he receives his money even if he exceeds the governorate’s allocations for the previous year, and this was implemented in 2022, and the Minister of Planning had an important role in it. Crafting this story.”
The representative explained, “The tripartite budget is approved schedules, but it is not permissible and there is no justification for stopping disbursement, and stopping disbursement is due to the lack of cash liquidity, as the 2023 budget was 206 trillion, and it was exceeded by 8 trillion, and revenues are approximately 130 to 140 trillion.” Per year, therefore, according to the 2024 budget, there is a need for 17 trillion to be spent per month. Where are these amounts obtained from? At a time when oil revenues are 8 to 9 trillion, and there are licensing expenses that are obtained in addition to the revenues that come from taxes, customs, and others. There are also 400 thousand barrels from the region, and all of these will not reach 10 trillion per month, so the problem is the lack of money whether the budget is voted on in the House of Representatives or not.”
A member of the Finance Committee pointed out that “the 2023 budget was voted on, but the governorates were funded with only 30 percent of their entitlements, and the same is true with the ministries and investment. This is all a clear game, and we (are not Qashmars), but rather understand state affairs.”
Al-Rafidain Bank announces the implementation of the comprehensive banking system in the Anbar and Mosul University branches
Al-Rafidain Bank announced the implementation of the comprehensive banking system in its two branches (Anbar and Mosul University).
A statement from the bank stated: “The two branches joined the branches in which the comprehensive system was activated, in Baghdad and the governorates, bringing the total number of branches operating in accordance with the system to (27) branches, in addition to the branches of the border crossings (Zurbatiyah - Safwan - Arar - Trebil) in an important step.” To leave paper work and move completely towards electronic transformation.”
The bank confirmed: “The plan for digital transformation and adoption of the comprehensive banking system is proceeding according to the set timings to include all branches of the bank in implementing the system, especially since one of the priorities and adoptions of the government program is electronic transformation in financial transactions, reducing episodes of red tape for citizens, and reducing time and effort in completing citizens’ transactions.
Iraq is close to opening the first factory to produce naval and military boats
During the current year, the Military Industries Development Company will open the first factory of its kind in the country to produce military naval boats, revealing that it has concluded advance manufacturing contracts with the leadership of the Naval Force.
The company’s general manager, Ali Mohsen Khudair, said in a statement followed by Al-Ahed News Agency, “The authority, as part of its plans to develop the military industry in the country in cooperation with international companies, will open during the current year the first factory of its kind for the production of military naval boats, and it will also specialize in rehabilitating and maintaining ships.” River and marine vessels.
He added, "The factory, which was equipped with the latest advanced devices and equipment, and is currently in operation, is located within the site of the (Uqba bin Nafi) facility in the Yusufiyah region, noting that the production of boats of various types was carried out before 2003 within the Dhat Al-Sawari Company affiliated with the Ministry of Industry and Minerals." However, it was not at the required level.”
Khudair revealed that “the Authority had concluded prior contracts with the leadership of the Iraqi Naval Force to equip it with naval boats with specific specifications, which reflects the success of the economic feasibility achieved previously, which focused on the factory’s production of boats of various types, in accordance with the requirements and specifications of the beneficiary in the security services of the maritime police.” And the river.”
He pointed out that "the manufactured boats are characterized by being fast interceptors, designed according to international specifications, operating with high efficiency in various marine conditions, and also enjoying high stability."
The company director confirmed, “The Authority intends to develop the work of the fleet of boats and military naval boats of various types, which will contribute to supporting the country’s economy as well as creating great job opportunities for the workforce:.
Kurdistan Finance deposits more than 85 billion dinars into the federal government’s account
The Ministry of Finance and Economy of the Kurdistan Regional Government announced, on Monday, that a portion of the Kurdistan Region’s internal revenues for the month of February had been deposited in the bank account of the Iraqi Ministry of Finance.
The Kurdistan Finance Ministry explained in a statement received by Shafaq News Agency, that it "deposited an amount of (85,199,634) dinars (eighty-five billion, one hundred and ninety-nine million, six hundred and thirty-four thousand dinars) from the internal revenues of the Kurdistan Region for the month of February 2024 in cash in the bank account of the Iraqi federal government in the Erbil branch." "For the Central Bank of Iraq, amounting to 50% of tax and customs revenues in the Kurdistan Region for the month of February."
She added, "This came according to the monthly amended balance sheet reports."
