Iraq Economic News and Points To Ponder Thursday Afternoon 7-3-25

An Expert Warns Of The US Federal Reserve's Restrictions On Iraq's Financial Sovereignty.
 
 July 2, 16:23  Information/Special..  Economist Diaa Mohsen confirmed on Wednesday that Iraq still lacks independent economic decision-making due to the restrictions imposed by the US Federal Reserve on its funds, warning of the repercussions of the continuation of this situation on the country's financial sovereignty. 

Mohsen told Al-Maalouma News Agency, "After Iraq was released from Chapter 7 in 2011, theUnited States deposited its funds in the US Federal Reserve under the pretext of protecting them."

He pointed out that  "the returns generated by these deposits are much less than what could have been achieved if the funds had been invested  directly by the Iraqi government or  through partnerships with various countries." 

He stated that "Iraq's continued existence under these restrictions  is unacceptable and  deprives it of significant economic opportunities," emphasizing that"liberating Iraq from the authority of the US Federal Reserve would  revitalize the national economy and  open up broader horizons for financial development." 

He added that  "Iraq's continued dependence on the US decision makes it vulnerable to financial sanctions in the event of any political dispute with Washington, as the latter could simply seize Iraq's funds or prevent their use." End 25 Sh       
https://almaalomah.me/news/103365/economy/خبير-يحذر-من-قيود-الفيدرالي-الأمريكي-على-السيادة-المالية-الع    

Source: Iraqi Banks Rebel Against The Central Bank And Pay Salaries Despite Sanctions!
 
July 3, 2025 Last updated: July 3, 2025  Al-Mustaqillah - In a dangerous development that could herald a domestic financial crisis, an informed source revealed to Al-Mustaqillah on Thursday that the Central Bank of Iraq has issued strict directives to a number of Iraqi banks, including  halting the payment of salaries to some government institutions in the coming period.
 
This is due to US sanctions imposed on some Iraqi financial institutions and the expiration of the deadline Washington had granted Iraqi banks to rectify their situation. 

According to the source, the Central Bank warned of the repercussions of ignoring these sanctions,
especially after the end of the grace period granted by the US Treasury Department to Iraqi banks to     settle their transactions and  avoid potential sanctions.

However, the source noted that some banks—both private and government—  did not comply with the Central Bank's directives and insisted on disbursing salaries to specific government institutions,
 
a move described as a "direct and stubborn challenge" to the directives of the country's supreme monetary authority.

This escalation between the Central Bank and some banks raises serious questions about Iraq's compliance with international sanctions and the ability of its financial institutions to maintain monetary stability amid mounting political and economic pressures.
 
This situation also raises employees' concerns about   delayed salaries and the  potential for the crisis to expand  in the event of escalating sanctions or new US measures that could affect other accounts and banks.
 
While the Central Bank remains silent on these leaks, observers believe that Iraq is entering a critical phase in its engagement with the international financial system, particularly with the increasing reports of money being smuggled to banned entities and the involvement of some banks in suspicious financial transactions.
 
Will we soon witness an open confrontation between the Central Bank and the "rebellious" banks?
Will salaries be paid?
Or will US sanctions turn the tables on everyone?    https://mustaqila.com/مصدر-مصارف-عراقية-تتمرد-على-المركزي/   

Government Advisor: Iraq's Renaissance Depends On Transforming Oil Assets Into Productive Investments
 
Time: 2025/07/03 12:03:38 PM Read: 180 Times  {Economic: Al Furat News} The Prime Minister's Financial Advisor, Mazhar Mohammed Salih, emphasized that the country's renaissance lies in maximizing investment activity with strong impetus toward accelerated sustainable development.

He pointed out that  this is a strategic issue that can only be resolved through the country's economic resources in general, and specifically by transforming extracted oil assets into productive investment capital assets in vital economic sectors.
 
In a statement to Al Furat News, Salih emphasized that the government is engaged in  implementing its productive activities,  extending horizontally and vertically, through the implementation of strategic and service-oriented investment projects.
 
Challenges of Financing the Investment Budget and Opportunities for Improvement
 
The financial advisor explained that the operating budget imposes a spending restriction even in difficult circumstances,  when the country's oil revenues are severely reduced.

He emphasized that  financing the investment budget is the most affected in such circumstances. He added that the opportunity for improvement in oil revenues means that  the investment accelerator will operate at a high and accelerated pace to maximize GDP growth.

This is in light of the strict adherence to the government program, which has undertaken to implement the principle and vision of a "service government."
 
"Service government": Embodying the government's role in reconstruction
 
Saleh considered the principle of a "service government" to be an embodiment of the key role currently being played by the government across the country,  starting with the  implementation of the One Million Housing Unit Project and the  establishment of new cities, and ending with the school buildings project (one thousand schools), and the   construction of hospitals and various health facilities,
in a manner unprecedented in the reconstruction process in Iraq. 

He also pointed to the  development of infrastructure in the country's cities by advancing electricity, water, sanitation, and road projects without interruption and in an integrated manner. Saleh pointed out that the
 
Oil Investment Strategy and Its Role in Development
 
oil, gas, and other natural resource investment strategy is constantly evolving to feed and supplement the financial resources needed for the investment budget,   which aims to develop investment activity linked to sustainable development and economic prosperity.
 
Reconstruction Driven by Oil Revenues
 
The financial advisor concluded his statement by emphasizing that reconstruction is now financed by oil revenues before being financed by external borrowing. He explained that the goal of oil revenues, when they rise, will be to develop productive assets in sectors that contribute to diversifying the national economy.

He stated that as oil prices rise and higher financial returns are achieved, they will be more aligned with the strength of the implementation of development projects outlined in the country's government program and plans, which drive most new projects, especially those anticipated years ago.
 
This comes in line with a careful and precise program that builds a development renaissance based on a strong investment push, through a development movement unprecedented in the country's history.
 
This momentum   will continue unabated in the coming months,  with a robust and expansive urban evelopment map,     supported by the high level of stability  the country is witnessing in all economic, political, and security fields.  
  
https://alforatnews.iq/news/مستشار-حكومي-نهضة-العراق-مرهونة-بتحويل-الأصول-النفطية-إلى-استثمارات-منتجة 

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