The UN Security Council holds a special session on the situation in Iraq
The UN Security Council will hold a special session, Friday, on the situation in Iraq, and to review the latest developments in the country.
According to a post by the United Nations Assistance Mission in Iraq (UNAMI) on the X platform, the session will be held at (6:00 pm Baghdad time), and it is expected that the UN Special Representative, Mohammed Al-Hassan, will provide a briefing in the session on developments in Iraq and on UNAMI.
In July 2024, UN Secretary-General António Guterres appointed Mohammed Al-Hassan of the Sultanate of Oman as his new Special Representative for Iraq and Head of the United Nations Assistance Mission for Iraq (UNAMI), replacing Jeanine Hennis-Plasschaert . link
Iraq’s Parliament faces turmoil over budget oil compensation, while the Central Bank’s auction platform risks banking collapse and economic instability.
Highlights
🏛️ Iraqi Parliament is in deadlock over KRG oil compensation.
💰 The estimated cost of oil extraction in Kurdistan is contested.
📉 Iraq’s digital economy shows significant growth in payments.
🛡️ Iraq enhances border security amid conflicts in Syria.
🔄 Auction platform cancellation could collapse the banking system.
🌍 Dollar control shifts to foreign banks, risking economic stability.
📉 Uncertainty looms over the future of the Iraqi dinar.
Key Insights
🏛️ Parliamentary Deadlock: The ongoing conflict over Article 12 highlights the complexity of financial arrangements between the central and Kurdistan region governments, affecting national unity and economic planning.
💰 Oil Extraction Costs: The disparity in estimated extraction costs raises questions about the government’s financial strategies and the sustainability of oil revenue amidst rising operational challenges in Kurdistan.
📉 Digital Economy Growth: Prime Minister Al Sudani’s report on digital payments indicates a positive shift, yet raises concerns about the overall pace of economic modernization in Iraq.
🛡️ Border Security Concerns: The escalation of tensions along the Syrian border necessitates stronger security measures, impacting regional stability and Iraq’s internal security policies.
🔄 Auction Platform Risks: The potential cancellation of the dollar auction platform signals a deeper crisis within Iraq’s banking system, which could trigger widespread economic repercussions.
🌍 Foreign Influence on Dollar Control: The shift of dollar control to foreign banks raises alarms about economic sovereignty and could lead to monopolistic practices that destabilize the currency.
📉 Future of the Iraqi Dinar: The uncertain fate of the dinar amid these financial upheavals suggests a precarious economic future, with implications for local and international investors.
Al-Alaq receives representatives of the Innovation Center at the Dubai International Financial Center
The Governor of the Central Bank of Iraq, Ali Al-Alaq, discussed on Thursday with representatives of the Innovation Center at the Dubai International Financial Center ways of cooperation in the areas of enhancing innovation and entrepreneurship, and adopting financial technology and artificial intelligence in the Iraqi banking sector.
The media office at the Central Bank said in a statement received by "Al-Eqtisad News" that "the Governor of the Central Bank, Ali Mohsen Al-Alaq, in Baghdad, held a meeting with representatives of the Innovation Center at the Dubai International Financial Center, during which ways of cooperation were discussed in the areas of enhancing innovation and entrepreneurship, and adopting financial technology, artificial intelligence and advanced infrastructure."
The statement added that "the meeting reviewed opportunities to support innovation in banking systems and electronic payment solutions, and provide opportunities for emerging companies in these fields to enter Iraqi, regional and global markets."
He pointed out that "the meeting discussed developing training programs to build Iraqi capabilities to keep pace with global developments, enhance regulatory cooperation and adopt the best standards in the fields of financial technologies and banking technology."
The statement said that the two parties "discussed strengthening partnerships between the financial and banking sector, emerging companies and investors, in addition to interacting with universities and various institutions to support the next generation of Iraqi entrepreneurs, expressing their commitment to developing partnerships in a way that contributes to achieving the vision of the Central Bank of Iraq in building a digital economic system and a comprehensive financial system based on technology and innovation." link
Article: “With documents: Test of the draft amendment for the budget law.”
The second reading is done and we are waiting on the third reading to have their budget...We hear the third reading may be on Saturday.
The rumors in Iraq are along with that third reading they will announce the HCL. I am told there is a good chance it could be published in this Saturdays Gazette.
I heard that from a couple folks who believe that is going to be our “Go”...We may be in for a crazy few days everyone.
Ernst & Young reveals the completion rate of the Rafidain Bank restructuring project
The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, chaired an expanded meeting to discuss the project to restructure Rafidain Bank.
The committee for this project included officials from the Iraqi Ministry of Finance, the Central Bank of Iraq, the Prime Minister’s Advisor, and the Head of the World Bank Mission in Iraq, in addition to members of Ernst & Young as an expert auditor and consultant in the restructuring process.
The World Bank's Regional Director in Iraq, Emmanuel Salinas, explained the reality of work on this project, in which he presented the opportunities available within the banking work environment in Iraq and the mechanism for developing the restructuring plan in its operational and financial aspects.
While Firas Kilani, an expert in the restructuring project from Ernst & Young, explained that the project has made great progress since its inception in September 2024 and has currently reached 74%, and the next phase of the scope of work will be completed at the end of this month, moving to an advanced stage in this project.
The Governor of the Central Bank confirmed that the support of the Iraqi Prime Minister in this regard has positively accelerated the progress of the project, to reach important stages in the restructuring and development process at Rafidain Bank. link
