Al-Sudani: We are a cornerstone in the stability of energy markets.. This is how we are viewed
Speech at the Iraq Conference
Prime Minister Mohammed Shia al-Sudani said on Tuesday that Iraq has become a cornerstone in the stability of global energy markets, and is on the path to becoming a regional center for energy industries, indicating that countries have begun to view it in this way, and its position has begun to acquire a brighter image, during his speech at the Iraq Energy Conference.
The video for this blogpost is below here:
Al-Sudani's office said in a statement:
Prime Minister Mohammed Shia Al-Sudani inaugurated today, Tuesday, the Iraq Energy 2025 Conference, which was held by the Iraq Development Platform in the capital, Baghdad, under the slogan (Together for a Promising Energy Future).
His Excellency stressed, in his speech, that the conference is an opportunity to learn about the state’s policies and programs in the energy sector, which occupies a pivotal position in all the government’s development plans and its commitment to modernizing and developing it, in parallel with the goal of diversifying the economy, in a way that positively reflects on other sectors.
The Prime Minister explained that a tangible digital achievement has been made since the government assumed its responsibility, through a set of commitments, most notably stopping gas flaring by 70%, benefiting from oil wealth, investing in natural gas, and expanding the production of petroleum derivatives, stressing the approach to full self-sufficiency in fuels and moving towards exporting gas oil, within a vision that aims to convert 40% of oil production into transformation industries by 2030.
Mr. Al-Sudani added that the government has proposed integrated energy projects to expand the benefit from oil production in one location, the most important of which is the Artawi field in Basra Governorate, and the accompanying project to desalinate seawater, generate solar energy, in addition to investing in gas, indicating that maximizing the non-oil economy is accompanied by maximizing returns from oil wealth, through expanding refining operations and petrochemical industries.
The following are the highlights of the Prime Minister’s speech during the conference:
The government has moved towards diversifying sources of income horizontally to solve the problems of unemployment and the single economy, towards creating real job opportunities.
Partnership with the private sector was the first window for development, and one opportunity to work with it leads to the creation of many other opportunities.
The government has relied on strategic projects that support all sectors of development and the economy, the most important of which is the “Development Road.”
We have included in the design of the development road lines lines for transporting oil and gas, in addition to communications to achieve the connection between Asia and Europe, and to provide investment opportunities.
We have developed a plan to invest in human capital and develop capabilities and skills to keep pace with technology and techniques, especially with the expansion of artificial intelligence applications.
The electricity sector has become an important developmental and economic nerve, and it can be transformed into a basic gateway to development in Iraq.
Developing the energy transmission and distribution network, and adopting modern and smart technologies, will reduce waste, lower harmful emissions, and enhance sustainable development.
The Ministry of Electricity announced the new economic model for thermal power plants that aims to produce an additional 15,000 megawatts.
The large and important package of energy production projects for gas stations will be announced according to the new model.
Partnership with the private sector is important to save time and effort in confronting climate change and addressing water scarcity in Iraq.
We sought to introduce renewable, clean and alternative energy elements, and we started actual implementation in the field of solar energy.
We have renewable and clean energy projects that will have a production capacity of 4,875 megawatts upon completion.
Purchase of home solar energy systems as part of the Central Bank’s support for the (1 trillion dinars) initiative of loans.
We are proceeding with the electrical connection with the Gulf countries and Turkey, reaching the European Union electricity grid, to achieve diversity and integration in the energy field.
Iraq's global standing is gaining a brighter image in economic growth, reforms and increased levels of cooperation in all energy forums.
Iraq has become a cornerstone of global oil market stability and is on its way to becoming a regional energy hub.
Iraq contributes to the stability of the global oil market by relying on a strong and solid economy.
Chairman of the Media Commission and the American Chamber of Commerce discuss developing the digital economy and technology
Al-Muayyad's media office stated in a statement received by {Al-Furat News} that "the latter received at the headquarters of the authority in Baghdad, the President of the American-Iraqi Business Council and Vice President of the American Chamber of Commerce, Steve Lutes, and during the meeting, the major transformations that Iraq is witnessing were reviewed, including the urban revolution and the noticeable developments in the infrastructure."
The discussion also addressed the Iraqi media experience, which is a model to be emulated in the region, and the great achievements witnessed by the media sector after 2003, including the remarkable expansion in the number of media institutions.
The two parties discussed the importance of the communications and technology sector in supporting the Iraqi economy, as it represents the second source of state resources after the oil sector. The significant growth in the authority’s resources, which have tripled over the past two years, was also discussed, according to the statement.
He added, "The meeting emphasized the importance of strengthening the presence of American technology giants in Iraq, as this represents an added value to the national economy, transfer of modern technologies, and development of technological infrastructure."
He added, "The two sides also discussed the necessary facilities to support Iraqi private sector investments and enhance its presence in the United States, in a way that ensures a high level of economic and technological cooperation between the two countries."
The meeting also reviewed opportunities for cooperation with American companies to develop the digital economy in Iraq, enhance technological infrastructure, in addition to providing support in developing regulations and legislation that serve the private sector, and the areas of digitization and communications that are witnessing rapid developments.
Signing a memorandum of understanding to establish Iraqi companies with joint capital with the Emirates
Financial cooperation between Baghdad and Abu Dhabi
Prime Minister Mohammed Shia Al-Sudani sponsored, today, Monday, the signing of a memorandum of understanding between the Iraqi Securities Commission and the Abu Dhabi Securities Market, to enhance cooperation and financial services. In light of the memorandum, Emirati investments will be encouraged in establishing Iraqi companies with Emirati-Iraqi capital, and research into trading them in both markets.
