Iraq's Pursuit of Enhanced Economic and Investment Cooperation in 2024
In 2024, Iraq is demonstrating a strong commitment to enhancing its economic and investment cooperation with global partners, aiming to diversify its economy and reduce dependency on oil. The President of the Republic, Abdul Latif Jamal Rashid, affirmed Iraq's eagerness to strengthen such ties, underlining the country's readiness to provide a conducive environment for strategic development projects.
Iraq's Economic Context and Challenges
Iraq, one of the world's most oil-dependent nations, has been grappling with the volatility and rigidity of its oil-centric economy. Despite a gradual recovery from the dual shocks of the oil and COVID-19 crises, the country faces significant unemployment and economic challenges, especially among displaced individuals, returnees, and women job-seekers.
Seeking Diversification and Stability
Recognizing the need for economic diversification and stability, Iraq has been actively seeking partnerships to boost non-oil sectors and secure fiscal sustainability. Recent efforts have included discussions with the International Monetary Fund (IMF) on fiscal adjustments and strategies to enable private sector development.
Bilateral Cooperation and Investment Opportunities
Iraq has also been engaging in bilateral dialogues to explore investment opportunities and partnerships. A notable example is the Qatari-Iraqi Joint Committee for Economic and Trade Cooperation, which met in July 2024 to discuss avenues for cooperation, particularly in industry, infrastructure, renewable energy, and digital transformation.
Political and Economic Agendas
Iraq's Prime Minister, Mohammed Shia al-Sudani, has emphasized the importance of focusing on economic, educational, and people-to-people domains during his visit to the United States.
Despite domestic and external pressures, al-Sudani is navigating the country's political and economic agendas with a view to fostering comprehensive bilateral relations.
Conclusion
Iraq's initiatives in 2024 reflect a strategic shift towards economic diversification, investment in non-oil sectors, and the strengthening of bilateral relationships. This approach is expected to create a more resilient economy, attract foreign investment, and foster sustainable development in the face of global economic challenges.
The President Of The Republic Affirms Iraq's Keenness To Enhance Economic And Investment Cooperation With Its Brothers And Friends
Thursday 12 September 2024 | Economic Number of readings: 339 Baghdad/ NINA / President of the Republic Abdul Latif Jamal Rashid affirmed, today, Thursday, Iraq's keenness to enhance economic and investment cooperation with its brothers and friends.
A statement by the Presidency of the Republic's media stated: "President of the Republic Abdul Latif Jamal Rashid received, today, Thursday, at the Baghdad Palace, the Secretary-General of the Council of Arab Economic Unity, Ambassador Mohammadi Ahmed Al-Ni and his accompanying delegation."
During the meeting, according to the statement, efforts to develop and support Arab economic work were reviewed, as well as ways to confront economic challenges in coordination and cooperation with the relevant Iraqi governmental institutions.
The President of the Republic stressed Iraq's keenness to enhance economic and investment cooperation with its brothers and friends, and to provide the appropriate environment to contribute to major strategic development projects, explaining: "Iraq stands today on the threshold of a new phase of security stability and economic development, and it looks forward to fruitful cooperation and a real economic partnership."
For his part, the guest delegation expressed its thanks and appreciation to the President of the Republic and his future vision for improving the reality of joint economic work, expressing its hope for Iraq's support for the work of the Council in order to achieve the higher goals that serve common interests. / End 2 https://ninanews.com/Website/News/Details?key=1153362
First of all R&R and SS increases – SS increase I’m getting - this increase we are looking for should happen the 3rd and 4th Wednesday of this month and if not by the end of this month. And R &R what we are hearing this is going to show up for those of us exchanging will be in our QFS account and is there already.
And then we can move some of that into our primary or secondary account. Don’t be shy about moving funds. And remember you can go back and whatever you move should last you for 90 days. And that’s the only reason for the QFS card - it’s the size of a CC but three times as thick and it’s ONLY used to move funds into your other bank accounts and up to three banks.
For those not exchanging Zim – the R&R should be by the end of this month. And the Debt Jubilee is to occur starting this month. And again – personal opinion of Bruce about R&R and Debt Forgiveness will occur after we start - but we will see.
What we are hearing today is positive for the Bond Holders and those in 4 A & B supposed to be on a shotgun start with T3 - so some with sheet bonds take them with you to your exchange and let them know you have them and what they are? Not ZIM – Sheet Bonds – because you will need a little longer time.
What else? When it comes to the Bond Holders they can see the funds in their accounts but they cannot get access till tomorrow – we have people who’ve gone in today and they had to get the QFS cards up and running and then tomorrow they’ll have all the other things they need with these accounts set up for them – 5 things - that will give them access and certain people we know will do that tomorrow and that is great news because that tells us about us – and tomorrow Friday 13th and another piece of intel he received today – says everything –
WE according to this good source – should receive everything after markets close tomorrow at 4pm and then everything released to us – the emails and then set our appointment and exchanges Saturday – RC said they’d be working four days in a row. It will be good speaking to a LIVE human being and it will be quick to set those appointments and maybe your email for a confirmation of the appointment – but don’t to appointment more than ten minutes before – so try not to get their late – just ten minutes early to the RC - so to be fair some RC are attached to banks.
