Monday, October 2, 2023
Strategic Dialogues and Security Cooperation: Iraq’s Multifaceted Approach to National Stability, 2 OCT
Strategic Dialogues and Security Cooperation: Iraq’s Multifaceted Approach to National Stability, 2 OCT
President Abdullatif Rashid of Iraq recently convened a crucial meeting with influential government figures including the Prime Minister, Parliament Speaker, and Chief Justice. The discussion revolved around the country’s political and security status, the tragic fire at a wedding hall in Nineveh, and the outcomes of the Prime Minister’s visit to the United Nations General Assembly. The leaders committed themselves to support the victims’ families and emphasized the importance of infrastructure development in the region. The meeting also broached the proposal for a special pardon for women and juveniles, excluding those involved in serious crimes.
Reflecting on the Political and Security Landscape
The meeting served as a platform to review Iraq’s political and security situation in-depth. The leaders condemned any aggression towards Iraq and encouraged dialogue as the primary tool for resolving differences. They also highlighted the role of Iraq in the regional context and the crucial need for infrastructure development. These discussions aimed to steer the nation towards a more secure, stable, and economically vibrant future.
Addressing the Nineveh Wedding Hall Tragedy
In light of the recent fire at a wedding hall in Nineveh that resulted in a tragic loss of life, the leaders pledged to support the victims’ families. They agreed on the necessity of implementing safety measures to prevent similar incidents in the future. The incident highlighted the scope for improvement in the nation’s disaster management protocols and infrastructure.
(Read Also: “Gross Negligence” and Safety Lapses Blamed for Deadly Iraqi Wedding Hall Fire)
Insights from the UN General Assembly Visit
The outcomes of the Prime Minister’s visit to the UN General Assembly were also discussed during the meeting. The visit, which aimed to foster international relations and present Iraq’s position on various global issues, provided valuable insights that were shared with the key government figures. These insights are expected to influence the government’s future strategy and policy decisions.
Fostering U.S.-Iraq Defense Relations
In a parallel development, U.S. and Iraqi defense leaders held talks at the Pentagon to discuss an enduring strategic relationship between the two nations. Secretary of Defense Lloyd J. Austin III and Iraqi Defense Minister Thabit Muhammad Al Abassi engaged in a joint security cooperation dialogue. The U.S.-Iraq bilateral engagement, which extends beyond the Defeat ISIS agreement, signifies a maturing strategic partnership. The United States affirmed its commitment to assisting Iraq in building a secure, sovereign, and economically vibrant nation.
(Read Also: Exiled Iranians: Players on a Global Chess Board)
Building a Comprehensive Partnership
The U.S.-Iraq joint security cooperation dialogue reflects the growing capabilities and confidence of Iraqi forces. The enduring defense relationship, encapsulating military training, exchange programs, and more, aims to foster a comprehensive partnership. This partnership is expected to extend beyond military cooperation, encompassing economic collaboration, climate change cooperation, and diplomatic engagements. The joint security cooperation dialogue is an integral part of this process, aiming to normalize the bilateral relationship between the U.S. and Iraqi militaries.
As Iraq navigates its path towards stability and prosperity, these strategic dialogues and partnerships play a pivotal role. The nation’s leaders, through their commitment to dialogue, cooperation, and reform, are steering Iraq towards a secure, sovereign, and economically vibrant future.
Iran and Iraq Reiterate Commitment to Implement Security Agreement, 2 OCT
Iran and Iraq Reiterate Commitment to Implement Security Agreement, 2 OCT
General Ali-Akbar Ahmadian, the Secretary of Iran’s Supreme National Security Council, and Qasim al-Araji, Iraq’s National Security Adviser, recently convened to discuss the implementation of the Tehran-Baghdad security agreement. The agreement, inked in March, is designed to bolster the security of the borders of both countries and eliminate any elements that could destabilize the region.
Securing Borders, Enhancing Relations
During their meeting, Ahmadian underscored the necessity of ensuring the security agreement’s strict and comprehensive implementation, suggesting that it serves as an effective roadmap for eradicating insecure elements within the two countries and the broader region. He also pointed to the abundant capacities for improving bilateral relations across different sectors.
Al-Araji reciprocated these sentiments, affirming Iraq’s dedication to the agreement’s full implementation. He also expressed Iraq’s willingness to explore every opportunity to develop and deepen relations with Tehran. The Iraqi official emphasized the determination of the Iraqi government and his National Security Council in implementing the security agreement.
Addressing Regional Security Concerns
The security agreement also addresses the issue of Kurdish groups active in the Arab country’s Kurdistan Region, which Iran identifies as terrorists. Under the agreement, Iraq has pledged to disarm these groups and relocate them to alternate camps.
