It has exceeded 7 decades.. The infrastructure of Iraq’s oil export system threatens its only source of budgets
Following the deterioration of the infrastructure of the Iraqi oil export pipeline system, which is more than 70 years old, a recent press report highlighted a set of risks facing the Iraqi oil sector.
Experts have reported that the oil sector is the sole source of Iraq’s annual budget and it relies heavily on the daily pumping of millions of barrels of oil to different continents worldwide. However, there is still a need for development projects that can enhance the production capacity of crude oil to six million barrels per day.
An official from the Oil Marketing Company (SOMO) stated in a press report that they have plans to undertake projects to enhance the marine export pipeline system used to transport oil. However, due to the delay in approving the budget, and further postponement after the approval, the implementation of these projects has been affected. As a result, these projects are likely to be postponed until next year.
Iraq has abundant oil resources, but war and corruption have left the country with a dilapidated infrastructure.
The anonymous official explained that the pipeline system aims to increase Iraq’s crude oil export capacity to 6 million barrels per day.
Last year, the Basra Oil Company announced a major project to develop marine export pipelines. The project involves laying two 48-inch pipelines, rehabilitating the ports of Basra and Al-Amaya, building a marine platform, and installing measuring devices to enable flexibility in exporting different types of oil.
In May, the Iraqi Council of Ministers awarded the project to establish the third marine export pipeline to the Basra Oil Company, under the custody of the Dutch company Boskalis. The pipeline has a diameter of 48 knots and an operational capacity of two million barrels per day. The project was awarded for approximately $420 million. However, on June 21st, the Iraqi government suspended the decision related to the third marine pipeline project without providing any reasons.
The Arab World News Agency (AWP) reported that Iraqi oil expert Kovind Sherwani stated that the current government is highly interested in developing the country’s oil sector at all levels. With the recent increase in global oil prices, the financial abundance makes the implementation of large-scale projects feasible in the near future.
Sherwani stated that Iraq is currently experiencing significant challenges with its marine and land export systems. There is a pressing need to upgrade the marine export pipelines that transport oil, as the existing pipelines are in a state of disrepair and are susceptible to leaks, despite undergoing frequent repairs.
He went on to say, “The current export system in Iraq has been in place for over 70 years and urgently needs new projects to create export pipelines that will significantly increase capacity. However, implementing such large-scale projects requires huge financial investments and must be included in the budget to make them binding on the Iraqi government.”
In December of last year, SOMO unveiled a plan to upgrade marine pipelines in order to increase exports by 900,000 barrels per day.
According to Iraqi oil expert Bilal Khalifa, it is estimated that the cost of developing a marine export pipeline system would be more than 15 billion dollars. This is one of the reasons why the project is being delayed due to Iraq’s unstable economic conditions, despite the presence of international loans to complete it. There may also be technical or legal reasons that are not yet known.
Al-Khalifa emphasized the urgent need for upgrading the marine export pipeline system. The current system is outdated and almost in ruins, making it incompatible with the current production capacity. Therefore, the development process must be expedited to keep pace with the growing demand.
According to S&P Global, loading volumes at Iraq’s aging facilities in Basra are unlikely to increase in the near future. This could prevent any meaningful gains in production and hinder the country’s ability to benefit from higher oil prices.
According to oil expert Hamza Al-Jawahiri, the development of the oil-carrying pipeline system will increase Iraq’s export capacity by about 1.5 million barrels per day. This is a positive development for Iraq, especially if there is an increase in production and export by a decision from OPEC (the Organization of the Petroleum Exporting Countries).
Al-Jawahiri stated that significant oil projects often face obstruction and delay in their progress. This is contributing to the slow development of Iraq’s oil and gas sector over the past few years. Hence, the Ministry of Oil needs to focus on these projects, especially since the country relies solely on oil to support its financial budgets.
During his speech, he emphasized the importance of engaging with specialized international companies to develop the marine export pipeline system and create new pipelines. He pointed out that there are companies with expertise in this area, and national oil companies can benefit from their experience by supporting their work.
