Friday, January 3, 2025
FRANK26: "YOU GOT THAT PARLIAMENT?", 3 JAN
KTFA
FRANK26: "YOU GOT THAT PARLIAMENT?"..........F26
Mazhar Saleh: No salary crisis and financial reserves cover liquidity completely
1/1/2025
Mazhar Muhammad Salih, the financial and economic advisor to Prime Minister Muhammad Shia al-Sudani, denied the existence of a salary crisis in the country, stressing the existence of large financial reserves that cover the required liquidity.
Saleh said in a press statement that "there have been speculations recently about oil prices, a liquidity crisis, etc." He added that "at the end of the fiscal year, a financial audit takes place, and therefore there may be a slight delay in issuing salaries for a few days, according to accounting reconciliations."
The Prime Minister's advisor confirmed that "there is no salary crisis, and what is happening here and there in this regard is nothing more than fantasy."
The Prime Minister's advisor confirmed that "there is no salary crisis, and what is happening here and there in this regard is nothing more than fantasy."
The monthly salaries of employees were delayed in the last month of 2024, while it is customary for the Ministry of Finance to pay the wages of self-financing companies starting from the middle of each month, as well as for the members of the ministry and banks, while the salaries of other ministries are released starting from the 23rd of each month.
Regarding the size of the money supply outside the Central Bank, Mazhar explained that it is “around 100-105 trillion dinars,” noting that “the size of the money supply inside the banking system is less.”
He stressed: "We have large foreign exchange reserves that completely cover this liquidity, which is estimated at about $105 billion."
Iraq, OPEC's second-largest oil producer, relies heavily on oil revenues, with the hydrocarbon sector accounting for the vast majority of export earnings and about 90% of state fiscal revenues.
Iraq raised its budget in 2024 even after record spending in 2023 when more than half a million new public sector employees were hired.
The 2024 budget rose to 211 trillion dinars ($161 billion) from 199 trillion dinars ($153 billion) in 2023, with a deficit of 64 trillion dinars.
The government has adopted in the budget $70 per barrel as the price of oil in 2024, which is about $6 less than the weighted average price.
FIREFLY: They're giving us instructions on how to bring in our 3-zero notes, 3 JAN
Frank26
[Iraq boots-on-the-ground report]
FIREFLY:They're giving us instructions now on TV and standards. They call it for the circulation and exchange of bank notes.
They tell us this mechanism is a unification...These are instructions on how to bring in our 3-zero notes... They just told us this mechanism will include a form of counting and sorting currency. They say this will be implemented 2nd of January.
FRANK: This is great news.
FRANK26: "SUDANI IS PROUD OF HIS REFORMS", 3 JAN
KTFA
FRANK26: "SUDANI IS PROUD OF HIS REFORMS"..........F26
1/1/2025
Baghdad - WAA
Prime Minister Mohammed Shia Al-Sudani congratulated the Iraqi people on the advent of the new year 2025, while calling 2025 the year of continuing achievements.
Al-Sudani said in a tweet on the (X) platform, followed by the Iraqi News Agency (INA), that "a new year full of hope and determination to continue the approach of serving our honorable Iraqi people, and the most beautiful congratulations and best wishes, coupled with supplication to God Almighty, to preserve our dear Iraq and perpetuate the blessing of security and stability in all its prosperous regions."
He added, "We have ended a year in which we made the utmost effort to achieve the aspirations of our people, and establish a sustainable development renaissance that makes a difference and moves this generation and future generations to the position that Iraq deserves among nations."
He continued, "At the beginning of 2025, we affirm our determination to complete all that we have started from strategic plans and projects and infrastructure, so that it will be "the year of continuing achievements", and we will not miss an opportunity except to make it on the path to serving the Iraqis by building the state, fighting corruption and achieving reform, providing job opportunities, and securing social and health services. May God protect Iraq and its people."
DINAR GURUS UPDATE, 3 JAN
DINAR GURUS UPDATE
Summary
The recent Dinar Guru updates reveal significant developments concerning Iraq’s currency auctions and the Central Bank’s strategy moving forward. The Central Bank of Iraq (CBI) has announced the end of the long-standing dollar auction system, which has been in place for two decades.
This decision is part of a broader initiative to transition to a new economic structure, which will include measures aimed at stabilizing the Iraqi dinar and reducing reliance on the US dollar.
Key figures in the financial community, including Deputy Governor Amar K. Kalaf, have confirmed the cessation of the controversial currency auction system, with a definitive closure date set for the end of 2024.
