An important economic recommendation for the Central Bank after it used exchange companies to sell dollars to travelers
An important economic recommendation for the Central Bank after it used exchange companies to sell dollars to travelersOn Saturday, economist Omar Al-Halbousi recommended that the Central Bank choose prudent exchange companies that adhere to its decisions and procedures to sell dollars to travelers at airports.
Al-Halbousi told “ Jarida ” that “exchange companies are considered more connected to the public, as they are the easiest and fastest in doing business, and that the Central Bank’s decision to use police methods to fight and restrict them exacerbated the exchange rate crisis, and proved that they were not behind the dollar leak.”
He stressed, “The evidence for this is that despite fighting it and strangling it with measures, the dollar continued to leak into the black market and out of Iraq, and that the Central Bank sided with the real problem and went to the exchange companies, which because of its measures increased the difference between the two prices.”
He explained, “The Central Bank of Iraq’s decision to ask exchange companies to open branches at airports to sell dollars to travelers contradicts its previous measures to fight them, which is what made it return today once again to seek their help in selling dollars.”
He added, “Therefore, we hope that the choice will be for prudent companies that are committed to the decisions and procedures of the Central Bank and avoid favoritism, as happens in favoritism with private banks, which contributed to complicating the exchange rate problem and embarrassing Iraq before the US Treasury Department.”
Mohsen Al-Mandalawi Calls for Completion of Remaining Projects in Baghdad, 15 OCT
In a bid to uplift the quality of life and infrastructure in the capital city of Iraq, First Deputy Speaker of Parliament Mohsen Al-Mandalawi has urged the initiation of comprehensive campaigns aimed at completing the remaining projects in Baghdad. In his recent statement, Al-Mandalawi emphasized the necessity of these campaigns to better the city’s infrastructure, services, and overall living conditions for its denizens.
Emphasizing Coordinated Efforts
Al-Mandalawi underscored the necessity of strengthened coordination between the government bodies and private sector firms for the successful completion of these projects. He accentuated the role of a collective effort in achieving the target and ensuring the projects’ successful fruition.
Transparency and Accountability: A Key Focus
As part of his statement, Al-Mandalawi also highlighted the critical role of transparency and accountability in the allocation of funds and resources for these campaigns. He stressed that these aspects would be paramount in maintaining trust and ensuring the proper use of resources, thereby leading to the successful completion of the planned projects.
Involving Local Communities
Al-Mandalawi also underscored the importance of involving local communities in the decision-making process. He said that the residents of Baghdad should actively participate in the development plans of their neighborhoods. This approach would ensure a more inclusive and effective implementation of the projects, addressing the actual needs of the residents and making them feel a part of the development process.
Government’s Commitment to Improve Living Conditions
The statements from Al-Mandalawi reflect the government’s commitment to addressing Baghdad’s needs and improving its residents’ living conditions. It is a sign of the government’s dedication to infrastructure development and service improvement, aimed at making Baghdad a better place for its inhabitants.
Iraqi Parliament Calls for Activation of Arab Defense Treaty Against Israel, 15 OCT
In a striking move, the Iraqi parliament has demanded the activation of the Arab Defense Treaty in retaliation to Israel’s ongoing assaults on the Gaza Strip. These attacks have sparked international outcry, as the violence escalates and innocent lives continue to be lost.
Regional Response to Israeli Aggression
The Iraqi parliament’s call for action is a pointed rebuke of Israel’s military activities, which have led to the deaths of over 2,000 Palestinians and displaced around 1 million more. This request is not just a plea for help—it’s a demand for justice. The Arab Defense Treaty, established in 1950, exists to foster collective defense among Arab nations. While the treaty holds symbolic significance, its activation could lead to coordinated military responses by member states.
Furthermore, the legislators have urged the United Nations to intervene and prevent further bloodshed and displacement of Palestinians. They have called for an emergency session of the Arab League—a conglomerate of nations from North Africa, West Asia, and parts of East Africa. This session would be focused on condemning Israeli aggression and discussing potential responses.
