This is what I was talking about, once Trump gets into office how is this going to affect Iraq.
You see Trump has already approached Saudi Arabia and OPEC to ramp up production of oil. If they ramp up production of oil this will drive down the cost per barrel. Of course here in America we benefit from it, lower gas prices...Iraq...
they have built everything based on $70 per barrel of oil. Now the new budget hasn't passed yet.
One of the things...they need to figure out is how much they think they're going to get per barrel. If they ramp production that's diluting the market with oil. That's going to cause the price to go down. That's one of the things I was concerned about.
The head of the Iraqi Business Council, Daoud Abdul Zair, considered the continuation of the budget deficit a “great danger” on salaries, while he revealed an upcoming visit by the Central Bank of Iraq to Washington to discuss important issues.
Abdul Zair, during his hosting in the program {Free Words} broadcast by Al-Furat satellite channel on Tuesday evening, said: “The rise in operational spending since 2019 is due to employment, government and federal obligations, and employee salaries, along with the requirements of the political and administrative situation of the state,
explaining that “80% of operational spending goes to salaries, while 10% is allocated to sustain the management of public resources.” Abdul Zayer pointed out that “corruption represents a prominent problem in government spending in general, including operating spending,” stressing that “the main imbalance lies in the philosophy of managing the economy in the country, where salaries are supposed to be financed from local revenues.”
He added that “the Prime Minister has diagnosed this defect; however, Iraq always faces emergency crises that prevent the provision of a suitable climate to convert oil resources into development and investment projects capable of covering part of operational spending.”
“Salaries constitute a great burden on the budget, as it reaches 8 trillion dinars,” Abdul Ziyar said. Regarding financing,
Abdul Zair stressed that “the internal debt is safer and faster compared to the external debt, which imposes complex restrictions and conditions on Iraq,” warning that “the continuation of the budget deficit constitutes a threat to salaries,” pointing out that “the Central Bank’s reserves represent the sovereign fund of Iraq.”
He touched on “the impact of oil price fluctuations, saying that the reserves of the Iraqi dinar are based on oil reserves, which gives Iraq flexibility to act in the event of low oil prices,” adding that “Iraq’s non-compliance with OPEC decisions on reducing production may lead to low prices.”
“An upcoming visit by the Central Bank of Iraq to Washington to discuss intractable issues, such as the exit of the dollar to punishing countries, and foreign trade through American banks to ensure control over the transfer of funds,” Abdul Zair revealed.
He pointed out that “as of this year, the bank account will be financed in dollars directly from the central bank away from the currency auction, and the process will be limited to 5 local banks approved by the US Treasury, most of them foreign.” Abdel Zair concluded by pointing out that “the performance of the central bank so far does not meet the ambitions,” stressing that “reliance on the export of crude oil will remain a chronic problem unless it is converted into oil industries that contribute to supporting the national economy.”
The below message recently comes up on this site [xe] when you inquire about the IQD. It says “Notice IQD may be redenominated”.
This redenomination is the newer lower denominations we have been waiting for. Yes, they will have to execute the Project to Delete the Zeros.
We know that the CBI must also raise the rate of the dinar at par or just over a dollar within country to get this project started and create incentives to turn in the dollars.
This is really the final push to de-dollarize Iraq. The CBI still needs to break this parallel market. As long as the dinar is much lower than the dollar this issue will linger.
The Undersecretary of the Ministry of Finance, Ribaz Hamlan, announced on Tuesday that he discussed the salary file of Kurdistan Region employees with Prime Minister Mohammed Shia Al-Sudani.
“We visited Prime Minister Mohammed Shia Al-Sudani, and discussed during the meeting the financial situation and the challenges we face during the current year, then we informed the Sudanese about the budget and salaries of the employees in the Kurdistan Region, and the message of the Prime Minister of the Kurdistan Region Misroor Barzani came during the last extraordinary meeting of the Council of Ministers of the Regional Government on this situation, which was held on the 11th of this month,” said in a statement.
