In response to currency pressures the State Bank of Vietnam or SBV has adopted a flexible monetary policy to maintain economic stability.
The central bank has intervened in the foreign exchange market by selling foreign currencies managing liquidity...
Additionally the SBV has shifted from a fixed to a floating exchange rate mechanism allowing the dong to fluctuate within a controlled range to better absorb external shocks. We can only hope the IQD will join the float option sooner rather than later.
The Minister of Finance participates in the annual spring meetings of the World Bank Group and the International Monetary Fund.
4/26/2025
Baghdad /
Minister of Finance Taif Sami Mohammed, Governor of the Central Bank of Iraq Ali Al-Alaq, and the accompanying delegation participated in the annual spring meetings of the World Bank Group and the International Monetary Fund, held from April 20 to 23, 2025 in Washington, to discuss global economic challenges, economic development, financial stability and other related issues, in addition to plenary sessions, seminars and side consultations. A statement by the Ministry of Finance said: "The Minister began her participation in the first meeting with the Executive Director of the World Bank,
Abdulaziz Al-Mulla, and discussed the economic situation in Iraq and the role of the World Bank in supporting Iraq in its reform programs, especially in the issues of maximizing revenues, reducing expenditures, digitization, electronic systems, infrastructure projects, energy and the environment." She also met with Hella Sheikh Rouho, Regional Vice President of the International Finance Corporation (IFC), and her accompanying delegation, and discussed with her the most important obstacles to investment in Iraq and ways to address them, as well as the most important projects supervised by this institution in Iraq in the transportation, energy and international trade financing sectors. She explained that the institution can support projects of the Iraq Development Fund. The Deputy Chairman of the Foundation also emphasized the support of the private sector and its projects, as well as the agricultural and industrial sectors in Iraq. The delegation, headed by her, held a high-level meeting with the World Bank Vice President for the Middle East, Othman Dawani. The meeting discussed the portfolio of projects funded by the World Bank, particularly the railway project in Iraq.It was agreed to review this portfolio to follow up on project implementation, identify work obstacles, and find solutions for their implementation and completion within the specified timeframe. The meeting also discussed the government's priorities for future projects, which the World Bank can support, with regard to renewable energy, waste management, and transportation projects, especially the metro, airports, and railways. The meeting also discussed the issue of human development in Iraq, which is a government priority, to be included in the World Bank's plans to allocate support and launch future projects in the education, health, employment, and social protection sectors. The statement added: "The Minister, along with the Governor of the Central Bank, attended the ministerial meeting chaired by the Managing Director of the International Monetary Fund, Kristalina Gurevichi, and attended by the Ministers of Finance and Governors of the IMF member countries. The discussions focused on the global economic situation, the increasing uncertainty and its economic impacts at the local and global levels, addressing challenges and measures to enhance resilience, identifying strategies to maintain the macroeconomy and manage debt sustainability, in addition to focusing on exchanging visions and experiences regarding economic reforms, enhancing the performance of government institutions, supporting and strengthening the private sector, and opening the way for them to be at the forefront of sustaining the economic resilience of the countries of the region.
The Iraqi delegation's agenda also included participation in the meeting held with the Managing Director of the International Monetary Fund, Dr. Mohamed Maait, during which the spotlight was placed on specific reforms to improve the performance of the financial sector in Iraq, and sharing updates between the two sides through activating areas of partnership with the Fund.
During the meetings, Finance Minister Taif Sami held a coordination meeting with the Head of the International Monetary Fund (IMF) Mission to Iraq, Jean-Jacques Killaume. The meeting addressed the prospects for Iraqi economic growth through the government's reform program aimed at strengthening the oil and non-oil sectors, and how to maintain economic stability in Iraq in light of the global economic conditions.
She also met with the Director of Technical and Financial Affairs and her technical team at the IMF, responsible for providing technical support and expertise to the Ministry of Finance. The meeting discussed steps to provide technical support to the General Tax Authority and the General Customs Authority regarding the electronic automation of their systems and reviewing amendments to their laws. Sami expressed her readiness to provide technical support and training on these systems for customs and tax employees. The meeting also discussed completing the requirements for the single treasury account and reviewing the procedures implemented by the Ministry of Finance in relation to this program.
In a related context, the delegation held a meeting with Jihad Azour, Director of the IMF's Middle East and Asia Department, where they discussed a range of economic issues and the most prominent financial policy forecasts.
For his part, the Regional Representative stressed the Fund's commitment to supporting all financial, banking, and monetary reform programs adopted by the Iraqi government.
Iraq's forex reserves depleted by over 7.4 billion USD in the first quarter of this year.
Economic expert Nabil Al-Marsoumi revealed, on Thursday, a significant decline in the Central Bank of Iraq’s foreign currency reserves during the first quarter of 2025, as a result of the decline in oil revenues resulting from the decline in global oil prices.
Al-Marsoumi said in a tweet followed by Al-Maalomah, “The Central Bank’s reserves decreased from $105.290 billion (equivalent to 136.877 trillion dinars) in December 2024 to $97.844 billion (127.198 trillion dinars) in March 2025.”
