GOVERNMENT ADVISOR: CONTRACTING WITH INTERNATIONAL AUDIT FIRMS IS A KEY STEP TOWARD MODERNIZING THE ECONOMIC STRUCTURE.

 GOVERNMENT ADVISOR: CONTRACTING WITH INTERNATIONAL AUDIT FIRMS IS A KEY STEP TOWARD MODERNIZING THE ECONOMIC STRUCTURE.

Mazar Mohammed Saleh, an advisor to the Prime Minister, confirmed on Friday that contracting with international audit firms to evaluate the banking sector is a key step toward modernizing the economic structure. While explaining that these firms are independent and unaffected by pressures and interests, he indicated that this modernization contributes to strengthening confidence in the Iraqi financial market and reform in this sector, and encourages a shift away from the informal cash economy.

Advisor to the Prime Minister, Mazhar Mohammed Salih, told the Iraqi News Agency (INA): “The statements made by Prime Minister Mohammed Shia al-Sudani during his recent important meeting with the chairmen of the boards of directors of private banks in Iraq or their representatives are consistent with the banking reform policy in Iraq,

 particularly highlighting the importance of contracting with international firms for financial auditing and assessing the status of the banking market in our country. 

This represents a fundamental step and a foundation towards comprehensively modernizing the economic structure, while simultaneously reflecting a drive to rebuild trust and cohesion within the financial sector in general and the banking market in particular.” He added,

 “Prime Minister Mohammed Shia al-Sudani’s statements undoubtedly represent reform axes that do not deviate from the principles of the government’s approach that state institutions have followed over the past few years. The primary goal of banking reform is to modernize it to align with international standards in governance, compliance, and transparency, particularly in providing confidence and efficiency in the provision of banking services to society with a broad framework of integrity and credibility in banking work.” He noted that “the Prime Minister’s speech 

focused on the need to encourage investment by ensuring a reliable banking system that supports financial inclusion and efforts to transition to a digital economy, electronic payments, and all digital transactions. ”

 He explained that “the Prime Minister’s speech focused on the importance of contracting with international auditing firms to re-evaluate the conditions of banks, both private and government-owned, based on a single premise: ensuring their institutional capabilities to uncover any financial loopholes in the country’s banking system,

 verify the integrity of accounting and administrative procedures within local banks, and provide an accurate assessment of the financial suitability of banking institutions. This supports reform plans with real data to take effective steps to build a long-awaited, integrated and efficient banking system.” He indicated that “these international companies possess advanced auditing expertise and technologies, undoubtedly supported by local competence.

 In addition, the international auditing and accounting firms currently undertaking the banking sector evaluation process are independent entities, unaffected by pressures and interests, and provide greater credibility to the international community and investors, which enhances confidence in our country’s financial market.” 

He continued, “Prime Minister Mohammed Shia al-Sudani’s speech did not depart from the fundamental principles of financial and banking reform, which are based on encouraging citizens and companies to deposit funds and engage in credit transactions with banks instead of the informal cash economy. This is achieved by creating an attractive investment environment based on transparent and stable banking institutions, with the goal of supporting the private sector with effective loans and financial services.

 This contributes to creating job opportunities and sustainable development within the aforementioned private sector, which is the true partner of the state in economic progress and prosperity in Iraq.” Prime Minister Mohammed Shia al-Sudani chaired a meeting of the heads of the boards of directors of Iraqi banks, during which mechanisms for implementing the banking reform plans prepared by the government were discussed as part of comprehensive reforms of the economic sector.

During the meeting, according to an official statement, the Prime Minister emphasized that “all state sectors are linked to the existence of an effective and flexible banking system that relies on modern technologies.” He noted that “the government has adopted comprehensive plans for banking reform and contracted with private financial auditing companies, including all banks, and has made significant progress in implementation.”

He explained that “the work of the First Rafidain Bank will launch with a new look and vision, in partnership with specialized and well-known banks.” He pointed to “the formulation of a clear roadmap to address the conditions of the private banking sector, as a partner in development.” He emphasized the need for cooperation during the next phase to take effective steps in economic reform.

He pointed to “the state’s distancing from detailed intervention in sectors and assuming a regulatory role,” indicating efforts to “engage the private sector and foreign companies in all mega-projects, as well as support local productive sectors and absorb the imported cash flow.” Providing domestic goods and services to citizens as an alternative to imports and ensuring support for local investment. The Prime Minister directed “banks to simplify procedures and participate broadly in the development process, as well as to participate as investors in all available opportunities, move toward partnerships with foreign companies, and work to build trust with citizens, which will help ensure they feel confident depositing their money in banks.”

