Iraq Economic News And Points To Ponder Saturday Morning 5-17-25

Expert: Central Bank Reserves Declined By More Than 12% In Three Years

Economy |  05/16/2025  Mawazine News - Baghdad -  Economic affairs expert, Manar Al-Obaidi, confirmed today, Friday, that the Central Bank of Iraq's reserves witnessed a significant decline of more than 12% from the end of 2022 until March 2025.

Al-Obaidi said, in a statement received by Mawazine News, that "reserves declined by more than 20 trillion Iraqi dinars in a period of only 15 months, at a rate of 1.3 trillion dinars per month, equivalent to one billion dollars."

He added, "This decline cannot be read in isolation from the continuous rise in the import bill, which has begun to drain the state's hard currency resources on a daily basis."

Al-Obaidi pointed out that "this decline is due to Iraq's almost total dependence on foreign exchange to meet its consumer and production needs, in light of the absence of efficient local alternatives, the weakness of the industrial and agricultural sectors, and the continued operation of the currency window mechanism in its current form."   https://www.mawazin.net/Details.aspx?jimare=261491

Gold Is Heading For Its Biggest Weekly Decline In 6 Months

Money and Business  Economy News - Follow-up  Gold prices fell in early trading on Friday, heading for their biggest weekly decline in six months, as a stronger dollar and easing trade war concerns reduced its safe-haven appeal.

Spot gold fell 0.1 percent to $3,235.59 per ounce by 0027 GMT. Gold has fallen more than 2 percent so far this week and is on track for its worst weekly performance since November.

US gold futures rose 0.4 percent to $3,239.20.

The dollar has risen 0.4 percent so far this week and is on track for its fourth consecutive weekly gain. A stronger dollar makes dollar-priced gold more expensive for holders of other currencies.

The United States and China agreed earlier this week to temporarily reduce massive mutual tariffs, calming a trade war that had raised fears of a global recession.

As for other precious metals, spot silver fell 0.2 percent to $32.61 per ounce, platinum rose 0.3 percent to $992.55, and palladium fell 0.7 percent to $961.50. https://economy-news.net/content.php?id=55516

 For The Second Week, Oil Prices Achieve Gains In Global Markets.

Economy |  05/16/2025  Mawazine News - Follow-up:  Oil prices stabilized on Friday, but were on track for a second consecutive week of gains, supported by optimism over trade developments between the United States and China.

Brent crude futures fell one cent to $64.52 a barrel, while US West Texas Intermediate (WTI) crude futures rose two cents to $61.64.   https://www.mawazin.net/Details.aspx?jimare=261490

Iraq has begun implementing a project to digitally preserve its historical heritage.

May 16, 2025  Erbil - Amjad Nasser  The Prime Minister's advisor for artificial intelligence, Diaa Al-Jumaili, confirmed that Iraq has begun implementing distinctive projects using modern technology, such as the project to digitally preserve historical heritage using digital scanning and 3D printing techniques.

 This is used to preserve shrines, manuscripts, and historical buildings, enabling their recovery in the event of their loss due to natural disasters such as earthquakes and floods.

Sustainable Development

He added to Al-Zaman during the eighth international scientific conference of the Union of Arab Statisticians, held in cooperation with Tishk University in Erbil, under the theme (The Impact of Artificial Intelligence and Effective Statistics to Achieve the United Nations Sustainable Development Goals), that “an Iraqi team used 3D printing to redesign an old turbine that generates electricity in the Haditha Dam, which reflects the use of artificial intelligence in preserving infrastructure.

In addition to cultural heritage, old books are being converted into digital copies that can be read and analyzed, in a step towards digital documentation of historical and intellectual content.

This also confirms that every revolution has brought about a change in the type of skills required, but it did not eliminate job opportunities, but rather changed their nature.

For example, the First Industrial Revolution, which was associated with the steam engine, raised concerns among those whose professions depended on horses, but it created new jobs in fields such as coal mining and iron smelting.

This analogy justifies present-day fears of artificial intelligence, but calls for understanding it as a tool for positive change for those with the appropriate skills.

The Fourth Industrial Revolution, unlike its predecessors, will activate new roles based on talent.” Philosophy and cognitive depth, and an example of this is the well-known Iraqi doctor (Alaa Bashir), who combined medicine and art (being a sculptor and painter), which made him a model for the multiplicity of skills required by this stage).

Cultural Heritage

He also pointed out that (unfortunately, some Arab societies, especially the poor ones, do not deal with the Fourth Industrial Revolution, and this is due to the lack of training and weak qualification in the fields of modern technology, while Iraq has greatly excelled in this field, especially after the decision of Prime Minister Eng. Mohammed Shia Al-Sudani, to introduce artificial intelligence and use it in ministries and institutions.

My role as a volunteer consultant for artificial intelligence and education in Iraq, I do not receive a salary, but I sometimes spend from my own money because I find great pleasure and benefit in it, expressing my belief that Iraq has a huge cultural and artistic heritage that the West can learn about,

and Iraq, after consuming Western content, needs to highlight its own content of texts, plays and arts, because Iraq excels in visual arts compared to many countries in the world, which is an indication of the depth and richness of the local creative environment).

He also stressed the importance of respecting linguistic and cultural diversity in Iraq, and the need to involve children in learning different languages ​​from an early age. The Kurdish language contains about 200,000 words, while the Arabic language contains about 12.5 million.

This is a rich cultural resource that should not create division, but rather cultural integration. We see this cultural diversity in Iraqi events, such as weddings that include Kurds and Arabs from different regions.

This diversity is considered a source of generative artificial intelligence, because it nourishes creativity and innovation through different references and backgrounds.   LINK

 

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Saturday Morning 5-17-25

Good Morning Dinar Recaps,

Article: Europe’s MiCA Law Is in Motion — But Can the Crypto Industry Keep Up?

• MiCA enters a critical implementation phase across the European Union.
• Stablecoin rules spark industry shake-up, with Tether refusing to comply.
• BitGo steps in with MiCA-compliant licensing in Germany.

The European Union’s Markets in Crypto-Assets regulation — better known as MiCA — is now in its critical implementation phase. Designed to harmonize crypto regulation across all 27 EU member states, MiCA aims to bring clarity, consumer protection, and long-term market stability. But as implementation begins, challenges are already surfacing.

This week’s Byte-Sized Insight episode explores MiCA’s newly active provisions, focusing particularly on stablecoins, and why some of the industry's largest players are pushing back.

As of January 2025, crypto asset service providers (CASPs) have begun acquiring licenses to legally operate within the EU. A transitional or “grandfathering” period grants existing firms up to 18 months (depending on the member state) to comply. However, with regulatory deadlines looming, firms must act swiftly.

Stablecoins Under Fire

One of MiCA’s earliest — and most controversial — provisions focuses on stablecoins.
Under the regulation, no stablecoin may be offered to EU users unless the issuer is authorized within the EU and publishes a white paper approved by regulators.

Additional requirements include:
• Strict reserve asset mandates
• Robust governance structures
• Conflict of interest policies
• Tight marketing rules
• A ban on offering interest-bearing tokens

This puts the world’s most-used stablecoin — Tether’s USD₮ — at odds with MiCA.
Tether has publicly announced that it will not seek MiCA compliance, which could force exchanges to delist it across the EU.

💬 Tether CEO Paolo Ardoino told Cointelegraph’s Gareth Jenkinson at Token2049:

“The reason is not, uh, fear of regulations, fear of compliance… The problem that I had with, um, with MiCA is that [the] license is very dangerous when it comes to stablecoins and I believe that it's even more dangerous for the small medium banking system in Europe.”

Compliance Players Step In

While some resist, others are embracing the new landscape.
BitGo, a major crypto custody firm, has obtained a MiCA-compliant license in Germany.
This positions BitGo to serve institutional players throughout the EU.

💬 Brett Reeves, Head of Go Network and European Sales at BitGo, shared:

“We found that both BaFin and the European regulators have been relatively straightforward to deal with. Sometimes they have difficult questions, but they're there to make sure that our processes are in place and up to scratch.”

Industry voices are also calling for clarity at the national level.
Erwin Voloder, Head of Policy at the European Blockchain Association, emphasized the importance of consistent interpretation and guidance from EU regulators.
Without it, there's a risk of fragmented enforcement and uncertainty for market participants.

MiCA marks a turning point for crypto regulation in Europe — but its success hinges on how well the industry adapts and how effectively regulators coordinate implementation.

