On Monday, the President of the Kurdistan Region, Nechirvan Barzani, agreed with the head of the Al-Asas Alliance to amend the budget law to guarantee the rights and entitlements of the region and the salaries of its employees.
The media office of the presidency of the region said in a statement, which was reviewed by “Al-Eqtisad News”, that “the President of the Kurdistan Region, Nechirvan Barzani, met this evening with Mohsen Mandalawi, head of the Foundation Alliance.”
He pointed out that “the meeting discussed the political situation in Iraq and the Kurdistan Region’s relations with the federal government, as both sides stressed the importance of cooperation between the political parties to enhance stability and achieve development in Iraq.”
The statement explained that “the two sides agreed to amend the 2025 budget law to guarantee all the rights and entitlements of the Kurdistan Region and the salaries of employees without problems or obstacles.”
In another aspect of the meeting, the situation in the region and its effects on Iraq were discussed, and the two sides stressed, according to the statement, the “necessity of joint action to confront challenges and keep Iraq away from conflicts.”
In my view this reeks of a need to change the exchange rate for the Iraqi dinar or they would have already done it.
If they're going to an international state, they should have already done it by now if it was going to stay the same exchange rate...
Everybody that's been involved with the dinar should [ask], 'Well they've been at 1310 for a year or more, why haven't you done it yet?' That's because they're looking for an exchange rate change because that's what's going to happen.
US National Security Adviser Jake Sullivan confirmed in an interview with Bloomberg on Monday that the possibility of a prisoner exchange agreement and a ceasefire in the Gaza Strip is possible this week. Sullivan said President Joe Biden’s administration believes an agreement on a ceasefire in the Gaza Strip could be reached this week at the earliest, adding that there are no guarantees that both sides will agree to that agreement. The US national security adviser noted in an interview with CNN broadcaster Jake Tupper that the US administration is “determined to use every day it has to get it done”. “Well, I can answer that question in two ways,” Sullivan said in response to a question about how close any party was to reaching an agreement on prisoners. We are very very close, yet being so close means that we are far away, because we will not be close unless we cross the finish line.”
DINAR REVALUATION REPORT: THE Urgent situation between the Kurdistan government and the central government in Baghdad, Iraq
Highlights
Summary
THE Urgent situation between the Kurdistan government and the central government in Baghdad, Iraq.
An extraordinary meeting has been called due to the ongoing financial disputes, specifically related to unpaid dues to employees in the Kurdistan region.
The lack of financial support from Baghdad has led to dissatisfaction among the Kurdish populace, with the potential for Kurdistan to sever ties with the Iraqi government being highlighted.
This situation underscores the broader economic challenges facing Iraq, where a significant portion of the population depends on government salaries.
🚨 Emergency Meeting Called: The Kurdistan government is convening an extraordinary meeting with the Baghdad parliament due to financial disputes.
💰 Unpaid Salaries: Employees in the Kurdistan region have not received their financial dues, leading to frustration and anger.
⚠️ Potential for Separation: Discussions suggest that the Kurdistan region could consider fully disconnecting from the Iraqi government.
📉 Economic Dependence: A significant 75% of Iraq’s population relies on government employment, making financial stability crucial.
🔍 Urgent Action Required: The meeting indicates a pressing need for resolution to prevent further escalation of the crisis.
🤝 Negotiation Tensions: The relationship between the Kurdistan government and Baghdad is strained, raising concerns about future cooperation.
📅 First of the Year Crisis: The timing of the financial issues at the start of the year amplifies the urgency for resolution.
Key Insights
📊 Financial Instability as a Catalyst for Conflict: The financial disputes between the Kurdistan region and Baghdad highlight the fragility of Iraq’s economic structure. With a large portion of the population dependent on government salaries, the failure to meet these financial obligations can lead to widespread discontent. This situation not only affects the employees directly but also has broader implications for social stability and governance in the region.
🔗 Potential for Political Realignment: The suggestion that Kurdistan could sever ties with Baghdad indicates a significant shift in political dynamics. Historically, the relationship between the Kurdistan Regional Government (KRG) and the central government has been complex, marked by both cooperation and tension. If Kurdistan were to pursue independence or greater autonomy, it could lead to a reconfiguration of political alliances within Iraq and the wider region.
