Government Advisor: 3 Factors That Have Stripped The Parallel Exchange Market Of Its Price Influence And Diversified Our Financial Reserves

 Government Advisor: 3 Factors That Have Stripped The Parallel Exchange Market Of Its Price Influence And Diversified Our Financial Reserves

 
2025/07/07 Reads: 840 Times    {Economic: Al Furat News} The Prime Minister's Economic Advisor, Mazhar Mohammed Salih,confirmed that the   stability of the price structure and the  decline in annual inflation rates in Iraq  are the result of the success of three integrated economic policies that operated in a coordinated manner within the framework of the state's general economic policy.  Saleh said in a statement to {Al Furat News} that:

"Fiscal policy has contributed significantly to supporting prices through the general budget,
whose expenditures constitute more than 13% of the gross domestic product," noting that
 
"this support has been reflected in the expansion of social safety nets through     food baskets,     fuel price subsidies, and   support for farmers, in addition to the provision of   wide-ranging government services."  

He added,  "Monetary policy, in turn, has    achieved tangible success in maintaining the external value of the dinar   by controlling domestic liquidity levels    through the introduction of electronic payment systems and   increasing demand for foreign currency at local banks through their correspondents abroad.
 
This has contributed to  reducing financial transfer times and  implementing compliance rules related to money movement risks." 

Saleh pointed out that  "the third of these policies was price defense through the     establishment of a hybrid market network, which   provided a wide supply of  goods at stable prices and   directly impacted the local market by creating price competition that    reduced opportunities for speculation.
 
As a result of these three factors, the  effects of the parallel exchange market (the black market) were neutralized,   especially with regard to generating inflationary expectations,  whose effects have gradually faded." 

He stated that "there are commodity stocks available to the state and the private sector, some of which have a shelf life of three to five years, especially with regard to spare parts and durable goods, which enhances market stability in the medium term."
 
Regarding the increase in gold reserves, Saleh explained that
 
"this is a successful monetary policy tool for diversifying Iraq's foreign reserves portfolio," noting that 
"gold represents a safe haven against fluctuations in   global exchange rates and    interest rates." ‘

He added that "this diversification, which includes   various foreign currencies and  monetary gold,
 
is based on precise international standards  to protect the country's assets from value fluctuations between currencies."
 
Regarding the impact of OPEC+ decisions, Saleh emphasized that  
"Iraq is part of the international consensus within the organization regarding oil production levels, and
 
that the national oil policy enjoys great flexibility that enables it to maintain export levels within Iraq's quota, thus mitigating the impact of the decline in oil prices on public revenues." 

 He noted in this context that   "Triennial Budget Law No. 13 of 2023 includes flexible financial tools to address any emergency gaps through the possibility of resorting to bridge borrowing from the local financial market,
 
supported by monetary policy that provides sustainable liquidity     through open market instruments, in accordance with the provisions of Central Bank of Iraq Law No. 56 of 2004."
 
The advisor concluded his remarks by emphasizing that "the economic stability Iraq is witnessing today is the result of the     integration of fiscal, monetary, and pricing policies    into a unified framework
 
that promotes sustainable development and supports the implementation of the  government's program and  comprehensive economic reforms."   https://alforatnews.iq/news/مستشار-حكومي-3-عوامل-جردت-سوق-الصرف-الموازي-من-تأثيراته-السعرية-وتنوع-احتياطاتنا-المالية 

EXCERPTS FROM MARKZ: I believe things are much further advanced than the press is reporting

 EXCERPTS FROM MARKZ

Member: Are we there yet????

MZ: In Iraq: “The coming hours may witness the signing” This is about the Erbil/Baghdad oil agreements . There is a lot of back and forth right now. But articles are saying they have worked through the issues and signing is imminent. 

MZ: We saw this same kind of back and forth in Kuwait. 

Member: Never thought we all still be waiting and waiting and waiting all this time for the RV to go but then again, they don't care

MZ: Our regular article from Saleh: “ Advisor to the Prime Minister: Monetary Policy has succeeded in stabilizing prices and curbing inflation”  He says “We are in great shape.” 

Member: I bet Saleh had black hair when I bought my dinar

MZ: “Banning 18 Islamic banks from dealing in dollars-liquidation is looming”These are the same banks associated with financing terrorist groups. So is it Islamic banks being singled out – or support of terrorism being singled out? I think its part of a world wide cleanup effort.