The deadline to disarm and relocate these groups expired on September 19, with both Iranian and Iraqi authorities working tirelessly to implement the agreement. Political and security officials in Baghdad and the autonomous Iraqi Kurdistan region have confirmed that these groups have been relocated to camps inside Iraq, well away from the border with Iran, where they were previously conducting hit-and-run operations.
Setting The Stage For Sustainable Security
The successful implementation of the security agreement could signify the dawn of a new era of sustainable security for both Iran and Iraq, a development that could unlock significant economic benefits for both nations and the Iraqi Kurdistan region. The presence of the Kurdish militant groups had been a significant hurdle to such benefits, but with the security situation stabilizing along the Iran-Iraq border, new opportunities for economic prosperity could emerge.
Ahmadian also paid tribute to the Iraqi government for organizing the magnificent Arbaeen rituals and the hospitality of the Iraqi people toward Iranian pilgrims. He emphasized the political and cultural significance of these rituals in strengthening the bonds between the Shias in Iran and Iraq. This year, more than 3 million Iranians visited Iraq to mark Arbaeen.
Hopes for Deepened Ties
Both Ahmadian and al-Araji share a vision of deepened ties between Iran and Iraq, a sentiment reinforced by the successful implementation of the security agreement. Al-Araji said, “We will welcome and use any opportunity for developing and deepening Baghdad-Tehran ties.”
This high-level meeting and the mutual commitment to the security agreement underscore the ongoing diplomatic efforts by both Iran and Iraq to enhance their cooperation and ensure the security of their borders and the broader region, demonstrating their dedication to fostering mutual security and stability, which remains a priority in their bilateral relationship.
Iraqi Oil Exports to Jordan Resume: A Closer Look at Trade, Value and Future Prospects, 2 OCT
Iraqi Oil Exports to Jordan Resume: A Closer Look at Trade, Value and Future Prospects, 2 OCT
The Iraqi Oil Marketing Company (SOMO) has recently revealed that the average price of crude oil exported to Jordan was $78 per barrel in September. This figure is $14.05 less than the official selling price, indicating a significant discount in favor of Jordan. The total oil exports to Jordan for the month reached 449,423 barrels, averaging 15,000 barrels per day, and amounted to approximately $35 million in value. The resumption of oil exports follows a memorandum of understanding for crude oil supply between the Iraqi Ministry of Oil and the Jordanian Ministry of Energy and Mineral Resources, which was approved by the Iraqi Cabinet in March 2023.
A History of Oil Trade between Iraq and Jordan
Historically, Jordan has depended on oil supplies from Iraq to meet a portion of its domestic demand. In September 2021, Jordan began receiving oil shipments from the Kirkuk fields under an agreement to purchase 10,000 barrels of crude oil daily. However, this supply was halted in February 2022 due to the expiration of the contract, only to resume in April, pause again in August, and then resume once more in September 2022.
(Also Read: Turkey’s Possible Transfer of Advanced Drones to Ukraine: A Shift in Military Power Dynamics )
The Iraqi Cabinet’s approval of the memorandum of understanding signifies an extension of this agreement set for one year, effective from its implementation date. The two countries have since reached an agreement to increase monthly oil imports to 450,000 barrels from the previous 300,000 barrels. Iraq facilitates these exports through tanker trucks, delivering approximately 15,000 barrels daily.
The Impact of Oil Trade on Jordan’s Economy
The resumption of oil imports from Iraq has significant implications for Jordan’s economy. The quantity of oil imported from Iraq constitutes about 7% of Jordan’s needs for crude oil. The discounted rate at which Iraq sells its crude oil to Jordan ($78 per barrel, as opposed to the official selling price of $92.05) represents a substantial economic benefit for Jordan. It is estimated that Jordan makes about $25 million in revenues each year due to this discount.
Future Prospects
Looking forward, the continuation and potential expansion of this oil trade agreement between Iraq and Jordan could have considerable economic and political implications. It not only strengthens the bilateral ties between the two countries but also aids in increasing the value of trade between them. This agreement also represents a strategic move for Iraq, which needs to diversify its export outlets. Jordan offers a reliable and stable partner in this regard.
(Also Read: Legal obstacles to decisions on behalf of children should be removed forthwith – PM)
Furthermore, the potential implementation of the Iraq-Jordan Export Pipeline, a project that has been proposed since 1980, could further increase the capacity for oil trade between the two countries. This pipeline, stretching from Basra in Iraq’s southernmost tip to Jordan’s Red Sea Port of Aqaba, can transfer around 1 million barrels a day, significantly boosting the volume of oil trade.
