Sunday, March 9, 2025
Saturday, March 8, 2025
Sanctions showdown: Iraq's race for post-waiver energy, 9 MARCH
Sanctions showdown: Iraq's race for post-waiver energy
Shafaq News/ On Saturday, the Iraqi government confirmed that it had not received any official notification regarding the cancellation of its exemption to purchase Iranian gas, a privilege previously granted by US President Donald Trump.
In a statement to Shafaq News, Government spokesperson Basim Al-Awadi emphasized that dialogue and communication between Baghdad and Washington remain ongoing, with both sides recognizing that Iraq's stability is crucial for the broader region. "Iraq has fully adhered to the exemption’s conditions and has taken proactive steps toward long-term energy independence," he stated.
In early February, President Trump revoked Iraq’s waiver to import electricity and gas from Iran as part of new sanctions imposed on Tehran. US media reported that the exemption was set to expire on March 7, raising concerns over Iraq’s energy security and future planning.
To navigate these challenges, the Iraqi government has put in motion a comprehensive strategy that focuses on both immediate and long-term energy solutions.
"The Ministry of Electricity has secured a contract to import gas from Turkmenistan, pending the completion of financial and technical procedures," Al-Awadi revealed. "Additionally, Iraq is coordinating with the Ministry of Oil to import 600 million cubic feet of gas and is exploring the installation of floating LNG platforms in Basra. Meanwhile, the Ministry of Oil has already begun constructing its own pipelines."
Beyond addressing short-term needs, Iraq, according to Al-Awadi, is also working to strengthen its energy security through diversified investments. The broader strategy includes developing steam and combined-cycle power plants while expanding investments in renewable energy sources such as solar power and waste-to-energy projects. "These initiatives are key to strengthening Iraq's energy security and ensuring long-term stability in the sector," Al-Awadi affirmed.
TIDBIT FROM CLARE, 9 MARCH
Clare
Article: "Financial and Economic Measures.. Iraqi Finance Ministry Announces Results of its Meeting with the International Monetary Fund"
Quote: "The Ministries of Finance, Planning, Oil, Electricity and the Central Bank participated, focused on macroeconomic indicators, where a remarkable growth in non-oil GDP was recorded at 5% for 2024, driven by
the expansion of the agricultural sector and increased public spending, with growth expected to continue at 3.5% in 2025...It was agreed to intensify efforts to expand cooperation with foreign correspondent banks...in addition to enhancing the use of the Iraqi dinar in major transactions, which enhances the strength of the national currency"
FRANK26: "LOW INFLATION = SECURITY AND STABILITY FOR THE MONETARY REFORM & FOR THE FLOAT.", 9 MARCH
KTFA
FRANK26: "LOW INFLATION = SECURITY AND STABILITY FOR THE MONETARY REFORM & FOR THE FLOAT.".......F26
Central Bank Policies Result in Lower Annual and Core Inflation in 2024
3/6/2025
The Central Bank announced, within the monetary policy indicators for the fourth quarter of 2024, a decrease in the annual inflation rate to 2.8% and the core inflation rate to 2.5%, compared to 4% and 4.5%, respectively, for the same quarter of 2023.
It is one of the objectives of monetary policy that the Central Bank is working on according to the policies and procedures adopted since 2023. This means controlling the general level of prices, which is a basic objective of monetary policy that confirms the soundness of the steps and the fixed approach of the Central Bank in achieving all the objectives contained in its applicable law. The objectives of the Central Bank's monetary policy ( MONETARY REFORM -F26) are to achieve economic growth and stability. (SECURITY -F26) In the extremely complex economic, security and political conditions in 2024 that the world is going through and that our country is affected by. Especially the countries of the geographical region in which our country is affected negatively and positively.
Our economy has suffered from these conditions for decades, due to the rentier nature of the economy and the dependence of 93% of the general budget allocations on oil revenues, which constitutes about 60% of the gross domestic product. While the effective productive economic sectors, namely agriculture, contribute 3% to the gross domestic product and industry does not exceed 2%, as indicated by official data from the Ministry of Planning. Despite the development in the contribution of the two sectors in 2024, these are indicators that confirm the necessity of supporting, activating and revolutionizing the real sector to contribute to sustainable development and address the shortcomings in the local product and its failure to cover the consumption needs of citizens in food and other basic materials. Therefore, there was almost complete reliance on imports for the private commercial sector, and internal trade was not controlled and foreign trade was not regulated. There was also weak control over illegal trade and unofficial border crossings.
