Thursday, March 27, 2025

WHAT DOES THE UNITED STATES MEAN BY REAL SECURITY REFORM IN IRAQ?, 27 MARCH

 WHAT DOES THE UNITED STATES MEAN BY REAL SECURITY REFORM IN IRAQ?

The complex security situation in Iraq is a natural consequence of any country facing occupation, as it becomes a hub and haven for various armed and extremist organizations with deviant ideologies, which in turn leads to a state of security instability. Although the United States views the presence of its forces in Iraq as part of its national security strategy, any security issue related to Iraq inevitably overlaps with this presence.

Iraq is witnessing a conflict between international and regional security visions. The United States is focused on achieving its own goals by addressing the Iraqi security situation, but it is not prioritizing the security of the Iraqi citizen himself, which exacerbates the country’s societal security problems.

Iran, on the other hand, views Iraqi security from a completely different perspective, seeking to end the American presence there and ensure its control in a way that serves its national security and bolsters its regional influence in Iraq and other countries such as Yemen and Lebanon. Iraq’s security services are in a fragile balance between the various forces that support them.

For example, the United States has provided significant support to the Counter-Terrorism Service, particularly in the areas of intelligence, training, and consulting, making it one of the most effective security institutions in the country.
In contrast, the Popular Mobilization Forces (PMF) have emerged as a major military and security entity, possessing extensive military and intelligence capabilities and demonstrating their effectiveness in combating armed groups.

The greatest challenge facing Iraqi security now is the US-Iranian conflict, whose features have been imprinted on Iraq’s security landscape.
The consequences of this conflict cannot be ignored or avoided in any form, especially now that every country sees itself as having priority in influencing the situation inside Iraq.

Regarding the regional landscape, the complexities of the situation in Syria and the efforts of some parties to overthrow Bashar al-Assad’s regime have contributed to deepening threats and increasing security concerns in the region in general, and in Iraq in particular. Regional political and security transformations carry international dimensions, with interests intertwined and sometimes conflicting, depending on the demands of “political interests.”

Today, Iraq is experiencing a security situation that oscillates between conflicting international and regional perspectives, with each country approaching Iraqi security according to its own vision. The United States has a predetermined vision of what Iraqi security should look like to serve its interests, while Iran seeks to secure its strategic influence and strengthen its ties with pro-Iranian factions within Iraq. But we, as Iraqis, aspire to achieve stable security that serves the interests of the people, independent of foreign agendas.

Our vision for security must be clear: Iraq’s security comes first and foremost.
We must cooperate with any party that serves this interest, provided this does not infringe upon our national sovereignty or prioritize the interests of one state over another.

Ultimately, we cannot accept America’s vision for Iraqi security if it is based on deep interference in the structure of our security services and directing them to serve its own interests. This is illogical and unacceptable.

Nevertheless, we urgently need the support of our international friends and partners, provided that this support is balanced and respects Iraq’s sovereignty, and does not place the interests of one party at the expense of another.

Accordingly, the security and strategic relations between Iraq and the United States will remain fraught with complexities and challenges, due to the sensitive reality in Iraq and the conflicting interests of major and regional powers.

DISTRIBUTING OIL REVENUES TO IRAQIS: “ECONOMIC COLLAPSE INEVITABLE WITHIN TWO YEARS”, 27 MARCH

 DISTRIBUTING OIL REVENUES TO IRAQIS: “ECONOMIC COLLAPSE INEVITABLE WITHIN TWO YEARS”

Controversy is escalating in Iraq over lawsuits filed by citizens demanding their share of oil revenues. An expert has warned of the disastrous economic consequences of such demands, asserting that direct distribution of oil revenues would lead to the collapse of the Iraqi economy within just one year.

Oil revenues for 2024 are estimated at $90 billion, while non-oil revenues are estimated at only $13 billion, barely enough to cover the government’s electricity, gas, and ration card purchases, expert Nabil al-Marsoumi told Shafaq News Agency.

He emphasized that demands to distribute oil revenues to citizens ignore economic realities. Allocating all oil revenues would deplete the central bank’s cash reserves, forcing the government to resort to deficit financing, or “printing money,” to pay employee and pensioner salaries and social security, which total $70 billion annually, in addition to operating and investment expenses, which total no less than $30 billion annually.

Al-Marsoumi add ed that this approach would lead to rampant inflation and a collapse in the exchange rate of the Iraqi dinar after its flotation, thus plunging the country into a stifling economic crisis within just one year.

However, if half of the oil revenues were distributed, the collapse would occur within two years, according to Al-Marsoumi, who concluded with a sarcastic question: “Isn’t this enough fooling around?”

