5 billion of state funds as a “grant to parties”.. A new challenge to the 2024 budget
Documents about Al-Salami and Al-Maamouri
MP Hadi Al-Salami published documents on Saturday revealing the existence of a grant of 5 billion dinars allocated to political parties from the 2024 budget, confirming that he and MP Amir Al-Maamouri filed an appeal against the budget with the Federal Court, and are awaiting the issuance of a decision.
The video for this blogpost is below here:
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Legal expert, Dr. Wael Munther, raised an objection today, Saturday, regarding the Ministry of Finance’s letter addressed to MP Amir Al-Maamouri regarding the “political parties’ grant.”
Munther told Al Jarida, “The Ministry of Finance’s address published on MP Amir Al Maamouri’s page is incorrect. The Ministry of Finance should have noted that Article (44/Second) of the Political Parties Law was previously issued by the Federal Supreme Court as unconstitutional in 2016, and therefore it is not applicable due to the lack of a law amending its provisions.”
He added, “The Cabinet decision issued in 2017 is also illegal because it infringes on the powers of the Independent High Electoral Commission to issue instructions, as the Federal Supreme Court considered Article 59 of the Parties Law regarding the Cabinet issuing instructions to implement the law unconstitutional according to its decision No. 6 of 2016 as well.”
MP Amir Al-Maamouri said in a tweet followed by “Al-Jarida”, “Did you know that financial grants are disbursed to political parties from the budget, as (18 billion) have been disbursed and the disbursement is ongoing, and in the 2024 budget it is 5 billion.”
He explained, “Some may be surprised by this book, which shows that there is funding for parties from the federal budget, with a percentage of 80% for those who have representation in the House of Representatives and 20% for parties participating in the elections.”
He stressed, “We are working with the honorable people to cancel this issue, which has many comments and unjustified spending imposed on the deprived people and not on the party. We must distinguish between these parties, those who work and those who do not work, and those who steal public money and encroach on state property. Who evaluates these parties so that we can say they deserve the financial grant?”
Why is the exchange rate of the Iraqi dinar fluctuating against the US dollar in the parallel market?
Since 12/19/2020 when the exchange rate was adjusted by the Central Bank under pressure from the previous government until the present time, the exchange rate of the dinar has continued to fluctuate up and down in the parallel market even after it was adjusted again in 2023 despite the efforts made by the monetary authority and the government in taking many measures at the local and external levels.
Citizens, specialists and experts are wondering about the reason behind this?
To be neutral and stay away from the analyses and media statements of specialists and non-specialists, and because we are close to the reality of the real effort made by the Central Bank and the government and the information available to us, we can say from the latter that the stability of the exchange rate in the parallel market will remain in a state of fluctuation until the completion of the measures currently taken to implement the stages of financial and banking reform specified in Axis Twelve and Articles 1 to 7 and the daily efforts made by the Monetary Authority to complete the regulation of foreign trade financing and enhance and reform the government and private banking sector, which focus on compliance with international standards and agreements and ongoing negotiations with the US Treasury and global banks and the completion of the selection of the international auditing company to audit foreign transfers for banks to enhance their balances in foreign currencies that deal in other than the US dollar and the completion of the final agreements with Chinese correspondent banks to start dealing in the Chinese yuan after the temporary suspension of foreign transfers with China, as well as helping private banks to find correspondent banks to deal with them after the Central Bank’s decision to cancel the electronic platform inevitably during this year, and that the information confirms that there will be a breakthrough very soon by completing the above procedures and finding other new correspondent banks to deal in the UAE dirham and the euro as well Efforts are ongoing with the US Treasury and the company tasked with auditing the foreign transfers of the sanctioned banks in order to lift the restrictions on them using the US dollar. What also needs to be completed to reform the private banking sector is the decision to merge the banks that wish to do so, as well as the weak and struggling banks in order to reach the real size of banking activity, which covers the actual need for economic requirements. In addition, there is the urgent need to restructure some departments of the Central Bank to sustain work when the electronic platform is cancelled. The important measure that the government is responsible for is to stop illegal imports and cancel unofficial border crossings.
We must not forget also, clearly and accurately, that there is an organized lobby working against achieving monetary stability, led and implemented by multiple parties linked to speculators and corrupt people who have a special agenda to weaken the national economy and harm it by fabricating short-sighted and paid-for economic news, statements and analyses and transforming them from reassuring news for the market and citizens into news that confuses the market and creates panic among citizens. This is what is actually happening now, which requires clarification.
