Iraq seeks to increase oil production to 7 million barrels per day within five years
The Undersecretary of the Ministry of Oil, Ali Maaraj, said on Tuesday that the ministry aims to increase oil production to about 7 million barrels per day over the next five years.
In his speech during the “Iraq Energy” conference, Maaraj added that the most important basic objectives of the Iraqi Ministry of Oil revolve around increasing production capacity, which will reach 7 million barrels per day within the next five years.
He pointed out that the ministry also aims to treat gas and reach zero percent in the burning of associated natural gas, as well as stop the process of importing petroleum derivatives during the coming period.
Iraq boosts financial stability with huge dollar and gold reserves in US, Europe
A country that has huge reserves of hard currency is considered an economically stable country that can intervene at any time to address imbalances in the balance of payments structure. It also provides an important element in establishing the country’s creditworthiness, enhances the country’s credit rating in international transactions, and provides cover for its local currency.
The country that has reserves takes into account their diversification (securities, deposits, gold and bonds…) in addition to geographical distribution to reduce exposure to risks and provide returns that ensure the sustainability of these reserves.
Diversified financial assets
In this regard, the Prime Minister’s Advisor, Mazhar Mohammed Salih, explained to Shafak News Agency, “Countries seek to diversify their reserves to include different currencies and various financial assets to achieve greater stability, and the US dollar is the main reserve in the reserves of these countries, because it is the most accepted and used global currency in international transactions and the most flexible.”
He added, “Most countries prefer to hold assets that provide them with a fixed and stable income, such as US or European treasury bonds that can generate annual interest, while gold does not generate fixed returns like government bonds.”
Saleh pointed out that “it is difficult to deal with gold in times of crisis, as it is difficult to convert gold into liquidity quickly compared to other financial assets such as foreign currencies and bonds.”
The foreign exchange reserve is the country’s reserve of foreign currencies, and is called the foreign exchange reserve. The purpose of the reserve is to protect itself and maneuver with it in times of economic recession or war.
The Central Bank of Iraq announced in 2024 that Iraq has a foreign currency reserve exceeding $100 billion.
Bond investment
For his part, the economic expert and professor of economics at the University of Iraq, Abdul Rahman Al-Mashhadani, stated that “the existing reserves of hard currencies are the reserves of countries, not governments,” indicating that “Iraq possesses a group of them amounting to approximately 106 billion dollars, of which 16 billion dollars is the value of gold in these reserves, and the rest is foreign currencies.”
Al-Mashhadani explained, during his talk to the agency, that “gold as a reserve cannot be invested except by buying and selling. Iraq sells when the price of gold rises and buys when the price falls, and thus achieves profits in this field,” adding, “Its storage in international banks is subject to fees.”
He pointed out that “the currency reserve is divided into more than one section, some of which are invested in US Treasury bonds in the range of 31 to 34 billion dollars, and the rest are used for debts,” noting that “Iraq does not have sovereign funds like Saudi Arabia and others for surplus currencies, which are invested in various fields.”
Iraq has 152.6 tons of gold reserves, which makes it 29th in the world out of 100 countries listed in the reserves table, and third in the Arab world after Saudi Arabia and Lebanon.
Foreign investment
In contrast, the financial expert and former general manager of the Central Bank, Mahmoud Dagher, pointed out that “Iraq has more than 100 billion dollars distributed among the world’s banks and central banks, especially the US Federal Reserve, the European Bank, the Bank of England in Britain, the Basel Bank in Switzerland, the Emirates, and Saudi Arabia.”
Dagher told Shafaq News Agency, “These reserves contain foreign currencies, bonds, and gold, and are managed by the Central Bank and achieve good financial returns. This is what is called foreign investment.”
Coin cover
In addition, Jamal Kojer, a member of the Parliamentary Finance Committee, told the agency, “Iraq’s large reserves of hard currency, including gold, provide cover for the local currency and give it stability.”
Koger added, “Many bet on the fall and demise of the currency, and therefore these reserves make the central bank intervene in the event of any imbalance facing financial policy.”
Variable reserves
But the economic expert, Hilal Al-Taan, saw that “all countries of the world boast about the amount of hard currency they have as a reserve, and this currency consists of the currencies of countries such as the dollar, the euro, and the franc, as well as gold.”
Al-Taan concluded, during his interview with Shafaq News Agency, that “Iraq is among the countries that were able, after 2003, to increase their currency balance to more than 110 billion dollars, and also to increase their gold balance to more than 150 tons.”
He concluded his speech by saying, “These reserves are constantly changing in terms of the returns that Iraq obtains, through investing these currencies as interest in banks and as bonds.”
