Saturday, March 23, 2024
Iraq is yet to amend budget to resume Kurdistan’s oil flow: Oil Minister to Bloomberg, 23 MARCH
Iraq is yet to amend budget to resume Kurdistan’s oil flow: Oil Minister to Bloomberg
Oil Priest Hayyan Abdul Ghani said that the Iraqi government is as yet concentrating on a proposed correction to the bureaucratic spending plan that would empower Baghdad to pay worldwide oil organizations working in the Kurdistan locale.
Producers in the semi-autonomous region would be able to resume production as a result of the change, eventually exporting through the Turkish port of Ceyhan. In March of last year, Turkey shut down the pipeline that carried crude from Kurdistan. This cost the governments and businesses involved billions of dollars in lost revenue.
A critical obstacle to restarting streams is the creation cost of Kurdish oil. State leader Mohammed Shia Al-Sudani in December put that expense at $21 a barrel, contrasted and only $8 in different locales of Iraq.
The Minister was quoted by Bloomberg as saying, “We seek to accelerate the settlement of the cost issue and resume exports as soon as possible.” The Oil Service desires to audit and correct agreements endorsed between the Kurdistan Provincial Government and the worldwide organizations, he said.
After an arbitration court ordered Turkiye to compensate Iraq for transporting oil through the link without Baghdad’s approval, Turkiye shut down the pipeline. Ankara, which asserted the line was closed for fixes, said in October it was prepared for activities and it depended on Iraq to continue streams.Turkish President Recep Tayyip Erdogan is because of visit Baghdad one month from now, which might assist with settling other staying focuses, including the fine. Abdul Ghani told Bloomberg that Iraq is quick to restart sends out through Ceyhan and to keep up areas of strength for with attaches with Turkiye.
"RV UPDATE" BY MILITIAMAN, 23 MARCH
MILITIAMAN
"ANALYSIS OF IRAQ NEWS" BY MILITIAMAN, 22 MARCH
Militia Man
Deleting the zeros from the notes, how are you going to do that? You're going to re-denominate the currency ...The way to re-denominate is to add value. If you don't add any value, re -
denomination means those that hold currency don't gain anything. I don't think the United States Treasury...Great Britain...Canada...Australia...Coalition forces ...South Koreans came into Iraq to get completely 100% hosed with anything like that...If Al-Sudani says, the dinar hold on to it, it's going too be stronger than the dollar...$0.76 is not stronger than the dollar. Add the real effective exchange rate and you can easily get over a dollar...
Oil is anywhere from $88 to $85 right now. Add in the tax revenues and customs duties and fees at the borders, the tourism you got to see the exchange rate of the Iraqi dinar is not going to be at $0.76. They're going to have to add that real effective exchange rate to it and that's probably...exactly why they haven't exposed it just yet. It's a sensitive issue.
They need to keep it close to the chest... They can't go out and tell everyone on the street, 'Hey you know next week your exchange rate is going to be X.' It doesn't work that way...Eventually they will expose it...
https://dinarevaluation.blogspot.com/2024/03/rv-update-by-militiaman-22-march.html
IMF advocates for central bank autonomy in the face of rate-cut pressures during election years, 23 MARCH
IMF advocates for central bank autonomy in the face of rate-cut pressures during election years
Kristalina Georgieva, managing director of the International Monetary Fund (IMF), issued a warning on Thursday that central banks are under increasing political pressure to lower interest rates during a significant election year. Be that as it may, she underlined the significance of policymakers keeping up with their freedom regardless of these difficulties.
Georgieva said that national investors today face many difficulties to their freedom, thusly “calls are developing for loan fee cuts, regardless of whether untimely, and are probably going to increase as a portion of the total populace casts a ballot this year. There is a growing possibility of political interference in bank decision-making and personnel appointments. State run administrations and national investors should oppose these tensions.”
The IMF’s managing director used examples of what independent central banks have accomplished in recent years to illustrate the significance of this issue.
