The dollar is reeling from a fatal blow and there are fears of a collapse of the dinar
The video for this blogpost is below here:
The fluctuation in dollar prices and the rise in gold prices has significantly affected the contraction of the commercial market in terms of imports and purchases of goods, amid confusion in opinions between the return of the rise in green and its decline to the official price set by the state of 1,320 dinars per dollar.
The price of the dollar in the parallel market is currently 1,460 dinars, whether higher or lower than this rate.
The Central Bank of Iraq's cancellation of the currency {auction} window at the end of 2024 and Washington's sanctions on Iraqi banks have opened a door of doubts that will end up placing the dollar in the face of speculation, which will make it vulnerable to demand after the recovery of the Iraqi dinar with government orders that limited dealing in the dinar to restrict the movement of the dollar.
While officials find that the establishment of the electronic platform and the level of regularity of the flow of external remittances responsible for financing private sector trade and the escalation of financing rates have reached very high rates through the compliance platform of banks active in this regard, and the rise in gold prices is not considered a direct impact on the improvement of the exchange rate.
This was confirmed by the Prime Minister’s Advisor for Financial and Economic Affairs, Mazhar Muhammad Salih {to Al-Furat News}, saying: “Active positive factors have affected the recovery of the Iraqi dinar in the secondary exchange market, foremost of which is the high level of regular flow of foreign remittances responsible for financing private sector trade and the escalation of Financing rates are very high through the compliance platform of active banks in this regard.”
He explained, "What this means is that the demand for foreign currency through official external transfer operations, which is responsible for 90% of the total desired demand for foreign currency, as most of it is now met at the official exchange rate of 1,320 dinars per one dollar, which gave the official market dominance over the market." Parallel to the exchange.”
Saleh stated, “As for the developments taking place in the gold commodity market or gold filigree, especially the sudden price developments therein, up and down, they are not considered an alternative directly affecting the improvement of the exchange rate because they are limited in impact and impact on the movements of the parallel exchange market, and that the main gold trade is financed as foreign trade through Transfers from the banking system and the official exchange market.
Contrary to the government opinion, the Parliamentary Finance Committee supported the theory of doubts and confirmed that the dollar would reach {200} thousand dinars with the cancellation of the currency auction.
Deputy Chairman of the Parliamentary Finance Committee, Ahmed Mazhar Al-Janabi, said {to Al-Furat News} that “the Central Bank’s decision to cancel the currency auction at the end of the year will open space for exploitation and a problem will occur. If the auction is canceled and ends, the exchange rate in the markets may double, and if the Central Bank goes towards this option, the dollar exchange will "It will reach 200 thousand dinars," according to his opinion.
I am certain that “it will open space for speculators to exploit the matter. The current price is higher than the official price, despite the sale of approximately $250 million per day. So what if the auction stops?”
In light of this, economists expected that the demand for the dollar would continue to exceed supply, thus leading to a re-depreciation of the dinar, due to the central bank’s limited ability to provide coverage.
Economist Manar Al-Obaidi said in a statement, “The demand for the dollar depends primarily on commercial transactions and covering imports. The greater the demand for imports, the higher the demand for the dollar, and with the Central Bank’s limited ability to cover this demand as a result of the set limits, it is expected that it will continue.” Demand is greater than supply and thus leads to a decline in the price of the dinar against the dollar.”
He added, "An observer of the exports of the main countries exporting to Iraq notices an increase in the value of these countries' exports, as the value of Turkish exports to Iraq increased by 30% in the first quarter, while Chinese exports to Iraq increased by 20% in the first quarter, as well as the exports of other countries such as the Emirates, India, Iran, and Brazil."
Al-Obaidi attributed the reasons for this increase to five basic factors:
1- The rise in global inflation, which led to an increase in the values of various commodities in various exporting countries.
2- Inflation of invoices, as some merchants agree with the processing party to inflate invoices to obtain transfers in higher amounts. In order to resell the converted dollar in those markets
3- The change in the consumption pattern of the Iraqi citizen and the high population growth rates that increase the demand for various commodities, which increases demand
4- The increase in government agreement as a result of the increase in operational and investment expenses
5- The lack of a capable local industry To compete with the imported product as a result of high costs.
Al-Obaidi added, “These four reasons are mostly due to the loss of tools to control the state’s financial policy (taxes + customs + control of expenditures). In order to control this significant rise in the value of imports, which leads to an increase in demand for the dollar, customs and tax policy must be changed.” "For many sectors, there is a need to possess the tools capable of implementing these policies in a more effective and productive manner."
Al-Obaidi added, "Continuing the import bill will lead to an increase in demand for the dollar and thus an increase in its price in the parallel market, which is what many of those who benefit from the low official price are looking for. The inability to control imports and the loss of control over financial policy tools will put the state in front of a single solution." There is no second option, which is the use of monetary policy, which is something that many economic specialists do not favor, and they prefer to always focus on controlling financial policy.”
As the Hajj season approached, the Central Bank stopped selling the dollar to travelers, and to find out its reasons, the former director of the Financial Supervision Bureau, financial expert, Salah Nouri, said {to Al-Furat News} that “the recent Financial Supervision Bureau report, which was covered by satellite channels, about violations in the sale of the dollar to travelers, is a major reason to review the procedures and address them.” The defect in the transfer system, and stopping until the situation is corrected.”
In the same context, the economic expert, Safwan Qusay, revealed the leakage of travelers’ dollars to the parallel market.
Qusay said {to Al-Furat News}, “The current policy of the Central Bank of Iraq is towards auditing the cash dollar, which was marred by many failures in the first periods, especially its leakage through travelers to the irregular market, and this issue needs a new and clear mechanism.”
He added, "It is assumed that travelers are dealt with through tourism and airline companies, and the travel ticket is not allowed to be canceled unless the traveler returns the amount he purchased from exchange outlets or banks."
Qusay stressed that "this measure will restore confidence in the cash dollar and the possibility of facilitating the mission of real tourists and filling the gaps that accompanied the process of establishing the electronic platform for the cash sale of foreign currencies."
He stated that "the Central Bank will not hesitate to provide the dollar to those entitled to it, whether at the level of Hajj or other windows," noting that "the Central Bank's emphasis on procedures for granting citizens the cash dollar ensures that it reaches those who need it."
Meanwhile, travelers expressed their surprise at the Central Bank’s decisions to prevent government banks from selling dollars to travelers.
Travelers said, via {Al-Furat News}: “We are surprised by the Central Bank’s decisions to prevent government banks from selling the dollar to travelers and monopolizing it only with financial transfer and exchange companies.”
Travelers called on Parliament and members of the Parliamentary Finance Committee to “intervene and solve the problem and allow government banks to carry out the process of selling the dollar, especially in conjunction with the delegation of pilgrims to the Holy House of God, and they need to buy the dollar at the official price.”
The House of Representatives decides to extend its first legislative term by 30 days
The Presidency of Parliament decided, today, Thursday, to extend the first legislative term of the House of Representatives by 30 days.
The Parliament’s Media Department stated in a statement received by the Iraqi News Agency (INA), that “based on Article 58 of the Constitution, the Presidency of the House of Representatives decided to extend the first legislative term, for the third legislative year, in the fifth electoral cycle,
for a period of thirty days.
Economist on the decline in dollar prices: My time and it will not reach its official price
Economist Nabil Jabbar Al-Ali ruled out, today, Thursday, that the dollar exchange rate against the dinar would reach its official rate set by the government and the Central Bank of Iraq at about 1,320 thousand dinars.
Al-Ali told Al-Maalouma, “The decline in the dollar exchange rates will be temporary during the current period, and will not reach the threshold of its official price set by the government and the Central Bank at about 1,320 dinars for every 100 dollars.”
