KTFA Members "Wednesday Iraq News" 3-27-2024
KTFA:
Clare: The Iraqi government raises the size of the 2024 budget, and Parliament is “surprised”
3/27/2024
The Parliamentary Finance Committee said on Wednesday that the Iraqi government had increased the size of the 2024 budget, noting that it was “surprised” by the decision.
Member of the Parliamentary Finance Committee, Moeen Al-Kadhimi, explained to Shafaq News Agency, “The Parliamentary Finance Committee hosted the Minister of Planning to discuss amendments, projects, and the reasons for the delay in sending the general budget law to the House of Representatives.”
He added, "We in the Parliamentary Finance Committee were surprised that the government raised the total amount of the budget law from 199 trillion dinars to 228 trillion dinars in the 2024 budget," explaining that "this increase is large, while what was spent in 2023 amounted to 142 trillion dinars."
He pointed out that "the members of the Finance Committee had an opinion regarding the hosting that the budget should be realistic and not just planning."
Al-Kadhimi pointed out that “raising the total amount in the budget law caused an increase in the deficit rate,” noting that “the budget is currently still in the corridors of the Council of Ministers and is expected to be sent to the House of Representatives next month.” LINK
Clare: Al-Sudani announces the movement of nearly 500 stalled projects in Iraq
3/27/2024
Prime Minister Muhammad Shiaa Al-Sudani announced, this Wednesday morning, that his government has begun moving hundreds of stalled projects in various sectors in all governorates of the country.
This came during his pre-dawn inspection tour of the Nisour Square project site, which is one of the projects to relieve traffic congestion west of the capital, Baghdad, accompanied by the Minister of Construction and Housing, and the official of the implementing Chinese Railway Company, according to a statement issued by the Sudanese Media Office.
The Prime Minister expressed his appreciation for the continuation of work 24 hours a day, with three meals a day, in order to speed up completion and bring the project into service.
Al-Sudani stressed, in a speech to the workers, that this project is one of the most accurate and important projects for the movement of citizens in the capital, praising the efforts of the workers on the site and the supporting parties that maintained the work in the spirit of one team.
He stated that the package of projects to relieve traffic congestion will contribute to reducing the waste of citizens’ time, reducing pollution in the capital, and facilitating the flow of traffic, stressing the necessity of maintaining engineering specifications in implementation.
The statement quoted Al-Sudani as saying, “The government is continuing to move the stalled projects in all governorates and all sectors, as more than 490 projects have been moved and returned to work in a record period of time. It is an approach whose results are being followed by citizens who see the seriousness and clarity in it.” LINK
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Don961: Welcoming Iraq's accession to membership in the European Bank
Economical 03/26/2024 Baghdad: Hussein Thaghab
Economic and financial experts in the public and private sectors unanimously agreed on the importance of Iraq’s accession to membership in the European Bank for Reconstruction and Development, and that in all cases it represents an important step that enhances its position within the global labor market. This accession comes at a time when the government and the Central Bank of Iraq are working to develop the Iraqi financial sector. And moving it to a better stage, commensurate with its economic weight on the global scene.
Executive Director of the Association of Iraqi Private Banks, Ali Tariq, told “Al-Sabah”: Iraq needs such important steps that strengthen its financial position, at a time when efforts continue in full swing to develop the performance of the national financial sector, and that such partnerships will have a positive impact on National financial sector.
He stressed that the European Bank for Reconstruction and Development is an important financial institution, and that joining in itself is a positive step that complements the development effort that the country seeks, as everyone realizes that Iraq is an important field of work and a destination for many major international companies, which requires us to work to keep pace with global developments in the financial sector.
He pointed out that the efforts of the government and the Central Bank to develop the local financial sector are continuing and at their strongest, and such steps reinforce these trends, as they bring closer distances with important financial institutions.
The Prime Minister's Advisor for Financial Affairs, Dr. Mazhar Muhammad Salih explained the benefits of Iraq joining the European Bank for Reconstruction and Development.
Saleh said to the Iraqi News Agency (INA): “There is a positive syndrome between building the development strategy that is embodied today by the government’s philosophy of launching a development initiative with comprehensive sectoral economic ties, which is called the (Development Road) project, which is the corridor and the strategic project that connects the countries of the European Union.” In Asia through Iraq and the Gulf sea lanes and vice versa on the one hand, and the requirements for implementing the various stages of the development path through the role that Iraq’s membership in the European Bank for Reconstruction and Development occupies on the other hand, especially in the preferences for obtaining European technology and ensuring the role of European Union countries’ companies in implementing the path. Development in all its aspects, whether in infrastructure, industrial production projects, and various logistical services.”
Financial and economic expert Dr. Salwan Al-Nouri described Iraq’s membership in the European Bank for Reconstruction and Development as important and strategic and puts Iraq on safe paths.
He said: Iraq cannot achieve sustainable economic development without the presence of important global partnerships that accelerate the implementation of development plans, by providing supplies that effort cannot provide. Locally, at the same speed as our local effort, which is represented by advanced technology and capital. Al-Nouri pointed out that the global effort can shorten the time and effort in the development process that Iraq seeks, as it has abundant capital and advanced equipment that can be used to serve the national economy, and this is not impossible, pointing out that such important partnerships with institutions have weight. On the global economic arena will enhance national development capabilities.