MZ: I think this one is important. “A security source revealed Tuesday the determination of the International coalition withdrawal from Ain-A-Assad base from Anbar province”  Trump has said all along that we will leave when we are paid. Now they are leaving????  

MZ: I believe things are much further advanced than the press is reporting 

MZ: This one makes me feel good about where we are at: “ TIR system: Iraq is a highway from Turkey to the Gulf”  this is part of the development road project connecting the east to the west. 

FIREFLY: Saleh back on TV today...talked about how a fixed rate is better than a floating rate #iqd

 

FRANK26: "IMO EXPORTS EQUALS A FLOAT"

 KTFA

FRANK26: "IMO EXPORTS EQUALS A FLOAT"........F26

Al-Sudani: Iraq will stop importing gasoline this year and will instead focus on exports.

7/7/2025

Prime Minister Mohammed Shia al-Sudani announced on Monday that Iraq will stop importing gasoline this year, stressing that the country is on the verge of self-sufficiency in petroleum products, with a future plan for exports.

During his teleconference launch of the Diwaniyah refinery expansion project , Al-Sudani said, "Iraq has transformed from a country importing petroleum products to one that meets its domestic needs, with the exception of limited quantities of gasoline, which will be eliminated before the end of this year."

He pointed out that "the Diwaniyah refinery will contribute to processing liquefied natural gas with a capacity of 180 tons per day and improving gasoline production to a capacity of up to 10,000 barrels per day," adding that "the new project will be implemented with a total capacity of 90,000 barrels per day, at a cost of $800 million."

Al-Sudani explained that "the completion of refinery projects in the governorates of Maysan, Diwaniyah, and Najaf will pave the way for the export of petroleum products, rather than their import, which represents a strategic shift in the energy sector."

LINK

TIDBIT FROM FNU LNU

 Fnu Lnu 

 Article: "UAE-based venture capital fund EQIQ has announced a $3-million anchor investment in a new digital banking startup led by Iraqi-American finance veteran Hussain Qaragholi" 

 Quote:  "Qaragholi, founder of Phoenix Finance Partners, has held senior roles at Merrill Lynch, Citigroup, and Deutsche Bank. He played a major role in Iraq's $22-billion debt restructuring and sovereign bond offerings, and currently serves on RAND Corporation's Global and Emerging Risks Board."  

 Sometimes you only get potatoes but other times you get meat with them. This is as meaty as it gets. 

However, stay grounded, Operative Words are NEW, START-UP, & FOUNDATION.  When they say things like; scalable, customer-focused, digital services, this is a direct relationship with the new digital Dinar...This only applies to foreign imports and debts and not the domestic economy which will continue to use physical paper currency and payment cards like Qi, Mastercard, and Visa. 

IRAQ & DINAR STATUS EXPLAINED! @DINARREVALUATION #iraqidinar #iqd #iraq #iraqidinarnewstoday2025

 

FRANK26: "22 MILLION CARDS & MORE"

 KTFA

FRANK26: "22 MILLION CARDS & MORE".....F26

Localization of private sector salaries, rapid payment, and collection... Al-Sudani issues banking decisions.

7/7/2025

 

 - Baghdad

 

An Iraqi government source revealed on Monday that the number of bank accounts has reached approximately 20 million, compared to 8 million in 2022, a growth of more than 150%.

The source confirmed, in a press statement received by Shafaq News Agency, that "the digital transformation rate of Iraqi ministries and institutions has increased to approximately 32%, after it was less than 18% in 2022, with a growth rate of 78%."

He pointed out that "the number of bank cards increased to 21-22 million cards (of all types, including credit, debit, and prepaid), up from 16 million cards in 2022, representing a growth rate of 38%." He also noted that the number of point-of-sale devices reached approximately 62,000 devices, up from less than 10,000 devices in 2022, representing a growth rate of up to 520%.

According to a government source, data indicates that the financial inclusion rate in Iraq has reached approximately 40%, up from less than 10% in 2019.

The source noted that the Prime Minister had recently issued a number of future decisions related to a number of important projects in the field of electronic payment, and stressed the need to complete them as soon as possible. These projects include:

- Activation of the local card, which is expected to be completed by the end of 2025.

- Activate the fast payment project.

 - Activating the unified electronic collection application.

- Localizing private sector salaries in line with the government sector.

 - Establishing a unified center for complaints related to electronic payment transactions, headquartered at the National Data Center.

The source expected these projects to be completed in less than a year, stressing that their implementation would contribute to Iraq's advancement to a new level among advanced countries in this field.

LINK