People will be there to verify your currency and count it and US marshals there for security. What I’m saying is it looks very good for tomorrow or Saturday - Bruce is still hoping for 4pm after the markets close and we SHOULD HAVE AN EXCITING WEEKEND - Bruce thinks if it happens after 4 we should be setting exchanges for Saturday. The bank hours are not the same as the RC which are very different and depends on where you are and appointments might even happen late at night - because the ZIM will hydrate the banks and us – Bruce was hoping for a late piece of intel and that’s what came out.
So that’s all Bruce has for us tonight and it’s GREAT INTEL – so please please please join in this prayer with Bruce and KEEP THOSE HEARTFELT PRAYERS SAID until we finally are SO BLESSED AND SEE THOSE NOTIFICATION EMAILS IN OUR INBOXES. I know you ALL will be ALL our prayers are so powerful and SO NEEDED.
Here we discuss the current state of the Iraqi Dinar and the challenges of the parallel market, emphasizing the impact on the economy and citizens.
Highlights
🔄 Official exchange rate vs. parallel market rates.
💰 Iraqi revenues exceed 77 trillion Dinars in 2024.
📈 The allure of US Dollars in Iraq drives parallel market growth.
⚖️ Government faces a dilemma on adjusting exchange rates.
🌍 Economic parallels drawn with Venezuela’s hyperinflation.
📚 Education is vital for addressing parallel market risks.
Key Insights
💱 The disparity between the official exchange rate and the parallel market creates distrust in the Iraqi Dinar, prompting citizens to favor the latter.
📊 Iraq’s financial landscape is heavily reliant on oil, contributing about 89% to the federal budget, showcasing vulnerability in economic diversity.
🚀 The thriving parallel market reflects a lack of confidence in the Dinar, indicating broader issues that affect everyday transactions for Iraqis.
⚠️ Government actions to raise or lower the exchange rate could lead to inflation or decreased trust, highlighting the precarious balance needed for economic stability.
🌐 Drawing lessons from Venezuela illustrates the severe consequences of currency mismanagement, serving as a cautionary tale for Iraq.
🎓 Raising public awareness about the risks of the parallel market can foster a shift back to official channels, stabilizing the economy.
🌟 The ongoing situation requires careful navigation by businesses and travelers, impacting daily life and economic sustainability in Iraq.
Winners and Losers from the Fluctuation of the Dollar Exchange Rate against the Dinar in Iraq, 2024
The fluctuation of the dollar exchange rate against the Iraqi dinar has significant impacts on various sectors and individuals in Iraq. As of September 13, 2024, the official exchange rate stands at 1,310.400767 IQD per USD. a figure that has seen considerable volatility over the past year.
Impact on Importers and Exporters
Winners: Importers
Lower Import Costs: The revaluation of the dinar in February 2023, from 1,450 to 1,310 per dollar, has made imports cheaper for Iraqi importers. Increased Competitiveness: The reduced cost of imports has allowed Iraqi businesses to increase their competitiveness in the domestic market by offering goods at lower prices.
Losers: Exporters
Decreased Revenue: Exporters of non-oil goods have been negatively impacted by the revaluation, as their products have become more expensive abroad.
Reduced Competitiveness: The stronger dinar has made Iraqi exports less competitive in international markets, potentially leading to a decrease in export volume.
Impact on Consumers
Winners: Consumers
Lower Prices for Imported Goods: With the dinar's revaluation, the prices of imported goods have decreased, benefiting consumers who rely on imported products.
Losers: Consumers
Increased Inflation: The disparity between the official and black market exchange rates has led to higher prices for some goods, causing inflationary pressures on consumers. Uncertainty in Pricing:
The volatility of the exchange rate has led to uncertainty in pricing, making it difficult for consumers to budget and plan for future expenses.
Impact on the Economy
Winners: Government
Increased Fiscal Capacity: The revaluation in 2023 was beneficial for the government as it helped in obtaining more dinars for each dollar of oil revenue.
Losers: Economy
Corruption and Black Market: The existence of dual exchange rates has encouraged corruption and facilitated the growth of the black market, as individuals and entities can profit from the difference between the official and market rates. Economic Disruption: The dual exchange rates have disrupted existing contracts and discouraged trade and investment, slowing economic growth.
Conclusion
The fluctuation of the dollar exchange rate against the Iraqi dinar presents a complex scenario with winners and losers across different segments of Iraq's economy.While importers and the government benefit from a stronger dinar, exporters and consumers face challenges due to increased competition and inflationary pressures. The long-term effects on the economy are mixed, with potential for economic disruption and increased corruption if the disparity between official and market exchange rates persists.
Regardless of the significant stretch of time starting from the beginning of the electronic stage to screen the development of the dollar, the trade paces of the dinar against the US money actually experience an enormous uniqueness between the authority cost declared by the National Bank, which is 1320 Iraqi dinars for each dollar, and the bootleg market cost, or what is known as the equal cost, which ranges somewhere in the range of 1490 and 1510 Iraqi dinars for every dollar.
