The first phase of the project to connect Iraq and Jordan electrically was officially opened on Saturday morning by Iraq’s Minister of Electricity, Ziad Ali Fadel.
The Rawa district will profit from this hookup by receiving 40 to 50 megawatts of electricity, as terrorist organizations have destroyed infrastructure, leaving it without electricity for more than a decade.
Minister Fadel underlined the significance of interconnection projects, stressing their high level of technical advantages and dependability for the electricity grid, which increase supply hours and stability.
Up to 500 megawatts of further project phases are planned. Additionally, he said that the electrical connecting project between Iraq and the Gulf is nearing completion and that connections to Saudi Arabia are proceeding as planned.
Community request "Please tell us about the smaller notes, 500s, 250 and 50s. Will they be athrowaway? What is the good and bad of them?" If they do a re-denomination there won't be a need for a 500 or 250 note...They're going to create the notes like the ones we have. You will see a 1, 5, 10, 20, 50 and 100 denomination...They don't lose the purchasing power. The 10 has the same purchasing power as a 10,000. The 5 has the same purchasing power as a 5,000. The one has the same purchasing power as the 1,000...
Community Comment: "It's the exchange rate. I don't know where they get taking zeros off the bills." Every study out there that talks about the deletion of the zeros tells you it comes off the bank notes...If they delete the zeros, your 25,000 becomes a 25 dinar.
They're going to take the zeros off [the rate as well]. .00076 becomes .76...still the same value. You have a smaller denominated note but your purchasing power stays the same.
We're dealing with two different things... We have what's known as the nominal value, which is the numbers on the bank notes and then we have an exchange rate value. That's two different things.
This is [from] the World Bank data bank - Real Effective Exchange Rate is the nominal effective exchange rate in measure of the value of a currency against a weighted average of several foreign currencies divided by a price denominator or index of costs... Iraq already reports a real effective exchange rate. They report it all the time...It's reported to the IMF regularly...
The IMF, WTO, World Bank and whoever don't have a say whether or not Iraq LOPS off their zeros. That is decided by the Central Bank of Iraq as well as the government of Iraq. You're confusing the 'lopping of the zeros', 'the deletion of the zeros', 'the reducing of the zeros', 'the removing of the zeros', as somehow a loss in value. It is a neutral event. It doesn't affect outside investment into the Iraqi dinar. I told you when you remove the zeros all you're doing is lowing the nominal value of the currency. Has nothing to do Iraq's exchange rate versus other wold currencies - noting whatsoever.
The financial adviser to the Prime Minister, Mazhar Mohammed Saleh, signed the approval of the budget schedules in the middle of April.
“The budget schedules are supposed to be decided in mid-April probably,” Saleh said in a press statement. He added that “the tripartite federal general budget, which was stated in Law No. 13 of 2024, did not be without the principle of its annuality in the issue of preparing the annual schedules and submitting them to the House of Representatives for approval, specifically for the two years (2024, 2025).
” He stressed, “The law on the approval of the tripartite budget constitutes an expression of an exchange of trust between the legislative and executive authorities to manage public financial affairs in our country to ensure the continued implementation of investment projects and the communication in the adoption of new projects in an integrated and planned manner.” Saleh continued that “annual government spending constitutes about 50% of the value of GDP directly, and exceeds 80% indirectly by affecting the work cycle and the general activities of the market and building its positive expectations and stability.”
He pointed out that “the three-year budget was the first experiment that was adopted in the financial history of the country and was adopted based on an explicit legal text contained in the Federal Financial Management Law No. 6 of 2019 as amended, so it became necessary to document this financial experience rich in its economic contents and evaluate its results and the requirements for its implementation in the future when proceeding with its adoption again, including the proposal to study an appropriate ame ndment to some provisions of the Financial Management Law in light of what was produced by the experience of the application of the Tripartite Federal Public Budget Law.”
Article quote: "Al-Kadhimi indicated that increasing the budget’s overall amount, from 199 trillion Iraqi dinars (nearly $152 billion) to 228 trillion Iraqi dinars (approximately $174.04 billion), resulted in a rise in the deficit, revealing that the budget is still being discussed in the Council of Ministers and would likely be presented to the Iraqi Parliament next month." It would logically follow that a revaluation would be likely before next month's USA confab.
[Response to Pimpy's HCL non-revenue sharing post from 3-31-2024 below]
The notion of revenue-sharing is nothing new in the Middle East. Bruni and Kuwait both do it...Revenue Watch Middle East Director Yahia Said recently returned from several months in Iraq working on the International Compact with the UN...This USIPeace Briefing summarizes the discussion. Many Iraqi citizens look to the law for what it can contribute to reconciliation, security, and welfare. The three parts of the agreement will deal with the issues of 1) revenue sharing; 2) restructuring of the ministry of oil; and 3) establishing the Iraqi National Oil Company (INOC).
It is quite clear that the HCL has intentions to codify the issue of welfare (not for government) and the number 1 issue is REVENUE SHARING. To be more specific; Section 1314 of the FY2007 Supplemental Appropriations Act [P.L.110-28] specifically identified the enactment and implementation of legislation “to ensure the equitabledistribution of hydrocarbon resources of the people of Iraq without regard to the sect or ethnicity of recipients” and “to ensure that the energy resources of Iraq benefit Sunni Arabs, Shia Arabs, Kurds, and other Iraqi citizens in an equitable manner” as benchmarks.
Prime Minister Mohammed Shiaa Al-Sudani received a group of members of the House of Representatives.
During the meeting, Al-Sudani stressed, according to a statement from his office, {Euphrates News} received a copy of it, “the importance of integration and coordination between the executive and legislative authorities; in order to support the work of the government and its program, which includes many priorities that concern citizens and state institutions, through its focus on service and reform aspects in various fields.”
The Prime Minister pointed out “the importance of proceeding with the adoption of laws aimed at improving the investment environment, developing the economy and meeting the terms of reform adopted by the government; in order to strengthen and diversify the resources of the state.”
