Parliamentary Finance Committee settles the matter: The dollar exchange rate will not change

Parliamentary Finance Committee settles the matter: The dollar exchange rate will not change

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The Parliamentary Finance Committee revealed the numbers of employees, retirees and social welfare beneficiaries, confirming that their salaries are fully secured for next year, with no intention to change the dollar exchange rate.

The video for this blog post is below here:

Committee member, Moeen Al-Kazemi, stressed the "need to increase non-oil revenues to ease the burden on the general budget." 

Al-Kadhimi stressed that "the government is working to increase revenues from non-oil sources such as taxes, customs, the Communications and Media Commission, and profitable companies in state departments, in addition to collecting water, electricity and other services."

He pointed out that "non-oil revenues could reach 30 trillion dinars in 2025, in addition to 120 trillion dinars of oil revenues, which makes the total revenues sufficient to secure the salaries of 4.2 million employees, and the salaries of 3.5 million retirees," noting that "the allocations for these salaries amounted to 65 trillion dinars in 2024, and it is expected that there will not be a significant increase during the next year."

Al-Kadhimi also explained that "the number of beneficiaries of social care will reach 5 million beneficiaries," stressing "the importance of following a sound financial policy to increase non-oil revenues and ensure financial stability, while maintaining the dollar exchange rate without change."

Al-Sudani's advisor reassures via Shafaq News about the rise of the dollar: a temporary market bubble

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Mazhar Mohammed Saleh, the financial and economic advisor to Prime Minister Mohammed Shia al-Sudani, commented on Thursday on the rise in the exchange rate of the US dollar against the Iraqi dinar in the local market for days.

Saleh told Shafaq News Agency, "The difference between the two exchange rates in the market is basically stable for reasons related to controlling the sale of cash dollars from legal outlets to travelers in an organized manner and subject to a precise rule of compliance and auditing, in addition to the ability of the traveler to obtain other permitted amounts through payment cards in all their forms, and in sufficient and comfortable amounts at an exchange rate of 1320 dinars per dollar."

He added, "It is expected that the market, due to the end of the previous foreign transfer platform and the transition to new mechanisms for strengthening with foreign currency to meet the banks' needs for foreign currency to finance foreign trade, was accompanied by a wave of misinformation, misunderstanding and confusion that was exploited by the parallel market and speculators for quick profit."

He considered that this increase is "called a temporary market bubble that is built on unrealistic speculation and disappears over time, which requires attention to the phenomenon of exploitation and profiteering generated by false and baseless information."

The dollar exchange rate in local markets is witnessing a gradual increase, while this morning it recorded 152,000 dinars for every 100 dollars in the two main stock exchanges of Al-Kifah and Al-Harithiya in Baghdad, and 151,400 dinars for every 100 dollars in Erbil, the capital of the Kurdistan Region.

Yesterday, Wednesday, the economic and financial expert, Abdul Rahman Al-Mashhadani, attributed the main reason for the rise in the dollar price to the promotion of stopping the platform, indicating that “this rumor that spread showed that foreign transfers would stop.”

He explained that "this rumor is false, as 97% of the transfers made through the window were transferred to banks that have correspondent banks in a way that enhances the balances. The Christmas holiday is also another reason for the demand for the dollar, as there is a lot of travel during these days."

Al-Mashhadani expected that "the situation will stabilize and the dollar will return to its normal status after the holiday."

Stopping the dollar selling platform will “confuse” the parallel market “more” coinciding with the Christmas holiday - Urgent

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Economic expert Nasser Al-Tamimi revealed, today, Thursday (December 26, 2024), the reason for the continued rise in the dollar exchange rate in local markets for days.

Al-Tamimi told Baghdad Today , "There are two main reasons behind the continued rise in the dollar exchange rate in local markets for days," indicating that "the first reason is the imminent suspension of the platform's work at the Central Bank, as this matter has caused confusion in the market, especially among small traders, who have increased their demand for dollars from the parallel market."

He added, "The other reason is the proximity of the New Year's celebrations, as there is a demand for the dollar in the parallel market for the purpose of travel as well as buying some goods," expecting "the rise to continue until the beginning of the new year, after which it may return to a gradual and slow decline."

Economic expert Nasser Al-Tamimi warned, on Tuesday (December 17, 2024), of a rise in the dollar exchange rate in Iraq in the coming days.

Al-Tamimi told Baghdad Today, "There are real fears in the Iraqi market of the continued rise in the dollar exchange rate after the Central Bank of Iraq stopped working on the platform," indicating that "this matter will constitute a shock, especially at the beginning of implementing the decision and will lead to a rise in the dollar, to increase demand for it in the parallel market."

He added that "after the platform is stopped, most traders, especially small ones, will depend on the parallel market to finance their foreign trade, while continuing to finance trade with Iran and Turkey in dollars, through illegal means," noting that "this is what will lead to the rise, and therefore practical steps must be taken to prevent this by the country's monetary authority, and urgently."

The Central Bank of Iraq revealed on Wednesday (September 4, 2024) the mechanism for ending the electronic platform for foreign transfers, while indicating that the placement of foreign transfer operations and meeting requests for the dollar are on sound paths and consistent with international practices and standards.

