Parliamentary Finance Committee settles the matter: The dollar exchange rate will not change
The Parliamentary Finance Committee revealed the numbers of employees, retirees and social welfare beneficiaries, confirming that their salaries are fully secured for next year, with no intention to change the dollar exchange rate.
The video for this blog post is below here:
Committee member, Moeen Al-Kazemi, stressed the "need to increase non-oil revenues to ease the burden on the general budget."
Al-Kadhimi stressed that "the government is working to increase revenues from non-oil sources such as taxes, customs, the Communications and Media Commission, and profitable companies in state departments, in addition to collecting water, electricity and other services."
He pointed out that "non-oil revenues could reach 30 trillion dinars in 2025, in addition to 120 trillion dinars of oil revenues, which makes the total revenues sufficient to secure the salaries of 4.2 million employees, and the salaries of 3.5 million retirees," noting that "the allocations for these salaries amounted to 65 trillion dinars in 2024, and it is expected that there will not be a significant increase during the next year."
Al-Kadhimi also explained that "the number of beneficiaries of social care will reach 5 million beneficiaries," stressing "the importance of following a sound financial policy to increase non-oil revenues and ensure financial stability, while maintaining the dollar exchange rate without change."
Al-Sudani's advisor reassures via Shafaq News about the rise of the dollar: a temporary market bubble
Mazhar Mohammed Saleh, the financial and economic advisor to Prime Minister Mohammed Shia al-Sudani, commented on Thursday on the rise in the exchange rate of the US dollar against the Iraqi dinar in the local market for days.
Saleh told Shafaq News Agency, "The difference between the two exchange rates in the market is basically stable for reasons related to controlling the sale of cash dollars from legal outlets to travelers in an organized manner and subject to a precise rule of compliance and auditing, in addition to the ability of the traveler to obtain other permitted amounts through payment cards in all their forms, and in sufficient and comfortable amounts at an exchange rate of 1320 dinars per dollar."
He added, "It is expected that the market, due to the end of the previous foreign transfer platform and the transition to new mechanisms for strengthening with foreign currency to meet the banks' needs for foreign currency to finance foreign trade, was accompanied by a wave of misinformation, misunderstanding and confusion that was exploited by the parallel market and speculators for quick profit."
He considered that this increase is "called a temporary market bubble that is built on unrealistic speculation and disappears over time, which requires attention to the phenomenon of exploitation and profiteering generated by false and baseless information."
The dollar exchange rate in local markets is witnessing a gradual increase, while this morning it recorded 152,000 dinars for every 100 dollars in the two main stock exchanges of Al-Kifah and Al-Harithiya in Baghdad, and 151,400 dinars for every 100 dollars in Erbil, the capital of the Kurdistan Region.
Yesterday, Wednesday, the economic and financial expert, Abdul Rahman Al-Mashhadani, attributed the main reason for the rise in the dollar price to the promotion of stopping the platform, indicating that “this rumor that spread showed that foreign transfers would stop.”
He explained that "this rumor is false, as 97% of the transfers made through the window were transferred to banks that have correspondent banks in a way that enhances the balances. The Christmas holiday is also another reason for the demand for the dollar, as there is a lot of travel during these days."
Al-Mashhadani expected that "the situation will stabilize and the dollar will return to its normal status after the holiday."
Stopping the dollar selling platform will “confuse” the parallel market “more” coinciding with the Christmas holiday - Urgent
Economic expert Nasser Al-Tamimi revealed, today, Thursday (December 26, 2024), the reason for the continued rise in the dollar exchange rate in local markets for days.
Al-Tamimi told Baghdad Today , "There are two main reasons behind the continued rise in the dollar exchange rate in local markets for days," indicating that "the first reason is the imminent suspension of the platform's work at the Central Bank, as this matter has caused confusion in the market, especially among small traders, who have increased their demand for dollars from the parallel market."
He added, "The other reason is the proximity of the New Year's celebrations, as there is a demand for the dollar in the parallel market for the purpose of travel as well as buying some goods," expecting "the rise to continue until the beginning of the new year, after which it may return to a gradual and slow decline."
Economic expert Nasser Al-Tamimi warned, on Tuesday (December 17, 2024), of a rise in the dollar exchange rate in Iraq in the coming days.
Al-Tamimi told Baghdad Today, "There are real fears in the Iraqi market of the continued rise in the dollar exchange rate after the Central Bank of Iraq stopped working on the platform," indicating that "this matter will constitute a shock, especially at the beginning of implementing the decision and will lead to a rise in the dollar, to increase demand for it in the parallel market."
