STATUS OF THE RV
WOW! Do you believe it we are nearing the end of April soon. Colleges are preparing for final exams already and soon students will enter the summer job market for work. We are now ramping up for the main season of our guest Haus. What will this summer bring us? We are hoping for more tourism in the southern Bavaria area than we have seen since Covid hit. We wait to see.
What will the month of May bring us investors in the Iraq dinar?
Al-Iqtisad News just told us and I quote from the article – “The visit of the Prime Minister, Muhammad Shiaa Al-Sudani, to America is very positive, but so far the results of what was agreed upon in Washington have not appeared.”
Why do we have to ask?
Then later in the article we find out a couple issues that may be holding up or may hold up, the progress of the next step in the currency reform. I quote again from the article – “It is hoped that the Central Bank of Iraq will announce the measures that were agreed upon in Washington, which could have a positive impact on the exchange rate,” pointing out that “the real problem of exchange rates has not yet been solved, which is dealing in trade with banned countries.”
Yes, the real problem has not yet been solved. What is the real problem that appears that could have a positive impact on the exchange rate? The article refers to dealing in trade with banned countries. These are sanctioned middle eastern countries mostly if not exclusively. It does make reference to Iran as I quote from the article – “discussions held by the Central Bank of Iraq, with the US Treasury regarding the sanctions imposed on Iraqi banks or even the issue of financial transfers to Iran,” it also makes reference to the energy field too. Could this be the Oil and Gas Law (or referendum) the Iraqi constitution mandates? I believe it is. I still contend that this law is required. We will see. But the good news is the Iraqi speaker of parliament has been reinstated and they told us they will not be ending this current session until certain laws are addressed.
We also know that the Iranian gas sold to Iraq is a US issue but they have granted a waiver again for five more years over the Iranian sanctions. Then we read of an article telling us that The Iraqi Ministry of Oil announced the signing of a contract with the Ukrainian company “Yukrzm Resources” to develop the gas crutch field for Iraq. It was pointed out that “the ministry aims, through the contract with the Ukrainian company, to reach an average of (100) mqmqm for the first stage of (1-2) years, and (400) maqqm within (4) years. This effort could meet or maybe finally exceed the recent 5 year sanction waiver by the US to buy gas from Iran. If you remember this gas is mainly to power the new electricity generators for the Iraqi grid, destroyed by the 2003 war. So these agreements had to get in place too.
Remember also that this step in natural gas production represents an important step towards gas investment, especially in the western region of Iraq because of the large gas reserves that this region holds. The first step is to work to invest this gas production optimally, to supplement the national networkwith new gas energy and also for future revenues that contributes to supporting the energy sector in Iraq and enhances national production. Yes, this gas production in the near future could yet another huge source of Iraqi revenues rivaling again the oil revenues. I expect to see large contracts with the EU for this gas in the coming short term....
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