Al-Alaq calls for fixing the price of a barrel of oil in the budget at $40
Ali Al-Alaq, the governor of the Central Bank, revealed the imminent establishment of national companies and banks specialized in electronic payment and financing small projects, while calling for fixing the price of a barrel of oil in the budget at $40. Al -Alaq said during his participation in the "Miri 2024" forum held in Erbil, followed by "Al-Mutala'a" agency, that "in 2003, the Central Bank's reserves were $900 million, and Qusay Saddam Hussein seized them on the eve of the fall of the regime, and they were loaded onto a truck, so Iraq seemed to have reserves of nothing." He added, "At that time, the size of the money supply was about 4 trillion dinars, and today we have more than 100 trillion dinars in circulation (issued currency), not all of the money supply, which is wider than that, and the reserve is more than 100 billion dollars."
The video for this blogpost is below here:
He continued, "The inflation rate (in 2003) was twice and sometimes three times, now it is 3.8%, which is a typical rate that achieves stability and prosperity." He said, "In 2023, the inflation rate was 7.5%, compared to a rapid growth in the money supply, which was 64 trillion dinars in 2020, then jumped in 2023 to 100 trillion, achieving a growth rate in two years equivalent to the growth rate in 18 years." Al-Alaq revealed, among the activities of the Central Bank, "the licensing of 16 electronic payment companies", and the imminent "licensing of digital banks." He stressed that the Central Bank is participating in "establishing a national company to organize electronic payment operations."
Al-Alaq explained that the bank "has a plan to restructure government banks, and a second plan to rebuild and license private banks in cooperation with international companies in this field." He also mentioned that the Central Bank "provided loans of more than 13 trillion dinars for residential and industrial projects, a number that exceeds all loans provided in the entire history of the Iraqi state." Al-Alaq revealed the imminent "establishment of a bank under the name (Riyada) to finance small and micro projects." Regarding the domestic public debt, which has reached 70 trillion dinars and may reach 80 trillion, Al-Alaq said that "the reason for the increase in debt is the budget, which shows a large deficit, which is covered by debt," indicating that "there are no other tools that the government uses. Debt is the easiest and shortest way, and it is obtained from government banks and sometimes from the Central Bank."
The Central Bank Governor called for "controlling the debt." He added, "The budget deficit is due to the increase in expenditures that are not matched by growth, especially in local revenues. Therefore, expenditures have become binding and inflexible, such as salaries, which are the largest expenditures." He added, "Iraq still depends on oil revenues to cover its expenses, and any fluctuation in oil prices affects the coverage of expenses, which have become fixed and cannot be reduced." Al-Alaq considered that this indicates a structural defect in the structure of the Iraqi economy, which is unable to produce local products capable of generating income and thus returns for the government and individuals.
He said, "The government is trying to diversify the economy, but this will not happen without expanding the agricultural and industrial base, investment and taking advantage of natural and human resources."
Al-Alaq explained, "When oil revenues increase, expenses increase, and when they decrease, we reduce investment expenses, which affects projects." He stressed, "We need to control expenses and increase revenues in return." He revealed that "the external debt is at its lowest level, a small amount, and the largest is the local debt," revealing that "the external debt is less than 20 billion dollars." Regarding the budgets and oil prices file, Al-Alaq said, "We proposed years ago the idea of setting the price of a barrel of oil within the budget at 40 dollars."
He explained, "This means that operating expenses should not exceed the $40 ceiling set for a barrel, so that the government can ensure the flow of expenses on the one hand, and provide an opportunity to spend on real investment projects and development." He added, "Now is the right time to set a strict price ceiling for public expenditures, otherwise whenever the price of oil increases, it goes to operations, and whenever it decreases, we take from investment."
Iraqi-US Negotiating Committee Stresses Transition from Military to Economic Relations
The Higher Coordination Committee for the Strategic Framework Agreement for Friendship and Cooperation with the United States of America stressed the need to move the relationship with Washington to an economic partnership and not to focus on military affairs.
This came during the committee's periodic meeting headed by Foreign Minister Fuad Hussein, in the presence of all representatives of the subcommittees within the Higher Committee, according to a statement by the committee.
The statement stated that "the meeting discussed the latest developments in bilateral relations between Iraq and the United States of America, in addition to reviewing the achievements approved during the recent meetings between the two parties in mid-April in the capital, Washington. Future working papers were also discussed during the upcoming meetings of the committee, scheduled to be held in February of next year, within the agreed upon axes, which include cooperation in the political and diplomatic fields, security and defense, energy, economy, education, health, and the environment."
The Foreign Minister stressed the importance of strengthening relations with the United States of America by implementing the provisions of the agreement, and moving the relationship to a solid economic partnership. He also stressed the need not to focus only on military and security aspects, but rather to expand cooperation to include economic, health, educational, and other fields.
Parliamentary Committee: US pressure on Iraq to resume exporting regional oil via Ceyhan
Member of the Parliamentary Oil and Gas Committee, Sabah Sobhi, revealed today, Sunday, that there is American pressure being exerted on Iraq to resume exporting oil from the region and Kirkuk via the Turkish Ceyhan.
Sobhi said in a statement followed by "Al-Eqtisad News", "Resuming oil exports through Ceyhan is the most important issue that is still pending, and the Kurdistan Regional Government has made great efforts with companies to resume oil exports through the port of Ceyhan, but it did not yield any results."
He added, "The federal government is under great pressure to resume exporting oil from the Kurdistan Region and Kirkuk, and this pressure comes from the United States and the European Union, given that European countries need larger quantities of fuel in the winter compared to the summer."
"OPEC is also exerting pressure as Basra port has now become the only route for Iraqi oil exports," Sobhi added.
He concluded by saying, "Türkiye has expressed its readiness to resume oil exports from the Kurdistan Region, but Iraq has not yet reached an agreement on the cost of extracting oil."
MPs reject government contracts with foreign companies and demand correcting the course
MPs announced their rejection of government contracts with foreign companies, calling for correcting the path to achieve sustainable development and preserve public money.
Deputy Chairman of the Economy, Trade and Industry Committee, Yasser Al-Husseini, said in a joint press conference today, Sunday, "Through our follow-up of government contracts signed by ministries and agencies with private sector companies and foreign and Arab companies, we received many questions about the nationality of these companies, most of which are in contact with the Zionist enemy and the usurping entity."
He added, "These contracts waste the country's rights and mortgage the state's economic facilities and mortgage the country's airspace and sovereignty, including the Ministry of Transport's attempt to contract with a British company to manage airports and air traffic control, as well as mortgage the management of the Faw Port with the Abu Dhabi Port, which is managed by an Israeli company, so we reject these efforts in full."
Al-Hussaini warned of “the Ministry of Industry’s attempt to mortgage the country’s wealth and natural resources of sulfur, phosphate and silica, by contracting with foreign companies of different nationalities for low prices, including mortgage of sulfur at a value of 8 dollars per ton, which would cause a huge waste of billions of dollars annually in the ministry’s contracts with those companies, contrary to the government’s program and approach that approved the development of non-oil wealth.”
Al-Lami and Al-Alaq stress the need to combine efforts to prevent corruption and recover its proceeds
The Chairman of the Federal Integrity Commission, Mohammed Ali Al-Lami, stressed the need for concerted efforts by state institutions to prevent and combat corruption, and to strive diligently to recover smuggled corruption proceeds, in addition to focusing on preventive, awareness-raising and educational methods to prevent corruption and spread and consolidate the culture of integrity among society.
Al-Lami, during his reception of the Governor of the Central Bank, Ali Al-Alaq, at the Authority’s headquarters, noted “the Authority’s determination to continue efforts to combat corruption and pursue its perpetrators, noting that corruption hinders reconstruction, development and investment operations and contributes to the decline in services provided to citizens.”
For his part, the Governor of the Central Bank offered his "congratulations to Mohammed Ali Al-Lami on assuming his duties as Chairman of the Federal Integrity Commission," wishing him "success in carrying out the great national mission of combating corruption and cleansing state institutions of its filth."
