Thursday, December 12, 2024
BETWEEN FINANCE PURCHASES AND CENTRAL BANK SALES… DISCLOSING A $10 BILLION DIFFERENCE WITH COMMENTS OF MNT GOAT, 13 DEC
BETWEEN FINANCE PURCHASES AND CENTRAL BANK SALES… DISCLOSING A $10 BILLION DIFFERENCE
Where did it go?
A specialist revealed a difference of nearly 10 billion dollars between the Central Bank of Iraq’s sales and the Ministry of Finance’s purchases over the past 11 months.
Financial expert Ali Daadoush pointed out that there is a difference of (10) billion dollars in purchases from the Ministry of Finance compared to sales from the Central Bank of Iraq.
Daadoush said, in an interview with Al-Jabal, that “the Central Bank of Iraq sells the dollar through its window for about 72.385 billion dollars until November 2024, compared to purchases from the Ministry of Finance for about 62.435 billion dollars for the same period, and this means there is a difference of (10) billion dollars,” stressing the need to disclose the money “Where did it go and what is its fate?”
Daadoush explained that “the result is a decrease in the official reserves of the Central Bank, which amounted to nearly 106 billion dollars, according to data from the Central Bank of Iraq.”
He added: “But the important question is what about the year 2025 and the continued reliance on oil revenues under the new US administration and the possibility of intervening in the international oil market in various ways and means. This means that the Iraqi economic and financial situation will be in danger and unknown.”
Earlier, MP Sarwa Abdul Wahid called for the formation of a parliamentary committee to present its results to the House of Representatives regarding the difference in the budget tables, which amounts to 10 billion dollar or 8 trillion dinars.
SANDY INGRAM CC HIGHLIGHTS NOTES, 13 DEC
SANDY INGRAM CC HIGHLIGHTS NOTES
Summary
Iraq’s imports surged by 158% in Q1 2024 compared to Q1 2023, indicating mixed implications for the IQD and USD exchange rates.
Highlights
- 📈 Iraq’s imports increased by 158% in early 2024.
- 📊 Comparison made to same period in 2023.
- ⚖️ Mixed implications for the IQD and USD.
- 💰 Central Bank of Iraq (CBI) reported the surge.
- 🌍 Economic factors influencing currency rates.
- 🚦 Good and bad news for the Iraqi economy.
- 🔍 Importance of monitoring import-export dynamics.
Key Insights
- 📈 Surging Imports: A 158% increase in imports reflects growing demand for foreign goods, which could affect local production and currency stability.
- 📉 Impact on IQD: Increased imports may lead to a depreciation of the IQD if not matched by export growth, as more currency is required to purchase foreign goods.
- 💵 USD Demand: Higher imports typically increase demand for USD, as many transactions are conducted in this currency, potentially strengthening it against the IQD.
- ⚖️ Balance of Trade: A significant rise in imports without a corresponding increase in exports can worsen Iraq’s trade balance, impacting economic stability.
- 📊 Economic Growth Indicators: While the surge in imports may indicate economic growth, it also raises concerns about dependency on foreign goods, which could hinder local industries.
- 🔍 Monitoring Trends: Investors and analysts must closely monitor import-export trends to anticipate shifts in currency valuation and economic health.
- 🌐 Global Market Influence: Iraq’s import policies and global market conditions play a crucial role in determining exchange rates, making it essential to stay informed on international trade dynamics.
AL-SUDANI: IRAQ IS A KEY MEMBER OF THE INTERNATIONAL COALITION WITH COMMENTS OF MNT GOAT, 13 DEC
AL-SUDANI: IRAQ IS A KEY MEMBER OF THE INTERNATIONAL COALITION
Prime Minister and Commander-in-Chief of the Armed Forces, Mr. Mohammed Shia Al-Sudani, received today, Tuesday, Commander of the US Central Command, General Michael Kurilla, and his accompanying delegation.
The meeting witnessed discussions on cooperation and coordination between Iraq and the international coalition in combating terrorism and confronting extremism. The Prime Minister stressed that Iraq is a key member of this coalition and is committed to cooperating with the international coalition to confront and monitor terrorist groups in a way that preserves security and stability in the region. In return, Mr. Kurilla stressed the commitment of the international coalition to support Iraq in preserving its security and sovereignty against any terrorist threat.
The meeting also included discussions on the latest developments in Syria and the ongoing repercussions in the region, where Mr. Al-Sudani stressed the importance of respecting the free choices of the Syrian people and Iraq’s readiness to help the Syrians in these circumstances and the transitional phase.
His Excellency pointed out the necessity of preserving Syria’s security, the unity of its territories, the safety of its people, and the ethnic, religious, and social diversity it enjoys, stressing the importance of preventing any attack on any of the components of the Syrian people or its religious sanctities, and that Iraq will follow the course of events and the credibility of actions, not words.
