The government sees clear indicators: the parallel dollar will be equal to the official one
Today, Saturday (May 25, 2024), Mazhar Muhammad Saleh, the economic advisor to the Prime Minister, confirmed that the dollar exchange rate in the parallel market is close to matching the official price, in conjunction with the increased capacity of banks to meet requirements.
The video for this blog post is below here:
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.
Economic: Protecting banks and exchange companies from sanctions is the most important file for the Central Bank
Economic researcher, Ahmed Abd Rabbo, confirmed today, Wednesday, that the Central Bank has recently begun some reforms and good steps, but the big dilemma that the Central Bank is supposed to work on remains, which is arranging the conditions of banks and exchange companies with the American side and protecting this sector from sanctions.
Abd Rabbo told “The Central Bank recently began some reforms, and these reforms were reflected in the monetary situation in general, as there is a decline in the dollar exchange rate, although it is considered a worrying decline. At any moment, it may return to rising again.”
He added, “There are good steps by the Central Bank, but the most important file remains arranging the conditions of the banking sector and exchange companies with the American side, and arranging the papers of banks and exchange companies before the American side and protecting this sector from sanctions is the big dilemma that the Central Bank is supposed to work on.”
Budget 2024.. No new appointments, and this is the fate of the salary scale
The Parliamentary Finance Committee confirmed today, Friday, that the budget schedules for the year 2024 do not include salary scales or new appointments.
Committee member Mustafa Al-Karaawi said, “The 2024 budget schedules sent by the government do not include the new salary scale,” noting that “the scale is supposed to be sent as a law isolated from the budget and is exclusively within the government’s powers, and Parliament does not have any powers to increase employees’ salaries.”
Al-Karaawi stated, “The budget schedules sent do not include launching any new appointments, especially in light of the increase in expenditures in addition to the high percentage of the financial deficit. Therefore, the government resorted to activating the private sector to create job opportunities.”
A parliamentary source reported, the day before yesterday, Wednesday, that the Parliamentary Finance Committee held its first meeting after receiving the current year’s budget tables.
The dollar is leaking”... Central Bank sales in numbers and an expert raises several questions
An economic expert raised several questions regarding the Central Bank of Iraq’s dollar sales and their comparison with previous years.
Manar Al-Obaidi said in a statement, a copy of which was received by {Al-Furat News}, “By reviewing the Central Bank’s sales of the dollar, both cash and remittances, it is noted that the bank’s sales of foreign currency cash to the local market were not greatly affected in 2023, which is the year in which the crisis of American restrictions on dollar sales began.”
He added, "According to Central Bank data on foreign currency sales to local markets, the value of dollar cash sales in 2023, the year of the dollar crisis, amounted to 8.4 billion US dollars, noting that the average foreign currency sales of the dollar from 2006 until 2022 amounted to 6.1 billion dollars."
He pointed out that “the Central Bank’s sales of cash are higher than the average sales of the Central Bank over all the past years, and the ratio of cash sales to total foreign currency sales in 2023 was 25%, while the average ratio of cash sales to total foreign currency sales was over Extension of years (2006-2022) 18.7%.
Al-Obaidi stated, “What actually decreased and was affected were the Central Bank’s sales of dollars through the remittance window, as the value of the Central Bank’s sales through the remittance window for the past year amounted to 25 billion dollars, while the average foreign exchange sales of dollars from 2006 until 2022 was 31 billion US dollars and amounted to The highest value of the Central Bank’s sales from the remittance window in 2019, amounting to 45 billion dollars.”
He explained, "From these numbers, it is clear that what affects the exchange rate in the local market is the decrease or increase in the central bank's sales of foreign currency through the remittance window, and not cash sales, which were not greatly affected over the previous years."
The economic expert pointed out, “Based on these numbers, two questions arise. The first is: If the majority of the Central Bank’s sales of foreign currency over the years from 2006 to 2023 were through the remittance window, at a rate of 84% of the Central Bank’s total sales, then what is the source of foreign currency?” Which was available in the local markets? Why was the parallel exchange rate affected by the remittance sales window if the demand was to cover the internal need, given that the remittance window sales deliver hard currency outside Iraq?
He said, "The sales of the Central Bank through the cash window from 2006 until 2023 amounted to more than 113 billion US dollars, and where was this mass of hard currency consumed? Was it all consumed outside Iraq to cover the travel expenses of Iraqis? Or was it done to cover specific types of merchants that were not Can you enter the external transfer window, or was it used for other purposes?
Al-Obaidi continued, "These data and questions require a deep analysis to know what the foreign currency cycle is in Iraq and who is responsible for the continued demand for it in the local market despite the high remittance window. Does Iraq really need cash sales of the dollar amounting to $9 billion annually, and what are the reasons for this demand? Is it really to cover foreign trade with countries that are prohibited from dealing with?
The management of the Central Bank plans to gradually cancel the dollar auction during the year 2024, leading to its complete cancellation by the end of the year, and to maintain it for audit and statistical purposes, in an effort to enable Iraqi banks to establish and establish solid banking relationships with the global and regional banking sector in order to achieve the sobriety of the Iraqi banking sector and full commitment. According to international standards and requirements.