The Central Bank of Iraq honors the members of the Issuance and Treasury Department on their career day

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His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, sponsored the first annual celebration for the employees of the issuance and treasuries in the bank and its branches.
The ceremony witnessed the honoring of the employees who won a symbolic shield in appreciation of their distinguished efforts, by the Governor, the Deputy, the Director of the Issuance and Treasury Department, and the branch managers.
His Excellency the Governor praised, during a speech on the sidelines of the celebration, the contributions of all employees of the Central Bank of Iraq, especially the employees of the Issuance and Treasury Department, whose work nature and positions differ from other departments and sections.
His Excellency stressed that we had previously directed to hold a special celebration for the employees of the issuance and treasuries, and this comes in appreciation of their great efforts in the process of sorting, printing, and issuing currency and other basic tasks of their work. 

 

Central Bank of Iraq
Media Office
December 26, 2024

 

Uncertainty over the 2025 budget.. Parliament: We don't know anything about it yet

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Expectations of deliberate delay by the government

 

Member of Parliament Ahmed Al-Sharmani explained today, Thursday (December 26, 2024), that Parliament does not know anything about the 2025 budget schedules, suggesting that the government is deliberately delaying sending it.

Al-Sharmani said in an interview with "Baghdad Today", "According to the Financial Management Law, the budget or its schedules must reach the House of Representatives at the end of the month (10) of each year, and any delay in doing so is considered a legal violation, especially since this violation has been repeated for many years."

He explained that "the 2025 budget tables are not known to the House of Representatives so far, and the delay in sending them is a violation, and there is no specific date for sending those tables."

Al-Sharmani added, "Perhaps the government will link sending the tables with amending the law proposed in Parliament, and this will delay sending the tables for a long time due to disagreements over the origin of the amendment."

MP Jawad Al-Yassari confirmed on December 19, 2024, that political differences over amending the budget law will delay voting on the 2025 budget schedules, indicating that “the Iraqi government is waiting for Parliament to amend the budget law, so that it can send it the schedules for 2025 according to the amendments.”

It is noteworthy that Member of Parliament Mustafa Al-Karaawi announced on December 8, 2024, the postponement of the second reading of the amendment to the General Budget Law until after the legislative holiday.

On the cusp of 2025.. Economy and political differences are the most prominent wishes of the Kurdish street

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 In a few days, the Kurdistan Region will bid farewell to the year 2024 with its ups and downs. 

In addition to the manifestations of joy and New Year celebrations that are evident in the markets of Erbil, the capital of the Kurdistan Region, there are many hopes that the Kurdish street hopes will be fulfilled in the coming year. 

Shafaq News Agency surveyed the opinions of citizens in the region about the year 2024 and their hopes for the year 2025. 

Kamran (a citizen in Erbil) told Shafaq News Agency, "The year 2024 was somewhat difficult for the citizens of the Kurdistan Region due to the many problems and crises that befell the country, most notably the problem of employees' salaries, which seriously exhausted the economy in the Kurdistan Region in various aspects." 

He added, "We hope that next year the Kurdistan Regional Government will work to resolve this issue with the federal government in a way that benefits the citizens and enables employees to receive their salaries on a regular basis every month without delay, as in all Iraqi governorates. This is a natural right for us." 

In turn, Sardar (a citizen from Sulaymaniyah) told Shafaq News Agency, "The financial problems are already present and are still ongoing due to their involvement in the political disputes between Erbil and Baghdad. We hope that these issues will be separated from each other because they have really tired the citizens." 

For her part, Sahera (a citizen from Erbil) told Shafaq News Agency: "The year 2024 was full of events in various fields, the most prominent of which, in my opinion, was holding the elections, but unfortunately the parties have not yet been able to form the new government and complete this legal entitlement, and this harms the Kurdistan Region and negatively affects the citizens. What we hope for is for the parties to reach a comprehensive political solution that contributes to resolving the differences and moving forward towards forming the government." 

Aziz (a citizen from Erbil) told Shafaq News Agency: "The most important thing that the Kurdish people hope for in the new year is to solve the problems and economic crises and improve the situation in the region in a way that ensures the protection of stability as well as stability and security, which is a basic requirement for everyone."

The International Development Bank announced, today, Thursday, the introduction of an electronic payment mechanism for entertainment services. 

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The International Development Bank announced, today, Thursday, the introduction of an electronic payment mechanism for entertainment services. 

The bank's management said in a statement received by the Iraqi News Agency (INA): "The bank has entered into a strategic partnership with the 1001 application, which represents a new step towards achieving a shared vision in enhancing support for youth by providing an entertainment service and an integrated social experience through the use of electronic payment tools and bank cards."

It added, "This came with direct support and utmost importance from the Chairman of the Board of Directors of the International Development Bank, Ziad Khalaf; In order to encourage the use of legal digital content within Iraq, which contains a comprehensive store for the Iraqi public. This contract also contributes to enhancing digital entertainment and participation among youth in supporting sports culture and using payment via electronic cards.