Mr. Al-Sudani reiterated Iraq’s commitment to working with Arab and neighboring countries to help the Syrians and consolidate security and stability in the region.
(Does this sound like Iraq will join BRICS?)
MNT GOAT: I am told by my CBI contact that this is the precursor to the Project to Delete the Zeros..., 13 DEC
Mnt Goat
“THE TURNING POINT: IRAQ’S LEAP INTO THE DIGITAL ECONOMY”
This is...a shift towards better financial inclusion... Iraq’s transition to digital payments will unlock a range of economic benefits and I am told by my CBI contact that this is the precursor to the Project to Delete the Zeros...
and the plan to end the currency auctions of using dollars to electronic transactions by the end of the 2024...in about 3 weeks... We...look forward to the initiation of the Project to Delete the Zeros, if in fact the CBI does intend to reinstate the dinar back on FOREX...
Let’s all keep an eye for what happens when Iraq finally makes this huge transition away from using purely cash to all digital.
Parliament and government.. a race with the 2025 budget, 13 DEC
Parliament and government.. a race with the 2025 budget
The 2025 budget schedules in Iraq are witnessing a delay that is causing widespread controversy between the government and parliament, as the government has not yet sent the full details of the budget to the House of Representatives, which has raised concerns among members of the parliamentary finance committee about the deadline for approval.
The statements indicate that the reasons for the delay are related to reviews of financial schedules, especially those related to oil extraction expenses in the Kurdistan Region and the costs of projects funded in 2025.
The Financial Management Law requires the government to submit the general budget to the Council of Representatives 45 days before the beginning of the fiscal year, in order to allow the necessary time to discuss and approve it. Despite the clarity and explicitness of the legal text, no Iraqi government, including the current government, has committed to implementing this entitlement.
Speaking about this file, member of the Parliamentary Finance Committee, Mustafa Al-Karaawi, revealed the existence of legal and constitutional violations by the government in sending the budget law to the House of Representatives.
Al-Karawi said in a statement to Al-Maalouma Agency, “Article 77, paragraph two of the Federal Triennial Budget Law indicated that the government must send the budget tables before the end of the fiscal year,” indicating that “the government sent only one amendment to the text of the budget, which is the text of Article 12 related to the costs of extracting oil in the region.”
He added, "Not sending the schedules on time is considered a legal and constitutional violation, and if the government proceeds with amendments to the articles, there are many articles that need to be amended and to be fair to many groups," adding, " We recorded all of these observations in the session last Tuesday during the first reading of the amendment to the budget law.”
He explained that "his committee is working on re-amending the budget and sending it to the government to work on general amendments to the law so that it is fair to all segments of society and addresses the problems in the previous budget."
In addition, a member of the Parliamentary Finance Committee, Hussein Mounes, revealed that the budget amendments are subject to political amendments, not technical ones.
In a statement to Al-Maalouma Agency, Mounes said, “The government has a point of view in resolving the issues with the region and limiting oil smuggling operations by increasing production costs by $16 per barrel.”
He added, "During the discussion of the proposal, we raised several questions: Why was $16 set? Is it a technical or political consensus number?"
He pointed out that "the Parliamentary Finance Committee hosted the concerned parties and they confirmed to us that the issue is political and not technical."
He explained that "the government's proposal is to form an advisory body, and in the event of non-compliance, a committee of consultants will be formed to determine production costs."
He pointed out that "the Finance Committee determined that the amount would be an advance granted to the region and that a settlement would be arranged later. "
He added, "There are approximately 256 thousand barrels smuggled daily from the region with OPEC's permission. This file must be closed because it negatively affects government production," stressing that "the Finance Committee has reservations regarding the advances and loans granted to the region. "
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 . link
DINAR REVALUATION REPORT: " We are witnessing a paradigm shift" , 12 DEC
DINAR REVALUATION REPORT
There is a lot of news on dollar auctions and currency manipulation today as we are nearing the end of them.
They are trying to root out the corrupt elements to the maximum possible extent before they look to RV.
Though only 5 banks are having correspondent bank tieup in USA ,lot of other banks have time ups to deal in yuan,rupees,dirham and euro.
It will take a little more time for them to get used to the new dynamic,once the auctions stop .
Iraq is at the cusp of overhauling the dollar trade practices from the 2 decade long practice to a new and more efficient way.
The 2 decades of dollar smuggling could not be arrested even with the electronic platform which resulted in the theft of the century.
We are witnessing a paradigm shift.
lets hope the the new practice will bring peace, prosperity and harmony to the Iraqi people.
WOLVERINE: THE BANKS ARE READY TO GO!!, 12 DEC
Wolverine
The banks are ready to go.
Oil Reform is complete and get ready. Reno needs to start first.
Everything goes after Reno. We are nearly there.
