Central Bank: Stimulating hoarded money in homes is one of the most important challenges of the stage
The representative of the Central Bank of Iraq at the Baghdad International Fair, Athraa Taha Juma, stated that "the government is working to develop regulatory frameworks that support the transition to a digital economy, especially in the field of electronic payment.
" She explained that "the transition that Iraq is witnessing towards a digital economy is important."
Juma pointed out that "one of the most important challenges facing the current stage is gaining citizens' confidence in electronic payment products, which will contribute to stimulating the money hoarded in homes and transferring it to the banking sector, as this transformation is part of a larger strategy aimed at stimulating the national economy by investing money in a way that serves major projects in the country."
Participants to Al-Sabah: Baghdad International Fair is a golden opportunity for economic cooperation
Participants in the Baghdad International Fair considered it a “golden opportunity” that could be a supportive starting point for the sustainable development process that the country is witnessing.
The 48th edition of the exhibition this year is witnessing a wide turnout from citizens, investors and businessmen, due to the quality of companies and products displayed locally and internationally.
Industrial investments
The official of the Ministry of Industry wing, Mohammed Qasim, told Al-Sabah: “Iraq is heading towards localizing its national industry, as well as bringing in global industries through investment within the country,” noting that “this matter requires the creation of an ideal work environment that is in harmony with the requirements of industrial investment and actually contributes to turning the wheel of industrial production.”
Industrial cities
Qasim stressed that “industrial cities are considered a trend that can contribute to localizing industry in Iraq, as these cities will provide all the requirements of the Iraqi and foreign industrialist, especially since the path of development has recalculated the calculations of many companies that can transfer their industries to Iraq and launch from it to various markets of the world.”
He pointed out that "the exhibition is an important opportunity to communicate with Arab and foreign participants who came with a real desire to be present in local markets, especially since Iraq has become the focus of attention of major international companies."
Golden opportunity
Baghdad Chamber of Commerce Advisor Wahbi Al-Khafaf told Al-Sabah: “The Chamber views the exhibition as a golden opportunity that can be used to serve the Iraqi economy, which needs combined local and international efforts to move its wheel.”
Available opportunities
Al-Khafaf pointed out that “the companies present at the exhibition have a great desire to work inside Iraq, which is considered a “promising market” that can benefit those who work inside it and invest in the available opportunities in all production and service sectors.”
He also pointed out that “the companies that have come with new goods know that the Iraqi market is large and can accommodate regional and international presence, and some are thinking of localizing their industry within the country.”
More space
As for the representative of the Iraqi Iron Company, he explained to “Al-Sabah”, “The exhibition gave the company a larger space to communicate with the companies participating in the exhibition, especially construction and reconstruction companies and contracting companies that implement major projects that require huge quantities of iron to create concrete blocks.”
He stressed that "the national product is manufactured according to international specifications and competes with the best of its global counterparts."
Local companies
He pointed out that “the exhibition represents an important opportunity, as it saved us a lot of effort and time in reaching this number of local and international companies.”
He pointed out that “the citizen provided an opportunity to communicate with citizens who learned about the nature of the company’s products, selling prices, and product efficiency, as the exhibition is a free opportunity for dissemination.”
Renew participation
A representative of the Pakistani company GFC, which specializes in electrical appliances, confirmed to Al-Sabah that the exhibition is important.
He pointed out that “the Iraqi citizen’s interest in the pavilion created a desire to renew participation in all exhibitions organized inside Iraq, especially since the Iraqi market is vast, and we can be present in all cities.”
Second package
In turn, the representative of the Ministry of Construction and Housing, Aram Majeed, told Al-Sabah, “The presence of the ministry’s team inside the Baghdad International Fair comes to reflect the ministry’s achievements during the past year, the projects that have been implemented and those under implementation, and the projects of the second package that will be launched soon, and includes a number of important projects, including the bridge that connects the Kadhimiya area with the Al-Krayat area.”
Economic cooperation
As for the financial affairs specialist, Athir Abdul Baqi, he said about the exhibition: “The banking sector is an important axis for any economic cooperation between Iraq and the countries of the world, and through our movement inside the exhibition, we noticed the presence of international companies inside the banks’ pavilions and inquired about the nature of the products offered, and how the money movement is going.”