Iraq relies on the platform for selling currency directly to local banks and companies, which was previously known as the daily dollar auction, as one of the mechanisms for preserving the value of the Iraqi dinar and combating speculative operations in the parallel market.
FATF evaluation...a global testimony and recognition of Iraq's commitment and significant economic gains
Since assuming the position of Prime Minister, the Iraqi government headed by Muhammad Shiaa Al-Sudani has moved towards addressing the problems that accompany the economic sector in Iraq, and comprehensive compliance with international standards in combating money laundering and terrorist financing.
As a result of the government’s move and the efforts made by it, the Financial Action Task Force for the Middle East and North Africa region adopted Iraq’s report on combating money laundering and terrorist financing, which reflects positively on Iraq in several aspects and levels, including achieving significant economic gains, stimulating economic activities and enhancing the country’s reputation at the level. International.
Positive evaluation
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, told the Iraqi News Agency (INA): “Iraq received a positive evaluation in the recent meeting held by the Financial Action Organization for the Middle East and North Africa in the State of Bahrain, which is one of the most important international groups concerned.” In assessing the role of member countries in combating money laundering and terrorist funds.
Saleh added, "The group's report showed significant positive progress in Iraq's role in confronting criminal financial activities, due to the sobriety of the financial, banking, and legal systems of the Republic of Iraq in confronting criminal financial activities."
Certificate and global recognition
. He pointed out that the evaluation comes as a testimony and broad positive global recognition of our country’s commitment to international standards in combating criminal financial activities related to money laundering and terrorist funds, and that such an evaluation will enhance our country’s reputation and provide factors of confidence in the financial and banking system of Iraq.
He continued: “It is also no secret that such an evaluation will inevitably help attract foreign investments, and at the same time enhance the business environment in our country, which will attract more foreign investments to work in our country, as investors are reassured that our country has a safe and transparent financial system.
He added: “It is also no secret that such an assessment that Iraq obtained in the field of combating money laundering and terrorist funds places our country in a solid international position, and that it must always maintain its position on the list of cooperating countries, i.e. (the white list), and spare our country the dangers of external positions.” negatively affects our country’s international economic, financial and banking relations.”
He explained, “Based on the above, the mutual evaluation report by the Financial Action Organization for the Middle East and North Africa is one of the strategic tools that help in continuing to improve and maintain the financial system of Iraq, and maintain Our country’s reputation internationally, as well as attracting investments and avoiding negative external situations, leads to achieving broader economic and financial stability for Iraq in a sustainable manner.”
Strengthening the value of the dinar.
For his part, the researcher and academic in economic affairs, Ahmed Saddam, told the Iraqi News Agency (INA): “One of the most important results of Iraq’s continued commitment to combating money laundering is that this commitment will contribute to reducing the financial waste represented by the leakage of the dollar.” Outside Iraq, it will also constitute an essential factor in achieving stability in the dollar exchange rate, even if relatively, in other words, enhancing the value of the local currency.”
Saddam added, “Most important of all is that this commitment results in Iraq not being included in the gray list that represents high-risk countries. In other words, Iraq’s commitment to the recommendations reduces the level of economic risks, and this is an important point to be taken into consideration by foreign companies that wish to invest.” in Iraq".
Stimulating economic activities.
He pointed out that "this commitment will contribute to reducing the financing of armed groups and terrorism, and this will push towards achieving stability and gradually stimulating various economic activities with the combination of other positive factors."
He continued his speech: "Finally, we can say that this commitment reflects the success of the current government in this aspect, and it constitutes an important part of the institutional reforms necessary to achieve economic stability on the ground."
The correct path
. In turn, the President of Al-Furat Al-Awsat Technical University, Hassan Latif Kadhim, told the Iraqi News Agency (INA): “The recent statement of the Financial Action Task Force Organization stated that Iraq is committed to recommendations in the field of combating money laundering and terrorist financing, and this indicates that the country is in "The right path has been taken, and serious steps have been taken to improve the financial and legal system in accordance with international standards related to combating corruption and money laundering."
Kazem noted, “The expected gains in this regard are improving the international classification through compliance with the recommendations, and making Iraq more attractive to foreign investments, as well as more international cooperation with Iraq in the future, which could facilitate trade operations with banks and financial institutions through... Reducing the risks associated with financial transactions due to Iraq’s commitment to anti-money laundering standards.”
Strengthening Iraq's international reputation
He pointed out that "this could enhance Iraq's international reputation through commitment and high responsibility to combat corruption and financial crime and everything related to these practices," stressing that "this commitment would enhance confidence in the financial and local system and enhance the official use of the banking system." "It reduces the scope of the informal economy."
He concluded by saying: "In general, it is possible to say: Compliance with the recommendations of the International Financial Action Committee represents an important step in the direction of enhancing financial and economic stability and opening new horizons for development and greater confidence in Iraq and future openness."
