Quote: "The US Republican representative ... demanding sanctions on the government-owned Rafidain Bank, accusing it of being a 'machine' for laundering money for the Iranian regime...
Wilson wrote in a blog post on the X ....'
the US Treasury and the Federal Reserve, under Joe Biden...have allowed Rafidain Bank...
to become a money laundering machine for the Iranian regime and its agents to obtain US dollars.'
The Republican representative stressed the need to 'impose sanctions on this bank'... noting that President Donald Trump 'will fix the matter'....
FRANK26: "TRUMP'S ORDERS FULFILLED... PEACE IN THE MIDDLE EAST!!!"........ F26
Al-Sudani confirms Iraq's readiness to coordinate between regional countries
1/26/2025
Baghdad
Prime Minister Mohammed Shia al-Sudani confirmed, on Sunday, Iraq's readiness to coordinate between the countries of the region, especially with Turkey, regarding developments in the regional arena, reiterating Iraq's rejection of Syria being an arena for conflict.
The Prime Minister's Media Office said in a statement, seen by "Al-Eqtisad News", that "Prime Minister Mohammed Shia Al-Sudani received Turkish Foreign Minister Hakan Fidan, where during the meeting, bilateral relations between the two countries were discussed, and a number of regional and international issues of common interest were discussed, especially developments in the region and events in Syria."
The statement added, "The meeting discussed the latest developments in Syria, Gaza and Lebanon, and stressed the importance of adhering to the ceasefire."
He continued, "The meeting also discussed the importance of unifying efforts between the countries of the region in order to support its stability. In this regard, the Prime Minister affirmed Iraq's readiness to coordinate between the countries of the region, especially with Turkey, regarding the developments witnessed in the regional arena, reiterating Iraq's rejection of Syria being an arena for the conflict in which it works to establish stability, due to the impact of this on the region in general."
The Prime Minister stressed, according to the statement, "the government's follow-up on the bilateral relations file, and the implementation of the memoranda of understanding that were signed in light of his visit to Ankara last November, as well as within the framework of Erdogan's visit to Baghdad that took place in April of last year."
For his part, Fidan conveyed the greetings of the Turkish President to the Prime Minister, and expressed his country's desire for close coordination with Iraq regarding developments in the region, pointing to the desire to enhance cooperation in bilateral relations, in light of the two mutual visits of Mr. Al-Sudani and the Turkish President.
The Turkish Foreign Minister also reiterated his country's seriousness in working on the Strategic Development Road project, as well as cooperation in light of the memoranda of understanding signed between the two countries in the
fields of energy, education, trade exchange, banking cooperation, and other fields.
So many of you have asked why is this taking so long? or Why the delay? I have stated many times in the past the Iraq's non-oil revenues need to be higher.
It is their achilles heel. PM adviser Saleh explains why in this recent article.
Key highlights
The Central Bank of Iraq manages cash reserves efficiently, which ensures the stability of financial liquidity, and the cash reserve is a fundamental pillar to maintain the stability of the exchange rate and ensure the ability to meet the financial needs of the state.
The central bank’s reserve has exceeded the $100 billion barrier in recent months
Saleh stressed that oil prices will not fall below $70 per barrel, considering this a positive matter for Iraq, which depends on oil revenues to finance its general budget,
Historically, Iraq witnessed severe economic crises when oil prices fell, as happened in 2014 and 2020, forcing the government to take austerity measures and resort to internal and external borrowing to fill the budget deficit, so any sudden drop in oil prices may bring Iraq back to similar scenarios.
The financial adviser noted that non-oil revenues are “going properly,” referring to the government’s attempts to boost other sources of income, such as taxes, customs, and investments in non-oil sectors.
However, non-oil revenues still constitute a small percentage of the total national income, which raises questions about the government’s seriousness in achieving economic diversification. Some analysts believe that Iraq needs serious structural reforms in the industrial and agriculture sectors, in addition to enhancing the investment climate to attract foreign capital.
Also, administrative and financial corruption, as Iraq still faces great challenges in combating corruption, which is a major factor hindering economic development, in addition to unemployment and the weakness of the private sector.
Unless the business environment is strengthened and investments are encouraged, the public sector will remain the main operator, which increases the pressure on the general budget, with the exchange rate and inflation factors, as despite the stability of the Iraqi dinar, any disturbances in global markets may lead to fluctuations in the exchange rate and increased inflation.
The Iraqi government’s statements reflect optimism about the country’s ability to maintain its financial stability, but they do not hide the fact that the economy is still fragile in the face of external variables. Despite the current good monetary reserves and stable oil prices, the absence of a clear economic strategy to diversify sources of income puts Iraq in an insecured position in the long term.
IMO - The non-oil revenue number is the one to watch. We know they have raised 63 billion for investments in Iraq. It now needs to be turned into a revenue stream for the Government.