He added that "after the platform is stopped, most traders, especially small ones, will depend on the parallel market to finance their foreign trade, while continuing to finance trade with Iran and Turkey in dollars, through illegal means," noting that "this is what will lead to the rise, and therefore practical steps must be taken to prevent this by the country's monetary authority, and urgently."
The Central Bank of Iraq revealed on Wednesday (September 4, 2024) the mechanism for ending the electronic platform for foreign transfers, while indicating that the placement of foreign transfer operations and meeting requests for the dollar are on sound paths and consistent with international practices and standards.
The Central Bank of Iraq honors the members of the Issuance and Treasury Department on their career day
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, sponsored the first annual celebration for the employees of the issuance and treasuries in the bank and its branches.
The ceremony witnessed the honoring of the employees who won a symbolic shield in appreciation of their distinguished efforts, by the Governor, the Deputy, the Director of the Issuance and Treasury Department, and the branch managers.
His Excellency the Governor praised, during a speech on the sidelines of the celebration, the contributions of all employees of the Central Bank of Iraq, especially the employees of the Issuance and Treasury Department, whose work nature and positions differ from other departments and sections.
His Excellency stressed that we had previously directed to hold a special celebration for the employees of the issuance and treasuries, and this comes in appreciation of their great efforts in the process of sorting, printing, and issuing currency and other basic tasks of their work.Central Bank of Iraq
Media Office
December 26, 2024
Uncertainty over the 2025 budget.. Parliament: We don't know anything about it yet
Expectations of deliberate delay by the government
Member of Parliament Ahmed Al-Sharmani explained today, Thursday (December 26, 2024), that Parliament does not know anything about the 2025 budget schedules, suggesting that the government is deliberately delaying sending it.
Al-Sharmani said in an interview with "Baghdad Today", "According to the Financial Management Law, the budget or its schedules must reach the House of Representatives at the end of the month (10) of each year, and any delay in doing so is considered a legal violation, especially since this violation has been repeated for many years."
He explained that "the 2025 budget tables are not known to the House of Representatives so far, and the delay in sending them is a violation, and there is no specific date for sending those tables."
Al-Sharmani added, "Perhaps the government will link sending the tables with amending the law proposed in Parliament, and this will delay sending the tables for a long time due to disagreements over the origin of the amendment."
MP Jawad Al-Yassari confirmed on December 19, 2024, that political differences over amending the budget law will delay voting on the 2025 budget schedules, indicating that “the Iraqi government is waiting for Parliament to amend the budget law, so that it can send it the schedules for 2025 according to the amendments.”
It is noteworthy that Member of Parliament Mustafa Al-Karaawi announced on December 8, 2024, the postponement of the second reading of the amendment to the General Budget Law until after the legislative holiday.
On the cusp of 2025.. Economy and political differences are the most prominent wishes of the Kurdish street
In a few days, the Kurdistan Region will bid farewell to the year 2024 with its ups and downs.
In addition to the manifestations of joy and New Year celebrations that are evident in the markets of Erbil, the capital of the Kurdistan Region, there are many hopes that the Kurdish street hopes will be fulfilled in the coming year.
Shafaq News Agency surveyed the opinions of citizens in the region about the year 2024 and their hopes for the year 2025.
Kamran (a citizen in Erbil) told Shafaq News Agency, "The year 2024 was somewhat difficult for the citizens of the Kurdistan Region due to the many problems and crises that befell the country, most notably the problem of employees' salaries, which seriously exhausted the economy in the Kurdistan Region in various aspects."
He added, "We hope that next year the Kurdistan Regional Government will work to resolve this issue with the federal government in a way that benefits the citizens and enables employees to receive their salaries on a regular basis every month without delay, as in all Iraqi governorates. This is a natural right for us."
In turn, Sardar (a citizen from Sulaymaniyah) told Shafaq News Agency, "The financial problems are already present and are still ongoing due to their involvement in the political disputes between Erbil and Baghdad. We hope that these issues will be separated from each other because they have really tired the citizens."
For her part, Sahera (a citizen from Erbil) told Shafaq News Agency: "The year 2024 was full of events in various fields, the most prominent of which, in my opinion, was holding the elections, but unfortunately the parties have not yet been able to form the new government and complete this legal entitlement, and this harms the Kurdistan Region and negatively affects the citizens. What we hope for is for the parties to reach a comprehensive political solution that contributes to resolving the differences and moving forward towards forming the government."
