The Trade Bank of Iraq announced today, Monday, the mechanism for obtaining the dollar currency for the purposes of traveling abroad.

The bank stated in a statement that “the requirements for obtaining the dollar currency for the purposes of traveling abroad are:

1. A valid Iraqi passport with a valid visa or residence.

2. A civil status ID and a certificate of nationality or a unified national card.

3. A residence card.

4. A valid travel ticket.

5. A pledge not to purchase foreign currency from another party inside Iraq for a period of (one month).

6. The traveler must be of Iraqi nationality and over (18) years of age.

Purchase mechanism:

1. An amount must be deposited in dinars at the bank branch exclusively, provided that the amount in dinars is equivalent to the value of the share of the same amount in dollars allocated for travel.

2. The dollar share shall be received from the outlet of the Iraqi Trade Bank at Baghdad International Airport (Babylon Hall) exclusively and by handing over the deposit slip granted to the customer when he deposited the amount in dinars.

3. The maximum period for depositing before the travel date is three days.

4. The dollar shall not be delivered to the traveler until after completing the travel procedure (Boarding pass) and after completing the passport stamping procedures.

5. The bank outlet at Baghdad International Airport will be designated For delivery purposes, the Travelers Dollar is available 24 hours a day, 7 days a week.

The Central Bank Announces A 15.7% Decline In Iraqi Exports In The First Quarter Of This Year

 Economic Number of readings: 218  Baghdad / NINA / The Central Bank of Iraq announced today, Monday, a decline in Iraqi exports during the first quarter of this year by 15.7%.

The bank stated in a report that “Iraq’s commodity exports declined by 15.7% during the first quarter of this year to reach 23 billion and 474 million dollars, compared to 27 billion and 847 million dollars for the fourth quarter of last year.”

It added that “Iraqi oil exports constituted 96.7% of total commodity exports for the first quarter of this year, recording a decline of 16.4% compared to the last quarter of the previous year, and this decline is attributed to a 10.7% decline in oil prices.”

It pointed out that “exports of petroleum products, including naphtha, diesel oil, and other products, constituted 2.7% in the first quarter of this year of total exports.”

The bank indicated that “other commodity exports constituted a small percentage of 0.6% of total commodity exports, the largest part of which focused on industrial equipment and some primary foods and beverages prepared for family consumption.”

6 Scenarios That The Iraqi Central Bank Will Work On, Narrated By Al-Issawi

  Economic expert Abdul Karim Al-Issawi said: “Today, the Central Bank of Iraq has actually moved to the stage of direct relations with correspondent banks, and it is in the experimental stage with monitoring the changes that occur in all the processes for the purpose of fortifying the transformation.”

Al-Issawi Told Mawazine News Agency: The Platform Aimed To Enhance Transparency And Ensure Compliance With International Laws, Especially With Regard To Combating Money Laundering And Terrorist Financing.

He pointed out that:

**Potential Benefits:

1. *Facilitating remittances*: Direct relationships may make remittances faster and more flexible.

2. *Reducing remittance costs*: Relying on a platform may require additional costs that may decline with the new system.

3. *Enhancing international confidence*: If these relationships are managed well, this may help enhance the international community’s confidence in the Iraqi banking system.

As for the potential challenges: He said: “

1. Compliance risks: Easing oversight could increase the risks of money laundering and terrorist financing, which could harm Iraq’s international reputation.

2. Complexity of banking operations: Some banks may face difficulties in managing complex international relationships directly without the mediation of the Central Bank.

3. Impact on monetary policy: The Central Bank may lose some control over external capital flows, which could impact monetary policy.

It is important that this transition (if it occurs) be done gradually and thoughtfully, while ensuring that strong oversight mechanisms are in place to ensure that the Iraqi banking system is not exploited for illicit purposes.

The final decision will require a balance between benefits and risks, and will certainly have a significant impact on the Iraqi economy and international relations.

The economic expert stated that the Central Bank of Iraq is negotiating with the US Federal Reserve regarding ending the work of the electronic platform for foreign transfers and replacing it with direct banking relations between Iraqi banks.

Parliamentary Finance Committee Discusses Proposal To Establish Sovereign Fund

Chairman Of The Parliamentary Finance Committee Atwan Al-Atwani  Money and business  Economy News – Baghdad  The Parliamentary Finance Committee announced, on Monday, discussing a proposal to establish a sovereign fund.

The media department of the House of Representatives stated in a statement, which was reviewed by “Al-Eqtisad News”, that “the head of the Finance Committee, Atwan Al-Atwani, chaired a deliberative meeting of the committee in the presence of a number of its members, to discuss a number of important topics and files.”

The statement added that “the meeting reviewed the outcomes and indicators of previous meetings with government agencies regarding maximizing non-oil revenues, where it was agreed on the next steps by submitting a detailed report to the government on the sources of deficiency, especially in the electricity, tax, customs and other major financial outlets sectors.”