It may begin today, or tomorrow when Trump rings the bell at the Stock Exchange.
We are about to cross that finish line. Just get ready everyone. I love you all. Wolverine
Al-Hakim: Kirkuk will get its due in the 2024 budget, 12 DEC
Al-Hakim: Kirkuk will get its due in the 2024 budget
The head of the National Wisdom Movement, Ammar al-Hakim, held a press conference in Kirkuk on Wednesday, during which he confirmed that support for the governorates will be present in the 2024 budget and Kirkuk will receive its due share.
Al-Hakim said during the conference, during his meeting with a number of members of the provincial council, heads of administrative units, directors of service departments, and security leaders in the province, in the presence of Governor Ribwar Taha, his deputies, and the head of the provincial council, Engineer Muhammad Ibrahim Al-Hafez, that “Kirkuk is an icon of Iraqi coexistence and the key to consolidating national unity.”
He stressed the "importance of administrative decentralization and the powers of local governments as a guarantee for the unity of Iraq," calling for "abandoning the rentier state and activating productive sectors."
He added, "Kirkuk is a model of coexistence and is prepared to activate agriculture, industry and tourism," indicating that "support for the governorates will be present in the 2024 budget and Kirkuk will get its due share."
He called for “fighting corruption, supporting youth, and spreading positivity,” stressing that “improving services enhances confidence in the political system and fortifies the country,” noting “restoring the powers of local governments according to the constitution and working to facilitate citizens’ transactions.”
Al-Hakim praised the “zeroing of Kirkuk’s stalled projects and stressed the importance of investing in health and education,” adding that “diversifying the economy is the solution to confronting the challenges of population growth.” link
MILITIAMAN CC HIGHLIGHTS NOTES, 12 DEC
MILITIAMAN CC HIGHLIGHTS NOTES
Summary
Iraq is making significant progress on salary payments and budget legislation, with key meetings and potential currency reforms on the horizon.
Highlights
- 📈 Increased Focus: The Kurdistan Regional government is prioritizing employee salary payments.
- ⚖️ Legal Obligations: The federal government is under pressure to resolve salary deficits by adhering to budget laws.
- 💰 Auction Deadline: The Central Bank’s remittance auction deadline is approaching on Sunday, potentially impacting currency exchange.
- 🔍 Enhanced Controls: The government is tightening controls on suspicious money transfers to stabilize the national currency.
- 🌍 Diplomatic Visits: Over 140 ambassadors are visiting Iraq, indicating increased international interest and investment opportunities.
- 🛣️ Development Road Project: The focus on this project signifies Iraq’s potential for economic growth and stability.
- 📅 Budget Preparations: Timely amendments to the budget law are critical as the fiscal year approaches.
Key Insights
- 🤝 Collaboration is Key: The Kurdistan Regional government and the federal government are working together to ensure timely salary disbursement, highlighting the importance of unity for economic stability.
- 💡 Focus on Currency Stability: Strengthening controls over financial transactions is essential for reducing currency manipulation, which can bolster investor confidence in Iraq’s economy.
- 🔄 Potential Currency Reform: The upcoming remittance auction could signal a shift away from dollar reliance, paving the way for greater use of the Iraqi dinar.
- 🏛️ International Engagement: The influx of ambassadors presents an opportunity for Iraq to showcase its progress and attract foreign investment, crucial for economic recovery.
- 💼 Investment Opportunities: The Development Road Project is key to revitalizing Iraq’s economy and making it a destination for international investors.
- 🔍 Compliance and Transparency: Enhanced monitoring of financial transfers aims to eliminate illegal market activities, which is vital for a stable economy.
- ⏳ Critical Timing: The simultaneous developments in budgeting and salary payments highlight the importance of timing in governmental reforms and economic recovery efforts.
Government advisor: Tighter controls on suspicious money transfers reduce exchange rate manipulation, 12 DEC
Government advisor: Tighter controls on suspicious money transfers reduce exchange rate manipulation
12/11/2024
Baghdad - WAA - Nassar Al-Hajj
Advisor to the Prime Minister, Mazhar Mohammed Salih, confirmed today, Wednesday, that tightening control over suspicious financial transfers reduces manipulation of exchange rates and the stability of the national currency, while indicating that limiting speculation reduces the use of foreign currencies in unproductive operations.
Salih said in a statement to the Iraqi News Agency (INA): "The Prime Minister's directives to the monetary and financial authorities stressed the intensification of inspection and control procedures for financial transfers and monitoring speculators, which remain of great importance in enhancing currency stability and reducing speculation that is harmful to the national economy, through mechanisms leading to combating illegal speculative activities, including specifically: tightening control over suspicious financial transfers that conflict with the rules of compliance and transparency in a manner that reduces illegal activities, such as money smuggling or manipulation of exchange rates, which maintains the stability of the value of the national currency."
