IMF praises positive developments in Iraq in financial and banking aspects
The International Monetary Fund praised, on Wednesday, the positive
developments witnessed by Iraq in the financial and banking aspects .
The video for this blogpost is below here:
A statement by the Presidency of the Republic received by "Mil" stated that "President of the Republic, Abdul Latif Rashid, received today, Wednesday, at his residence in the Azerbaijani capital, Baku, the Director of the International Monetary Fund, Kristalina Georgieva, as part of His Excellency's participation in the United Nations Climate Conference (COP29)."
He added, "During the meeting, the cooperation relations between Iraq and the International Monetary Fund and ways to enhance them in the context of supporting the development path in Iraq were reviewed. During the meeting, His Excellency the President of the Republic stressed Iraq's endeavor to implement integrated programs and plans to stimulate the economy and support the financial and banking reform process ."
Rashid thanked the International Monetary Fund for what it did to support Iraq's budget during the crises it faced and overcame, stressing the "importance of completing coordination and joint cooperation in order to continue efforts to combat corruption, support investment, and develop the private sector, leading to building a strong, cohesive, and recovering economy ."
For her part, Kristalina explained that "the primary mission of the International Monetary Fund is to provide support to countries' budgets during crises, and this is what the Fund did with Iraq during a difficult period, but it overcame it," praising "the positive developments that Iraq witnessed in the financial and banking aspects and in the field of stimulating the investment environment, which contributed to a decrease in the inflation rate, growth in the non-oil GDP, and implementation of controls that contribute to combating money laundering."
Financial inclusion and banking restructuring
The current government 's interest in the banking sector has become striking to the point that it can be said that the government is actually undertaking the "financial inclusion program, whose founders aim to deliver services to all regions of the country and include all societal and age groups with these services with the aim of encouraging all citizens to open bank accounts, and then withdraw the cash mass hoarded by the public, which the Central Bank estimates at about 70 percent of the issued cash, and circulate it in the banking arena activities, with the aim of raising credit rates and contributing to creating real development.
On this basis, the Prime Minister's Office's statement came in this regard recently, which referred to some of the challenges facing the efforts to reform the financial and banking system, as one of the priorities of the government program, while the statement identified a number of steps with the aim of confronting these challenges and ensuring the strengthening of confidence in the financial and banking sectors, facilitating the process of economic development, and raising indicators of financial inclusion.
However, the clear intersection between the government's direction and the banking restructuring program indicates a number of observations that are directly related to these steps, such as the contradiction between what was stated in the content of these government steps, and the banks' procedures regarding restructuring, as some government banks have taken steps The issue of restructuring, which was apparently limited to the merger of large numbers of branches of operating government banks, included branches on the outskirts of governorate centers and in the middle of them, which undermined the service area in which these banks operate. This completely intersects with the financial inclusion program, one of the tools of which the statement specified is “providing banking services to different segments of society, including districts and sub-districts in villages and rural areas.”
The steps mentioned in the statement, which are in the process of intensifying efforts, did not indicate the issue of the conditions previously set regarding raising the capital rates of banks to about 450 billion dinars by the end of December 2024, which obligated all private and government banks in this regard, otherwise these banks will be merged or liquidated, if we know that some government banks whose many branches have been merged still have a large number of branches, and these branches still provide their daily services to large numbers of the public, while they are exposed to merger or liquidation, even some administrations are unable to make some decisions related to developing services, because they realize that the fate of their banks will end in merger or liquidation, and this is what makes the intersection clear in the government's direction regarding developing the performance of banks and expanding the scope of services with the restructuring program implemented by the relevant authorities.
Prime Minister concludes visit to Kurdistan Region, returns to Baghdad
Prime Minister Mohammed Shia al-Sudani returned to Baghdad after concluding his visit to the Kurdistan Region.
The Prime Minister's Media Office stated in a statement received by the Iraqi News Agency (INA), "Prime Minister Mohammed Shia al-Sudani concludes his visit to the Kurdistan Region of Iraq, which included the cities of Erbil and Sulaymaniyah, and returns to the capital, Baghdad. The visit included the following: - Meeting with
the Prime Minister of the Kurdistan Regional Government, Masrour Barzani.
- Meeting with the President of the Kurdistan Region of Iraq, Nechirvan Barzani. -
-Meeting with the President of the Kurdistan Democratic Party, Masoud Barzani.
- Meeting with the President of the Kurdistan Justice Group, Ali Babir.
- Meeting with representatives of the forces and components that won the elections for the Parliament of the Kurdistan Region of Iraq.
- Laying a wreath of flowers on the tomb of former President Jalal Talabani in the city of Sulaymaniyah.
- Meeting with the President of the Patriotic Union of Kurdistan, Pavel Talabani.
- Meeting with the President of the New Generation Movement, Shaswar Abdul Wahid.
- Meeting with the Secretary-General of the Kurdistan Islamic Union Party, Salahuddin Baha al-Din.
- Meeting with the President of the National Position Movement, Ali Hama Saleh.
nov 11 2024
Private banks' capital in Iraq increased by 7.3%
The Central Bank of Iraq announced, on Monday, that the capital of private banks increased by 7.3%.
The bank said in a report seen by Shafaq News Agency that it recorded an increase in the total capital of private banks operating in Iraq during the first quarter of this year, by 7.3% to reach 19.2 trillion dinars, compared to 19.7 trillion dinars for the same period last year.
He pointed out that the capital of private banks operating in Iraq increased by 6%, while the capital of government banks increased by 11.1%.
He added that the contribution of private banks' capital amounted to 73.2%, while the contribution of government banks' capital amounted to 26.2%.
The bank explained that deposits in the first quarter of the current year increased by 1.2% to reach 123.7 trillion dinars compared to 122.2 trillion for the same period of the previous year, with current deposits increasing by 3.1% as a result of the increase in current expenditures from wages and salaries of employees in the public sector, while savings deposits decreased by 3%, and fixed deposits decreased by 10%.
nov 12 2024
Concerns over Trump's policies on the Iraqi economy.. Does Baghdad have a plan to protect the dinar?
