Economist: The country's financial situation is among the most prosperous years
Economic expert Nabil Al-Marsoumi confirmed that “the country has large cash reserves, which are greater than 100 percent of the volume of the issued currency.”
The video for this blogpost is below here:
Al-Marsoumi promised in a statement seen by Al-Masry today, Thursday, that the percentage for a country like Iraq that maintains cash reserves equivalent to between 20 and 40 percent of the volume of the issued currency is positive, indicating that the financial situation is reassuring as it has exceeded 100 percent, and thus the cash reserves in the country are very large, pointing out the importance of the matter, as it represents a firewall in the face of crises that may occur, even if they are caused by a decrease in the price of oil.
Al-Marsoumi added, “The Central Bank can provide a major source of protection for the Iraqi government if it needs some financial supplies by deducting remittances from government banks,” explaining that “the financial situation that the country is experiencing is among the most prosperous years in terms of foreign exchange reserves.”
Al-Marsoumi said, “Iraq ranked third in the Arab world in terms of foreign exchange reserves for the year 2024,” adding, “Despite the slight decrease in foreign exchange reserves in the Central Bank of Iraq from (109,153) billion dollars in 2023 to (106.7) billion dollars in 2024 according to data from the Central Bank of Iraq, as a result of the deduction of remittances to the Iraqi government, the financial situation in Iraq is still cohesive, and it occupies the third place after Saudi Arabia and the Emirates, whose reserves amount to (499) billion dollars for Saudi Arabia and (210) billion dollars as reserves for the Emirates.”
Sudanese to Egyptian counterpart: Our relationship forms a solid foundation for bilateral partnership and mutual opportunities
During the Baghdad Economic Forum
Prime Minister Mohammed Shia Al-Sudani and Egyptian Prime Minister Mostafa Madbouly attended the Iraqi-Egyptian Economic Forum, which was held in Baghdad today, Thursday, with the participation of the Iraqi and Egyptian Chambers of Commerce, and the attendance of more than 300 businessmen from the two countries, and was dedicated to discussing opportunities for joint cooperation in various fields.
During his speech at the forum, His Excellency referred to the depth of historical and cultural relations between Iraq and Egypt, and the social and economic ties that form a solid foundation for bilateral partnership and mutual opportunities, especially for the private sector to work in all economic fields, whether in Iraq or in Egypt.
Mr. Al-Sudani explained that the economic reforms, in all their dimensions, banking, administrative, tax and investment, have opened the way for Egyptian companies to operate and for prominent partnerships with the Iraqi private sector, whose activities we seek to extend towards more opportunities and areas of work in the Egyptian arena as well.
For his part, the Egyptian Prime Minister stressed the existence of an Egyptian political and popular will for cooperation and partnership with Iraq, to be a prosperous industrial, agricultural, economic and service stronghold, pointing to the circumstances that the region is currently going through, which necessitate moving towards economic integration and political coordination for the benefit of the two peoples, Iraqi and Egyptian, towards further progress and development.
Iraq and Egypt.. 12 multi-sectoral memoranda of understanding
The Iraqi-Egyptian Supreme Committee held its third session in Baghdad, where the meeting was headed by the delegations of the two countries, Iraqi Prime Minister Mohammed Shia al-Sudani, and his Egyptian counterpart, Mustafa Madbouly, who arrived in Baghdad today, Thursday.
The meeting witnessed a briefing by the Minister of Commerce, Athir Dawood Al-Ghariri, and the Egyptian Minister of Planning, Economic Development and International Cooperation, Ms. Rania Al-Mashat, on the overall aspects of cooperation between the two countries in various levels and fields.
At the conclusion of the meeting, the minutes of the meeting of the Iraqi-Egyptian High Committee were signed, and the bilateral memoranda of understanding listed below were signed:
1. Memorandum of Understanding for land transport of persons and goods between the Ministries of Transport in Iraq and Egypt.
2. Memorandum of Understanding in the field of promoting competition and combating monopolistic practices between the Competition Affairs and Anti-Monopoly Council in Iraq and the Competition Protection and Anti-Monopoly Authority in Egypt.
3. Proposed cooperation protocol between Iraq and Egypt in the field of local development.
4. Memorandum of Understanding between the Baghdad Municipality and Cairo Governorate.
5. Memorandum of Understanding in the field of antiquities and museums between the General Authority for Antiquities and Heritage at the Ministry of Culture and the Supreme Council of Antiquities of Egypt.
