The financial adviser to the Prime Minister, Mazhar Mohammed Saleh, revealed on Tuesday the most prominent goal for which the First Rafidain Bank was established.
Saleh said in an interview with “Economy News” that “Rafidain First Bank was established as a commercial bank aimed at building a market economy exclusively, especially in the field of financing and investment.”
He explained that “the difference this time lies in the issue of ownership, which will become a private bank despite the state’s partnership with its capital by 24%, which is a percentage that did not make it within the mixed sector but within the private sector, as long as the state’s participation is below 25% of the capital under the texts of the Companies Law No. 21 of 1997, as amended.”
He added that “the goal is to transfer Rafidain Bank in part to market operations outside the banking government operations, which means opening up to international banks, creating strategic partnerships with international banks and integrating the international investment and financial environment effectively.”
The Council of Ministers decided to establish the first Rafidain Bank with a capital of one trillion dinars and a government participation rate of 24%.
The economist, Mustafa Akram Hannoush, described the establishment of Rafidain First Bank as an “excellent step.”
“The establishment of Rafidain First Bank is an excellent step, especially since it will be a mixed sector company,” Hantosh told “Economy News.”
He added that the new bank will help the country enhance the capabilities of payment and electronic transactions, in addition to that it will be an assistance to the Iraqi Bank for trading in remittances and credits.
I'm extremely excited because that 3rd reading [of the budget amendment] is basically guaranteed.Why would I say such a thing?
Because if they don't do the 3rd reading, 15 days later the budget is exposed...It exposes everything and once it does, then you got to figure out float or basket...
The HCL, like the budget, those two things will expose the new exchange rate...The HCL and the budget will be the first indicator of the new exchange rate IMO.
This The Ministry of Commerce announced on Thursday extensive preparations for the launch of the 48th session of the Baghdad International Exhibition, early next month. Ministry spokesman Mohamed Hanoun said: “The Ministry of Commerce is making great preparations to organize the 48th session of the Baghdad International Exhibition, which will witness wide and important international participation.”
He added that “a large number of companies have confirmed their participation, in addition to the announcement of many countries of their joining seriously and directly, and we still expect other countries to join in the coming period.” He pointed out that “what distinguishes this year from previous years is the volume of preparations and significant government support that accompanies the organization of the exhibition, the rehabilitation and development of arcades and pavilions witnessed by the Baghdad Exhibition, making it a prominent Iraqi square and prepared to receive visitors from various segments of society, including schools and universities, where the exhibition witnesses intensive daily visits.” He added that “this session aims to achieve strategic partnerships between the Iraqi private sector and its international counterpart, contributing to supporting the development process witnessed by Iraq,” noting that “the exhibition represents a vital step in the process of construction and reconstruction in all fields, and this requires the establishment of real partnerships that enable the private sector to support the national economy.”
He pointed out that “the ministry continues to work on the rehabilitation of pavilions and squares, including green squares, while providing alternative sites befitting the size of the event,” stressing, “We are committed to the exhibition at a level befitting the name of Iraq and its status.” Regarding the official opening, Hanoun stressed that “the official opening of the 48th session of the Baghdad International Exhibition is scheduled to be held on February 1, under the auspices of the Prime Minister, and with a wide official and popular presence.” He concluded by saying: “We hope that this major event will contribute to achieving a qualitative leap in economic and trade relations between Iraq and the world, and enhance the position of the Baghdad International Exhibition as a prominent economic platform.”
So, this next statement made by Al-Tamimi is also all telling in what the next stage is going to be and what they need to get there. I believe she is saying this because they are ready already for the next stage.
She explained that the Central Bank has replaced the electronic platform “with regular and natural transfer mechanisms”, through solid local banks, which provides merchants with direct ways to transfer money, stressing that these mechanisms contribute to their obtaining the dollar at the official price, which helps in gradually reducing inflation as a result of the stability of the official dollar price.
Oh … but here is the juicy part of Al-Tamimi’s commentary in this article. He also stressed that “with this measure, the need to deal in the unofficial dollar on the black market is reduced, which enhances the stability of the financial market in Iraq.” So here it is said again. How many more times must we hear this before it sinks in what is holding up going to FOREX, the next stage?
