Al-Sudani's Advisor: The Government's Internal Debt Decreased By Two Trillion Dinars
Economy: September 13 Information/Baghdad… The Prime Minister’s Advisor for Economic Affairs, Mazhar Muhammad Salih, stated that the government’s internal debt has decreased by two trillion Iraqi dinars.
Mazhar Muhammad Salih said, “Iraq is not among the countries with external debt at the present time,” indicating that “the external public debt is less than 10 billion dollars, and this will be paid over the course of time between now and 2028.”
He explained that “there are allocations in the general budget to pay off debts, and this is what has made Iraq always in the credit rating and creditworthiness at level B, and it is stable like many countries such as Jordan, Egypt, Pakistan and others.
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Mazhar Muhammad Salih noted that “this debt has decreased, because Iraq has not borrowed and its external loans are few compared to its many repayments, especially during the past ten years on a regular basis.” LINK
“Guys, I’ve just been told that the RV has started as Iraq is officially live on the big screen. Bytomorrow Mon. 16 Sept.we should have Tiers starting to receive payment, which is liquid money. Waiting to hear more later on.
I’m very certain that notification should comeany day now. Like I was told, September is the golden month. …I’m absolutely excited. Some people have been waiting for this for thirty years.
We were told that this has started. It is liquid money. It is my opinion that notifications should be coming out today
Sun. 15 Sept, or tomorrow Mon. 16 Sept.at the latest.
Take care. Have a beautiful day.” …Wolverine
Later Sat. 14 Sept. 2024 Wolverine
“All banks have paid the transactions released yesterday in their accounts. Now they just need to send the notifications to those involved.
Central Bank of Iraq's Decision to Halt Currency Auctions
In a significant move aimed at strengthening the Iraqi dinar and curbing illicit financial flows, the Central Bank of Iraq (CBI) has announced plans to stop the daily currency auctions. The decision, expected to take effect by the end of 2024, marks a shift in Iraq's financial policy to combat corruption and financial crimes related to currency exchange.
Background on Currency Auctions
Historically, the CBI has conducted daily currency auctions to sell U.S. dollars to private banks and companies, converting oil revenues into Iraqi dinars. This mechanism has been central to Iraq's foreign exchange market, but it has also been a source of concern due to potential misuse and illicit cash flows, particularly to neighboring Iran.
The Decision to Halt Auctions
The CBI's decision to halt the currency auctions is driven by a commitment to financial reform and integration into the global economy.
By terminating the electronic auction platform for international financial transfers, the CBI aims to prevent dollar leakage and money laundering while maintaining the stability of the Iraqi dinar against foreign currencies.
Impact on the Iraqi Economy
The cessation of the currency auctions is expected to have far-reaching effects on Iraq's economy. On one hand, it could lead to a reduction in the availability of Iraqi dinars, affecting the government's ability to pay public sector salaries and meet other financial obligations. On the other hand, the move is anticipated to strengthen the dinar by reducing uncontrolled dollar outflows and enhancing the integrity of Iraq's financial system.
Future of Financial Transactions in Iraq
Following the closure of the currency auction window, Iraqi banks will be required to establish correspondent relationships with foreign banks for conducting international transactions.
This transition to direct commercial banking transactions is part of a broader effort to reform Iraq's financial and banking sectors.
Conclusion
The Central Bank of Iraq's decision to stop the currency auctions by the end of 2024 is a bold step toward financial reform and economic stability. While the move may present short-term challenges, it is anticipated to have positive long-term effects on the Iraqi dinar and the country's financial integrity.
ARE THE CENTRAL BANK’S DECISIONS ENOUGH TO STOP INFLATION AND STRENGTHEN THE CURRENCY IN IRAQ?
As part of the Iraqi government’s efforts to improve the economic situation and stabilize the local currency, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the role of the Central Bank’s decisions in reducing inflation rates and strengthening the value of the national currency.
While Saleh’s statements reflect the government’s commitment to achieving economic stability, many questions arise about the effectiveness of these policies in addressing real economic challenges.
The role of the Central Bank in stabilizing the currency: Saleh stressed that the monetary policies of the Central Bank, including decisions to raise or lower interest rates, play an important role in stabilizing the local currency. He explained that these policies aim to achieve a balance between the internal and external value of the currency, which is supposed to contribute to reducing inflation rates. While these measures are seen as economic stabilization factors, the question remains about the extent to which they will succeed in facing the challenges of rising inflation and other economic pressures.
Economic growth and strengthening the currency’s value:
Saleh pointed out that sustainable economic growth strengthens the currency’s value and stability. He stressed that the real factors affecting the currency’s strength include high productivity, good employment, real investment, and innovation. In this context, many wonder about the Iraqi economy’s ability to achieve this sustainable growth, in light of the challenges it faces, such as low oil prices and political crises.
Technology and Innovation:
Stimulating Productivity and Economic Growth: Saleh noted that technology and innovation can play a crucial role in improving productivity and economic growth, which enhances the value of the currency. However, while innovation and technology are positive factors, achieving these goals requires a suitable environment for research and development, as well as effective investment support. In this regard, questions remain about the extent to which Iraq can meet these requirements amidst the current challenges.
The importance of political and administrative stability:
Saleh also explained that political stability and the strength of the administrative system are important factors in enhancing confidence in the national currency. In this context, many people wondered about the extent of the political and administrative stability in Iraq, especially in light of the ongoing political crises and administrative challenges. Achieving political stability may be essential to achieving the desired economic goals.
Exciting updates on the Iraqi Dinar’s exchange rate reveal potential changes this weekend, alongside a shift towards diversifying economies away from oil reliance.
Highlights
🔥 Exciting Dinar updates may lead to exchange appointments starting Saturday!
🌍 Countries are diversifying their economies, moving away from oil dependence.
🌾 Agriculture and natural resources are becoming economic backbones.
📈 Infrastructure investments are crucial for export success.
💪 Reduced debt leads to sustainable economic growth.
🌱 Education and training are vital for success in new industries.
💬 Engage with local businesses to support economic shifts.
Key Insights
🔄 Economic Diversification: As countries shift from oil dependence, they are exploring agriculture and natural resources, paving the way for sustainable growth.
💡 Infrastructure Investment: Robust infrastructure is essential for exporting goods, making it a top priority for governments aiming to boost their economies.
🌱 Agricultural Innovation: Educating farmers in modern techniques enhances productivity, forming a crucial part of diversifying economies.
💰 Debt Reduction: By increasing non-oil revenue, countries can pay off loans faster, leading to healthier economies and reduced financial strain.
🌍 Global Interconnectedness: Economic shifts in one country can influence global markets, emphasizing the importance of collective growth strategies.
🎓 Skill Development: New industries require a skilled workforce; investing in education is essential for long-term success in diversified economies.
🤝 Community Engagement: Supporting local businesses and advocating for better policies can drive positive economic changes and foster community development.