A source in the Iraqi banking sector reported the arrival of new shipments of US dollars on Wednesday.
According to an INA source, the Iraqi banks have received new shipments of US dollars at the Baghdad International Airport to meet customer needs.
The informant mentioned that more shipments are expected to arrive in the next few days. I have ensured that there are no spelling, grammar, or punctuation errors in the revised text.
In mid-November, a government official revealed that three private banks in Iraq received official authorization from the Central Bank of Iraq (CBI) to import US dollars to meet the needs of their clients.
The source confirmed that one of the banks had already shipped amounts of up to $100 million to Iraq.
The CBI is reviewing additional requests from other Iraqi banks to import US dollars, according to an official.
The Trade Bank of Iraq (TBI) is in talks with several international companies to transfer $120 million to Iraq in the coming days, according to an INA source.
The recent decision by the CBI allowing private banks to import foreign currencies via commercial flights has sparked controversy as Iraqi lawmakers and legal experts have deemed it unconstitutional according to The News Arab.
Officials from the CBI recently held intensive meetings with US officials in Abu Dhabi to discuss covering imports via external transfers.
The Dinar Will Recover.. Iraq Is Approaching An “Imminent End” To The Dollar Crisis Before The End Of 2023
Economy |11-27-2023, Baghdad today – Baghdad Today, Monday (November 27, 2023), the Parliamentary Finance Committee commented on the possibility of the Iraqi government succeeding in controlling the dollar by the end of the current year.
Committee member Moeen Al-Kazemi told Baghdad Al-Youm, “The government and the central bank are working to end the dollar crisis once and for all, and there is great progress in this file and there is control over the market, as well as a gradual decline in exchange rates in the parallel market.”
Al-Kadhimi added, "We expect that the new year will witness a significant decline in dollar prices with the rise in the value of the Iraqi dinar, especially with the presence of government decisions and directives to address all the causes of the dollar crisis, and we expect that economic and financial stability will be strongly present at the beginning of next year."
Earlier, a senior official in the Central Bank of Iraq told Reuters that the country will ban cash withdrawals and transactions in dollars as of January 1, 2024, in the latest effort to limit the misuse of the country’s hard currency reserves in financial crimes and evade US sanctions on Iran. .
Mazen Ahmed, Director General of the Investment and Transfer Department at the Central Bank of Iraq, told Reuters that the aim of the step is to stop the illegal use of about 50 percent of the $10 billion cash amount that Iraq imports annually from the Federal Reserve Bank in New York.
This step comes as part of a broader campaign to stop the economy's dependence on the dollar after residents began to prefer the US currency over the dinar. Ahmed said that people who deposit dollars in banks before the end of 2023 will be able to withdraw money in dollars in 2024. But dollars deposited in 2024 can only be withdrawn in the local currency at the official rate of 1,320 dinars to the dollar.
Official Price
Ahmed said, "You want to transfer money? To do so. You want a card in dollars? Here you go. You can use the card inside Iraq at the official rate, or if you want to withdraw cash, you can at the official rate in dinars... but don't talk to me about dollars in cash anymore."
Iraq has already created a platform to organize bank transfers that make up the bulk of demand for dollars, and which has served as a hotbed for counterfeit receipts and fraudulent transactions that have leaked dollars to Iran and Syria, which are under US sanctions.
Ahmed stated that this system, which was put in place in coordination with the authorities in the United States where Iraq's reserves of $120 billion from oil sales are kept, is now almost airtight and provides dollars at the official rate to those who engage in legitimate trade activities such as importing food and consumer goods. But he said that the misuse of cash withdrawals continues in ways that include travelers who are officially entitled to $3,000 but are looking for ways to circumvent the system.
Iraq relies heavily on its good relations with Washington to ensure that the country's oil revenues and funds are not subject to American oversight.
Dollar Shortage
Many local banks have already limited cash withdrawals in dollars over the past few months, exacerbating shortages that have caused the exchange rate to continue to rise in the parallel market.