Development plans
He pointed out to “Al-Sabah” that “most delegations stop at the issue or the joint of the development plans for the performance of the banking system, and where it stands among the services provided regionally and internationally, as companies look forward to entering into various businesses within Iraq and studying the reality of the financial sector and the services provided by the banking system.”
(1250) companies of various specializations representing 22 Arab and foreign countries are participating in the 48th session of the Baghdad International Fair.
Economic growth
Economic expert Aqil Al-Hamad told Al-Sabah: “Trade fairs generally represent a facade that indicates the extent of the country’s economic and urban growth.”
He added, "The Baghdad Exhibition is important for international companies, especially since the volume of turnout is large from foreign investors, and it has become a real proof of Iraq's economic importance."
Industrial reality
He explained that “exhibitions work to create solid partnerships between the private sector and foreign companies, and this in itself is an important factor that can improve the nature of the industrial and development reality, in addition to its role in providing many job opportunities and meeting the market’s needs for solid local products. In order to achieve the maximum possible degree of benefit, government agencies must hold more meetings with Iraqi economic organizations to learn about the nature of the exhibitions that should be held.”
Meanwhile, the Ministry of Trade stated that “its formations participated in the 48th session of the Baghdad International Fair, with special pavilions within the framework of enhancing economic cooperation and cultural exchange.
She explained in a statement received by “Al-Sabah” that “the companies’ participation came to highlight their activities and announce and promote their investment projects, which reflect the government’s commitment to enhancing sustainable development and supporting innovation in various fields.”
She pointed out that “the exhibition is an ideal platform for communication between companies and investors, and reflects Iraq’s ability to host major international events that enhance its economic position in the region, as it included a wide range of local and international companies displaying their latest products and services,” indicating that “the pavilions of the ministry’s formations witnessed a great turnout from visitors, and a comprehensive presentation was given on the projects and programs implemented by the ministry’s companies in various sectors.”
The Ministry also invited visitors, whether officials, business owners or citizens, to visit its companies’ pavilions and learn about future projects and initiatives aimed at strengthening the national economy.
Extension of direct sales at Baghdad International Fair for two days
The Iraqi General Company for Exhibitions and Commercial Services decided to extend shopping in the direct sales pavilion inside the Baghdad International Fair "Al-Sorouh Hall 2" for two days, in line with citizens' desire and to give them the opportunity to shop.
The company's director, Mustafa Al-Ani, said: "A very large number of visitors to the exhibition frequent the direct sales hall, and they have the desire to buy the materials available in the exhibition," noting: "The extension decision continues until next Sunday evening, and the exhibition opens its doors to citizens who wish to shop, while all exhibition services will be available to citizens to facilitate their entry and exit after obtaining what they need from the hall designated for direct sales."
He added, "The 48th edition of the Baghdad International Fair was different organizationally and administratively from all previous sessions, and this helped in the influx of large numbers of citizens from various governorates, while the attendance of the public proceeds smoothly and with high transparency in all exhibition pavilions and public squares."
THU FEB 6 2025
Iraq Facing the “Shock Policy”: Challenges of the Next Phase Under the Trump Administration
With Donald Trump returning to the White House, Iraq is anticipating major changes in its relationship with Washington amid warnings that the new US administration will follow a shock policy that relies on making sudden decisions without prior preparation. This approach raises widespread concerns, especially with the escalation of talk about the possibility of it directly affecting political, economic and security issues in Iraq.
America First
Former House of Representatives Rapporteur, Mohammed Othman Al-Khalidi, confirmed in an exclusive interview with Baghdad Today that Trump's policies are completely different from those of his predecessor, Joe Biden, as the new US president relies on the principle of "America First", which means that all his decisions will be based directly on American interests without considering any other factors. Al-Khalidi added that Trump adopts the approach of sudden and shocking decisions, which was evident in his dealings with sensitive files such as the situation in North America and the Panama Canal, which reflects a new way of managing international relations aimed at achieving quick gains without paying attention to the long-term repercussions.