@ Newshounds News™
Source: Cointelegraph

~~~~~~~~~

Article: XRP News Today – Bank of France Officially Testing Ripple’s Ledger for Digital Euro

• Bank of France is officially testing Ripple’s private ledger for a Euro-based CBDC.
• Marks the first confirmed trial of Ripple’s blockchain for a national digital currency in France.
• Could give Ripple a first-mover advantage in the EU’s digital finance future.

A new academic study from Ulster University reveals that the Bank of France is actively testing Ripple’s private ledger as the underlying blockchain for a potential Central Bank Digital Currency (CBDC) based on the euro.

💬 The update was shared by crypto analyst @WrathofKahneman on X (formerly Twitter), highlighting what may be the first confirmed government trial of Ripple’s ledger for a European national digital currency.

Ripple’s Private Blockchain Gets a Seat at the Table

According to the academic findings, the Bank of France is currently conducting live tests on Ripple’s enterprise-grade private ledger.

This development significantly strengthens Ripple’s reputation as a top-tier blockchain infrastructure provider for national-level digital currencies.

France’s involvement is particularly notable due to its leadership role within the European Union, adding weight to any potential adoption discussions surrounding the digital euro.

Why This Trial Is a Major Milestone

🔹 Institutional Validation:
The Bank of France trial signals that Ripple’s blockchain is gaining serious institutional trust, despite past regulatory scrutiny in the United States.

🔹 EU-Wide Implications:
If successful, this test could pave the way for Ripple’s technology to be considered for EU-wide digital euro initiatives.

🔹 Tech Over Token:
The trial emphasizes Ripple’s value as a blockchain infrastructure provider, not just a cryptocurrency issuer.

🔹 First-Mover Advantage:
Ripple’s ready-to-deploy ledger gives it a potential edge over competitors still developing their CBDC platforms.

The Bigger Picture: Ripple in the Global CBDC Race

Countries like China are already moving aggressively on CBDC development. Europe, by contrast, risks falling behind — unless it can adopt a scalable, secure solution quickly.

Ripple’s blockchain is uniquely positioned to fill this gap, offering speed, compliance, and reliability.

Why This Matters

Ripple’s entry into CBDC trials in France may mark the start of a much broader shift. As central banks globally search for trusted partners to usher in the next generation of money, Ripple is clearly positioning itself as a frontrunner in the digital financial revolution.

@ Newshounds News™
Source: Coinpedia

~~~~~~~~~

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“Tidbits From TNT” Saturday Morning 5-17-2025

TNT:

Tishwash:  MP: Baghdad Summit Will Attract $30 Billion in Investments to Iraq

MP Mudhar Al-Karwi confirmed on Friday (May 16, 2025) that the Arab Summit will contribute to opening up broad investment horizons in Iraq in no less than 12 important economic sectors, and may attract investments worth up to $30 billion over the next few years.

Al-Karwi told Baghdad Today, "Despite being held under exceptional circumstances in the Arab region, including the repercussions of the situation in Palestine and other Arab countries, in addition to the security and economic challenges, the Arab Summit will provide significant economic momentum to Iraq."

He added, "Baghdad has succeeded in eliminating security concerns, and with the current positive developments, the summit will contribute to stimulating economic exchange between Iraq and Arab countries."

He pointed out that "after the Baghdad summit, there will be positive repercussions on 10 to 12 economic sectors between Baghdad and Arab capitals, with the potential to attract investments of up to $30 billion within a few years."

Al-Karwi explained that "there is interest from Arab countries, especially Gulf countries, in investing in the agriculture, industry, and banking sectors, with the potential to create private partnerships, as Iraq's development path has become a major focus of interest in many Arab capitals."

He stressed that "Iraq, through the economic committees, is moving toward concluding several agreements during the summit or through subcommittees, which will enhance the impact of the summit, which will not be limited to the political dimension alone, but will clearly extend to include the economic dimension."  link

************

Tishwash:  Iraq is reasserting its regional role with an economic and development agenda. 

 Iraq is preparing to host the 34th Arab League Summit, amidst great momentum and widespread aspirations to restore its historic role on the regional stage. Baghdad, which for decades served as a focal point for Arab decision-making before being sidelined by wars and conflicts, is returning today with a new outlook based on stability and development and economic ambitions.

The summit, scheduled for tomorrow, Saturday, is the first hosted by Baghdad since 2012. It represents a true test of Iraq's ability to lead Arab dialogue, not only politically, but also economically and developmentally, at a time when the region is facing unprecedented challenges, most notably the water crisis, desertification, energy crises, and economic integration.

Dr. Mazhar Mohammed Salih, the Prime Minister's financial advisor, believes the summit represents a "strategic turning point" in Iraq's contemporary history, demonstrating that the country now possesses the political, security, and logistical capacity to bring together Arab leaders on its soil. In a statement to Al-Sabah, he said that the summit has two main dimensions: the first is political and symbolic, representing Iraq's return to its natural position within the Arab regional system, and the second is economic, represented by the government's efforts to strengthen regional development partnerships, thus enhancing Iraq's geographical position as a major logistics hub between Asia and Europe.

Saleh points out that the "Development Road" will feature prominently on the summit's agenda, as a strategic project that could achieve integration between the countries of the Levant and the Maghreb by linking the Iraqi ports in Basra to the Turkish border, reaching Europe. He explains that the project is not limited to transportation, but includes the establishment of industrial and commercial zones along the route, providing major investment opportunities.

Economist Dhurgham Mohammed Ali believes the summit represents an important platform for revitalizing Arab initiatives on vital economic issues, stressing that the positive political climate surrounding the summit gives it additional momentum. Speaking to Al-Sabah, he added that among the most prominent issues on the table are desertification and food security, as Iraq and neighboring countries suffer from worsening environmental threats that can be addressed through joint Arab coordination in the areas of water, smart agriculture, and land reclamation.

Ali continues that the summit also offers Iraq the opportunity to renegotiate electricity and gas interconnection projects with the Gulf states, Jordan, and Egypt. These issues are witnessing rapid developments in bilateral agreements, but collective coordination within the framework of the Arab League could give them a deeper dimension.

He stressed the need to leverage the presence of Arab leaders to promote investment opportunities within Iraq, particularly in the renewable energy, tourism, and infrastructure sectors, noting that the Iraqi government has demonstrated a clear willingness to provide genuine facilitations to Arab investors.

Economist Diaa Al-Mohsen believes the summit carries a political dimension no less important than its economic aspect, especially as it is being held in a turbulent regional context witnessing a struggle for roles and influence between regional and international powers. Al-Mohsen told Al-Sabah: "The mere fact that the summit is being held in Baghdad is a political and diplomatic victory for Iraq, and a message that the country has regained its health and is capable of serving as an arena for dialogue, not a battleground."

Al-Mohsen asserts that the government has made significant efforts to improve the capital's infrastructure and create security and logistical conditions for the summit's success, which will positively impact Iraq's image regionally and internationally. He also noted that the political and diplomatic momentum accompanying the summit could help attract Arab capital, especially given the desire among Gulf investment funds to engage in strategic projects within Iraq.

Legal and economic expert Abdul Rahman Al-Shaikhli believes the summit also represents an opportunity to rebuild trust between Iraq and its Arab neighbors after decades of estrangement and tension. Speaking to Al-Sabah, he explained that Iraq has suffered from political isolation for years, resulting from internal conflicts and foreign interventions, but the summit represents an indication of a gradual shift toward a stable political environment that will enable regional reintegration.

Al-Shaikhli adds that Iraq has already begun implementing broad economic reforms in line with the requirements of a free economy, which qualifies it to be part of Arab economic integration projects. He points out that the summit could serve as a platform for developing unified Arab financing mechanisms that support small and medium-sized enterprises and achieve development goals. He concludes by saying that if Iraq succeeds in formulating a unified Arab position on environmental and economic issues during the summit, it will have achieved a strategic gain that transcends the confines of politics, establishing itself as a regional player capable of initiative and influence.  link

Tishwash:  Al-Sudani's advisor reveals Iraq's debts and their global classification.

The financial advisor to the Iraqi Prime Minister, Mazhar Mohammed Salih, revealed on Friday that the ratio of external and domestic public debt does not exceed 33% of the gross domestic product, an indicator that places Iraq within a comfortable and low-risk global credit rating.

“Iraq legally and customarily extinguished, in the Paris Club agreement of 2004, about $100 billion of the external debt accumulated by the former regime due to conflicts and wars. It was called pre-1990 debt and had a claims ceiling of about $38.9 billion.

The remainder was rescheduled for about 20 years after the immediate cancellation of $100 billion, noting that many countries had cancelled 100% or close to that at the time of signing the agreement, which reduced the remaining reschedulable debt,” Saleh said in a press statement followed by Al-Mada.