Ahmed said that some banks are suffering from a shortage of dollars because many people are trying to withdraw at the same time in light of a feeling of unease about the financial system, while some banks are also suffering from a shortage because they provided loans denominated in dollars that were then repaid in dinars.
He added that the Central Bank of Iraq also limited the amount of dollars it provides as part of an agreement with the US Central Bank to limit cash liquidity and shift to electronic payments.
Ahmed pointed out that the Iraqi Central Bank expects the dinar to lose more of its value as the new measures enter into force, but he added that this is an acceptable side effect of formalizing the financial system, noting that the Iraqi Central Bank provides dollars at the official exchange rate for all legitimate purposes.
He said that the cost that Iraq is bearing today is not compared to the value of achieving this goal.
Ahmed stated that the financing operations that are carried out transparently and legally through the bank and at the official rate are the most important and therefore nothing else matters, even if the exchange rate reaches 1700.
He continued, saying, "The cost we bear now is nothing compared to achieving this goal, in all honesty, as long as the legitimate channels are established.
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Wednesday evening everyone!
Member: Lets see what good news Mark has for us tonight..
MZ: We are going to cover some things we didn’t get to this morning.
MZ: The chatter on the boards- I am certain you all are starting to see this…..A number of bankers I know are seeing “Pending” on the screens instead of “on hold” . Which is what they have seen on a number of currencies….So for the first time bankers are reporting seeing pending now. Depending on the bank…different rates are showing like $4,50 or $4.60 on the dinar.
MZ: We don’t know if this is a test…or this is “it”. We don’t know if they are priming or prepping the system. But I can tell you that is indeed what I am hearing. If I am hearing that – other intel providers with contacts in banking are no doubt hearing this as well. This is our biggest and best rumor for this evening.
MZ: MilitiaMan spoke about this –this morning:” An economic expert shows 3 advantages of the electronic payment system” The money movement is now much more efficient. This is necessary for when this revaluation occurs.
Member: As I understand it- Jan 1st is the latest this can drag out?
MZ: I would never put that in absolute concrete but…..it does appear you could be correct about that. Iraq has indicated that and the world has indicated that….and middle eastern countries have indicated that.
Member: Jan. 1 is start of Iraq fiscal year for many countries.
MZ: “As investors dump dollars, Gold prices will soar” Investors are selling dollars at the fasted pace in over 12 months.
Member: If Iraq doesn't go by Jan 1st it will create quite a mess for them IMO
MZ: “Nobody wants US trading bonds” Any takers??? Nope. They were once the symbol of the US economic might. They have now fallen out of favor with serious consequences.
MZ: I included this one again….”BRICS Plus, An alternative to the current world order” They continue to talk about this as a new alternative….
Member: MilitiaMan said Iraq is going international. -get ready
Member: Bo Polny has stated that a market crash is coming in December. I can't wait for it and everything seems to be lining up.
Member: Yea I can hardly wait!!!
Member: NASA and weather experts have alerted that a solar storm can hit the Earth on November 30, causing a minor blackout of radio and GPS signals.
Member: Everyone stay safe……Thank you Mark for the encouraging news tonight. See you all in the AM
Odysee at: https://odysee.com/@theoriginalmarkz:e OR THE RUMBLE CHANNEL: https://rumble.com/user/theoriginalmarkz
Note from PDK: Please listen to the replay for all the details and entire stream….I do not transcribe political opinions, divisive social commentary,medical opinions or many guests on this stream……just RV/currency related topics.
GUYS YOU CAN FIND ALOT OF INFO AT MARK'S WEBSITE: GO TO: https://theoriginalmarkz.com/home
There is no overnight RV and The main reason why that could never happen is because the money supply in Iraq is too significant. There's close to 90 trillion dinar in circulation which makes it impossible for there to be such an event
A significant increase in the value of the dinar at or equal to its face value with 90 trillion dinar in circulation would, in essence, be six times the value of the entire countries wealth..
