Iraqi Dinar Guru News Highlights (7/23/24)

The World Trade Organization opens its doors to it.. The Iraqi economy returns strongly to international competition, 23 JULY

 The World Trade Organization has accelerated Iraq's steps to join it, following the resumption of negotiations that had been suspended for more than 16 years. The Iraqi delegation is preparing for the next round of negotiations that are expected to resolve this issue, which will open up global trade horizons for Iraq and return it to strong economic competition, in the region and the world, under a multilateral economic system.

According to official officials, the government of Mohammed Shia al-Sudani has only addressed all the previous obstacles that prevented Iraq from joining the international organization, as for the first time the import program was voted on, which includes setting controls for chaos and identifying real traders, in addition to other details related to customs tariffs as well as the necessary legislation for it.

Economic reform and exchange rate adjustment

 Economic expert Naji Al-Obaidi, in an interview with Al-Ahd News, believes that Iraq’s accession to the World Trade Organization will have positive effects, attributing this to the fact that “it will increase pressure on the government to initiate the long-awaited economic reforms.”

Al-Obaidi added that "the World Trade Organization usually intervenes in the exchange rate policy when the concerned country deliberately keeps the value of its local currency low in order to improve the competitiveness of local production and encourage exports at the expense of foreign goods," indicating that "this does not apply to Iraq, where previous governments resorted to raising the exchange rate of the dinar in an artificial and arbitrary manner with the aim of gaining political and popular support."

He pointed out that joining the international organization would contribute to controlling this file.

Customs restrictions and agricultural support

In this regard, the financial advisor to the Prime Minister, Mazhar Mohammed Salih, stated in an interview with “Al-Ahd News” that Iraq has adopted broad open policies towards the world since 2003 and has sought to establish important economic and legislative rules that operate according to the mechanisms of the market system

Most of which have helped improve Iraq’s foreign trade, after an economic blockade that lasted for more than a decade and led to Iraq’s marginalization on the map of the global economic system and deprived it of investment opportunities, progress, development and technological knowledge that should have helped it confront the rapid developments and changes that international markets have witnessed and whose competitive capabilities have changed
dramatically over the past two decades at least.

Saleh pointed out that "the World Organization imposes on the new members of the developing countries group to work under conditions, the first of which is to reduce customs restrictions by 24% and cancel non-customs restrictions for a period of 6 years from the date of joining, and the second is to reduce agricultural support by 13.3% over a period of ten years from joining."

 Saleh explained that "these regulatory conditions of the World Trade Organization clash with the conditions and situations of the agricultural market and the global food stock exchange itself. If we look at the agricultural monopolies in the world in light of the deterioration of agricultural development in Iraq, we find a real threat to national food security that restricts the country in the event of joining the organization unless it is preceded by starting or following an agricultural program for self-sufficiency immediately.

We will really need a green revolution similar to what Mexico and many Latin American countries have done, especially if we know that there are between 3 and 6 major monopolistic companies in the world that control 80 to 90% of agricultural crop trade and control prices and quantities such as wheat, sugar, tea, coffee, cotton and jute, at a time when ten multinational companies still dominate a third of the production and trade of seeds and pesticides in the world."

Breaking international isolation

Saleh pointed out that "despite the above, Iraq's entry and integration into the global economic space through the World Trade Organization and its dealings with international groups on terms that apply to everyone from a formal standpoint at a time when the world is still divided between the countries of the North and the South or the countries of the advanced industrial center and the developing periphery, Iraq has no choice but to leave its international isolation that it inherited since the siege and placing Iraq under the burden of Chapter Seven, the effects of which still provide a negative economic environment hostile to development and perhaps obstructing natural integration into the global market."

Accelerate joining steps

For his part, Minister of Trade Athir Dawood Al-Ghariri confirmed the resumption of negotiations for Iraq’s accession to the World Trade Organization and the acceleration of its steps, which is a qualitative event and a confirmation of what the government promised through its program to reform the economic situation, considering the private sector an essential part and the backbone of the Iraqi economy.

