Iraq rejects free trade proposal with Iran, reveals special trade representative
Shafaq News/ On Monday, Iran's Special Trade Representative in Iraq, Farzad Piltan, disclosed that Iraq has declined to establish free trade relations with Iran.
Piltan, as reported by Mehr News Agency, highlighted the trade capacity between the two nations at $20 billion. However, due to the substantial gap between exports and imports with Iraq, the country hesitates to enter a free trade agreement.
During the first half of this year, Iran exported approximately $4.5 billion worth of goods to Iraq while importing around $150 million in goods from Iraq.
Piltan, the former West Asia Department of Iran's Trade Promotion Organization (TPO) director general, emphasized the potential for increased trade relations, covering goods, services, electricity, and gas.
Despite the significant trade capacity, Iraq is reluctant to negotiate for a free trade agreement or preferential tariffs. He expressed that the Iraqi government has not been receptive to discussions in these areas, pointing out that Iran faces stiff competition from China and Turkey in the Iraqi markets.
Piltan identified challenges in trade infrastructure, such as one-way transportation of goods, customs clearance at border crossings, and standards. He emphasized that resolving these issues could pave the way for stronger trade relations between the two countries.
There was a content creator who absolutely misinterpreted an article we need to clarify the mistakes that were made so people don't panic... Article "We are not thinking of returning the dollar to its previous price and the problem began under Saddam - Central Bank" When they say return it to the precious price, for some reason the individual thought that meant returning to the $3.22 rate. That's not what they're talking about. Nowhere in the article does it say the $3.22 rate. It just says return it to its previous price...that means the one before this one. That would be 1450 dinar. He's talking about they're not going to devalue the Iraq dinar.
If you are being forced to rely on the US dollar that strengthens the US dollar. Think supply and demand. If the US keeps going around forcing these countries to have a dual currency and to take the US dollar, people will rather have the US dollars.
They believe those dollars to be stronger but as people start to de-dollarize and get away from using the US dollars and start using their currencies that strengthens their currency and weakens the US dollar..
[Response to Guru Nader below]
What I'm about to talk about proves Iraq has potential to be much much richer than Kuwait and could have much more valuable currency than a Kuwait dinar ... [Guru] Nader is stating Iraq is 100, no, 1000 times richer than Kuwait. I've done a side-by-side comprising...
What makes Kuwait such a rich nation, Iraq absolutely has a lot more. But what's keeping Iraq behind is the following - ...Nader is right, when it comes to oil. Iraq has so much more than Kuwait does and Kuwait relies on their export of oil to make their country rich. The difference between Kuwait and Iraq is Kuwait has other things bringing money into their country besides oil.
They have things they can fall back on...GDP per capita...according to World Bank data Kuwait had a GDP per capita of approximately $29,000 in 2019 while Iraq was $5,000...Kuwait does share the wealth with the citizens, Iraq was not doing that. This substantial difference in GDP per capita clearly indicates Kuwait is wealthier on a person basis than Iraq.
Even thought that's true it doesn't mean Iraq can't turn around get their crap together because if they did they would easily smash Kuwait...Once the Iraqi people are becoming prosperous as well you're going see Iraq pass up Kuwait as far as being a rich nation...Kuwait's got their act together. We need Iraq to do the same thing.
The dinar will recover.. Iraq is approaching an “imminent end” to the dollar crisis before the end of 2023
Today, Monday (November 27, 2023), the Parliamentary Finance Committee commented on the possibility of the Iraqi government succeeding in controlling the dollar by the end of the current year.
Committee member Moeen Al-Kazemi told Baghdad Al-Youm, “The government and the central bank are working to end the dollar crisis once and for all, and there is great progress in this file and there is control over the market, as well as a gradual decline in exchange rates in the parallel market.”
Al-Kadhimi added, "We expect that the new year will witness a significant decline in dollar prices with the rise in the value of the Iraqi dinar, especially with the presence of government decisions and directives to address all the causes of the dollar crisis, and we expect that economic and financial stability will be strongly present at the beginning of next year."
Earlier, a senior official in the Central Bank of Iraq told Reuters that the country will ban cash withdrawals and transactions in dollars as of January 1, 2024, in the latest effort to limit the misuse of the country’s hard currency reserves in financial crimes and evade US sanctions on Iran. .
