The Central Bank denies the scarcity of cash liquidity and describes its currency and gold reserves as “historic”
10/2/2023
A source in the Central Bank of Iraq denied that there was a “scarcity” of cash liquidity in the country’s markets.
The source confirmed to Al-Furat News Agency: “There is no scarcity of cash, and cash is available despite the current policy, which is a contractionary policy, but cash is available.”
He pointed out that "the foreign reserves and gold at the Central Bank are at historical levels, and the electronic platform is open to anyone who wants to officially enter into buying the dollar at the official price."
Specialists in economic and financial affairs reported that despite the large size of the monetary supply, which amounts to (83) trillion dinars, there is a noticeable scarcity of cash liquidity from the Iraqi dinar in the commercial markets, explaining that this comes for several reasons, the first of which is mismanagement.
The financial file in the country.
Professor of Economic Affairs, Jaafar Alloush, said in a press statement that “the problem of liquidity scarcity - if it exists - is linked to a number of factors, including the economy’s lack of monetary flexibility in managing public money, while official monetary indicators do not indicate the existence of a liquidity scarcity.” ".
He explained, "The problem is that the largest portion of the issued currency is with the public, which accounts for 91.3% of the issued currency, amounting to more than 90.070 trillion Iraqi dinars of that currency outside the banking system, and despite the fact that this (huge) monetary mass is used for transaction purposes from... before the public and to carry out its daily economic activity, but it is outside the control of the monetary authorities.”
Iraqi governorates face funding crisis amid delayed budget allocations, 2 OCT
Shafaq News/ Member of the Parliamentary Finance Committee, Ikhlas Al-Dulaimi, highlighted the pressing issues confronting Iraqi governorates due to the delayed release of financial funding from the 2023 budget.
Speaking to Shafaq News Agency, Al-Dulaimi expressed deep concerns over the challenges faced by the governorates. She stated that despite the budget being prepared with 197 trillion dinars, the anticipated positive impact on service provision in the governorates has not materialized.
"As the tenth month of the year progresses, there has been a failure to allocate any funding to the governorates, causing significant problems." She said.
Al-Dulaimi emphasized that the funding rate has not exceeded 2% thus far. The allocations have been minimal, leading to significant complexities for the governorates. Projects are often stalled, with even minor changes requiring projects to be returned to the Ministry of Planning and then to the governorate.
"This lack of coordination between the Ministries of Finance and Planning has hindered project financing for the governorates."
She further highlighted the paradox where essential projects, such as water desalination, included in the general budget, have not been funded despite being in the year's final months.
On June 12, the Iraqi Parliament approved the financial budget for the three years (2023-2024-2025), totaling 198.9 trillion Iraqi dinars ($153 billion) each year.
The budget is based on an oil price of $70 per barrel and projects oil exports of 3.5 million barrels per day.
The budget includes a significant increase in spending on public sector salaries, pensions, and social welfare programs. It also funds infrastructure projects, such as roads, bridges, and power plants.
The government has said that the budget aims to stimulate economic growth and create jobs. However, some critics have warned that the budget is too large and could lead to inflation and a budget deficit.
Caught in Crossfire: The Escalating PKK-Turkey Conflict and Its Implications for the Middle East, 2 OCT
The Kurdish Workers’ Party (PKK), a militant organization originating from Turkey, is once again at the forefront of geopolitical discourse following recent movements of its rebels into Iraq. This development forms a complex web of interaction, involving the PKK, Turkey, and the increasingly destabilized region of the Middle East. The continued conflict poses significant challenges for geopolitical stability and the fight against terrorism in the region.
Background: The PKK and Turkey’s Unending Strife
Formed in 1978 by Abdullah Ocalan, the PKK has been waging an insurgency against Turkish authorities since 1984, aiming for greater cultural and political rights and the establishment of an independent Kurdish state. The ongoing conflict has led to approximately 40,000 deaths. The PKK, along with other Kurdish groups, including the Peoples’ Democratic Party (HDP) and the People’s Protection Unit (YPG), have intensified their agitation against the Turkish government, especially following the collapse of a two-year ceasefire in 2015.
Amid the escalating tension, Turkey’s President, Recep Tayyip Erdogan, has launched a series of military operations both within and outside the country. These actions were aimed at neutralizing the PKK and other terrorist elements, preventing attacks from Northern Iraq, and securing the country’s borders. The operations also extended to Syria, targeting the YPG and the self-declared Islamic State.