The two parties agreed to "intensify levels of cooperation and coordination between the Authority and the Central Bank, especially in the file of money laundering and smuggling, noting the sanctity and inviolability of public money, and the importance of doubling efforts to preserve it, and recovering what was stolen, embezzled and smuggled out of the country."
Oct 29 24
The Dinar Under Siege: How Do Smuggling Mafias Strike the Cash Reserve?
Reports indicate a worrying increase in the activity of currency smuggling mafias in Iraq, which has raised widespread questions about the serious repercussions of this activity on the Iraqi economy.
Such operations that aim to transfer money abroad illegally lead to huge losses in the cash reserve and affect the state’s ability to finance basic needs, and contribute to the exacerbation of inflation and the deterioration of the value of the Iraqi dinar.
One economic analysis states that: “Currency smuggling operations weaken Iraq’s foreign exchange reserves, increasing the country’s inability to meet its basic import needs, and leading to a deterioration in the balance of payments. This illegal outflow of funds not only leads to weak domestic investment, but also creates an unstable economic environment, raising concerns among foreign and local investors alike.”
Another aspect of the negative effects of these operations appears in the financing of illegal activities such as drug trafficking and support for armed groups, indicating that currency smuggling is not only an economic issue, but a security problem that affects the stability of Iraq more deeply.
The various methods used to smuggle money include foreign imports that take place outside the official platform of the Central Bank, which is a violation of the laws and increases chaos in the market.
Reports indicate that some parties are deliberately seeking to weaken the national currency by raising the price of the dollar in an exaggerated manner, which raises questions about the possibility of internal parties colluding with smuggling networks to increase their profits at the expense of the national economy.
Expert Mohammed Al-Kubaisi explains that currency smuggling mafias exploit political and economic crises to increase their activities, taking advantage of weak government oversight and financial turmoil to achieve huge profits.
The problem seems to go beyond the economy to include deeper issues related to weak legislation and government control, which is prompting some analysts to call on the government to take strict measures, including imposing strict controls on financial transactions and setting policies that encourage local investment to limit the flow of money abroad.
The Future of Relations with Washington: Iraq Wants Partnership, Not Hegemony
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The relationship between Iraq and the United States faces major challenges in light of regional developments and internal political changes in both countries.
There is an Iraqi trend to present its relationship with Washington in a different way than it was in the past, as Iraq seeks to diversify this relationship away from the military and security dimension that has long dominated bilateral cooperation. Iraq recently submitted an official memorandum of protest to the UN Security Council against Israel, stressing the need to clarify positions and highlight Iraqi grievances before international forums, a step aimed at reformulating Iraq's foreign policies in a way that enhances its sovereignty and independence.
In this context, the Iraqi government formed a special committee to review the relationship with Washington, based on the Strategic Framework Agreement signed in 2008, which sought to establish a partnership based on cooperation in various fields, not just security affairs.
Sources told Al-Masala that Iraq seeks to achieve a balanced partnership that will allow it to build a strong and sustainable economy, by benefiting from Washington’s expertise in the economic, educational, and health fields, instead of relying excessively on the military aspect. This trend reflects a strong desire to achieve the aspirations of the Iraqi people away from the effects of regional conflicts.
Moreover, Iraq announced earlier this year the end of the international coalition formed in 2014 to fight ISIS, a move aimed at reducing foreign military presence and restoring national control over sovereign decisions.
This announcement comes as part of a plan aimed at changing the pattern of relations with the United States, while seeking to develop new mechanisms for cooperation through a tripartite military committee that includes representatives from both parties.
Analyses indicate that “this committee must establish strong foundations for a real partnership that is far from hegemony and based on mutual interest, so that Iraqis feel the impact of this partnership in their daily lives.”
The shift towards economic partnership has become an increasing demand, as some voices within the Iraqi government stress the need to move from reliance on military support to enhancing cooperation in the areas of infrastructure, technology and energy, which contributes to developing Iraq’s economic capabilities and providing job opportunities for young people.
The Iraqi-American relationship is one of the most complex issues in the Iraqi political scene, and it is a source of disagreement between political forces, as visions differ on how to deal with this relationship and direct it towards a path that serves the country’s interests, far from foreign interference.
Political movements see Washington as a key partner whose cooperation must be maintained, especially in the economic, health and educational fields in which Iraq lacks long-term institutional support.
These forces call for expanding areas of cooperation outside the security framework, noting that the United States can be a strategic ally for Iraq's development through massive investments, especially in the areas of infrastructure and energy.
Perhaps this trend is expressed by representatives in parliament and officials who believe that building a comprehensive economic partnership with Washington can achieve economic stability away from oil revenues.
On the other hand, there are forces that consider the relationship with the United States to be fraught with sovereignty risks. These parties, which often tend to adopt a nationalist discourse that rejects the American military presence, see American policy in the region as conflicting with Iraq’s interests and regional orientations.
Given the vast regional influence of these powers, the political arena has witnessed calls to re-evaluate the relationship and determine the extent of its need.
This division is clearly evident in the decisions of the Iraqi government, which seeks, on the one hand, to calm internal fears by forming committees to review the strategic framework agreement with the United States, and on the other hand faces pressure to confirm the trend towards new partnerships that are not subject to external pressures.
The joint committee held three meetings in Washington and Baghdad, during which it reached a new mechanism to regulate the relationship between the two parties, which stipulates the withdrawal of the remaining American combat forces in Iraq, and the retention of a number of advisors for the purposes of advice and logistical support, according to the strategic framework agreement signed in 2008 and ratified by the Iraqi parliament.
Shaddad: The Oil and Gas Law Will Not See the Light and Oil Benefits Neglect Field Residents
Shaddad said, during his hosting on the {Free Talk} program broadcast on Al-Furat satellite channel this evening, that: "Through our follow-up and oversight role in the performance of the government of Mohammed Shia Al-Sudani, we found successes in various sectors, including the oil sector, but on the other hand, there is a deviation in the path of the education
and health sectors, water and electricity projects, agriculture and industry as a result of previous accumulations.
" He added, "Many factories and plants have been opened, but their production volume is very low and differs from what was announced about reaching self-sufficiency, including fertilizer and rolling projects in Basra Governorate."
Shaddad explained, "Through our repeated hosting of officials from the oil and electricity sectors, I confirmed the government's lack of a five-year plan to overcome the energy crisis in the country. The reason for the success of the
electricity plan in Basra is due to the multiple uses of petroleum derivatives in the stations."
"The Ministry of Oil started operating the refineries a year and a half ago and conducting isomerization and other operations, and now we have self-sufficiency in petroleum derivatives except for gasoline. We believe that importing gas from Iran and Turkmenistan will burden the government," he continued, noting that "the Turkmen gas that Iraq has contracted for is complementary to Iranian gas and not a substitute for it."
Shaddad attributed the reason for replacing the import of gas from the Emirates to Turkmenistan to "the presence of the Iranian oil pipeline, as Iran agreed to use its pipeline to transport gas from Turkmenistan to Iraq, and a contract was signed to import 20 million cubic meters per day," explaining, "The original contract with Iran was for it to supply Iraq with 50 million cubic meters per day, but due to the sanctions and its energy crisis, it fell short in the supply process, so Iraq resorted to the supplement."
He also stressed "Iraq's keenness on the stability of the oil market, provided that it does not fall below $70. If it falls, there will be a real crisis in the state treasury that will lead to the suspension of projects in the capital and the provinces, and may also affect employees' salaries," noting that "Iraq's sales today are $70 and above, so there is no financial deficit throughout the current year."
Shaddad attributed the reason for the suspension of the Karbala refinery to "the use of water unsuitable for heat exchangers, which is borne by the implementing company," pointing out "the upcoming steps to question the director of the Central Oil Company, and then host the general director of the Central Refineries and raise a number of questions and indicators that have been identified on this subject."
He continued, "We have laws that are more than 50 and 60 years old, repelling investors. Therefore, we have seen the amendment of 5 important laws related to oil and gas that will see the light of day early next year. We do not see a future in the oil and gas law, and the reason is the Kurdish party. As for the social benefits file, it has not been implemented due to the policy of local governments, as they go to city centers, leaving residents of oil field areas suffering from diseases and lack of services."
