Clare: Makkia: Iraq is heading towards a major investment marathon
The head of the National Investment Commission, Haider Makiya, confirmed on Wednesday that Iraq is heading towards a major investment marathon for many projects, while he indicated that funding from international institutions reduces the burden on the Ministry of Finance by granting loans for investment projects.
Makiya said in a statement reported by the official news agency, and seen by “Al-Eqtisad News”, that “we found many economic visions in the first version of the Iraq Economic Forum”, noting that “the issue of the possibility of benefiting from the financing of international institutions known to the Central Bank was raised in order to reduce the burden on the Ministry of Finance to grant loans and facilities to local investment projects or even foreign projects.”
He added, “It is necessary to seek external funding to finance investment projects, especially since Iraq is about to embark on a major investment marathon for many investment projects inside Iraq.”
Makiya explained that “the understandings with the International Financing Program are still in effect, and we hope for all major investment projects in the field of renewable energy and waste treatment to generate electricity,” noting that “we hope to search for solid institutions to develop the projects, especially since their amounts are very large.”
Clare: Central Bank Governor receives Azerbaijani Ambassador
His Excellency the Governor of the Central Bank of Iraq, Mr. Ali Mohsen Al-Alaq, received His Excellency the Azerbaijani Ambassador to Iraq, Mr. Nasir Mammadov.
During the meeting, they discussed cooperation relations between Iraq and Azerbaijan and ways to develop them to include various economic fields. His Excellency the Governor stressed the need to improve the nature of bilateral relations and expand the horizons of cooperation in the banking sector for the two countries, in addition to their positive impact on the economic, tourism and investment sectors.
He pointed out the importance of cooperation in terms of exchanging experiences and the process of transferring money to facilitate trade between the two countries.
For his part, His Excellency the Ambassador stressed the importance of economic relations with Iraq and the need to overcome obstacles to enhance and grow them, extending an invitation to His Excellency the Governor to visit Azerbaijan in preparation for future cooperation in the economic and banking fields.
Central Bank of Iraq
Media Office
November 6, 2024
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Clare: 2025 Strong national economy and sound banks
In an important presentation before the MERI Conference on Economic, Financial and Banking Reform, the Governor of the Central Bank, Mr. Ali Mohsen Al-Alaq, explained the indicators of the recovery of our national economy and the major transformations in the structure of government and private banks achieved in 2023 and 2024 and expected in 2025.
These are standard indicators that are relied upon to evaluate the strength of the economy and the soundness of the banking sector.
The most prominent of these indicators are the sufficiency of foreign cash reserves, the local currency issued, the inflation rate and the external debt, while emphasizing that the objectives of the monetary policy of the Central Bank stipulated in its applicable law are to achieve economic growth and stability, and that one of its main objectives is to achieve stability in the financial and monetary system, reduce inflation rates and stabilize the prices of goods and services in extremely complex economic, security and political conditions that Iraq suffered from in 2023 and 2024 and that the world is currently going through, especially the countries of the geographical region, which our country is negatively and positively affected by.
These conditions have been suffered by our economy for decades, and the reason is the rentier economy and the dependence of 95% of the general budget revenues on oil, which constitutes approximately 60% of the gross domestic product.
The government is making clear efforts to revolutionize the active economic sectors, namely agriculture, industry, tourism, customs and tax services fees, and to increase their share in the general budget revenues to 20%. The low contribution of these sectors to the gross domestic product has led to the absence of local production that covers the consumption needs of citizens for food and other basic materials. Therefore, there was almost complete dependence on imports for the private commercial sector from different sources.
Successive governments were unable to control internal trade and regulate foreign trade, and the weak control over illegal trade and unofficial border crossings, which led to the impact on the monetary and commercial market.
Therefore, this indicator was the most prominent challenge facing monetary policy and directly affected the stability of the exchange rate, which led the Central Bank to take many measures in cooperation with the government to regulate foreign trade, control foreign transfers, regularity in the global financial and banking system, compliance with international standards, digital transformation in the banking sector, and work on preparing and launching its new strategy for banking reform
And classification in all its basic links at the level of internal and external banking transactions, the most prominent of which is securing the US dollar for major and registered traders and for every trader, regardless of his classification, at the official price exclusively through the electronic platform.
This was achieved through analyzing the indicators of the annual inflation rate, which amounted to 3.8% after it was 4.4%, and by comparing it with the annual inflation rates of regional and neighboring countries. Inflation rates in most of these countries reached very high rates, reaching 80.2% in Turkey, 117.4% in Sudan, 40.0% in Iran, and in the Maghreb countries with relative economic stability in Tunisia 9.3%, Algeria 9.0%, Morocco 5.0%, and in Egypt 37.4%, and in the Gulf countries with stable and oil-rich economies, they ranged between 2.4% and 4.8%.
This confirms, without a doubt, that the strategy of the Central Bank and its procedures during the years 2023 and 2024 achieved one of the basic objectives of monetary policy, which is to reduce the inflation rate and maintain the general level of prices of goods and services.
It is currently working to achieve other objectives, which are the stability of the exchange rate and maintaining a foreign reserve that covers the local currency in circulation and imports, which exceeded $100 billion, with a sufficiency of 140%, which covers the local currency in circulation.
Therefore, the economic results and outputs confirm that the policies and procedures undertaken by the Central Bank in cooperation with the government have achieved an important objective of monetary policy, to achieve stability in the monetary system, which is an important step in achieving the other objectives of monetary policy.
It must be noted that one of the most prominent indicators of the strength and recovery of our economy is what the International Monetary Fund recently predicted, that the expected economic growth rate in 2025 will be 5.3%, while it contracted by 2.2% in 2022.
The expected rate is higher than the growth rates in Morocco, Kuwait, Bahrain, Oman, Algeria, Jordan and Qatar. It is an indicator of the strength of our economy and is an inevitable result of the economic and financial reform programs implemented by the government and the Central Bank since 2023.
