There are many interesting topics on the fight to get the budget tables over to parliament. The finance committee told the news media this could happen in July.Oh boy… haven’t we heard this before?…..
You might want to take peak at the following articles on this topic titled “MP SUES GOVERNMENT OVER DELAY IN SENDING BUDGET TABLES TO PARLIAMENT” and “THREE REASONS IDENTIFIED…THE PARLIAMENTARY FINANCE COMMITTEE RULES OUT SENDING BUDGET TABLES TO PARLIAMENT”.
So, in attempting to understand this budget dilemma, they have now told us officially what the reasons are for the delay. Hussein Mounes, a member of the Iraqi Parliament’s Finance Committee, told us that there are several reasons for the government’s exclusion from sending the federal budget schedules to parliament
:
1.most notably the financial deficit,
2.unstable financial revenues,
3.the lack of a real economic vision, and
4.the approaching date of the legislative elections,
It is easy understand the first two reasons however the last two are all political. Why is the budget so important? Really now its not so important for our purposes of the RV. If anything having the budget come out on time will add to the needed stability of Iraq in the eyes of the IMF and the World Bank.
The Federal Integrity Commission announced, on Tuesday (June 24, 2025), Iraq’s accession to the “Beijing Clean Silk Road Initiative,” indicating that this comes in implementation of Article (3/6) of the Memorandum of Understanding concluded between the Commission and the National Oversight Commission of the People’s Republic of China.
In a statement received by Mawazine News, the Commission stated that “the cooperation and coordination between the Commission and the Embassy of the People’s Republic of China in Baghdad culminated in joining the initiative after completing the procedures,” explaining that this will contribute to strengthening international relations and highlighting the Commission’s efforts,
endeavors, activities, and achievements in the field of combating corruption. It noted the confirmation of the National Oversight Commission of the People’s Republic of China of its readiness to enhance cooperation and joint work with the Commission in the field of combating corruption and law enforcement, to build a Clean Silk Road.
She noted the Commission’s welcome and announcement that Iraq has become the eighteenth country to join the initiative, which aims to enhance transparency, financial and intellectual cooperation, develop governance and laws, and promote oversight and legal awareness. It also aims to establish a closer network for cooperation in the field of justice and law enforcement, exchange expertise and information, develop human resources, pursue fugitives, and reject safe havens for fugitives and illicit assets.
The Commission added that the initiative calls for the signing of bilateral treaties on extradition and mutual legal assistance, based on international agreements, and the exchange of information and expertise between relevant anti-corruption agencies. It also calls for launching highly effective anti-corruption cooperation, promoting self-discipline, legal awareness, and a sense of responsibility, and enacting laws to combat corruption and combat bribery, with the aim of creating a sound relationship between governments and companies.
😊 Let us keep in mind the ongoing initiatives of Iraq. In the article titled “INTEGRITY: IRAQ JOINS BEIJING’S CLEAN SILK ROAD INITIATIVE”
We learn that the Federal Integrity Commission announced, on Tuesday (June 24, 2025), Iraq’s accession to the “Beijing Clean Silk Road Initiative,”. This is all good news as China will bring capital into Iraq to kick start these industrial cities they keep talking about. Yes, it all takes money.
Then we also learn in article titled “AL-SUDANI: “MADE IN IRAQ” IS A NATIONAL PROJECT WE ARE COUNTING ON.” That Prime Minister Mohammed Shia al-Sudani inaugurated, on last Wednesday, the Construction Cooperation Center (Construction Basket), which was implemented by the General Company for Construction Materials Trade at the Ministry of Trade, in partnership with the private sector.
They will need materials to build these industrial cities as well as housing and other establishments to support them. We have heard so much talk already about these cities and now we hear yet more emphasis from the government on them. Yes, they are counting on this initiative to move then ahead in the private sector and get off the “rentier” economy of 90% solely based oil revenues.
As investors we must stay focused. We can look at the Iranian / Israel conflict as holding things up, but for Iraq they keep trucking on and on.
Al-Sudani stays focused on the objectives. Why? He knows that the SECRET to success is these industrial cities. He must get his country off the “rentier” economy.
☹So, they are plowing ahead in spite of the issues with Iran. It is the U.S. that manipulates Iraq as they need certain behavior from Iraq during this time of conflict.
Did you read the article titled “SWIFT: WASHINGTON’S WEAPON FOR BLACKMAILING COUNTRIES AND STRANGLING IRAQ”
It says economic expert, Faleh Al-Zubaidi, confirmed last Saturday, that the United States of America is using the global financial transfer system “SWIFT” as a tool for economic pressure on countries that do not align with its interests.
WOW! Did you read this statement?
He pointed out that Iraq has become one of the countries subjected to such pressures aimed at pushing Washington’s agendas in the region.
Al-Zubaidi told Al-Maalouma, “SWIFT is an international financial network used to transfer funds between banks around the world.
It is effectively subject to direct American control, which makes it a political tool in Washington’s hands to punish governments that reject its policies.”
So, do you still dispute that it is the U.S. holding back the RV. Just saying…..
So, tell me again that it is not the U.S. holding back Iraq from FOREX… go ahead tell me….!!!!! Oh…the CBI has the power to RV anytime they want, so they say.
Really? Did you read today’s articles or just listening to you fancy-pants intel guru? ☹
ECONOMIST: TECHNOLOGY HAS TRIUMPHED… 12 DAYS THAT RESHAPED THE MIDDLE EAST
Economic expert Munar Al-Abidi said on Tuesday that the sole victor in the twelve-day battle was technology. It tipped the scales of the conflict, granted superiority, and whoever possessed it possessed the initiative and the ability to persevere and endure.
