Report: Iraq maintains its credit rating thanks to political stability and the tripartite budget
The Ministry of Finance confirmed on Tuesday that Iraq maintained its credit rating of B-/B with a stable outlook, according to S&P.
According to a statement released by the ministry, Iraq has maintained its credit rating of B-/B with a stable outlook in the latest report by Standard & Poor’s (S&P) credit rating agency. The report emphasizes Iraq’s financial and economic stability.
“The new classification reflects the ongoing economic and financial reform policy pursued by the Ministry of Finance. Additionally, it is a result of maintaining a level of foreign currency reserves that exceeds the external public debt and fulfilling other external financial obligations due to the stability of crude oil prices,” she explained.
The ministry stated that the report used several indicators for its classification, with the most significant being the Iraqi parliament’s approval of the tripartite budget for the years 2023, 2024, and 2025. This budget aims to revive infrastructure projects and meet economic needs. Furthermore, the ministry added that the formation of the government at the end of 2022 has led to a state of political stability.
The report stated that a significant current account surplus is expected, which is in line with economic expectations. This surplus will further strengthen Iraq’s foreign currency reserves and support its ability to repay debt obligations over the next 12 months.
The agency has predicted that the economy is expected to grow at a rate of 2.6% annually from 2023 to 2026. This growth is attributed to an increase in oil production, which will have a positive impact on the non-oil sector. Additionally, the annual inflation rates are projected to decrease to 4% by July 2023, down from 5-6% in 2021 and 2022. This is due to the government’s efforts to revalue the currency, implement price control measures, and provide support for food and energy prices.
The report from the agency suggested that Iraq’s credit rating could be improved if the country can achieve a high rate of economic growth, diversify its public financial revenues (both from oil and non-oil sources), increase the per capita income share of national income, and continue implementing financial and economic policy reform measures.
If we had about a million Americans citizens all of a sudden came out millionaires instantly that would be a really good shot in the arm for America’s structure wouldn’t it? It would…
[Iraq boots-on-the-ground report]
FIREFLY: The television is now showing the CBI now has finger prints and web cameras when purchasing dollars for travel abroad. They’re not letting anything slip anymore.The purpose Sudani said is the CBI is happy to do this because some people are still pulling tricks and getting away with buying and selling more dollars. This will help curtail this corruption.
FRANK: Every form of corruption is being removed. And every form of corruption is stealing the Iraqi dinar.
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FRANK : If we had about a million Americans citizens all of a sudden came out millionaires instantly that would be a really good shot in the arm for America's structure wouldn't it? It would.
FIREFLY: They're telling us the official rate technically is 1132. They say in news about budget has words in it saying the exchange rate will be adjusted.
FRANK: The CBI told you this?
FIREFLY: Yes...And it will be retro to January 1st...
FRANK: This is Earth shattering. Powerful...If they lift the three zeros can you live with $1.13?
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Evening RV Family!!!
MZ: Very little happening we can track in the real world. (news articles ect) I am hearing a lot of feedbacks from groups
MZ: What I am hearing from group sources and Reno sources and other redemption city sources is that its anywhere from now until Saturday.
MZ: I am hearing from military sources that they are pushing for everything to have been completed by Nov.1st. and we will have done all our exchanges and our current cash will be worthless by then? This means things need to happen crazy fast.
Member: Looking forward to seeing our new USTN notes for sure.
MZ: One source says this evening…another says Friday and another thinks it’s Saturday. We do not know the timing. They are clouding it on purpose.. I am not hearing that its way out there…I am not hearing its next year. Everything I am hearing is it will be wrapped up this fall.
MZ: For us to be finished by then they need to start immidiatly.
MZ: No feedback from the bond side. They have really clamped down …I am impressed.
Member: The Calm Before the Storm!
Member: I wonder Does the current IRAQI holiday til Thursday play into the “no news” scenario
Member: Charlie Ward says it will be on a Thursday. So my guess is tomorrow!!!
Member: today, TNT Tony said “any moment now” according to his sources
Member: Are the exchange fees a set rate or a sliding scale?
MZ: I am told it’s a set rate and figured in already on the back end ..it’s already figured in…it does not come out of what they are paying us.
Member: Is it true at the RV that from all currencies we turn in 80% will have to go to Humanitarian projects and we only get to personally get to keep 20%. is it true? I thought it was only for Zim?
MZ: Not true.
Member: So do you know what is delaying the RV
MZ: I heard over the last weekend that a lot of progress was made and nothing is delaying anything.
Member: Thank you to all Mark and mods you’re all appreciated!
Member: Everyone have a great evening.
AFTER THE NEWS UPDATE WE WILL TAKE A SHORT BREAK AND JOIN MARK BACK AT 8:00 PM EST FOR WHISKEY & WISDOM.
“THE INFO IN THIS PODCAST IS FOR GENERAL INFO & EDUCATIONAL PURPOSES ONLY. NOT INTENDED TO PROVIDE ANY PROFESSIONAL & LEGAL ADVICE.” PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY.
Markz will be on rumble on SATURDAYS ONLY so he can speak his mind. You will find him on YouTube during the week.
