Controversy over the dollar in Iraq.. Expectations of a price increase and the government reassures!
The exchange rate is volatile and the dollar is rising against the dinar, which is putting the Iraqi economy in great challenges, raising fears of a possible financial crisis. While the government confirms the stability of monetary policy, experts warn of the impact of financial restrictions and increased spending on market stability, stressing the need for urgent reforms to ensure the sustainability of the economy. The advisor to the Iraqi Prime Minister, Dr. Mazhar Muhammad Salih, said that "the government is not currently considering amending the exchange rate equation or what is known as "monetary adjustment", denying the speculations circulating in this regard. Salih explained, in an interview with (Al-Mada), that these rumors are not based on realistic foundations within the current monetary policy, stressing that the monetary sector in Iraq enjoys clear stability.
The video for this blog post is below here:
Salih pointed out that "this stability is due to the strong foreign reserves possessed by the Central Bank of Iraq, as the dollar coverage rate for the dinar exceeds 100%, which contributes to controlling the financial market and reducing the impact of the black market for the currency, despite the price difference that reaches about 13% from the official price." The advisor explained that foreign reserves are a major tool for controlling the level of cash liquidity within Iraq through open market operations, which is one of the mechanisms adopted by monetary policy to control the economy. He also confirmed that the Central Bank meets more than 95% of the local market's needs for dollars, at an exchange rate of 1,320 dinars per dollar, which enhances the stability of the monetary market.
Regarding financial policy, Salih confirmed that it has effective tools to control expenditures and increase revenues without compromising With the stability of the macroeconomy, stressing that resorting to financing the fiscal deficit through inflation, or what is known as inflationary taxes, is one of the worst financing policies due to the price fluctuations it causes and the negative repercussions on the purchasing power of the general budget and citizens' cash income.
Member of the Parliamentary Finance Committee, Hussein Mounes, had warned of the danger of expanding government spending, stressing that the operating budget is largely consumed on luxury issues, which necessitates reducing it in the 2025 budget.
Mounes explained that the Ministry of Finance faces major challenges in providing salaries, as it enters a state of financial warning on the twentieth of each month, due to limited tax revenues, as only 3 trillion dinars are collected annually out of an expected 9 trillion. He also pointed out that there are daily transfers of up to $250 million, but tax revenues do not reflect this amount, which constitutes an imbalance in the financial system.
Mounes expressed his concerns about the lack of a clear economic plan to confront any potential decline in oil prices, stressing that Iraq could face a serious financial crisis if oil revenues decline, which could push the government to raise the exchange rate again as a necessary measure.
In the same context, economic expert Ziad Al-Hashemi criticized the measures taken by the government and the Central Bank, considering that they were not sufficient to achieve stability in the dollar exchange rate. He pointed out that "the ongoing gap between the official rate and the parallel market continues to negatively affect the Iraqi economy," stressing that the government and the Central Bank have not been able to achieve the target exchange rate of 1,300 dinars per dollar over the past year and a half, which has led to significant economic losses.
Al-Hashemi explained to Al-Mada that "the Iraqi financial system suffers from the concentration of foreign transfer operations in a limited number of banks, as the state relies on only four to five banks through the system of strengthening balances using foreign correspondent banks," which he described as "a bottleneck that threatens the stability of the markets." He stressed that the lack of banks capable of executing foreign transfers leads to a decline in the amount of dinar available to the government to cover salaries and subsidies, and contributes to a decrease in the supply of the dollar, which prompts traders to resort to the parallel market, thus increasing its value.
Al-Hashemi criticized the slow response of the Central Bank of Iraq in expanding the base of banks that can execute foreign financial transfers, considering that this delay leads to the continuation of the exchange rate crisis. He also warned of the potential repercussions of US restrictions and sanctions on some Iraqi banks and economic entities, noting that any new measures by the US Federal Reserve may increase the level of demand for the dollar and raise its prices. Al-Hashemi stressed the urgent need for urgent banking reforms, calling for taking more effective measures to ensure the stability of the exchange rate and prevent the exacerbation of the economic crisis in the country.
Why is the dollar still rising?
Dr. Nawar Al-Saadi, professor of international economics at the University of Bucharest in Romania, believes that one of the main factors behind the rise in the value of the dollar against the Iraqi dinar is the continued US restrictions on dollar flows to Iraq. He explained that the US Treasury Department imposed strict control measures on financial transfers, which made obtaining dollars more complicated and forced Iraqi banks to comply with strict auditing requirements, which led to a reduction in the supply of dollars in the official market.
Al-Saadi added to (Al-Mada) that "the demand for the dollar in Iraq is witnessing a continuous increase, especially from traders and importers who need hard currency to complete their foreign trade transactions. This increasing demand has prompted many of them to resort to the parallel market, where prices are much higher than the official price, which has exacerbated the gap between the two markets."
The problem did not stop there, as Al-Saadi pointed to the phenomenon of smuggling dollars to neighboring countries, especially those suffering from international sanctions, which imposes additional pressure on the Iraqi exchange market. He explained that a large portion of the available dollars are smuggled instead of remaining in the local market, which further complicates the economic crisis.
Regarding the procedures followed by the Central Bank of Iraq, Al-Saadi explained that "the bank has pumped large quantities of dollars through the currency sales window, but the problem does not lie only in the availability of the currency, but in the mechanism for distributing it and ensuring that it reaches the parties that actually need it." He also stressed the need to improve the efficiency of the Iraqi banking system and accelerate the procedures for legitimate financial transfers to reduce the bureaucratic complications that affect the flow of hard currency.
Al-Saadi pointed out that "the current economic crisis is not limited to monetary aspects only, but extends to broader structural challenges, which requires the implementation of comprehensive economic reforms, including reducing reliance on the dollar and enhancing local production." He added that the continued gap between the official and parallel price may exacerbate the crisis, which makes expectations of a rise in the dollar against the Iraqi dinar valid under the current circumstances.
Rafidain Bank calls on MasterCard holders to provide it with a "valid" passport
Rafidain Bank called on Saturday (February 8, 2025) holders of the bank’s MasterCard to provide it with a “valid” passport.
A statement by the bank received by "Baghdad Today" stated, "Based on the directives of the Central Bank of Iraq, we would like to inform you of the necessity of providing us with a valid passport through the K-Services application before March 7, 2025 to ensure the continued use of MasterCard and Visa cards in international transactions outside the country, which include purchases, electronic payment through points of sale, and cash withdrawals."
He added, "If the data is not updated, services will be limited to operations within Iraq only."
Advisor .. to employees and retirees: No fear for financial liquidity
The Prime Minister's Advisor for Economic Affairs, Mazhar Muhammad Salih, reassured employees and retirees, saying that "there is no fear for the financial liquidity" in the country.
Saleh said, "Although the monetary mass, at a rate of 85 to 90% of the monetary issuance, is outside the banking system, which is a historical fact in Iraq and is not a product of today or yesterday, there is close cooperation between monetary policy and fiscal policy to provide liquidity to the general budget."
