Minister of Finance: The government continues its efforts for economic reforms
9/26/2023 Baghdad
The Minister of Finance and Governor of Iraq at the Asian Infrastructure Investment Bank, Taif Sami, participated today, Tuesday, in the work of the official session at the governors’ level in the bank for its second and final day, with the participation of the Director General of the Iraqi Fund for Foreign Development in the Ministry of Finance.
According to a statement by the Ministry of Finance, the session’s agenda included “voting on a number of decisions, most notably accepting the membership of a number of countries in Asia and Africa in the bank, voting on electing a new president and two deputies to the bank’s Board of Governors, in addition to approving the annual report of the Asian Bank’s work for the year 2022.”
The Minister of Finance indicated, "The Iraqi government will continue its efforts for economic reforms, adopting a road map to achieve sustainable development goals and a gradual approach to financing development by maximizing revenues for the budget and the contribution of international banks, including the Asian Bank, to finance promising investment projects in Iraq." LINK
Article: "Central Bank of Iraq approves new system for external transfer" They're turning more and more to the Iraqi dinar for use than the US dollar which is exactly what you want.
This will definitely strengthen the Iraqi dinar and as it becomes stronger, the value in the exchange between US dollar and Iraqi dinar will strengthen - They will have more value. We will see an increase in the exchange for the Iraqi dinar.
After the past week we're seeing a lot of things happening fairly quick over there in Iraq...You guys want to know if I'm excited about what's going on? Of course I am. Is it good news? Of course it is.
But what do I always say? Stay grounded because when it comes to Iraq they have a habit of doing a lot of great things and doing something that screws it all up. But this time around I'm more optimistic than I am pessimistic.
The reverse of the Authorization for Military use that can actually be done by next week. I'm looking forward to that because.
I'm curious to see how that's going to work out, how that affects the sanctions that are against the currency of Iraq. Because if we can get those reversed that's going to be a major step for Iraq and Iraqi dinar...
Al-Sudani wraps up his visit with the United Nations General Assembly...He was supposed to meet with Biden but my understand is that they did not meet but he did speak with a couple of his staff members.
I'm sure by now he must have some kind of idea how this [Thursday's] vote's gonna go...on whether or not they reverse the authorization of military use over there in Baghdad.I'm wondering if there was any kind of stipulations or agreements that were made one way or the other butnext week we're going to find out.
We know they've been working on reforming their banking system so it could work with international financial system.
If they de-dollarize, get rid of the capital controls and they can have access to international financial systems, outside investors would come from all over to invest in Iraq. You could see the Iraqi dinar jump up pretty good.
Iraqi premier pledges decent living for all Iraqis, 26 SEPT
Shafaq News/ Prime Minister Mohammed Shia al-Sudani vowed to ensure a decent life for every Iraqi citizen in a ceremony commemorating the Prophet Mohammed's birthday on Tuesday.
He urged religious leaders and intellectuals to promote unity and renounce sectarian and racial discord.
The Prime Minister's office in a statement earlier today said that al-Sudani attended a ceremony organized by the Sunni Endowment Diwan to commemorate the birth of Prophet Mohammed.
Al-Sudani called for embodying the humanitarian goals and values espoused by the Prophet's mission, advocating for their application across various spheres of public service and work.
"If we intend to follow the honorable path of our Prophet, it necessitates shouldering the responsibility and trust in establishing justice, and providing equal opportunities for all citizens," said al-Sudani.
The prime minister accused "foreign agendas" that have infiltrated the nation of stirring sectarian discord and chaos and lauded Iraqis for navigating the tumultuous days that followed the 2003 change with unity and solidarity.
He recalled the horrific era when terrorist gangs swept governorates in Northern and Western Iraq, committing heinous crimes and subjecting people to brutal atrocities.
Al-Sudani underscored the collective stand of Iraqis of all religions, sects, and ethnicities to liberate land and humanity, mingling their pure blood in one of history’s most significant sagas. He urged collective responsibility to sustain this societal unity and brotherhood.
The Prime Minister reassured the government's commitment to safeguarding the security and dignity of all Iraqis, irrespective of their affiliations, and to thwart efforts by divisive elements sowing seeds of discord among the people.
Al-Sudani urged "the religious figures and intellectuals to embrace a discourse of unity, devoid of the venom of sectarianism or abhorrent discrimination."
Iraqi PM: The biggest challenge we face is gaining people's trust, 26 SEPT
Shafaq News/ The Iraqi Prime Minister Mohammed Shia Al Sudani described his biggest challenge since assuming office ten months ago as "Gaining the trust of the people."
In an interview with The National in New York during his participation in the High-Level Week of the United Nations General Assembly, Iraqi Prime Minister Mohammed Shia Al Sudani Al Sudani spoke of his "commitment" to improving the lives of Iraqis, with priorities that include "providing basic services, fighting corruption [and] undertaking economic reforms, which can all strengthen the confidence of people in this political system."
Al-Sudani told The National that trust is only restored "through credibility and fulfilling promises. If we succeed, all other challenges can be met".
Al Sudani said that his government is strong and able to deliver despite many challenges.
He described his government's foreign policy as "balanced, independent with sovereign decision-making, far from the desires and interests of others," stressing, "Disruption in Iraq brings disturbances in the region and the world, as we saw with ISIS," he said.
His government is seeking to create joint projects in the region to build on possible cooperation, such as the "Iraq development road project," which he has invited countries in the region to join, strengthening the links between Asia and Europe.
"We will not be part of any sphere of influence."
Al Sudani's trip to New York included meetings with US Secretary of State Antony Blinken and White House Coordinator for the Middle East Brett McGurk; he revealed that he told US officials that his country's relationship "should not be only within a security dimension … while we are open to bilateral security cooperation", highlighting the importance of "Iraq's independence and we will not be part of any sphere of influence."
