IMF: Iraq has maintained stability and inflation is low

[RJG]

IMF: Iraq has maintained stability and inflation is low

July 19, 2025

Baghdad/Iraq Observer

The International Monetary Fund confirmed on Saturday that Iraq has succeeded in maintaining its internal stability despite regional tensions, while noting that the inflation rate in Iraq has remained low.

The IMF stated in a report reviewed by Iraq Observer that “Iraq has succeeded in maintaining its internal stability despite regional tensions and unstable global conditions,” noting that “the inflation rate has remained low in Iraq,” stressing “the need to implement fundamental reforms to increase non-oil revenues and control the public wage bill,” indicating that “current and investment spending plans for 2025 should be reviewed.”

He stressed that "it is necessary and urgent to reform the public pension system by raising the retirement age and reducing the accumulation and replacement rates," praising "the Central Bank of Iraq's success in fully transitioning to the new trade finance system and its contribution to narrowing the gap between the official and parallel exchange rates."

The Fund stated that "the Central Bank of Iraq has begun studying reform options to strengthen the private banking sector," stressing, "We encourage Iraq to accelerate its efforts to improve the issuance and collection of electricity bills."
It also indicated that "progress has been made in implementing the National Anti-Corruption Strategy and improving the Corruption Perceptions Index," explaining that "it is essential to focus on closing the most pressing statistical gaps and integrating pilot initiatives."

https://observeriraq.net/صندوق-النقد-العراق-حافظ-على-استقراره-و/

[Dinarrock]

26 minutes ago, RJG said:

IMF: Iraq has maintained stability and inflation is low

July 19, 2025

Baghdad/Iraq Observer

The International Monetary Fund confirmed on Saturday that Iraq has succeeded in maintaining its internal stability despite regional tensions, while noting that the inflation rate in Iraq has remained low.

The IMF stated in a report reviewed by Iraq Observer that “Iraq has succeeded in maintaining its internal stability despite regional tensions and unstable global conditions,” noting that “the inflation rate has remained low in Iraq,” stressing “the need to implement fundamental reforms to increase non-oil revenues and control the public wage bill,” indicating that “current and investment spending plans for 2025 should be reviewed.”

He stressed that "it is necessary and urgent to reform the public pension system by raising the retirement age and reducing the accumulation and replacement rates," praising "the Central Bank of Iraq's success in fully transitioning to the new trade finance system and its contribution to narrowing the gap between the official and parallel exchange rates."

The Fund stated that "the Central Bank of Iraq has begun studying reform options to strengthen the private banking sector," stressing, "We encourage Iraq to accelerate its efforts to improve the issuance and collection of electricity bills."
It also indicated that "progress has been made in implementing the National Anti-Corruption Strategy and improving the Corruption Perceptions Index," explaining that "it is essential to focus on closing the most pressing statistical gaps and integrating pilot initiatives."

https://observeriraq.net/صندوق-النقد-العراق-حافظ-على-استقراره-و/

Than let them RV/RI their currency for a change!!!

[boosterbglee]

They have waited too long, now Iran will interfere with their economy one way or the other, droning oil wells?

 

 

[currenzcraze]

Iran is attacking the oil because they have been hacked out of their money.  

[Laid Back]

This is the second statement from the IMF about Iraq in one Week.

 

IMF Explains Iraq’s Exchange Rate Arrangement.

 

IMF: Iraq has maintained stability and inflation is low

 

The IMF's statements suggest that Iraq is making strides in macroeconomic management, particularly in stabilizing its exchange rate and controlling inflation. This provides a more favorable backdrop for investors than in previous years. However, the underlying structural challenges, particularly the heavy reliance on oil, fiscal vulnerabilities, and governance issues, mean that potential investors should proceed with thorough due diligence and a long-term perspective.Opportunities exist, especially in the context of infrastructure development and efforts to diversify the economy, but these are balanced by significant risks.

 

Lets Go Iraq 🇮🇶 

 

 

 

 

 

 

[JonnyV]

7 hours ago, boosterbglee said:

They have waited too long, now Iran will interfere with their economy one way or the other, droning oil wells?

 

 

 

6 hours ago, currenzcraze said:

Iran is attacking the oil because they have been hacked out of their money.  

 

Exactly.  I am sure there is a plan in place to stop the nonsense.  There are bankers and investors out there that want their money and Iran or Maliki can’t stop them.  

[boosterbglee]

My other thought on this, who would benefit the most from another Iran - Iraq war?

[Theseus]

Well any plan, or anything, is better than what they have in place now:

 

Balance of Payments (Years 2024, 2025, 2026)

Current account (% of GDP) 2.0 0.2 -1.9

Foreign direct investment (% of GDP) 0.0 0.0 0.0

Gross reserves (US$ billions) 100.3 91.0 79.2

In months of imports 11.1 11.1 9.6

Total external debt (% of GDP) 20.6 20.8 21.0

 

Directly from the Iraq: 2025 Article IV Press Release PDF page 4.

 

Cuz right now they ain't got nobody...nobody...cares for Iraq Foreign Direct Investment. SO the IMF has to do something to change it around. No investment no RV. No RV no profit for the investor. Risk outweighs the rewards at this point. 

Edited July 21 by Theseus

[horsesoldier]

So there's a chance???? 😜 

[screwball]

On 7/21/2025 at 4:15 AM, Laid Back said:

This is the second statement from the IMF about Iraq in one Week.

 

IMF Explains Iraq’s Exchange Rate Arrangement.

 

IMF: Iraq has maintained stability and inflation is low

 

The IMF's statements suggest that Iraq is making strides in macroeconomic management, particularly in stabilizing its exchange rate and controlling inflation. This provides a more favorable backdrop for investors than in previous years. However, the underlying structural challenges, particularly the heavy reliance on oil, fiscal vulnerabilities, and governance issues, mean that potential investors should proceed with thorough due diligence and a long-term perspective.Opportunities exist, especially in the context of infrastructure development and efforts to diversify the economy, but these are balanced by significant risks.

 

Lets Go Iraq 🇮🇶 

 

 

 

 

 

 

talking about exchange rate at a time when the US FED is heading into their blackout period at a time also when tariffs are due to kick in on August 1st and Fed Chairman possibly resigning very soon!

[screwball]

could we see a reset of Iraqs and the USA Financial system at same time!

[3n1]

2 minutes ago, screwball said:

could we see a reset of Iraqs and the USA Financial system at same time!

 

dont know bout the usa but iraq better reset to at least 2 to 1 ....... thanks SB letsroll

[screwball]

On 7/22/2025 at 2:42 AM, Theseus said:

Cuz right now they ain't got nobody...nobody...cares for Iraq Foreign Direct Investment. SO the IMF has to do something to change it around. No investment no RV. No RV no profit for the investor. Risk outweighs the rewards at this point. 

yep...because they cant repatriate any profits......unless I can transfer my money in and out freely then why would I invest I also wonder if they are waiting on rate change before investment, think back to 201202013 all that money that was loaned for reconstruction and then ISAS destroyed Mosul and shite went down big time! many loans and nothing really to show for it....countries are waiting before committing their foreign investment I think!

[Shedagal]

12 minutes ago, screwball said:

could we see a reset of Iraqs and the USA Financial system at same time!

That's the plan!!