He explained that “the general budget receives regular flows from oil sales, and there are fears from the oil asset cycle that oil prices will fall below their value, but so far this has not happened, and it all depends on stopping the war between Russia and Ukraine and other unclear issues based on speculation.”
Al-Sudani: The door is open for Kuwait to enter into development projects
Prime Minister Mohammed Shia Al-Sudani called on the State of Kuwait, today, Sunday, to invest in vital development road projects in Iraq.
This came during his meeting today in Baghdad with the Kuwaiti Ambassador to Iraq, Hassan Mohammed Al-Zaman.
Al-Sudani pointed out, according to a statement issued by his media office, the depth of relations between the two countries, and the importance of consolidating and expanding them at various levels and stages.
During the meeting, the Prime Minister stressed his aspiration to strengthen constructive bilateral cooperation in several fields, pointing to the available opportunities and the availability of an appropriate investment environment for the work of Arab and foreign companies, including Kuwaiti companies.
The statement quoted Al-Sudani as saying that the door is open for the State of Kuwait to enter into development projects and benefit from the announced investment opportunities, which contributes to strengthening economic integration and interconnected interests between the two countries.
Jordan's King Begins US Visit, Expected Meeting with Trump
The Jordanian News Agency reported that King Abdullah II began a working visit to the United States today, and is scheduled to meet in Washington the day after tomorrow, Tuesday, with US President Donald Trump.
The Jordanian News Agency explained, "The King is scheduled to meet with Secretary of State Marco Rubio, National Security Advisor Mike Walz, Special Envoy of the US President to the Middle East Steven Witkoff, and members of committees in the Senate and House of Representatives."
It added, "The King of Jordan will meet in Boston with representatives of American companies and higher education institutions, and Massachusetts Governor Maura Healey, tomorrow, Monday. These meetings have been postponed since last December, and the prevailing weather conditions at the time prevented them from being held."
It also confirmed that "the King met today with US Secretary of Defense Pete Hegseth."
The visit comes within the framework of Jordan's diplomatic efforts aimed at confirming the Kingdom's rejection of the displacement of Palestinians from their land.
The dollar stabilizes in the parallel market.. Is the price madness over?
This stability is mainly attributed to the decrease in demand for the dollar for import purposes.
Economic expert Salah Nouri told {Euphrates News} that: “The stability of the dollar exchange rate in the parallel market is due to the decrease in demand for imports by traders who import goods from neighboring countries, as a result of anticipation of the outcome of the US decisions regarding sanctions.”
Nouri stressed that “the decrease in the dollar exchange rate has a positive impact on citizens’ purchasing power, but to varying degrees depending on the type of goods, such as basic food items other than medicines.”
Is the price madness over?
This stability indicates the possibility of an end to the “price madness” that the dollar market witnessed in the previous period; however, the economic expert believes that this stability is dependent on the decisions of the United States of America regarding sanctions, which means that the market may witness other fluctuations in the future.
Its impact on citizens
The decline in the dollar exchange rate has a positive impact on citizens’ purchasing power, as they can buy more goods and services with the same amount of Iraqi dinars. However, this impact varies depending on the type of goods, as citizens benefit more from the decline in the prices of basic food items other than medicines.
World Gold Council: Iraq moves up in global gold reserves ranking – World Gold Council
Iraq has climbed one spot in the global ranking of countries with the largest gold reserves, reaching the 28th position out of 100 nations, according to the latest data from the World Gold Council.
The February report shows that Iraq advanced from 31st place globally and now ranks fourth in the Arab world, following Saudi Arabia, Lebanon, and Algeria.
Iraq increased its gold holdings to 162.7 metric tons, accounting for 12.7% of its total reserves, the data showed.
The United States remains the world's largest holder of gold, with 8,133 metric tons, followed by Germany (3,351 tons), Italy (2,452 tons), and France (2,437 tons). At the bottom of the list, Trinidad and Tobago holds 1.9 tons.
Saeed Tavakli: Iraq signs new gas export contract with Iran
The CEO of the National Iranian Gas Company, Saeed Tavakoli, confirmed today, Saturday, "The export of gas to Iraq is currently ongoing, and we have recently signed a long-term contract with Iraq."
Tavakoli told the Iranian Mehr News Agency regarding US President Donald Trump's decision last Wednesday to cancel the exemption granted to Iraq to import electricity and gas from Iran as part of new sanctions against Tehran, "The decision represents an escalation of US pressure on Iran, as it pressures Iraq to reduce its dependence on Iranian energy."
Saeed Tavakoli stressed, "The export of gas to Iraq is currently underway, and since we have recently extended a good contract for exporting gas, it is likely that the cancellation of the exemption granted to Iraq to import electricity and gas from Iran was for another form of gas import."
The Iranian official continued, "Fortunately, the Iranian-Iraqi contract is in place, but the volume of exports increases and decreases according to the contractual terms."
Regarding gas imports and swaps, Tavakoli also said, "We do not import gas, but gas imports and swaps, such as electricity, are carried out from Armenia."
The CEO of the National Gas Company also stated regarding the drop in temperatures and the state of gas supply: "Currently, the network conditions are stable, and in the current situation, 72 percent of the gas produced is consumed in the domestic sector, and thanks to the cooperation of citizens, the gas supply network will remain stable in the coming days."
Iranian officials said last year that Iraq owed Iran $11 billion in debt due to the gas it purchased, and the payment of this debt was postponed by Iraq to the extent that Iran was forced, in response, to reduce gas exports due to the heavy debt.
PM's Advisor: Government has taken steps to revive manufacturing industry
The financial advisor to the Prime Minister, Mazhar Mohammed Salih, confirmed that the government has taken steps to revive the manufacturing industry.
Salih told the official agency: "The revival of the manufacturing industry in Iraq is a strategic issue with multiple dimensions, the first of which is that the industrial operator, whether small, medium or large, is one of the most important activities responsible for employing 60% of the workforce."
He pointed out that "eliminating sustainable unemployment requires economic diversification, and the basics of diversification start with the industrial construction of Iraq. Secondly, the partnership with the private sector is an ideal solution for reviving the industrial sector itself, whether this partnership is in providing financing and government support or a partnership in ownership or capital. This requires a balance between the public interest and private interests, while ensuring the existence of a transparent regulatory environment with high governance that encourages effective cooperation in an integrated social market between the two parties," noting that "the partnership in management and ownership between the public and private sectors leads to stimulating innovation and technological development and encouraging research and development, in addition to investing in advanced manufacturing technology such as automation, artificial intelligence and 3D printing."
He stressed that "the financing partnership represents the provision of financial support to small and medium enterprises operating in the field of manufacturing to create an optimal operating lever," explaining that "the national development plan indicates efforts to rebuild the foundations of the manufacturing industry through real partnerships with the private sector, where the state contributes to guaranteeing sovereign financing for manufacturing industries by 85%, while the private industrial project bears 15% of the financing."
