Highlights of what the Prime Minister said during a (special meeting) with the head of the Iraqi Media Network on Al-Iraqiya News
The most important points made by Prime Minister Mohammed Shia Al-Sudani during a (private meeting) with the head of the Iraqi Media Network, Karim Hammadi, which was broadcast on Al-Iraqiya News Channel:
The video for this blogpost is below here:
I rarely appear in dialogue meetings because I believe that the field is the deciding factor.
The citizen wants to touch something realistic and is tired of promises
The Syrian events were not a surprise compared to the situation that Syria was in
Our government's policy succeeded in a difficult stage
I informed the Turkish President during his visit to Baghdad of the importance of restoring relations with Syria, and he agreed.
I asked Bashar al-Assad to hold a meeting in Baghdad at the level of the foreign ministers of Iraq, Turkey and Syria, and he expressed initial approval, but he had conditions.
I repeated the attempt with Assad 3 times to hold a meeting in Baghdad at the level of foreign ministers, and the Turkish side agreed.
Turkey has set conditions for the return of displaced Syrians and refugees on its territory and confronting terrorism.
The Syrian side told us that it agrees with Türkiye’s conditions regarding the return of the displaced, but terrorism must be confronted in general, whether by the PKK or other armed factions, and this was the point of disagreement.
Turkey and Syria failed to sit at one table after 3 attempts
Iraq has made the most important effort to bring the views of Türkiye and Syria closer together.
We want the decision to be left to the Syrian people to determine their choices.
Iraq's position was clear not to interfere in Syrian affairs.
We are concerned about the developments in Syria due to the presence of armed organizations and elements of the terrorist ISIS.
We are monitoring ISIS movements and have begun joint operations with Jordan and the international coalition.
Keen on the unity and integrity of Syrian territory and respecting the will of the Syrian people
We are ready to support a comprehensive political process in Syria without interference.
We do not want others to interfere in Syrian affairs
Iraq moved within the region and led a diplomatic effort to agree on general principles regarding the Syrian issue.
We presented an Iraqi paper at the Aqaba meeting that includes the basic principles for the stability of Syria and the establishment of a political process.
We hope that the Syrian administration will be aware of the concerns of Arab and regional countries and provide positive guarantees and indications.
The Syrian circumstances are similar to the Iraqi situation in 2003, and this is what requires us to give advice to avoid making the mistakes we made.
Our diplomatic mission has started its duties in Damascus
The government has worked to build good relations with everyone, and everyone visits Iraq and listens to their opinion.
The Iraqi state, with all its authorities, identified the sources of danger and took all security, political and economic precautions.
We preserved the supreme interests of Iraq and did not drag it into the arena of conflicts.
There are no threats and we do not allow any party to make any threat.
Iraq has reached a stage of regional and international reliability and acceptability.
All the messages we received through visits and communications confirm the countries’ commitment to Iraq’s security and stability.
Countries affirmed their commitment to stand with Iraq against any terrorist threat that attempts to undermine its borders.
Iraq is still an integral member of the international coalition to confront the terrorist ISIS
Our position towards Syria is identical to that of friendly countries.
Our situation in 2024 is completely different from 2014, in light of political stability and a people who believe in the political process, the government and its paths.
Iraq is on the right track and enjoys unprecedented confidence and acceptance since the start of the political process in 2003.
The UN Secretary-General's Representative in Iraq calls for more political consensus
The briefing of the UN Secretary-General's Representative in Iraq to the Security Council was clear that we are facing a new Iraq and unprecedented political stability.
It is unacceptable for anyone to impose conditions on Iraq.
There are no conditions for dissolving the Popular Mobilization Forces.
The government has made law enforcement a priority, without favoritism to any party.
Our borders are in their best condition, and there are no fortifications and border points are being held.
The state is the one that has the decision in peace and war.
We will not allow any party to drag Iraq into wars and conflicts.
