FRANK26: "ARTICLE 12-2C ...TO OPEN THE 2025 BUDGET".....F26
Issue No. (4814) of the Iraqi Gazette was published on 2/17/2025
2025-02-18 10:28:00
- Law No. (1) of 2025 “Amending Personal Status Law No. (188) of 1959.”
- Law No. (2) of 2025 “Second Amendment to General Amnesty Law No. (27) of 2016”.
- Law No. (3) of 2025 “Cancelling the decisions of the (dissolved) Revolutionary Command Council and returning the properties to their owners.”
- Law No. (4) of 2025 “First Amendment to the Federal General Budget Law of the Republic of Iraq for the Fiscal Years (2023-2024-2025) No. (13) of 2023.”
- Regulation No. (3) of 2025 “The first amendment to the Civil Airports Wages System No. (6) of 2018 issued by Cabinet Resolution No. (67) of 2025.”
- Instructions No. (1) of 2025 “Implementing the Second Amendment Law to Amnesty Law No. (27) of 2016, effective from the date of voting on it in the Iraqi Council of Representatives on 1/21/2025.”
UPDATE ABOUT THE MEASURES IMPLEMENTED BY USA TO RESTRICT THE FLOW OF US DOLLARS INTO IRAQ
Highlights
💵 Strategic Economic Shift: The US’s limitation on dollar flow into Iraq is a calculated move to align its financial systems with international standards.
📈 Robust Cash Reserves: Iraq’s cash reserves exceed 100%, indicating a strong backing of the dinar compared to global standards.
💔 Historical Inflation Crisis: The comparison with Kuwait illustrates Iraq’s historical struggles with currency management and hyperinflation.
💡 Currency Redenomination: Proposed redenomination of the dinar could enhance currency management and public confidence.
🚫 Speculative Exchange Rates: The video debunks rumors of an unrealistically high exchange rate for the dinar, emphasizing the need for a unified monetary system.
🌍 International Economic Integration: Iraq is taking steps towards enhancing its international trade relations, particularly through oil exports.
🔄 Gradual Monetary Reforms: The CBI’s reforms are a gradual process aimed at eliminating discrepancies in exchange rates and stabilizing the economy.
Key Insights
🏦 Aligning with International Standards:
The US’s move to restrict dollar flow into Iraq is seen as a strategic step to further integrate Iraq’s economy into the global market. This is crucial for attracting foreign investment and fostering economic stability. The CBI’s actions signal a commitment to modernizing the financial system, which is necessary for Iraq’s long-term growth and sustainability.
🔑 Significant Cash Reserves: The CBI’s announcement that Iraq’s cash reserves back more than 100% of its circulating dinar is a strong indicator of financial strength. This exceptional reserve level provides a solid foundation for potential economic reforms and increases confidence among investors and citizens alike, as it mitigates risks associated with currency devaluation.
📉 Lessons from Kuwait: The historical context surrounding Iraq’s financial challenges provides valuable lessons in currency management. Unlike Iraq, Kuwait adopted a conservative approach to its currency supply, ensuring stability even during economic downturns. This serves as a cautionary tale for Iraq as it navigates its own economic reforms and seeks to prevent a recurrence of past mistakes.
💳 Redenomination as a Reform Strategy: The potential redenomination of the Iraqi dinar is a significant proposal aimed at simplifying the financial system. By removing zeros from the currency, the CBI hopes to restore public trust and increase the currency’s value. However, this reform must be accompanied by stringent measures to ensure economic stability and prevent inflation from undermining the new currency.
🏷️ Debunking Exchange Rate Myths: The host addresses rampant speculation about the dinar’s exchange rate reaching $28, clarifying that such figures are unrealistic. This serves as a reminder for viewers to remain grounded in reality and rely on credible information regarding currency valuations. The goal is to maintain a single, recognized exchange rate to eliminate disparities that have plagued Iraq’s economy.
📊 Transitioning to International Markets: Iraq is poised for greater international integration, particularly through its oil exports. The establishment of direct relationships with international banks signifies a shift towards modern banking practices and enhances the country’s position in the global economy.
This move could lead to increased foreign investments and a more stable economic environment.
