Budget Dispute and Rising Tensions: A Tale of Two Governments in One Country, 29 OCT

Budget Dispute and Rising Tensions: A Tale of Two Governments in One Country

The political labyrinth of Iraq is once again poised for a critical meeting. This time, the heart of the matter is an escalating budgetary dispute between the federal government in Baghdad and the Kurdistan Regional Government (KRG). As the KRG prepares to dispatch a delegation led by its Minister of Finance and Economy, Awat Sheikh Janab, to negotiate in Baghdad, the issue of delayed budget transfers looms large.

From Erbil to Baghdad: A Dispute over Dinars

At the core of the dispute are the Kurdistan Region’s financial entitlements. The KRG has accused Baghdad of delaying the transfer of agreed-upon funds and not implementing the budget properly. This issue is not new; it is a recurring bone of contention between the semi-autonomous Kurdistan region and the federal government, a testament to the complex fiscal relationship between Erbil and Baghdad.

The Iraqi Council of Ministers is expected to make a decisive call regarding the Kurdistan Region’s salaries for the remaining months of the year. The federal government has vowed to send 700 billion dinars to the KRG to finance the salaries of employees and workers in the public sector for the last quarter of 2023, but the KRG remains skeptical.

Iran: A Web of Influence and Power

While the budgetary dispute unfolds, a different power play is taking place in the region. Ismail Qaani, the leader of Iran’s Quds Force, has a long history of involvement in Afghanistan since the late 1980s. His recent trips to Afghanistan, including a mysterious visit in 2018, suggest Iran’s sustained interest and influence in the country.

Back in Iran, President Ebrahim Raisi has warned that Israel’s ongoing bombardment of Gaza may force everyone to act, underscoring Iran’s staunch support for Hamas. Simultaneously, the Iranian government faces domestic human rights criticisms as it prevents public memorials for protesters killed during unrest.

Unveiling Iran’s Cultural and Social Strains

Meanwhile, Iran continues to grapple with internal strife. The death of 17-year-old Armita Garavand, allegedly at the hands of Iran’s morality police, has sparked outrage. Her burial was shrouded in tight security, and several arrests were made, including that of renowned human rights lawyer Nasrin Sotoudeh.

This incident, echoing the death of Mahsa Amini, another young woman who died in police custody for allegedly violating the hijab rule, has catalyzed widespread protests and condemnation of Iran’s treatment of women. Adding fuel to the fire, the government’s decision to ban actresses who have publicly opposed the mandatory hijab law has been met with backlash from high-profile artists, stirring a debate about artistic freedom and government overreach.

As the United States aims to dismantle Hamas’s funding networks by sanctioning members of Iran’s Islamic Revolutionary Guards Corps, Iran’s ground forces are testing the flight readiness of more than 200 helicopters. These drills, aimed at confronting potential threats, highlight the rising tensions in the region. If the retaliations against Hamas in Gaza continue, warns Iranian Foreign Minister Hossein Amir Abdollahian, the United States will not be spared from the conflict.

https://bnn.network/world/iraq/budget-dispute-and-rising-tensions-a-tale-of-two-regions/

The Prime Minister's Advisor Explains The Importance Of Legislating The Economic Reform Law, 29 OCT

The Prime Minister's Advisor Explains The Importance Of Legislating The Economic Reform Law

Money  and business  Economy News _ Baghdad  Today, Sunday, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, outlined the paths of partnership between the state and the private sector, while explaining the importance of legislating the economic reform law.

Saleh said, in an interview with the Iraqi News Agency, followed by “Al-Iqtisad News,” that “the government’s current and future economic vision has been touched upon by the government program through many axes focused on describing the future of the economic system in the country,”

indicating that “the description took its way in building a real partnership between the state and And the private sector, with the aim of creating a gradual separation from the dominance of oil rents in keeping the country captive to economic unilateralism and relying on oil wealth revenues alone as the sole basis for financing productive activities in the economy.”