There is no justification for the presence of 86 countries from the international coalition in Iraq
It was decided to announce a timetable for confining weapons and ending any presence of any groups or factions outside the scope of the security institutions, in conjunction with the announcement of the timetable for the end of the missions of the international coalition forces in Iraq.
We will move to bilateral security relations with the international coalition, not categorical ones with the international community.
The international coalition is committed to supporting Iraq in confronting terrorism.
Organizing the relationship with the coalition is an essential part of the country’s stability and control of weapons within state institutions.
It is unacceptable for Turkey to interfere in Syrian affairs or be on its territory.
Iraq and the Arab countries' primary goal is the unity and integrity of Syrian territory.
We did not receive any contact from Al-Julani
For the first time, there is a government with a clear executive program.
Committed to the political agreement
The year of achievements 2024 is not a constructional name, and the year 2025 will be as well.
8935 ongoing projects in Baghdad and the governorates
The government inherited 2,611 stalled projects.
We started 1455 projects, including projects that have been received.
Unemployment rate decreased from 16.5 to 14.4 and poverty rate decreased from 23 percent to 17 percent.
Non-oil revenues reached 14 percent after being 7 percent. Previously, there was political thinking even in choosing projects.
We established projects for 5 years, 10 years and up to 20 years.
The opening of the five berths of Faw Port is one of the projects that I am proud of, and for the first time Iraq will have a direct view of the Gulf.
Al-Faw Port is established and has become a reality
Conducting a population census is an indicator of security and stability.
The people trust the current government
We have a political project and a vision, and its basis will be the people.
It is time for a new methodology in political work.
The country's highest interests must always be the goal.
Political conflicts and disruption of achievements affect the citizen
The 6 principles emphasized by the supreme religious authority do not require statements of support, but rather serious work to implement them.
We must make a double effort to complete the principles put forward by the supreme religious authority.
Keen for all political forces to take the initiative to adopt the supreme religious reference principles
Our intelligence services were able to uncover new Baath Party organizations, arrest them, and refer them to the judiciary.
Some political forces thought that the ministerial amendment should be formal, and I refused.
We need a ministerial change of about 4 to 6 ministers.
There was a deliberate obstruction in the matter of the ministerial amendment.
The government is committed to the constitutional timing for holding elections.
Our relationship with the United States is institutional
There is a real partnership between Iraq and the United States.
We agreed with Trump to develop economic relations
We went to diversify the sources of armament
During the two years of the government’s term, foreign and Arab investments amounted to more than 62 billion dollars.
We have achieved a great leap in the pharmaceutical industry and covered 35 percent of the needs.
Recovering more than 500 billion dinars from cases involving corrupt individuals and the inflation of funds
We reviewed 55 corruption files and came up with recommendations to address them.
21 thousand criminal cases are pending before the courts
The Anti-Corruption Support Team referred 90 files to the judiciary and integrity
The government will not hesitate to confront any suspicions of corruption anywhere
In Jordanian Dinar and Saudi Riyal..Iraq expands foreign transfers with new currencies
The Central Bank of Iraq announced, on Thursday, the expansion of external transfer channels for local banks, to include new currencies other than the dollar, namely: the Jordanian dinar and the Saudi riyal.
The bank also decided to allow Iraqi banks to finance trade with Turkey in euros, after it was previously restricted to use with European Union countries, in addition to transfers available in US dollars, Emirati dirhams, Chinese yuan and Indian rupees.
The bank explained in a statement today that "this step comes within its efforts to expand foreign trade financing options in various currencies and channels, and the bank has begun taking the necessary measures to meet banks' requests in these currencies."
The statement also indicated that "this expansion in the foreign transfer channels provides transfer operations at the official price, and aims to streamline the transfer and involve a greater number of banks in foreign transfer operations, and expand the horizons of economic cooperation between Iraq and other countries, especially in light of the bank's efforts to find other channels to meet the volume of demand for various foreign currencies according to Iraq's dealings with those countries."