Central Bank Advisor Gives Reassurance
The eyes of those interested in economics are turning to Washington amid questions about the future of the Iraqi dinar and the possibility of the return of sanctions, especially with Donald Trump’s victory in the US presidential elections and its potential impact on global monetary policies. This raises two questions in Iraq: Will Trump’s victory exacerbate the dinar crisis? Or is the Iraqi government capable of managing this thorny issue?
Donald Trump's victory in the US presidential elections has raised concerns about the impact of US monetary policies on emerging economies, as Iraq is among the countries most affected by fluctuations in the dollar exchange rate, given its heavy reliance on the US currency in foreign trade and monetary reserves .
Economic analysts believe that Trump's return to the White House may lead to more stringent policies towards the Middle East, which may include imposing new sanctions or rearranging economic relations, which may exacerbate pressure on the Iraqi dinar and make it more difficult to provide dollars in the local market .
Precautionary measures
Economic expert Mustafa Hantoush says, “American monetary policies regarding its dealings with Iraq cannot be changed when any president changes, as plans are always long-term, especially since Baghdad and Washington are linked by the Strategic Framework Agreement.”
The economic authorities responsible for the dollar file, according to Hantoush, are required to develop plans to prevent the dollar from being sanctioned, which will allow the United States to reduce the restrictions imposed on Iraq in this regard .
In an interview with the "Al-Jabal" platform, Hantoush added, "The Central Bank has failed miserably in controlling the dollar prices in local markets," indicating that "the parallel market that emerged in 2022 now controls the exchange rate."
Hantoush points out that "the Central Bank spends millions of dollars on travelers, most of which goes to the black market," calling on "the Central Bank to develop a plan to address errors in the parallel market instead of arresting and harassing exchange office owners."
Iraq relies heavily on oil revenues, which are calculated in dollars, and therefore any changes in US policy towards the region could directly affect its cash reserves and its ability to stabilize the exchange rate, according to economic experts .
According to a previous statement by the "Al-Jabal" platform, the Central Bank owns about $115 billion, 140 tons of gold, in addition to $43 billion in central treasury bonds, and $36 billion accumulated in savings in the Federal Reserve deposited in (JP Morgan).
Will the dollar rise to 2000 dinars?
In this regard, the advisor at the Central Bank of Iraq, Mahmoud Dagher, told the “Al-Jabal” platform, “Donald Trump’s victory in the US presidency does not affect the monetary policy (dollar) for Iraq, as Washington has institutions such as the Treasury and the Federal Bank that are responsible for such files.”
According to Dagher, the issue of the dollar rising to prices of 200,000 dinars for every 100 dollars, as is being promoted in the media, cannot happen unless Iraq enters into a war, as is happening in Lebanon, Palestine, and Iran .
Dagher added, "The current government, according to the data, is capable of managing the dollar file, unless Iraq enters an economic emergency, and therefore it is absolutely impossible to control this file," indicating that "the reliance now is not on the American side regarding the dollar, but rather the reliance is on the Iraqi administration to manage the dollar issue."
Dagher concluded his speech by saying, "Any increase in exchange rates in local markets will cast a shadow on the living conditions of Iraq in terms of rising prices and declining purchasing power in all governorates."
On February 7, 2023, the Iraqi Council of Ministers approved the decision of the Board of Directors of the Central Bank to adjust the exchange rate of the dollar against the dinar, equivalent to 1,300 dinars per dollar, after it was 1,480 dinars per dollar, which, according to observers, caused a significant decline in the value of the Iraqi dinar in the markets .
Under the new measures, Iraqi banks are now required to submit dollar transfers on a new online platform with the Central Bank of Iraq, which is then reviewed by the Federal Reserve .
Trump's Upcoming Policies
Meanwhile, Ahmed Saddam, an economic researcher, believes that “Trump’s victory will have an indirect impact on the dollar exchange rate,” indicating that “this matter will become clear after the president-elect officially takes over the administration at the end of January of next year, 2025.”
This is embodied in Trump's statements about Iraq. If his position is supportive of the government, it will help stabilize the dollar exchange rate, in addition to the US President's promises to end the wars in the region, which will also positively affect the exchange rate , according to what the economic researcher says.
During his interview with the "Al-Jabal" platform, Saddam believes that "the most expected scenarios are towards ending the crises, and therefore it is difficult to raise the dollar exchange rate to 200,000 dinars."
The dollar exchange rate is rising in Iraq due to the fragility of the economy and the large volume of imports, especially from countries whose transactions are not settled through the central bank platform, such as Iran and Syria. The volume of Iraq’s trade with Iran is estimated at $25 million per day, financed from the parallel market, according to Saddam’s statement .
Saddam continues, saying, “Iraq is affected by the rise in the dollar exchange rate through the rise in the prices of imported goods, even if they are settled at the official price of the Central Bank. Most traders display their goods according to the exchange rate in the parallel market.”
He points out that "the Iraqi government cannot control the dollar exchange rate in the short and medium term, but the government can control exchange rates in the long term if it can stimulate local investment, raise the level of non-oil production and reduce imports."
The Wall Street Journal reported last year that the Iraqi currency lost about 10 percent of its value, after procedures that were unclear to many, related to imposing compliance rules on the dealings of the Central Bank of Iraq with currency traders regarding the US dollar .
Parliamentary Finance: 2025 Budget Aims to Achieve More Economic Stability
The Finance Committee revealed that the government has begun preparing the budget schedules for next year 2025, while indicating that the desired goals are to achieve development and increase non-oil revenues, in addition to achieving more economic stability for the country.
The head of the committee, Atwan Al-Atwani, said in an interview with “Al-Sabah” followed by “Al-Eqtisad News”, that “the government has begun preparing the infrastructure for the 2025 budget and has determined the requirements for reviewing this budget, as we look forward to these tables arriving next year or perhaps some of the items that the government needs to complete the requirements for their implementation, indicating that the goals set and desired from this budget are to achieve development, increase non-oil revenues, and search for means for clear economic stability.”
