Wednesday, January 8, 2025
Iranian President: economic cooperation with Iraq discussed, completion of Shalamcheh railway line stressed, 9 JAN
Iranian President Massoud Bezhkishian confirmed that discussions with Iraqi officials centered on expanding economic cooperation, with a particular emphasis on the swift completion of Shalamcheh railway line project.
In a joint press conference with Iraqi Prime Minister Mohammad Shia’ al-Sudani, Bezhkishian stated, “Iraq is a key strategic partner for Iran,” adding that “the relations between the two countries are at an all-time high.”
Bezhkishian highlighted Iraq’s progress, noting, “The country is undergoing a period of stability and development.”
He further pointed out that “the talks with the Prime Minister were productive, particularly in addressing regional developments.
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“We share a common perspective on the situation in Syria,” he continued, underscoring that “the potential resurgence of terrorist cells remains a shared security concern for both Iraq and Iran.”
On the matter of bilateral cooperation, Bezhkishian reiterated the importance of advancing economic and trade relations, emphasizing the “urgency of accelerating the completion of the Shalamcheh railway line.”
He concluded by expressing Iran’s “deep appreciation for Iraq’s hospitality in welcoming Iranian visitors in recent years.”
DINAR REVALUATION UPDATE: January is a pivotal month for Iraq, particularly concerning the anticipated rate change , 9 JAN
DINAR REVALUATION UPDATE: January is a pivotal month for Iraq, particularly concerning the anticipated rate change
Highlights
Summary
Here we discusses the current state of affairs in Iraq, particularly focusing on economic developments and governmental actions from October to January.
The period has been relatively quiet, with few significant events aside from the appointment of a new parliament speaker, the Kurdistan elections, and the implementation of a new electronic transfer system by the Central Bank.
Key discussions revolve around the currency auctions and remittances, which are critical for financing imports, as Iraq lacks a tradable currency.
The upcoming launch of housing loans through an electronic platform on February 2, the first phase of a railway development project, and the ongoing parliamentary discussions regarding the budget and accountability for governmental ministers.
The analysis suggests that January is a pivotal month for Iraq, particularly concerning the anticipated rate change and approval of the budget.
- 💰 Currency Auctions Continue: Despite claims to the contrary, Iraq’s Central Bank continues to conduct daily currency auctions to fund imports.
- 🏠 Home Loans Launch: Iraq will begin accepting applications for housing loans starting February 2, potentially allowing foreign ownership.
- 🚆 Railway Development: The first phase of a railway project linking Baghdad and Baji is set to begin, emphasizing the need for a convertible currency.
- 🏛️ Parliamentary Accountability: A parliamentary movement seeks to hold ministers accountable for failures and corruption amid ongoing political tensions.
- 🔍 Budget Delays: The Iraqi budget for 2023 is still pending approval, which is contingent on changes to the currency rate.
- ⚖️ Personal Status Law: The Coordination Framework is advocating for the approval of a controversial law governing marriage and family matters.
- 📈 Critical January: January is highlighted as a crucial month for potential economic changes and developments in Iraq’s financial landscape.
Key Insights
📊 Importance of Currency Auctions: The Central Bank’s currency auctions are vital for Iraq’s economy, as they facilitate the import of goods. Despite misinformation, these auctions are ongoing, indicating the government’s need to fund its imports while operating within the constraints of a non-tradable currency. This system is crucial for maintaining economic stability and ensuring the flow of essential goods into Iraq.
🏡 Impact of Home Loans on Foreign Investment: The introduction of housing loans through an international platform is a significant step towards encouraging foreign investment in Iraq’s real estate market. By allowing foreigners to apply for home loans, Iraq is attempting to attract diaspora investment, particularly from the Iraqi community abroad. This move could have long-term implications for the housing market and economic growth.
🚧 Infrastructure Development as Economic Catalyst: The commencement of the railway project is a promising sign of infrastructure development in Iraq. This project is expected to create jobs and enhance connectivity within the country, which can stimulate economic activity. However, the success of such projects relies heavily on the availability of a convertible currency for payments to foreign contractors.