Here for about ten years, and especially after the financial and security shocks in mid-2014, the culture of relying on the Central Bank to confront economic and financial crises and challenges has taken root. This is done by using its own monetary policy tools and methods to overcome the government's lack of liquidity and its inability to pay salaries and fail to implement its government programs by relying on foreign exchange reserves, which are not in fact the government's reserves, but rather the Central Bank's reserves to control the stability of the exchange rate, according to the target and cover the local currency in circulation and cover imports. Due to these accumulated crises, the Central Bank was previously forced to lend the government about 46 trillion dinars over the past years, which reflected this policy on the national economy being exposed to
complex problems, and the solution is always the Central Bank, and it is also burdened with the problems of other concerned parties, and this is not its primary role, as it is not responsible for the deficit in non-oil revenues, the deficit in the balance of payments, the deficit in the trade balance, and it is not responsible for the rise and fall of global oil prices.
Therefore, foreign exchange reserves rose and fell due to these wrong policies that are not based on clear and specific economic strategies and approaches.
Therefore, the return of stability in the exchange rate to its targeted and balanced rates will be achieved with the support of the relevant authorities in the government by activating other productive sectors, reforming the financial and banking sector, and formulating clear financial policies in coordination with the monetary policy, its applications and currently approved tools, and overcoming the challenges of achieving economic stability. This means achieving stability in the financial and monetary system. This is not only the duty of the Central Bank alone, but rather it is a fundamental duty of the financial policy and the government's methodology in managing the economy, activating sources of national income other than oil, supporting, protecting and encouraging local production, and generalizing the activation of dealing in the Iraqi dinar in all internal monetary trading activities and expanding the use of electronic payment methods whenever possible.
My expectations for the exchange rate to return to stability will return after the completion of the reform, regulatory and negotiation procedures, and this does not take a long time.
The US Federal Reserve adopts a new strategy towards Iraq.. The dollar is threatened with rising to unprecedented levels
this sounds like a threat
Economic researcher Ziad Al-Hashemi revealed new information about the US Federal Reserve's policy towards Iraq, expecting the dollar to rise against the dinar, which will create great pressure on the Iraqi banking system.
Iraq speeds up steps to join WTO
actually date 07/29
The Ministry of Trade has doubled its efforts to join Iraq to the World Trade Organization (WTO) after participating in a wide round of negotiations that pave the way for full membership. These efforts were met with widespread economic welcome, which sees that this approach will achieve a package of important achievements, foremost of which is enhancing development, building capacities, and opening the door wide to the use of the highest standards of governance, in addition to the most important factor represented by the wide openness of global markets to Iraq, the advancement of the private industrial sector, and the improvement of the local product.
According to the Minister of Trade, Athir Dawood Al-Ghariri, the recent negotiations for Iraq constitute “a qualitative event and a confirmation of what the government promised through its program to reform the economic situation, considering the private sector as an essential part and the backbone of the Iraqi economy,” indicating that “all countries are keen on Iraq’s return as a global economic player.”
In support of the recent negotiations conducted by Iraq, the Ministry of Trade also participated in the technical meetings of the UNCTAD regarding the accession of Arab countries to the World Trade Organization in Istanbul, which witnessed, according to the Director General of the Department of Foreign Economic Relations, Riyadh Fakher Al-Hashemi, who represented the Ministry of Trade in these meetings, discussing the outcomes of the 13th Ministerial Conference of the World Trade Organization, the process of Arab countries’ accession to the organization, and how Iraq can benefit from these experiences in its process of accession. The importance of trade in services in supporting the economies of Arab countries and enhancing their growth was also reviewed.
In the midst of this, the Prime Minister’s Advisor for Financial Affairs, Dr. Mazhar Mohammed Salih, believes that “in the midst of the changes in the international commercial and financial space, Iraq has moved to important organizational levels in the transition to a market economy to break the effects of its international isolation by engaging in a strong area of economic liberalism that focused on liberalizing the areas of Iraq’s foreign trade in goods and services and the means of financing them, despite the fluctuations in its organization, as well as the development and expansion of areas of progress achieved in some financial services and improving the environment for foreign investment, which allows foreign banks to operate in Iraq and allows the transfer of capital and currency in a manner that serves Iraq’s openness to the world in the conditions of a difficult-to-handle central rentier economy.”
In a statement to the Iraqi News Agency (INA), Minister Al-Ghariri expressed his “aspiration for the fourth round of negotiations to be held during the first quarter of next year,” stressing that “this acceleration means that the negotiations are proceeding with rapid steps towards Iraq’s accession to the World Trade Organization, considering that Iraq is an important economic bloc and all countries are keen for it to return as an economic player in a multilateral system.”
In addition to the economic gains that can be achieved by opening up to the global market, the economic researcher and consulting engineer, Imad Al-Muhammadawi, believes during his interview with “Al-Sabah” that “joining has many other advantages besides opening up to global markets, represented in “enhancing development, building capacities, and opening the door wide to using governance standards in all aspects of economic activities, in addition to the most important factor, which is opening global markets to the economies of the least developed countries or what are called Third World countries, not to mention improving the financial side of the participating countries in terms of reducing financial risks and removing obstacles facing the participating countries.”