Adoption of Iraq's report
The Anti-Money Laundering and Combating the Financing of Terrorism Council announced, last Wednesday, the adoption by the Financial Action Task Force for the Middle East and North Africa of Iraq's report on combating money laundering and the financing of terrorism.
A statement by the Council, received by the Iraqi News Agency (INA), stated: “The Middle East and North Africa Financial Action Task Force (MENAFATF), in its general meeting held in the Kingdom of Bahrain for the period from May 19-23, 2024, adopted the Mutual Evaluation Report for the Republic of Iraq, which “It reflects its great commitment to applying international standards to combat money laundering and terrorist financing, and the report reflects the strong system in Iraq to combat money laundering and terrorist financing, and the important efforts made by the state to combat these crimes in accordance with international standards in this regard.”
The statement added, "The report focuses on understanding the risks of money laundering and terrorist financing, and the effectiveness of implementing measures to combat these crimes, including international cooperation, confiscation of criminal proceeds, and investigation and prosecution procedures."
He continued: “On this occasion, we extend our sincere thanks to Prime Minister Muhammad Shiaa Al-Sudani and the Chairman of the Supreme Judicial Council, Faiq Zaidan, for the support they provided for the evaluation process. We also extend our thanks to the office and members of the Anti-Money Laundering and Terrorist Financing Council and all judicial and governmental bodies and central bank formations that contributed and worked.” Over the past two years, we have provided the evaluation requirements in a way that reflects the real reality of effective judicial and government procedures in developing the system to combat money laundering and terrorist financing.”
Oil expert: OPEC reports pulled the rug from under the Americans
Oil expert Hamza Al-Jawahiri described on Thursday that OPEC's decision to base oil pricing on the reports of the organization's study centers has pulled the rug from under the Americans and the major consuming countries, indicating that the decision will protect the OPEC countries from sudden price collapses.
Al-Jawahiri told Al-Maalouma, “Before OPEC Plus made its decision to adopt oil price pricing, the United States of America was the one controlling oil prices in the local market according to its economic and security interests and imposing its will as required by its interests in the region and the world.”
He added, "The recent decision taken by OPEC Plus to base oil pricing on the reports of the organization's study centers has pulled the rug from under the dominance of the United States, the major oil-consuming countries."
It is noteworthy that the Organization of Petroleum Producing Countries and its allies, during their meeting more than a month ago, adopted a decision to determine oil prices and production quantities based on the results of the organization’s study centers in order to create a state of price stability in a way that guarantees the rights of oil-producing and oil-consuming countries.
The government is trying to calm the provinces: We will add other amounts to your budgets
The Iraqi government is trying to remedy the crisis that has begun to worsen through strongly worded statements from local governments warning against compromising their financial allocations and attacking the reduction of budgets for the development of governorates and regions, after circulating a table that showed shocking numbers, compared to last year’s budget. The Ministry of Planning issued a statement in an attempt to calm the objections and said: The published numbers do not include many additional items that will contribute to raising budgets, including funds from various funds, border crossings, and programs to support the poorest and most affected areas, in addition to the presence of retained amounts from the 2023 budget that are still restricted to the governorates or the Ministry of Finance.
The Ministry pointed out that, based on the Tripartite Budget Law (2023-2025) and the Financial Management Law of 2019, the unspent amounts are recorded as deposits with the governorates or the Ministry of Finance, and local governments can spend them on projects in accordance with the mechanisms approved in this aspect, and these amounts are added to the allocations. The financial allocations for the governorates within the 2024 budget, noting that there are other amounts that will be allocated to the governorates, coming from the revenues of the border crossings, as most of the governorates enjoy this advantage, with the presence of land, air or sea ports in them, as well as the financial allocations allocated to the funds with their various specializations, which are reconstruction funds. Dhi Qar and Sinjar, the affected areas, and support for the poorest areas, amounting to about (2) trillion dinars.
Iraq Central Bank says regulated dollar transactions rising
Iraq, fighting a booming currency black market, has considerably increased overseas dollar transactions through the official global SWIFT system, the Central Bank vice governor said on Monday.
With dollars dominating the country's economy, Baghdad has imposed a series of restrictions on the use of American greenbacks domestically.
At the end of 2022 the country's bankings sector also adopted the international financial messaging system known as SWIFT as part of the reforms, to help tackle money laundering and ensure respect for international sanctions.
Oil-rich Iraq has no shortage of dollars, with foreign currency reserves of more than $100 billion (92 billion euros). But experts say tax evasion, the black market and dollar smuggling to countries and entities facing United States sanctions, mainly neighbouring Iran, have increased demand for foreign currencies.
Transactions through the Central Bank electronic platform -- which ensures compliance with SWIFT -- have considerably increased, the bank's vice governor Ammar Khalaf told AFP.
Many "foreign trade transactions are now being conducted via the platform," he said.
"At the beginning of 2023, transactions were at $50 million per day. Now, we have around $200 million, which is consistent with the size of Iraq's economy," he added.
