FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
IRAQ STOCK EXCHANGE
ECONOMIC AND POLITICAL DEVELOPMENTS
Iraq Country Report 2008
Iraq’s economy is on track to reach GDP
growth rates in 2008 of 7 per cent, driven by
oil price movements, the International
Monetary Fund (IMF) report in January 2008.
The upbeat assessment is based on a
meeting convened in Washington between the
IMF and the Iraqi Ministries and other senior
officials from their banking community.
According to the IMF, “The fiscal stance [in
Iraq] was successful in containing current
spending, but fell short in the implementation
of the ambitious investment program, which,
combined with the difficult security situation,
prevented the envisaged expansion of oil
output.
“Rising oil prices, however, more than offset
the production shortfall, thus helping to
preserve fiscal sustainability. High inflation was
sharply reduced by appreciating the exchange
rate, tightening monetary policy, and
controlling current government spending.”
An unexpected bonus was the rapid jump in
net international reserves to A$23 billion, which
are expected to climb even further during the
year as Iraqi authorities make provision for
massive inward investment flows in this year’s
budget.
Offsetting the 7 per cent GDP growth is
inflation which is in two-digits. But it’s now
falling due to improved capacity. Meanwhile
their currency is currently loosely pegged to
the greenback on a “crawling” basis, meaning
that even in Iraq you are not safe from sub-
prime contagion.
On the governance front, the Iraqi authorities
are aiming to strengthen public financial
management and central bank accounting
frameworks while also restructuring two of
largest public banks. Meanwhile improving oil
sector oversight arrangements are also on the
agenda, especially with oil production
expected to jump to 2.2 million barrels per
day. These governance reforms include re-
establishing the Iraq National Oil Company
and reorganizing the Ministry of Oil.
The Paris Club said in a statement issued in
2008 that the members of the club’s 19 state
made a decision to drop the seven billion and
800 thousand dollars in debts owed by Iraq
after the audit conducted by the International
Monetary Fund recently to reform the Iraqi
economy and the general budget for next
year.
This amount is the last of Iraq’s debt to the
Paris Club group which renounced the final
standing under the Convention four years to
reduce Iraq’s debt to the Paris Club group by
80%.
The Arab Monetary Fund signed the
Convention on the settlement of Iraq’s debts
to the Fund in Amman - Jordan on June 14,
2008 and presented to the Council a
memorandum of all the measures resulting
from this to be presented to the IMF Board of
Governors to ratify the Convention on the
Settlement According to halt Iraq’s suspension
of the Fund.*
* Information provided by Iraq Stock Exchange
2008 year saw many changes the first half of
the year optimistic and ambitious in the face of
rising oil prices to over U.S. $ 100 per barrel
because of Iraq and issued 1.5 million barrels
per day and imports were important for the
Iraqi State. But the emergence of the global
financial crisis and the escalation of the
emergence of global recession led to a review
in the accounts of many of the expected
economic plans for 2008 and 2009 alike.
Iraqi Central Bank to reduce interest rate
monetary policy has adopted, for a 14% per
year rather than 15%, starting the fourth of
January 2009. And reduce the interest rate
monetary policy, will have to adjust interest
rates, deposit and lending to the Central Bank
of Iraq, according to go winning in the rate of
annual interest "in the light of the downward
trend, which signal the consumer price index
in November 2008, and which recorded
annual inflation Foundation annual rate of
12.7% compared to October 2008 the
Key Information Contacts
Iraq Association of Securities Dealers: www.iasd-iq.org
Iraq Central Bank: www.cbiraq.org
PAGE 70
foundation has annual inflation rate of 13.6%.
According to the rules of economic stability
and mechanisms adopted by the monetary
policy to stimulate activity in the credit level of
support for real growth in the country, in order
to maintain sustainable growth rates desirable
In the gross domestic product. To the Iraqi
Central Bank announced a reduction of
interest rate monetary policy has adopted, for
a 14% per year rather than 15%, starting the
fourth of January 2009.