CBI Governor announces imminent launch of major initiative to finance industrial projects
The Governor of the Central Bank, Ali Al-Alaq, confirmed today, Tuesday, the imminent launch of an initiative to finance industrial projects, while pointing out that financial stability is no less important than political and security stability.
The Governor of the Central Bank, Ali Al-Alaq, said in a dialogue session during the Iraq Energy Conference, which was attended by the correspondent of the Iraqi News Agency (INA): “The initiatives undertaken by the Central Bank represent tools to move the wheel of development and enhance economic stimulus. They are unconventional policies aimed at supporting the overall economy.”
He added that “the Central Bank is one of the global banking institutions that adopt unconventional monetary policies,” noting that “the size of the accumulations in the aspects of backwardness in the infrastructure is a major challenge.”
Al-Alaq explained that “the Central Bank is concerned with achieving economic stability, especially since energy factors are directly related to the economic situation through supporting factories, companies, and others.”
He pointed out that “the Central Bank intervenes in supporting and financing various projects, including renewable energy projects, whether through direct or indirect support.”
Al-Alaq pointed out “the importance of monetary and financial stability,” indicating that “it is no less important than political and security stability.”
He continued that “the Central Bank has launched multiple initiatives to finance real estate and small and medium-sized projects, as projects worth 13 trillion dinars have been financed since 2016 until now, which has contributed to the sustainability of the economy, in addition to allocating 1 trillion dinars to encourage citizens and companies to purchase solar energy units.”
He added that “there are ongoing arrangements to finance industrial projects in coordination with the Trade Bank of Iraq and the Industrial Bank,” indicating that “the liquidity available at the Trade Bank of Iraq will be used to support these projects, in addition to the funds of the Industrial Bank, with the aim of launching a major initiative to finance industrial projects, which is expected to see the light soon.”
He stressed that “the Council of Ministers has agreed to enhance cooperation between government banks with a financial surplus to finance industrial projects through the Industrial Bank, as it is the competent authority in this field,” stressing “the imminent launch of this major initiative.”
“Iraq on the threshold of an economic renaissance”.. Al-Sudani’s advisor reveals plans for the next stage
Mazhar Mohammed Saleh, the economic and financial advisor to Iraqi Prime Minister Mohammed Shia al-Sudani, revealed today, Tuesday, the expected economic situation of the country during the next stage.
Saleh told Shafaq News Agency, “Iraq has high economic capabilities, as it witnesses a cohesion between a renaissance in infrastructure on the one hand, and strategic development thinking on the other hand, most notably the development path that will attract local and international investments, in addition to the effective government contribution, which will constitute an unprecedented renaissance in the country, especially in the residential construction sector and new cities that have launched their projects and will not stop, and they are the best way to economic prosperity on the one hand and raise the level of employment in the country on the other hand.”
He pointed out that “Iraq also enjoys unprecedented price stability, as the annual price growth rate did not exceed 2.9% compared to a 6% increase in GDP growth, which makes Iraq move on the path of sustainable economic development at a steady pace, and all governorates are witnessing remarkable progress.”
Saleh continued, “The National Development Plan for the years 2024-2028 seeks to enhance the industrial sector’s contribution to the gross domestic product to about 2.2%, after it remained less than 1.8% in previous years,” indicating that “this launch will come through diversifying the industrial sector, both private and governmental, with a focus on moving from crude oil production to petroleum derivatives production and the petrochemical industry.”
Saleh stressed that “Iraq is the ninth country in the world in terms of natural resources, as its lands contain more than 16 trillion US dollars worth of these resources in terms of market value,” noting that “investing in these natural resources and manufacturing them will increase their added value several times, whether for the purposes of national industries or export.”
He explained that “the National Development Plan indicates efforts to rebuild the foundations of the manufacturing industry through real partnerships with the private sector, where the state contributes 85% of the financing of manufacturing industries, while the private sector bears 15% of the financing.”
Saleh added that “the financing strategy includes industrial projects on five levels, foremost of which are projects related to construction and housing or those related to development road works, then pharmaceutical industries, with a focus on the government’s economic philosophy based on a partnership between the state and the market with broad social security. This vision moves away from economic liberalism and its risks.”
He added, “Riyada Bank was established to provide small and medium-sized loans to young people, following the Prime Minister’s Riyada Initiative, which paved the way for providing thousands of loans to youth sectors and mobilizing their innovations and initiatives. This shows that 60% of the workforce is absorbed in small and medium-sized industries, in addition to continuing in strategic national industries such as petrochemicals and digital.”
Saleh concluded his statements by saying: “This is an important shift in the face of sustainable unemployment conditions, as unemployment rates have fallen to about 14% currently, and are expected to continue to decline to normal levels of no more than 4% of the total workforce, which is what we are looking forward to providing about half a million new job opportunities for people of working age, who are able and willing to work.”