Regarding the political issue, specifically the four controversial laws, Shaddad said, “Until now, the political forces have not reached any agreement to resolve the four controversial laws, and there are ongoing attempts and meetings. In principle, it was agreed to pass the law to return the properties according to the government text without any additions, which confirmed that everyone whose properties were confiscated without compensation will now be compensated.”
"The Sunni MPs have reservations about passing the real estate law that the Kurds are pushing for; however, there is no objection from any party to amending the Personal Status Law, and the Sunni Endowment is hesitant to send a draft of the law. As for the general amnesty law, there is a slight difference in the definition of the word {the absent}, and the government's draft clearly defined the absent as their names not being included in the records of the terrorist ISIS,"
Shaddad concluded his interview with "Khamis Al-Khanjar resigned from the presidency of the Sovereignty Party in accordance with his desire to register a new party, and he is covered by the Accountability and Justice Law, so he submitted his resignation and has nothing to do with the parliamentary or governmental situation."
"Draft Ceasefire Agreement" between Israel and Lebanon.. The most important articles
The Israeli Broadcasting Corporation revealed a draft ceasefire agreement between Israel and Lebanon, coinciding with the intensive efforts in which the United States is engaged to end the conflict between the two parties.
Under the draft agreement, from the moment it is signed, Hezbollah and other armed groups in the region will not launch any operations against Israel, and Israel, for its part, will not carry out offensive actions against targets in Lebanon, including military and government targets.
According to the commission, the settlement document of the American mediator, Amos Hochstein, had previously been presented at the political level.
The main points included the following:
- Israel and Lebanon acknowledge the importance of UN Resolution 1701.
- The commitments will not deprive Israel and Lebanon of the right to defend themselves, if necessary.
- In addition to UNIFIL forces, the official Lebanese army will be the only armed force in southern Lebanon on Line A.
- Under Resolution 1701, in order to prevent the rebuilding and rearming of non-state armed groups in Lebanon, any arms sales to, or production within, Lebanon will be under the supervision of the Lebanese Government.
- The Lebanese government will grant the necessary powers to the Lebanese security forces to implement the decision.
- Monitoring the entry of weapons across the Lebanese border.
- Monitor and dismantle facilities not recognized by the government that produce weapons.
- Dismantling any armed infrastructure that does not comply with the obligations contained in the agreement and falls under line “A”.
- Israel must withdraw its forces from southern Lebanon within seven days, and the Lebanese army will replace them. The withdrawal will be supervised by the United States and another country.
- A date will be set, which will be the maximum date by which the Lebanese army will deploy its forces along the borders and crossings.
- Within 60 days of signing the agreement, Lebanon will have to disarm any unofficial military group in southern Lebanon.
He added that he did not think a deal would be possible until after the US presidential elections next Tuesday, but he said he became more optimistic after speaking on Wednesday with Hochstein, the US special envoy to Lebanon, who is scheduled to visit Israel on Thursday.
Mikati told Lebanon's Al Jadeed TV that Hochstein made it clear during the call that an agreement could be reached before the end of the month and before November 5.
Mikati said that a ceasefire could be reached in the coming hours or days.
Israel and the Lebanese Hezbollah group have been fighting since last year in parallel with Israel's war in Gaza after the group struck Israeli targets in solidarity with Hamas in Gaza.
The conflict in Lebanon has escalated sharply in the past five weeks, with most of the deaths in the fighting this year alone, according to the Lebanese Health Ministry, totaling 2,800.
After his first speech... What are Sheikh Naim Qasim's messages?
What are the backgrounds, messages and expectations in Sheikh Naim Qassem's speech on the Lebanese front with the Zionist entity, or on the level of negotiations? Lebanese political analyst Faisal Abdul Sater told {Euphrates News} that: "Sheikh Naim Qassem sent several messages, the most prominent of which are three, the first implicit to the party, its fighters, supporters and all those related to the resistance against the Zionist enemy, and the second message was directed to the Zionist enemy who thought that the painful blows would not deter the determination of the party and the resistance."
He added, "As for the third message, which we are living through today, which is this ongoing war and Israeli aggression on Lebanon and Hezbollah, he said it explicitly that he will continue with the truce of war and resistance to the occupation unless he takes into consideration the basic issues that Hezbollah has determined.
" Abdul Sater continued, "Sheikh Qassem spoke about basic constants in the corridors of negotiations with the Zionist entity and stressed that Hezbollah does not accept that the occupation imposes its conditions to end the aggression by amending international resolution 1701 in a way that is consistent with what the entity wants."
He stressed that "the resistance still has the power and surprise and that it is the owner of the power and the occupation is lying to public opinion and its purpose is to buy more time."
In his speech, Hezbollah Secretary General Sheikh Naim Qassem confirmed today that the party will continue on the path of war and that it is adhering to the approach set by his predecessor, the martyr Sayyed Hassan Nasrallah.
In his first speech a day after being appointed as the new Secretary General of the party, Sheikh Qassem said that his work program is a "continuation" of the program of the martyr Sayyed Hassan Nasrallah, considering that Israel has been attacking Lebanon even before the existence of "Hezbollah."
Sheikh Qassem considered that "supporting Gaza" was a duty, and added, "We are not fighting on behalf of anyone, but for Lebanon, liberating our land, and supporting Gaza," while stressing that "Israel's aggressive intentions towards Lebanon" were present from the beginning and that Tel Aviv did not need pretexts to attack Lebanon.
He pointed out that Israel was not committed to UN Resolution 1701, and we monitored 39,000 air and sea violations according to the report.
Sheikh Qassem said, "There will be many sacrifices, but victory will be our ally in the end, and we will remain on the path of war within the planned developments, and our resistance exists to liberate the land and confront the occupation and its expansionist intentions."
The fruit of 10 years of effort.. The Protest Committee confirms the opening of a branch of Rashid Bank in Sulaymaniyah - Urgent
Saman Ali, a member of the Sulaymaniyah Protests Committee, confirmed today, Tuesday (October 29, 2024), the opening of a branch of Rashid Bank in the province.
Ali said in an interview with Baghdad Today, "Opening the bank is the result of the efforts of the protesters and demonstrations for more than 10 years, during which we made great sacrifices."
He added, "Opening a branch of Al-Rasheed is an excellent step and a prelude to greater results represented by localizing employees' salaries in Kurdistan, and we hope to open a branch of Al-Rafidain and the rest of the federal banks."
An informed source revealed last Saturday that new branches of Rafidain and Rashid Banks will be opened in Sulaymaniyah Governorate next week.
The source said in an interview with "Baghdad Today" that "approval was given to open branches of Rafidain and Rashid Banks in Sulaymaniyah Governorate," indicating that "the location was chosen in the middle of 60th Street in the city."
He added, "A branch of the Trade Bank of Iraq will be opened in Halabja Governorate, and branches of the Trade Bank of Iraq will be opened in the areas of Garmian and Raparin, with the aim of increasing the salary settlement centers in the federal banks, as a result of the great momentum in the bank's branch in Sulaymaniyah."
It is noteworthy that the representative of the Patriotic Union of Kurdistan, Gharib Ahmed, confirmed in an interview with "Baghdad Today", Monday, October 7, 2024, that "localizing salaries in an accounting project will harm the interests of employees in the region," stressing that "the optimal solution is to localize salaries in federal banks only, which ensures the disbursement of salaries on a monthly basis as is the case in the rest of the Iraqi governorates."
On February 21, the Federal Court decided to “oblige Prime Minister Mohammed Shia al-Sudani and the President of the Kurdistan Regional Government, Masrour Barzani, to localize the salaries of Kurdistan Region employees at outlets spread across the region or banks open and licensed by the Central Bank of Iraq, and to deduct them from the region’s budget for this year and the coming years.”
The President of the Republic calls for enhancing cooperation with the countries of the world in order to extradite wanted persons and recover Iraq's funds abroad
President of the Republic Abdul Latif Jamal Rashid called for enhancing cooperation and coordination with countries of the world in order to extradite wanted persons and recover Iraq's funds abroad.