He added, "The dollar has declined against the dinar in recent days due to a number of factors, the most important of which is the use of smart cards that enable business account holders to withdraw dollars abroad, which is a good reason for the decline in the value of the dollar."
Today, Thursday, the exchange rates of the dollar against the dinar recorded a noticeable increase in the stock market and banking shops in the capital, Baghdad.
Khamenei met in a private room.. What does Barzani want from the Tehran trip?
About 13 years after Masoud Barzani, then President of the Kurdistan Region, traveled to Tehran and met with Ali Khamenei, he met with his nephew Nechirvan Barzani, who is now leaning in his uncle’s chair, and spoke with almost all the senior officials in the Iranian government .
Barzani's meetings were held in Tehran at a time when occasional Iranian missile and drone attacks on targets in Kurdistan have sparked protests from Kurdish officials and the Iraqi central government, but Iran says its missiles are destroying "spy centers belonging to Israel."
Barzani said after his meeting with Supreme Leader Ali Khamenei in a blog post on “X”: “I was honored to meet with the Supreme Leader of the Islamic Republic of Iran, Ayatollah Ali Khamenei, in Tehran, and in this meeting we confirmed the readiness of Iraq and the Kurdistan region to strengthen comprehensive relations with the Islamic Republic of Iran .”
But it seems that the leader of the Islamic Republic considered Barzani more than just a foreign guest; According to the published photos, Khamenei held a conversation with Barzani, not in a place where his foreign guests were welcomed, but in one of the rooms where some of his private meetings were held, including with Iranian officials .
In addition to Khamenei, Barzani also met and spoke with Ebrahim Raisi, Hossein Amir Abdollahian, and Mohammad Bagher Qalibaf. But what was the Prime Minister of the Kurdistan Regional Government in Tehran looking for?
Postponing the Kurdistan Region elections?
Following a complaint by the Iraqi Patriotic Union of Kurdistan Party led by Bafel Talabani, the Iraqi Federal Court decided to reduce the number of seats in the Kurdistan Regional Council from 111 to 100. The 11 reduced seats belong to the Turkmen, Assyrian and Armenian minorities in this region, which were classically defined after their election victory over "Kurdistan Democratic Party"; A party that considers Nechirvan Barzani one of its senior officials .
After this decision, the Kurdistan Democratic Party requested that the parliamentary elections of the Kurdistan Region, which had been postponed several times, be postponed again .
These elections were initially scheduled to be held on October 1, 2022, but conflicts between two powerful Kurdish political parties in the region caused these elections to be postponed several times .
Some political observers say that one of the goals of Barzani's presence in Tehran is to seek the influence of the officials of the Islamic Republic on the Iraqi Shiite leaders and of course on the National Union Party, so that they can, with their help, postpone the elections scheduled for next June 10 .
Consolidating the Kurdistan Region’s relations with Iran?
Nechirvan Barzani's statements during his visit to Tehran show that this Kurdish politician repeatedly assured the Iranian authorities that he would not allow opposition groups in Kurdistan to carry out activities against the Iranian government .
This is one of the important issues for the Islamic Republic, and it has so far issued many warnings to the authorities of the Kurdistan Regional Government .
Jawad Qadri, Deputy Media Director of the Office of the President of the Kurdistan Region, told the opposition Radio Farda, “Barzani assured the Iranian authorities in Tehran that the regional government will not allow any group or country to take measures against Iran and other neighboring countries from the territory of this region .”
If the regional authorities stick to what they say, it is likely that one of the main conflicts between Iran and the regional government will be resolved .
Among the other pretexts offered by the Iranian authorities to carry out their missile and drone attacks on the region is Israel’s influence and presence in this region. But Qadri said about this matter: “In the past and during this visit, Barzani announced to high-level Iranian officials that the regional government has no relationship with Israel and that it is committed to following the policies and decisions of the Iraqi central government in its foreign affairs.”
This narrative could be an indication of the regional government's desire to allay Iran's fears or at least remove the pretexts used by the authorities of the Islamic Republic for its attacks and assaults on the lands of Iraq and Kurdistan .
The security treaty between Iran and Iraq
In March 2023, Iran and Iraq signed a security agreement, under which Tehran gave Iraq until September 19, 2023 to disarm the Iranian Kurdish parties stationed in the Kurdistan region and close their military camps .
This agreement was concluded six months after the Iranian Revolutionary Guard attacked the headquarters of these Kurdish parties with missiles and drones. Dozens of members of these opposition Kurdish parties were killed in rocket attacks, which the Kurdistan Region and the Iraqi central government have repeatedly described and condemned under the title of “violation of national sovereignty.”
A few days after the deadline, Iranian officials thanked the Iraqi central government for disarming these groups, but at the same time demanded the complete expulsion of these people from Iraqi territory .
Some media outlets in Iran reported that the authorities asked him during Barzani’s trip to pave the way for “full implementation of the security treaty” between Iran and Iraq. This is a request that could perhaps be translated as the expulsion of Kurdish parties and individuals opposed to the Islamic Republic from Iraq .
In such a situation, one of the goals of this trip may be to try to deepen relations between the two sides, after easing tensions and with the aim of preventing a recurrence of events that in recent years have only brought destabilization to the region. Kurdistan Regional Government of Iraq .
After the referendum on the independence of Iraqi Kurdistan in October 2017, which ended inconclusive due to the opposition of regional players including Iran and the Iraqi central government, the parties distanced themselves more than before, and Tehran, taking into account the great influence it had gained under the strong influence of... The armed groups affiliated with it in Iraq exploit it to their advantage to exercise power and change climate conditions .
As a result, and given what Barzani said in Tehran, as well as the threats made by the Islamic Republic to the territory of the Kurdistan region in recent years, it is possible that the Kurdish authorities have reached the conclusion that through dialogue and rapprochement with Tehran in the form of a unified Iraqi discourse, At least to reduce the risks and threats that Tehran directs towards them .
This approach is similar to what happened previously by Arab countries such as the United Arab Emirates and the Kingdom of Saudi Arabia, and these two countries moved towards reducing the escalation with Tehran in order to protect themselves from the threats that Iran might direct to them .
This proximity to the regional government gives Iran more bargaining tools in its dealings with the central government in Iraq and increases the influence of the Islamic Republic in the political, military, economic, and security equations of this country .
A report by Iranian opposition websites says, “The kind of reception and attention given by the authorities of the Islamic Republic to Nechirvan Barzani’s visit indicates that the Iranian authorities also welcome this rapprochement.”
According to reports, “But the obstacles that have turned into challenges in the way of close relations between the Islamic Republic and the regional government over the years are still capable of keeping the parties away from the path that was apparently designed with the aim of controlling tensions and improving conditions for closer relations.”
Cihan Bank backs MyAccount initiative as pioneering digital transformation
"At the heart of the MyAccount initiative lies the empowerment of citizens through enhanced access to banking services," Babli remarked.
Issa Abdullatif al-Babli, Director of Digital Banking at Cihan Bank, heralded the launch of the MyAccount initiative as a transformative milestone in digitizing the financial landscape of the Kurdistan Region.
In an exclusive interview with Kurdistan24 on Thursday, May 9, 2024, Babli underscored the pivotal role of the MyAccount project in revolutionizing the region's financial ecosystem, offering citizens a myriad of indispensable services at their fingertips.
Describing the MyAccount platform as a gateway to the digital banking realm, Babli emphasized its accessibility and convenience, providing users with seamless access to a comprehensive suite of electronic services.
"At the heart of the MyAccount initiative lies the empowerment of citizens through enhanced access to banking services," Babli remarked.
"By leveraging the MyAccount card, individuals can effortlessly manage their finances, from receiving salaries directly into their accounts to engaging in online shopping both domestically and internationally," he explained.
Highlighting the versatility of the MyAccount card, Babli elucidated its utility in facilitating seamless money transfers, both within Iraq and abroad.