He added, “I explained to the Prime Minister in detail all the steps that the Kurdistan Regional Government and the Ministry of Finance are working on on a daily basis in the presence of representatives of the Federal Ministry of Finance, but the salaries of the employees of the region are very late, and then I mentioned that the demands of the Kurdistan Region is within the framework of the Constitution to treat it as a region, the budget law and the decisions of the Federal Court and apply them as they are regarding the financial dues of the region.”
He concluded his statement: “Everyone is waiting for a meeting next Friday in Baghdad between the delegations of the Kurdistan Regional Government and the Federal Ministry of Finance headed by Fouad Hussein, Deputy Prime Minister and Chairman of the Iraqi Economic Council.”
🌟 Renewed Hope for Iraq: 2024 is projected to be a pivotal year for Iraq’s economic transformation, offering optimism for stability and prosperity.
📉 Economic Reforms Gaining Momentum: The Central Bank of Iraq is finally implementing overdue reforms aimed at modernizing the financial system.
🤝 External Pressure from the U.S.: The U.S. is playing a significant role in pushing for these reforms, recognizing Iraq’s potential as a key economic partner.
🏛️ The 122c Amendment: This mysterious amendment is speculated to be critical for the economic transition, with its unveiling being strategically timed.
📊 Governor Ali al-Alak’s Leadership: Alak’s emphasis on anti-corruption and financial reform is key to Iraq’s modernization efforts.
🌍 Global Ripple Effects: A stable Iraqi economy could positively impact global energy markets and provide economic opportunities for the U.S. amid its own financial pressures.
⏳ Patience is Key: The video stresses the importance of patience in navigating Iraq’s complex political and economic landscape.
Key Insights
🌐 The Importance of Economic Stability: Iraq has long been riddled with issues such as corruption and outdated monetary policies, which have inhibited its economic growth. The new reforms aim to establish a more stable financial environment, which is crucial for attracting foreign investments and improving trade relations. This stability is not just vital for Iraq but could also aid in the recovery of global markets that have been affected by various economic crises.
🔍 Strategic Timing of the 122c Amendment: The potential unveiling of the 122c Amendment is seen as a critical moment in Iraq’s reform process. The timing of its release is crucial; if it aligns with other reforms, it could provide a strong foundation for Iraq’s transition. Conversely, an untimely release could create complications, indicating that the Central Bank’s strategy is designed to minimize risks and maximize impact.
💼 U.S. Influence on Iraqi Reforms: The video highlights an unprecedented level of external pressure from the United States, which is advocating for Iraq to finalize its economic reforms. This influence suggests that the U.S. sees Iraq not just as a recovering nation, but as a potentially significant economic partner. The stakes for both nations are high, as a stable Iraq could serve as a buffer against global economic instability.
🔑 Leadership in Transformation: Governor Ali al-Alak’s calculated approach to reform is pivotal. His focus on modernizing the banking infrastructure, implementing digital payments, and enhancing anti-money laundering measures reflects a comprehensive strategy aimed at aligning with international financial standards. This leadership style, while criticized for being slow, is essential for ensuring that reforms are sustainable and effective in the long term.
📈
Potential Benefits for Ordinary Citizens: The anticipated economic reforms could lead to numerous benefits for the average Iraqi citizen, including financial security, reduced inflation, and improved living standards. By stabilizing the currency and attracting foreign investments, these reforms have the potential to create new job opportunities and enhance overall quality of life.
🌎 Global Economic Implications: The video discusses the broader implications of a stable Iraqi economy on global markets, particularly in the energy sector. A financially secure Iraq could help ease volatility in oil prices and contribute to overall economic stability, which is crucial for international markets currently facing uncertainty due to geopolitical tensions and inflationary pressures.
⚠️ Cautious Optimism: While there is a sense of optimism regarding the reforms, the speaker urges caution. The political landscape in Iraq remains fragile, and challenges persist. The success of the reforms hinges not only on the actions of the Central Bank but also on the political will and stability within the country. The unveiling of the 122c Amendment will be a decisive moment that could either validate the current strategy or reveal underlying issues that need to be addressed.
