Al-Sudani acknowledges the existence of a rise in prices and says that the window for selling the currency “distorted” the financial and banking systems 



The Prime Minister, Muhammad Shia’ al-Sudani, acknowledged, on Friday, the existence of a rise in prices, indicating that the window for selling the currency “distorted” the financial and banking systems in Iraq.

In an interview with France 24, Al-Sudani said, “There is a rise in prices as a result of fluctuations in the exchange rate of the dollar, but overall our financial situation is the best since 2003.


We have continuous oil revenues and food stocks.”

He added, “We have important procedures and decisions that contribute to achieving structural economic reform in the financial and banking system,  which has witnessed distorted trade over the past years through the currency sale window.”

Al-Sudani added, “There are question marks that these standards are to be applied at this time or at this point in time from a 3-month-old government, while they were absent for years in previous governments. The sale of dollars exceeded $300 million per day, in non-trade.” Legitimate, money comes out under the headings of smuggling and money laundering.

Prime Minister Muhammad Shia al-Sudani said, “A delegation headed by the Minister of Foreign Affairs and a group of specialists will visit Washington, bringing with it several files. One of these files will be dealt with with the US Federal Bank and the Treasury Department, to find out the repercussions of applying the standards set by the US Treasury in a way that guarantees the desired goal.” from all sides.  LINK



Suzie:  If all the intel/info is correct as being alluded to, tomorrow should be a BIG day…..wonder if Frank has heard anything from Eddie or fireflies today, or if Iraq will jerk that famous flying carpet out from under us once again.  Lets hope the ISX shows up International to us on Monday and they and us go forward!  MY opinion!


Clare:  Sudanese advisor puts forward proposals to counter the continued rise in the exchange rate


Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, today, Saturday, put forward proposals to counter the continued rise in the exchange rate, including a solution that he described as national and comprehensive to provide price stability.

Saleh said, “As long as the decline in the exchange rate is linked to the ability to open up foreign trade and provide a highly flexible commodity supply when needed (through the financing tool represented by the Central Bank of Iraq’s window for buying and selling foreign currency – the US dollar in particular), which links the speed of financing with the credibility and transparency of commercial documents.” For importers from the private sector, which is still faltering at a rate that has not risen to 25-30% of the total actual demand for external transfer to finance trade.

He added, “As long as government trade is highly governed and outside this constraint, as it relies on the mechanisms of documentary credits, which is the traditional basis for financing trade, and so that the commercial market can reorganize itself, its contracts and foreign purchases, and in order to contain fluctuations in the exchange rate within a narrow range, we suggest that trade expand.” The government foreign ministry (as a wholesale trader) is currently in order to supply the market with the most important commodities that have a wide impact on people’s lives, which flow according to the fixed official exchange rate of 1460 dinars to the dollar.

And he continued, “We find in the state’s intervention in the field of import trade a comprehensive national solution to provide price stability and provide an atmosphere of anti-competition (cartels) monopolizing trade, which sends negative signals towards stabilizing the exchange rate of the Iraqi dinar.”

He pointed out that “the government’s commercial economy is the decisive solution and the lever of stability in two directions: the first is to provide a stable commodity supply and reassuring stocks of important commodities, especially essential commodities with low elasticity of demand for them, which affect the people’s daily consumption, which helps to stabilize the consumer price index and the stability of the standard of living.”

And the second: the abundance of commodities supplied through government trade at the official exchange rate is considered a compensatory supply of foreign currency, and the demand for it is equal to what helps reduce the exchange rate gap (the central exchange rate versus the parallel exchange rate), and reduce the impact of these differences in exchange rates on inflationary expectations. in economics.”

In an interview with the official news agency, Salih affirmed, “The state’s temporary intervention in the economy is the best solution until the commercial market adapts to the governance of its import operations from world markets and the discipline and transparency of its requests in front of external compliance institutions.”    LINK


Henig:  Faad Hussein: The coming period will witness the reopening of embassies of several countries in Baghdad

Fuad Hussein, Iraqi Foreign Minister

Erbil (Kurdistan 23) – Today, Saturday, January 28, 2023, Foreign Minister Fuad Hussein affirmed that developing relations with Morocco is a gateway to entering the African continent, while indicating that the coming period will witness the opening of embassies of several countries in Baghdad.