He explained that “reserves lost approximately $7.455 billion during the first three months of this year,” noting that “the main reason behind this decline is that the Central Bank’s sales of foreign currency were greater than its purchases from the Ministry of Finance, as a result of the decline in oil revenues.”
http://almaalomah.me
A high-ranking Iraqi delegation held talks with the World Bank and the International Monetary Fund (IMF) in Washington, D.C. According to a statement from the Ministry of Finance, received by the Iraqi News Agency (INA), Finance Minister Taif Sami Muhammad, Central Bank Governor Ali Al-Alaq, and their accompanying delegation participated in the annual Spring Meetings of the World Bank Group and the IMF held in the U.S. capital.
The meetings focused on global economic challenges, economic development, financial stability, and other related issues, including plenary sessions, seminars, and side consultations. The statement noted that Minister Sami commenced her participation with an initial meeting with World Bank Executive Director Abdulaziz Al-Mulla, during which they discussed Iraq’s economic situation and the World Bank’s role in supporting Iraq’s reform programs. Topics included revenue enhancement, expenditure rationalization
, digitalization, electronic systems, infrastructure, energy, and environmental projects. The Minister also met with Hela Cheikhrouhou, IFC Regional Vice President, to address key obstacles facing investment in Iraq and explore solutions. They reviewed major projects overseen by the IFC in the transport, energy, and international trade finance sectors, with the IFC expressing readiness to support projects under the Iraq Development Fund. The IFC emphasized its commitment to supporting Iraq’s private sector, as well as its agricultural and industrial sectors. The delegation, led by the Finance Minister, also convened a high-level meeting with Ousmane Dione, World Bank Vice President for the Middle East and North Africa, to discuss the World Bank’s project portfolio in Iraq, particularly the railway project. Both parties agreed to review the portfolio to monitor project implementation, identify challenges, and devise solutions to ensure timely completion
. Discussions also covered Iraq’s government priorities for future projects, particularly in renewable energy, waste management, and transportation infrastructure—including metro systems, airports, and railways. Minister Sami and Mr. Dione also discussed human development in Iraq, emphasizing its inclusion in the World Bank’s future agenda to allocate funding and launch projects in education, healthcare, employment, and social protection sectors. The Minister and the Central Bank Governor further participated in the ministerial meeting chaired by IMF Managing Director Kristalina Georgieva, attended by finance ministers and central bank governors of IMF member states. The discussions centered on the global economic outlook, heightened uncertainties, their impacts on national and global economies, resilience strategies, macroeconomic stability, debt sustainability management, and the exchange of experiences related to economic reforms, enhancing governmental institutional performance, and strengthening the private sector’s role in ensuring economic sustainability across the region. Ms. Georgieva reiterated the IMF’s humanitarian support for countries affected by conflicts, emphasizing the Fund’s commitment to assisting the people of Gaza, Yemen, Syria, and Sudan. She stressed the importance of implementing medium-term reforms, building economic buffers, and pursuing economic diversification to strengthen fiscal sustainability and macroeconomic stability. The Iraqi delegation’s agenda also included participation in a meeting with IMF Executive Director Dr. Mohamed Maait, where discussions highlighted reforms aimed at enhancing the performance of Iraq’s financial sector and opportunities to expand partnership areas with the Fund. On the sidelines of the meetings, Minister Sami held a coordination meeting with Jean Guillaume, IMF Mission Chief for Iraq, to discuss the prospects for Iraq’s economic growth under the government’s reform program, which seeks to strengthen both the oil and non-oil sectors and to maintain economic stability amid global uncertainties. The Minister also engaged with the IMF’s technical and financial affairs team to discuss progress on technical support provided to Iraq’s General Commission for Taxes and General Customs Authority, particularly regarding the automation of electronic systems and legislative reforms. The IMF expressed readiness to deliver technical support and training for customs and tax staff. Further discussions included completing the requirements for the Treasury Single Account (TSA) and reviewing the Ministry of Finance’s progress on this initiative. Proposals for technical assistance on pension and social security reforms were also discussed, with a report to be submitted to the Iraqi government outlining suggested reforms in this sector. The Iraqi delegation also met with Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, to discuss a range of economic issues and fiscal policy outlooks. Mr. Azour reaffirmed the IMF’s commitment to supporting Iraq’s financial, banking, and monetary reform initiatives. It is noteworthy that these annual meetings bring together central bank governors, finance and development ministers, private sector executives, civil society representatives, and academics to deliberate on key global issues, including the global economic outlook, poverty eradication, economic development, and aid effectiveness. The event also features workshops, regional briefings, press conferences, and other activities focusing on global economics, international development, and the global financial system.
FIREFLY:Keep in mind that Alaq is the one that's actually going to pull the trigger on the new exchange rate when they tell them to do it.
The only government official that can actually do that. Government officials do not control the rate so we have to see what Alaq says. This was from the deputy of the CBI.
FRANK: I don't see Alaq having that much authority. Granted I know he's in charge of it but he also has bosses like for example the board of directors who make all the decisions about the new exchange rate.
I just think that's important that we remember that.