This affected the monetary and commercial market, and exchange rates and prices of imported and necessary goods and materials rose at high rates during 2021 and 2022. Therefore, the inflation index was the most prominent challenge facing monetary policy and directly affected the stability of the exchange rate. This led the Central Bank to take many measures in cooperation with the government in 2023 and 2024 to regulate foreign trade financing, control foreign transfers, regulate the global financial and banking system, comply with international standards, and leave the electronic platform. And begin implementing its third strategy for banking reform and classification in all its basic links at the level of internal and external banking transactions.
The most prominent of which is securing foreign transfers through direct dealings of our banks with international correspondent banks, which have reached 20 Iraqi banks so far, using 8 foreign currencies, namely the US dollar, the European euro, the Chinese yuan, the UAE dirham, the Indian rupee, the Turkish lira, the Jordanian dinar, and the Saudi riyal. (BEHOLD THE BASKET!!! -F26) Through analyzing the indicators of the general and basic inflation rate conducted by the Central Bank and in comparison with the rates of inflation rates achieved in Arab and regional countries.
Official data shows that inflation rates in most countries with unstable economies have reached very high levels. In Turkey, it reached 80.2%, in Sudan, it reached 11.4%, and in Iran, it reached 40%. In the Maghreb countries with relative economic stability, Tunisia, Algeria, and Morocco, it reached 9.3%, 9%, and 5%, respectively. In Egypt, it reached 37.4%, and in the Gulf countries with stable, oil-rich economies, it ranged between (2.4%-4.8%). This confirms beyond doubt that the strategy and measures of the Central Bank during the past and current years have achieved one of the basic objectives of monetary policy, which is to reduce the inflation rate and maintain the general level of prices of goods and services.
It is currently working to achieve other goals, which are the stability of the exchange rate and maintaining a foreign exchange reserve that covers the local currency in circulation and imports, increasing the gold reserve and reducing the percentage of local currency exported. (ALL OF THIS HAS BEEN ACCOMPLISHED AS OF TODAY -F26) Therefore, the economic results and outputs in 2024 confirm that the policies and procedures undertaken by the Central Bank have achieved an important goal of its goals to achieve stability in the monetary system, which is an important step in achieving other goals of monetary policy. (LET’S ROLL!!! -F26)
AJ: A MUST-READ FOR IRAQ DINAR INVESTORS, 9 MARCH
AJ
A MUST-READ FOR IRAQ DINAR INVESTORS
Treat your investment seriously, not like clickbait promising weekly miracles every Sunday or Monday on platforms like X, YouTube, Telegram, etc.
Those claims are nonsense, preying on you for clicks—it’s wrong, and they know they’re lying to you. Here’s the truth you need to know:. Explore 22 years of CBI history to understand its path to international banking and the potential for revaluing Iraq’s currency. The CBI just put this out for a reason.
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Evaluation of the Central Bank's journey in 22 years
A Must Read for Dinar Holders
Since 2003, the Iraqi economy has suffered from financial and banking challenges and crises due to the difficult and complex subjective and objective circumstances that the country has gone through over the past 22 years. Since the monetary policy of the Central Bank, according to its Law No. 56 issued in 2004, is responsible for achieving economic stability, overcoming the challenges of the financial and monetary system, and addressing the structural imbalance in the economy in the transition from a rentier economy to a real (productive) economy, as well as from a monetary economy to a digital economy.
During the above period, the Central Bank went through four important and basic stages:
First - reducing rampant inflation in 2003, which exceeded 35%, controlling the stability of the exchange rate, building foreign reserves, and controlling the money supply.
Second - overcoming the economic and security shocks in 2014. The Government took out external loans to cover the deficit.
Third - addressing the financial crisis during the Corona pandemic in 2020. Oil prices crashed triggering a Currency Devaluation from 1182 IQD to 1450 IQD
Fourth - controlling the exchange rate, regulating foreign trade financing, achieving digital transformation, enhancing financial inclusion, and complying with international standards in 2023 and 2024
Considering that the Central Bank, in cooperation with the government, has accomplished important steps towards implementing the financial and banking reform methodology and moving towards completing its strategy to achieve the goals according to the roadmap drawn up.
In 2025, it is necessary to evaluate and analyze the economic reality over the past 22 years with impartiality and high transparency and identify cases of failure and dysfunction in the productive economic sectors and procrastination in not implementing the economic reform programs that all successive governments have worked on but have not been able to achieve the goals of radical and comprehensive reform for the reasons above.