" It stated, "Through this partnership, we seek to provide direct access to the digital, diverse and comprehensive content of the T0D/1001/bein sport/OSN+/lalega/Spanish League libraries, the English Premier League, the European Champions League, the German League, Formula 1, the NBA Basketball League and tennis tournaments," explaining that "this partnership represents a true reflection of our shared values in enhancing quality, providing the best and keenness to achieve excellence in everything we offer.

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Call to re-evaluate the cost of oil production in Kurdistan under the supervision of an international auditing firm

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The economic expert, Safwan Qusay, called for a re-evaluation of the cost of oil production in Kurdistan under the supervision of an international auditing company.

Safwan told {Euphrates News} that: "The House of Representatives is supposed to, with the arrival of the budget schedules from the government to the parliament presidency, assign the Finance Committee to study them in order to approve them faster to avoid the agreement in 2025."

He added, "There is an urgent need to restore the cost of producing a barrel of oil from the Kurdistan Region's fields and raise this number under the supervision of an international auditing company to $16 or something commensurate with this cost, and for the region to pledge to deliver more than 400,000 barrels to SOMO."

Safwan pointed out that "amending the article related to exporting Kurdistan oil includes increasing the cost by $6 at the level of all oil fields in Iraq, and this rate can be reduced in some governorates to $2, and the transfer can be enhanced for the purpose of financing $16 from the Ministry of Finance to the region."
 
"There is a desire in China next year to double the total production, meaning we expect an increase in Iraqi oil consumption, which may give importance to increasing the value, thus the possibility of canceling the voluntary cuts by OPEC and returning the pumping of Iraqi oil to its normal production rates of 4 million and 500 thousand barrels of oil per day," he added. 

Regarding the industrial city project in Basra, Safwan explained, "After completing the population census, we have a clear map of the deficit in housing units of no less than two million and 500 thousand housing units that are supposed to be built, and the demand for iron will increase with the presence of service projects and the necessity of establishing a train system."
He stressed "the need to develop the iron and steel industry in Iraq to move to the steel industry and create an economic partnership with companies that depend on iron and steel, whether in the housing sector or cars and other iron products," considering economic diversification "an important step taken by the government to rehabilitate the private sector, which suffers greatly."

Regarding the fluctuations in the dollar price and its impact on citizens, Safwan said, “The Central Bank of Iraq still has ambitions to modernize the banking systems and involve the largest possible number of banks in the process of financing foreign trade by reclassifying them and linking them to a system of international correspondents; but these efforts alone will not be able to control the exchange rate. We need to invest in technology at the border crossings.”   

Dagher: I don't understand why we borrow when oil exceeds $70

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Today, Thursday, economic expert Dr. Mahmoud Dagher criticized the economic policies that push Iraq to borrow despite oil prices exceeding $70 per barrel.

Dagher explained that the external debt exceeded the figures announced according to the World Debt Report, while the internal debt amounted to more than 81 trillion Iraqi dinars, which constitutes an additional burden on the general budget that bears the debt installments and interest, as these costs reach 9 trillion dinars.

He pointed out that the government's continued borrowing lacks any economic justification, especially with the fluctuation of Iraq's GDP as a country dependent on oil revenues, which makes the debt-to-GDP ratio unrealistic or economically feasible.

Dagher concluded his statement by stressing the need to reconsider these financial policies, warning of the repercussions of borrowing on the Iraqi economy if oil prices decline in the future.

Budget tables and financing operations on the discussion table of the head of the State of Law bloc and the Minister of Finance

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Head of the State of Law parliamentary bloc, Yasser Al-Maliki, discussed with Finance Minister Taif Sami the completion of the amendments to the three-year budget and financing operations.

A statement by the State of Law Bloc received by the Iraqi News Agency (INA) stated that "the head of the State of Law parliamentary bloc, Yasser Al-Maliki, received in his office today, the Minister of Finance, Ms. Taif Sami, in the presence of the Chairman of the Parliamentary Finance Committee, Atwan Al-Atwani. The meeting discussed the importance of completing the amendments to the three-year budget (2023-2024-2025), as well as the necessity of the (2025) schedules reaching the Council of Representatives to work on approving them in the Council after the Finance Committee completes its study and auditing in accordance with the legal contexts."

He added that during the meeting, the financial and economic conditions and mechanisms for supporting strategic projects were reviewed to serve the country and overcome the obstacles and challenges facing them.

In turn, the Minister of Finance reviewed, according to the statement, "the procedures followed by the ministry in addressing the financial conditions and the methods followed to ensure the continuity of project financing operations and operating budgets."

Praising the government's success in attracting investors and capital to the country

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As the year 2024 draws to a close, witnessing an urban renaissance that the country has lacked for decades, academics and specialists praised the government’s success in attracting investors and capital to the country, stressing that the security stability enjoyed by the country and the development of the banking system that came in accordance with the government program, pushed the wheel of investment forward.