He continued that "this financing strategy is devoted to financing industrial projects at five levels, foremost of which are projects whose products are related to construction and housing or contribute to development road works, then pharmaceutical industries, petrochemical industries, and others," noting that "the government's economic philosophy, in accordance with the government program, is based on the partnership between the state and the market with broad social security, and this is what makes it work according to the social market theory, which is a departure from economic liberalism and its risks."
He explained that “Riyada Bank was established with the support of the state to provide small and medium-sized loans to young people, and this was preceded by the Prime Minister’s Riyada Initiative, which paved the way for this by providing thousands of loans to youth sectors and stimulating their innovations,” explaining that “this will lead to encouraging the country’s regulatory and investment environment and adopting policies that encourage competition, improve the business environment, and reduce bureaucratic regulations that may hinder the industrialization process and its rapid advancement.”
.png)
The President’s prosecution of Al-Sudani and Taif Sami “ignites” a wave of widespread criticism
The lawsuit filed by the President of the Republic, Abdul Latif Jamal Rashid, before the Federal Supreme Court against both Prime Minister Mohammed Shia al-Sudani and Finance Minister Taif Sami, against the backdrop of the delay in disbursing salaries of employees and other salary recipients in the Kurdistan Region, sparked a wave of widespread criticism, especially since it came at a time when the sit-in of educational cadres in Sulaymaniyah was subjected to suppression with tear gas bombs while they were prevented from entering Erbil Governorate, for the purpose of a sit-in in front of the United Nations headquarters.
Politicians and activists on social media criticized the lawsuit filed by the presidency, while the criticisms varied between electoral bidding and perjury, and between the corruption of the region and the company of the son of the President of the Republic and its funds, in addition to some people mocking the lawsuit.
This came in conjunction with the hundreds of Kurdistan Region employees who are on strike and on hunger strike in Sulaymaniyah Governorate, yesterday, Sunday, heading towards Erbil Governorate, for the purpose of holding a sit-in in front of the United Nations headquarters, in an escalating step to solve the salary crisis radically. This came amidst security measures and difficult weather conditions.
MP Hanan Al-Fatlawi said in a post on the (X) platform, “The President of the Republic of Iraq files a lawsuit in the Federal Court against the Prime Minister on the issue of salaries of the region’s employees!!”
She added, “Your Excellency, the fines of your son’s IQ Company, amounting to 991 billion, are enough to pay the region’s salaries. Pay them so that we can pay the salaries instead of asking us to cut the salaries of the center and south to pay the region’s salaries,” while concluding the post by saying, “Enough electoral outbidding.”
Yesterday, Sunday, the government authorities in Erbil prevented the entry of convoys of teachers protesting the delay in disbursing their salaries for months, into the city, after they decided to move the protests from Sulaymaniyah Governorate to Erbil, while the security forces reinforced their presence at the main checkpoints at the entrances to the city, to ensure that the protesting crowds do not enter.
In addition, MP Nazim Al-Shabli identified four violations of the constitutional oath by President Abdul Latif Jamal Rashid.
Al-Shabli said in a statement received by “Al-Alam Al-Jadeed” that “oil smuggling in the presence of the protector of the constitution and the protection of the interests of one group of people without the other, and the suppression of the freedom of citizens who are only demanding the localization of their salaries, and the latest project in communications could cover the salaries of the region.”
In the same context, researcher and expert in strategic affairs Ali Al-Akeili said in a post on (x), “It is ironic that the President of the Republic files a lawsuit against Prime Minister Mohammed Shia Al-Sudani while the Federal Court confirms the necessity of handing over revenues to the central government,” stressing that “the constitution obliges him to care for the interests of the people and protect the constitution, so where is he from the court’s decisions and the principle of equality among all Iraqis?”
MP Hussein Arab said in a post on the (x) platform, “I do not know who advised the President of the Republic to file a lawsuit against the Prime Minister,” wondering, “Does he know that he is part of the executive authority according to the constitution? Does he know the number of unofficial outlets in his governorate? Did he and his private secretary know when he was caught red-handed?”
He concluded by saying, “You must bear responsibility without evasion.”
The President of the Republic, Abdul Latif Jamal Rashid, filed a lawsuit before the Federal Supreme Court against the Prime Minister of the Federal Council, the Speaker of the House of Representatives, and the Federal Minister of Finance, in addition to their positions.
The lawsuit included 4 demands by Rashid regarding the salaries of the Kurdistan Region employees, the first of which is “issuing an urgent provincial order, obligating the Federal Ministry of Finance to pay the salaries of the Kurdistan Region employees of all categories, whether for the previous or subsequent months, while emphasizing the element of urgency in this case.”
The second: “Ensuring continuity, by obligating the Ministry of Finance to pay salaries without interruption or delay, and not linking them to any administrative or technical requirements such as the trial balance or other control procedures.”
The third: “Localizing salaries according to the instructions of the Central Bank of Iraq, and allowing employees to choose the bank they prefer, in coordination between the Federal Ministry of Finance and its counterpart in the regional government.”
The fourth of these demands is in the Iraqi President’s lawsuit to “amend the budget law,” as he called on the House of Representatives to amend Clause (12) Paragraph (c) of the General Budget Law for the year 2023. And to ensure the implementation of the region’s pledges to finance the general treasury with its oil revenues in a fair and transparent manner.”
Rashid also called for the cancellation of the requirement to allocate $6 for the cost of oil production in the region, considering it “arbitrary” and harmful to the economic interests of the state.
It is noteworthy that the sit-in of the tents of the educational cadres in Sulaymaniyah entered its 14th day, amid a hunger strike, in protest against the ongoing salary crisis and the outstanding problems between the governments of Baghdad and Erbil.
On the other hand, activists on social media mocked the presidency’s claim, talking about the corruption of the regional government.
Yesterday, Sunday, the sit-in of the educational cadres in Sulaymaniyah recorded the injury of more than 150 demonstrators while they were prevented from entering the Erbil Governorate, for the purpose of the sit-in in front of the United Nations headquarters, due to the failure to obtain official approvals to enter the governorate, as Masoud Barzani’s forces used tear gas bombs while the demonstrators were trying to enter.
On Sunday, Erbil Governor Omed Khoshnaw denied that the local government and security authorities had received an official request to demonstrate and hold a sit-in similar to the one in Sulaymaniyah Governorate, stressing that the federal government bears responsibility for delaying the payment of salaries and disbursing financial dues to the Kurdistan Region.
Several Kurdish media outlets documented, on Sunday, the movement of dozens of buses loaded with employees who entered their 13th day of the sit-in, in addition to the hunger strike, as the salaries for December 2024 have not yet been paid, despite Baghdad and Erbil reaching a final agreement regarding the salaries for the year 2025.
The Kurdistan Regional Government released the salaries for January 2025 a few days ago, but it seems that the financing of salaries will only be “electronic”, as salaries were released through the “Hisabi” system, although there are only about 250 thousand people who have cards, out of a million employees, while the Kurdistan Regional Government says that about 800 thousand employees have had their salaries domesticated, i.e. 80% of them.