Mazen Ahmed, Director General of the Investment and Transfer Department at the Central Bank of Iraq, told Reuters that the aim of the step is to stop the illegal use of about 50 percent of the $10 billion cash amount that Iraq imports annually from the Federal Reserve Bank in New York.
This step comes as part of a broader campaign to stop the economy's dependence on the dollar after residents began to prefer the US currency over the dinar.
Ahmed said that people who deposit dollars in banks before the end of 2023 will be able to withdraw money in dollars in 2024. But dollars deposited in 2024 can only be withdrawn in the local currency at the official rate of 1,320 dinars to the dollar.
Official price
Ahmed said, "You want to transfer money? To do so. You want a card in dollars? Here you are. You can use the card inside Iraq at the official rate, or if you want to withdraw cash, you can at the official rate in dinars... but don't talk to me about dollars in cash anymore."
Iraq has already created a platform to organize bank transfers that make up the bulk of demand for dollars, and which has served as a hotbed for counterfeit receipts and fraudulent transactions that have leaked dollars to Iran and Syria, which are under US sanctions.
Ahmed stated that this system, which was put in place in coordination with the authorities in the United States where Iraq's reserves of $120 billion from oil sales are kept, is now almost airtight and provides dollars at the official rate to those who engage in legitimate trade activities such as importing food and consumer goods.
But he said that the misuse of cash withdrawals continues in ways that include travelers who are officially entitled to $3,000 but are looking for ways to circumvent the system.
Iraq relies heavily on its good relations with Washington to ensure that the country's oil revenues and funds are not subject to American oversight.
Dollar shortage
Many local banks have already limited cash withdrawals in dollars over the past few months, exacerbating shortages that have caused the exchange rate to continue to rise in the parallel market.
Ahmed said that some banks are suffering from a shortage of dollars because many people are trying to withdraw at the same time in light of a feeling of unease about the financial system, while some banks are also suffering from a shortage because they provided loans denominated in dollars that were then repaid in dinars.
He added that the Central Bank of Iraq also limited the amount of dollars it provides as part of an agreement with the US Central Bank to limit cash liquidity and shift to electronic payments.
Ahmed pointed out that the Iraqi Central Bank expects the dinar to lose more of its value as the new measures enter into force, but he added that this is an acceptable side effect of formalizing the financial system, noting that the Iraqi Central Bank provides dollars at the official exchange rate for all legitimate purposes.
He said that the cost that Iraq is bearing today is not compared to the value of achieving this goal.
Ahmed stated that the financing operations that are carried out transparently and legally through the bank and at the official rate are the most important and therefore nothing else matters, even if the exchange rate reaches 1700.
He continued, saying, "The cost we bear now is nothing compared to achieving this goal, in all honesty, as long as the legitimate channels are established. What matters is even if the exchange rate reaches 1,700... because the legitimate purpose is the official price." link
Central Bank Governor: The size of the monetary supply amounts to more than 100 trillion dinars, 70 percent of which is in circulation
Today, Monday, the Governor of the Central Bank of Iraq, Ali Al-Alaq, denied the existence of a scarcity in the stock of the Iraqi dinar, and while determining the size of the dinar’s monetary mass and those in circulation, he revealed a broad strategic plan to expand the transition to electronic payment.
Al-Alaq said in a statement followed by “Earth News” that “the state’s financial situation depends in general on its imports and is currently at a good level as a result of the rise in oil prices,” stressing that “it is important to invest this money in a way that accelerates opportunities for construction, advancement and development.”
He added, “The positive thing about the government’s work is that it is moving in this direction, and there is great emphasis and focus on completing projects,” noting that “there are a large number of projects that were stalled and stalled for many reasons, and there is work to address the situation and accelerate the projects, especially since they are mostly related to infrastructure.” Services, etc., and the government gives this matter great attention, priority, and diligent follow-up by the Prime Minister personally.”
He pointed out that “there is a wide movement regarding the demand for investment projects in the country,” noting that “a large number of companies and countries have begun to conduct studies and have identified some projects to start in Iraq.”
