Iraq officially suspends work on the electronic platform.. Will we witness a crazy rise in the dollar?
The Central Bank of Iraq announced today, Wednesday, the suspension of work on the electronic platform mechanisms related to the sale ofDollar.
4- The market depends on supply and demand. With the cancellation of the platform, the currency market may become more affected by direct supply and demand. This may lead to severe fluctuations in the exchange rate, especially in light of unstable economic and political conditions.
The decision to cancel the electronic platform for money transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate.DollarIn front of the dinar. To achieve economic stability in the next phase, it will be necessary to take proactive measures to compensate for the absence of the platform and ensure the continuity of supervision of the financial market.
Central Bank Talks of 'Radical Shift' in Policies: Ready to Support Iraq's Banks
The Central Bank of Iraq spoke of a "radical shift" in its policy at the beginning of 2025, indicating its readiness to support all Iraqi banks that are working to "enhance their performance in the field of governance."
A statement by the bank, a copy of which was received by Al-Jabal, stated that "the bank succeeded in adhering to its program related to the transition from foreign transfers via the electronic platform to the work of Iraqi banks through their foreign correspondent banks."
He said, "This transition took place through stages that the foreign transfer process went through, starting with the window for buying and selling foreign currency and moving to the stage of the electronic platform for foreign transfers, and ending with operations to gradually enhance balances during the year 2024 and was fully achieved in the last week of this year."
According to the Central Bank, “This achievement is a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system. This work has received international support and praise throughout its implementation stages,” indicating that “the new transfer methodology is consistent with international practices followed in this field, which separate the responsibilities and duties of the Central Bank from the obligations, responsibilities and role of commercial banks. From this standpoint, the Central Bank of Iraq will continue to enhance the balances of Iraqi banks with their correspondent banks in US dollars, in addition to a group of other currencies, such as (Indian rupee, Chinese yuan, euro, UAE dirham, Saudi riyal, and Jordanian dinar).”
He pointed out that "this achievement has enhanced the efficiency and safety of foreign transfer operations, and their transition to the method followed in all countries of the world, which will make Iraq enter a new phase in its financial relations regionally and internationally and enhance the government's orientations in expanding its economic relations and enhancing investment opportunities."
He went on to say that "the efforts in this important achievement came through a series of ongoing detailed technical procedures and agreements, and great support from the Iraqi government, and that the bank will continue to follow modern methods in managing monetary policy in Iraq, in line with its essential role in achieving financial stability, and its position among central banks in the region and the world, which will positively reflect on the confidence and support of the external financial sector of Iraq and international financial and economic organizations."
He stressed that "the Central Bank of Iraq expresses its full readiness to support all Iraqi banks that work to develop and enhance their performance in the field of governance, compliance, and combating money laundering in a way that reflects positively on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general."
Central Bank announces major achievement in foreign transfers
The Central Bank of Iraq announces its success in adhering to its program related to the transition from foreign transfers via the electronic platform to the work of Iraqi banks through their foreign correspondent banks. This transition took place through stages that the foreign transfer process went through, starting with the window for buying and selling foreign currency and moving to the stage of the electronic platform for foreign transfers, and ending with operations to gradually enhance balances during the year 2024 and was fully achieved in the last week of this year.
This achievement is a radical transformation in line with the best international standards and practices to achieve a stable and secure financial system, and this work has received international support and praise throughout its implementation stages.
The new transfer methodology is consistent with international practices followed in this field, which separate the responsibilities and duties of the Central Bank from the obligations, responsibilities and role of commercial banks. From this standpoint, the Central Bank of Iraq will continue to enhance the balances of Iraqi banks with their correspondent banks in the US dollar, in addition to a group of other currencies, such as (the Indian rupee, the Chinese yuan, the euro, the UAE dirham, the Saudi riyal, and the Jordanian dinar). This achievement has enhanced the efficiency and safety of foreign transfer operations, and their transition to the method followed in all countries of the world, which will make Iraq approach a new stage in its financial relations regionally and internationally and enhance the government’s orientations in expanding its economic relations and enhancing investment opportunities.