The Kurdistan Regional Government announced on Wednesday, April 24, 2024, that it had deposited in the account of the Federal Ministry of Finance the Federal Treasury’s share of non-oil revenues in the region.
Report of the International Monetary Fund on its consultations with Iraq on Article IV for the year 2024
link they are just know posting this to the CBI hmmmm It's Iraq's reply to the IMF report it's in Arabic and English
The report issued by the International Monetary Fund mission for the current year 2024 for Article Four consultations praised the Iraqi government’s measures, including the monetary policy led by the Central Bank of Iraq. The report indicated that the Central Bank of Iraq has taken several measures aimed at stabilizing the national currency and controlling monetary inflation.
Adding that the Central Bank raised the interest rate on monetary policy tools from 4% to 7.5% and increased the mandatory reserve requirements for banks from 15% to 18%, and these steps were decisive in reducing the inflationary pressures that Iraq suffered from, and this contributed to creating an economic environment. More stable.
The report emphasized that important reforms in the banking sector, such as the gradual increase in bank capital and mergers between small banks, aim to strengthen the banking sector and increase its efficiency and flexibility in the face of economic shocks.
The report noted that Iraq has implemented new compliance measures to improve the transparency of cross-border financial transactions, by launching an electronic platform that imposes the disclosure of financial beneficiaries, which enhances the integrity of financial transfers in accordance with international banking standards, as well as the role of the Central Bank of Iraq in expanding relations. Correspondent banking, to facilitate smoother international trade financing operations.To view the full report.. Click here
Central Bank of Iraq
Information Office
May 27, 2024
With three explosive devices... targeting the KFC restaurant in Al-Jadriya
A security source reported today, Monday, that the KFC restaurant in central Baghdad was subjected to an armed attack.
The source told Mawazine News, "The KFC restaurant in Baghdad was completely damaged after it was subjected to an armed attack with three explosive devices."
It is noteworthy that the restaurant had previously received repeated threats and witnessed popular demonstrations in front of its building due to the ongoing war in Gaza.
Iraqi security forces on Sunday announced the arrest of two gunmen who targeted a branch of popular fast food restaurant KFC in Baghdad by throwing a homemade “explosive device” at the front door.
A KFC restaurant branch in Baghdad’s Palestine Street was targeted on Saturday night by two suspects on a motorcycle who “threw a homemade explosive device,” Baghdad Operations Command said in a statement.
“After following the surveillance cameras and tracking down the perpetrators, their identities were revealed and they were caught and arrested,” the statement said, adding that their pistols were also confiscated.
The attack resulted in material damage to the entrance of the restaurant.
A world-renowned American fried chicken chain, KFC is among a number of Western brands that have been subject to boycott calls over their alleged links to Israel, with boycotts in the Muslim world particularly slashing the earnings of many popular chains including McDonald’s and Starbucks.
The boycotts are in response to Israel’s deadly military campaign against the Gaza Strip which has killed over 35,700, according to the Palestinian health ministry. Israel’s campaign was in retaliation to a large-scale incursion into southern Israel by Palestinian Hamas militants based in Gaza, which killed over 1,170.
Iraq is a staunch supporter of the Palestinian cause and has on several occasions condemned the lack of global support for justice for Palestinians.
KFC also has several branches in the Kurdistan Region’s capital of Erbil, and an additional branch in Duhok city.
Government advisor: Iraq is about to use robots in agriculture and computer manufacturing
Advisor to the Prime Minister for Investment Affairs, Head of the Iraq Fund for Development, Muhammad Al-Najjar, confirmed receiving more than 1,200 investment applications to establish schools in the country, while indicating that Iraq is on the verge of using robots in agriculture and manufacturing tablet computers, transportation buses, and electric cars.
Al-Najjar said in an interview with Al-Masala channel, that the main goal of the fund is to attract investments to Iraq, as memorandums have been signed with more than 20 companies, and now the time to activate them has begun, indicating that the main goal of the investments is to localize part of the industry and agriculture and the optimal use of water in Iraq.
He added that diversifying sources of income for the economy and introducing technology into all areas of work is in the interest of the Fund, explaining that among these industries that have been approved is the construction of transport buses in Iraq, the manufacture of electric cars, and the entry of a company specialized in vertical agriculture that uses robots or robots in agriculture, and thus These industries will create a lot of job opportunities in Iraq.
