SUDANESE ADVISER: THE BATTLE OF THE DOLLAR IS COMING TO AN END
Al-Rikabi said in a post on the X platform, followed by Earth News: “The reform plans for the financial and banking system carried out by the government and the Central Bank of Iraq aim to build strong pillars for the stability of the economy and pave the way for creating a climate conducive to investment, and ending the eras of illegal trade, dollar smuggling and speculative operations in the market.”
“In short, the battle for the dollar is coming to an end,” he added.
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MOODY’S MAINTAINS IRAQ’S RATING AT “CAA1″… WHAT DOES THIS MEAN?
Moody’s credit rating agency maintained its rating for Iraq’s economy at the level of “Caa1” and maintained a stable future outlook.
The agency said in its report that the classification comes under accreditation economic, financial and external impact on the oil and gas sector, resulting in significant exposure to oil price fluctuations and carbon transition risks.
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UNITED NATIONS: WE SEEK COOPERATION WITH IRAQ TO MAKE THE FINANCIAL FUTURE A SUCCESS
The Resident Representative of the United Nations Development Program in Iraq, Oki Lootsma, confirmed today, Monday, the pursuit of cooperation with Iraq to make the financial future a success.
Lootsma said in his speech during the conference launching the Financial Investigation Procedures Guide, which was attended by the Iraqi News Agency (INA) correspondent: “The United Nations Development Program is honored to cooperate with Iraq to enhance financial integrity and the success of the financial future in Iraq, as well as achieving long-term continuity. We declare the fight against organized crime.” And combating money laundering, which is very important.”
He added, “The process of drafting the guide highlights a large cooperative program for the 11 institutions that guarantee the judiciary, integrity, the Financial Supervision Bureau, offices for combating organized crime, and the relevant institutions, as well as the institution of this work.”
He continued: “We are pleased with the great cooperation that will lead to important results.
A GOVERNMENT ADVISOR EXPLAINS THE MECHANISM FOR SELLING THE DOLLAR OUTSIDE THE CENTRAL BANK PLATFORM
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained the aim of the Central Bank’s circular today regarding trading the dollar from outside the platform according to supply and demand, indicating that it will provide high flexibility in supply that contributes to market stability.
Saleh explained in a press statement, “Liberating the operations of buying and selling foreign exchange is not an alternative to the policy of defending price stability and the government’s plan to interfere in the stability of the general level of prices.”
Saleh added, “Families, natural and legal persons in Iraq are hoarding amounts of cash in foreign currency and outside the banking system amounting to billions of dollars and are subject to two phenomena.
(Folks this article is part of the education phase. We still have to see more directly at the citizens and the 3 zero note swapping.) Please go to the Articles Section to read the entire article. WOW! WOW! WOW!
What will 2024 look like? I will say one thing for sure as it will not be business as usual in Iraq...I will also dismiss this silly notion once again that Iraq must first rebuilt their economy and then watch the value of the dinar grow with it from 1/6 of a penny upwards...the very basis of the economy now is generating billions each month in oil revenues ...So why not reflect this value of the oil reserves alone in the rate of the dinar. If nothing else this wealth should be reflected into the equation of the rate of the dinar...I mean right now, NOT five or ten years from now... we can see the current rate does not reflect the currency value...Oh…but there is much more growth already than just oil too...We know for a FACT the dinar is being “artificially suppressed”.
So, how long will us investors in the IQD have to wait before Iraq is allowed to liberate its own currency?
Why do I say “now is the time”? We know they are completely out of Chapter VII sanctions since December 2022, and so why not treat them as such?
We know they want the Iraq funds (nearly USD 115+ billion) released from the NY banks and put in their custody to do what they want with it... We know they have plans for yet more Sovereign Funds to invest their reserves. We know they are making agreements now for “currency swaps” and will no longer be using any US dollars in Iraq as of January 1st 2024
We know since January they have undertaken a massive “de-dollarization” program and told it should have taken 6 years but they decided to do it in 1 year (2023). Why such a hurry?
We know the value of the IQD right now without any further economic development does exceed even pre-1991 era ($3.22) but still at 1/6 of a penny? We know Iraq now pumps 2/3 more oil than in pre-1991 era. We know Iraq also has announced 132+ tons of GOLD reserves. We know they are pushing this year alone, more than any other year since 2005, for the passing of Oil and Gas law. Why?
We know for a FACT that it is the U.S. through the Treasury Dept. direction that will NOT give sign-off to allow the reinstatement. Why? Finally, we know, the CBI has told us that January is the most opportune time to reinstate for accounting purposes, since it begins their new FISCAL year. Just be patient, the reinstatement is coming and I firmly believe with what we now are 99% sure it is going to be a January 2024 event. WOW! Finally!!!