The efforts in this important achievement came through a series of ongoing detailed technical procedures and agreements, and great support from the Iraqi government, and the bank will continue to follow modern methods in managing monetary policy in Iraq, in line with its essential role in achieving financial stability, and its position among central banks in the region and the world, which will be positively reflected in the confidence and support of the external financial sector of Iraq and international financial and economic organizations.
Through this, the management of the Central Bank of Iraq seizes this important opportunity to express its thanks and appreciation to all those who contributed to achieving this great accomplishment, first and foremost the cadres of the Central Bank of Iraq, the banking sector in Iraq, and all international partners.
Finally, the Central Bank of Iraq expresses its full readiness to support all Iraqi banks that work to develop and enhance their performance in the field of governance, compliance, and combating money laundering in a way that positively reflects on the confidence of international and regional banks in them to contribute to strengthening the Iraqi banking system and the Iraqi economy in general.
Happy New Year to you all.
Central Bank of Iraq
Media Office
January 1, 2025
Al-Hassan congratulates on the New Year: Iraq is able to overcome challenges
The Special Representative of the Secretary-General of the United Nations in Iraq congratulates the Iraqi people and government on the New Year:
Al-Hassan said in a tweet on the {X} platform, "I congratulate the Iraqi people and the Iraqi government on the achievements made during the year 2024."
He added, "In 2024, we witnessed great achievements in development and infrastructure, and this was achieved thanks to the strong and ambitious will of Prime Minister Mohammed Shia al-Sudani's government to improve the lives of Iraqis."
Al-Hassan continued, "We have great confidence in Iraq to draw a better future," calling on the Iraqi government to "continue working sincerely to improve services throughout Iraq.
Iraq is capable of overcoming challenges and regaining its regional and international standing."
Starting to implement ASYCUDA global system for automating customs operations
The Prime Minister's Media Office announced on Tuesday the start of using modern automation systems to facilitate the entry of goods into border crossings and monitor them centrally, and the agreement to implement the global ASYCUDA system to automate customs operations.
The office said in a statement, seen by "Al-Eqtisad News", that "in implementation of the directives of Prime Minister Mohammed Shia Al-Sudani regarding administrative and financial reform, which is included among the priorities of the government program, a special meeting was held today in the Prime Minister's Office headed by the Prime Minister's Advisor for Border Customs and Ports Affairs, where the procedures related to the governance of border ports and customs systems were discussed."
The statement added that "the meeting witnessed the announcement of the completion of the necessary infrastructure to link all border ports with the latest technologies, and the start of the use of modern automation systems to facilitate the entry of goods into border ports and monitor them centrally. It was also agreed to implement the global ASYCUDA system for automating customs operations, enhanced with electronic payment services starting from January 1, 2025."
He pointed out that "this step will contribute to achieving automation in ministries and institutions, including the e-government project and providing electronic payment services, which contributes to enhancing transparency and accountability, simplifying procedures, facilitating services and reducing bureaucratic obstacles, in addition to establishing good governance and combating corruption."
What is holding up the passage of the oil and gas law so far?
Member of the Parliamentary Oil and Gas Committee, Alaa Al-Haidari, confirmed today, Tuesday, that there is difficulty in approving the oil and gas law due to the absence of a political agreement and the Kurdistan Regional Government’s failure to abide by the agreements concluded with the center.
Al-Haidari said in a statement to Al-Maalouma Agency, “Many meetings were held in the presence of Oil Ministry officials and government advisors, with the aim of reaching a consensus formula for the law, but those efforts have not borne fruit so far "
He pointed out that "the oil and gas law is one of the suspended laws in the House of Representatives, as it has been stuck in the drawers for more than five parliamentary sessions, despite its inclusion in the government program," explaining that "voting on the law will contribute to ending the differences between the region and the center, and provide fair direction for national wealth within the framework of the constitution.”
He explained that "the approval of the law will ensure the regulation of oil exports and oil and non-oil revenues in a fair manner, which will spare the country further problems and obstacles between the region and the federal government."
Kurdish parties continue to obstruct the approval of the oil and gas law, which is necessary to reduce violations and thefts in the Kurdistan Regional Government, especially in the oil smuggling file.
Expert: Iraqi economy is stable despite changes in the dollar market
Economic expert Safwan Qusay confirmed today, Wednesday, that the Iraqi economy is stable despite the changes in the dollar market.