.This is why I have stated numerous times that if and when the dinar ever was to go up in value, it would have to go up gradually over time so that the dinar money supply could be reduced. But that only could occur if Iraq's economy began to significantly prosper.
Welcome, everybody to the big call tonight - it is Tuesday, November 28th and you're listening to the big call. Thanks for tuning in wherever you’re located – I believe we should be reaching at least 175 different countries tonight with the SAT team - the satellite team and who knows it could be a really big night. We never know how many listeners or how many countries until usually a day after so, but thank you SAT team for getting it out there tonight. I even had a dream last night about the big Call and the SAT team and about getting the call out and maybe doing something in the future. I don't know. I'm still analyzing. Thanks for listening everybody. Welcome all over the globe. Welcome to the Big call.
Let's talk a little bit about where we are right now. A lot has happened since we talked to you a week ago. Remember we didn't have a call last Thursday night over Thanksgiving. So I’m gonna do my best to try to bring this stuff together and not leave too much out.
So first of all, let's talk briefly about Iraq because we really do have good contact in Iraq. And we're getting word that the ATM machines are filled with the lower denomination bills like ours – starting with I think tens - I don't think singles and 5’s but 10 dinar notes - 20 50 and 100 - I think those are all available in the actual ATM machines.
Now they have been working for I think, maybe since Thanksgiving - maybe a little bit before that - in the airport locations in Baghdad and at the border location – where ever the ATM’s are at the border.
Okay, so those are rockin and rollin – they are working now and they are in use -. I don't I do not believe they're all in use all over country yet. But I think that is about to change.
Now while we’re talking about Iraq’s currency another post came in today, saying the Iraqis are going to feel a little jingle in their pockets soon. I think that means starting maybe Wednesday, so not only is Iraq printed the currency a long time ago the lower denominations, but they also are minting coins. and they've got coins and I remember getting a couple of dinar coins almost 20 years ago and one was a 25 dinar coin. The other was a $100 coin. I wish we find those But anyway if I can’f find the 100 I’ll use a ball marker for my golf. In future if I can find it.
So they are minting new coins for people to use and I think they are using 1 dinar 2 dinar coin – probably the 25 - who knows maybe they a 50 – I don’t know – but we're gonna have those coins and to talk about Iraq again 0 When are they gonna put their new international rates in the Gazette - and their Hydro carbon law their HCL – their oil and gas law in the Gazette - we're going to do that - should be tomorrow. That’s what we heard this morning it should be tomorrow that actually goes into Gazette. Okay, that'd be great.
Let’s talk about other things. Like for example - currency dealers, one in particular got information that they would be changing their currency rates after midnight tomorrow night, which is Wednesday night after midnight. And that will be good because obviously a lot of the currency we know just change the value that they studied recently are going way up in value and they removed / pulled from the sale, they won’t be for sale anymore – no one will be able to afford I t – some currencies will just change in value and have slight increase - but most of the ones we know about are going way up in value – and they will no longer be for sale – as of midnight tomorrow night, Wednesday night. Okay. Should be getting a hint – should be getting a hint right about now.
Let's go back and talk about what's been happening from the bank's point of view. Fortunately, we did get information from one of our top Wells Fargo Bank sources And he's very high in hierarchy - he told Tomorrow is Wednesday, as you know, Thursday follows. That's looking very promising to us. And to clarify that a little bit. We got information today from another source -. That said yes - you will be exchanging on Wednesday. No --- change that -----
You will be exchanging on Thursday, which is the last day of November - November 30 is Thursday. He said that's when we will be exchanging. He also said tomorrow - Wednesday is when the sovereigns and Chinese elders will be paid.
So that's their pay day. It actually starts after midnight tonight - overnight tonight - throughout tomorrow, they could possibly even it should take 24 hours or longer into tomorrow night maybe even after midnight
But maybe depending how long it certainly goes could determine when we would get notified with emails in our inbox. Because I've been told that we should get notifications after midnight overnight, tomorrow night, which would be realistically let's call it Thursday, very early morning. Okay, I don't know if we're gonna get them tomorrow during the day, but I think they're gonna come in late after midnight tomorrow night.