Safe reality

Professor of Economics at Al-Nahrain University, Sattar Al-Bayati, told Al-Sabah: “In light of the current safe reality and the stability that the country is witnessing, there is a development and urban movement that the country is witnessing according to the government program, and the achievements that occurred during this year with regard to Baghdad, especially in the matter of cleanliness, roads, bridges and projects in various sectors, as well as the bridges that were built or rehabilitated and appeared in a new guise, these are all positive messages sent by the government to investors, whether Iraqis or Arab and foreign investors, that there is a suitable environment for investment in general, especially direct investment in light of the existence of Investment Law No. 13 of 2006 and its amendments, which contain many articles that serve the investor.” He pointed out that “there are two types of investment, which are foreign direct investment and indirect foreign investment,” indicating that “indirect investment occurs in the Iraq Stock Exchange, or any stock market or stock exchange.”

Infrastructure

He added, "The government is counting on direct investment, because it is a real investment that can be made directly in the basic structures or infrastructure that the country needs, such as residential complexes, bridges, hospitals, or universities. Direct investment can invest in all of these."

Great benefit

In turn, economic expert Alaa Al-Fahd told Al-Sabah: “The government has focused on investment aspects and development projects with high economic feasibility,” indicating that “these projects, if completed, will be the gateway and beginning for development projects and investments and attract foreign investment, while greatly benefiting from the state of security and political stability in Iraq.” Al-Fahd confirmed that “there is an investment revolution in Iraq currently.”

Financial capabilities

“Security and political stability can be a gateway for investments in various fields and sectors, such as the services sector, housing sector and infrastructure, and this is one of the government’s priorities,” he added, noting that “this requires consolidating the partnership between the public and private sectors, whether local or foreign, as this is the first stage to gain confidence and move from the socialist state and the government’s implementation of projects, to another new state with the participation of the private sector in projects in which the local private sector can invest according to the existing financial capabilities and infrastructure belonging to the state, and even in the field of managing service facilities and others.”

Big investments

He pointed out that Iraq today has begun to attract very large investments that have so far reached 62 billion dollars, but it needs more than 500 billion dollars in the areas of infrastructure, services and productive projects, in addition to the government’s orientation towards oil transformation industries,” indicating that “these industries in themselves will contribute firstly to achieving self-sufficiency, and secondly, Iraq can be a source of oil derivatives, as well as a source of transformation industries instead of the state having to bear the costs of importing them.”

Government vision

“There is a government vision for a map of high-priority investment projects, and the government has begun to lay the basic foundations in terms of financial transfer, financial leverage, and financial inclusion, which is one of the largest pillars of investment,” he said, stressing that “investment seeks financial security and financial inclusion, with the presence of a banking system capable of managing the investment process, primarily by providing bank credit, as well as achieving financial security in terms of foreign transfers and relations between local banks.” And foreign.

Al-Alaq announces the launch of the era of digital transformation in Iraqi banks

Al-Alaq announces the launch of the era of digital transformation in Iraqi banks

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The Governor of the Central Bank, Ali Al-Alaq, announced today, Tuesday, the launch of strategic projects to support digital transformation, while indicating that the Central Bank: We issued controls to license digital banks in Iraq.

The video for this blogpost is below here:

Al-Alaq said in his speech during the fourth annual international scientific conference, entitled (Digital Financial Services - Challenges of Reality and Foresight of the Future): “The conference was organized in partnership between the Financial and Accounting Center and a number of universities and academic institutions, which gives an image that aims to discuss developments in the field of financial and digital services and the challenges they face, in addition to foreseeing the future of this vital sector.”

He added, "Since the late eighteenth century, the world has witnessed four inventions that changed its face: the first was the invention of the steam engine, the second was the electric engine and mass production, the third occurred in the middle of the twentieth century in the revolution of electronics and information technology, and the fourth began in the year 2000 and focused on artificial intelligence, the Internet, robotics, and big data."

He explained that "the Central Bank has paid great attention to digital transformation as one of its objectives within its third strategic plan for the years 2014 to 2026 to enhance the efficiency of banking work, improve financial performance, and meet customer needs in light of rapid technological development." 

He continued: "The Central Bank has taken great strides to support digital transformation by rotating the technical infrastructure and issuing regulations and instructions that contribute to enhancing financial inclusion," noting "the launch of strategic projects, including the instant payments project, local cards and unified payment gateways, in addition to issuing controls to license digital banks in Iraq, taking into account cybersecurity requirements and the risks associated with this transformation."

He pointed out that "the conference's objectives, which include identifying current challenges for digital financial services, anticipating future trends, and enhancing innovation and cooperation with relevant parties, reflect the urgent need for joint action." 

He stressed that "cybersecurity is one of the most important challenges facing us today, so the Central Bank launched projects to enhance cybersecurity by developing the tools and systems of the Cybersecurity Management Center, and adopting an advanced approach to enhance the cybersecurity of the Central Bank and the banking sector."

He added, "Artificial intelligence and its role in digitizing financial services has become a topic that cannot be ignored as it opens new horizons for innovation and improvement of services. We at the Central Bank of Iraq believe that financial technology completes the future of the financial sector, which requires enhancing efforts to prepare national cadres capable of absorbing and developing these technologies," stressing "the Central Bank's commitment to continuing its efforts to achieve financial digital transformation and enhance innovation and sustainability in the financial sector."