Hussein said in a statement to the Iraqi News Agency (INA): “The opening of the Moroccan embassy in Baghdad is the first step to expanding the relationship between the two countries,” pointing out that “economic relations were non-existent during the previous period, and there was no Moroccan embassy in Baghdad, but with the presence of the embassy and building Other mechanisms we talked about with the Moroccan foreign minister, the relations between the two countries will be qualitative and developed in the near future.

He added, “There is no agreement currently on signing trade agreements, but in the near future there will be a set of understandings and memorandums of understanding in addition to reviewing previous agreements between the two countries,” noting that “the economic and political situation in Iraq and also in Morocco needs to be reviewed.” In these agreements, in order for the work to be according to new objective conditions.

He continued, “Morocco is a gateway for Iraq to enter the African continent, and as a result of previous circumstances, Iraq was isolated from many countries, and entering Morocco is important because the Kingdom plays an important role, especially in the economic aspect of the African continent.”

Hussein stressed, “There is a tendency and work to open other non-Moroccan embassies in Iraq during the coming period.”   LINK

Henig:  Al-Sudani: The oil and gas law is the most important step in regulating the relationship with the Kurdistan Region

He stressed that “the attack on Iraqi lands is an unacceptable and condemned act, and we have official positions, some of which were raised at the level of communications to the Security Council and the United Nations.”

Iraqi Prime Minister Muhammad Shia al-Sudani

Erbil (Kurdistan 24) – Iraqi Prime Minister Muhammad Shia’ al-Sudani affirmed today, Friday, that the oil and gas law is the most important step in regulating the relationship with the Kurdistan Region.

In an interview with France 24, Al-Sudani said, “The budget law will contribute to resolving the bulk of the issue of financial transfers in accordance with the constitution.”

He added, “Then we will move to the most important step represented by the legislation of the oil and gas law, which regulates the relationship between the federal government, the Kurdistan Regional Government and the oil-producing provinces.”

He stressed that “the attack on Iraqi lands is an unacceptable and condemned act, and we have official positions, some of which were raised at the level of communications to the Security Council and the United Nations.”

He pointed out, “Since the first day we assumed our work, we were keen to play the role of rapprochement between the Islamic Republic of Iran, the Kingdom of Saudi Arabia, and the rest of the Arab brothers in order to perpetuate rapprochement and understanding, leading to security and reducing tensions in the region.”

He stressed that “we have obtained assurances from these countries, and we are continuing our endeavors,” noting that “there is keenness of the two countries to resume these meetings under the auspices of Iraq, and soon we will contribute to achieving a meeting in Baghdad.”  LINK


Henig:  Transport reviews the details of a “giant project” linking Iraq with Europe

Economy News – Baghdad

The Ministry of Transport set the date for the completion of the first phase of the dry canal designs and the possible date for the commencement of implementation, and while detailing the desired economic gains from it, it confirmed that it will extend by two roads and by rail, with a length of 1,200 km.

The Director of the General Company for Railways at the Ministry of Transport, Younis Khaled Al-Kaabi, said, “The Dry Canal project is vital and of importance to Prime Minister Muhammad Shia’a Al-Sudani, as it falls within the strategic projects that the government intends to implement. Ports and railways to discuss the completion of this project.

He added, “The dry canal is a giant project, the largest and most important, as it is the main outlet for the port of Faw, and through it the port will be linked to the borders from the south to the north of Iraq, up to the borders with Turkey, and from there to the European transport network to reach European markets and allow the transportation of loads at high capacities.”

He pointed out that “this project will be extended by a railway of up to 1,200 km, passing through most of the Iraqi governorates through new and fast lines in which electric trains operate, accompanied by a highway for transporting goods and passengers that runs almost parallel to the railway line from the port of Faw to the Iraqi-Turkish border in new tracks.” .