"Through this innovative platform, citizens can initiate and receive money transfers with unparalleled ease and efficiency, transcending geographical boundaries," he added.
Furthermore, Babli underscored the convenience of digital banking services, emphasizing the accessibility afforded to users through personalized card functionalities.
"With a secure login and password, users can access their account details and card balance from any Cihan Bank branch, empowering them with real-time insights into their financial standing," he explained.
In heralding the MyAccount project as a harbinger of societal transformation, Babli expressed optimism about its far-reaching implications, envisioning a shift towards a cashless society characterized by seamless transactions and enhanced financial inclusion.
"As we transition from a cash-based society to one driven by digital credits, the MyAccount initiative heralds a new era of empowerment and convenience," he remarked.
In essence, the MyAccount initiative represents a paradigm shift in banking practices, embodying the Kurdistan Region's commitment to embracing technological innovation and fostering economic resilience in an increasingly digitized world.
Delay in Iraq's 2024 budget as Parliament enters recess
With the Parliament entering a legislative recess, Iraq's 2024 budget faces delays as the Parliamentary Finance Committee cited increased spending and a significant deficit.
On Thursday, the Iraqi Finance Committee disclosed the reasons behind the delay in voting on Iraq's 2024 budget and its presentation to Parliament.
Committee member Mohammed Nouri cited increased government spending, a significant budget deficit, and the government surpassing the 2023 budget as reasons for postponement.
"The government is now focusing on reducing unnecessary expenditures, enhancing non-oil revenues, and cutting the deficit percentage in the 2024 general budget, which currently exceeds 80 trillion dinars." He told Shafaq News Agency.
Nouri expected the budget law tables to be presented in the next Council of Ministers session for approval and then to be submitted to Parliament.
Meanwhile, Mazhar Mohammed Saleh, financial and economic advisor to the Iraqi Prime Minister, explained to Shafaq News that the delay stemmed from enacting the Federal General Budget under Law No. 13 of 2023 and its implementation starting in August 2023.
"This timeline necessitates financial statements for 2024 based on 2023's financial movements, a process requiring at least four months."
On the other hand, Legal Committee member Raed Al-Maliki revealed that the Parliament would enter its legislative recess starting tomorrow, Friday.
Al-Maliki clarified that the first legislative chapter of the third legislative year concluded on Thursday, and the legislative recess would last until June 9. During this time, the Parliament will be in recess for only one month.
"Although Parliament enters legislative recess, discussions on crucial matters like the Speaker's position or budget tables could prompt an extraordinary session during recess," Al-Maliki said.
In June 2023, the Iraqi Parliament greenlit the general budget covering 2023, 2024, and 2025.
The current budget marks Iraq's largest in history, estimated at approximately $153 billion annually, with the Kurdistan Region anticipated to receive around 12.6% of the total.
Notably, the budget carries a substantial financial deficit of roughly $48 billion annually, the nation's highest recorded deficit, prompting concerns regarding potential repercussions amid oil price fluctuations.
The budget mandates a fixed price of $70 per barrel of oil and an exchange rate of 1300 dinars per US dollar for three years.
Iraq's oil export target is set at 3.5 million bpd, including 400,000 bpd from the Kurdistan Region. However, Kurdistan's exports have been suspended since March 2023 through the Ceyhan port in Turkiye after a compensation order by the International Chamber of Commerce related to "unauthorized" oil exports by the KRG between 2014 and 2018 without Baghdad's supervision.
Iraqi Parliament stalls 2024 budget amid speaker election impasse
Ikhlas Sabah Al-Dulaimi, Deputy Chairman of the Finance Committee of the Iraqi Parliament, revealed that the proposed 2024 budget is estimated at 228 trillion dinars, with a significant allocation of 100 trillion dinars earmarked for salaries.
Amidst protracted negotiations over the election of a new speaker, the Iraqi Parliament grapples with a budget impasse, with the 2024 budget amendment yet to be tabled for parliamentary approval.
Ikhlas Sabah Al-Dulaimi, Deputy Chairman of the Finance Committee of the Iraqi Parliament, revealed that the proposed 2024 budget is estimated at 228 trillion dinars, with a significant allocation of 100 trillion dinars earmarked for salaries.
However, the budget remains in limbo as political wrangling over the election of a new speaker prolongs legislative deadlock.
Despite the conclusion of the parliamentary session and the onset of a legislative recess, the absence of consensus on the speaker's election has thwarted progress on the budget amendment.
The completion of the budget amendment schedule notwithstanding, the failure to elect a speaker has obstructed its transmission to parliament for deliberation.
The Shiite Coordination Framework has issued a week-long ultimatum to Sunni factions to nominate a candidate for the speakership.
Should the Sunnis reach an agreement internally, a special parliamentary session is slated for the ensuing week to elect the new speaker.
Commenting on the prevailing situation, Raed Maliki, a member of the Legal Committee of the parliament, underscored the necessity of parliamentary consensus to address the impasse.
"While the customary legislative recess is underway, any developments regarding the budget amendment schedule or the speaker's election may warrant an extraordinary session, subject to the request of the speaker or 50 MPs," he asserted.
While Iraq navigates a delicate political landscape marred by factional rivalries and procedural disputes, the fate of the 2024 budget hangs in the balance, contingent upon the resolution of the speaker election deadlock.
Amid mounting public scrutiny and economic uncertainties, swift parliamentary action is imperative to avert further delays and restore confidence in Iraq's legislative process.
Iraq has the tenth worst economic growth in the world during the last 5 years
Iraq ranked highly globally among the countries with the least economic growth during the last 5 years, while poor economic growth was concentrated in the countries of Africa and the Middle East due to Corona and then the conflicts that have existed so far.
Iranian mediation between Baghdad and Erbil.. Revealing the most prominent files of Raisi’s visit to Iraq - Urgent
Today, Friday (May 10, 2024), a member of the House of Representatives from the Kurdistan Democratic Party, Mahma Khalil, expressed his position on the visit of Iranian President Ibrahim Raisi to Iraq, while he saw that Iranian mediation is important between Baghdad and Erbil.
Khalil said in an interview with “Baghdad Today” that “the Iranian president’s visit to Iraq is based on the givens and conditions of the region and the important relations between Baghdad and Tehran,” recalling “the visit of the President of the Kurdistan Region, Nechirvan Barzani, to Iran.”
He added: "We have historical relations with Iran, which has often stood with us since fighting the dictatorial regime and fighting ISIS."
Khalil stressed, “Baghdad and Erbil want to develop relations with Tehran, and there is an Iranian effort to reduce the gaps in the center and the region,” considering that “Raisi’s visit will solve many problems.”
On May 7, 2024, the President of the Kurdistan Region, Nechirvan Barzani, announced an upcoming visit by the President of the Iranian Republic, Ibrahim Raisi, to Iraq, including the Kurdistan Region.
A government advisor reveals the fate of the budget tables
The financial and economic advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, commented on the reasons for delaying sending the 2024 budget schedules to the House of Representatives.
Saleh said, in a press interview, that “the (tripartite) federal general budget was legislated under Law No. 13 of 2023 and was published in the Official Gazette on June 26, 2023, as a medium-term financial plan. Despite this, the budget did not become effective and implemented for the fiscal year 2023 until In August of last year, this coincided with the issuance of instructions to implement the budget, both operational and investment, as the instructions are an integral part of the legislative process to implement the provisions of the law in the best way, which means that the application of the principles of the federal general budget on the ground in all its dimensions has been completed in the last third. From last year 2023.”
He explained that "this last third of the implementation of the general budget last year required the submission of the financial statements for the fiscal year 2024, that is, the tables of revenues, expenditures, and deficit estimates, based on the provisions of Article 77/Second of the General Budget Law No. 13 of 2023 referred to above." The aforementioned article stipulates the following: “The Council of Ministers must send the budget schedules for the fiscal years 2024 and 2025 before the end of the previous fiscal year to the House of Representatives for approval.”