A presidential statement stated that the President of the Republic received, today, Tuesday, at the Baghdad Palace, the Chairman of the Integrity Commission, Mohammed Ali Al-Lami.
According to the statement, Rashid congratulated the Chairman of the Commission on his assignment to the position, stressing that everyone expects effective and correct steps from the Commission to preserve public money through legal and constitutional procedures, adding that diagnosing the waste of public money is a noble national task that requires a serious and firm stance from all regulatory agencies and bodies, foremost of which is the Integrity Commission, calling for the adoption of integrated and comprehensive national plans and programs in which all official and societal activities have an active role. "
The President of the Republic called, according to the statement, to enhance cooperation and coordination with countries of the world in order to extradite wanted persons and recover Iraq's funds abroad."
For his part, Mohammed Al-Lami reviewed the Commission's future plans and programs, appreciating the support of His Excellency the President of the Republic for the Commission's work and its efforts to achieve transparency.
He stressed the importance of the Presidency of the Republic's support for the Integrity Commission in its efforts to combat the corrupt, recover Iraq's money, and preserve national wealth.
Commercial Bank allows buying dollars through Kurdistan airports
The Commercial Bank of Iraq announced the possibility of purchasing dollars by travelers through the airports of the Kurdistan Region in Erbil and Sulaymaniyah at the official price.
Romanowski: Kurdistan Region is an important part of US trade and investment in Iraq
US Ambassador to Iraq Alina Romanowski stressed that the Kurdistan Region is an important part of US trade and investment in Iraq, and an example of democracy that can be developed in Iraq. Romanowski said during her participation in a dialogue session within the Meri Forum in Erbil, today, Tuesday, October 29, 2024, that "the Kurdistan Region is an important part of US trade and investment in Iraq, and an example of democracy that can be developed in Iraq, so the relationship between the United States and the Kurdistan Region is not one-sided, but two-sided."
Regarding Iraq, she said: “As for Iraq, we did not participate in the Israeli attacks on Iran, and we do not have control over Iraqi airspace.” She added: "Iraqi security forces, including the Kurds, have made good progress in fighting ISIS, a mission for which American forces were called in 10 years ago." She added: "We want all Iraqi forces to be under the control of the General Command of the Armed Forces. Iraq plays a major role in regional stability, and we want it to be stable and independent."
The Central Bank republishes controls for declaring funds and bringing them in or out of Iraq
hmmmm they are posting this again...
Today, Tuesday (October 29, 2024), the Central Bank of Iraq republished the controls for declaring funds, while indicating that it allows the entry or exit of amounts less than $10,000.
The bank said, according to a statement received by "Baghdad Today", that "in order to reduce the risks of bringing in and out money across the Iraqi borders and exploiting this in money laundering or terrorist financing operations, and based on the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2025, and the provisions of Controls No. 1 of 2029 (amended Controls No. 1 of 2017), the following must be adhered to:
1. It is permitted to bring in or take out amounts less than (10,000) dollars (ten thousand US dollars) or its equivalent in other currencies without declaring them.
2. It is permitted to bring in or take out amounts exceeding (10,000) dollars (ten thousand US dollars) to 20,000 dollars (twenty thousand US dollars) provided that they are declared, with the necessity of presenting evidence supporting the purpose of bringing in or taking out these amounts. In the event that supporting documents are not available, the traveler must submit a pledge to bring these documents after (30) days from the date of declaration.
3. It is prohibited to bring in or take out amounts exceeding (20,000) dollars (twenty thousand US dollars) or its equivalent in other currencies, and the process of bringing in or taking out these amounts shall be exclusively through financial institutions.
4. It is prohibited to bring in or take out amounts exceeding (1,000,000) dinars (one million Iraqi dinars) even if they are declared, and the amount will be seized and legal measures will be taken against it. 5. Declaration of precious stones and metals if their value exceeds (10,000) ten thousand US dollars. 6. Declaration of financial instruments that are negotiable to bearer or are transferred inside or outside Iraq by a person, postal service, shipping service or any other means and whose value exceeds (1,0000) ten thousand US dollars.
US Ambassador clarifies on withdrawal of foreign forces, dollar, and sanctioning Iraqi banks
Revealed plans under '360 degree agreement'
The US Ambassador to Baghdad said that the United States did not interfere in the attacks launched by "Israel" on Iran, while she spoke about her country's sanctions on Iraqi banks.
Romanowski, during her participation in the Meri Forum held in Erbil today, Tuesday, indicated "a desire to develop our relationship with Iraq, which has focused in the past ten years on security issues, and to cooperate more broadly on matters related to governance, energy, the private sector, youth and women," indicating that "there have been very big changes that have occurred in the past three years. Both countries still believe that these agreements are useful for developing the relationship between us."
Regarding Iraq's economic future within the framework of the 360-degree agreement, in light of the challenges facing the country, she said, "The US Treasury does not manage the Iraqi energy field, nor its trade," indicating that "her country is working with the Iraqi Supreme Advisory Council, and after Mohammed Shia al-Sudani assumed the presidency of the government, on the independence of Iraqi energy, and pushing the Iraqi government to use its resources in a rational manner, including the exploitation of gas associated with oil, and the establishment of an economic infrastructure."
She spoke about "plans regarding the production of electrical energy, and working to achieve energy self-sufficiency in Iraq through its resources to eliminate the problem of power outages." "There are several parties working on this issue, and we can support this path."
Romanowski said, "The United States wants to ensure that Iraq has access to energy, oil, and oil revenues, by having infrastructure and communications with its neighbors such as Kuwait and Saudi Arabia, indicating Washington's efforts and work to achieve communication between Iraq and those countries in order to help Iraq achieve energy independence."
The US Ambassador touched on the issue of sanctions imposed on some Iraqi banks, accused of smuggling dollars to Iran, saying: "There are many businesses that are subject to sanctions. The reforms that have taken place in the banks and the banking system are positive things that have happened during the past two years, and Iraq is moving forward in developing the banking system," indicating that "it must take this path if it wants to enter the global banking system in the international community. Countries must modernize their infrastructure and banking in order to obtain the US dollar."
US presence in Iraq
The US ambassador commented on the accusations against her country of helping Israel violate Iraqi airspace to strike Iran last Saturday, stressing that "there are difficult issues in the region, including in Iraq. The United States did not interfere in the attacks launched by Israel on Iran. Iraq is an independent country, and we do not control the country's skies."
Regarding the withdrawal of US forces from Iraq, she pointed out that “the joint speech issued by Iraq and the United States regarding the withdrawal of the international coalition from Iraq within a year is an acknowledgment of the work done by the international coalition and Iraq’s future strategic vision with the coalition. It proves that they have strengthened the security aspect in Iraq and Kurdistan compared to the past 10 years,” indicating that “there is an improvement in the field of security, and there is a desire on the part of the Iraqi government to transform this relationship into another form.”
Romanowski expressed her country's determination to "continue cooperation between Baghdad and Washington to fight ISIS, which still exists, and to enhance Iraqi capabilities," noting that "there are parties that do not agree with that, but we are working with the Iraqi government, and this is a decision issued by both sides together."
She added: "We can help Iraq to be a factor of stability in the region and to achieve its security, stability and sovereignty."
Iraq and the United States of America are linked by a long-term strategic alliance and partnership, the features of which were formed by the "Strategic Framework Agreement" in 2008, which outlined the lines of cooperation in the fields of politics, security and economy, after the war of occupation of Iraq in 2003. While some parties are demanding the end of this strategic partnership, the government is talking about working to build a new agreement, the "360-degree agreement", which is under negotiation and establishment.
What are the reasons for the rise in the price of the dollar in Iraq in recent weeks?
Economic and financial affairs expert, Safwan Qusay, revealed the main reasons behind the recent rise in the dollar exchange rate in Iraq.
In an interview with Al-Jabal platform, today, Monday, Qusay pointed to internal and external reasons behind the noticeable rise in the dollar exchange rate in the Iraqi markets.