A delegation from the Council of Representatives, which arrived in the city of Sulaymaniyah last Friday, and which consists of most of the parliamentary blocs, visited the tent of the striking teachers and reviewed their demands.
The parliamentary delegation announced during a press conference followed by “Al-Alam Al-Jadeed” from inside the sit-in tents that “it received today the demands of the sit-inners and that it will take them with them to Baghdad to the Council of Representatives, and intends to form a parliamentary committee to follow up on the issue of the differences between the Kurdistan Region and the federal government and announce to public opinion who is the reason for the delay in paying employees’ salaries, so that citizens do not become victims of political conflicts from now on,” according to what they said.
The parliamentary delegation pledged that it “will soon return to the protesters with solutions regarding the issues of settlement and providing salaries, praising what it described as the struggle and steadfastness of the people of Sulaymaniyah during the past years to demand the rights of employees and provide their salaries.”
This came in conjunction with confirmations from human rights organizations and representatives that many of the protesters are suffering from poor health due to the hunger strike that has been ongoing for days, as some of them decided to refuse to receive health care, in an escalation of their sit-in, after they had been receiving health care throughout their strike.
The demonstrators stressed last Friday that “the political differences and conflicts between the governments of Baghdad and Erbil must be resolved without affecting the lives and livelihoods of citizens, demanding the implementation of the Iraqi constitution in a way that guarantees the rights and privileges of all Iraqis, without discrimination between the citizens of the region and the residents of the rest of the country.”
The protesters also expressed their “dissatisfaction with the continuation of this crisis,” calling for “immediate measures to end the state of popular frustration and restore confidence between citizens and the concerned governments.”
On February 3, the Ministry of Finance in the Kurdistan Regional Government announced that it had reached a final agreement with the federal government to resolve the issue of salaries for the region’s employees.
It is noteworthy that the House of Representatives voted, on February 2, on the draft law amending the first law of the Federal General Budget Law for the fiscal years 2023, 2024, and 2025, which allows the resumption of the export of oil from the Kurdistan Region through the Federal SOMO Company.
On February 1, Federal Finance Minister Taif Sami asked the regional delegation to provide the Ministry of Finance with the bank accounts of each employee, whether salaries were domiciled in federal banks or regional banks. She also asked that the employee be given the freedom and choice to domicile his salary in any bank he wants, and that he not be forced to domicile in an accounting project, according to informed sources.
Political observers believe that the financial crisis between Baghdad and Erbil is not just a matter of budgets, but is also related to the balance of power in Iraq. Any financial agreement carries a political dimension, whether related to the interests of parties or regional and international influences. Despite the positive statements from both sides, concerns remain about implementing the agreements on the ground, especially in light of previous experiences that were not completed. They point out that the attack on the Khor Mor field may be a clear message that any understanding between Baghdad and Erbil will not be easy, and that there are parties that do not benefit and are seeking to obstruct it.
Regional demonstrations: The political class lives in isolation from the suffering of the street
The wave of anger escalated in the Kurdistan Region of Iraq with the continuation of the crisis of delayed payment of salaries, which pushed thousands of employees and teachers into the streets, in protests that did not subside despite the cold weather and snowfall.
In Sulaymaniyah, where the sit-ins are concentrated, a number of protesters decided to go on a hunger strike, stressing that they will not back down until their demands are met.
A political source from Erbil said that the current crisis is not a recent one, but rather the result of political and financial accumulations between Baghdad and Erbil, as these scenes are repeated every few months without radical solutions.
He added that the partial solutions proposed after each crisis do not guarantee the stability of the financial situation of the region's employees, which increases the state of frustration and popular resentment.
While the regional government is trying to reassure employees, security forces in Erbil continue to prevent the protests from spreading to it, as they refused to receive demonstrators coming from Sulaymaniyah. Local sources said that dozens of those who tried to organize gatherings in Erbil were subjected to security harassment, which increased tensions between the two cities.
“We don’t want slogans, we want our salaries,” tweeted a Kurdish activist on the X platform. “We don’t care about the conflict between Erbil and Baghdad, we want our children’s livelihood, which has become hostage to political differences.” In another Facebook post, a citizen from Sulaymaniyah wrote: “If we were demonstrators in any other country, we would be a global trend, but we are Kurds, so no one cares.”
Economic sources reported that the financial crisis in the region is not only a result of the delay in transferring funds from Baghdad, but also due to the lack of transparency regarding local revenues, especially from border crossings and oil revenues, the numbers of which remain vague despite the demands of the federal parliament to disclose them.
A social researcher believes that the current crisis goes beyond the economic dimension, as it represents a crisis of confidence between the Kurdish citizen and his government, as many feel that the political class lives in isolation from the suffering of the street. He added that the continued security suppression of the demonstrations may lead to a greater escalation, and perhaps to the emergence of new protest movements that are not subject to traditional political leadership.
“Every month we live with the same anxiety: When will we get our salaries? Will the high prices be enough? We don’t even have the luxury of planning for the future,” said Farid Othman, a government employee from Sulaymaniyah. “The regional government justifies, Baghdad evades, and we pay the price. How long will the citizen remain the victim?” said Shireen Abdullah, a resident.
Analysis of the situation indicates that the crisis is likely to worsen, especially if a clear mechanism is not found to ensure salary stability away from political conflicts.
Iraq Ratings Affirmed At 'B-/B'; Outlook Stable
Inflation in Iraq is low by regional standards, supported by the Iraqi dinar's peg to the U.S. dollar. Average annual inflation receded to 2.8% in the first 10 months of 2024, from 4.4% on average in 2023, reflecting lower international food prices and the normalization of trade finance. Despite fiscal expansion, we expect inflation will continue subsiding in 2025 as monetary policy remains tight and global inflationary pressures ease. Separately, we note that deposit dollarization has decreased sharply over the past year, to about 22% in 2023 from 31% in 2022. This partially owes to the CBI's implementation of various de-dollarization policies, including limiting all internal commercial and trade transactions to dinars as well as settling some trade in foreign currencies other than the dollar (such as the euro, UAE dirham, and Chinese renminbi).
Outside maintaining the pegged exchange regime, the CBI has limited monetary policy tools. This is because the Iraqi banking sector remains burdened by high nonperforming loans (about 14.7% of gross loans at end-2023) and does not fully fulfill the traditional lending functions of stronger banking systems. Therefore conventional monetary policy tools, such as reserve requirements and the provision of standing facilities, remain of limited effectiveness. We view the monetary policy transmission mechanism in Iraq as relatively weak, with the CBI raising the policy rate to 7.5% only in June 2023 after holding it at 4.0% since 2016.
full below
Iraq Ratings Affirmed At 'B-/B'; Outlook Stable
Overview
- Iraq passed an expansionary three-year budget program in 2023, which will likely lead to rising general government debt.
- The country has a history of under-spending on budgetary targets but heightened regional tensions alongside parliamentary elections in late 2025 will pressure fiscal finances.
