Iraq Is The World’s First In The Concentration Of Natural Resources Per Square Kilometer
The financial advisor to the Prime Minister, Mazhar Mohammed Salih, confirmed today, Thursday, that Iraq ranks first in the world in the concentration of natural resources per square kilometer, while indicating that the natural resources renaissance project will come in parallel with the development path strategy.
Salih told the official agency, followed by “Mawazine News”, that “since Iraq ranks ninth in the world in the value of its natural resources reserves, which exceed $16 trillion in current market value, at a time when it ranks first in the world in the concentration of natural resources per square kilometer,”
noting that “the features of the country’s future in a comprehensive renaissance will depend on transforming these natural sovereign resources into productive capital assets employed in the movement of diversifying the national economy.”
He added, “This requires an economic model in managing and investing in diverse resources (except for oil and gas),” noting that “the closest to mind is the manufacture of natural resources that can be manufactured to generate value-added chains that maximize national income and generate accelerated opportunities for sustainable development in our country, whether towards export or export substitution.”
He pointed out that “the natural resources renaissance project will undoubtedly come in parallel with the development path strategy in generating a leading industrial renaissance in the national economy, which is Iraq’s outline in building the future of its economy for the twenty-first century in two directions: the first is the export-oriented development model, and the other is the development model directed towards maximizing input-output tables and replacing imports within the national economy.
He continued that “the national market is in the formation and development stage, and the government program strategy is approaching the philosophy of partnership through the concept of the social market, because the state’s contribution to the gross domestic product (national income) is close to 65%, and this requires an important role for the state in economic legislation and laws.
Saleh explained that “improving the entity of the national market and building its role stems from two directions: the first is providing market guarantees by approving the Social Security Law for the labor and business sector, and the second is the financing partnership by providing soft financing for the forces generating market activity responsible for absorbing 60% of the labor force,”
noting that “the beginning is in the Riyada program led by Prime Minister Mohammed Shia al-Sudani, by providing the necessary financing to employ youth in productive national projects, in addition to preparing to launch Riyada Bank for the same purpose without neglecting the major role of the Iraq Development Fund.”
He added: “In 2037, Iraq will become one of the nations of the housing grant, as young people of working age will dominate 60% of the population,” adding that “the national strategy for the private sector will increase the contribution of the private sector to more than 53% of the gross domestic product within the next ten years.”
Saleh concluded by saying, “My message to the Iraqi people is to abandon the fear of worrying about the current oil economy and its connection to the consumption cycle, part of whose luxuries we live, and to look forward to a productive era to come, an era of investment in Iraq’s vast material and human wealth, an era of diverse material and digital production that is intertwined with the global economy and the two arms of the path of development and investment in natural resources and diversification of production networks in the national economy that guarantee human well-being and the sustainability of its development in our country.”
Al-Sudani: Baiji will become one of the largest cities in the oil industry in Iraq and the region
Prime Minister Mohammed Shia al-Sudani expected, on Thursday, that the city of Baiji in Salah al-Din Governorate would be “one of the largest cities in the oil industry in Iraq and the region.”
This came in his speech during the inauguration and launch of executive work in a number of energy projects in the governorate.
Al-Sudani stated in his speech that the next phase will witness the establishment of a petrochemical project in the Baiji refineries, stressing that this visit represents a continuation of the year of achievements in which we are committed to developing the infrastructure and achieving self-sufficiency in the oil derivatives sector and investing in natural gas.
He added that Baiji will become one of the largest oil industrial cities in Iraq and the region, thanks to the vital projects underway there.
He stressed that a country that produces more than 4 million barrels per day cannot continue to import oil and gas derivatives, adding: We have started several strategic projects that are being implemented for the first time in the country and in the history of the oil industry.
Al-Sudani said, “We have made great strides in solving the problems, especially in the matter of gas flaring, through the contracts and agreements concluded, stressing, “We have set a ceiling not exceeding 2028 to stop gas flaring, and a zero percent rate in flaring associated gas.”
He continued by saying: We are continuing to promote the free gas fields and patches, considering the strategic Basra-Hadithah pipeline, which was voted on by the Council of Ministers, with a capacity of more than 2 million barrels, will provide flexibility in the internal transportation of oil.
The Prime Minister noted that his government is moving towards “providing the largest proportion of crude oil production instead of selling it in global markets to use it in the oil industries for its benefit and to provide job opportunities.”
He also stated that he “worked on completing the strategic integrated southern project, which is being implemented for the first time in the field of oil development and gas investment, and establishing a power station, refinery and petrochemical plant in one place.
Al-Sudani concluded his speech by saying, “The opening of the third unit of the Salah al-Din refinery will enhance the refinery’s production capacity and various products, including super gasoline (high octane) by 3.5 million liters/day, liquid gas by 650 tons/day, light gas oil by 3.5 million liters/day, and heavy gas oil by 4,000 tons/day.”
The Central Bank of Iraq officially suspends the electronic platform
The Central Bank of Iraq announced Wednesday, the suspension of work on the electronic platform mechanisms related to selling the dollar, as the Deputy Governor of the Central Bank, Ammar Khalaf, stated in a statement to the official agency, that “the work mechanism on the electronic platform related to foreign transfers has been suspended, but financing foreign trade continues through correspondent banks according to different mechanisms that are equivalent to what is in effect in countries of the world.”