Aziz (a citizen from Erbil) told Shafaq News Agency: "The most important thing that the Kurdish people hope for in the new year is to solve the problems and economic crises and improve the situation in the region in a way that ensures the protection of stability as well as stability and security, which is a basic requirement for everyone."
The International Development Bank announced, today, Thursday, the introduction of an electronic payment mechanism for entertainment services.
The International Development Bank announced, today, Thursday, the introduction of an electronic payment mechanism for entertainment services.
The bank's management said in a statement received by the Iraqi News Agency (INA): "The bank has entered into a strategic partnership with the 1001 application, which represents a new step towards achieving a shared vision in enhancing support for youth by providing an entertainment service and an integrated social experience through the use of electronic payment tools and bank cards."
It added, "This came with direct support and utmost importance from the Chairman of the Board of Directors of the International Development Bank, Ziad Khalaf; In order to encourage the use of legal digital content within Iraq, which contains a comprehensive store for the Iraqi public. This contract also contributes to enhancing digital entertainment and participation among youth in supporting sports culture and using payment via electronic cards.
" It stated, "Through this partnership, we seek to provide direct access to the digital, diverse and comprehensive content of the T0D/1001/bein sport/OSN+/lalega/Spanish League libraries, the English Premier League, the European Champions League, the German League, Formula 1, the NBA Basketball League and tennis tournaments," explaining that "this partnership represents a true reflection of our shared values in enhancing quality, providing the best and keenness to achieve excellence in everything we offer.
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Call to re-evaluate the cost of oil production in Kurdistan under the supervision of an international auditing firm
Safwan told {Euphrates News} that: "The House of Representatives is supposed to, with the arrival of the budget schedules from the government to the parliament presidency, assign the Finance Committee to study them in order to approve them faster to avoid the agreement in 2025."
He added, "There is an urgent need to restore the cost of producing a barrel of oil from the Kurdistan Region's fields and raise this number under the supervision of an international auditing company to $16 or something commensurate with this cost, and for the region to pledge to deliver more than 400,000 barrels to SOMO."
Safwan pointed out that "amending the article related to exporting Kurdistan oil includes increasing the cost by $6 at the level of all oil fields in Iraq, and this rate can be reduced in some governorates to $2, and the transfer can be enhanced for the purpose of financing $16 from the Ministry of Finance to the region."
"There is a desire in China next year to double the total production, meaning we expect an increase in Iraqi oil consumption, which may give importance to increasing the value, thus the possibility of canceling the voluntary cuts by OPEC and returning the pumping of Iraqi oil to its normal production rates of 4 million and 500 thousand barrels of oil per day," he added.
Regarding the industrial city project in Basra, Safwan explained, "After completing the population census, we have a clear map of the deficit in housing units of no less than two million and 500 thousand housing units that are supposed to be built, and the demand for iron will increase with the presence of service projects and the necessity of establishing a train system."
He stressed "the need to develop the iron and steel industry in Iraq to move to the steel industry and create an economic partnership with companies that depend on iron and steel, whether in the housing sector or cars and other iron products," considering economic diversification "an important step taken by the government to rehabilitate the private sector, which suffers greatly."
Regarding the fluctuations in the dollar price and its impact on citizens, Safwan said, “The Central Bank of Iraq still has ambitions to modernize the banking systems and involve the largest possible number of banks in the process of financing foreign trade by reclassifying them and linking them to a system of international correspondents; but these efforts alone will not be able to control the exchange rate. We need to invest in technology at the border crossings.”
Dagher: I don't understand why we borrow when oil exceeds $70
Today, Thursday, economic expert Dr. Mahmoud Dagher criticized the economic policies that push Iraq to borrow despite oil prices exceeding $70 per barrel.
Dagher explained that the external debt exceeded the figures announced according to the World Debt Report, while the internal debt amounted to more than 81 trillion Iraqi dinars, which constitutes an additional burden on the general budget that bears the debt installments and interest, as these costs reach 9 trillion dinars.
He pointed out that the government's continued borrowing lacks any economic justification, especially with the fluctuation of Iraq's GDP as a country dependent on oil revenues, which makes the debt-to-GDP ratio unrealistic or economically feasible.
