Central Bank of Iraq sales exceed $1 billion in five days
The total sales of the Central Bank of Iraq of hard currency (US dollar) during the past week amounted to more than one billion dollars, as the auction was opened for five days.
According to Shafaq News Agency correspondent, the Central Bank sold during this period an amount of 1 billion, 434 million, 982 thousand, and 505 dollars, at a daily rate of 286 million, 996 thousand, and 501 dollars, which represents an increase over the sales of the previous week, which amounted to 1 billion, 169 million, 32 thousand, and 884 dollars.
The highest dollar sales were recorded on Monday, reaching $292,427,713, while the lowest sales were on Wednesday, recording $281,979,344.
Our correspondent pointed out that foreign remittance sales during the past week amounted to 1 billion, 380 million, 782 thousand, and 505 dollars, an increase of 96% compared to cash sales, which recorded 54 million, 200 thousand dollars.
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Al-Alaq: 90% of Iraqi housing projects are funded by the Central Bank with 13 trillion dinars
The Governor of the Central Bank of Iraq, Ali Al-Alaq, confirmed on Saturday that 90% of housing projects in Iraq are financed by the bank, and have led to the activation of economic activity in the country, noting that the financing of housing, commercial and investment loans has reached 13 trillion dinars.
Al-Alaq said during his speech at the conference held by Al-Baidar Center for Studies under the title “Transition towards a flexible economy in Iraq”, which was attended by Shafaq News Agency correspondent, that “there must be a comprehensive strategy that focuses on policies that create a real partnership between the public and private sectors and move to mobilize economic tools, whether in financial or economic policy.”
He pointed out that “one of these tools is the state’s general budget, which constitutes a fundamental pillar in determining the paths of the economy and growth and represents a real confrontation with the challenge,” indicating that “the absence of planning has become a kind of challenge represented by the fact that flexibility in the spending aspect is limited, and this requires that there be an ability to cover actual and real spending.”
He explained that “restructuring the budget is necessary because the state’s public spending determines many paths and the shape of the different economic trends and confronts the changes that occur in this framework.”
Al-Alaq pointed out that “the recent call by Prime Minister Mohammed Shia al-Sudani to restructure the state ministries and their laws is aimed at addressing the role of the government and ministries and participation in the public and economic sector.”
He stressed that “there is talk about resources that could generate revenues for the state, if there was real efficiency and effectiveness in generating revenues, and that there are many sources and opportunities to enhance those revenues,” indicating that “the intensification with the change that occurs in oil prices leads to a decrease in the state’s general budget revenues, and is reflected in the investment budget, and considering that the other part is represented by salaries and wages, the decrease in oil prices affects investments.”
He explained that “monetary and fiscal policy constitute economic policy and there must be effective coordination between the two policies to reach acceptable results,” stressing that “the preparation of the general budget must be a basic partner in shaping its features, and this matter is largely related to the function of the bank. For example, the size of the deficit has a direct impact on monetary policy and this must be studied directly.”
Al-Alaq concluded by saying, “Supporting private sector financing should be a key partner with the government to implement the economic program in many sectors, and the Central Bank launched the initiative to finance residential, commercial and investment loans, and this number reached 13 trillion dinars to finance projects, as 90% of housing projects in Iraq are financed by the Central Bank and have led to the activation of economic activity in the country.”
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Prime Minister’s Advisor: The government can increase spending without risking inflation or deficits
Saleh emphasized that the government’s effective management of fiscal space means that investment spending on projects has not been disrupted, even during months with irregular public revenue.
He added, “The good performance of fiscal space reflects the government’s ability to boost spending or enhance social support without facing significant fiscal challenges such as inflation or large deficits.”
Saleh also noted that this fiscal flexibility remains available as Iraq’s economic conditions improve, enabling the government to implement policies that stimulate growth, such as increasing infrastructure investment or enhancing social services.
Investment Authority announces a qualitative shift in attracting foreign investment to the Iraqi market
The head of the commission, Haider Makiya, told the Iraqi News Agency (INA): “The residential cities are working at full speed and it is hoped that the steps will accelerate so that we can notice the achievement on them soon,” indicating that “there are important investment projects as the commission was able to issue investment licenses worth 69 billion dollars, of which 66 billion dollars are foreign money that we attracted to the Iraqi market, and this is a qualitative shift in investment and attracting investment to Iraq.”
Makiya added, “These companies are major foreign companies and sometimes Iraqi companies in alliance with foreign companies.”
Regarding the delivery of residential units in the Bismayah complex, Makkia explained, “There is a timetable for the authority to receive the apartments from Hanwha Company. The company delivers a group of residential units ranging from 5,000 to 6,000 residential units, and sometimes if the pace of work is increasing, the number may increase beyond that. We have received these units, and we, in turn, deliver them in batches to the citizens.”