He added, "It is also assumed that the Paris Club debts (both sovereign and foreign sector) will be fully extinguished in 2028, with the final foreign private sector debt remaining after the latter's rescheduling into European bonds called 'Iraq 2028'. The debt is valued at approximately $2.7 billion and is currently traded in global secondary capital markets."

He continued, "We also borrowed approximately $12 billion to finance the budget during the war on ISIS, most of which was repaid, specifically with the International Monetary Fund."

Regarding foreign debt, Saleh points out that "the foreign debts due over the next four years are approximately $9 billion, and there are foreign debts of a similar amount extending over longer years, related to long-term loans from international funds, mostly for the reconstruction of liberated areas."

Accordingly, "the ratio of external debt to GDP is within a very safe range, not exceeding 8% of GDP, which has placed Iraq within a comfortable and low-risk global credit rating," according to Saleh.

The government advisor explained that "the general budget annually allocates appropriate allocations for debt repayment and servicing as a top priority, which has strengthened Iraq's creditworthiness."

As for the domestic public debt, according to Saleh, it "amounts to 85 trillion dinars, half of which is invested in the Central Bank of Iraq's investment portfolio, and the remainder is held mostly by government banks and the public in the form of bonds and transfers. It has accumulated due to the three oil asset cycles."

He reveals that "domestic public debt constitutes 25% of GDP. If the value of the remaining external public debt is added to the domestic public debt, their combined ratio to GDP does not exceed 33%, indicating that our country is within the safe classification criteria for acceptable debt, which amounts to 60% of GDP."

He notes, "But without forgetting that there are approximately $40 billion that have not been settled practically since the Paris Club agreement in 2004, which (should be written off by 80% or more) under the agreement, if that debt is true, and which belong to eight countries related to financing the Iran-Iraq war. These are odious debts, as they are called in economic literature, and they are pending without settlement."

The government advisor concluded his remarks by saying, "There is careful planning between fiscal and monetary policies to extinguish the domestic debt held by the (government banking system) within a genuine financial settlement that provides public finances with ample scope for financial sustainability link

Mot:  . Guess who kept everyone awake last night 

Mot .. getting it done 

Iraq Economic News And Points To Ponder Late Friday Evening 5-16-25

Within Five Years, Iraq Will Achieve Self-Sufficiency In 20 Agricultural Crops.
 
 May 15, 18:11  Information/Baghdad..  The Parliamentary Agriculture and Water Committee confirmed on Thursday that Iraq has achieved self-sufficiency in 18 to 20 agricultural crops over the past five years, despite environmental and climatic challenges.
 
Committee member MP Thaer al-Jubouri told Al-Maalouma,  "The agricultural sector, despite the difficulties of drought, climate change, and setbacks it has experienced over the past years, has witnessed remarkable activity, represented by reaching the stage of self-sufficiency in approximately 18 to 20 crops, including vegetables and fruits."

He emphasized that "the agricultural sector has succeeded in securing the needs of the Iraqi markets at very reasonable prices."  Al-Jubouri added,
 
"One of the important positives in the agricultural sector is the  transition to modern irrigation technologies and  changing farming patterns,  while striving to cultivate new crops with the aim of achieving diversity and increasing revenues." 

 He pointed out that  "there are serious efforts to open up export opportunities for crops,
especially during peak production, to achieve higher revenue rates, given the growing demand for Iraqi fruits and vegetables in neighboring and other markets." 

 Al-Jubouri pointed out that  "the emergence of modern farms and their use of advanced technologies will enhance economic viability and ensure higher production levels to directly cover markets."

It's worth noting that Iraq possesses millions of acres of fertile land that produces a variety of vegetables and fruits, enhancing its ability to directly establish the concept of food security.  End 25F.     
  
https://almaalomah.me/news/98817/economy/خلال-5-سنوات-العراق-يحقق-الاكتفاء-الذاتي-من-20-محصولا-زراعيا 

Expert: Central Bank Reserves Declined By More Than 12% In Three Years

economy | 11:23 - 05/16/2025   Mawazine News - Baghdad -  Economic affairs expert, Manar Al-Obaidi, confirmed today, Friday, that the Central Bank of Iraq's reserves witnessed a significant decline of more than 12% from the end of 2022 until March 2025.

Al-Obaidi said, in a statement received by Mawazine News, that "reserves declined by more than 20 trillion Iraqi dinars in a period of only 15 months, at a rate of 1.3 trillion dinars per month, equivalent to one billion dollars."

He added, "This decline cannot be read in isolation from the continuous rise in the import bill, which has begun to drain the state's hard currency resources on a daily basis."

Al-Obaidi pointed out that "this decline is due to Iraq's almost total dependence on foreign exchange to meet its consumer and production needs, in light of the absence of efficient local alternatives, the weakness of the industrial and agricultural sectors, and the continued operation of the currency window mechanism in its current form."  https://www.mawazin.net/Details.aspx?jimare=261491

The Baghdad Summit And Support For Transportation And Logistics Projects Are A Strategic Pillar For Diversifying The National Economy

Dr. Haitham Hamid Mutlaq Al-Mansour  Economy News – Baghdad  The Baghdad Summit, which began on Tuesday, May 13, has been hosting a ministerial-level meeting of the Economic and Social Council, which included important meetings on enhancing regional cooperation on transportation and logistics projects between the region's countries.

These topics played a significant role in these meetings, given their importance in stimulating economic growth and connecting regional markets. How can the summit support these projects? What are the expected prospects for this sector?

The government's interest in transportation and logistics projects was a national and regional economic priority at the Baghdad 2025 Summit, through planning major strategic projects aimed at transforming Iraq into a regional transportation and trade hub, by linking southern Iraq to the Turkish border in the north, and Jordan and the Mediterranean Sea in the west, thus enhancing Iraq's role as a major economic hub in the region.

Therefore, we find that the government is working to strengthen Iraq's economic position by developing trade relations with Arab countries, re-evaluating previous agreements, and implementing strategic projects aimed at diversifying the economy and reducing dependence on oil. This is due to the advantages and gains it offers in the following areas:

Iraq's strategic location: Iraq serves as a land bridge connecting the Arabian Gulf to Turkey and Europe, and Asia to the Arab world, making it a key logistics hub.

The goal is to promote intra-regional trade and facilitate the movement of goods between participating countries (Jordan, Saudi Arabia, Iran, Turkey, and others), reducing costs and increasing the speed and volume of trade.

Diversifying the Iraqi economy: As an alternative to its total dependence on oil, Iraq could become a regional logistics hub, providing job opportunities and supporting other sectors such as industry and warehousing.

The most prominent proposed transport and logistics projects:

A. Land and railway connectivity projects

- The Iraqi Development Corridor: Linking the Grand Faw Port in southern Iraq to Turkey via a railway and highway network, facilitating the transport of goods between the Gulf and Europe.

- The Iraqi-Jordanian railway line: to enhance trade exchange with Jordan and its outlet to the Mediterranean.

- A project to link Gulf ports to Turkey via Iraq: In cooperation with countries such as Kuwait and Saudi Arabia, this project aims to create an alternative trade route to congested sea lanes.

b. Development of ports and airports

- Al Faw Grand Port: One of the largest logistics projects in the region, it could become a competitor to Dubai Ports and Jebel Ali Ports if completed.

- Modernizing Baghdad, Najaf, and Basra airports to increase their capacity to handle air cargo and enhance transit, as well as establishing new airports.

C. Free logistics zones

Establishing warehousing and logistics distribution areas in cities such as Basra and Najaf to facilitate re-exports and reduce shipping costs.

But the important question remains: How can the summit support these projects? Support is provided through:

Concluding land and air transport agreements between Iraq and neighboring countries to facilitate the movement of goods and trucks.

Attracting investments from the Gulf states, Turkey, and China to finance infrastructure.

Establish a regional logistics authority to coordinate transport policies and unify customs standards.

Involving the private sector in the management and operation of logistics projects to ensure efficiency.

Among the most important challenges and obstacles that may face the process of supporting these projects, which are expected to reveal Iraq’s capabilities in developing this category of strategic projects, are:

The weakness of Iraq's current road and railway infrastructure.

Bureaucracy and corruption hinder the implementation of major projects.

Therefore, the multiplicity of economic impact expected from these investments is of great importance on the level of the Iraqi and regional economy, which appears to us as follows:

A. At the level of the Iraqi economy:

Boosting GDP: The International Monetary Fund estimates that investing $10 billion in infrastructure could boost Iraq's economic growth by 2.5% annually.

Job Creation: Transport and logistics projects could create 500,000 direct and indirect job opportunities by 2030.