“National brokers guided really through the pandemic, releasing forceful money related facilitating that forestalled a worldwide monetary implosion and speed recuperation.”
“As the center moved to reestablishing cost strength, national investors suitably fixed financial arrangement — though on various timetables. Even as price increases reached multi-decade highs, their response contributed to stabilizing inflation expectations in the majority of nations. Developing business sectors were pioneers in fixing early and strongly, upgrading their believability.” She called attention to.
As per Georgieva, the national bank activities have brought expansion down to significantly more sensible levels and decreased the dangers of a hard landing. ” Although the battle isn’t over yet, many central banks’ independence and credibility over the past few decades have largely contributed to their success thus far.
She made sense of that the new outcome in cutting down expansion differentiates strongly to the monetary precariousness that won during the high expansion time of the 1970s.
“At the time, there were no clear mandates for central banks to prioritize price stability or laws protecting their autonomy. Therefore, they were frequently forced by lawmakers to bring down loan fees when expansion was high.”
“Everybody was wounded by this high expansion, win and fail time — particularly individuals living on fixed earnings who saw their genuine livelihoods and reserve funds dissolved. Outcome in lessening expansion possibly came during the 1980s when national banks were given political help to battle expansion forcefully.” Georgieva added.
Georgieva also said that a study by the IMF that looked at dozens of central banks from 2007 to 2021 found that those with high independence scores were better at controlling people’s expectations of inflation, which helps keep inflation low.
“Autonomy is basic, and has become more dominating among nations at each pay level.”
Another IMF concentrate on following 17 Latin American national banks throughout recent years analyzes dynamic autonomy, clearness of order, and whether they could be compelled to loan to the public authority. It additionally observed that more prominent freedom was related with much better expansion results.
Georgieva stressed the significance of solid administration to maintain national bank freedom, featuring the job of other government branches in supporting national banks’ goals through monetary judiciousness.
Georgieva stated, “Implementing responsible fiscal policies that maintain sustainable debt levels helps mitigate the risk of ‘fiscal dominance,” in which the central bank is compelled to offer cheap financing to the government, resulting in inflationary pressures.”
Also, she referenced that the IMF is prepared to offer specialized help to part nations planning to improve their financial approach structures.
Georgieva went on to say, “We collaborate with members to establish and achieve measures to uphold independence as a fundamental aspect in certain Fund-supported financial programs.”
"RV UPDATE" BY WOLVERINE, 23 MARCH
WOLVERINE
[via Judy Byington]
Most recent banker update...Mon. 18 March...Word from those higher ups was that we were in a 24 to 36 hour... window for announcement with Thurs. 21 March...being an important day for the banks...we know the time of our blessing is approaching quickly...All is looking good according to ALL sources...
Sun. 17 March Wolverine
"CONFIRMED: BRAZIL HAS THE GREEN LIGHT" BY WOLVERINE, 19 MARCH
Sun. 17 March Wolverine
Iraq is discussing with Türkiye the resumption of oil exports through Ceyhan, 23 MARCH
Iraq is discussing with Türkiye the resumption of oil exports through Ceyhan
Basem Nagemesh, a member of the Parliamentary Oil and Natural Resources Committee, disclosed discussions between Turkey and Iraq to resume oil exports through the Turkish port of Ceyhan today, Friday.
“There is interest in the oil file with the Turkish side, as the matter is discussed in various meetings and discussions taking place between Baghdad and Ankara,” Naghimesh stated in an interview.
“The main dispute with the region and the Turkish government relates to the export of oil through the port of Ceyhan and the illegal contracts approved by the Federal Supreme Court and the International Court, where discussions are taking place in order to resolve this issue and return to exporting oil through the Turkish port,” he continued.
That’s what he expressed “the oil sends out record will be available in the Iraqi-Turkish conversations to get back to continuing commodities, notwithstanding there being a few feelings of trepidation of Turkey attempting to deal with Iraq over the oil document and connecting it to the nation’s portion of water.”