“Iraq Now International” – MarkZ Evening Intel Stream Highlights 5-13-25

 Evening News with MarkZ. 05/13/2025

Some highlights by PDK-Not verbatim

MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context.  Be sure to consult a professional for any financial decisions

Member: Good evening one and all

Member: Lots going on…here and over there…..

Member: I’m hearing 46 Iraqi companies are in the US right now until May 14th for direct investments in American. They would not be able to do that without an international rate

MZ: buckle up…the news really is solid.

Member: Do you think the trigger has been pulled and it’s a slow roll out?

MZ: yes.

Member: Could we have appointments before the rate is on forex?

MZ: If it works like Kuwait- yes. I was told they would try to slide up in a week or so before forex….but in this day and age- I don’t know how they can do that.

MZ: I do know a couple of historic bond contacts with appointments set in stone for tomorrow. Then a couple more with appointments on Wed and Thurs. these are different bonds then some seen previously

MZ: I am hopeful we get some idea on timing from those.

MZ: “Spokesman for the Secretary General of the Arab League: Preparations for the Baghdad summit were successful in all aspects” Many folks attending are already showing up including folks from the IMF ect.

Member: This starts over the weekend.

MZ: “IMF praises Iraq’s progress in economic reforms. Ready to advise” 

MZ: “ Swift and the Federal Reserve put Iraq at the mercy of the global economy”  this points out that Iraq is now “International”

Member: Interenational requires an RV.

MZ: We are waiting for that announcement

Member: Have a great night everyone. See you all in the morning

Mod: Mark’s next travel schedule. He leaves on May 17th (which is Mark’s dad 80th B-Day) and comes back on May 21st. Zester will host the podcast when Mark is gone. Mark will pop in when he can.

THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY

IRAQ PM CONFIRMS DINAR REVALUATION

“ECONOMIC IMBALANCE”… IRAN IS AT RISK OF LOSING IRAQ SOON

“ECONOMIC IMBALANCE”… IRAN IS AT RISK OF LOSING IRAQ SOON

 The American Middle East Forum Institute has monitored the “economic imbalance” between Iraq and Iran, noting that the potential strategic repercussions of diminishing Iranian economic influence in Iraq in the coming period could leave Tehran vulnerable to losing Baghdad, as it is one of its last significant geopolitical and financial defenses in the region.  

The American Institute’s report, translated by Shafaq News Agency, stated that despite the severe shortages it faces domestically in terms of electricity and natural gas supplies and the difficulty in obtaining payments due to US sanctions, Iran continues to export energy resources to Iraq. This represents a contradiction in its long-term geopolitical calculations, which aim to “deeply entrench its influence in the Iraqi economy and political system.”

Noting that Iran’s exports to Iraq have increased more than 100-fold over the past two decades, demonstrating the depth of this intertwining, the report said, “Iran’s energy exports to Iraq have become a fundamental pillar of its influence in the country. Its modest non-oil exports to Iraq have increased from $145 million in 2005 to $11.9 billion in 2024, representing 20% ​​of its total non-oil exports. This figure does not include approximately $3 billion in electricity and gas exports to Iraq last year.”

According to the institute’s report, its data, based on Iranian customs figures, shows that Iran has exported goods and services to Iraq worth more than $100 billion over the past two decades. Furthermore, according to the report, Iran began exporting electricity to Iraq in 2005, generating approximately $10 billion in revenue over the past two decades.

He continued, “Since 2017, Iran has increased its gas exports, delivering more than 60 billion cubic meters over seven years, worth approximately $18 billion.”

Overall, he confirmed that Iran’s exports to Iraq amounted to $130 billion over 20 years, while Iranian imports from Iraq remained marginal. Prior to US sanctions on Iran in 2018, they amounted to a few tens of millions of dollars annually, and  recently reached approximately $500 million.

The report stated that “this economic imbalance has led to Iraq’s dependence on Iranian goods, energy, and services, which has allowed Iran to exert political influence in Baghdad, fund its pro-Iranian groups, and use Iraqi financial networks to facilitate currency smuggling and the secret sale of oil under Iraqi control.” 