Today is Thursday and I did have a conversation with my CBI contact yesterday. This is why I am very excited today when I pulled this article off the Iraqi news channels. I could hardly believe that now the economic experts have finally turned to the mantra. The new mantra is – LETS GO TO FOREX! This was the same tone in my conversation. My contact sounded VERY excited and anticipatory.
😊There is another article that I want to address the title is “ADVISOR TO THE PRIME MINISTER: IRAQ IS WITNESSING AN EXPECTED INVESTMENT BOOM IN 2025”
The article says that advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, confirmed today, Wednesday, that the Iraqi economic path is moving in the right development direction for the coming years, while indicating that economic growth in 2024 constitutes an incentive to expand economic activities in Iraq.
Saleh said, in a statement to the Iraqi News Agency (INA): “There is a principle in the economy called the economic accelerator, which means that the growth in the non-oil GDP, which reached 6% in 2024, will be positively reflected in the strength of national investment in 2025.” He added, “The Iraqi economy will witness a high investment boom in 2025 thanks to the economic accelerator factor in the investment field, in addition to the high positive growth effects of national income in 2024.”
Okay so what does this all “accelerator” stuff mean?
This means that when you get to a point in your growing economy, with the right policies and laws in place it is ready for takeoff, like an airplane that is all gassed-up, the pilots have conducted their sequence of flight checks and all passengers are seated and buckled up. Like the airplane, the economy can then take off.
For the economy it's “exponentially”. Like an airplane that has to use the bulk of its power just on takeoff to get off the ground, the same applies to an economy’s growth.
But once the plane is in the air it can stay up in the with less force and glide through the air with its engines and so will the Iraq economy. That is what is going to happen in 2025. Through 2023 and 2024, the right policies and laws were put in place.
The right measures needed for this growth and takeoff are finally attracting investors and we even see it in three (3) of today’s other articles too for this period titled:
😊“AL-SUDANI: IRAQ IS AMONG THE MOST ATTRACTIVE COUNTRIES FOR INVESTMENT DURING THE PAST TWO YEARS”
😊“SHELL OIL COMPANY ANNOUNCES ITS READINESS TO INCREASE ITS INVESTMENTS IN IRAQ”
😊“IRAQ SIGNS A MEMORANDUM OF UNDERSTANDING WITH THE BRITISH EXPORT CREDIT GUARANTEE CORPORATION.. AND THESE ARE ITS OBJECTIVES”
Are you listening to what Saleh is telling us?
WOW! WOW! WOW! WOW! WOW! WOW! and WOW! again! The news today is mind blowing and I hope everyone shares this passion too. It seems now that Iraq is moving into the BIG TIME and I mean major plays are flocking to Iraq to invest their money. This is not Mnt Goat over exaggerating this notion. It is Iraq themselves showing us proof.
The news is NO LONGER all about putting measures in place, such as the banking and financial reforms we have been reading about, but the “next step”. But what will the next stage look like? Will it be what we expect and want as dinar holders and investors?
I also do not want to downplay any more reforms either as they will be ongoing too. But the question I pose is has Iraq finally reached this turning point we all have been waiting for? Is it time?
Central Bank: Closing the electronic platform will not affect the movement of remittances at all
economy | 09:47 - 01/16/2025 Mawazine News – Baghdad The Central Bank of Iraq confirmed that closing the platform will not affect the movement of remittances at all, while noting that transfers through this platform until 12/23/2024 are less than 7 percent of total sales.
A source explained to the official newspaper, which was followed by (Mawazine News), that "the aim of this step is to control financial operations and work within the international scope in the process of foreign transfers and adopt the method of correspondent banks, which contributes to enhancing the stability of the financial sector in light of the current circumstances.
" The Central Bank also indicated that "strengthening the balances of Iraqi banks that have correspondent banks abroad will continue as is," explaining that this does not mean stopping "currency selling" operations, but rather a change in their mechanisms within a method followed all over the world.
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He added that the mechanism for strengthening bank balances has changed, as it is now done through the accounts of Iraqi banks with correspondent banks directly, instead of the accounts that were done through the Central Bank, and that this new mechanism is dedicated to meeting the needs of imports and foreign trade of goods, commodities and services, which contributes to supporting the financial and economic stability of Iraq. https://www.mawazin.net/Details.aspx?jimare=258658