Al-Alaq said, “These are positive indicators that benefit from the state of stability in the country and the stability of the financial and monetary conditions,” pointing out that “the size of the monetary mass or the exported currency amounts to more than 100 trillion dinars, 70 percent of which is in circulati on.”
He denied, “There is a scarcity in the stock of the Iraqi dinar,” adding, “We are responding to the demand for the Iraqi dinar or in relation to the dollar in dinar initiative for the purposes of the Ministry of Finance.”
He stressed that “the trend towards electronic payment aims to reduce the phenomenon of the cash economy, which has major negative effects on the Iraqi economy and consequences and effects with regard to managing liquidity and the costs of this liquidity from printing currency and controlling it,” explaining that “the government’s trend is to switch to electronic payment to reduce This phenomenon".
He stated, “There are trends at many levels in this context, and there is direct coordination between the government and the Central Bank. Electronic payment experiments and tools have begun to be circulated in many areas, and there is a broad and strategic plan at the Central Bank to expand in this field,” calling on citizens to “keep abreast of the developments that have occurred and are occurring.” In all countries of the world, to reduce the phenomenon of using cash.”
He pointed out that “keeping pace with development serves the citizen, the state, and the economy,” pointing out that “holding cash and hoarding only carries risks, and deprives the citizen of having these amounts in his accounts and being able to benefit from them in many areas.”
He noted that “the world is heading towards digital transformation, which is considered the fourth revolution in the world, and we must be close to these transformations to achieve the goals, objectives, benefits and positives that come from them.” link
Article: "Central Bank: There is no scarcity of dinar stocks and the monetary supply exceeds 100 trillion" Quote: “the size of the monetary mass or the exported currency amounts to more than 100 trillion dinars, 70 percent of which is in circulation.”
Article: "The media advisor to the Prime Minister, Hisham Al-Rikabi, confirmed...Friday, that the dollar battle is nearing its end" X Tweet: "The reform plans for the financial and banking system undertaken by the government and the Central Bank of Iraq aim to build strong foundations for the stability of the economy and pave the way for creating a suitable climate for investment, and end the eras of illegal trade, dollar smuggling, and speculative operations in market. In short, the battle for the dollar is nearing its end."
Article: "Central Bank Governor: Washington responds to all that Iraq needs in terms of dollars and a meeting with it next month" Quote: "Al-Alaq said in a press interview that “the Iraqi Central Bank will hold a meeting with the US Treasury and the Federal Reserve early next month in Dubai, noting that “radical steps will be taken within the framework of reorganizing trade on the right foundations,” noting that the electronic platform will be completed early next year.”
Article: "US approval to increase the dollar balances of 10 Iraqi banks"
Quote: "The source explained that this agreement came in light of the recent meetings held by the Central Bank of Iraq with the American side, which resulted in an increase in the number of banks that can directly enhance their dollar balance to 10 banks, 5 of which are through Citibank, and the other five are through JP Morgan Bank."
Article: " The dollar in Iraq.. Baghdad is planning “permanent solutions” with Washington, and Parliament describes the dialogues as “successful”
Quote: " Monday (November 20, 2023), an informed source reported an expected meeting between the Central Bank of Iraq and the US Treasury Department next week."
Article: "An upcoming meeting between the Iraqi Central Bank and the US Treasury next week”
Quote "...new meeting between Iraq and the United States of America regarding the dollar...
On (last September 19) in New York, Iraqi Prime Minister Muhammad Shia al-Sudani informed the US Treasury Under Secretary of the expansion of his government’s work in reducing money laundering operations, while the latter indicated that the confidence of global financial institutions had been restored."
Article: "Iraqi Banks Association: The dollar will fall to the rate of 1,400 dinars... and the date is expected" Quote: " The advisor to the Iraqi Banks Association, Samir Al-Nusairi, expected dollar prices to fall to 1,400 dinars during the first quarter of next year. "
Article Written by: Baqir Jabr Al-Zubaidi - former Minister of Finance "The ongoing dollar crisis"
Quote: "The dollar crisis is a policy crisis of the continued American threat of sanctions, accompanied by the continued bleeding of the currency by private banks that are protected by some influential people, and this conflict is paid for by the citizen...