The PKK’s Expanding Reach: Iraq and Beyond
The PKK’s influence and operations are not limited to Turkey. Over the years, the group has established a presence in various parts of Iraq. In 2019, Turkey launched Operation Claw, a land and ground assault that enabled it to establish military bases in Iraqi territory. Turkey has since used these bases to plan attacks and airstrikes, including the testing of a new ballistic missile in Iraqi Kurdistan.
However, Turkey’s operations within Iraqi borders have not been without resistance. The Iraqi government has lodged complaints against Turkey for the violation of its sovereignty, and Kurdish forces have attacked Turkey’s bases. Amid the increasing tension, the PKK invited the Syrian army to defend Manbij and other areas, marking a significant shift in the dynamics of the conflict.
International Ramifications: A Brewing Crisis
The escalating conflict between Turkey and the PKK has far-reaching implications beyond the borders of the two countries. The possibility of the Kurds establishing an independent state in Syria amid the ongoing chaos could accelerate secessionist movements in other Kurdish areas of the Middle East. The heightened activity by Kurdish separatists also poses a growing concern for the United States and its allies, which designated the PKK a foreign terrorist organization in 1997.
Furthermore, the conflict has strained relations between the United States and Turkey. The Erdogan administration has been demanding the extradition of Fethullah Gülen, a Turkish political and religious leader in self-imposed exile in the United States. Simultaneously, the close relationship between the United States and Kurdish groups, coupled with the increasingly close relationship between Russia and Turkey, has added another layer of complexity to the geopolitical situation.
Looking Ahead: An Uncertain Future
As the conflict between Turkey and the PKK intensifies, the future of the Middle East remains uncertain. The conflict’s escalating profile could carry high costs for both U.S. interests and Iraqi sovereignty. The main beneficiaries of the clashes may be Iran-backed militias, who welcome Turkey’s presence as a new rationale for so-called “resistance” attacks outside the framework of the Iraqi state.
As the situation continues to unfold, it highlights the urgent need for a comprehensive strategy to address the PKK issue, taking into account the rights and aspirations of the Kurdish people, the security concerns of Turkey, and the broader stability of the Middle East.
Here's the the thing, a country doesn't claim its independence hoping that one day they become independent. Nope, they claim their independence when they are independent.
They are no longer waiting for their independence. I'm talking about banking reform, economic reform, military, geopolitical, every level. They're not waiting to be independent, they are waiting for the day to celebrate their independence. Independence is upon them now.
It is who they are. That dinar is about to be independent and travel the world like a free little bird and baby I cannot wait to celebrate! It has been too long.
When the UST Secretary Rosenberg was here a couple weeks ago, the day after she left, auctions changed
...and there were changes after the UN meetings. There have been tons of changes because things have been signed off.
Jeff
Community comment: "Iraq is a sovereign country."
If Iraq was really sovereign that would mean no other country would have any power or control over them. They would have their independence and they would have possession of all their country's property.
We're still waiting on the House of representatives within the United States to vote to remove the United State's War Authorization off of Iraq...That's one level of not having sovereignty and still having restrictions on Iraq.
Strategic Dialogues and Security Cooperation: Iraq’s Multifaceted Approach to National Stability, 2 OCT
President Abdullatif Rashid of Iraq recently convened a crucial meeting with influential government figures including the Prime Minister, Parliament Speaker, and Chief Justice. The discussion revolved around the country’s political and security status, the tragic fire at a wedding hall in Nineveh, and the outcomes of the Prime Minister’s visit to the United Nations General Assembly. The leaders committed themselves to support the victims’ families and emphasized the importance of infrastructure development in the region. The meeting also broached the proposal for a special pardon for women and juveniles, excluding those involved in serious crimes.
Reflecting on the Political and Security Landscape
The meeting served as a platform to review Iraq’s political and security situation in-depth. The leaders condemned any aggression towards Iraq and encouraged dialogue as the primary tool for resolving differences. They also highlighted the role of Iraq in the regional context and the crucial need for infrastructure development. These discussions aimed to steer the nation towards a more secure, stable, and economically vibrant future.
Addressing the Nineveh Wedding Hall Tragedy
In light of the recent fire at a wedding hall in Nineveh that resulted in a tragic loss of life, the leaders pledged to support the victims’ families. They agreed on the necessity of implementing safety measures to prevent similar incidents in the future. The incident highlighted the scope for improvement in the nation’s disaster management protocols and infrastructure.