He explained, "Partnership opportunities with the private sector have taken different paths today, including financing partnerships, which include issuing carbon bonds or reconstruction bonds toward market resources," noting that "the private sector will contribute to financing economic development, in addition to the role of the Iraq Development Fund, which There will be an increase in direct financing from the government to meet the need of civil society activity to finance its investments at various levels, according to a strategy targeting small and medium-sized activities and others.”

He pointed out that “among the paths is the government’s role as an actual guarantor in supplying Western technology to private activity, especially in the industrial sector, agricultural industries, and other digital activities,” stressing that it is “a guarantor partnership for the supply of advanced technology to the country with financial government guarantees within the vision of partnership between the state and the private sector.”

To achieve a unified development goal in which human, financial and organizational resources are mobilized between the state and the private sector and with advanced external technological support.”

He continued, "The legislation of the economic reform law, the implementation of which will represent a new pattern of partnership in investing in strategic economic activities, especially between the arms of the productive private sector and the government, to extend investment activities to wide areas such as unexploited natural resources and forms of jointly operated infrastructure."

Views 40 10/29/2023 - https://economy-news.net/content.php?id=37144

Sudan’s taking we are strong we need to work with our real values

" THE GOVERNMENT IS WITHDRAWING ITS HAND FROM THE DOLLAR BATTLE." BY MNT GOAT, 29 OCT

 THE GOVERNMENT IS WITHDRAWING ITS HAND FROM THE DOLLAR BATTLE.. THE SOLUTIONS ARE OVER AND THE MARKET IS “FREE” AT THE EXCHANGE RATE

Over the past weeks, silence has clearly overwhelmed the relevant authorities and authorities in Iraq at the governmental and banking levels in the face of the continued rise in exchange rates. In contrast to the past months, when the government and the central bank issued a package of quick decisions and measures immediately after the rise in exchange rates, except this time, with a break in… The exchange rate reached record numbers exceeding 160 thousand dinars per 100 dollars. It seems that the relevant authorities have “surrendered” in the battle for the dollar.

This matter can be reached not only from the absence of government and central bank measures that have come to prevent the smuggling of the dollar without taking measures to prevent its rise in the market, as the Central Bank previously issued various packages for this, but even in the statements of the Central Bank Governor, Ali Al-Alaq, and Prime Minister Muhammad Shiaa Al-Sudani, It clearly shows a “tone of surrender” and leaving the exchange rate without intervention, relying only on traders who buy dollars from the central bank and betting that commodity prices will not rise depending on these traders.

For example, the Governor of the Central Bank, Ali Al-Alaq, said last week during a session of the Ministerial Council for the Economy, that “the exchange rate depends mainly on imports and not on local production, and that the exchange rate in Iraq has peculiarities because it is linked to the price of oil as it is the largest source of providing hard currency,” noting. He pointed out that “many factors affect the exchange rate, the most important of which is the leakage of the dollar to neighboring countries and internal dealing in local markets in a currency other than the national currency, as well as the lack of complete control over ports and smuggling.”

Which means that the exchange rate will continue to rise as long as there is import, uncontrolled outlets, and oil pricing in dollars, as all of these conditions are sustainable and cannot be changed.

For his part, Al-Sudani said in a press conference yesterday, Tuesday: “We support some banks that we trust are good and have achieved success, in order to be part of the solution to the dollar crisis,” adding, “One of the problems we face is that Iraqi law does not contain strong penalties.” And strict measures against those who are arrested as speculators in the dollar exchange rate.” 

It is another indication that it is not possible to do anything, whether for speculators or for the rising dollar prices, in clear statements that are consistent with the Iraqi authorities’ tendency to leave the market dollar price file without interference, that is, more like a flotation. 

This is confirmed by economic affairs researcher Haider Al-Sheikh, today, Wednesday (October 25, 2023), stressing the difficulty of ending the crisis of the rise of the dollar in Iraq.