Al-Sudani's office in a statement:
Prime Minister Mohammed Shia Al-Sudani received today, Monday, the CEO of the Abu Dhabi Securities Market, Mr. Abdullah Salem Al-Nuaimi.
During the meeting, ways of joint cooperation in the field of exchanging expertise and developing mechanisms for expanding private sector activities to achieve economic growth were discussed.
The Prime Minister sponsored the signing ceremony of a memorandum of understanding between the Securities and Exchange Commission and the Abu Dhabi Securities Market. The agreement was signed on the Iraqi side by the Chairman of the Securities and Exchange Commission, Mr. Faisal Wissam Al-Haims, and on the Emirati side by Mr. Abdullah Al-Naimi.
The MoU includes axes of cooperation in several areas, the most important of which are enhancing and developing the monitoring of daily trading in the market, and brokerage firms, cooperation in the field of dual listing conditions and mechanisms, and in developing and using technological applications and applications and mechanisms for subscriptions and initial listings, as well as in the field of cases of suspending trading on shares and timings for re-trading, and the requirements for licensing REIT funds.
The memorandum also included the exchange of expertise in the field of training, especially the activities of supervision and information technology, trading and clearing, digital transformation and financial analysis, depositing, managing funds and portfolios and supervising them, cooperation in the field of Islamic bonds and sukuk, depositing, settlement and independent financial services, and the requirements and mechanism for opening accounts for foreign investors from outside the country.
In light of the memorandum, Emirati investments will be encouraged in establishing Iraqi companies with Emirati-Iraqi capital, and their trading in both markets will be explored.
Financial disclosure and transparency is a strategic approach for the Central Bank
In the past few days, officials in financial and monetary policy were surprised by the statements of some unspecialized analysts and unspecialized media outlets about the crisis of the lack of liquidity in the Ministry of Finance and the Central Bank and the impact of this on delaying the securing of salaries of employees, retirees and social care. The truth is that there is absolutely no such crisis, and this is what the Ministry of Finance and the Central Bank confirmed.
Central banks in the world's countries aim primarily to achieve economic stability by achieving monetary and financial stability according to their programs and strategies that aim to maintain stability in the exchange rate of their local currencies against other foreign currencies and build sufficient foreign reserves according to special international standards. Banks are also evaluated based on other standards related to facing crises, challenges and economic and political shocks in their countries and controlling stable rates of inflation and interest rates and implementing compliance systems and rules and combating money laundering and terrorist financing.
The Central Bank of Iraq's journey during 2023 and 2024 has proven that it is moving steadily towards achieving the objectives of monetary policy and with a consistent and strategic approach that relies on transparency and disclosure of financial data and dealing with international financial organizations and institutions, based on the keenness to restore confidence in international banking transactions, which Iraq suffered from in previous years due to reputational risks and the negative media impact towards harming the Iraqi economy and leaking inaccurate and fabricated data, information and statements intentionally or by relying on data from other than its official source, which is the Central Bank exclusively. This led the Central Bank's management, which assumed responsibility in 2023, to draw up its third strategy, and one of its most prominent main and sub-goals was to adopt transparency and disclosure locally and internationally about the progress of the results achieved by the financial and banking sector and adherence to the standard international standards applied by reputable international banks, which led to the creation of a new and balanced relationship with international banks and banking institutions based on trust in the financial data provided and announced by the Central Bank.
This is what he announced from statistics, data and accurate analyses of what was achieved during the past two years. These are positive indicators achieved by the Central Bank for the third quarter of 2024 compared to the same period in 2022 and 2023, as the total deposits in banks operating in Iraq grew by (4.2%) and amounted to (127.6) trillion dinars, compared to its value of (122.4) trillion dinars in the third quarter of 2023, and the cash credit granted by operating banks also recorded a growth of (11.6%) and amounted to (72.7) trillion dinars, compared to its value of (65.1) trillion dinars in the third quarter of 2023.
Indicators and data showed that the narrow money supply in Iraq recorded a growth of (4.1%) in the third quarter of 2024, as its value reached (158.6) trillion dinars, compared to its value of (152.4) trillion dinars in the third quarter of 2023. In contrast, the broad money supply in Iraq recorded a growth of (3.3%), as its value reached (179.1) trillion dinars, compared to its value of (173.9) trillion dinars in the third quarter of 2023.
The Central Bank's gold reserves also recorded a significant growth of (57%) in the third quarter of 2024, reaching (16) trillion dinars, compared to (10.7) trillion dinars in the third quarter of 2023, and the annual inflation rates in Iraq are among the lowest annual inflation rates in the countries of the region for the months of August and September of 2024, ranging between (3.1%) and (3.7%) respectively, which reflects price stability and the success of monetary policy in Iraq.
This confirms that the data issued by the Central Bank, published on its website and included in all media releases it issues, refute what is stated by non-specialists, such as representatives and analysts in various media outlets, especially regarding liquidity, reserves and salaries.
Through my analysis as a follower and specialist, I believe that the Central Bank’s disclosure of financial data with the required accuracy will greatly help restore confidence in our national economy and the Iraqi banking sector locally and internationally, because disclosure, transparency and credibility will contribute to restoring confidence in the Iraqi banking sector and raising the rate of financial inclusion.
Article 140 is close to resolving the transactions of deportees and arrivals in Kirkuk
The Article 140 Committee in Kirkuk announced on Monday that there are approximately 2,500 deportees and 2,000 expatriates whose financial dues allocated by Baghdad are being disbursed by the committee, while it confirmed that the government is paying attention to resolving these files by allocating a budget estimated at about 100 billion annually to pay these special dues.