This statement comes amid l awsuits filed by dozens of Iraqis before the courts of appeal, citing Article 111 of the constitution, which states that “oil and gas are the property of all the Iraqi people in all regions and governorates.”

Legal experts believe these lawsuits involve complex details, noting that national wealth is managed for the benefit of citizens through public services rather than direct cash distribution, a fact confirmed by previous economic experiences in other countries.

On the other hand, some citizens believe that these demands reflect a general dissatisfaction with the performance of successive Iraqi governments in managing wealth, and some have threatened to join these lawsuits if they achieve any positive results.

Mr. Pool: Tier4b activation has begun!! @DINARREVALUATION #iraq #iraqidinar #iraqidinarinvestor

 


MP: The 2025 Budget Amounts To 216 Trillion Dinars, And Sending Its Schedules To Parliament Has Been Postponed, 27 MARCH

 MP: The 2025 Budget Amounts To 216 Trillion Dinars, And Sending Its Schedules To Parliament Has Been Postponed


Deputy Chairwoman of the Parliamentary Finance Committee, Ikhlas al-Dulaimi, ruled out on Tuesday the government's submission of the 2025 budget tables within the next two months, confirming that their total value amounts to 216 trillion dinars.

Al-Dulaimi explained that the Ministry of Finance has not yet sent the 2025 budget tables to the Council of Ministers, even though the Financial Management Law stipulated that they be submitted in October 2024 for approval before the start of the new year.

She added that the actual spending in the budget is estimated at 160 trillion dinars, noting that the Ministry of Finance has not yet completed preparing the tables, which could lead to postponing the budget approval until after the election.

The Iraqi Parliament voted last February on the first amendment to the Federal General Budget Law for the fiscal years 2023, 2024, and 2025.   https://www.radionawa.com/all-detail.aspx?jimare=41469


NADER FROM MID EAST: Iraqi bounds, 27 MARCH

 NADER FROM MID EAST: Iraqi bounds

Summary

Iraq is currently facing a budget deficit stemming from the Finance Ministry’s initiative to issue large-scale bonds. Financial expert Makmoud Dagger, a former central bank official, articulated these concerns in a conversation with Shafaq News. 

He highlighted that the Finance Ministry has turned to bond issuance as a mechanism to ensure liquidity and manage government expenditures due to the difficulties encountered in marketing bonds to the public. In sight of this challenge,

 the central bank opted to raise interest rates, and banks are now utilized as intermediaries for these bonds, since they possess liquidity and favor investing in high-yield, low-risk government securities, also referred to as “risk-free” investments.

Dagger projected that the current strategy would likely succeed in attracting banks to participate, especially since the interest rates offered on these bonds are competitive compared to returns from other financial activities.

 A letter from the Central Bank revealed the Finance Ministry’s plan to issue a total of 3 trillion Iraqi dinars in national bonds, aimed solely at local banks.

 The bond issuance will occur in two trenches: the first one will consist of bonds valued at 500,000 dinars each, which will have a two-year maturity and an annual interest rate of 8%. The second trench will involve bonds valued at 1 million dinars each with a four-year maturity and a more attractive annual interest rate of 10%. This strategic sale is set to take place between March 20 and the unspecified future date.

  • 💰 Budget Deficit: Iraq is grappling with a significant budget deficit primarily due to the Finance Ministry’s bond issuance.
  • 🏦 Bond Issuance Strategy: The ministry is opting to issue bonds in large volumes to secure liquidity and cover government expenditures.
  • 🔼 Interest Rate Hike: The central bank has raised interest rates to make bonds more enticing for banks and investors.
  • 💡 Bank Participation: Local banks are expected to act as intermediaries for bond sales, attracted by the prospect of secure investments.
  • 📈 National Bonds Details: Iraq is introducing national bonds worth 3 trillion dinars, exclusively for local banks.
  • ⏰ Two Trenches of Bonds: One trench features bonds of 500,000 dinars with 2-year maturity, while the second trench includes bonds worth 1 million dinars with a 4-year maturity.
  • 📅 Scheduled Sale: The sale of the bonds will commence on March 20, with further details pending.

Key Insights

  • 📉 Growing Debt Pressure: The issuance of bonds signifies a crucial response to Iraq’s deepening budgetary strains. This reflects broader economic challenges facing the nation, underscoring the need for strategic financial instruments to stabilize the fiscal situation.

  • 🏧 Intermediary Role of Banks: With banks stepping into the role of intermediaries, there’s a fundamental shift in how government debt is managed in Iraq. Banks are offering the government a lifeline while simultaneously securing attractive yields, thereby forming a mutually beneficial relationship that could stabilize future financing needs.