Internal divisions are an “opportunity for Washington”
Iraq may be one of the countries most affected by this approach, especially in light of the internal political divisions that may turn into a pressure card in Washington’s hands. These divisions may give the US administration an opportunity to impose its conditions or make decisions that may affect the Iraqi political scene. At the same time, US policy is expected to continue to strengthen the influence of Washington’s regional allies, which may lead to making difficult decisions against Iraq, whether through economic pressure or reconsidering the nature of the US presence in the country.
Factions and the economic file
On the economic side, observers point out that Iraq may face more financial pressures, especially with regard to controlling the flow of dollars to Iraqi markets, a sensitive issue that may affect economic stability. In addition, the coming period may witness an escalation in positions towards some armed factions, which may create additional tension in the security arena, especially if Washington decides to impose sanctions or take direct measures against some actors in the Iraqi scene.
To avoid any serious repercussions, Al-Khalidi stresses the need to support the government of Mohammed Shia al-Sudani by focusing on a balanced and non-biased policy, working to build a solid economic base that reduces external influences, in addition to intensifying diplomatic efforts to prevent Iraq from falling into the circle of international conflicts. Unifying the internal position will also be a key element in confronting any potential pressures, as Baghdad needs to present a unified political discourse that expresses Iraq’s interests first, away from regional and international tensions.
How will Iraq deal?
In light of these challenges, the most important question remains: Is Iraq ready to deal with the shock policy that Trump may adopt? The answer depends on the government’s ability to formulate proactive strategies capable of dealing with any sudden decisions that may be issued by Washington. Although the next stage may be difficult, Iraq has great opportunities for maneuver if it manages its internal and external files with flexibility and wisdom. Ultimately, the coming weeks and months will determine whether Iraq is able to contain the repercussions of this new policy or whether it will find itself once again facing challenges that may reshuffle the cards in the country’s political and economic landscape.
Kurdistan Region launches January salaries via “My Account”
Today, Thursday, the "My Account" platform announced the start of disbursing January salaries to Kurdistan Region employees via the digital system.
The team responsible for the "My Account" platform confirmed in a statement seen by "Al-Eqtisad News" that the salaries for the month of January will be distributed digitally today, in all governorates of the Kurdistan Region, as the salaries will be transferred to the bank accounts of the beneficiaries starting at eight o'clock in the morning.
The statement explained that the number of beneficiaries of the disbursement process through "My Account" reached 275 thousand employees, including 216,500 civil servants and 56,700 Peshmerga forces, and they will be able to withdraw their salaries through more than 550 ATMs distributed in more than 200 different locations throughout the region.
The platform added that the number of those registered in the "My Account" project has so far reached 720,000 employees out of a total of about one million employees receiving their salaries from the Kurdistan Regional Government, and 370,000 bank cards have been distributed to those benefiting from the service.
In this context, the Ministry of Finance and Economy in the Kurdistan Region announced the disbursement of January salaries, which were deposited into the bank accounts of beneficiaries of the “My Account” project.
The statement added that technical staff are waiting for employees to help them withdraw their money.
This measure comes as part of the Kurdistan Regional Government’s plan to enhance digital transformation in salary disbursement operations, which contributes to reducing reliance on cash, increasing transparency, and facilitating withdrawal operations for beneficiaries, in light of a broader trend towards shifting to digital banking services.
The Kurdistan Regional Government launched the “Hisabi” project as part of its plan to develop the banking infrastructure in the region, with the aim of improving salary management and facilitating financial transactions for employees. The project aims to reduce congestion at traditional salary distribution centers and enhance the use of electronic banking services, as part of a broader trend towards digitizing government operations in the region.
What is the importance of amending the budget law? An advisor to the Prime Minister explains
Saleh told {Al-Furat News} that: "Any decision issued by the legislative authority takes its constitutional course by publishing in the Official Gazette after the President of the Republic's approval, so that these schedules are implemented within a few days.
Saleh added that "the approval of the House of Representatives and the ratification of the 2025 budget schedules comes in implementation of the provisions of Article 77/Second of the Federal General Budget Law No. 13 of 2023 {the three-year budget}, which are important schedules that include some amendments in the estimation of public revenues and expenditures, in addition to calculating the deficit and its sources of financing within the constants of the law, which was also subject to amendment."