Al-Atwani added, "The operating budget has begun to extend over the investment budget, and this burdens the budget and makes it limited in its set objectives. Therefore, from now on, we must search for additional resources and achieve non-oil revenues that can provide stability to the economy," indicating that this matter led to "our move towards rationalizing consumption because it is an important matter."
Regarding the digital transformation process, the Chairman of the Finance Committee believes that this matter is “an essential structure for achieving a significant and noticeable increase in non-oil revenues, and all of this will be included and solutions sought for it in the 2025 budget.”
The head of the Finance Committee also explained that "the budget deficit may be the same as in 2024 because the government has been paying off its foreign loans, and in return, investment projects have been achieved and entered service, and there are other projects being implemented that have had a noticeable impact on the budget and its current expenditures."
The head of the committee continued, saying: “The government has started financing projects in the governorates with a second batch that reached 400 billion dinars for all governorates, and the same is true for financing some ministries to achieve their goals,” noting that “the financing batch during the coming months will be large and in line with what the ministries and governorates need, given that there are projects that these ministries and governorates have started and the governorates and ministries will be required to pay their financial requirements, especially towards private sector companies.”
Unprecedented" .. Iraq prepares to launch a group of investments worth a quarter of a trillion dollars
Iraq is preparing to launch a wide range of projects with the aim of attracting investments worth up to a quarter of a trillion dollars over the next two years, in an unprecedented move in the country.
The package of investment opportunities includes projects in the fields of renewable energy, industrial and agricultural cities, and railway networks, in addition to the education, communications, tourism and entertainment sectors, according to the head of the National Investment Commission, Haider Makiya.
In an interview with Asharq Al-Awsat, Makkia revealed that the authority has completed all the necessary requirements for 103 investment opportunities, in addition to major future projects, and “it is possible that within the next two years there will be funds flowing in the amount of about 250 billion dollars” to Iraq.
This package comes amid the National Investment Commission’s activity to revive dozens of projects that have resumed work, in addition to reactivating others, and addressing the obstacles facing investors with various sectoral bodies. According to the head of the commission, “the number of stalled projects in all of Iraq has reached 249 projects.”
The National Investment Commission was established in 2006. Since then until the end of 2022, the volume of investments flowing into Iraq did not exceed $35 billion. However, after implementing administrative and technical reforms and setting controls to facilitate the investment process, the volume of investment licenses granted increased to $69 billion by last June, according to Makiya.
Commenting on the statement of the Iraqi Prime Minister, Mohammed Shia al-Sudani, in late October, that “the volume of investment for the year 2024 reached $100 billion,” Makiya explained that “that number is correct if we add the $69 billion flowing from the same year with other strategic projects such as the Baghdad Metro project and the (Najaf-Karbala Metro) project, the number reaches $100 billion.”
His advisor: Al-Sudani's visit to Kurdistan focuses on these files
The Prime Minister's Advisor, Subhan Mala Jiyad, confirmed that the upcoming visit of Prime Minister Mohammed Shia al-Sudani to the Kurdistan Region will focus on the pending files between the center and the region and the process of forming the government.
In a television interview seen by Al-Maalouma Agency, Jihad said, “The visit is important and comes at a very necessary and sensitive time for Iraq and the Kurdistan Region in general, especially since Prime Minister Mohammed Shia al-Sudani was able to establish a strong relationship based on mutual trust between the center and the region during the past two years of the Iraqi government’s term.”
He added, “This relationship today has become a point of pride, whether in the center or in the region, and is built on mutual trust, frankness and transparency. Therefore, this visit comes in the context of this issue and in the context of resolving the pending problems, if there are pending problems between Baghdad and Erbil, and also between the parties of the region, as it encourages shortening the time in forming the next regional government.”
He continued, “There will be a meeting between the Iraqi Prime Minister as well as with the leadership of the Patriotic Union of Kurdistan in Sulaymaniyah, and certainly one of the main topics currently being discussed is the issue of forming the Kurdistan Regional Government and helping to form it as quickly as possible."
Al-Sudani's advisor pointed out that "the center needs a harmonious and strong regional government, especially in light of the good and balanced relationship between the region and the center, because the center also needs this government to be in a way that helps develop the relationship."
Central Bank of Iraq announces progress in dollar control procedures
The Central Bank of Iraq announced progress in monitoring foreign transfers and cash dollar sales and providing protection for the banking and financial sector from the risks of money laundering, following the ongoing discussions of the Central Bank of Iraq with the Federal Reserve and the US Treasury Department.
The bank's governor, Ali Al-Alaq, said in statements to Al-Hurra website that "the ongoing quarterly meetings with the Federal Reserve and the US Treasury Department within the framework of organizing operations and coordination between the two sides, which have close relations, led to an agreement on procedures and formulas that are consistent with best practices and international standards, the latest of which was the plan related to organizing foreign transfer operations by rebuilding them according to new standards and methods."
Al-Alaq revealed that Iraq has achieved 95% progress in terms of monitoring procedures for foreign transfers and cash dollar sales, and providing protection for the banking and financial sector from the risks of money laundering operations.
In July 2023, the US Treasury imposed sanctions on 14 banks, and months before that, similar sanctions were imposed on 4 other Iraqi banks after they were accused of money laundering.
The Iraqi government, through the Central Bank of Iraq, has been continuing its negotiations for about two years with the US Treasury Department to lift sanctions on these banks, all of which are private banks.
Jamal Kocher, a member of the Iraqi Parliamentary Finance Committee, confirms that the majority of the sanctioned banks are private banks that represent fronts for political parties with which the United States has stopped dealing.
Koger explained to Alhurra that “the US Treasury imposed sanctions on these Iraqi banks for their involvement in practices that fall under money laundering, money smuggling, and suspicious transactions. In return, the owners of these banks are pressuring the government to lift the sanctions on them, but I do not think that the United States will yield to these pressures. On the contrary, it is adamant about its position, and I do not think that without changing the behavior of these banks, America will abandon these sanctions and their imposition.”
