Parliamentary Finance: No new appointments in the 2025 budget
The Parliamentary Finance Committee confirmed, on Sunday, February 9, 2025, that there are no appointments in the federal budget for the current year.
Committee member Mustafa Al-Karawi said in a statement followed by Al-Jabal, "According to the latest amendments, there is no fundamental change in the budget law, and no new appointments have been included, but it is possible for the government to move within the budget schedules to reactivate some of the previous specializations and texts."
He stated that "the amendments sent by the Prime Minister and the Council of Ministers were limited to Article (12) related to the cost of extracting oil in the Kurdistan Region," indicating that "the amended article is supposed to enter into force soon, which will allow the start of exporting oil from the region's wells through the SOMO company."
The Ministerial Council for the Economy recommended a few days ago to stop listing new investment projects except for necessary ones.
The Council sent its recommendation to the Council of Ministers regarding new investment projects to stop listing these projects except for the necessary ones, with the approval of the Council of Ministers and the endorsement of the Ministry of Planning and Finance to provide financial allocation before entering into any financial obligations link
IRAQ;The Parliamentary Finance Committee reassured employees and retirees that delaying the arrival of budget tables (2025) does not affect the distribution of salaries.
Committee member Jamal Cougar explained in a press release that "the date for the arrival of the budget tables in Parliament is still unknown."
He added, "Although, salaries are secured as amounts and as cash, and there is as yet no delay in their distribution."
The dollar stabilizes in the parallel market.. Is the price madness over?
The US dollar exchange rate is witnessing remarkable stability in the parallel market in Iraq at the present time, after a period of fluctuations and rising prices.
This stability is mainly attributed to the decrease in demand for the dollar for import purposes. Economic expert Salah Nouri told {Euphrates News} that: “The stability of the dollar exchange rate in the parallel market is due to the decrease in demand for imports by traders who import goods from neighboring countries, as a result of anticipation of the outcome of the US decisions regarding sanctions.”
Nouri stressed that “the decrease in the dollar exchange rate has a positive impact on citizens’ purchasing power, but to varying degrees depending on the type of goods, such as basic food items other than medicines.”
Is the price madness over?
This stability indicates the possibility of an end to the “price madness” that the dollar market witnessed in the previous period; however, the economic expert believes that this stability is dependent on the decisions of the United States of America regarding sanctions, which means that the market may witness other fluctuations in the future.
Its impact on citizens
The decline in the dollar exchange rate has a positive impact on citizens’ purchasing power, as they can buy more goods and services with the same amount of Iraqi dinars. However, this impact varies depending on the type of goods, as citizens benefit more from the decline in the prices of basic food items other than medicines. link
As we approach the year 2025, the trend of dollarization is becoming increasingly pronounced, particularly among China and other BRICS nations, which are striving to diminish their reliance on the U.S. dollar.
This movement is fueled by a growing apprehension towards the Trump administration. To bolster their economic independence, these countries are turning to gold as a strategic asset, with China discreetly increasing its gold reserves while underreporting its purchases to obscure its intentions.
Gold is considered a stable, tangible asset that can endure economic fluctuations, making it a crucial hedge against uncertainty in the current geopolitical climate.
In this week’s wrap-up, a variety of topics were discussed, including significant personnel changes, corporate restructures, and notable events impacting the economic landscape. Tacoma’s police chief resigned after 35 years in law enforcement, while Starbucks plans to significantly cut its food and beverage offerings to streamline its menu. Several major retail companies are set to close numerous locations this year, and the ongoing economic struggles have led to a rise in bankruptcy filings among trucking firms.
In technology, SoftBank is partnering with OpenAI to provide AI services, especially targeting Japanese businesses. Moreover, controversial legislative efforts in several U.S. states could lead to murder charges for women seeking abortions. The Department of Homeland Security is also taking a hard stance on sanctuary cities, while President Trump is making moves to restructure various federal agencies, including proposing the closure of the U.S. Agency for International Development.
Despite the challenges posed by economic changes, some sectors are experiencing growth. Gold prices are on the rise, reflecting its perceived value amidst uncertainty. The wrap-up concludes with a call for individuals to focus on their personal financial strategies, underscoring the importance of gold as an investment vehicle.
Highlights
🪙 Dollarization Trend: The acceleration of dollarization among BRICS nations as they aim to reduce reliance on the U.S. dollar.