Solutions exist, and during our tenure at the Ministry of Finance (2006-2010), we succeeded in increasing the value of the dinar from (1,500 dinars to the dollar to 1,170 dinars to the dollar). We were planning to reach (1,000 dinars to the dollar) and then raise the zeros so that the dinar was equal to the dollar."
Al-Fateh: We have strong economic factors to move towards countries other than America, 27 NOV
The representative of the Al-Fatah Alliance, Ahmed Al-Musawi, confirmed on Monday that Iraq has many elements of economic power that enable it to cooperate with other countries, stimulate commercial activity, export oil, exchange goods and merchandise, and distance itself from America and its hegemony.
Al-Moussawi told Al-Maalouma, “Iraqi funds should have been liberated and the government had the authority to benefit from them to serve the country, after leaving Chapter Seven, which greatly restricted Iraq.”
He added, "The government has many economic and political papers, and there are many countries that have very strong economic activities and have announced the opening of the doors of cooperation with Iraq and the conclusion of contracts and agreements to serve economic interests."
He stated, "There is a great possibility for Iraq to dispense with cooperation with the American side and move toward other countries, so that through this cooperation, oil can be exported and currencies, goods, and commodities can be exchanged."
Al-Moussawi pointed out, “Exiting the aforementioned clause allows Iraq to control its funds, but there is political weakness regarding the failure to liberate Iraq’s funds and their remaining with America.” link
Experts: Electronic payment raises the value of the dinar
The first 11/27/2023 Baghdad: Hoda Al-Azzawi Experts and specialists in financial and economic affairs believed that the electronic payment system would preserve the monetary supply of the Iraqi dinar and raise its value against the dollar in later stages.
The Prime Minister’s Advisor for Economic and Financial Affairs, Dr. Mazhar Muhammad Saleh, explained to “Al-Sabah” that “the cash payments system is linked to a high degree of certainty whenever payments are made by electronic or digital means, which provides an accurate liquidity indicator for the banking system and reduces the degree of ambiguity.” And the uncertainty in banking liquidity.
The payments system also provides sufficient information about the flow of the cash mass into the banking system, and the amounts of paid and accumulated amounts are clear and their actual balances are stated at all times during the banking working day.”
He pointed out that "in light of monetary systems that rely on direct cash payments, bank liquidity management policies surround themselves with additional hedges of disrupted liquidity in order to anticipate liquidity risks, which disrupts part of banking operations and credit in particular," explaining that "as payments increase..
Electronic behavior as a behavior in daily dealings, the management of the cash mass and its flow in the banking system will be subject to the rule of clarity in cash management, and then direct bank credit towards profitable areas, which will provide efficient use of the cash mass, in addition to that the percentage of cash leakages outside the banks will decrease, which means that A structural change in the behavior of cash demand among individuals and banks will trend toward decline, due to dealing with electronic payment systems that are linked to bank accounts.”
He added, “Thus, the development of the payments environment and its transition from a direct cash environment or cash payment in payment and receipt operations to the use of electronic payment will, in all circumstances, restrict all local cash payment in currencies (other than the dinar) and spare the economy and distance its transactions from cash payment in foreign currency, because systems Digital payments do not allow transactions in the local economy in anything other than the national currency,” he explained, explaining that “in Milan, the economy will move its transaction payments to the (digital dinar) instead of the (cash dollar), whose transactions in internal settlements are legally rejected completely.”
For his part, the head of the “Regional Center for Studies”, Ali Al-Sahib, indicated in an interview with “Al-Sabah” that “electronic collection or electronic payment is a step that the government adopted not long ago, but it has not been implemented yet, and the Iraqi citizen in general lacks a culture.” Electronic payment, even though most countries in the world, including neighboring countries, have been dealing with it for years.”
He explained, "Despite this, if this practice is applied in Iraq, it will have both negative and positive paths. As for the positive, it is the abolition of cash and the preservation of storage, as well as preventing the banknote from being damaged and possibly stolen or lost, as well as reducing cases of corruption in gas stations and elsewhere, not to mention waste." The time in the process of receiving the money, disbursing it, etc.
He added, “As for the negatives of the process - they lie in the citizen’s ignorance and unwillingness to deal - in addition to the fees for obtaining the card and other negatives.”