- Despite OPEC+ production cuts continuing into at least the first half of 2025, we expect Iraq's sizable oil export volumes will support external surpluses and foreign exchange reserves remaining in excess of $100 billion over 2025-2028.
- We therefore affirmed our 'B-/B' ratings on Iraq. The outlook is stable.
Rating Action
On Feb. 7, 2025, S&P Global Ratings affirmed its 'B-' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Iraq. The outlook is stable.
The transfer and convertibility assessment remains 'B-'.
Outlook
The stable outlook reflects our view that Iraq's foreign exchange (FX) reserves will continue to comfortably exceed debt-servicing obligations over the next 12 months. This largely offsets significant risks from the country's political uncertainty, weak institutional framework, and lack of economic diversification.
Downside scenario
Iraq's political and security backdrop remains unpredictable. We could consider a downgrade if we perceived that weaknesses in the sovereign's institutional framework had reduced the government's ability or willingness to service debt. We could also lower our ratings if pressure on Iraq's fiscal or external positions increased--for instance, due to a sharp and prolonged decline in oil prices or production.
Upside scenario
We could upgrade Iraq if higher-than-expected GDP growth--for example, from reinvigorated reconstruction efforts--boosted the country's real growth and GDP per capita, and supported fiscal and external metrics. Institutional reforms and a more stable security environment could also improve our opinion of the government's debt-servicing capacity.
Rationale
Iraq's ongoing sizable fiscal expansion plan for 2023-2025 will likely be contained on the expenditure side by a lack of project execution. We forecast the budget deficit will widen to 6.5% of GDP in 2025 and average 7.2% over 2026-2028. This assumes sizable allocations toward public sector salaries and social welfare, as well as transfers to the semi-autonomous Kurdistan region (collectively these categories amount to 60% of total expenditure), ahead of the 2025 parliamentary elections. Our fiscal projections assume Brent oil prices of $75 per barrel (/bbl) over 2025-2028 (see "S&P Global Ratings Revises Its Oil Price Assumptions; North American And Dutch Title Transfer Natural Gas Price Assumptions Unchanged," published Oct. 1, 2024, on RatingsDirect). Nevertheless, external metrics will remain strong, with the country running a net external asset position throughout 2025-2028 and usable foreign exchange reserves standing at over 12 months of current account payments.
Spillovers from regional conflicts in Gaza, Lebanon, and Syria have elevated political tensions. Sporadic attacks by Iraqi Shiite militia groups on U.S. military bases in Iraq since the start of the Israel-Hamas conflict have heightened security-related tensions and affected U.S.-Iraqi bilateral relations. Despite a recent ceasefire in Gaza, there remains heightened uncertainty over the presence of U.S. troops in Iraq, the spillover effects of the collapse of the Assad regime in Syria, and tensions between the U.S. and Iran. At the domestic level, friction may resurface between the incumbent Coordination Framework and opposition Sadrist Movement in the run-up to the October 2025 parliamentary elections, similar to what was witnessed prior to the previous election in 2021.
Our ratings on Iraq are constrained by the country's weak institutions and elevated domestic and regional security risks compared with peers. Despite a significant hydrocarbon endowment, high levels of perceived corruption and domestic political infighting--including divisions between Sunni, Shiite, and Kurdish groups--weigh on the rating. The government's fiscal position also remains volatile due to oil revenue dependence and high spending pressure. Conversely, our ratings are supported by Iraq's still-moderate public and external debt levels, large inflows of hard currency revenue from oil exports, and a large stock of FX reserves.
Institutional and economic profile: Political volatility and institutional limitations weigh on policy predictability
- Iraq faces political headwinds from the Israel-Hamas conflict and instability in Lebanon and Syria.
- The extension of OPEC+ production cuts into 2025 and closure of the Northern Iraq-Ceyhan pipeline continue to limit oil export volumes.
- Nevertheless, a gradual ramp-up in oil production and stronger non-oil activity will support economic growth, which we forecast at 2.2% over 2025-2028.
The security situation in Iraq has deteriorated since the onset of the latest Israel-Hamas war. Pro-Iranian Iraqi Shiite militia have carried out a series of missile strikes against U.S. military personnel in Jordan, Iraq, and Syria, prompting retaliatory action by U.S. troops on Iraqi soil. This has coincided with Iraqi Prime Minister Mohammed Al-Sudani calling for the withdrawal of U.S. troops within Iraq. Although relations with U.S. remain strained, we do not expect an imminent withdrawal of U.S. troops from Iraq, particularly considering the recent regime change in neighboring Syria.
Iraq's 2025 parliamentary elections could present domestic political challenges. In December 2023, the country held its first provincial council elections in a decade (excluding the provinces of the Kurdian region), with pro-Iranian Shiite parties winning the majority of council seats. The result, assisted by the boycott of populist opposition Shiite leader Muqtada Al-Sadr, further strengthened the incumbent Coordination Framework's influence over Iraq's provincial councils ahead of the 2025 parliamentary elections (scheduled for October 2025). However, calls for contentious electoral and legislative reforms--including addressing unresolved divisions between Sunni, Shiite, and Kurdish factions--could destabilize the government and spur domestic unrest, with a new government often taking months to be formed.
Iraq has the world's fourth-largest proven crude oil reserves and is the third-largest oil exporter in OPEC+ after Saudi Arabia and Russia. Oil contributes more than 40% of GDP, 90% of government revenue, and 95% of goods export receipts. However, successive governments have deployed the country's resource endowment for significant public sector spending, perpetuating high spending pressure. Plans to expand oil production capacity to over 6.0 million barrels per day (bpd) have historically suffered from a lack of investment partly due to high geopolitical and internal security risks.
Iraq's oil production fluctuates in line with its OPEC+ quota. In 2024, the country's oil production declined to 4.17 million bpd, from 4.29 million bpd in 2023, due to the extension of OPEC+ production cuts and closure of the northern pipeline. We expect oil output to remain largely flat at 4.14 million bpd in 2025, in line with Iraq's OPEC+ quota, but that production will recover to 4.40 million bpd by 2027. This follows the signing of large oil investment projects with international oil companies, such as TotalEnergies SE (A+/Stable/A-1) and BP PLC (A-/Stable/A-2).
The Iraq-Turkiye crude pipeline has yet to resume full operations. In March 2023, the International Chamber of Commerce ruled, in favor of the government of Iraq, that Turkiye had violated a 1973 transit agreement by allowing Iraq's Kurdistan region to independently market crude oil since 2014. After the ruling, Turkiye ostensibly halted Iraqi oil exports via the Turkish port of Ceyhan, reducing official pipeline-related sales volumes to about 22,000 bpd from about 450,000 bpd pre-dispute (about 10% of Iraq's production). This also followed an Iraqi Supreme Court ruling in 2022 decreeing that oil production in the Kurdistan region was the property of the federal government and could not be drilled and sold by the Kurdistan Regional Government independently. Commentators note that cost disputes between the federal government and international oil companies are delaying the pipeline's reopening.
