PARLIAMENTARY FINANCE: 2025 BUDGET AIMS TO ACHIEVE MORE ECONOMIC STABILITY, 18 NOV

PARLIAMENTARY FINANCE: 2025 BUDGET AIMS TO ACHIEVE MORE ECONOMIC STABILITY

The Finance Committee revealed that the government has begun preparing the budget schedules for next year 2025, while indicating that the desired goals are to achieve development and increase non-oil revenues, in addition to achieving more economic stability for the country.

The head of the committee, Atwan Al-Atwani, said in an interview with “Al-Sabah” followed by “Al-Eqtisad News”, that “the government has begun preparing the infrastructure for the 2025 budget and has determined the requirements for reviewing this budget, as we look forward to these tables arriving next year or perhaps some of the items that the government needs to complete the requirements for their implementation, indicating that the goals set and desired from this budget are to achieve development, increase non-oil revenues, and search for means for clear economic stability.”

Al-Atwani added, “The operating budget has begun to extend over the investment budget, and this burdens the budget and makes it limited in its set objectives. Therefore, from now on, we must search for additional resources and achieve non-oil revenues that can provide stability to the economy,” indicating that this matter led to “our move towards rationalizing consumption because it is an important matter.”

Regarding the digital transformation process, the Chairman of the Finance Committee believes that this matter is “an essential structure for achieving a significant and noticeable increase in non-oil revenues, and all of this will be included and solutions sought for it in the 2025 budget.”

The head of the Finance Committee also explained that “the budget deficit may be the same as in 2024 because the government has been paying off its foreign loans, and in return, investment projects have been achieved and entered service, and there are other projects being implemented that have had a noticeable impact on the budget and its current expenditures.”

The head of the committee continued, saying: “The government has started financing projects in the governorates with a second batch that reached 400 billion dinars for all governorates, and the same is true for financing some ministries to achieve their goals,” noting that “the financing batch during the coming months will be large and in line with what the ministries and governorates need, given that there are projects that these ministries and governorates have started and the governorates and ministries will be required to pay their financial requirements, especially towards private sector companies.”

You’ll be able to hear the new exchange rate and see it’s imminent!!! , 18 NOV

DINAR REVALUATION REPORT: 

 Read all highlighted parts and

You’ll be able to hear the new exchange rate and see it’s imminent!!!

Al-Atwani to the French Embassy delegation: Halting external borrowing indicates an improvement in Iraq’s financial policy

Economy News - Baghdad

The head of the Finance Committee, Atwan Al-Atwani, explained on Sunday, during his meeting with the French embassy delegation, that the cessation of external borrowing indicates an improvement in Iraq's financial policy.

A statement issued by the media office of the Council of Representatives, and seen by "Economy News", stated that "the head of the Finance Committee, Atwan Al-Atwani, received a delegation from the Economic Attaché at the French Embassy in Baghdad." The statement continued, "During the meeting, the financial and economic situation in the country was reviewed, in addition to the role of the Finance Committee in monitoring spending and implementing the general budget items.

" Al-Atwani pointed out "the priorities that his committee is currently working on, most notably maximizing non-oil revenues to avoid the risks of fluctuations in global oil prices on the Iraqi economy, in addition to preparing a package of important legislation that would bring about a qualitative shift in the financial and banking sector."

He explained that "the decline in foreign borrowing indicates an improvement in our financial policy," noting that "the decline in foreign debts came after conducting a comprehensive review of the feasibility of these loans, as we stopped them and began to pay off the old ones, and we obligated that borrowing be only for productive projects that achieve a financial return and not for consumer sectors."

Al-Atwani called on French companies to "enter the Iraqi market forcefully, especially since they have previous successful experiences in implementing strategic projects."

He pointed out that "the provisions of the general budget gave the government the opportunity to encourage foreign companies to invest their money in the country by providing sovereign guarantees."

For his part, the French delegation expressed its happiness with this fruitful meeting, stressing "his country's desire to strengthen relations in various development fields with Iraq in a way that achieves the interests of the two friendly peoples." 

