Iraq Economic News and Points to Ponder Saturday Evening 2-1-25

Economist: The Iraqi Market Is Centralized And 40 Investment Laws Need To Be Reviewed And Amended

Time: 2025/01/31 19:48:47 Read: 2,055 times  {Economic: Al Furat News} Economic expert Abdul Rahman Al Mashhadani confirmed today, Friday, that the problem facing foreign investors in Iraq is not limited to the security and political situation only, but rather it is a complex problem.
Al-Mashhadani added to Al-Furat News Agency that "talking about attracting investments is not limited to a specific region, but rather depends on the general situation in the country."

He explained that "the investment climate in Iraq requires several factors, including the political factor and the conflict between the blocs, in addition to the investment laws that need to be reviewed, as their number has reached about 40 laws."

He pointed out that "there are paragraphs in these laws related to the economy in general."

Al-Mashhadani pointed out that "the Iraqi government is moving towards a capitalist economy and following a market economy according to the principle of supply and demand, which means that the government cannot interfere in all economic details."

He pointed out that "the current laws were enacted a long time ago, and are not compatible with the nature of the current stage."  LINK

Iraq Faces Crucial Economic Choices.. Will It Resort To Austerity?

Time: 2025/02/01 16:21:45 Read: 3,180 times  {Economic: Al Furat News} In light of the escalating economic challenges, Iraq finds itself at a financial crossroads that requires decisive decisions that may affect the future of public spending. With increasing pressures on financial resources and rising deficit levels, questions are increasing about the possibility of the government resorting to austerity policies to control the financial balance.

Economic expert Salah Nouri considered the austerity policy as an immediate solution that the government could resort to if the Ministry of Finance faces difficulty in providing liquidity due to risks including the decline in oil prices.

Nouri told {Euphrates News} that: "The Central Bank relies on providing liquidity in the Iraqi dinar as much as it has international reserves {gold, dollar, euro}; but this is specific to the Central Bank, which uses it to implement monetary policy to stabilize the dollar exchange rate by meeting external imports.

" He added, "This process went through several stages {currency auction, electronic platform, transfer through limited foreign banks} after the agreement with the US Federal Reserve."

Nouri continued, "As for the liquidity for the Ministry of Finance to implement the general budget, it depends on the amounts of oil revenues, as it buys the dollar at the current exchange rate approved in the budget {1310} dinars, and thus the decline in oil revenues makes it difficult for the Ministry of Finance to implement the federal general budget, and this is what the government is currently facing, represented by the Ministry of Finance."

He pointed out that "the Central Bank's reserves will be indirectly affected if oil sales revenues decrease, and in return, the unregulated import process continues, which the Central Bank meets with dollars, and will use part of the international reserve {the Central Bank's dollar stock}

 The economic expert believes that "the Ministry of Finance will face difficulty in providing liquidity due to the risks {the decline in oil prices, the amount of oil exports through OPEC Plus, problems with the region, the US Federal Reserve's strict policy and monitoring of dollar transfers}".

He noted that "the government resorted to an austerity budget by canceling unnecessary expenses and regulating other items as possible short-term solutions, but in the long term, which is supposed to be implemented for many years, supporting the agricultural sector to provide agricultural crops and basic food products; to reduce imports and provide hard currency, in addition to industrial production, whether through the government sector or the private sector."  LINK

Minister Of Commerce: The Government Has Adopted Strategic Projects And The Ministry Has Facilitated Procedures For Local And Foreign Investors.

Saturday 01 February 2025 | Economic Number of readings: 164  Baghdad / NINA / Minister of Trade Athir Al-Ghariri confirmed today, Saturday, that the government has achieved self-sufficiency in wheat and adopted strategic projects, while indicating that the ministry has facilitated procedures for local and foreign investors.

Al-Ghariri said in a speech during the opening of the 48th session of the Baghdad International Fair: "The government has achieved self-sufficiency in wheat."

He added, "We have facilitated procedures for local and foreign investors," indicating that "the government has adopted strategic projects." https://ninanews.com/Website/News/Details?key=1183214

"Investment - Development - Prosperity" .. The 48th Session Of The Baghdad International Fair Begins This Evening

Saturday 01 February 2025 | Economic Number of readings: 291  Baghdad / NINA / The activities of the 48th session of the Baghdad International Fair will start at six o'clock this evening, Saturday, in the capital, Baghdad, under the slogan "Investment - Development - Prosperity", with the participation of 20 Arab and European countries, and more than 1000 local and international companies, under the patronage of Prime Minister Mohammed Shia Al-Sudani and organized by the Ministry of Trade. The exhibition will continue daily until the seventh of February. https://ninanews.com/Website/News/Details?key=1183155

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