Qusay said, "The size of government spending has increased recently during the year 2023-2024, as what is allocated in the budget is higher than Iraq's revenues. The size of spending amounts to (208) trillion dinars, while oil and non-oil revenues do not exceed (160) trillion dinars," indicating that "there is certainly pressure on the value of the Iraqi dinar, and the Ministry of Finance has not financed the deficit by issuing new monetary units or by borrowing internally or externally so far."
The financial expert pointed out that "the increase in the size of public spending contributes to increasing the demand for the informal dollar, especially since many traders request the dollar from the informal market for some imports. The more the Central Bank of Iraq deals with international currencies and the Iraqi banks deal with foreign transfers through different international currencies, and the restrictions on some banks are lifted, these are matters that will facilitate control over the dollar and there will be a decrease in this exchange rate."
Qusay also pointed out external factors that contribute to the exacerbation of the problem, the first of which is the tensions in the Middle East region, and the demand of countries participating in the conflict in the region for the dollar through Iraq.
He stated that "Iraq is still far from the problems occurring in the Middle East region, but there is fear among many Iraqis, and this has pushed them to buy the dollar out of fear of the future, which has contributed to raising the dollar exchange rate in the informal market," adding: "There may be a demand from countries that have entered into the conflict in the region for the dollar through the Iraqi market, and this is the reason for the increase."
The Iraqi government sets the dollar exchange rate against the dinar at 1,320 dinars per dollar, which is equivalent to 132,000 dinars per 100 dollars. However, the Iraqi markets deal with different numbers, as the price of 100 dollars exceeds 150,000 dinars.
Al-Sudani summarizes his government's achievements two years after its formation
Two years after the formation of the government, Al-Sudani celebrates the completion of 62% of the government program
Highlights of the speech of Prime Minister Mohammed Shia Al-Sudani during today’s cabinet session, Tuesday, October 29, 2024, on the occasion of the second anniversary of the formation of the government:
The government’s overall achievement rate of targets in various fields during the government’s term reached 62%.
🔷 We succeeded in prominent and important files, faced difficulties in other files, and were late in some details and files.
🔷 Over the course of two years, we stopped more than once to evaluate the course of work, and we issued 3 reports on the implementation of the government program.
🔷 Our achievement was not limited to one sector, nor to one city or governorate, but rather covered the districts, districts, and city centers.
🔷 The service and engineering effort team was dedicated to completing quick services, and we addressed stalled projects, some of which date back to 2005, through Cabinet decisions.
🔷 The number of stalled projects was (1471) projects. We resumed work on (555) projects for ministries, and the stalled projects decreased to (916) projects.
🔷 We resumed work on (442) contracts and projects at the governorate level, and the ongoing projects amounted to (8934) projects.
🔷 We focused on infrastructure projects, sewage treatment plants and networks, and the provision of drinking water, and until yesterday we included new projects due to population expansion.
🔷 The traffic congestion relief project was one of the most prominent projects in Baghdad, which has not seen a bridge since 1996, despite the expansion.
🔷 Last year, we started road and bridge projects related to the million-person visits, to serve millions of visitors, and the number of traffic accidents decreased.
🔷 We were late in providing some services, such as the water desalination project in Basra, and the required service at Iraqi airports, which is still below the required level.
🔷 We were late in preparing residential plots of land, and it was our obligation to start distributing 500,000 residential plots of land, and land is one of the complex problems that hinder residential projects.
🔷 In health, we opened new hospitals, specialized centers, health centers and primary care, and a large number of hospitals and health centers were rehabilitated.
🔷 In electricity, we achieved the highest production of electrical energy by reaching 27 thousand megawatts, and we started new projects, and opened projects to resolve grid bottlenecks, and others related to the combined cycle and new feeders.
🔷 We have taken an important step in solar energy, and work is underway on 15 projects with a total capacity of 5,720 megawatts.
🔷 At the housing level, we announced important residential cities that will bring about a qualitative shift in allocating housing units with all services to citizens.
🔷 We have made significant progress in school building projects, some of which are lagging behind, such as Project No. 1. This year, we will complete the Iraqi-Chinese agreement projects, and schools have been rehabilitated and restored in all governorates.
🔷 There is a project by the (Iraq Development Fund) that will end the issue of the need for schools according to a new vision related to purchasing the service.
🔷 The National Education Strategy 2022-2031, the Study in Iraq project, and scholarships for studies at reputable universities were launched.
🔷 In the axis of combating poverty, 962 thousand families were covered by social protection, an increase of 85%, which means that 7 million and 600 thousand individuals were covered by social protection.
🔷 130 million food baskets have been distributed monthly since the formation of the government, and over a period of two years.
🔷 We have activated the student grant, school nutrition, and tuition fees for those covered, people with disabilities, and children with diabetes, and added them to social protection and health insurance.
🔷 We targeted multidimensional poverty and poverty alleviation for families below the poverty line.
🔷 Government measures contributed to reducing the poverty rate in Iraq to 17.6% after it was 23%.
🔷 In the file of combating unemployment, the government addressed inherited problems by appointing hundreds of thousands of higher education graduates, contracts, and top graduates, and we launched the (Riyada) initiative for employment.
🔷 Government measures contributed to reducing the unemployment rate in general from 16.5% to 14.4%.
🔷 In combating financial and administrative corruption, we worked at several levels to reform the administrative institutions, and adopted a new philosophy in recovering funds and wanted persons, and achieved numbers in this field.
🔷 In the axis of economic and financial reform, the government has taken steps that constitute structural reforms in which all state institutions have contributed.
🔷 Overall inflation was reduced from 4.9% in 2022 to 3% in 2024.
🔷 We achieved a 6% increase in non-oil revenues, and increased tax revenues for the year 2024 by 23%.
🔷 The amounts collected from electronic payments reached (7.6) trillion dinars, after they did not exceed (2.4) trillion dinars in January 2023.
Highlights of the speech of Prime Minister Mohammed Shia Al-Sudani during today’s Cabinet session, Tuesday, October 29, 2024, on the occasion of the second anniversary of the formation of the government:
🔷 The establishment of the (Iraq Development Fund) represented the most important reforms included in the budget law, and represents a new vision to support the private sector, and we included an article related to granting sovereign guarantees for projects.
🔷 We have achieved a shift in offering investment opportunities and granting investment licenses in the field of industrial and agricultural projects.
🔷 We started localizing the pharmaceutical industry, opening several projects, and reaching 35% coverage of local needs after it was 10%, and it is hoped to reach 85% within 3 years.
🔷 The failure to properly implement the Social Security Law has had a negative impact on the private sector as companies, and has also undermined workers’ guarantees.
🔷 We have taken measures to support an attractive business environment for companies, register companies with tax departments, and provide customs facilities.
🔷 We face challenges at border crossings, despite the reforms and implementation of network connectivity, but the revenues of the crossings have not reached the required level, especially with regard to our crossings in the Kurdistan Region of Iraq, and we need more measures to control them and unify the customs tariff.
🔷 We have been late in developing the tourism sector, and we have not invested in our religious, historical, archaeological and natural sites, despite their importance in supporting the national economy.
🔷 We have the right to achieve self-sufficiency in terms of strategic crops, and we need to work more to implement an agricultural vision according to the available water resources.
🔷 We have made decisions to establish a national mobile phone company, and we are waiting to complete the matter with international companies so that the service will be available and represent additional revenues for the state.
🔷 In the sports sector, there are advanced percentages of stadiums that have been completed and that are important to athletes.
🔷 We announced the Strategic Development Road project, and signed the quadripartite memorandum of understanding with Qatar, the Emirates, and Turkey, and work is ongoing to complete it.
🔷 We work in parallel with companies specialized in the design process for current railway rehabilitation projects, to be a second project until the development road project is built.
🔷 We announced the (Karbala-Najaf Train) and (Baghdad Metro) projects, and we are continuing negotiations with the sectoral entities and the consulting company.
🔷 The water management project with the Turkish side is one of the most important strategic projects that will ensure sustainability in the agricultural sector.