Despite its large hydrocarbon endowment and population, Iraq has relatively low GDP per capita, at an estimated $5,600 in 2025. However, this estimate does not fully incorporate Iraq's sizable informal economy, which the U.N. estimates as equivalent to 40%-50% of GDP. We forecast real growth will remain subdued at 1.3% in 2025, compared with an estimated 0.1% in 2024, due to a slight decline in oil production. Our dollar per capita GDP projections remain sensitive to the oil price, which we expect will average $75/bbl over 2025-2028.
Iraq continues to depend heavily on Iran for its electricity and gas needs. This is despite U.S. sanctions imposed on Iran that result in recurrent payment delays and consequent interruptions to gas imports from Iran. We understand that Iraq agreed to settle $2.76 billion in gas and electricity debt to Iran in 2023 after receiving a sanctions waiver from the U.S. (Iraq has received over 20 waivers since 2018), reducing gas arrears to zero. It is not certain if the new U.S. administration will continue to grant sanction waivers. Efforts to reach energy self-sufficiency and substitute Iranian gas imports with those from Qatar and Turkmenistan remain ongoing.
In our view, Iraq's political and economic development is hampered by widespread corruption and the threat of domestic and external tensions. Iraq ranks near the bottom of the Corruption Perceptions Index and the World Bank's governance indicators. The reported misappropriation of $2.5 billion from tax authorities over 2021-2022, allegedly by officials in the previous administration, highlights the weak oversight. Strengthening governance, accountability, and transparency could help unlock Iraq's economic potential, in our view.
Flexibility and performance profile: Oil exports will keep the current account in surplus, while large domestic spending plans will create sizable fiscal deficits
- We expect only partial implementation of the 2023-2025 multiyear expansionary budget due to capacity constraints tied to scaling-up non-oil capital expenditure.
- A sizable current account surplus over the forecast horizon will add to already-robust FX reserves of about $100 billion, supporting Iraq's external debt-servicing capabilities.
- We expect the exchange rate will remain fixed at Iraqi dinar (IQD) 1,300 per U.S. dollar over the forecast period through 2027.
The Iraqi government's fiscal position is largely driven by oil prices. Non-oil revenue is unable to provide significant additional support to the government's fiscal position since weak tax and customs collection administration limit the government's ability to raise revenue outside the oil sector. On the expenditure side, significant political and social demands have continued to burden the public sector wage bill, which represents the state's largest spending item at about 60%-70% of total expenditure. Wages have historically crowded out public capital investment, despite Iraq's pressing reconstruction needs.
Iraq's expansionary budget exacerbates the country's structural fiscal imbalances, in our view. In June 2023, Iraq's parliament passed a record multiyear budget covering 2023, 2024, and 2025 (annual nominal spending remains the same unless parliament approves changes). The government assumed an oil price of $70/bbl and oil exports of 3.5 mbpd, the 2024 budget upsized spending to IQD212 trillion ($164 billion), from IQD199 trillion ($152 billion) under the original multiyear budget, reflecting an 8% increase in public sector salaries, social welfare, grants, and subsidies. Positively, the multiyear budget also aims to revive stalled non-oil investment projects to address the economy's large infrastructure needs (planned at 15% of budget spending). It remains unclear when the 2025 budget will be passed.
We forecast the government will post lower-than-budgeted fiscal deficits of 6.5% in 2025 and 7.2% over 2026-2028. This compares with the government's budgeted deficit of IQD64 trillion ($49 billion; 16% of GDP) in 2024, the largest in the country's history. The discrepancy stems from our higher oil revenue projections and Iraq's historical under-execution of non-oil investment spending due to institutional shortfalls and capacity constraints. Given limited flexibility to raise non-oil revenue, we assume the government will adjust capital expenditure should oil prices fall below budget forecasts.
We assume the government will continue relying on indirect monetary financing, albeit largely sterilized, to plug fiscal deficits. About 60% of the Iraqi government's domestic debt stock represents the Central Bank of Iraq's (CBI's) indirect purchases of government securities, whereby the Ministry of Finance issues treasury bills to primarily state-owned domestic banks, which in turn refinance them at the discount window of the CBI. Other sources of deficit financing include issuance of domestic treasury bills and treasury bonds held by other banks in the system, as well as draw-downs of U.S.-dollar assets accumulated via past fiscal surpluses.
We forecast general government debt net of liquid assets will rise to 55% of GDP in 2028 from 38% in 2025. The government's debt stock is about 50% domestic and 50% external. External debt is mostly concessional from multilateral and bilateral creditors, including official debt from the Saddam-Hussein era restructured by Paris and non-Paris Club members over 2003-2004. We also include in the external debt stock approximately $40 billion (16% of GDP) of currently unenforced bilateral obligations dating back to the 1980s that were not restructured in 2003, keeping the cost of debt low at 3%-4% of general government revenue. We understand there are ongoing discussions with bilateral creditors (largely Gulf Cooperation Council countries led by Saudi Arabia) to reach a settlement of such claims under the terms of the Paris Club Agreement, including potential write-downs.
We expect the government will use oil sale receipts or draw-down on FX reserves to meet external debt payments over 2025-2028. Regarding external commercial debt, Iraq repaid a $2.7 billion U.S. government loan in July 2024 and has a $2.6 billion amortizing loan of repackaged pre-2003 debt outstanding. The semiannual coupon payment of about $78 million began in July 2020 and will end in January 2028 (the government does not plan to prepay the loan). Iraq has other commercial bank loans outstanding, primarily related to oil and gas projects.
Iraq's external position remains one of the sovereign's relative rating strengths, despite being partially obscured by poor data quality and highly dependent on oil. We forecast the current account surplus at 2.3% of GDP in 2025, down from an estimated 3.5% in 2024, owing to a relative decline in oil production and prices and increase in capital imports. We expect the current account will remain in surplus to 2028, translating into strong growth in Iraq's usable reserves position to about $109 billion by 2028. As FX reserves build and the government continues paying down foreign debt, we forecast the economy's liquid external assets will exceed external debt by about 80% of current account payments over 2025-2028.
The CBI's new compliance measures are improving cross-border transparency. Since 2022, the U.S. has tightened the CBI's access to its own dollar reserves held at the U.S. Federal Reserve (Fed) as part of a crackdown on siphoning dollars to countries sanctioned by the U.S., especially Iran and Syria (the CBI makes requests to the Fed for its dollars to sell to Iraqi commercial banks and exchange houses via its daily FX auction system). The CBI introduced stricter compliance standards for access to its dollar auctions, including requiring banks to adopt digital platforms that mandate beneficiary disclosures and cracking down on auction houses pricing at unofficial rates. It also introduced a new trade finance regime that allows cross-border payments to be cleared via commercial banks with correspondent banking relationships instead of exclusively through CBI-Fed channels. Owing to more stringent FX provisioning measures, the U.S. dollar remains elevated in the parallel market at a premium of about 14% as of January 2025.