He added, "It is remarkable that Iraq consumes approximately (30) million liters of vehicle fuel daily. These are very large quantities and require government effort to spread the culture of public awareness to enter this new stage," indicating that "forcing the citizen to use electronic payment may confuse The daily scene and reality raises complaints and complaints from citizens, and the best solution is for the state to give the citizen the choice to follow one of the two methods until he gets used to electronic payment.” https://alsabaah.iq/87963-.html
There is so much happening…..It's shaking out to be an interesting few days. Article: “Iraq Financial Delegation heads to Ankara to discuss trade with Turkey” this is more Iraq coming on the International scene. They continue to function as if they are already a member of the World Trade Organization. They are busy making regional alliances.
In Iraq: “Change of business dealings- Iraq replaced dollar with currencies to stabilize the dinar.” In other words “De-Dollarization” They want to be totally dollar free by Jan. 1st. All part of creating a basket of currencies that will help support the dinar.Something to measure against other than the dollar
Here is one more...bank story: This person went to Krogers…and what they had installed in Krogers will surprise you. A currency redemption machine that reads foreign currency...
And they are building a brand new BOA right across the street with no drive through windows …in the lobby there are no tellers...in the lobby are 2 big tables…and there are 10 offices down each side of the building. This is a totally new format and will be open next week...They are expecting people in with foreign currency. How many people roll around with foreign currency? I think this is a huge tell on what they suspect is coming…
Adviser To The Prime Minister: The Electronic Payment System Will Raise The Value Of The Dinar Against The Dollar
Time: 11/27/2023 Read: 2,158 times {Economic: Al-Furat News} Mazhar Muhammad Saleh, financial advisor to Prime Minister Muhammad Shiaa al-Sudani, said that the electronic payment system will preserve the monetary supply of the Iraqi dinar and will raise its value against the dollar in later stages.
Saleh explained, in a press statement, that “the cash payments system is linked to a high degree of certainty whenever payments are made by electronic or digital means, which provides an accurate liquidity indicator for the banking system and reduces the degree of ambiguity and uncertainty in banking liquidity. The payments system also provides sufficient information.” The flow of cash into the banking system, the clarity of the amounts of paid and accumulated amounts, and a statement of their actual balances at all times during the banking working day.
He pointed out, "In light of monetary systems that rely on direct cash payments, bank liquidity management policies surround themselves with additional hedges of disrupted liquidity in order to anticipate liquidity risks, which disrupts part of banking and credit operations in particular."
He stated, “As electronic payments increase as a behavior in daily dealings, the management of the cash mass and its flow in the banking system will be subject to the rule of clarity in cash management, and then directing bank credit towards profitable areas, which provides efficient use of the cash mass, in addition to reducing the percentage of cash leakages outside Banks will decline, which means that a structural change in the behavior of cash demand among individuals and banks will lead to a decline, due to dealing with electronic payment systems that are linked to bank accounts.”
Saleh added, “Thus, the development of the payments environment and its transition from the direct cash environment or cash payment in payment and receipt operations to the use of electronic payment will, in all circumstances, restrict all local cash payment in currencies (other than the dinar) and spare the economy and distance its transactions from cash payment in foreign currency, because systems Digital payments do not allow transactions in the local economy in anything other than the national currency.” LINK
Economic Council issues decisions to enhance Baghdad's infrastructure
Shafaq News / The Ministerial Economic Council announced its approval on Monday to initiate two projects, the Sewage Systems of Nahrawan and Saba Al-Bor, aimed at improving the service infrastructure in the outskirts of Baghdad.
The council also decided to reduce the prices of supplying white oil to the residents of the Kurdistan Region and agreed to exclusively import branded pharmaceutical products.
According to an official statement, the Minister of Foreign Affairs and Deputy Prime Minister Fuad Hussein chaired the thirty-sixth session of the council. The session included the Deputy Prime Minister and Minister of Planning, as well as the Ministers of Finance, Trade, Agriculture, Industry, Labor, Social Affairs, the Secretary-General of the Council of Ministers, the Governor of the Central Bank, the Head of the National Investment Commission, and advisors to the Prime Minister for economic and legal affairs, along with the Deputy Minister of Oil.
The council hosted the Governor of Baghdad to further discuss the Nahrawan and Saba Al-Bor sewage projects and approved their commencement to enhance the service infrastructure in Baghdad's outskirts.