⚖️ Managing the Black Market: One of the major challenges facing Iraq is the existence of a parallel black market for currency. Experts suggest that revaluing the dinar to a higher rate than the dollar could effectively eliminate this issue. However, the timing and strategy surrounding such a revaluation must be carefully managed to avoid destabilizing the economy and to ensure that the government can fulfill its financial obligations post-revaluation.
In conclusion, the video provides a comprehensive overview of the current state of Iraq’s economy, emphasizing the critical reforms needed to enhance its financial stability and international standing. The path forward is fraught with challenges, but with strategic planning and execution, Iraq can move toward a more stable and prosperous economic future.
US sanctions threaten Iraq's dollar supply, warns MP
Shafaq News/ Potential US sanctions on local banks could tighten dollar supply, thereby increasing pressure on Iraq’s currency market amid lingering exchange rate volatility, a member of the Parliamentary Finance Committee warned on Wednesday.
Mustafa Al-Karawi told Shafaq News that restrictions from the US Treasury would reduce the number of banks allowed to participate in Iraq’s foreign currency auctions, fueling demand for dollars and threatening market stability.
“The Central Bank of Iraq (CBI) needs to adopt a genuine and effective system to regulate the market; otherwise, the dollar crisis and exchange rate fluctuations will continue indefinitely,” Al-Karawi noted, criticizing
the government’s failure to establish a clear monetary policy capable of stabilizing the dinar’s value.
Concerns over new sanctions arose after reports surfaced this week that the US had blacklisted five Iraqi banks and restricted the use of electronic payment cards abroad. The CBI later denied the measures but acknowledged ongoing talks with Washington.
Over the past year, the US Treasury imposed penalties on several Iraqi lenders over concerns about dollar smuggling and illicit transfers. In response, the CBI barred the affected banks from participating in the currency auctions.
Article: “THE PRESIDENT OF THE REPUBLIC APPROVES THE AMENDMENT TO THE BUDGET LAW”This
was the main issues from the Kurdistan region in the monthly salary payments they were receiving for their share of the oil revenues...They wanted more in the budget and so now they have it...I want everyone to know that the passing of this bill is NOT the Oil and Gas Law and is NOT going to trigger the RV.
you can now CLEARLY see that there has been massive corruption in Iraq and with the US keeping the Iraq dinar artificially suppressed..
. The new president Trump has a new policy towards Iraq and it is beginning to take form. This recent move of stopping the physical dollar CASH flow to Iraq is apparent...This was a huge move...
I was told many times already by my CBI contact that this crisis is at the heart of why the CBI can not set the in-country revaluation rate to what they need to conduct the Project to Delete the Zeros...
FRANK26: "THIS IS THE REASON & THE RESULTS OF A SUCCESSFUL MONETARY REFORM PLAN.".....F26
The role and strength of the Central Bank through partnerships and commitment to international standards
2/17/2025
Researcher Shaza Khalil*
The Central Bank of Iraq plays an important role in shaping the country’s economic landscape by managing monetary policy, supervising the financial system, controlling inflation, and ensuring the stability of the national currency. It operates with a responsibility that goes beyond economic governance alone, but also actively seeks to integrate the Iraqi financial sector into global financial systems, promote sustainable growth, and combat illegal activities such as smuggling.
The primary tasks of central banks, including the Central Bank of Iraq, are several vital functions in the structure of the national economy:
Controlling monetary policy: One of the primary functions of a central bank is to regulate the money supply and interest rates. Through tools such as open market operations, reserve requirements, and discount rates, the central bank ensures price stability, limits inflation, and supports economic growth.
Financial System Stability: The central bank oversees the health of the financial system and prevents systemic risks that could threaten the stability of the economy. It imposes regulations to prevent financial crises and supports the banking sector by ensuring adequate liquidity.
Currency Management: The central bank is responsible for issuing and managing the national currency. It also maintains the stability of the exchange rate to avoid excessive fluctuations that could harm trade and investment.
Lender of last resort: In economic emergencies or liquidity shortages, the central bank steps in to provide emergency funding to commercial banks to prevent bank collapse and ensure the continuity of the financial system.
International cooperation: As the global economy becomes increasingly interconnected, the role of central banks extends beyond national borders. Adherence to international standards such as those set by the Basel Committee on Banking Supervision or the Financial Action Task Force (FATF) is crucial to maintaining credibility and promoting confidence in a country’s financial system.
