A government advisor explains how Iraq can liquidate its foreign debts

The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, told Al-Furat News Agency, “A positive indicator of the decline in external obligations, and foreign loans in the future will be limited when needed to projects that generate income and employ work.”

He stated, “Many of the committed and undrawn external debts have been liquidated, which means that Iraq follows the {golden rule} in borrowing, which stipulates that the returns from using external loans spent on productive projects exceed the cost of the loan itself, and this is what is called {productive external loans} “.

Government spokesman Bassem Al-Awadi announced yesterday that “the government took a series of executive measures and adopted a package of financial decisions that resulted in reducing the external public debt by more than 50%, bringing the debt down from $19.729 billion in late 2022, to $15.976 billion.” In 2023, reaching approximately $8.9 billion in the current year.”

He stated, “These financial steps, (which included stopping a number of borrowing operations due to their delay and lack of productivity, organizing and managing debts and auditing them, and restructuring some debts and directing them to create strategic projects), aim to prevent the Iraqi economy from mortgaging obligations that may affect, in the future, the political decision.” Or in the path of national development, which coincides with an urban renaissance and infrastructure reconstruction, which opens the way to a promising future and a revitalized economy, in which our current and future generations perform best and obtain the greatest opportunities.

Alforatnews.iq

Sudanese Advisor: Iraq is at the forefront of countries with foreign investment

Information / Baghdad… On Tuesday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed government measures that put Iraq at the forefront of countries in foreign investment, while indicating that the development road and Al-Faw port strengthened the government’s vision in encouraging foreign investments.

Saleh told the official agency and his follower, “Al-Ma’louma”, that “The Iraqi economy is characterized by two basic features that help give it preference in foreign investment. First, cash flows in foreign currency are reflected in the current account of the balance of payments relative to the gross domestic product, which is estimated by international economic and national centers at a surplus estimated at (positive). 7%) Iraq also ranks second in OPEC oil production and fifth in the world in that production.

He added: “As for the second advantage, there is a wide range of investment opportunities available provided by transportation, digital communications, housing and construction activities, which end with encouraging partnership between the state and the private sector in the manufacturing industry and various technological fields, the latest of which was the Cabinet’s adoption of the facilitating instructions in its last meeting that encourages the existing partnership between… the state and the private sector.

This is based on the principle of mutual win-win and is an attractive signal for foreign direct investment,” pointing out that “the investment law frames the provision of an attractive investment environment for investors, especially the economic surplus trends of the countries of the region and their orientation towards profitable investments in Iraq in the industrial, agricultural and other fields, which gives… A positive signal to international investment in general to attract towards Iraq and investigate promising opportunities there.”

He stressed that “the Development Road Project, as a development strategy that relies on the idea of ​​development-leading projects, constituted the central call for international companies to participate, starting from the port of Al-Faw and ending with the Turkish border for economic connection with Europe, which means that the state’s economic vision is based on encouraging direct foreign investments in development activity in Iraq, which enjoys Its natural resources are abundant in the ground.

He explained, “Iraq is ranked ninth in the world in terms of natural resources underground, and ranked first in reserves per square kilometer of investable natural resources such as (phosphate, sulfur, and other important reserves).”

Almaalomah.me

Iraq’s financial revenues exceed 11 trillion dinars within a month

Shafaq News / The Ministry of Finance revealed, on Tuesday, that the volume of Iraqi revenues in the federal budget during a month exceeded 11 trillion dinars, confirming that the oil contribution to the budget had decreased to 89%.

Shafaq News Agency followed the data and tables issued by the Ministry of Finance in April for the January accounts of the current fiscal year, which showed that oil is still the main resource for Iraq’s general budget, reaching 89%, which indicates that the rentier economy is the basis of the country’s general budget.

The financial tables indicated that the total revenues in January amounted to 11 trillion, 527 billion, 453 million, 587 thousand and 580 dinars, indicating that the total expenditures with advances amounted to one trillion, 252 billion, 731 million and 419 thousand dinars.

According to the financial tables, oil revenues amounted to 10 trillion and 275 billion and 776 million and 460 thousand dinars, which constitute 89% of the general budget, while non-oil revenues amounted to one trillion and 266 billion and 307 million and 956 thousand dinars.

The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed in an interview with Shafaq News Agency in March 2021 that the reasons for the economy remaining rentier are due to wars and the imposition of the economic blockade on Iraq during the past era and the political conflicts we are witnessing today, which led to the dispersion of… for economic resources.

The Iraqi state’s continued reliance on oil as the sole source of the general budget puts Iraq at risk from the global crises that occur from time to time because oil is affected by them, which makes the country turn every time to cover the deficit through borrowing from abroad or within, and thus indicates the inability to Managing state funds effectively, and the inability to find alternative financing solutions.

Shafaq.com

Al-Araji: Al-Sudani’s visit to America will establish a new era in relations between the two countries

Shafaq News / The Iraqi National Security Advisor, Qasim Al-Araji, said on Tuesday that the visit of Prime Minister Muhammad Shia Al-Sudani to the United States of America will “establish a new era” in relations between Baghdad and Washington, while the American ambassador to Baghdad described the visit as “very important.” .

