Bitcoin falls below $86,000 amid investor reluctance

Cryptocurrencies saw a sharp decline on Monday, reviving a widespread sell-off that appeared to have subsided in previous days.

Bitcoin fell as much as 6% to below $86,000 during early Asian trading, while Ether dropped more than 7% to below $2,800, and Solana recorded a 7.8% decline.

This decline comes after a weeks-long sell-off that began when nearly $19 billion in debt-funded bets were liquidated in early October, days after Bitcoin hit a record high of $126,251.

The easing of selling pressure last week allowed the cryptocurrency to recover some of its gains, rising above $90,000 before falling back again.

Shafaq.com

US Deputy Secretary of State arrives in Baghdad

U.S. Deputy Assistant Secretary of State for Resource Management Michael Regas arrived in the Iraqi capital on a visit aimed at strengthening the partnership between Baghdad and Washington and supporting joint efforts to promote sovereignty, stability and prosperity in the country.

At Baghdad International Airport, Rigas was received by the Chargé d’Affaires of the US Embassy in Iraq, Joshua Harris, according to a post by the embassy on the X platform.

According to the blog post, this visit strengthens relations between the United States and Iraq by engaging with leaders and local communities to support shared goals related to achieving sovereignty and prosperity.

An official statement from the US State Department, translated by Shafaq News Agency, on November 25, confirmed that Regas would hold a series of meetings with senior Iraqi officials to discuss political, economic and security cooperation files, in addition to reviewing the work of US diplomatic facilities in Iraq.

According to the statement, Rigas will also participate in the opening of the new US Consulate General in Erbil, in steps that, according to Washington, confirm its long-term commitment to supporting Iraq and the US partnership with the Kurdistan Region.

Shafaq.com

IMF figures expose the hidden truth

IMF figures reveal the truth: A privileged minority controls the lion’s share of Iraq’s budget.
An Iraqi economist says that 20% of employees take 40% of the funds allocated for salaries, and that these go to the salaries of presidents and senior officials, both current and retired, while the salaries of all segments of the population are included in the remaining percentage of the budget, in its investment and operational aspects, attributing this to the International Monetary Fund.

Expert Duraid Al-Anzi adds in a media interview that all salaries are delayed except for the salaries of parliamentarians and the three presidencies, and the retirement salary of the presidents of the republic is not delayed, as are the retirement salaries of parliamentarians, and these expenses cannot be covered under any government, according to him.

So how does this happen? That is, millions of ordinary Iraqi employees and retirees have small salaries within the remaining 60% of the budget, of which 40% goes to salaries for a small number of officials and parliamentarians?

The point raised regarding the distribution of salaries of employees and officials in the Iraqi budget, as stated by the economic expert, quoting the International Monetary Fund, is a fundamental and worrying issue, and summarizes one of the structural problems in the management of public finances in Iraq; the difference here lies between the “numbers” and the “rates of salaries and allowances.”

The discrepancy observed between the small percentages of salaries for millions of ordinary employees and retirees and the enormous sums for a small number of officials and parliamentarians can be explained by an analysis of the expert’s statements and other relevant reports.

With reference to the salaries of senior officials (20%) for employees in Iraqi state departments, if we calculate their salaries and allowances, and they are the category associated with the three presidencies for the year 2024, for example, with a budget of $155 billion, it becomes clear to us the huge size of the large expenditure on those salaries, meaning that 40 percent amounts to $62 billion, of the size of the budget that was approved by the House of Representatives within the three-year budget.

Because of the enormity of the figures, some observers say there may be confusion or discrepancies in the reported figures, referring to what the research results show: that a small group of employees controls a huge amount.

But experts say that this huge amount (for 20% of officials, amounting to $62 billion of the budget) for a small group is due to the fact that the exorbitant salaries and allowances of senior officials and special grades (presidents, ministers, parliamentarians, undersecretaries, directors-general), advisors, and those of their predecessors among retired officials, are very high, and include huge financial allowances, bonuses, and very generous retirement rewards.

