Clare: IMF Discusses Strengthening Iraqi Dinar
12th March 2025 By John Lee.
Iraq’s delegation concluded its meetings with the International Monetary Fund (IMF) in Amman (February 24-26), with participants including Minister of Finance Taif Sami and the Governor of the Central Bank of Iraq (CBI).
Discussions focused on Iraq’s economic performance and sustainable growth prospects, with the IMF acknowledging the progress made.
Key discussions included:
Non-oil GDP growth of 5% in 2024, driven by agriculture expansion and increased public spending, with 3.5% growth expected in 2025.
Reduced dependence on oil revenues, improving economic diversification and stability.
Review of actual 2024 expenditures and 2025 revenue forecasts, alongside strategies for deficit financing.
Public debt strategy update, ensuring fiscal sustainability and investor confidence in government bonds.
Financial sector reforms, with the IMF stressing the importance of banking modernization to attract foreign capital.
Expanded collaboration with international correspondent banks to facilitate trade financing.
Increased use of the Iraqi dinar in major transactions to strengthen the national currency.
The IMF reaffirmed its support for Iraq’s financial policy development, offering advisors and experts to assist the Ministry of Finance in public debt management and tax system improvements.
The meetings underscored Iraq’s commitment to fiscal reforms, promoting economic stability and investment-friendly policies, in line with its strategic partnership with the IMF.
(Source: Ministry of Finance) LINK
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Clare: Important details about the 2025 budget schedules and the date for submitting them to Parliament were revealed.
3/12/2025
The Prime Minister’s financial advisor, Mazhar Mohammed Salih, revealed important details about the 2025 budget schedule.
Saleh said in a press statement: “The budget is based on two main wings: the first is the operational wing, which constitutes between 68 and 70% of total public spending, and covers the salaries of employees, retirees, and social care, while the second wing is allocated to investment in development and service projects.
Saleh pointed out that the budget will operate according to spending ceilings estimated at about (200) trillion dinars, with a hypothetical deficit of (64) trillion dinars. This deficit will be financed from internal sources in the event that the average price of a barrel of oil falls below (70) dollars or oil exports fall below (3.4) million barrels per day.
He stressed that the government is committed to guaranteeing the salaries of employees and retirees, pointing out that approximately (8) million citizens receive government income, which contributes to the indirect support of approximately (40) million people. He added that implementing service projects, such as water, electricity, schools, and hospitals, will be a parallel priority to securing salaries.
For its part, the Parliamentary Finance Committee confirmed that the discussion of the 2025 budget will be resolved after it reaches Parliament.
Committee member Jamal Koujar explained that the committee will hold a session to discuss the budget once the schedules are received by the parliament, and will submit a report on the matter to the parliament’s presidency. LINK
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Clare: The Association of Private Banks organizes a dialogue session to discuss the latest developments in the banking sector in Iraq.
3/13/2025- Baghdad
The Iraqi Private Banks Association organized a dialogue session to discuss the latest developments in the banking sector in Iraq, including deprived banks and fines imposed by the Central Bank. The session was attended by the Governor of the Central Bank of Iraq, Ali Al-Alaq, and representatives of banks and electronic payment companies.
At the beginning of the session, the Chairman of the Iraqi Private Banks Association, Wadih Al-Handhal, welcomed the Governor and the participants, stressing the importance of joint cooperation between the Central Bank, banks, and electronic payment companies to enhance financial stability and develop the banking system in accordance with the latest international standards.
Al-Handhal stated that the Special Committee for Assisting Deprived Banks, formed within the Ministerial Economic Council, called for the need to assist deprived banks and suspend fines imposed on them, as they are going through difficult circumstances, as everyone knows. He explained that deprived banks work daily to implement global financial requirements and are subject to daily fines, calling for these fines to be suspended and reviewed by the Central Bank of Iraq.
For his part, the Governor of the Central Bank, Ali Al-Alaq, addressed the Central Bank’s measures related to banks barred from using the dollar, noting signs of optimism in discussions with the US side on this issue.
He stressed that the Central Bank supports the establishment of digital banks, with 75 banks having applied for them, contributing to accelerating the digital transformation of the banking sector in Iraq. He noted that the first phase will involve granting only one or two licenses for the purpose of experimentation and studying the problems and challenges facing these digital banks.
