Iraq’s market turns away from “old US Dollar”
link this is about old dollar notes ... or is it?
Deeply entrenched since the 2003 US invasion, the dollar has become a cornerstone of Iraq’s economy, fueling oil exports, trade, and daily transactions, effectively operating as a parallel currency. However, older banknotes, especially pre-2003 issues, face growing rejection from traders and exchange offices.
The video for this blogpost is below here:
Dollar in Iraqi Economy
The US dollar holds a significant position in Iraq's economy, functioning almost as a secondary currency. This prominence is rooted in the economic restructuring that followed the 2003 US invasion, during which the United States assisted in establishing the Central Bank of Iraq. Consequently, the dollar became deeply integrated into Iraq's financial system, especially given the country's substantial informal economy that relies heavily on cash transactions.
Iraq's oil industry, accounting for nearly 99% of the country’s exports, operates primarily in US dollars. This reliance reinforces the dollar’s dominance while closely linking Iraq’s economic stability to fluctuations in the US currency.
In Iraq, the old-design $100 US banknote, particularly those printed in 2003 or earlier, is commonly referred to as “Al-Ammani.” The term dates back to the 1990s when this denomination was widely circulated in Amman, Jordan. Due to strong trade ties between Iraq and Jordan at the time, the nickname made its way into Iraq.
Turns Away from Old Dollar Bills
Over time, new versions of the $100 bill with enhanced security features were introduced, making older editions less common in circulation.
Ahmed Sadiq, owner of Al-Aws exchange office, told Shafaq News that “some currency exchange offices refuse to buy old-design US dollar banknotes from customers,” noting that others accept them but at a rate 2,000 to 3,000 dinars lower than the market price.
He added that some exchange offices stamp certain dollar banknotes with a special office seal to avoid disputes, “because some customers have returned dollar bills to exchange offices, claiming they were counterfeit and alleging they had purchased them from those offices.”
“Marking foreign currency with a seal could create difficulties for buyers when trying to exchange them abroad,” he acknowledged.
For his part, Jowad Malik, owner of Al-Fas exchange office, told Shafaq News that “the reluctance to deal with old-design US dollars stems from counterfeiting cases in Turkiye and Jordan and rumors of such banknotes entering Iraq.” He noted that “many exchange office owners no longer accept them, considering them a thing of the past, or they buy them at a discount of up to 20,000 dinars or more—mainly those who can exchange them at the central bank.”
He also pointed out that many exchange offices refuse to handle $1 bills sometimes even $5 bills, despite neighboring countries accepting, assuming that this is largely influenced by major traders who dominate dollar transactions.
In addition, Iraqi trader Haider Al-Hassani told Shafaq News that he completely avoids dealing with old US dollar banknotes “to prevent counterfeiting risks,” as “older notes lack clear security features.”
Al-Hassani added that he also refrains from trading even in new US dollar bills, stating that “economic security regulations prohibit their exchange at market rates.”
Official Stance and Banking Regulations
Director General of Accounting at the Central Bank, Ihsan Shammran, stated to Shafaq News that “all US dollar banknotes issued by the Federal Reserve remain in circulation, and there are no directives from the bank suggesting otherwise, provided the notes are authentic and not counterfeit.”
He added that “the Central Bank of Iraq (CBI) and commercial banks continue to accept all denominations and past series of US dollar banknotes as long as they are genuine.”
Regarding the legitimacy of refusing the banknotes, the financial expert and former CBI Director General, Mahmoud Dagher, explained to Shafaq News that “no matter what happens, neither the public, traders, nor exchange office owners can be forced to accept old-design US dollars,” calling the practice a matter of personal discretion.
Erbil Trade Discusses Banking Sector Participation and Kurdistan Factories Obtaining Federal Loans
The Erbil Chamber of Commerce and Industry, the capital of the Kurdistan Region, held a workshop on Thursday to activate the participation of the banking sector in development and economic growth, as well as discussing the mechanism for the region's factories to benefit from loans from the Central Bank of Iraq.
Erbil Chamber of Commerce and Industry stated in a statement received by Shafaq News Agency, "A workshop was held to activate the banking sector, in which Kamran Salah Bajkar, Vice President of the Chamber, stressed the role of the banking sector in developing the economy, and he also spoke about diversifying sources of income, especially focusing on the sectors of agriculture, tourism and industry."
“Omed Khoshnaw, the Governor of Erbil, who attended the workshop, also spoke about his hope that the topics and discussions would serve the economic and banking sector in the Kurdistan Region. The Governor highlighted the steps taken by the Regional Government to care for the banking sector, noting that despite many problems and obstacles, the Regional Government was able to take good steps in this area, and that merging the public and private sectors and diversifying income were among the basics of its work,” she added.
The workshop also discussed, according to the statement, "many issues and topics regarding the guidelines and plans of the Iraqi banking sector, the plans and directives of the Central Bank of Iraq to activate the banking sector's activity, the role of the banking sector in sustainable development, the challenges of the banking sector and its proposals, the role of the financial market and financing major projects and renewable energy projects, through the presentations and lectures to the attendees."
It also included "discussing the issue of Kurdistan Region factories benefiting from loans from the Central Bank of Iraq and the Iraqi government, as factory owners expressed their hope to benefit from all the privileges similar to other Iraqi cities. The Central Bank's program to support and finance projects that use renewable energy to obtain electricity was also discussed."