Diversifying revenues: Currently, 90% of Iraq's revenues come from oil, but the transportation sector could add $5-7 billion annually by 2030.

Reducing the trade deficit: Transportation costs for the trade sector are expected to decline with improved infrastructure, which will provide an incentive to develop export industries that will reduce the $30 billion annual trade deficit between Iraq and its neighbors (Turkey, Iran, and Jordan).

B. At the level of regional trade and international investment:

Reducing shipping costs: The Gulf-Türkiye route via Iraq may reduce shipping time from 20 days (by sea around the Arabs) to 48 hours (by land).

Positive impact on foreign investment flows. With improved infrastructure, the region could attract investments from Turkey, other Arab countries, China (under the Belt and Road Initiative), the Gulf (particularly in energy and logistics), and European companies seeking new markets.

Therefore, the Baghdad Development Summit represents a very opportune opportunity to stimulate the growth and diversification of the national economy, as well as to revitalize Iraq's strategic role in regional cooperation in the field of transportation and logistics.

Iraq is on the cusp of a major economic transformation, transforming it into a trade hub between Asia and Europe and supporting its economy with non-oil revenues.

This requires effective policies to prepare and rehabilitate relevant sectors and establish strategic partnerships with neighboring countries and international investors. https://economy-news.net/content.php?id=55515

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

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Seeds of Wisdom RV and Economic Updates Friday Afternoon 5-16-25

Good Afternoon Dinar Recaps,

🏛️ US SENATE WILL PASS STABLECOIN BILL — DIGITAL CHAMBER CHIEF

The GENIUS Act's failure to move to a full vote is “a bump in the road,” and it will pass “in the next few weeks,” says Cody Carbone, CEO of the Washington, DC-based advocacy group Digital Chamber.

The stalling of key stablecoin legislation in the United States Senate was only a minor setback, and the bill is expected to pass soon, according to Cody Carbone, CEO of the Digital Chamber, a blockchain trade association and advocacy group based in Washington, DC.

Speaking to Cointelegraph at Consensus 2025, Carbone said it is in the best interest of the U.S. to enact comprehensive stablecoin regulations in order to protect U.S. dollar hegemony in global markets — a move that enjoys bipartisan appeal and support. Carbone stated:

“These things never move as quickly as we want them to move, but it's stablecoin legislation. This Congress has already moved more expeditiously than we ever could have imagined. So, yes, it's a bump in the road, but I think very, very shortly, we will have another vote.”

The Guiding and Establishing National Innovation in U.S. Stablecoins of 2025, or GENIUS Act, is seen as critical legislation for the U.S. crypto space. Many warn that failing to pass meaningful regulatory reform before the 2026 midterm elections could trigger a reversal in the current positive sentiment and cause a downturn in crypto markets.

“Negotiations have continued, and so I am still very optimistic,” Carbone added. “This bill is going to pass the Senate in the next few weeks.”

⚖️ Partisan Politics and Trump’s Involvement Blamed for Setback

The act failed a procedural vote in the Senate on May 8 after several Democratic lawmakers withdrew support, citing ethical concerns over President Donald Trump’s involvement in crypto. His ties to crypto — including memecoins, DeFi, and NFTs — were labeled as a key reason for the sudden reversal of Democratic support.

Coinbase Chief Legal Officer Paul Grewal also weighed in, saying Trump’s crypto presence complicates the regulatory process, as lawmakers remain cautious of conflicts of interest or undue influence.

In response, Republican Senator Tim Scott criticized Democratic opposition as a politically motivated move, aimed at blocking the former president from advancing digital asset initiatives under his administration.

Despite the controversy, the latest version of the bill removes any references to the Trump family, a change that could pave the way for Senate approval by the end of May, according to several industry insiders.

@ Newshounds News™
🔗  Source:  Cointelegraph

~~~~~~~~~

STABLECOINS GO MAINSTREAM: 9 IN 10 FINANCIAL INSTITUTIONS NOW IMPLEMENTING, EXECS SAY

Stablecoins have moved from experimental assets to key infrastructure in global finance, according to Fireblocks’ newly released 2025 State of Stablecoins report.

Fireblocks’ Survey: 90% of Firms Have Stablecoin Initiatives Underway

Based on a survey of 295 financial executives, the report reveals that 90% of firms are now actively implementing stablecoins, with nearly half of all 2024 transactions on Fireblocks’ platform involving stablecoin use.

Banks and payment providers are now processing over 35 million stablecoin transactions per month, a clear sign of their growing adoption.

The dominant use case? Cross-border B2B payments, especially in emerging markets where traditional rails fail due to delays and high costs.

Speed and Liquidity Are Driving Adoption
Speed has overtaken cost savings as the top benefit, with 48% citing faster settlement as the primary motivator. But more than just efficiency, revenue growth is the goal: institutions want to regain lost market share and open new financial corridors.

Meanwhile, regulatory concerns have dropped dramatically — just 20% of firms now view compliance as a barrier, down from 80% in 2023. This shift is driven by clearer global regulations and better AML tools.

Regional Trends Show Varied Priorities

• Latin America: Leading with 71% of firms using stablecoins for cross-border transactions.

• Asia: Focused on market expansion.

• North America: Lags behind with 39% adoption, but 88% of firms support upcoming regulations.

• Europe: Emphasizing security, with 37% seeking safer infrastructure despite its regulatory head start under MiCA.

Infrastructure Is Ready, But Security Still a Concern
While 86% report being technically ready, Fireblocks stresses the need for enterprise-grade scalability.
Security remains a sticking point — 36% demand stronger protections to support future growth.

Case in point: Fireblocks highlighted its partnership with Zeebu, which used stablecoins to process $5.7 billion in telecom settlements — demonstrating both scalability and real-world impact.

Conclusion: Stablecoins Are No Longer Optional
The message is clear: Stablecoins have become a strategic imperative.
From instant settlements to programmable finance, the pressure to adapt is rising. Institutions building secure and compliant infrastructure today will lead the digital finance landscape of tomorrow.

@ Newshounds News™
📎 Source:  Bitcoin News

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

Follow the Roadmap

Follow the Timeline 

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Thank you Dinar Recaps

Taboola the same on the Bottom of Posts

Seeds of Wisdom RV and Economic Updates Friday Morning 5-16-25

Good Morning Dinar Recaps,

US Federal Judge Rejects SEC and Ripple's Request for Indicative Ruling, Further Delaying Resolution

• U.S. District Court Judge Analisa Torres denied Ripple and the SEC’s joint motion for an indicative ruling on their agreement to settle the years-long legal dispute.
• Judge Torres said the request was “procedurally improper,” and the parties failed to address what was necessary to lift the original injunction against Ripple.
• Ripple CLO Stuart Alderoty said the company will revisit the case in court with the SEC.

The Southern District of New York Court dismissed the joint request from the Securities and Exchange Commission and Ripple Labs for an indicative ruling on a potential resolution in the years-long dispute between the entities.

The decision comes a week after the SEC and Ripple submitted the request after entering into a settlement agreement, where they sought an indicative ruling to lift the August 2024 injunction against Ripple and reduce the imposed penalties from $125 million to $50 million.

An indicative ruling is a statement from a district court about how it would rule on a motion if it still had jurisdiction over a case. 

According to Rule 62.1, a district court does not have real authority to grant or reject a request. As the SEC and Ripple each filed appeals to a final judgment in August 2024, their cross-appeals are still pending in a higher court, the Second Circuit.

"Accordingly, if jurisdiction were restored to this court, the court would deny the parties' motion as procedurally improper," District Judge Analisa Torres said in the Thursday order.

The judge said the parties failed to address the "heavy burden" they must overcome to vacate the injunction, adding that relief from judgment under Rule of Civil Procedure 60 should be made in "exceptional circumstances."

What’s next

The SEC and Ripple previously said that if Judge Torres made an indicative ruling to lift the injunction against Ripple, they would jointly request a limited remand from the Second Circuit. This remand would have returned the case to the district court to formally implement their mutual agreement and dismiss their cross-appeals.

Ripple's Chief Legal Officer Stuart Alderoty said on X that the company and the SEC will revisit this case in the court.
"Nothing in today's order changes Ripple's wins," Alderoty wrote.

"The meaning here is that the parties didn't request relief under the right rule of civil procedure," crypto attorney Fred Rispoli commented on X. "So they will refile it under the correct rule but, me reading between the lines, is that Ripple and the SEC need to get on all fours and beg for relief."

The SEC-Ripple case is one of the most prominent lawsuits in crypto history. It started in late 2020 when the regulatory agency sued Ripple over its sale of XRP tokens, which the regulator viewed as a violation of federal securities laws. The case attracted significant attention, centering on whether XRP, and cryptocurrencies in general, should be considered financial securities.

The dispute took a significant turn when new leadership took over the SEC under pro-crypto President Donald Trump and adopted a friendlier stance toward crypto regulation. The agency has dropped its enforcement actions against several major crypto players this year, including Coinbase and Kraken.

The price of XRP fell 6% in the past 24 hours to trade at $2.38 as of 10:10 p.m. on Thursday ET, according to The Block's XRP price page.

@ Newshounds News™
Source: The Block

~~~~~~~~~

South American Nation Could Join BRICS During 2025 Summit

• The 17th BRICS summit will take place on July 7–8, 2025, in Rio De Janeiro, Brazil.
• Colombia may become the first South American country to join the BRICS alliance.
• Brazil’s President Lula da Silva has officially proposed Colombia’s membership.
• Colombia is also seeking entry into the BRICS New Development Bank (NDB).