Inflation in Iraq is low by regional standards, supported by the Iraqi dinar's peg to the U.S. dollar. Average annual inflation receded to 2.8% in the first 10 months of 2024, from 4.4% on average in 2023, reflecting lower international food prices and the normalization of trade finance. Despite fiscal expansion, we expect inflation will continue subsiding in 2025 as monetary policy remains tight and global inflationary pressures ease. Separately, we note that deposit dollarization has decreased sharply over the past year, to about 22% in 2023 from 31% in 2022. This partially owes to the CBI's implementation of various de-dollarization policies, including limiting all internal commercial and trade transactions to dinars as well as settling some trade in foreign currencies other than the dollar (such as the euro, UAE dirham, and Chinese renminbi).
Outside maintaining the pegged exchange regime, the CBI has limited monetary policy tools. This is because the Iraqi banking sector remains burdened by high nonperforming loans (about 14.7% of gross loans at end-2023) and does not fully fulfill the traditional lending functions of stronger banking systems. Therefore conventional monetary policy tools, such as reserve requirements and the provision of standing facilities, remain of limited effectiveness. We view the monetary policy transmission mechanism in Iraq as relatively weak, with the CBI raising the policy rate to 7.5% only in June 2023 after holding it at 4.0% since 2016.
The financial stability of domestic banks is uncertain, and we view financial sector risk as a moderate contingent liability for the government. A restructuring of the banking sector to improve the stability and functioning of the financial system will require recapitalization, which, in our view, could entail significant costs for the government. Financial accounts audited to international standards are not available for many banks in Iraq, including state-owned Rasheed Bank and Rafidain Bank, the two largest banks (holding around 75% of financial system assets). These banks remain severely undercapitalized, according to the IMF. Private sector credit represents only about 10% of GDP. This, combined with its weak institutional framework, increases the risks to which the banking sector is exposed. Notwithstanding their financial underperformance, we expect these two banks will continue to be the main conduit for the government to fund itself via the CBI.
Key Statistics there is more to this report you can see it here
Parliamentary Finance reveals to Al-Jabal information it received from the government: Budget tables will arrive
The Parliamentary Finance Committee confirmed, today, Monday, that the 2025 budget schedules will soon reach the Iraqi Council of Representatives, according to information it received from the government.
Committee member Jamal Kojer told Al-Jabal, "According to the information we received from the Iraqi government, it intends to send the 2025 budget tables within the next few days, and we are waiting for them to arrive to review and study them before voting on them."
Koger explained that "the delay in approving the 2025 budget schedules will not affect the issue of disbursing salaries to employees and retirees, as salaries are secured for the months of this year, and work can be done to disburse them without waiting for the budget to be approved, so there is no fear about that."
The Ministerial Council discusses maximizing revenues and confronting economic and financial crises
The Ministerial Council for Economy discussed, on Monday, maximizing revenues and confronting economic and financial crises, and decided to complete the work of the committee specializing in studying car imports and adding representatives from the General Traffic Directorate, the Ministry of Commerce, the Ministry of Construction and Housing, and the Ministry of Environment.
The Council stated in a statement, which was reviewed by "Al-Eqtisad News", that "Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein chaired the fourth session of the Ministerial Council for the Economy, which was held in the Council building, in the presence of the Deputy Prime Minister and Minister of Planning, the Ministers of Trade, Agriculture and Industry, the Secretary-General of the Council of Ministers, the Chairman of the Securities Commission, the Undersecretary of the Ministry of Oil for Extraction Affairs, the Deputy Chairman of the National Investment Commission, and the Prime Minister's Advisors for Economic and Legal Affairs."
The statement added that "the Council discussed the items on its agenda and took the necessary decisions regarding them. The Council also discussed some items of the draft submitted by some of its members on maximizing revenues and confronting economic and financial crises that may occur due to political and economic changes in the region and the world, especially with regard to the estimations of state real estate for the purposes of sale or rent, and following up on the collection of revenues for various state departments, in addition to emphasizing the Council of Ministers' decision to use electronic collection."
The statement continued, "The Council also decided to authorize Salah al-Din Governorate to implement the trust and direct contracting of projects that were previously studied, in a manner that does not conflict with the budget law and the applicable instructions." The Council also decided to "complete the work of the committee specializing in studying the import of cars and add representatives from the General Traffic Directorate, the Ministry of Trade, the Ministry of Construction and Housing, and the Ministry of Environment."
The statement explained that "the Council decided to commit all parties to the approved agricultural plan, as well as mobilize all ministries to give their available warehouses to the General Company for Grain Trade, for the purpose of storing wheat received from farmers for the next season, with the Coordination Body of the Governorates contacted regarding the allocation of suitable lands in those governorates, in order to establish warehouses for the company (silos) to store wheat marketed by farmers."
The statement concluded, "The Council decided to include chicken, cuts, and processed foods in the agricultural calendar, provided that the Ministry of Agriculture provides accurate data on the local cut chicken industry and processed foods and the extent of their coverage, due to the need of the local market, to the Ministerial Council for the Economy."
Government advisor: Financial concerns unfounded
Saleh told {Al-Furat News} that "Iraqi diplomacy is one of the most successful in protecting the country's supreme interests, according to the government program's adoptions and national constants, whether with the United States or others."
He added, "There is a high degree of consistency in managing the country's financial affairs in a stable manner within the framework of the general economic policy, which is a positive thing that is always indicated by the ability and flexibility to confront economic challenges with high rationality during the past years."
Saleh pointed out that "the country enjoys good financial flows from oil revenues and others, supported by efficient foreign reserves and promising economic activity in the real sector and partnership with the private sector witnessed by the country, especially in the sectors of renewable energy construction, fossil oil, electricity, gas, infrastructure, reconstruction and housing in an unprecedented manner."
Despite the statements of government officials reassuring the financial situation in Iraq, there are some concerns that are raised from time to time due to fluctuations in oil prices.
The Iraqi economy depends heavily on oil exports, which makes it vulnerable to fluctuations in global oil prices. Any drop in oil prices could significantly impact government revenues and lead to a budget deficit.
While there are some financial concerns, the economic situation in Iraq appears stable at the moment, thanks to good oil revenues and foreign reserves at the Central Bank of Iraq.
Baghdad International Fair: An Opportunity for Commercial Integration with the World
The curtain fell on the 48th session of the Baghdad International Fair amidst a wide welcome from participants and visitors, as the exhibition witnessed a great turnout from local and international companies that presented their latest technologies and products with the aim of finding a foothold in the Iraqi market.
Most participants indicated their satisfaction with the success of their objectives at the exhibition, as they were able to conclude bilateral agreements for cooperation with local, regional and international companies.
In the same context, many Iraqi families who visited the exhibition expressed their desire to extend the exhibition period, stressing that the extension will give them the opportunity to view all the pavilions and displayed goods, which will help them to purchase the products they need from the various participating companies.
Communicate with international companies
Speaking about the importance of the exhibition in enhancing international cooperation, Abdul Salam Karim Al Shahmani, Brand Manager of the Iraqi Ports Company at the Ministry of Transport, said: “The exhibition days were a valuable opportunity to communicate with international companies from different countries.”