The bank confirmed that "a smooth transition took place during 2024 from the electronic platform to directly approved correspondent banks, and thus the Central Bank achieved a fundamental transformation in line with international banking practices, and this transition is widely praised."
What are the objectives of expanding foreign transfer channels by the Central Bank of Iraq?
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Economic expert Alaa Al-Fahd revealed, today, Thursday (December 19, 2024), the goal of the Central Bank of Iraq in expanding external transfer channels for local banks.
Al-Fahd said in an interview with Baghdad Today, "Within the Central Bank's policy and its continuous attempts to control foreign transfers to finance trade, especially in dollars, there is a continuous effort to expand the basket of foreign currencies used in imports, especially with countries with which we have import dealings, the transfer is in the currencies of the countries, and there was an agreement on this with the Turkish side, as well as the Emirates, China, and today with Jordan and Saudi Arabia."
He explained that "this step reduces the demand for the dollar to finance foreign trade, as most of the demand for the dollar is to finance foreign trade, and with the expansion of the currency basket, the pressure in the parallel (black) market on the dollar decreases, and this reduces the exchange rate in the local market."
He added, "This step will also allow many banks to deal with many countries according to the currencies of those countries, and this will enhance a major role in developing the work of banks in terms of experience. Its main goal is to control the dollar exchange rate and work to reduce it."
Central Bank of Iraq expands foreign transfers with new currencies
The bank explained that this step comes within its efforts to expand foreign trade financing options in various currencies and channels, and the bank has begun taking the necessary measures to meet banks' requests in these currencies.
The Central Bank indicated that this expansion in foreign transfer channels provides transfer operations at the official price, and aims to streamline transfers and involve a greater number of banks in foreign transfer operations, and expand the horizons of economic cooperation between Iraq and other countries, especially in light of the bank's efforts to find other channels to meet the volume of demand for various foreign currencies according to Iraq's dealings with those countries.
It is worth noting that a smooth transition took place during 2024 from the electronic platform to directly accredited correspondent banks, thus the Central Bank achieved a fundamental transformation in line with international banking practices, and this transition is widely praised.
Media Office
December 19, 2024
Iraq Stock Exchange: Global Aspirations Amidst Internal Challenges
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Financial markets are one of the modern economic pillars through which savings are directed towards investment, in addition to expressing the strength and stability of the economic stability in any country. Therefore, activating and developing the stock market is considered one of the basic matters that will help achieve development in Iraq, as it will provide investors with greater opportunities to invest in stocks and achieve profits.
However, the Iraqi Stock Exchange, when compared to the markets of neighboring countries, is considered small in terms of trading value, as foreign investors’ confidence in the Iraqi market is still low due to unstable political and economic factors, as well as administrative and legal procedures that hinder the opening of accounts for foreign investors and the transfer of profits.
The market was established in 1992 under the name of the Baghdad Stock Exchange pursuant to Law No. 24 of 1991. After 2003, its name was changed to the Iraq Stock Exchange. It was governmental and at that time was able to list 113 Iraqi private and mixed joint-stock companies.
Weakness of industry and agriculture
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said in an interview with Shafaq News Agency, "Iraq inherited a one-sided economy that lives on oil revenues due to half a century of wars, conflicts, siege and economic isolation."
He added, "Unfortunately, the two most important sectors that form the backbone of the stock market's diversity are industrial manufacturing companies, agricultural companies, and the logistics companies associated with them, and these two sectors are very weak."
He continues, "The agricultural and industrial sectors only constitute 6 to 7% of the gross domestic product, and most of their activity is individual and non-contributing. It is natural for the market to follow the trend of the overall economy and its nature in terms of the degree of diversity."
Saleh points out that “the banks’ share in the stock market dominates more than 50% of the market’s activity, and there are commercial activities associated with it. This is due to the liberalization of the national economy with high liberalism that transformed the single-rent economy into a consumer market economy linked to external supply chains due to the high financing leverage provided by oil revenues and the operating expenses associated with them.”