Qusay said in an interview with Al-Maalouma Agency, “The Central Bank of Iraq announced the termination of the electronic platform for banking transactions starting from the beginning of the new year, after notifying all Iraqi banks of the cancellation decision early on.”
He added that "13 Iraqi banks were able to adapt to this change, as they expanded their dealings with real merchants, so that the percentage of transfers and credits that take place through direct relations between Iraqi banks and supplier banks reached more than 95%." "
He explained that "these operations are carried out in accordance with strict compliance standards that ensure knowledge of suppliers and payment mechanisms."
He continued, “As for the 5% of transfers that were made through the electronic platform, traders who wish to continue importing operations at the official price can open bank accounts within these banks.”
He pointed out that "the Central Bank issued a circular on September 30th allowing traders to import directly after opening bank accounts, without the need for a waiting period that previously extended to six months."
He explained that "the market may witness some fluctuations, but he ruled out the possibility of achieving large profits from importing irregular goods, in light of the Iraqi economy, which relies heavily on the dollar and its high value globally."
He pointed out that "the Iraqi economy will not face major concerns as a result of this change, stressing the importance of adhering to banking procedures to ensure market stability and facilitate import operations."
Is the Ministry of Finance hiding the facts?.. An expert reveals the main reason for the shortage of "cash liquidity"
Economic researcher Haider Al-Sheikh revealed, today, Wednesday (January 1, 2025), the direct reason behind the shortage of cash liquidity at the Central Bank of Iraq.
The sheikh told Baghdad Today, "The Central Bank lacks cash liquidity, due to the citizen's lack of confidence in the banking system. There is a lack of confidence among citizens in both government and private banks, and this has led to the storage of cash (the Iraqi dinar) in citizens' homes."
He explained that "the cash held by citizens exceeds 15 trillion dinars, and the government and the Central Bank must address inflation in economic policies by providing banking facilities to citizens in a real and more serious manner."
The economic researcher added, "The cash currency circulating between banks and merchants and in the market as well, amounts to nearly 85 trillion dinars."
On Sunday (December 2024), the Ministry of Finance denied the existence of a shortage of liquidity to finance employees’ salaries for the current month, stressing its commitment to financing salaries .
The ministry stressed in a statement received by "Baghdad Today" that it is "fully committed to the process of financing employees' salaries, as the Accounting Department has financed the salaries dues of ministries, governorates and non-affiliated entities for the current month of December according to the schedules specified for each of them, and it is continuing its efforts to ensure the continuity of disbursing financial dues without any delay or interruption."
Finland announces withdrawal of all its soldiers from Iraq
The Finnish Ministry of Defense announced today, Wednesday, January 1, 2025, the return of its last soldiers from Iraq by the end of 2024, who participated in training Iraqi forces to fight ISIS gangs within the international coalition.
A statement by the ministry, translated by "Baghdad Today", stated that "ISIS gangs have lost most of the lands they controlled, but they still pose a threat, which requires the continuation of the war against terrorism."
The statement added, "Although Finland's participation in the operation has ended, the impact of its efforts will remain visible for a long time, as the training provided by Finnish forces has contributed to enhancing the ability of security forces to secure their areas and ensure the safety of the local population."
The statement stressed that "despite the end of Finland's participation in Operation Inherent Resolve, it continues to support and develop the security sector in Iraq through its participation in NATO's Mission in Iraq (NMI)."
He explained that "the advisory activity aims to implement broad and long-term reforms of the Iraqi armed forces and their management in cooperation with local partners, which supports the development of the security environment in Iraq," noting that " advisory activities will remain an essential part of efforts to achieve long-term stability in the region, and Finland will continue its work in this important NATO-led process."
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December 31 2024
Our Economic and Financial Vision for 2025 in Iraq
link
It is clear that there is a structurally rooted problem in the methodology of evaluating and empowering the state in its sound tools and policies and how to sustain economic progress. The reality of the situation requires reviewing and evaluating the structure of economic and financial decisions and creating a priority for the economic and financial feasibility of government decisions.