Al-Muhammadi added that joining also constitutes a factor in reducing poverty, by creating opportunities for the unemployed through increasing economic activities and developing both the private and public sectors.
The WTO aims to ensure that foreign companies, investors and governments enjoy stability and predictability, confidence that trade barriers should not be arbitrarily raised, investment is encouraged, jobs are created and consumers can fully enjoy the benefits of competition, choice and low prices.
Minister of Finance receives draft regulation and restructuring of Rafidain and Rashid Banks
Minister of Finance Taif Sami received today, Thursday, from the international auditing and oversight firm Ernst & Young a draft of the organization and restructuring of Rafidain and Rashid banks.
The Ministry of Finance said in a statement received by the Iraqi News Agency (INA): "Sami chaired a meeting at the ministry's headquarters with representatives of the international auditing and oversight firm Ernst & Young," noting that "a draft was submitted by the auditing firm on organizing and restructuring Rafidain and Rashid banks, in addition to discussing the proposed plan, implementation stages, and defining the frameworks of the contract and formulating it in a manner consistent with the priorities of reform and development."
It added that "the Minister of Finance discussed with the company the work plan and the necessary steps to merge and organize a number of institutions of the Iraqi Ministry of Finance."
The Minister of Finance stressed - according to the statement - "the importance of benefiting from the expertise of solid international companies such as Ernst & Young in the field of organizing and restructuring financial institutions, noting that "the ministry aims to make Iraqi banks internationally and locally acceptable to provide better services to citizens."
She explained that "the expertise of the auditing firm will contribute to improving the efficiency and effectiveness of financial institutions, as it is expected that merging and organizing financial institutions will improve the quality of banking services provided and enhance investor confidence in the Iraqi economy."
The Iraqi Embassy opens up prospects for cooperation with Egyptian businessmen and investors to work in Iraq
The Iraqi embassy in the Egyptian capital, Cairo, discussed, today, Friday, with investors and businessmen of major Egyptian companies, opening up prospects for joint cooperation.
The Iraqi Ambassador to Cairo, Qahtaan Al-Janabi, told the Iraqi News Agency: "The meeting addressed many files, the most important of which is the fruitful cooperation between the two countries in all fields," noting that "the presence of major Egyptian companies specialized in energy, pharmaceutical industries, and transportation is important to transfer Egyptian experiences to the Iraqi market."
He added that "the investors' problems were listened to and how to work on solving their problems and working to overcome the obstacles that hinder their work and travel and providing all facilities with the aim of transferring their expertise to Iraq, especially since the number of companies is increasing day by day," indicating that Prime Minister Mohammed Shia al-Sudani, during his meeting with senior businessmen, praised their role in building the Iraqi infrastructure by implementing many projects such as bridges and others.
He pointed out that "Egyptian companies are very willing to open up prospects for joint cooperation and investment in Iraq, with the aim of achieving stability and economic growth and transferring Egyptian experiences and expertise to the Iraqi market and achieving sustainable development and providing job opportunities and diversifying sources of income in the country and advancing the economic and social future of Iraq."
In turn, the investors expressed "their happiness in increasing the volume of trade and economic exchange in Iraq, especially after the stability of the security situation, which has become attractive for the presence of Egyptian companies in Iraq, and transferring Egyptian experiences in development projects in many fields such as energy, housing, roads, agriculture and medicine, with the aim of transferring the Egyptian experience to the Iraqi market."
Former Minister of Transport Hani Dahi, Chairman of the Board of Directors of the Nile Valley Company, explained to the Iraqi News Agency (INA) that "the security climate in Iraq is very encouraging for the presence of Egyptian companies in large numbers, especially since Iraq has become a safe and attractive environment for investment in all agricultural and industrial sectors. It is very important to transfer the Egyptian experience in all Iraqi governorates at the level of bridges, roads and electricity, especially since Egypt has great experiences in construction and reconstruction in light of a series of projects that it has implemented over the past ten years."
JUL 27 24
MP rules out finalizing oil and gas law this year
MP Ali Saadoun ruled out the possibility of the oil and gas law being passed in 2024.Saadoun said in a press interview that "the oil and gas law is one of the important laws that has been postponed for several sessions due to deep political differences, despite its importance in correcting several paths that cast their shadows on the performance of a sector that finances the country's treasury with about 90% of its revenues."
He added, "He rules out the possibility of resolving the oil and gas law in 2024 because the differences still exist and agreeing on it requires more dialogue, despite the serious desire of many forces to resolve this law."
He pointed out that "political consensus is necessary to proceed with the approval of many important laws in the country, but it must be in accordance with principles that positively reflect on the public interest."
A representative in the oil parliament rules out legislation of the oil and gas law
link
Today, Saturday, a member of the Oil, Gas and Natural Resources Committee, Bassem Al-Gharibawi, ruled out legislation of the oil and gas law in its current form, noting that it faces many disagreements within the House of Representatives.