6. Memorandum of Understanding in the field of standardization and quality control between the Central Organization for Standardization and Quality Control in Iraq and the General Organization for Standardization and Quality in Egypt.
7. Memorandum of Understanding for cooperation in the field of regulating control and supervision of financial markets (financial control) between the Securities Commission in Iraq and the General Authority for Financial Supervision in Egypt.
8. Executive program between the Ministries of Culture in Iraq and Egypt (2025-2027).
9. Memorandum of Understanding between the Iraqi National Library and Archives and the Egyptian National Library.
10. Memorandum of Understanding for cooperation in the field of communications and information technology, between the Iraqi Communications and Media Commission and the Egyptian National Telecommunications Regulatory Authority.
11. Draft Memorandum of Understanding in the field of construction, operation and maintenance of silos between the Iraqi General Company for Grain Trade and the Egyptian Holding Company for Silos.
12. Memorandum of Understanding and Cooperation between the Federation of Iraqi Chambers of Commerce and the General Federation of Egyptian Chambers of Commerce.
Finance Minister stresses Iraq's keenness to strengthen economic relations with Japan
Minister of Finance Taif Sami stressed Iraq's keenness to consolidate economic relations with Japan.
A statement by the Ministry of Finance stated: "Sami received, today, Thursday, at the ministry's headquarters, the new Japanese Ambassador to Iraq, Akira Endo, and during the meeting, ways to enhance joint cooperation between the two countries in the economic and financial fields were discussed."
According to the statement, the two sides discussed the importance of benefiting from Japanese expertise in supporting development and investment projects inside Iraq, in addition to strengthening financial and trade cooperation mechanisms between Baghdad and Tokyo.
The minister stressed Iraq's keenness to consolidate economic relations with Japan, praising the role played by Japanese companies in implementing development projects inside the country.
For his part, the Japanese ambassador expressed his country's readiness to continue supporting Iraq in various fields, pointing to the importance of the partnership between the two countries in achieving sustainable development.
In the table.. The House of Representatives votes on the budget law next Sunday
The House of Representatives is preparing to vote on 3 new laws, including the first amendment to the draft federal budget law for the years {2023-2024-2025} No. 13 of 2023 next Sunday.
Reading verses from the Holy Quran
For Iraq for the fiscal years
First: Voting on the draft law amending the first amendment to the Federal General Budget Law (2023 - 2024 - 2025) No. (13) of 2023. Finance Committee)
2) Article).
For the Republic of Affairs
Second: Voting on the proposed law amending the first law of the foundations of equivalence of Arab and foreign certificates and degrees No. (20) of 2020. Higher Education and Scientific Research Committee.
Third: Voting on a decision to recommend to the Ministry of Education to reinstate the trial system.
Parliament
Fourth: Report and discussion of the second reading of the proposed private higher education law (Higher Education and Scientific Research Committee).
No stars, no one ran
Session at 1 PM
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Article 12 of the budget: the gateway to the new conflict and the lifeline for the Kurds
MP for the Patriotic Union of Kurdistan, Gharib Ahmed, confirmed today, Thursday (January 30, 2025), that amending the budget law is the solution to the region’s problems.
Ahmed said in an interview with Baghdad Today, "It is not reasonable for the crisis of salaries of Kurdistan employees to continue on a monthly basis, and the solution is through voting on amending the budget law that allows for increasing state revenues and ensuring that the financial amounts reach the region on the scheduled date."
He added, "It is not reasonable to continue wasting this amount of money due to the halt in the region's oil exports, and therefore amending the budget law, specifically paragraph 12, will be an initiative to resolve the differences and proceed with guaranteeing the rights of employees' salaries in Kurdistan, and returning life to the region whose cities were affected by the salary crisis."
As soon as one crisis in the House of Representatives ends, another erupts. New conflicts within the legislative house over the budget law and Article 12, which covers the cost of extracting and transporting oil in the region.
The cycle of conflicts continues to renew inside the parliament dome, and this time it is a dispute between the representatives of the region and Baghdad over the twelfth article of the budget law, which includes compensating the Kurdistan Regional Government for the costs of production and transportation for extracting oil, which the central government has set at sixteen dollars.
