Latest news with #Mohammedal-Hassani
Shafaq News
14 hours ago
- Business
- Shafaq News
Iraq's rentier economy: Risks and reforms
Shafaq News/ Iraq's continued dependence on a rentier economic model poses long-term risks, as it encourages a consumption-driven society and weakens domestic production, an Iraqi economist warned on Wednesday. Speaking to Shafaq News Agency, economic expert Mohammed al-Hassani said, 'A rentier economy is usually fragile, creates a consumerist society dominated by imports, and neglects transformative industries — a description that fits Iraq.' Al-Hassani urged the Iraqi government to take concrete steps toward developing the country's industrial and agricultural sectors to invigorate foreign trade. 'This would help generate higher state revenues, support the national income, and strengthen the federal treasury,' he added. Recent data from Iraq's Ministry of Finance showed that revenues in the federal budget exceeded 27 trillion dinars (about $18,8M) between January and March 2025, with oil contributing 91% of the total — reinforcing the rentier nature of the economy. According to financial reports released in June, Iraq's total revenues for the first quarter amounted to 27.25 trillion dinars, while total expenditures reached approximately 26.66 trillion dinars. Oil revenues alone stood at 24.91 trillion dinars, accounting for 91% of total income. Non-oil revenues amounted to just 2.33 trillion dinars. In a prior statement to Shafaq News, the prime minister's financial advisor, Mudher Mohammed Salih, attributed the persistence of Iraq's rentier economy to decades of war, international sanctions, and ongoing political instability — all of which have squandered the country's economic potential. Salih added that Iraq's continued reliance on oil as its sole revenue source leaves it vulnerable to global market fluctuations. This dependence, he noted, often forces the country to resort to borrowing to cover fiscal deficits, highlighting weak financial management and the lack of viable alternative funding strategies.
Shafaq News
12-05-2025
- Business
- Shafaq News
Dollar-dinar exchange rate expected to hold steady in Iraq
Shafaq News/ The exchange rate of the US dollar against the Iraqi dinar is expected to stabilize between 140,000 and 143,000 IQD per $100, according to Iraqi economic expert Mohammed al-Hassani. Speaking to Shafaq News, al-Hassani said the relative stabilization in Iraq's parallel market is driven by monetary policies implemented by the Central Bank of Iraq (CBI) and ongoing domestic market contraction, which has increased dollar supply amid weakened demand. 'The current range is likely to hold for a while due to these combined factors,' he noted. However, Al-Hassani pointed out that a return to the official exchange rate set by CBI remains unlikely in the near term, citing continued instability in Iraq's market conditions. The US dollar has seen a gradual decline in recent weeks. As of Monday, it traded at 142,500 IQD per $100 on local currency exchanges.
Shafaq News
05-03-2025
- Business
- Shafaq News
Dinar dips: CBI auction freeze triggers market concerns
Shafaq News/ The Iraqi dinar fell against the US dollar in local markets after the Central Bank of Iraq (CBI) halted its currency auction, fuelling concerns over exchange rate stability. Economist Mohammed al-Hassani explained that the CBI had failed to publish its currency auction data for two consecutive days, which led to a surge in demand for the dollar. "The increased demand, combined with a limited supply, has driven the dollar's value higher," he told Shafaq News. He also noted that speculation in the currency market may be contributing to the fluctuation. As a result, the exchange rate rose to over 149,000 dinars per $100, after having recently fallen to around 146,000 dinars per $100. Moreover, economist and former CBI Director General Mahmoud Dagher previously attributed the decline in the dollar's value to the outflow of US currency into neighboring countries, which he said helped replenish their foreign reserves. However, he warned that this trend might not persist. "The continued decline in the dollar's price is not guaranteed, as market speculation could destabilize the exchange rate," he cautioned. The CBI has yet to provide an explanation for suspending the auction, adding to the uncertainty in the market.
