Friday, September 13, 2024
DINAR REVALUATION REPORT: IMF Article IV Consultation with Iraq: 2024 Findings and Recommendations, 14 SEPT
IMF Article IV Consultation with Iraq: 2024 Findings and Recommendations
The International Monetary Fund (IMF) conducted its 2024 Article IV consultation with Iraq, concluding with a comprehensive report and a series of recommendations for the country's fiscal and economic policies. The consultation aimed to assess Iraq's economic health, fiscal sustainability, and the potential for long-term growth, taking into account the country's reliance on oil revenues and the challenges it faces in diversifying its economy.
Key Findings
Economic Growth and Fiscal Expansion
The IMF noted that Iraq's economic growth is projected to continue, supported by a fiscal expansion that commenced in 2023. However, the medium-term outlook is marred by increased vulnerability to oil price volatility, which has become a significant concern for the nation's fiscal stability.
Non-Oil Economy and Fiscal Adjustment
Iraq's non-oil economy, which had stalled in 2022, rebounded strongly in 2023, a trend expected to continue in 2024. Despite this, the country faces the challenge of reducing oil dependence and ensuring fiscal sustainability. This will require a significant fiscal adjustment, focusing on controlling the public wage bill and increasing non-oil tax revenues.
Private Sector Development and Labor Market Reforms
To sustain higher economic growth and absorb the rapidly expanding labor force, Iraq needs to develop its private sector. This includes implementing labor market reforms, modernizing the financial sector, restructuring state-owned banks, and reforming the pension and electricity sectors.
Recommendations
The IMF emphasized the need for sound macroeconomic policies and structural reforms to secure fiscal and debt sustainability. Key recommendations include:Fiscal Policy Adjustment: Reducing public expenditure, particularly the wage bill, and increasing non-oil tax revenues to address fiscal imbalances. Structural Reforms: Enhancing the private sector's role in the economy through labor market reforms, financial sector modernization, and state-owned enterprise restructuring. Diversification of the Economy: Reducing reliance on oil revenues by boosting non-oil exports and broadening the tax base.
Conclusion
The 2024 Article IV consultation underlined Iraq's economic resilience and the challenges it faces in achieving sustainable and diversified growth. The IMF's recommendations point to a path for Iraq to strengthen its fiscal position, develop its private sector, and reduce its dependence on oil revenues, all critical steps for long-term economic stability and prosperity.
LATEST FROM MILITIAMAN, 14 SEPT
Militia Man
The IMF Article IV 2024 consultation, one of the most important things was for [Iraq] to accelerate accession to the WTO.
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Summary
Iraq’s Ministerial Council of Economy is advancing economic unity between the federal government and Kurdistan, focusing on financial reforms and salary equivalency.
Highlights
- 🤝 Collaborative Meetings: Recent meetings between the federal government and Kurdistan aim for economic unity.
- 💰 Salary Equivalency: Discussions include ensuring salary parity for regional employees.
- 🔍 Budget Reforms: Emphasis on addressing financial issues like oil, energy, and border revenues.
- 📈 Private Sector Growth: Plans to enhance the private sector’s role in the economy.
- 🌍 Global Attention: Iraq’s economic strategies are gaining international interest.
- 📊 Unified Treasury Accounts: Establishing a unified treasury for better financial management.
- ⚖️ Constitutional Rights: Ensuring all citizens benefit from new economic policies aligned with constitutional rights.
Key Insights
- 🌐 Economic Integration: The meetings signify a critical step towards integrating Kurdistan’s economy with the federal framework, promoting a cohesive financial strategy.
- 💼 Private Sector Engagement: By focusing on private sector involvement, Iraq aims to diversify its economy and reduce dependency on oil revenues, fostering sustainable growth.
- 🔗 Unified Financial Framework: The establishment of a unified treasury account reflects a commitment to transparent financial management and accountability, which is vital for investor confidence.