After noting the numerous restrictions imposed by the US Treasury Department on several Iraqi banks, the report explained that these measures have made it more difficult for Iran to access hard currency through Iraq, a vital lifeline in light of Tehran’s broader isolation from the global financial  system .

The report found that Iran’s regional influence has declined since mid-2024 following Israeli strikes against its proxies and the fall of Bashar al-Assad’s regime in Syria, making Iran’s role in Iraq more vulnerable. 

Therefore, the report considered that this situation created a new space for Iraq to strengthen its independence, while the “maximum pressure” campaign launched by the Donald Trump administration against Tehran encouraged Baghdad to begin diversifying its partnerships and reducing its dependence on the political and economic axis represented by Iran .

He explained that the International Monetary Fund expects the Iraqi economy to shrink by 1.5% in 2025, with the phasing out of US energy import waivers a contributing factor. He added that despite Turkey doubling its electricity exports to Iraq this year, Iraq’s gas deficit remains unresolved in the short term, posing a serious threat to the electricity grid and industry, and could lead to summer power outages and civil unrest.

The report continued: ” After Washington imposed a “maximum pressure” campaign on Tehran in 2018, Iraq has been accumulating unpaid gas and electricity debts to Iran, reaching nearly $8 billion.”

He added, “Despite this, Tehran insists on continuing its exports, based on its strategic calculations rather than its economic logic,” considering that this influence may decline, as the International Monetary Fund expects Iran’s total exports to decline by $11 billion in 2025 compared to 2024, while the Fund also expects   a daily decline of 300,000 barrels in Iranian oil exports due to renewed US pressure, in addition to the decline in global oil prices.”

The report indicated that the US Treasury’s restrictions on Iraqi banks’ access to dollars will undermine Tehran’s ability to recover its funds. As a result, the Iranian rial will lose approximately 50% of its value in 2024, while the International Monetary Fund expects Iran’s GDP to decline by $60 billion in 2025, reaching $341 billion, its lowest level in 18 years .

He emphasized that Iran’s economic influence over Iraq remains significant, but fragile, adding that US financial restrictions, internal resentment in Iraq over Iranian interference, and Baghdad’s plans to diversify its gas sources all pose serious threats to Tehran’s influence.

He pointed out that if Iraq succeeds in reducing imports of Iranian goods, replacing Iranian gas with local or Turkmen supplies, and enhancing the compliance of its banking system with international standards, Iran “could lose one of its last significant geopolitical and financial defenses in the region.”

The report considered that, for the United States and its allies, strengthening Iraq’s energy independence and financial stability should be a strategic priority, adding that, for Iran, the cost of clinging to Iraq in the near future could outweigh the benefits.

TIDBIT FROM FRANK26

 Frank26   

 We've been reading article after article after article telling us the Iraqi dinar has gone up in value...

The monetary policy was to remove 1310...It's not like they're hiding anything.  Everything they're saying in these articles leads to the conclusion.. .

you have a monetary policy that has been successful.  You have an exchange rate that you're controlling against the American dollar? that's at 1310? 

 That means you're about to go into a float in order to add value to it aren't you?  Everything is set up beautifully right now.

GOLDILOCKS: Banks Preparing For New Currency Exchanges - ALL Test Comple...

THE SECRETS OF “BLACK TRADE”… FACTION TACTICS BRING THE DOLLAR BACK TO 140,000 DINARS

 THE SECRETS OF “BLACK TRADE”… FACTION TACTICS BRING THE DOLLAR BACK TO 140,000 DINARS

 The current decline in the US dollar exchange rate against the Iraqi dinar is raising concerns among economists, as it “did not result from radical reforms to the economic structure and mechanisms for dealing with foreign currency,” exposing it to a sudden resurgence when black market networks resume activity or any political or security tensions arise .

According to the Al-Kifah and Al-Harithiya stock exchanges in the capital, Baghdad, they closed on Thursday evening at 142,700 Iraqi dinars for every US dollar. Meanwhile, selling prices at exchange shops in local markets were 144,000 Iraqi dinars for every US dollar, while buying prices reached 142,000 dinars for every US dollar .

In Erbil, the capital of the Kurdistan Region, the selling price was 142,900 dinars per $100, and the buying price was 142,800 dinars per $100 .

” Great danger “

Regarding the repercussions of this decline, Kazem Al-Shammari, a member of the Parliamentary Economic Committee, stated, “This decline in the dollar exchange rate has negative repercussions and raises concerns among economists, because the more the dollar declines, the more the country’s economy is exposed to greater danger .”