He added that "taking strict measures against speculators and manipulators in the currency market strengthens confidence in the financial system and demonstrates the strength of government policy in protecting the national economy, and increases the confidence of citizens and investors in the country's financial system, in addition to directing resources towards the real economy to invest in the available opportunities in it, whether industrial, agricultural or service," noting that "by limiting speculation, the use of foreign currencies in unproductive operations is reduced, which helps to provide them to finance imports or beneficial investments."
He continued that "the protective measures against currency speculation come to limit the negative effects resulting from the impact of regional crises, through preventive measures that reduce the exploitation of economic and political crises in the region to achieve illegitimate gains, which enhances the stability of the local market."
Saleh explained that "the importance of limiting speculation and speculators' opportunities remains in enhancing the efficiency of the banking system through the role of monitoring financial transfers, which undoubtedly contributes to revealing the loopholes in the banking system and enhancing governance and transparency in it, as such measures are in line with the comprehensive reform plan for the financial and banking sector, and aim to enhance financial stability and prevent violations that negatively affect the national economy." LINK
BROTHERS TECHNOLOGY: The Czech meets the Iraq CBI cooperation in Digital transformation Iraq, 12 DEC
BROTHERS TECHNOLOGY
The Czech meets the Iraq CBI cooperation in Digital transformation Iraq 
spread your wings 
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alak, received His Excellency the Czech Ambassador to Iraq, Mr. Jan Shneidov and the Economic Attaché at the Embassy.
During the meeting, economic and banking relations were discussed and strengthened in the interest of the two countries, as well as cooperation in the field of training and capacity building for the financial and banking sector within the digital transformation process led by the Central Bank of Iraq with the support and integration with the Iraqi government. It was agreed to train a team of employees of the Central Bank of Iraq and the Ministry of Finance in the Czech Republic with the support of the Czech Ministry of Finance. Central Bank of Iraq Media Office December 11, 2024
Governor of the Central Bank of Iraq receives a delegation from the International Finance Corporation, 12 DEC
Governor of the Central Bank of Iraq receives a delegation from the International Finance Corporation
December 11, 2024
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, received a delegation from the International Finance Corporation, which included the Director of the Financial Sector of the Corporation in the region, Mr. Yousef Habash, and Mr. Bilal Al-Zughair, the Resident Representative in Iraq, the Financial Investment Officer, and the Head of the Advisory Department.
During the meeting, they discussed strengthening bilateral relations between the Central Bank of Iraq and the International Finance Corporation, the importance of cooperation between local banks and correspondent banks with technical support from the Corporation, and the development of Islamic banks operating in Iraq, in addition to the banking reforms carried out by the Bank in cooperation with the relevant authorities, especially the restructuring of government banks, and the role of international companies operating in this field (Ernst & Young and Oliver Wyman).
His Excellency the Governor discussed the proposal to establish a leasing company with local and foreign contributions, which is one of the financial systems used to provide financing for projects and individuals without the need to directly purchase assets such as machinery and industrial equipment, vehicles, offices, and warehouses. This proposal supports emerging projects and small and medium-sized companies looking for easy and flexible financing.
The meeting discussed the importance of launching Riyada Bank next year, which will support projects with small and medium-sized loans, in line with the government’s vision to support graduates and entrepreneurs and develop labor markets.
Central Bank of Iraq
Media Office
December 11, 2024
BARATEL: " THE RV HAPPENING NOW IN COUNTRY FOR IRAQI CITIZENS" , 12 DEC
Baratel
RV happening now in country for Iraqi citizens.
in country exchange rates are $3.70 in country rate for govt officials, $3.50 for dong.
They exchanged and got back dinar at higher rate.
FRANK26: "PARLIAMENT BUYS & STEALS VOTES., 12 DEC
KTFA
FRANK26: "PARLIAMENT BUYS & STEALS VOTES.".........F26
Economist: Budget amendment will raise the fiscal deficit
12/10/2024
Information/Special..
Today, Tuesday, economic expert Abdul Rahman Al-Mashhadani expected an increase in the deficit in the financial budget by the end of this year and Iraq's inability to pay its debts to international institutions during the coming period.
Al-Mashhadani said in an interview with Al-Maalouma Agency, “Amending new paragraphs in the financial budget law will lead to raising the total budget to 250 trillion, and this is beyond the available capacity, and the planned deficit rate is 64 trillion dinars.” , and will rise to 30 trillion by the end of this year, ” noting that “some proposals aim to gain electoral gains, considering that next year will witness the holding of general elections.”
He added that "all expectations indicate that Iraq's debt will increase in the coming years and may reach more than 70 percent of the gross domestic product, and thus will affect the payment of salaries, as well as the payment of interest on the debt and installments owed by Iraq to international institutions," indicating that "this matter entails major economic and political issues."
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 .
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