Iraqi banks wanting to access dollar reserves held in the United States must make transfers through the electronic system. The US Federal Reserve will then examine the requests and block them if it finds them suspicious.
"We noticed that rejections have decreased recently because the banks understood international requirements" and traders know better what is needed to transfer their money, Khalaf said.
But the black market is still thriving.
The official exchange rate is fixed by the government at 1,320 dinars to the dollar. On unofficial markets the dinar has been trading at 1,470 per dollar.
Iraq has close commercial ties with Iran, which also wields considerable political influence in Baghdad where its Iraqi allies dominate parliament and back the current government.
Prime Minister Mohamed Shia al-Sudani acknowledged last year that sanctions preventing dollar transfers to Iranian banks had driven Iraqi traders to the black market.
In late November, the government announced steps to encourage importers of goods like cigarettes, cars, gold and mobile phones to use official channels to obtain dollars.
Iraqi authorities have banned more than 20 Iraqi banks from conducting dollar transactions in accordance with US regulations regarding sanctions and against money laundering.
"We are in constant contact with the American Treasury in an attempt to lift the ban," Khalaf said, hoping that talks "will yield good and positive results."
The banned banks are restricted from dealing in dollars, but they are allowed to operate local transactions.
Romanowski: The durability of the American car increases the desire of Iraqis to own it
The American ambassador to Iraq confirmed today, Thursday, that American cars are very popular in Iraq, while indicating that the durability of the American car contributes to increasing the desire of Iraqis to own it.
Romanowski said in a post on the X platform, which Mail viewed, “American cars are very popular in Iraq? Despite maintaining their strong popularity, the Iraqi market has become more diversified by importing cars from different countries .”
She added, "The durability and capacity of American cars contribute to increasing the desire to own them."
there's a video you can watch hahaha
https://twitter.com/i/status/
1793658148076884188
they kind of made a big deal about this even though this is a tiny article
NATO changes its leadership in Iraq.. The Netherlands took over the reins in the presence of Yarallah
Army training is a top priority
On Friday, May 24, 2024, the Chief of Staff of the Army, Special Forces Lieutenant General Abdul Amir Rashid Yarallah, attended the ceremony of changing the leadership of the NATO mission, with Lieutenant General Lukas Schweres (Dutch nationality) assuming leadership of the mission in Iraq, succeeding Lieutenant General Jose Aguero (Spanish nationality), In his speech, the first pledged to continue working to provide advice and training to develop the Iraqi army and support the work of its training and educational institutions.
Finance reveals the value of non-oil revenues in the 2024 budget tables
Member of the Parliamentary Finance Committee, Representative Mustafa Al-Karaawi, confirmed on Friday that non-oil revenues in the 2024 budget tables amounted to 27 trillion dinars.
Al-Karawi said in an interview with Al-Maalouma, “The Parliamentary Finance Committee held an expanded meeting after the 2024 budget schedules arrived from the Presidency of the Council, and two things were agreed upon: adopting an intensive work schedule within the committee to complete the schedules and preparing a program of meetings and hosting those concerned in order to proceed with their completion as quickly as possible.” maybe".
He added, "Oil revenues in the 2024 budget tables amounted to 27 trillion dinars, pointing out that there are a series of notes recorded by the committee that will be discussed directly with the Ministry of Finance after an expanded hosting session in the coming days."
He pointed out that "it is not possible to set a date to resolve the budget schedules, but the committee agreed to intensive work in order to resolve them as soon as possible."
The House of Representatives announced at the end of last week that it had received the 2024 budget schedules and began auditing them by the Parliamentary Finance Committee.
Report: The departure of the United Nations mission from Iraq is an important step for the Sudanese government
A report today, Friday, explained that the departure of the United Nations mission present in Iraq at the end of this month of May is a step of great importance to Iraqi sovereignty and to the government of Prime Minister Muhammad Shiaa Al-Sudani.
The report, which was published by the newspaper in English, and translated by Mail, stated, “The call to end the mission of the United Nations Assistance Mission for Iraq is part of a larger effort made by Baghdad to change the image of Iraq and direct it to an era that focuses on normal bilateral relations with other countries and international institutions.”
Renad Mansour, director of the Iraq Initiative at Chatham House, said, “The veneer of sovereignty is important for the government of Prime Minister Muhammad Shiaa al-Sudani,” noting that “Baghdad wants to show that this is not the same Iraq that witnessed a civil war, rebellions, or all of these types of conflicts that... "I have represented the country for the past few years, but this is a new chapter."
He added, "This is also why the Sudanese government hopes to renegotiate the presence of international forces present in Iraq as part of the anti-ISIS coalition."
Moreover, Baghdad believes that the presence of special UN oversight and officials reporting to the Security Council on its often embarrassing local dynamics hampers its strategy .
Other countries, which of course have their own problems, are not subject to similar reporting requirements .
Last year, Baghdad requested a strategic review of UNAMI activities as part of a one-year extension of the mission's mandate. This led to the visit of former UN official Volker Perthes to Iraq in November. He met with a wide range of actors across the country to assess the Mission's activities and future.
