Iraqi Parliament to Vote on 2024 Budget Amidst Disputes
ERBIL — The Iraqi parliament is scheduled to vote on the federal budget on Monday despite disagreements among the political factions regarding the legislation.
Iraq's 2024 budget will be discussed and voted on Monday, June 3rd, although disputes over the allocation of funds to the provinces persist.
According to a statement issued by the Iraqi parliament, the meeting will commence at 3 pm Baghdad time; however, disputes over provincial funding continue. The 2024 budget amounts to over 210 trillion Dinars, with a deficit exceeding 63 trillion Dinars, and the Kurdistan Region's share set at 20 trillion Dinars.
The Finance Committee will prepare a report on the schedule and present it at the meeting.
According to Kurdish MPs, the report will be discussed after it is read, and MPs are expected to deliberate on the forecasted expenditures, revenues, and deficits for 2024.
The meeting in Parliament requires the presence of half of the total number of MPs, and the budget's approval necessitates the vote of half of the members present.
This budget discussion in the Iraqi Council of Representatives occurs amidst the vacancy in the position of Parliament Speaker since November when the Federal Supreme Court revoked Mohammed al-Halbousi's parliamentary membership, ending his tenure as speaker.
The legislative session ends on June 9th and will be followed by a month-long recess.
Trump did not buy Iraqi dinars. You realize Trump has been tied to Iraqi dinar way before he was the president?
...You have to be careful about where you're getting your source from...
There are no articles out there that confirm this at all...There's no, and I mean none, proof out there that Donald Trump owns Iraqi dinar...
Article: "Expert: The Iraqi economy is witnessing a remarkable growth, with the decline in the dollar exchange rate." This is good. We need this to happen. Iraq needs it to happen. More importantly the policies that are being implemented by Iraq are favorable amongst the IMF, World Bank and all those people who are involved with making sure Iraq stay on track, stops laundering money and financing terrorist. The more Iraq continues to stay on track and prove to the world they are going to behave themselves for now on the doors open for Iraq to rejoin the international community...
Article: "Economist: The budget is not affected but dollar exchange rates. And explain the reason" The person is saying the budget is never affected by the dollar exchange rate because the budget is based on Iraqi dinars.
Article: Central Bank of Iraq quote "There are no current plans to print new currency."
What that tells me is people don't have to worry about a lop or redenomination because in order for you to have a redenomination or a lop you have to create new currencies. It also tells me they're not creating the lower denominations which means they're going to stick with the currency they currently have. Some people see this as the glass half full. Some people look at it as the glass is half empty.
I agree it's going to happen. I don't have doubt about that. I'm just keeping an eye on whether or not they want to delete the zeros. If they go to a free floating market hopefully there won't be...deleting the zeros and we'll see the exchange rate go up pretty quick before they have time to respond...
Iraq was already a member of the World Trade Organization. They are going through the ascension process for a second time. That's because all the rules, regulations, understandings and business practices...changed once the fall of Saddam Hussein. Now we have to make sure all their practices, rules and regulations regarding trade line up once again with the World Trade Organization. Iraq has been a member of the World Trade Organization since 2004. This is their second time throughout the ascension process...
There's this misconception that the World Bank, IMF and the BIS get to tell countries what to do. They don't...They facilitate. They make recommendations but they don't control a country's bank..----.
Another budget is getting ready to come and go and there is no talk of the rate change. Isn't that what they told you? It would be in the new budget because there was no way for them to do large projects, there was no way for them to move forward without an exchange rate change...Why so secret now? Is this one of those things they're trying to keep from the people?
They didn't keep it from the people last time [they increased the value] and there's no mention of it this time...Keep your fingers crossed, it hasn't passed yet so maybe they'll change it between now and the time they pass it...You guys know what I think.
Floating the currency means the value is determined by the market, so if people for whatever reason want to start investing in the Iraqi dinar and the start buying up the Iraqi dinar that means the demand for it is there, think supply and demand.
Since they have a liquidity issue, there's not going to have a lot of Iraqi dinar out there and if that's the case then they don't have the supply to feed the demand...But we'll be more than happy to sell our Iraqi dinar back to them if they get the exchange rate up around a quarter or more. I know I would.