  • 💪 Liquidity Assurance: The reliance on bank liquidity reflects the cautious positioning of the Iraqi government amidst uncertain economic conditions. By targeting local banks for bond sales, authorities are likely aiming to keep funds within domestic financial systems, minimizing dependence on foreign investment.

  • ⚖️ Risk-Reward Balance: The higher interest rates attached to these bonds are calculated to match or exceed returns from alternative investments. This creates a risk-reward scenario for banks that can strategically channel their excess liquidity into government securities rather than riskier ventures.

  • 📊 Market Confidence: The response from banks regarding these bonds could indicate confidence in government spending and the economic recovery of Iraq. A robust uptake by banks will potentially signal to international markets a willingness to support the government’s fiscal policies.

  • ⏳ Investment Window: The planned issuance represents a specific window for banks to invest in government bonds under favorable terms. The staggered maturities of bonds may allow banks to manage their liquidity timelines efficiently.

  • 🏛️ Fiscal Policy Direction: This bond issuance strategy marks a particular direction in Iraq’s fiscal policy, suggesting a focus on re-establishing government liquidity without immediately raising taxes or cutting expenditures, which could stifle economic growth.

Through careful management of resources and an understanding of market conditions, Iraq’s government may stabilize its financial operations while fostering a renewed reliance on local banking institutions to secure funding and manage economic risks effectively. As the situation develops, stakeholders will be watching closely how these bonds are received in the market and their overall impact on Iraq’s economic landscape.

FIREFLY: All of this points to a new exchange rate coming!! @DINARREVALUATION #IQD #iraq

 


Iraq Begins Implementing The TIR System: A Step Towards Boosting International Trade And Reducing Transportation Costs, 27 MARCH

 Iraq Begins Implementing The TIR System: A Step Towards Boosting International Trade And Reducing Transportation Costs

Buratha News Agency832025-03-25   The American Transportation Bulletin, a website specializing in commercial shipping affairs, stated that Iraq will begin implementing a global transportation system next week, marking the beginning of a new era in logistics and international trade. 

The website's report explained that the TIR system will become fully operational when it goes live in Iraq on April 1, 2025.  TIR is an international customs transit system that allows goods to pass from the country of origin to the country of destination in sealed loading containers with customs controls throughout the supply chain, helping transportation companies and customs authorities save significant time and money at the border.

The report also noted that this important achievement strengthens Iraq's position as a major trading hub in the Middle East, making the transport of goods more efficient and secure across and beyond Iraq's borders.

In addition, the report stated that the TIR system will play a significant role in transforming Iraq's "Development Road" project into reality, which will connect southern Iraq to northern Iraq and provide an efficient trade corridor linking Asia, the Gulf Cooperation Council countries, Turkey, and Europe.

According to the report, logistics and transportation companies are ready to begin implementing TIR operations from points of origin such as Mersin in Türkiye to GCC countries via the Iraqi port of Umm Qasr.

Trial operations have shown that this journey can be completed in less than a week, compared to a minimum of 14 days via the Red Sea, or 26 days if the ship has to make a circuit around Africa.

In contrast, Iraqi Minister of Transport Razzaq Al-Saadawi stated: "The operation of the TIR system in Iraq, in which the IRU played a significant role, represents a major achievement, positioning the country for a new phase of potential investment and inter-trade with our neighbors and other countries in the region."

Al-Saadawi added that TIR will benefit from Iraq's strategic location, contributing to enhancing the efficiency of cross-border trade. He noted that this move, supported by Prime Minister Mohammed Shia al-Sudani, will reduce transportation time by 80% and costs by 38%, providing significant economic benefits and job opportunities.

Al-Saadawi added that Iraq has worked to develop its land transport infrastructure over the past two years in cooperation with all relevant stakeholders, and that the government is committed to maximizing the benefits of the system to support the transport sector and the national economy.

For his part, IRU Secretary General Umberto de Pretto expressed his enthusiasm for this "historic" achievement, saying: "For nearly eight decades, the TIR system has contributed to promoting safe trade, and I look forward to seeing the first TIR truck cross Iraqi territory."

He explained that these trucks will transit the country smoothly through corridors that provide a high level of security, opening a new chapter in Iraq's role in international trade.

The report concluded by emphasizing that integrating the electronic pre-declaration system with the local Iraqi TIR platform will allow for advance submission of shipment information, enhancing the efficiency of customs procedures.

Meanwhile, stakeholders will be able to closely monitor trucks using GPS technology, with regular checkpoints to ensure the safety of shipments and transportation so they reach their final destination safely and on time.   https://burathanews.com/arabic/economic/458009


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