BROTHER TECHN: Iraq clearly has enough monetary power to buy back all their currency off the streets

 

Al-Sudani's advisor: Iraq's foreign exchange reserves are fine., 23 APRIL

  Al-Sudani's advisor: Iraq's foreign exchange reserves are fine.

4/21/2025- Baghdad 

 The Prime Minister's financial advisor, Mazhar Mohammed Salih, confirmed on Monday that Iraq's foreign exchange reserves cover 100% of the national currency.

Saleh said, "Iraq's foreign currency reserves still have the capacity to cover 100% of the national currency issued, and that commercial efficiency has been achieved."

He added, "These reserves still cover the country's imports for three months, and therefore foreign reserves are considered stable." He pointed out that the development of the optimal external use of foreign currency is achieved through a careful balance between the role of these reserves in maintaining the foreign purchasing power of the dinar and the stability of the exchange rate, and the standard of reserve efficiency, which is one of the functions of monetary policy as an independent body in achieving its goals of monetary stability and economic development.

On March 31, 2025, the Central Bank of Iraq revealed that the central bank's net foreign reserves for 2024 amounted to 130.81 trillion dinars, a 10.18% decrease compared to the same period in 2023, when they reached 145.64 trillion dinars.

 The Central Bank confirmed that the reason for the decline in foreign reserves is due to the rise in domestic public debt, which is intended to cover the real deficit in the state's general budget. LINK

Iraq Confirms Full FX Readiness , 23 April

 Iraq Confirms Full FX Readiness 

— Then Drops the Deficit Card. This Is the Setup for the Switch.

The pattern is too precise to ignore.

A wave of signals floods out of Iraq:

•$1.67B infrastructure blitz launched in Dhi Qar

•CBI confirms foreign reserves can fully back the dinar

•Mastercard freezes all Iraqi-issued card transactions (domestic + international)

•WTO workshops accelerate Iraq’s accession timeline

•Virtual banking and SAMA trading rails go active

It looks like a country on the verge of full financial integration.

Then suddenly, boom:

“Iraq PM admits ‘real deficit’ in federal budget.”

At first glance, it feels like a contradiction.

In reality, it’s the final setup move before a currency reset.

Here’s what they’re doing:

They’ve already built the digital banking rails.

They’ve secured the reserves.

They’ve cleaned up smuggling pipelines.

They’ve aligned with global trade partners.

Now they drop the budget deficit admission — not as a weakness, but as a public trigger to justify what comes next.

“Everything is in place… but the budget can’t hold at this rate.”

This is how you prepare a nation and its allies for a revaluation shockwave:

•Flood the news with readiness

•Show the investment momentum

•Then reveal the deficit pressure that forces the rate correction

It’s not chaos. It’s choreography.

The deficit isn’t the problem.

It’s the excuse.

And the rate is the solution.

bnftrade (article)

TIDBIT FROM FRANK26, 23 APRIL

 Frank26 

  Nothing is logical at 1310.  That's why to me it is such powerful evidence when we don't see the salaries...HCL...budget tables...lower notes because everything on that list is simply waiting for the new exchange rate...Everything is at a standstill. 

 Everything is frozen.  It's like somebody clicked the stopwatch and it stopped time in Iraq until a new exchange rate is brought forth. 

Iraqi Dinar RV: The Number’s Set, Just Not Public Yet! @DINARREVALUATION #iraqidinar #iraq

 

Al-Sudani acknowledges the "actual" realization of the budget deficit , 23 APRIL

 Al-Sudani acknowledges the "actual" realization of the budget deficit 

4/21/2025

Iraqi Prime Minister Mohammed Shia al-Sudani acknowledged on Monday that the federal budget deficit has been realized.

In his speech during a meeting with the head and members of the Dhi Qar Provincial Council, as reported by Shafaq News Agency, Al-Sudani said, "In our government, the budget deficit has actually appeared to achieve accomplishments, and there is efficiency in spending, performance, and work, while the previous deficit was planning."

He added, "Our government has arranged the spending mechanism according to the principle of the most important, then the important, and we have worked in many sectors and achieved positive results," indicating, "In the 2024 budget, (156) trillion dinars were spent out of (213) trillion planned, including (90) trillion for salaries, (40) trillion for operational, and (13) trillion for ministries and governorates' projects."

Last year's budget amounted to 211 trillion dinars, with revenues estimated at 144 trillion and 336 billion dinars, while expenditures amounted to 210 trillion and 936 billion dinars, and the deficit was 63 trillion and 599 billion dinars.   LINK

CRYPTO TRADER : MP: The budget cannot be delayed and Parliament will discuss it next week, 23 APRIL

 CRYPTO TRADER

MP: The budget cannot be delayed and Parliament will discuss it next week

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Corruption, Mismanagement, Unemployment, and Poverty in Iraq: A Comprehensive Economic Analysis and Path Forward

Corruption, Mismanagement, Unemployment, and 

Poverty in Iraq: A Comprehensive Economic

 Analysis and Path Forward

BY: Shatha  Kalel
Introduction
Over two decades after the 2003 U.S.-led invasion, Iraq continues to face a series of interconnected structural challenges that hinder its economic and social development. These include widespread financial and administrative corruption, chronic mismanagement, high unemployment, and alarming poverty rates. Despite possessing abundant natural resources, particularly oil, Iraq has struggled to transform this wealth into sustainable growth and social prosperity.