The number of deputy ministers, directors general, those in similar positions, and advisors is very large in Iraq compared to other countries, which increases the amount of money allocated to this category.

The latest economic reports and analyses of the Iraqi three-year budget (2023-2025) show the structural challenge related to the mass of salaries and allowances, which explains the disparity in spending ratios on employees and officials.

Salaries and allowances (including the salaries of Kurdistan Region employees) represent about 54% of the total planned federal budget.

According to some figures, this percentage increases, as estimates indicate that total salaries constitute between 65% and 67% of the state’s total actual spending. However, the salaries of employees in the Kurdistan Region, for example, are usually cut, and the distribution of their salaries and the salaries of other categories is irregular, while the salaries of officials continue as usual.

That percentage goes to millions of people, as the huge numbers of employees (who constitute the largest percentage of state employees) consume this percentage of the budget, even though their individual salaries may be modest compared to the salaries of the higher ranks.

Economic analysis focuses on the point that the salaries of millions of ordinary employees (despite their low individual salaries) constitute a large financial mass due to their large numbers.

The salaries and allowances of a small number of senior officials also constitute a huge financial bloc due to the astronomical rise in their individual salaries and retirement benefits.

But it is inequality that raises controversy regarding fairness in the distribution of wealth and the management of public funds, and is often cited as an example of the depletion of operating expenses and the concentration of spending on salaries and senior positions at the expense of development projects and services.

The financial percentages mentioned by expert Duraid Al-Anzi (40% for officials and parliamentarians) reveal a severe structural imbalance in the wage system, even if these percentages represent previous estimates or figures.

Officials and parliamentarians (a small number of the population) control 40% of the budget (or a large portion of salaries). This includes exorbitant salary and retirement benefits, and the salaries, allowances, and privileges of special grades (the three presidencies, ministers, parliamentarians, and undersecretaries), which are exceptionally high. The salary of one individual in this category is equivalent to the salary of tens or hundreds of ordinary employees, allowing a limited number of individuals to consume a very large share of the budget.

Ordinary employees (millions of people) have their share of what remains (and even if we assume that it is the largest part of the payroll at 60%), the explanation is that ordinary employees consume a large share due to numerical inflation (job redundancy), while officials consume a large share due to inflation in the individual value of salary and allowances (fictitious salaries).

This also explains expert Al-Anzi’s comment that “the salaries of parliamentarians and the three presidencies” are not delayed, because they represent financial obligations of the highest priority and are authorized to the highest allocations by decisions made by officials for themselves.

Shafaq.com

The Electoral Commission announces the date for sending the election results to the Federal Court.

The Independent High Electoral Commission announced on Monday that it had completed all procedures for appeals against the election results and sent them to the judicial body. It also set a date for sending the results to the Federal Court. The head of the commission’s media team, Imad Jamil, stated in a statement to the official agency that “sending the complete election results to the Federal Court for ratification will take place after the judicial body has finished considering all the appeals.”

Jamil explained that “the Commission has completed all appeals and submitted its recommendations regarding them,” indicating that “the work is now with the judicial body, which cannot be restricted to a specific period of ten days, as some appeals include technical or legal procedures that require them to be returned to the Commission for clarification or to complete the required technical procedures.”

He added that “the judicial body will be bound by the legal period of ten days, after receiving the last appeal from the commission and completing the procedures related to it.”

He also pointed out that “the judicial body is continuing to perform its work, and that a group of appeals that reached the commission have had the recommendations of the Board of Commissioners approved regarding their response.”

Burathanews.com

A leader in the Azm movement: Muthanna al-Samarrai is the most likely candidate for Speaker of Parliament.

A leader in the Al-Azm Alliance suggested on Sunday that the alliance’s leader, Muthanna al-Samarrai, is the most likely candidate to obtain the position of Speaker of the next House of Representatives, ruling out the return of former Speaker Mohammed al-Halbousi for several reasons.