It is clear to observers, specialists and researchers in 2025 that the Central Bank of Iraq, despite all the efforts, decisions and diligent measures to overcome the dollar crisis and its transfers, is challenging its limits and monetary policies, specifically in the matter of canceling the platform and the upcoming challenges for correspondent banks, influence, size and extent of the safety of the mechanism of financial transfers, the approach to sustaining commercial and economic activity, the dominance of some Jordanian banks, and the available and expected solutions and scenarios, etc.
From our own point of view, regarding the subject of the correspondent banking market, if I may say so, we see that it is important for the Iraqi executive government to monitor and follow up on the methodology of the Central Bank’s return to the break-even point and not lose the compass of the course or channels of the dollar’s circulation and transfer in the Iraqi market inside and outside Iraq.
We believe that one of the strategic solutions for the executive government lies in forming a team to monitor and evaluate the mechanism of monetary policy and the dollar, which is its role in supervising, monitoring, evaluating, and not influencing/maintaining the independence of the Central Bank.
The specialized, expert and responsible figures and bodies should be transparent in relation to monetary and banking policy, and give greater flexibility in dialogue and accept opinions and other opinions, and not confiscate or neutralize opinions and proposals on the grounds of the privacy of monetary policy and focus on the priority of re-maintaining and restructuring monetary policy for the benefit of the cohesion of the economic and financial system in Iraq!!!
Regarding the budget price for the year 2025, the fiscal policy will face major challenges and perhaps financial shocks due to the possibility of fluctuations in the oil market and the possibility of facing a financial crisis in the second half of 2025, as indicated by financial reports from some international organizations. Therefore, the budget price should be restructured as a precaution and a hedge, and a return to the hedge price to ward off internal and external risks and maintain a margin of financial safety. We propose hedge price limits and changing the budget price from $70 to a hedge budget price within the equilibrium limits ranging between $55-60 and in a manner that does not exceed the equilibrium price limits.
There should be a systematic shift from financing initiative policies (such as the Riyada initiative and the like) and others to an institutional structure for financing small, medium and micro enterprises, and building and establishing a specialized body to manage and finance small, micro and medium enterprises, and dealing with a modern financial and economic methodology and models according to sound foundations.
Al-Sudani discusses with the British Ambassador preparations for his upcoming visit to the United Kingdom
After receiving an official invitation
Prime Minister Mohammed Shia Al-Sudani received today, Monday, the British Ambassador to Iraq, Mr. Stephen Hitchcock.
During the meeting, they discussed the preparations for the upcoming visit that His Excellency will make to the United Kingdom in response to an official invitation, and what it will include in terms of meetings aimed at developing cooperation and relations between the two countries and growing them in various fields, in a way that achieves mutual benefit for Iraq and Britain.
The meeting also discussed developments in the region and ways to enhance regional and international efforts to restore stability and maintain security in the region.
Monetary policy collapses in Iraq.. Investment in banks is almost non-existent and the Central Bank is going against the tide - Urgent
Financial and economic expert Mustafa Akram Hantoush commented on the performance of the Central Bank of Iraq for the current year, today, Monday (December 30, 2024).
Hantoush said in an interview with Baghdad Today, " The reality of monetary policies in Iraq is heading in the opposite direction to the process of building monetary policies, and there have been problems for years that have led to a clear collapse in Iraqi monetary policies."
He added, "The banking system has been subject to near-annihilation for years. 32 banks are subject to sanctions, and the rest are banned from the dollar only, in specific currencies, and the mechanism is still unclear."
He pointed out that "there are more than 70 Iraqi banks that do not lend, because the Central Bank has not set a clear lending policy in terms of loans, categories and guarantees."
He added that "the policy of attracting deposits of more than 80 to 85% of the currency issued by the Central Bank, and it does not appear in the monthly transactions in the monthly banking system, so this currency is supposed to be offered as marketing deposits, so the banking system does not enter into this process," indicating that "the investment policy of the Iraqi bank is almost non-existent in its investments."
Hantoush explained that the investment banking operations policy is not defined in any direction, and the remittance policy also has a problem with the cancellation of the platform, " therefore I see a clear collapse in Iraqi monetary policies."