The director of the Article 140 Committee in Kirkuk, Hardi Khader, told Shafak News Agency, "The committee was able to complete 2,969 exchange transactions for expatriates and 1,699 exchange transactions for Kurdish deportees during the years 2023 and 2024. There are transactions ready for disbursement, about 5,728 for deportees and 3,931 transactions for expatriates, and these transactions are updated."
Khader added, "The Supreme Committee for Article 140 in Baghdad is the one that allocates the budget and allocates the amounts for the bonds by it, where an amount of 100 billion is allocated annually to cover the disbursement of compensation to the displaced Kurds and Arabs arriving in Kirkuk."
He added that "the committee is working to facilitate the work of the deported Kurdish and Arab visitors who meet the conditions, and the transaction is submitted to the general headquarters to disburse their financial dues through cheques organized for that purpose."
Article 140 stipulates the cancellation of the demographic change policies pursued by Saddam Hussein’s regime in the disputed areas in favor of the Arabs at the expense of the Kurds, and then a census of the population before the final step, which is to hold a referendum in which the population determines whether they wish to join the Kurdistan Region or remain under the administration of Baghdad.
The implementation stages of the article were scheduled to be completed by the end of 2007, but security and political problems prevented this .
In 2019, the Federal Supreme Court ruled that Article 140 of the Iraqi Constitution would remain in effect, stressing that this would continue until its requirements were implemented and the purpose of its legislation was achieved.
Iraq boosts financial stability with huge dollar and gold reserves in US, Europe
A country that has huge reserves of hard currency is considered an economically stable country that can intervene at any time to address imbalances in the balance of payments structure. It also provides an important element in establishing the country's creditworthiness, enhances the country's credit rating in international transactions, and provides cover for its local currency.
The country that has reserves takes into account their diversification (securities, deposits, gold and bonds...) in addition to geographical distribution to reduce exposure to risks and provide returns that ensure the sustainability of these reserves.
Diversified financial assets
In this regard, the Prime Minister's Advisor, Mazhar Mohammed Salih, explained to Shafak News Agency, "Countries seek to diversify their reserves to include different currencies and various financial assets to achieve greater stability, and the US dollar is the main reserve in the reserves of these countries, because it is the most accepted and used global currency in international transactions and the most flexible."
He added, "Most countries prefer to hold assets that provide them with a fixed and stable income, such as US or European treasury bonds that can generate annual interest, while gold does not generate fixed returns like government bonds."
Saleh pointed out that "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."
The foreign exchange reserve is the country's reserve of foreign currencies, and is called the foreign exchange reserve. The purpose of the reserve is to protect itself and maneuver with it in times of economic recession or war.
The Central Bank of Iraq announced in 2024 that Iraq has foreign currency reserves exceeding $100 billion.
Bond investment
For his part, the economic expert and professor of economics at the University of Iraq, Abdul Rahman Al-Mashhadani, stated that “the existing reserves of hard currencies are the reserves of countries, not governments,” indicating that “Iraq possesses a group of them amounting to approximately 106 billion dollars, of which 16 billion dollars is the value of gold in these reserves, and the rest is foreign currencies.”
Al-Mashhadani explained, during his talk to the agency, that "gold as a reserve cannot be invested except by buying and selling. Iraq sells when the price of gold rises and buys when the price falls, and thus achieves profits in this field," adding, "Its storage in international banks is subject to fees."
He pointed out that "the currency reserve is divided into more than one section, some of which are invested in US Treasury bonds in the range of 31 to 34 billion dollars, and the rest are used for debts," noting that "Iraq does not have sovereign funds like Saudi Arabia and others for surplus currencies, which are invested in various fields."
Iraq has 152.6 tons of gold reserves, which makes it 29th in the world out of 100 countries listed in the reserves table, and third in the Arab world after Saudi Arabia and Lebanon.
Foreign investment
In contrast, the financial expert and former general manager of the Central Bank, Mahmoud Dagher, pointed out that “Iraq has more than 100 billion dollars distributed among the world’s banks and central banks, especially the US Federal Reserve, the European Bank, the Bank of England in Britain, the Basel Bank in Switzerland, the Emirates, and Saudi Arabia.”
Dagher told Shafaq News Agency, "These reserves contain foreign currencies, bonds, and gold, and are managed by the Central Bank and achieve good financial returns. This is what is called foreign investment."
Coin cover
In addition, Jamal Kojer, a member of the Parliamentary Finance Committee, told the agency, "Iraq's large reserves of hard currency, including gold, provide cover for the local currency and give it stability."
Koger added, "Many bet on the fall and demise of the currency, and therefore these reserves make the central bank intervene in the event of any imbalance facing financial policy."
Variable reserves
But the economic expert, Hilal Al-Taan, saw that “all countries of the world boast about the amount of hard currency they have as a reserve, and this currency consists of the currencies of countries such as the dollar, the euro, and the franc, as well as gold.”
Al-Taan concluded, during his interview with Shafaq News Agency, that "Iraq is among the countries that were able, after 2003, to increase their currency balance to more than 110 billion dollars, and also to increase their gold balance to more than 150 tons."
He concluded his speech by saying, "These reserves are constantly changing in terms of the returns that Iraq obtains, through investing these currencies as interest in banks and as bonds."