Al-Gharibawi told Al-Maalouma Agency, “The failure to approve the federal oil and gas law generated problems and confusion as a result of the political dispute between Baghdad and Kurdistan, which has a negative impact on the oil policy in the country.”
He added, "The law is stagnating in light of the differences between the political forces regarding its passage, indicating that there are controversial points that hinder the enactment of the law within the House of Representatives."
He continued, “The law has been facing political disagreements since 2005 despite the presentation of a unified draft by the committees formed between the region and the center.”
Parliamentary Committee Expects Oil and Gas Law to Be Approved Soon: Delayed Because It Is a Political Pressure Card
link 7/28
so earlier it was not until next year but now...
The Parliamentary Oil and Gas Committee expressed its “optimism” on Sunday about the imminent approval of the Oil and Gas Law, which has been suspended for 19 years, noting that its delay was due to it being a political pressure card used throughout the past years in forming successive governments.
Committee member Nazim Al-Shabli said, “The oil and gas law is the most important of the suspended laws,” noting that “it was being exploited as a political pressure card in forming governments.”
But Al-Shabli expected that “the most serious government in this file is Al-Sudani’s government,” noting that “clear committees have been formed between Baghdad and the Kurdistan Regional Government, but so far the government has not sent the final version to the House of Representatives or the Oil Committee.”
Al-Shabli expressed the Oil Committee’s hope that “the relevant committees will resolve the issue and send it to Parliament, given the benefits of the law in regulating oil exports and stopping smuggling or selling oil outside SOMO,” believing that “this issue will be resolved in the coming days.”
He stressed that "the delay of the law came because it is a political card, especially since the region wants the law and considers it to be in its interest, in addition to the fact that it has old obligations and contracts with foreign companies, in addition to the continuation of smuggling."
About a year has passed since the formation of the committee to draft the oil and gas law, after a 19-year delay in the law that regulates the relationship between Baghdad and Erbil with regard to the management of oil in Kurdistan and the rest of the provinces,” while the law is considered one of the most important laws that have been suspended for years, amounting to more than 150 laws.
Parliament made a mistake twice" .. Hussein Arab explains the truth about the loss of trillions from the budget tables
MP Hussein Arab denied, on Friday, the news that there was a difference of 15 trillion dinars in the budget tables before and after its approval, revealing the truth of what happened inside the House of Representatives and how the parliament made mistakes twice, which angered the government.
Arab told Al-Jarida, “The legal clause for the budget tables stipulates that the Council of Ministers must send the budget tables for the purpose of ratification in the House of Representatives, and the House has the right to either ratify them or reject them and demand that they be changed.”
He explained, “But what happened in the House of Representatives is that the members of the Parliamentary Finance Committee had an objection to not adding 5 trillion dinars to be distributed to the governorates, and during the vote, 2.5 trillion dinars were added, even though adding this amount is not within the authority of the House of Representatives as it is a financial aspect, so the parliament tried hard and made a mistake.”
He added, “If the addition of 2.5 trillion dinars to the governorates had been limited to voting only without distribution, it would have been better, but Parliament made an effort and made a second mistake in distributing the amount to the governorates, which angered the government when it noticed the distribution of 2.5 trillion dinars. This is according to my personal opinion and my understanding of the issue of tables in the budget, and not based on an official statement from Parliament or the government.”
He concluded his speech by saying, “As for what is being circulated about the disappearance of 15 trillion dinars from the budget, this is not true, because they are tables and numbers and go to the Ministry of Finance, which distributes and sends, and the Ministry of Planning also has similar tasks, so the matter is not as huge as it is being circulated.”
Economist: The Central Bank does not have the upper hand over the banking system amid financial and institutional corruption
The economic expert, Ahmed Saddam, confirmed today, Friday, that the Central Bank does not have the upper hand over the banking system, and that the Central Bank has become a prisoner of the US Federal Reserve, so the issue of changing the person of the bank governor will not lead to changing the current situation in light of the existence of faltering financial policies, a fragile economy, and financial and institutional corruption, especially those banks linked to political and partisan entities.
Saddam told Al-Jarida, “The problem does not lie in the person of the governor of the Central Bank, nor in the procedures followed by the Central Bank, but rather in the monetary policies of the Central Bank, which cannot be activated in light of the existence of faltering financial policies, a fragile economy, and financial and institutional corruption, especially those banks linked to political and partisan entities.”
Saddam believed that “the Central Bank has become a victim because of these corrupt banks and dollar mafias, in addition to the fact that the Central Bank has become like a prisoner of the US Federal Reserve, and thus even if the governor of the bank changes, he cannot move a finger regarding the banking situation in Iraq, and this is due to the fact that the Central Bank does not have the upper hand over the banking system for the reasons mentioned above.”