- 📈 Revenue Streams: The focus on oil, energy, and border revenues indicates a strategic approach to harnessing Iraq’s natural resources for economic stability.
- 🤔 Constitutional Compliance: The emphasis on constitutional rights in financial discussions demonstrates a commitment to equitable governance and fair resource distribution.
- 🏛️ Political Dynamics: The support for Prime Minister Al Sudani highlights the political backing necessary to implement these reforms, ensuring stability during transitions.
- 🚀 Future Prospects: The positive atmosphere in these meetings suggests potential for significant economic progress in Iraq, attracting global attention and investment opportunities.
- https://dinarevaluation.blogspot.com/2024/09/militiaman-cc-notes-highlights-12-sept.html
Washington accuses Iraqi militias of targeting US diplomatic facility in Baghdad, 14 SEPT
Washington accuses Iraqi militias of targeting US diplomatic facility in Baghdad
The United States accused Iraqi "militias" allied with Iran of targeting a US diplomatic facility in the capital, Baghdad, and vowed to respond. It called on the Iraqi government to do its part to protect diplomatic facilities. Camp Victory, which houses US soldiers, west of Baghdad, was subjected to a rocket attack on Tuesday night, in an operation that came days after Iraq announced that there was no official and fixed agreement on a date for ending the international coalition’s mission and withdrawing US forces from the country.
On Friday, the US Embassy in Baghdad said in a statement that "last Tuesday, the Diplomatic Support Complex in Baghdad, a US diplomatic facility, was attacked, but fortunately no casualties were reported," stressing that "evidence suggests that the attack was launched by Iranian-allied militias operating freely in Iraq.”
The statement indicated that "the Government of Iraq has repeatedly expressed its commitment to protecting diplomatic missions, as well as US military personnel who are in the country at its invitation," renewing its call on the Iraqi government to "protect our diplomatic and coalition partner personnel and their facilities.” It added, "We reserve the right to defend ourselves and protect our personnel anywhere in the world."
The attack came hours before Iranian President Massoud Pezeshkian was due to visit Iraq, and occurred despite Iraqi forces taking tight security measures in the capital. No Iraqi faction has claimed responsibility for the attack, and the Iraqi Hezbollah Brigades, allied with Iran, called on the government to uncover the perpetrators. “Targeting Baghdad airport at this time is carried out by suspicious hands, and its aim is to disrupt the Iranian president’s visit to Baghdad, and we call on the security services to uncover those involved,” said Hezbollah Brigades military spokesman Jaafar al-Husseini.
- For its part, the Al-Fatah Alliance, an Iraqi political alliance with parliamentary and government representation that includes a number of armed factions, considered the attack "an attempt to confuse the cards and direct blame at the resistance factions." Ali Al-Fatlawi, a member of the alliance, said on Thursday that “the factions will not be afraid to declare any action they take. The attack aims to embarrass Prime Minister Mohammed Shia Al-Sudani and create a gap between the resistance factions and the government." He stressed that "the operation, in all its details, confirms that the resistance factions have nothing to do with it, neither directly nor indirectly."
- In February, bilateral talks between Baghdad and Washington resumed regarding the withdrawal of international coalition forces from Iraq, with the adoption of a "deliberate and gradual reduction", leading to the end of the mission of the international coalition forces to combat ISIS, according to official Iraqi statements. However, the Security and Defense Committee in the Iraqi parliament expected that the recent attack would push the US side to a new military response against some Iraqi factions, especially since the Americans exploit any opportunity and circumstance to target those factions. link
LATEST FROM JON DOWLING, 14 SEPT
JON DOWLING
So Iraq is having important meetings this weekend to pick the new speaker and announce a new digital economic system backed in assets.
If there’s breaking news over the weekend, we’ll do a special video to cover it.
Gary Gensler head of the SEC is being investigated for illegal hiring practices and other nefarious activities. His doom awaits him.