Al-Shammari explained to Shafaq News Agency, “The current situation of the Iraqi dinar is unstable due to its absence in daily transactions and the fact that a large portion of it is stored in homes, which significantly impacts the country’s economic situation .”

He explained that “an individual’s purchasing power depends on the strength of the economy. If a country’s economy is healthy and strong, purchasing power will be good. However, if the economy is collapsing, there will be no purchasing power. Therefore, anyone who believes that the decline of the dollar benefits the Iraqi economy is mistaken .”

Regarding the role of parliament in addressing this potential crisis, Al-Shammari said, “Parliament has entered a legislative recess, and during this recess, the House of Representatives is not permitted to host officials or hold meetings, except for extraordinary sessions based on the signatures of a specific number of representatives or an invitation from the House Presidency .”

Due to this holiday, he confirmed that “we will be meeting with the governor of the Central Bank starting next week to discuss the nature of this decline, whether it is planned or an emergency, the consequences of this decline on the economy and individuals, and the Central Bank’s measures in this regard .”

Faction tactics

The current decline in the dollar on the parallel market is “a development that reflects the magnitude of the financial changes that have recently occurred in the local market,” according to economic researcher Ahmed Eid . However, it is a temporary decline due to low demand, a contraction in official imports, tightened controls at border crossings, and some monetary movements.

Eid told the agency that “recent government measures have contributed to expanding dollar sales outlets through official banks and increasing coverage for travel, study abroad, and medical treatment, alleviating pressure on the black market, creating a temporary balance between supply and demand in the market .”

But deeper down, there’s a “dark side” to this decline, as Eid describes it, attributing it to “the presence of numerous economic offices affiliated with militias and parties that have long controlled a significant portion of financial transfers and the smuggling of dollars abroad. These have recently reduced their activities as a result of American and international pressure and potential sanctions .”

He pointed out that “reducing these activities has reduced the demand for dollars from these informal networks, especially since some of these offices have temporarily reduced their activity as a precautionary tactic pending a change in the political climate or a relaxation of controls .”

Therefore, the economic expert considered that “this decline may be viewed as stability, but it is a fragile stability because it is not based on radical reforms to the economic structure and mechanisms for dealing with foreign currency, but rather on circumstantial shifts that could be reversed at any moment .”

Eid predicted that “if black market networks resume activity or any political or security tensions arise, the dollar could suddenly rise again, requiring a comprehensive national strategy to control the market and curb the influence of illegal economic offices that continue to operate in Iraq and pose a real threat to its national economy .”

Government procedures

However, in an interview with Shafaq News Agency, the Prime Minister’s financial and economic advisor, Mazhar Mohammed Salih, praised the decline in the dollar’s price, attributing this to the Central Bank of Iraq’s success in financing foreign trade for the private sector, encouraging small business financing without costly intermediaries, and the success of travelers in obtaining their foreign currency dues .

Economic expert Nawar Al-Saadi agreed with Saleh, stating that “the decline in the dollar exchange rate is not surprising, but rather reflects a set of policies and measures that are gradually beginning to bear fruit, along with other developments in market behavior and local demand for hard currency .”

Al-Saadi explained, during his interview with the agency, that “the first decisive factor is the gradual expansion in the use of electronic payment tools, which has contributed to reducing reliance on cash dollars, especially among travelers, thus reducing the actual demand for hard currency in the open market .”

He continued: “In recent months, we have witnessed serious efforts by the Central Bank to reduce the amount of money in circulation in Iraqi dinars, which has directly reflected in the appreciation of the dinar, in addition to some savers and investors shifting from dollars to gold, amidst the state of anticipation and anxiety regarding developments in the regional situation .”

He noted that “non-oil-related financial flows contributed to an increase in the supply of dollars, thus facilitating the balancing of supply and demand without the need for excessive reliance on the currency selling window .”

Al-Saadi also attributed the dollar’s decline to “a decline in import volume due to the declining purchasing power of Iraqi consumers, which reduced the need for dollars to finance these transactions, which in turn affected demand in the market .”

Al-Saadi concluded his remarks by pointing out that what also contributed to this decline was “the relative control of some smuggling and illegal financing channels in neighboring countries, which has made the dollar in the Iraqi market less vulnerable to leakage and more stable within the local monetary system .”