"RV UPDATE" BY SANDY INGRAM, 23 MARCH
Sandy Ingram
There is absolutely no law against carrying large sums of cash...You can travel with as much money as you want.
However, there is a catch. If you are entering or leaving the Untied States with more than ten thousand dollars in cash or equivalent, you are required to report it to customs and border protection.
This rule applies whether the cash is in U.S. dollars or in a foreign currency...You need to complete a "FinCen 105 form"... What happens if you don't report more than 10 thousand dollars in cash? Failure to report can lead to seizure of the money...You may also face criminal charges...Remember these rules...it's always better to be safe than sorry.]
https://dinarevaluation.blogspot.com/2024/03/rv-update-by-sandy-ingram-21-march.html
Iraq has completed the necessary prerequisites to join the World Trade Organization WTO. This pivotal development reported by Gulf News marks new chapter in Iraq's economic journey...
Joining the WTO is not a mere formality, it necessitates a commitment to aligning with WTO rules by enhancing private sector performance and overhauling trade policies.... Membership in the WTO is a significant milestone for any country.
Do not purchase any currency with Saddam's face on it unless you purchase it as a collector. Purchase currency that is now in circulation in Iraq.https://dinarevaluation.blogspot.com/2024/03/rv-update-by-sandy-ingram-18-march_01295640786.html
Iraqi banking system grapples with trust deficit, US sanctions, 23 MARCH
Iraqi banking system grapples with trust deficit, US sanctions
Even though the government is trying, Iraq’s banking system is still struggling to get back on its feet. The citizens don’t trust the system, which makes it hard to make financial inclusion easier and hurts the financial sector as a whole. However, economic experts contend that a number of factors contribute to this trust deficit.
Omar Al-Halbousi, a monetary examiner, refers to the breakdown of a few longstanding banks as an essential concern. Despite attempts to obtain compensation from the Iraqi judiciary and the Central Bank, these failures left depositors without funds.
In a meeting with , Al-Halbousi contended that the CBI’s “deficiency in actually directing and controlling financial tasks” pushes residents towards keeping their money at home as opposed to storing it in banks. Furthermore, the possession construction of a few confidential banks raises warnings. Potential depositors are discouraged by entities associated with corruption or foreign ownership whose motives are unclear.
Further muddling what is going on are late US sanctions forced on a subset of Iraqi confidential banks. The existing anxieties of the potential depositors are made worse by these sanctions.
Due to the fact that many Iraqi banks are heavily dependent on the US dollar for their operations, citizens are concerned about the possibility of funds held in sanctioned banks being frozen or in unstable conditions. These worries are made even more serious by the banking industry’s lack of a diversified investment portfolio.Al-Halbousi stated, “The citizens’ reluctance to deposit their funds in banks increases with the increase in sanctions imposed on banks.”
The US Depository Division has endorsed 32 out of the 72 confidential banks working in Iraq. As indicated by Al-Halbousi, these approvals fall into two classifications. The main class limits endorsed banks from going through with exchanges in US dollars, despite the fact that they can in any case work in different monetary forms.
The subsequent classification includes more serious assents forced by the Depository Division’s Office of Unfamiliar Resources Control (OFAC). Money laundering, terrorist financing, evasion of US sanctions, dollar smuggling, and the use of counterfeit commercial bills are all targets of these sanctions against banks. Al-Huda Islamic Bank, for instance, has recently been subject to a complete dollar transaction ban and is now isolated from foreign banks as a result.
Al-Halbousi contended that the CBI’s inability to sufficiently administer banks and address unlawful exercises prompted the US forcing sanctions. He cautioned that the sanctioned entities’ list is likely to expand, putting even more banks at risk of being involved in financial crimes. Organizations and people going about as fronts for psychological oppressor associations could likewise confront sanctions.