The leader of the coalition, Issa Al-Sayer, told Shafaq News Agency that “the behind-the-scenes meetings and dialogues of the National Political Council of the Sunni component revolve around the nomination of the next Speaker of Parliament, and according to the data, a new candidate will be nominated for the presidency of the next parliamentary session,” noting that “the closest is the leader of the Azm Alliance, Muthanna Al-Samarrai.”

Al-Sayer ruled out Al-Halbousi’s return to the presidency of the legislative authority “for multiple reasons,” which he declined to elaborate on.

He explained that “more than one candidate will compete for the presidency of the parliament, including Mohammed Nouri Al-Karbouli in addition to Muthanna Al-Samarrai.”

Mohammed Abbas, spokesman for the Sovereignty Alliance, revealed earlier this week that there are some secret names being discussed behind the scenes as potential candidates for the presidency of the Iraqi parliament.

Prior to that, Jamal al-Karbouli, leader of the Al-Hal Party, hinted at a new figure assuming the presidency of the Iraqi parliament, as al-Karbouli said, in a post he published on the “X” platform, that “the gavel of parliament will be in a hand that has never held it before.”

The Sunni alliances and parties that won the elections announced last Sunday the establishment of the “National Political Council”.

This came during an expanded meeting held at the initiative and invitation of the head of the Sovereignty Alliance, Khamis al-Khanjar, in Baghdad, with the aim of unifying visions and positions regarding major national issues and strengthening joint work between political leaders and blocs, according to a statement issued at the time.

According to the final election results, Sunni forces won 77 seats, making the reshaping of alliances a crucial factor in the negotiations to form the next government.

Shafaq.com

National electricity service has returned to normal, and the “Ronaki” project is now offering 24-hour electricity in Kurdistan.

The Ministry of Electricity in the Kurdistan Regional Government announced on Sunday that the electricity supply has returned to normal, including to the “Ronaki” project, in all cities of the region.

The ministry said in a brief statement received by Shafaq News Agency that “the national electricity has returned to normal and the ‘Ronaki’ project has been re-supplied with electricity 24 hours a day.”

The Ministry of Electricity in the Kurdistan Region announced this morning the resumption of gas pumping operations from the Kormor gas field to the region’s power generation stations .

The ministry said in a statement that at 2:00 AM today, gas transport from the Kormor field to power stations was resumed .

The statement added that the power stations will be restarted, noting that the electricity situation is witnessing a marked improvement, and the situation will return to normal completely within 24 hours .

On the night of the 26th to the 27th of this month, the Kormor gas field in the Chamchamal district of Sulaymaniyah Governorate was attacked by “drones,” which led to a fire breaking out in one of the fields and the cessation of gas supplies to power generation stations, according to the Ministries of Natural Resources and Electricity in the Kurdistan Region.

Shafaq.com

The Central Bank identifies 3 solutions to address the debt issue

The Central Bank of Iraq identified three solutions to address the country’s debt problem. While noting that a large part of the internal debt could be addressed through joint understandings, it stressed the need to diversify non-oil revenues and increase investments, asserting that these approaches would transform the economy from a rentier economy to a diversified and productive one.

Earlier, a number of economic experts downplayed the risks of Iraq’s internal and external public debt, stressing that its ratio is still within the safe international standard range, indicating that the strength of the foreign currency reserves has contributed to the stability of Iraq’s financial situation.

Amid this, the Prime Minister’s financial advisor, Dr. Mazhar Muhammad Saleh, stated in a statement to Al-Sabah last week that “only $3 billion remains of the Paris Club debt, and it will be settled by 2028, and that 47% of the internal debt remains within the investment portfolio of the Central Bank of Iraq, and it is covered as cash liquidity or cash liabilities at a rate of more than 100% in foreign currency, thanks to the strength of Iraq’s foreign reserves.”

