A "small increase" will do nothing to jump-start their economy. They need big bucks in a hurry as they must import almost everything at this point but soon will be a powerhouse in the middle east.
[Response to Pimpy's 1-15-2024 post below]
Iraq has more oil than Kuwait. They also have a huge, top of the ground, gold deposit...Iraq has a very large gas supply which would add nearly 3 billion cubic feet a day (bcf/d) – around 517,000 barrels of oil equivalent per day. This will fuel gas powered electricity production. This will eliminate Iran from the equation and they would lose their grip on Iraq.
There are several plans afoot... Iraq recently held a two day event looking for foreign investment to develop their mineral resources.
During the event, Minister of Industry and Minerals Kahlid Battal Najam offered investors long-term partnership opportunities in a long list of state-linked phosphate, nitrogen, Sulphur, fertilizer and glass production projects. No, Iraq is not short of means of diversification. These examples just scratch the surface.
Planning Indicates Government Measures That Contributed To The Decline And Stability Of Inflation Rates In Iraq
January 19, 2024 Baghdad/Al-Masala Al-Hadath: The Ministry of Planning confirmed, today, Friday, that the actions of the government and the Central Bank of Iraq contributed to the decline and stability of inflation indicators in Iraq.
The official spokesman for the Ministry of Planning, Abdul Zahra Al-Hindawi, said, “Inflation indicators have witnessed stability and decline in their rates during the last two years, as the inflation rate was (6%) in the year 2021, and decreased in the year 2022 to (5%), then in the year 2023 it was The inflation rate is 4.4, meaning less than 4 and a half percent.”
Al-Hindawi added: “In the last months of the year 2023, we recorded stability in inflation rates, as the indicators did not exceed half of 1 percent, and this is due to the stability of food prices and even their decline in some stages.”
He pointed out that “this stability and decrease in the rate of food and some other materials is the result of the policies and measures taken by the government during the past periods that contributed to providing an adequate income for the poor, in addition to improving the components of the food basket by increasing food supplies, improving their quality, and regularizing the distribution process.”
He continued: “In addition to the expansion of the social protection network greatly through the inclusion process, the number of families covered reached more than two million families, with 8 million individuals benefiting from the social protection network, in addition to the projects being implemented at the level of the capital, Baghdad, and the governorates, as they contribute to saving hundreds of thousands.”
Of job opportunities, and all of these measures help achieve a state of consumer stability and reassurance for the individual, as there is a stable income, available foodstuffs, and job opportunities.”
He pointed out, “There is another aspect and an important factor that should not be overlooked, which is that the Central Bank of Iraq actually succeeded in securing financial cover at the official price for all food imports after most of the importing merchants joined or entered the platform of the Central Bank, and transfers through the platform were also a very important factor.”
It prevented the impact of the rise in the exchange rate in the parallel market on food prices, because all food imports are covered by the official price, and thus it was an important factor in stabilizing inflation rates and indicators in Iraq.” https://almasalah.com/archives/80055
Managing Sovereign Wealth Funds of other countries such as the Middle East in the US is met with great challenges, but it has profitable results for both countries in doing so.
This practice ensures secured foreign exchange practices that are expected to be a prominent venue going forward on Forex. In contrast with banks, this practice is the holding of investments in government foreign reserves inside the financial system of another country.
SWFs typically invest in a wide range of asset classes:
* equities (i.e. foreign currency) * fixed income * real estate * alternative investments like private equity and infrastructure.
The purpose of this practice is to increase diversification and reduce risk on cross-border transactions between countries.
As you can see from many of the articles in this room, blockchain technology allows us to create opportunities never seen before in history. The ability to move across the borders to exchange monies is becoming something of an enigma.
At the touch of a button, things are progressing towards instant payment systems through the new digital economy allowing faster and efficient forms of trade.
Many of these blockchain technologies have been operational for some time, but the interfacing of Global economies on a Quantum Financial System will transform the way we live that most of us have never ever attempted to imagine. DLA Piper
Shafaq News/ On Saturday, the Iraqi Intelligence Service (IIS) announced the confiscation of vehicles and the arrest of their drivers involved in the illicit smuggling of oil and its derivatives.
In a statement, the agency revealed that specialized units, focused on combating organized crime, deployed multiple intelligence and technical teams over the past 30 days to carry out operations against the oil smuggling network.
These operations resulted in seizing 58 vehicles, along with their drivers, and thousands of tons of oil and its derivatives.
IIS also revealed that several vehicles in 15 oil sites where confiscated in different governorates.
The arrested where referred to the relevant authorities for further investigation.
Earlier today, the Iraqi Ministry of Oil announced the interception of 61 tankers carrying oxidized asphalt and other oil derivatives.
Iraq faces a significant challenge with the smuggling of millions of barrels of oil monthly, resulting in substantial revenue losses for the government. These smuggling operations span various routes, including land borders with neighboring countries such as Iran and Turkey.
One prevalent method involves the use of trucks disguised as legitimate cargo to transport crude oil or refined products across land borders. Additionally, illicit pipelines have been identified snaking across the border into other country.
Smugglers also leverage tankers to transport stolen oil at sea, engaging in covert transfers, sometimes under the cover of night or in remote locations.
Article "For the first time...the assets of Iraqi banks record an unprecedented number" quote “the volume of assets of Iraqi banks operating in Iraq amounted to more than 202 trillion dinars, which is the first time that it has exceeded the barrier of 200 trillion dinars.”
Article: "Al-Sudani concludes his visit to Switzerland and returns to Baghdad"
Quote: "meetings were also held on its sidelines, which are the following: ■ Meeting with French President Emmanuel Macron ■ President of the Swiss Confederation, Viola Amherd ■ Secretary-General of the United Nations, AntĆ³nio Guterres ■ Secretary General of the North Atlantic Treaty Organization (NATO) ■ US National Security Advisor ■ President of the World Bank Group ■ Director General of the International Monetary Fund ■ President of the European Commission ■ President of the European Bank for Reconstruction and Development (EBRD) ■ Saudi Ministers of Trade and Investment ■ International Finance Corporation (IFC). ■ regional CEO of JPMorgan ■ Secretary-General of the Organization for Digital Cooperation ■ President of HKN Energy Oil Company ■ 57 international companies specialized in oil, energy, and other economic fields ■ Interview with Bloomberg website ■ Interview with the Wall Street Journal
Article: "JPMorgan Bank announces its readiness to open accounts for three private Iraqi banks "
Quote: "JPMorgan Regional CEO for the Middle East and North Africa, Khaled Hoballah, announced ...the bank’s readiness to enhance cooperation with Iraq and open accounts for three private Iraqi banks."
Article: "Saudi Arabia strongly supports Iraq's accession to the World Trade Organization"
Quote: "the head of the Saudi delegation confirmed that the Kingdom believes that Iraq is a country that has chosen peace and stability and seeks to achieve economic development, pointing to the importance of Iraq to the Kingdom of Saudi Arabia from an economic standpoint."