Saturday, February 1, 2025
FRANK26: "FOREIGN TRANSFERS & 1310 IS LIKE OIL & WATER MIXED TOGETHER.", 1 FEB
KTFA
FRANKL26: "FOREIGN TRANSFERS & 1310 IS LIKE OIL & WATER MIXED TOGETHER.".......F26
The Central Bank receives an American delegation and discusses with it Iraq's foreign transfers
1/26/2025
Baghdad
The Governor of the Central Bank of Iraq, Ali Al-Alaq, met with an American delegation in the capital, Baghdad, on Sunday, and discussed with him how Iraq can move to fully operate in foreign transfers through correspondent banks.
The Central Bank said in a statement received by "Al-Eqtisad News" that "Al-Alaq received Steve Lutes, Vice President of the US Chamber of Commerce and President of the US-Iraq Business Council and his accompanying delegation in Baghdad."
According to the statement, during the meeting, they discussed banking and economic relations between the two countries, the upcoming visit of the Central Bank of Iraq delegation to Washington, and their meeting with the US Chamber of Commerce and American companies next April.
The meeting discussed the desire of American companies to invest in the energy, infrastructure and modern technology sectors and to invest in the security stability witnessed by Iraq, as indicated in the statement.
The statement conveyed Al-Alaq's confirmation that the Central Bank "supports the path of economic growth in Iraq and provides the necessary support to international companies wishing to invest in Iraq, including American companies and banks," noting "the importance of diversification in investment sectors."
The two parties also discussed the mechanisms of international trade and the process of Iraq's transition to fully operate in foreign transfers through correspondent banks, according to the statement.
TIDBIT FROM CLARE, 1 FEB
Clare
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!!!", 1 FEB
KTFA
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.
AJ : 👉So many of you have asked why is this taking so long? or Why the delay?, 1 FEB
AJ
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.
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