Parliamentary Committee: Government Focuses on Supporting Non-Oil Revenues and Attracting Global Investments
The Parliamentary Economic Committee confirmed, on Monday, the development of a plan to study the financial situation and encourage non-oil revenues, while indicating the government's support for the move towards non-oil revenues that strengthen the national economy and attract global investments.
Committee member Ruqayya Al-Nouri said in a statement reported by the official news agency, and seen by "Al-Eqtisad News", that "the committee supports economic trends that benefit the country in general," indicating that "there are many opportunities in the field of non-oil revenues."
She added, "The committee needs to work together to study the financial and economic situation and encourage non-oil revenues while monitoring their distribution," indicating that "Iraq has a vast stock of natural resources, and is a rich country not only in terms of oil, which encourages international companies to invest."
She added, "The government of Prime Minister Mohammed Shia al-Sudani greatly supports the diversification of non-oil revenues and constantly emphasizes this trend."
Ministry of Commerce and the Financial Supervision Bureau discuss preparing financial statements for the second half of 2024 and evaluating performance
The Ministry of Trade, in cooperation with the Federal Financial Supervision Bureau, discussed preparing financial statements for the second half of 2024, evaluating performance, addressing the comments raised, and answering inquiries.
During an expanded meeting held at the ministry’s headquarters with the Chairman of the Federal Supreme Audit Bureau, Ammar Sobhi Khalaf, Minister Athir Dawood Al Ghurairi stressed the ministry’s full readiness to answer all inquiries and comments clearly and accurately, supported by evidence, while stressing the importance of continuing communication to coordinate joint work, with the aim of achieving integration in performance with the Bureau.
The minister pointed out that “the visit of the Chairman of the Bureau and his accompanying teams is an important step that reflects the Bureau’s keenness to support the ministry’s performance, stressing that the Supreme Audit Bureau is the most important institution in evaluating government performance impartially and professionally.”
The minister also directed the general departments to expedite the completion of information and financial data for various activities and include them in the second half report for 2024, taking into account the observations indicated by the Bureau during the meeting to ensure the preparation of a comprehensive report.
For his part, the Chairman of the Supreme Audit Bureau stressed that the Bureau’s work complements the ministry’s work, and that the ministry’s success in its performance is a reflection of the joint audit footprint. He added that the meeting at the ministry’s headquarters shows the keenness to support efforts and enhance joint cooperation.
Khalaf pointed out the importance of completing the financial data for previous years and resolving the anti-corruption files related to the second quarter of 2024, within the specified timeframes, and in line with the observations indicated by the Bureau.
The meeting witnessed a discussion of the Bureau team's observations and the inquiries of the general managers, where the necessary treatments were provided to overcome the obstacles in the report being prepared.
At the end of the meeting, the two sides agreed to continue joint coordination and organize an intensive workshop targeting the financial and budget departments, with the participation of experts from the Bureau, to evaluate performance and select qualified competencies to prepare financial reports professionally.
Kurdistan Regional Government opens bank accounts for 290,000 retirees
The Kurdistan Regional Government announced the opening of bank accounts for 290,000 retirees in the region, with the aim of facilitating access to their financial dues and enhancing financial inclusion for retired citizens.
In a move aimed at improving the financial situation of retirees in Kurdistan, the regional government stressed in a statement seen by Shafak News Agency the need to resubmit bank account registration forms through the "My Account" program.
This decision comes after many retirees received registration forms, as bank accounts will be reopened for them so that they can receive their financial dues through the banking system.
The statement indicated that more than 290,000 retirees will benefit from this initiative, as they will obtain new bank accounts that will contribute to facilitating financial transfer operations and providing them with better banking services.
Warnings of Trump's move to lower oil prices.. Iraq is the first to be affected
The Economic and Development Committee in the Iraqi Parliament warned of the danger of the decline in oil prices in the global market and its significant impact on the Iraqi budget, and consequently of major financial and economic crises for Iraq in the coming months.
Trump's statements about reducing oil prices raised concerns among countries whose economies depend on oil revenues, including Iraq, amid expectations and warnings of a setback in the oil market as a result of these statements and the new US administration's plans in this regard.
The Vice Chairman of the Committee, Yasser Al-Hussaini, said in a press statement that "the size of Iraq's annual oil and non-oil revenues is estimated at approximately (149) trillion dinars, and oil revenues constitute more than (85%) of them," noting that "this confirms that the total reliance on oil sales to finance the budget is on oil sales, and any decrease in prices will have an impact and repercussions on financing the budget in the coming months."
Representative Al-Hussaini explained that "if the price of oil falls by one dollar from the fixed and official price in the budget, this means that Iraq will lose an estimated one billion dollars annually," and therefore "US President Donald Trump's efforts to reduce global oil prices will cause Iraq major financial and economic crises, due to the reliance on oil alone to support and finance the budget."
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Today JAN 28 2025
The Coordination Framework reveals its position on US President Donald Trump
The Coordination Framework, which brings together the Shiite political forces that make up the government of Mohammed Shia al-Sudani, confirmed on Monday that it is not afraid of the new US President Donald Trump, regarding imposing any sanctions on Iraq during the next phase.
The representative of the framework, Ali Nima, said in a press interview that the framework has no fears of Trump, and promoting fears regarding imposing any sanctions on Iraq is unreal and far from reality.
Nima added that "Baghdad and Washington have good relations at various levels," adding: "We seek and work to strengthen this relationship during the next phase."
He pointed out that "the United States of America is a state of institutions and has a fixed policy in dealing with countries, including Iraq, and changing the president of the country does not mean changing that policy and taking hostile decisions towards the state friendly to Washington, including Iraq."