Al-Sudani's letter in April was a response to the strategic review's activities and conclusions. It objected to the fact that Peretz met with officials and figures from outside the Government of Iraq, including party officials and members of the Kurdistan Regional Government and civil society, and demanded a shorter timetable for the closure of the UN mission and the cessation of its activities. To be limited to non-political jobs.
Mansour pointed out that "there is a great debate about the role of the United Nations Assistance Mission for Iraq, but not everyone agrees with the government in Baghdad that the mission's political activities are no longer needed . "
The report continued, "The end of the mandate of the United Nations Assistance Mission for Iraq will not mean that Iraq is completely ending United Nations activities in the country . "
Mansour said, "This is a symbolic effort on the part of the government to present the country as a sovereign state that does not need a UN mission, nor does it need to hold a briefing to the UN Security Council every three months."
Some members of the international community have expressed their fear of ending the mission, albeit in diplomatic language.
The United States is a particularly important actor because it has the pen on Iraqi issues in the Security Council, which means it leads negotiations and drafts resolutions. This will be important in the coming weeks.
THese below here are from today
Government breakdown of 2024 budget schedules: Spending will contribute to reducing the deficit
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Saturday, that the variables of the financial tables conform to the constants of the tripartite budget, while indicating that the spending pattern will contribute to reducing the deficit.
Saleh said, “The announcement of the financial schedule variables for the year 2024 was in accordance with the constants adopted by Law No. 13 of 2023, the Federal (Tripartite) General Budget Law, especially with regard to the hypothetical deficit, which amounts to approximately 64 trillion dinars.”
He explained: “There are important trends in the management of the public budget, whether 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 accurately." “In accordance with international agreements with OPEC regarding control over 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 assessment, estimation and collection."
He pointed to "striving to impose discipline on operational expenditures and keep spending on them within acceptable minimum limits, in addition to ensuring that the efficiency of investment spending and the operation of all approved projects is increased, in order to ensure a high growth rate in the gross domestic product at a rate exceeding twice the rate of population growth, by launching the project movement." New without delay or stop.
He stressed that “the pattern of public spending, in accordance with 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 percent.” of the country's total gross domestic product.
Government advisor: Government measures to maximize revenues and reduce budget deficits
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Saturday, that the variables of the financial tables conform to the constants of the tripartite budget, while indicating that the spending pattern will contribute to reducing the deficit.
Saleh said to the Iraqi News Agency (INA): “The announcement of the variables in the financial tables for the year 2024 came in accordance with the constants adopted by Law No. 13 of 2023, the Federal (Tripartite) General Budget Law, 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, whether 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 accurately." “In accordance with international agreements with OPEC regarding control over 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 assessment, estimation and collection."
He pointed to "striving to impose discipline on operational expenditures and keep spending on them within acceptable minimum limits, in addition to ensuring that the efficiency of investment spending and the operation of all approved projects is increased, in order to ensure a high growth rate in the gross domestic product at a rate exceeding twice the rate of population growth, by launching the project movement." New without delay or stop.
He stressed that “the pattern of public spending, in accordance with 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 percent.” of the country's total gross domestic product.
this is the big news for the day it's all over they even tweeted it but no details yet
The Central Bank launches the national lending strategy in Iraq
link they probably will put out the details possibly tomorrow
On Saturday, the Central Bank of Iraq launched the national strategy for bank lending in Iraq for the period 2024-2029, while the Minister of Planning, Muhammad Tamim, confirmed that the Iraqi government has developed an economic vision represented in directing borrowing paths towards development aspects.
Today, the Central Bank organized a celebration to mark the launch of the lending strategy, which was prepared in cooperation with the German Development Agency.
The Minister of Planning said in a speech during the ceremony, “The strategy is consistent with the government’s directions, and coincides with the completion of the preparation of the five-year development plan for the same period of time, and the legalization of loans.”
Tamim added, according to a statement published by the ministry, that “the existence of a lending strategy can contribute to increasing the credit granted to the private sector by 4% of non-oil GDP, and giving special attention to small, small and medium enterprises by increasing the credit granted to them by 3%.” Of non-oil gross domestic product.
Tamim stressed, "This trend would contribute to financing more projects, and give the private sector a good space to be a real partner in achieving development goals, as well as moving forward to achieve a state of economic diversification, and thus reduce dependence on oil."
Iraq Fund for Development: We have achieved investments amounting to approximately $1.5 billion
The Iraq Fund for Development outlined three achievements it has achieved since its founding, while announcing the achievement of investments amounting to about 1.5 billion dollars.
The Executive Director of the Iraq Fund for Development, Advisor to the Prime Minister for Investment Affairs, Muhammad al-Najjar, said, “Since its establishment less than a year ago, the Fund has achieved three achievements, the first of which is: signing 17 memorandums of understanding with 17 different companies (Saudi, British, and American) to enter into... Iraq".