Moreover, the council decided to reduce the price of supplying white oil to the Kurdistan Region provinces to 250 dinars per liter from 500 dinars per liter due to the arrival of the winter season.
The statement also indicated that the council approved the importation of pharmaceutical products exclusively from companies with branded medications (Brand), with coordination to be established with the Ministry of Industry regarding fees for protecting national products.
Regarding the principle of cumulative voting for joint-stock companies, the council opted to select the voting mechanism used to elect company boards for the general body without enforcing the principle of cumulative voting. It also endorsed the continued preparation of liquid gas by the Ministry of Oil for the designed facilities.
Iraq Charts New Course for Economic Development and Global Relations
In a bold move to reorient Iraq’s economic trajectory, Prime Minister Mohammed Shia’ Al Sudani has pledged his government’s dedication to fostering a network of global economic ties. This was revealed during his address at the inaugural conference for the Five-Year National Development Plan, a collaborative effort between the Ministry of Planning and the United Nations Development Programme (UNDP).
Redirecting Development to the Right Path
Al Sudani acknowledged the developmental disruptions Iraq has faced since the 1980s, resulting from wars, sanctions, and counter-terrorism operations. He stressed the urgency of his government’s mission to guide development back on track, highlighting the need to expedite over 7,000 existing projects and initiate new ones with significant developmental and service potential. Key interests include infrastructure, clean energy, development roads, and the Al Faw Port.
Breaking Free from a Rentier Economy
Al Sudani outlined the government’s plans for economic diversification, including the establishment of the Iraqi Development Fund and the ‘Riyada’ initiative. The latter aims to empower youth to channel their ideas into productive sectors. The government is also offering sovereign guarantees to stimulate the private sector, with a goal to break away from the rentier economy model.
Iraqi Economy on the Global Stage
The Prime Minister announced a 2024 population census and enumerated steps taken towards achieving economic and developmental goals. These include reforming the banking sector, automating economic and service activities, endorsing electronic payments, and emphasizing digital transformation. Concurrently, Saudi Investment Minister, Khalid Al Falih, declared plans to fast-track the creation of a free economic zone with Iraq at the Arar border area. This tax-free zone aims to serve investors from both nations, potentially creating a myriad of investment opportunities.
Enriching Economic Relations
Meanwhile, China and Iraq have inaugurated the Iraqi-Chinese Business Council in Baghdad to bolster trade and investment, following a trade exchange worth approximately $53 billion in 2022. China has pledged support for Iraq’s Development Road project, further enhancing bilateral economic relations. Iran, too, sees potential for boosting annual trade with Iraq to $20 billion. Additionally, a financial delegation from Iraq is set to depart for Ankara to discuss and stabilize trade exchange between Iraq and Turkey.
Al Sudani’s announcement signifies a new chapter in Iraq’s economic journey as it seeks to strengthen international relations and accelerate domestic development, grappling with the remnants of its turbulent past.
JP Morgan Chase is now actively involved with the Iraqi dinar. They may doubt it half the time but the other half they guide you. The Chief Executive Office of Chase Mr. Diamond released a document last month saying his bank is now supporting the Iraqi dinar 100% and he's building Chase Banks in Iraq. The employees of Chase do not know what's going on in order to protect the corporation that will soon be exchanging the Iraqi dinar in America.
Article: "The dollar in Iraq.. Baghdad is planning “permanent solutions” with Washington, and Parliament describes the dialogues as “successful”. THE SOLUTION IS NOT A PROGRAM RATE!
Two months ago a quick little pip movement took the exchange rate of the Iraqi dinar from 1460 to 1320...They were supposed to make the next step.
I told you at that time, 'Now that they've made this movement, let's say 1320 to 1, the next one will be 1,000 to 1 and when they do they will be in position to lift the three zeros and float the currency in a basket...'
Article quote: "Solutions exist, and during our tenure at the Ministry of Finance (2006-2010), we succeeded in increasing the value of the dinar from (1,500 dinars to the dollar to 1,170 dinars to the dollar). We were planning to reach (1,000 dinars to the dollar) and then raise the zeros so that the dinar was equal to the dollar." What?!?