Nima concluded his speech by stressing that "the Coordination Framework has no fear of Trump, and does not believe that the Republican president will do anything towards Iraq, but on the contrary, he will strengthen the relationship during the coming period."
Washington proposes a long-term deal with Iran.. No war, but! - Urgent
An informed source revealed, today, Tuesday (January 28, 2025), a brief verbal message from the White House to Tehran that includes the new US President’s vision for the nature of the relationship with Iran.
The source told Baghdad Today, "A verbal message arrived on Sunday evening from the White House to Baghdad, and from there to Iraqi mediators to convey it to Tehran. It included specific points that represent the summary of Washington's position towards Iran."
The source added, "The message confirmed that the US President is not seeking war with Tehran, but rather aims to reach a long-term deal that ends the instability in the Middle East, while emphasizing the protection of US interests in the region."
He pointed out that "the US President's vision is focused on preventing Iran from reaching the ability to produce nuclear weapons, within the framework of a comprehensive deal that guarantees the superiority of his ally in the region, in reference to Israel."
He pointed out that "Iran has been severely damaged in many regional axes, which provides a new opportunity for Washington to achieve long-term understandings with it, although American messages are still not public and rely on multilateral mediators."
On December 22, a source close to the government of Iranian President Masoud Pezeshkian revealed that US President-elect Donald Trump had delivered a message to Tehran via the Sultanate of Oman in the past few days with the aim of negotiating several files, including the nuclear file.
The source, who requested anonymity because he was not authorized to make an official statement to Baghdad Today, said, “In the past few days, Iran received a message from the elected US administration through the Sultanate of Oman, which is one of the important channels for exchanging messages between Tehran and Washington.”
He added, "Trump's letter to Iranian officials confirms his readiness to negotiate with Tehran and the possibility of reaching a nuclear agreement other than the agreement reached in 2015, from which Trump personally withdrew in 2018."
The Iranian source explained that "Trump will not wait more than a few months to receive a response from Iranian officials regarding their readiness to negotiate a number of files, most notably the nuclear file."
According to the source, the American message suggests that "Trump is very serious about direct, high-level dialogue with Iran at the beginning of his term, and if Iran accepts, there is a possibility of reaching an agreement, although there will be no guarantee that even if an agreement is reached, America will abide by it."
The source believes that the Pezeshkian government believes that Tehran's continued nuclear escalation will not lead to any results and that the file will probably be referred to the UN Security Council in the form of seven chapters of the UN Charter as a threat to international peace and security, and the country will fall into the trap of wide-ranging international sanctions, and Russia and China will join the West in this matter. Unfortunately, this should not have happened, and in less than eight years, the value of the country's national currency has fallen by about 300%.
Last Monday, Iranian Foreign Ministry spokesman Esmail Baghaei said during a press conference, according to what was reported by "Baghdad Today", that he "does not know that Tehran has received a message from Trump."
Last week, the Omani trade delegation headed by the Omani Deputy Minister of Commerce traveled to Tehran and met and discussed with the Minister of Industry, Mining and Trade.
For his part, Iran's ambassador to Oman, Musa Farhang, said on Sunday, "On the threshold of the new year, and with the visit of the Omani Foreign Minister to Tehran, we will witness a new phase of relations between Tehran and Muscat and a new round of regional cooperation between Iran and its neighbors."
Last November, Iranian Foreign Minister Abbas Araghchi said that Iran had “very fundamental and fundamental” differences with the United States that “may not be resolved, but we must manage them so that costs and tensions are reduced.”
On the sidelines of the meeting with the government delegation, he stressed that the Sultanate of Oman's channel is active, and said that there are always communication channels between Iran and America, indicating that "the possibility of exchanging messages between the two countries through the Swiss embassy and other methods still exists."
Finance" resumes meetings to amend the Kurdistan Region's oil item in the budget and warns
The Finance Committee of the Iraqi Council of Representatives announced on Tuesday that it will resume its meetings to discuss the paragraph on amending Article 12 of the General Budget Law in the coming days, noting that increasing the cost of extracting a barrel of oil from the region will cause an increase in the deficit in the general budget.
Committee member, Hussein Mounes, told Shafaq News Agency, "The Parliamentary Finance Committee will resume its meetings in the coming days to discuss the paragraph on amending Article 12 of the General Budget Law, and that the aforementioned article talks about the costs of producing oil in the Kurdistan Region and supervising the mechanism of its export and its financial revenues."
He explained that "the budget law includes calculating the cost of extracting a barrel of regional oil at $6, and the amendment sent by the government calculated the cost at $16 per barrel."
Mounes explained that "the draft amendment to the budget law will make the government pay the costs of extracting 400 thousand barrels per day from the region's oil fields and wells," adding that "increasing the cost of extraction will cause an increase in the deficit in the general budget."
Member of the Parliamentary Finance Committee, Jamal Kojer, had expected, during an interview with Shafaq News Agency on January 7, that the financial budget tables would be sent in February, while he indicated the possibility of delaying its passage due to disagreements over Article 12.
Article 12 of the draft budget law includes compensation for the Kurdistan Regional Government for the costs of production and transportation of oil extraction in the region.
It is noteworthy that the representative of the Kurdistan Democratic Party bloc, Jiay Timur, confirmed earlier to Shafaq News Agency, that "the Iraqi government previously calculated in the budget law the cost of extracting oil at $6, and this is a very small number," noting that "foreign companies that work on extracting oil at a cost of up to $26 per barrel."
In June 2023, the Iraqi Parliament voted on the draft general budget law for the fiscal years (2023, 2024, 2025).