Koger points out that the American pressures on the Central Bank of Iraq will not be eased unless there are changes in the behavior of these banks, calling on these banks to fully implement the conditions required by the US Federal Reserve in terms of transparency, clarity, and commitment to US sanctions on some countries. He said, “Any bank that deviates from these obligations will be subject to US sanctions, and measures will be taken against it.”
The number of banks in Iraq is about 79 banks, 8 of which are government banks, and one digital bank, while the banking sector suffers from a weakness in providing modern and advanced banking services.
For about two years, the Iraqi government has been seeking to digitize financial services, correct and rectify financial policy, enhance financial inclusion, keep pace with technological development, and restructure the banking sector in the country, which has not yet shaken off the dust of the political, economic, and security crises that have plagued it for decades.
Netanyahu: We don't want war with Iran
Days after he discussed the Iranian file with US President-elect Donald Trump, Israel commented on relations with Iran.
"You don't want war"
Israeli Prime Minister Benjamin Netanyahu stressed today, Tuesday (November 12, 2024), that Tel Aviv does not want war.
He added in a direct message, which he said was to the Iranians, that Israel does not want war with Iran.
Netanyahu also continued to appeal to the Iranians not to lose hope, he claimed.
This came after Netanyahu claimed a few days ago that he was being subjected to a violent campaign by Iran and what he called "enemies of Israel."
Last Sunday, the Israeli Prime Minister described the recent suspicions surrounding his office as a “violent and systematic campaign aimed at undermining the country’s leadership,” he claimed.
Netanyahu also attacked the media, law enforcement agencies, members of the government and the security cabinet, claiming that Iran and what he described as Israel's enemies benefited from leaks from the Israeli negotiating team in the prisoner exchange file.
This came at a time when Israel has been conducting several investigations for days into the behavior of Netanyahu's inner circle during the war on Gaza.
Investigations are being conducted into three files: the first concerns leaking state secrets for political gain, the second concerns violating established protocols, and the third concerns blackmail.
mutual blows
Last month, Israel carried out its first officially acknowledged strikes in Iran, targeting missile factories and other sites near Tehran and in the west of the country, in response to an attack launched by Iran on October 1 on Israel.
While Iran has repeatedly warned, through a number of its officials, over the past period of the expansion of the conflict between Israel and Hezbollah in Lebanon, and Hamas in the Gaza Strip, into a more comprehensive and broader war in the region, especially after the mutual strikes between Tehran and Tel Aviv.
Tehran also vowed to respond to the Israeli air strike that targeted three military sites inside the country late last month, and Iranian Supreme Leader Ali Khamenei confirmed that the response would be harsh.
Iranian Foreign Minister Abbas Araghchi later hinted that the response would be calculated and precise at the appropriate time and place.
While the United States warned against this response, stressing its inability to curb Israeli responses, according to a number of American officials.
Gold reserves boost confidence in national currency
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Baghdad: The pillar of the emirate
Gold plays a vital role in the monetary reserves of countries for several reasons related to financial stability, hedging against economic risks, enhancing confidence in the national currency, as well as being an effective tool for hedging against inflation. This prompted the Central Bank of Iraq, on several occasions and in successive years, to increase its gold reserves, which reached 148 tons and 305 ounces.
Regarding the reason that prompted banks to rely on the yellow metal and nothing else, financial expert Mahmoud Dagher explained to “Al-Sabah” that the reason central banks, including the Central Bank of Iraq, increased their purchases of monetary gold is because it is suitable as a reserve compared to industrial gold, indicating that the Chinese Central Bank and the Indian Reserve are among the largest buyers of gold in the world.
Total reserves
Dagher added that the Central Bank of Iraq has increased its gold holdings more than once during the past two years, the last of which was in the first quarter of 2024, until the total gold reserves reached 148 tons and 305 ounces after the last deal in May 2024 by 2 tons and 644 ounces.
Bank assets
He explained that although gold is not the best asset for generating returns when investing compared to currencies, deposits and securities that are permitted to be acquired within the assets of central banks, it is a haven for balance between other assets whose values are affected by the nature of the economic cycle (recession and inflation), noting that the price of gold decreases during recession and increases during inflation, reflecting its balancing role.
Global trend
He added that gold is also a haven when currencies fluctuate sharply against each other, as happened in the last two years for the ruble, yuan and rupee, and thus reduces the impact of what is called currency risk, pointing out that the Central Bank of Iraq did not deviate from the global trend in buying gold despite the rise in its price accompanying the global wave of inflation that hit major economies until it approached 10%; because the rule of purchasing assets by central banks is based on the principle of buying the asset when its price falls in the hope of selling it when it rises, which did not happen with gold because expectations during the last two years were towards an increase in gold prices in addition to the continued significant fluctuation of currencies among themselves.
Avoid inflation
For her part, the economic affairs specialist, Dr. Ikram Abdul Aziz, said that Iraq is the fourth Arab country in possessing large quantities of gold as an element indicating the soundness of the Iraqi economy, indicating that gold and hard currency reserves become a supportive means and an important framework for hedging and avoiding inflation and rising prices.
Abdul Aziz added, in an interview with "Al-Sabah": Gold and foreign currency work to preserve the value of money and the resulting interest; therefore, countries seek to own large quantities of gold, noting that owning large quantities of gold reserves in light of the current fluctuations, geopolitical changes and the situation of the Iraqi economy is a safe haven to preserve value and hedge against inflation.
Development paths
She explained that the presence of large quantities of gold at the Central Bank of Iraq is an important element in limiting dollar control and reducing instability, noting that Iraq achieved this increase in its gold reserves to serve development paths.
She added that the Central Bank of Iraq has a variety of reserves, including gold, whose stock is an effective means and a basic pillar for maintaining purchasing power, stressing that the presence of strong reserves and their diversity in the investment portfolio of the Central Bank of Iraq is a basic pillar and a factor that limits the rise in prices and hedges against inflation, and thus confidence in the existing economic system is achieved.
