Shafaq News / The year 2023 in Iraq witnessed significant economic events, profoundly impacting the markets amid the surge in the dollar's value and various fluctuations. This period also emphasized the country's reliance on oil revenues, which constitute 95% of its budget.
Central Bank Developments:
January 23, 2023: Prime Minister Mohammed Shia Al-Sudani relieved Mustafa Ghaleb Mukhif as the governor of the Central Bank (CBI) and appointed Ali Mohsen Al-Alaq to take over.
February 11, 2023: CBI sealed an agreement with the American financial institution "JPMorgan" to streamline banking system payments from Iraq to China, aimed at directly funding the private sector's imports.
May 30, 2023: CBI announced the acquisition of 2.3 tons of new gold, increasing its reserves to 132.74 tons, maintaining its global ranking at 30th place.
July 29, 2023: The US Treasury imposed sanctions on 14 Iraqi banks involved in transferring US currency from Iraq to Iran and other sanctioned nations, citing their involvement in money laundering and fraudulent transactions.
October 5, 2023: CBI confirmed the prohibition of cash withdrawals and transactions in US dollars from January 1, 2024, to curb financial crimes and evade US sanctions.
Oil Sector Highlights:
March 26, 2023: Iraq halted crude oil exports from Kurdistan Region (KRI) and Kirkuk fields following an arbitration case victory against Turkey, ceasing exports of up to 450,000 barrels per day.
April 1, 2023: The Karbala Oil Refinery, capable of producing 140,000 barrels per day, was inaugurated.
June 18, 2023: Oil Minister Hayyan Abdul Ghani announced the launch of the sixth licensing round for gas exploration in Najaf, al-Anbar, and Nineveh.
Finance and Trade:
February 2023: The exchange rate surged to 170,000 Iraqi dinars against 100 US dollars on the Baghdad Stock Exchange.
June 6, 2023: The Parliament approved a record-breaking federal budget of approximately $153 billion annually for the years 2023 to 2025.
Agricultural Developments:
August 22, 2023: Water scarcity prevented the cultivation of Amber rice in Najaf, Diwaniyah, and Muthanna due to insufficient water resources.
September 5, 2023: KRI exported a thousand tons of potatoes to the United Arab Emirates.
October 1, 2023: Ministries of Water Resources and Agriculture agreed to cultivate 5.5 million dunams for the winter season of 2023-2024.
Electricity Initiatives:
April 2023: Electricity completed full electrical connection with Turkey, ensuring competitive consumption prices.
June 11, 2023: Iraq initiated work on an electrical interconnection network with Gulf Cooperation Council countries, aiming for 500 megawatts capacity by late 2024.
September 30, 2023: Electricity announced the complete electrical connection with Jordan, intending to supply Iraq with an initial 150-megawatt capacity.
Commerce:
August 2023: The Ministry of Commerce commenced the distribution of electronic ration cards for food items to citizens.
April 2023: Flour in ration quotas was replaced with bread from selected bakeries in Baghdad, namely Dawoodi, Mansour, and Harithiya.
Iraq Stock Exchange:
December 28, 2023: The stock market witnessed a trade of approximately 700 billion dinars in stocks throughout the year 2023.