He explained that "the approval of the Presidency of the Republic and the publication of the financial schedules for 2025 in the Official Gazette of the Republic of Iraq represent a high degree of governance and transparency in the country's public finances."
Saleh pointed out that these schedules "include the amendments that have occurred in the financial policy, in line with the government program approved by the House of Representatives in October 2022."
Foreign reserves and the dollar price.. What do you know about their functions in Iraq?
Experts in Iraqi economic affairs believe that the reserves of Mesopotamia and its investment portfolio, after the reserves recorded 106.7 billion dollars during the year 2024, are Iraq’s fortress and incubator in providing overall stability and protecting the national economy from external shocks that are reflected in the Iraqi balance of payments, in addition to its role in stabilizing the general level of prices internally through intervention policies in the organized money market.
Iraq ranked third in the Arab world in terms of foreign exchange reserves for the year 2024, as this reserve is considered "very large" and "reassuring" because it represents 20-40% of the volume of the issued currency. The foreign reserves of any country also contribute to maintaining the value of the local currency and liquidity to meet international financial obligations, in addition to financing domestic projects and reassuring investors, in addition to diversifying investment portfolios.
The cash reserve is defined as the total deposits and bonds of foreign currencies held by the central banks and monetary authorities in the country with the aim of supporting the local currency and paying the debts owed by the country. The cash reserve usually consists of several elements, which are foreign currencies, such as the dollar, the euro, the Japanese yen and other currencies, in addition to gold.
quasi sovereign wealth fund
In this context, the financial advisor to the Iraqi Prime Minister, Mazhar Mohammed Salih, says that Iraq’s foreign reserves, their formation and management are considered a quasi-sovereign wealth fund (which is currently managed by a well-diversified investment portfolio in different currencies and short-term derivative investment instruments), and the aforementioned portfolio of reserves performs two basic functions at the same time.
Saleh reviewed these two functions by saying to the "Al-Jabal" platform: "The first is to protect macroeconomic stability, i.e. the stability of the general level of prices internally by controlling the levels of local liquidity in line with the real flows of goods, services and benefits that are financed by part of these reserves and what results from them and are called here international reserves, by influencing the control of growth in the money supply through intervention in the money market by withdrawing excess liquidity by exchanging it for foreign currency, in order to finance foreign trade for the private sector in particular, indicating that these activities are called in monetary policy (monetary sterilization) using a mechanism called open market operations, which is the operational (quantitative) aspect of the objectives of monetary policy called operational objectives to combat the growth of monetary inflation rates and stabilize cash flows."
The second is to use those foreign reserves in part by intervening in the monetary market to provide (price) stability in the exchange market by adhering to the fixed and stable exchange rate (signals) that the regular foreign currency exchange market is the basis of that market and the leader of the stability of the exchange rate itself, according to Saleh.
The advisor stressed in his statement to "Al-Jabal" that there is a specialized central administration for these reserves, as the foreign portfolio is subject to highly precise investment standards in adopting short-term international financial instruments that generate interest returns, including investing in treasury bonds of central countries in the world that are guaranteed with high-rated returns, but are semi-liquid, and this is what distinguishes the sovereign wealth fund from stability funds. I mean here the foreign reserves portfolio, which requires it to be semi-highly liquid to confront fluctuations in the national balance of payments when needed.
Cash gold, which may constitute more than 10% of these reserves, is a safe haven within the aforementioned investment portfolio of the reserves under study against the risks of currency fluctuations and the interest that makes up the portfolio itself, since the gold asset cycle is a long-term and relatively stable cycle, as monetary authorities can issue gold bonds guaranteed by the reserve gold itself and with interest when needed, and these are globally desirable bonds, according to the Iraqi government advisor.
Saleh added that "Iraq currently enjoys foreign reserves that are considered high in terms of efficiency, especially in terms of their coverage of the broad money supply, which covers 75% or more, which is the global measure required to measure the efficiency of foreign exchange reserves in maintaining stability for the national economy, in addition to the fact that the aforementioned foreign reserve covers approximately 15 months of import trade, which is a measure superior to the global measure that indicates 3 months of trade sufficiency." Thus, "Iraq's reserves and investment portfolio are Iraq's fortress and incubator in providing overall stability and protecting the national economy from external shocks that are reflected in the Iraqi balance of payments, in addition to its role in stabilizing the general level of prices internally through policies of intervention in the organized money market."