Al-Najjar added, "The value of the total investments achieved by these memorandums approached one and a half billion dollars," pointing out that "these imports for the first time enter Iraq, not in the field of energy, but in the field of industry, agriculture, and gas production, that is, industrial gases."
He pointed out that “the second achievement was the launch of the investment schools project, and applications were submitted to build 2,000 schools through investment, and the state rents them from investors, which saves huge amounts of money, since for the price of 100 schools we can build 1,000 schools in a much shorter period of time than was thought.” That is, school crises will be resolved as quickly as possible.”
He continued: “As for the third achievement, it represented the launch of social projects for the first time, such as building schools and so on, implemented through the private sector, and for the first time we can attract the private sector to this number and this number of investments related to the state, which is considered a fundamental change. The government and the Fund have succeeded in establishing For him, under the government of Prime Minister Muhammad Shia al-Sudani.”
He pointed out that "there is an international desire to enter the fund, but our tendency is for participation to be through companies investing in Iraq, and not directly in the fund, because the fund has the peculiarity of being financed from the general budget and subject to the laws of the Iraqi state."
He stated that "funds and companies often prefer to operate under the laws of the private sector, so we have attracted investments for companies," stressing that "the amount of investments that entered compared to the fund's capital is very large."
He concluded by saying: "We are currently working according to the rule that for every dinar we attract ten dinars, meaning that if a trillion is allocated, we try to set investment rates worth ten trillion dinars in exchange for it."
Sudanese advisor confirms the absence of external borrowings: Oil prices exceed their estimates in the tripartite budget
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Saturday, that there are no new external borrowings at all, while indicating that oil prices are still higher than their estimates in the tripartite budget.
Saleh said in a statement to Al-Rabaa that “oil prices are still higher than their estimates in the tripartite budget of $70 per barrel, with a change rate of more than 16% positive above the price approved above.”
He added, "Iraq is approaching the middle of the fiscal year while maintaining its export rates approved in the budget and managing oil production efficiently in accordance with international agreements with OPEC regarding controlling production quotas."...
another version:
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Saturday, that there are no new external borrowings at all, while indicating that oil prices are still higher than their estimates in the tripartite budget.
Saleh said in a statement to Al-Rabaa that “oil prices are still higher than their estimates in the tripartite budget of $70 per barrel, with a change rate of more than 16% positive above the price approved above.”
He added, "Iraq is approaching the middle of the fiscal year while maintaining its export rates approved in the budget and managing oil production efficiently in accordance with international agreements with OPEC regarding controlling production quotas."
He continued, "The pattern of public spending, in accordance with 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 ratio for financing the deficit, which amounts to 3% of... The country's total gross domestic product.
The Prime Minister's financial advisor confirmed that "there are no new external borrowings at all."
Iraqi Planning: More than 41 trillion dinars are available to the governorates in 2024
On Saturday, the Ministry of Planning revealed the total financial allocations and amounts available to the governorates during the current year 2024, indicating that more than 41 trillion dinars, the amount of financial amounts available, including investment allocations to the ministries.
The Ministry explained in a statement received by Shafaq News Agency, “The allocations of the Territorial Development Program and the undisbursed amounts, which amounted to the amount of the remaining funds for the year 2023, which are registered in deposits with the Ministry of Finance (6,947,433) trillion dinars, in addition to the remainder of the food security funds registered in deposits with the Ministry of Finance.” The governorates (5,824,403) trillion dinars, totaling (15,875) trillion dinars, and this amount is added to the size of the investment allocations for the governorates within the 2024 budget submitted to the House of Representatives, amounting to (3,103,158), noting that “these allocations include the regional development program and petro dollars.” Combating poverty and loans.
She added, "What was allocated to the projects of the federal ministries that are implemented in the governorates excluding the region amounted to (38,421) trillion dinars, and thus the total amounts available to the governorates reach (41,524) trillion dinars."
The Ministry continued, "Based on the above, the comparison that appeared in the media, between the regional development allocations to the governorates, and the total investment spending of the Kurdistan Region, is an incorrect comparison. Rather, the comparison should have been made between the total investment spending of the governorates coming from investment spending." for the ministries, amounting to (41,524) trillion dinars), and what has been allocated in the total investment spending for the region, amounting to (4,875) trillion dinars, confirming the government’s commitment to the percentage allocated to the region, in all sections of spending.”
The Ministry pointed out that, based on the Tripartite Budget Law (2023-2025) and the Financial Management Law of 2019, unspent amounts are recorded as deposits with the governorates or the Ministry of Finance, and local governments can spend them on projects in accordance with the mechanisms approved in this aspect, and these amounts are added to the allocations. The financial allocations for the governorates within the 2024 budget, noting that there are other amounts that will be allocated to the governorates, coming from the revenues of the border crossings, as most of the governorates enjoy this advantage, with the presence of land, air or sea ports in them, as well as the financial allocations allocated to the funds with their various specializations, which are reconstruction funds. Dhi Qar, Sinjar, and the affected areas, and support for the poorest areas, amounting to about (2) trillion dinars.”