@JonDowling
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Jon Dowling
Recent developments in Iraq’s financial sector, including the implementation of a new banking system, currency diversification, and Iraq’s leadership role in international forums.
Iraq is set to chair the Group of 77 in China, marking a significant diplomatic milestone after 60 years.
A comprehensive banking system is being implemented in 40 branches, signaling readiness for international engagement.
The Central Bank is diversifying currency use, aiming to reduce reliance on the dollar.
Upcoming distribution of retirees’ salaries suggests potential changes in exchange rates.
Increased participation of Kurdish traders is contributing to a decrease in the dollar’s exchange rate.
https://dinarevaluation.blogspot.com/2024/09/latest-from-jon-dowling-2-sept.html
DINARLAND HIGHLIGHTS: THE US TREASURY MET WITH IRAQ TO STREHNTHEN THE IQD BY ALLOWING OTHER CURRENCIES FOR DEPOSIT, 13 SEPT
Summary
The U.S. Treasury met with Iraqi officials in January to strengthen the IQD by allowing other currencies for deposits to enhance its global market position.
Highlights
- 🇺🇸 U.S. Treasury’s involvement in Iraq’s currency strategy.
- 🌍 Discussions held in Abu Dhabi for economic collaboration.
- 💼 Presence of major banks like JP Morgan Chase and Citibank.
- 💱 Agreement to support UAE Dirham and BRICS currencies.
- 🇪🇺 Inclusion of the Euro and Turkish Lira in financial plans.
- 🇮🇳 Indian Rupee and Chinese Yuan also approved for deposits.
- 📈 Aim to strengthen the Iraqi Dinar in the global market.
Key Insights
- 📅 The timing of the January meeting highlights a strategic push for Iraq’s economic stability.
- 🌐 Pairing the IQD with other strong currencies could create more trust among investors.
- 🏦 Involving prominent banks like JP Morgan Chase and Citibank signifies serious financial backing.
- 📊 The inclusion of currencies like the Euro and Turkish Lira indicates a diversified approach to currency management.
- 💼 The UAE Dirham and BRICS currencies’ acceptance suggests a shift towards non-Western economic alliances.
- 💵 Allowing multiple currencies for deposits enhances liquidity, making the Dinar more attractive.
- 🔗 Overall, these actions are crucial steps towards integrating Iraq into the global economy.
DINAR REVALUATION REPORT: Iraq Prepares to Hand Over Kirkuk Oil Fields to BP for Development, 13 SEPT
Iraq Prepares to Hand Over Kirkuk Oil Fields to BP for Development
Iraq is gearing up to transfer the management of its Kirkuk oil fields to British Petroleum (BP) for development and production enhancement. North Oil Company (NOC) has initiated a work plan aimed at maximizing production from the Kirkuk, Bai Hassan, Jambur, and Khabbaz fields before handing them over to BP. This move is part of a strategic agreement to boost the fields' output capacity.
Strategic Agreement with BP
A memorandum of understanding was signed by Iraq's Oil Minister Hayan Abdel Ghani and BP's CEO Murray Auchincloss, detailing the rehabilitation and development of the four oilfields under the North Oil Company in Kirkuk. This initiative is part of Iraq's broader effort to optimize its energy investments and increase oil production while exploring opportunities in gas and solar energy.
Profit-Sharing Model
The agreement between BP and Iraq will be based on a profit-sharing model. a structure designed to incentivize BP to enhance production levels while sharing the financial risks and rewards with the Iraqi government. This model is expected to be finalized by the end of the year, with both parties signing a confidentiality agreement before the data package for Kirkuk's fields and installations is handed over to BP.
Preparatory Activities by NOC
NOC is currently executing a drilling and rehabilitation plan, as well as well-activation activities without rigs, to speed up the preparation of well sites and complete each site within three weeks. The company is also laying pipelines and completing connections for wells in the Bai Hassan and Khabbaz oil fields to stabilize production levels and ensure all requirements for BP are met within the projected timeframe.
