TNT
Tishwash:
Parliamentary Finance Committee reassures: Iraq has sufficient cash reserves to cover salaries for six months.
Jamal Kojar, a member of the Finance Committee in the Iraqi Parliament, confirmed on Wednesday that Iraq has a cash reserve of around $97 billion, which allows it to secure salaries for 6 months even if revenues stop completely.
In a televised interview, which was monitored by Al-Ghad Press, Kujer said: “There is no doubt that the repercussions of the war have already begun to appear globally.
If you ask a citizen in America, Italy, or even China about fuel and energy prices, you will find a clear impact because energy sources and trade routes have become threatened. As for Iraq, talking about the state’s inability to pay salaries at the moment is inaccurate, because the war is still in its early stages.”
He pointed out that “Iraq has gone through more difficult crises, such as the war against I--S (2014-2018) and the C----a crisis, and salaries were not cut.”
He added: “If the war continues for more than two additional months, or if Iraq becomes directly involved as a state in the conflict, then the economy and the bank reserves will be exposed to real risks, and we may see an impact on the value of the currency and difficulty in cash withdrawals.”
Kojo stressed that “closing the Strait of Hormuz is a catastrophic scenario for global trade routes, not just for Iraq,” adding, “We are also awaiting a speech from Trump, which may change the balance of power; he will either push for de-escalation or increase the severity of sanctions, and both will affect the global economy.” (LINK)
Oil production has stopped, and the public is asking, “Where is the liquidity?
The delay in paying employee salaries in recent days has sparked widespread concern among the Iraqi public, especially as the payment coincided with a long Eid holiday followed by heavy rains that disrupted work in several institutions. This has led to various interpretations, some pointing to a potential liquidity crisis amidst the current regional pressures.
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This comes after the suspension of official work for two consecutive days, Wednesday and Thursday, as part of the government’s celebrations of the national team’s qualification for the World Cup finals.
While this move was described as having a popular character and a message of moral support to the public, it also ignited a broad debate among political and economic circles regarding the limits of using official holidays as a tool for responding to events, and whether it aligns with the country’s work and production needs.
This comes after a series of government-announced holidays in recent days, following the Eid al-Fitr holiday, due to severe weather and heavy rainfall.
This has increased the number of official holidays in a short period, prompting observers to warn of the repercussions of accumulating holidays on institutional performance and public services.
The official weekend (Friday and Saturday) will exacerbate the suffering of employees already facing long waits for their salaries.
The salary delays come at a highly sensitive time, coinciding with the escalation of the regional conflict, which has directly impacted the Iraqi economy. This is particularly true given the near-complete halt in oil exports due to disruptions in supply routes through the Strait of Hormuz. Many are linking the salary delays to the decline in state revenues, as oil is the primary source of funding for the national budget.
In a country heavily reliant on oil revenues to cover operating expenses, especially salaries, any disruption to exports immediately affects public sentiment and heightens anxiety among citizens, especially in the absence of immediate clarifications to determine the nature of the situation and distinguish between administrative shortcomings and a potential financial crisis.
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He pointed out that “the alternatives currently available are not as easy as expected. We have the Kurdistan route and the Aqaba route through Jordan, which are available options, but their capacity is limited compared to Basra. Even Saudi Arabia may open its borders, but the question is: Will these routes remain safe from being targeted in the event of a full-scale war?”
Kujer continued: “I assure citizens that salaries will not be affected in the foreseeable future. Iraq has a cash reserve (about $97 billion) that allows it to secure salaries for 6 months even if revenues stop completely.” (LINK)
Source: Dinar Recaps
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