Some “Iraq News” Posted by Clare at KTFA 2-10-2025
KTFA:
Clare: Iraq's revenues exceed 135 trillion dinars in 11 months
2/10/2025 Baghdad
The Ministry of Finance revealed, on Monday, that the volume of revenues in the federal budget during 11 months exceeded 135 trillion dinars.
Al-Eqtisad News followed the data and tables issued by the Ministry of Finance in February 2025 for the accounts from January to November 2024 for the past fiscal year, which showed that revenues from oil stabilized at about 88%, but it still constitutes the main resource for the general budget, indicating that the rentier economy is the basis of the country's general budget.
The financial tables showed that the total revenues for the eleven months of last year amounted to 135 trillion, 322 billion, 716 million, 694 thousand, and 603 dinars, indicating that the total advances amounted to 17 trillion, 352 billion, 387 million, 556 thousand, and 226 dinars.
According to the financial tables, oil revenues amounted to 119 trillion, 33 billion, 253 million, and 845 thousand dinars, which constitutes 88% of the general budget, while non-oil revenues amounted to 16 trillion, 289 billion, 462 million, and 848 thousand dinars, which constitutes 12% of Iraq’s general budget. LINK
Clare: Parliamentary Finance Committee reassures employees and retirees: Delay in budget schedules does not affect salaries
2/10/25
The Parliamentary Finance Committee reassured employees and retirees that the delay in the arrival of the 2025 budget schedules does not affect the distribution of salaries.
Committee member Jamal Kojer explained in a press statement that "the date of the budget schedules reaching parliament is still unknown."
He added that "despite this, salaries are secured as amounts and liquidity, and there is no delay in their distribution so far." LINK
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Clare: Trump: US debt may be less than reported due to fraud
2/10/2025 Economy News -
US President Donald Trump said on Sunday that his administration is reviewing US Treasury debt payments to uncover any potential fraud, suggesting that the total national debt of $36 trillion may be less than the announced figure.
Speaking to reporters aboard Air Force One, Trump said his administration was scrutinizing government spending records to detect unnecessary spending, and had recently begun focusing on debt payments, which are a key part of the global financial system.
Trump added that his administration is reviewing US Treasury bonds, indicating that there may be problems with them. He added: "There may be a problem, you've been reading about it, and it may be interesting."
"It's possible that a lot of these things are not being accounted for, in other words, we may discover that some of these transactions are very fraudulent, which means that the total debt may be less than we thought," Trump continued.
It was not clear whether Trump was referring to debt service payments or any other government payments made by the Treasury Department.
US debt value
The U.S. national debt currently stands at $36.2 trillion, according to the U.S. Treasury Department, or more than 120% of gross domestic product. Because the U.S. government is spending more than it takes in, President Donald Trump and Republicans, who control Congress, will have to approve more borrowing this year to avoid a default, a scenario that could be disastrous for the economy.
Independent budget monitors have warned that Trump's proposed tax cuts could add trillions of dollars to the national debt, further straining the country's finances.
US President Donald Trump has tasked businessman Elon Musk with a sweeping overhaul of the federal government, sparking protests on the streets of Washington amid accusations that the administration is breaking laws.
Musk's Department of Government Efficiency has disrupted the work of several federal agencies and raised privacy and security concerns because of his access to sensitive records related to government salaries and spending.
In a legal development, a federal judge issued a temporary injunction Saturday blocking Musk's team from accessing government systems that process trillions of dollars in payments, citing potential risks of unlawful disclosure of sensitive information.
After the court ruling, Elon Musk called for the “do not pay” list of entities that should not receive government payments to be updated at least weekly, if not daily.
For his part, US Treasury Secretary Scott Bessent, a Trump appointee, confirmed last week that Musk's team has "read-only" access to the payments system, meaning he cannot make any changes.
Meanwhile, while courts have blocked Trump’s attempt to freeze broad domestic aid, project managers across the country say billions of dollars remain stuck, affecting clean energy and transportation projects. LINK
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Clare: In light of the liquidity crisis... Why doesn't Iraq resort to printing more currency?
Sami Al-Salehi Journalist Published in Saturday 8 February 2025
Iraq is facing increasing challenges due to the scarcity of cash liquidity, which negatively affects the markets and daily financial transactions. While some are looking for quick solutions to overcome this crisis, the option of printing more local currency remains controversial, given the serious economic repercussions that may result from it.