Iraq, Czech strengthen ties with key agreements
On Thursday, Iraqi Prime Minister Mohammed Shia al-Sudani met with Czech Prime Minister Petr Fiala in Prague.
Al-Sudani’s media office stated that both sides signed an agreement and five memorandums of understanding across various sectors.
“The ceremony included the signing of an air transport agreement between the Iraqi and Czech civil aviation authorities, as well as a memorandum of understanding between the Iraqi Ministry of Oil and the Czech Ministry of Industry and Trade.”
The media office added that “a draft memorandum of understanding was signed between the Ministries of Interior of Iraq and the Czech Republic, along with a cooperation memorandum between the Iraqi and Czech Federations of Industries, another between the Iraqi and Czech Chambers of Commerce, and a letter of intent with the Iraqi Ministry of Environment.”
Widespread criticism in the circles.. The Central Bank doubles the salary withdrawal commission
Social media and banking circles were abuzz with a new circular issued by the Central Bank of Iraq, raising the prices of issuing electronic cards and fees for electronic payment and withdrawal from cards, including salary withdrawals, as the ceiling will be 4,000 dinars instead of 2,000 dinars, while the amounts that will be deducted by the owner of the salary outlet will be added to it.
A document issued by the Central Bank and addressed to all banks and outlets stated that the price of issuing and replacing a salary card has been raised to 15,000 dinars instead of 10,000 dinars, and issuing a replacement card for a damaged or lost card is 25,000 dinars.
The salary increase commission for the Master has also been raised to 2,000 dinars instead of 1,000 dinars, and the cash withdrawal fees from POS devices have become 2,000 dinars per million instead of 1,000.
Economic expert Safaa Al-Shammari said in a blog post that the Central Bank’s decision will hinder electronic payment. Instead of the Central Bank being a driving force towards the digital economy, this decision came to be a new obstacle to the spread of electronic payment, as imposing fees on electronic banking operations encourages citizens and merchants to hold on to cash.
He added that "the decision seems designed to protect the profits of private banks rather than serve the economy and consumers," noting that it was supposed to oblige banks to gradually reduce fees and not to regulate their exploitation.
He explained that "at a time when countries are racing to develop electronic payment services and provide convenient alternatives, this decision comes to impose fatal restrictions on the sector. Banks are now not forced to develop new services or improve their systems, because the Central Bank has granted them comfortable fee ceilings that guarantee them profit without the need for competition and innovation.
He stressed that "the more expensive electronic payment is, the greater the incentives to use cash outside the banking system, which opens the door wide to tax evasion and money circulation outside government supervision, considering that "if this decision is not reviewed immediately, Iraq will fall behind for decades in catching up with financial technology, and cash liquidity will remain king, while the rest of the world advances in the digital economy."
FEB 13 2025
Protecting the financial system is a priority for the Central Bank
Samir Al-Nusairi
Some media outlets, social media networks and non-specialist analysts have begun to return to their analyses and statements to frighten citizens about US decisions to tighten economic sanctions on Iran.
We must make it clear here that Iraq's top priority is to protect its national economy, financial system and monetary system from international or American economic sanctions imposed on some countries. And its priority, according to its financial and monetary policies, is to avoid being a party to that.
This is well known to the US Treasury, international organizations, and international auditing and regulatory bodies, that "the Iraqi economy faced many crises and challenges, extending to the years before 2023, but the government, the Central Bank of Iraq, and the banking sector faced them wisely, harmoniously, and with high coordination, in order to know and determine the causes of these crises, and what are the solutions and treatments for the purpose of overcoming them quickly," as the Central Bank began at the beginning of 2023, using many procedures, such as using the electronic platform application, for foreign transfers in compliance with international standards and controls, which were represented by organizing the financing of foreign trade in directions that make the Iraqi banking sector regulated by international banking standards.
And that "these measures were fruitful during 2023 and 2024, and his policy of opening accounts in solid foreign correspondent banks for banks that lacked these banks succeeded.
The Financial Action Task Force (FATF), the US Treasury, the International Monetary Fund and the World Bank have commended the Central Bank’s measures in overcoming most of the comments, confirming the transparency of foreign transfers, and moving to cancel the platform and direct dealings between our banks and correspondent banks under the direct supervision of the supervisory bodies for foreign transfers and ensuring their arrival to the final beneficiary. At a rate exceeding 97%, in addition to the government and the Central Bank contracting with international auditing and consulting companies with the aim of developing banks and ensuring their compliance with international standards. These companies are Ernst & Young, K2, Oliver and Eman, and they are currently operating according to the roadmap and plans drawn up for that.
The Iraqi government, in cooperation with the Central Bank, has taken several steps in this direction, the most important of which is automating the tax system and the customs system. In view of this strict commitment to protecting our financial system, we reassure everyone that there is no possibility of imposing new sanctions on the banking sector. These are just rumors and have absolutely no basis in truth.
Minister of Electricity discusses with US Chargé d'Affaires the development of the energy system in Iraq
Today, Wednesday, the Minister of Electricity, Ziad Ali Fadhil, discussed with the Chargé d'Affairs of the US Embassy the development of the electricity system in Iraq.
