Wednesday, January 15, 2025

Iraq faces economic collapse without reforms: Former Minister warns, 15 JAN

 Iraq faces economic collapse without reforms: Former Minister warns

Shafaq News/ Iraq could face severe economic challenges, including the inability to pay public sector salaries within two years, if critical reforms are not implemented, former Electricity Minister Luay Al-Khatib warned on Tuesday.


Describing Iraq’s governance as a system of “fiefdoms,” he emphasized the need for structural reforms to avoid what he called “inevitable collapse.”


In a statement on X, Al-Khatib highlighted the nation’s precarious economic situation, noting that “the deficit in federal budgets has reached 40%.”


He warned that if Iraq continues to draw on cash reserves amid fluctuating or falling oil prices, the value of the local currency could collapse. “In this scenario, the state will struggle to pay public sector salaries within two years,” he said.


Al-Khatib criticized the current governance model, stating, “Since the fall of the dictatorship in 2003, Iraq has been run by fiefdoms prioritizing private and sectarian interests.” 


“This has transformed the private sector into a façade for political profiteering, deterring real investments and foreign currency inflow,” he added, attributing Iraq’s ongoing challenges to widespread “corruption” and the absence of social justice and economic sustainability.


Turning to the electricity sector, Al-Khatib dismissed claims of external interference, describing the issue as “entirely domestic and political.” He argued that political interests have obstructed efforts to reform and privatize the sector, leading to inefficiencies and corruption.


“The cost of government subsidies for electricity and oil exceeds $30 billion annually, with $20 billion allocated to electricity alone,” he revealed, describing this financial drain as unsustainable.

He called for “comprehensive reforms,” including restructuring the sector, revising tariffs, automating billing systems, removing illegal connections, and eliminating exemptions.

“These steps are critical to making the sector viable for privatization and attracting global-standard investments,” Al-Khatib said.

The former minister estimated that fully rebuilding Iraq would require over $1.5 trillion, a figure that far exceeds the nation’s oil revenues. “Attracting foreign investment and hard currency is the only viable solution,” he explained, urging the creation of a “secure and competitive investment environment free from political interference and armed groups.”

He emphasized the importance of offering incentives to investors that are competitive with those in other regional and global markets.

Al-Khatib concluded by calling for a decade-long commitment to economic reform in line with Iraq’s Constitution. “This process requires uninterrupted, cumulative efforts beyond the authority of a single ministry,” he said, noting that “It demands full Cabinet involvement, political backing, and a nationwide media campaign to educate the public with clear and transparent messaging.”

MNT GOAT: The CBI told us That the ATM are an integral part of the Project to Delete the Zeros.!!!, 15 jan

 MNT GOAT

In another article titled “CENTRAL BANK RENEWS DIRECTIVE TO SPREAD AND EXPAND FINANCIAL SERVICES AND ATMS” 

we read that the Central Bank of Iraq renewed, on Sunday, a directive to banks and non-banking financial institutions to spread and expand their financial services in areas that lack the presence of various services for bank card holders. 

Why are these ATMs so important to our investment in the Iraqi dinar? They are important because the CBI told us they are an integral part of the Project to Delete the Zeros.

FIREFLY: IRAQ APPROVED AMENDMENT TO THE BUDGET !! WOW!! ‪@DINARREVALUATION‬ #iraqidinar

 


Barzani bids farewell to Baghdad: We renew our firm commitment to support a stable Iraq, 15 JAN

 Barzani bids farewell to Baghdad: We renew our firm commitment to support a stable Iraq

Baghdad-Mil  

The President of the Kurdistan Region, Nechirvan Barzani, concluded his two-day visit to the Iraqi capital, Baghdad, during which he met with a number of officials.

Barzani wrote in a tweet on the “X-Twitter” platform previously, “It was my pleasure to meet with the brothers, leaders and officials in Baghdad. In this context, we renew our firm commitment to supporting a stable Iraq that guarantees justice and fulfills the state’s obligations towards all its components.”

He added, “We affirm our keenness to strengthen relations between Erbil and Baghdad, in a way that achieves the public interest and establishes a more prosperous and stable future.”

EXCERPTS FROM MNT GOAT: Could this news get any better at this time? Can this be what is holding up the revaluation and the reinstatement? Just asking, 15 JAN

EXCERPTS FROM MNT GOAT

In this article economic expert “Safwan Qusay confirmed that the Central Bank’s policy is moving towards globalizing Iraqi bankswhile stressing that it will contribute to raising the status of these banks globally” also “the process of ending dealings with the electronic platform will contribute to accepting local banks that have the ability to provide guarantees and international compliance conditions with international correspondent banks.” 

Yes“providing guarantees and international compliance” is all insurance related Remember our Pillars of Financial Reform? Well… here they are again.  Investors in Iraq need to know that their funds in Iraqi banks will be protected and not subject to being stolen from corruption or in some cases, as from the past the events, “just disappeared!”.These past events of corruption left a nasty stain on the Iraqi banking system, to which they now have to overcome and are overcoming.

Now here is the real juicy part of the article and I quote “He added that these correspondent banks can carry out the process of changing the Iraqi dinar to any global currency immediately, and for more than a million banks around the world.” What did it just tell us? A million banks around the world? What does this mean to us as investors?

We know that from reading the White Paper of 2019 that conditions to get back to FOREX that this insurance part is a pillar of the financial reform. Therefore, it is a reform that needed to take place and is now taking place. Also, I want to add that the statement of “changing the Iraqi dinar to any global currency immediately is an amazing statement. The article goes on to also say and quote “this step will contribute to raising the status of Iraqi banks globally, “meaning that they will succeed in the process of having a name in international financial transfer operations, and gradually confidence between banks will be strengthened,”

Could this news get any better at this time? Can this be what is holding up the revaluation and the reinstatement? Just asking

MNT GOAT: The CBI told us That the ATM are an integral part of the Project to Delete the Zeros.!!!

 


British Prime Minister: We will announce with the Sudanese an increase in the volume of exports to 10 times, 15 JAN

 British Prime Minister: We will announce with the Sudanese an increase in the volume of exports to 10 times

Baghdad – Mil

British Prime Minister Keir Starmer said that during his meeting with Prime Minister Mohammed Shia Al-Sudani, on Tuesday, he will announce a 10-fold increase in the volume of trade exchange, and will begin talks with him on the “return of migrants” agreement.

The British government website stated that “British Prime Minister Keir Starmer will host Prime Minister Mohammed Shia Al-Sudani today to hold talks on the return of migrants and announce an export deal,” according to the official Iraqi news agency.

“An export package worth 12.3 billion pounds will be announced during the visit of the Iraqi Prime Minister, which exceeds the volume of trade between the United Kingdom and Iraq by ten times compared to last year,” Starmer said, noting that “this will provide huge opportunities for British companies.”

He added that he would begin “talks with the Sudanese about the return of migrants agreement, and that securing the border is a vital basis for our change plan, so I am pleased to start talks on a dedicated return agreement between our two countries,” adding that “the agreement will contribute to the dismantling of the work of human traffickers by sending a clear message that if you come here illegally, you do not expect to stay.”

Prime Minister Mohammed Shia Al-Sudani arrived in Britain on an official visit that will witness the signing of agreements and memorandums of understanding in various tracks, especially in the economic, investment and security fields, according to a statement from the Sudanese Office.

TIDBITS FROM BRUCE, 15 JAN

  Tues. 14 Jan. 2025 Bruce Trump has given a green light to the US Treasury  to activate the new US Note by Wed. 15 2025. Sources say Bondho...