The Iraqi government faces challenges in managing cash liquidity in dinars, as it suffers from a chronic shortage of this currency, which affects its ability to meet its financial obligations to pay employee salaries, repay debts, and finance projects.
Since the 1990s, and specifically during the period of the economic blockade, Iraq has witnessed hyperinflation in its national currency (the dinar). This situation prompted the ruling regime at the time to take the decision to print the currency locally.
After 2003, the previously circulating currency was disposed of, new denominations with updated designs were issued, and the exchange rate of the Iraqi dinar was fixed against the US dollar based on a decision by the then civil governor of Iraq, Paul Bremer, who in turn announced the details of the new currency and its official exchange rate.
Iraq currently has a range of paper denominations that cater to various daily transactions, starting from small denominations such as 250, 500 and 1,000 dinars, all the way to larger denominations such as 5,000, 10,000, 25,000 and even 50,000 dinars that are used in major transactions.
Where is the Iraqi currency printed?
On January 19, 2025, the Central Bank of Iraq revealed new security features on circulating banknotes, with the aim of reducing counterfeiting and protecting the national currency.
According to economic observers, the Central Bank has included these signs in the new banknotes to raise awareness among the public, companies and banks alike.
A source in the Central Bank of Iraq spoke about details related to the process of printing Iraqi banknotes, indicating that “the currency was previously printed in Switzerland, but the printing is currently done at the British Institute in London,” which is considered one of the most prominent institutions specialized in printing currencies globally.
In an interview with Al-Jabal platform, the source explained that “Iraqi banknotes are manufactured according to high-quality specifications, aiming to prevent their rapid damage and ensure their ability to withstand daily use for long periods, through the use of modern materials and technologies that increase their lifespan.”
According to the same source, “the cost of printing one banknote ranges between 4 and 5 US cents, a cost that includes the use of the latest security technologies to prevent counterfeiting, such as watermarks, optically variable inks, and security threads.
In contrast, the Central Bank confirms that currency printing operations are subject to strict standards to ensure their quality and durability. The design of banknotes is also updated from time to time according to technical and security needs, to ensure the currency is protected from counterfeiting and improve its technological properties.
An option on the government's table
In addition, Mazhar Mohammed Saleh, the economic advisor to the Iraqi Prime Minister, says, “Financing the deficit in the general budget through the issuance of cash is a cautious approach, but it remains a possible option in light of the availability of high foreign reserves, capable of covering the money supply of the national currency by no less than 75%.”
Saleh added, during his interview with the “Al-Jabal” platform, that “resorting to this method is temporary and periodic, as 40% to 50% of the issued cash is directed towards internal transactions, not just external transactions, which makes it an available option when needed, provided that the coverage rate remains high according to the mentioned standards.”
Saleh continues his talk by saying: “The monetary policy in Iraq is proceeding according to balanced standards with the fiscal policy, and is consistent with the cycle of oil assets. In the event that oil prices fall to low levels, it is possible to resort to financing the deficit by borrowing from banks and deducting the borrowings from the monetary issuance authority, provided that the coverage equation is maintained until the end of the cycle of falling prices.”
Saleh points out that "the decline in oil prices to below their real value in energy markets is not unusual, and it happens sometimes, which requires dealing with it through balanced monetary and financial mechanisms to ensure the stability of the national economy."
It is noteworthy that the Central Bank of Iraq issued, in 2018, a second edition of banknotes in denominations (25,000, 10,000, 1,000, 500, 250).
The Central Bank also previously added some technical and technological updates to the 2003 issue for all types of local currency, except for the (50) dinar category, which was withdrawn from circulation in 2015, while at the end of 2015 it issued the (50,000) dinar category to complete the current series in circulation.
Pros and cons of printing
In this regard, financial expert Jalil Al-Lami said, during his interview with Al-Jabal platform, that “the issue of printing local currency is one of the most sensitive economic policies, given its direct impact on the financial and economic stability in the country.”
Iraq, according to Lami, sometimes faces cash liquidity crises due to economic and political challenges. Technically, it can resort to printing currency to cover the deficit, but this does not depend only on technical capacity, but is subject to complex economic determinants such as the level of foreign exchange reserves, the monetary policy of the Central Bank of Iraq, and general economic stability.
Al-Lami added that "the Central Bank of Iraq, as the only body authorized to issue the currency, adheres to strict standards to ensure that it does not harm the national economy," warning against "unstudied monetary expansion, which could lead to dire economic consequences."