The most prominent solutions to resolve the differences between the central and regional governments and bring viewpoints closer together on the issue of the cost of oil extraction are to establish joint technical committees and intensify parliamentary meetings to enable Parliament to complete the vote on the budget.
Finance confirms its commitment to adopting digital transformation in transactions
The Ministry of Finance stressed, on Thursday, the importance of adhering to the recommendations of the Council of Ministers to develop financial and banking performance, as well as emphasizing the acceleration of adopting modern electronic systems in the ministry’s formations.
The ministry said in a press statement received by Shafaq News Agency, "The Minister of Finance, Taif Sami Muhammad, held a periodic meeting of the Ministry's opinion body, in the presence of the Undersecretary of the Ministry and the general managers of the departments, banks, bodies and affiliated companies."
The statement added that "the meeting addressed several important topics, most notably reviewing the recommendations of previous committees, evaluating the progress made in implementing the recommendations of the committees formed by the Opinion Authority in previous sessions, and determining the rates of achievement and potential obstacles."
He added, "The meeting also discussed the proposed amendments to improve the performance of the ministry's departments and adapt them to the requirements of modern financial management, in line with developments in the financial and business sector. In addition, the minister stressed the importance of adhering to the recommendations of the Council of Ministers and continuing efforts to provide the necessary capabilities within the framework of the government program to develop financial and banking performance."
The meeting stressed, according to the statement, "the need to accelerate the adoption of modern electronic systems in the ministry's formations, especially in strategic sectors such as banks, customs, and taxes, with the aim of improving work efficiency and providing better services to citizens."
Foreign Minister: We are holding talks with America regarding the presence of its forces in Iraq and we are considering visiting Damascus
Hussein said in a press statement: "The presence of about 10-12 thousand ISIS elements in SDF prisons poses a threat to Iraq."
He pointed out that "discussions are underway with the United States regarding its presence in Iraq and the development of bilateral relations."
He added, "There is no official visit by the Iraqi Foreign Minister to Syria at the moment, but it is under consideration."
He pointed out that "Iraqi-Turkish talks focus on the situation in Syria and the threats of ISIS."
On Trump's Table: Iraq's Rafidain Bank Faces Threat of US Sanctions
On Thursday, the US Republican Representative, Joe Wilson, renewed his attack on Iraq, this time by demanding the imposition of sanctions on the state-owned Rafidain Bank, accusing it of being a "machine" for laundering money for the Iranian regime and its agents to obtain dollars.
Wilson wrote in a blog post on the X platform that “the US Treasury and the Federal Reserve, under Joe Biden and his envoy (Brett McGurk), have allowed Rafidain Bank, which is (the largest government bank in Iraq), to become a money laundering machine for the Iranian regime and its agents to obtain US dollars.”
The Republican representative stressed the need to "impose sanctions on this bank (Rafidain Bank)," noting that President Donald Trump "will fix the matter."
Yesterday, Wednesday, Wilson attacked the previous administration headed by Joe Biden, because of its policy towards Iraq and Iran over the past years .
“Iraq continues to send $10 billion annually to Iran to buy oil and electricity, thanks to the US exemption,” Wilson wrote in a blog post on the X platform.
He believed that "this (American) exemption strengthens the regime in Tehran, and keeps Iraq subject to Iranian influence," stressing the necessity of "canceling this exemption, so that Iraq can obtain energy from the Arab world," concluding by saying: "Trump will fix this matter."
US Advisor: President Trump knows Iraq street by street!
A member of US President Donald Trump's advisory council explained that the White House master is about to put an end to Iranian influence in the Middle East region, which is witnessing a radical change today, after the events of October 7, 2023.
In an interview with the "Qasary Al-Qawl" program on RT Arabic, Gabriel Souma confirmed that Trump's experience in the Middle East, and the availability of advisors in his team from all countries, make him more familiar with its situation than any previous president.
President Trump's advisors know, for example, Iraq street by street," he noted.
Against the backdrop of the fall of the Assad regime in Syria, the decline of the military power of the Lebanese Hezbollah, and the Houthis in Yemen being subjected to great pressure, come the threats of US National Advisor Mike Waltz against the "militias in Iraq," where Advisor Souma says that "these organizations that Washington has listed as terrorist organizations, the Trump administration deals with them differently, unlike former US President Joe Biden, during whose term US forces in Syria and Iraq were subjected to more than 100 strikes since October 2023, so Trump wants to deter these organizations, which must take his warnings seriously."