He pointed out that “dollars will continue to be given to travelers at airports according to the approved mechanism, which is the best in limiting the traveler’s access to dollars.”
This decision comes as part of a series of reforms aimed at facilitating financial procedures and stimulating the economy, but at the same time it raises questions about its potential impact on the stability of the Iraqi dinar exchange rate against the US dollar.
The platform documented commercial transactions and money transfers by banks and financial companies, ensuring more effective control over hard currency flows in and out of the country.
The platform has also contributed greatly to narrowing the gap between the official exchange rate and the black market rate, as it has prevented many money laundering and smuggling operations. With the decision to cancel this platform, questions are raised about how to regulate the market and manage transfers.
The decision to cancel the electronic platform for money transfers represents a major challenge to the Iraqi economy, and may have direct effects on the exchange rate of the dollar against the dinar. To achieve economic stability in the coming period, it will be necessary to take proactive measures to compensate for the absence of the platform and ensure the continuity of supervision over the financial market.
Is The Ministry Of Finance Hiding The Facts? A Specialist Reveals The Main Reason For The Lack Of “Cash Liquidity”
Economic affairs researcher Haider Al-Sheikh revealed today, Wednesday (January 1, 2025), the direct reason behind the lack of cash liquidity at the Central Bank of Iraq.
The sheikh told “Baghdad Today”, “The Central Bank lacks cash liquidity, due to the citizen’s lack of confidence in the banking system.
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There is a lack of confidence among the citizen in both government and private banks, and this matter has led to the storage of cash (the Iraqi dinar) in citizens’ homes.””. He stated,
“The cash stored with citizens exceeds 15 trillion dinars, and the government and the central bank must address inflation in economic policies by providing banking facilities to citizens in a real and more serious manner.” The researcher in economic affairs added,
“The currency circulating among banks, merchants, and in the market as well, amounts to approximately 85 trillion dinars.”
On Sunday (December 2024), the Ministry of Finance denied that there was a shortage of liquidity to finance employees’ salaries for the current month, stressing its commitment to financing salaries.
The Ministry stressed in a statement received by “Baghdad Today” that
it is “fully committed to the process of financing employee salaries, as the Accounting Department has funded the salary dues for ministries, governorates, and unrelated entities for the current month of December according to the schedules specified for each of them, and it is continuing its efforts to ensure the continuity of disbursing financial dues.” Without any delay or interruption.”
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An Economist Praises The “Asykoda” Automation System: A Step Towards Achieving Important Resources
Economic expert Nabil Al-Ali confirmed, on Wednesday, that the government announced that it would start, from the first of this year, completing the infrastructure to connect all border crossings, by starting to use the “Asycoda” automation system, which will contribute to achieving important financial resources for the public treasury.
Al-Ali said in a statement to the Maalouma Agency, “Completing the linking of the border crossings to an electronic system called (ASYCUDA) is a qualitative leap towards cutting off corruption, in addition to that it will provide the public treasury with high financial resources.” He added,
“Applying automation at border crossings by achieving automation in ministries and institutions, including the e-government project, and providing electronic payment services.” He pointed out that
“implementing it will contribute to
enhancing transparency and accountability,
simplifying procedures,
facilitating services, and
reducing bureaucratic obstacles, in addition to
establishing good governance and
combating corruption.” Ended / 25 AD
Strong Demand Lifts Gold Prices To Two-Week High
Gold prices hit a two-week high on Thursday, supported by safe-haven buying and a decline in U.S. Treasury yields, with focus on U.S. interest rate expectations ahead of President-elect Donald Trump’s proposed trade tariffs.
Spot gold rose 1 percent to $2,649.73 an ounce by 14:46 GMT, its highest since Dec. 18.
U.S. gold futures rose 0.8 percent to $2,663.20 an ounce.
Benchmark 10-year U.S. Treasury yields fell, boosting investor appetite for the non-yielding metal.
“I don’t see anything on the news that’s moving the market, but geopolitics is supporting the market,” said Ronna O’Connell, an analyst at StoneX, referring to international tensions as well as financial uncertainty, especially ahead of Trump’s inauguration.
Lower interest rates make gold more attractive as a hedge against economic and geopolitical risks.
The market is now awaiting a fresh set of catalysts, including a series of US economic data due next week that could impact interest rate expectations for 2025.
Gold hit several record highs in 2024, rising 27 percent, its biggest annual gain since 2010, amid interest rate cuts by the US Federal Reserve, aggressive buying by central banks and rising geopolitical tensions.
Trump’s presidential term is scheduled to begin on January 20.
Proposed tariffs and protectionist trade policies are expected to raise inflation and could spark trade wars, increasing gold’s appeal as a safe haven.
As for other precious metals, silver in spot transactions rose 2.1 percent to $29.48 per ounce.
Palladium rose 1.3 percent to $922.04 an ounce, while platinum rose 2.1 percent to $922.85 an ounce.