Regarding the positives of printing currency, Al-Lami reviewed some of the potential positives of printing currency, including providing quick cash liquidity, which helps finance salaries and projects and pay urgent obligations, in addition to supporting the economy in crises such as wars or epidemics, in addition to stimulating local demand by increasing the money supply.
Regarding the negatives of printing currency, Al-Lami believes that it may lead to hyperinflation, as when currency is issued without real economic cover, it leads to an uncontrolled rise in prices, in addition to a loss of confidence in the national currency, in addition to the deterioration of the exchange rate as a result of the increase in the money supply without sufficient economic support, and the gap between wages and prices may widen.
Al-Lami suggested a number of sustainable solutions that could help Iraq confront liquidity crises without resorting to printing currency, including “reforming the tax system by improving tax collection and reducing tax evasion to increase government revenues and diversify sources of income, in addition to internal and external borrowing and reducing unnecessary expenses.”
Other proposals, according to Al-Lami, include “enhancing foreign investment and reforming the financial and banking sector.”
The former governor of the Central Bank, Mustafa Makhif, announced in 2022 that "the bank is working on completing a new denomination worth 20,000 dinars based on a study and comparative research with neighboring countries, and is working on completing the shape of the note and it will be announced in the coming days."
At the time, he also spoke about the “issue of deleting zeros from the local currency,” and stressed that “the process of deleting zeros from the currency requires enacting a law and making some amendments.”
Numbers and statistics
The Iraqi government decided to change the exchange rate of the Iraqi dinar against the US dollar in 2020, as the price was adjusted from 1,182 dinars per dollar to 1,450 dinars per dollar.
This decision sparked widespread popular discontent, especially after the prices of food and all commodities in the markets witnessed a significant increase, and this change was confirmed in the federal budget approved by the Iraqi Council of Representatives on March 31, 2021.
Data from economist Nabil Al-Tamimi indicate that printing any currency clearly contributes to increasing inflation, as the increase in the volume of cash in circulation leads to an increase in prices. Therefore, countries are keen to avoid printing money to cover the deficit in their budgets except in limited and studied proportions, through which they try to achieve a balance between the volume of cash circulation and economic activity, i.e. the gross domestic product, which is known as natural inflation.
Al-Tamimi continued, in his interview with Al-Jabal platform, saying: “In some cases, monetary authorities may resort to withdrawing part of the cash and drying up the markets to control inflation, despite the economic slowdown that may result from that.”
According to Al-Tamimi, “Increasing the volume of printing leads to an increase in demand for hard currency, especially in countries that depend on importing goods and services, such as Iraq. The more local currency in circulation in dinars, the higher consumer spending, and most of this spending goes to imported goods and services that are paid for in foreign currency, which leads to an increase in demand for the dollar.”
In a free market, Tamimi said, “this could lead to fluctuations in the exchange rate, but if the central bank intervenes through a currency auction, the daily sales volume will increase to maintain monetary stability.” Data indicates that the Iraqi central bank’s dollar sales have reached about $300 million a day, compared with about $180 million a day in previous years.
He added, "The Central Bank of Iraq relies on its foreign currency reserves on government revenues from oil sales, which change according to the fluctuations of the oil market, as the reserve ranges between 50 and 100 billion dollars. To ensure monetary stability, the Central Bank's accounts must be based on the minimum reserve, i.e. 50 billion dollars, to cover imports and control local demand for hard currency at approximately this level."
Al-Tamimi concluded his speech by saying, “The period from 2003 to 2019 witnessed a relatively balanced monetary policy regarding printing currency, as the total issued currency during this period amounted to about 55 trillion dinars. However, the monetary policy during 2020 and 2021 led to clear inflation, with the volume of issued currency doubling to more than 100 trillion dinars. This was reflected in a significant increase in prices, as the inflation rate reached about 15%.”
Many years ago, the Director of Issuance at the Central Bank, Ihsan Al-Yasiri, said, “The Central Bank of Iraq prints a thousand 25,000-dinar notes in the most reliable international companies at a cost of less than $60,” noting that “the bank will not spend a large amount of cash to print the new banknotes, because their cost is low.” LINK
Clare: "From Cradle to Ruin"...an exhibition that embodies Iraq's journey in Jerusalem
2/9/2025
In exceptional event, the Museum of Islamic Art in Jerusalem hosts an exhibition entitled “From Cradle to Ruin,” which tells the story of Iraq through contemporary artworks by Iraqi artists .