Parliamentary Committee: Government Focuses on Supporting Non-Oil Revenues and Attracting Global Investments
The Parliamentary Economic Committee confirmed, on Monday, the development of a plan to study the financial situation and encourage non-oil revenues, while indicating the government’s support for the move towards non-oil revenues that strengthen the national economy and attract global investments.
Committee member Ruqayya Al-Nouri said in a statement reported by the official news agency, and seen by “Al-Eqtisad News”, that “the committee supports economic trends that benefit the country in general,” indicating that “there are many opportunities in the field of non-oil revenues.”
She added, “The committee needs to work together to study the financial and economic situation and encourage non-oil revenues while monitoring their distribution,” indicating that “Iraq has a vast stock of natural resources, and is a rich country not only in terms of oil, which encourages international companies to invest.”
She added, “The government of Prime Minister Mohammed Shia al-Sudani greatly supports the diversification of non-oil revenues and constantly emphasizes this trend.”
Financial disclosure and transparency is a strategic approach for the Central Bank
In the past few days, officials in financial and monetary policy were surprised by the statements of some unspecialized analysts and unspecialized media outlets about the crisis of the lack of liquidity in the Ministry of Finance and the Central Bank and the impact of this on delaying the securing of salaries of employees, retirees and social care.
The truth is that there is absolutely no such crisis, and this is what the Ministry of Finance and the Central Bank confirmed.
Central banks in the world’s countries aim primarily to achieve economic stability by achieving monetary and financial stability according to their programs and strategies that aim to maintain stability in the exchange rate of their local currencies against other foreign currencies and build sufficient foreign reserves according to special international standards.
Banks are also evaluated based on other standards related to facing crises, challenges and economic and political shocks in their countries and controlling stable rates of inflation and interest rates and implementing compliance systems and rules and combating money laundering and terrorist financing.
The Central Bank of Iraq’s journey during 2023 and 2024 has proven that it is moving steadily towards achieving the objectives of monetary policy and with a consistent and strategic approach that relies on transparency and disclosure of financial data and dealing with international financial organizations and institutions, based on the keenness to restore confidence in international banking transactions, which Iraq suffered from in previous years due to reputational risks and the negative media impact towards harming the Iraqi economy and leaking inaccurate and fabricated data, information and statements intentionally or by relying on data from other than its official source, which is the Central Bank exclusively.
This led the Central Bank’s management, which assumed responsibility in 2023, to draw up its third strategy, and one of its most prominent main and sub-goals was to adopt transparency and disclosure locally and internationally about the progress of the results achieved by the financial and banking sector and adherence to the standard international standards applied by reputable international banks, which led to the creation of a new and balanced relationship with international banks and banking institutions based on trust in the financial data provided and announced by the Central Bank.
This is what he announced from statistics, data and accurate analyses of what was achieved during the past two years. These are positive indicators achieved by the Central Bank for the third quarter of 2024 compared to the same period in 2022 and 2023, as the total deposits in banks operating in Iraq grew by (4.2%) and amounted to (127.6) trillion dinars, compared to its value of (122.4) trillion dinars in the third quarter of 2023, and the cash credit granted by operating banks also recorded a growth of (11.6%) and amounted to (72.7) trillion dinars, compared to its value of (65.1) trillion dinars in the third quarter of 2023.
Indicators and data showed that the narrow money supply in Iraq recorded a growth of (4.1%) in the third quarter of 2024, as its value reached (158.6) trillion dinars, compared to its value of (152.4) trillion dinars in the third quarter of 2023. In contrast, the broad money supply in Iraq recorded a growth of (3.3%), as its value reached (179.1) trillion dinars, compared to its value of (173.9) trillion dinars in the third quarter of 2023.
The Central Bank’s gold reserves also recorded a significant growth of (57%) in the third quarter of 2024, reaching (16) trillion dinars, compared to (10.7) trillion dinars in the third quarter of 2023, and the annual inflation rates in Iraq are among the lowest annual inflation rates in the countries of the region for the months of August and September of 2024, ranging between (3.1%) and (3.7%) respectively, which reflects price stability and the success of monetary policy in Iraq.
This confirms that the data issued by the Central Bank, published on its website and included in all media releases it issues, refute what is stated by non-specialists, such as representatives and analysts in various media outlets, especially regarding liquidity, reserves and salaries.
Through my analysis as a follower and specialist, I believe that the Central Bank’s disclosure of financial data with the required accuracy will greatly help restore confidence in our national economy and the Iraqi banking sector locally and internationally, because disclosure, transparency and credibility will contribute to restoring confidence in the Iraqi banking sector and raising the rate of financial inclusion.
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Mot: I NEVER Worry bout being – over da Hill — never over the hill
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