The sheikh told “Baghdad Today”, “The crisis of the rise in the dollar exchange rate does not end, and the central bank has become unable to control the market, and some banks, exchange companies, and merchants have manipulated the price of the dollar. ” He added, “This is because the Central Bank imposed any sanctions on banks, exchange companies, and merchants on the price of the dollar, which manipulate the exchange rate. Therefore, the dollar exchange rate will stabilize at 165 during the next two days, and will continue to rise further during the coming days. “

He pointed out that “there are problems in banking reform and major challenges facing the government, and the current dollar exchange rate in the markets is the price of currency speculators .”He added, “There are entities, private banks, merchants, and owners of banking companies who are seeking to keep the dollar exchange rate at the current price .”

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/

Iraq’s Power Play: Controlling Kurdistan’s Finances, 29 OCT

Iraq’s Power Play: Controlling Kurdistan’s Finances

In the heart of Iraq, where history whispers of empires and civilizations, the modern day battle unfolds not with guns and swords, but with banks and employees’ salaries. This is a tale of power, economic control, and a struggle for autonomy, set against the backdrop of the ongoing conflict between the central government in Baghdad and the Kurdistan Regional Government (KRG).

Salaries as a Leverage

The finance committee of the Iraqi parliament has proposed a significant shift in the economic dynamics of the region. Over 600,000 employee salaries of the KRG are to be funneled through reliable banks in Iraq. This move isn’t merely a bureaucratic shuffle of funds, but rather an attempt to exert greater control over the finances of the KRG and to attenuate its autonomy.

The proposal comes amidst heightened tensions between the central government and the KRG, with the latter exporting oil independently of the central government. This act of economic defiance has strained the Iraqi economy, prompting Baghdad to cut the KRG’s share of the federal budget, leading to a financial crisis in the region.

Resistance and Repercussions

But this new proposal isn’t being received quietly. The KRG has resisted, viewing this move as a violation of its autonomy. They accuse Baghdad of attempting to control its finances and undermine its authority. Concerns have also been raised about the reliability of the banks and the potential for corruption and mismanagement.

The recent conflicts in the region that led to injuries and detentions have further strained the relationship between the two governments. These incidents underscore the volatile nature of the situation and hint at the potential for further escalation.

The Path Forward

To resolve these disputes, both sides need to sit across the table and engage in dialogue, to find a mutually acceptable solution. The distribution of salaries through reliable banks in Iraq could be a step towards achieving this goal. It could ensure that the salaries of KRG employees are paid on time and reduce the KRG’s reliance on oil revenues.

Yet, it is equally important for the central government to address the concerns of the KRG and ensure that the banks are reliable and free from corruption. Building trust between the two parties is key to creating a stable and prosperous future for Iraq.

In the grand scheme of things, the proposal to distribute the KRG employees’ salaries through reliable banks is just one piece of the puzzle. It’s a significant development, but only one of many steps needed to resolve the ongoing conflicts. As with any story that unfolds in the cradle of civilization, the outcome will have profound implications, not just for Iraq but for the whole region and beyond.

https://bnn.network/politics/iraqs-power-play-controlling-kurdistans-finances/

"RV UPDATE" BY SANDY INGRAM & RAYREN98, 29 OCT

 Sandy Ingram

  The other day a [Community Member] said...Coinbase was exchanging the Iraqi dinar on the platform. 

 Sure enough [we] found that Coinbase is allowing clients to trade cryptocurrency for the Iraqi dinar.  Further research shows clients can buy the Iraqi dinar using bitcoin...

RayRen98

   Question:  "...WHAT KIND OF PEEPS ARE EXCITED?"  

 RayRen RESPONSE:   "THREE LETTER PEEPS AND IRAQIS FOR SURE. BANK PEEPS ARE ON NOTICE FOR BEING CALLED IN OVER THE WEEKEND".

 "...FOREX TRADERS ARE BEING TOLD TO LOOK FOR RATE CHANGES ON FRIDAY OR SATURDAY...TIME WILL TELL"

Dinar RV News Today🔥Iraq Investing in Green Economy Worth $100 Billion💣M...