FRANK26: "SUDANI ALSO MEETS... SHOWS SECURITY & STABILITY TO EVERYONE!!!".......F26
Al-Sudani: Economic reforms have raised the level of foreign investments in Iraq
1/26/2025
Baghdad
Prime Minister Mohammed Shia confirmed, on Sunday, that the government has made significant progress in various aspects of economic reform and digital commercial and banking transformation, noting that economic reforms have been able to raise the level of foreign investment in Iraq.
The Prime Minister's Media Office said in a statement, seen by "Al-Eqtisad News", that "
Prime Minister Mohammed Shia al-Sudani received the Chairman of the US-Iraq Business Council, Vice President of the US Chamber of Commerce Steve Lotus."
He added,
"The meeting reviewed trade and cooperation relations between Iraq and the United States, and efforts to prepare for the US Companies Representatives Forum, which will be held in Iraq during this year. The implementation of 18 agreements and memoranda of understanding, which were signed during His Excellency's visit to the United States last year, was also followed up."
According to the statement, al-Sudani praised "Lotus's efforts in sponsoring and holding forums and meetings, especially with the Iraqi private sector," stressing that "the government has made significant progress in various aspects of economic reform and commercial and banking digital transformation," pointing to the continuation of efforts to legislate the intellectual property law and introduce this concept into school curricula; In order to keep pace with global trade development.
Al-Sudani explained that “economic reforms have raised the level of foreign investment in Iraq, and that American companies are invited to participate in the development renaissance that Iraq is witnessing, and the attractive and business-friendly investment environment.”
For his part, Lutz, according to the statement, praised “the efforts of the Iraqi government in the field of reform, stressing the desire of many American companies to enter the Iraqi market, and to establish promising partnerships with the Iraqi private sector, and to contribute to development and expand the scope of commercial and investment activities.
”
📉 Rumors of Devaluation: Recent discussions indicate that the Iraqi dinar may face devaluation, echoing past government mistakes.
📉 Impact of Oil Prices: A drop in oil prices to $60 or even $50 could severely impact Iraq’s economy and lead to currency adjustments.
💰 Budget Struggles: The 2025 budget could mirror last year’s budget, indicating ongoing financial challenges for the Iraqi government.
🚧 Failure to Implement Tax Policies: Iraq is losing substantial revenue due to ineffective border control and tax collection measures.
📉 Salary Implications: A potential increase in the exchange rate could result in significant reductions in citizen salaries.
🌍 Global Oil Market Influence: External pressures, such as U.S. demands on OPEC, are affecting Iraqi oil revenues and, consequently, the economy.
🤔 ;Long-Term Holding Pattern: The speaker stresses that investors should prepare for a prolonged period of uncertainty regarding the dinar.
Key Insights
📉 Rumors Indicate Underlying Issues: The video highlights that the rumors surrounding the potential devaluation of the Iraqi dinar are more than just speculation. They suggest deeper systemic issues within Iraq’s economy, particularly regarding the reliance on oil revenues. The speaker warns that these rumors could lead to a substantial shift in the economic landscape if they materialize.
💰 Oil Dependency Creates Vulnerability: Iraq’s economy is heavily dependent on oil revenues, which make up a significant portion of the budget. With global oil prices fluctuating due to geopolitical tensions and OPEC decisions, any decline in oil prices could directly affect Iraq’s financial stability.
The speaker underscores that a fall to $60 per barrel would result in severe distress for the government.
🚧 Tax Collection and Border Control Failures: A critical point made in the video is the failure of the Iraqi government to effectively implement tax collection and border control measures. The speaker mentions that Iraq is losing approximately 6 trillion out of 9 trillion dinars due to these inadequacies. This represents a significant leak in potential revenue that could help stabilize the economy.
📉 Consequences of Raising the Dollar Exchange Rate: If the Iraqi government opts to raise the dollar exchange rate in response to falling oil prices, it would lead to a decrease in the value of citizens’ salaries. The speaker illustrates this with an example, showing that a salary of $700 could effectively become worth only $500. This would exacerbate the financial struggles faced by many Iraqi citizens.
🌍 Geopolitical Factors Influencing Iraq’s Economy: The video touches upon how international politics, particularly U.S. demands on Saudi Arabia and OPEC to reduce oil prices, are impacting Iraq. The speaker argues that these external pressures could exacerbate Iraq’s already precarious financial situation, making it more challenging for the government to meet its budgetary requirements.
🤔 Call for Preparedness: Throughout the video, there is a strong emphasis on the need for investors and citizens alike to stay informed and prepared for potential economic upheaval. The speaker suggests that the current situation is a “holding pattern,” and individuals should be ready for changes that could affect their financial stability.
📈 Possibility of Economic Recovery: Despite the grim outlook, the speaker notes that the situation could potentially improve within a short time frame. The message here is one of cautious optimism; while the current circumstances may seem dire, there is a possibility for recovery if the government takes the right steps.