The Sudanese advisor continued: “Based on the above, and in terms of the timeline, Article 77 could have been implemented if the tripartite general budget had been enacted and became effective on the first of January 2023 and not in the month of August.”
Saleh added, “Estimating the schedules for the year 2024 and 2025 must depend on the financial movements taking place in the year 2023 in part and knowing something about the final account for the aforementioned year in accordance with the Financial Management Law. This requires at least four months to know the liquidation of previous financial obligations according to The principle of entitlement.
He added: "But the 2023 budget did not witness the actual implementation of all its details until the last months of last year, which requires the need for an appropriate time frame in order to make estimates of the required schedules and in accordance with the approved financial constants and variables and the possible fluctuations therein."
Saleh concluded his speech by pointing out that “the delay that occurred does not mean that the House of Representatives is far from the circle of communication with the executive authority, broad consultation, exchange of information, and access to the country’s financial details, but rather that the House of Representatives is fully informed and appreciates the importance of the time frame for making estimates and building practical and professional applications.” "The necessary precision, especially in the 2024 and 2025 budgets."
Al-Sudani's angry message to Guterres: We do not need UNAMI.. Describe your belongings and leave
Set a deadline
Today, Friday, Prime Minister Muhammad Shiaa Al-Sudani renewed his demand to the Secretary-General of the United Nations, Antonio Guterres, to end the mission of the “UNAMI” mission in Iraq, while setting December 31, 2025, as the date for conclusively ending the mission’s work. Al-Sudani reviewed in his letter to Guterres, observations The government is working on the work of the “strategic review team” associated with the Security Council, including consultation with unofficial bodies. The Prime Minister also expressed his “regret” at what was stated in the team’s latest report, indicating that he did not differentiate between the point of view of the government that represents the people and the point of view of the parties. “Unofficial” represent their personal opinions, stressing that the mission’s work during its remaining time in Iraq will be limited to completing its work “only” in the files of economic reform, service provision, sustainable development, and climate change, and completing the liquidation and implementing responsible closure procedures during the year 2025.
The following is the text of Al-Sudani’s letter to Guterres:
English for text below:
Republic of Iraq Prime Minister Kumari Iraq Sa rock and zeeran We are fully confident that the Secretary-General, the President and members of the Security Council are aware of the positive, tangible changes over the past two decades, and we hope that the Security Council will issue a resolution setting the date for the end of the mandate of the Yasi Mission in accordance with the request of the Government of the Republic of Iraq, the Alpha. This opportunity extends our gratitude and appreciation to the international community that has supported Iraq over the past twenty years, especially by helping to form state institutions after the end of the dictatorial regime and thus fighting terrorism. Thanks are extended to Your Excellency and to all those working in the United Nations for the efforts that enabled the UNAMI mission to undertake During her entire mandate, as she was a model of constructive cooperation between countries and the United Nations, and to the Special Representative of the Secretary-General, Mrs. Plasschaert, wishing her success in her next station, and also thanked all those working in the mission during the previous years for playing an important role in pivotal and decisive stages in the history of Iraq. Accept the highest consideration and appreciation Prime Minister of the Republic of Iraq
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Why did the dollar fall? The Central Bank is optimistic: We will not stop before 1320
But the representative of the exchange companies is pessimistic
Dollar prices continue to fluctuate and fall below 1450, and Ammar Hamad Khalaf, Deputy Governor of the Central Bank, says that the relative decline in the exchange rate is due to the increasing number of private sector companies that finance their investments through the Central Bank’s platform and its official channels, in addition to the bank meeting any demand for the dollar related to financing. Foreign trade, as it has huge reserves exceeding $100 billion, while economic expert Nabil Al-Tamimi confirms that the adoption of private banks that have direct accounts with foreign correspondent banks created a new path for remittances instead of restricting them to the platform only, which increased the volume of sales.
However, the representative of exchange companies in Iraq, Dhia Al-Taie, presents a pessimistic view, as he says that money exchangers are experiencing a stagnation in business, and there is no speculation, due to instability, stressing that the current decline in the exchange rate will not continue and will rise again during the next few days, because Washington did not take any actual decision to reduce the exchange rate, such as increasing the share of the dollar or lifting sanctions on punished banks, considering what is happening to be merely manipulation of the price.
Ammar Hamad Khalaf - Deputy Governor of the Central Bank:
Transactions are made in dollars, whether through the platform or our other official channels to finance foreign trade.
The Central Bank's sales rate is almost stable and the numbers are published on a daily basis, fluctuating between an increase and a slight decrease.
What has changed now is the presence of large trade for private sector companies, as these companies realized the importance of investment and conducted their activities through the platform, official channels, and approved banks in Iraq.
We have a very large reserve of more than $100 billion, and we are ready to meet any demand related to foreign trade as long as it is real.
Our primary goal is to eliminate the gap between the official exchange rate and the black market, and for the decline to reach 1320 on a steady and permanent basis, and we seek to reach this as long as we have sufficient reserves to meet any demand for the dollar according to the official rate.
There is high coordination and continuous communication between the management of the Central Bank and the government.
Nabil Jabbar Al-Tamimi - researcher in economic affairs:
It cannot be denied that there is speculation in the market, but monitoring and analyzing the financial cycle in Iraq reveals that the Central Bank’s sales rose by 30%, sometimes reaching $300 million. This means including the largest number of traders entering the currency selling window in an official manner, which means keeping them away. About the parallel market.
A month ago, the Central Bank’s sales increased significantly due to a major factor, which is the change in the path of transfers. Previously, they were limited to a platform managed by the Central and Federal Banks. This resulted in a delay in merchant transfers for weeks. Now there are transfers from private banks that were able to open direct accounts with the bank. Foreign correspondent banks, in addition to platform remittances, so the presence of two remittance channels increases the percentage of sales.
There are 3 factors that affect the manipulation of the exchange rate, the first is geopolitical related to dealings with the Federal Reserve and the US Treasury, and the second is; An internal factor related to sales mechanisms and sales volume, in addition to merchants’ access to the dollar, and the third is the speculation factor. There are diagnosed cases and influential pages on social media sites, but it remains within a certain limited margin.
Diaa Al-Taie - representative of exchange companies in Iraq:
There is media coverage of the decline in the exchange rate as a result of resolving the issue of frozen banks, even though the US Treasury promised Sudanese to resolve the issue, but not soon.
Washington has not taken any current decision regarding the exchange rate. It has not increased the share of the dollar and has not returned any bank to work or lifted the penalty on any party. Therefore, this decrease is a manipulation and not a change in the structure of the Iraqi economy.
A few days and the exchange rate will rise again because it did not decline based on a real, fixed change in the central bank’s mechanisms for the dollar.
They prefer to put their money in their homes.. When will the banking sector gain the trust of Iraqis?
The citizen prefers that keeping his cash in his home is a guarantee of its security, rather than having it in institutions that they do not trust in to house this money, which has led to the impeding the growth of the banking system in the country, while the Iraqi government is trying to attract cash liquidity by automating the citizen’s daily transactions. Through electronic payment cards and other plans to restore this trust between the citizen and the Iraqi banking system.
Banks, in turn, increased the number of their bank branches. Many private banks were opened throughout Iraq to enhance accessibility and enhance financial inclusion, while observers explained that the citizen must give these banks an opportunity to achieve economic growth in the country, while others attributed the lack of this confidence to weakness. The scarcity of banking services made them unable to attract citizens and merchants, in addition to the high interest rates on loans and advances.
Support banks
While the majority of banks in Iraq represent 90.5% (67 out of 74 banks) of the total number of banks. It is owned by the private sector and also owns the capital of the banking sector in Iraq.
