Boosting Non-Oil Revenues: A Game-Changer for Economic Stability

DINAR REVALUATION REPORT: Parliamentary Finance Committee's Visit to Erbil: A Focus on Non-Oil Revenues, 19 SEPT

 Parliamentary Finance Committee's Visit to Erbil: A Focus on Non-Oil Revenues

In September 2024, the Iraqi Parliamentary Finance Committee is scheduled to visit Erbil, the capital of the Kurdistan Region, to discuss non-oil revenues and other financial matters. 1  3  5

Background on Iraq's Fiscal Landscape

Iraq, heavily reliant on oil for its revenue, has been grappling with fiscal challenges and a need for economic diversification. 1 The country's ongoing efforts to modernize its financial and banking sectors and reduce dependence on oil have been hindered by political dynamics. 1 As of September 19, 2024, the Iraqi government faces a potential crisis due to plummeting oil prices, which could jeopardize its ambitious plans. 4

Recent Developments in Baghdad-Erbil Relations

The relationship between the federal government of Iraq and the Kurdistan Regional Government (KRG) has been tense, particularly over revenue-sharing disputes.  2The KRG has been accused of not meeting its obligations to hand over 400,000 barrels per day of crude production to the state marketer SOMO. 2 The dispute has been further complicated by Turkey's refusal to reopen its port of Ceyhan to Iraqi crude exports. 2

Non-Oil Revenues: A Strategic Focus

In light of the ongoing fiscal challenges and the need for economic diversification, the upcoming discussions between the Parliamentary Finance Committee and the KRG will likely focus on non-oil revenues. 3 These revenues are crucial for the sustainability of the Iraqi economy, especially given the volatility of oil prices. 4

The Role of Non-Oil Revenues in the Budget

Non-oil revenues, which include taxes, fees, and income from various sectors such as agriculture and tourism, play a vital role in the federal budget. 1 The 2024 budget, which was approved by the Iraqi government in March and sent to the legislature for voting, includes a record $152 billion in spending.  3 The budget originally allocated 12.6% of the spending to the Kurdistan Region. 3 However, the final numbers may have been adjusted during the voting process. 3

Challenges and Opportunities

The discussions between the Parliamentary Finance Committee and the KRG will address the challenges and opportunities associated with non-oil revenues. 3Economic experts have suggested that Iraq must implement serious plans to reduce imports, encourage the private sector, cut unnecessary expenditures, and increase non-oil revenues. 4

Parliamentary Finance visits Erbil next week and non-oil revenues top its talks, 19 SEPT

 The Finance Committee In The House Of Representatives Visits Erbil Next Week To Hold A Meeting With The Ministry Of Finance And Economy In The Kurdistan Regional Government

The visit, according to the head of the Parliamentary Finance Committee, Atwan Al-Atwani, aims to “stand on the points of contention to consolidate the understanding” reached between the Ministerial Council for the Economy and the Kurdistan Regional Government and “resolve the differences and turn the page on the past.”

Al-Attwani said in a press statement that “this will gives the momentum and strength to end the dispute whenever the picture becomes clear and everyone knows his commitments and duties.

Ministerial and technical delegations between Erbil and Baghdad held dozens of meetings, but nevertheless the financing of the salaries of salary tratifiers in the Kurdistan Region continues to witness a monthly delay. Every month, an pretext for delaying the salaries of salary trants in the Kurdistan Region is found.

https://alforatnews.iq/news/المالية-النيابية-تزور-أربيل-الأسبوع-المقبل-والإيرادات-غير-النفطية-تتصدر-مباحثاتها

LATEST FROM WOLVERINE, 19 SEPT

 WOLVERINE
Tues. 17 Sept. 2024 Wolverine

 Rubem Baz said, “At 15:30 Brazilian time on Tues. 17 Sept. was the last procedure between Brazil and Reno (USA).

 Tomorrow Wed. 18 Sept, after 11:00am invitations to go to the bank will be sent. In 48 hours (Fri. 20 Sept.) we will go liquid. This portion is 1%. Finally there is nothing left to do. Payments will now begin.” 

…“Things are defiantly happening behind the scenes.  We are going to be celebrating this week. There are things that I can’t say, but I wanted you to know that things are defiantly moving.” …

 “I agree with Mr Salvage report on German Bastidas who is one of the leaders of the Pentecostal Group. They have now finished all the contracts with the Call Centers which are located in Brazil.