The Central Bank’s official data present a troubling picture. The total amount of cash issued by the CBI as of December 2023 is 102 trillion Iraqi dinars. Be that as it may, just 60 trillion dinars are kept in government banks, with a pitiful 13 trillion dinars stored in confidential banks. This leaves a stunning 93 trillion dinars flowing external the proper financial framework.
Ahmed Eid, a scientist gaining practical experience in monetary undertakings, stresses the adverse consequence of this irregularity on Iraq’s monetary consideration objectives and generally speaking financial turn of events. For this present circumstance, he faults botch, politically roused choices, and an absence of vigorous administration and control instruments inside the financial area.
Eid cites the inadequate implementation of electronic payment systems and the slow adoption of modern technologies for financial transactions as additional factors that undermine trust. These deficiencies and an absence of alluring motivations for utilizing computerized monetary instruments deter residents from using formal financial administrations.] The researcher found that most Iraqis would rather keep their money at home than deposit it in banks. This is primarily due to a lack of faith in numerous banks, which are frequently thought to be associated with powerful parties and susceptible to bankruptcy. In addition, government banks frequently fail to provide depositors with attractive facilities or competitive interest rates.
Dinars or dollars?
Stores in the Iraqi financial framework can be made in US dollars or Iraqi dinars. As per financial specialist Abdul Rahman Al-Sheikhli, stores in Iraqi dinars are not straightforwardly impacted by US authorizes and capability without critical disturbances.
He stated, “The money remains within the internal banking channels of that specific bank when a citizen deposits funds in a bank for a current account or an interest-bearing account.” This means that the same currency is used to process withdrawals.
Al-Sheikhli, on the other hand, acknowledged that there might be delays in accessing deposited funds. Beforehand, residents could move toward the CBI straightforwardly to pull out dollars in the event of postpones by their banks. Nonetheless, current guidelines confine dollar withdrawals from the National Bank.”
“There are possible outcomes to these impediments, he added. ” Banks could have to deal with damages or even permit denial assuming they neglect to satisfy their commitments to investors.”
Concerns About Liquidity and Efforts to Restore Confidence “The emergence of ISIS in 2014 had a significant impact on the liquidity of Iraqi banks. Many banks held letters of assurance from organizations that at last defaulted on their commitments,” he said. ” The subsequent seizure of these reliable sums essentially stressed the liquidity of certain foundations. While bigger saves money with significant stores endured the hardship, more modest banks confronted misfortunes.”
The National Bank holds a part of banks’ capital as stores, which it can use for pay in specific circumstances. Additionally, the CBI’s establishment of a deposit guarantee company four years ago aims to prevent banks from running out of money. However, the primary purpose of this mechanism is to deal with situations like Basra International Bank’s bankruptcy, which is currently the focus of efforts to revive its operations.
Al-Sheikhli mentions a recent development that may have an effect on transactions in dollars.
“For the first time, eight banks were prevented from entering the dollar auction window by the CBI rather than the US administration. The US Treasury Department targeted Al-Huda Islamic Bank because of alleged ties to the Iranian Revolutionary Guards, while the CBI performed a temporary audit and oversight on the remaining seven banks.”
This move, alongside the arranged eliminating of the money deal window and electronic stage all through 2024, means to lessen dependence on the US dollar and expand the Iraqi cash container. Al-Sheikhli said that private banks around the world have opened accounts with reputable foreign banks so they can do more banking than just dollar transactions.
National Bank Oversight and Worldwide GuidelinesThe National Bank of Iraq is answerable for administering banking tasks in the country. Law No. 6 establishes this obligation. 56 of 2004, which was bolstered by Law No. Money Laundering and Terrorism Financing Act of 2015, which took effect in 2016,
Following these guidelines, the CBI has executed worldwide consistence principles. In order to meet international standards, banks must now appoint dedicated directors to oversee all financial transactions.
Market analyst Abdul Rahman Al-Mashhadani accentuated the significance of this shift towards worldwide consistence.
