Iraq Economic News and Points to Ponder Wednesday Afternoon 3-26-25
Al-Nusairi: 2025 Indicators: A Strong Economy, A Recovering Dinar, And Developing Banks
Banks Economy News – Baghdad Economic and banking advisor Samir Al-Nusairi confirmed that his predictions, made in previous articles and statements, that our economic indicators in 2025 herald a strong and robust economy based on the availability of foreign currency reserves exceeding $108 billion and 163 tons of gold, sufficient to cover imports for 18 months.
Al-Nusairi said in an interview with Al-Eqtisad News that the local currency issued amounted to approximately 100 trillion dinars, and our dinar is recovering and gradually returning towards an exchange rate against the US dollar towards the equilibrium price targeted by the Central Bank.
Our banks are developing and proceeding at a steady pace in accordance with the Central Bank’s strategy for reform, development, digital transformation and compliance with international standards.
The number of Iraqi banks that have banking relations and accounts in solid international correspondent banks and deal with them directly in foreign transfers has reached approximately 20 banks and deal in multiple foreign currencies after leaving the electronic platform at the end of 2024.
He explained that the Central Bank is making great efforts to qualify, develop and assist other banks to join the twenty banks mentioned above, pointing out that it is closely monitoring the reality of monetary policy applications and the Central Bank’s procedures, closely monitoring international economic variables and their impact on the Iraqi economy and complying with international standards that allow Iraq to be regular in the global banking system and controlling the movement and safety of foreign currency trading.
The banks’ commitment to implementing the new foreign transfer instructions and addressing obstacles as soon as possible has refuted the extremist and pessimistic views that say the exchange rate crisis will continue and our situation will be like that of Lebanon, Iran, Syria and Turkey when the dollar devoured the local currencies of these countries.
He explained that through our precise knowledge of the Central Bank's monetary policy applications, its coverage of the entire demand for the US dollar in the trading market and through its various official outlets, and its control over the distribution of cash dollars according to a new method that the US Treasury praised and considered a globally advanced method for distributing the US dollar, and this is what I confirmed in my previous articles, that the dinar will recover and the crisis is temporary despite all the external and internal reasons.
At the end of his speech on the Central Bank, Al-Nusairi hoped that the next phase would be an evaluation and analysis phase of the achievements made in 2023 and 2024, and a re-evaluation of operating banks and licensed and unlicensed exchange offices, reclassifying them and developing their work in all fields in 2025.
He also hoped that stability would be maintained in the financial and monetary system and that important steps would be taken to stimulate and enable the banking sector to contribute to investment and development, as stated in paragraph 7 of axis twelve in the government program for reforming the financial and banking sector, because banking reform is the beginning of comprehensive economic reform. https://economy-news.net/content.php?id=53806
The Ministry Of Planning Announces The Completion Of The 2025 Budget Schedules And Their Submission To The Council Of Ministers
Money and Business Economy News – Baghdad Minister of Planning Mohammed Tamim announced on Wednesday the completion of the 2025 budget tables and their submission to the Council of Ministers.
The office of the head of the parliamentary finance committee, Atwan Al-Atwani, stated in a statement seen by Al-Eqtisad News that "the committee, headed by Atwani, hosted Deputy Prime Minister and Minister of Planning Mohammed Tamim to discuss maximizing non-oil revenues."
Al-Atwani emphasized that "the Finance Committee noted a clear flaw in the estimation of non-oil revenues. By amending the law of the General Authority for Monitoring the Allocation of Federal Revenues, we seek to assess the extent of revenue from investment of state assets and other revenue streams, so that we can have a clear picture when formulating the country's financial policy."
He added, "The committee is determined to activate the work of this important constitutional body and grant it broader powers so it can assume its responsible national role."
He expressed his "concern over the halt in listing projects and the delay in financing ongoing projects," noting that "these reasons are a dangerous prelude that could lead us back to the problem of stalled projects."
The statement added, "The meeting reviewed a number of proposals and ideas agreed upon between the Finance Committee and the Minister of Planning regarding adding tasks and duties to the General Authority for Monitoring the Allocation of Federal Revenues and granting it expanded powers to review revenue estimates and plan for their collection."
He pointed out that "the meeting addressed the issues of the suspension of project listings, the delay in funding ongoing projects, the governorates' financial entitlements, and the delay in announcing the results of the population census."
For his part, the Minister of Planning said, "His ministry has completed its preparation of the 2025 budget schedules, and we have sent them to the Council of Ministers." He noted that they "do not include any new projects, but do include funding for ongoing projects."
The Minister of Planning added, "The results of the general population census are fully ready, and their delay depends on the arrival of some data related to the Kurdistan Region." https://economy-news.net/content.php?id=53832
Data Confirms Iraq's Pivotal Role In The Global Oil Market
Buratha News Agency1412025-03-26 SOMO today explained the importance of Iraqi oil and its vital role in global markets, while indicating that Iraq has the fourth largest proven oil reserves in the world, at approximately 145 billion barrels. SOMO emphasized the advantages of Iraqi oil, explaining,
“Global crude oils are classified and their quality is determined based on their API (specific gravity) and sulfur content. Iraqi crude oil produced on this basis is classified into (medium and heavy crude oil) based on its specific gravity.
It has a high sulfur content for both types, according to the sulfur content standard. It is considered a crude oil with specifications (required globally), and is compatible with the operational plans of refineries that wish to produce specific products according to their needs.”
She explained that "among the advantages that help attract buyers are the significant and growing demand for medium and heavy crude oils, stable production, and the availability of large, stable quantities that ensure long-term supply contracts for these refineries.
The geographic location and low shipping costs make Iraqi oil a favorite in the Asian market, in addition to the fair, competitive price based on market fundamentals."
The company continued, "Iraq ranks fifth in the world in terms of oil production, with an output of approximately 4.27 million barrels per day, making it the second-largest producer in OPEC after Saudi Arabia. Iraq also has the fourth-largest proven oil reserves in the world, at approximately 145 billion barrels."
She pointed out that "this ranking reflects Iraq's vital role in global oil markets, as it contributes significantly to meeting global energy demand. Marketing-wise, Iraqi crude oil is considered an important oil with a good market reputation, as it is relied upon by many global refineries in their refining operations and there is relatively high demand for it."
She added, "Iraqi crude oil is in global demand for refineries in several countries, as Iraqi crude oil is exported exclusively to companies that own refineries, but most of the companies to which Iraqi crude oil is exported are Asian companies, the most important of which are China and India, at a rate of approximately 70%, and approximately 30% for the other two markets, European and American combined."
She also pointed out that "OPEC and OPEC+ policies determine production levels, which are reflected in global prices, impacting the buying and selling of Iraqi crude oil. The greater the production restrictions, the higher the prices and the lower the quantities sold, and vice versa. These policies also impact the market share and financial returns." https://burathanews.com/arabic/economic/458057
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