Tishwash: Inflation’s freefall: Iraq hits 2.8%, economic hopes soar
Iraq’s annual inflation rate has dropped to 2.8% in the fourth quarter of 2024, down from 4% a year earlier, the central bank (CBI) announced on Wednesday.
In an official statement, CBI confirmed that core inflation, which excludes volatile food and energy prices, had also declined to 2.5% from 4.5% in the same period of 2023.
“Both headline and core inflation remain within acceptable levels, reflecting price stability and the effectiveness of Iraq’s monetary policy,” the statement read.
The latest figures point to a slower rise in consumer prices, strengthening purchasing power and reinforcing economic stability.
Notably, Iraq has experienced inflation swings in recent years. The annual rate stood at 5% in 2022 before climbing to 6.6% in 2023, driven by currency fluctuations and the impact of the Russia-Ukraine war.
Projections for the coming years remain mixed. An International Monetary Fund report in October 2024 forecast a slight increase to 3.5% in 2025, before easing to 3% by 2029. link
Tishwash: Prime Minister’s Advisor Explains Details of “Bridge Borrowing”
Prime Minister’s Advisor Explains Details of “Bridge Borrowing”
The Prime Minister’s Advisor, Mazhar Muhammad Salih, explained today, Thursday, the details of “bridge borrowing”, while indicating that more than 50% of the domestic debt is concentrated in the investment portfolio of the Central Bank.
Saleh told the Iraqi News Agency (INA): “Historically, government borrowing through treasury transfers is a type of short-term borrowing from the banking market that British public finance has adopted since the reign of Queen Victoria.”
He added that “this type of borrowing was done for limited periods not exceeding weeks or financial quarters, and is known as (bridge borrowing), as it aims to bridge the temporary deficit gap resulting from the slowdown in revenues compared to actual expenditures.”
He pointed out that “due to monthly financial obligations, public finance may resort to issuing treasury transfers as a financing tool to bridge the temporary deficit in the budget until cash flow stabilizes in the next period of the fiscal year.”
He added that “in light of the fluctuations in the oil revenue cycle on the general budget over the past ten years, the government was forced to borrow multiple and accumulated, which led to an increase in expenditures in three stages: the first during the war on ISIS terrorism, the second due to the economic closure caused by the pandemic, and finally the increase in expenditures in the areas of reconstruction and implementation of suspended projects.”
He added that “these circumstances resulted in the accumulation of domestic public debt, part of which was borne by government banks, as more than half of it was deducted from the Central Bank of Iraq through open market operations.”
He stressed that “this necessitated a complementary monetary issuance that led to a significant increase in the monetary mass, especially since the domestic public debt, amounting to 82 trillion dinars, is still mostly within the government financial and banking system, more than 50% of this debt is concentrated in the investment portfolio of the Central Bank.”
He added, “On the positive side, this debt is covered by foreign currency by more than 100%, which reflects a high level of monetary stability, as the annual inflation growth rate did not exceed 3%.”
He added that “despite these challenges, both the monetary and fiscal authorities seek continuous consultation in order to gradually extinguish the domestic debt,” stressing that “the government relies on enhancing financial sustainability by reducing the public debt balance annually and reducing the annual budget deficit to a percentage not exceeding 3% of the gross domestic product.”
He concluded that “this approach is part of a fiscal policy aimed at providing financing and protecting economic activity, which contributes to achieving stability and sustainable economic growth through coordination between fiscal and monetary policies.” link
************
Tishwash: nothing we are interested is on the agenda but at least they are saying they are going to work but we shall see
Confirming to Shafaq News.. The Iraqi Parliament sets Saturday as the date to resume its sessions
The Iraqi Parliament has set next Saturday, March 8, as the date to resume its sessions, according to what the media department of the parliament reported.
According to the session agenda issued by the media department, and received by Shafaq News Agency, the session will witness voting on the draft law amending the fourth law of industrial investment for the private and mixed sectors, in addition to voting on a decision to recommend the Ministry of Education to reinstate the trial system. The interim parliamentary committee will also discuss its report on preserving state property.
The first reading of the draft law to cancel the ratification of the agreement exempting holders of diplomatic and service passports from entry visas between the governments of Iraq and Cyprus will also be presented during the session, in addition to the first reading of the proposed law to amend the second law of the Mukhtars, and the report and discussion of the proposed fourth amendment to the law of medical and health professionals.
Earlier, a parliamentary source reported that the parliament presidency decided to suspend the sessions and resume them next Saturday.
The source told Shafaq News Agency that the Council Presidency informed the representatives that there would be no session this week, and that the session would be held on Saturday evening after breakfast.
For his part, member of the Parliamentary Legal Committee, Mohammed Anouz, revealed to Shafaq News Agency that Parliament sessions during the month of Ramadan will be in the evening after breakfast, to ensure the continuation of legislative work before the end of the current session.
It is noteworthy that the current session of the Iraqi Council of Representatives began on January 9, 2022, and is scheduled to last for four years, ending on January 8, 2026.
No: Voting on the draft law amending the fourth amendment to the Industrial Investment Law for the private and mixed sectors No. (20) of 1998. (Economy, Industry and Trade Committee, Investment and Development Committee), (9) articles).
Anya: Voting on a decision to recommend to the Ministry of Education to reinstate the trial system.
Third: Report of the interim parliamentary committee to follow up on the preservation of state property.
Fourth: The first reading of the draft law to cancel the law ratifying the agreement exempting holders of diplomatic and service passports from entry visas between the Government of the Republic of Iraq and the Government of the Republic of Cyprus No. 26 of 2023. Foreign Relations Committee, (2) Articles.
Parliament
Fifth: The first reading of the proposed law amending the second law of the Mukhtars Law No. 13 of 2011. The Committee of Regions and Governorates Not Organized in a Region, the Security and Defense Committee, the Finance Committee, the Legal Committee, (8) articles. Rajuma Ni Nowina
Sixth: Report and discussion of the second reading of the proposed law amending the fourth amendment to the Law on the Progression of Medical and Health Professionals No. (1) of 2000. (Health and Environment Committee), (13) articles.
The session begins at one o’clock in the afternoon link