And he stressed that “this project entered within the government program, and the timings for the railway network were completed in agreement with the Italian consulting company by 100%, and after the approval of the economic feasibility study, the company will start the design stage, and perhaps during the current year the first tender for the extension of a line will be announced.” Modern electric railways in Iraq.

Al-Kaabi said, in an interview with the official news agency, that “it is likely that the stage of designs will be completed next September, after which the project will be referred to implementation,” noting that “this issue has nothing to do with the budget, and it may be put forward for investment or through financing funds.”

And he indicated that “the ministry is waiting for the prime minister and parliament to determine the financing method, and the project is followed up personally by the prime minister and minister of transport on a daily basis, and the Italian company is present and has a headquarters for daily follow-up, as well as periodic meetings with fixed and specific dates.”

The Prime Minister, Muhammad Shia’a al-Sudani, had directed to expedite the implementation of the dry canal project and to shorten the stages.   LINK


Henig: An expert reviews 3 benefits of applying the “transit” system in Iraq

|Today, 17:41 |

Baghdad today-Baghdad

An expert in the field of transport revealed the expected benefits of activating the transit system in Iraq, which will turn it into a shortcut for transporting goods between exporting and importing countries.

Transport expert Basil Al-Khafaji said, in a press statement followed by “Baghdad Today”, that “Iraq enjoys a distinguished geographical location linking the European continent with the Asian continent, where the Ibrahim Al-Khalil port (in the north) can provide a major passage for the arrival of Turkish and European goods to the Arabian Gulf and Jordan and vice versa, and that It reduces lead time and costs, saving millions of dollars and nearly 10,000 jobs.”

Al-Khafaji explained that “the system will allow the entry of at least a thousand trucks to transport goods daily, and the transportation of European and Turkish goods from the Turkish port of Mersin to the Kuwaiti port of Shuwaikh takes 23 days by sea, while it will take 4 days from Turkey to Kuwait and Saudi Arabia through the Ibrahim port corridor.”

He pointed out that “saving time will include Bahrain, Qatar and the Sultanate of Oman, which will receive the goods within 4 to 7 days,” noting that “this shortening of time will ensure the healthy life of foodstuffs.”

Al-Khafaji considered that “this strategic project will activate the commercial movement, if implemented, while ensuring that the country will obtain large profits, which are fees for the passage of trucks transporting goods, in addition to that it will send a message of reassurance to attract investments.”   LINK


Henig:  In numbers… UAE exports to Iraq jump to $20 billion

two hours ago

An economist said that the value of Iraq’s imports from the United Arab Emirates increased during 2022 to reach about $20 billion, up by 47% compared to 2021, which was about $14 billion.

And Manar Al-Obaidi stated, in a statement, that “despite the decrease in the total amount of imports by 28% compared to 2021, as the total imported quantities were 15 million tons compared to 2022, which amounted to 10.7 million tons, but the high prices of materials, specifically oil derivatives, which are the largest percentage of Iraq’s imports from the UAE {where it represents about 31% of the volume of imports} led to an increase in the value of imports in exchange for a decrease in the imported quantity.

He added, “The growth rate in the value of imports of mineral products, which mainly represent oil derivatives, reached 93%, while the volume of imports of the same products decreased by 29%.”

Al-Obeidi added, “The value of Iraq’s imports of electrical and electronic appliances from the UAE (which represents 30% of total imports) also increased, to reach $6 billion, an increase of 11% compared to 2021.”

He pointed to “the increase in the value of Iraq’s imports of cars from the UAE (which represents 11% of total imports) to reach $2.2 billion, up by 69% compared to 2021.”

He noted that “the re-exported products from the UAE to Iraq represent 85% of the total UAE exports to Iraq.”

And the economist stated that “the UAE represents Iraq’s first trading partner with a volume of trade exchange that exceeds 21 billion of products that do not contain crude oil, surpassing countries such as China, Turkey and India as a result of the increase in products re-exported to Iraq.”   LINK