As the dynamics of global oil trade continue to evolve, the relationship between Iraq and Jordan in this sector will undoubtedly remain a key focus for policymakers, analysts, and industry stakeholders.
Surge in US Dollar Value Against Iraqi Dinar: A Turning Point for Iraq’s Economy, 2 OCT
Surge in US Dollar Value Against Iraqi Dinar: A Turning Point for Iraq’s Economy, 2 OCT
The US dollar has seen a significant surge in its value against the Iraqi dinar, a trend observed in both Baghdad’s central forex markets and the Kurdistan region. This development has sparked concerns over the potential impact on ordinary Iraqis, already burdened by a fragile economy, and has brought into sharp focus the country’s financial interactions with neighboring Iran.
The Escalating Exchange Rate
The dollar’s exchange rate against the Iraqi dinar has been on an upward trajectory recently. In Baghdad’s al-Kifah and al-Harithiya Central Exchanges, the dollar traded at a rate of 156,150 IQD for 100 dollars, a noticeable increase from the previous rate of 155,700 IQD. In the parallel markets in Baghdad, the selling and buying rates of the dollar were pegged at 157,000 and 155,000 IQD for 100 dollars, respectively. Similarly, in Erbil, the capital of the Kurdistan region, the dollar’s selling and buying rates were at 156,250 and 156,150 IQD for 100 dollars, respectively.
Underlying Factors
The rise in the dollar price started shortly after the new government assumed office in late October of last year. During the previous regime, the rate was relatively stable, hovering between 1,450 to 1,470 dinars to the dollar. The sudden surge has been attributed to the alleged smuggling of U.S. dollars or illegal transfers from Iraq to Iran during the term of the new government, comprised primarily of militias and political groups close to Iran.
Iran, currently grappling with a severe economic crisis due to sanctions, has seen the U.S. dollar’s value against the Iranian rial reach an all-time high. Iraq’s regular imports of gas and electricity from Iran, exempt from U.S. sanctions, are paid in Iraqi dinars to accounts in Iraqi banks owned by Iranians. Given the current circumstances, Iran needs U.S. dollars to control rising prices and stabilize its economy, which has resulted in the illegal trafficking of U.S. dollars. However, the smuggling of currency is not confined to Iran, with Iraqi militias reportedly smuggling money to Syria and Turkey as well.
Policy Measures and Implications
To combat this issue, the Iraqi central bank has prohibited four Iraqi banks from using U.S. dollars. These include Al Ansari Islamic Bank for Investment and Finance, Al Qadhaf Islamic Bank for Finance and Investment, Asia Iraq Islamic Bank for Investment and Finance, and the Iraqi Middle East Investment Bank. The central bank is also auditing several other banks and financial organizations in an attempt to halt the illegal use of dollars in Iraq.
While these measures are aimed at curbing illicit financial activities, they might inadvertently affect the functioning of the Iraqi banking sector and the broader economy. The escalating exchange rate has triggered protests in Iraq, with citizens demanding a reduction in the dollar price. They argue that the rising dollar rate has led to an increase in the prices of commodities, including food products, thereby escalating the cost of living in Iraq.
The Iraqi government has responded by raising the value of the Iraqi dinar against the U.S. dollar to limit the impact of the dollar’s appreciation on Iraqi citizens. However, the effectiveness of this measure remains to be seen.
Looking Ahead
The rising dollar’s exchange rate against the Iraqi dinar presents a complex challenge for Iraq’s economy. It underscores the need for stringent financial regulations to curb illegal activities and maintain economic stability. At the same time, it highlights the importance of geopolitical considerations in the country’s economic affairs, particularly its financial dealings with Iran.
As Iraq navigates this economic conundrum, the government’s policy measures and their implications will be closely watched by domestic and international stakeholders. The way forward requires a delicate balance of strong economic governance, regulatory compliance, and geopolitical diplomacy to ensure the stability and prosperity of Iraq’s economy.
"RV UPDATE" BY FRANK26, 2 OCT
Frank26
The WTO...you don't have to have a high exchange rate. But what do you have to have in order to be part of the WTO? Your currency must be what? Sanction free. There must not be any restrictions on your bank or your currency to join the WTO.
A program rate is not a stable controlled exchange rate. They are saying things are different now. They are secure and stable. We do have international standards established...TIDBIT FROM NADER FROM MID EAST, 24 NOV
Nader From The Mid East We will not go more than $4 so don't waste your time and ask question about $16, $8, $11 and $12. Don'...
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Frank26 [Bank story] This time we didn't go down, we just called [the bank]... We said we want to see if we can exchange some cu...
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Bank appointment for Currency EXCHANGE Instructions/Checklist Bank Name_________________________________________ Bank 800#____________...
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Walkingstick All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. Al...