"Thousands of them are suspended" .. Draft laws challenge the remainder of the life of the current parliament
Al-Aqabi said, during his hosting in the {Free Talk} program broadcasted by Al-Furat satellite channel this evening, that: "We have a problem in the public authorities of the Iraqi state and it is concentrated in the legislative authority in which the form of the political conflict crystallizes and is in the sight and hearing of the public."
He added, "The outcomes of the electoral process since its formation until today do not match the size of the challenges we are experiencing today, especially in parliament, and the political forces do not follow up on their members in the legislative house and there are fundamental problems and important legislation that requires laws of high quality in terms of substance and content."
Al-Aqabi explained that "we have thousands of laws that are not legislated or need to be amended or cancelled and all these challenges go back to competent figures and the internal system must be activated, and Parliament Speaker Mahmoud Al-Mashhadani is supposed to play his pivotal role, especially with regard to the work of parliamentary committees and independent bodies."
He continued, "The vast majority of members of the House of Representatives do not read the budget law and quotas cannot be bypassed, but the most competent must be chosen, while the real estate law has not been presented in detail in the House of Representatives."
Al-Aqabi continued, saying, “According to the statement of Prime Minister Mohammed Shia al-Sudani, there is a desire to change a number of ministers. As for the leaks, some of them were made through simple eavesdropping devices, and others show a political aspect. This is a disregard for the issue of corruption, which makes them public actions that do not require supernatural abilities to uncover them. The reason is that whoever feels safe from punishment misbehaves.”
Nov 13 2024
Al-Sudani and Masrour Barzani confirm resumption of Kurdistan oil exports
Prime Minister Mohammed Shia al-Sudani and Kurdistan Regional Government Prime Minister Masrour Barzani discussed today, Wednesday, the differences and outstanding issues between Erbil and Baghdad, and stressed the need to resume Kurdistan oil exports as soon as possible.
Al-Sudani had arrived earlier this morning in Erbil, the capital of the Kurdistan Region, and was received by the Prime Minister of the Region.
Upon his arrival, the two sides held a meeting, which the Prime Minister began by congratulating the Prime Minister on the success of the Kurdistan Parliament elections, noting that political stability in the region is an essential part of the pillars of stability in all of Iraq.
The Prime Minister also stressed the importance of forming a new government in the region, in a way that enhances the current levels of cooperation between the regional government and the federal government, according to a statement issued by the regional government.
A statement issued by Al-Sudani's office stated that the joint files between the federal government and the region were discussed, most notably the efforts to resume oil exports from the region, and the emphasis on the importance of organizing them in a way that achieves the aspirations of citizens throughout the country, in addition to the importance of implementing the Federal Court's decision regarding the salaries of government employees in the region.
Mr. Al-Sudani pointed out the necessity of maintaining political stability in the region, and that it is an essential part of the pillars of stability in Baghdad and all of Iraq, stressing the necessity of forming a new government in the region, where His Excellency expressed the federal government’s readiness to provide assistance in this file, in addition to the importance of continuing the current levels of cooperation between the regional government and the federal government at the national level.
According to a statement by Al-Sudani's office, the preparations for conducting the population census were discussed, as well as the need to exert maximum effort to ensure its successful completion, especially after settling the technical aspects with the Statistics Authority in the Kurdistan Region of Iraq, given the importance of this matter in supporting development and planning steps in all sectors contributing to the advancement and progress of Iraq.
Al-Barty talks about the Kurds' wishes regarding Al-Sudani's visit to the region
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Kurdistan Democratic Party member Wafa Muhammad Karim spoke today, Wednesday (November 13, 2024), about the Kurds’ wishes regarding Prime Minister Muhammad Shia al-Sudani’s visit to the region.
Karim said in an interview with Baghdad Today, "The oil and gas file is the most important file of the visit, because it must be resolved, in addition to the necessity of resolving the salaries file and not keeping them in this monthly form, as they are delayed and there are constant obstacles."
He added, "The other goal is to bring the views of the Kurdish parties closer together, especially between the two main parties," stressing that "the visit is a benefactor, to try to end the Kurdish dispute and start negotiations."
He pointed out that "the budget file and the development path are also on the visit's agenda," noting that "the Kurdish people hope for good from this visit, for the purpose of ending a number of problems."
Earlier today, Wednesday (November 12, 2024), Prime Minister Mohammed Shia al-Sudani arrived in the Kurdistan Region of Iraq on a visit that includes the cities of Erbil and Sulaymaniyah.
The Prime Minister's media office stated in a statement received by "Baghdad Today" that "the Prime Minister arrived this morning in Erbil, the capital of the Kurdistan Region, on a visit that includes the cities of Erbil and Sulaymaniyah."
Prime Minister Mohammed Shia al-Sudani and the head of the Kurdistan Regional Government, Masrour Barzani, discussed a number of issues, including oil exports and the political stability of the region, today, Wednesday (November 13, 2024).
The Prime Minister's media office said in a statement received by "Baghdad Today" that "Al-Sudani met today, Wednesday, with the Prime Minister of the Kurdistan Regional Government of Iraq, Masrour Barzani, at the beginning of a visit that includes the cities of Erbil and Sulaymaniyah," indicating that "Al-Sudani congratulated, at the beginning of the meeting, the Prime Minister of the region on the success of the elections for the parliament of the Kurdistan Region of Iraq."
The statement added, "The joint files between the federal government and the region were also discussed, most notably the efforts to resume oil exports from the region, and the emphasis on the importance of organizing them in a way that achieves the aspirations of citizens throughout the country, in addition to the importance of implementing the Federal Court's decision regarding the salaries of government employees in the region."
Al-Sudani pointed out, according to the statement, "the necessity of maintaining political stability in the region, and that it is an essential part of the pillars of stability in Baghdad and all of Iraq," stressing "the necessity of forming a new government in the region, as he expressed the federal government's readiness to provide assistance in this file, in addition to the importance of continuing the current levels of cooperation between the regional government and the federal government at the national level."