The statement continued, “The committee discussed a number of proposals that would maximize financial revenues, including the legislation of special laws on taxation, in addition to forming a committee to conform to standards, which is responsible for reviewing the estimation of planned revenues for state institutions.”

The statement continued, “The committee discussed a proposal to establish a (sovereign fund) similar to rentier countries, in order to confront fluctuations in global oil prices or any financial crisis, provided that the fund is financed from the budget surplus achieved in circumstances of economic and financial prosperity.”

The statement concluded, “The meeting also discussed the laws referred to the Finance Committee as a supporting committee, where Al-Atwani stressed that the committee will have an opinion and a fundamental role in legislating these laws, especially those related to economic reform and others.”

Oil Prices Rise Slightly, Brent Hits $71 A Barrel

Baghdad  Oil prices rose in early trade on Monday amid expectations of a U.S. interest rate cut this week, but gains were capped by a resumption of U.S. supplies after Hurricane Frances and weaker Chinese data. Brent crude futures for November delivery rose 15 cents, or 0.2 percent, to $71.76 a barrel. U.S. crude futures for October delivery rose 23 cents, or 0.3 percent, to $68.88 a barrel.

Parliamentarian: Iraq Needs Economic Plans To Protect It From Oil Price Fluctuations

September 12, 2024  Baghdad/Iraq Observer  During the past three months, oil prices witnessed a clear decline, as oil prices fell from $90 per barrel to $70.2 at a time when 90% of Iraq’s imports depend on oil.  This decline will pose a challenge to the Iraqi economy through its impact on its operating and investment budget.

In this regard, a member of the Parliamentary Oil and Gas Committee, Aso Faridoun, confirmed that
“although Iraq has financial reserves in addition to the presence of gold reserves with the Central Bank and does not have any debts, all of these elements have made the economic situation of Iraq much better than other countries in the region.”

He lacks an economic plan to protect him from oil price fluctuations.”

During his speech to Iraq Observer, a member of the Oil and Gas Committee called for the necessity of developing alternative sectors such as the industrial and agricultural sectors instead of relying on a single source of income and to be a auxiliary to it, as many countries did, including the Gulf countries, which fully secured their economy and emerged from the crucible of relying on oil as a sole source through plans. A development that has been around for about 15 years.”

Fereydoun pointed out that “oil, like other commodities, is affected by supply and demand factors.

For example, there is a clear decline in Chinese demand, as China possesses approximately 40% of the world’s oil imports.”

 He continued,  “Demand decreased from 16 million barrels per day to 8 million barrels, and this coincided with an increase in the surplus in global markets as a result of the presence of a surplus from OPEC countries by 1 million 200 thousand barrels per day and non-OPEC by 200 to 400 thousand, an increase estimated at 1 million 400 thousand barrels per day, and this accumulated.”

The percentage cumulatively increased supply, reduced demand, and led to lower oil prices.” He pointed out that   “the decline in Chinese demand for oil in particular is due to two main reasons.

First, there is an expectation of a decline in the global economy, which will continue for the next three years, which means that the demand for fuel will decrease.

Secondly, China obtains oil from markets outside OPEC’s accounts, which, according to economic experts, represents a kind of destabilization.” It obtains oil from these markets at low prices.”

Including Amending The Iraqi Central Law… A Number Of Files On The Parliament’s Financial Table

September 16, 2024  Baghdad/Iraq Observer   Today, Monday, the Parliamentary Finance Committee announced a parliamentary approach to amend the Central Bank and Banking Laws.

The Parliament’s Media Department stated, in a statement received by “Iraq Observer,” that

“the Finance Committee, headed by Atwan Al-Atwani, held a meeting today, Monday, at the committee’s headquarters, in the presence of a number of its members, during which the laws referred to the Finance Committee were discussed in its capacity as a supporting committee, in addition to a review of previous meetings.” About non-oil revenues.”

The head of the committee stressed, according to the media department’s statement,  “the need for a representative from the committee to attend all meetings of the other parliamentary committees to express an opinion on the joint laws as it is a supportive committee in legislating those laws.”

The committee decided to “conduct a field visit to the Kurdistan Region and the ports to follow up on oversight-related procedures and prepare a report thereon.” She added,

“A number of important laws were discussed, including “unified retirement and owners,” with the possibility of amending laws such as the Central Bank Law and the Banking Law.”

The committee discussed “the possibility of legislating a law on collection and tax for all economic sectors or including it in the economic reform law.”  The committee noted,  “discussing the

proposal to establish a sovereign fund for the country, and  forming a team to review government procedures related to revenues and estimate financial returns according to spending units.”

The committee decided to “host the Deputy Minister of Planning to follow up on the ministry’s work regarding increasing revenues in various sectors, and to host the Chief of Staff of the Army to discuss financial matters related to the ministry.”