The media office of the Minister of Electricity said in a statement received by "Al-Eqtisad News", "The Minister of Electricity, Ziad Ali Fadhil, received in his office the Chargé d'Affairs of the US Ambassador to Iraq, Daniel Rubinstein, and a number of joint files in the electric power sector were discussed," noting that "the Minister reviewed during the meeting the ministry's strategic plans to develop the electricity system, improve the energy situation in Iraq, and the vital projects that the ministry intends to implement during the next stage."
He added, "During the meeting, the two sides discussed the investment opportunities available in the Iraqi energy sector, the participation of American companies in electricity infrastructure development projects, and the transfer of modern technologies in the field of production, transmission and distribution of electrical energy."
Anti-Money Laundering Office: Iraqi Authorities Face Difficulty Tracking Digital Transactions
The Deputy Director General of the Anti-Money Laundering and Terrorist Financing Office in Iraq, Hussein Al-Maqram, announced that the Iraqi authorities are facing difficulty in tracking digital transactions.
Al-Maqram said that the office is still working on updating the legal and legislative framework to meet emerging challenges.
He added, "Iraq is a critical area and is vulnerable to the growth of money laundering operations due to its heavy reliance on cash transactions in commercial transactions and slow progress in electronic payment operations, not to mention that the sales of the Central Bank of Iraq remain close to $300 million per day, which is a large number compared to the volume of goods entering Iraq."
Al-Maqram said, "In light of these challenges, the relevant authorities in the Republic of Iraq are following several strategies to combat money laundering and terrorist financing using virtual currencies, including continuous cooperation and coordination with banking and non-banking financial institutions and reporting transactions of unknown origin, as well as preparing joint committees from relevant government agencies for the purpose of tracking down those dealing and speculating in them."
Launching the implementation of the {Fursan} residential city.. and Al-Sudani: Iraq is facing a new industrial renaissance
Al-Sudani handed over land ownership deeds to a number of families of martyrs from the armed forces.
Al-Sudani appreciated the efforts of the Ministry of Defense and other ministries supporting the launch of this project, stressing the work to provide serviced residential plots in the rest of the governorates, and directing the generalization of this experience to members of the rest of the other security agencies, indicating that the Knights City project will be implemented by the real estate developer and planned and implemented by the Ministry of Defense, with the support of the Ministry of Construction, Housing, Municipalities and Public Works, with the developer company obligated to implement with full specifications, and construct part of the basic services such as schools, health centers and service departments.
He explained that the project is one of the government's paths to address the housing crisis, and a model in the governorates to include all members, officers and leaders of the Ministry of Defense, stressing that the government left the issue of distributing residential lands without infrastructure services, or designs that are appropriate for modern cities and various requirements.
Al-Sudani referred to the residential cities that will be implemented for the members of the armed forces, including the Al-Ghazlani City project in Mosul, and another city in Basra, in addition to laying the foundation stone for the 6th of November City in Taji, to cover the needs of housing units for citizens and members of the security services.
The following are the most important points made by the Prime Minister:
- The Ministry of Defense personnel defended the greater homeland, and we must provide them with a small homeland represented by a residential plot of land and decent services.
We have a new city, “City of Roses,” at the level of a new governorate. It was referred to the investor, and we completed the contracts and its design, and implementation began.
- More than 110,000 housing units will be completed in “City of Roses”, which is 3 km away from the “City of Knights” residential project.
There is a 17 km road under construction, linking central Baghdad to the new residential cities and reaching the city of roses.
- Within the Baghdad Metro plan, new residential cities have been linked, and we are in the process of negotiating with international companies to implement this vital project.
The government has taken into consideration the advance planning for the next 30 years regarding the provision of services, means of transportation and a road network.
I renew the call to the private sector and businessmen to proceed with the implementation of housing projects and real estate development in Baghdad and the governorates, and the government will provide all facilities.
We call on the private sector to establish construction materials factories in light of the great urban renaissance in the country, as what is available does not cover the actual need.
The number of housing units in projects signed by the government has exceeded one million units.
The sovereign guarantees provided to the private sector confirm that Iraq is facing a new industrial renaissance for the emergence of national factories that cover the needs of the market.
The government is obligated to provide basic services such as sewage networks, drinking water, electricity, communications, and roads.
Russia: We were about to complete important energy projects in Iraq, but the events of 2004 led to their suspension
Elbrus Kotrashev, the Russian Federation's ambassador to Iraq, confirmed that the decision to evacuate hundreds of Russian experts from Iraq in 2004 came after Russian teams working in the country were directly exposed to terrorist attacks.
During his interview on the "Qasary Al-Qawl" program with Salam Musafir on RT Arabic, on the occasion of "Diplomats' Day," he explained that "these attacks resulted in the martyrdom and injury of a number of experts, including Iraqis, which prompted the Russian authorities to take the decision to evacuate to protect the lives of its citizens."
"Russian companies were about to complete important projects in Iraq that began before 2003, especially in the energy sector, but the painful security events that occurred in 2004 led to the suspension of these projects and the evacuation of more than 900 Russian experts," Kotrashev added.
He continued: "After that, there was a long interruption in cooperation due to the turbulent security situation, but we want to continue the work and complete it successfully, especially since we are witnessing the suffering of the Iraqi people due to the scarcity of electricity."
Despite these challenges, the Russian ambassador stressed that relations between Baghdad and Moscow, which date back 80 years, are still strong and distinctive at all levels, describing them as going through their most beautiful stages in terms of the level and strength of cooperation. He pointed out that cooperation between the two countries covers multiple fields, including energy, education and culture.