Banking expert Saif Jawad Al-Halafi confirms, “One of the foundations of banking is banking comprehensiveness in diversifying the banking services provided to the public, and that the bank does not depend in making profits on a banking operation that it monopolizes as a result of the availability of external regional factors affecting Iraq’s foreign trade movement.” Noting that, “The investor has the right to reap profits, but our banks also have the right, even if they are marred by some wrong banking behavior for a certain period, they have the right to be included with everyone in enjoying all the banking services available in the Iraqi banking arena and in foreign trade, from opening credits or transfers.” "External".
Maintaining the banking sector
Al-Halafi explains in an exclusive interview with Al-Mada that “all Iraqi banks must be supported without exception, whether they are fully owned by Iraqis or there are foreign contributions participating in Iraqi capital.” Pointing out, “There is a crowd of depositors and investors in these banks, and the government must provide all full support to all of them because one of the basics of the Iraqi national security standard, and one of the most important points, is to maintain the strength of the banking sector without being subjected to pressures or tremors that overthrow some.” Banks, because you will affect the rest of the Iraqi banks as a whole.”
Al-Halafi continues, “The journey of establishing Iraqi banks and the Baghdad stock market is an arduous journey, the journey of which began with the late Hassan al-Najafi, so we must support our banks, whether that is with constructive criticism or correction.” Stating, “What is sad is that the Iraqi banking sector is older than all neighboring countries, and for this reason we never allow our banks to let us down because they are our security and the future of Iraqi foreign trade, and they have the right to contribute to all banking and economic activities without exception, especially in the upcoming Al-Faw port project.” And also the path of development.
risk
While most Iraqis avoid crediting their assets to traditional commercial banks because of their doubts and the political differences that arise from time to time, in addition to the fact that there are those who have religious reservations.
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, stated that “the vision of the government curriculum is moving towards implementation with consistent steps, all of which lead towards successive reform applications and according to a systematic and comprehensive structure that addresses the details of the national economy and according to the priorities drawn up from the beginning.” Pointing out, “It is known that the contribution of government sectors to the country’s gross domestic product is about 63%, as the Iraqi economy is the fourth economy in the world in terms of the government sector’s dominance in generating gross domestic product.”
Saleh added in an interview with Al Mada, “Economic reform inevitably begins with the government economy, which has the greatest contribution to the growth of the country’s national income.” Noting that, “With a closer look, the reform priorities started today from the government finance sector, and we mean government banking activity, which currently dominates 85% of banking operations in the country, but operates with capital or ownership rights that constitute only 22% of the total banking capital.” In the country, which made it restricted in the development of general economic activity and the development of the market economy, and since finance is an activity that precedes real productive activity in terms of importance and logic, Prime Minister Muhammad Shiaa Al-Sudani adopted a scientific and practical approach by moving towards reforming the government commercial banking system.
Achieving financial inclusion
The lack of experience, lack of services, and lack of banking culture led to a collective alienation from the entire banking sector, which hindered the development of this important system in the country.
As Saleh returns to update (Al-Mada), that “to begin with, one of the largest international companies specialized in reform studies and financial, accounting and administrative auditing was commissioned to prepare an accurate assessment of the reality of government banks in order to achieve comprehensive reform processes for the government banking system itself, and at the forefront of that is Generating a government commercial bank that directs directly towards the market economy and financing trade and investment, achieving financial inclusion, enhancing the levels of credit granted to the market, and introducing advanced technologies, financial applications and payment systems into this new banking system that will work on broad foundations of banking governance, compliance and driving growth and development rates. Sustainable economic growth, in addition to adopting the necessary legal applications to enhance property rights and raise their capital to record levels in accordance with the principles of banking (Bazal) that are applied globally.” He added, "Also, providing mechanisms for its openness and integration with the global banking market. It is no secret that the other and important aspect of government banking reform will undoubtedly lead to the birth of banking specialized in government financial operations, exercising exclusively banking functions related to government operations, and at the same time helping in the development of treasury account mechanisms." The unified TSA is the account that gives public finance the real-time ability to know the country’s government cash flows with high efficiency.”
He concludes his speech by saying, “The reform processes will also include, in the stages of their work, specialized banks such as the Industrial, Agricultural, and Real Estate Bank, as they will operate in the future as a development bank, in which property rights will be strengthened by making them a profitable and strong public shareholding company that contributes to financing private investments in economic development through grants.” Flexibility and adequacy in granting credit for productive investment operations, with a view consistent with the targeted growth rates in gross domestic product, which is indicated today by the National Development Plan 2024-2028, and future national development plans.”
It is noteworthy that Iraq includes 72 registered banks, including 38 banks participating in the auction for selling American currency at the Central Bank. However, the US sanctions that recently affected 14 banks, and other banks that were subject to similar sanctions months ago, led to the number of banks participating in the The currency auction is now being sold by only 18 banks.
The Iraqi Islamic Bank announces an increase in its capital to 300 billion dinars
Today, Saturday, the Iraqi Islamic Bank announced the company's capital to 300 billion dinars, while deciding to open two branches in Karbala and the Ministry of Interior.
The Iraqi Islamic Bank stated, in a statement received by Al-Iqtisad News, that “the General Assembly held its meeting at the Hunting Club in Baghdad, and the meeting included several outcomes, including discussing the Board of Directors’ report, the auditor’s report, and the final accounts for the year 2023, and approving them unanimously.”
He pointed out, “Discussing and approving the report of the Audit Committee, in addition to discussing and approving the report of the bank’s Sharia Board, as well as discussing the dividend for the year 2023, and the General Assembly decided unanimously to rotate the profits, amounting to 72 billion and 845 million dinars, into the accumulated surplus.”
He added, "The General Assembly unanimously decided to reserve an amount of one billion and 148 million dinars from the accumulated surplus to establish the Karbala branch, as well as to reserve an amount of one billion and 300 million dinars to establish a branch in the Ministry of Interior."
He stressed, "The General Assembly unanimously decided to increase the company's capital from 250 billion to 300 billion dinars according to the following details:
A - Increasing the company's capital by 68 billion and 345 million dinars in accordance with Article 55/Second (Capitalization)
B - Increasing the company's capital by 6 billion." And 654 million dinars from the expansion reserve in accordance with Article 55/Third (Capitalization).
He pointed out that “the Chairman and members of the Board of Directors were unanimously discharged and rewarded,” noting that “the General Assembly unanimously approved the participation of the Jordanian Safwa Islamic Bank in the amount of 40 billion dinars, as well as the bank’s contribution to establishing a digital bank at a rate of 30%.”
Al-Awadi: A government decision to provide sovereign guarantees and guarantees to encourage the investment process
On Friday, Iraqi government spokesman Bassem Al-Awadi revealed that the government had issued a decision that would achieve a leap in the investment sector that includes sovereign guarantees and guarantees for investors. While he explained the details, he touched on the contents of government work supporting the movement of Iraqi capital through the private sector and the entry of foreign funds in support of the investment process.
Al-Awadi said, in a statement reported by the official news agency, and seen by Al-Iqtisad News, that “government work in all sectors is clearly visible, and starting from the 2023 budget, more than 20 trillion dinars were spent on the investment budget and the great investment movement in Iraq.”
He added, "The government has sought throughout its period of assuming responsibility during a year and a half until now to establish stability in Iraq, and this factor is important for moving the wheel of investment in Iraq, as it has a political, security, economic, and financial dimension, and wherever there is stability, there is an encouraging environment for investment."
He continued, "It is known that capital is always looking for a quiet place and positive hotspots in which to grow and avoid hotbeds of conflict or tense areas that are believed in the end to not provide very large financial returns," noting, "The government sought to secure the situation inside Iraq." "And give a great impression of establishing stability."