The official spokesperson for the Central Bank, Alaa Al-Fahd, explained to Al-Sabah newspaper that “all countries, including the United States of America, have internal and external debts,” indicating that debt is not considered negative for the economy if it is directed towards investment spending, because it generates

For additional entry.

Al-Fahd continued, “The debts in Iraq are to cover the operational budget deficit, meaning they are directed towards consumption, and therefore they are a future constraint on debt repayment.”

And its installments and interest.”

Al-Fahd identified three ways to address the country’s debt, most notably diversifying non-oil revenues, increasing investments, and partnering with the private sector, which could reduce dependence on oil, while acknowledging the difficulty of achieving the latter option in a short period of time.

Al-Fahd explained that the external debt amounts to $13 billion, while the internal debt amounts to 91 trillion dinars, noting that a large part of it can be dealt with because the banks are government-owned and state-owned, ruling out that these debts pose any danger to the economic reality, but continuing to rely on debt constitutes a warning bell, according to his description.

For his part, Dr. Ahmed Al-Hathal, Professor of Economics at Al-Mustansiriya University, said that the problem does not lie in the size of the debt as much as it lies in the way it is financed.

Al-Hathal added to Al-Sabah that “financing the deficit through the monetary institution by discounting bonds and financing current spending is the most dangerous path because it leads to unproductive monetary expansion that raises inflation and puts pressure on the exchange rate, and it also weakens the balance sheet of the central bank after it has come to own a large part of the internal debt, which is a worrying situation in any economy.”

He explained that the danger lies in the rentier nature of the economy, with inflated operating spending, stagnant non-oil revenues, and the inability of productive sectors to generate added value. This makes domestic borrowing for consumption, rather than investment, a future burden, because the state will pay off the debt burden by putting pressure on the limited tax capacity of the national taxpaying power, while the risks move from banks to public finances and then directly to the currency.

Al-Hathal explained that the accumulation of non-tradable bonds limits the ability of the monetary policymaker to manage liquidity and increases the fragility of the financial position, while inflationary financing leads to greater pressure on foreign reserves and depletes stabilization tools, making the currency vulnerable to decline with any oil shock.

He pointed out that talking about diversifying revenues and increasing investment remains logical in principle, but it does not address the real problem of continuing to finance the deficit in a way that generates inflation, increases monetary expansion, and weakens the ability to stabilize the currency, at a time when obligations are rising year after year without real structural reform.

Alsabaah.iq

Al-Rasheed Bank relaunches credit card advances with a maximum limit of 15 million dinars.

Al-Rasheed Bank announced today, Monday, the relaunch of its electronic loan service through the credit card with a maximum limit of 15 million dinars.

The bank said in a statement received by Al-Maalomah Agency that “it has been decided to relaunch the electronic advances service through the credit card, in a step that enhances its digital services and facilitates financial facilities for employees.”

He added that “the service is directed to employees of state departments and members of the Ministries of Interior and Defense whose salaries have been deposited with the bank, where they can apply to obtain a loan equivalent to five salaries with a maximum of 15 million Iraqi dinars,” noting that “the application is done electronically only through the Al-Rasheed Bank application.”

He noted that “this measure comes within the framework of the bank’s move towards digital transformation and enhancing access to modern financial services in a secure and fast manner that keeps pace with developments in the sector.”

Almaalomah.me

Al-Halbousi is out of office… Political norms thwart his ambitions for the presidency and parliament.

The head of the Progress Party, Mohammed al-Halbousi, failed to obtain support and consensus from the Sunni forces and the rest of the political parties to win the position of President of the Republic, given that the prevailing political custom confirms that this position is the share of the Kurdish component, in addition to the rejection of al-Halbousi’s presence as a candidate for the position of Speaker of Parliament after he was dismissed from the position on charges of forgery in the last parliamentary session. Consequently, al-Halbousi will be excluded from the circle of presidential positions despite obtaining the first rank in terms of the number of parliamentary seats within the Sunni component.