Note from PDK: Please listen to the replay for all the details and entire stream….I do not transcribe political opinions, divisive social commentary,medical opinions or many guests on this stream……just RV/currency related topics.
Wed. 6 Sept. Evening MarkZ: Group, Reno and other redemption sources say its anywhere from now until Sat. 9 Sept. Military sources say that they are pushing for exchanges to be completed by Sun. 1 Nov. and that our current US Federal Dollar would be worthless by then.
Tues. 5 Sept. Texas Snake: Folks just to inject some RV news I am being told by multiple sources that we are within hours or only a few days for this to trigger so please stay alert and connected to these rooms for any notifications, stay well and GOD Bless.
Tues. 5 Sept. Bruce: A high ranking banking contact said that timing for Bond Holders was extended to
Wed. 6 Sept. at 6pm. On the 1st of September the World Global Fund came together. The World Alliance Fund used some of these Trusts like St. Germaine and others to pay off the National Debt to the turn of 21 Trillion Dollar, plus all the debt throughout the world. Each country’s debt was paid off. The USA Inc is defunct and we are now the newly Restored Republic. The first fruits of Nesara and Gesara in terms of Debt Relief and Jubilee.
Mon. 4 Sept. TNT RayRen98: “Meetings took place over the weekend. Agreements were met. New docs needed signatures. It’s all a wrap now.”
The danger lurking behind the borders.. An American report calls on Baghdad and Kuwait to settle their "historic" disputes
Posted On 2023-09-06 By Sotaliraq A report published in an American magazine called on Iraq and Kuwait to reach a solution to their border dispute, and between the need to prevent future conflicts between the two countries, he stressed that one of the most prominent obstacles to this solution is Iraqi instability, Iranian interference, and the growth of the Mobilization Forces.
The report, which was published in the American magazine “The National Interest,” recalled “Kuwaiti Foreign Minister Salem Al-Sabah’s decisive visit to Baghdad, and his talks with his Iraqi counterpart Fuad Hussein and Iraqi Prime Minister Muhammad Shia Al-Sudani on July 30, which were aimed at dealing urgently with the conflict.” The long-term maritime border around the Khor Abdullah waterway, which is a major source of contention between Iraq and Kuwait.
The report pointed out that "the visit bore a special importance due to its coincidence with the anniversary of the Iraqi invasion of Kuwait in 1990, which still echoes in the memory of the region, in addition to that it comes in the context of profound transformations in the internal power in Iraq, which tended towards the Shiite forces."
The report indicated, “The importance of following up the repercussions of these developments on regional stability, given that they could affect the geopolitical scene in the future.” A constructive and lasting solution for Iraq and Kuwait.
Boundary Disorder
However, the report stated that "the border dispute between Iraq and Kuwait extends back centuries," noting that "the conflicts that were taking place, the interventions of colonial powers, and the competition between the great powers, left their effects on the current borders between the two countries, even before the discovery of oil."
The report continued, saying that "despite the signing of agreements and Baghdad's recognition of Kuwait in the past, the various Iraqi governments, whether during the era of the Hashemite Kingdom or the dictatorial regime of Saddam Hussein, did not give up their claims to parts of Kuwaiti lands," adding that "the Iraqi claim to Kuwait, which ranged from Between full and partial control over this country, it was often linked to political stability in Baghdad, so that whenever Baghdad was politically stable, it would escalate its demands for Kuwait, and refuse to demarcate borders, which leads to more problems for Kuwait.
The report added that “Iraq tried in the past to use various methods to force Kuwait to a settlement, such as appointing the Sheikh of Kuwait as deputy governor of one of its provinces, incursions into Kuwaiti lands, deploying forces in the Bubiyan Islands, or pressuring Kuwait to concede the Bubiyan, Warba and Failaka islands under security and commercial pretexts.”
He pointed out that Kuwait, which wanted peace, had agreed to some of Iraq’s demands, including allowing Iraqi forces to be stationed on Kuwaiti islands to confront Iranian aggression, and it had provided great financial and political support to Iraq in the hope of preventing military actions against it.
And after the report drew attention to “Saddam Hussein’s invasion on August 2, 1990, and then the expulsion of Iraqi forces from Kuwait,” he explained that “Kuwait and Iraq signed several agreements, under the supervision of the United Nations, to demarcate their land borders, indicating that great progress has been made in Determining most of the land borders, but the maritime borders are still not drawn, adding that resolving this dispute was the main goal behind the visit of the Kuwaiti Foreign Minister to Baghdad recently.
The report stated that "at the heart of this dispute lies the mouth of Khawr Abd Allah, which has strategic importance, because it is considered a vital passage for about 80% of Iraq's imports and exports."
Although the report indicated that “Baghdad and Kuwait have reached, since 2003, various agreements to settle this dispute, including maritime cooperation and security measures to protect the region, it pointed out that implementation by Baghdad was often slow, affected by commercial considerations and geopolitical factors.” .
Also, “the report warned that the dispute between Iraq and Kuwait may drag on for years to come,” explaining that “Iraq aims to complete the large port of Faw by 2028, which is expected to be the largest in the Middle East, a project that could produce a revolution in the economic scene in Iraq, It secures unhindered access to the sea and reduces reliance on existing roads and resources.