And if we get them then we could very well wake up to them Thursday. Set our appointments - start exchanging Thursday, the 30th - So that is what we're getting in terms of our timing for tier 4B the internet group .
Now, if you're into tier 4A the admiral’s group, I would think that your accounts have been hydrated, whether they're going directly to a bank account, or directly into a quantum account, which is my understanding with they should go to a quantum account , and then you go - you guys in the admirals group would go to a Wells Fargo redemption center and quite possibly, get your quantum card, your account established, the quantum card your wells fargo set up - your credit / debit card and you have liquidity that will go into that bank account.
Okay, so we’ll see – that is a little different animal than those of us who are in their 4B that are received numbers to do our exchanges. Admirals group has already ponied up all the currency - their exchanges are done when are they gonna get their Liquidity from that exchange.
I believe they'll get word on that. Probably when we're notified maybe before - they may be getting that tomorrow. We may be getting our Thursday morning early, with a little bit of shot gun start that has been talking about.
Again, the slight difference between when bond holders get access to their funds - when we get notifications – when tier 4A admirals group get their notifications of liquidity, all that stuff is it's hard to define who's going to actually go first.
Because of the agreement that Dr Shabibi - head of the CBI at the time - treaty that he made with admiral Bob - a treaty, not an agreement and not a contract but an actual international treaties, because my understanding is admiral Bob is a true sovereign individual and that allowed for this treaty take place – so that's about all I know about that I wont to pretend but I think that is really good news.
Now. what else is going on it? We're coming up to the first of December, which is Friday. So let's say what's gonna happen Starting Friday.
Number one, we talked about R & R - restitution and reclamation allowance - restitution and reclamation allowance begins in the first week of December.
That's going to be significant for people and I can't talk about the people that are under 62 years of age. I'm not positive about how they're gonna be compensated. There's at age group 50 to 61. there's those from 30 to let's call it 50.They are going to be handled differently - But they are going to receive r&r
Now, what about us that are over 60 or 62 and older, and they're getting Social Security now they live in for it early in 62. Maybe you're 65 and you're getting it now. Maybe you're 67 and you're getting whatever age you are if you're 62 and older, this r&r Which isn't going to include your birth certificate – marriage license – divorce decree - personal dividends money, we're definitely getting supplies,
Those four documents are traded as bonds on your life. And that money is you're entitled to it. You'll be getting that back as part of r&r. You'll be getting personal federal income tax that you paid throughout your life. Getting interest that you paid on credit cards on bank loans, like like a car loan, the interest, also mortgages which is the biggest chunk mortgage interest on any mortgage or mortgages that you pay. You'll get that back the whole total. It's significant is gonna be coming into the account where you're currently receiving your Social Security. And it's gonna be big 10s of millions of dollars.
I don't even want tosay how high it is because for people that are older for 70 75 80 It's certainly big - and you're going to get it into that accounts without you doing anything as far as I know. it's just going to fall into that as your social security. but it's obviously way bigger than that. but you're going to be getting that in the first week of December.
That's that to me speaks of NESARA and GESARA and NESARA kicked in again, if I'm not mistaken, at 11 PM on Thanksgiving night.
That's when it actually came in. Yeah. There's a piece that came in with a toggles switch ON OFF switch that was dated 11 23 23. That was Thanksgiving at 11:11pm. That night, that's when NESARA / GESARA kicked in and It was instigated I guess or implemented maybe a better word –
So that's coming - What else coming in December – a significant increase in Social Security benefits.
And this is going to be for age 62 and older again. It's going to be nice chunk – I hate to give the exact amount - I have heard of an amount that you would add to your current social, all I know is it would bump you up to3,000 / $4,000 range - and the top two people that are already getting 3100/ 3200 now - would be pushing 5000 to 5200 in Social Security benefits, starting at your regular SS Wednesday – first / second / third – or fourth Wednesday – we should see that increase in December.
