“Tidbits From TNT” Friday Morning 3-21-2025

TNT:

Tishwash:  Minister of Finance Stresses Importance of Modernizing Debt Management and Financial Analysis from Geneva

Minister of Finance Taif Sami stressed the importance of modernizing debt management and committing to developing financial management mechanisms and enhancing transparency to support economic sustainability.

The Ministry of Finance stated in a statement received by the Iraqi News Agency (INA), "Minister of Finance Taif Sami participated today, Thursday, in the opening session of the United Nations Trade and Development Advisory Group meeting taking place in Geneva. The meeting aims to enhance the efficiency of debt management and develop financial analysis mechanisms in line with national and international strategies."

She added, "The session addressed the follow-up on the implementation of the Data Management Financial Services (DAMFAD) program for the period from 2020 to 2024, in addition to discussing the strategic plan for the next period (2025-2028), with a focus on ways to continuously develop and update the approved mechanisms.

The meeting also included a discussion session bringing together current and potential users of DAMFAD, providing an opportunity to exchange experiences and opinions to enhance the quality of services provided."

She continued, "As part of enhancing international cooperation, a donor consultation meeting was held to expand the financial support network. This reflects the Ministry of Finance's commitment to working together with all relevant stakeholders to achieve national financial goals.

 The conference also witnessed the release of the seventh generation of the DAMFAD system, with the United Nations Conference on Trade and Development (UNCTAD) affirming its continued support for the Ministry of Finance and the Public Debt Department. UNCTAD representatives expressed their willingness to provide the necessary training for public debt cadres on the new system, which will contribute to enhancing debt management efficiency and achieving greater financial transparency."

During the conference, the Minister emphasized the importance of modernizing debt management and the commitment to developing financial management mechanisms and enhancing transparency to support economic sustainability.

This event is an important step within the Ministry's strategy to achieve higher financial efficiency, enhance economic stability, and build greater confidence in the national financial system.  link

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Tishwash:  A source told Baghdad Today the reason for the stalled oil negotiations between Baghdad and Erbil. 

An informed source reported on Thursday (March 20, 2025) that the meeting between the delegations of the federal government and the Kurdistan Region increased tensions between the two parties, instead of reaching solutions.

The source added to Baghdad Today that "the reason for this is the federal delegation's insistence on handing over management of the central oil fields, which are managed by the regional government."

He pointed out that "the federal authorities insist on handing it over to them, so that the British company BP can invest in it."

He concluded by saying, "During the meeting, it was decided to send specialized technical teams to monitor the progress of work in the fields, audit production volumes, and monitor the quantities being exported by truck."

In turn, the regional government spokesman, Peshwa Hawrami, said, "We have declared since the beginning of the dispute with the federal government that we have nothing to hide regarding financial matters, oil, and other issues."

Kurdistan Regional Government Prime Minister Masrour Barzani had previously stated that the contract between the British company and the Iraqi government concerned "disputed areas." 

It's worth noting that the Kurdistan Region of Iraq lost approximately $20 billion in oil revenues as a result of the Iraqi government's victory in a case at the International Court of Justice, which barred Turkey from exporting resources from the Kurdistan Region without first obtaining the approval of the Baghdad government. The ban on exporting resources from the region remains in place to this day. link

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Tishwash:  Central Bank: Digital currency reduces cash flow outside banks

On Thursday, March 20, 2025, the Governor of the Central Bank of Iraq, Ali Al-Alaq, described digital currency as "limiting the flow of cash outside banks." He also spoke of a plan to establish a data center that would serve as a foundation for digital transformation.

The Iraqi government faces challenges in managing dinar liquidity, as it suffers from a chronic shortage of this currency, affecting its ability to meet its financial obligations to pay employee salaries, repay debts, and finance projects.

Al-Alaq said in a press statement followed by Al-Jabal, "Financial technologies are developing rapidly, in line with the requirements of the financial and banking sector in terms of speed, accuracy, and economic efficiency, in addition to transparency and oversight. The reality of the digital revolution is imposing itself on all sectors, including the financial and banking sector, which stands to benefit most from the major transformations taking place."

 He added, "Digital currency can serve many purposes, limiting the flow of cash outside banks and achieving a high degree of transparency, as funds can be tracked, whether in consumption, investment, savings, or even in legitimate and illegitimate businesses. It also provides important databases for analytical purposes, not just for the movement of paper money. In addition, digital currency offers economies of scale, including the ability to print and track currency."

 Al-Alaq explained, "We have begun taking steps in coordination with international organizations to review initial experiments in the digital currency file, which we do not wish to delay." He noted, "There are existing experiments in some countries in the region, and we are also following up with the Arab Monetary Fund to develop appropriate steps in this direction, and what is required is infrastructure."

 He continued, "The Central Bank possesses advanced infrastructure. The new bank building houses a sophisticated data center, and we are working to establish a data center that will represent a successful foundation for digital transformation."

 The Central Bank of Iraq previously announced its move to issue a digital currency as an alternative to paper currency, a shift that could reshape the payments landscape and the national economy entirely.

 This move comes in response to "increasing challenges in managing traditional cash," amid a global trend toward financial digitization.

 Al-Alaq said, "The financial and banking system will witness fundamental transformations, including the decline of paper currencies and their replacement by digital payments by central banks."

He explained that "the Central Bank is moving to create its own digital currency to gradually replace paper transactions, as is happening at some central banks around the world  link

Mot: Was going to Scratch this un - but NO!! - Decided to Share anyways 

Mot HUH!!!????