Parliamentary Finance: Digital transformation in financial services is necessary to achieve economic renaissance in Iraq

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The head of the Parliamentary Finance Committee, Atwan Al Atwani, confirmed today, Tuesday, support for enhancing digital transformation in the financial sector and encouraging innovation, noting that Iraq’s adoption of digital financial services is a necessity and not an option.

The head of the Parliamentary Finance Committee, Atwan Al-Atwani, said in a speech during the fourth annual international scientific conference, entitled (Digital Financial Services - Challenges of Reality and Foresight of the Future): “This fourth annual international scientific conference focuses on a pivotal issue that affects our economic and social future, namely digital financial services,” noting that “the world today is experiencing an accelerating digital transformation that has begun to affect various sectors of life, especially the financial sector, represented by the use of electronic payment systems, digital payments and phone applications, as the era of the digital revolution and the fourth industrial revolution is witnessing a development in the financial technology industry and considers it a priority, as it contributes to enhancing welfare and social and economic progress.”

He added, “In light of this development, the challenges we face as a country seeking to build a solid economic system based on innovation and sustainability are increasing. Perhaps the most prominent of these challenges is the expansion of digital infrastructure, which is an indispensable foundation for enabling digital financial services, as it requires large investments and well-thought-out policies, as well as achieving financial inclusion, as we must ensure that these services reach all segments of society, including remote and marginalized areas, and cybersecurity, which represents a major challenge in light of the increasing digital threats, in addition to the legislative and regulatory framework, which needs to be developed to keep pace with the rapid changes in this sector.”

He pointed out that "there is a need for a comprehensive renaissance to develop new digital financial technologies, by supporting the creation and implementation of digital financial innovations, stimulating emerging digital companies, and encouraging all sectors to use digital financial technologies, as their impact on the public and private sectors leads to reducing costs, increasing profitability, and better adapting to market requirements," noting that "international experiences have proven that digital transformation in the financial sector and the use of digital payments and financial technology enhance performance efficiency, simplify financial transactions, reduce bureaucratic bottlenecks, accelerate the pace of trade, investment, and comprehensive economic activities, raise economic growth rates, provide new job opportunities, and contribute to improving the quality of services."

He added, "From this standpoint, Iraq's adoption of digital financial services is a necessity, not an option, and we must all work together as legislative and executive bodies, private and academic institutions to achieve it, enhance digital financial culture and encourage its use, and increase the volume of investment directed towards the financial technology sector," indicating that "the Parliamentary Finance Committee affirms its keenness and commitment to supporting legislation and policies that contribute to enhancing digital transformation in the financial sector, encouraging innovation, and ensuring the protection of the rights of dealers. We also call for enhancing cooperation between the public and private sectors, and benefiting from the successful experiences of other countries."

Al-Atwani explained that “this conference represents an important platform for exchanging ideas, visions and experiences, and we hope that its sessions and recommendations will produce innovative and tangible solutions to confront challenges and envision a bright future for digital financial services in Iraq.”

Central Bank of Iran: Economic growth in Iran has fallen by almost half

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New data from the Central Bank of Iran on the state of the Iranian economy shows that GDP growth in the first half of this year has halved compared to the same period last year.

According to the Central Bank's statistics, the country's economic growth in the first half of last year was 5.3%, but it fell to 2.9% in the first six months of this year.

The details of these statistics indicate that economic growth in the summer of this year was lower than in the spring, reaching about 2.7% including oil and 2.3% excluding oil.

What is interesting about the Central Bank's statistics is that the country's economic growth in the past two years has been mainly the result of growth in oil exports, and not in sectors such as services, industry, agriculture, and other sectors that directly relate to people's livelihoods.

According to the Central Bank's estimates, the Iranian economy grew by 5% overall last year, and the main driver was the growth in the added value of the oil sector by 18.8%. In the first half of this year, the growth of the oil sector was 9.3%, which led to an increase in the overall growth of the national economy.

Statistics from commercial intelligence firm Kepler, along with tanker-tracking companies such as Wartexa, show that Iranian oil exports this year are up 34% compared to last year, and about 100% compared to the year before.

Iran exports 40% of the oil and gas condensates it produces and 7% of the gas produced.

The decline in Iran’s economic growth in the spring and summer of this year comes at a time when Kepler and Wartexa statistics indicate that Iranian oil exports in the fall of this year have decreased by 500,000 barrels (about a third) compared to the summer, which increases the possibility of a further decline in the country’s economic growth in the fall.

The slowdown in economic growth comes at a time when the government is targeting “an annual economic growth of 8%” in its seventh development program, which will last for five years starting this year.

While the International Monetary Fund estimates that Iran's economic growth rate will witness a continuous decline from this year until the next five years, where it is expected to fall to 2%.

Iraq Stock Exchange first in trading volume among Arab markets

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The Securities Commission stated today, Tuesday, that the Iraq Stock Exchange recorded significant progress according to a report issued by the Arab Monetary Fund, as it achieved a growth in trading volumes of 131.24% during the month of November 2024 compared to the previous month, thus topping the Arab financial markets in terms of growth rates.

