Article: “Iraqi dinar falls a week before dollar selling platform closes"
Quote: "For days now, the Iraqi markets have witnessed a noticeable decline in the value of the Iraqi dinar against the US dollar...expected the rise to be temporary for a period of time, after getting used to stopping the platform and adopting the normal thing..
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The Central Bank of
Iraq has expanded the basket of foreign currencies that can be dealt with and ended reliance on the dollar only, and this diversity will reduce the dollar exchange rate in the parallel market and raise the value of the Iraqi dinar in the future."
Prime Minister's Advisor: Government Program Seeks To Raise Non-Oil Revenues To 20%
Advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Saturday, that non-oil revenues have witnessed a significant change in their contribution to budget resources, while he indicated that the government program seeks to raise them to 20%.
Saleh told the Iraqi News Agency (INA): "There are two tracks in the increase in non-oil revenues, which witnessed a significant change in their contribution to the federal general budget resources, as indicated by Prime Minister Mohammed Shia al-Sudani," indicating that "the first track is the increase in the growth rate of non-oil GDP to touch 6% annually,
which is a leap in the development of productive activities for non-oil economic sectors, headed by the transportation sector, digital communications technology, housing, construction, infrastructure, agriculture and the clear industrial transformation."
He added that "the other track is the development in the general budget resources other than oil resources as a result of the high discipline in tax and customs collection after introducing digital operations, automation and expanding the contact with neglected tax vessels," noting that "the progress achieved is consistent with the government program to seek to raise the share of non-oil revenues over time and within the economic reform packages by making it 20% instead of less than 10%."
Saleh explained that “this issue is related to the growth of non-oil GDP on the one hand and maximizing budget resources financially from traditional revenue sources, whether direct and indirect taxes and various related government revenues, which creates an integrated relationship between financial sustainability and economic sustainability over time, which is a supreme goal of the government program.” Prime Minister Mohammed Shia al-Sudani had confirmed in a special interview on Al-Iraqiya News Channel, followed by the Iraqi News Agency (INA), that “non-oil revenues reached 14 percent after they were 7 percent,” indicating that “unemployment decreased from 16.5 to 14.4, and the poverty rate decreased from 23 percent to 17 percent.”
In a recent video, the host discusses significant developments in Iraq’s economy, particularly focusing on the establishment of a sovereign wealth fund, the stabilization of the national currency, and the growth of the Iraqi Stock Exchange (ISX). The video highlights Iraq’s progress in overcoming foreign debt, diversifying its revenue sources, and enhancing transparency in real estate transactions. The host emphasizes the importance of these initiatives in attracting foreign investment, increasing economic stability, and fostering growth in various sectors such as energy and tourism. Additionally, the discussion touches on the activation of a verification system for foreign agencies, the ongoing efforts to address the black market for currency exchange, and the government’s collaboration with the Kurdistan region regarding oil exports. The video concludes with optimism about Iraq’s economic future, urging viewers to subscribe and stay engaged with ongoing developments.
Highlights
🚀 Sovereign Wealth Fund Initiative: Iraq is taking steps to establish a sovereign wealth fund, aimed at diversifying its investments and stabilizing the national budget.
🌍 Improving Foreign Debt Situation: The country has successfully extinguished about $100 billion of its pre-1990 foreign debts, paving the way for future economic growth
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💹 Iraqi Stock Exchange Growth: The ISX has experienced a remarkable trading volume increase of 131% in November, leading Arab financial markets in growth rates.
🔗 Transparency in Real Estate: A new electronic verification system is being implemented to enhance transparency in real estate transactions and reduce risks of forgery.
🌱 Non-Oil Revenue Expansion: Iraq is making strides in leveraging non-oil revenues, particularly through energy self-sufficiency and tourism, which are expected to substantially boost economic growth.
💵 Addressing Black Market Issues: The government acknowledges the impact of the black market on currency exchange rates and is taking measures to stabilize the situation.
🛢️ Oil Export Agreements: An initial agreement between Baghdad and the Kurdistan region has been reached to resume oil exports, which is crucial for the national economy.
Key Insights
📈 Establishment of the Sovereign Wealth Fund: Iraq’s move to create a sovereign wealth fund reflects a broader trend among resource-rich nations to utilize surplus revenues for long-term economic stability. By investing in diversified portfolios, the government aims to secure a more sustainable financial future, similar to successful models in Norway and the Gulf states. The introduction of blockchain technology may enhance transparency and efficiency in fund management, making it more attractive to investors.