⚖️ Balance of Power: The current financial crisis exposes the power imbalance between the Kurdistan region and the federal government. With Baghdad withholding funds, the KRG’s ability to govern effectively is compromised. This creates a situation where the KRG may feel compelled to take drastic measures to secure its financial independence, which could further challenge the federal government’s authority.
🏛️ Impact on Governance and Public Services: Unpaid salaries have immediate negative impacts on public services and governance in the Kurdistan region. Without adequate funding, essential services such as education, healthcare, and infrastructure maintenance could deteriorate, leading to a decline in the quality of life for residents. This deterioration could exacerbate public dissatisfaction and unrest.
🔄 Historical Context of Financial Disputes: The current situation is not unprecedented. Iraq has a history of financial disputes between the central government and the KRG, often stemming from disagreements over budget allocations and oil revenues. Understanding this historical context is crucial for analyzing the current crisis and anticipating potential resolutions or escalations.
💼 Economic Dependency Risks: The reliance of a vast majority of the Iraqi population on government jobs presents a systemic risk. If the financial disputes continue, not only could it lead to economic instability in Kurdistan, but it could also have ripple effects throughout Iraq, potentially leading to increased unemployment and economic hardship across the country.
🕊️ Need for Dialogue and Resolution: The extraordinary meeting reflects a critical moment for both the Kurdistan government and the Iraqi parliament. It represents an opportunity for dialogue and negotiation to resolve the financial impasse. The outcome of this meeting could either pave the way for constructive solutions or further entrench divisions between the two governments, impacting the future of Iraq’s unity and stability.
In conclusion, the situation between the Kurdistan government and Baghdad is a crucial moment in Iraqi politics characterized by financial disputes and potential political ramifications.
The outcomes of these discussions may have lasting effects on governance, economic stability, and the future relationship between the Kurdistan region and the federal government, making it essential for both parties to engage in constructive dialogue to find a resolution.
Government Advisor: ASYCUDA System is a Vital Tool for Developing Customs Work and Boosting International Trade
The Prime Minister's Advisor for Financial Affairs, Mazhar Muhammad Salih, reviewed today, Sunday, the importance of adopting the ASYCUDA system in customs administration, noting that it reduces delays at ports and boosts international trade.
Saleh told the Iraqi News Agency (INA): "ASYCUDA is a customs data management system developed by the United Nations Conference on Trade and Development (UNCTAD) since the eighties of the last century, as this system aims to simplify and accelerate customs and border crossing operations using modern digital technology, according to the generations of the system applied, including the second advanced generation that relies on cloud digital technology."
He added that "in line with the government program to enhance the efficiency of collecting non-oil revenues and make them no less than 20% of total revenues, the Ministry of Finance and government support agencies have taken the step of joint cooperation with the United Nations to develop customs control and collection systems and control the movement of imports and exports in accordance with the best digital measures in applying customs tariffs on incoming imports and conducting matches with countries of origin."
Saleh continued that "the General Authority of Customs and the Border Ports Authority completed the procedures for working with the ASYCUDA system last year and are progressing in the new year 2025, including providing high-quality digital infrastructure," noting that "the importance of implementing the ASYCUDA system is that it provides comprehensive automation of customs operations, such as data recording, fee assessment, customs clearance, and records management."
The Prime Minister's Advisor for Financial Affairs explained that "this system reduces delays at border crossings and increases efficiency, in addition to enhancing transparency and disclosure of traded materials, and most importantly, it reduces corruption by reducing direct human interaction and adopting a reliable electronic system for recording and processing data," noting that "the increase in customs revenues that occurred last year was due to ASYCUDA's role in improving the process of assessing customs duties and taxes, which ensures fair and accurate collection of revenues."
Saleh explained that "the system enhances international trade by reducing administrative obstacles and allowing for the acceleration of the clearance process, which encourages the growth of trade between countries, and helps support analysis and statistics, and even provides a comprehensive database on the movement of goods across borders, which supports decision-makers in setting economic and trade policies. As for improving border security, the ASYCUDA system allows for better tracking and inspection of shipments, which helps combat smuggling and illegal activities."
He stated that "the ASYCUDA system is a vital tool for developing customs work and achieving a balance between facilitating trade and protecting borders, which makes it a fundamental pillar of any modern customs system, as Iraq is among the group of Arab countries that apply this system in an integrated manner in ports, airports and land borders, including Jordan, the Emirates, Saudi Arabia and Egypt."link