Word for word of what we taught you...This is the last step. IMO the CBI is going to be going to the US Treasury next week...This is exactly what we want next.
Question: " What if you lost your receipt for your dinar?"
Try to get ahold of the individual you bought it from. If they have records...maybe they might help you. My broker does not...If you lost it. Oh, dear. That can be a problem financially for you because you want to hold your currency for one year...
Because...your [tax] bracket is whatever the government says but if you don't have a receipt or if you don't hold it for a year and you go exchange...that's a different tax bracket. They're going to really bite you hard. It's the difference between 40% tax and 20% tax...[NOTE: Consult your tax professionals at the appropriate time to determinate proper tax for your unique circumstances]
The Iraqi dinar is now going to enter a basket in a float and that's why the CBI has been talking...about the basket and coins... All they talk about is the exchange rate of the Iraqi dinar, about the black market going away andthe only way that all of this can happen is if we have a new exchange rate and a new currency to match it . They are preparing [Iraqi citizens]. This is the monetary reform at its highest point..
In a first-of-its-kind initiative, Iraq has launched financial investigation procedures, an effort commended by Faik Zidan, the President of the Supreme Judicial Council of Iraq. The move is seen as a significant stride in addressing the severe economic and social threats posed by money laundering crimes worldwide.
Combatting Money Laundering
Zidan shed light on Iraq’s success in seizing funds originating from money laundering, demonstrating the nation’s dedication to upholding international standards in combating such crimes. The country’s fight against financial crimes is not just within its borders, but it is part of a global effort to deter, detect, and disrupt money laundering activities.
Strengthening Partnerships and Auditing Capabilities
Emphasizing the crucial role of partnerships with pertinent authorities, Zidan underscored the need to bolster specialized sectors and law enforcement agencies. Such collaborations, he said, are essential in tackling the intricacies associated with financial crimes auditing.
Security Concerns Over Stolen US Military Equipment
Meanwhile, a separate issue has raised concerns about the security situation in the region. US military investigations have revealed that sensitive weapons and equipment, including guided missile launch systems and drones, were stolen from US outposts in Iraq and Syria. The thefts, occurring from 2020 to 2022, have led to the misappropriation of hundreds of thousands of dollars’ worth of military gear. The Pentagon, it seems, may not be fully aware of the extent of these thefts.
These revelations come in the wake of an audit dating back to 2020 that found the Special Operations Joint Task Force–Operation Inherent Resolve had not adequately accounted for $715.8 million worth of equipment bought for local proxies. At least four significant thefts and one loss of US weapons and equipment were reported in Iraq and Syria during this period.
The increasing complexities of the financial and security landscape in the region underline the importance of Iraq’s initiative to enhance its financial investigative capacity, a critical tool in preventing further financial crimes and potential misuse of funds.
Iraq Launches Major Banking Reform with Focus on Al-Rafidain Bank
The Prime Minister of Iraq, Mohammed Shia’ al-Sudani, has taken a firm step towards revamping the country’s banking sector. The focus is on Al-Rafidain Bank, which is set to become the springboard for a comprehensive reform plan. This development comes as part of the government’s strategic alignment with the Sustainable Development Goals 2030 and is seen as a significant move towards economic diversification and digital transformation.
Launching the Reform
The Prime Minister’s Media Office confirmed that discussions took place around a well-thought-out banking reform plan. The overhaul begins with government banks, which are the backbone of the banking sector in Iraq, accounting for 80% of the total institutions. The reform of Al-Rafidain Bank represents the first phase of this ambitious process.
Ernst & Young’s Role
Global professional services firm Ernst & Young has been entrusted with the task of leading the reform of Al-Rafidain Bank. The firm presented its vision for the bank’s overhaul, outlining a plan that requires an implementation period of eight months. This involves a comprehensive review and evaluation of the bank’s operations, along with structural administrative reforms.
Reforming for the Future
The core of the reform plan is the provision of integrated banking services to citizens and corporations. The aim is to revolutionize the banking experience in Iraq, making it more user-friendly and efficient. The plan also aligns with the government’s commitment to good governance, combating corruption, and making a positive impact on vulnerable sections of society. It is part of a broader strategy that includes conducting a population census in 2024, further indicating the government’s commitment to comprehensive socio-economic reform.