The first quarterly meetings held by the Central Bank of Iraq with the US Treasury and the US Federal Reserve are of great importance, as they are an important step towards reforming the banking sector in Iraq, as well as enhancing the efforts made by the Central Bank of Iraq to integrate the financial sector into the global financial system. During these meetings, the steps taken by the Central Bank of Iraq and the Iraqi government to address the challenges facing its banking sector were discussed.
Collaboration with international financial institutions such as the U.S. Treasury and the U.S. Federal Reserve is invaluable to Iraq’s banking reforms. By engaging in these dialogues, Iraq is adopting best practices from some of the world’s strongest financial institutions and aligning its systems with global standards. This partnership also plays a critical role in supporting Iraq’s efforts to reform its banking sector, facilitate foreign investment, and ensure the smooth running of financial transactions.
Impact on the Iraqi economy The reforms brought about by this cooperation are expected to have broad positive effects on the Iraqi economy:
Increased confidence in investment: By aligning Iraq’s banking systems with international standards, foreign investors will have greater confidence in the stability of the country’s financial system. This could lead to capital inflows, which are essential for the diversification and development of the Iraqi economy.
Enhancing economic transparency: A key goal of these reforms is to reduce corruption, enhance transparency, and ensure that financial activities take place in a more regulated environment. This not only enhances confidence among investors, but also improves overall economic governance in Iraq.
Supporting sustainable growth: By implementing a stable and supervised financial system, reforms help promote a sustainable and diversified economy that is less vulnerable to global financial shocks.
Increased availability of credit: Restructuring the banking system and implementing best practices can help increase the availability of credit to both the public and private sectors. This can boost local economic growth, create jobs, and encourage infrastructure development.
Combating smuggling and strengthening currency control Cooperation between the Central Bank of Iraq and international financial institutions is also an important factor in addressing one of Iraq’s most pressing issues: the smuggling of US dollars. Smuggling and unregulated foreign currency transactions have long been a problem in Iraq, leading to lost revenue and destabilizing the local currency.
Attendees at the quarterly meetings praised the significant development in Iraq’s US dollar cash distribution system, which is now recognized as one of the most closely monitored and controlled in the world. This transformation is a direct step towards combating smuggling by making illicit financial transactions more difficult. With this tighter control, the Central Bank has been able to limit the scope for manipulation, which will have broad benefits for the Iraqi economy.
A well-monitored financial system ensures that foreign currency is distributed in a transparent manner, reducing opportunities for illegal activities, including money laundering or illicit transfers of funds to illegitimate entities. It also facilitates the stability of the Iraqi dinar by reducing external financial pressures resulting from unauthorized dollar transactions.
The Role of Dubai and International Auditing and Consulting Firms In the context of reforming the Iraqi banking sector, Dubai has played a key role as a hub for international auditing and consulting firms. These firms provide valuable expertise in improving Iraq’s financial systems and ensuring they are aligned with global best practices. Their role in monitoring Iraq’s progress and providing strategic advice is crucial to ensuring that reforms are implemented effectively.
As a global financial hub, Dubai is a vital platform for international cooperation. The presence of international audit and consulting firms there has allowed Iraq to benefit from a wealth of global expertise, helping the country modernize its banking systems and prepare for integration into the global financial network. This cooperation has been crucial in ensuring that reforms are carried out effectively and in line with international standards.
Conclusion: A bright future for the Iraqi banking sector The positive feedback from international financial institutions and the cooperation between the Central Bank of Iraq, the US Treasury, and the US Federal Reserve reflect the significant progress the country has made in implementing comprehensive reforms in the banking sector.These reforms are expected to enhance Iraq’s economic stability, improve transparency, and increase the attractiveness of foreign investment.
As Iraq continues to strengthen its banking system and combat illicit financial operations, it appears to be on the cusp of a new era of financial stability and economic growth. The controlled distribution of the US dollar, the restructuring of financial operations, and the alignment of the Iraqi banking sector with international standards signal a new era for the future of the Iraqi economy. With sustained reforms and international partnerships, Iraq is on the path to enhancing financial stability and economic prosperity. (THE RELATIONSHIP BETWEEN TRUMP & SUDANI = A STRONG USD & A POWERFUL IQD FOR THE IRAQI CITIZENS -F26)
Economic Studies Unit / North America Office Links Center for Research and Strategic Studies