Al-Abidi stated in a blog post that in just twelve days, the face of the Middle East has changed in ways not seen in half a century, and may never be the same again.
It was not just a few days of escalation or tension, but a watershed moment that redrawn the map of influence and the balance of power in the region, and forced everyone—countries and peoples alike—to reconsider their positions, their alliances, and the way in which nations should be rebuilt.
He added, “These days have proven that no one emerges victorious from battles that rely less on reason than on emotions.
The only victor in the twelve-day battle was technology; it tipped the balance of the conflict, it granted superiority, and whoever possessed it possessed the initiative and the ability to persevere and endure.”
The message is clear: It is no longer enough to raise slogans or feed our people with wishes. What we need today, Al-Obaidi said, more than ever is to rebuild our nations on the foundations of science, knowledge, and culture, to leave the arenas of futile conflict and the circles of internal division, and to believe in hard work as the only path to salvation and progress.
He continued, “These few days have held for us a true mirror in which we see our image clearly: Who are we? Where do we stand? What is our position in the new Middle East, which is now being reshaped by ideas and visions completely different from those that have dominated the region over the past five decades? It is a call to awaken, to understand the transformations around us, and to begin, with seriousness and awareness, to establish strong homelands that will not be broken by the winds of change.”
IRAQ's PARALLEL MARKET. I'm going to make this post into 2 parts... Here is Part 1 I'll post Part 2 tomorrow.
The frist thing to know is the central bank of Iraq sets the exchange rate for the Iraqi Dinar,
On February 7, 2023, Iraqi Central Bank adjusted the exchange rate of the dollar against the dinar, as follows:
1300 dinars per dollar, the purchase price from Ministry of Finance.
1,310 dinars per dollar is the selling price for banks.
1,320 dinars per dollar is the selling price by banks and non-banking financial institutions to the final beneficiar
How this works
The Ministry of Finance gets a preferential rate 1300 IQD/USD to facilitate government transactions.
Banks buy dollars at 1310 IQD/USD and sell at 1320 IQD/USD, allowing a small profit margin to cover operational costs.Sell at 1320 IQD/USD to the public.
So the offical rate to the public is 1320 IQD/USD
1. The CBI, led by Governor al-Allaq and its Board of Directors, analyzes the economy and proposes a new exchange rate
2. Then Iraqi Council of Ministers vote on the CBIs decison of a new exchage rate. This is the government’s executive body, led by PM al-Sudani and composed of his cabinet ministers. It sets national policy, including fiscal and economic policies, and has authority over major decisions impacting the economy, such as currency revaluation.
3. After it is approved by the Iraqi Council of Ministers The CBI’s management, led by its governor, implements the new rates and ensures they are enforced across the financial system.
4. The CBI announces the new rate.
April 15th 2024 the WhiteHouse put out this joint statement.
This was when PM Al-Sudani visted the Whitehouse in 2024
The United States and Iraq commit to strengthen their cooperation to achieve greater transparency and collaboration against money-laundering, financing terrorism, fraud, corruption, and sanctionable activity that could undermine the integrity of both countries’ financial systems. The two sides also committed to support the Central Bank of Iraq to fully wind down the wire auction mechanism by the end of 2024 and transition to direct correspondent relationships between Iraqi and international banks, a transformation that will connect Iraqi people and businesses with the international economy.
The wire auction ended on December 29, 2024. Iraq banks transition to direct correspondent relationships between Iraqi and international banks for transfers abroad remittance, credits. However, the parallel market continued.
Ending the parallel market first is considered essential to unify exchange rates, stabilize the economy, and restore government control over monetary policy. This step is to prevent distortions in trade, money smuggling investment, and public spending, ensuring economic reforms.
From a past article... banking consultant Abdul Rahman Al-Shaikhli Explains
Regarding the implementation of the project to remove zeros from the Iraqi currency, banking consultant Abdul Rahman Al-Shaikhli "the first factor that stood in the way of the project was the discrepancy between the official exchange rate (now 1332 dinars per dollar) and the parallel market exchange rate (now rising above 1500 dinars), which constituted an obstacle to the implementation of the project to remove zeros from the Iraqi currency"
Below is "Quotes" from IMF Report Introducing a new currency is a complex process, one that Turkmenistan completed successfully
For example, Turkmenistan redenominated its currency to introduce lower denomination notes.
The first step in the Turkmen currency reform was to unify the exchange rate. In the past, because of a shortage of foreign exchange, there had been a dual exchange rate system made up of an official rate pegged at 5,200 manat per U.S. dollar and an informal parallel market rate of about 23,000 manat per U.S. dollar.
A major gap between the official exchange rate and the informal or market rate meant that Turkmenistan's price system had become complex and inefficient. This, in turn, created complexities in accounting and statistical reporting. So the government decided to introduce a new currency before launching market-oriented reforms. Currency reform was regarded as the foundation for further strengthening the macroeconomic framework, particularly monetary transmission: the more the population relies on the local currency rather than U.S. dollars, the more control the government and Central bank has over macroeconomic policy.
I know this is a long post... so, I'll post the next part, in Part 2 tomorrow.
Here is a link to the the full IMF Report. I've posted this before. If you want to know how a country redenominated its currency. Check it out https://imf.org/external/pubs/ft/fandd/2013/12/lonnberg.htm