🌐 Foreign Debt Extinguishment: The eradication of approximately $100 billion in foreign debts not only alleviates financial burdens but also signals to potential investors that Iraq is committed to fiscal responsibility. This step is crucial for attracting foreign direct investment (FDI) as it demonstrates economic stability and a shift toward a more business-friendly environment, which is essential for recovery and growth.
📊 Iraqi Stock Exchange Performance: The ISX’s 131% increase in trading volume shows increased investor confidence and interest in the Iraqi market. This surge is indicative of a robust financial environment, potentially leading to more IPOs and investment opportunities. The government’s ongoing efforts to improve market infrastructure and regulatory frameworks will be pivotal in retaining this momentum and attracting international investors.
🔍 Real Estate Transparency Initiatives: The activation of a verification system for foreign agencies marks a significant step toward enhancing transparency in real estate transactions. This system reduces the risk of fraud, thereby boosting investor confidence. As foreign investors are often wary of corruption and lack of transparency, these measures are crucial for fostering a secure investment climate in Iraq.
💡 Diversification Beyond Oil: Iraq’s focus on non-oil revenues, especially in sectors like tourism and energy, is a strategic move to build a more resilient economy. As the country works to become self-sufficient in energy production, the reduction of fuel imports will free up capital for other investments. This diversification is essential for reducing dependency on oil revenues, particularly in a volatile global market.
⚖️ Government Measures Against Black Market Activity: The government’s acknowledgment of the black market’s influence on currency exchange rates and the subsequent measures to combat it indicate a proactive approach to economic stabilization. By reinforcing regulations and increasing transparency in currency transactions, Iraq is likely to create a more stable economic environment, which is crucial for long-term growth.
🤝 Oil Export Agreements with Kurdistan: The agreement to resume oil exports between Baghdad and the Kurdistan region is a significant development that underscores the importance of collaboration in Iraq’s economic recovery. This partnership not only facilitates oil production but also serves as a step toward resolving long-standing disputes over revenue sharing, which can enhance overall national stability and economic growth.
In conclusion, the video encapsulates a transformative period in Iraq’s economic landscape, characterized by strategic initiatives aimed at fostering growth, stability, and investor confidence. The host’s insights reflect a cautious optimism about the future, emphasizing the importance of continued reforms and transparency in attracting foreign investment and promoting sustainable economic development. Viewers are encouraged to stay informed and engaged as these developments unfold, highlighting the potential for Iraq to emerge as a significant player in the regional and global economy..
Baghdad-INA Prime Minister Mohammed S. Al-Sudani held a series of separate meetings today, Friday, with the Head of the National Wisdom Movement, Mr. Ammar Al-Hakim; the Secretary-General of Badr Organization, Mr. Hadi Al-Amiri; and the Head of the Taqaddum Party, Mr. Mohammed Rikan Al-Halbousi. “These meetings are part of the Prime Minister’s ongoing discussions with political leaders and figures in light of current developments and events in the region, as well as addressing pressing issues and key matters related to Iraq’s national affairs,” stated the Media Office of the Prime Minister in a statement, received by The Iraqi News Agency-INA.
The statement added,"During the meetings, discussions covered the general situation in the country and the necessity of supporting the government in completing its program and achieving its main developmental objectives. Emphasis was placed on the need for unity, strengthened coordination, and collaboration among all political forces and blocs during the current phase to reinforce security and stability in Iraq". The statement further stated that “Discussions also focused on regional developments, particularly the situation in Syria, emphasizing the need to respect the will of the Syrian people and avoid interference in their internal affairs. The talks highlighted the importance of supporting regional and international efforts to restore stability in Syria, while also calling for decisive international and regional action to halt the violations and crimes committed by the Zionist entity against the Palestinian people. Additionally, the necessity of reinforcing the ceasefire agreement in Lebanon was strongly emphasized”.
Are they celebrating the distribution of the lower notes to the Iraqi banks in order to introduce them to the Iraqi citizens? (imo)
“His Excellency stressed that we have previously directed a special celebration for the issuance staff and safes, which comes in appreciation of their great efforts in the process of SORTING, PRINTING and ISSUING currency and other basic work tasks.” 12/26/24
*previously mentioned-next step in the plan is for the CBI to introduce the new lower notes to their citizens
CBI can We international investors along with the Iraqi citizens celebrate with you’ll & pop these champagne bottles already. We are READY!!! 🍾🍾🍾🍾🍾🍾