IRAQ UPDATE, 31 MARCH

IRAQ UPDATE

Highlights

• ⚖️ Controversy Over Oil Revenues: Citizens’ lawsuits demanding oil revenue sharing are predicted to have serious economic consequences unless the economy stabilizes.

• 📊 Budget Progress: Iraq’s Minister of Planning announces the completion of budget preparations, hinting at potential economic advancements.

• 💼 Banking Reforms: Prime Minister al-Sudani promises crucial banking sector reforms to launch after Eid, emphasizing their historical importance for Iraq.

• 📈 Increase in Gold Reserves: The Central Bank’s gold reserves rose by 10 tons, signaling a strategy to stabilize financial systems.

• 💰 IMF Engagement: High-level talks with the IMF may herald significant currency revaluation and economic breakthroughs for Iraq.

Key Insights

• 📈 Currency Dynamics and Economic Growth: The emphasis on Iraq’s potential for currency revaluation highlights the fragility of the current economic situation, reliant on oil revenues. If reforms can enhance economic stability, the possibility exists for a favorable shift in the Iraqi Dinar’s valuation.

• ⚠️ Risks of Immediate Revenue Sharing: Experts caution that pressing for oil revenue distribution amidst current economic instability could exacerbate challenges, indicating a need for careful reform timing and execution.

• 🏦 Reform as a Catalyst for Stability: Prime Minister al-Sudani’s acknowledgment of the banking sector’s necessity for reform underscores the critical need for a reliable financial system as a foundation for broader economic recovery and reinvestment.

• ⏳ Strategic Timing for Reforms: Waiting until after Eid for launching reforms suggests that the government is strategically timing interventions to resonate positively with the populace and stabilize expectations.

• 🌍 Global Financial Integration: The discourse around Iraq’s integration into the global financial system reveals ongoing efforts and the necessary groundwork before a successful currency revaluation, hinting at broader geopolitical implications tied to the economy.

• 💡 Potential for Investment Opportunities: With developments surrounding the Dinar and wider economic reforms, opportunities for foreign investment could increase, presenting a call to action not only for local citizens but for international investors considering the Iraqi market.

Fnu Lnu :The Dinar is now getting International attention! @DINARREVALUATION #iraqidinarinvestor

 

The government completes the budget schedules amid a deficit that affects jobs and services in Iraq, 31 MARCH

 The government completes the budget schedules amid a deficit that affects jobs and services in Iraq

A government source reported on Saturday that the general budget schedules have been completed and will be submitted to the House of Representatives after the Eid al-Fitr holiday. The source indicated that it will be approximately $200 billion, with a large deficit that will reduce the operating budget and reduce service projects. 

The source told Shafaq News Agency, "The general budget schedules have been completed in a preliminary form and may be transferred to the House of Representatives immediately after the Eid holiday. If this is not possible, it may arrive before the first half of next April so that the legality of its paragraphs can be discussed by the relevant committees in a manner consistent with government spending and the requirements of the stage." 

The source explained that "the total budget amounts will be around $200 billion, with a significant deficit due to the significant decline in strategic reserves of gold and hard currency, in addition to the lack of financial liquidity due to the many projects that require significant spending."

The source indicated that "the operating budget will be reduced, and the pace of service projects launched by the government will be reduced. Consequently, we may witness an urgent budget, as the Independent High Electoral Commission is requesting its financial allocations by mid-April at the latest, to enable it to allocate its spending to prepare for the elections in October."

Economic experts have warned of the impact of delaying the approval of the general budget on economic activity in Iraq, given that it represents a strategic plan for economic development, job creation, and financial stability. At the same time, they emphasized the importance of disbursing the budget, rather than approving it without funding, as occurred last year. This comes amid government assurances that the economic situation is "stable."    

The "triennial" federal budget was approved in 2023, for the years 2023, 2024, and 2025. However, Parliament must approve the budget schedules for each year, and the current year's budget schedules are still with the government, which is currently amending them.   link

TIDBIT FROM WALKINGSTICK, 31 MARCH

 Walkingstick  

 Question:  "What is your opinion about this word 'Asraflak'?"  

That's the education for the financial and banking system of Iraq.  This is their monetary reform being dissected, torn apart and explained to the citizens pictorially now. 

 They're going from verbal to pictorial...The bulletins, education, all the awareness, this is actual transparency 

... These next two month are going to scream the monetary reform to the Iraqi citizens.

FNU LNU : There is a hold on the RV for an unspecified amount of time! @DINARREVALUATION #iraqidinar

 

The fate of 315 contract employees at the Ministry of Oil has been revealed , 31 MARCH

   The fate of 315 contract employees at the Ministry of Oil has been revealed - Urgent

Member of Parliament, Ali Al-Mashkoor, revealed today, Saturday (March 29, 2025), the fate of 315 contract employees in the Ministry of Oil.

Al-Mashkoor told Baghdad Today, "The Oil Minister informed Prime Minister Mohammed Shia al-Sudani that oil companies have the funds to finalize all contracts, including Contract 315, and to close this file at the ministry."

He added, "The Ministry of Oil is awaiting government instructions to approve the completion of the stabilization or to include a paragraph in the 2025 budget tables, which are expected to reach Parliament in the coming period."

Al-Mashkoor expressed his "hope that the 315 contracts would be confirmed in all ministries to enhance their financial capacity to cope with the difficult living conditions."

According to statements by members of the Parliamentary Finance Committee, the 2025 budget schedules do not include any appointments due to the financial deficit it is suffering from, coupled with fluctuating oil prices, the mainstay of Iraq's revenues  link

TIDBIT FROM MILITIAMAN, 31 MARCH

  Militia Man 

 Article quote: "Sudani...says the government banking sector will be reformed under the supervision of Ernst & Young." 

 I suggest everybody go and search Oliver Wyman Ernst & Young and see what their credibility is in the world stage. 

 They don't play games.  They're accurate as they can be.  That's their job.  They are 100%.  

We have a gentleman that I know personally...who worked for Ernst & Young and many other firms over his lifetime, he assures me what I said is true...