Central Bank Governor announces imminent launch of major initiative to finance industrial projects
The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Tuesday, the imminent launch of an initiative to finance industrial projects, while pointing out that financial stability is no less important than political and security stability.
The Governor of the Central Bank, Ali Al-Alaq, said in a dialogue session during the Iraq Energy Conference, which was followed by "Al-Eqtisad News", that "the initiatives undertaken by the Central Bank represent tools to move the wheel of development and enhance economic stimulus, and they are unconventional policies aimed at supporting the overall economy.
" He added that "the Central Bank is one of the global banking institutions that adopt unconventional monetary policies," noting that "the size of the accumulations in the aspects of backwardness in the infrastructure is a major challenge."
He explained that "the Central Bank is concerned with achieving economic stability, especially since energy factors are directly linked to the economic situation by supporting factories, companies, and others."
He pointed out that "the Central Bank intervenes in supporting and financing various projects, including renewable energy projects, whether through direct or indirect support."
He pointed to "the importance of monetary and financial stability," indicating that "it is no less important than political and security stability."
He continued that "the Central Bank has launched multiple initiatives to finance real estate and small and medium-sized projects, as projects worth 13 trillion dinars have been financed since 2016 until now, which has contributed to the sustainability of the economy, in addition to allocating 1 trillion dinars to encourage citizens and companies to purchase solar energy units."
He added that "there are ongoing arrangements to finance industrial projects in coordination with the Trade Bank of Iraq and the Industrial Bank," indicating that "the liquidity available at the Trade Bank of Iraq will be used to support these projects, in addition to the funds of the Industrial Bank, with the aim of launching a major initiative to finance industrial projects, which is expected to see the light soon."
He stressed that "the Council of Ministers has agreed to enhance cooperation between government banks with a financial surplus to finance industrial projects through the Industrial Bank, as it is the competent authority in this field," stressing "the imminent launch of this major initiative."
The region demands more dollars, and the center and south revolt and refuse to amend the budget
The Kurdistan Region continues its arm-twisting policy to obtain more dollars under the pretext of the dues of the oil companies operating in Kurdistan, despite the fact that the prices of oil extraction in the center and south differ greatly from the costs that the region demands to obtain to pay the money it owes to those companies, at a time when it refuses to hand over any oil and non-oil revenues to the federal government.
The region's ambitions and the illegitimate government's efforts to obtain funds from Baghdad and amend the budget in line with the region's will, faced an angry reaction from the central and southern governorates, whose representatives refused to move towards amending the budget that meets the desires and interests of the Kurdistan Regional Government.
In this regard, member of the parliamentary finance committee, Mohammed Nouri Aziz, told Al-Maalouma, “The representatives of the center and the south expressed their rejection of amending Article 12 of the budget law because it contains clear injustice and violation against the central and southern governorates, especially since the cost of extracting oil in the center and the south is 6 dollars, while the region demands 16 dollars for the cost of extraction per barrel.” He called on the federal government to listen to the voices of the representatives opposing the amendment of paragraph 12 in the budget at a time when the region is extracting and smuggling oil and not handing over the revenues to the federal government.”
On the other hand, MP Amer Al-Fayez confirmed to /Al-Maalouma/ that "the request of the Prime Minister's Office to amend Article 12A of the Tripartite Budget Law, which is concerned with recalculating the costs of production, transportation and export of a barrel of oil produced in the region, is still parliament facing objections, and this is what the Front of Representatives of the Center and South revealed, as the proposal to vote under the dome of Parliament must be preceded by an explanation from the technical committees about the real cost of the production, extraction and export process so that it can be studied objectively and realistically, and therefore passing such an amendment will not be an easy matter.”
Meanwhile, the leader of the United Anbar Alliance, Ahmed Al-Dhari, explained to / Al-Maalouma /, that “the Kurdistan Regional Government, for more than 20 years, has not handed over the oil revenues and border crossings to the central government and has illegally hidden the records of the financial amounts that the regional government obtained and whose fate is unknown despite the formation of joint committees to uncover those involved in stealing huge sums of money that are no less important than the theft of the century,” noting that "the central government rewards the Kurdistan government by sending 320 billion dinars as salaries for its employees, while the regional government refrains from handing over the huge sums it owes to the central government, as the stolen money from oil revenues and border crossings is estimated at 4 trillion dinars annually.”
Legal expert Ali Al-Tamimi explained to Al-Maalouma that “the Council of Ministers and the Parliament can impose sanctions on the regional government by reducing the resources and financial shares granted to the region, and thus the ball is in the court of the government , the Ministry of Finance and the Parliament, and they can resolve matters with the region.”
Parliamentary Finance: Parliamentary pressure on the government to send the 2025 budget tables
The Parliamentary Finance Committee reported today, Tuesday, that there is parliamentary pressure on the government to send the 2025 budget tables.
Committee member Saad Awad Al-Tubi said in a press interview, "Everyone is awaiting the arrival of the 2025 budget tables in order to determine the expenditures and budgets of the governorates and ministries."
He added, "There must be a good equation to calculate the budget amounts and to know the financial liquidity available to the Ministry of Finance to finance the allocations specified in the three-year budget."
He continued: "We are anticipating and waiting for the budget schedules, and parliamentary pressure is being exerted on the government to send the budget schedules soon."
Planning and the World Bank discuss a number of development issues and financing strategic projects
Minister of Planning Mohammed Ali Tamim discussed today, Tuesday, with the Vice President of the World Bank for the Middle East and North Africa, Othman Dioni, joint cooperation and ways to enhance it to serve the development process in Iraq.