FRANK26: All they talked about this week was the HCL @DINARREVALUATION

 

BUDGET 2025: TOWARDS ECONOMIC DEVELOPMENT AND INCREASING NON-OIL REVENUES IN IRAQ, 18 NOV

 BUDGET 2025: TOWARDS ECONOMIC DEVELOPMENT AND INCREASING NON-OIL REVENUES IN IRAQ

The Iraqi government has begun preparing the 2025 budget schedules, amid aspirations that this budget will be a focus for achieving sustainable development and increasing non-oil revenues, in addition to enhancing the country’s economic stability. The head of the Finance Committee in Parliament, Atwan Al-Atwani, confirmed in a statement to Al-Sabah newspaper that efforts are directed towards completing the infrastructure for next year’s budget, as the requirements for reviewing the budget have been determined, noting that the government hopes to complete some important items to meet national needs. 

 Budget Goals: Comprehensive Development and Economic Stability

Al-Atwani explained that the main objectives of the 2025 budget include achieving economic development and increasing non-oil revenues, through developing means to enhance economic stability. With the operating budget increasingly dependent on available resources, it has become necessary to search for additional resources to boost the economy, where the focus has been on rationalizing consumption as a basic measure to achieve this goal.

Digital transformation and its role in increasing revenues

Al-Atwani pointed out the importance of digital transformation as a means of enhancing non-oil revenues, as he believes that this transformation constitutes an essential structure to support the national economy. This goal will be included in the 2025 budget by expanding the scope of digital transformation in various sectors, which will contribute to increasing revenues and developing financial management methods.

Challenges and financial deficit

Despite the ambitious trends, the Chairman of the Finance Committee indicated that the budget deficit may remain the same compared to 2024, given the government’s commitment to repaying its external debts and directing its resources towards investment projects. These commitments have been reflected in the budget through the financing of development projects and the entry of many of them into service, which has allowed for a significant improvement in economic stability.

Supporting projects in the governorates

In support of the governorates, the government has begun financing projects worth up to 400 billion Iraqi dinars, and is preparing to launch a new financing batch that matches the needs of the ministries and governorates. Al-Atwani stressed that the concerned ministries and governorates will bear the responsibility of paying their financial obligations towards private sector companies, which will enhance the role of the private sector in driving the wheel of development.

MILITIAMAN CC HIGHLIGHTS, 18 NOV

MILITIAMAN CC HIGHLIGHTS

Summary

Investment contracts in Iraq’s strategic industries are on the rise, signaling a shift towards activating the private sector and diversifying non-oil revenue streams.

Highlights

• 📈 Investment Opportunities: Iraq launched 256 investment opportunities confirmed through recent conferences.
• 🏗️ Major Contracts: Contracts signed for refined sulfur production, fertilizers, and glass projects show industrial growth.
• 💰 Japanese Loan: A new loan agreement for refinery development indicates ongoing economic cooperation with Japan.
• 🌍 International Collaboration: Turkish officials are visiting to discuss the vital development road project, enhancing regional connectivity.
• 🚀 Economic Growth: The development road project could create up to a million jobs, significantly boosting the economy.
• 🔄 Non-Oil Revenue Focus: Experts emphasize the need for Iraq to diversify its economy beyond oil dependency.
• 💵 Financial Strategy: The President is advocating for a transparent financial policy to bolster the banking sector and economic stability.

Key Insights

• 🔍 Investment Surge: The signing of multiple investment contracts highlights Iraq’s commitment to attracting foreign investors and enhancing industrial capabilities. This could significantly improve the economy.
• 🌱 Strategic Industries: Focusing on strategic industries like sulfur and fertilizers not only diversifies revenue sources but also strengthens local production capacities.
• 🤝 Japanese Collaboration: The continued partnership with Japan for refinery development supports Iraq’s long-term economic goals, showcasing the importance of international loans for infrastructure projects.
• 🚧 Infrastructure Development: The development road project represents a key strategy for economic integration, linking Iraq with neighboring countries and potentially boosting trade.
• 👷 Job Creation Potential: With projections of up to a million jobs from major projects, Iraq is poised for substantial labor market growth, which is essential for social stability.
• 📊 Diversification Imperative: The push for non-oil revenue streams reflects a broader strategy to stabilize Iraq’s economy and reduce vulnerability to oil price fluctuations.
• 🏦 Financial Modernization: Developing a clear financial strategy with transparency in banking practices is crucial for enhancing investor confidence and economic resilience.