She added, "The indicators proven during previous years indicate that the highest percentage of spending for the governorates did not exceed more than (4.2) trillion dinars, during the year 2022, as the spending was made according to the actual work peaks with no budget approved in that year, and therefore the presence of this bloc Of the large cash available to the governorates, spending units will not be able to spend more than 30% of it in the best of circumstances, according to the executive capabilities of the governorates.
The Ministry of Planning stated that the directives of the Prime Minister, Muhammad Shiaa Al-Sudani, were always supportive of the efforts of local governments, enabling them to fulfill their financial obligations, complete their basic projects, and include new projects.
She pointed out that the House of Representatives transferred (4.7) trillion dinars in last year’s 2023 budget from the Ministries of Electricity and Oil, to the governorate budgets in Table (E) as additional amounts to what the government allocated at the time, which was (5.2) trillion dinars, which forced The government and Parliament called for borrowing and set provisions to add allocations to cover the transferred amounts, which increased the deficit resulting from this measure, stressing at the same time that the apparent differences in the Kurdistan Region’s allocations include the sovereign investment budget, including licensing rounds for the Kurdistan Region amounting to (2.7) trillion dinars, which will not be spent to stop them. Exporting oil from the region, according to the decision of the Federal Court, and that the disbursement to the Kurdistan Region is conditional on the export of oil by (SOMO) and the region’s surrender of its oil imports to the Ministry of Finance.
Report: Arab banks expand in Iraq because of Washington!
“Al-Arabi Al-Jadeed” newspaper published a report in which it talked about the expansion of the work of Arab banks in Iraq, while indicating an increase in investments in the country as a result of US sanctions on Iran.
Text of the report:
Major Arab banks expanded their presence in the Iraqi banking sector during the past months, through their cash investments and direct dealings with private Iraqi banks, amid efforts to enhance the financial and cash balances of Iraqi banks and attract foreign capital.
Iraqi banks are facing major challenges against the backdrop of sanctions imposed by the US Treasury Department on 24 banks, banning their cash transactions in dollars, to limit currency waste and suspicious transfers. This ban affected banking services inside Iraq, which prompted the Central Bank of Iraq to issue its latest instructions to return to Law No. 4 of 2010, which stipulated the approval of one or more qualified shares for joint-stock banks, on the condition that this joint-stock bank be monitored by the central bank in its home country. Which contributed to opening the way for Arab and foreign banks to open their financial credits and cash investments with a number of Iraqi private banks.
The volume of external transfers to Iraqi banks and banks, directly or through correspondent and joint-stock banks, amounted to approximately 265 million dollars per day, by purchasing the dollar through the currency selling window at the official price of 1,310 dinars per dollar, while no official statistics were issued on the size of the cash masses that were pumped to buy. Shares in Iraqi banks.
In details, the Central Bank of Iraq recently granted four new licenses to Jordanian banks, namely the Union, Housing, Jordan, and Arab Banks, and they were preceded by other licenses to Arab and foreign banks according to investment ratios contributing to the Iraqi private banking sector.
A local newspaper published that the share of Arab banks in the National Bank of Iraq amounted to 76.7 percent of the bank’s shares, while the share of the Jordanian Capital Bank reached 61.85 percent, the share of Cairo Amman Bank reached 9.90 percent, while the share of the Palestinian Arcadia Investment Fund reached 5 percent. This comes amid the efforts of the Jordanian Housing Bank to buy a stake in the Iraqi Al-Mansour Bank, to which Qatar National Bank contributed 54 percent. Earlier, the Jordan Kuwait Bank announced the signing of the agreement to purchase a 51.79 percent stake in the Bank of Baghdad’s shares.
Opportunities for acquisition
The financial and banking expert, Abdul Rahman Al-Sheikhli, said that there are no specific numbers about the volume of Arab and foreign investments in Iraqi banks, but the Central Bank of Iraq has given foreign and Arab banks opportunities to acquire large shares in Iraqi banks at a rate of more than 50 percent.
Speaking to Al-Araby Al-Jadeed, Al-Sheikhli stated that the goal of the Central Bank of Iraq in granting contributions at high rates is to try to bring non-Iraqi capital to the sector. He added that Arab countries' investment in Iraqi banks is large, amid contributions from Jordanian, Kuwaiti, Qatari and Emirati capital.
He pointed out that the Central Bank of Iraq's invitation to foreign banking investments came due to the migration of Iraqi capital abroad and the smuggling operations resulting from the financial and administrative corruption that has spread throughout the entity of government institutions. He added that the lack of cash liquidity in banks is due to the loss of citizen confidence in the Iraqi banking system, specifically private banks, which prompted the necessity of bringing in foreign investments.
New investments support Iraqi oil.
Al-Sheikhli explained that Iraq today is witnessing relative stability in the political, security and economic system, and the investment environment has become safe and attractive for investment, especially after the emergence of real projects in the country, whether governmental or within the private sector. Al-Sheikhli stressed the importance of using foreign investments, which will contribute to creating additional resources away from the oil that Iraq has relied on over the past years.