He stressed that "the new economic policy of the state is based on a productive partnership between the state and the private sector to raise the levels of economic diversity. Therefore, the strength of the stock market is undoubtedly linked to the strength of economic diversity in our country."
Limited market hours
The broker in the Iraqi Stock Exchange, Mohammed Madloul, said in an interview with Shafak News Agency, "The Iraqi market is still backward compared to the countries of the region. For example, Egypt and the Emirates have a price tape for stocks that remains open for 24 hours in public squares and streets, and any citizen can buy company shares from outside the market. However, the situation in Iraq is limited to specific hours, and the market ends between the seller and the buyer during these hours."
He added, "The value of shares of some listed companies is being traded at prices lower than the dinar so far, which represents an image of the small size of investment that the market is suffering from," adding that "the market value of banking sector companies increased from 6.88 trillion Iraqi dinars in 2021 to reach 10 trillion dinars in 2024."
Small market
Economic expert Dhurgham Muhammad Ali said in an interview with Shafaq News Agency, "The Iraqi market is still small due to the lack of large companies and a strong private sector in Iraq, and thus the market's performance reflects the weakness of the various Iraqi development sectors and the public's weak confidence in it."
He explained that “trading in the market is still technically less than its Gulf counterparts, and we lack sound management of investment portfolios, and the value and volume of the stock exchange’s performance is directly proportional to the efficiency of the companies whose shares are listed on it, in addition to the weakness of brokerage firms and the restrictions imposed by the market on their work and the weak influence of the Securities and Exchange Commission, the supervisor and legislator of the local stock exchange.”
Smart devices for the market
For his part, the Executive Director of the Iraq Stock Exchange, Taha Ahmed Abdul Salam, pointed out in an interview with Shafak News Agency, that "economic and political stability play an important role and the future vision of joint-stock companies."
He explained that "the number of joint-stock companies in the market has increased from 105 to 107 companies, and we are working on listing new companies, which all play a role in attracting new investors."
He added, "The Iraqi market signed a contract with the Egyptian Stock Exchange to use OMS, which allows users to trade via smart devices, and we expect it to be launched in June or July of next year."
The Iraqi Stock Exchange is expected to witness a significant increase in the coming months and years, especially with the improvement in the revenues of the listed companies and the development of their businesses, which makes it a market capable of attracting domestic and foreign investments.
Buy Me a Cup of Coffee
Finance Committee: Government and political wrangling bear responsibility for delay in approving budget
confirmedCommittee MemberParliamentary Finance Minister Hussein Mounes said on Thursday that the current government and successive governments are the reason for the delay in approving budgets and violating the law.ManagementFinance,Pointing
He pointed out that "the delay in approving the budget affects some government projects, but the operating budget, salaries and some service projects remain ongoing and are not affected, because we approved a three-year budget extending until 2025."
He considered that "there is no need to approve legislation requiring that the budget not be delayed because the lawManagementThe Finance Ministry is clear and obliges the government not to delay the budget.
He pointed out that “there is a problem with the planning budget not matching what is happening on the ground,” indicating that “there should be an additional task for the Revenue Monitoring Authority to monitor the funds that enter and are spent from the governorates,” while he pointed out that “political tensions are also the ruling factor in obstructing the budget.”
Economist warns of falling oil prices and its repercussions on the budget
Economic researcher Diaa Abdul Karim warned of a decline in oil prices with increased production and increased supply, noting that the repercussions of this decline will harm the country's federal budget.
Abdul Karim told Al-Maalouma, “The issue of voluntary reduction in oil production will not last long, especially with the possibility of increasing oil production, and this will lead to an increase in the quantities of supply in the markets and consequently a decrease in prices."
He added that "the failure of some countries to commit to this reduction will lead to harm to other countries, which may push the remaining countries to stop the voluntary reduction and move towards increasing the quantities produced during the coming period."