The Gaza-Israel Conflict
The conflict between Israel and Palestinian militant groups, primarily Hamas, has been ongoing since October 7th. It started with a surprise offensive by Hamas, involving rocket attacks and breaches of the Gaza-Israel barrier. The Israeli army has reported two missile launches from Syria, but they landed in unpopulated areas and did not require air defenses to intercept them. However, the conflict has escalated quickly, with devastating consequences for both sides.
Israel’s retaliation has involved airstrikes in the Gaza Strip, resulting in a tragic loss of Palestinian lives. Israel has also cut off essential supplies to Gaza, including food, water, electricity, and fuel. This has intensified fears of an impending humanitarian crisis.
Humanitarian Crisis in Gaza
The ongoing conflict has resulted in a dire humanitarian situation in Gaza. With nearly half of the population internally displaced and the healthcare system on the verge of collapse, the region is in desperate need of aid. The United Nations and other international entities have called for an immediate ceasefire and the delivery of humanitarian aid.
Egypt has offered to host a regional summit to discuss the situation and find a peaceful resolution to the Israeli-Palestinian conflict. However, as the violence continues, so too does the suffering of the Palestinian people.
A Call for Solidarity
The Iraqi parliament’s call for the activation of the Arab Defense Treaty is a reflection of the growing solidarity among Arab nations in support of Palestine. It is a cry for action in the face of a humanitarian crisis that shows no sign of abating. As the conflict continues, international efforts to broker a ceasefire and provide aid to Gaza are more crucial than ever.
The situation remains fluid, with the international community watching closely, hoping for a peaceful resolution to the conflict. The plight of the Palestinian people is a reminder of the pressing need for diplomacy and dialogue in addressing global conflicts.
FIREFLY: News saying within 2 months the dollar exchange rate will stabilize.
FRANK: Inside the next 2 months it's highly possible we'll see a new exchange rate.That's the only thing that can stabilize it because a program rate unstabilizes it. This is as simple as I can put it. I'm not exaggerating. I'm not adding to it. This is for real.
FIREFLY: The television is saying the oil and gas law is still with the government technical committees and is being reviewed.
FRANK: See! Where did I tell you the HCL is at? In a little box in the top shelf of Sudani's desk...It is being reviewed? I agree, because it will require a new exchange rate. What are they going to do pay you $0.30 a month?
Nobody used to touch the Iraqi dinar. Nobody used to any Iraqi stocks. They wouldn't touch [Iraqi's] currency. It was worthless. But the whole world now knows thanks to Sudani the potential of your currency...
We study this investment that is moving forward unless for some reason Sudani and Alaq are not what we think they are. I'm not giving up on them.
I'm not seeing anything that tells me to give up on them except, What the hell are you waiting for?
The oil and gas law is an open crisis between Baghdad and Erbil, 15 OCT
As the deadline for an agreement between the central government in Baghdad and the Kurdistan Regional Government approaches, disputes are reignited over new details that reveal a lack of desire to reach a final settlement. Each party wants to control the oil and gas file, either under the title of the government’s right or the flexibility of the system of regions.
According to sources within the Iraqi parliament, negotiations between Baghdad and Erbil aimed at issuing a new oil and gas law have once again failed. This has had an impact on the parliamentary Oil and Gas Committee, which has admitted its inability to resolve the contentious issues between the two parties.
The ongoing crisis since 2005 will continue due to differing perspectives on oil and gas revenues between the central and regional governments.
Observers note that there is a disagreement between the central government and the Kurdistan Regional Government regarding the control of revenues generated by natural resources in Iraq. The central government believes that it should have full control over these revenues due to its sovereignty, while the regional government argues that the federal system grants it the right to control the revenues, with some degree of federal supervision.
Zainab Al-Moussawi, who is a member of the Parliamentary Oil and Gas Committee, has stated that the process of enacting the oil and gas law is slow due to contentious issues. The management of the Kurdistan region’s oil fields and the financial revenues generated from selling oil and exporting abroad are the most significant points of contention.