Regarding the impact of these threats on undermining the position of Mohammed Shia al-Sudani’s government in Iraq, as an ally of Washington, Soma saw that “if al-Sudani is not able to stop the hostile actions of these organizations, then Trump will have to intervene militarily in a radical manner.”
Regarding the Iranian response in the event that its allies in the region are attacked, Souma said: “The end of the regime in Iran began in September 2024 when Israel targeted the headquarters of the former Secretary-General of Hezbollah, Hassan Nasrallah, and eliminated all of Iran’s defense apparatus, and Trump wants to completely remove Iran’s influence from the region.”
Regarding Israel preventing the Lebanese in the south from returning to their homes after they were displaced for months, and with the truce between Hezbollah and Tel Aviv in effect, the advisor explained, saying: “Southern Lebanon is the main incubator for Hezbollah, and since the majority of its people are from the Shiite sect, the people of these areas can be members of the party.”
Although there are villages of other sects in the south, they too have been prevented from returning to their homes. Is this considered “collective punishment?”
“No,” Souma replied, adding: “They are independent, but they are not able to confront Hezbollah or reject its field measures. In some areas, weapons were installed by Hezbollah, and clashes broke out between residents and members of the party, at which point the Lebanese government intervened and ordered it to withdraw its weapons from the area.”
In the same context, and regarding Israel’s prevention of the residents of the northern Gaza Strip from returning to their affected areas, and considering this a violation of the terms of the ceasefire agreement, a member of Trump’s advisory council commented by saying: “Gaza is completely destroyed and living there has become impossible, so President Trump finds it difficult to allow the residents of the north to return, and he believes that the solution lies in Egypt and Jordan absorbing the immigrants, but the presidents of the two countries are hesitant to accept the displacement project.”
Regarding his belief that the displacement policy is in line with the ambitions of the Israeli right, Souma said: “What is the fate of more than a million people? Where do they and their families live?”
When talking about the situation in Syria after the fall of the Assad regime, Counselor Souma pointed out that “things there are more difficult and complicated than they are in the rest of the Arab countries. Before the events of September 8, the country was divided, and therefore it is difficult to unify Syria and the new regime is not able to do that,” adding: “We have no knowledge of the future of Syria.”
Trump Understands That the US Needs Venezuelan Oil
- The US Gulf Coast heavily relies on Venezuelan crude, with imports hitting a six-year high.
- While Trump has left room for maneuvering on Venezuela, he is unlikely to cut off imports entirely.
- Disruptions to this supply would force refiners to seek lower-quality alternatives, threatening energy stability.
enezuela has the largest proven oil reserves on Earth, but its energy prowess is as much about quality as quantity. Refineries on the US Gulf Coast process Venezuelan crude by the hundreds of thousands of barrels per day. Volumes hit a six-year high in December, according to Kpler, reaching approximately 300 kbd – a 150 kbd year-on-year increase.
The Gulf Coast, or PADD 3, is crucial to the United States’ energy supremacy. If flows of Venezuelan crude to the region were disrupted, refiners like Chevron and Valero would have to shift to lower-quality, less reliable suppliers—an undesirable prospect.
Indeed, production in Mexico remains lackluster, while the erection of trade barriers in North America would curtail Canadian imports. Confirming the point, Kpler predicts that the Gulf would face severe shortages if Venezuelan crude imports fell by 200 kbd this year. These metrics support the case for a US-Venezuela détente.
While relations between President Nicolás Maduro and the Republican Party have historically been strained, each side is ultimately motivated by the economic necessity of the northward flow of Venezuelan crude. The inauguration and spate of Executive Orders that followed have consumed the US media cycle, but the prospects of détente have not been completely dimmed. President Trump certainly gave himself plenty of room to push back against the hawks in his party when he quipped that his administration would “probably” halt the import of Venezuelan crude.
As with prospective tariffs on the United States’ trade partners near and far, the new President is not allowing himself to be hemmed in by precise policy prescriptions. Trump’s mission objective, as often stated, is a new golden age; he knows disrupting America’s energy ecosystem would be prohibitive.