🔷 We have achieved advanced completion rates in the announced projects for the Grand Faw Port, including the docks, the submerged tunnel, the navigation channel, the container yard, and the link road.
🔷 We have reached an agreement with the countries of the international coalition to end the coalition’s mission within a declared time frame.
🔷 We were able to issue a resolution in the UN Security Council regarding the UN mission.
🔷 We face financial challenges through providing cash liquidity, controlling spending priorities, and shifting to a program budget according to the ministerial program.
🔷 We seek to increase revenues, rationalize spending, and digitally transform financial and customs transactions.
🔷 We work to subject all financial transactions to compliance and governance rules.
🔷 The old legislation does not keep pace with the current stage, and it disrupts the process of reconstruction, investment and services.
🔷 The region is going through developments as a result of conflicts, which directly affect the security and economic conditions in Iraq.
🔷 We are in the process of making a ministerial amendment according to performance and work indicators. It is not a political position towards this bloc or this party, but rather a desire to achieve more effective performance to meet the requirements of the stage and the aspirations of citizens.
🔷 We have completed an important entitlement, represented by the provincial council elections, after it was delayed for years.
🔷 The population census is one of the important entitlements that await us.
his speech in arabic
https://www.youtube.com/watch?
OCT 30 24
Rafidain Bank studies establishing an electronic platform for trading government bonds
Rafidain Bank confirmed, today, Wednesday, the establishment of an electronic platform for trading government bonds.
The bank stated in a statement received by Al-Maalouma Agency that it “will sponsor an expanded meeting in cooperation with the Securities Commission and the Iraq Stock Exchange to discuss launching an electronic platform for trading government bonds.”
He pointed out that "the meeting will be sponsored by the Minister of Finance and the Governor of the Central Bank of Iraq."
The Central Bank raises controversy again.. Criticism and discontent over reducing the interest rate
The Central Bank raises controversy again.. Criticism and discontent over reducing the interest rate
The Central Bank of Iraq decided a few days ago to take a decision, the first in about a year and a half, to reduce the interest rate from 7.5% to 5.5%, along with other financial decisions that financial experts said were nothing more than "random and incomprehensible" and could not help the Iraqi economy.
According to a document issued by the Central Bank of Iraq and addressed to banks operating in Iraq, which "Al-Ahd News" reviewed, the Central Bank decided to reduce the interest rate from 7.5% to 5.5%, in addition to reactivating securities (Islamic certificates of deposit and money transfers) according to an annual plan and with two terms: with a return of 4% for a period of 14 days and a return of 5.5% for a period of 182 days, while setting the maximum investment ceiling at no more than 50% of the total private sector deposits at the bank and that the investment ceiling for the bank in a single auction should not exceed (500) billion Iraqi dinars.
The financial and banking specialist, Mustafa Hantoush, told Al-Ahd News, “The Central Bank of Iraq does not set a fixed interest rate on deposits or loans for banks, but rather leaves the matter to the bank’s policy in order to achieve competition.” He added, “However, the Central Bank of Iraq gives interest on the banks’ funds deposited with it in the form of (deposits - capital - Islamic bank deposit certificates - other banking instruments) and also sets the interest on the bonds that the state provides to the public, and thus that interest is considered (an indicator of the average interest rate) for Iraqi banks.” Hantoush adds, “The interest rate is determined by the equation: (interest rate = inflation premium + risk premium), and thus when inflation rises, the interest rate rises and vice versa. As for the recent decision of the Central Bank to reduce the interest rate adopted by it on the banks’ funds held by it, as well as future bonds, from (7.5% to 5.5%) starting from a period of (6) months, this caused a decrease in inflation in Iraq, which means that interest rates must be reduced. He described this step as having determined the possibility of the banking system investing its funds with the Central Bank at an interest of (5.5%) at a rate of (50%) of its total deposits received only.” According to Hantoush, the interest rate was set at 14 days with a 4% return on overnight investment, and 182 days with a 5.5% return, in 6 months.
He added, "With setting a ceiling not exceeding the investment for the bank in a single auction (500) billion dinars, which means giving a high capacity to the single bank to purchase investment instruments offered by the Central Bank with a very high ceiling of 500 billion."
For his part, financial expert Ziad Al-Hashemi stated in an interview with "Al-Ahd News" that "the Central Bank of Iraq is following the steps of the Federal Reserve and Western central banks, and reducing interest rates from 7.5% to 5.5% despite its failure to achieve its monetary goals."
He pointed out that "the major central banks around the world have reduced interest rates after inflation rates fell from 10% to less than 2%, confirming the success of the high interest rate followed by the major central banks during the past two years in curbing inflation, while (in Iraq) the previous interest rates amounting to 7.5% did not succeed in (withdrawing the hoarded cash) outside the banking system, which exceeds 80% of the issued dinar, and did not help in alleviating (high inflation) that the citizen feels with the continued high prices of goods, which the Ministry of Planning is trying to cover up by issuing illogical statements indicating low inflation rates. Al-Hashemi continues that “despite not achieving the required goals of the high interest, and the absence of an urgent and necessary economic need to reduce the interest, and the absence of fears of the Iraqi economy falling into recession, and the absence of a need to encourage spending (which is already high), the Central Bank of Iraq suddenly decided, without clear reasons, to reduce interest rates.” Al-Hashemi considered that “these decisions are incomprehensible and remind us and confirm that there is clear randomness in the decision-making process of the Central Bank’s management, as its decisions are based in many cases on the method of trial and error or reactions or imitating and simulating the decisions of others without studying, and this is a clear and specific weakness in the way this institution works, so it can be said that the decision to reduce interest rates made by the Central Bank of Iraq is merely a (formal procedure) with no reason, and came to create a (fake impression) among the public of the success of the Central Bank’s procedures, just as the Federal Reserve and the Bank of England succeeded in reducing inflation, and this is far from the truth.”
Monetary policy rate and reactivation of securities
Based on the monetary policy orientations to enhance access to targeted inflation rates in a manner that does not conflict with the expected economic growth rates, and is consistent with the policy of developing deposits and increasing credit ratios aimed at targeting projects, relying on following the approach based on data obtained from the banking sector .. For more click here
text of the document
Greetings... Based on the monetary policy orientations to enhance access to targeted inflation rates in a manner that does not conflict with the expected economic growth rates, and is consistent with the policy of developing deposits and increasing credit ratios aimed at targeting projects, relying on the approach based on data obtained from the sector
Population Census... A Pillar of Development To All Licensed Banks
The boiled operations
Monetary policy rate and reactivation of securities
Banker, the Board of Directors of this bank decided the following: Reducing the monetary policy rate to be (55) instead of (7.5). Reactivating securities (Islamic Creativity Certificates, traditional transfers according to an annual plan and two deadlines)
A. 14 days with a return of 4%. B. 182 days with a return of 5.5%.
The maximum investment limit shall not exceed (50%) of the total private sector deposits at the bank, which shall be sent to the Open Market Operations Office via the weekly liquidity management form within the (BSRS) system, where data received two weeks before the auction implementation date shall be approved. In the event that it exceeds
The bank whose percentage is determined above will be deprived of the auction proceeds.
The bank’s investment ceiling in a single auction does not exceed (500) billion dinars. E. For more inquiries, you can contact the office via email (omo.office@cbi.iq).
Attachments 14-day auction plan. 182-day auction plan
With appreciation.
SSF
Stopping electronic payment in Baghdad and returning to cash deduction
Baghdad Today correspondent reported today, Wednesday (October 30, 2024), that electronic payment operations have stopped at all fuel stations in the capital, Baghdad.
Our correspondent said, "Electronic payment operations at fuel stations in Baghdad have stopped and cash deductions have been resumed, due to a malfunction in electronic services and the companies providing the service."
Our correspondent quoted electronic payment users as saying that they were "surprised by the service being stopped and the stations in Baghdad returning to direct manual cash deductions, while others expressed their dissatisfaction with the poor quality of the service and its interruption after the huge amount of promotion for it and the directives to adopt it without controlling its working mechanism, which caused confusion for those who use it."