Economic Expert's Perspective
Economic expert Ali Khalil emphasized the importance of the contract between the Iraqi government and BP delivering tangible results in terms of increased production within a specific timeframe. Khalil noted that BP had a prior contract with NOC, and this new agreement must ensure that the British company achieves the desired outcomes for Iraq's oil sector.
Conclusion
Iraq's decision to hand over the Kirkuk oil fields to BP for development marks a significant step in the country's strategy to maximize its oil production and investment opportunities. The profit-sharing model agreed upon is expected to foster a mutually beneficial relationship between BP and the Iraqi government, driving economic growth and energy sector development in Iraq.
Iraq prepares to hand over Kirkuk oil fields to BP for development, 13 SEPT
Shafaq News/ North Oil Company (NOC) has begun preparing oil wells in Kirkuk Governorate to ramp up production levels ahead of handing over the fields to British energy giant BP for development, a company source said on Friday.
The source told Shafaq News Agency, “NOC has initiated a work plan to maximize production from the Kirkuk, Bai Hassan, Jambur, and Khabbaz fields before transferring them to BP, which has been contracted to enhance their output.”
The source added that the company’s field division has been tasked with executing a drilling and rehabilitation plan this year, alongside well-activation activities without rigs. “The company aims to speed up the preparation of well sites, coordinating with the project division to complete each site within three weeks.”
In addition, the company is laying pipelines and completing connections for wells Bai Hassan 198 and 199, with a target to finish within a month. “Five well valves in the Khabbaz oil field are being connected, and damaged pipelines at the Shoraw station in Baba Dome are being repaired as part of the company’s efforts to stabilize production levels in northwest Avana, according to projected plans for the Kirkuk oil field.”
The source noted that NOC is expected to complete all requirements for BP within three weeks to a month. A meeting with BP representatives is scheduled to finalize the next steps for implementing the agreement aimed at boosting NOC’s production capacity.
Economic expert Ali Khalil told Shafaq News Agency, “The contract between the Iraqi government, through the Ministry of Oil, and BP must ensure that the British company delivers tangible results in terms of increased production within a specific timeframe.”
Khalil pointed out that BP had a prior contract with NOC, signed in 2013, valued at $100 million, which ended in January 2020. “The previous contract included 3D seismic studies of the reservoir, building on existing 2D data. Estimates suggest the Kirkuk field contains about nine billion barrels of recoverable oil,” he added.
On August 1, Prime Minister Mohammed Shia Al-Sudani oversaw the signing of a comprehensive oil memorandum of understanding between Iraq’s Ministry of Oil and BP to develop the Kirkuk fields for oil and gas production. Iraqi Deputy Prime Minister and Oil Minister Hayan Abdul-Ghani signed the agreement, while BP’s CEO Murray Auchincloss represented the British company.
The memorandum covers the rehabilitation and development of four NOC fields in Kirkuk—Kirkuk (Baba and Avana Domes), Bai Hassan, Jambur, and Khabbaz. It also opens the door for potential agreements on other fields or exploration blocks, with both parties seeking to maximize energy opportunities in the region to boost oil output and invest in gas and solar energy projects.
shafaq.com
LATEST FROM WOLVERINE, 13 SEPT
Wolverine
[via Judy Byington]
I assume everyone is excited as to what is happening...This is what we have been waiting for, for such a long time. All indicators are pointed to this week. Iraq is already done, I suppose. The QFS is activated. All is ready to go...All is lined up for this week.
---Tues. 10 Sept 2024 Wolverine
I assume everyone is excited as to what is happening, and hopefully by tomorrow I will be waking up with a rainbow next to my window.
- There are certain things I cannot tell, as it is all confidential.
- This is what we have been waiting for, for such a long time. All indicators are pointed to this week.
- Iraq is already done, I suppose. The QFS is activated. All is ready to go.