Gives Iraq the ability to control the exchange rate of the dinar
In contrast, Professor of International Economics, Nawar Al-Saadi, acknowledged that “these reserves go beyond being mere numbers registered with the Central Bank. They represent the foundation on which the state relies in confronting economic crises, whether they result from a decline in oil prices, which is the main source of revenue, or due to turmoil in global financial markets that may affect cash flows and investments.”
Al-Saadi added in his interview with Al-Jabal, “Having strong foreign reserves gives Iraq the ability to control the exchange rate of the dinar, which reduces its violent fluctuations that may lead to high inflation rates and an increase in the cost of living for citizens. These reserves are also used to finance vital import operations, especially for basic commodities such as food and medicine, which ensures the continued flow of these materials to Iraqi markets without being significantly affected by external circumstances.”
He added, "The level of foreign reserves directly affects Iraq's credit rating and the confidence of international financial institutions in the local economy. The higher these reserves are, the more confident investors are, which enhances the chances of attracting foreign capital and supports investments in non-oil sectors, which is what Iraq needs to reduce its dependence on oil as the sole source of revenue."
He believed that "having large reserves alone is not enough to ensure economic stability, as they must be accompanied by sound financial and economic policies. These reserves cannot be considered a resource that is consumed merely to cover the financial deficit, calling for "investing them wisely to enhance economic development and support productive sectors, because using reserves in an ill-considered manner may lead to their depletion over time, which exposes the country to great risks when unexpected economic shocks occur."
Al-Saadi concluded his speech by saying, “Iraq needs a clear strategy for managing its foreign reserves, so that they are employed in a way that achieves a balance between monetary and financial stability on the one hand, and supporting development and investment projects on the other hand. Maintaining these reserves at safe levels enhances the Iraqi economy’s ability to withstand crises, and gives decision-makers more room to maneuver in facing future economic challenges.”
Rashid to Zarif: Iraq's position on establishing a Palestinian state is firm, and our foreign policy is based on the interests of our people
Zarif conveyed the greetings of Iranian President Masoud Pezeshkian to His Excellency the President and his wishes for further development and prosperity for the Iraqi people, while President Abdul Latif Jamal Rashid, the Iranian Vice President, conveyed his greetings and appreciation to President Pezeshkian, stressing Iraq's keenness to strengthen relations between the two countries and develop mechanisms of bilateral cooperation to serve common interests.
President Rashid stressed, during the meeting, that our foreign policy is based on the interests of our people and their vision for security and stability in the region, pointing to the importance of adopting constructive and productive dialogue in resolving the issues and crises facing the countries of the region.
Regarding the developments in Palestine, His Excellency stressed Iraq's firm position in supporting the Palestinians to achieve their rights and self-determination by establishing their independent state.
He added that Iraq has good relations with neighboring countries and the world, and based on its pivotal role, it has sought to enhance opportunities for peace and bring the views of regional parties closer together.
In turn, the Iranian Vice President stressed the depth of Iraqi-Iranian relations, pointing to the religious, geographical, social and historical ties that bind the two neighboring peoples.
Zarif also stressed the important role of the two countries in establishing the pillars of peace and stability at the Arab and regional levels, renewing his country's support for Iraq in defending its security and protecting its sovereignty and independence.
.png)
Al-Sudani, Russian envoy discuss bilateral cooperation and stability
Iraq’s Prime Minister Mohammed Shia Al-Sudani met Wednesday with Mikhail Bogdanov, Russian President Vladimir Putin’s special representative to the Middle East and North Africa, to discuss bilateral relations and ways to enhance cooperation across multiple sectors, according to a statement from Al-Sudani’s media office.
The discussions also addressed regional and international developments, focusing on “efforts aimed at strengthening stability in the region.” The prime minister reaffirmed Iraq’s commitment to “fostering stronger ties between Iraq and Russia.”