The Central Bank reveals the size of Iraq's external debt
The Governor of the Central Bank, Ali Al-Alaq, revealed today, Wednesday, the size of Iraq's external debts, while indicating that Iraq has cash reserves estimated at more than 100 billion dollars.
Al-Alaq said in a speech during the second day of the “Miri” Forum held in Erbil, which was followed by the / Al-Maalouma / agency, that “the role of the Central Bank cannot be reduced by looking at the currency selling window only," stressing that "the Central Bank represents a fundamental pillar of the economic and financial pillars in the country."
He added, "Iraq started in 2003 with zero mandates," adding that "foreign currency reserves exceed 140% of the issued currency."
He continued: “We have licensed 16 companies for electronic payment, and the Central Bank is working on licensing digital banks,” indicating that “the Central Bank is establishing a company that will organize electronic payment, using the best technologies and methods, and it has reached advanced stages."
Al-Alaq pointed out: “About 40% of the banks in the world seek to directly stimulate the economy in Iraq,” adding that “the large deficit in the budget comes from the overall increase, which is offset by growth in revenues, especially local ones.”
He explained that "Iraq still depends almost entirely on oil revenues and that the level of cash liquidity during the year has not witnessed any increase," concluding by saying that "the external debt is less than 20 billion dollars."
Economist: Political blocs and figures behind the rise in the dollar exchange rate
Economic expert Qasim Balshan confirmed today, Wednesday, that influential political figures and blocs are behind the rise in the dollar exchange rate.
Balshan said in an interview with Al-Maalouma Agency, “The discrepancy in the dollar exchange rates is a door to corruption, given that there are private banks and companies that deal with the Central Bank of Iraq, and not everyone has the right to buy the currency auction."
He added, "The state did not take any real, actual measures to protect the Iraqi dinar, and all that was circulated were media statements that have no benefit on the ground."
He pointed out that "the smuggling of dollars abroad and the control of the US Federal Reserve, which imposed conditions on the use of the dollar in Iraq, made the exchange rates in contradiction."
He continued: “If there is a real and actual diagnosis that the Central Bank or the governor is at fault in this matter, then he must be questioned,” indicating that there are “political figures and blocs involved in this process.”
Signing of the largest economic memorandum of understanding between Iran and the Kurdistan Region
The Iranian "IRNA" agency reported on Wednesday that an economic memorandum of understanding for joint trade was signed between the "Arvand Free Zone" and the Abadan and Khorramshahr Chambers of Commerce on the one hand, and the Kurdistan Region of Iraq on the other hand .
The “Arvand Free Zone” is located in western Iran, and includes the cities of Abadan, Khorramshahr, and Minushahr (Mino Island), and a place where the Arvand and Karun rivers meet. It is adjacent to Iraq and Kuwait, and has suitable capabilities for land, rail, sea, and air transportation.
According to the Iranian agency, the Arvand Free Zone will constitute one of the major capacities for trade exchange with the Kurdistan Region of Iraq. The “Arvand Free Zone” is one of the largest and most important free commercial and industrial zones in Iran. Through its access to the Karun and Arvand rivers and its proximity to the Persian Gulf and the land and sea borders with neighboring countries, it provides special conditions for the development of trade and investments .
The agency pointed out that this region includes international ports, a modern airport, a network of land and rail roads, as well as advanced industrial and commercial capabilities, which made it a commercial and industrial hub .
Regarding this memorandum, the head of the Kurdistan Region Exporters and Importers Union, Mustafa Abdul Rahman Abdullah, said, “The region’s relations with Iran have been strong since ancient times,” expressing his satisfaction with “the support that Iran provided to the region in difficult times . ”
Abdullah added: "We seek to increase the volume of exchange of goods between Iran and the Kurdistan Region of Iraq," noting that "a large portion of the region's exports and imports are made across the Iranian border . "
Qusay Saddam seized $900 million and loaded it in trucks in 2003 - Central Bank Governor
Racing towards the digital economy
The Governor of the Central Bank, Ali Al-Alaq, said that the lessons are now sufficient for the state to move towards setting a “strict and conservative” oil price in the general budget, to avoid the pressure of declining crude prices, calling for the enactment of a law that sets the size of spending with a specific oil ceiling to ensure its coverage on the one hand, and to ensure the financing of investment projects on the other hand, noting that the three-year budget needs some new tables and amendments in line with the variables of oil prices.
li Al-Alaq, in an interview during the Merry Forum, followed by the 964 Network :
The role of the Central Bank cannot be reduced to the currency selling window and some marginal tasks. It is a fundamental pillar of economic and financial stability in the country. Here we must highlight a number of achievements since 2004 until today, the most important of which is maintaining the general price level, meaning the ability to manage the monetary mass in Iraq, in a way that does not lead to inflation or deflation.
After 2003, we inherited an abnormal situation devoid of any real basis for stability. Our reserves that year were $900 million, and they were seized by Qusay Saddam Hussein and loaded onto a truck. This is documented by dates and numbers. So we started from scratch. The money supply in circulation was only 4 trillion dinars. Today, the volume in circulation exceeds 100 trillion dinars, and our reserves have exceeded 100 billion dollars.
The inflation rate today is 3.8%, which is a typical rate that achieves stability and prosperity. It is an indicator of our ability to manage a monetary mass exceeding 104 trillion dinars, which does not allow pressure on purchasing power, and this is considered the most important factor in monetary and economic stability.
We have an additional mission, as we have to introduce all the tools, systems and entities that we have failed to catch up with the world with during the previous decades, and therefore there is a race against time to move towards the digital economy and advanced payment systems, as we have licensed 16 companies for electronic payment, and we are currently working on licensing digital banks, in addition to achieving advanced stages in establishing a national company for managing payments, and the Central Bank will be a partner in it to enhance it with sufficient support.
As for the reform dimension, we are currently working on two plans to reform government and private banks, which will lead to their restructuring in a way that ensures transparency, governance, and ownership structure in appropriate ways, to be consistent with international standards.
The last dimension of our work, which is not practiced by most central banks in the world, is that we work to stimulate the economy directly through lending initiatives to various sectors. The volume of loans granted to the construction and industrial sectors has reached more than 13 trillion dinars, an amount that exceeds what has been lent throughout the history of the Iraqi state. In addition, we have sought to launch initiatives to lend to small and micro-enterprises, and we have reached advanced stages of establishing a bank specialized in this initiative, and we have named it “Riyada” Bank.
We noticed that the inflation rate in 2023 was 7.5%, as the volume of issued currency jumped from 40 trillion to 100 trillion dinars, meaning that it increased in two years by an amount equivalent to its increase in the previous 18 years, and therefore we decided to withdraw part of the cash liquidity by raising the interest rate and attracting trillions of dinars from the market, although this measure is costly, but the Central Bank does not base its policies on profit and loss, but rather on the basis of performing its main function of controlling the market.
The increase in public debt is a result of the budget deficit, which is the result of increasing spending without increasing revenue. Over time, spending has become inflexible and cannot be reduced, such as the salary bill and others, and this causes a structural imbalance in the Iraqi economy.
The idea of the three-year budget is in effect in many countries of the world, and we decided to adopt it in order to ensure stable implementation, although it requires the issuance of some tables and amendments to address some variables, such as oil prices, for example.
The fiscal year will end and the oil price rate remains within our estimates in the budget, but the lessons have become sufficient for us to set a conservative oil price so that the state does not face economic pressure with the fluctuations of the global oil market. Therefore, a law must be passed that sets the share of expenditures from oil revenues with a certain ceiling, in order to ensure that it is covered on the one hand, and to ensure that the financing of investment projects that are exposed to blows with every drop in oil prices is not disrupted in order to cover the expenditure ceiling.
Iraqi investment market
Member of the Iraqi Businessmen Union Mohammed Shaker confirmed that investment occupies specialized international companies globally and locally, and this reflects the importance of the Iraqi labor market.
He said that the talk about investment coincides with the inevitability of diagnosing the reasons for the decline in investments in Iraq, despite the limited investments, but they are below the level of ambition. Here we must look for the reasons for the lack of specialized international companies coming to Iraq, although they realize that the Iraqi market is important and has a quality that is not available in most countries of the world.