This came during Al-Araji’s reception of the US Ambassador to Baghdad, Alina Romanowski, according to a statement received by Shafaq News Agency.

Al-Araji discussed with the American Ambassador the latest developments in the political and security situation at the regional and international levels, and the prospects for cooperation and partnership between Iraq and the United States of America.

During the meeting, issues and files of common interest were also discussed, including the Al-Hawl camp file and continued cooperation in the field of combating terrorism.

During the meeting, Al-Araji expressed his optimism about the upcoming visit of Prime Minister Muhammad Shiaa Al-Sudani to Washington, noting that the visit will establish a new era in relations between the two countries.

Al-Araji also pointed out that the strategic framework agreement between Iraq and the United States of America is important and comprehensive and does not concern only the security aspect, but rather includes all fields, stressing the importance of countries withdrawing their nationals from Al-Hawl camp and drying up the human, financial and media sources of terrorism.

For her part, the American Ambassador confirmed that the Prime Minister’s visit to Washington is very important and that the two countries are moving towards a bilateral security agreement, and that the committees of the two countries are continuing meetings regarding the mission of the international coalition.

Shafaq.com

Iraqi Dinar / US Dollar auction results for today 4-2-2024

Results of the foreign currency selling window for Tuesday 4/2/2024

Advertisement No. (5098)

The amount:

Total amounts of transfers abroad (transfers, credits)
217,727,041

Total cash withdrawals
32,290,000

Total total sales
250,017,041

Note that: The selling price of documentary credits and international settlements for electronic cards is ( 1310 ) dinars per dollar.

The selling price for transfer amounts abroad is ( 1310 ) dinars per dollar.
The cash selling price is ( 1305 ) dinars per dollar.

cbi.iq/currency_auction

The secret of the strength of the Kuwaiti dinar…the strongest currency in the world

Kuwait issued its own currency, which is now considered the strongest in the world, on April 1, 1961. This was before its independence was completed by officially getting rid of British protection on June 19, 1961.

Preparation for the issuance of the first series of the Kuwaiti national currency, the “Dinar,” began with the issuance of the Kuwaiti Currency Law and the establishment of the National Monetary Council in 1960, while the circulation of national currency notes began to replace the previous currency, the “Gulf Rupee,” on April 1, 1961.

The Kuwaiti dinar has maintained its position as the most expensive currency in the world for many years, and its exchange rate against the dollar is currently 1 to 3.25, while one Kuwaiti dinar is equal to 3.03 euros and 2.59 British pounds.

The secret of the strength of the Kuwaiti dinar…the strongest currency in the world
The strength of the Kuwaiti dinar is due to several factors, including its enormous oil reserves, which the authorities currently estimate at about 100 billion barrels. This country, which is small in area and sparsely populated, occupies third place in terms of oil production in the Gulf region after Saudi Arabia and Iran, in addition to its wealth of natural gas. The quantity produced last year amounted to approximately 5 billion cubic metres.

Moreover, Kuwaiti oil is distinguished by its quality, homogeneity, unique chemical composition, and low sulfur content, which is why it is described as the most ideal for refining operations.

Kuwait’s richness in oil, in addition to its strategic location, has been reflected in its citizens, and it is considered one of the richest countries in the world in terms of per capita GDP.

The secret of the strength of the Kuwaiti dinar…the strongest currency in the world
Kuwait was able to maintain relative stability, and despite the huge material losses that resulted from Iraq’s invasion of it on August 2, 1990 and its occupation of it for nearly 7 months, its national currency did not decline or lose its advantage.

Regarding the history of the Kuwaiti dinar, the exchange rate of the new national currency was initially calculated by focusing on the de facto British pound until the exchange rate of the Kuwaiti national currency was later changed in 1975, when the National Monetary Council took this decision in the wake of the British Bank abandoning the exchange rate. Fixed row for pounds.

The secret of the strength of the Kuwaiti dinar…the strongest currency in the world
Over the next 28 years, the Kuwaiti dinar exchange rate was calculated using a basket of multiple currencies until 2003. Since then, a fixed exchange rate for the dinar against the dollar has been set at a ratio of 1 to 3, with a maximum permissible fluctuation of 3.5 percent.

Four years after this step, Kuwait stopped pegging its national currency to the US dollar and began calculating the dinar’s exchange rate against a basket of currencies that was not disclosed in 2007. Until now, the Kuwaiti dinar has a fixed exchange rate that protects it from brokers and speculators, and makes it, along with other economic features, the most expensive and strongest in the world.

Arabic.rt.com

Saleh: The 2024 budget schedules are being prepared according to the tripartite budget

The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed that the financial tables for the 2024 budget are being prepared in accordance with the legislation of the three financial budgets.