However, the reality of the situation and the reform efforts made in 2023 and 2024 have made us, as specialists, look with hope and optimism at what has been achieved and what is planned to be achieved in the next two years based on what is stated in the third strategy of the Central Bank with its main and sub-goals.
The banking reform steps taken by the Central Bank from 2003 to 2024 addressed the effects of the economic and security shocks in 2014, most notably the 75% drop in global oil prices and the government’s inability to pay employees’ salaries on time. The Central Bank was able to use its foreign exchange reserves and the method of rediscounting treasury transfers to support the government in the amount of 16 trillion dinars, and the crisis was overcome at the time.
In 2015, the Central Bank, in light of these difficult economic conditions, began to move to develop its plans for the coming years and draw up a methodology for banking reform and structural, technical and administrative development of the Central Bank. This resulted in the issuance of its first strategy for the years
(2016-2020),
which included 5 main objectives and 140 sub-objectives, 129 of which were achieved, at a rate of 92%, during the years of implementing the strategy. It contributed to establishing the basic structures and pillars for moving to a new stage of financial and banking reform,
accompanied by the strategic banking projects plan for the years (2019-2023) and the issuance of the second strategy (2021-2023) to complete the achievement of the sub-objectives that could not be implemented in the first strategy, which numbered (11) sub-objectives,
during which the government continued to seek help from the Central Bank and obtain (30) trillion dinars, and the total amount owed by the government became (46) trillion dinars.
In 2023, the Central Bank worked on studying the achievements of the two previous strategies and diagnosing the foundations of the desired reform. The efforts to prepare for the third strategy continued throughout 2023, and the foundations and foundations were built to set the goals
for this new strategy for the years (2024-2026), which derived its main and sub-goals from the state's general economic policies and its strategy for financial and banking reform adopted by the government in the government program and from Central Bank Law 56 of 2004.
It included programs with clear goals and initiatives for a period of three years in a special, complex economic and financial circumstance fraught
with risks and challenges at the level of internal and external economic and financial relations.
The third strategy identified the main goals with 7 goals, 24 sub-goals and 75 initiatives to achieve
the main and sub-goals and charted the path for banking and financial reform according to the following strategic goals:
1- Supporting and enhancing monetary stability.
2- Enhancing digital transformation, activating electronic payment and supporting cybersecurity.
3- Enhancing financial inclusion
4- Maintaining a sound financial system
5- Developing the organizational structure and human resource capabilities
6- Enhancing the position of the Central Bank locally and internationally
7- Enhancing compliance of the banking sector and the non-banking sector in line with international standards.
Programs, policies and initiatives have been identified to achieve the goals. Perhaps the most prominent program is the launch of the National Strategy for Bank Lending in Iraq (2024-2029) and the approval of the Council of Ministers to implement it,
which will restructure banking financing in Iraq, in addition to leaving the electronic platform (ending the currency) and adopting correspondent banks in foreign transfers, protecting the financial system, enhancing financial inclusion, managing monetary and financial stability,
developing oversight and supervision, developing regulation in the banking sector, completing the development of the infrastructure for digital transformation, licensing digital banks, implementing regulatory policies in the Central Bank in accordance with the frameworks and technologies adopted in global central banks, raising the capabilities of human resources, developing banking operations, strengthening the bank's internal and external relations, and representing it locally and internationally.
What has been presented accurately and transparently for the 22 years of the financial and banking reform process confirms that the next two years will inevitably result in the transition to a comprehensive and radical reform of the Iraqi banking sector and transforming it into a solid sector that contributes to sustainable development.
A Must Read for Dinar Holders
Since 2003, the Iraqi economy has suffered from financial and banking challenges and crises due to the difficult and complex subjective and objective circumstances that the country has gone through over the past 22 years. Since the monetary policy of the Central Bank, according to its Law No. 56 issued in 2004, is responsible for achieving economic stability, overcoming the challenges of the financial and monetary system, and addressing the structural imbalance in the economy in the transition from a rentier economy to a real (productive) economy, as well as from a monetary economy to a digital economy.
During the above period, the Central Bank went through four important and basic stages:
First - reducing rampant inflation in 2003, which exceeded 35%, controlling the stability of the exchange rate, building foreign reserves, and controlling the money supply.