The Iraqi Government Takes A Number Of Decisions Regarding Airports, The Dollar, And General Managers
WEDNESDAY, 11-29-2023, KARAR AL-ASSADI The Iraqi Council of Ministers took a number of decisions related to the operation of airports, loans, and dealing in the US dollar, the most prominent of which was the approval to separate the management of Iraqi airports from the Iraqi Civil Aviation Authority and link it to the Ministry of Transport, in addition to approving the dismissal and rotation of 12 general directors within the third round for evaluating general directors.
This came during its forty-eighth regular session, which was chaired by Iraqi Prime Minister Muhammad Shiaa Al-Sudani.
According to a statement issued by the Prime Minister’s Media Office, a copy of which was received by Noon News Agency, the session witnessed a discussion of developments in the general situation throughout the country, and a discussion of the progress of implementation of the government program, with its various files and service and political axes, in addition to deliberating on the topics on the agenda, and take the necessary decisions thereon.
In the field of administrative reform, the Council of Ministers approved the dismissal and rotation of (12) general directors, as part of the third phase of evaluating general directors in ministries and entities not affiliated with a ministry, by adopting the standards and mechanisms prepared by the committee formed in accordance with Diwani Order (23059), to evaluate the work and performance of general directors. .
Within the framework of financial and economic reform, the Council of Ministers approved the recommendations of the minutes of the meeting held in the Ministry of Planning regarding amending Paragraph No. (1) of Council of Ministers Resolution (23545 of 2023), according to the following:
1. Commitment that all state contracts executed inside Iraq be in Iraqi dinars, with the exception of:
a. Continuing contracts on external grants and loans and agreements continue to operate in accordance with the loan or grant agreement.
B. Contracts that will be concluded after the entry into force of this decision regarding grants, foreign loans, and agreements, the terms of the agreement will be adhered to, if it stipulates that the contracts be in a currency other than the Iraqi dinar, taking into account what was stated in the circular of the Ministry of Finance on April 27, 2023.
2. The beneficiary party may open a documentary credit for the purposes of importing materials from outside Iraq for the duly contracted project.
3. The beneficiary party may transfer the salaries and wages of foreign workers in the project, as well as companies’ dues and profits in foreign currency, in accordance with the controls of the Central Bank of Iraq.
The Council of Ministers approved the recommendation of the Ministerial Council for the Economy (230272 Q) as follows:
1. The Ministry of Finance’s contribution in the amount of one million dollars, to be paid in two equal installments during the years (2024 and 2025), and the method of payment should be in cash, and the date of the first payment is April 15, 2024.
2. The Ministry of Finance contributes to the (Special Program to Strengthen the Crisis Response Window CRW).
3. The Minister of Finance, in her capacity as Governor of Iraq in the International Development Bank Group, will complete the procedures for subscribing to the contribution, once the Council of Ministers decision is issued.
As a result of the conditions of water scarcity, and the need to confront torrents and floods and harvest water in the winter of the current year, the Council of Ministers approved the Ministry of Finance to allocate an amount of (25) billion dinars to the Ministry of Water Resources for the maintenance of minor irrigation projects, the maintenance of dams and dams, and the maintenance of drilling and fuel machinery.
The Council of Ministers also approved the recommendations of the Diwani Order Committee (65 of 2022) regarding establishing an appropriate tariff for irrigation fees for agricultural lands, according to what was stated in the minutes of the Ministry of Water Resources, dated October 15, 2023, to be implemented in the coming seasons, taking into account attention. The opinion of the Legal Department in the General Secretariat of the Council of Ministers, limited to the Ministries of Commerce and Agriculture, regarding paragraph (5) of the recommendations.
In light of the directives of the Prime Minister to support the agricultural sector and mitigate the effects of severe water scarcity, the Council of Ministers approved the following:
1. The Ministry of Planning included the Iraqi side’s share of (15%) of the loan amount regarding the project to use modern irrigation techniques (equipping center-pivot irrigation systems), and determined the amounts in the budget for next year/2024.
2. Approving (2.5%) commission for the Agricultural Equipment Company, one of the formations of the Ministry of Agriculture, on par with what is in effect in the project to use modern irrigation and mechanization techniques in the aforementioned ministry, based on the price policy controls for pricing goods imported from outside Iraq approved by the Council of Ministers/ Economic Affairs Committee, pursuant to its letter dated August 24, 2008.