In addition, he announced at the beginning of 2023 that, in response to warnings issued by the Federal Reserve (the US Central Bank), Iraq would adopt an electronic platform to monitor the movement of dollar sales and money laundering operations. Additionally, the US Treasury Department would penalize a number of local banks for their involvement in activities that appeared suspicious.
The electronic stage for moves works Unfamiliar Oversaw by the National Bank of Iraq, in its most memorable period of re-to coordinate Cash moves, guaranteeing proactive command over them as opposed to ex post control through the Central bank evaluating everyday exchanges.
Furthermore, he endorsed chamber Iraqi clergymen on February 7, 2023 on the choice gathering organization National Bank of Iraq By changing the swapping scale of the dollar against the dinar, identical to 1300 dinars for each dollar after it was 1480 dinars for every dollar.
On the fourth of this current month, it was reported National Bank of Iraq The “electronic stage” through which US dollar moves abroad are done is going to be finished, demonstrating – in a press explanation – that during the year 2024 and as of not long ago, 95% of the exchange cycle from the electronic stage to “comparing banks” has been accomplished, and that implies that just around 5% of it stays inside the stage, which will be moved utilizing a similar system before the finish of this current year and as per the arrangement.
This choice by the National Bank brought up many issues about the degree to which it has had the option to Iraq Forestalling the pirating of hard cash, halting illegal tax avoidance tasks, and the degree of the progress of financial measures in controlling money sneaking and controlling the cost on the lookout.
*Champs and failures from conversion scale changes, part affirmed committee The administration of the Iraqi Financial specialists Association, Abdul Hassan Al-Ziyadi, said that the primary recipients of the change in the swapping scale of the dollar against the dinar in Iraq are cash carrying brokers and cost examiners, adding that the first to be hurt is Ira qAnd the resident.
Al-Ziyadi said, “The dollar emergency in Iraq Impacted all joints life Business and non-business,” he added, “brokers were hurt by the ascent in the dollar conversion scale, and residents were additionally hurt in light of the fact that the precariousness of the swapping scale annihilates the family’s pay and month to month asset.”
He proceeded, “Assuming he believed Iraq Should dispose of this befuddling circumstance, he should initially dispose of the import of numerous products and depend on assembling them locally to decrease the requirement for hard money as well as creating farming,” taking into account that “the Iraqi government and the National Bank are fundamentally liable for the disappointment of the cash selling stage.”
*Depleting cash The specialist in monetary undertakings and an individual from the Overall Power of the Iraqi Bookkeepers Organization brought up HusseinNima Al-Karaawi until the section Iraq In the American “Quick” framework in 2023, it was the justification behind numerous dealers to cease from the cash offering stage and go to the underground market because of a paranoid fear of having their cash seized, notwithstanding the absence of systems to assist brokers with trying not to have their cash seized.
Al-Karawi said that “the cost contrast between the dollar and the dinar in the authority or equal cost surpasses 17 focuses per dollar, so how is the situation with extremely huge sums?” He thought about that “this matter addresses a channel on reserves.”
That’s what he added “deals have declined altogether in Iraq In light of the adjustment of the swapping scale and the absence of genuine command over the vacillations in return rates on the lookout,” clarifying that the explanation is expected for the presence of line intersections outside the control of the public authority It is taken advantage of by some dollar carrying posses.
Al-Karawi trusted that “the resident is the person who pays the expense of the swapping scale vacillations. Albeit the funding for imported merchandise is through the stage at the authority cost, as a general rule numerous products and wares are sold in the nearby market at the equal dollar cost.” He said that the stage was Sell Day to day, it comes to $280 million, however the sum has now diminished to under $240 million every day, adding that the distinction between the two sums goes to sneaking and the equal market.
“The government and the Central Bank have taken many measures internally and externally to control the smuggling process and control the exchange rate,” Al-Karawi confirmed.
He made sense of that a few banks were hurt by the boycott forced on them by the US Central bank and by pirating tasks, which added to raising the conversion standard on the underground market. He also said that the government’s revenues would suffer as a result of a decrease in the dinar’s value against the dollar because the government makes its money by selling oil and getting dollars in return, then selling it on the official platform for banks and traders.
Controlling line intersections The representative for the Baghdad Office of Business, Rashid Al-Saadi, trusted that controlling boundary intersections and computerizing the divisions worried about the import and product document are the best way to control cash carrying.
“There are parties that tried to thwart the currency selling platform in order to benefit from illegal transfers,” Al-Saadi stated.
He added, “Iraq has lost huge amounts of cash because of pirating of products and hard money and altering the valuation of merchandise at line intersections.”
Resident Ahmed Jabbar, who possesses supermarkets, required the public authority Iraq to help the economy and improve the buying force of residents by fortifying the nearby money and supporting neighborhood industry and farming.
Jabbar expressed, “Selling in dollars has impacted the Iraqi market. We urge the public authority To restrict dealings in the nearby cash, as it adds to the security of the market and the monetary circumstance of residents.