The Chairman of the Securities Commission, Faisal Al-Haimus, said in a statement seen by Al-Eqtisad News: “This progress comes as a result of the ongoing efforts to develop the Iraqi Stock Exchange and enhance the investment environment in it,” adding, “We are proud of this performance, which reflects the confidence of investors and the effectiveness of the plans we are working to implement to enhance the role of the market in supporting the national economy.”

The Arab Monetary Fund report indicated that other Arab financial markets that witnessed remarkable growth included the Damascus Stock Exchange, which achieved a growth rate of 87.83%, followed by the Bahrain Stock Exchange with a growth rate of 68.22%. Other markets such as Egypt and Casablanca also recorded growth rates ranging between 54.25% and 19.08%.

Al-Haims added, "The report issued by the Arab Monetary Fund enhances the position of the Iraqi Stock Exchange among regional markets," indicating that "we will work to invest this progress to strengthen strategic partnerships and attract more local and international investments."

The Chairman of the Authority stressed that the Authority is committed to continuing to develop the market’s infrastructure and improve regulatory procedures to increase its attractiveness, which contributes to enhancing its role as a major driver of economic growth.

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Al-Fath: Washington exploited the "strategic framework" and Baghdad does not know about the movements of the American bases - Urgent

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Al-Fatah Alliance leader Adi Abdul Hadi said today, Tuesday (December 24, 2024), that Washington exploited the strategic framework agreement with Baghdad to pass its agenda in the region.

Abdul Hadi said in an interview with Baghdad Today that “the strategic framework agreement between Baghdad and Washington included many points related to economic, security and commercial dimensions, but the truth is that America exploited the agreement to pass its agenda by transferring forces inside Iraq and the region without any restrictions to the point that Baghdad does not know what is happening in the bases, whether Ain al-Assad or Harir in Erbil.”

He added, "The increase in American forces in Ain al-Assad or Harir must be subject to Baghdad's approval, but the truth is that Washington does everything and announces it suddenly through the media, pointing out that "America exploits what it calls the fight against terrorism to move military units without any restrictions, and there are convoys moving from Iraq to Syria and vice versa without any inspection."

Abdul Hadi pointed out that "America does not want to leave Iraq under any circumstances and its agenda is to stay and maintain its presence in Syria, and this explains the recent transfer of hundreds of soldiers to the Hasakah bases, stressing that "Baghdad must move and pressure towards the withdrawal of those forces in response to a parliamentary and popular decision because the presence of those forces means more instability in the region."

An informed source revealed, on Friday (December 20, 2024), the transfer of a large military convoy from Ain al-Assad to American bases in Syria .

The source said in an interview with  " Baghdad Today " , "A military convoy of American forces moved from Ain al-Assad, west of Anbar, to American bases located in the Syrian countryside of Hasakah, as part of measures to strengthen Washington's influence in a country witnessing a state similar to chaos following the fall of the Assad regime after a rule that lasted more than half a century ."

He added that "other forces coming from Al-Hareer in Erbil joined the force through the Al-Waleed border crossing towards Al-Hasakah in light of the presence of more than one American base stationed in geographical areas that control main transportation lines within the Syrian geography ."

He pointed out that "Washington's strengthening of its military bases in Syria shows that it is anticipating developments that may occur at any moment in light of the rapidly occurring changes and fears that they will lead to direct repercussions on the security of its bases, which prompted it to increase security reinforcements, especially the transfer of heavy military equipment ."

In a related matter, Syrian sources confirmed, on Wednesday (December 18, 2024), that American special forces began to be stationed in four locations near Al-Hawl camp in Syria .

The sources told Baghdad Today, "US Special Operations forces coming from Ain al-Assad, western Iraq, arrived this afternoon and began deploying in 4 locations near the Syrian al-Hawl camp ."

She added, "The deployment, which is the first of its kind in years, comes to support the allied Kurdish forces that are in charge of managing Al-Hawl camp, to prevent the escape of thousands of families inside it, most of whom belong to ISIS and are of different nationalities ."

She pointed out that "Washington is concerned about the developments of the armed clash between Ankara and its allies and the Kurdish forces in affecting prisons that hold hardened terrorists in addition to the Al-Hawl camp, which means adding another tension to an area that is already experiencing tension with the activity of ISIS cells in the Deir Ezzor and Homs deserts in the past few days ."

The collapse of Bashar al-Assad's regime in Syria has raised concerns about the fate of about 50,000 former ISIS fighters detained in camps in the north of the country, especially with the spread of chaos in the region and growing concern about the opening of these detention centers, which portends the return of the terrorist ISIS in the region .

On December 10, the Pentagon announced that its aircraft had struck more than 75 ISIS targets in Syria “in order to prevent the terrorist organization from carrying out external operations and to ensure that it does not seek to take advantage of the current situation to reconstitute itself in central Syria .”

Finance: We have achieved great progress in digital transformation, electronic payment and automation of customs procedures

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The Ministry of Finance announced today, Tuesday, that it has made great strides in digital transformation and electronic payment, indicating progress in the field of automating customs procedures to ensure financial sustainability and economic diversification.