He pointed out that "increasing production will lead to a decrease in oil prices in global markets, and this will cause great harm to the federal budget of the state, in light of the increase in operating expenses, especially since the amounts paid as salaries amount to about 65 trillion dinars.”
Parliamentary Finance: Investment projects will not be affected by a lack or delay in funding in 2025
Jamal Kocher told Al Furat News Agency, "Investment projects and their impact on the delay and lack of funding for the 2025 budget will not be affected and their disbursement will continue because the budget is three-year and the continuation of disbursement will be through the continuation of disbursing the budgets for the years 2023 and 2024, and the legislation of the 2025 budget."
He explained that "the suspension will be immediate from 12/25/2024 for the final accounts and disbursement will begin after that."
By 2025, the Iraqi economy is expected to begin achieving a tangible recovery, with strong growth in its non-oil sector and increased investments in areas such as technology and infrastructure. If the required financial and structural reforms are implemented, Iraq may be able to reduce its dependence on oil and strengthen its private sector.
Central Bank, Correspondent Bank and Trader Reassurance
The observer of the Iraqi market indicates that there are great concerns among economic and commercial circles in particular about the continuation of their foreign trade in light of the decision of the Central Bank of Iraq to cancel the foreign transfer platform, through which the dues of factories and international companies dealing with the Iraqi trader are secured.
Foreign transfer operations go through several stages, the first of which was called the currency auction, then the currency sale window, and since 2003 the platform has been adopted, reaching the "enhancement" stage that will start at the beginning of next year, which will adopt transfer mechanisms with international standards that do not allow tampering with Iraqi funds and the country's wealth.
All these stages that foreign transfer operations have gone through were organizational stages, as the new stage works to avoid the defects of its predecessor and organize the money transfer process that was accompanied by many doubts, reaching the "enhancement" stage by adopting a solid global correspondent bank with an accurate working mechanism that depends on the principles of foreign transfer.
When we follow the current work mechanism, we find that the current transfers of the Central Bank have actually begun to adopt the new phase "enhancement", as we learned that the "enhancement" work mechanism is not complicated, but rather highly flexible and its requirements are easy and are currently in effect, which gives the transfer mechanism flexibility and the transfer operations are carried out without any defects and the local market is not affected, as the mechanism is approved in advance.
Here, banks that have a solid correspondent will have the role in the transfer by adopting the enhancement mechanism and their number is limited, although the directives of the Central Bank of Iraq went to instruct private banks from the beginning of the year to have a solid global correspondent bank to complete the transfer process in an integrated manner between a local bank and another international bank according to international standards, and to provide the service to the Iraqi importer.
Iraq, despite the development in financial performance and the insistence of the government and the Central Bank to adopt advanced systems, especially electronic payment, which was found in Iraq more than a decade ago and we have come a long way, but confidence in the Iraqi financial sector requires more work, as some banks face difficulty in obtaining a global correspondent bank.
Today, operating and unsanctioned banks face a new regulatory issue that requires the presence of an external correspondent, a “sound global bank.” Most banks have stumbled upon this matter, which requires the intervention of the responsible authorities, who are supposed to have strong relationships with major global banks, especially since the Central Bank prefers to deal with correspondents who have weight and adopt benchmark standards in performance. There is more to come.
Experts propose restructuring some banks in line with government banks
Financial and banking experts and specialists stressed the need to double efforts aimed at restoring customer confidence in banks, stressing that this step would absorb the accumulated cash mass and increase the volume of deposits, calling at the same time for the restructuring of some private banks, similar to the governmental ones.
Financial advisor Abdul Rahman Al-Shaikhli told Al-Sabah: The Iraqi banking system was suffering from many problems, especially before 2003 due to the lack of private banks, but after 2003, work expanded in establishing many banks, but most of them did not keep pace with international systems and standards, so they suffered from many problems.