🏛️ Political Accountability and Governance: The push for accountability among ministers reflects an evolving political landscape in Iraq, where citizens and political factions are increasingly demanding transparency and responsibility from their leaders. This movement could lead to significant political changes and impact future governance.
📅 Budgetary Implications of Currency Rate Change: The ongoing delays in approving the 2023 budget underscore the interconnectedness between the currency rate and governmental financial planning. The anticipation of a rate change creates uncertainty in budget discussions, suggesting that the government is holding off on finalizing financial commitments until this critical economic adjustment occurs.
📜 Legislative Developments on Personal Status Law: The Coordination Framework’s efforts to advance the personal status law highlight the importance of legal frameworks in addressing social issues in Iraq. The law’s approval could have profound effects on family and social structures, particularly within the Muslim community, which could lead to both support and opposition from various factions.
🔍 January as a Pivotal Month: The emphasis on January as a critical month for Iraq’s economic future indicates that stakeholders should closely monitor developments during this time. Any changes in the currency rate or significant legislative approvals could have far-reaching implications for both domestic and international investors, influencing confidence in Iraq’s economic recovery and stability.
The World Bank announces the date for submitting the feasibility study, the path of the development road project and its details, 9 JAN
The World Bank announced its readiness to submit the feasibility study, the path of the development road project, and its details by next February.
A statement by the House of Representatives, a copy of which was received by {Euphrates News}, stated that “the head of the Finance Committee, Atwan Al-Atwani, received today, Wednesday, a delegation from the World Bank headed by {Jean-Christophe Carré}, the regional director for the Middle East, to discuss supporting the railway rehabilitation project within the development road project.
The meeting reviewed the “economic and regional vision of the Development Road Project and its strategic importance in stimulating investment activity, maximizing non-oil revenues and providing job opportunities. It also discussed the possibility of the private sector contributing to its implementation.”
The meeting also discussed the multi-stage support provided by the World Bank for the Development Road Project, including modernizing and rehabilitating the current railway network and linking it from southern Iraq through the north and reaching Turkey.
Al-Atwani reiterated his emphasis that the infrastructure of the development road should be in the hands of the government so that this important project that links Iraq to the countries of the world will not be subject to influences.
The head of the committee pointed out that “our vision is for the development road project not to be a mere transit point, but rather we seek to make it a gateway to activate various economic and commercial activities and develop infrastructure, calling on the World Bank delegation to present new visions and ideas regarding achieving optimal investment for this huge project that is hoped to make Iraq an economic corridor linking Asia to Europe.”
He stressed the need to expedite the submission of the feasibility study related to the railway development plan within the development road project, and to contribute to mobilizing international expertise and attracting the private sector to invest in it in a way that achieves the country’s interest.
Al-Atwani concluded: We look forward to holding joint workshops and extensive meetings with the World Bank, to provide a full briefing on the project details and discuss its details in a way that secures broad parliamentary support for this loan, indicating that “the Finance Committee supports any loans that are economically feasible and bring great benefit to the Iraqi economy, especially since investment in the railway sector is a successful trend and achieves a large financial return.”
For his part, the World Bank delegation appreciated the valuable comments made by Al-Atwani in the context of the rapid transition from the planning and vision stage to the implementation stage, stressing the World Bank team’s readiness to submit the feasibility study, project path and details by next February.
AJ: Iraq parliament : Their holiday ends on January 9th to resume their session of parliament after January 9th, 9 JAN
AJ ON X
Iraq parliament : Their holiday ends on January 9th to resume their session of parliament after January 9th.
Parliament conforms to World Bank on the importance of government infrastructure in development.
Parliamentary Finance Committee stresses government control of the Development Road Project's infrastructure. In talks with the World Bank, led by Jean-Christophe Carré, they discussed railway upgrades, investment, and job prospects. The World Bank will lend for this initiative, aiming to make Iraq an economic link between Asia and Europe, with a feasibility study due in February
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ina.iq/eng/37569-parl
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