MARKZ: yesterday’s test rates ( test rates popping up on dinar and dong...

GOLD RESERVES BOOST CONFIDENCE IN NATIONAL CURRENCY, 18 NOV

 GOLD RESERVES BOOST CONFIDENCE IN NATIONAL CURRENCY

Baghdad: The pillar of the emirate 

Gold plays a vital role in the monetary reserves of countries for several reasons related to financial stability, hedging against economic risks, enhancing confidence in the national currency, as well as being an effective tool for hedging against inflation. This prompted the Central Bank of Iraq, on several occasions and in successive years, to increase its gold reserves, which reached 148 tons and 305 ounces.  

Regarding the reason that prompted banks to rely on the yellow metal and nothing else, financial expert Mahmoud Dagher explained to “Al-Sabah” that the reason central banks, including the Central Bank of Iraq, increased their purchases of monetary gold is because it is suitable as a reserve compared to industrial gold, indicating that the Chinese Central Bank and the Indian Reserve are among the largest buyers of gold in the world.

TOTAL RESERVES

Dagher added that the Central Bank of Iraq has increased its gold holdings more than once during the past two years, the last of which was in the first quarter of 2024, until the total gold reserves reached 148 tons and 305 ounces after the last deal in May 2024 by 2 tons and 644 ounces. 

BANK ASSETS

He explained that although gold is not the best asset for generating returns when investing compared to currencies, deposits and securities that are permitted to be acquired within the assets of central banks, it is a haven for balance between other assets whose values ​​are affected by the nature of the economic cycle (recession and inflation), noting that the price of gold decreases during recession and increases during inflation, reflecting its balancing role.

GLOBAL TREND

He added that gold is also a haven when currencies fluctuate sharply against each other, as happened in the last two years for the ruble, yuan and rupee, and thus reduces the impact of what is called currency risk, pointing out that the Central Bank of Iraq did not deviate from the global trend in buying gold despite the rise in its price accompanying the global wave of inflation that hit major economies until it approached 10%; because the rule of purchasing assets by central banks is based on the principle of buying the asset when its price falls in the hope of selling it when it rises, which did not happen with gold because expectations during the last two years were towards an increase in gold prices in addition to the continued significant fluctuation of currencies among themselves.

AVOID INFLATION

For her part, the economic affairs specialist, Dr. Ikram Abdul Aziz, said that Iraq is the fourth Arab country in possessing large quantities of gold as an element indicating the soundness of the Iraqi economy, indicating that gold and hard currency reserves become a supportive means and an important framework for hedging and avoiding inflation and rising prices.

Abdul Aziz added, in an interview with “Al-Sabah”: Gold and foreign currency work to preserve the value of money and the resulting interest; therefore, countries seek to own large quantities of gold, noting that owning large quantities of gold reserves in light of the current fluctuations, geopolitical changes and the situation of the Iraqi economy is a safe haven to preserve value and hedge against inflation.

DEVELOPMENT PATHS

She explained that the presence of large quantities of gold at the Central Bank of Iraq is an important element in limiting dollar control and reducing instability, noting that Iraq achieved this increase in its gold reserves to serve development paths.

She added that the Central Bank of Iraq has a variety of reserves, including gold, whose stock is an effective means and a basic pillar for maintaining purchasing power, stressing that the presence of strong reserves and their diversity in the investment portfolio of the Central Bank of Iraq is a basic pillar and a factor that limits the rise in prices and hedges against inflation, and thus confidence in the existing economic system is achieved.

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