So that’s a different animal R & R – remember - it's different, the restitution reclamation allowance for seniors will be a lump sum one payment.
Remember we talked about going in 3 payments – if it started in October -. It didn't turn it off so you have to learn a start in the first week of December
Alright, so that's gonna be interesting when that happens - the only people in those younger groups will be paid out over a period of time for them, I believe. Let's say if you're 51-60 range, I think over 12 months - to 12 equal installments - of that r&r - I think 30 to 50 I think you're looking at getting yours paid out monthly over a period of time.
And anybody under the age of 62 they asked you to please keep working keep your job and it's 30 hours a week. Or if you don't have a job get one – don’t just get this money and sit down - and we need people to help us our projects - we are gonna pay them well.
Let's see – we’ve got that happening now what else is happening? Sue said, something earlier, President Trump, we heard something that he had said and he said I'm tired of watching the American people suffer --
Let’s see if there's anything else that's really important. And pertinent to us - I don’t plan on doing a call on Thursday night – we might do a celebration call and put that on a link.
I think I covered everything I meant to cover, okay. And let's just stay tuned to your emails.
And certainly on Wednesday night after midnight, let's call it and to possibly wake up to it on a Thursday. Let's see what happens. Alright. Let's pray this call out
Al-Kadhimi: US Federal Reserve's commitments to CBI are futile
Shafaq News / Mu’een Al-Kadhimi, a member of the Iraqi Parliamentary Finance Committee, accused the US Federal Reserve of evading inquiries from the Central Bank of Iraq (CBI) about foreign transfers and the dollar. He made these remarks following reports of an imminent meeting between the two sides.
Al-Kadhimi told Shafaq News Agency that the repeated meetings between CBI, the US Federal Reserve, and the US Treasury aim to facilitate the release of $10 billion monthly external transfers held by the US Federal Reserve. These funds remain withheld by the US Federal Reserve, and mutual agreement is necessary for their release to CBI.
He highlighted intentional delays in returning 50% of external transfers, sold via the foreign currency sale and purchase window, in previous stages. These concerns were a core focus in repeated meetings between CBI and the US Federal Reserve, questioning the reasons for the delays and refusals that obstruct the country's economic activity.
Moreover, Al-Kadhimi pointed out the predicament faced by Iraqi merchants, who officially submit documents to CBI for purchasing dollars at the official rate, pay billions of dinars to CBI, but later face refusals from the US Federal Reserve to fulfill their dollar purchase requests without understanding the reasons behind these refusals.
He criticized the US Federal Reserve officials for evading responses to inquiries from CBI about the reasons for rejecting external transfers, claiming that their repeated reassurances to address the issue in the near future have yielded no results.
It is noteworthy that Washington rejected Iraq's request for $1 billion in cash from the Federal Reserve, arguing that it contradicts efforts to restrain Baghdad's dollar use and halt unlawful cash flows to Iran, as reported by the Wall Street Journal. US officials stated that cash in Iraqi hands has become a lucrative source for illicit dollars flowing to corrupt militias, politicians, and Iran.
Additionally, CBI stated earlier in October that dollar shipments sent by the US Federal Reserve were following an agreed-upon schedule between the two monetary institutions.
”Central Bank Governor: Washington responds to all that Iraq needs in terms of dollars and meeting with it next month 28th of Nov.” This article was from yesterday. Quote: “There are no restrictions on Iraqi funds abroad” This is what we call “International” Awesome things are coming out of Iraq.
Question: I am hearing that a Dinar rate announcement is likely in the next couple days...are you hearing the same with reason for confidence?
MarkZ: I am hearing that.
In Iraq they are saying that the dinar will soon be the master currency again…meaning the most valuable.Before the invasion of Kuwait = Iraq had the most valuable currency in the world. Kuwait came in second… They are telling us very clearly we are still in the window…imo.