He pointed out that "the presence of investment and the movement of private sector projects means adding financial returns to the economy and job opportunities for the people of the country, and these two points were emphasized by the government program, which means adding financial streams that contribute to diversifying the economy."
Al-Awadi pointed out that, “to support this trend, a change was made in the structure and management of the Investment Authority last year, and some laws were codified with the aim of facilitating procedures, which led to the revitalization of the Iraqi private sector and the internal and external private investment sector.”
He stressed, “Last month, the government issued a decision that achieved a leap in the investment sector in which it pledged to provide sovereign guarantees and guarantees to Iraqi investors, and this is happening for the first time in the country,” noting, “This government decision is very important and very supportive of the private sector and came from the government’s conviction that setting Facilities to support investment are one of the most important points.”
Al-Awadi continued, “The sovereign guarantee and guarantee for Iraqi investors at home comes with those who agree with the government on factory and laboratory projects that the Iraqi state needs in energy, petrochemicals, and some agricultural and industrial products, as the Iraqi government provides sovereign guarantees, meaning that it agrees with investors for a period of 5 years that You buy the product, and thus the investor guarantees that the commodity he produces is insured for purchase for a period of five years, and this process is called the sovereign guarantee.”
He continued his speech, “As for the sovereign guarantee, laws have been codified for Iraqi private sector investors to facilitate the process of importing production lines from any country in the world, provided that this line is in coordination with the ministries and institutions concerned, and there is no parallel in Iraq like this line, and thus it brings the production line to inside Iraq."
He stated, “The major countries demand guarantees from businessmen or investors when they purchase production lines, and instead of the Iraqi investor going to provide financial guarantees in the billions in order to obtain the production line, the Iraqi government will provide the guarantee to those countries, and this will greatly facilitate the import of lines and the development of the reality of industry in various fields.” "It is an unprecedented step."
He added, "The government is working on all paths that support internal and external investment, by codifying laws, moving away from routine, supporting the private sector, and talking with major international companies to come to Iraq according to a work program that is supported by real facilities and decisions."
Expert: The stability of the economy is linked to the political situation
Bassem Jamil Antoine told Al-Furat News Agency, "The stability of the economy is linked to the political situation. In every country in the world, the economy is the one who controls politics, not the other way around."
He added, "Unfortunately, those who have wealth do not possess sufficient culture, and this matter requires several things, the most prominent of which are citizenship and loyalty to the country."
He continued, "There are neighboring countries that are benefiting from this matter, as they are achieving huge profits by simply multiplying numbers."
An upcoming government decision to encourage investment in Iraq
Today, Friday, Iraqi government spokesman Bassem Al-Awadi revealed that the government had issued a decision that would achieve a leap in the investment sector that includes sovereign guarantees and guarantees for investors. As he explained their details, he touched on the contents of government work supporting the movement of Iraqi capital through the private sector. The entry of foreign funds to support the investment process.
Al-Awadi said, "Government work in all sectors is clearly visible, and starting from the 2023 budget, more than 20 trillion dinars were spent on the investment budget and the great investment movement in Iraq."
He added, "The government has sought throughout its period of assuming responsibility during a year and a half until now to establish stability in Iraq, and this factor is important for moving the wheel of investment in Iraq, as it has a political, security, economic, and financial dimension, and wherever there is stability, there is an encouraging environment for investment."
He continued, "It is known that capital is always looking for a quiet place and positive hotspots in which to grow and avoid hotbeds of conflict or tense areas that are believed in the end to not provide very large financial returns," noting, "The government sought to secure the situation inside Iraq." "And give a great impression of establishing stability."
He pointed out that "the presence of investment and the movement of private sector projects means adding financial returns to the economy and job opportunities for the people of the country, and these two points were emphasized by the government program, which means adding financial streams that contribute to diversifying the economy."
Al-Awadi pointed out that, “to support this trend, a change was made in the structure and management of the Investment Authority last year, and some laws were codified with the aim of facilitating procedures, which led to the revitalization of the Iraqi private sector and the internal and external private investment sector.”
Oil clarifies the mechanism for investing grant funds and licensing contracts
Today, Friday, the Ministry of Oil clarified the mechanism for investing grant funds and licensing contracts to support the services file and establish infrastructure projects in the oil-producing governorates.
Ministry spokesman Assem Jihad said, “Oil revenues are good with the current volume of production, and they are better for us than an increase in production that leads to a reduction in revenues due to falling prices, and this is OPEC’s policy of maintaining balance.”
Jihad continued, “The grants taken from international companies or the amounts allocated in contracts for licensing rounds are used annually in coordination with the local governments of the governorates to establish a number of service projects in them, including building schools, clinics, and training workshops to develop the skills of women and youth in all matters, in addition to building... Stadiums and arenas.
Jihad warned, “The Ministry of Oil supported and continues to support hospitals for children with cancer, contributed to their construction and development, and provided them with modern medical equipment, in addition to other services and attention to infrastructure, roads, and other services to which the Ministry and oil companies contributed directly to the development of neighborhoods near or surrounding the oil fields.”
A $700 million agreement is signed between Iraq and Italy to finance these projects
Today, Saturday, the technical advisor to the Prime Minister, Muhammad Al-Daraji, announced the signing of an agreement between Iraq and Italy to finance industrial projects worth $700 million, while he confirmed the signing of memorandums of understanding to equip Iraq with (6) Italian factories for the private sector.
Al-Daraji said in an interview followed by Al-Eqtisad News, “Under the guidance of Prime Minister Muhammad Shiaa Al-Sudani, an agreement was signed between the Supreme Committee for Sovereign Guarantees and the Italian Shasa Credit Corporation on behalf of the Italian government to finance industrial projects in Iraq worth $700 million,” noting that "The agreement was signed between the Trade Bank of Iraq (TBI) and two Italian banks to finance these projects."
He added, "As part of the government's initiative to support the private sector, memorandums of understanding were also signed between Iraqi businessmen and businessmen from Italian suppliers of production lines and factories to supply 6 factories to Iraq," indicating that "these factories include glass products, medicines, slaughterhouses, poultry and egg rearing, and gas processing." The facility, an iron factory, and a pharmaceutical factory.”
Kurdistan Region elevates profile at World Investment Forum in Abu Dhabi
Marking its inaugural participation, the Kurdistan Region made a resounding debut at the prestigious forum, joining representatives from 174 countries in showcasing its investment potential.
The World Investment Forum concluded in Abu Dhabi after three days of intensive engagement, fostering collaboration among investors from diverse nations and spotlighting investment opportunities on a global scale.
Marking its inaugural participation, the Kurdistan Region made a resounding debut at the prestigious forum, joining representatives from 174 countries in showcasing its investment potential.
With a dedicated venue attracting 12,000 investors, companies, and entrepreneurs, Kurdistan seized the opportunity to spotlight its burgeoning investment landscape.
The Chairman of the Kurdistan Board of Investment seized the occasion to engage in high-level discussions with counterparts from participating countries and prominent investors, underscoring the region's commitment to fostering a conducive investment climate.
Mohammed Shukri, Chairman of the Kurdistan Board of Investment, emphasized the need for prospective investors to witness firsthand the wealth of opportunities awaiting them in the Kurdistan Region.
Against the backdrop of global economic dynamics, the summit served as a platform for leveraging innovative strategies to bolster investment prospects in investor-friendly jurisdictions worldwide.
Bilal al-Hammouri, Director of Promotion at the Ministry of Investment, highlighted the forum's pivotal role in facilitating knowledge exchange and fostering collaboration on investment and development initiatives.
"Each year, the summit tackles pressing topics pertinent to investment and development, offering a forum for the exchange of ideas and insights," he remarked.
Central to the discussions was the imperative of attracting foreign investment to fuel economic growth and diversification.
