Next Sunday: an extraordinary session of the Council of Ministers to discuss the budget schedules

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On Tuesday, Iraqi Prime Minister Mohammed Shia Al-Sudani chaired the 20th regular session of the Council of Ministers, in which the general situation in the country was discussed, along with several vital files included in the government program.

Al-Sudani's media office stated that the Prime Minister directed an extraordinary council session to be held next Sunday, May 19, to discuss the federal budget for 2024.

The current budget marks Iraq's largest in history, estimated at approximately $153 billion annually, with the Kurdistan Region anticipated to receive around 12.6% of the total.

The dollar is reeling from a fatal blow and there are fears of a collapse of the dinar

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The fluctuation in dollar prices and the rise in gold prices has significantly affected the contraction of the commercial market in terms of imports and purchases of goods, amid confusion in opinions between the return of the rise in green and its decline to the official price set by the state of 1,320 dinars per dollar.

The price of the dollar in the parallel market is currently 1,460 dinars, whether higher or lower than this rate. The Central Bank of Iraq's cancellation of the currency {auction} window at the end of 2024 and Washington's sanctions on Iraqi banks have opened a door of doubts that will end up placing the dollar in the face of speculation, which will make it vulnerable to demand after the recovery of the Iraqi dinar with government orders that limited dealing in the dinar to restrict the movement of the dollar.

The Iraqi Central Bank informs France of the plan to restructure government banks

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A statement from the bank stated that, “The Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, received the French Ambassador to Baghdad, Patrick Durel, and the meeting dealt with ways to strengthen banking relations between the two countries, and His Excellency the Governor gave a comprehensive explanation of the relations and economic conditions, as well as the government’s directions.” “In consolidating the foundations of the national economy and diversifying it in light of the state of security stability achieved in Iraq.”

The meeting also clarified "the plan to restructure government banks, which enjoys support and regular follow-up by the Prime Minister, indicating that this plan will change the map of the banking sector and its reality in Iraq."

Simplifies account opening and transfer processes.. Al-Rafidain explains the importance of adopting a comprehensive banking system

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The bank's general manager, Ali Karim Hussein, told the Iraqi News Agency (INA): "Since we took over the management of the bank, Al-Rafidain Bank has begun activating the comprehensive banking system in its branches spread across government institutions and border crossings where the collection system is large." He explained, "The comprehensive banking system will simplify the procedures for opening accounts as well as transfer operations, so that the customer will be able to manage his account without accessing the bank."

Association of Banks: Depriving Iraqi banks of the dollar is temporary and will be lifted

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Tariq explained in a press statement that “an important part of the challenges facing the private banking sector is “depriving a group of banks from dealing in the US dollar.”

He pointed out that this deprivation “does not fall under sanctions, but rather stops the use of the dollar by banks,” stressing that it “negatively affects” these banks, noting that there is “a clear direction from the government and the central bank to solve these problems.

Al-Sudani: We are keen to develop the work of the TBI Bank and address the problems it faces

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The Prime Minister’s media office said in a statement, seen by Al-Iqtisad News, that “Al-Sudani chaired a meeting to discuss and evaluate the work of the Iraqi Trade Bank TBI, and its contributions to the financing and economic development of the country, in the presence of the Minister of Finance, the Governor of the Central Bank of Iraq, and the Director-General.” The bank, and a number of advisors.

Al-Sudani pointed out, according to the statement, “the importance of the role of the Iraqi Trade Bank in supporting government institutions and the private sector, and its role, as a banking institution, in supporting and revitalizing the Iraqi economy,” stressing the government’s keenness to develop the bank’s work and

His financial advisor: The dollar exchange rate in the parallel market is gradually approaching the official one

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Today, Thursday, Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Saleh, explained the dangers of the exchange rate fluctuations in the event that demands for floating the dinar are met, while confirming that the dollar exchange rate in the parallel market is gradually approaching the official one.

Economist reassures: Financial liquidity is available and there are no risks to the Iraqi dinar

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Economic affairs expert Safwan Qusay confirmed that financial liquidity is available and there are no high risks regarding the existence of the Iraqi dinar. Qusay said, in a televised interview followed by Mawazine News, that “oil revenues rose during the first three months of this year, and this is thanks to the current government’s policy and with Muhammad Shiaa Al-Sudani personally supervising this success.”

A fixed or fixed exchange system for the Iraqi dinar

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Rentier countries seek to adopt a fixed exchange system (pegged) to a strong foreign currency or several currencies (a basket of currencies) to ensure the stability of foreign transactions, as long as they export one depleted commodity and import many goods and services, and they are called “small open countries.”

Despite the agreement that the floating currency system is considered the best in terms of relative response to the performance of the external economy and the lack of need for sometimes excessive use of foreign reserves to defend the official value in the peg system, the abundance of reserves and the need for stability in foreign transactions have a major impact on the economy. Overall, rentier countries are likely to adopt a fixed exchange rate system.

Prime Minister's Advisor: We will see the dollar fall on the black market soon

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Al-Shammari said in a press statement received by Al-Maalouma, that “the classification of financial institutions in Iraq according to World Bank reports is positive, and the Central Bank’s classification is A++ and exceeds the Emirati classification.”

He added, "Iraq wants to join the international banking system, and on this basis the government has taken positive measures in this regard."

He confirmed, "The increasing percentage of merchants joining the platform rose from 28% to 78%," noting that "the demand for the official dollar has increased, and we will witness its decline on the black market in the coming period."