Regarding cultural exchange, Kotrashev expressed Moscow's desire to open a Russian cultural center in Iraq, as it was during the Soviet era, explaining that the delay in this step is due to logistical reasons, not political or economic. He also spoke about educational cooperation between the two countries, noting that the number of Iraqi students in Russian universities ranges between 2,500 and 4,000 students.
Regarding cooperation in the energy sector, the ambassador pointed out that Russian investments in the Iraqi oil and gas sector amount to about $20 billion, and may be more. He stressed that Russia leads oil investments in Iraq, surpassing the United States and China, expressing his optimism about the possibility of expanding these investments in the future.
Regarding the possibility of a visit by a senior Russian official or President Putin to Iraq, Kotrashev said: “I hope the visit will be great, and I expect a warm welcome from the Iraqi government and people, but I do not know if it will happen soon because the president is busy with domestic and international issues.”
Experts: Establishing industrial cities is an advanced step to support the national economy
Economic experts and specialists praised the government's efforts to support the national economy by establishing industrial cities, stressing that this step will contribute to achieving sustainable economic development, providing job opportunities for the unemployed, and supporting local industries. This comes within the framework of a strategy aimed at diversifying sources of income and strengthening the industrial sector as a basic pillar of economic growth.
Economic expert Salem Mohammed Al Bayati confirmed that the government's move to establish industrial cities is an advanced step towards supporting local industry. He explained that these cities, which will be established on the borders of major cities and international borders, will provide an attractive environment for global companies to establish production factories, which will contribute to creating job opportunities to absorb the workforce and reduce unemployment rates.
Al Bayati added that the industrial cities will be an opportunity to attract foreign capital and introduce the world to local products, which will raise economic growth rates by increasing the volume of investments in various industrial activities. He pointed out that these cities represent a fundamental pillar for achieving sustainable economic development in the long term and will push the wheel of growth forward.
Al-Bayati pointed out that the industrial city projects will support the Iraqi private sector and will contribute to reducing pollution within major cities by moving factories to designated areas outside residential areas. He stressed the need to provide an integrated infrastructure that includes all facilities and services, which will facilitate the process of localizing industry and achieving the goals of comprehensive economic development.
He explained that the industrial cities will help in the establishment and growth of national factories, and will create integration between government and private factories due to their geographical proximity. He added that these cities will contribute to diversifying sources of cash income, which will enhance the national economy's ability to face future challenges.
For his part, economic researcher Alaa Al-Fahd praised the government's efforts to establish industrial cities in cooperation with neighboring countries. He stressed that this approach will support the national economy in all its sectors, not just the industrial sector, and will attract capital and international companies to establish major investment projects in Iraq. Al-Fahd pointed out that Iraq has great economic potential and numerous investment opportunities in various sectors, especially the industrial sector, which makes it an attractive destination for international companies. He added that this step reflects an ambitious economic vision aimed at transforming Iraq into a regional center for industry and investment.
As part of these efforts, Minister of Industry and Minerals Khalid Batal Al-Najm inaugurated the first phase of the industrial city project in Anbar Governorate. Al-Najm explained that the first phase covers 40 percent of the total area of the city, which is 3,000 dunums, where more than 233 sections have been completed and the site has been equipped with water services.
The Minister stressed that this project is an important step towards strengthening the industrial sector and providing a suitable environment for investment, noting that the city will contribute to creating new job opportunities and supporting local industries.
Despite the great praise for this step, experts stress the need to provide an integrated infrastructure and ensure a stable business environment to attract foreign investments. The success of these projects also requires cooperation between the public and private sectors, in addition to adopting economic policies that support local industry and encourage innovation
Bank deposits decline
Yasser Al-Mutawali
Iraqi banks have gone through a golden period in terms of restoring confidence from depositors in banks after achieving partial stability with a monetary policy by the Central Bank in support of the banking sector that contributed greatly to encouraging depositors to reconcile with banks.
Here, the topic is limited to (public deposits) due to their importance in motivating banks to contribute to development programs by expanding loans.
It is useful to point out that the banking sector went through challenges after the change phase, especially in the area of borrowers’ refusal to repay their loans, which helped them, and I mean the banks, to re-lend, and the difficulty in meeting the needs of depositors’ withdrawals, which created a state of loss of confidence between the two parties, depositors and banks on the one hand, and between banks and borrowers on the other hand, which led to the paralysis of banking activity, and a portion of the banks collapsed.
To be honest, the efforts of the Central Bank years ago had resulted in the return of confidence among the parties to the process: banks, depositors and borrowers.
However, reports indicate that deposits in Iraqi banks have decreased to (123 trillion dinars in November 2024, the lowest level in 22 months), according to those reports.
But what happened to cause this loss of confidence?
The answer is definitely related to the imposition of US sanctions on a large number of these banks. Here is my analysis of the reasons as I see them. It has nothing to do with whether the decisions were made rightly or wrongly, due to the lack of explanation of the real reasons behind these sanctions. I am certain that there is a political aspect behind the decisions, while acknowledging the existence of violations, but they do not deserve this harsh decision.
Perhaps some depositors fear the return of withdrawal chaos, which indicates a return of loss of confidence and fears of bankruptcy.
