Iraq Economic News And Points To Ponder Tuesday Afternoon 5-13-25

Iraq Economic News And Points To Ponder Tuesday Afternoon 5-13-25

Al-Nusairi: Our Dinar Continues To Recover Until It Reaches The Official Price
 
Money and Business  Economy News – Baghdad  Economic and banking advisor Samir Al-Nusairi confirmed on Sunday that the Iraqi dinar has been gradually recovering for several weeks due to internal and external reasons that have directly impacted controlling fluctuations in the US dollar exchange rate, regardless of the many reasons that led to its decline and its reaching 10 cents, after the difference between the official and parallel rates had been 20 cents for a long period.

Al-Nusairi pointed out that the main reason for the recovery is the reform policies of the Central Bank and the government in reforming the
 
     processes of regulating foreign trade financing,
     compliance with international standards, and
     regularity in the global financial system, as well as the
     new mechanisms for foreign transfers to secure imports and
     cover them in US dollars and other currencies by
     dealing directly with correspondent banks through more than 20 Iraqi banks that have opened accounts and banking relationships with these banks.
 
The Central Bank also succeeded in
 
     securing and providing 95% of the demand for the dollar at the official price and
     covering the needs of citizens for cash dollars and
     distributing it with transparency, fairness, and strict monitoring,
 
which contributed to reducing the practices of speculators in the informal market.

He added to the important role of the government in implementing its strategy in financial and banking reform, especially the implementation of paragraphs (1-7) included in the government program,
 
in addition to removing opportunities for speculators to manipulate the exchange rate according to administrative, supervisory, and economic policies.
 
Al-Nusairi bet on the Iraqi dinar's continued recovery through 2025, following the completion of the banking reform project's objectives and the Central Bank of Iraq's third strategy.
 
He also noted that the government will continue implementing its reform and investment programs,
 
     attracting more foreign and Arab investments to the country, which have exceeded $88 billion,
     completing the development path,
     investing in gas,
     developing oil projects, and
     supporting the private industrial sector.
 
Al-Nusairi concluded his remarks by praising the programmes and measures adopted by the Central Bank,  which contributed to  reducing inflation to 2.8% and  maintaining the general price level, which is one of the objectives of monetary policy.  https://economy-news.net/content.php?id=55333

Iraq To Recover Half A Billion Dollars In Smuggled Funds By 2024
 
 May 10, 13:35  Information/Baghdad... The Federal Integrity Commission revealed on Saturday that
Iraq had successfully recovered more than half a billion dollars in smuggled funds during 2024.
 
"The government has placed anti-corruption efforts at the top of its agenda," said the commission's chairman, Mohammed Ali al-Lami, in a statement followed by Al-Maalouma News Agency.  He added that "the efforts of the government and the judiciary have contributed to the recovery of smuggled funds."

  Al-Lami confirmed that "Iraq succeeded in recovering more than half a billion dollars in smuggled funds during 2024," indicating that "we provided privileges and protection to those who cooperated in uncovering corruption cases."  End/25      
https://almaalomah.me/news/98296/economy/العراق-يستعيد-نصف-مليار-دولار-من-الأموال-المهربة-خلال-2024  

A Dangerous Financial Maneuver... Will Employee Salaries Survive The Liquidity Crunch?
 
May 13, 2025  Baghdad/Iraq Observer  Iraq is facing a liquidity crisis in the local dinar, coupled with a continued decline in the dollar exchange rate in local markets.
 
This is increasing citizens' and employees' concerns about the government's ability to meet its financial obligations, most notably securing the salaries of employees and retirees on time.
 
The government has resorted to withdrawing cash from tax deposits,
previously linked to the so-called "theft of the century,"
 in an attempt to cover the liquidity deficit
and ensure continued funding for essential obligations, most notably salaries.
 
Experts believe the crisis is 
not related to the availability of hard currency, as
the government has a substantial dollar reserve thanks to oil exports.
 
Rather, it stems from a scarcity of Iraqi dinar liquidity, which is forcing it to implement swift financial maneuvers, such as using tax deposits, to secure employee salaries and avoid any delays in disbursing them.  

Dinar withdrawal is “weak”
 
In turn, economic expert Abdul Rahman Al-Mashhadani confirmed that "Iraq exports more than 3.1 million barrels of oil per day, and oil revenues last month amounted to approximately $7.7 billion, 
an amount sufficient to cover salaries and a portion of operating and investment expenses."
 
He explained to the Iraq Observer that "the government needs approximately 7 trillion and 850 billion Iraqi dinars per month to secure salaries for employees and retirees and social security benefits,
 
adding that oil revenues, when transferred, are supposed to cover this amount and exceed it,
 
but the problem lies in the weak withdrawal of the Iraqi dinar from the market."  

He stressed that "approximately 90% of the issued currency is not returning to the banking system as quickly as required,
 
making it difficult for the Central Bank to supply the government with cash liquidity in a timely manner,
 
despite the latter having parliamentary authorization to borrow from the Central Bank under the 2024 budget law, a process also included in the 2023 budget."  He added,
 
"The government has not yet resorted to direct borrowing from the Central Bank this year,
 
with the exception of the latter's rediscounting of treasury bonds sold to government and private banks worth approximately 3 trillion dinars." 

Al-Mashhadani noted that "the liquidity provision mechanism is still suffering from bottlenecks, 
which has prompted the government to resort to using tax deposits to compensate for this shortfall at the present time."
 
On April 15, the Council of Ministers decided to authorize the Minister of Finance to withdraw tax deposits less than five years old to secure funding for state employee salaries for April and subsequent months.
 
This move has faced legal criticism, as
 
experts have asserted that tax deposits are not considered public revenue until five years have passed without claims,
 
making their early withdrawal illegal and reflecting the fragility of the state's financial situation.
Government employees,
 
along with social security beneficiaries and retirees, are hoping to receive their salaries before Eid al-Adha,  amidst uncertainty over the government's ability to provide the necessary liquidity in a timely manner.    https://observeriraq.net/مناورة-مالية-خطيرة-هل-تنجو-رواتب-الموظ/

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/