Can oil prices be adjusted in the three-year budget?
Former MP Ahmed Hama Rashid confirmed today, Sunday, the possibility of changing the oil prices approved in the three-year budget law and reducing the deficit gap in it.
Rashid told Al-Maalouma Agency, “The government included a paragraph in the Financial Management Law that allows it to submit a three-year budget, the first year of which is mandatory and the two following years are subject to amendment, which means that the government can change oil prices and reduce the deficit gap wherever it occurs.” He explained that “in one year, we sent a proposal to amend the budget and this actually happened if oil prices changed.”
He added, “The three-year budget is a good idea and addresses what Iraq needs in terms of speed in completing projects. There are many countries that adopt three-year budgets, which is a development that must be kept up with, but on the condition that sending the budget tables to parliament is not delayed, as happened this year.”
It is noteworthy that the 2024 budget revenues amounted to “144 trillion and 336 billion dinars, while expenditures amounted to 210 trillion and 936 billion dinars, with the deficit amounting to 63 trillion and 599 billion dinars.
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IPBL Reports Growth in Banking Sector Deposits over the Past Two Years
The Iraqi Private Banks League (IPBL) announced on Sunday that deposits in the country’s banking sector have seen a notable increase over the past two years. IPBL attributed this growth to the government’s heightened focus on digital transformation and its ongoing shift toward electronic payment systems.
In a statement to the Iraqi News Agency (INA), IPBL Executive Director Ali Tariq noted that while deposits in the banking sector have shown positive growth, a substantial portion of the national money supply—approximately 75 percent—remains outside the formal banking system. This, he emphasized, highlights the urgent need to strengthen public trust in both government and private financial institutions.
Tariq stressed that building greater confidence in the banking sector is crucial, and this can be achieved through closer collaboration with the Central Bank of Iraq and targeted government initiatives.
He also proposed the introduction of attractive investment programs that would offer competitive returns for depositors, providing a strong incentive for citizens to increase their participation in the formal banking system.
“Strengthening Iraq’s electronic payment infrastructure has considerable potential to increase banking system usage for both payment and settlement processes—whether for transactions between citizens and government services, or for payments between individuals and private businesses,” Tariq said. “The government’s recent emphasis on digital transformation, particularly in the realm of financial transactions, is a critical step toward modernizing the economy.”
Tariq also noted that a significant portion of Iraq’s monetary mass is still outside the banking system, stressing the need for continued efforts to encourage businesses, citizens, and institutions to integrate more fully with formal financial channels.
He acknowledged the progress being made but called for a faster, more coordinated push to fully.
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Speculators, Crisis Traders, And 1,200 “Unlicensed” Money Exchange Shops.. The Reasons For The Fluctuation Of Dollar Prices In Iraq
Economic expert Samir Al-Nusairi revealed the reasons for the fluctuation in the exchange rate of the US dollar in stock markets, while confirming the existence of 1,200 unlicensed money exchange shops.
l-Nusairi told “Baghdad Today” that “once again the fluctuation in the exchange rate of the US dollar is back to the fore, and this time by speculators and merchants of crises and wars, exploiting the war that the Zionist entity is currently waging against our people in Palestine and Lebanon and the confusing security conditions resulting from that.”
He added, “The continuation of this problem from time to time can be attributed to several reasons, including before 2023 the
lack of control over the regulation of foreign trade financing, the
lack of a clear trade policy, the
intertwining of policies, and the
lack of an annual import program for the private sector in quantities and amounts. Rather, imports are open and without controls.” For external transfers. He pointed out that “the
lack of control over illicit imports and unofficial border crossings, in addition to the presence of about
1,200 currency exchange shops spread across all governorates that are not licensed by the Central Bank, deal in cash dollars, and about
12,000 outlets for disbursing the salaries of retirees and social welfare deal in trading it at the exchange rate on the black market.”.
He pointed out that “most of the merchants who obtain the US dollar at the official rate from the Central Bank, but sell their goods in the local market at the black market price, as well as the absence of global correspondent banks previously that deal with our banks and no accounts were opened for them in the currencies of the countries with which we have extensive trade exchange.” Such as China, India, Turkey and the Emirates.
He explained that “the failure of merchants and some banks to adhere to international banking standards that guarantee the dollar’s access to the final beneficiary, so the
efforts of the Central Bank and the government in 2023 focused on drawing up a strategy for financial and banking reform for the purpose of controlling the stability of the exchange rate.”
He explained, “Among the axes of this strategy are
organizing the financing of foreign trade,
building new international understandings with international banks, and
opening accounts for our banks in correspondent banks, where
more than 30 accounts have been opened with American, Chinese, Emirati, Turkish, and Indian banks.
We expect that the number of banks will increase over the next two months.” Iraqi women who have accounts in correspondent banks due to the efforts made by the Central Bank to provide aid and assistance to them and coordinate with the targeted correspondent banks.”