He continued, "If we assume that Trump returns to the White House, then the pressure on the Iraqi banking system will be greater, and thus the dollar will continue to fluctuate according to political positions more than economic variables.
Economist: Replacing the relationship is not enough to solve the monetary crisis, unless accompanied by a new methodology
Economic researcher, Ziad Al-Hashemi, confirmed today, Friday, that replacing the governor of the Central Bank, Ali Al-Alaq, is not a sufficient and effective solution to the monetary crisis that the Iraqi economy is suffering from. Therefore, there is a need for a complete screening and the presence of teams to rescue and reform the situation in a systematic manner and in the form of plans and programs, to start a new page characterized by modernity and modernity in banking work.
Al-Hashemi told Al-Jarida, “The issue of replacing the governor of the Central Bank, Ali Al-Alaq, is not a sufficient and effective solution to the monetary crisis that the Iraqi economy is suffering from. Rather, the Central Bank and banking institutions need new approaches and a new methodology to get rid of the limitations and obstacles of the past, to start a new page characterized by modernity and modernity in banking work.”
“Replacing people will not solve the big problem in the system and its structure. Even if people with high qualifications, abilities, skills and experience are brought in, they will not be able to deal with the problems existing in the current banking environment. Therefore, there is a need for a complete screening and for teams to rescue and reform the situation inside Iraq, as well as functional teams, teams of experts and teams from political parties supported by clear legislation and ready to implement solutions systematically and in the form of plans and programs,” he added.
Due to the extreme heat, tomorrow Iran will close all government centers and banks
Iran's state media council has announced that all government offices and banks will be closed tomorrow, Sunday, due to the extreme heat, according to the Fars news agency. "Due to the continued extreme and unprecedented temperatures and in order to protect the health of citizens and rationalize energy consumption, all government offices, centers and banks across Iran (except for emergency and relief services centers) will be closed tomorrow, Sunday," the secretariat of the state media council said in a statement issued on Friday.
"Official working hours in all government offices and banks across the country (except for emergency and relief services centers) have been set from 6 to 10 a.m. on Saturday," the statement added. "Remote work is also allowed for employees who are unable to come to work due to their health conditions," the statement added. The capital, Tehran, witnessed its hottest day since Wednesday afternoon, with a temperature of 43 degrees in the city of Varamin. Temperatures will continue to rise this week and next, with temperatures expected to reach 50 degrees Celsius in most parts of the country over the next five days, according to Iran International.
Expanding the electronic payment base is an important financial transfer
The global smart card company “Ki” described the expansion of the electronic payment base in the country as moving to an important stage in financial transactions.
A responsible source in the company said that the development in the field of electronic payment and the acceptance of this form of transactions by a wide segment of society came as a result of what the citizen saw as a safe, advanced and fast service that saves time and effort in many transactions.
The source added that the directives of the government and the Central Bank of Iraq to support electronic payment have yielded positive results that contribute to the development of the national financial sector.
He pointed out that the company is working hard to create new products that are world-class and in harmony with the needs of the citizen.
Iraq's billionaire surge, rampant corruption amid economic challenges
The number of billionaires in Iraq rivals that of nine other countries combined, a stark reflection of the deeply rooted corruption within the state.
Corruption has plagued Iraq, exacerbated by the misuse of its budget, which official statements claim has led to the loss of $250 billion over the past 17 years. However, economists argue the actual figure could be nearly double.
The number of billionaires in Iraq rivals that of nine other countries combined, a stark reflection of the deeply rooted corruption within the state.
The Commission of Integrity (COI) is set to reveal the amount of money recovered and the measures taken to prevent further financial waste.
Many Iraqis are calling for transparency regarding governmental agreements, imports, and expenditures. On June 3, 2024, the Council of Representatives approved the amended Federal General Budget Law No. 2024, which allocates approximately 211.9 trillion dinars, a 7% increase from the previous year's budget.
Former Iraqi Finance Minister Ali Allawi previously stated that out of the over $1 trillion budget from 2003 to 2020, more than $250 billion was lost due to administrative corruption. Economists, however, estimate the loss to be between $400-450 billion, nearly 40% of Iraq's total budget. This squandered amount could have funded significant infrastructure projects, such as building 400,000 modern schools or 20,000 hospitals.
Experts cite fake and overpriced contracts, corrupt officials, mismanaged investment projects, and poor economic planning as major contributors to the financial drain. Since 2003, Iraq's workforce has grown from 850,000 to over 4.5 million, yet efficiency in public service sectors remains low, with only about 30% of the budget effectively utilized.
According to Haider Hanoun, head of the COI, Iraq ranks 154th out of 180 countries on the global corruption index. Hanoun admits that enormous sums have been stolen and transferred to international banks, with some funds even financing terrorism. The COI's 2023 report indicates that over 391 billion Iraqi dinars and $500,000 have been recovered, with an additional 82 billion dinars and $5 million prevented from being wasted.