The representative of the Minister of Finance / Undersecretary of the Ministry, Rebaz Muhammad Hamdan, said in a press conference followed by “Al-Daie News”, that “the ministry has made great strides in digital transformation, including money transfers, electronic payment, online loans and mobile banking services, which has increased the efficiency of accelerating financial transactions, reducing the need for cash transactions and providing services to people who cannot access traditional banking services.”

She pointed out that “innovation and development have been enhanced in this field and ways of cooperation between relevant parties in the field of financial technology have been discussed, and the most prominent solutions related to cybersecurity and future risks in this sector have been reviewed and how to take precautions against these risks.”


He continued that “the ministry has made progress in the field of automating customs procedures to ensure financial sustainability and economic diversification in accordance with the principle of integrity, transparency and combating corruption, and implementing programs in the Financial and Accounting Training Center to train employees on the use of new digital systems with the aim of enhancing digital skills in the ministry, improving financial performance and enhancing confidence in the financial system.”

Stopping the electronic platform.. Will it save the dollar or ignite the parallel market?

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Today, Tuesday, economic expert Abdul Rahman Al-Mashhadani highlighted the decision of the Central Bank of Iraq to stop dealing with the electronic platform for dollar transfers abroad, noting that “this decision comes in the context of regulating financial transfer operations and strengthening relations with American banks in a way that ensures greater transparency.”

Al-Mashhadani added during his interview with “Al-Jarida” that “the Central Bank was previously working to enhance bank balances to meet the requirements of foreign trade, but reports from the US Federal Reserve and the US Treasury revealed the existence of unverified transfers, which led to the smuggling of funds and the financing of terrorism.”

He explained that "reports showed that one of the banks transferred about six billion dollars in six months, a number that greatly exceeds the actual volume of imports to Iraq according to data issued by government agencies and international trade centers."

 

Al-Mashhadani pointed out that “the Central Bank resorted to the electronic platform to audit transfers, in cooperation with the Treasury and American banks, which led to a reduction in illegal transfers, but it also affected the stability of the exchange rate in the parallel market due to traders’ reliance on this market to finance their operations with the sanctioned countries.”

He stressed that “the Central Bank has allowed local banks for years to form partnerships with American banks to facilitate transfer operations, and now banks that have partnerships with correspondent banks, such as Citibank, continue their operations according to the new mechanism,” adding that “the decision does not mean stopping transfers, but rather regulating them, with the possibility of using alternative currencies such as the Turkish lira, the euro, the Chinese yuan, and the Emirati dirham.”

Al-Mashhadani concluded his speech by pointing out that “the negative impact of the decision on the exchange rate in the parallel market may be temporary, and the picture is expected to become clearer in the coming days.”

Central Bank of Iraq launches strategic projects to support digital transformation

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His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Al-Alaq, announced the launch of strategic projects to support digital transformation in the country.

In a speech during the fourth annual international scientific conference, which was titled (Digital Financial Services - Challenges of Reality and Future Foresight), His Excellency the Governor stressed that "the Central Bank has paid great attention to digital transformation as one of its goals within its third strategic plan for the years from 2014 to 2026 to enhance the efficiency of banking work, improve financial performance, and meet customer needs in light of rapid technological development."

His Excellency noted that "the Central Bank has taken great steps to support digital transformation by developing the technical infrastructure and issuing regulations and instructions that contribute to enhancing financial inclusion," referring to "the start of launching strategic projects, including the instant payments project, local cards, and unified payment gateways, as well as issuing controls to license digital banks in Iraq, taking into account cybersecurity requirements and the risks associated with this transformation."

His Excellency added that "cybersecurity is one of the most important challenges facing us today, so the Central Bank has launched projects to enhance cybersecurity by developing the tools and systems of the Cybersecurity Management Center, and adopting an advanced approach to enhance the cybersecurity of the Central Bank and the banking sector."

His Excellency stressed "the Central Bank's commitment to continue its efforts to achieve financial digital transformation and enhance innovation and sustainability in the financial sector."

 

Central Bank of Iraq
Media Office
December 24, 2024

Parliamentary Finance: The budget will be passed with integrity and fairness

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Member of the Parliamentary Finance Committee, Hussein Al-Saabari, confirmed today, Tuesday, that the proposed tables in the draft budget law are under study, and it is expected that they will be finally passed. 

Al-Saabari stressed in a statement to the Al-Maalouma Agency, “the necessity for the budget to be real and reflect everyone’s interests,” warning that “some amendments may benefit some parties at the expense of others, which is unacceptable.” 

He explained that "the budget must be fair and just for all Iraqis, while ensuring that resources are distributed in a way that achieves the public interest without prejudice to the rights of any party." 

He pointed out that "the draft budget law has not yet reached Parliament, and that the Council and its Finance Committee are ready to receive it as soon as it arrives." 

It is noteworthy that the House of Representatives previously hosted Prime Minister Mohammed Shia Al-Sudani and his deputies, the Minister of Planning, the Minister of Foreign Affairs, and the Minister of Interior, where the amendments to the budget for next year 2025 were discussed .