A leading South American country could join the BRICS alliance during the 2025 summit in July. The 17th summit is scheduled to take place in Brazil’s Rio De Janeiro on July 7 and 8, during which the 10-member bloc will meet to discuss trade policies, currency options, and new memberships. The alliance’s decisions are consensus-based, as all nations have to agree to move forward on a policy.

No South American country has been part of the BRICS alliance, and things could change after the 2025 summit. Even the 13 ‘partner countries’ are not from South America, while Cuba, the closest, is in the Caribbean. This year’s summit could see major changes in how the bloc operates and advance the de-dollarization agenda on the global stage.

BRICS: South American Nation Colombia Wants to Join BRICS After 2025 Summit

Brazil, which chairs the upcoming summit, has proposed that the South American nation of Colombia join BRICS in 2025.
"Our President Lula da Silva suggested Colombia as a new full-fledged member of BRICS. This issue was discussed by the group’s members," said Brazilian Ambassador to Russia Rodrigo de Lima Baena Soares.

He also explained that Trump’s trade wars and tariffs led to the South American country Colombia considering BRICS in 2025. “What President Trump did was throw us into an abyss of opportunity,” he said. The decision to allow Colombia into the bloc will be consensus-based at the 17th summit in July.

The South American nation Colombia has also requested to join the BRICS bank ‘New Development Bank’ after the 2025 summit. Entry into NDB will allow Colombia to see new loans outside the Western-dominated International Monetary Fund (IMF).

"We would need to talk about new loans, talks about the purchase of debt. And it’s there that great possibilities emerge with a bank like the BRICS’ new bank, on top of loans we could obtain for the issue of education or infrastructure," said Congressman Alejandro Toro.