From Iraq: “The dinar will recover: Iraq nears imminent end of dollar crisis before end of 2023”
We all know only one thing that will cure the dollar crisis …and that’s a new higher dinar value. They are telling us this is coming….
Iraq Sets New Minimum Wage Standard: A Step Towards Economic Reform
The Chairman of the Finance Committee, Attwan Al-Atwani, has declared an agreement with the committee responsible for the Diwani Order salary scale, committing to a minimum salary of 425,000 Iraqi Dinars. This decision is expected to significantly affect public sector employees and could potentially set a new standard for minimum wage requirements in the Iraqi job market.
Steps Towards Economic Reform
The announcement is seen as a significant stride towards economic reform, potentially impacting the livelihoods of a multitude of Iraqi citizens. The new measure aims to establish a base income threshold, which could ultimately lead to improved living conditions and financial stability for many.
Implications of the Agreement
While the agreement primarily affects public sector employees, the implications could be far-reaching. Not only could this set a new standard for minimum wage in Iraq, but it could also lead to increased pressure on private sector employers to raise their wage scales. Moreover, the decision might have a ripple effect, prompting other countries in the region to reassess their wage structures.
Public Reaction and Future Prospects
Despite the landmark agreement, reactions have been mixed. Some welcome the decision as a long-overdue step towards financial equality, while others fear it might lead to job cuts or increased living costs. Regardless, the decision marks a significant shift in policy and could serve as a stepping stone to more comprehensive economic reform in Iraq.
Iraq’s Central Bank Reveals Decreasing Inflation Amid Regional Economic Turmoil, 29 NOV
The Central Bank of Iraq has recently shared insightful data on the inflation patterns not only within Iraq but also in neighboring nations and other Arab states. In a surprising turn of events, the inflation rate in Iraq has demonstrated a decrease compared to the previous year. This achievement of price stability stands in stark contrast to the economic situation in many of its neighboring countries and other Arab nations, where inflation has soared to double, even triple-digit numbers.
Steady Amid Turbulence
As of August 2023, Iraq’s inflation rate stands at an approximation of 3.7%. This figure is particularly impressive when compared to the inflation rates of its major trading partners, Iran and Turkey, which have recorded inflation rates of 46% and 57% respectively. The stark contrast in these numbers is a testament to the success of the Central Bank’s monetary policy tools in maintaining price stability and keeping inflation rates within acceptable bounds.
Challenges Across Borders
In neighboring Iran, a leaked document from the Islamic Revolutionary Guard Corps (IRGC) has raised alarm bells. The document warns of a dramatic increase in discontent due to the deteriorating economy, which has been severely impacted by U.S. sanctions and years of mismanagement. The document cites a staggering 300% rise in social discontent over the past year and reveals that protests have increased by nearly 50%. Even more concerning, the number of protesters involved has almost doubled. The real inflation rate for basic food items in November 2021 was registered to be between 86% and 268%.
Resilient Currency
Despite the inflation trends, the Iraqi Dinar has shown resilience. As of November 29, 2023, the exchange rate for the Iraqi Dinar to the Dollar stood at 0.0008. This value is higher compared to the previous day’s rate. An amount of 50 Iraqi Dinar was buying 0.04 Dollars at interbank exchange rates.
The meeting the CBI will be having with the United States Treasury is to finalize the new exchange rate that they talked to the UST with last month. It's all about the accounting right now. It is not about the political situation...laws being passed...troops...missiles from Iran.
It's not about anything but the accounting mathematics of your new exchange rate and that's what they're doing with the US Treasury. When they come back from the US Treasury I believe with all my heart you will then see the next phase which will be the HCL and a movement of the exchange rate to 1000 to 1...At a flip of a switch it will be 1 to 1...and Iraqi citizens will then have purchasing power...
A lot of the sites that study the Iraqi dinar they are on the same page that we are on now. We're at that point where it's a venturi effect.
Everything is being squeezed into a narrow little opening and it's creating a lot of pressure, which is good. It's positive pressure.