Iraq’s Poverty Levels
The Strategic Center for Human Rights in Iraq reports that over 10 million Iraqis live below the poverty line, with the 2024 budget failing to support more than one million needy families.
The ongoing economic crisis and the appreciation of the dollar have driven up commodity prices, exacerbating poverty. Southern provinces are particularly affected, with Muthanna Governorate experiencing a 52% poverty rate, followed by al-Diwaniyah, Maysan, and Dhi Qar at 48%. Baghdad and Nineveh have poverty rates of 13% and 34.5%, respectively, while central provinces average an 18% poverty rate.
On July 21, 2023, Labor and Social Affairs Minister Ahmad al-Assad announced government measures to combat poverty, noting that Iraq has fallen 20 places in international rankings.
The economic challenges and rampant corruption in Iraq continue to hinder the country's development and exacerbate poverty. The COI's efforts to recover stolen funds and prevent further financial mismanagement are critical steps toward rebuilding trust and ensuring a more equitable distribution of wealth.
SUN 7 28 2024
Paralyzed for 19 years.. Parliamentary optimism about passing the most important laws in Iraq
The Parliamentary Oil and Gas Committee expressed its "optimism" on Sunday about the imminent approval of the Oil and Gas Law, which has been suspended for 19 years, noting that its delay was due to it being a political pressure card used throughout the past years in forming successive governments.
Mahmoud Dagher: Iraq needs a sovereign wealth fund to protect its economic future
The veteran financial and banking expert, Dr. Mahmoud Dagher, confirmed that Iraq , despite being a rentier economy, does not yet have a sovereign wealth fund that would enable it to enhance its economic growth and ensure its stability in the face of potential crises.
In a short video clip that Al-Mustaqillah followed today, Sunday, Dagher pointed out that most countries that depend on depletable rentier resources and are exposed to price fluctuations have taken proactive steps by establishing sovereign wealth funds whose combined balances exceed ten trillion US dollars.
All countries with depletable rentier resources and volatile prices have started establishing sovereign funds to protect their economies and promote growth, independent of the general budget and government policy,” Dagher said. “These funds play a vital role in achieving economic stability and hedging countries against global and local financial crises.”
Dagher added that the absence of a sovereign wealth fund in Iraq is a major shortcoming in the country's economic policy, especially in light of the heavy reliance on oil as a major source of revenue. He explained that establishing such a fund would enable Iraq to secure the future of its generations and avoid economic shocks that may result from falling oil prices or global economic crises.
Dagher called on the executive and legislative authorities in Iraq to expedite the establishment of a sovereign wealth fund. He said: “ Iraq must follow the example of other countries that have established sovereign funds to fortify their economy and secure their future. Establishing a sovereign fund will be an important strategic step to protect the Iraqi economy and secure the future of future generations.”
Dagher pointed out that sovereign funds play an important role in supporting sustainable economic policies, as they provide the necessary resources for long-term investments away from the fluctuations of annual government revenues. He stressed that benefiting from international experiences in this field can contribute significantly to designing a sovereign wealth fund that meets Iraq's special needs and enhances its economic stability.
Iraq stores gold and expects it to rise in the next two months
Economic expert, Abdul Rahman Al-Shaikhli, expects Iraq’s gold reserves to rise over the next two months.
urgent4 missiles fall on Ain al-Assad base
Four missiles fell on the Ain al-Assad base, west of Anbar Governorate.
Reuters quoted security sources as saying, "Four missiles fell on Ain al-Asad air base."
This is the first targeting of the base in months, which includes international coalition forces and American military advisors.
A security source in Anbar, Iraq, told Alhurra’s correspondent that Ain al-Assad air base, west of the province, was subjected to a missile attack on Thursday evening.
The source, who refused to reveal his name, said that the attack involved four missiles that were likely launched from a nearby area, and that at least two of them fell in the vicinity of the base, without knowing the extent of the losses resulting from the attack, or the party behind it.
The source added that the security forces began searching the areas near the base from which the missiles were expected to be launched.
Reuters also reported the same news, citing two security sources, who indicated that four Katyusha rockets were fired at the Iraqi Ain al-Asad air base, which hosts US-led coalition forces, late on Thursday.
The sources confirmed to the agency that two missiles fell inside the base and the other two fell in its vicinity, adding that it is unclear whether they caused casualties or damage.
The attack comes two days after a military meeting hosted by Washington, where Iraqi and American officials discussed ending the coalition's work after a decade of its formation to fight the Islamic State group and repel the group's invasion of Iraq and Syria.
No significant statement was issued at the conclusion of the talks, although American and Iraqi sources say an announcement about the start of a gradual withdrawal is likely in the coming weeks.