Al-Mashhadani, on the other hand, acknowledged that full compliance would be difficult. Numerous Iraqi banks, especially those without critical US partners, battle to satisfy the expected guidelines. It is still challenging for banks with connections to the United States to persuade American authorities that their operations are solely focused on trade financing and do not involve illegal activities.
Iraq’s heavy reliance on imports from Iran, estimated at $25-30 million per day, is a significant contributor to this issue. These imports are necessary due to Iran’s lack of reciprocal trade, but Iraq’s exports to Iran remain negligible. This causes what is going on where Iraqi organizations associated with Iranian imports expect admittance to monetary assets, raising worries from US specialists.
To address these worries, the CBI as of late trained banks to enroll the administrations of trustworthy worldwide inspecting firms to survey their tasks and projects throughout recent years. These free reviews, directed by firms suggested by the actual US, intend to give solid appraisals of Iraqi banks’ monetary exercises.
“A further step towards worldwide authenticity includes bank characterization by universally perceived rating organizations like S&P Worldwide Evaluations and Moody’s. Reports produced by these organizations convey huge weight and can assist with building entrust with US specialists.”
" IMPORTANT IRAQ NEWS: GOVERNMENT’S AGREEMENT WITH A CHINESE COMPANY TO ESTABLISH AN INDUSTRIAL CITY" BY MNT GOAT, 23 MARCH
GOVERNMENT’S AGREEMENT WITH A CHINESE COMPANY TO ESTABLISH AN INDUSTRIAL CITY
Baghdad – Iraq Today: 2024/03/18 10:26
The General Company for Iron and Steel in Basra province revealed the government’s agreement with a Chinese company to establish an industrial city with an area of 3,000 dunums, while it saw that Iraq is on the verge of a major industrial revolution.
The general manager of the company affiliated with the Ministry of Industry and Minerals Abbas Khli in a press interview, that “there is great government interest and the highest executive authority represented by Prime Minister Mohammed Shia Sudani industrial projects, which have been stopped for more than two decades, and the General Company for Iron and Steel stopped since 2003 before resuming work.”
He added that “the government’s interest does not depend only on setting allocations in the budget law, but there is a personal follow-up from the prime minister and through the minister of industry and minerals, to develop and progress work and achievement, and raise a monthly official position to the prime minister, who follows up and overcomes obstacles in many matters through quick decision-making and even direct contact with the concerned ministers.”
He added that “our company is not the only one specialized in iron and steel, but there are companies in the private sector also produce rebar, for example, and we had a meeting with the Prime Minister about two weeks ago under the auspices of the Board of Advisors, and there is a special committee formed to follow up the development of the national industry and the fact that it was among the demands to protect the national product, and the government and the Council of Ministers were really supportive and decisions were actually issued to protect the national product, especially rebar.”
He noted that “with the large reconstruction and construction movement and the trend to build more than one million housing units, there are factories in Iraq and new factories are currently being built in several provinces, and there is a tendency for the government to contract with one of the large Chinese companies in the field of iron and steel, and it was visited in China by a delegation headed by Minister of Industry and Minerals Khaled Battal, and I was one of the members of the Iraqi delegation, and now there are negotiations during this period and two days ago there was a meeting at the Ministry of Industry and Minerals. ”
He pointed out that “this week we also have meetings with the Chinese company, and this company has been granted three thousand acres of iron and steel land and a large industrial city will be built and this matter enjoys the care and attention of the Prime Minister, and this will make a major industrial revolution within the country in addition to the existing factories, including the iron and steel factory, to meet the local need not only at the level of prices, but in consumer protection and the high quality enjoyed by the Iraqi rebar produced in our company. With high quality, sometimes there is no control over border crossings and some types of rebar that are not within the required specifications are entered.”
He noted that “the iron and steel plant in Basra stopped since 2003 and its capacity after the completion of work will reach more than 600 thousand tons and the contract capacity is more than 500 thousand tons, and we will start production with nodal capacities,” pointing out that “during the next few months we will witness the opening of the steel factory that produces (billet), which is complementary to the (rolling) plant and will meet Iraqi production an important aspect of the national need.”