Dagher concluded his statement by stressing the need to reconsider these financial policies, warning of the repercussions of borrowing on the Iraqi economy if oil prices decline in the future.
Budget tables and financing operations on the discussion table of the head of the State of Law bloc and the Minister of Finance
Head of the State of Law parliamentary bloc, Yasser Al-Maliki, discussed with Finance Minister Taif Sami the completion of the amendments to the three-year budget and financing operations.
A statement by the State of Law Bloc received by the Iraqi News Agency (INA) stated that "the head of the State of Law parliamentary bloc, Yasser Al-Maliki, received in his office today, the Minister of Finance, Ms. Taif Sami, in the presence of the Chairman of the Parliamentary Finance Committee, Atwan Al-Atwani. The meeting discussed the importance of completing the amendments to the three-year budget (2023-2024-2025), as well as the necessity of the (2025) schedules reaching the Council of Representatives to work on approving them in the Council after the Finance Committee completes its study and auditing in accordance with the legal contexts."
He added that during the meeting, the financial and economic conditions and mechanisms for supporting strategic projects were reviewed to serve the country and overcome the obstacles and challenges facing them.
In turn, the Minister of Finance reviewed, according to the statement, "the procedures followed by the ministry in addressing the financial conditions and the methods followed to ensure the continuity of project financing operations and operating budgets."
Praising the government's success in attracting investors and capital to the country
As the year 2024 draws to a close, witnessing an urban renaissance that the country has lacked for decades, academics and specialists praised the government’s success in attracting investors and capital to the country, stressing that the security stability enjoyed by the country and the development of the banking system that came in accordance with the government program, pushed the wheel of investment forward.
Safe reality
Professor of Economics at Al-Nahrain University, Sattar Al-Bayati, told Al-Sabah: “In light of the current safe reality and the stability that the country is witnessing, there is a development and urban movement that the country is witnessing according to the government program, and the achievements that occurred during this year with regard to Baghdad, especially in the matter of cleanliness, roads, bridges and projects in various sectors, as well as the bridges that were built or rehabilitated and appeared in a new guise, these are all positive messages sent by the government to investors, whether Iraqis or Arab and foreign investors, that there is a suitable environment for investment in general, especially direct investment in light of the existence of Investment Law No. 13 of 2006 and its amendments, which contain many articles that serve the investor.” He pointed out that “there are two types of investment, which are foreign direct investment and indirect foreign investment,” indicating that “indirect investment occurs in the Iraq Stock Exchange, or any stock market or stock exchange.”
Infrastructure
He added, "The government is counting on direct investment, because it is a real investment that can be made directly in the basic structures or infrastructure that the country needs, such as residential complexes, bridges, hospitals, or universities. Direct investment can invest in all of these."
Great benefit
In turn, economic expert Alaa Al-Fahd told Al-Sabah: “The government has focused on investment aspects and development projects with high economic feasibility,” indicating that “these projects, if completed, will be the gateway and beginning for development projects and investments and attract foreign investment, while greatly benefiting from the state of security and political stability in Iraq.” Al-Fahd confirmed that “there is an investment revolution in Iraq currently.”
Financial capabilities
“Security and political stability can be a gateway for investments in various fields and sectors, such as the services sector, housing sector and infrastructure, and this is one of the government’s priorities,” he added, noting that “this requires consolidating the partnership between the public and private sectors, whether local or foreign, as this is the first stage to gain confidence and move from the socialist state and the government’s implementation of projects, to another new state with the participation of the private sector in projects in which the local private sector can invest according to the existing financial capabilities and infrastructure belonging to the state, and even in the field of managing service facilities and others.”
Big investments
He pointed out that Iraq today has begun to attract very large investments that have so far reached 62 billion dollars, but it needs more than 500 billion dollars in the areas of infrastructure, services and productive projects, in addition to the government’s orientation towards oil transformation industries,” indicating that “these industries in themselves will contribute firstly to achieving self-sufficiency, and secondly, Iraq can be a source of oil derivatives, as well as a source of transformation industries instead of the state having to bear the costs of importing them.”
Government vision
“There is a government vision for a map of high-priority investment projects, and the government has begun to lay the basic foundations in terms of financial transfer, financial leverage, and financial inclusion, which is one of the largest pillars of investment,” he said, stressing that “investment seeks financial security and financial inclusion, with the presence of a banking system capable of managing the investment process, primarily by providing bank credit, as well as achieving financial security in terms of foreign transfers and relations between local banks.” And foreign.
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