@ Newshounds News™
Source: Watcher.Guru

~~~~~~~~~

Isaac Update 

May 15, 2025

Isaac posted in his Telegram Room Link

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Thank you Dinar Recaps

“Tidbits From TNT” Friday Morning 5-16-2025

TNT:

Tishwash:  Ashur Bank joins Iraq Britain Business Council

Ashur International Bank has joined the Iraq Britain Business Council (IBBC).

According to a statement from the IBBC, the move follows a long relationship between the Council and the bank's CEO, Mohammed Al-Delaimy.

It says the bank, established in 2005 is one of the leading private banks in Iraq, offering comprehensive banking services to individuals and businesses, with a strong focus on digital innovation, financial inclusion, and developing financial products tailored to the evolving needs of the Iraqi market.  link

Tishwash:  Arab Summit: Iraq Returns to Leadership Role, Baghdad Transforms into Influential Regional Player

Political researcher Abbas Ghadir said on Thursday (May 15, 2025) that holding the Arab League meeting in Baghdad will make Iraq an influential regional player.

Ghadir told Baghdad Today, "The Baghdad summit will make Iraq an influential regional player, especially since the summit will issue important decisions regarding the political and security changes and challenges facing the region at various levels. This summit will make Baghdad a major player in confronting crises and challenges and an effective player in finding diplomatic solutions."

He added, "Holding the Baghdad summit with a large Arab presence confirms that Iraq has been able to regain its leadership and pivotal role in the region, especially after the government worked to distance Iraq from the cycle of war, adopted a policy of balance, and refused to be part of any regional or international axes throughout previous dangerous crises."

Today, Wednesday (May 14, 2025), Foreign Minister Fuad Hussein announced the details of the Arab Summit to be held in Baghdad next Saturday.

At a press conference on the Arab Summit in Baghdad, attended by a Baghdad Today correspondent, Hussein said, "The preparatory committee for the Arab Summit in Baghdad has accomplished significant work," noting that "the participation of leaders and officials in these exceptional circumstances confirms their desire to unify the Arab position."

He added, "Twenty Arab organizations are participating in this summit, in addition to international organizations, including the Secretary-General of the United Nations, the Secretary-General of the Organization of Islamic Cooperation, and the guest of honor, the Prime Minister of Spain."

Hussein continued, "Iraq granted 1,000 entry visas to summit attendees, and there are approximately 300 journalists from Iraqi institutions and 200 from the international press," noting that "16 meetings of the Arab Summit's Supreme Administrative Committee were held in Baghdad."

He stressed that "Iraq is proud to have hosted three summits: the Arab League Council, the fifth session of the Development Summit, and the leaders' summit between Iraq, Egypt, and Jordan," emphasizing that "Iraq is now the chair of the 77th Summit and China."

He explained that "the Arab League Council meeting at the ministerial level will submit its decisions to the summit," explaining that "on the day of the summit, there will be two morning sessions, one at the summit level and the other the fifth development summit. The two summits will issue the Baghdad Declaration, including an immediate halt to the events in Gaza."

Hussein pointed out that "the sister Arab countries presented their visions on the items up for discussion during the summit," adding that "it is hoped that political initiatives will be put forward to establish an Arab center for combating terrorism, organized crime, drugs, and reconstruction."

Regarding Trump's decision, Hussein said, "The announcement of lifting sanctions on the Syrian people is an important step, and what is happening in Riyadh and what will happen in Baghdad is an integrative phase." He emphasized that "there will be decisions regarding the Syrian situation and the situation of Arab countries in general."

Regarding the PKK's decision, Hussein explained, "We are pleased with the PKK's decision to lay down its arms," ​​indicating that "there will be cooperation between Baghdad and Ankara to address the PKK's decision  link

************

Tishwash:  Iraq: Concluding Statement of the 2025 IMF Article IV Mission

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

An International Monetary Fund (IMF) mission, led by Mr. Jean-Guillaume Poulain, met with the Iraqi authorities in Amman and Baghdad during May 4–13 to conduct the 2025 Article IV consultation. The following statement was issued at the end of the mission:

A highly uncertain global environment, falling oil prices, and acute financing pressures, are taking a toll on economic activity and exacerbating Iraq’s existing vulnerabilities, calling for urgent measures to preserve fiscal and external stability. These include containing the fiscal deficit by mobilizing non-oil tax revenues and reining in the public wage bill, completing the restructuring of state-owned banks, and promoting private sector growth, by reforming the labor market, improving the business environment, enhancing governance and fighting corruption. Building on recent progress, the Central Bank of Iraq (CBI) should continue modernizing the banking system and supporting private banks in expanding their corresponding banking relationships.

Recent Economic Developments, Outlook and Risks

The non-oil sector grew at a slower pace last year and inflation remained subdued. Following a very strong growth of 13.8 percent in 2023, Iraq's non-oil GDP is expected to have considerably moderated to 2.5 percent in 2024, driven by a slowdown in public investment and in the services sector, as well as a weaker trade balance. The agriculture, manufacturing, and construction sectors remained resilient, benefiting from post-drought recovery, expanded refining capacity, and strong growth in credit to households. The decline in oil production weighed on overall growth, which contracted by 2.3 percent for the year. Inflation dropped to 2.7 percent by end-2024, amid lower food price inflation and liquidity absorption from the CBI.

The fiscal position has deteriorated, along with external balances. The 2024 fiscal deficit is estimated at 4.2 percent of GDP, compared to 1.1 percent in 2023, reflecting rising spending on wages and salaries and energy purchases. Financing constraints have led to reemergence of arrears notably in energy and capital expenditure. On the external front, the current account surplus narrowed sharply from 7.5 percent to 2 percent of GDP, due to a surge in goods imports. Nonetheless, external buffers remain strong, with reserves at US$100.3 billion at end-2024—covering over 12 months of imports.

Non-oil growth is projected to remain subdued in 2025 amid a challenging global environment and financing constraints. Non-oil GDP is projected to slow down to 1 percent this year as the impact of falling oil prices and financing constraints weigh on government spending and consumer sentiment. The current account is expected to weaken considerably in 2025 primarily due to declining oil export revenues. The deterioration in the external position is projected to weigh on foreign reserves.

Policy Priorities

Iraq’s vulnerabilities have increased in recent years due to a large fiscal expansion. Beside weighing on prospects of private sector-led growth, current public employment policies and resulting wage costs are unsustainable given Iraq’s low non-oil tax base. Accordingly, dependence on oil revenues has worsened, and the oil price required to balance the budget increased to around $84 in 2024, up from $54 in 2020.

These challenges have been exacerbated by the sharp decline in oil prices in 2025, requiring an urgent policy response. In the very short-term, the authorities should review current and capital spending plans for 2025 and limit or postpone all non-essential expenditure. At the same time, there may be scope to increase non-oil revenues by revising customs duties as well as introducing or raising excise taxes. The authorities should also explore options to diversify the creditors base for increasing financing availability. Monetary financing of the deficit should be avoided as it could fuel inflation, drain FX reserves, and weaken the CBI’s balance sheet.

More broadly, a sizable fiscal consolidation is needed to mitigate macro-fiscal risks, ensure debt sustainability, and rebuild fiscal buffers. On the revenue side, besides customs duties and excise taxes, there is scope to gradually reform personal income tax by limiting exemptions and increasing rates. Strengthening tax administration—through digitalization, improved enforcement, and better collection—is essential. A more effective tax administration should allow for eventually introducing a general sales tax. On the spending side, curbing current expenditures, particularly via comprehensive wage bill reforms, limiting mandatory hiring, and adopting attrition rule, would yield significant savings. Recent efforts to better target the public distribution system are welcome, but there is scope to further improve targeting and eventually shift to cash-based social safety nets. Finally, it is urgent to reform the public pension system through raising the retirement age and reducing both the accrual and replacement rates is needed to enhance its sustainability.

Implementing these reforms would also create fiscal space to increase capital spending. Expanding non-oil investment, especially in trade and transportation infrastructure should help economic diversification. Substantial investments are also required to modernize the electricity sector and develop natural gas resources, both of which are essential for improving energy security and reducing dependence on gas imports. Improved procurement, public financial management, and corruption control would enhance the effectiveness of any additional public investment.

Further efforts are needed to mop up excess liquidity in order to improve monetary policy transmission. While the CBI has made progress in absorbing excess liquidity, additional adjustments could enhance the effectiveness of the framework. Key measures include increasing the issuance of CB-bills, focusing on the short maturity (14-day) at the policy rate, revising size limits on individual banks’ bids, and improving liquidity forecasting tools and practices. To safeguard its balance sheet and preserve credibility, the CBI should continue to avoid financing the government deficit.

The mission commended the CBI for the successful transition to the new trade finance system. Trade finance is now fully processed by commercial banks through their correspondent banking relationships. This has also supported the recent decline in the spread between the official and parallel market exchange rates. Nonetheless, further efforts are needed to further reduce the spread, including by imposing Iraqi dinar usage for car and real estate transactions, improving customs controls to curb smuggling, and simplifying FX access.

While initial steps to reform state-owned banks are encouraging, broader efforts are needed to strengthen the financial sector. The restructuring plan for state-owned banks should be finalized without delay, encompassing treatment of non-performing loans, and recapitalization needs. In parallel, the mission welcomed progress in digitalization and the authorities’ intention to undertake a comprehensive banking sector overhaul. Reforms should include enhancing corporate governance, digital infrastructure, and cybersecurity, while promoting a stronger role for private banks. Efforts to enhance AML/CFT measures by tackling the deficiencies identified in the MENAFATF Mutual Evaluation report should continue.

Chronic power shortages, electricity losses and excessive tariff subsidization continue to weigh on the economy. Addressing inefficiencies in the electricity sector is important for fiscal sustainability and improving productivity. In 2024, distribution losses reached 55 percent, driven by theft and illegal connections, leading to significant financial losses. The authorities are deploying smart meters and have introduced other measures to enhance billing and collection. However, progress should be accelerated. Once collection substantially improves, achieving cost recovery will also require electricity tariff increases, with carefully calibrated subsidies targeted to low-income users. Recent disruptions in electricity imports from Iran further underscore the need for diversified supply and the development of gas projects.

Combating corruption and governance weaknesses is imperative to support economic development. Steps taken in the implementation and upgrade of the national anticorruption strategy and the improvements in corruption perception indices are positive developments. However, corruption remains a significant hurdle for growth. Strengthening accountability frameworks for the operation of state-owned and private enterprises in the oil, electricity and construction sectors is critical, and thorough compliance with Extractives Industries Transparency Initiative standards and the enactment of the law on Transparency and Access to Information should be prioritized. Additionally, aligning anticorruption legal frameworks with international covenants and best practice, and strengthening the independence of the judiciary are essential for effective enforcement and for the protection of economic rights.

A comprehensive structural reform agenda is essential to unlock growth potential. The mission estimates that a comprehensive set of reforms covering the labor market, business regulation, the financial sector and governance could double non-oil potential GDP growth over the medium term. On labor market, priorities include increasing labor force participation, particularly among women, by improving female education and further reducing barriers to their work and mobility, and reforming public sector hiring, which distort labor markets and reduce productivity. Efforts to better align skills with labor market needs should intensify. More generally, simplifying regulations and reducing bureaucratic impediments in e.g. business registration or tax administration should increase participation in the formal economy and help private sector development.