In contrast, the Central Bank indicated that deposits grew by 4.2 percent during the third quarter of 2024 compared to the same period of the previous year, but what makes matters worse is the confusion and hype it has promoted about the loss of liquidity, which may disrupt lending and productive projects, with funds being diverted to alternative investments such as real estate and gold. Hence, banks must develop their banking services to ensure market continuity and adhere to restoring confidence, in addition to developing and expanding the role of the Deposit Insurance Company with transparency and clarity. Perhaps the recurring financial crises that some countries have experienced have been able to diagnose the defect and find solutions, while raising the level of banking culture among the public with complete transparency, regardless of the size and details of the financial crises, to ensure overcoming them.
Banks need to develop their own media awareness offices.
Parliamentary Finance Committee expects to send budget tables next week
The Parliamentary Finance Committee confirmed, today, Wednesday, that the government did not send the 2025 budget tables to the Parliamentary Finance Committee due to amendments being made to them after the House of Representatives voted to amend Article 12, Second C, related to the region’s oil, expecting it to be sent next week.
Member of the Parliamentary Finance Committee, Jamal Kojer, said in a statement to the Al-Maalouma Agency, “The Council of Ministers has not yet sent the budget tables to the House of Representatives, and we at the Parliamentary Finance Committee are waiting for those tables to come from the government to discuss and approve them in the Council,” while he indicated that “the budget deficit may be close to the planned deficit in the 2024 budget.”
He added, "The delay in sending the 2025 budget tables was due to making amendments to them after the House of Representatives voted to amend Article 12, Second C, related to the region's oil, and it needs to make changes," expecting "it to be sent next week."
It is noteworthy that the House of Representatives voted to amend Article (12/Second/C) of the Triennial Budget Law for the years (2023, 2024 and 2025).
Federal Court rejects appeal of forgery in budget tables
The Federal Supreme Court rejected, today, Wednesday (February 12, 2025), the appeal filed regarding forgery in the budget tables due to the lack of personal interest.
MP Mohammed Al-Khafaji said in a post on his Facebook account, which was followed by "Baghdad Today", that "the Federal Supreme Court rejected the appeal filed for forgery in the budget tables due to the lack of personal interest ."
On Sunday (February 3, 2025), the House of Representatives voted on the draft law amending the first budget law .
The media department of the council stated in a statement received by "Baghdad Today" that "the Council of Representatives voted on the draft law of the first amendment to the Federal General Budget Law of the Republic of Iraq for the fiscal years (2023-2024-2025) No. (13) of 2023.
Federal Court postpones issuing decision on President’s lawsuit against Al-Sudani and Finance Minister
The Federal Supreme Court decided, on Wednesday, to postpone issuing its decision on the lawsuit filed by the President of the Republic against both the Prime Minister and the Minister of Finance regarding the salaries of the Kurdistan Region.
A judicial source in the court told Shafaq News Agency, "The court decided to postpone the case until the 18th of this month," indicating that "the postponement came to complete the pleadings and study the legal aspects related to the case before issuing the final ruling . "
The President of the Republic, Abdul Latif Rashid, filed a lawsuit with the Federal Court against Prime Minister Mohammed Shia al-Sudani and the Minister of Finance in his government due to the delay in paying the salaries of the Kurdistan Region employees.
For his part, Hawri Tawfiq, the Director General of the Presidency of the Republic, explained last Monday the details of the filed lawsuit, stressing that the President of the Republic is not an opponent of any constitutional authority in the country, and the lawsuit was filed by the Presidency of the Republic before the Federal Court to resolve the crisis of salaries of employees of the Kurdistan Region.
Sulaymaniyah protesters end hunger strike and remove sit-in tent
Saman Ali, a member of the Sulaymaniyah Protests Committee, confirmed today, Tuesday (February 11, 2025), that the protesters in Sulaymaniyah stopped their hunger strike and ended a sit-in in the tent that lasted for 15 days.
Ali said in an interview with Baghdad Today, "The protesters have ended the hunger strike, but the strike is continuing, and there are other escalatory steps until the demands are met."
He added, "The sit-in inside the camp in front of the United Nations headquarters has stopped, but the strike and escalation steps, including demonstrations, will continue from time to time until the legitimate demands are met, which are the localization of salaries in federal banks, the resumption of bonuses and promotions, and the regular payment of salaries."
He pointed out that "ending the hunger strike and sit-in inside the tent came as a result of popular calls by citizens, after the health of the strikers deteriorated, and out of fear for their lives, and the strikers were transferred to hospitals to receive treatment."
This move comes as part of a series of ongoing protests in the Kurdistan Region, where employees are facing a crisis of delayed salaries and frozen promotions, amid difficult economic conditions that have increased the suffering of citizens.
Although the hunger strike was one of the pressure tools, the protesters believe that continuing their sit-in is the only way to continue the struggle until social justice is achieved and their financial rights are guaranteed.
These protests reflect the extent of popular anger over the economic situation, as the Kurdish street has become more determined to make its voice heard by officials.
.png)
FEB 13 2025
Disarmament talks stall between Iraqi government, armed factions
On Thursday, negotiations between the Iraqi government and armed factions regarding the disarmament of "militias," particularly drone capabilities, have yet to yield an agreement, a senior official from the State of Law Coalition confirmed.