Iraqi PM discusses Kurdistan Region's oil flow resumption, economic impact
ERBIL (Kurdistan24) - In an interview with Anadolu Agency (AA) on May 31, 2024, Iraqi Prime Minister Mohammed Shia al-Sudani addressed the prospects of resuming oil flow from the Kurdistan Region of Iraq (KRG).
He emphasized the significant economic impact of halting oil exports from the KRG fields.
“The stopping of pumping Iraqi oil extracted from the fields of the Kurdistan Region of Iraq (KRG) is undoubtedly a loss for Iraq, and at least it is a missed benefit that could support development plans in the provinces of the Kurdistan Region of Iraq and strengthen the overall Iraqi economy,” al-Sudani stated.
He outlined the efforts made to find acceptable settlements and legal solutions following a thorough legal study. However, he noted that the issue remains tied to legal commitments.
“The Federal Budget Law requires that the cost of producing one barrel of oil in all fields be within the national average production cost, which is about $8 per barrel, according to the Federal Ministry of Oil,” al-Sudani underlined.
He added that the KRG’s Ministry of Natural Resources calculates the production cost at about $26 per barrel under the contracts signed with operating oil companies.
“We have proposed either to amend the budget law or to amend the agreements and contracts with these companies. From this perspective, the companies stopped production, not because of a ban from the federal government, but waiting for a solution,” he explained.
Al-Sudani noted that while the companies refused to amend the contracts, the regional government agreed.
“For these reasons, more work is needed to find a legal solution that prioritizes ensuring the rights of Iraq and its people to their wealth,” he added.
This comes at a time when the Federal Ministry of Oil issued a statement, in which it called on the Ministry of Natural Resources in the Kurdistan Region and the oil companies operating in the region to hold a meeting as soon as possible, to agree to accelerate the restoration of oil production and resume its export through the Turkish port of Ceyhan.
As of March 25, 2023, crude oil exports from Kurdistan fields and Kirkuk Governorate to Turkey via the Turkish port of Ceyhan were halted.
This came after the International Arbitration Tribunal in Paris ruled that these exports were illegal, following a lawsuit filed by the federal government against Turkey in the International Court of Arbitration in Paris in 2014.
The lawsuit was due to Turkey allowing Kurdistan’s oil to flow into its territory and export it without Baghdad’s approval.
According to an agreement concluded between Baghdad and Ankara in 2010, the Iraqi Oil Marketing Company (SOMO) is the only entity authorized to export, market, and sell Iraqi oil in global markets.
Kurdistan was exporting 450,000 barrels daily to Turkey to secure the salaries of its employees and its financial revenues, due to the absence of an oil and gas law regulating the management of oil wealth in Iraq.
On April 4, 2023, Erbil and Baghdad reached a temporary agreement until the Iraqi Parliament approved the oil and gas law.
This agreement stipulated that the Kurdistan government would hand over 400,000 barrels per day to SOMO, form a four-part joint committee to supervise the sale of oil in global markets, open an independent account with the Central Bank to deposit financial revenues, and appoint a representative from the regional government to the position of assistant general manager of SOMO.
The ongoing negotiations and legal considerations are part of a broader effort to stabilize Iraq’s economy and ensure equitable distribution of resources across all regions.
[via PDK] I expected it to be pretty quiet this weekend. But folks are geared up for early next week. I have been told by a number of them that are ready and positioned.
[via PDK] There was a real good article...on Vietnam joining BRICS… ”High Level Talks indicate Vietnam poised to join BRICS... Great News for VND”This is great news as it shows their growing strength and manufacturing dominance of Vietnam. And they are pushing for their currency to be worth more as they join this asset backed group of BRICS….
Question: You mentioned your gut thinks the RV could happen between June 2 and 9th… Is that still valid?
MarkZ: Based on what I am hearing from the bond side, government side and group side…To me it’s what makes the most sense. But, I am not ruling out any moment, because it’s a strong possibility...But its highly possible it happens this weekend...I was once told the optimum time would be on a Saturday night to Sunday morning.
“Futures slide as bond yields spike to a 3 week high” We are watching an inverted bond market. We are watching the short term bonds out bid and out earn the long term bonds. I was always told this is key to the reset and we are watching it live. This bond market is in shambles. I was always told to watch for this just before the reset…and to watch for the HCL law to be passed in Iraq. We are now watching them as we approach the finish line.