Iraqi political and military factions allied with Iran are pressuring the country's government to quickly scale back the coalition's work and say they want all 2,500 troops to leave.
Washington and the Iraqi government say they want to move to a bilateral security relationship that would likely see some troops remain in advisory roles.
Iranian-backed Iraqi militias have targeted bases housing US forces in Iraq and Syria dozens of times since the war between Israel and Hamas broke out on October 7.
Pentagon: No US personnel injured in Ain al-Assad base bombing
A spokesman for the US Department of Defense "Pentagon" confirmed today, Friday, that an attack took place in the area near the Ain al-Assad air base in Iraq, but no US military personnel were injured as a result of this attack.
The spokesman said, according to Sputnik Agency: "We can confirm that the strike was carried out in an area outside the base (Ain al-Assad) and there were no damages or injuries."
He added: "At this time, we do not have information about what shells were launched and how many."
JUL 27 24
New targeting of the American base on the Iraqi-Syrian border strip
A security source reported today, Saturday, that the American base in the Conoco field in eastern Syria was targeted.
This is the third targeting in three consecutive days.
Information prompted factions to resume their operations against American interests in Iraq.. What is the story of the Washington meeting?
Today, Friday, the military expert, Mukhallad Hazem, attributed the resumption of the resistance factions’ operations against American interests in Iraq to the failure of the Iraqi delegation’s meeting with officials in Washington to reach a specific date for the withdrawal of coalition forces from Iraq.
Hazem told Al-Jarida, “There is a link between what happened in the Washington meeting and the resistance factions’ continued targeting of American interests, as there was a factional vision awaiting what would happen in Washington, but no clear statement appeared from the Iraqi or American sides regarding the outcomes of the meeting.”
He explained, “But certainly there is information that has crystallized among the factions that this meeting will not lead to any scheduling for the withdrawal of coalition forces from Iraq, so they have resumed their operations, and it is expected that these operations will continue in the coming period as a threat to the American presence and pressure on the Iraqi government, in order to reach solutions to schedule the withdrawal of American forces.”
The military expert expected that “the resistance factions’ targeting will also include the Harir base in the future, but if there is targeting of figures in these bases, then there will be a qualitative American response to figures in the factions, which will create tension in the Iraqi arena.”
Al-Sudani pressures factions to calm escalation against Americans, seeks Tehran's support
Iraqi Prime Minister Mohammed Shia al-Sudani seeks to exert pressure on the armed factions loyal to Iran to stop their escalation against American interests and targets in Iraq, according to informed sources.
The sources told Shafaq News Agency, "Al-Sudani has been working for days to pressure the armed factions to stop the escalation operations against the Americans after the bombing of Ain al-Assad base, for fear of American reactions that may escalate the security situation and confuse it inside Iraq."
The sources added, "Al-Sudani communicated with Iranian figures in order for Tehran to pressure those factions to stop escalating their operations against the Americans and give him a new opportunity to end the American presence in Iraq through dialogue and negotiation, but so far the factions reject the pressures of Al-Sudani and those close to him."
On Friday, a spokesman for the US Department of Defense confirmed that an attack had occurred on the area near the Ain al-Asad air base in Iraq, without resulting in any injuries among US military personnel.
A security source reported, on Thursday evening, that the base was targeted by at least two missiles.
Why did Iraqi militias resume operations against Americans?
Pentagon to Asharq Al-Awsat: No injuries or damage in attacks in Iraq and Syria
Since a drone attack in late January killed three American soldiers in a desert area on the Iraqi-Jordanian-Syrian border triangle, and the US responded with extensive strikes against pro-Iranian factions in Iraq and Syria, Iraqi factions have backed off from their attacks.
Some saw the American response at the time as a “deterrent” message aimed at warning Iran against expanding the conflict in the region, against the backdrop of the Israeli war in Gaza. But last Thursday’s attack on two bases housing forces from the international coalition led by Washington, raised questions about the reasons behind the new “harassment” of American forces.
Pressure and embarrassment for Baghdad
The war in Gaza no longer seemed to be the motive behind the attack, while a Pentagon spokesman downplayed its importance and referred the question of whether it was related to the security agreement signed by Iraqi and American officials in Washington this week to the State Department.
The defense official told Asharq Al-Awsat that questions related to political relations between the United States and Iraq and political relations between the United States and Iran are the responsibility of the State Department.
“Regarding the attacks in Syria and Iraq, one rocket was fired at a military support site in the Euphrates region of Syria. The rocket did not impact the base and no injuries or damage were reported. In Iraq, two rockets were fired at Al Asad Air Base in Iraq. They did not impact the base and no injuries or damage were reported to US or coalition forces,” the official added.
Thursday's attack came after a security meeting held in Washington to discuss the future of the international coalition forces against ISIS in Iraq, while Iranian-backed armed factions are demanding the withdrawal of these forces.