Restructuring
Al-Shaikhli added that during the last year and a half, specifically after the imposition of US Federal sanctions on some banks, they all began seeking to restore their status in a manner that is consistent with international standards, stressing the need to restructure some banks so that they are supported by international standards.
Hoarding money
The financial advisor pointed out the need to restore trust between the banking institution and the customer, as it was lost a long time ago, which prompted citizens to hoard their money outside banking channels in order to maintain its disposal at the appropriate time, because some private banks, due to circumstances beyond their control, mismanagement and other matters, have distanced citizens from banks.
Electronic systems
The spokesman pointed out the need to move completely towards automation and the use of modern electronic devices in a manner commensurate with the large size and responsibility undertaken by banking institutions, stressing that recently these banks have begun to change their work towards electronic systems according to the government's directions.
Sound system
Al-Sheikhly explained that the Prime Minister has recently focused on a very important aspect, which is the restructuring of government banks first, and then private banks, as government banks, especially in Rafidain Bank, have begun and the completion rate of this project has reached 74 to 75 percent, and there is only less than 25 percent left, and it may be completed soon, and thus we will have a wonderful model for a very sound banking system that we can adopt and follow in other banking institutions.
Serious steps
For his part, Mustafa Akram, an expert in financial and banking affairs, said in an interview with Al-Sabah: The government has begun serious steps to rehabilitate and develop the Iraqi banking system, as most banks, especially private ones, suffer from backwardness as a result of monetary policies, indicating that the government has focused on automating the work of banks and introducing an electronic payment system in order to develop the Iraqi banking system.
Digital transformation
It is noteworthy that the Association of Private Banks recently announced an increase in deposits in the banking sector during the past two years, while indicating the government's great interest in the recent period in relation to digital transformation in general and the shift towards an electronic payment system, and that "during the past two years, deposits in the banking sector have increased, and that about 75 percent of the monetary mass is outside the banking system and requires great effort to motivate citizens, companies and institutions to use the banking system more, which is currently happening, but this type of work needs to be accelerated to control financial operations in Iraq."
Iraq and BP agree to redevelop Kirkuk fields
The British company BP announced on Thursday that it had reached an agreement with the Iraqi government on the technical terms for the redevelopment of oil and gas fields in Kirkuk Governorate.
“Today’s signing is an important step towards reaching a fixed-term contract,” BP executive vice president William Lynn said in a statement.
“We are grateful to the Iraqi government for its continued support of BP’s activities in the country, particularly around Rumaila, and for its dedicated engagement in advancing negotiations on the potential future development of these critical fields in and around Kirkuk,” Lynn added.
BP said negotiations are expected to be completed in early 2025.
The company was part of the consortium that discovered oil in Kirkuk in the 1920s, and Kirkuk now appears to be key to BP's exploration and production strategy.
The move by Iraq and BP on Thursday comes on the heels of a memorandum of understanding signed by the two sides in August to invest and explore in the region.
In August 2024, a comprehensive petroleum memorandum of understanding was signed between the Ministry of Oil and the British Petroleum Company (BP) to develop the Kirkuk fields for oil and gas production.
BP is one of the largest foreign players in Iraq's oil sector, with oil production dating back to the 1920s when the country was still under British mandate.
According to the World Bank, Iraq has 145 billion barrels of proven oil reserves, among the largest in the world. But Iraq hopes its oil reserves will exceed 160 billion barrels.
Iraq, OPEC's second-largest producer after Saudi Arabia, currently has the capacity to produce nearly 5 million barrels per day.
It also hopes to increase its natural gas production to help reduce its dependence on imports to meet its energy needs, especially gas imported from Iran, which is necessary to power its electricity.
Amidst the challenges... What is Iran's plan to save its currency?
The imminent return of US President-elect Donald Trump to the White House and rising tensions with Israel have put pressure on the Iranian currency, the rial, to lose another chunk of its value and hit a new record low.