One issue raised is the presence of foreign troops in Iraq.
He confirmed that Iraq does not require combat troops; "we have military advisers, but even their presence needs regulation in terms of their size, location, and how long they remain," he said.
"This is part of what is needed for our sovereignty and stability, to take away any excuse from those who demand keeping arms out of the control of the state because of the presence of foreign troops."
Concerning tensions with Kuwait regarding Khor Abdullah, Al Sudani told The National that "in Iraq, there is a division between the various branches of power," deflecting the issue as a judicial one.
However, he stressed that his government is "committed to international laws and the decisions of the UN Security Council, in addition to the sovereignty and territorial integrity of the state of Kuwait."
He spoke of his meeting with Kuwait's Prime Minister, saying: "I confirmed to him our government's position and expressed Iraq's desire to continue the work of the joint committees and to have ongoing mutual visits between the officials and experts of the two countries, across all fields, in order to strengthen the levels of cooperation and building of trust."
Al Sudani said, "Iraq after 2003 is completely different from Iraq before [that time]. We are working now at setting up cross-border projects and developing ties with all our neighbors, including Kuwait".
As for relations with the Gulf more generally, Al Sudani said that the GCC countries are active in Iraq through investment projects and active participation in the Baghdad Conference, which also involves Jordan, Iran, Turkey, France, and others.
The conference will have "a new vision, one based on economic integration which can further regional stability and joint infrastructure, in addition to other measures," he added.
In the spirit of improved relations in the region, Al Sudani stressed his firm belief that "Syria, with its current political makeup and people, is better than an unknown alternative that could lead the region to enter a new war in the region."
He added, "Any security disturbances in Syria can lead to ISIS being unleashed. We need to re-engage Syria and meet its people's needs".
And yet there are tensions with Iran and Turkey with regular air strikes on Iraqi territories, mainly targeting dissident Kurdish groups.
Mr Al Sudani said, "We are dealing with this matter through diplomacy and our rejection of violence or the threat of violence. Our ability to respond is there, but we prefer diplomacy".
He added, "We have emptied the camps of [Iranian dissident] armed groups, which is part of our constitutional obligation not to allow the use of Iraqi territory to attack another country."
Al Sudani explained that Iraqi troops are now monitoring the borders in the Kurdistan Region.
"There is a real war against corruption."
His primary concern for the moment is domestic affairs.
He added, "this government's 2023 budget set aside $4 billion for cash support for individuals and families below the poverty line, and 1.7 million individuals and families are included in this program".
Each gets an average of $200 a month and added financial support for students as "battling poverty is not just about income, it is about education, health, society … we do not want poverty to be inherited".
Tackling poverty and providing essential services is part of Al Sudani's effort to "end poverty in Iraq within five years."
"In February [of that year], Iraq's revenues from oil were at $1.5 billion, while $4.5 billion was needed to cover [public sector] salaries, meaning we had to borrow $3 billion".
One of the biggest impediments facing the private sector is corruption, which Al Sudani acknowledges.
"There is a real war against corruption; on a daily basis we are working to recover funds and recover those who took the funds … we follow up on all information, even a statement post on social media".
Responding to those who question the effectiveness of the fight against corruption, Al Sudani said there is no "political manipulation when it comes to corruption … we are fighting it in reality, not only in media statements".
Al Sudani spoke at length about illicit trade in Iraq, including the role of those who smuggle US dollars to Iran.
"Our trade with Iran is approximately $11 billion, but Iran is sanctioned, which means a trader cannot send funds to Iran in return for goods as that is prohibited, so the trader goes to the parallel [black] market".
The Iraqi central bank is working with its Iranian counterpart to address this issue, "an important part of controlling the price of the currency rests on regulating our trade with Iran."
He added there had also been problems with informal transfers to Turkey for trade, but now the Iraqi government has mandated transfers are to be completed through the banking system.
The prime minister is also attempting to tackle the illicit tobacco trade, which he says must be controlled.
"We get zero tax revenues from tobacco trade, and yet from Mosul to Basra, tobacco products fill the stores … they are coming in from illegal trading routes", primarily through the Kurdistan region of Iraq, "with whom we are working to close this loophole."
Concerning the local elections on December 18, Al Sudani told The National, "Over 300 parties have registered to contest the local elections … and this is another healthy indicator that the political regime has stabilized".
As for the October 2019 protests, known as the Tishreen movement, Al Sudani said, "We look to it with respect; we respect all elements of peaceful protests within a legal framework."
Looking to the future, Al Sudani is focused on strengthening Iraq's economy and its ability to tackle climate change by expanding solar energy projects, recycling, and "a comprehensive water policy, including modern irrigation systems."
He said Iraqi President Abdul Latif Rashid would be leading Iraq's delegation to Cop28 and working on major projects to tackle desertification and water scarcity."
Major news coming out of Iraq. Article: "Iraq to restrict all internal trade to dinars from next year" This move aims to help control the black market exchange rate.
The policy will stop transactions from being conducted in U.S. dollars was announced following a meeting between the central bank governor and representatives of private banks...the US Federal Reserve has agreed to this change...These actions are seen as a positive step in building up the strength of the Iraqi dinar...
Article: "Summary of Iraqi Prime Minister's Schedule at the UN General Assembly September 2023". The Prime Minister of Iraq addressed the UN General Assembly this past week in New York City...He had a one-on-one meeting with US Secretary of State...He also met with US companies on Thursday...
In his speech to the general assembly..he said the country has become a safe environment for investors focusing on eradicating corruption and is committed to international law...The PM told the general assembly everything they wanted to hear. He called Iraq a key player in the global marketplace and said other countries cannot use Iraq as a central point to hurt either Iran or Turkey.