Breaking news: Iraqi budget for 2024 is voted on
A financial advisor to Prime Minister Mazhar Muhammad Saleh revealed the date of the government's implementation of the 2024 financial budget schedules approved by the House of Representatives today, Monday.
The summary: What's next?
Budget approval:
The financial budget for 2024 has been approved by the House of Representatives.
Implementation:
Once approved, the implementation phase will begin once published in the Official Gazette.
Steps towards currency revaluation
Legislative approval: Any changes, such as removing zeros or changing the exchange rate, must be approved legislatively.
Economic conditions:
The Central Bank of Iraq and relevant financial authorities will need to assess economic conditions to ensure post-revaluation stability. And the project, together with trade agreements, will help. Check out the latest post.
International coordination:
Coordination with international financial institutions and market participants is crucial to re-establish the currency in the global trade market. This will help increase the value.
Potential timeline:
Immediate Implementation:
Once the budget is officially implemented, financial authorities could initiate preliminary steps towards revaluation if conditions are economically favorable. Which shouldn't be a problem when you think about how much gold is at stake.
Government statements:
Stay tuned for official statements from the Central Bank of Iraq or the Ministry of Finance regarding revaluation plans and schedules. But this can also come out of nowhere and without warning.
Financial implications:
Project financing:
A new exchange rate will help finance large projects by making the currency more viable in international markets once the 3 zeros that by default will give purchasing power to Iraqis are removed.
Monetary policy adjustments:
Continued efforts by the BCI to ensure compliance with anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations to stabilize the foreign exchange market and ensure private sector access to foreign exchange at the official rate for imports and travel.
Non-oil GDP growth:
Growth in the non-oil sector is critical, with real non-oil GDP set to grow by 6% in 2024. This growth is expected to continue, supported by public spending and strong agricultural production.
US Treasury and IMF participation:
Coordination with international financial institutions, such as the IMF and the US Federal Reserve, to ensure smooth financial operations and compliance with global standards. The 2024 IMF Article IV consultation highlights the need for fiscal adjustments and economic reforms.
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Well, this is all what they say is being worked on. We'll see when it becomes official.
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