Iraq's anticipated decline in government spending relative to GDP: Statista analysis
Shafaq News / The German data specialist site "Statista" anticipated a decline in government spending as a percentage of Iraq's Gross Domestic Product (GDP) in the coming years.
According to a report published by the website, the percentage of government spending to GDP for the year 2023 reached 49.95%, marking the highest government spending in the past five years.
The report indicated an expected decrease in this percentage over the next five years, with projections indicating it will decrease to 48.29% in 2024, 45.28% in 2027, and 44.49% in 2028.
The Gross Domestic Product (GDP) refers to an economic indicator measuring the monetary value of all goods and services produced within a country's borders over a specified period. It is noteworthy that GDP is not an indicator of social welfare or overall wealth.
If and when the day comes where Iraq begins to diversify their economy, then they can begin to withdraw some of the larger notes from circulation and begin to raise the value to counter inflation gradually. This process then could begin to introduce a smaller notes to replace the larger notes as the currency appreciates. But again, this would have to happen gradually over time so Iraq could reduce the money supply, which currently is over 90 trillion.
A lot of people probably don't realize, but I've been in the dinar investment since 2008. Probably one of the most knowledgeable on the facts, and read most professional documents ever written pertaining to the dinar. I know what I'm talking about.
We found out very quickly many years ago that there would never be an RV of the Iraqi dinar or the term reinstatement. Those are made up terms and will not happen.
If this is something new to you to hear it's probably best that you learn it now because there will be no single RV or overnight RV or reinstatement of the Iraqi dinar. The Iraqi dinar is not a lottery ticket...If the dinar is ever going to go up in value it will go up gradually as a result of the success and growth of their own economy...
Iraq’s Federal Government Transfers 700 Billion IQD to Kurdistan Regional Government
In the Kurdistan Region of Iraq, a monumental financial transaction has taken place, injecting hope and stability into the region’s economic fabric. A colossal 700 billion Iraqi Dinars (IQD) have been transferred to the Kurdistan Regional Government (KRG) from the federal government of Iraq, according to Shahaw Amin, a key figure in the KRG. This transfer is designed to alleviate the financial burden on the regional government, particularly in ensuring the timely disbursement of public sector wages.
A Lifeline for the Kurdistan Regional Government
The allocation of funds is an integral part of ongoing efforts to reconcile financial disputes and establish economic equilibrium in the region. The KRG, grappling with the strain of maintaining its infrastructure and meeting public sector wage demands, views this transfer as a much-needed lifeline. The 700 billion IQD will significantly bolster the KRG’s ability to sustain its public servants, who form the backbone of the region’s functioning.
Impact on the Region’s Economic Stability
The transfer of funds is expected to have an immediate and stabilizing effect on the region’s economy. By ensuring the swift payment of public sector salaries, the KRG can avert potential economic disruption and maintain the continuous delivery of essential services. The allocation also sends a strong signal of support from the federal government, reinforcing the commitment to resolve longstanding financial disputes and promote stability.
Significance of the Financial Transfer
The financial transfer to the KRG is not merely a monetary transaction; it is a testament to the federal government’s commitment to establishing economic harmony in the region. By injecting this significant sum into the KRG, the federal government is playing a crucial role in maintaining the functioning of the regional government and supporting its public servants. The move is a significant stride towards a more stable and prosperous Kurdistan Region of Iraq.
Advisor to the Prime Minister announces a platform for Iraqi and Chinese businessmen
Economy News-Baghdad
Advisorto the Prime Minister for Investment Affairs and Executive Director ofthe Iraq Fund for Development, Mohammed Al-Najjar, outlined on Saturdaythe importance of the relationship between Iraq and China, whileannouncing a platform for Iraqi and Chinese businessmen.
Al-Najjarsaid, during the founding ceremony of the Iraqi-Chinese BusinessCouncil, under the auspices of Prime Minister Mohammed Shia Al-Sudani, that "China was characterized by several qualities, including that it isthe only country that was able to save 400 million people from thepoverty line within 20 years, and this is a great experience thateveryone must benefit from, and the second characteristic is itstransition from a communist economy under the state by 100% to a realcommon economy that has become productive."
Headded: "The third characteristic, which is very important as it relatesto the experience gained by China through 4,000 years of civilization, which is how to develop a team capable of managing the variables of thestate," noting that "Iraq looks at China as a friend and as a countrythat shared its concerns at a stage that abandoned a lot of it."
Hecontinued: "We seek to learn a lot from China regarding how to changethe framework and systems of the state," noting that "China has aprinciple called special economic zones, and this is an experience thatmust be used in Iraq to change our economic reality."
Hepointed out that "China's GDP in 1979 did not exceed 120 billion, buttoday China is the second largest economy in the world through 40 yearsof changes that have occurred not only on a political basis, but on aneconomic and political basis at the same time," expressing his hope to "start a new phase of the relationship with China."
Hestressed that "renewed trade and industrial projects between Iraq andChina," pointing out that "the Iraqi-Chinese Business Council will be aplatform for businessmen of the two countries."
Wealthy Iraqis move to the Caribbean. Guess who's on the list? ...The leader of the Kurdistan region and the former governor of the Central Bank of Iraq and other businessmen suspected of corruption...Iraq's politician are monitored by the organized Crime and Corruption Report Project (OCCRP)...This is part of the effort to catch
individual involved in corruption....The project reported the purchase of Dominica (tiny Caribbean island) citizenship...enabling them to travel worldwide without a Visa...This country's visa is magical. Citizens can travel to 144 countries without a visa..
The country has no tax on foreign income, capital gains, inheritance, stock profits, wealth or gifts...The former Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhif, obtained Dominica citizenship in 2017 along with his wife and two children and did not renounce it upon his appointment as governor of the CBI which was clear violation of article 18 paragraph 4 of the Iraqi Constitution. He held the position of governor of the Central Bank of Iraq from September 2020 until his removal by the current prime minister on January 23, 2023...
There are corruption questions...a legal complaint... has been filed due to the loss and depletion of millions of dollars regarding forged import documents.
The reason countries have foreign reserves is to make sure that a country has backup funds if its national currency rapidly devalues or becomes entirely worthless. It's common practice for central banks of different countries around the world to hold large amounts of reserves of foreign exchange. Most of these reserves are held in US dollars since it is the most traded currency in the world...The amount of monies a country holds in its reserves has a lot to do with the county's currency rate...Iraq has the largest foreign currency reserves in its' history.
The reason countries have foreign reserves is to make sure that a country has backup funds if its national currency rapidly devalues or becomes entirely worthless. It's common practice for central banks of different countries around the world to hold large amounts of reserves of foreign exchange. Most of these reserves are held in US dollars since it is the most traded currency in the world...
The amount of monies a country holds in its reserves has a lot to do with the county's currency rate...Iraq has the largest foreign currency reserves in its' history...
Article: "Good News for Investors: US Treasury Continues to Omit Vietnam Currency Off Currency Manipulator's List"
Vietnam was not included on the US Treasury Department currency manipulators list this time. The list comes out twice a year and includes countries that may have surpassed the value of their currency. When a country does this it cheats investors on potential profits...Iraq is rebuilding after the war so is not yet subject to currency manipulation lists...
On Wednesday the Prime Minister of Iraq's advisor took the lead from the Central Bank of Iraq and announced Iraq has the largest foreign currency reserves in its' history and that the exchange rate treatment package aims to prevent profiteering at the expense of the economy...