Despite the announcement, discussions among financial analysts and commentators suggest mixed interpretations regarding the future of currency auctions. Some believe that these operations will extend into early 2025, while others speculate on the implications of the new currency management strategies being adopted by the CBI. The conversation surrounding smaller denominations of currency is gaining traction, with reports indicating a heightened interest from banking employees and government officials in Iraq. This change is perceived as a necessary step towards modernizing the currency system and meeting the economic demands of the populace.
Moreover, ongoing debates regarding the “dinar for oil” program reveal complexities tied to contracts and redemption centers that have been suspended since October 2011. Observers note that without the proper contracts, individuals will not be able to benefit from any special rates, complicating the potential for currency exchange in the future. As the situation continues to evolve, many experts are keeping a close watch on the implications for the Iraqi economy and the potential for a rate change in the near future.
The video also highlights the optimism surrounding the upcoming days, with speculation about a celebratory moment on January 2, 2024, as the changes in currency management take effect. Analysts are keen to see how these developments will unfold, particularly in light of international dynamics, including the influence of the current US administration on Iraq’s economic policies.
Highlights
- 💰 End of Dollar Auctions: The Central Bank of Iraq announces the end of the dollar auction system after 20 years.
- 📉 Transition to New Currency Management: The CBI is transitioning to a new economic structure, with a focus on reducing dollar dependence.
- 📅 Scheduled Remittance Auctions: Currency auctions may continue into early 2025, despite earlier announcements.
- 🔍 Interest in Smaller Denominations: Increased discussions among banking employees about the necessity of smaller currency notes.
- 📜 Dinar for Oil Program Complexity: Ongoing confusion regarding contracts tied to the dinar for oil program and the lack of redemption centers.
- 🎉 Anticipation for January 2, 2024: Speculation about a celebratory moment coinciding with the implementation of new currency policies.
- 🏛️ Impact of International Politics: Discussions surrounding how the current US administration might influence Iraq’s economic strategies.
Key Insights
📊 Cessation of Dollar Auctions: The termination of the dollar auction marks a pivotal shift in Iraq’s currency management. This change is expected to stabilize the dinar and reduce the economy’s vulnerability to external dollar fluctuations. The shift suggests that Iraq is attempting to assert more control over its monetary policy and lessen the historical reliance on the US dollar for everyday transactions. This could lead to a more stabilized economy if managed effectively.
🔄 Future of Currency Auctions: While the CBI has announced the end of the dollar auction, the fact that discussions are ongoing about the continuation of some auction processes into early 2025 indicates a phased transition. This could serve as a buffer period for businesses and individuals to adapt to the new financial landscape, ensuring a degree of economic stability as the new policies take effect.
💵 Demand for Smaller Denominations: The growing interest in smaller denominations reflects a shift towards making transactions more accessible for the average Iraqi citizen. This move may facilitate everyday purchases and could also signal a broader intention to enhance financial literacy and engagement within the population, ultimately fostering a more inclusive economy.
⚖️ Dinar for Oil Program Challenges: The complexities surrounding the dinar for oil program highlight the challenges in Iraq’s economic infrastructure. The absence of redemption centers and the suspension of contracts since 2011 reveal systemic issues that must be addressed for effective currency exchange strategies to emerge. Without a clear framework for these transactions, the potential benefits of the dinar for oil program may go unrealized.
🎊 Celebratory Expectations: The anticipation surrounding January 2, 2024, suggests that stakeholders are hopeful for a significant turning point in Iraq’s economic situation. The optimism may be fueled by the belief that the new policies will bring about much-needed changes, potentially revitalizing the economy and improving the standard of living for many Iraqis.
🌍 Geopolitical Influences: The acknowledgment of international politics, particularly the role of the US administration, emphasizes the interconnected nature of global economies. Changes in US policies can directly impact Iraq’s economic strategies, making it crucial for financial analysts to consider these external factors when predicting future financial developments.
🔮 Potential for Rate Change: The mention of an impending rate change for the dinar indicates a critical moment ahead for Iraq’s economy. If the CBI can implement this change successfully, it could significantly strengthen the dinar’s position in the global market, fostering greater confidence among both local and international investors. This could lead to increased investment in Iraq’s economy and a stronger financial future for its citizens.
Together, these insights not only reflect the current state of Iraq’s economic policies but also highlight the complexities and challenges that lie ahead as the country navigates this transformative period in its financial history.
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