He pointed out that Iraq is on the verge of manufacturing electronic tablet computers, as most countries use them in the education sector in the world, explaining that the Fund has reached an understanding with one of the companies that manufacture computers in Iraq to begin distributing them to schools, reducing the costs of printing books, and developing the student’s practical competence.
...
Sudanese advisor: Oil prices are still higher than their budget estimates and we are trying to keep spending to the minimum
A financial advisor to Prime Minister Muhammad Shiaa Al-Sudani revealed features of the financial budget schedules for the year 2024.
Mazhar Muhammad Saleh told {Al-Furat News} agency, “The announcement of the variables in the financial tables for the past year 2024 was undoubtedly in conformity with the constants adopted by Law No. 13 of 2023, the Federal (Tripartite) General Budget Law, specifically in the axis of the hypothetical deficit amounting to approximately 64 trillion dinars, and did not stray far.” Estimates of the budget tables in the planned deficit paragraph, as stated in the law above.”
He added, "Despite the above, there are important trends in the management of the public budget, whether on the side of public expenditures, in which the spending ceiling reached 211 trillion dinars, or the revenues and deficit itself, and they are summarized as follows:
1- Oil prices are still higher than their estimates in the tripartite budget of $70 per barrel, with a percentage change." Positively exceeding 16% above the approved price above, as we approach the middle of the fiscal year, while maintaining the export rates approved in the budget and managing oil production efficiently and in accordance with international agreements with OPEC regarding the issue of controlling production quotas.
2- There is high discipline in Maximizing non-oil revenues, especially tax and customs revenues, specifically after adopting automation, modern methods, and information technology in tax and customs assessment, estimation, and collection.
3- Striving to impose discipline on operational expenditures and keeping spending on them within acceptable minimum levels.
4- Ensuring to raise the efficiency of investment spending and operating all approved projects. This is to ensure a high growth rate in the gross domestic product, at a rate more than twice the population growth rate, by launching the movement of new projects without delay or stop.
Saleh noted that “the pattern of public spending, according to the schedules announced, is characterized by accuracy, objectivity, and self-savings, which contributes to reducing the resort to financing the actual deficit, even when needed, through internal borrowing and within limits that ultimately do not exceed the accepted international standard percentage for financing the deficit, which amounts to 3%.” “of the country’s total gross domestic product or slightly more than it.”
He pointed out "not to forget that the efficiency of annual spending in the operational and investment aspects is an important issue in determining the total annual public spending as planned."
Central Bank: The issuance of new monetary denominations will not affect the dinar exchange rate
Member of the Board of Directors of the Central Bank of Iraq, Ahmed Barihi, confirmed today, Monday, that the issuance of new cash denominations, large or small, will not affect the dinar exchange rate.
Brehi told Al-Ma’louma, “Issuing rumors on social media sites about the issuance of new monetary denominations aims to create a state of confusion in the Iraqi market.”
He added, "The Central Bank of Iraq is working according to well-studied plans, and there is no intention to issue new currencies in large or small denominations."
He explained, "If we assume that the central bank issues a new currency, this will not affect the exchange rate of the Iraqi dinar."
pretty good article
When will Iraq resort to offering the 100,000 currency?
With the spread of pictures on social networking sites of a new currency of one hundred thousand dinars, and the Central Bank’s haste to deny the matter, specialists in banking affairs ruled out that Iraq would offer such a currency, due to what they called “an inappropriate time,” and they pointed out that this The pictures served as a public pulse on the acceptability of the step. A government advisor confirmed that the country is currently moving towards adopting a digital payments system as a strategic option.
The economic and banking expert, Abdul Rahman Al-Mashhadani, says, “The image of the currency that was circulated and caused controversy is a research project for students in fine arts at the University of Mosul, and apart from the lapses in form and design, it provided the Central Bank with a pulse on the street about accepting or rejecting the idea, especially since The bank sometimes thinks about this matter to fill the deficit.”
Al-Mashhadani adds, “The pictures that spread did not receive a categorical official rejection, although the Central Bank denied that it had introduced this currency. The conversations revolved around the negatives and positives of this step,” noting that “the idea is not new, and it was in the form of deleting three Zeros and introducing a new currency to push individuals to keep the dinar, not the dollar, for issues related to ease of storage, because that idea was in 2012 for security issues.”
