🛢️Why is the Iraq-Türkiye pipeline so critical to Iraq’s future and its overall economy?

First, a currency revaluation (RV) typically occurs when a country boasts a strong, stable economy. Conversely, a nation devalues its currency during times of economic weakness and heavy debt burdens, like Iraq did in 2003, when it faced $160 billion in external debt.

With that context in mind, consider this: Iraq has lost $20 billion in oil sales over the past two years due to the shutdown of the Iraq-Türkiye pipeline. Adding to the strain, Iraq’s foreign reserves shrank by 10.18% in 2024, while domestic public debt surged.

The CBI’s monetary and financial indicators show net foreign reserves fell to 130.81 trillion Iraqi dinars (roughly $100 billion), down from 145.64 trillion dinars ($111.3 billion) in 2023. A 17.7% spike in domestic debt, which climbed to 83.05 trillion dinars ($63.5 billion). The CBI explained that this extra borrowing was needed to cover the budget deficit.

However, The Central Bank of Iraq (CBI) hit a record high in gold purches with now 162 tons of gold. 16 billion. The Central Bank of iraq CBI has been increasing it's holding in gold reserves in 2024-2025.

📱 AJ

US to Open Largest Consulate in Erbil, Strengthening Diplomatic Ties

Bruce emphasized that the establishment of the consulate would enhance diplomatic cooperation between the US and regional authorities, fostering greater collaboration on mutual goals.

In a significant development, Tammy Bruce, the spokesperson for the United States Department of State, announced during a press conference on Monday that the US will soon open its largest consulate in the Kurdistan Region. Set to open next month in Erbil, this new consulate underscores America's unwavering commitment to its partnership with the Kurdistan Regional Government (KRG).

Bruce emphasized that the establishment of the consulate would enhance diplomatic cooperation between the US and regional authorities, fostering greater collaboration on mutual goals. These include addressing challenges such as countering extremism and promoting long-term peace in the region.

“The opening of the new consulate will deepen our ties with the Kurdistan Region, and we are committed to working together on shared priorities,” Bruce said. “This is an important step toward strengthening our relationship and supporting Iraq’s stability.”

While addressing the formation of the KRG, Bruce noted that the US encourages all parties to expedite the creation of a resilient and functional democracy. She stressed that such efforts are vital to ensuring Iraq’s continued peace and security.

The new consulate in Erbil is a symbol of the growing US commitment to the Kurdistan Region’s stability and future, marking a significant step forward in strengthening diplomatic and economic ties with the Kurdistan Region.

🔗 Kurdistan24

State Bank of Vietnam required to consider proposals on Basel III application

Prime Minister Phạm Minh Chính has directed the State Bank of Vietnam (SBV) to consider commercial banks’ proposals on implementing Basel III international banking standards.

Prime Minister Phạm Minh Chính has directed the State Bank of Vietnam (SBV) to consider commercial banks’ proposals on implementing Basel III international banking standards.

The direction is under the newly-issued Prime Minister's Directive 09/CT-TTg on the tasks and solutions of State-owned enterprises (SOEs) to contribute to the Government’s double-digit economic growth target.

Under the directive, the PM has also asked the SBV to study and implement banks’ recommendations on sandboxing applications with the spirit of creating space for creativity and evaluating effectiveness.

The SBV must also direct commercial banks to continue to reduce costs, increase the application of technology, simplify administrative procedures and review and restructure the organisational apparatus.

Commercial banks must be willing to share part of their profits by reducing lending interest rates in the spirit of ‘harmonised benefits and shared risks’, the PM noted.

Chính has required banks to promote credit more promptly and more effectively, especially for projects and sectors that are economic growth drivers, including digital transformation and green growth, while ensuring the safety of banking operations.

In addition, it is necessary to continue researching and implementing preferential credit packages to develop social housing and create favourable conditions for young people under 35 years old to buy social housing.

As for the application of Basel III standards, the Ministry of Finance has previously made public a draft resolution on the establishment of international financial centres in Việt Nam, asking for comments. Under the draft, the ministry expects Basel III will be applied in the centres from January 1, 2026.

However, the SBV responded that there is no practical basis for applying Basel III international standards in the centres from the proposed date.

The SBV believes that the roadmap for applying Basel III at the financial centres needs to be consistent with the roadmap applied to commercial banks and branches of foreign banks in the country.

The central bank suggests that in case of a need for immediate application, the ministry should clearly stipulate that the roadmap for applying the Basel III banking standards for foreign investors will be implemented in the financial centres from January 1, 2026 and this is considered a condition for granting an establishment licence in the centres.

Late last year the SBV also proposed adjusting the minimum capital adequacy ratio of banks from the current 8 per cent to 10.5 per cent to update regulations according to Basel III standards and to suit the specific operations of Vietnamese banks.

In Việt Nam, the banking system is moving towards applying Basel III standards to improve capital quality and liquidity, which helps create a foundation for a stable banking system that can recover from crises while minimizing systemic risks.

🔗 Việt Nam News