Hantoush called on the Central Bank to reform its monetary policy, set new standards to develop the Islamic banking system and go beyond standards that keep pace with the requirements of the current and future economic stage.
New details on the "death of a US National Guard soldier" in Iraq
An informed source revealed, today, Tuesday (December 31, 2024), new details related to the death of a US National Guard soldier in Iraq.
The source said in an interview with "Baghdad Today", "According to initial information, an American convoy was involved in an accident while moving from Iraq to Syria via the Al-Waleed crossing as part of transporting military units to bases in Al-Hasakah, Syria, and other areas, which led to the injury of two soldiers, one of whom was in critical condition, last Saturday afternoon."
He added, "The US forces' statement regarding the death of a soldier in a non-combat incident may have been intended for the soldier who was injured in Saturday's incident because his injury was severe, noting that "the US forces are on alert to transfer hundreds of its soldiers to the Syrian interior and reinforce 5-6 military bases with equipment flowing from Ain al-Assad and other areas."
The source pointed out that "the American forces took strict measures on the land routes that the military convoys travel on from Iraq to the Syrian countryside of Hasakah."
The US Army announced yesterday, Monday (December 30, 2024), the death of a 34-year-old soldier from the Indiana National Guard in a non-combat incident in Iraq.
Capt. Eric Richard Hart, of Indianapolis, Indiana, died Saturday in Iraq, the Army National Guard said in a statement. Hart served with the Command and Staff Battalion, 38th Infantry Division, Indiana, and the circumstances surrounding his death are under investigation.
Although all US combat operations in Iraq have been halted, there are still 2,500 US troops stationed in the country to assist the Iraqi military in anti-ISIS operations and training.
These forces have been subjected to repeated attacks over the past 14 months, since Hamas' attack on Israel, which led to a broader military response from Tel Aviv.
Over the past year, Iraqi factions have launched attacks using drones, rockets and missiles on US facilities in Iraq in response to Israeli military operations in Gaza and Lebanon.
Last September, the United States announced an agreement with the Iraqi government to end the US-led coalition’s military mission against ISIS in Iraq by 2025. US forces have already withdrawn from some bases they had occupied for two decades.
Washington has maintained a continuous presence in Iraq since its invasion in 2003. Although all U.S. combat troops withdrew in 2011, thousands of troops returned in 2014 to help defeat ISIS.
Salute the ones who died. Zach Brown Band
Iranian official: Regime convinced to negotiate directly with Trump
Iranian President's Assistant for Economic Affairs, Ali Abdolazizdeh, revealed today, Tuesday (December 31, 2024), that the regime in his country has reached the conviction of the necessity of direct negotiations with the administration of US President-elect Donald Trump.
Abdul Ali Zadeh said in a press statement followed by "Baghdad Today", "We have to negotiate with Trump, as the country's issues cannot be left pending," adding, "The regime itself has reached the conviction of the necessity of direct negotiations."
"We also need a new foreign policy. Our first principle in sea-oriented development is to strengthen foreign policy with the world. We must speak with honor and speak about national interests, let us defend ourselves, we said in the same election advertisements that we are for negotiation," he explained.
In a related context, former Iranian diplomat Kourosh Ahmadi believed that Trump's second term could have positive or negative effects on Iran, and the outcome is linked to how both parties manage events.
In an article in the reformist newspaper Shargh, Ahmadi said, “During his first term, Trump took 15 months before withdrawing from the nuclear agreement, and made several offers to negotiate, but the situation now, in his opinion, is different, as he is supported by a security team that tends toward extremism, and may follow a more hardline approach.”
Ahmed stressed that Trump's relationship with Iran is complicated due to American accusations of alleged bad faith against American officials, which increases tension, without ruling out that Trump will begin his term with a call for negotiations, which will open the way for Iran to present preemptive initiatives.
Regarding the Iranian position, the writer pointed out the absence of a clear plan for dealing with the new US administration, as statements varied between calls for patience until Trump's policies become clear, and indications of the possibility of direct negotiations.
Ahmadi concluded by stressing the importance of Iran announcing its readiness to negotiate directly with the United States, to direct Trump's policies towards diplomatic solutions, instead of leaving the initiative in the hands of the other party.