KRG Delegation Returns from Baghdad: Unpacking the Implications
The delegation of the Kurdistan Regional Government (KRG), after their intense discussions with Baghdad, have returned to Erbil. A key member of the delegation, Helkewt Aziz, shed light on the nature of their demands and the responses they received from Baghdad, though the specifics remain undisclosed.
US-Kurdistan Ties in the Face of ISIS Threat
The United States shares a robust bond with the Kurds in Iraq, built on a mutual interest in containing the security dilemma in the region. The US has provided significant humanitarian and military assistance to the Kurdistan Region, notably supporting the Peshmerga, Kurdistan’s standing military, in the fight against ISIS. This partnership, underscored by the defeat of ISIS in 2017, has led the Department of Defense (DOD) to extend their support for the Peshmerga’s anti-ISIS operations for another four years.
Security Challenges and US Role
Despite these victories, the Kurdistan Region faces significant security challenges, with the ideological remains of ISIS persisting among some in the region and the potential for former members to regroup. The US has a crucial role in addressing these vulnerabilities by providing security, intelligence, and potential troop support. This includes fostering reforms within the KRG and its collaboration with Iraq to maintain regional stability.
Kurdistan’s Political Integrity and the US
Treefa Aziz, the KRG’s Higher Representative in the United States, has emphasized the importance of enhancing Kurdish political integrity. She has urged Washington not just to criticize but to assist in improving governance systems within Kurdistan. A politically efficient Kurdistan, known for good governance, can contribute to a stable and secure region.
Baghdad’s Centralization Efforts and KRG
However, the ongoing political discord in Baghdad makes it challenging to negotiate the KRG’s demands. Baghdad’s centralization efforts undermine Kurdish autonomy and are fundamentally contrary to the aim of maintaining peace in the region, a goal achieved largely through the efforts of the US, the KRI, and Iraq.
Economic Steps and International Relations
As part of its economic diversification efforts, the KRG has initiated honey exports to Qatar, supporting local beekeepers and the private sector. In a bid to enhance bilateral relations, KRG Prime Minister Masrour Barzani recently met with Dr. Yann Braem, the newly appointed Consul General of France in the Kurdistan Region. The KRG is also looking to strengthen its ties with the Japan International Cooperation Agency (JICA) and focus on resuming oil exports with Türkiye.
Iraq’s Security Situation: Commander-in-Chief Chairs High-Level Meeting, 29 NOV
Commander-in-Chief of the Armed Forces, Mohamed Shia Al-Sudani, presided over an important meeting of the Ministerial Council for National Security to discuss the prevailing security situation in Iraq. The meeting was held with the primary aim to address efforts to enforce law and order by combating terrorism and tackling organized crime gangs.
Strengthening Security and Intelligence Agencies
The council reviewed the employment grades allocated to security and intelligence agencies within the Federal Service Council. They deliberated on the tests conducted for candidates vying for the remaining positions, with an intent to bolster these agencies with top talents. The main objective of the council was to ensure the best minds were put to work for maintaining national security.
Resolving Residency Issues
The attendees discussed the procedures of the Diwani Order Committee No. (22220) for 2022, aiming to establish a permanent central supportive committee. This committee is entrusted with the responsibility of resolving residency issues between the federal government’s Ministry of Interior and the Kurdistan Regional Government.
Regulating Military Convoys
The meeting emphasized the importance of organizing the movement of military convoys through a movement letter issued by the Joint Operations Command. Checkpoints are to monitor compliance with these regulations. This move is expected to bring greater order and discipline in the movement of military personnel and equipment.
Preparations for Upcoming Provincial Council Elections
Another important point of discussion was the preparations for the upcoming provincial council elections scheduled for December 18. The Commander-in-Chief directed legal action against anyone found exploiting state resources to influence voter choices and to prevent any instances of extortion. He also ordered an investigation into reports of attempts to exploit social security network beneficiaries in the voter card distribution process.