💰 Gold as a Strategic Asset: China and BRICS countries are ramping up their gold purchases, recognizing its value as a stable asset.
📉 Corporate Restructuring: Major companies like Starbucks are cutting back on product offerings amid changing market dynamics.
⚖️ Legislative Developments: Introduction of laws in several states potentially criminalizing abortion, reflecting shifting political landscapes.
🏦 Bankruptcy Filings Surge: The transportation sector is seeing an increase in bankruptcy filings, indicating ongoing economic distress.
🌐 AI Partnerships: SoftBank and OpenAI are joining forces to enhance AI service offerings, particularly in Japan.
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Gold Prices Rising: As of the latest update, gold prices are nearing $2,900, highlighting its growing importance as a hedge against economic uncertainty.
Key Insights
🌍 Global Economic Shift: The growing trend of dollarization signifies a major shift in global economic power dynamics as nations strive for greater autonomy from the U.S. financial system. This trend could reshape international trade and investment patterns, prompting a reevaluation of traditional economic alliances and dependencies.
🏅 Gold’s Resurgence: The renewed interest in gold as a safe haven reflects a broader sentiment of distrust in fiat currencies and government policies. As economic instability looms, individuals and nations alike may increasingly turn to tangible assets, suggesting a potential long-term bull market for gold.
🥤 Starbucks Menu Simplification: Starbucks’ decision to streamline its menu demonstrates a strategic pivot in response to consumer preferences for less complex offerings. This could serve as a model for other companies looking to adapt to changing market conditions and consumer behaviors.
⚖️ Impact of Legislative Changes: The proposed laws concerning abortion reflect a significant cultural and political divide in the U.S., with potential repercussions for women’s rights and healthcare access. These developments could galvanize activism and influence upcoming elections.
🚚 Bankruptcies in Transportation: The rise in bankruptcy filings among trucking companies underscores the fragility of the logistics sector in the face of economic pressures and changing consumer habits. This could lead to further consolidation in the industry as stronger players absorb weaker ones.
🤖 AI’s Expanding Role: The collaboration between SoftBank and OpenAI marks a pivotal moment for AI integration in business operations. This partnership could lead to significant advancements in AI capabilities, ultimately transforming various sectors and creating new market opportunities.
💵 Investment Strategies for Individuals: The emphasis on gold as an investment reveals a growing trend among individuals to seek alternative asset classes to secure their financial futures. As economic uncertainty persists, diversifying portfolios to include stable assets like gold may become increasingly crucial for wealth preservation.
As the economic landscape continues to evolve, it is essential for individuals and businesses to remain adaptable and informed. The shifting dynamics of global finance, combined with technological advancements and legislative changes, will play a significant role in shaping the future of investment and economic stability. Gold’s enduring value as a hedge against uncertainty could prove to be a vital strategy for navigating these changes, making it essential for individuals to consider their financial options carefully.
Saeed Tavakli: Iraq signs new gas export contract with Iran
The CEO of the National Iranian Gas Company, Saeed Tavakoli, confirmed today, Saturday, "The export of gas to Iraq is currently ongoing, and we have recently signed a long-term contract with Iraq."
Tavakoli told the Iranian Mehr News Agency regarding US President Donald Trump's decision last Wednesday to cancel the exemption granted to Iraq to import electricity and gas from Iran as part of new sanctions against Tehran, "The decision represents an escalation of US pressure on Iran, as it pressures Iraq to reduce its dependence on Iranian energy."
Saeed Tavakoli stressed, "The export of gas to Iraq is currently underway, and since we have recently extended a good contract for exporting gas, it is likely that the cancellation of the exemption granted to Iraq to import electricity and gas from Iran was for another form of gas import."
The Iranian official continued, "Fortunately, the Iranian-Iraqi contract is in place, but the volume of exports increases and decreases according to the contractual terms."
Regarding gas imports and swaps, Tavakoli also said, "We do not import gas, but gas imports and swaps, such as electricity, are carried out from Armenia."
The CEO of the National Gas Company also stated regarding the drop in temperatures and the state of gas supply: "Currently, the network conditions are stable, and in the current situation, 72 percent of the gas produced is consumed in the domestic sector, and thanks to the cooperation of citizens, the gas supply network will remain stable in the coming days."
Iranian officials said last year that Iraq owed Iran $11 billion in debt due to the gas it purchased, and the payment of this debt was postponed by Iraq to the extent that Iran was forced, in response, to reduce gas exports due to the heavy debt. link