This is pure gold this morning… Article: “US Ambassador praises Iraq’s official adoption of E-Payment system” This particular US ambassador is well known as the “Ambassador of re-valuations”She usually gets sent to whatever country whose value is about to change. She is there in Iraq right now.
It certainly is a “push” ...They are talking about it openly in the Iraqi news. …They are blatant on this one “The impending rate change”. They are telling us what they are doing... Articles in Iraq say clearly that the dinar is going to be worth more than the US dollar.
[via PDK]
did hear some interesting things from military contacts. One in particular kinda surprised me overnight...don’t panic because they do their best to cloud the timing...He said “Do not worry- it will be before July 4th.” We will have it all before July 4th. Actually a couple military contacts gave me that same time frame. I still have great hopes for sooner...it is interesting they have plans to have it completed by July 4th…For all we know it could happen tomorrow…nobody knows the timing.
Out of Iraq – hearing we are supposed to be getting news on Sunday that has to do with the budget but since they have already passed it- does this mean we are getting a rate? Or which projects were executed or started? I do not know.
I am seeing rates of somewhere between $3.81 to $3.91 from a number of contractors working in Iraq. They are working on infrastructure - everything from hospitals to power grid to roads etc... And I am still thinking it will be $2 something on the dong. I hope I’m wrong and my contacts are right and it’s closer to the $3 mark.
PM Al-Sudani inaugurates Digital Data Center, Traffic Signs and License Plates Manufacturing Plant
Shafaq News / Iraqi Prime Minister Mohammed Shia Al-Sudani inaugurated, on Saturday, the Digital Data Center at the Ministry of Interior and the Traffic Signs and License Plates Manufacturing Plant in central Baghdad.
The PM’s media office reported that the event was attended by the Ministers of Interior, Planning, Communications, Higher Education, Labor and Social Affairs, the Secretary-General of the Council of Ministers, the Governor of the Central Bank, and several government and security officials.
In his speech during the inauguration, Prime Minister Al-Sudani commended the efforts of the Ministry of Interior staff and the implementing Iraqi company.
“He highlighted the importance of the Digital Data Center in data preservation and exchange, noting the ministry's significant progress in providing electronic services to citizens, starting with e-passport and e-visa programs, and now extending to data collection.”
Prime Minister Al-Sudani emphasized that the Ministry of Interior, while primarily a security entity, also plays a critical service role and directly interacts with citizens.
He underscored the importance of “data sharing between departments and institutions,” stating that “access to data and information will enhance the Ministry of Interior's capability in combating crime.”
The Digital Data Center aligns with the Prime Minister's directives to ensure data security, promote data sharing, and rely on automation and digital transformation in service delivery, as per the media office. “It is part of the e-passport, e-visa, and other electronic portales projects funded by the Police Martyrs Fund.”
“The center will serve the Ministry of Interior and all its departments, including systems for electronic passports, e-visas, national ID cards, vehicle registration, driving licenses, criminal records, and other directorates. It can also support other ministries and the private sector in data hosting or backup, benefiting the public interest.”
The center houses 200 digital data cabinets and is designed for future expansion over the next 20 years. Built to high specifications, it can operate independently of national electricity for up to 30 days, as reported by the Prime Minister’s media office.
Additionally, Al-Sudani inaugurated a traffic sign manufacturing plant that will meet high standards, allowing vehicle owners to drive abroad.
Al-Sudani emphasized the significance of this project in providing a permanent solution to the longstanding issue of traffic signs.
“The first production line was installed in March and is now operational. The investing company is committed to delivering additional production lines in the near future to produce square signs and motorcycle plates. A dedicated team from the Directorate of Traffic/Directorate of Road Engineering and Traffic Signs underwent training at the plant on how to operate the new equipment.”
According to the media office, “Each production line can produce approximately 2,000 plates per hour, amounting to 16,000 plates during a single work shift, with the potential for increased output by extending working hours based on the Directorate of Traffic's needs. The plant is capable of producing three types of plates in various sizes according to the directorate's requirements: short plates, long plates, and motorcycle plates.”