 On Mon. 16 Sept. 2024 notifications began to be delivered. On Tues. 17 Sept. 2024 they closed the platforms and were ready to begin start the blessing. They will begin sending the transactions from the 1st to the 2nd of October to each member.”

Dinar Revaluation: Mnt Goat's Latest Insights @DINARREVALUATION

Iraq signs $290 million loan agreement with Austrian bank, 19 SEPT

Alsumaria News – Economy

The Minister of Finance, Taif Sami, signed with the Austrian Ambassador to Baghdad a loan financing agreement from the Austrian Erste Group Bank to support the center pivot irrigation systems project for the Ministry of Agriculture, with a value of (262,155,298) euros, and implemented by the Austrian Power Company .

And she said

Ministry of FinanceIn a statement received by Sumaria News, “The agreement is consistent with the strategy

NationalFor Iraq to strengthen infrastructure and public services, and aims to revive the agricultural sector, alleviate water scarcity, stimulate economic growth, and create jobs, the loan is part of a broader approach for Iraq to obtain external financing for investment projects with economic benefits, as outlined in the 2023-2025 budget and the decision

councilMinisters No. 24630 of 2024.The Minister stressed the “importance of this agreement in enhancing economic cooperation between

IraqAustria, looking forward to more joint projects in the future, will provide

a company(Power) provides technical and advisory support to the Iraqi Ministry of Agriculture throughout the project life cycle, including design, implementation, operation, and maintenance.She pointed out that “the project represents a vital step towards modernizing the agricultural sector in Iraq, especially in light of the challenges of water scarcity and climate change, and is expected to achieve long-term economic benefits by increasing agricultural production and reducing dependence on imports.”

https://www.alsumaria.tv/news/economy/500566/%d8%a7%d9%84%d8%b9%d8%b1%d8%a7%d9%82-%d9%8a%d9%88%d9%82%d8%b9-%d8%a7%d8%aa%d9%81%d8%a7%d9%82%d9%8a%d8%a9-%d9%82%d8%b1%d8%b6-%d8%a8%d9%82%d9%8a%d9%85%d8%a9-290-%d9%85%d9%84%d9%8a%d9%88%d9%86-%d8%af%d9%88%d9%84%d8%a7%d8%b1-%d9%85%d8%b9-%d8%a8%d9%86%d9%83-%d9%86%d9%85%d8%b3%d8%a7%d9%88%d9%8a?src=rss&utm_source=thewall360&utm_medium=rss-articles&utm_campaign=rss&utm_term=Rss#google_vignette

SANDY INGRAM CC NOTES HIGHLIGHTS: "THE IRAQI DINAR HAS A COMPLEX HISTORY" , 19 SEPT

Summary

The Iraqi Dinar has a complex history, marked by inflation, economic sanctions, and recent efforts for stabilization and growth.

Highlights

• 📉 Economic Turmoil: The Dinar faced severe devaluation post-2003 due to conflicts.
• 💰 Oil Dependency: Iraq’s economy heavily relies on oil exports, influencing Dinar value.
• 📈 Recent Reforms: Efforts are underway to stabilize and strengthen the currency.
• 🌍 International Relations: Sanctions impacted the Dinar’s global standing.
• 🏦 Central Bank Role: The Central Bank of Iraq plays a crucial role in monetary policy.
• 📊 Investment Opportunities: Growing interest in investing in Iraq post-conflict.
• 🔮 Future Prospects: Analysts are cautiously optimistic about the Dinar’s potential.

Key Insights

• 📉 Historical Context: The Dinar’s value plummeted after the 2003 invasion, illustrating how geopolitical events shape currency stability.
• 💰 Oil Price Impact: Fluctuations in global oil prices directly affect Iraq’s economy, underscoring the need for diversification.
• 📈 Economic Reforms: Recent monetary policies aim to curb inflation and stabilize the Dinar, crucial for economic recovery.
• 🌍 Global Influence: International sanctions significantly hindered the Dinar’s growth, reflecting the importance of diplomatic relations.
• 🏦 Central Bank Strategies: The Central Bank’s interventions are vital for maintaining currency stability amidst economic challenges.
• 📊 Investment Climate: The post-conflict era presents new investment opportunities, attracting foreign interest in Iraq’s economy.
• 🔮 Long-term Outlook: While challenges remain, optimistic forecasts suggest potential for the Dinar if reforms continue effectively.