The following analysis examines these crises through a comprehensive economic lens, shedding light on their root causes and interconnectedness. It also presents targeted policy recommendations for addressing Iraq’s socio-economic vulnerabilities and fostering long-term stability.

I. Financial and Administrative Corruption: A Systemic Threat
Corruption in Iraq is not merely a peripheral issue—it is a systemic crisis deeply embedded in public administration and economic policy. According to estimates, hundreds of billions of dollars have been lost to corruption over the past two decades, placing Iraq consistently among the most corrupt nations globally, according to Transparency International’s Corruption Perceptions Index.

This rampant corruption has depleted the state treasury and crippled the government’s ability to finance public goods and services. Key sectors—including healthcare, education, infrastructure, and industrial production—have deteriorated due to embezzlement, inflated contracts, and ghost employees. Corruption networks, often linked to political factions and militias, exert significant influence over state institutions, undermining regulatory oversight and the rule of law.

II. Mismanagement and the Fragility of the Oil Rentier Economy
Iraq’s economy remains overwhelmingly dependent on oil, which accounts for over 95% of government revenue. This “rentier state” model exposes Iraq to volatile global oil markets, leading to alternating periods of boom and bust. For example, the 2020 collapse in oil prices resulted in an 11% contraction in GDP, while a rebound in prices in 2022 temporarily boosted growth to 9.3%.

Such volatility hinders medium- and long-term economic planning. The absence of economic diversification leaves Iraq vulnerable to external shocks, exacerbates fiscal imbalances, and limits job creation. Successive governments have failed to develop productive sectors such as agriculture, manufacturing, and technology, thereby deepening the country’s structural dependence on oil.

Furthermore, the management of Iraq’s oil revenues is complicated by international arrangements. Under U.S. Executive Order 13303, Iraqi oil funds are held in the “Iraq-2” account at the U.S. Federal Reserve, allegedly to protect assets from international claims. While this framework offers a degree of legal protection, many Iraqis perceive it as a restriction on national sovereignty. Recent moves to replace the Central Bank’s currency auction with direct international transfers may signify a step toward financial autonomy.

III. Unemployment and Poverty: A Social Time Bomb
The social repercussions of corruption and mismanagement are dire. Iraq’s unemployment rate reached 16.5% by early 2024, while the poverty rate stands at approximately 22%, affecting more than 10 million Iraqis. This economic insecurity is compounded by years of war and displacement, which have created approximately 6 million orphans and 2 million widows.

An estimated 4 million Iraqis live in informal settlements or slum areas, lacking access to clean water, healthcare, education, and other basic services. These conditions not only erode human capital but also fuel resentment, instability, and migration.

Public sector employment remains the largest source of jobs, yet it is bloated, inefficient, and unsustainable. The private sector is underdeveloped, constrained by poor infrastructure, corruption, and lack of access to finance. Young Iraqis entering the labor market face limited prospects, which contributes to social unrest and brain drain.

IV. Policy Recommendations: Toward a Resilient and Inclusive Economy
To address these structural challenges, Iraq must adopt a comprehensive national reform agenda that targets both economic diversification and institutional rebuilding.

1. Anti-Corruption Framework

Establish an independent anti-corruption commission with prosecutorial powers.

Digitize government services and public procurement to increase transparency.

Enforce asset declarations and auditing for public officials.

2. Economic Diversification

Invest in agriculture and agribusiness to reduce food imports and create rural jobs.

Promote small and medium enterprises (SMEs) through targeted credit programs.

Develop strategic industries, including renewable energy, construction, and information technology.

3. Labor Market Reform

Modernize vocational education and training 

to align with market needs.

Facilitate public-private partnerships to absorb youth into the workforce.

Introduce labor-intensive public works programs in infrastructure and housing.

4. Social Safety Nets

Expand conditional cash transfers targeting vulnerable households.

Provide housing subsidies and basic services in marginalized areas.

Prioritize mental health and social reintegration programs for orphans, widows, and IDPs.

5. Fiscal and Monetary Reforms

Revise the budget structure to prioritize capital investment over operational spending.

Strengthen the independence and capacity of the Central Bank of Iraq.

Renegotiate the legal framework for managing oil revenues to restore financial sovereignty.

Conclusion
Iraq stands at a critical juncture. While the challenges of corruption, unemployment, poverty, and mismanagement are daunting, they are not insurmountable. With strong political will, institutional reforms, and an inclusive economic vision, Iraq can chart a new course toward prosperity and stability.

The road to recovery requires more than just financial resources—it demands courageous leadership, civic engagement, and an unwavering commitment to justice and equity. Only then can Iraq reclaim its rightful place as a stable, prosperous, and sovereign nation.

Economic Unit/North America Office
Al Rawabet Center for Research and Strategic Studies