The dollar exchange rates in local markets witnessed a state of fluctuation during the current week between rises and falls, which created a state of confusion among citizens.
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Warning About Canceling The Electronic Platform: It May End The Banking System In Iraq
The Central Bank of Iraq intends to cancel the “electronic platform” for financial transfers early next year.
The researcher and specialist in financial and banking affairs, Mustafa Hantoush, says that the Central Bank of Iraq, by not finding real solutions for remittances and moving towards topping the platform (Fitr) and handing over the Iraqi dollar to (4) banks owned by investors and banks (Jordanian and Gulf), will fire the coup de grace on the entire Iraqi banking system. Hantoush added during his speech to the Iraq Observer,
“The banking system in Iraq as a whole will become punished, which will lay off approximately (100) workers in the Iraqi private banking sector for the benefit of Jordan and the Gulf countries.”
He continued, “He may demand social welfare for them, and the stability of the exchange rate will become difficult due to the monopoly of the dollar by those banks, and it may cause new fluctuations in the exchange rate.”
The financial expert continues, “Thus, the Central Bank of Iraq is failing in one of the most important banking policies, which is the policy of achieving competition in the banking sector and preserving banking sovereignty.
Thus, we call on the Central Bank to provide certain solutions, including extending work on the (Fitr) platform in coordination with the new administration of the United States of America.”
He continues by saying, “Iraqi banks must be guaranteed to open accounts in dollar-denominated correspondent banks (Citibank/GBMorgan), as the countries of the region have done.”
He pointed out that “it is also necessary to define and announce a mechanism for cooperation and auditing with Ernst & Young regarding transfers in currencies other than the dollar (euro – yuan – lira – dirham).” He stated,
“Announcing the results of the agreement and contract with the company (Olver and Ayman) regarding the 28 sanctioned banks and what their fate is.” The financial expert called for
“the necessity of approaching the central banks of the countries (Turkey – the Emirates – China – India) to agree to open branches of Iraqi banks to move from a remittance relationship to a banking relationship in trade.”
The decision to cancel the electronic platform for financial transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate of the dollar against the Iraqi dinar.
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Between Rapid Growth And Stagnation…An Economic Analysis Of Electronic Payment Numbers In Iraq
Economist Manar Al-Obaidi confirmed today, Friday (November 29, 2024), that
electronic payments have increased this year according to Central Bank data, suggesting that
local electronic transactions will likely reach 21 trillion dinars. Al-Obaidi said in a post on Facebook, followed by Baghdad Today, that
“electronic payments rose in 2024 according to Central Bank data,” noting that
“it is expected to reach 21 trillion dinars in local electronic transactions and that the volume of foreign electronic transactions will reach Iraqi cards cost between 15 and 20 trillion annually in the same year.”
He added, “The total internal and external electronic payments will reach between 30 to 40 trillion dinars.
In contrast, there is a decrease in the size of current deposits from 107 trillion at the end of 2023 to 102 trillion in 2024,” pointing out that
“there is a decrease in the size of private sector deposits (including citizens).” From 56.55 trillion dinars in 2023 to 56.17 trillion in 2024″.
He continued, “The value of cash in the banking sector reached 8.1 dinars for every 100 dinars exported in 2024 only, compared to 6.75 dinars for every 100 dinars exported in 2023,” stressing that
“if all electronic payment incentives cannot increase the volume of current and private deposits in the banking sector and cannot… “As the monetary supply within the banking sector increases significantly, what is the benefit achieved by electronic payments?” Al-Obaidi wondered,
“Why, despite the increase in payments, the citizen’s confidence in the banking sector has not increased, and he still puts in his bank account what covers electronic payments that he cannot pay exclusively with cash, specifically government ones?
Is there a need to increase mechanisms to
stimulate electronic payment to increase electronic transactions, or is it a necessity to work?” To
increase confidence in the banking sector, and then electronic payment will be one of the outcomes of increasing this confidence?
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Iraq Is Preparing For An Electronic Revolution In Electronic Payment As The Year 2025 Approaches
The head of the electronic payment team in Iraq, Nabil Al-Najjar, confirmed today, Friday, that
Iraq will witness a major transformation in the field of electronic payment in the next year.
Al-Najjar explained in a statement to the official agency, followed by “Mawazine News”, that
“the number of electronic payment cards in Iraq has exceeded the barrier of 18 million cards, which means that a third of the population uses this method.” He added,
“There is a government trend that supports electronic payment through a series of decisions that will contribute to this major transformation in the Iraqi economy.”
Al-Najjar pointed out that “Iraq is embarking on massive digital campaigns in line with the economic decisions adopted by the government of Prime Minister Muhammad Shia al-Sudani, and it is expected that the year 2025 will witness a qualitative shift in electronic transactions.”