The ministry stated in a statement that "Tamim discussed during his reception of Dioni and his accompanying delegation, several topics, including the railway link project between Iraq and Turkey within the development road project, and the electrical link project with neighboring countries, especially with the Kingdom of Saudi Arabia and the State of Kuwait, in addition to discussing cooperation in the field of highway projects, water management, and the development and expansion of Baghdad International Airport.
For his part, the Vice President of the World Bank, Dioni, stressed that Iraq represents a priority, within their future plans, expressing his readiness to support strategic projects in various development sectors.
Between economic experts’ warnings and government denial, the value of the Iraqi dinar is at stake
An informed government source denied, on Tuesday (January 28, 2025), that the Iraqi government has any intention to reduce the value of the dinar against the dollar, despite rumors indicating upcoming measures to confront economic pressures and challenges in the international market.
The source confirmed, in a special interview with Baghdad Today, that "the news about the government's intention to reduce the value of the dinar against the dollar is absolutely incorrect." He added: "The government is working to stabilize the official exchange rate set by the Central Bank, and seeks to control the parallel market. Any change in the exchange rate during the current stage or within the 2025 budget schedules will lead to negative results, and that is why the government is committed to strengthening the current rate."
A different economic vision
In contrast, economist Ziad Al-Hashemi believes that reducing the value of the dinar to 1,450 dinars against the dollar could be a possible step to deal with the repercussions of the economic crises. Al-Hashemi said: “This measure may reduce the financial pressure on the government and reduce the cost of supporting the dinar, but it will negatively affect citizens through deteriorating salaries and rising prices of goods and services.”
Al-Hashemi added: “Devaluing the currency may lead to increased inflation rates due to the loss of confidence in the dinar and the increase in demand for the dollar. This decision, despite its limited positive impact in the short term, will have long-term consequences on the markets and the lives of the Iraqi citizen.”
The political aspect and Trump's role
On the political front, political affairs expert Nabil Al-Azzawi pointed out that US President Donald Trump, who is expected to return to the White House, may change his policies towards Iraq. Al-Azzawi explained: “Trump, as an economist, realizes that politics is managed through economics. Despite the previous tense relations, indications are that he will deal cautiously with the Iraqi file.”
Al-Azzawi praised what he described as the "wisdom of Al-Sudani's government" in sparing Iraq political crises and international sanctions, considering that relations between Baghdad and Washington may witness positive development after activating the security agreement and strengthening mutual interests.
Between denial and warnings
With conflicting positions between government denial and economic warnings, it seems that the Iraqi government is facing a challenge in maintaining the stability of the currency and avoiding the negative repercussions of any ill-considered action.
While economic pressures are increasing, the Iraqi citizen remains the most affected by any change in financial policies.
This file resolves a delicate balance between government decisions and economic recommendations, to ensure financial stability and protect citizens from the repercussions of any decisions that may affect their daily lives.
Washington proposes a long-term deal with Iran.. No war, but! - Urgent
An informed source revealed, today, Tuesday (January 28, 2025), a brief verbal message from the White House to Tehran that includes the new US President’s vision for the nature of the relationship with Iran.
The source told Baghdad Today, "A verbal message arrived on Sunday evening from the White House to Baghdad, and from there to Iraqi mediators to convey it to Tehran. It included specific points that represent the summary of Washington's position towards Iran."
The source added, "The message confirmed that the US President is not seeking war with Tehran, but rather aims to reach a long-term deal that ends the instability in the Middle East, while emphasizing the protection of US interests in the region."
He pointed out that "the US President's vision is focused on preventing Iran from reaching the ability to produce nuclear weapons, within the framework of a comprehensive deal that guarantees the superiority of his ally in the region, in reference to Israel."
He pointed out that "Iran has been severely damaged in many regional axes, which provides a new opportunity for Washington to achieve long-term understandings with it, although American messages are still not public and rely on multilateral mediators."
On December 22, a source close to the government of Iranian President Masoud Pezeshkian revealed that US President-elect Donald Trump had delivered a message to Tehran via the Sultanate of Oman in the past few days with the aim of negotiating several files, including the nuclear file.
The source, who requested anonymity because he was not authorized to make an official statement to Baghdad Today, said, “In the past few days, Iran received a message from the elected US administration through the Sultanate of Oman, which is one of the important channels for exchanging messages between Tehran and Washington.”
He added, "Trump's letter to Iranian officials confirms his readiness to negotiate with Tehran and the possibility of reaching a nuclear agreement other than the agreement reached in 2015, from which Trump personally withdrew in 2018."
The Iranian source explained that "Trump will not wait more than a few months to receive a response from Iranian officials regarding their readiness to negotiate a number of files, most notably the nuclear file."
According to the source, the American message suggests that "Trump is very serious about direct, high-level dialogue with Iran at the beginning of his term, and if Iran accepts, there is a possibility of reaching an agreement, although there will be no guarantee that even if an agreement is reached, America will abide by it."
The source believes that the Pezeshkian government believes that Tehran's continued nuclear escalation will not lead to any results and that the file will probably be referred to the UN Security Council in the form of seven chapters of the UN Charter as a threat to international peace and security, and the country will fall into the trap of wide-ranging international sanctions, and Russia and China will join the West in this matter. Unfortunately, this should not have happened, and in less than eight years, the value of the country's national currency has fallen by about 300%.
Last Monday, Iranian Foreign Ministry spokesman Esmail Baghaei said during a press conference, according to what was reported by "Baghdad Today", that he "does not know that Tehran has received a message from Trump."