The statement continued: "The preparations for conducting the population census were also discussed, and the necessity of exerting maximum effort to ensure its successful completion, especially after settling the technical aspects with the Statistics Authority in the Kurdistan Region of Iraq, given the importance of this matter in supporting development and planning steps in all sectors contributing to the advancement and progress of Iraq."
He stressed that the meeting "reviewed developments in the regional situation, especially with the insistence of the Zionist occupation forces on expanding the scope of the war, as the necessity of coordinating positions was emphasized, in a way that preserves the security and sovereignty of the country."
Araghchi: Communication channels between Iran and America always exist
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Tasnim International News Agency reported that Iranian Foreign Minister Abbas Araghchi said in a statement, "We must work to manage the differences between Iran and the US to reduce their costs and negative effects. Communication channels between the two countries are always present."
He added, "Sometimes the differences with America are deep and fundamental, and may be difficult to resolve. But it is necessary to manage these differences in a way that contributes to reducing the tension and reducing the costs resulting from them."
He referred to the visit of the Director General of the International Atomic Energy Agency to Tehran, saying: "Our cooperation with the agency has been a long-term cooperation and began a long time ago. Of course, there were problems and differences in views on how to cooperate with the agency."
"This visit has been planned for some time, and we hope we can reach agreements on some of the existing differences and the way to cooperate in the future," he added.
"Mr. Grossi's spirits were positive in the talks our friends in Vienna had with him, and we also hope that through this positive spirit we can open a new path for cooperation with the Agency," Araghchi said.
The Foreign Minister also referred to the Riyadh Summit, saying: “The OIC meeting was a very good meeting, and the leaders took strong positions. A firm resolution of 38 items was adopted in this meeting, which carries a strong tone against the Zionist entity and condemns its actions everywhere.”
Requesting Iraqi mediation.. US delegation arrives in Baghdad to follow up on the "hotline" with Tehran - Urgent
An informed source revealed, today, Wednesday (November 13, 2024), that an American delegation arrived in Baghdad at dawn today to follow up on the efforts to calm the situation with Tehran .
The source said in an interview with "Baghdad Today", "An American delegation arrived in Baghdad at dawn today, coming from Washington, to follow up on the efforts to calm the situation with Tehran through Iraqi mediation."
He added, "The delegation may meet with Iraqi political and governmental elites at a later time, according to information, in order to assess the situation in the Middle East and what the White House's vision is after Trump's victory in the elections."
He pointed out that "the delegation is very interested in the visit of the Iraqi National Security Advisor, Qasim al-Araji, to Tehran two days ago and the important discussions that took place, which may constitute an important point in pushing Tehran to delay its response to the occupying entity in light of the efforts to push the tensions towards more containment, especially with the concern of Gulf, Arab and regional capitals about the possibility of the conflict developing into an open stage that would put everyone's interests at risk."
Regarding Al-Araji’s visit to Tehran, Professor of Political Science Khalifa Al-Tamimi presented an analysis today, Wednesday (November 13, 2024), that identifies two paths for the visit of Iraqi National Security Advisor Qasim Al-Araji to Tehran.
Al-Tamimi said in an interview with "Baghdad Today", "Al-Araji's visit to Tehran and his meeting with the most important leaders in the Iranian security and military establishment, including General Qaani, has two paths and no third. The first is to deliver important messages between Washington and Iran, considering that Baghdad plays roles in efforts to calm the situation in the Middle East, like Qatar, Oman and others."
He added, "The second path is to spare Iraq from getting involved in the tensions in the Middle East after reports that the Iranian response will come from Baghdad, in addition to confirming the government's message rejecting the use of airspace by any party, while indicating that Iraq will not accept any aggression against any of the neighboring countries from its airspace or territory."
The indirect dialogue between Tehran and Washington, which is taking place in the capital, Baghdad, was halted against the backdrop of the assassination of the head of the political bureau of Hamas, Yahya Sinwar.
An informed source revealed , on Friday (October 18, 2024), that the "indirect" dialogues between Tehran and Washington in Baghdad had been postponed after the assassination of Yahya Sinwar.
The source said in an interview with Baghdad Today, "All the expectations confirmed that indirect negotiations between Tehran and Washington through Iraqi elites would proceed according to what was planned for them, but after confirming the assassination of Sinwar in Gaza, everything changed."
He added, "It seems that the American delegation received a call from Washington, prompting it to delay any negotiations, but to remain in Baghdad for some time until the picture becomes clear."
The source pointed out that "the American delegation has not made any contacts with the Iraqi elites since the assassination of Sinwar yesterday until now, and it seems that there are changes in the manner of the upcoming negotiations and perhaps they may be delayed," stressing that "the delegation did not provide any explanations and was content to remain silent."
An informed political source reported earlier that the first round of indirect talks between Tehran and Washington was to be held in Baghdad on Thursday evening (October 17, 2024), noting that the past hours witnessed rapid movement to hold the first round of indirect talks between Tehran and Washington through the mediation of high-level Iraqi elites, in an attempt to find hotlines between the two sides via Baghdad, to ensure the transmission of messages and avoid further tension in the Middle East, especially with Israeli threats to target Iranian depth.
He explained that the American side is ready to hold this round, but is waiting for the green light from the Iranian side, noting that both parties are aware of the sensitivity of the situation, and that holding these talks, even indirectly, may lead to mutual steps to ease tensions and try to prevent things from slipping into a comprehensive war.
An informed source revealed, on Wednesday (October 16, 2024), that the White House has adopted a hotline with its embassy in Baghdad in preparation for indirect negotiations with Tehran.
The source told Baghdad Today, "Washington is serious about conducting undeclared negotiations with Tehran in Baghdad, and there is a hotline with the White House to provide the latest updates," expecting that "the movement in this direction will start within 48 hours in light of the presence of an American delegation in the capital."
He added, "The US embassy is in constant movement and its diplomatic delegations are holding meetings with Iraqi elites on an ongoing basis, some of which are not announced, in the context of pushing the movement towards negotiations, even if they are indirect, but the most important thing is to listen to the opinion of the other party and try to send more messages."