The meeting follows earlier talks in Baghdad between Iraqi Speaker of Parliament Mahmoud Al-Mashhadani and a Russian delegation led by Bogdanov,
Statement from PM Al-Sudani’s media office:
Prime Minister Mohammed S. Al-Sudani met today, Wednesday, the Special Envoy of the President of the Russian Federation to the Middle East and North Africa, Mr. Mikhail Bogdanov. The meeting focused on bilateral relations between Iraq and Russia and explored ways to enhance cooperation across various fields.
The discussions also covered regional and international developments and efforts aimed at strengthening stability in the region. Prime Minister Al-Sudani expressed his initial approval to participate in the upcoming Arab-Russian Summit to be hosted by the Russian Federation, recognizing its importance in advancing mutual interests.
The Prime Minister reiterated the government’s commitment to fostering stronger ties between Iraq and Russia and expanding avenues of cooperation in multiple sectors. He also emphasized the need to enhance collaboration on the Development Road project and Russian initiatives concerning transit routes to ensure shared benefits and the growth of common interests.
For his part, Mr. Bogdanov conveyed the greetings of Russian President Vladimir Putin to Prime Minister Al-Sudani and reaffirmed his government’s keenness to activate bilateral memoranda of understanding. He also confirmed Russia’s readiness for the upcoming tenth meeting of the Iraqi-Russian Joint Committee, which will oversee the implementation of agreements and memoranda of understanding between the two nations.
Chevron In Talks With Trump Administration Over Venezuela Oil
Chevron Corp. (NYSE:CVX) is holding talks with the Trump administration amid calls by top Republican officials for the company to exit the country. According to Secretary of State Marco Rubio and other foreign-policy hawks, Chevron has been providing a financial lifeline for Maduro’s regime to enrich itself and suppress civil rights. Venezuela produced about 20% of Venezuela’s oil in 2024, close to Maduro’s goal of 1 million barrels per day. Chevron is the only major oil producer with a waiver to operate in Venezuela despite Washington’s sanctions against President Nicolás Maduro’s regime.
“We are in contact with the current administration,” Chevron Chief Executive Officer Mike Wirth said in an interview Wednesday on Bloomberg Television. “We work closely with the government to understand their objectives, to understand their limitations.”
Last month, Chevron reported that it’s well positioned to grow free cash flow by $6 billion to $8 billion by next year, and lower expenses by "a couple billion dollars." America’s second largest oil and gas company expects to achieve these results thanks to the start of new or expanded oil production projects in Kazakhstan, growth in U.S. shale and offshore U.S. Gulf of Mexico.
Chevron has projected oil production growth in the Gulf of Mexico to clock in at 300,000 barrels per day by 2026, up from 200,000 last year. Back in August, Chevron produced its first oil from a pioneering U.S. Gulf of Mexico deepwater field under extreme pressures. The field is expected to produce up to 75,000 barrels of oil per day at its peak, with the company lining up two more offshore projects.
Meanwhile, Chevron is looking to close the gap between it and Exxon Mobil Corp. (NYSE:XOM) through the acquisition of Hess Corp. (NYSE:HES). Hess CEO John Hess says he's "very confident" that the company's planned $53 billion sale to Chevron will be completed.
"We're very confident that the merger is going to go through and we're getting prepared for that," Hess said at the Goldman Sachs Global Energy, Clean Technologies & Utilities Conference.
Among them is the exchange of information.. Securities clarify the details of the terms of the Egyptian Memorandum of Understanding
The Securities and Commodities Authority confirmed, on Thursday, that the Egyptian memorandum of understanding is an important step to enhance transparency and stability in the financial markets, while indicating that it will last for 5 years and can be automatically extended.
The head of the Securities Commission, Faisal Al-Haims, said in a statement to the Iraqi News Agency (INA): “A memorandum of understanding was signed between the Iraqi Securities Commission and the Egyptian Financial Supervisory Authority with the aim of enhancing cooperation between the two parties in the field of regulating and supervising financial markets,” indicating that “the memorandum includes several main areas, including the exchange of information and expertise, cooperation in the fields of training and technical assistance, and coordination to combat manipulation in financial markets and ensure compliance with laws and regulations.”