Prime Minister calls 2025 the year of continued achievements
Prime Minister Mohammed Shia Al-Sudani congratulated the Iraqi people on the advent of the new year 2025, while calling 2025 the year of continuing achievements.
Al-Sudani said in a tweet on the (X) platform, followed by the Iraqi News Agency (INA), that "a new year full of hope and determination to continue the approach of serving our honorable Iraqi people, and the most beautiful congratulations and best wishes, coupled with supplication to God Almighty, to preserve our dear Iraq and perpetuate the blessing of security and stability in all its prosperous regions."
He added, "We have ended a year in which we made the utmost effort to achieve the aspirations of our people, and establish a sustainable development renaissance that makes a difference and moves this generation and future generations to the position that Iraq deserves among nations."
He continued, "At the beginning of 2025, we affirm our determination to complete all that we have started from strategic plans and projects and infrastructure, so that it will be "the year of continuing achievements", and we will not miss an opportunity except to make it on the path to serving the Iraqis by building the state, fighting corruption and achieving reform, providing job opportunities, and securing social and health services. May God protect Iraq and its people."
The Central Bank decides to suspend withdrawals and deposits for four days
The Central Bank of Iraq decided, today, Tuesday, December 31, 2024, to suspend withdrawal and deposit operations for four days.
The Central Bank, in a directive to all banks, received by "Baghdad Today", attributed its decision to stop withdrawal and deposit operations "for the purpose of completing the annual budgets on the dates specified for them."
All approved banks
Stop withdrawals and creations
Greetings...
Based on the provisions of Article 34 of the Banking Law No. 94 of 2004 in force, this bank has no objection to the following:
1- Closing the bank’s doors on 1/2/2025 and stopping various banking transactions for customers, while continuing the normal working hours for all bank employees.
2- Stopping withdrawals and deposits from savings accounts in your bank branches for the period from (12/30/2024) to (1/2/2025) for the purpose of completing the annual budgets on the dates specified for them if you need to do so, provided that this is announced to customers.
Please note that if the above-mentioned days fall on an official holiday, the following day will be considered.
With appreciation.
Central Bank of Iraq
Prof. Dr. Ammar Hamad Khalaf
Deputy Governor Agency
Drains
12/30/2024
Border Guards announce securing the entire strip with Iran: No more smuggling
The Border Guard Command confirmed, on Tuesday, securing and fully covering the common border with Iran, and indicated that it is ready to cooperate with the Iranian Border Guard to ensure protection and facilitate the movement of visitors during the days of the Arbaeen commemoration of Imam Hussein.
The Border Guard Command stated in a statement:
The common border areas with Iran have been fully covered and any smuggling or border violations have been prevented. The Iraqi Border Guards are ready to cooperate with the Border Guards of the Islamic Republic of Iran to ensure the protection of the borders and facilitate the movement of visitors during the days of the Arbaeen commemoration of Imam Hussein (PBUH).
This meeting, which was attended by border guard commanders from Kermanshah, West Azerbaijan, Khuzestan, Kurdistan and Ilam provinces, aims to enhance the level of cooperation and study border and security issues between the two countries and protect the common borders.
For his part, the Commander of the Iranian Border Guard, Major General Ahmad Ali Goudarzi, explained that the border guard forces in Iran and Iraq work side by side to ensure the security of the people of the two countries, and that cooperation is good and border relations are excellent between the border guards in Iran and Iraq.
Iran has 1,609 kilometers of common border with Iraq, and this wide common border is well monitored and managed thanks to the excellent relations and cooperation between the border guards of the two countries.
Comprehensive Guide to Trading the Iraqi Dinar (IQD) on Forex - FOREX News on BitcoinWorld (12/31/24)
The Iraqi Dinar (IQD) is the official currency of Iraq, and while it may not be as widely traded as major currencies like the US Dollar (USD) or the Euro (EUR), it holds significant interest for Forex traders looking to diversify their portfolios. Trading the IQD on the Forex market presents unique opportunities and challenges, influenced by Iraq’s economic conditions, geopolitical factors, and global market trends. This comprehensive guide delves into everything you need to know about trading the Iraqi Dinar on Forex, including live rates, trading strategies, market analysis, and tips for successful IQD Forex trading today.
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