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/
Saleh reveals the reason for the stability of the dollar in the parallel market and a historical reserve for Iraq, 23 MARCH
Saleh reveals the reason for the stability of the dollar in the parallel market and a historical reserve for Iraq
The Prime Minister’s financial adviser, Mazhar Mohammed Saleh, confirmed the strength of the dinar against the dinar after a relative decline in the exchange rate.
Saleh told {Euphrates News}, “We are indicating the strength of the Iraqi dinar, expressed in the decline in the parallel market rates of the exchange in favor of the official exchange rate, a tangible success on the cohesion of the country’s economic policy with its three joints: monetary, financial and commercial, in providing a coherent climate of stability in the general level of prices and containing seasonal price fluctuations for high-demand materials, specifically the provision of basic food commodities that have low price demand flexibility because they are necessary commodities related to consumption and daily living.”
He pointed out “the importance and speed of customs measures represented (reducing the customs tariff and diversifying imports without quantitative determinants of the necessary goods) as part of the performance of fiscal policy in attributing price stability and ensuring the supply of materials, food and necessary goods and production supplies at the official exchange rate and in accordance with the requirements of the national economy.”
The Parliamentary Finance Committee had expected the continuation of the decline in dollar prices as the results of the measures taken by the Central Bank of Iraq began to appear in reducing the rise of foreign currency.
The exchange rate of the dollar for days is about 1500 or 1490 thousand dinars to the dollar.
Who.. Raghad Daham
"RV UPDATE" BY TISHWASH & KAPERONI, 23 MARCH
tishwash
Article: "Adviser to the Prime Minister: The decline of the dollar is an indicator of the strength of the dinar and a tangible success of the economic policy " Quote: "The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed the strength of the dinar against the dinar after a relative decline in the exchange rate."
Kaperoni
If Iraq is unable to achieve diversity they will have no alternative but to simply just delete the zeros (LOP) which is a neutral event reducing the currency from around 80 trillion to 80 billion dinar. Any exchange rate gain would be minimal as a result.
Oil Minister Reveals Study of Important Budget Amendment to Resume Region’s Exports, 23 MARCH
Oil Minister Reveals Study of Important Budget Amendment to Resume Region’s Exports
The Minister of Oil, Hayan Abdul Ghani, revealed that the federal government is considering a proposed amendment to the country’s budget that allows it to pay the salaries of international oil companies operating in the Kurdistan region.
This budget adjustment could allow producers in the region to resume production, and eventually export through the Turkish port of Ceyhan.
Turkey shut down the pipeline transporting crude oil from Kurdistan in March 2023, losing billions of dollars in revenue to governments and related companies.
The main obstacle to the resumption of Kurdistan inflows is the high cost of oil production in the region, and the Prime Minister, Mohammed Shiaa of Sudan, last December, estimated this cost at $21 per barrel in Kurdistan, compared to only $8 in other areas of Iraq.
“We seek to quickly solve the problem of high cost, and resume exports as soon as possible,” Abdul Ghani said in response to Bloomberg’s inquiries, adding that the Ministry of Oil hopes to review and amend the contracts signed between the KRG and international companies.
Turkey shut down the pipeline after an international arbitration court in Paris ordered it to pay $1.5 billion in damages to Iraq for transporting oil through the pipeline without Baghdad’s approval.
Ankara, which claimed the pipeline was closed for maintenance only, said last October that the line was ready for operation, and it was up to Iraq to resume flows.
Turkish President Recep Tayyip Erdogan is scheduled to visit Baghdad next month, which could help address other thorny files, including the compensation ordered by the court.
Abdul Ghani concluded that Iraq is keen to resume exports through the Turkish port of Ceyhan, and maintain strong economic relations with Ankara.
https://alforatnews.iq/news/وزير-النفط-يكشف-عن-دراسة-تعديل-مهم-في-الموازنة-لاستئناف-صادرات-الإقليم
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