Iraq News Highlights and Points to Ponder Tuesday Evening 12-3-24

Iraq Considers Its Future Away From The Dollar

December 3, 2024   Baghdad/Al-Masala: In light of the escalating tensions in the global financial system, former US President Donald Trump is exerting renewed pressure on countries to adhere to using the US dollar as the global reserve currency, which may create unexpected repercussions that may affect the dollar’s ​​position in global markets.

This pressure, which comes from Trump's well-known positions in using tariffs as a political tool, may reinforce trends seeking to move away from dependence on the dollar, and accelerate the steps of countries wishing to reduce their use of the American currency.

Although the dollar dominates more than 88% of foreign exchange trading, reflecting its exceptional power as a global lending and reserve instrument, experts say Trump’s attempts to boost the use of the dollar could backfire.

The mounting pressure could prompt some countries to look for alternatives to the dollar to avoid the risk of U.S. dominance, says Rodrigo Cattral of National Australia Bank. Cindy Lau of Avanda Investment Management says Trump’s moves are aimed at preserving the dollar’s ​​dominance as a safe store of value, which could make countries more determined to settle trade in their own currencies.

What highlights the impact of this policy on Iraq is that as a country dependent on an oil-based economy, it may come under increasing pressure as moves are made towards concluding trade agreements away from the dollar.

Iraq, which is closely linked to the global financial system through its oil exports, may find itself in a position that requires changing its financial and trade strategies to avoid excessive dependence on the dollar, which may reflect on its economic stability.

Countries such as China, Brazil and India have already begun to trade in their local currencies, a move that could mark the beginning of a new era in the international trading system. Meanwhile, Ulrich Leuchtmann of Commerzbank said the dollar’s ​​continued dominance will be challenged by increasingly self-serving US policy practices.

These developments may prompt Iraq to consider proactive steps to keep pace with future transformations, to secure its economic position in a world witnessing transformations that may threaten the stability of the current financial system.

Although Trump’s threats may not lead to an immediate collapse of the dollar’s ​​dominance, their long-term impact will be an incentive for other countries to seek ways to achieve greater economic independence, which may require Iraq to take measures to ensure the sustainability of its economy in this changing landscape.   https://almasalah.com/archives/107102

Finance Confirms The Government's Keenness To Implement Reforms To Ensure The Stability Of The National Economy

Money and business    Economy News – Baghdad  Finance Minister Taif Sami confirmed today, Tuesday, the government's keenness to implement reforms to ensure the stability of the national economy.

A statement by the Ministry of Finance, received by "Al-Eqtisad News", stated that "Minister of Finance Taif Sami Mohammed received in her official office in Baghdad, the representative of the World Bank in Iraq, Jean-Christophe Carré, where they discussed ways to enhance cooperation between Iraq and the World Bank to support development projects and economic reforms."

The Minister of Finance stressed to the Bank’s representative “the importance of partnership with the World Bank in financing programs that aim to achieve sustainable development,” expressing at the same time her welcome to the World Bank’s representative in Iraq, who was appointed as the Bank’s new representative in Iraq, replacing Richard Abdel Nour, whose duties in Iraq ended last November.

Minister Sami stressed the "Iraqi government's keenness to implement financial and economic reforms to ensure the stability of the national economy. It is working to implement these reforms with the aim of enhancing sustainable growth, improving the management of financial resources, combating corruption, and strengthening transparency in government institutions.

 For his part, the World Bank representative praised "the Iraqi government's efforts to improve the economic environment and implement programs that enhance transparency and efficiency, expressing the bank's readiness to provide more technical and financial support in line with Iraq's development priorities."

The statement added, "The two sides agreed to continue coordination and joint work to achieve strategic goals and enhance economic stability in the country."

21 views  Added 12/03/2024 - 1:42 PM  https://economy-news.net/content.php?id=50495

Government Communication To {Sabah}: Electronic Payment Contributes To Strengthening The Economy

Economic  12/03/2024   According to the confirmation of the government outreach team, and amidst the continuous support of Prime Minister Mohammed Shia al-Sudani.

Economic Benefits

According to the head of the government outreach team, Ammar Munim, to "Al-Sabah", "the government support for electronic payment comes from Prime Minister Mohammed Shia al-Sudani's belief in the economic benefits it brings to the national economy, revitalizing it and pushing it forward."

Munim explained that "the local market must adopt advanced financial transactions that make money paths clear, transparent and secure, and in this direction there are great benefits for the national economy and achieving revenues."

Government Decisions

As for the Executive Director of the Association of Private Banks, Ali Tariq, he told "Al-Sabah": "The development witnessed by Iraq in the electronic payment joint comes thanks to the government's understanding of the reality of electronic payment in financial performance, as government decisions had a great and influential echo in expanding the circle of its adoption."

He pointed out that "today there are about 800 government institutions that adopt electronic payment, as government instructions obligated its adoption with zero fees."

Financial Movements

He pointed out that "electronic payment works to achieve results that serve the national economy, as it reduces the rates of financial corruption and avoids dealing with counterfeit currencies, in addition to documenting financial movements and making them safer."

Confident Steps

 In turn, the director of the national awareness campaign to spread the culture of electronic payment "Esreflak" Ahmed Adel said: "The campaign is continuing with confident steps and in the field to reach the largest segment within Iraqi society and inform them of the importance of electronic payment, as we work to organize direct events within human gatherings."

He pointed out that "there are challenges facing the campaign and its movement, but cooperation with the relevant authorities enabled the campaign management to overcome them and it became possible to be present in public places and reach all segments of society.

Financial Transformation

As for the economic expert and consultant Alaa Fahd, he said: "The culture of electronic payment in Iraq is a recent spread as a result of the progress in global financial systems and the need for financial development of the engines of digital financial transformation, and this transformation requires changing the culture and belief of society, especially the simple popular classes who fear any financial procedure away from cash."

He pointed out that "this requires awareness media campaigns that promote this culture and market it to everyone, including the (Spend for You) campaign that was launched at the beginning of the digital transformation in Egypt, and was recently launched in Iraq as part of the first national campaign forum to spread culture," indicating that the campaign clarifies "the importance of electronic financial transformation."

Financial Security

Fahd continued: "There is a gradual change in the culture of electronic payment with the government's orientation towards this transformation and providing all facilities and facing all challenges in order to spread the culture and believe in it from the standpoint of benefit, as it is (Spend for You) in terms of financial security, eliminating corruption, saving time and effort, ease of carrying, and getting rid of counterfeiters Damaged and stolen items and other benefits provided by financial transformation, this requires doubling efforts to achieve full success.”   https://alsabaah.iq/106629-.html