Iraq's internal debt per capita reaches 1.7 million dinars: is it worrisome?, 12 MARCH

Iraq's internal debt per capita reaches 1.7 million dinars: is it worrisome?

Shafaq News/ Iraq's internal debt has reached 70 trillion dinars ($48 billion), with each citizen's share of the debt amounting to 1.7 million dinars ($1,170), according to economist Manar al-Obaidi. 

The debt has been growing steadily in recent years, due to a combination of factors including the war against ISIS, the decline in oil prices, and the COVID-19 pandemic. 

The government has been able to finance the debt through a combination of borrowing from domestic banks and issuing treasury bills. However, the growing debt burden is a major concern for economists, who warn that it could crowd out private investment and lead to higher inflation. 

Economist Abdul Rahman al-Mashhadani, however, downplayed the significance of the internal debt, arguing that it is not as dangerous as the external debt. 

"The internal debt is not the dangerous element in the world's countries, but the external debt, because the internal debt is shared by many institutions, so its impact is weak, although it is considered a debt that the government owes to financial institutions and individuals," he said.

 

Mashhadani pointed out that the internal debt is owed to government institutions, such as the Rafidain, Rashid, and Iraqi Trade banks, and the Central Bank. As a result, he said, it is a government debt to the government and the government can cancel its interest or write off these debts. 

The International Monetary Fund (IMF) has removed Iraq from its list of debtor countries, as the country's external debt is now below the IMF's threshold of 100% of GDP. The IMF's decision is a sign of confidence in Iraq's economy, and it could help to attract foreign investment. However, economists warn that Iraq still needs to address its debt problem, as the high debt burden could constrain economic growth in the long term.

https://shafaq.com/en/Economy/Iraq-s-internal-debt-per-capita-reaches-1-7-million-dinars-is-it-worrisome

" IQD WILL BE $1.32 INSTEAD OF $1,320 PER USD DISCUSSION" BY MARKZ, 12 MARCH

 IQD WILL BE $1.32 INSTEAD OF $1,320 PER USD DISCUSSION

MZ: What I would really like to share with you is from this morning: “ Iraq’s ruling coalition may call for early elections” The Iranian lined up divisions seem to be afraid of Sudani.  But he has about a 78 percent approval rating from the people and has gotten a lot done.  

MZ: But this statement is what they fear the most right now ” The Iraqi government is currently weighing the question to change the currency so that the official cost of the US dollar will be 1.32 Iraqi dinars instead of 1320.”  Implementing such a decision is likely to significantly increase Al Sudani’s popularity. 

MZ: What does this mean? It means they don’t need the zeros anymore. This means that each Iraqi dinar would be worth .76 cents. This was right from Iraq’s own paper. And they are “currently weighing this question”

Member: If Sudani does this- he would be our hero for sure. Price would float up from there imo. 

Member: If Iraq is discussing a rate in the news. It’s already done!

MZ: I agree. 

MZ: I still very much believe we will see a higher rate than that …but let’s say each dinar is worth .76 cents. They may be coming in at .76 and letting it float. We don’t know for sure. But to see it openly discussed in their news is huge. 

Member: At a rate of .76 – then each 25,000 note of dinar would be worth $19,000 USD.  Exchanging one note is enough to help many of us immensely while we wait for it to float higher. 

MZ: Roughly each one million in Iraqi dinar would be worth $760,000.00 USD the moment they decide to do that. And they are openly weighing that rate. This may be a huge “tell” for us. 

Member: this is an excellent sign they are floating that rate in public papers

Member: For sure the Dinar would be quite higher by the end of the day in open trading!!!!!!

Member: Would be a lot more than we have now for sure. Many lives and homes could be saved. 

Member: Either way it goes it will be a blessing and more than we have today. best part will be when we get rid of the circus we have going on.

MZ: I believe they could be “prepping the market” If this is the worst case scenario we would be in good shape. Imo

Member: I don’t think Iraq could fix their entire country on a rate of .76 cents?

MZ: I still believe it will be higher. But we will see. They just gave us what I consider the “worst case scenario” and I feel good about it. ....

https://dinarevaluation.blogspot.com/2024/03/coffee-with-markz-03112024-rate-rumors.html

Iraqi Dinar || Frank26 Most Thriling Update About Iraqi Dinar Revaluatio...

Iraq's Ministry of Finance disburses salaries to Kurdistan for February, 12 MARCH

Iraq's Ministry of Finance disburses salaries to Kurdistan for February

Shafaq News/ The Iraqi Ministry of Finance announced on Monday the disbursement of salaries to the Kurdistan Region for February 2024, aligning with the directives of Prime Minister Mohammed Shia Al-Sudani and the approval of the Minister of Finance. 

According to the Ministry's statement, the salaries encompass funding for various categories, including civilian employees, allowances for people with disabilities, retirees' salaries, martyrs' and orphans' entitlements, and financial allocations for departments in the Kurdistan Region.