He pointed out that "Iran has shown particular flexibility over the past 24 hours, but it is cautious, especially since Tehran believes that Washington is an unserious negotiator and does not trust its commitments."
The source concluded, "The efforts of the Iraqi parties are continuing to create an initial atmosphere to start indirect negotiations."
Private Banks Association: Iraq to adopt advanced trade finance system by end of 2024
The Iraqi Private Banks Association announced, on Wednesday, a move to adopt an advanced trade finance system by the end of the year.
The Executive Director of the Iraqi Private Banks Association, Ali Tariq, told the official agency, which was followed by "Al-Eqtisad News", that "work on the foreign trade financing platform began at the beginning of 2023 and is witnessing significant development," indicating that "it is expected that by the end of the year there will be a transition to another more advanced and accurate system to enhance control over foreign transfers related to trade."
He explained that "the new system will depend on correspondent banks instead of the current mechanisms, as each bank will have the ability to conduct transfers according to its capabilities and possession of correspondent accounts, whether in American banks or other banks that provide transfer services in different currencies."
He added, "This process will remain the same for the public and merchants wishing to transfer, as the requirements will not change significantly, but the accuracy of transfer operations will improve through the activation of control systems and regulations imposed by correspondent banks."
He stressed that "this transformation will increase public confidence in the Iraqi banking sector, as local banks will adhere to the instructions and mechanisms of international correspondent banks, which will enhance work within strict international systems and agreements."
Trade Bank of Iraq opens an office at the Oil Marketing Company headquarters
The Trade Bank of Iraq (TBI) announced the opening of an office at the headquarters of the Iraqi Oil Marketing Company (SOMO).
The office started its work, according to a statement issued today, Wednesday, and will provide banking services related to issuing documentary credits to facilitate all transactions between the Oil Marketing Company (SOMO) and the bank regarding the export and import operations of all petroleum products, which contributes to supporting the national economy and developing the energy sector, which is considered one of the main drivers of the Iraqi economy.
Hantoush to Al-Eqtisad News: Preventing restricted banks from accessing the Hesabi platform is a strange decision
Secret Political Visits: The Democrats Prepare to Visit Sulaymaniyah After Meeting Al-Sudani
Karim told {Euphrates News} that: "There are political visits away from the media with the Islamic Union and the Islamic Justice Party, who announced their boycott of their participation in the Kurdistan Regional Government."
He added, "A delegation from the Democratic Party will visit Sulaymaniyah after the end of Al-Sudani's visit to Erbil and Sulaymaniyah, where the Democratic Party delegation will visit Sulaymaniyah, as it insists that each party takes its political entitlement and seats in the regional government."
Karim explained that "the Patriotic Union has 23 seats and its positions are known," stressing that "the one who forms the government is the Democratic Party because it has 39 seats and there is a difference of 16 seats, which is a team equivalent to 400 thousand votes, and it is the first winner and it is the one who forms the government."
Prime Minister Mohammed Shia Al-Sudani arrived in the Kurdistan Region of Iraq this morning, Wednesday, on a visit that includes the cities of Erbil and Sulaymaniyah.
The Prime Minister met with senior officials in the Kurdistan Region to discuss the common files between the federal government and the region, most notably the efforts to resume oil exports from the region.
Al-Sudani stressed the need to maintain political stability in the region, and the need to form a new government in the region, as he expressed the federal government's readiness to provide assistance in this file.
Minister of Commerce: The government has developed a roadmap for developing the national economy
Minister of Commerce Athir Al-Ghurairi confirmed today, Wednesday, that the government has developed a roadmap for developing the national economy, noting that the private sector is witnessing a remarkable recovery thanks to government support.
Al-Ghariri told the Iraqi News Agency (INA): "The government has begun implementing economic reforms through new legislation," noting that "many laws have been sent to the House of Representatives for approval."
He added, "These reforms represent a 'reform revolution' that the Iraqi people may not notice at the present time, but it will soon become clear to citizens, businessmen and project owners."
The Minister explained that "the government has begun practical steps to support important sectors such as the pharmaceutical industry, as this sector has witnessed a remarkable recovery as a result of effective government policies, in addition to localizing other industries."
He pointed out that "the government has taken new regulatory steps through the Ministry of Commerce Law, which allows for the issuance of accurate and clear data, which helps in setting a roadmap for local and international businessmen and investors," expressing his "optimism about the future of the Iraqi economy."
Among them is the population census.. Revealing the details of Al-Sudani’s visit to Kurdistan
Political analyst Ali Al-Baydar confirmed, today, Wednesday (November 13, 2024), that Prime Minister Mohammed Shia Al-Sudani's visit to Kurdistan includes 5 files.
Al-Baydar said in an interview with Baghdad Today that "Al-Sudani's visit to Kurdistan aims to mediate between the Kurdish parties, with the aim of forming the next Kurdistan government, in addition to the file of the general population census, and reassuring the Kurds about the concerns they have."
He added, "The other file is the Turkish efforts to revive peace with the Kurdistan Workers' Party, the Sinjar issue, and the implementation of the agreement with Iran regarding the presence of Iranian opposition parties within the borders of the region."
Al-Baydar pointed out that "the Kurds are a key player and an important partner in the political process, and everyone is trying to win their favor, and Al-Sudani deals as a statesman, and comprehensively with the issues of the homeland, with the region or even the files within Kurdistan."
Prime Minister Mohammed Shia al-Sudani arrived in the Kurdistan Region of Iraq today, Wednesday (November 13, 2024), on a visit that includes the cities of Erbil and Sulaymaniyah.
The visit comes within the framework of the federal government's efforts to enhance cooperation with the Kurdistan Regional Government, and find solutions to issues affecting the relationship between the region and the central government.
The Iraqi government reveals the reasons for the scarcity of gold in its reserves compared to other currencies
Mazhar Mohammed Saleh, the financial advisor to the Prime Minister, revealed on Wednesday the reasons for the scarcity of gold in the state’s reserves compared to other hard currencies.