The administration is also cautious of any association with former President Biden’s failed Latin America policy. Biden was credited for freezing sanctions on Venezuela’s energy sector in October 2023 under the Barbados Agreement, only to reimpose them in April of last year, succumbing to proponents of regime change. With Maduro as powerful as ever, this proved an illusion.
Imports from Venezuela have at least continued under special license agreements secured by majors like Chevron, but the South American nation’s extraordinary potential remains untapped. President Trump is said to fully recognize this potential. Ever interested in confounding elite expectations with a grand bargain, he will surely be tempted to lock in crucial supplies to the Gulf.
The alternative—a halt on Venezuelan imports—would be a blow to US economic stability and the broader well-being of the Western Hemisphere.
Cast out, Maduro would have every incentive to further deepen his ties with the United States’ antagonists.
Cheap Venezuelan crude would bolster the economic performance of BRICS, the non-aligned bloc. And if Venezuela could no longer import refined products from the United States, then it too would turn to new suppliers.
Iran, a leading producer of condensates, would be more than willing.
Such an outcome would surely be viewed by Trump and those in his circle as an unacceptable violation of the Monroe Doctrine, which demands that outside powers must not interfere in the Western Hemisphere.
Trump’s recent statements on the sovereign status of Greenland and the management of the Panama Canal are very much in line with this standpoint.
As such, the new President will be wary of hamstringing the US energy industry to the benefit of Russia, China, and Iran, regardless of anti-Venezuelan sentiment in his cabinet.
Re-engagement with Venezuela based on mutually beneficial trade terms—specifically, the exchange of much-needed crude oil for much-needed US dollars—is surely the best path forward.
By Cyril Widdershoven for Oilprice.com
Plundering the wealth of the south.. The popular movement warns against passing the budget amendment
The head of the Popular Movement's organizing body, Hussein Ali Al-Karawi, warned today, Thursday, against amending the budget law, considering its passage a clear violation of the constitution.
Al-Karawi told Al-Maalouma Agency, “The budget amendment was made in accordance with political agreements and deals,” indicating that “those deals were made at the expense of the center and the south.”
He added that "the political leaderships are the ones behind the negotiations to pass the amendment of Article 12 because it relates to the Kurdistan Region," noting that "the central and southern governorates were subjected to great injustice in the previous budgets."
He added, "The central and southern provinces are deprived of their wealth due to the dark deals that the south did not enjoy, while the Kurdistan budget enjoys."
Are Iraq's large cash reserves really reassuring or do they hide an upcoming financial crisis?
Despite the announcement of a remarkable development in Iraq’s cash reserves, where it ranked third in the Arab world for the year 2024 after Saudi Arabia and the Emirates, the economic situation in the country is still shrouded in mystery and questions, which makes these numbers a source of controversy rather than pride.
A comfortable number… but what next?
Some sources have announced that Iraq has foreign exchange reserves estimated at about $106.7 billion, which is considered larger than the size of the issued currency. This is supposed to be considered a “firewall” against potential crises, and sends positive signals to foreign investors. But the real question is: Do these reserves really represent real “stability”?
Do these numbers reflect the reality of the Iraqi economy?
Despite these figures, the Iraqi economy is still overly dependent on oil as a major source of income, which exposes it to any fluctuations in global oil prices. It is true that Iraq has good cash reserves compared to some Arab countries, but most of its economic projects still involve uncalculated risks. Can we really consider these reserves as an economic stabilization tool, while debts continue and non-oil resources are almost non-existent?
Is Iraq ready to deal with future crises?
Although some experts, such as Dr. Nabil Al-Marsoumi, believe that cash reserves are large enough to finance internal projects and protect the Iraqi dinar, the fact cannot be ignored that cash reserves are not the only solution to crises. As Imad Al-Muhammadawi pointed out, diversification of income sources will be the key to achieving real financial stability.
Major allocations, where do they go?
With 500 billion dinars allocated for service effort projects, the most prominent question remains: Will this money be implemented in the best possible way? Iraq has beautiful numbers, but is this enough to stimulate sustainable development? Or are these numbers only used for projects that do not achieve tangible results?
Bottom line:
Ultimately, cash reserves remain just numbers on paper unless they are translated into realistic economic policies that diversify income, reduce dependence on oil, and contribute to achieving real development that touches the lives of citizens.
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