"The Ministry has duly informed the Federal Court about the content of the relevant letters concerning the salary disbursement. However, the release of salaries for March is contingent upon the completion of localization requirements by the Kurdistan Region." The statement explained.

The Ministry emphasized that the Kurdistan Regional Government is urged to "bear legal responsibility for the accuracy and validity of the information and data provided to regulatory and legal authorities." 

Salaries are among the main outstanding issues between the Iraqi and the Kurdish governments, along with the oil export and disputed areas.

Last month, the Federal Court, Iraq's highest judicial authority, mandated to localize the salaries for Kurdistan's employees in government banks starting this February.

The Court's new decision has sparked anger and criticism among Kurdish politicians, with some claiming that the decision is unconstitutional and politically motivated and that it undermines the autonomy and finances of the Kurdistan Region.

However, some observers and experts argue that the decisions are correct and consistent with the law and the constitution and that they will ensure the rights of everyone and end the suffering of the Region's employees who have delayed receiving their salaries for months.

https://shafaq.com/en/Economy/Iraq-s-Ministry-of-Finance-disburses-salaries-to-Kurdistan-for-February

"RV UPDATE: " I THINK THAT JP MORGAN IS GOING TO BE EXTREMELY IMPORTANT TO US" BY FRANK26, 12 MARCH

 Frank26 

 JP Morgan I think is going to be extremely important to us...Don't just think that you're going to be limited to Chase and JP Morgan.  I used [them as example] only so that it could be of help to you.  To guide you.  At least you know where you can start.  If you don't like them go somewhere else.

The conditions of the monetary reform are perfect.  All the waiting that we've been having forever and ever is also very perfect because what we're waiting for is just one thing and one thing only, the new exchange rate.  That's it.  The evidence is, banks know now. 

🔥 Iraqi Dinar 🔥 This is a Huge Reinstatement, $3.22 Target Revealed! 🔥Ne...

An economist reduces its importance.. An expert determines the value of the internal debt of each Iraqi individual, 12 MARCH

An economist reduces its importance.. An expert determines the value of the internal debt of each Iraqi individual

Shafaq News/ Economist Manar Al-Obaidi determined the size of the internal debts of the Iraqi state and the share of each individual in it, while another economist downplayed the importance of that, stressing that the danger lies in external debts.

Al-Obaidi said in an interview with Shafaq News Agency, “Iraq’s internal debt amounts to 70 trillion dinars, and therefore the per capita share of this debt is large and amounts to one million and 700 thousand dinars per person, if we consider that the souls of Iraqis are 40 million people.”

Internal and external debts

He added, “The size of the debt per capita in the year 2020 amounted to one million and 600 thousand dinars, and in the year 2019 the debt per capita reached 950 thousand dinars, when the internal debt amounted to 38 trillion dinars.”

Al-Obaidi continued, “Iraq’s external debt ranges from 30 to 40 trillion dinars,” noting that “the total internal and external debt is approximately 110 trillion dinars.”

External debt risks

While the economist and professor at the Iraqi University, Abdul Rahman Al-Mashhadani, in an interview with Shafaq News Agency, downplayed the importance of Iraq’s internal debt, pointing out that “internal debt is not the dangerous element in the countries of the world, but rather external debt because the internal debt is shared by many institutions, so the issue of its influence is weak despite It is considered a debt owed by the government towards financial institutions and individuals, but not as serious as the external debt, which amounts to blatant interference.”

He explained that “the internal debt amounting to 72 trillion dinars belongs to government institutions, including the Rafidain, Rasheed and Iraqi Trade Banks and the Central Bank, and therefore it is a government debt to the government and it can cancel its banking interest or write off these debts.”

Al-Mashhadani added, “The budget contains 10 trillion dinars in interest and installments on the internal debt, and it is considered revenue for government banks. It is not this dangerous and not this large. The government has resources, and it is easy to convert this debt into bonds that can be repaid like other countries because we have cash reserves and oil resources.”

He pointed out that “the external debt amounts to 22 billion dollars, or about 29 trillion dinars, according to the official exchange rate of the dollar, and most of these debts are long-term and expire in the year 2045 and are for the Japanese government and government organizations, and some of them expire in the year 2043 and their interests are low.”

He stated that “the International Monetary Fund completely excluded Iraq from debtor countries because Iraq’s external debt is 22 billion dollars, and the Iraqi government is able to pay it off in one or two years.”

Treasury transfers

In turn, economic expert Dhargham Muhammad Ali confirmed to Shafaq News Agency, “The internal debt is not a problem and is negotiable. It is paid annually and is not affected by bank deposits.”

He continued, “Treasury transfers are often purchased by banks or individuals to finance the budget deficit or salaries in the event of a delay in the operating budget, so internal debt is within permissible limits and does not currently constitute an economic problem.”

shafaq.com