Al-Ghariri said in a statement followed by "Al-Ahd News" that the fourth round of negotiations will be held during the first quarter of next year, stressing that this acceleration means that the negotiations are proceeding very quickly towards Iraq's accession to the World Trade Organization, considering Iraq an important economic bloc and all countries keen for Iraq to return as an economic player in a multilateral system.

For his part, the Saudi Ambassador to the World Trade Organization, Saqr Abdullah Al-Muqbil, said that there is a positive view that we will find Iraq joining the multilateral trading system as it is one of the largest economies outside this organization, and Al-Muqbil confirmed that "the Kingdom of Saudi Arabia has a priority that Iraq's desires to join the organization be fulfilled.  LINK

"Iraq to Expand National Maritime Fleet" BY GOLDILOCKS, 23 JULY

 GOLDILOCKS

Announcement: "Iraq to Expand National Maritime Fleet"

Their plans are to add eight more ships between now and early next year. These commercial vessels will go a long way towards demand for what Iraq can supply.

Commercial vessels can carry a variety of cargo including:

* General cargo: Packaged items like food, furniture, machinery, and clothing

* Containerized cargo: Items shipped in truck-sized containers

* Wheeled cargo: Cars, trailers, semi-trailer trucks, railroad cars, and buses

*Oversized cargo: Vehicles and heavy equipment

* Refined products: Petroleum, diesel, asphalt, jet fuel, tar, and lubricating oil

* Non-petroleum bulk products: Palm oil

* Military cargo: Specialized ships like LMSR can transport military cargo

This increase in demand for Iraq's offerings will begin to put price pressure points on their currency. 

The ships are not small in any way, and they can carry a lot of goods and offerings that will bring more prosperity to Iraq.

Watch the water.

© Goldilocks 

https://www.iraq-businessnews.com/2024/07/17/iraq-to-expand-national-maritime-fleet/

https://seaaffinity.org/what-is-a-commercial-vessel/

https://ifa-forwarding.net/blog/sea-freight-in-europe/types-of-cargo-shipped-by-sea-freight-transport/#:~:text=The%20main%20categories%20of%20cargo,liquid%20bulk%2C%20and%20container%20cargo.&text=Containers%20are%20used%20to%20ship,clothing%2C%20televisions%2C%20and%20toys.

Breaking News: New Dinar Rates Update! Is It Finally Happening?#iraqidin...

3 Years Without Achievement.. Iraq Wastes Its Renewable Energies And There Is No "Seriousness" In Exploiting Them ,23 JULY

 Economy News – Baghdad   In 2021, the Iraqi government launched the Solar Energy and Emissions Reduction Initiative, and in 2022 confirmed its support, but it does not appear to be effective or fully completed to date.

The initiative stipulates the installation of solar energy systems on the roofs of state institutions, and the amount allocated for it is 90 billion Iraqi dinars for five years to support the national grid.

The Iraqi government sought to solve the electricity problem by contracting with major countries and companies in the field of renewable energy, including signing agreements with Arab and foreign companies to establish solar power projects in Iraq, but its efforts faltered, which keeps the wealth of solar energy under-exploited.

Energy expert Murtadha Hatem says, “Launching an initiative to support energy and reduce emissions through solar energy in Iraq is an important step towards achieving sustainable development and preserving the environment.”               

He added, "Relying on solar energy contributes to reducing dependence on fossil fuels, which ensures greater sustainability of energy sources, and reduces price fluctuations associated with oil prices."

He explains that "solar energy is a clean source of energy that helps reduce greenhouse gas emissions and improve air quality, which is important in confronting climate change," indicating that "reducing dependence on energy imports from abroad and increasing local production enhances the country's energy security."

He added, "Developing solar energy projects can provide many job opportunities in the fields of design, installation, and maintenance, in addition to stimulating innovation and investment in clean technology."

 Hatem confirms that “Iraq has abundant solar resources that can be exploited to provide sustainable and cheap energy, which contributes to improving the energy infrastructure.”

 He explained that “launching solar energy initiatives reflects the government’s commitment to shifting towards a green and sustainable economy, which enhances Iraq’s position in the international community as an environmentally responsible country.”

 Journalist and renewable energy expert Ali Naji says, “All the systems that were built in all their forms on the roofs of state institutions before this initiative were not successful and almost failed, including those installed on departments related to renewable energy.”