Fadi Al-Lahibi, a member of the Al-Azm Alliance, told Al-Maalouma, “The possibility of Al-Halbousi returning to the presidency of Parliament is unlikely given the prevailing sentiment to avoid repeating the past experience, which resulted in many complications in the political landscape. Many political forces, including Sunni and Kurdish groups, support the selection of one of the Al-Azm Alliance’s candidates for Speaker of Parliament, considering him the most open to all forces and with clear positions.” He added, “Al-Halbousi’s return to the Speakership is unlikely, and many forces have begun to state this. The next phase is expected to be different, but ultimately, it is the Sunni forces, including the Al-Azm Alliance, who determine who assumes the Speakership and whose candidate is put forward.”

For his part, Muhammad al-Fahdawi, a leader in the United Anbar Alliance, told Al-Maalouma that “the political process since its inception has adopted the principle of consensus and political norms in distributing the three presidencies, and that any change or replacement in these positions requires consensus among all components, in addition to the acceptance of a specific component represented by its political forces, as al-Halbousi’s desire to grant the Sunni component the presidency of the republic is a difficult step, and does not have the approval of the majority of Sunni forces, as the position is protocol-based and does not achieve real gains for the component, but rather falls within personal interests.”

In a related context, political analyst Yassin Aziz told Al-Maalomah that “the Sunni component suffers from service, economic, and security problems that require urgent solutions, making the competition for the presidency less important compared to these more pressing issues. The three presidential positions in Iraq were previously agreed upon by the political forces according to the norms followed since 2005, and changing this norm requires a comprehensive national agreement, which does not seem possible at present.” He pointed out that “the Sunni component does not stand united behind Mohammed al-Halbousi’s insistence on the presidency, and a number of Sunni forces believe that persisting in this position could exacerbate internal divisions and affect their stance in the government formation negotiations.”

Almaalomah.me

After a sudden rise, the Central Bank of Iraq reassures markets: The dinar is stable.

The Central Bank of Iraq confirmed on Monday that there is no intention to change the exchange rate of the Iraqi dinar against the US dollar, stressing its continued support for the stability of the exchange rate, and indicating that statements related to changing it aim to confuse the market, stir up speculation and affect the stability of the national economy.

The statement from the Central Bank of Iraq comes in conjunction with a sudden rise in the exchange rate of the dollar in Iraqi markets today, amid economic controversy over the reasons for the rise and its repercussions on the general budget and the local economy.

The bank said in a statement received by Shafaq News Agency that it has made tangible progress in its strategic objectives related to maintaining the stability of the general price level, noting that the inflation rate has fallen to historically low levels, the lowest in the region, thanks to monetary policies and well-considered measures despite the economic challenges.

The statement added that Bank Law No. (56) of 2004, and in particular Article 1/4/A, defines its basic tasks in formulating and implementing monetary policy, including exchange rate policy, stressing that there is no intention to amend the exchange rate of the dinar in line with its goal of ensuring price stability.

The bank noted its continued support for exchange rate stability thanks to ideal levels of foreign currency and gold reserves, while ensuring coverage of all banks’ requests for external reinforcement in US dollars and other foreign currencies such as the Chinese yuan, Turkish lira, Indian rupee, and UAE dirham.

He also confirmed that bank card settlements and personal transfers via MoneyGram and Western Union, as well as cash sales for travel purposes, are continuing, noting that there is no pressure on current reserves.

The statement reiterated that any external statements regarding changing the dinar exchange rate do not reflect the position of the Central Bank and represent opinions aimed at confusing the market and inciting speculation.

Shafaq News Agency published a report on Monday regarding the sudden rise of the dollar, addressing the challenges and concerns associated with the rise and its potential effects, amid differing expert opinions on government measures, with agreement on the need to adopt a comprehensive package of reforms instead of relying on a single tool.

Shafaq.com