But at the present time, the economic expert states that “there is no justification until this moment for offering a new currency. Instead of offering the hundred thousand note, the printing of the fifty thousand note could be increased, if the bank is thinking about financing the government deficit, because the market cannot tolerate the presence of a large currency, so even a currency.” The fifty thousand, many citizens try to get rid of because they are heavy and similar in shape to a thousand dinar coin.”
He continues, “But if the bank wants to print this currency, a less valuable currency must be withdrawn to reduce the money supply, and this means that it wants to push people to digital transformation, as there will only be large currencies, and the citizen will resort in daily transactions to the electronic card, and this is possible, but “It needs other measures.”
Yesterday, Sunday, the Central Bank of Iraq denied issuing a new currency in the denomination of (100) thousand dinars, as it stated in a statement that “what was circulated on social networking sites regarding the image of a new currency in the denomination of 100 thousand dinars is a fake image, bearing the image of the Iraqi architect.” The late Zaha Hadid,” while calling for “caution and not dealing with it if some offer it for the purpose of fraud,” stressed that “there are no intentions to print a new currency at the present time,” stressing that “it will take legal measures against violators and promoters of that counterfeit currency.”
For his part, the advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, points out that “Iraq is not currently thinking about offering a new currency, as the country is currently moving towards adopting the digital payments system as a strategic option in raising the efficiency of the overall payments system in the country, and imposing discipline on the flow of cash liquidity.” Within a high-level digital banking system.”
Social media users circulated an image claiming that it was a design for a 100,000 Iraqi dinar banknote to be issued by the Central Bank of Iraq, and bearing the image of the late Iraqi architect Zaha Hadid, before it became clear that this claim was incorrect, and the image was designed by students at the Institute of Fine Arts in Nineveh as graduation projects. .
In addition, Mustafa Hantoush, a researcher specializing in financial and banking affairs, explains, “Banks usually resort to printing small currencies in the event of financial stability, such as fifty and one hundred dinars or iron coins, for example, given that the purchasing power of the currency is large. Even these small currencies become powerful.” .
Hantoush adds, “The opposite happens when governments resort to printing large currencies, that is, when currencies lose their value or may resort to deleting the zeros, and this happens in two cases: Either in the case of high inflation or in the case of accounting restrictions, and this is a serious matter, as the appropriate time must be chosen for such a step, as the citizen is not ready to exchange his currency for a new one, so he will resort to the dollar and gold.”
He continues, “Many governments justify the introduction of a large currency by addressing the accounting situation due to the presence of large numbers such as trillions, but this must be in a state of monetary stability and for the people to understand that the currency needs to delete zeros for accounting purposes.”
How to market investment opportunities?
I recently saw a summary of what was published during the Economic Forum for Financial, Industrial and Commercial Partnerships between Iraq and Jordan, which Amman recently hosted, which addressed important topics aimed at creating industrial, financial and commercial partnerships between the two brotherly countries, and was an opportunity to market investment opportunities between the two countries as well.
In a simplified definition of the concept of the economic forum, it is the tent that embraces the meeting of experiences, competencies, and specialists from the business community and official bodies, to discuss ways to advance the reality of countries’ economies in accordance with their interests, and the opportunities are supposed to be mutual.
It is noteworthy that economic forums are organized by civil society organizations with an economic identity, and here there must be an evaluation of this major role that gives the private sector the opportunity to play the role of creating partnerships and available opportunities.
Therefore, it was the Iraqi Business Council in Amman, which is one of the economic organizations that includes an elite group of businessmen and specialists in the field of investment, that held this forum with the aim of marketing Iraq’s needs for investment opportunities. It was also an opportunity to learn about Jordan’s need to present their investment opportunities, and hence our choice of the title of the article. ; How to market investment opportunities.
In a preliminary reading of the outcomes and results of the forum’s work, it was a valuable opportunity to exchange information about the specific investment opportunities for the two countries (Irq and Jordan) in particular, and the rest of the countries participating in the forum, which were represented by a wide sector of international investment companies, businessmen and financial people in the participating countries.
Iraq enjoys great uninvested wealth, so one of the forum sessions dealt with presenting one of the most important of these wealth, which pertains to the field of mining and industry, to be one of the outcomes of the forum, and to reflect the importance of such forums, and it is clearly known that Iraq enjoys them as a land of opportunities.
Therefore, launching investment opportunities must be consistent with the country’s economic reform vision and its investment priorities that help investors identify the available opportunities, in terms of the type and size of the available investment opportunity.