Last week, the Omani trade delegation headed by the Omani Deputy Minister of Commerce traveled to Tehran and met and discussed with the Minister of Industry, Mining and Trade.
For his part, Iran's ambassador to Oman, Musa Farhang, said on Sunday, "On the threshold of the new year, and with the visit of the Omani Foreign Minister to Tehran, we will witness a new phase of relations between Tehran and Muscat and a new round of regional cooperation between Iran and its neighbors."
Last November, Iranian Foreign Minister Abbas Araghchi said that Iran had “very fundamental and fundamental” differences with the United States that “may not be resolved, but we must manage them so that costs and tensions are reduced.”
On the sidelines of the meeting with the government delegation, he stressed that the Sultanate of Oman's channel is active, and said that there are always communication channels between Iran and America, indicating that "the possibility of exchanging messages between the two countries through the Swiss embassy and other methods still exists."
World Bank pledges to finance oil and energy projects in Iraq
During a meeting with Al-Sudani
The World Bank announced today, Tuesday, its pledge to finance a number of oil, energy and infrastructure projects in Iraq, during the reception of the Prime Minister, Mohammed Shia Al-Sudani, the Vice President of the World Bank for the Middle East and North Africa region, Othman Dayon, where ways of cooperation between Iraq and the World Bank were discussed, and the progress of development projects in Iraq.
Al-Sudani's office said in a statement :
Prime Minister Mohammed Shia Al-Sudani received today, Tuesday, the Vice President of the World Bank for the Middle East and North Africa, Mr. Osman Dayon, where they discussed ways of cooperation between Iraq and the World Bank, and the progress of development projects in Iraq.
The Prime Minister pointed out that development projects that aim to maximize the non-oil economy and contribute to job creation are a priority for the government, stressing the continuation of economic reforms that support the private sector, and that the World Bank is called upon to enhance this experience.
His Excellency explained that the government considers the World Bank an important partner in the reform process, and that the Ministerial Council for the Economy has approved the program that was approved by the Ministry of Planning in cooperation with the World Bank, especially since the results of the reform steps in the customs and tax fields have begun to appear in a tangible and positive manner.
The meeting witnessed discussions on financing the old railway rehabilitation project and financing a number of other development projects, as Mr. Dayon pledged the bank’s financing of a number of oil, energy and other infrastructure projects. The International Finance Corporation’s contribution to financing a number of private sector projects was also discussed.
The Iraqi Embassy in Washington discusses with a group of Iraqi doctors the development of medical infrastructure
The Iraqi Embassy in the United States of America discussed with a group of Iraqi doctors the development of the Iraqi medical infrastructure.
The embassy stated in a tweet on the (X) platform, followed by the Iraqi News Agency (INA), that “in the framework of strengthening the partnership with the Iraqi community in the United States, the Iraqi embassy hosted an elite group of Iraqi doctors working in American medical institutions, where the meeting discussed ways to transfer advanced expertise and pioneering health projects to support the health sector in Iraq.”
It added, “It was agreed to hold a workshop to discuss prospects for developing cooperation and ideas that enhance health care services and contribute to the development of Iraqi medical infrastructure.”
Energy expert calls for Iraq to be freed from OPEC deal as oil prices fall
Al-Marsoumi said, during his appearance on the {Free Talk} program broadcast by Al-Furat satellite channel this evening, that: "Iraq is still suffering from a single income, as 89% of its revenues depend on oil, despite achieving partial development in non-oil revenues that amounted to 14 trillion dinars until last October," noting that "these revenues are insufficient and still ineffective."
Al-Marsoumi explained that "oil remains the main driver of the Iraqi economy, and that economic reforms are slow and ineffective in the general budget, which needs to be restructured by reducing and rationalizing spending."
He pointed out that "liberating Iraq from OPEC Plus restrictions could add 650,000 barrels per day to production, which could compensate for part of the decline in oil prices," warning of "the decline in cash reserves in the Central Bank of Iraq, which could affect the exchange rate of the dinar."
Al-Marsoumi believes that "Iraq is facing developments in the global oil market in 2025 that may be negative, which necessitates strengthening the position of the oil sector as a starting point for economic reform, and that economic development depends on reviving the private investment sector."
Regarding 2024, Al-Marsoumi stated that "the average price of a barrel of oil sold was $74, and despite that, the budget witnessed an actual deficit of 19 trillion dinars, most of which was covered by internal borrowing that amounted to 13 trillion dinars, bringing the total internal debt to 83 trillion dinars at the end of December."
He added that "current shale oil production has a low extraction cost of $27 per barrel, which allows a wide margin for oil prices to move," expecting that "prices will drop to $55 per barrel, which will put Iraq in front of difficult choices, and it may be forced to reduce the value of the Iraqi dinar if prices reach $60 per barrel."
He also pointed out that "the Federal Court's decision regarding the region's oil will have a positive impact on government revenues, and the region's current contracts with foreign companies are not a partnership but rather a participation, where foreign companies bear the financing and risks in exchange for 40% of the oil to cover the cost," calling for "joint management of the oil fields between the region and the federal government as an optimal solution."
Regarding the future of the relationship between the region and the center, Al-Marsoumi stressed that "all the problems between them will end with the approval of the oil and gas law, but solutions are still far-fetched."
He revealed that "Iraq sells a barrel of black oil to the Emirates at a price of $40, which constitutes a huge loss in light of the decline in oil prices."
Al-Marsoumi concluded his speech by pointing out that "the pressures exerted by former US President Donald Trump aim to reduce oil prices to $70, which may further complicate Iraq's economic situation."
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