Al-Alaq indicated that banks are required to work to increase the rate of financial inclusion by providing modern banking services that target broader segments of society, emphasizing that the transition to a digital economy is a fundamental step towards enhancing financial stability and economic development. LINK
Henig: US seeks cooperation with Việt Nam in semiconductor, essential mineral & nuclear energy R&D
March 13, 2025 – 22:00
Emphasising the need to continue making economic – trade – investment cooperation a bright spot and driving force of the bilateral relations, the PM said that Vietnamese ministries and sectors are actively addressing the US side’s current concerns in economic – trade – investment ties
HÀ NỘI — Việt Nam always considers the United States a partner of strategic importance, Prime Minister Phạm Minh Chính said while receiving US Ambassador to Việt Nam Marc Evans Knapper in Hà Nội on Thursday.
PM Chính and Knapper acknowledged the results achieved in the relationship between the two countries recently, especially after Việt Nam and the US upgraded their relationship to a Comprehensive Strategic Partnership. They discussed priority areas for promoting bilateral cooperation on the occasion of the 30th founding anniversary of diplomatic relations between Việt Nam and the US.
The PM highly appreciated Knapper’s efforts in promoting the Comprehensive Strategic Partnership, maintaining stable development momentum with many positive results, including maintaining and promoting high-level contacts, notably the very successful phone talks between Party General Secretary Tô Lâm and US President Donald Trump before and after being elected.
He affirmed the message of Party General Secretary Tô Lâm and senior Vietnamese leaders that they attach great importance to and want to cooperate closely with President Trump’s administration to promote the Comprehensive Strategic Partnership, maintain a stable and increasingly substantive development momentum, and effectively implement the contents of the Joint Declaration and Action Plan to implement the Comprehensive Strategic Partnership for the common interests of the two countries.
In the context that the two countries are organising activities to celebrate the 30th founding anniversary of diplomatic relations, PM Chính requested the US Ambassador and Embassy to coordinate with relevant Vietnamese agencies to implement measures to deepen cooperative relations, including promoting visits and meetings at all levels, especially high-level ones.
Emphasising the need to continue making economic – trade – investment cooperation a bright spot and driving force of the bilateral relations, the PM said that Vietnamese ministries and sectors are actively addressing the US side’s current concerns in economic – trade – investment ties, including sending the Minister of Industry and Trade as a Special Envoy to work in the US to co-chair the Trade and Investment Framework Agreement (TIFA) Council’s meeting.
According to the government leader, Việt Nam’s relevant ministries, sectors and agencies are actively reviewing the tariffs on goods imported from the US, encouraging increased imports of products that the US has strengths and Vietnam has demand, especially agricultural products, liquefied petroleum gas and high-tech products.
He emphasised that the Vietnamese Government always pays due attention to creating conditions for US businesses and investors operating in Việt Nam, affirming that Việt Nam wants to build balanced, stable, harmonious and sustainable economic – trade – investment cooperation relations with the US for the common interests of the two countries.
The PM also proposed the US continue to take steps towards recognising Việt Nam as having a market economy and creating conditions for Việt Nam to import high-tech equipment from the US.
On this occasion, PM Chính requested the Ambassador and the Embassy to continue to prompt the US Government and Congress to increase support projects to overcome the consequences of war in Việt Nam, especially the dioxin detoxification project at Biên Hoà airbase, assist people with disabilities and war victims, and support the search for fallen Vietnamese soldiers; transfer technology and improve the capacity to examine the DNA of Vietnamese martyrs.
Thanking the PM for his recognition and appreciation, Knapper pledged to continue to coordinate closely with Vietnamese ministries and sectors to promote and further deepen the Việt Nam – US Comprehensive Strategic Partnership.
The Ambassador expressed his joy with the two sides actively implementing the Joint Declaration and Việt Nam – US Action Plan for 2023, affirming that Việt Nam – US relations have achieved many positive results, in accordance with the desires and interests of both sides.
He affirmed that the US prioritises developing relations with Việt Nam based on the principle of respecting Việt Nam’s political institutions, independence, sovereignty and territorial integrity, supporting a strong, independent, self-reliant and prosperous Việt Nam.
The US wants to expand cooperation in all fields, including cooperation in overcoming the consequences of war, defence – security, and education – training; support Việt Nam in training high-quality human resources and human resources in the semiconductor industry, and cooperate with Việt Nam in essential mineral exploitation and nuclear energy research and development, the diplomat said.
Knapper emphasised that 2025 is of important significance in the bilateral relationship, with the two sides celebrating the 30th anniversary of diplomatic relations. The US Embassy in Hà Nội will work together with Vietnamese agencies to build an effective agenda, thereby deepening the Comprehensive Strategic Partnership, he added. — VNA/VNS