Saleh told Shafaq News Agency, "Some countries still only keep quantities of gold as part of their cash reserves, as the greater focus today is on other assets that can be quickly and easily converted into productive assets that generate returns in the long term."
He added that "countries are moving away from using gold as a primary store of cash reserves for several reasons related to international economic developments and changes in the nature of modern financial systems, which are restricted by the following main reasons: low returns compared to other assets such as: investment in deposits, or government bonds with a very high credit rating, and far from risks, so gold does not achieve fixed returns like government bonds."
Saleh continued, saying: “Therefore, most countries prefer to hold assets that provide them with a fixed and stable income, such as: US or European Treasury bonds that can actually generate annual interest. Also, it is difficult to deal with gold in times of crisis, as it is difficult to convert gold into liquidity quickly compared to other financial assets such as foreign currencies and bonds.”
He explained that "the changes in the global financial system since World War II have imposed conditions in which most countries have come to rely on the US dollar as a primary reserve, given that it is the most widely accepted and used global currency in international transactions, which makes holding the dollar or assets linked to it a more flexible option.
The Prime Minister's advisor pointed out that "the cost of storing gold requires secure spaces to protect it from theft or damage, which may represent an additional burden compared to digital financial assets or liquidity."
He pointed out that "countries seek to diversify their reserves to include different currencies and various financial assets to achieve greater stability, instead of relying solely on gold to avoid the gold asset cycle and its problems. Therefore, the standard rule is that gold should not exceed an average of 10% of the total value of countries' reserves."
Iraq has a foreign exchange reserve of about $100 billion, and 152 tons of gold in its reserves, equivalent to about $12 billion.
Details of an expanded meeting in Baghdad regarding the resumption of Kurdistan oil exports revealed
The Finance Committee of the Iraqi Council of Representatives discussed with the Minister of Oil, Hayan Abdul-Ghani, on Wednesday, ways to resolve the pending issues with the region and resume the export of Kurdistan Region oil, during an expanded technical meeting at the ministry’s headquarters.
The meeting, which was held at the ministry’s headquarters, reviewed the latest developments and understandings to end the oil dispute with the Kurdistan Region and the most prominent technical obstacles, coinciding with the arrival of the draft amendment proposed to the budget law sent by the government to parliament for voting, which relates to addressing this file.
The meeting witnessed discussions on the oil policy and the ministry's negotiating steps with OPEC to ensure Iraq's production share, in addition to plans and programs for developing the local oil industry sector, in a way that secures the country's needs for oil derivatives, reaching self-sufficiency, especially with regard to providing fuel to operate power stations and gasoline .
In the context, Al-Atwani stated that "the meeting comes within the framework of the Finance Committee's ongoing efforts to resolve the oil dispute between Baghdad and Erbil, and as a continuation of its ongoing discussions with the central government and the Kurdistan Regional Government to address the outstanding issues in accordance with the constitution, and to move towards a final agreement to resume the export of the region's oil via the Turkish Ceyhan pipeline."
The head of the Finance Committee expected that the proposed amendment to the budget law would be an important step towards ending the oil dispute according to a comprehensive national vision, noting that "the halt in the region's oil exports causes huge financial losses for Iraq."
For his part, the Minister of Oil stressed Iraq's keenness on the unity of OPEC in order to ensure the stability of oil prices, noting that his ministry is in a state of permanent negotiation with member states to ensure Iraq's real share of production .
EconomyParliamentary Finance CommitteeFederal Ministry of OilExporting regional oilResumption of oil exports
Oil Minister: A consultant will be appointed within 60 days to recalculate the amount of crude produced in Kurdistan
Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani Al-Sawad confirmed on Wednesday that a consultant will be appointed within 60 days to recalculate the amount of crude oil produced in the Kurdistan Region.
A statement by the ministry, seen by "Al-Eqtisad News", stated that "Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani Al-Sawad received the head of the Finance Committee in the House of Representatives Atwan Al-Atwani and members of the parliamentary committee, and a meeting was held to discuss the relationship between the ministry and the Kurdistan Region regarding oil fields, production delivery and resumption of exports via Ceyhan."
According to the statement, the Minister of Oil stressed the ministry's keenness to "cooperate with the legislative authority to achieve what achieves the development of the oil industry and economic development in the country," indicating that "the meeting aims to discuss common issues related to the Ministry of Oil and the Finance Committee, especially the resumption of oil exports from the Kurdistan Region via the Turkish port of Ceyhan."
He referred to "the decision of the Council of Ministers regarding the delivery of the region's oil according to the required production rates to the Iraqi Oil Marketing Company as the entity authorized to export Iraqi oil," explaining that "the revenues from these exported quantities will be deposited in a special account, from which sums of money will be deducted to pay the wages for producing these quantities to the companies, and these sums will be paid as an advance."
The minister continued, "According to the Cabinet decision, a consultant will be appointed within 60 days, and the consultant will be accepted by the federal Ministries of Oil and Finance and the Ministry of Natural Resources in the region," noting that "in light of this agreement that will be signed with the consultant, the amount of crude oil produced in the region by oil companies will be recalculated, and the remaining revenues will go to the federal state budget."
For his part, the head of the parliamentary finance committee stressed that "the first meeting at the Ministry of Oil is a good opportunity; given the great importance of the ministry to the finance committee as the primary source of funding for the federal budget," indicating that "the committee had a meeting with the regional government to discuss the relationship between the federal Ministry of Oil and the Ministry of Natural Resources, and a conclusion was reached on the necessity of adapting contracts for oil production in the region, in line with the constitution, considering the region's contracts as production-sharing contracts and not profit-sharing."
Al-Atwani continued, "There is a desire from both parties to amend and adapt these contracts," explaining, "Until the contracts are legally adapted, there must be a transitional phase that everyone deals with, so that oil can be exported from the region through the port of Ceyhan."
He pointed to, "The Cabinet's decision to adapt the situation and the importance of coordination between the federal oil ministries and the natural resources ministries in the region, and agreeing on the consultant to determine the costs of production and transportation of crude oil."
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