 He added, "There are instructions from the Civil Defense that specify the hours of use of renewable energy during official working hours only, which means there are losses in operating solar systems from the moment of sunrise until the moment of the start of official working hours and connecting the system to the national grid," explaining, "Generation losses from the end of working hours until sunset, due to the national grid being cut off after the end of working hours, in addition to holidays and occasions when it is out of service."

 He added, "Installing these systems on the roofs of buildings will hinder the process of roof maintenance in the event of damage," stressing that "these departments do not have sufficient personnel to manage and maintain these solar systems, and even if they are trained, partial training is not sufficient and does not cover the requirements of these systems."

 Regarding the obstacles that hinder the success of the initiative, Ali Naji explains that “these systems should be placed on the outskirts of cities in the form of farms (solar energy farms) divided into five regions, for example, between the northern, central and southern regions, as is the case in Egypt, the Emirates and others,” noting that “the number of employees to maintain them will be less and easier to control, in addition to these farms being planted with trees, which will increase afforestation operations.”

 He added, "The systems are connected in two ways: to the national grid, and also to charge batteries to support areas in the event of a lack of electricity or a lack of electricity supply."

Iraq, whose infrastructure is in shambles after decades of conflict and chronic corruption in public administrations, needs more than 32,000 megawatts to cover its needs, but the country's power plants produce only about 24,000 megawatts.

 On March 12 of last year 2023, Oil Minister Hayan Abdul-Ghani announced that preparations were underway to launch the first solar energy project in Iraq, with a capacity of about 1,000 megawatts, which coincided with the state’s efforts to enhance its investments in the renewable energy and natural gas sector.

Despite this need, renewable energy remains underutilized, with Iraq enjoying just over 3,000 hours of sunshine out of 8,700 hours per year. Meanwhile, more than 98 percent of Iraq’s electricity is generated by fossil fuels, according to a World Bank report.

 To encourage residents to install solar energy systems, the Central Bank of Iraq announced in 2022 the allocation of one trillion dinars (about $750 million) to secure subsidized loans for the private sector, including homes and private companies. But according to renewable energy specialists, this project is faltering due to the lack of cooperation from banks.

 Over the past years, Iraq has relied on Iran for electricity supplies, importing 1,200 megawatts, as well as gas fuel to feed local power plants.

 This year, the Iraqi News Agency quoted the authority’s advisor, Rahim al-Jaafari, as saying, “There are serious and practical steps to produce electricity from solar energy, as a plan has been developed to produce about 12,000 megawatts by the end of 2030,” adding that “it has been approved by the Council of Ministers.”

 The Ministry of Environment has identified 3 types of pollution, including waste, that represent a challenge during the current stage in Iraq, calling for the adoption of modern technologies and renewable and clean energy as an alternative to fossil fuels. 

85 views 07/23/2024 - https://economy-news.net/content.php?id=45489

RV UPDATE BY JON DOWLING, 23 JULY

JON DOWLING

Now that Iraq is meeting in Washington and Netanyahu is wanting to go to DC, you have to figure that Israel is involved behind the scenes in these meetings planning their attack on the Iranian proxies. 

@JonDowling

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Funny how America and Iraq copy each other. Dems and Rino’s going nuts because President Trump is safe and will lead to their exposure and demise. Similarly, Maliki in Iraq is going nuts trying to stop the reforms and ascension into the WTO, because he and his bastard goons know this is the end of them and their corrupt ways forever. 

All Sudani needs to do is go to the border and talk to our military and tell them what’s up and let them go into parliament and pull out all the corrupt goons and this all ends. He is smart and most likely this will be his next course of action. 

@JonDowling

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The US is giving Iraq one week to pick a new speaker of the house. Next week they’ll finally have one.

 That coupled with the talks to join the WTO brings us another step closer to the RI. Ultimately it’s all a stall tactic until Israel does their part. See you in September. 

@JonDowling

https://dinarevaluation.blogspot.com/2024/07/rv-update-by-jon-dowling-23-july.html

NADER FROM MID EAST: Iraq bank sector