The mission would like to thank the Iraqi authorities and various stakeholders for their excellent hospitality and cooperation and candid discussions during the mission.  link

Mot:  Don't Ya Love the Encouragement Ya get frum da Net!!!!  

Mot:  ... If she says the bonus word run  

MilitiaMan & Crew: Iraqi Dinar News Update-Rare Earths-IMF-NewTrade Financial System-$Trillions-Exchange Rate Oriented

MilitiaMan & Crew:  Iraqi Dinar News Update-Rare Earths-IMF-NewTrade Financial System-$Trillions-Exchange Rate Oriented

5-15-2025

 The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=htIzx2xUuto

Iraq Economic News And Points To Ponder Thursday Evening 5-15-25

Iraq: Concluding Statement Of The 2025 IMF Article IV Mission

May 15, 2025   A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

An International Monetary Fund (IMF) mission, led by Mr. Jean-Guillaume Poulain, met with the Iraqi authorities in Amman and Baghdad during May 4–13 to conduct the 2025 Article IV consultation. The following statement was issued at the end of the mission:

A highly uncertain global environment, falling oil prices, and acute financing pressures, are taking a toll on economic activity and exacerbating Iraq’s existing vulnerabilities, calling for urgent measures to preserve fiscal and external stability.

These include containing the fiscal deficit by mobilizing non-oil tax revenues and reining in the public wage bill, completing the restructuring of state-owned banks, and promoting private sector growth, by reforming the labor market, improving the business environment, enhancing governance and fighting corruption.

Building on recent progress, the Central Bank of Iraq (CBI) should continue modernizing the banking system and supporting private banks in expanding their corresponding banking relationships.

Recent Economic Developments, Outlook and Risks

The non-oil sector grew at a slower pace last year and inflation remained subdued. Following a very strong growth of 13.8 percent in 2023, Iraq's non-oil GDP is expected to have considerably moderated to 2.5 percent in 2024, driven by a slowdown in public investment and in the services sector, as well as a weaker trade balance.

The agriculture, manufacturing, and construction sectors remained resilient, benefiting from post-drought recovery, expanded refining capacity, and strong growth in credit to households.

The decline in oil production weighed on overall growth, which contracted by 2.3 percent for the year. Inflation dropped to 2.7 percent by end-2024, amid lower food price inflation and liquidity absorption from the CBI.

The fiscal position has deteriorated, along with external balances. The 2024 fiscal deficit is estimated at 4.2 percent of GDP, compared to 1.1 percent in 2023, reflecting rising spending on wages and salaries and energy purchases. Financing constraints have led to reemergence of arrears notably in energy and capital expenditure.

On the external front, the current account surplus narrowed sharply from 7.5 percent to 2 percent of GDP, due to a surge in goods imports. Nonetheless, external buffers remain strong, with reserves at US$100.3 billion at end-2024—covering over 12 months of imports.

Non-oil growth is projected to remain subdued in 2025 amid a challenging global environment and financing constraints. Non-oil GDP is projected to slow down to 1 percent this year as the impact of falling oil prices and financing constraints weigh on government spending and consumer sentiment.

 The current account is expected to weaken considerably in 2025 primarily due to declining oil export revenues. The deterioration in the external position is projected to weigh on foreign reserves.

Policy Priorities

Iraq’s vulnerabilities have increased in recent years due to a large fiscal expansion. Beside weighing on prospects of private sector-led growth, current public employment policies and resulting wage costs are unsustainable given Iraq’s low non-oil tax base. Accordingly, dependence on oil revenues has worsened, and the oil price required to balance the budget increased to around $84 in 2024, up from $54 in 2020.

These challenges have been exacerbated by the sharp decline in oil prices in 2025, requiring an urgent policy response. In the very short-term, the authorities should review current and capital spending plans for 2025 and limit or postpone all non-essential expenditure.

At the same time, there may be scope to increase non-oil revenues by revising customs duties as well as introducing or raising excise taxes.

The authorities should also explore options to diversify the creditors base for increasing financing availability. Monetary financing of the deficit should be avoided as it could fuel inflation, drain FX reserves, and weaken the CBI’s balance sheet.

More broadly, a sizable fiscal consolidation is needed to mitigate macro-fiscal risks, ensure debt sustainability, and rebuild fiscal buffers. On the revenue side, besides customs duties and excise taxes, there is scope to gradually reform personal income tax by limiting exemptions and increasing rates.

Strengthening tax administration—through digitalization, improved enforcement, and better collection—is essential. A more effective tax administration should allow for eventually introducing a general sales tax.

On the spending side, curbing current expenditures, particularly via comprehensive wage bill reforms, limiting mandatory hiring, and adopting attrition rule, would yield significant savings. Recent efforts to better target the public distribution system are welcome, but there is scope to further improve targeting and eventually shift to cash-based social safety nets.

Finally, it is urgent to reform the public pension system through raising the retirement age and reducing both the accrual and replacement rates is needed to enhance its sustainability.

Implementing these reforms would also create fiscal space to increase capital spending. Expanding non-oil investment, especially in trade and transportation infrastructure should help economic diversification.

Substantial investments are also required to modernize the electricity sector and develop natural gas resources, both of which are essential for improving energy security and reducing dependence on gas imports. Improved procurement, public financial management, and corruption control would enhance the effectiveness of any additional public investment.

Further efforts are needed to mop up excess liquidity in order to improve monetary policy transmission. While the CBI has made progress in absorbing excess liquidity, additional adjustments could enhance the effectiveness of the framework.

Key measures include increasing the issuance of CB-bills, focusing on the short maturity (14-day) at the policy rate, revising size limits on individual banks’ bids, and improving liquidity forecasting tools and practices. To safeguard its balance sheet and preserve credibility, the CBI should continue to avoid financing the government deficit.

The mission commended the CBI for the successful transition to the new trade finance system. Trade finance is now fully processed by commercial banks through their correspondent banking relationships. This has also supported the recent decline in the spread between the official and parallel market exchange rates.

Nonetheless, further efforts are needed to further reduce the spread, including by imposing Iraqi dinar usage for car and real estate transactions, improving customs controls to curb smuggling, and simplifying FX access.

While initial steps to reform state-owned banks are encouraging, broader efforts are needed to strengthen the financial sector. The restructuring plan for state-owned banks should be finalized without delay, encompassing treatment of non-performing loans, and recapitalization needs.

In parallel, the mission welcomed progress in digitalization and the authorities’ intention to undertake a comprehensive banking sector overhaul. Reforms should include enhancing corporate governance, digital infrastructure, and cybersecurity, while promoting a stronger role for private banks.

 Efforts to enhance AML/CFT measures by tackling the deficiencies identified in the MENAFATF Mutual Evaluation report should continue.

Chronic power shortages, electricity losses and excessive tariff subsidization continue to weigh on the economy. Addressing inefficiencies in the electricity sector is important for fiscal sustainability and improving productivity. In 2024, distribution losses reached 55 percent, driven by theft and illegal connections, leading to significant financial losses.

The authorities are deploying smart meters and have introduced other measures to enhance billing and collection. However, progress should be accelerated. Once collection substantially improves, achieving cost recovery will also require electricity tariff increases, with carefully calibrated subsidies targeted to low-income users.

Recent disruptions in electricity imports from Iran further underscore the need for diversified supply and the development of gas projects.

Combating corruption and governance weaknesses is imperative to support economic development. Steps taken in the implementation and upgrade of the national anticorruption strategy and the improvements in corruption perception indices are positive developments. However, corruption remains a significant hurdle for growth.

Strengthening accountability frameworks for the operation of state-owned and private enterprises in the oil, electricity and construction sectors is critical, and thorough compliance with Extractives Industries Transparency Initiative standards and the enactment of the law on Transparency and Access to Information should be prioritized.

Additionally, aligning anticorruption legal frameworks with international covenants and best practice, and strengthening the independence of the judiciary are essential for effective enforcement and for the protection of economic rights.

A comprehensive structural reform agenda is essential to unlock growth potential. The mission estimates that a comprehensive set of reforms covering the labor market, business regulation, the financial sector and governance could double non-oil potential GDP growth over the medium term.

On labor market, priorities include increasing labor force participation, particularly among women, by improving female education and further reducing barriers to their work and mobility, and reforming public sector hiring, which distort labor markets and reduce productivity.

Efforts to better align skills with labor market needs should intensify. More generally, simplifying regulations and reducing bureaucratic impediments in e.g. business registration or tax administration should increase participation in the formal economy and help private sector development.

The mission would like to thank the Iraqi authorities and various stakeholders for their excellent hospitality and cooperation and candid discussions during the mission.

IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Mayada Ghazala

Phone: +1 202 623-7100Email: MEDIA@IMF.org

https://www.imf.org/en/News/Articles/2025/05/15/mcs-iraq-concluding-statement-of-the-2025-imf-article-iv-mission?cid=em-COM-123-50132

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Thursday Evening 5-15-25

Good Evening Dinar Recaps,

Trump’s Crypto Ties Pose Challenge for Stablecoin Legislation, Says Coinbase Exec

📍 Coinbase legal chief Paul Grewal says President Trump’s growing presence in crypto adds “a certain level of challenge” to bipartisan progress on digital asset legislation.

As the U.S. Senate prepares for another vote on the GENIUS Act — a stablecoin-focused bill aimed at regulating the digital dollar landscape — Coinbase Chief Legal Officer Paul Grewal has flagged President Donald Trump’s personal ventures into crypto as a complicating factor in building bipartisan consensus.

Speaking at the Consensus conference in Toronto on May 15, Grewal acknowledged that recent political tensions and concerns from both parties, especially Democrats, are slowing progress.

“The discussion around the president's support for a certain memecoin or two and other efforts does add a certain level of challenge to the effort to get Democrats and Republicans aligned,” Grewal noted. Still, he expressed confidence that both chambers of Congress would “sort all that out.”

🏛️ GENIUS Act Still Moving Forward

Despite the friction, lawmakers remain poised to vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the coming days.

Recent reports suggest that Democrats were able to secure key revisions to the bill that include:

• Consumer protection enhancements

• Anti-Money Laundering (AML) safeguards

• National security provisions

Senator Kirsten Gillibrand (D-NY), one of the bill’s original sponsors, previously confirmed that language directly referencing Trump’s crypto ventures — including World Liberty Financial and the USD1 stablecoin — had been removed to help revive bipartisan support.

⚖️ Crypto Politics and Regulatory Headwinds

President Trump’s increasing crypto footprint — including meme coins, a stablecoin project, and a mining company — has triggered strong reactions on Capitol Hill. Prominent Democrats such as Senator Elizabeth Warren have pointed to these ventures as potential ethical hazards.

Grewal acknowledged that political entanglements may delay efforts to develop a comprehensive regulatory framework for stablecoins and the broader crypto market but emphasized that legislative momentum is still building.

“We’re going to learn a lot in the next few days about the appetite in Congress to move forward,” he said.

🧱 What’s Next?

After stablecoins, attention may shift toward a crypto market structure bill currently under review in the House. That bill builds on the FIT21 Act passed in 2024 and could face similar partisan scrutiny tied to “Trump’s crypto corruption,” according to some Democratic representatives.

Still, Grewal and other industry leaders are hopeful that the recent adjustments to the GENIUS Act will unlock further bipartisan cooperation as crypto regulation becomes a key legislative issue heading into the 2026 midterm elections.

@ Newshounds News™

🔗 Source: Cointelegraph

