Some “Iraq News” Posted by Clare at KTFA 4-14-2025

KTFA:

Clare:  Who controls the dollar exchange rate now? Arian parliament answers.

4/14/2025  Economy

Member confirmed Finance Committee Mustafa Al-Karawi Today, Monday, the current controlling factor for the dollar exchange rate is foreign remittances.

Al-Karawi told Sumaria News, “There are still large gaps in this process, and we notice the presence of hard currency in local markets in large quantities that do not match the volume of imported goods.”

He continued, “Foreign remittances and control over auditing... Bills The dollar exchange rate is controlled by the Central Bank, taxes, customs, and border crossings,” he said, noting that “the problem of controlling the volume of imported goods and comparing them with the volume of amounts transferred outside Iraq "It is still going on."

He continued, “We are working to ensure seriousness and find radical solutions to the problem of foreign remittances,” calling for “the need to adopt a new electronic system that manages this process, independent of personal actions.”   LINK

Clare: Iraq intends to purchase and manufacture 23 cruise ships.

4/14/2025- Baghdad

The Ministry of Transport intends to contract for the purchase and manufacture of 23 different vessels and boats to support the river transport sector and stimulate its movement locally and internationally as part of a plan to revitalize the sector in the country.

The Director General of the Ministry's General Maritime Transport Company, Ahmed Al-Asadi, said his company intends to contract for the purchase of 15 tourist boats to activate the river taxi project, in conjunction with the Ministry's plan to develop the Corniche dock in Basra Governorate, which is currently being referred for implementation.  

He added that his company is planning to build eight new vessels, and has submitted the project to the Cabinet Secretariat to obtain the necessary approvals. He revealed that the company has begun receiving offers from companies for the purpose of joint operation with the company's fleet for integrated transportation of various types of vessels. He pointed out that the completion of these contracts will complete the transportation mechanism for his company from containers, ships and docks, as it owns shares in a commercial dock and another for oil.  LINK

Frank26:  "ASRAFLAK !!!... THIS SUGGESTS AN INCREASE IN THE IQD EXCHANGE RATE !!!".......F26 

Plunging Oil Prices Jeopardize Iraq’s Budget: Will the Government Resort to Dollar Revaluation?

 4/13/2025

Iraq is bracing for renewed economic turbulence as oil prices fall below the critical $65 per barrel mark—five dollars short of the benchmark adopted in the country’s federal budget. The slide in global crude markets threatens to erode the very foundation of Iraq’s oil-dependent economy, prompting speculation over potential fiscal and monetary policy shifts.

According to economic analyst Salah Boushi, the continued depreciation in oil prices could severely undermine the state’s ability to fund essential institutions and public services. “The longer this drop persists, the more pressure the government will face,” he told Kurdistan24. “A flexible, carefully calibrated strategy is imperative. Increasing oil production may become necessary to offset lost revenues.”

While some officials advocate for boosting output, others warn against hasty decisions involving Iraq’s monetary reserves. The central bank’s hard currency reserves, considered a last line of defense, are unlikely to be tapped under current circumstances. Still, one policy instrument remains within reach—and contentious: the exchange rate.

Economic expert Ahmed al-Ansari noted that while Iraq’s reserve fund is generally safeguarded for emergencies, adjusting the value of the Iraqi dinar relative to the U.S. dollar remains a plausible option. “We’re unlikely to see the reserves touched, but a revaluation of the dinar, coupled with domestic borrowing, could help bridge a potential deficit,” al-Ansari explained.

The recent price plunge has also sparked unconventional proposals. Some economists have suggested postponing monthly salary disbursements by an additional ten days—shifting from a 30-day cycle to 40—as a temporary measure to alleviate budgetary stress and delay liquidity shortfalls.

Iraq’s fiscal vulnerability is deeply rooted in its dependency on oil, which constitutes nearly 90% of national revenue. Any significant fluctuation in the global oil market poses a direct threat to the country’s financial stability. As prices continue to fall below projections, the government faces the unwelcome prospect of making “painful” adjustments that could directly affect ordinary citizens.

For Iraq’s population—already grappling with inflation and diminished purchasing power—the prospect of a revised exchange rate raises alarm. A stronger dollar would translate into more expensive imports, triggering a ripple effect on everyday goods and services.

With few viable alternatives in the short term, and in the absence of economic diversification, the Iraqi government may be forced to choose between austerity and structural reform—or risk spiraling into a deeper crisis.   LINK

Clare:  Iraq awaits economic breakthrough following US-Iran agreement

4.14.2025   - Baghdad: 

Amid the successive crises facing Iraq, the national economy stands on the edge of waiting and anticipation, searching for a glimmer of hope that will open windows of relief amid the blocked financial horizon and the tightening noose on the local market.

Amid the anxiety of traders and the fear of consumers, the signs of the anticipated agreement between the United States of America and the Islamic Republic of Iran emerge as an opportunity that may carry within it the features of an economic breakthrough for Iraq, after years of suffering due to sanctions and regional tensions.

With every announcement or hint of progress in the negotiations, Iraqis' hopes are pinned on the possibility of liberating themselves from the shackles of complex transactions, and that this agreement will transform from a mere political card into a key to facilitating trade, ensuring stability, and protecting what remains of their purchasing power and economic capacity, which has been weakened by regional tensions.

Economic expert Nasser Al-Tamimi confirmed on Monday (April 14, 2025) that the expected agreement between the United States of America and the Islamic Republic of Iran will have economic benefits for Iraq.

Al-Tamimi told Baghdad Today, “The expected agreement between Washington and Tehran during the next phase is not only politically and security-wise important for Iraq, but also has economic benefits for Iraq. This agreement will lift some US sanctions against Iran, especially those related to the dollar issue. This may allow Iraq to conduct commercial transactions with Iran in dollars through official and legitimate means, and stop the black money transfers used by most traders.”

He added, "Among these economic benefits is Iraq's continued import of gas and electricity without any American obstacles or impediments. Therefore, the anticipated US-Iran agreement is of great importance to Iraq. However, if no agreement is reached and the situation escalates between the two parties, Iraq will be the most affected by this."

With the escalation of talk about a possible agreement between Washington and Tehran, expectations are growing that some of the restrictions imposed will be eased. This could give Iraq a new opportunity to regulate its trade with Iran through official and legitimate channels, mitigate the impact of recurring energy crises, and restore some balance to the local market, which has been chronically constrained by these regional and international challenges. LINK