Abdul Rahman Al-Jazairi, a member of the coalition led by former Prime Minister Nouri al-Maliki, told Shafaq News, “The United States has requested the disarmament of Iraqi factions, specifically heavy weaponry such as drones, as a condition for their participation in political and governmental roles in the next phase.”
“Talks between the government and the factions are ongoing to resolve this issue, but so far, there is no agreement on disarmament or integration,” Al-Jazairi said, emphasizing that factions within the ‘Axis of Resistance’ “remain in close coordination with Iran and operate outside the Popular Mobilization Forces (PMF) framework, making it difficult for the government to enforce any measures upon them.”
The Iraqi government has been pushing to integrate these armed factions into official security institutions or the PMF, yet many of these parties’ leaders insist on maintaining independence, arguing that they “constitute Iraq’s resistance front.”
Last week, Prime Minister Mohammed Shia Al-Sudani reaffirmed his administration’s efforts to bring all armed groups under legal and institutional frameworks, stating that his government is committed to “building a new Iraq rooted in its Arab historical heritage.”
Meanwhile, Iraq’s Foreign Minister, speaking during an official visit to London, told Reuters that Baghdad is trying to convince these groups to either disarm or integrate into the country’s formal military and security forces.
“Two or three years ago, discussing this issue in our society was impossible,” the minister stated. “But today, the presence of armed groups operating outside the state framework is no longer acceptable.”
Integrating armed factions into Iraq’s security institutions would provide them protection from potential US or allied military strikes, as well as shield them from future crackdowns on non-state armed actors, analysts suggest.
Al-Sudani pays official visit to Czech Republic
Prime Minister Mohammed Shia Al-Sudani headed to the capital, Prague, on Thursday morning, on an official visit to the Czech Republic.
This came according to what was announced by Al-Sudani's media office in a brief statement without going into further details about this visit.
Iraq, Czech strengthen ties with key agreements
On Thursday, Iraqi Prime Minister Mohammed Shia al-Sudani met with Czech Prime Minister Petr Fiala in Prague.
Al-Sudani’s media office stated that both sides signed an agreement and five memorandums of understanding across various sectors.
“The ceremony included the signing of an air transport agreement between the Iraqi and Czech civil aviation authorities, as well as a memorandum of understanding between the Iraqi Ministry of Oil and the Czech Ministry of Industry and Trade.”
The media office added that “a draft memorandum of understanding was signed between the Ministries of Interior of Iraq and the Czech Republic, along with a cooperation memorandum between the Iraqi and Czech Federations of Industries, another between the Iraqi and Czech Chambers of Commerce, and a letter of intent with the Iraqi Ministry of Environment.”
Investments 2025: Economic renaissance under the umbrella of the general budget
He added in his statement to {Euphrates News} that "the three-year general budget was enacted to give the development policy sufficient flexibility in implementing investment projects without interruption, according to a flexible and rational vision that takes into account the indicators of the National Development Plan 2024-2028, and according to the available financing capabilities drawn up in the plan and the general budget together."
Central Bank raises MasterCard service fees
The Central Bank of Iraq has directed Iraqi banks to raise the commission amounts for issuing or renewing MasterCard cards.
According to an official letter issued by the bank and seen by Iraq Observer, the fees for issuing a salary card for the first time have become 15 thousand instead of 10 thousand, while the fees for replacing a MasterCard upon expiration will be 15 instead of 10 thousand.
The letter indicated that issuing a replacement card for a damaged or lost card has become 25 thousand, while the commission for raising the salary on the MasterCard will be 2000 dinars instead of 1000 dinars.
The amendments included the fees for withdrawing cash from POS machines, which have become 2000 dinars per million instead of 1000.
Central Bank announces raising banking transaction prices for private
link
banks
links
The Central Bank of Iraq directed private banks to raise banking transaction prices, according to ceilings and percentages specified by the Central Bank itself.
A letter addressed by the Central Bank to all licensed private banks, dated February 9, 2025, included a table of banking transaction rates, “In addition to our circular numbered (9/4/4) dated 8/1/2025, it was decided to add the upper ceilings for the rates specified in the countries to the group of rates included in paragraph 4 of our circular, with the aim of taking them into account when formulating the unified banking transaction rate table for you, while stressing the importance of presenting it annually to this bank after its approval by the Board of Directors of your bank, within a deadline of December of each year at the latest, and our directive contained in our circular numbered (9/2/6605) dated (22/11/2023) is cancelled.”
According to the new price schedule, the commission for issuing a civil card/localization of salaries for the public and private sectors has been set at a maximum of 15,000 dinars, renewing a localization card for salaries for the public and private sectors has also been set at a maximum of 15,000 dinars, and replacing a localization card for salaries for the public and private sectors has been set at 25,000 dinars.
The account management commission has also increased with the salary increase commission combined to a maximum of 2,000 dinars per month (collected from the accounts of beneficiaries of the salary localization project/public and private). Cash withdrawals through a POC machine are 2,000 dinars deducted from the cardholder when making the withdrawal, and through an ATM machine, 4,000 dinars as a maximum/1,000 dinars as a minimum. Meanwhile, the commission for foreign transfers (SWIFT) has been set at “10 dinars per dollar, the exchange rate difference, including all fees and costs + 3,000 dinars.”