While the Kurdistan Region has made significant strides in enhancing its foreign investment landscape, boasting partnerships with 15 countries totaling $10 billion in capital, opportunities abound for further expansion across diverse sectors.
Qais al-Khazali: Withdrawal of occupying forces is not easy
The Secretary-General of the Asa'ib Ahl al-Haq Movement Qais al-Khazali emphasized, on Friday, that the withdrawal of the "occupier" (US forces) is not an easy matter.
This statement came during a dialogue at the central political forum of "Al-Sadiqoun" bloc, affiliated with Asa'ib Ahl al-Haq, on X, according to Al-Ahd channel affiliated with the Movement.
Al-Khazali clarified that "the withdrawal of the occupier requires a popular and political rejection," affirming that "popular stances and resistance factions reject the presence of foreign forces on Iraqi soil."
He pointed out that "the Iraqi position is strong, patriotic, and capable of imposing its will and expelling foreign forces," noting that "the government's position is non-negotiable and is based on the technical basis for the withdrawal of foreign forces."
Al-Khazali further stated that "the Iraqi government is keen for the timing of the withdrawal of US forces to be based on technical grounds."
He indicated that "the resistance factions and their operations have sent clear messages to expel the occupier," expecting that "the timing of the withdrawal of US forces will not be prolonged for months, and the government is awaiting the opinion of military leaders."
At present, Iraqi-US relations are relatively calm, with a decrease in attacks previously targeting the bases and camps where US forces are stationed by resistance factions.
This comes at a time when discussions are underway regarding the termination of the Global Coalition's mission, according to the message mentioned by Prime Minister Mohammed Shia Al-Sudani in his recent press conference, stating that he received it from the US administration.
Despite numerous attacks and several US responses, including the killing of a senior leader in Al-Nujaba Movement in Baghdad on January 5th, Al-Sudani announced that the Coalition had become a factor of instability in the region, declaring the start of talks to end its presence in Iraq.
It includes 29 projects.. Iraq launches two licensing rounds for oil and gas fields
The ceremony of the fifth supplementary licensing round and the sixth round, for oil and gas fields, was launched in the presence and patronage of Prime Minister Muhammad Shiaa Al-Sudani.
The tour includes 29 projects for oil and gas fields and exploration blocks, distributed among 12 Iraqi governorates.
The activities included competition between the companies applying for the projects attached to the fifth licensing round and the sixth licensing round, which include oil and gas fields.
MasterCard for rent”..a phenomenon that “sabotages” the idea of electronic payment!!
Driving around in his empty car, carrying several MasterCard cards with him, Ali Al-Shammari works on the approaches to gas stations in the Dora, Bayaa, Mahdia and Saydia areas. The goal is to search for those who need his services in a phenomenon that seemed new and emerged with the announcement of the adoption of electronic payment at filling stations.
Al-Shammari told the Iraq Observer Agency that he “targets people who do not have MasterCard cards and want to fuel their cars with gasoline. He gives them one of his cards loaded with money to pay from it, then recovers from them the amount they paid in the form of cash, along with the card rental fees.”
He added, “Many people do not have cards, due to the procedures of some banks, or some of them do not want to issue a card at all, and this is a job opportunity for me, in this field, and the matter is of course legal, and there is no violation in this matter.”
Things have been moving in Iraq for several months to completely digitize payments, especially in filling stations and some other service departments. The government also recently announced the entry of other departments, such as traffic departments to pay fines, and some courts, as well as private institutions such as schools and others.
The dilemma of giving up cash!!
Despite this trend, many individuals are still wary of the possibility of giving up cash, and have become faced with a dilemma in doing so, due to weak confidence, or the absence of financial culture, with weak awareness campaigns regarding the use of electronic cards, which requires - according to two stakeholders - work. Seriously about this matter, ensuring the wider spread of payment cards in society and facilitating the procedures for issuing them and opening bank accounts.
However, an official in the Ministry of Oil said, “Electronic payment has turned into a general culture, little by little. As for the entry of some individuals into the field of renting their cards, this is a story that the Ministry is not concerned with, and the concerned authorities must actually intervene, because it neglects the transparency targeted by these cards.” “.
The official, who refused to reveal his name, added to the “Iraq Observer” agency, “There is a noticeable response by citizens towards electronic payment, and a clear demand for this type of payment, and if there are some negative or incorrect cases, this is the responsibility of the concerned authorities, and it is not possible to generalize.” Over the entire experience.”
US Deputy Secretary of State for Energy Affairs in Iraq soon
A source in the Kurdistan government reported, today, Saturday (May 11, 2024), an expected visit by the US Deputy Secretary of State for Energy Affairs, Kimberly Harington, to Iraq and the Kurdistan region.
The source said in an interview with "Baghdad Today", "The US Deputy Secretary of State for Energy Affairs, Kimberly Harington, will visit Iraq and the Kurdistan region to discuss the Chamchamal natural gas file."
Last week, as part of his meetings in Washington, Bafel Jalal Talabani, President of the Patriotic Union of Kurdistan, met with Kimberly Harrington, US Deputy Assistant Secretary of State for Energy Resources.
The Real Estate Bank requests new financing from the Central Bank of Iraq
The Real Estate Bank of Iraq sent an official letter to the Central Bank of Iraq requesting new financing for a new real estate initiative aimed at helping citizens buy homes.
The letter, signed by the bank’s general manager, Abbas Shihab Ahmed, stated that the bank faces major challenges in accepting, promoting, and granting the initiative’s loans to citizens due to the lack of new funds since November 2023.
The letter indicated that the bank has implemented many procedures based on the directives of the Governor of the Central Bank of Iraq to prepare the required statistics to show the amounts disbursed and the amounts required and in accordance with the approvals of the Supreme Committee for Loans.
The letter stated that the bank had paid the recoveries of the initiative's loans to the Central Bank of Iraq, and requested the bank to settle the bank's account according to these amounts.
The bank also asked the Central Bank to grant it a three-year grace period after implementing the bank account settlement, and to authorize it to re-grant the initiative loans from the funds recovered during the aforementioned period.
The Real Estate Bank believes that the new real estate initiative will achieve many benefits, including:
Achieving social benefits for poor and middle class citizens.
Contributing to solving the housing crisis.
Stimulating the national economy and creating job opportunities.
Activating local factories as a result of creating new residential units in investment complexes.
Al-Sudani: Dozens of international companies compete to invest wealth in Iraq
On Saturday, Prime Minister Muhammad Shiaa Al-Sudani sponsored the ceremony of announcing licenses for the fifth supplementary round and the entire sixth round, which includes a total of 29 projects for oil and gas fields and exploratory blocks, distributed among 12 governorates, as these strategic projects will contribute to increasing investments in those governorates, which will help... Improving its economic and service reality.
Iraq expects to obtain more than 3,459 million standard cubic feet per day of gas, and more than one million barrels of oil per day, through these two rounds.
In a speech he delivered during the ceremony, according to a statement by his media office, Al-Sudani welcomed representatives of Arab and foreign companies, praising the efforts made by the Ministry of Oil, which is the beginning of greater efforts and opportunities that will be reflected in every aspect of our national economy.
He also expressed his appreciation for the efforts made by the relevant agencies and ministries, which resulted in creating the appropriate environment for launching these projects.
The Prime Minister referred to the government program that devoted a wide scope to the government’s vision of achieving the slogan (towards optimal investment of oil and gas), by adopting a new policy in investing oil wealth. He also stressed the commitment of the government and all state institutions to work away from bureaucracy and complex routine, in order to Facilitating the business and investment environment.
The statement summarized the highlights of the Prime Minister’s speech:
- The expected revenues must be used to advance the rest of the economic fields that our people are waiting for.
- Iraq is a difficult number in the world's energy and oil wealth equation.