Shaker pointed out that most of the investment projects that change the reality of the Iraqi economy are on hold, waiting for the availability of a suitable environment for work at this time when we are in dire need of real investments, and for everyone to work patriotically to support the national economy.
International partnerships within the Iraqi labor market
Hadi Handas, a member of the Baghdad Economic Forum, described international partnerships within the Iraqi labor market as an important task that improves the reality of the national economy, moves the national labor market and makes it achieve integration with specialized global markets.
Integrated Gas
He pointed out that the agreement of Qatar Energy Company with “Total Energies” in the solar energy project affiliated with the Integrated Gas Growth Project in Iraq, is an important step and carries economic and strategic positives in more than one sector.
Local Partnerships
Handas indicated that the Iraqi market accommodates many international partnerships and local international partnerships, and in all cases and by all accounts we find the matter beneficial to Iraq and achieves gains at all levels, and we hope that such experiences will be repeated within the Iraqi market.
Labor Market
He stressed the inevitability of choosing solid companies to work within Iraq in all sectors without exception, especially those that have a history and are well-respected for their reputation within the global labor market, as such companies will accomplish as required and will not be affected by any temptations at the expense of performance.
Qatar Energy had previously announced the signing of an agreement with TotalEnergies to partner in the solar energy project of the Integrated Gas Growth Project in Iraq.
Solar energy
According to a statement issued by the company, under the agreement, which is subject to the approval of the relevant authorities, Qatar Energy will acquire a 50% stake in the solar photovoltaic project, while TotalEnergies will retain the remaining stake.
The statement explained that this strategic project, which will be one of the largest projects in the world, will include two million high-efficiency bifacial solar panels installed on single-axis trackers, and will be able, upon completion, to provide up to 1.25 gigawatts (at peak) of solar-generated electricity to the electricity grid
in Basra.
Call to establish a digital gold market in Iraq
The economic and financial expert, Dr. Saif Al-Halfi, called for the establishment of a digital gold market in Iraq, the establishment of which requires cooperation between the Central Bank of Iraq, the Securities Commission, and the Iraq Stock Exchange, as it provides Iraqi investors with the opportunity to participate in the global gold market, which attracts additional investments to Iraq, and also enhances cooperation between the Iraqi banking system and international financial institutions.
Al-Halfi said that the Central Bank can issue digital gold bullion in different weights: 1 gram, 10 grams, 100 grams, approved by the government. These digital bullion can be traded on the Iraq Stock Exchange in the same way that stocks or bonds are traded, and through the market’s financial intermediaries system, where investors can buy bullion using local currencies or convert them into foreign currencies.
He added that the market can be linked to global gold prices and currency exchange rates, which enhances transparency and interaction with the global market. A platform similar to the Forex markets can also be used to trade digital gold inside Iraq in the Iraq Stock Exchange, noting that gold prices will be determined according to global exchange rates for gold and foreign currencies. This will allow investors the opportunity to speculate on gold price fluctuations and link them to changes in global currency prices, which increases profit opportunities and creates many job opportunities.
Regarding the economic benefits, Al-Halfi said: Through this market, liquidity is withdrawn from the banking system, and the digital gold market can act as a tool to withdraw cash liquidity. Instead of keeping money in banks, investors may prefer to buy digital gold, which is a safe asset that maintains its value, protects the investor’s money from high inflation rates, reduces the money supply, which is the goal, and limits inflation.
He pointed out that the digital gold market contributes to diversifying the Iraqi economy, away from the traditional reliance on oil. The market can be a platform to encourage financial innovation and develop new investment tools, especially exploiting the opportunities of the Faw Port entering operation next year, and what it provides in terms of a large base for investors, especially individuals and companies, as well as the goal we seek on the path of development.
He pointed out that establishing a digital gold market requires a strong technical infrastructure, including secure electronic platforms and clear regulatory laws to protect investors’ rights. This will increase job opportunities, the ability to diversify and innovate, and the emergence of a start-up culture.
Al-Halfi explained that the digital gold markets aim to enhance transparency and ease in gold trading, and provide investors with a real opportunity to work, trade and speculate on gold prices without the need to own actual gold. When the investor wants to convert gold into bullion or jewelry, these foundations allow him to convert digital gold into bullion while paying mining and crafting fees. All of these products create real and comprehensive investment business opportunities, which creates and enhances a flexible and innovative investment environment in Iraq.
Gold is one of the financial assets that has always been a safe haven for investors, especially in times of economic, political and regional turmoil. Here, with the global digital and financial development, new markets have emerged for digital gold trading, where gold can be easily bought and sold through electronic platforms. In light of these developments, it is possible to create a market for digital gold trading in Iraq, especially with the government’s trend towards establishing digital banks and strengthening electronic payment systems, especially the use of electronic payment cards.
Challenges and opportunities
The investment environment in Iraq faces major challenges that have confused local investment and created a state of hesitation among foreign investors, leading to local and international capital refraining from long-term projects, and foreign investors turning to real estate investments, which guarantee quick profits and lower risks.
The investment climate, as is known, is formed as a result of economic, social, political, legal and financial factors. When these elements are present in a harmonious and stable manner, the environment becomes attractive for investment. In Iraq, the challenge lies in achieving this harmony, as investments are hindered by several factors, including economic instability resulting from low interest rates and high inflation rates.
Legally, the lack of legislative stability and the disparity between old and new laws pose major challenges, as this is reflected in investor confidence. In addition, the judicial system is witnessing slow procedures, especially with regard to investment disputes, as these disputes often rely on civil courts that do not take into account the specificity of investment relations. Despite the existence of an arbitration system, the absence of competent arbitration cadres and the lack of judicial confidence in the outcomes of arbitration increase the complexity of this process.
To improve the investment climate and make it attractive to foreign capital, bold steps must be taken in legislation and policies, the most important of which is expanding the right to own real estate for foreign investors to include all investment projects and not just the housing sector, and simplifying the procedures for granting investment licenses, and placing them under the authority of the Investment Authority alone, without the need for the approval of other administrative bodies.
Improving the investment climate requires lifting restrictions on investment in banks and insurance companies, given the stimulating role these two sectors play in the investment process, in addition to amending the sanctions system for investors, in a way that ensures transparency and reduces the obstacles facing investors.
Iraq seeks to become a global investment destination, benefiting from its vast natural and human resources. However, achieving this goal requires a stable and attractive legal and economic environment, capable of competing with other investment destinations in the region and the world.
The serious movement that we are following by the government to improve the investment environment in Iraq, and part of it the legal detail, represents an important step on the road to reviving investment in Iraq, and attracting local and international efforts, with what it possesses of advanced technology and capital, to the field of the Iraqi economy.
Reactivation of securities
Deputy Governor of the Central Bank, Dr. Ammar Khalaf, said that the bank is looking forward to increasing credit rates aimed at targeting projects, as well as reactivating securities represented by certificates of deposit and traditional transfers by banks.
He added on the sidelines of a seminar on "Monetary Policy Rate and Reactivation of Securities" that the seminar clarified the mechanism and directions of monetary policy in enhancing access to targeted inflation rates in a manner that does not conflict with economic growth rates, in addition to developing deposits. It is worth noting that the seminar was organized by the Association of Private Banks, in cooperation with the Central Bank of Iraq, to raise awareness about "Monetary Policy Rate and Reactivation of Securities", with the attendance of a number of representatives of government and private banks.
The private sector has begun a new phase
Dr. Murtadha Al-Khafaji, a member of the Iraqi Businessmen Union, stated that the Iraqi private sector has begun a new phase that is different from the previous one, and it has become possible to rely on its capabilities to implement projects.
Al-Khafaji said: The projects implemented by the Iraqi private sector indicate the potential of local effort, which has become comparable to global effort, as local capabilities have been developed during the last decade. He added that Iraqi human resources have gained a lot of experience, through interaction with global expertise, which has worked in more than one economic aspect. He pointed out that national companies must occupy the appropriate place within the local labor market.