The US sanctions imposed on private Iraqi banks and the restriction of dealing in foreign currencies gave the opportunity to foreign and Arab banks that hold accounts with international and American banks to contribute to the market share in Iraq in a very large proportion. Financial expert, Safwan Qusay, said that reconsidering restricting the movement of these Iraqi banks would prevent the monopoly of foreign banks operating in Iraq, which hold large accounts and credits with Iraqi banks at a rate exceeding 49 percent of the capital.
During his conversation with Al-Araby Al-Jadeed, Qusay stressed the necessity of protecting the financial system and providing an integrated banking system that relies on reviewing the policies of the Central Bank of Iraq by preventing monopoly operations on the sale of foreign currencies, including the dollar. Qusay stressed the importance of lifting the sanctions and restriction system and replacing it with the correction system, and guiding the restricted banks to enhance their ability to comply, meet the needs of customers, know the movement of the Iraqi dinar, and invest in technology. He pointed out the need to review the mechanism for obtaining the dollar and the share of foreign banks from it.
the other popular news we don't care about but the citizens probably do
A parliamentarian reveals objections delaying voting on the 2024 budget schedules
Today, Saturday (May 25, 2024), the representative of the Al-Fatah Alliance, Mukhtar Al-Moussawi, revealed that there are many observations and objections that delay the voting process on the 2024 budget tables.
Al-Musawi told "Baghdad Today", "Many representatives and the parliamentary bloc have many observations and objections to the budget schedules sent by the government, especially with regard to financial allocations to the governorates."
Al-Mousawi stated, “These observations and objections will delay voting on the sent tables, and there is also difficulty in passing the budget in its current form, and therefore amendments will be made to it and transfers will be made between the disbursement doors, and this matter will certainly take a long time.”
Last Thursday, independent MP Kazem Al-Fayad expected a delay in approving the financial budget schedules for 2024, due to political differences.
Al-Fayyad told "Baghdad Today", "Certainly, the 2024 budget will not be free of disagreements between blocs and parties, and these disagreements will delay voting on the budget even though it arrived very late from the government to the House of Representatives."
He stated that "disagreements over the budget are a dispute and a conflict of interests, and not for the sake of the people or financial allocations for the benefit of Iraqis, projects, and other national interests."
Al-Fayad added, "The influential powers are accustomed to such disputes for the sake of partisan and political interests, and therefore the budget will take a long time to be passed by Parliament."
It is noteworthy that the House of Representatives received the federal financial budget schedules for the year 2024 the day before yesterday from the government, which it approved last Sunday, and the Parliamentary Finance Committee proceeded to discuss the schedules.
It is noteworthy that the legislative recess of the House of Representatives will begin after 17 days, specifically on June 9, and questions are being raised as to whether extending the legislative term and reducing Parliament’s recess to one month instead of two months will be in vain due to political disagreements over the budget.
A government consultant confirms that changes in financial schedules conform to the constants of the tripartite budget
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed today, Saturday, that the variables in the financial tables conform to the constants of the tripartite budget, indicating that the spending pattern will contribute to reducing the deficit.
Saleh said: “Recording the variables in the financial tables for the year 2024 was in accordance with the constants adopted by the (tripartite) Federal General Budget Law, especially with regard to the axis of the hypothetical deficit, which amounts to approximately 64 trillion dinars.”
He pointed out that there are important trends in the management of the general budget, as the spending ceiling reached 211 trillion dinars, or revenues and deficits.
He added: “Oil prices are still higher than their estimates in the tripartite budget, 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.”
He stressed that “the pattern of public spending 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.”
Launching the activities of the National Bank Lending Strategy 2024-2029
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, launched the National Bank Lending Strategy in Iraq 2024-2029, in the presence of a number of officials and representatives of diplomatic missions and organizations in Iraq, in cooperation with the German Agency for International Cooperation (GIZ).His Excellency the Governor said in a speech he delivered during the celebration: The lending strategy started from the pivotal role of the banking sector in the financial system, by acting as an intermediary between depositors and borrowers, and through it is achieved to support economic growth, strengthen the business sector and help individuals achieve their needs and ambitions, indicating that bank lending It is the cornerstone of economic activity, driving growth and achieving well-being.His Excellency added that there is an urgent need today to stimulate and diversify the Iraqi economy, stressing that the Central Bank of Iraq’s housing lending initiatives that it launched through the Real Estate Bank and the Iraqi Housing Fund have reached about (11) trillion dinars.His Excellency stressed the need to expand the base of financial inclusion in Iraqi society, especially the expansion of the activities of small and medium enterprises, which are the backbone of the economy, pointing out that employing the workforce is a matter of interest and focus for the Central Bank and the continuation of its initiatives for small and medium enterprises, which will culminate in the launch of Riyada Bank, supported by By the Central Bank of Iraq and with the contribution of private banks.He believed that developing and implementing the national lending strategy for the years 2024-2029 requires cooperation between a wide number of relevant parties and a shared interest, to achieve the desired goal.Central Bank of Iraqinformation OfficeMay 25, 2024
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