- Our goal is to invest this wealth, starting with ending the burning of associated gas, which will stop within 3-5 years, and stopping the devastating environmental effects of this process.
- We are heading to invest our oil production and transform it into petrochemical manufacturing industries.
- Our goal is to convert 40% of oil production over the next 10 years into oil products.
- Free gas investment, which is being implemented through the sixth round, is the most important investment for this idle wealth.
- We are proceeding with integrated oil projects, which have been announced, and are being discussed with companies regarding them.
- The establishment of a fixed gas platform in the Grand Al-Faw Port, together with the development road project, which includes an oil and gas transportation line, will establish a new situation for Iraq in the operating energy market.
- The Ministry of Oil worked to prepare for these tours, through workshops and meetings with consultants.
- We have dozens of international companies competing to invest wealth, and this is evidence of Iraq's increasing interconnectedness with the global economy.
- We have initiated real reforms in tax, customs, and banking reform, to complete the ideal investment environment for the work of oil companies.
- We direct the Ministry of Oil to formulate this policy and rush strongly without hesitation to develop optimal plans for investing wealth, and you will find full support from the government and the House of Representatives.
- We will not pay attention to obstructive voices, and we stress the Ministry of Oil to take confident and expressive measures.
- We call on investing companies to begin their tasks as soon as possible.
- We were keen to distribute the projects in more than one governorate. To achieve the broadest development in all governorates of Iraq.
A legal expert confirms the constitutionality of Parliament's decision to extend its legislative term
Constitutional law expert Ali Al-Tamimi confirmed, on Saturday, the constitutionality of the House of Representatives’ decision to extend its legislative term, indicating that the Constitution permitted Parliament to take such a decision according to its estimates, as permitted by Article 59 of the Constitution.
Al-Tamimi told Al-Maalouma, “The decision to extend the legislative term of the House of Representatives for an additional month is constitutional because it is based on Article 59 of the Constitution, which allows 50 representatives to submit a request to extend the legislative term because there are estimates that permit the extension, provided that it is presented to the House of Representatives and voted on by half plus one.” of those present after the quorum for the session is complete.”
He added, "Article 57 allows the President of the Republic, the Prime Minister, and the Speaker of the House of Representatives to submit a request to extend the legislative term due to the presence of governing necessities that require extending the work of the House of Representatives."
Last Thursday, the House of Representatives decided to extend the current legislative term for a period of 30 days, while the Parliamentary Finance Committee had previously expected to extend the legislative term with the imminent arrival of the budget schedules to the House of Representatives. There is also a political movement underway to elect a new speaker of the House of Representatives, which requires the continuation of Parliament’s work.
Iraqi parliament extends legislative term by 30 days
The Iraqi parliament on Thursday extended its first legislative term for 2024 for 30 days, with top priorities being a vote on a new parliamentary speaker and extending the electoral commission’s term for another six months.
The media directorate of the Iraqi parliament announced that the legislature decided to extend the first legislative term of 2024 by 30 days. The parliament was originally scheduled to begin its break on Friday.
Following the extension, the legislature is expected to address several matters, including the election of a new parliamentary speaker.
The parliament currently has no leader. The Federal Supreme Court on November 14 ruled to revoke Mohammed al-Halbousi’s parliamentary membership and end his tenure as speaker. The Sunni strongman was accused of forging the resignation of another Sunni lawmaker in 2022 by changing the date on the document.
The legislature previously attempted to vote on the new speaker on January 13, but after repeated delays no candidate was able to obtain an absolute majority, pushing the vote into a second round which was never held. Taqadum’s Shaalan al-Karim and Sunni Sovereignty bloc’s Salem al-Issawi received the highest number of votes in the first round.
Under Iraq’s sectarian power-sharing system, the post of the parliament speaker is always reserved for the Sunnis, the prime minister position for the Shiites, and the presidency for the Kurds.
The Coordination Framework, the largest bloc in the Iraqi parliament, on Monday called on the Sunni blocs in the parliament to fill the vacant position of the speaker within a week.
"The Coordination Framework called on the esteemed Sunni blocs to take responsibility regarding the vacancy of this key position in the political system within a week," read a statement from the pro-Iran Coordination Framework.
Another matter for the parliament to address is to vote on an amendment to extend the term of the Independent High Electoral Commission (IHEC) by another six months. The current term of the commission ends on July 7.
The Iraqi parliament conducted the first reading of the amendment on Thursday.
The extension of the commission’s term precedes the Kurdistan Region’s long-overdue parliamentary election, which is likely to face further delays.
The Kurdistan Region is scheduled to hold parliamentary elections on June 10, after nearly two years of delays. The possibility of a further delay has been reported in recent weeks after the ruling Kurdistan Democratic Party (KDP) announced that it would not be participating in protest over rulings from Iraq’s top court that the party deemed detrimental to the Region’s political entity.
IHEC temporarily suspended the preparations for Kurdistan Region’s elections pending a ruling on a lawsuit filed by the Region’s Prime Minister Masrour Barzani against the division of seats for the constituencies at the Iraqi Federal Supreme Court, the body’s spokesperson told Rudaw on Wednesday.
The court ruled to temporarily suspend working with Article 2 of the candidate registration and approval system for the Kurdistan Region’s elections until a ruling is made on the lawsuit by Barzani.
A source reveals to "Baghdad Today" the date of Ibrahim Raisi's visit to Iraq
A source close to the Iranian presidency reported today, Saturday (May 11, 2024), that President Ibrahim Raisi is expected to visit the Iraqi capital, Baghdad, late this month or early next June.
The source, on condition of anonymity, told Baghdad Today that, “According to the initial agreement between Tehran and Baghdad, Iranian President Ibrahim Raisi will visit Iraq at the end of this month or the beginning of next June.”
According to the source, "Raisi will visit Baghdad to meet with senior Iraqi officials, and then he will go to visit the holy shrines in Najaf and Karbala."
He continued: "After completing his schedule in Baghdad and visiting the holy shrines, he will head to Erbil, the capital of the Kurdistan region in northern Iraq, to meet with Kurdish officials."
When asked whether this was a final date for the visit, the Iranian source replied, “According to the initial agreement, yes, and it is unlikely that anything new will happen that will change this date.”
If Ibrahim Raisi visits Iraq, it will be his first visit since assuming the position of President of the Islamic Republic of Iran on August 21, 2021.
Raisi visited Iraq when he assumed the position of head of the Iranian judiciary on February 8, 2021, at the invitation of his Iraqi counterpart, Faiq Zaidan. Raisi met at the time with senior Iraqi officials, including former Prime Minister Mustafa Al-Kadhimi and the President of the Republic, Barham Salih, as well as other officials from various powers. Political.
The President of the Republic pledges to resolve the differences between the governments of the center and the region
A statement by the regional government said, "This came during a meeting between Nechirvan Barzani, President of the Kurdistan Region, with Abdul Latif Rashid, President of the Federal Republic of Iraq."
He added, "During the meeting, which was attended by the two vice presidents and a number of ministers and officials in the Kurdistan region, the situation in Iraq and the region in general was discussed, with an emphasis on the importance of protecting security and stability and continuing efforts and dialogue to resolve problems and differences between Erbil and Baghdad."
Rashid indicated, "It will help consolidate the relations of the federal government and the Kurdistan Regional Government and resolve differences between them, and will work to solve the problems of Kurdistan Region farmers with the Iraqi federal government."
For his part, Barzani stressed "the importance of the efforts being made to protect safety and stability and overcome problems and differences between Erbil and Baghdad," reviewing "an overview of his recent visit to the Islamic Republic of Iran and the relations of Iraq and the Kurdistan region with Iran."
The statement continued, "The relations of Iraq and the Kurdistan Region with neighboring countries, the region and the world formed another focus of the meeting."
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