The forum is a strategic opportunity to enhance cooperation and economic integration among participating countries, which supports the development of vital sectors and enhances economic growth in the region.
Promising to begin with, we must note the emergence of the role of the private sector, especially the Iraqi private sector,
In organizing and embracing such important forums, on the path to achieving sustainable development and the desired progress.
This role appears for the first time on this scale.
During these days full of visits
And ongoing meetings aimed at creating partnerships
Durable, this indicates a new and important direction
For this era in Iraq's history.
Good efforts deserve praise.
Planning and the World Bank discuss supporting the “development path”
The Minister of Planning, Muhammad Ali Tamim, discussed yesterday, Sunday, with a delegation from the World Bank, support for the stages of the development road project.
A statement from the ministry stated, “The Minister of Planning received a delegation from the World Bank, headed by the Regional Director for the Middle East, Jean-Christophe Carré. The delegation included the Regional Director for the Infrastructure Sector at the World Bank for the Middle East and North Africa, Paul Numba, and the specialist in the energy sector, Alex Madeleine, in the presence of Special Representative of the World Bank Mission in Iraq, Richard Abdel Nour. He added, "During the meeting, the level of multiple support provided by the World Bank to the Development Road Project was discussed, including the modernization of the current railway network, the new link to Turkey, and the southern link with the large port of Al-Faw. The two sides stressed the developmental and economic importance of the Development Road Project through the services it provides." Job opportunities, investments and regional development.”
He continued, "The two parties also discussed the World Bank's continued support for the energy sector in Iraq, with regard to strengthening the electricity network, developing renewable energy, and regional connectivity."
The framework meets due to the objections of its components to the 2024 budget
An informed source reported today, Monday, that a meeting was held for the coordination framework regarding the 2024 budget.
The source told Shafaq News Agency: “The Coordination Framework Forces are holding an important meeting at the home of Haider al-Abadi, in the presence of Prime Minister Muhammad Shiaa al-Sudani, to discuss the 2024 budget schedules.”
He added that the reason for holding the meeting was because there were objections to it by the framework forces and a refusal to pass it in its current form.
Parliament hosts the Ministers of Finance and Planning
Deputy Prime Minister and Minister of Planning, Muhammad Ali Tamim, stressed yesterday, Monday, that the government and Parliament are one team working together to achieve the public interest, explaining that the increase in the 2024 budget comes to meet the needs of the basic sectors, in addition to financial allocations to implement major and important projects. .
Tamim explained, in a statement following the Finance Committee meeting with the Ministers of Planning and Finance, that “the government is paying great attention to completing the implementation of lagging projects and fulfilling the obligations of governorate projects,” pointing to “developing a plan to increase non-oil revenues.”
The Minister of Planning indicated that “all the required amounts have been allocated to the Emergency Support for Food Security and Development Law.”
In turn, Finance Minister Taif Sami explained, “The mechanism for financing projects and disbursing amounts included sources of financing projects, from oil and non-oil revenues, and the mechanism for distributing amounts between various ministries and spending units, in addition to how to finance the region.”
She stressed “the government’s commitment to implementing the Financial Management Law. In addition, the Minister addressed the issue of oil and non-oil revenues, and the importance of cooperation between the government and the House of Representatives to ensure effective implementation of the budget and achieve the best results for citizens.”
It is noteworthy that the Parliamentary Finance Committee, headed by Atwan Al-Atwani and in the presence of its members, held an expanded meeting with the Deputy Prime Minister and Minister of Planning, Muhammad Ali Tamim, and the Minister of Finance, Taif Sami, in the presence of the Prime Minister’s advisors, Abdul Karim Al-Faisal, Kazem Al-Hassani, and Muhammad Sahib Al-Daraji, to discuss and analyze the data of the tables related to the Federal General Budget Law. For the fiscal year 2024.
It also discussed a number of topics, the most important of which is the analysis of spreadsheet data and the mechanism through which financial allocations were made, whether current or investment, and the reasons for increasing the current budget amounts, in addition to the spending policy, the mechanism for disbursing the amounts, ways to fill the deficit, and how to increase non-oil revenues, as well as About the allocations file for the Emergency Support for Food Security and Development Law.
The committee stressed the commitment of the executive authorities to finance ongoing projects in all governorates, asking about the legal basis that authorizes governors to contract regarding the implementation of projects, and whether the budget texts are in effect for the three years, as they requested all details in official letters for review.
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