He explained that “this memorandum represents an important step to enhance transparency and stability in the financial markets of both Iraq and Egypt, as it provides opportunities to develop regulatory systems, raise the level of protection for investors, and stimulate local and foreign investments through the application of advanced regulatory standards,” noting that “the memorandum contributes to supporting regional cooperation between financial bodies and enhancing the position of the Iraqi and Egyptian markets at the international level.”
Regarding the mechanism for activating the memorandum, Al-Haimas confirmed that “the memorandum will be activated by forming specialized committees that will follow up on cooperation mechanisms and supervise the implementation of the agreement, and organize joint workshops and training programs to develop the technical capabilities of employees in the two authorities, in addition to strengthening the mechanisms for monitoring and supervising financial markets through cooperation in investigations and regulatory procedures against any violations, and periodic meetings between representatives of the two sides to follow up on the implementation of the memorandum’s provisions and develop them according to emerging needs.”
He concluded that "the memorandum will enter into force immediately upon completion of the necessary legal procedures," noting that "it will continue for a period of five years, automatically extendable unless one of the parties decides to terminate it in advance."
The President of the Republic stresses to the Governor of the Central Bank the necessity of developing the services provided to the citizen
President of the Republic Abdul Latif Jamal Rashid stressed, today, Thursday, to the Governor of the Central Bank of Iraq, the necessity of adopting monetary policies that enhance financial stability.
A statement from his media office received by "Al-Eqtisad News" stated that "the President of the Republic received at the Baghdad Palace, the Governor of the Central Bank, Ali Mohsen Al-Alaq, to discuss the financial and economic situation in the country and the means to reform and develop the banking sector and adopt monetary policies that enhance financial stability and achieve economic development."
The President of the Republic stressed "the necessity of working according to clear standards that contribute to developing the services provided to the citizen, pointing out the importance of encouraging and attracting investments by supporting the private sector and investing in the stable security situation in the country in a way that enhances this aspect."
In turn, the Governor of the Central Bank reviewed the "bank's efforts to confront economic challenges."
American eyes look at "Rafidain Bank".. Smuggling dollars to Iran may lead to sanctions and "economic collapse"
American eyes are turning towards the government-owned Rafidain Bank and demanding that sanctions be imposed on it, describing it as a “window for smuggling dollars to Iran,” while politicians and academics do not view the matter with optimism, especially since any impact on the bank will cause financial tensions within Iraq, as it is one of the most important government banks.
Republican Representative Joe Wilson, in a post on his X account, called on the US Treasury Department to impose sanctions on the official Iraqi Rafidain Bank, which he said was "smuggling huge sums of money to Iran."
"Maximum pressure on Iran means maximum pressure on Iraq. Start with Rafidain Bank," Wilson said, addressing the US Treasury, saying, "Stop allowing Iraqi militias and the Iranian regime to smuggle $500-600 million a month from the largest bank in Iraq," stressing that "Trump will fix it."
With Donald Trump in the White House, politicians and experts are warning of the danger of imposing any American sanctions on the Iraqi banking system in the coming period, especially the "Rafidain Bank", as there is a possibility that Iraq will witness "catastrophic results" if sanctions are imposed, after the circulation of a memorandum issued by the American presidency, stressing the need to tighten the noose on Iran, followed by American political calls to stop funding to Iraqi entities and impose sanctions on banks, most notably the government-owned Rafidain Bank, which is accused by an American representative of sponsoring the smuggling of money to Iran and armed factions loyal to it.
What if sanctions are imposed?
“Imposing any American sanctions on the Iraqi banking system, the official government one, will have serious and major repercussions on the stability of the economic and financial situation in Iraq,” banking and financial expert Nawar Al-Saadi told Al-Jabal platform on Thursday, noting that “this will lead to a significant increase in the dollar exchange rate, and will also prevent many foreign investment opportunities in various sectors. Therefore, these American sanctions and threats of them will cause a near collapse of the Iraqi economic situation.”