What are Iraqis waiting for after the news of the "sudden suspension" of the dollar selling platform by the Central Bank?

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Financial and banking expert Alaa Al-Fahd commented today, Tuesday (December 24, 2024), on the impact of the Central Bank’s suspension of the “platform” on the markets during the next stage.

Al-Fahd told Baghdad Today, "The Central Bank of Iraq worked during the previous period with a plan through a currency auction in the first phase, then establishing the electronic platform and intensive work to find correspondence methods between local banks and foreign banks with which we have commercial relations and their results in external transfers. Therefore, the bank announced some time ago that the platform will be stopped at the end of this year and there will be direct correspondent banks."

He explained that "this is a natural matter, as all central banks in the world are tasked with maintaining monetary policy, not selling currency. There is no central bank in the world that sells currency and mediates in buying and selling currency. This work is the responsibility and responsibility of banks and exchange companies. This is true and is a major challenge until the relations are direct commercial banking under the supervision of the Central Bank of Iraq."

He added, "Stopping the platform will not affect the local markets in terms of the dollar exchange rate, but there are those who are trying to spread rumors that this step will change the exchange rate, as the same dollar that the Central Bank of Iraq was selling through the platform will be sold to banks and banks that have relations with foreign banks so that the transfer is direct according to electronic transactions and monitoring, and for this reason the situation is under control and there is no fear of the impact on the markets."

Yesterday, Monday, economic expert Ziad Al-Hashemi revealed that the Central Bank of Iraq had suddenly suspended the dollar transfer platform before the scheduled date, without an official announcement, and without taking into account the interests of Iraqi companies and markets, in a move that is, to say the least, far from professionalism and transparency.

Al-Hashemi said in a post on the social networking site "Facebook", which was followed by "Baghdad Today", that "stopping the platform without an official announcement by the Central Bank may indicate that there is uncertainty and fear of the consequences of stopping the platform on the dollar exchange rates, and the lack of announcement may give the Central Bank an opportunity to evade and evade the decision to stop the platform and return to operating the platform, even temporarily, in the event that the dollar begins to rise to high rates."

Today

Parliamentary Finance Committee comments on the fluctuation of the dollar price and threatens to host the Governor of the Central Bank of Iraq

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Again?

Member of the Parliamentary Finance Committee, Jamal Kocher, described on Wednesday the fluctuation of the dollar exchange rate in the parallel market as "temporary", while he indicated that if the rise continues, we will head to host the governor of the Central Bank of Iraq.

Kocher told Shafak News Agency, "The Parliamentary Finance Committee is closely following up with the Central Bank the dollar exchange rate in the parallel market, and that the rise and fall of the exchange rate is temporary and not fixed."

He added that "if the rise continues during the coming period, there will be another opinion from the House of Representatives," adding that "the Finance Committee, if the rise continues, will head to host the Governor of the Central Bank in the House of Representatives."

The Iraqi market witnessed a significant increase in the exchange rate of the dollar against the Iraqi dinar, as it exceeded 150 thousand dinars for every hundred dollars, despite the government measures taken to control its price in the parallel market.

It is noteworthy that since the beginning of 2023, Washington has intervened to limit the smuggling of dollars from Iraq, which led to its price rising in the local market to a record level of 170,000 dinars per 100 dollars, due to the decline in the Central Bank of Iraq’s sales of dollars, before it declined again and the Central Bank returned to selling dollars at auction.

It is worth noting that currency smuggling is ongoing, despite controls on banks, and is carried out via bags transported overland to Turkey and Iran, after withdrawing dollars from the local market and not through the official dollar selling window. Specialists have called it “black transfers,” and it has become a phenomenon that has not been controlled at the moment.

In addition to the "black transfers", Iraq witnessed other operations to withdraw the dollar at its official price and sell it at the parallel market price, by exploiting the dollar granted to travelers, returning to Iraq and selling it to achieve large profits. The name "sailors" was given to those who do this work, especially some travel and tourism companies.

Expert diagnoses two reasons behind the rise of the dollar against the dinar in Iraq

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The economic and financial expert, Abdul Rahman Al-Mashhadani, attributed, on Wednesday, the reasons for the rise of the dollar against the Iraqi dinar to the rumor of the holidays and New Year's Day.

Al-Mashhadani said in an interview with Shafaq News Agency, "The promotion of stopping the platform is a major reason for the rise in the price of the dollar," indicating that "this rumor that spread showed that foreign transfers will stop."

He explained that "this rumor is false, as 97% of the transfers made through the window were transferred to banks that have correspondent banks in a way that enhances the balances. Also, the Christmas holiday is another reason for the demand for the dollar, as there is a lot of travel during these days."

Al-Mashhadani expected that "the situation will stabilize and the dollar will return to its normal status after the holiday."

The price of the dollar rose gradually in local markets, where it recorded 152,300 dinars for every 100 dollars in the Al-Kifah and Al-Harithiya stock exchanges, and 152,200 dinars for every 100 dollars in Erbil, the capital of the Kurdistan Region.