Economist Ahmed Maklaf said: Iraq’s accession to membership in the European Bank for Reconstruction and Development is a success in itself, as it contributes to changing the global outlook on the Iraqi business arena and moving it to a new stage, especially since many international banks are still afraid of being present in the Iraqi market even though they are... Realizes the importance of Iraq on the global economic scene.
An official pointed out that the concerned authorities in Iraq must work towards building bridges of cooperation with the largest international financial institutions and be present inside Iraq with a weight commensurate with Iraq’s economic size, especially since Iraq represents the focus of important work in the region and the world, and that bilateral partnerships with Iraq are of great benefit to all. the parties.
Don961: Fiscal and monetary policies succeed in undermining the parallel dollar
Economical 03/27/2024 Baghdad: Haider Falih Al-Rubaie
The exchange rates of the dollar in the parallel market witnessed a noticeable decline, reaching yesterday, Monday, around 146 thousand dinars per 100 dollars, a number that specialists believe may decline further in the coming periods as a result of the success of the financial and monetary policies, stressing that the superiority of the official market, represented by the platform for selling the dollar. The Central Bank, in meeting the needs of foreign trade, led to a decline in the effects of the parallel market for the green currency, while specialists attributed the reasons for this decline to the introduction of the customs automation program (ASYCUDA).
According to specialists, this decline constituted a positive factor in controlling the prices of goods and materials in local markets. They expect inflation rates to decline in the coming periods if monetary policy continues to succeed in meeting foreign trade financing.
In an image that confirms the solidarity of the executive and legislative authorities to confront the effects of the parallel market, the Parliamentary Finance Committee hosted earlier the Governor of the Central Bank, Ali Al-Alaq, to discuss a number of important files, most notably the procedures for addressing the large gap in the sale of the dollar between the official price and the parallel market, as well as foreign trade remittances.
Through (the platform).” Al-Alaq indicated during the hosting that there were ongoing meetings with the US Treasury, and it was agreed to reconsider the sanctions imposed on Iraqi banks, and that such decisions should not be issued in the future except after discussing and informing the Central Bank of Iraq, as it concerned with monitoring its activity.
In the midst of this, the financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, believes that “economic policy played a major role in imposing a climate of stability in the general level of dollar exchange rates,” indicating that “the state of superiority of the official exchange market in financing Iraq’s foreign trade caused a decline in the effects of the market.” Parallel and receding Its illegal activities.
Saleh pointed out to the Iraqi News Agency, “INA,” that “the decline in parallel market rates in favor of the official exchange rate is a tangible success in the cohesion of the country’s economic policy in its three aspects: financial, monetary, and commercial,”
Pointing out that “work and high coordination of policies led to providing an incubator of stability embodied in Relative price calm and containing seasonal price fluctuations for high-demand items, specifically providing basic goods related to consumption and daily living for citizens,” noting “the importance of using the customs policy, which was represented by (reducing customs tariffs and diversifying imports without quantitative limits for basic and necessary goods) as part of the performance of the financial policy in providing stability.” price and guarantee the supply of food and essential goods and production supplies at the official exchange rate and in accordance with the requirements of the national economy.”
Confirming the views of the government advisor, the economic expert, Manaf Al-Sayegh, pointed out that “the existence of coordination measures between the financial and monetary policies indicates the presence of a sound reading among the pillars of the Iraqi economy, and that the strategy that was developed to enhance the value of the dinar has begun to bear fruit.”
However, Al-Sayegh, during his talk to “Al-Sabah,” urged the necessity of knowing the real measures that led to the decline in the parallel exchange rate to ensure its sustainability during the coming periods, with the aim of absolutely controlling the green currency and preventing its rise again, stressing that this decline in the exchange rate could achieve a number of economic gains, The most prominent of which is controlling the prices of goods and materials in local markets, and reducing the rise in inflation rates during the coming periods, and therefore this is in the interest of Supporting individual economics.
Al-Sayegh pointed out that the past few days witnessed a clear decline in the demand for the dollar in the parallel market, which led to a decline in its exchange rate, indicating that the decline in demand resulted from meeting the needs of financing foreign trade by the Central Bank, and therefore the dinar can gain a lot during the coming periods if it is filled. Most of the external financing needs of the private sector.
In turn, the specialist in economic affairs, Dr. Ali Daadoush, attributed controlling the exchange rate and reducing it in the parallel market, to the recent measures represented by the introduction of the Customs Data Automation Program (ASYCUDA) system, stressing that this important government measure is an essential part of reducing the rise in the price of the dollar in Parallel market.
Dadoush also believes during his talk to “Al-Sabah” that “this decline will positively affect the level of per capita income, and will also push people who hoard the dollar to give it up and sell it, which could contribute to the continued decline in the exchange rate, indicating at the same time that this decline in the currency Green prices will ultimately lead to a positive effect of controlling the prices of some goods necessary for the individual, while the rest of the goods, especially luxury goods, will remain high as a result of their connection to global prices, which are high mainly as a result of global inflation. LINK