The outcomes of the Prime Minister’s visit to the UN General Assembly were also discussed during the meeting. The visit, which aimed to foster international relations and present Iraq’s position on various global issues, provided valuable insights that were shared with the key government figures. These insights are expected to influence the government’s future strategy and policy decisions.
Fostering U.S.-Iraq Defense Relations
In a parallel development, U.S. and Iraqi defense leaders held talks at the Pentagon to discuss an enduring strategic relationship between the two nations. Secretary of Defense Lloyd J. Austin III and Iraqi Defense Minister Thabit Muhammad Al Abassi engaged in a joint security cooperation dialogue. The U.S.-Iraq bilateral engagement, which extends beyond the Defeat ISIS agreement, signifies a maturing strategic partnership. The United States affirmed its commitment to assisting Iraq in building a secure, sovereign, and economically vibrant nation.
The U.S.-Iraq joint security cooperation dialogue reflects the growing capabilities and confidence of Iraqi forces. The enduring defense relationship, encapsulating military training, exchange programs, and more, aims to foster a comprehensive partnership. This partnership is expected to extend beyond military cooperation, encompassing economic collaboration, climate change cooperation, and diplomatic engagements. The joint security cooperation dialogue is an integral part of this process, aiming to normalize the bilateral relationship between the U.S. and Iraqi militaries.
As Iraq navigates its path towards stability and prosperity, these strategic dialogues and partnerships play a pivotal role. The nation’s leaders, through their commitment to dialogue, cooperation, and reform, are steering Iraq towards a secure, sovereign, and economically vibrant future.
Iran and Iraq Reiterate Commitment to Implement Security Agreement, 2 OCT
General Ali-Akbar Ahmadian, the Secretary of Iran’s Supreme National Security Council, and Qasim al-Araji, Iraq’s National Security Adviser, recently convened to discuss the implementation of the Tehran-Baghdad security agreement. The agreement, inked in March, is designed to bolster the security of the borders of both countries and eliminate any elements that could destabilize the region.
Securing Borders, Enhancing Relations
During their meeting, Ahmadian underscored the necessity of ensuring the security agreement’s strict and comprehensive implementation, suggesting that it serves as an effective roadmap for eradicating insecure elements within the two countries and the broader region. He also pointed to the abundant capacities for improving bilateral relations across different sectors.
Al-Araji reciprocated these sentiments, affirming Iraq’s dedication to the agreement’s full implementation. He also expressed Iraq’s willingness to explore every opportunity to develop and deepen relations with Tehran. The Iraqi official emphasized the determination of the Iraqi government and his National Security Council in implementing the security agreement.
Addressing Regional Security Concerns
The security agreement also addresses the issue of Kurdish groups active in the Arab country’s Kurdistan Region, which Iran identifies as terrorists. Under the agreement, Iraq has pledged to disarm these groups and relocate them to alternate camps.
The deadline to disarm and relocate these groups expired on September 19, with both Iranian and Iraqi authorities working tirelessly to implement the agreement. Political and security officials in Baghdad and the autonomous Iraqi Kurdistan region have confirmed that these groups have been relocated to camps inside Iraq, well away from the border with Iran, where they were previously conducting hit-and-run operations.
Setting The Stage For Sustainable Security
The successful implementation of the security agreement could signify the dawn of a new era of sustainable security for both Iran and Iraq, a development that could unlock significant economic benefits for both nations and the Iraqi Kurdistan region. The presence of the Kurdish militant groups had been a significant hurdle to such benefits, but with the security situation stabilizing along the Iran-Iraq border, new opportunities for economic prosperity could emerge.
Ahmadian also paid tribute to the Iraqi government for organizing the magnificent Arbaeen rituals and the hospitality of the Iraqi people toward Iranian pilgrims. He emphasized the political and cultural significance of these rituals in strengthening the bonds between the Shias in Iran and Iraq. This year, more than 3 million Iranians visited Iraq to mark Arbaeen.
Hopes for Deepened Ties
Both Ahmadian and al-Araji share a vision of deepened ties between Iran and Iraq, a sentiment reinforced by the successful implementation of the security agreement. Al-Araji said, “We will welcome and use any opportunity for developing and deepening Baghdad-Tehran ties.”
This high-level meeting and the mutual commitment to the security agreement underscore the ongoing diplomatic efforts by both Iran and Iraq to enhance their cooperation and ensure the security of their borders and the broader region, demonstrating their dedication to fostering mutual security and stability, which remains a priority in their bilateral relationship.