- Certain funds are liberated in Brazil. I have spoken to quite a lot of bondholders in Brazil they have confirmed that certain platforms are liberated.
- The Pentecostal group is getting ready for this event, and every guest going to that event will get personal codes to activate their accounts, so they will have access to their funds. There are a lot of people going to Bogota and they will have a huge event there. The Pentecostal group that did not go to the event, like people like myself, will get their money in Mid-October, but I don’t care – I can wait.
- I have been told that notifications may come out tonight, maybe midnight. They assured me they are coming through. They also told me, “Wolvie, get ready for that opera! We are going to give you a call to sing that opera with all your might! So it was an emotional call. We have all been through a lot together.
- All is lined up for this week.
- The German bonds and Dragon bonds will go first. If you have Dragon Bonds, you are absolutely blessed, and you may get paid tomorrow. It is a process. It does not mean just because you have not got it you will not get it.
- The EBS might come at the time we get our blessing. We would probably go at nighttime with military escort so nothing can happen with us with military escort and do our exchange with a military escort. This may only be in America, not sure around the world.
- Wait for notifications, they will tell you where you will have to go. All will be your notifications.
- I’m very confident we will celebrate tomorrow! God bless you all…Wolverine
DINAR REVALUATION REPORT: Iraq's Pursuit of Enhanced Economic and Investment Cooperation in 2024, 13 SEPT
Iraq's Pursuit of Enhanced Economic and Investment Cooperation in 2024
In 2024, Iraq is demonstrating a strong commitment to enhancing its economic and investment cooperation with global partners, aiming to diversify its economy and reduce dependency on oil. The President of the Republic, Abdul Latif Jamal Rashid, affirmed Iraq's eagerness to strengthen such ties, underlining the country's readiness to provide a conducive environment for strategic development projects.
Iraq's Economic Context and Challenges
Iraq, one of the world's most oil-dependent nations, has been grappling with the volatility and rigidity of its oil-centric economy. Despite a gradual recovery from the dual shocks of the oil and COVID-19 crises, the country faces significant unemployment and economic challenges, especially among displaced individuals, returnees, and women job-seekers.
Seeking Diversification and Stability
Recognizing the need for economic diversification and stability, Iraq has been actively seeking partnerships to boost non-oil sectors and secure fiscal sustainability. Recent efforts have included discussions with the International Monetary Fund (IMF) on fiscal adjustments and strategies to enable private sector development.
Bilateral Cooperation and Investment Opportunities
Iraq has also been engaging in bilateral dialogues to explore investment opportunities and partnerships. A notable example is the Qatari-Iraqi Joint Committee for Economic and Trade Cooperation, which met in July 2024 to discuss avenues for cooperation, particularly in industry, infrastructure, renewable energy, and digital transformation.
Political and Economic Agendas
Iraq's Prime Minister, Mohammed Shia al-Sudani, has emphasized the importance of focusing on economic, educational, and people-to-people domains during his visit to the United States. Despite domestic and external pressures, al-Sudani is navigating the country's political and economic agendas with a view to fostering comprehensive bilateral relations.
Conclusion
Iraq's initiatives in 2024 reflect a strategic shift towards economic diversification, investment in non-oil sectors, and the strengthening of bilateral relationships. This approach is expected to create a more resilient economy, attract foreign investment, and foster sustainable development in the face of global economic challenges.
The President Of The Republic Affirms Iraq's Keenness To Enhance Economic And Investment Cooperation With Its Brothers And Friends, 13 SEPT
The President Of The Republic Affirms Iraq's Keenness To Enhance Economic And Investment Cooperation With Its Brothers And Friends
Thursday 12 September 2024 | Economic Number of readings: 339 Baghdad/ NINA / President of the Republic Abdul Latif Jamal Rashid affirmed, today, Thursday, Iraq's keenness to enhance economic and investment cooperation with its brothers and friends.