The banking expert added that “these sanctions will have an impact on raising the budget deficit as well as the difficulty of obtaining cash liquidity to provide employees’ salaries, especially since Iraqi oil is sold and the money from the sale is placed in American banks and then transferred to Iraq. If these sanctions are imposed, America will prevent or delay sending these funds,” noting that “here, Iraq will enter a dangerous financial crisis, the most dangerous in its history, and therefore the sanctions on the Iraqi banking system are dangerous, and their results differ from imposing sanctions on some private banks, as happened previously.”
"catastrophic results"
On the other hand, the Finance Committee in the Iraqi Parliament confirmed that "catastrophic results" would occur if the United States imposed any sanctions on the Iraqi banking system.
Committee member Mustafa Al-Karawi said in an interview with Al-Jabal that “the economic and financial situation in Iraq could collapse if the United States of America imposes any sanctions on the Iraqi banking system, as this will have truly catastrophic consequences.”
Al-Karawi explained that "until now, there is no official American move to impose such sanctions on the Iraqi banking system, and what has been issued is merely a threat and intimidation, perhaps for the purpose of pressuring specific issues and files, but at the same time, these threats must be taken seriously, and Iraqi diplomacy must move to prevent such decisions that have disastrous consequences on Iraq's financial and economic situation."
"punitive memo"
On Tuesday, February 4, the White House published a presidential memorandum on US national security, which included in part tightening sanctions on Iran, as the memorandum directed to “maintain countermeasures against Iran within the framework of the Financial Action Task Force, evaluate ownership thresholds to ensure that Iran is denied all potential illicit proceeds, and evaluate whether financial institutions should adopt the Know Your Customer (KYC) standard for transactions related to Iran in order to further prevent sanctions evasion.”
Also, “take immediate steps, in coordination with the Secretary of the Treasury and other relevant agencies, to ensure that Iran does not use the Iraqi financial system to evade or circumvent sanctions, and that the Gulf States are not used as a remittance point to evade sanctions.”
A major American shift
Political analyst Aqil Abbas said, "What is happening now is a major shift in the American approach to Iraq, considering this country as part of the Iranian axis and treating it as an adversary, but in an undeclared manner."
Abbas said in an interview with the "Al-Jabal" platform in this regard that "the presidential memorandum stated that the Iraqi banking system should be prevented from smuggling money to Iran," noting that "in normal administrations, America does not announce something like this publicly and in a memorandum of a punitive nature, but rather communicates through political and diplomatic channels, and the pressure is from behind the scenes. Now the matter has become public, Iraq will no longer enjoy the previous advantage of a friend, to obtain exemptions regarding oil and others regarding electricity, or to work with its government to develop its ability to be independent from Iran."
He explained that "this time Washington classifies Iraq as an ally of Iran and is going directly to economic sanctions, and this could even include the Central Bank of Iraq, and a real disaster will happen to Iraq if things go in this direction, and this is very possible."
Parliamentary Finance: Budget deficit unknown, there is enough time to review it
Jamal Kocher told {Euphrates News} that: "It is not possible to know the size of the budget deficit because the related tables have not yet reached the Finance Committee."
He explained that "what has been approved in the House of Representatives so far is the paragraph of Article 12 related to the oil of the Kurdistan Region and the agreement on it, while the rest of the tables have not yet arrived."
Kocher added that "if the government sends the 2025 budget tables soon, there will be enough time to review and approve them in Parliament during the remaining period of its life."
Taif Sami confirms to the World Bank the government’s commitment to implementing financial and economic reforms
Minister of Finance Taif Sami Mohammed received today, Thursday, the World Bank Representative in Iraq, Emmanuel Salinas, and his accompanying delegation, to discuss ways to enhance cooperation between the two sides in supporting development projects and implementing economic reforms. Sami stressed, according to the ministry’s statement, a copy of which was received by {Al Furat News}: “The importance of partnership with the World Bank in financing programs aimed at achieving sustainable development, She pointed out that "these reforms aim to enhance sustainable growth, improve the management of financial resources, combat corruption, and enhance transparency in government institutions." For his part, the World Bank representative praised the Iraqi government's efforts to improve the economic environment and enhance transparency and efficiency, stressing "the bank's readiness to provide more technical and financial support in line with Iraq's development priorities." The two parties agreed - according to the statement - to continue coordination and joint work to achieve strategic goals and enhance economic stability in the country. | |
No comments:
Post a Comment