~~~~~~~~~

Central Bank of Russia Ranks Bitcoin as Top Global Investment Since 2022

📊 Bitcoin outpaces gold, stocks, and bonds with a 121.3% return, according to the Russian central bank.

In a move that underscores Bitcoin’s rising credibility on the world stage, the Central Bank of Russia has officially recognized Bitcoin as the top-performing global investment since 2022.

A new report from the bank shows that Bitcoin delivered:

• 38% returns over the past 12 months

• 121.3% cumulative return since 2022

This places it well ahead of traditional assets such as:

• Gold

• Equities

• Bonds

• The S&P 500 index

📉 Volatility Still a Factor

While Bitcoin outperformed all other assets, the Russian central bank also acknowledged its short-term volatility. Between January and April 2025, Bitcoin experienced a drop of 18.6%, underperforming most other asset classes.

The only assets that fared worse during this stretch were:

• Dollar-denominated savings

• The S&P 500

However, Bitcoin rebounded strongly in April, posting an 11.2% monthly gain, once again pulling ahead in the global investment race.

🚀 From Speculative to Strategic

The report highlights Bitcoin’s evolution from a speculative asset to a serious contender in global investment portfolios. Since 2022, Bitcoin has surged from under $20,000 to nearly $110,000, driven by:

• Institutional adoption

• Regulatory milestones

• Approval of spot BTC ETFs in the U.S. and Hong Kong

Even political factors are fueling this growth. President Donald Trump’s pro-crypto shift has added momentum to Bitcoin’s narrative as a strategic reserve asset.

🌍 Global Recognition and Adoption

Countries and companies alike are responding:

• Ukraine and Kyrgyzstan are exploring digital assets at the national level.

• Financial giants like Cantor Fitzgerald are integrating crypto strategies into broader financial operations.

Bitcoin is increasingly being viewed as:

• A hedge against macroeconomic risk

• A tool for expanding global financial access

• A potential long-term store of value, despite volatility

🔍 Summary

The Central Bank of Russia’s findings place Bitcoin squarely in the spotlight—not just as a volatile crypto asset but as a top-tier global investment with increasing legitimacy across the financial world.

@ Newshounds News™
🔗 Source: CryptoSlate

~~~~~~~~~

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Iraq Economic News And Points To Ponder Thursday Afternoon 5-15-25

46 Iraqi Business Leaders Participate In The Investment Summit In Washington

Thursday, May 15, 2025 11:43 | Economic Number of reads: 290  Baghdad/ NINA / 46 Iraqi business leaders participated in the investment summit in Washington.

The US Embassy in Baghdad said in a statement: “A delegation of 46 business leaders from Iraq, including the Kurdistan Region, arrived in the United States to participate in the annual SelectUSA Investment Summit, which was held in the Washington, D.C., area from May 11 to 14.”

It added: “The delegation included a variety of sectors, including technology, cybersecurity, tourism, hospitality, food and beverage, franchising, agriculture, construction, investment, pharmaceuticals, real estate, and oil and gas,” explaining that “the wide variety of opportunities aims to promote cooperation and investment between the United States and Iraq.”

The SelectUSA Investment Summit is the largest event dedicated to promoting foreign direct investment in the United States.

The summit brings together international investors, representatives from state and local governments, and government officials to facilitate investment in the American economy. The SelectUSA Summit is organized by the Department of Commerce and provides essential information and services to help foreign investors navigate the investment process in the United States. /End
https://ninanews.com/Website/News/Details?key=1226982

Foreign Ministry To NINA: The Government Is Keen To Achieve These Priorities At The Baghdad Summit

Thursday, May 15, 2025, 3:44 PM | Politics Number of reads: 227  Baghdad / NINA / The Ministry of Foreign Affairs affirmed the Iraqi government's keenness to achieve important priorities during the Arab Summit, most notably strengthening joint Arab action with our brothers to match the challenges facing the Arab world and the region in general.

Undersecretary of the Ministry of Foreign Affairs Hisham Al-Alawi said in an interview with the National Iraqi News Agency ( NINA ) today, Thursday, that "there are a set of Iraqi messages that we are keen to send and mature through the Arab Summit meetings in the capital, Baghdad, including highlighting the positive developments witnessed by Iraq politically, security-wise and economically,

emphasizing the continuation of Iraq's rational policy in playing a positive role with our brothers, pushing towards ending wars, disputes and conflicts within the region, and creating an interactive climate that allows for political reforms and provides platforms for joint dialogue."

He added: "Economically, we seek to demonstrate Iraq's ability, after achieving political and security stability, to provide important opportunities and investments for our brothers and other countries outside the region, leading to economic integration that contributes to the development of various sectors, including energy, agriculture, industry, tourism, the financial and banking sectors, and the private sector, and reflects positively on providing job opportunities for Iraqi and Arab youth together.

 We also seek to enhance Arab cooperation in the field of combating extremism and terrorism, and push towards greater educational and cultural cooperation between Arab countries, as Iraqi universities have provided great opportunities for Arab youth to study in Iraq, including the "Study in Iraq" initiative, which attracted about 5,000 Arab and foreign students, which contributes to strengthening relations between Iraqi and Arab universities and reflects positively on other sectors."

Regarding the level of attendance and representation of Arab leaders at the summit, the Undersecretary of the Ministry of Foreign Affairs confirmed that "the level of presidential attendance at the Baghdad summit is good, and the number of leaders will exceed half, which is no less than the level of attendance at the Manama summit last year.

These are factors of optimism that we will emerge from a successful and different summit that pushes towards strengthening joint Arab action."

Regarding the outcomes of these meetings, Al-Alawi explained that "the meetings of the Ministerial Economic and Social Council, on Monday and Tuesday, focused on developmental, economic and social aspects. As for the delegates' meeting yesterday, Wednesday, and the foreign ministers' meeting today, Thursday, they are preparing draft recommendations and decisions for the Baghdad Declaration at the conclusion of the summit meeting, which will cover comprehensive political, technical and economic aspects, in addition to the Palestinian issue and support for Gaza.

There are also Iraqi and Arab initiatives that we expect to be approved and reflected in the formulation of the draft Baghdad Declaration at the conclusion of the meetings of Arab leaders and kings next Saturday."

He added, "The timing of the meetings and the circumstances in Iraq and the region provide great opportunities to work with our brothers to enhance joint cooperation, confront the challenges facing the Arab world politically and security-wise, and the state of instability in a number of Arab countries, as well as enhance Arab efforts to combat extremism and terrorism, increase Arab-Arab investments and partnerships, implement joint projects, provide Arab food security, and develop important sectors."

 He pointed out that "Iraq's leadership of the Arab group for a full year, as well as the economic development summit, as Iraq will lead the work of the Economic and Social Council for four years, will provide great opportunities to work with our brothers." /End
https://ninanews.com/Website/News/Details?Key=1227033

Gold Rebounds Slightly Ahead Of Fresh US Indicators

Money and Business  Economy News - Follow-up  Gold prices rose slightly in early trading Thursday as investors seized the opportunity after the yellow metal hit a one-month low in the previous session. Markets awaited US Producer Price Index data for further clues on the direction of the economy.

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Spot gold rose 0.2 percent to $3,183.20 per ounce by 0033 GMT. U.S. gold futures fell 0.1 percent to $3,185.60, according to Reuters data.

Spot gold fell in the previous session to its lowest level since April 10 after a trade agreement between Washington and Beijing eased the trade war between the world's two largest economies. https://economy-news.net/content.php?id=55479

Sharp Drop In Oil Prices

Time: 2025/05/15 09:07:09 Read: 1,875 times  {Economic: Al Furat News} Oil prices fell sharply during Asian trading on Thursday.

The decline came after a report that Iran had expressed openness to a nuclear agreement with US President Donald Trump, while data showing an unexpected rise in US crude oil inventories raised concerns about oversupply.

Brent crude futures due in June reached $65.04 per barrel, while West Texas Intermediate crude futures fell to $61.62 per barrel.  https://alforatnews.iq/news/%D8%A7%D9%86%D8%AE%D9%81%D8%A7%D8%B6-%D8%AD%D8%A7%D8%AF-%D9%84%D9%84%D9%86%D9%81%D8%B7

The Dollar Continues To Rise In Baghdad And Erbil

Economy | 11:33 - 05/15/2025   Mawazine News – Baghdad  The US dollar exchange rate rose on Thursday morning in the markets of Baghdad and Erbil.

The dollar price rose on the Al-Kifah and Al-Harithiya stock exchanges to 142,400 Iraqi dinars for every $100, while yesterday, Wednesday, it recorded 142,350 dinars for every $100.

Selling prices in exchange shops in the local markets in Baghdad rose, with the selling price reaching 143,500 Iraqi dinars for every $100, and the buying price reaching 141,500 dinars for every $100. https://www.mawazin.net/Details.aspx?jimare=261462

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