Iranian President to Trump: We are ready to negotiate, but not under sanctions
Iranian President Masoud Pezeshkian confirmed on Thursday (February 13, 2025) that Iran is ready to enter into negotiations, but will not submit to the sanctions imposed on it, stressing that negotiations cannot take place under pressure and threats.
He explained in his statements, which were followed by "Baghdad Today" during his meeting with cultural and intellectual elites in Bushehr Province, southern Iran, that "the parties that are talking about dialogue today are the same ones that imposed the harshest sanctions on the Iranian people, closed all outlets for interaction, and used all tools of pressure against the country."
The Iranian president questioned the seriousness of the calls for negotiations, saying: "If they are sincere in their desire for dialogue, why don't they stop their hostile policies?"
Regarding the regional situation, Pezeshkian stressed that "enemies are seeking to isolate Iran from its regional surroundings, but it will continue to strengthen its brotherly relations with neighboring countries," adding: "All countries in the region are our brothers and friends, and we will not allow policies of sowing division to affect our relations."
The Iranian president stressed that international pressures will not push his country to surrender or retreat, stressing: "They do not want us to negotiate, but rather they want to humiliate us, but we will not accept that. The enemy cannot terrorize Iran, and we will not retreat in the face of the threat."
Asraflak Campaign in Iraq announces intensifying campaign efforts to spread awareness of electronic payment
The "Asraflak" campaign, which aims to spread the culture of electronic payment in Iraq, announced the intensification of the campaign's efforts to spread the culture of awareness of electronic payment.
A statement by the campaign said: "There are intensive and continuous meetings with the relevant authorities in order to spread the culture of electronic dealing in all fields, especially the banking aspect, to protect the Iraqi people's money from theft or forgery, as well as to reduce embezzlement of funds."
He explained that "the campaign was launched in August of last year to spread the culture of electronic payment in Iraq based on the electronic payment services system issued by the Council of Ministers' decision for the year 2024, and it is the first awareness campaign to go down to the Iraqi street to raise awareness of electronic payment."
The statement continued, "The campaign wants to bring the Iraqi people to the peak of awareness of this campaign in order to keep pace with the countries of the world in terms of dealing with electronic payment."
He stressed: "There is a great response speed from Iraqis to deal with this method and an increase in the number of electronic payment users as it is an easy and convenient means of payment, noting that the campaign held conferences and forums with the participation of the governing bodies to mature it."
Widespread criticism in the circles.. The Central Bank doubles the salary withdrawal commission
Social media and banking circles were abuzz with a new circular issued by the Central Bank of Iraq, raising the prices of issuing electronic cards and fees for electronic payment and withdrawal from cards, including salary withdrawals, as the ceiling will be 4,000 dinars instead of 2,000 dinars, while the amounts that will be deducted by the owner of the salary outlet will be added to it.
A document issued by the Central Bank and addressed to all banks and outlets stated that the price of issuing and replacing a salary card has been raised to 15,000 dinars instead of 10,000 dinars, and issuing a replacement card for a damaged or lost card is 25,000 dinars.
The salary increase commission for the Master has also been raised to 2,000 dinars instead of 1,000 dinars, and the cash withdrawal fees from POS devices have become 2,000 dinars per million instead of 1,000.
Economic expert Safaa Al-Shammari said in a blog post that the Central Bank’s decision will hinder electronic payment. Instead of the Central Bank being a driving force towards the digital economy, this decision came to be a new obstacle to the spread of electronic payment, as imposing fees on electronic banking operations encourages citizens and merchants to hold on to cash.
He added that "the decision seems designed to protect the profits of private banks rather than serve the economy and consumers," noting that it was supposed to oblige banks to gradually reduce fees and not to regulate their exploitation.
He explained that "at a time when countries are racing to develop electronic payment services and provide convenient alternatives, this decision comes to impose fatal restrictions on the sector. Banks are now not forced to develop new services or improve their systems, because the Central Bank has granted them comfortable fee ceilings that guarantee them profit without the need for competition and innovation.
He stressed that "the more expensive electronic payment is, the greater the incentives to use cash outside the banking system, which opens the door wide to tax evasion and money circulation outside government supervision, considering that "if this decision is not reviewed immediately, Iraq will fall behind for decades in catching up with financial technology, and cash liquidity will remain king, while the rest of the world advances in the digital economy."
Rashid Bank's capital jumps from 2 billion to 50: What are the reasons? And is timing related?
Today, Thursday (February 13, 2025), banking and financial expert Alaa Al-Fahd revealed the reason for increasing the capital of Rashid Bank at this time.
Al-Fahd told Baghdad Today, "This measure is part of the government's reform of banking policy by expanding the size of banks and their participation in economic development. There is a reform policy that the government is pursuing with the Central Bank of Iraq, with the assistance of international companies, in order to develop banking work and increase bank branches. Therefore, there was an obligation to increase capital according to the requirements of the stage."
He explained that "today the capital (2) billion dinars does not match the current reality, due to the number of branches and shareholders owned by Rashid Bank, and therefore increasing the bank's capital will contribute to classifying the current situation and contribute to improving the current reality."
The banking expert added, "This increase is the beginning of restructuring the banks, especially Rafidain and Rashid banks, and making them at a level that meets the ambition of the current stage, and is at the level of development and the level of the needs of the Iraqi economy."
