SWIFT And The US Federal Reserve Put Iraq At The Mercy Of The Global Economy.
Information/Special..Economist Hassan Al-Sheikh warned on Tuesday that Iraq has become more vulnerable to global economic shocks due to its increasing connection to the international financial system, particularly after joining the SWIFT global financial system and engaging directly with the US Federal Reserve.
In a statement to Al-Maalouma News Agency, Al-Sheikh said, “Over the past two years, Iraq has entered the global economy with a strong push through international bank transfers, subjecting banks to strict oversight, and opening channels with international banks.
This has made it vulnerable to any external economic change, whether in oil prices or financial and monetary policies.”
He pointed out that Iraq, which prior to 2020 was virtually isolated from the global financial system, is now severely restricted, negatively impacting its general budget, which already suffers from a widening financial deficit.
The sheikh added that this interdependence not only threatens the stability of oil prices,
but also makes any global economic or customs decision directly impact the state’s finances.
He warned of worsening crises if steps are not taken to strengthen the independence of the Iraqi economy. He pointed out that any breakthrough in the US-Iranian negotiations could open the door for Iraq to overcome some of the obstacles, particularly those related to sanctions imposed on the Central Bank.
This could allow Baghdad to freely withdraw its funds, provide better access to dollars,
and perhaps even restore the exchange rate to 120,000 dinars to $100.
He pointed out that this would allow Iraq to import Iranian gas more smoothly, which would contribute to improving the performance of the electricity sector. https://almaalomah.me/news/98623/economy/سويفت-والفيدرالي-الأميركي-يضعان-العراق-تحت-رحمة-الاقتصاد-الع
Minister Of Finance Affirms Iraq’s Keenness To Strengthen Relations With World Bank
Economy Yesterday, 21:15 Baghdad – INA Finance Minister Taif Sami affirmed, on Tuesday, Iraq’s keenness to strengthen relations with the World Bank and benefit from its expertise.
The ministry said in a statement received by the Iraqi News Agency (INA): “Minister of Finance Taif Sami received today the World Bank Representative to Iraq, Emmanuel Salinas Muñoz,” indicating that
“during the meeting, areas of joint cooperation between the two sides were discussed,
especially with regard to supporting economic programs and financing development projects.”
He continued, “The two parties discussed prospects for strengthening partnership in vital sectors, including energy, education, and health, and the importance of continuing coordination to implement financial and administrative reforms, in line with the Iraqi government’s priorities and plans for sustainable development.”
The Minister of Finance affirmed “Iraq‘s keenness to strengthen its relations with the World Bank
and benefit from its technical and financial expertise.”
The World Bank representative reiterated the institution’s commitment to supporting the Iraqi government’s efforts to implement reform programs and achieve economic stability. https://www.ina.iq/234152–.html
Economist: Iraq Has Export Resources To Mitigate The Damage Caused By The Drop In Oil Prices.
May 11, 10:54 AM Information/Baghdad…Economic researcher Diaa Abdul Karim explained on Sunday that Iraq possesses numerous resources that could be exported abroad and their revenues utilized, particularly petroleum derivatives.
Abdul Karim told Al-Maalouma, “There is an urgent need to develop oil refineries
to ensure that gas is not burned or wasted and that
all derivatives are utilized to
achieve self-sufficiency and
export the remainder abroad.”
He added, “The rise and fall in the price of a barrel of oil is the most prominent concern for
Iraqi citizens and employees, as everyone is waiting and hoping for a rise in the price of oil, while the government should be more inclined to export derivatives.”
He explained that “Iraq has minerals, natural resources, and petroleum derivatives that can be leveraged to boost budget revenues and reduce reliance on oil as the primary source of funding for the budget, in order to avoid the fluctuations and occasional shocks of the global market.” https://almaalomah.me/news/98371/economy/اقتصادي:-العراق-يمتلك-موارد-للتصدير-لتلافي-اضرار-انخفاض-أسعا
Trade: Iraq To Be The Fourth Largest Arab Economy By 2025
Economy Yesterday, 11:18 Baghdad – INA The Ministry of Trade announced today, Tuesday, that Iraq will be the fourth largest Arab economy by 2025, noting that the volume of trade with 11 countries rose to $65 billion in the first half of 2024.
Ministry spokesman Mohammed Hanoun told the Iraqi News Agency (INA):
“Iraq is an important economic player in the region, witnessing a remarkable development in the volume of trade with Arab countries, and working to strengthen its regional and international economic role.”
He indicated that “the volume of trade between Iraq and 11 countries rose to $65 billion in the first half of 2024, a 10% increase compared to the same period in 2023.”
He added that “the volume of trade between Iraq and Saudi Arabia reached $1.3 billion in 2024,
reflecting a significant increase compared to previous years,” noting that “the volume of trade with the Hashemite Kingdom of Jordan exceeded $1 billion annually,after increasing by 45.6 percent in 2024.”
He stated that “the United Arab Emirates exported goods to Iraq worth $22 billion in 2024,” noting that “Iraq‘s economic role in the region and the world has begun to grow and expand, ranking 51st globally and fourth in the Arab world on the list of the world’s largest economies for 2025, according to a report issued by the American magazine “CEO World.”
He continued, “The development road project, estimated to cost $17 billion, aims to make Iraq a regional transportation hub by linking its southern hinterland to the Turkish border in the north, enhancing its role as an economic hub in the region.”
He emphasized that “Iraq‘s move is to strengthen its economic position by developing trade relations with Arab countries, reviewing all previous agreements, and implementing strategic projects aimed at diversifying its economy and reducing its dependence on oil.”
He pointed out that “Iraq‘s commitment to hosting the Arab Summit reflects its commitment to leading Arab efforts toward achieving economic and development integration, having called for the establishment of an Arab economic bloc that would invest in the human and geographical resources of Arab countries,
with the goal of
achieving effective economic integration,
providing job opportunities, and
achieving social justice.”
He noted that “By hosting the Arab Summit, Iraq seeks to focus on food security and sustainable development, and to develop an Arab strategy for food security, in addition to supporting initiatives related to artificial intelligence, energy, water, and education, with the goal of achieving sustainable development in the region.”
It’s worth noting that Iraq has proposed, in previous meetings, the most recent of which was the preparatory meeting for the Arab Economic and Social Development Summit held in Baghdad yesterday, the establishment of an Arab Council comprising trade ministers under the umbrella of the League of Arab States, to enhance coordination and integration in trade policies among member states. https://www.ina.iq/234111–2025.html
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