Financial Advisor: Iraq Has The Highest Foreign Exchange Reserves In Its History And Its Economy Is Entering A Boom Phase
Buratha News Agency 25-06-19 The Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, confirmed on Thursday that Iraq is witnessing economic stability and developmental prosperity, with low inflation and unemployment and high growth, while pointing out that foreign exchange reserves are the highest in Iraq’s history.
Salih told the official agency, “Iraq is facing strong economic challenges in the geopolitical complexes due to the ongoing war in the Middle East,” noting that “this may be related to the movements of Iraq’s trade balance with the world, especially oil exports and energy markets.
While the Gulf and the passage of oil and gas through the Strait of Hormuz represent approximately 30 percent of the flow of energy from its sources to the world, Iraq currently exports 99 percent of its oil through the Gulf and the aforementioned strait to world markets, especially Asian economies and markets.”
He also explained that “the increase in the price of exported crude oil, which jumped by nearly $10, before the outbreak of the recent war between Iran and the Zionist occupation, is considered a ‘positive price shock’.
However, at the same time, caution must be exercised regarding the consequences of the war and the safety of oil routes in the Gulf, without forgetting that the import trade has also begun to bear risks represented by the rise in shipping and insurance costs and rising prices, which may increase with the escalation of the levels of conflict across the Gulf as well.”
He also explained that “the positive external price factors in the value of oil exports, which are linked to geopolitics, should not be the basis for sustainable fiscal policies based on oil revenues, which constitute a central component of public revenues and shape the 2025 budget schedules, unless stability is achieved and the threat of war in all its forms is eliminated.”
Regarding the government’s delay in submitting the federal general budget tables for the year 2025, Saleh explained that “one of the requirements stipulated in the Triennial General Budget Law No. 13 of 2023 is due to the amendment of some paragraphs of the Federal General Budget Law for the three years 2023, 2024 and 2025 last February of this year, which were originally covered by Law No. 13 of 2023.”
He explained that “this required systematic, practical and oversight communication between the House of Representatives and the government and its bodies represented by the Ministry of Finance to accurately and comprehensively monitor federal revenues and all financial procedures, especially the management of current operational and investment expenditures without interruption, as well as deficit financing.”
He pointed out that “the delay in submitting the schedules was influenced by external factors, which are merely reflections of external geopolitical shocks, whether global trade wars, the energy markets experiencing some price contraction before their sudden improvement, or the beginning of indicators of a downward and upward oil asset cycle that should have been addressed by amending some spending rules.”
Saleh also pointed out that, “Despite the ongoing concerns raised during the first half of the current fiscal year, regarding complete financial stability, our country’s financial situation has not shown any concerns.
This is due to sound management and the high degree of compatibility between the country’s fiscal and monetary policies, as monetary policy supports the country’s financial policy with its foreign currency reserves, which are the highest in Iraq’s history.”
He also emphasized that “during such periods, monetary policy plays its role in stimulating the domestic financing market with the strength of reserves, particularly in supporting and stabilizing liquidity and general cash flows in the country.
This is done to ensure government development programs in the diverse and comprehensive infrastructure projects that our country is witnessing, given their role in stimulating the labor market and businesses.”
He continued, “All concerns have been dispelled due to the mutual and cohesive immunities within the framework of the economic policy itself and the implementation of the government’s curriculum, coupled with high financial excellence and discipline.”
He added, “The delay in submitting the 2025 budget schedules to the House of Representatives did not prevent the implementation of the public finance program, which is covered by the basics of the current general budget law.
However, external circumstances, successive international economic shocks in the energy market, and the amendment to the current law No. 13, as we mentioned, regarding the issue of assessing the costs of extracting and marketing the region’s oil, are what required time for partial adjustment in some of the constants and variables related to revenues, public expenditures, and deficit management.”
He pointed out that “these tables will be submitted in the coming period based on the provisions of Article 77/Second of Law 13, as mentioned above, which requires the House of Representatives to approve the general budget tables for the current fiscal year, which are now at the end of their preparations for presentation to the House.”
He concluded by explaining that “the strength of the coordination between the government’s general policies in the financial and monetary fields has dispelled all those concerns about the management of problems resulting from the global economic situation.
Rather, it is working in the interest of the sustainability of economic stability and sustainable development in our country, which has witnessed years of remarkable stability and development prosperity, whether through low inflation rates, low unemployment rates, or high levels of growth.
This is especially true after the launch of the philosophy of strategic partnership between the state’s economy and the market, within the social market strategy that calls for protecting the stability of citizens’ livelihoods and supporting the role of the market in investment, reconstruction, and development together.” https://burathanews.com/arabic/economic/461671
Ministry Of Reconstruction {To Euphrates News}: All Projects In The First Package Will Be Completed By The End Of This Year.
Time: 2025/06/19 18:14:54 Reading: 180 times {Local: Al Furat News} The Ministry of Construction and Municipalities announced today, Thursday, that all projects in the first package will be completed by the end of this year.
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Ministry spokesman Nabil Al-Saffar told Furat News, “All of these projects will be inaugurated by the end of the year, particularly the remaining projects in the first package.”
Al-Saffar added, “The delay in approving the budget schedules has not affected the smooth flow of traffic relief projects, despite the halt in the release of financial allocations.” LINK
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