Baghdad - INA Prime Minister’s Advisor for Financial Affairs stated on Saturday that the government’s fiscal policies allow for increased spending without triggering inflation or fiscal deficits. Saleh emphasized that the government’s effective management of fiscal space means that investment spending on projects has not been disrupted, even during months with irregular public revenue.
He added, “The good performance of fiscal space reflects the government’s ability to boost spending or enhance social support without facing significant fiscal challenges such as inflation or large deficits.” Saleh also noted that this fiscal flexibility remains available as Iraq’s economic conditions improve, enabling the government to implement policies that stimulate growth, such as increasing infrastructure investment or enhancing social services.
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: GE all, Mark and mods. Bring us some good news please.
MZ: I have a number of bond contacts that reached out today to let me know that they are expecting timing and procedures updates tomorrow to let them know how they are handling the first 1%...times are ranging from mid- afternoon to evening tomorrow. So I should have an update tomorrow night what bond folks are hearing and expecting.
MZ: “Al Mashandi directs the lifting of the stalled laws to the Presidency of the House of representatives” Those laws are coming off “stuck” . One of those stalled laws is the HCL.
MZ: “In preparation for the resumption of exports, Parliament will raise the cost of purchasing oil in the 2025 budget” Now the Kurdish region can actually make money on the production of oil. This is one of the biggest sticking points between Baghdad and Erbil for the HCL.
MZ: “Relationship on the closing of the platform . There is no sudden transition but rather a gradual transition that will be completed within two weeks” Here are your banking changes. Alak announced today that their banking system is at its best. The process began in 2024 and there is 5% left to be completed within the next 2 weeks. Before Victory Day on Dec 10th I hope and pray it is done by then.
MZ: There are a whole lot of folks that say all these things coming together means a rate change. I believe them to be accurate.
MZ: If we are still sitting here after Dec 10th I am really gonna start to wonder.
MZ: “Officially Elena Romanowski’s assignment in Iraq ends” I would like to point out that a number of revaluations in the middle east while she was with the state department or an Ambassador…she was famous for that …maybe Iraq will be her “swan song” on her way out of the door.
MZ: We do not yet know who Trump will be putting in as the Ambassador to Iraq…..but you can bet it’s someone who is pro revaluation.
Member: thanks to all….and have a blessed night.
THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY
Central Bank of Iraq - CBI Governor Ali Al-Alaq announced on Monday that the monetary situation in Iraq is very excellent, indicating that external transfers for trade purposes are proceeding smoothly after the implementation of the new system.
"There are trends within the government aimed at diversifying and strengthening the national economy, as the banking sector does not flourish except when there is a diverse production base," said Al-Alaq, on the sidelines of his participation in the opening of the activities of the Arab Sustainable Development Week Forum in its 5th edition, held in Cairo, Egypt - attended by the reporter of the Iraqi News Agency - INA.
He noted, "Iraq suffers from heavy reliance on economic activity related to the oil sector, which contributes mainly to transferring oil resources to the trade sector. This constitutes a major imbalance in the structure of the economy. In other words, oil revenues are converted into building the economies of other countries through the large volume of imports. This requires the necessity of activating the banking sector to provide the necessary financing to establish real projects in the basic economic sectors, especially in the industrial and agricultural sectors, in addition to other sectors. I believe that this trend will contribute to reducing dependence on oil resources, in addition to providing job opportunities and real economic growth.
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"The monetary situation in Iraq is currently very excellent. The high volume of foreign reserves enables CBI to support and defend the exchange rate and achieve monetary stability, despite the difficult circumstances surrounding the countries of the region. CBI is working to find ways and means to meet all the needs of the country, citizens and the business sector for foreign currency," added Al-Alaq.
He pointed out, "Whenever the conditions and factors necessary for transfer operations or demand for foreign currency are available, CBI is ready to deal with this demand without any fears or concerns, which contributes to maintaining stability."
"CBI is currently distinguished from the rest of the countries in the region by its ability to respond to providing the country's needs for foreign currency, whether for the public or private sectors or even the civil sector, to meet various types of requests for foreign currency," he explained, noting "there is a historical transformation taking place in the framework of foreign transfers and meeting requests for the US dollar, as there were many observations that necessitated changing the procedures and policies related to dealing with foreign currency and providing it."
Al-Alaq stated that "CBI has implemented a new system for foreign transfers to ensure their fluidity and transparency, despite the challenges and difficulties that faced the implementation of these procedures at the beginning, but we have overcome those obstacles. Today, the process of foreign transfers for commercial purposes is proceeding smoothly, which explains the general control over prices and inflation, as the CBI continues to provide the dollar for trade at the official price."
"New methods have also been opened for transfers using other currencies, such as Turkey, India and China, in addition to European countries. This will make the process of foreign transfers more flexible and streamlined while ensuring transparency and oversight that enhances trust and credibility in the operations we carry out," he noted.
Regarding the provision of transfers for citizens for various purposes, such as travel, treatment or any legitimate transfers abroad, Al-Alaq confirmed, "We will launch a new method next year to expand and enhance these operations, just as we did for commercial transfers."
"There are agreements currently in place with relevant companies such as - Visa, Mastercard, MoneyGram, Western Union - to establish a new framework for implementing these operations, which will constitute another shift in controlling these operations," said Al-Alaq, adding that "next year or the beginning of 2025 will witness the completion of the current procedures. We seek to provide reassurance, especially with some people's questions about the fate of transfers after the completion of the electronic platform at the end of this year 2024."
He included “There is no sudden transition, but rather a gradual transition that began in 2024, where the banks’ relationship was transferred directly to correspondent banks without passing through other links, and the process has been completed with continued success. More than 95% of this goal has been achieved, and this process will be completed successfully within the next two weeks. There is international anticipation to celebrate this occasion.”
By the way, they voted on the three years budget
Where I found the 2025 budget table items
Which gave me the same rate of $13 per one Iraqi dinar
And they passed the three years budget today
And they will only fix two laws in it tomorrow .
Al-Alaq: The monetary situation in Iraq is excellent and our reserves support the stability of the exchange rate
The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Monday, that the monetary situation in Iraq is very excellent, noting that “the increase in the volume of reserves enables us to support the exchange rate and achieve monetary stability.”
Al-Alaq added in a press statement that the Central Bank is distinguished by its ability to "respond to providing the country's needs for currency," indicating that "foreign transfers for trade purposes are proceeding smoothly after the implementation of the new system."
Al-Alaq revealed that "the Central Bank will launch a new mechanism for travel or treatment transfers next year," stressing that "there are agreements with four companies to launch a new mechanism for travel or treatment transfers." link