3. The Ministry of Agriculture contracted with the Austrian company (BAUER), taking into consideration the opinion of the Legal Department in the General Secretariat of the Council of Ministers.
In the same vein, the Council of Ministers approved the recommendation of the Ministerial Council for the Economy (230321 Q) regarding contracting with the Ministry of Industry to equip modern irrigation systems, excluding the Ministry of Agriculture, according to the following:
1. Article (3/ Contracting Methods) contained in the Instructions for Implementing Government Contracts (2 of 2014).
2. Article (7/First) of Section Three of the instructions to facilitate the implementation of the Federal General Budget Law for the three years.
3. Granting the Ministry of Industry and Minerals the financial authority to negotiate prices, quantities and specifications with the Ministry of Agriculture, within the allocation ceiling of only (100) one hundred billion dinars.
4. Adding Support By 30%
In the air transport and aviation sector, the Council of Ministers approved the following:
1. Separating the Iraqi Airports Administration from the Iraqi Civil Aviation Authority and linking it to the Ministry of Transport/Navigation Services Company, and the company will be renamed to become (The General Company for Airports and Air Navigation Management), based on the provisions of Article (47/Second)
From the Federal General Budget Law for the fiscal years (2023 - 2024 - 2025).
2. The General Company for Airports and Air Navigation shall take the necessary measures to amend its bylaws and founding statement. To be consistent with the company's missions.
3. The assets of all Iraqi airports, linked to the Civil Aviation Authority, shall be transferred to the General Company for Airports and Air Navigation, and the services of workers at those airports shall be transferred to this company.
4. The General Company for Airports and Air Navigation shall replace the Civil Aviation Authority in implementing all obligations, technical, legal and financial, concluded with the Authority, taking into account the observations of the Legal Department in the General Secretariat of the Council of Ministers.
5. Forming a joint committee between the Ministry of Finance, the Ministry of Transport, the Council of Advisors, and the Civil Aviation Authority; To implement the provisions of the decision and its financial, legal and technical implications.
The Council also considered a number of topics on the session’s agenda, and took the following decisions regarding them:
First / Approval of the draft law for the Republic of Iraq’s ratification of the Protocols amending Articles (50/A) and (56) of the Convention on International Civil Aviation (Chicago Convention) of 1944, signed in Montreal 2016, which was prepared by the Council of State, and referred to the House of Representatives, based on To provisions of the Constitution.
Second: Approval of adding the (Mundhiriya border crossing) in Diyala Governorate, and the (Arar border crossing) in Anbar Governorate, to Paragraph (3) of Cabinet Resolution (23111 of 2023) for importing fertilizer.
Third: Approval of the draft law to compensate the properties of those affected by the defunct regime, which was reviewed by the Council of State, and referred to the House of Representatives, based on the provisions of the Constitution, taking into account the observations of the Legal Department in the General Secretariat of the Council of Ministers.
Fourth: Approval of the draft securities law, which was audited by the State Council, and referring it to the House of Representatives, based on the provisions of the Constitution, taking into account the observations of the Legal Department in the General Secretariat of the Council of Ministers.
Fifth: Approval to authorize the Minister of Transport to negotiate and sign a draft memorandum of understanding regarding the development path, between the Ministry of Transport in the Republic of Iraq and the Ministry of Transport and Infrastructure in the Republic of Turkey, based on the provisions of the Treaty Contracting Law (35 of 2015), taking into account the recommendation The Legal Department in the General Secretariat of the Council of Ministers. https://non14.net/public/162257
Parliamentary Finance: The Government Will Reduce Circulating Liquidity By 10% Next Year
Information / Baghdad.. Member of the Parliamentary Finance Committee, Mudar Al-Karawi, confirmed on Wednesday the government’s intention to reduce the liquidity circulating in Iraq by 10% during 2024.
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Al-Karawi said in an interview with Al-Maalouma, “The Sudanese government has begun adopting a series of economic solutions aimed at electronic transition in paying wages and services to government institutions, including gas stations, via modern cards to reduce money circulation mechanisms.”
He added, "Beginning the electronic transition in the circulation of funds in state institutions has several positives that lie in economic advantages in terms of reducing cash liquidity and transferring it to an electronic nature, which will be more controlled, not to mention its contribution to strengthening the financial balances in banks and banks."
He pointed out that "the government's programs will reduce the liquidity circulating among citizens by at least 10% during 2024 if they are implemented in practice."
The Ministry of Oil approved programs to pay fuel refueling fees via electronic cards, in a step that is the first of its kind in Iraq. Ended 25 February LINK