The European Union has added further pressure on the Iranian rial, after announcing its intention to activate the “trigger” mechanism, following Tehran’s condemnation by the International Atomic Energy Agency’s Board of Governors last month for “not cooperating sufficiently” in its nuclear program.
After the Iranian press used to publish daily reports about the decline in the value of the currency against the dollar, the Iranian government's economic team announced its plan to limit the decline of the rial and curb the prices of hard currency in the markets.
Supply and demand
In a move aimed at bridging the gap between the government exchange rates and the parallel market, the Central Bank of Iran has cancelled the government pricing of hard currency allocated for importing some basic commodities, starting last Saturday, so that the price of the green currency will be determined according to the mechanism of supply and demand between exporters and suppliers in the consensus market designated for trading hard currencies.
Following this move, the consensus price of the dollar stabilized the next day at around 600,000 Iranian rials, but it continued to rise on Monday and Tuesday in the “NIMA” market for foreign exchange trade at 613,000 and 617,000 rials, respectively.
In the parallel free market, the price of one dollar jumped to 768 thousand riyals last Monday, then touched the threshold of 778 thousand riyals yesterday, Tuesday, after trading at about 733 thousand riyals, on the eve of the launch of the new mechanism.
Objectives and justifications
The Central Bank of Iran's move came after a number of factories refused to continue their activities due to the accumulation of losses resulting from the mandatory pricing, as they were forced to display their export revenues in the government market, and sell their hard currency at prices lower than their real price, and in return buy raw materials according to the parallel market prices.
Iranian Economy Minister Abdolnaser Hemmati said that implementing this mechanism is a preliminary step towards getting rid of the mandatory pricing, especially in the hard currency market, adding that the mandatory pricing will lead to financial corruption, rent distributions and exacerbate difficulties in the hard currency market.
In a tweet on the X platform, Hemmati wrote that unrealistic prices cannot be defended without containing inflation, and despite the feasibility in the short term, it will not last long, warning that continuing to work with mandatory pricing would eliminate the national reserves of hard currency and undermine the country's economic security.
A strong shield to protect the economy
A segment of Iranian experts believe that the Central Bank aims, through its measures, to encourage factories to produce and export.
Economic writer Hamid Sayed Qurbani welcomed the new mechanism, considering it to be in the interest of economic development through supporting exports, and also in line with the restrictions that should be imposed on imports in order to achieve comprehensive self-sufficiency and presence in foreign markets.
In an article titled “The harmonious currency; a first step towards national development” published on the (Economy Online) website, Sayed Qurbani believed that the new mechanism will reduce the volume of unnecessary demand for imports, and contribute to eliminating the false demand for hard currency, leading to a reduction in its prices in the markets, transferring profits from the suppliers’ basket to exporters, and supporting national production.
Given the national fear of shrinking oil exports with Trump’s return to the White House by imposing more sanctions, which could lead to an increase in the currency’s price in the markets, the author likens the new mechanism to a strong shield that will protect the national economy from external shocks to the exchange rate.
Political developments
In contrast, Iranian economic expert Albert Baghzian recalls the obsession of successive Iranian governments with unifying the exchange rate and bridging the gap between official prices and the free market, stressing that the harmonious price mechanism will succeed if it satisfies suppliers and exporters and spares them the need to consult the black market for supply and demand, adding that he does not expect the new mechanism to succeed.
In an interview with Setareh Sobh newspaper, Baghazian considered lifting foreign sanctions a condition for the Iranian economy to get rid of the crises of high hard currency prices and the decline in the value of the national currency, explaining that the exchange rate in Iran is affected by political developments more than economic indicators and supply and demand in the markets.
He said: “Given the reality of sanctions, tension in Syria, and Trump’s return to power in the United States, concern will remain in the Iranian hard currency market, because providing hard currency in sufficient quantities is a condition for talking about unifying the exchange rate, which encourages the strengthening of the national currency and the decline in the value of foreign currencies.