The US Department of Defense said last Wednesday that the talks "reached an agreement on the concept of a new phase in the bilateral security relationship."
An Iraqi security official suggested that the attack was intended to “embarrass” the Iraqi government and “pressure” for the departure of the international anti-extremist coalition forces, a demand repeated by the pro-Iran factions.
Messages with regional and nuclear dimensions
Some believe that the attacks are “Iranian messages with regional dimensions,” including the stalled nuclear negotiations file, but why were they renewed at this time, while Iran has not yet arranged its files with its new president and America is preoccupied with its elections?
“Deterrence is never permanent,” said Behnam Ben Taleblu, an Iran researcher at the Foundation for Defense of Democracies in Washington, a Republican-friendly think tank. Speaking to Asharq Al-Awsat, he added that the halt in attacks by Iranian-backed Shiite militias on American sites in the region came after an “impressive” use of force by the Biden administration in late January after three American soldiers were killed.
But since then, the militias have tested the waters at least three times with missile and drone attacks. The more these attacks are understood, the more they have grown in scope and scale.
“Despite seeing the link between the nuclear and regional challenges that this poses, Tehran is trying to persuade Washington and Europe to separate the files,” Ben Taleblu adds. “To this end, the presidency of Masoud Pezeshkian will be designed to lure the West into a futile nuclear diplomacy, while the increase in Iranian-backed regional attacks will create the impression that there is no end in sight to the cycle of violence in the region other than appeasing Iran.”
SUN JUL 28 2024
New targeting of the American base on the Iraqi-Syrian border strip
A security source reported today, Saturday, that the American base in the Conoco field in eastern Syria was targeted.
This is the third targeting in three consecutive days.
To reduce the threats of the factions.. Washington sends two bombers to the Middle East
The American magazine "Air and Space Forces", concerned with air forces, revealed today, Saturday (July 27, 2024), that the American forces sent two giant, newly modified B-52 bombers to the Middle East with the aim of "securing" Saudi Arabia and Jordan from "threats from Iraqi factions."
The magazine said in a report translated by "Baghdad Today", "The two modern aircraft that were sent to the Middle East to secure Saudi Arabia and Jordan and test their capabilities as part of a show of force to deter Iran and its arms in the region, took off from an air base in Romania and arrived in Saudi Arabia and Jordan in a flight that lasted thirty-two hours."
"One of the planes suffered a technical malfunction that forced it to remain at one of the American air bases in Qatar, while the other plane returned to the United States alone to make the necessary adjustments after the testing process, which sources within the Pentagon told the Wall Street Journal aimed to demonstrate the capabilities of the United States to its allies in the region, in addition to putting an end to Iranian threats through its arms," she said.
The magazine indicated that "the two planes arrived in the Middle East after Israeli Prime Minister Benjamin Netanyahu's visit to Washington, during which he expressed his concern about the threats posed to Saudi Arabia, Jordan, and some regional countries cooperating with Israel by the Houthis and armed factions in Iraq."
On Friday, newspapers such as the Jerusalem Post published reports confirming that Washington and Tel Aviv are “concerned” about the threats to the countries of the region from the Iraqi factions and the Houthis, explaining that “the threats are an attempt to put pressure on those countries to close the land trade routes that pass through their territories and on which Israel now depends to finance itself during the war,” referring to five countries, including Saudi Arabia and Jordan, that are extending supply lines to Israel through their territories as a result of the naval blockade imposed by the Houthis on ports in Israel.
MP: Washington is delaying the confirmation of the withdrawal clause from Iraq - Urgent
Member of Parliament, MP Rafiq Al-Salihi, confirmed today, Sunday (July 28, 2024), that Washington is procrastinating in determining the paragraph of withdrawal from Iraq, noting that the exit of US forces is necessary to achieve the integrity of national security.
Al-Salihi said in an interview with Baghdad Today, "An important part of achieving integration in the national security system of Iraq is the absence of American forces from its lands, which we see as playing a negative role in the security scene through repeated attacks."
He added, "Washington is delaying its discussions with Baghdad in determining the withdrawal paragraph through fixed timetables, and this matter reflects America's agenda in Iraq and its attempt to remain despite the popular rejection of all spectrums and the existence of a parliamentary decision in this direction."
Al-Salihi pointed out that "the security situation in Iraq is stable and it has large forces capable of warding off terrorist threats or any other attacks," stressing that "the situation necessitates the withdrawal of American forces from the country and any manipulation or procrastination by the administration in Washington is unacceptable and the Iraqis will not remain silent about that."
The debate over the US withdrawal from Iraq has flared up again in the past few weeks, coinciding with the return of strikes and targeting of bases housing US forces in Iraq and Syria, while the US Central Command had indicated a few days ago that ISIS activity recorded during the first half of this year indicates a doubling of the number of attacks compared to last year.
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