During the conversation, she mentioned that there are two controversial points that indicate that the management of national wealth, including those in Kurdistan, is under the control of the federal government. She further stated that the management of federal financial revenues and the export of Kurdish oil abroad through the National Oil Company (SOMO) are also points of contention, to which Erbil objects.
Al-Moussawi stated that the dialogues between Baghdad and Erbil are ongoing to resolve differences and approve the law that will redraw Iraq’s oil map.
Based on observers’ expectations, it seems that the dialogues available for addressing the issues related to sovereignty over oil revenues, central supervision, and independent rights of regional governments to manage local affairs are only temporary settlements. These dialogues facilitate the distribution of salaries to employees in the region, but don’t address the fundamental issues. It is still unclear whether the federal system grants the regional government independent rights to manage local wealth similar to how it grants them independent rights to manage other local affairs.
In Baghdad, many people believe that allowing Erbil to have control over oil will increase separatist movements and give the Kurdistan Regional Government an unfair advantage in terms of resources. Although several governorates have oil resources, the revenue from these resources is distributed equally among all governorates, which should also include the three governorates in the region.
Officials from the Kurdish region deny that controlling the area’s oil resources implies a renewed push for separation. They argue that the federal system, while granting some rights to the central government, doesn’t grant it all rights as it does currently.
The Iraqi government aims to regulate the oil and gas sector through a single national company, with all imports being deposited in a single account.
In February of last year, the Federal Court in Baghdad issued an order for the region to surrender the oil produced on its lands to the central government in Baghdad. Furthermore, the court also mandated the cancellation of all contracts signed by the region with foreign companies. As a result, the judiciary in Baghdad invalidated contracts with many foreign companies, particularly American and Canadian ones.
In early April, a temporary agreement was signed between Baghdad and Erbil, stating that all oil sales in Kurdistan must be made through the Iraqi Oil Marketing Company (SOMO). Moreover, the revenues generated from the region’s oil fields will be deposited in a bank account that is either approved by the Central Bank of Iraq or is the Central Bank of Iraq itself.
The Kurds deny that controlling the region’s oil resources is a step towards renewed separatism.
Jutiar Adel, the head of the Media and Information Department of the Kurdistan Regional Government, has emphasized that the draft law should be based on the principle of true partnership. The law should also include mechanisms to ensure the optimal utilization of Iraq’s natural resources, and to guarantee the rights of all parties fairly. It is essential to prevent the decline of one party at the expense of another.
The debate between the two parties centers on a single word in Article 112 of the Iraqi Constitution, which was issued in 2005. The article stipulates that the federal government, along with the governments of producing regions and governorates, shall manage the extraction of oil and gas from current fields, and distribute the profits fairly based on population distribution. Additionally, a portion of the profits will be allocated to the areas affected by the previous regime.
As per the decision made by the Kurdistan Region Judicial Council on May 30, 2022, the paragraph only applies to “current” fields, which means that the oil fields in Kurdistan are not included as they were discovered and developed after the paragraph was written. These fields were instead governed by a special law passed by the region’s parliament in 2007. This has led some observers to question whether new oil fields discovered in other regions of Iraq will also be exempt from this article of the constitution.
Baghdad activates oil contracts with Emirati company, 15 OCT
Shafaq News / The Iraqi Ministry of Oil announced on Sunday the activation of contracts with an Emirati company for the development of three oil and gas fields.
In a concise statement, the ministry revealed that it has executed three energy agreements with the Emirati oil company Al-Hilal to advance three key oil and gas fields within Iraq.
This development follows the ministry's prior declaration on February 21, 2023, regarding the signing of three contracts with the Emirati oil company Al-Hilal to develop gas fields in the provinces of Basra and Diyala.
According to the ministry, the Emirati company will undertake the development of two fields in Diyala province, aiming to produce a daily standard measurement of 250 million cubic feet of natural gas within 18 months.