The Israeli newspaper, "The Jerusalem Post", reported in a report translated by Shafaq News Agency, that "an American officer contributed to purchasing these artworks to sell them to artists in the United States. After that, an Israeli-American artist of Iraqi origin intervened to purchase the works and facilitate their display in Israel."
He pointed out that "the exhibition is about Iraqi art and that part of the credit for organizing it goes to the efforts of the Israeli-American artist of Iraqi origin, Oded Halhami, who is 86 years old and resides in New York City."
The report explained that "Oded runs his own gallery in New York, specifically in the Soho neighborhood, and devotes much of his effort to his art gallery, including providing a space for Iraqi artists to display their work and introduce the world to another side of Iraq that is not associated with the violence and death that appears in the news."
The report quoted the museum's director general, Gilad Levin, as saying, "Iraqis are very proud of their culture. Iraq is the cradle of human culture and history, and that is why we chose this title," explaining that "this is the place where the oldest cultures in human history began."
Levian added, "Iraq has witnessed ups and downs throughout its history, but he stressed that heritage exists within the people regardless of the ruling regime."
The report referred to Oded's passion and keen interest in this exhibition, as there is a text on the opening wall near the entrance to the exhibition hall, quoting his words in which he says, "It seems that I left Iraq, but Iraq never left me."
The report also quoted Levian as saying, “Oded lives his Iraqi identity, and lives this culture through the books he writes, the art he creates, and the clothes he wears,” indicating that “Oded surprised me… We had never met before, but we had talked on the phone for years, and he makes his own clothes, clothes in the traditional Iraqi style.”
He explained that "the title of the exhibition refers to the hardships and disasters that Iraq has gone through over the centuries, especially in the last fifty years, following the rise of Saddam Hussein's regime to power in the late seventies."
The report pointed out “a wonderful dramatic story related to the exhibition, which is the story of an American soldier who loved art while serving on a military mission in Iraq, where he obtained permission from his commander to follow local artists and transfer some of their works to the United States, then arrange for the sale and delivery of the financial proceeds to the artists who were struggling in difficult circumstances. When Oded heard about this initiative, he included this idea in his charitable works.”
While Levian said that Oded "told them that he would display the works in his gallery, and that he would buy any artworks that were not sold," hence the opening of the exhibition of Iraqi works at the Islamic Museum in Jerusalem .
The report continued, "Oded also owns a collection of artworks that reflect the depth of anxiety in Iraqi society at the present time, in addition to the cultural richness of Iraq that extends back thousands of years."
"Oded, in his octogenarian years, calls two of his exhibits Mercy for Baghdad, and they reflect the Iraqi national tricolour flag, whose design has been modified several times since the 1960s, and refer to a pre-Gulf War version of the flag with three stars, and the version introduced by Saddam Hussein that includes the phrase 'God is Great' instead of stars," he added.
The exhibition includes works that reflect Iraq's long and winding road and attempts to heal the rift and wounds, while Levian says that "when Iraq is damaged, it is on a large scale. But it always recovers."
The report indicated that the exhibition may be surprising to many who know Iraq only through the prevailing media images of it, and perhaps visitors will be able to learn about aspects of Iraqi culture through the memories they heard from elderly people who immigrated from Iraq in the early fifties and their children .
The report continued, "There is a painting representing three men embodying an atmosphere of close friendship and mutual respect in a café on the banks of the Tigris River, where people, especially men, would gather to smoke a hookah, drink coffee or tea, and play backgammon."
He said, “There is a miniature image of that atmosphere in the exhibition through a painting by the artist Fadhel Abbas,” pointing out “an amazing painting that reflects the artwork of the Mexican artist Frida Kahlo, a painting by the artist Naziha Rashid that depicts a woman with dark, strong eyes that reflect a feeling of inner strength.”
The exhibition also includes a collection of miniature oil paintings by artist Amal Alwan that convey a sense of daily life, including a scene of a riverside café .
The idea of destruction in the work “Night of Fire” by artist Mohammed Al-Hamdani shows what the American army did when it bombed Baghdad during the Second Gulf War in 2003 .
The report concluded by saying, "The Iraqi exhibition at the Museum of Islamic Art in Jerusalem represents a wonderful and rare opportunity to understand the spirit of the current era in Iraq." LINK