The Federal Council of Ministers, during its session last Tuesday, approved increasing the capital of Rashid Bank from 2 billion dinars to 50 billion dinars, from the bank’s expansion reserve account, with the Iraqi Ministry of Finance taking the necessary measures for implementation.
Earlier, the government announced ambitious plans to restructure government banks, most notably Rafidain and Rashid Banks, with the aim of transforming them into more modern and efficient financial institutions capable of meeting the needs of the growing Iraqi economy.
The Council of Ministers also decided in its session held on January 13, 2025 to establish a completely new bank, based on the latest digital banking technologies, and aiming to provide integrated banking services to individuals and companies, both inside and outside Iraq.
Erbil Trade Discusses Banking Sector Participation and Kurdistan Factories Obtaining Federal Loans
The Erbil Chamber of Commerce and Industry, the capital of the Kurdistan Region, held a workshop on Thursday to activate the participation of the banking sector in development and economic growth, as well as discussing the mechanism for the region's factories to benefit from loans from the Central Bank of Iraq.
Erbil Chamber of Commerce and Industry stated in a statement received by Shafaq News Agency, "A workshop was held to activate the banking sector, in which Kamran Salah Bajkar, Vice President of the Chamber, stressed the role of the banking sector in developing the economy, and he also spoke about diversifying sources of income, especially focusing on the sectors of agriculture, tourism and industry."
“Omed Khoshnaw, the Governor of Erbil, who attended the workshop, also spoke about his hope that the topics and discussions would serve the economic and banking sector in the Kurdistan Region. The Governor highlighted the steps taken by the Regional Government to care for the banking sector, noting that despite many problems and obstacles, the Regional Government was able to take good steps in this area, and that merging the public and private sectors and diversifying income were among the basics of its work,” she added.
The workshop also discussed, according to the statement, "many issues and topics regarding the guidelines and plans of the Iraqi banking sector, the plans and directives of the Central Bank of Iraq to activate the banking sector's activity, the role of the banking sector in sustainable development, the challenges of the banking sector and its proposals, the role of the financial market and financing major projects and renewable energy projects, through the presentations and lectures to the attendees."
It also included "discussing the issue of Kurdistan Region factories benefiting from loans from the Central Bank of Iraq and the Iraqi government, as factory owners expressed their hope to benefit from all the privileges similar to other Iraqi cities. The Central Bank's program to support and finance projects that use renewable energy to obtain electricity was also discussed."
Announcement of the public tender numbered (2025/1) for the supply, installation and operation of machines for counting and sorting Iraqi and foreign currency (dollars and euros) for the branches of the Central Bank of Iraq in (Basra and Mosul)
The Central Bank of Iraq announces the holding of a public and private tender for the preparation, installation and operation of machines for counting and sorting Iraqi and foreign currency (dollar and euro) numbering (65) machines, with (35) machines for the bank branch in Basra and (30) machines for the bank branch in Mosul, according to the technical specifications and legal conditions contained in the standard document for the preparation of goods prepared by this bank, at a total estimated cost of (1,134,250,000) Iraqi dinars (one billion, one hundred and thirty-four million, two hundred and fifty thousand Iraqi dinars) from the planning budget of the Central Bank of Iraq for the year 2025 and from the allocations of the bank branches (Basra and Mosul) . Those wishing to participate in the tender from companies (agents of specialized companies in Iraq legally accredited) with experience and expertise should purchase the tender documents in paper form by visiting [Central Bank of Iraq / located in Baghdad - Rashid Street - Building No. (2) Floor (3) Legal Department / Contracts Department] after paying the price Tender documents amounting to (250,000) Iraqi dinars (two hundred and fifty thousand Iraqi dinars) are non-refundable and they have the right to purchase tender documents electronically via the electronic platform. Purchasing tender documents via the electronic platform is optional for those wishing to purchase from companies with the payment of the amount of purchasing documents and the fees for the electronic purchasing service via the platform by those wishing to purchase electronically. The electronic or paper purchase receipt bearing the name of the company or its authorized manager issued by the management of the electronic platform system is approved when purchasing documents electronically for the purposes of submitting and analyzing the bid.
The bid closing date will be before the end of the official working day on (Sunday) corresponding to 3/16/2025. Bids are delivered to the address [Central Bank of Iraq / Legal Department / Contracts Department / Building No. (2) Floor (3) / located in Baghdad - Rashid Street], and the bidder to whom the tender is awarded shall bear all taxes and fees imposed under the applicable Iraqi laws on the full contract amount in addition to bearing the fees for publication and advertising in the national newspaper and the electronic platform and fees Archiving the contract electronically.
Iraq's golden treasure.. Will it protect the country from economic fluctuations?
"Iraq's gold reserves make Iraq and the entire state safe and protect the country from any sudden economic crises," Kocher told {Euphrates News}.
Kocher pointed out that "the issue of rising and falling gold prices globally does not affect the reserve."
Gold is considered a safe haven in times of economic crises, as it maintains its value or increases with the deterioration of other currencies.
Iraq has a large gold reserve, which enhances its economic strength and protects it from external shocks.
The economic advisor to the Prime Minister, Mazhar Mohammed Salih, revealed Iraq's gold reserves, estimated at about 152 tons.
Although gold prices may fluctuate globally, this does not affect the value of Iraq's gold reserve in the long term.
Interesting image on TV Today in Iraq
No comments:
Post a Comment