He added that it is unlikely that the large port of Faw will significantly change the view of the Iraqi political elite regarding Khawr Abdullah.
Popular Anger
The report stated that “as part of the attempt to resolve the conflict, the Iraqi government initiated the establishment of a high-level committee responsible for overseeing a sub-committee dedicated to searching for mutually acceptable solutions to issues related to borders and other existing disputes between Iraq and Kuwait, but the Iraqi government’s approach to settling these issues was not
So far, it has received unanimous support,” noting that “the visit of the Kuwaiti Foreign Minister, which was aimed at addressing the issue of border demarcation, quickly turned into a hot political and popular issue inside Iraq, and part of the opposition emerged due to misunderstanding and exploitation by populist politicians seeking to advance They see themselves as hardline patriots with the aim of reaping political gains, especially in light of the provincial elections scheduled for November 2023.”
Accordingly, “these populists falsely accused the Iraqi government of treason and ceding Iraqi lands to Kuwait, which does not correspond to reality.”
The report added, "Nevertheless, these attitudes gained momentum inside Iraq, as citizens, tribal leaders, and politicians from Sunni and Shiite backgrounds accused the Sudanese government of giving up Iraqi lands, which gained great attention on social media, including the refusal of neighborhood residents to propose their transfer." And a reminder on the part of the Iraqis of Kuwait’s role in the ruin of Iraq, the theft of oil and aiding the 2003 invasion.”
In addition, “protests took place in Basra against concessions linked to the Khawr Abd Allah and Umm al-Qasr canals, and some people fired at the border in defiance of any agreement recognizing Kuwait’s authority over Khawr Abd Allah, in light of accusations also by the clans against Kuwait of seizing the lands and displacement.
The report considered that "these events confirm a crucial fact represented by the overlapping of intense feelings with the border issue, and that mishandling it can lead to instability."
And after the report pointed to “the formation of a committee in the Iraqi parliament to follow up on the progress of the government’s negotiations with Kuwait, and to the government spokesman’s denial of the idea of a concession to Kuwait, describing what is happening as part of (political blackmail),” the Al-Awadi spokesman was quoted as saying that “the government’s positions are compatible with The 1993 agreement approved by the United Nations between Iraq and Kuwait,” stressing that “the previous Iraqi administrations also remained committed to respecting the terms of the agreement.”
In addition, the report talked about “the resurgence of latent tensions on the borders,” noting that “Shiite militias in Iraq have often threatened Kuwait, describing it as a historical part of Iraq, and now the issue related to the demarcation of the borders of Khawr Abdullah has intensified. These allegations, even a deputy from the Al-Fateh Alliance (Alaa Al-Haidari) accused Kuwait of attacking Iraqi fishermen in Khor Abdullah, calling on the Popular Mobilization Forces to deploy their forces in Khor Abdullah to protect them.
The report warned that “in light of the continuation of the unresolved border conflict, the situation with regard to Kuwait may deteriorate in the coming years,” noting that “doubling Iraq’s budget allocated to the popular crowd and increasing the number of its members constitutes a threat to Kuwait,” noting that “the underlying tensions surrounding the region The disputed issue is clear, which raises concerns regarding possible escalation in the future.”
Therefore, the report considered, "It is important for the two countries to actively try to reach a peaceful solution and prevent further tensions and regional instability, adding that a clear demarcation of land and sea borders is necessary to reduce the risks of future conflicts."
Effects On The United States
After the report mentioned Kuwait's important role in the US's relations with regional developments, he said that unresolved historical and border disputes could attract Washington to diplomatic efforts.
In addition, the report dealt with the tension between Kuwait and Iran over the offshore gas fields known as “Arash” in Iran and “Durra” in Kuwait and Saudi Arabia, adding that “Tehran can exploit the ongoing border dispute between Kuwait and Iraq to advance its own interests.”
"By benefiting from the marked decline in US influence, Iran has taken a more assertive regional stance," the report said. He added that in light of the great political and military influence exercised by Iran by proxy in Iraq, the great security concerns for Kuwait looming on the horizon, including the possible role of the popular crowd, constitute worrisome scenarios.
"This could cause the United States to become embroiled in another conflict in the Middle East, diverting resources and attention from other critical strategic priorities, including managing the ongoing rivalry with China and Russia," he added.
Therefore, the report says, "A settlement of the long-running border dispute between Baghdad and Kuwait could undermine the influence of Tehran and its proxies while contributing to regional stability, allowing the United States to determine its most important priorities."
The report concluded by saying that "in a region characterized by historical conflicts, changing power dynamics, and the evolving political scene, the settlement of the Iraqi-Kuwaiti border issue constitutes a vital pillar of stability," and pointed to "past experiences that emphasize the dangers of leaving regional conflicts without solutions."
For this, the National Interest report suggests the need for “transparent communication and engagement with all parties, in order to formulate a way forward and reduce chauvinism on both sides of the border.” He added, "It is important for Washington to continue its diplomatic efforts to settle the issue of the Iraqi-Kuwaiti border, and thus contribute to lasting peace and security in the region." LINK
