STATUS OF THE RV . PART. 4
😊Next let’s take a look at what recent annual event just occurred in Iraq. We can read about it in the article titled “BAGHDAD INTERNATIONAL FAIR: AN OPPORTUNITY FOR COMMERCIAL INTEGRATION WITH THE WORLD”. In the article it explains that the curtain fell on the 48th session of the Baghdad International Fair amidst a wide welcome from participants and visitors,
as the exhibition witnessed a great turnout from local and international companies that presented their latest technologies and products with the aim of finding a foothold in the Iraqi market.
If I were you I would take the time to read the entire article in the Articles Section of todays Newsletter. It is very informative how Iraq is still going about attracting investors. They are not going to give up to “Make Iraq Great Again”.
😊Next more bragging about Iraq’s large foreign reserves and how it is used to create stability in Iraq’s economy. The article is titled “FOREIGN RESERVES AND THE DOLLAR PRICE.. WHAT DO YOU KNOW ABOUT THEIR FUNCTIONS IN IRAQ?”
Experts in Iraqi economic affairs believe that the reserves of Mesopotamia and its investment portfolio, after the reserves recorded 106.7 billion dollars during the year 2024, are Iraq’s fortress and incubator in providing overall stability and protecting the national economy from external shocks that are
reflected in the Iraqi balance of payments, in addition to its role in stabilizing the general level of prices internally through intervention policies in the organized money market.
Iraq ranked third in the Arab world in terms of foreign exchange reserves for the year 2024, as this reserve is considered “very large” and “reassuring” because it represents 20-40% of the volume of the issued currency.
(Okay so let me correct what this article is saying. We have read in previous articles that the reserves reached as high as 120 billion so 106.7 billion is not do great news. It shows a drawdown of the reserves.
But still this number is very high and good news. Next, they already told us in previous reports that the reserves at 110 billion cover the volume of the issued currency and so why tell us today its only at 20-40% of the volume? I don’t get it? What changed or is the news just incorrect?)
QUASI SOVEREIGN WEALTH FUND: In this context, the financial advisor to the Iraqi Prime Minister, Mazhar Mohammed Salih, says that Iraq’s foreign reserves, their formation and management are considered a quasi-sovereign wealth fund (which is currently managed by a well-diversified investment portfolio in different currencies and short-term derivative investment instruments), and the aforementioned portfolio of reserves performs two basic functions at the same time.
😊Please take a look at article titled “IN LIGHT OF THE LIQUIDITY CRISIS… WHY DOESN’T IRAQ RESORT TO PRINTING MORE CURRENCY?” I think we can all learn something from this news. Iraq is facing increasing challenges due to the scarcity of cash liquidity, which negatively affects the markets and daily financial transactions.
While some are looking for quick solutions to overcome this crisis, the option of printing more local currency remains controversial, given the serious economic repercussions that may result from it. Yes, if they are not careful printing more money could and probably will cause inflation just like what the Biden administration did over his four years in office in the US.
You can’t print your way out of a crisis. You have to come up with real solutions and that take brains and leadership. But remember some of these remedies don’t happen overnight. They are a slow, staged implementation of a series of measures.