He added that his company was able to reach an agreement with South Korean and Pakistani companies for joint cooperation, as bilateral meetings will be organized after the exhibition to activate these agreements.
He explained that many Arab and international companies have expressed their serious desire to cooperate with Iraq and enter its market, especially in light of the ongoing developments and major projects being implemented in Iraq.
Solar energy is taking over
With the attention of visitors
On the other hand, Mohammed Shaker, head of the Baghdad Center for Energy and Sustainability, pointed out that the current session of the exhibition was distinguished by the participation of a large number of citizens who showed great interest in solar energy.
He said: "We have witnessed a remarkable turnout from citizens to learn more about solar energy systems, their efficiency and types." He stressed that many visitors expressed their desire to purchase these systems to avoid the problems of power outages, although some of them expressed hesitation due to the lack of sufficient culture in Iraq about how to benefit from solar energy. He stressed that the exhibition is an opportunity to raise awareness of modern technologies witnessed by various countries around the world.
Software company interaction
On the other hand, Howayda Ahmed from Iraq Programming Company said: “The exhibition was a valuable opportunity for us, as we interacted with a wide audience throughout the days of the exhibition. This interaction helped us launch 7 new and advanced programs with modern technologies to organize public and private life.”
She added: "Through the exhibition, we were able to understand the needs of the Iraqi community in the technical aspect, and we interacted with visitors to create technical solutions that suit their requirements." She pointed out that the exhibition is an important platform for communicating with the world and introducing new technologies that serve the Iraqi market.
Talents and development
The exhibition did not neglect the children’s category, as Al-Huda Cultural Foundation, which specializes in nurturing talents, organized events to discover the talents of children and youth. Zainab Nasser Hussein, the director of the foundation’s pavilion, stressed the importance of supporting and developing talents by providing opportunities for children to hone their skills. She said: “We strive to provide all the tools and programs that help children grow and develop in their fields, and we plan to involve them in specialized festivals such as the Iraqi International Children’s Festival.”
Increasing number of visitors
Citizen Ilham Saadeddin praised the organization of the exhibition, which she described as meeting the needs of all segments of society. She confirmed that she visited the exhibition repeatedly over the course of 4 days to learn about the products displayed by the companies, especially the pavilions for direct sales. She said: “The exhibition was a real outlet for the Iraqi family, as the number of visitors increased day after day, whether specialists or families.”
Understandings with international companies
Naseer Ragheb from the Japanese company "Termo King Tao" said: "The exhibition witnessed many initial understandings with several companies to cooperate and expand our activity in the Iraqi market." He explained that the exhibition was an ideal platform for international companies to enter the Iraqi market and cooperate in various sectors, pointing to the importance of raising the level of services provided to visitors in future exhibitions to ensure greater success.
Iraqi products are comparable to imported ones
Speaking about the importance of the exhibition in promoting Iraqi products, Mohammed Hussein from the Karbala Chamber of Industry pointed out that the participating companies from Karbala were admired by visitors, especially distinguished products such as dates and their derivatives, which are in high demand in international markets. He said: “Our Iraqi products that are exported to the Gulf countries enjoy a good reputation, and with visitors’ interest in these products, we have a greater incentive to expand production.”
Expand future participation
For his part, Aqeel Al-Hamad, an economic expert, stressed the importance of expanding participation in future exhibitions to invite the best international companies. He said: “The 48th session of the exhibition showed good results, but it is necessary to expand the invitation of major international companies to expand the benefit to the Iraqi economy.” He added: “The exhibition is an important economic forum and contributes to changing the economic landscape by informing local companies of modern technologies and working to supply them to the Iraqi market in various sectors.”
Opportunity to open new markets
Al-Hamad stressed that the Iraqi labor market is witnessing remarkable growth and is considered a promising opportunity for international companies. He said: “Many companies present at the exhibition expressed their great desire to work in the Iraqi market, which represents a promising and growing market.” He pointed out that cooperation between the government and the private sector is necessary to provide the appropriate environment for foreign investment in Iraq, especially in the sectors of production, industry, agriculture, tourism and services.
Repeat participation in the future
Finally, Khaled Sultan, representative of a Kuwaiti perfume company, welcomed the extension of the exhibition period for the pavilions that witnessed a great turnout from visitors. He added: “The Iraqi audience’s interaction with our products was wonderful, which encourages us to participate again in the upcoming sessions and to a greater extent.” He stressed that the audience’s interaction with the products is a positive indicator and enhances their desire to expand their participation in the future.
Direct selling extension
The Ministry of Commerce has extended direct sales at the Baghdad International Fair until Sunday evening, in line with citizens’ desire and to give an opportunity For shopping.
Sunni, Kurdish political boycott postpones State Administration Coalition meeting
The Coordination Framework revealed, today, Monday (February 10, 2025), the reason for not holding the meeting of the State Administration Coalition, which was called for by Prime Minister Muhammad Shia al-Sudani last Saturday.
Framework member Ali Hussein told Baghdad Today, "The meeting of the State Administration Coalition has not been held yet, despite the call to hold it last Saturday, due to the boycott of Sunni political parties and some Kurdish parties, and for this reason the meeting was postponed until further notice."
Hussein said, "Most likely, the state administration meeting will be held after the Federal Court settles the appeals filed before it tomorrow, Tuesday, and after that, there will be a meeting to calm the political situation and support the continuation of governmental and political stability."
Prime Minister Mohammed Shia al-Sudani called on Wednesday (February 5, 2025) for members of the State Administration Coalition to hold a meeting at the government palace next Saturday.
The Prime Minister's Media Office stated in a statement received by "Baghdad Today" that "Prime Minister, Mohammed Shia al-Sudani, called on members of the State Administration Coalition to hold a meeting at the government palace on Saturday, February 8, 2025."
He pointed out that "the meeting was held to discuss the general situation in the country and to examine a number of issues at the national level."
British Ambassador to Nina: Baghdad and London will implement major projects and our companies are ready to invest in Iraq
The British Ambassador to Iraq, Stephen Hitchcock, confirmed that British companies are very willing to invest in the Iraqi market.
Hitchcock said in a statement to the National Iraqi News Agency ( NINA ) that "diversifying the Iraqi economy and sources of national income has become necessary to face the challenges of the decline in global oil and gas prices, and to enhance the revenue cycle that Iraq relies on within the year 2040."
“During Prime Minister Mohammed Shia al-Sudani’s recent visit to London, agreements were signed for major projects worth £12 billion, which do not include BP investments,” he added. “This is a major advance in the readiness and willingness of British companies to work in Iraq, and the Gulf states are also well prepared to invest in Iraq,” he said, noting that “one of the agreements signed by the governments of Iraq and Britain relates to a British energy technology company linking the Iraqi national grid with the Saudi electricity grid.”
He explained that “BP, a private company not affiliated with the government, has decided to invest again and expand its operations in Iraq, and this is evidence that British companies in general are more willing to invest in the Iraqi market, which reflects investors’ confidence in the country’s future.”
No comments:
Post a Comment