Second - overcoming the economic and security shocks in 2014. The Government took out external loans to cover the deficit.
Third - addressing the financial crisis during the Corona pandemic in 2020. Oil prices crashed triggering a Currency Devaluation from 1182 IQD to 1450 IQD
Fourth - controlling the exchange rate, regulating foreign trade financing, achieving digital transformation, enhancing financial inclusion, and complying with international standards in 2023 and 2024
Considering that the Central Bank, in cooperation with the government, has accomplished important steps towards implementing the financial and banking reform methodology and moving towards completing its strategy to achieve the goals according to the roadmap drawn up.
In 2025, it is necessary to evaluate and analyze the economic reality over the past 22 years with impartiality and high transparency and identify cases of failure and dysfunction in the productive economic sectors and procrastination in not implementing the economic reform programs that all successive governments have worked on but have not been able to achieve the goals of radical and comprehensive reform for the reasons above.
However, the reality of the situation and the reform efforts made in 2023 and 2024 have made us, as specialists, look with hope and optimism at what has been achieved and what is planned to be achieved in the next two years based on what is stated in the third strategy of the Central Bank with its main and sub-goals.
The banking reform steps taken by the Central Bank from 2003 to 2024 addressed the effects of the economic and security shocks in 2014, most notably the 75% drop in global oil prices and the government’s inability to pay employees’ salaries on time. The Central Bank was able to use its foreign exchange reserves and the method of rediscounting treasury transfers to support the government in the amount of 16 trillion dinars, and the crisis was overcome at the time.
In 2015, the Central Bank, in light of these difficult economic conditions, began to move to develop its plans for the coming years and draw up a methodology for banking reform and structural, technical and administrative development of the Central Bank. This resulted in the issuance of its first strategy for the years
(2016-2020),
which included 5 main objectives and 140 sub-objectives, 129 of which were achieved, at a rate of 92%, during the years of implementing the strategy. It contributed to establishing the basic structures and pillars for moving to a new stage of financial and banking reform,
accompanied by the strategic banking projects plan for the years (2019-2023) and the issuance of the second strategy (2021-2023) to complete the achievement of the sub-objectives that could not be implemented in the first strategy, which numbered (11) sub-objectives,
during which the government continued to seek help from the Central Bank and obtain (30) trillion dinars, and the total amount owed by the government became (46) trillion dinars.
In 2023, the Central Bank worked on studying the achievements of the two previous strategies and diagnosing the foundations of the desired reform. The efforts to prepare for the third strategy continued throughout 2023, and the foundations and foundations were built to set the goals
for this new strategy for the years (2024-2026), which derived its main and sub-goals from the state's general economic policies and its strategy for financial and banking reform adopted by the government in the government program and from Central Bank Law 56 of 2004.
It included programs with clear goals and initiatives for a period of three years in a special, complex economic and financial circumstance fraught
with risks and challenges at the level of internal and external economic and financial relations.
The third strategy identified the main goals with 7 goals, 24 sub-goals and 75 initiatives to achieve
the main and sub-goals and charted the path for banking and financial reform according to the following strategic goals:
1- Supporting and enhancing monetary stability.
2- Enhancing digital transformation, activating electronic payment and supporting cybersecurity.
3- Enhancing financial inclusion
4- Maintaining a sound financial system
5- Developing the organizational structure and human resource capabilities
6- Enhancing the position of the Central Bank locally and internationally
7- Enhancing compliance of the banking sector and the non-banking sector in line with international standards.
Programs, policies and initiatives have been identified to achieve the goals. Perhaps the most prominent program is the launch of the National Strategy for Bank Lending in Iraq (2024-2029) and the approval of the Council of Ministers to implement it,
which will restructure banking financing in Iraq, in addition to leaving the electronic platform (ending the currency) and adopting correspondent banks in foreign transfers, protecting the financial system, enhancing financial inclusion, managing monetary and financial stability,
developing oversight and supervision, developing regulation in the banking sector, completing the development of the infrastructure for digital transformation, licensing digital banks, implementing regulatory policies in the Central Bank in accordance with the frameworks and technologies adopted in global central banks, raising the capabilities of human resources, developing banking operations, strengthening the bank's internal and external relations, and representing it locally and internationally.
What has been presented accurately and transparently for the 22 years of the financial and banking reform process confirms that the next two years will inevitably result in the transition to a comprehensive and radical reform of the Iraqi banking sector and transforming it into a solid sector that contributes to sustainable development.
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