A statement by the Presidency of the Republic's media stated: "President of the Republic Abdul Latif Jamal Rashid received, today, Thursday, at the Baghdad Palace, the Secretary-General of the Council of Arab Economic Unity, Ambassador Mohammadi Ahmed Al-Ni and his accompanying delegation."
During the meeting, according to the statement, efforts to develop and support Arab economic work were reviewed, as well as ways to confront economic challenges in coordination and cooperation with the relevant Iraqi governmental institutions.
The President of the Republic stressed Iraq's keenness to enhance economic and investment cooperation with its brothers and friends, and to provide the appropriate environment to contribute to major strategic development projects, explaining: "Iraq stands today on the threshold of a new phase of security stability and economic development, and it looks forward to fruitful cooperation and a real economic partnership."
For his part, the guest delegation expressed its thanks and appreciation to the President of the Republic and his future vision for improving the reality of joint economic work, expressing its hope for Iraq's support for the work of the Council in order to achieve the higher goals that serve common interests. / End 2 https://ninanews.com/Website/News/Details?key=1153362
BIG CALL HIGHLIGHTS FROM GEM FINCH, 13 SEPT
Gem Finch, [13/09/2024 12:38 PM]
BIG CALL UNIVERSE
First of all R&R and SS increases – SS increase I’m getting - this increase we are looking for should happen the 3rd and 4th Wednesday of this month and if not by the end of this month. And R &R what we are hearing this is going to show up for those of us exchanging will be in our QFS account and is there already.
And then we can move some of that into our primary or secondary account. Don’t be shy about moving funds. And remember you can go back and whatever you move should last you for 90 days. And that’s the only reason for the QFS card - it’s the size of a CC but three times as thick and it’s ONLY used to move funds into your other bank accounts and up to three banks.
For those not exchanging Zim – the R&R should be by the end of this month. And the Debt Jubilee is to occur starting this month. And again – personal opinion of Bruce about R&R and Debt Forgiveness will occur after we start - but we will see.
What we are hearing today is positive for the Bond Holders and those in 4 A & B supposed to be on a shotgun start with T3 - so some with sheet bonds take them with you to your exchange and let them know you have them and what they are? Not ZIM – Sheet Bonds – because you will need a little longer time.
What else? When it comes to the Bond Holders they can see the funds in their accounts but they cannot get access till tomorrow – we have people who’ve gone in today and they had to get the QFS cards up and running and then tomorrow they’ll have all the other things they need with these accounts set up for them – 5 things - that will give them access and certain people we know will do that tomorrow and that is great news because that tells us about us – and tomorrow Friday 13th and another piece of intel he received today – says everything –
WE according to this good source – should receive everything after markets close tomorrow at 4pm and then everything released to us – the emails and then set our appointment and exchanges Saturday – RC said they’d be working four days in a row. It will be good speaking to a LIVE human being and it will be quick to set those appointments and maybe your email for a confirmation of the appointment – but don’t to appointment more than ten minutes before – so try not to get their late – just ten minutes early to the RC - so to be fair some RC are attached to banks.
People will be there to verify your currency and count it and US marshals there for security. What I’m saying is it looks very good for tomorrow or Saturday - Bruce is still hoping for 4pm after the markets close and we SHOULD HAVE AN EXCITING WEEKEND - Bruce thinks if it happens after 4 we should be setting exchanges for Saturday. The bank hours are not the same as the RC which are very different and depends on where you are and appointments might even happen late at night - because the ZIM will hydrate the banks and us – Bruce was hoping for a late piece of intel and that’s what came out.
So that’s all Bruce has for us tonight and it’s GREAT INTEL – so please please please join in this prayer with Bruce and KEEP THOSE HEARTFELT PRAYERS SAID until we finally are SO BLESSED AND SEE THOSE NOTIFICATION EMAILS IN OUR INBOXES. I know you ALL will be ALL our prayers are so powerful and SO NEEDED.
LOVE TO YOU ALL - ALWAYS Gem.
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