Saleh told {Al-Furat News} agency, “The proposed financial schedules being prepared by the executive authority today are based on the financial legislation in force and approved in accordance with the aforementioned tripartite budget law.”

He stated that “presenting the financial tables for the fiscal year 2024 to obtain parliamentary approval for those tables, which include public revenues and expenditures, undoubtedly embodies a legislative path that we see in all cases as more flexible in the legislative process because the financial principles and constants have become an integral part of the Federal General Budget Law No. 13 of 2023 (the Tripartite), which is the law that was originally legislated by the House of Representatives and by a vote of the legislative authority and published in the Official Gazette last year.”

A few days ago, the Council of Ministers received the budget schedules from the Ministry of Finance, and began working on them to sign them and send them later to the House of Representatives.

The Parliamentary Finance Committee expects to resolve the budget schedules this month.

Alforatnews.iq

MP: The 2024 budget schedules will reach Parliament next week

Information/Private… Member of the Parliamentary Finance Committee, MP Mudar Al-Karawi, confirmed on Tuesday that the budget schedules will arrive next week.

Al-Karawi said in an interview with Al-Maalouma, “The 2024 budget tables are almost ready with the government, and we expect them to arrive in the House of Representatives next week,” pointing out that “the tables are very important, but it is too early to determine what changes can be made, but in a way.” “Generally, there are efforts to reduce the fiscal deficit gap.”

He added, “Voting on the 2024 budget tables requires at least 3 weeks to complete the consultations and conduct the first and second readings to reach the vote, and we may need a higher time limit,” noting that “the tables will be audited before being presented to the vote.”

He pointed out, “There are efforts to include the rights of many segments and groups, including contracts, within the framework of completing procedures in coordination with the government.”

The schedules included financial disbursement mechanisms and the release of governorate budgets to finance projects and services.

Almaalomah.me

The “Central Bank” warns against closing Iraq’s account with the US Federal Reserve: it will put our money at risk

Shafaq News / On Monday, the Central Bank of Iraq revealed the legal basis for depositing oil revenues in the US Federal Reserve.

According to documents issued by the bank and viewed by Shafaq News Agency, “The legal basis for depositing oil revenues in the Federal Reserve Bank of New York in the IRAQ2 account alternative to the DFI account is the expiration of the extension of the Executive Order issued by the US President No. 13303 issued in March 2003.” According to which immunity was granted to the Iraqi funds deposited in the Iraqi Development Account (DFI) at the time, and the end of the United Nations protection over Iraqi funds that was granted to it under UN Security Council Resolution No. 1483 of 2003 after the issuance of UN Resolution 1956 at the end of 2010.

The documents added, “Accordingly, an IRAQ2 account was opened, which is used to deposit funds from Iraqi crude oil exports, and they are transferred to the account of the Central Bank of Iraq at the Federal Reserve Bank within 24 hours of receiving these amounts to ensure that they are not exposed to the claims of creditors, as they are funds belonging to the Iraqi government derived from the export of crude oil.” This mechanism was organized through a (memorandum of understanding) signed between the Iraqi Ministry of Finance and the Central Bank of Iraq on 6/2/2014 for the purpose of organizing the work of the IRAQ2 alternative account for the Development Fund for Iraq, and this memorandum is the legal basis for establishing the aforementioned account.

She continued, “The immunity granted in accordance with these two documents includes sovereign funds only and does not include funds used for commercial purposes.”

The documents explained, “With regard to the answer to the third paragraph, foreign reserves may be deposited with several external parties, central banks and financial institutions, and not only in the Federal Reserve Bank, and interest rates vary according to the investment segment, the duration of the investment, and the institution with which the investment is made, in addition to the fact that the transport company is Orient is the company contracted by this bank to transport dollar shipments from the Federal Reserve Bank to Baghdad International Airport, with an insurance amount of (414,000) US dollars (four hundred and fourteen thousand US dollars per shipment, and transportation fees of (216,310) US dollars (two hundred and sixteen thousand three hundred and ten US dollars, Department of Parliamentary Affairs, Department of Parliamentary Oversight.”

She continued, “It is not possible to transfer the revenues from the sale of oil to the interior due to the impossibility of carrying out financial operations for Iraq if the funds are at home, and closing our account with the Federal Reserve Bank could expose Iraq to the risk of international claims, in addition to the inability to settle our payments in US dollars without the presence of… An account at the Federal Reserve Bank or other U.S. commercial bank.

Shafaq.com

Iraqi Dinar / US Dollar auction results for today 3-31-2024

Results of the foreign currency selling window for Sunday 3/31/2024

Advertisement No. (5096)

The amount:

Total amounts of transfers abroad (transfers, credits)
239,109,928

Total cash withdrawals
13,310,000

Total total sales
252,419,928

Note that: The selling price of documentary credits and international settlements for electronic cards is ( 1310 ) dinars per dollar.

The selling price for transfer amounts abroad is ( 1310 ) dinars per dollar.
The cash selling price is ( 1305 ) dinars per dollar.

cbi.iq/currency_auction