The Iranian academic said that his country suffers from a problem in providing hard currency due to the sanctions, even the revenues from oil sales return to the country in the form of goods, stressing that imposing sanctions on the economy is equivalent to cutting off a person’s limbs and paralyzing his life, as the major powers have been imposing embargoes instead of wars and military attacks.
The fall of the lion
On the other hand, a third segment in Tehran senses a direct relationship between the fall of Bashar al-Assad’s regime in Syria and the acceleration of the decline of the Iranian currency and its recording of a new record low against the dollar, due to the major repercussions of the regional political development on the Iranian economy.
Although the value of trade exchange between Iran and Syria did not exceed $170 million during the past year, the fall of Assad paints a foggy horizon for Tehran’s dues to Damascus, which are estimated at tens of billions of dollars.
In this context, the analytical website (Bazaar News) published an article entitled “The Syrian Crisis and Its Impact on the Iranian Economy,” in which its author believes that the new scene in the Levant will expose part of Iranian investments in the Syrian infrastructure and its military and security sectors to destruction.
The article believes that the lack of security in Syria may affect Tehran's investments in neighboring countries, as well as undermine the Iranian corridor linking the East and the West and reduce its position in front of the corridor planned to link India and Europe via the Middle East (IMEC).
The region .. great efforts to attract investment companies
The Kurdistan Region Investment Board seeks to increase the number of local and foreign investors to work in the provinces and cities of the region, by providing full facilities to motivate and encourage them to increase the volume of investment.
Private sector growth
The head of the Kurdistan Region Investment Board, Mohammed Shukri, said in an interview with “Sabah”: The board, through its eight directorates spread across the provinces and independent administrations in the region, is seriously and diligently seeking to provide full facilities to investors and increase the volume of investments and the number of local, Arab and foreign investors and increase the work of projects by the private sector in the region, indicating that the regional government has invested more than 68 billion dollars, of which Erbil’s share amounted to more than 61 percent.
Statistics and figures
Shukri added that since the establishment of the Investment Board in the region, more than 1,400 investment licenses have been granted, some of which were cancelled due to shortcomings in the work of their investors, while work continued with more than 1,250 investment licenses, noting that during the past five years, approximately 430 new investment licenses have been issued.
He pointed out that significant progress and qualitative steps have been made in the comprehensive investment process in establishing a strong economic infrastructure despite the crises and obstacles that have plagued the country and the region in general, stressing that intensive efforts are continuing to encourage investors according to the needs of the regions and the importance of the projects. Encouraging
investors
Shukri stated that the regional government seeks to facilitate the procedures for attracting investors, as eight branches of the authority have been opened in the governorates and independent administrations of the region and have full powers to grant investment licenses to investors, considering it a basic and primary step to provide facilities according to the city, region, geographical location and sector that needs investment and work in it.
Government privileges
The head of the Kurdistan Investment Board pointed out that the regional government has given great privileges to investors, including a 10-year tax exemption through the investment law, to which additional years are added if the investor is a foreigner or a partner of a local investor, as well as providing privileges and facilities to the less developed areas in the region according to the decision of the regional council of ministers, noting that the challenges facing investors, including local ones, are great, and we consider them a wealth for the region, as they have contributed with the support of the government to many large and pioneering projects, overcoming obstacles and impediments, and moving forward in various sectors, including agriculture, industry, tourism, trade, housing, services, education, health, and others.
The qualifications of the region,
and he pointed out that the Kurdistan Region encourages and provides facilities to investors more than other countries in the region through a package of privileges and incentives included in the Investment Law No. 4 of 2006 in the region, in addition to other facilities provided by the Supreme Investment Council, including the favorable conditions that the Kurdistan Region enjoys for foreign investors, such as political stability, cultural pluralism, democracy and security, stressing that these conditions make the Kurdistan Region more attractive to investors among many countries in the region.
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