Kurdistan’s Fiscal Deadlock: Unpaid Salaries and a Strained Relationship with Baghdad, 30 OCT

Kurdistan’s Fiscal Deadlock: Unpaid Salaries and a Strained Relationship with Baghdad

An air of frustration hangs heavy over the Kurdistan Regional Government (KRG), as the fiscal tug-of-war with Baghdad takes its toll on the region’s public sector workers. Struggling with delayed payments for months, these workers bear the brunt of a protracted fiscal deadlock that has now stretched into a full-blown crisis.

The Unpaid Wages Conundrum

At the heart of this crisis lies a delay in funds sent from the Iraqi government to pay civil sector salaries. A deal struck in mid-September promised a semblance of relief, but the wait for remuneration continues for many. This impasse has sparked strikes in provinces like Sulaimani and Halabja, where teachers have refused to work until their unpaid wages are settled. In response, the KRG has dispatched a delegation to Baghdad, hoping to secure a “final and radical” decision on the matter.

However, the issue is far from new. The KRG has grappled with paying civil servant salaries on time for nearly a decade. A series of financial crises, compounded by the suspension of Kurdish oil exports through the Iraq-Turkey pipeline, has left the regional government cash-strapped and its workers, disillusioned.

An Audited Report and a Plea for Funds

Recently, the Ministry of Finance and Economy in the KRG sent an audited financial report for the months of July, August, and September to Baghdad. The report, a comprehensive account of the region’s revenues and expenditures, is part of a plea for the federal government to send the necessary funds to cover employee salaries.

The Iraqi federal government has offered reassurances, promising to send 700 billion dinars as part of the second agreed-upon installment to finance salaries for the last three months of 2023. Benkin Rekani, the Minister of Construction, Housing, and Public Municipalities, confirmed this, noting the positive atmosphere within Parliament and the federal government. Yet, the funds remain elusive, and the KRG’s patience appears to be wearing thin.

A Strained Relationship and a Call to Action

For the KRG, the delay in funds is not just a financial issue, but a violation of its constitutional rights and financial entitlements. Having fulfilled its duties and responsibilities, the regional government expects the federal government to reciprocate. The delegation sent to Baghdad is more than a diplomatic mission; it is a demand for a lasting solution to the recurring budgetary issues.

If the situation continues to deteriorate, the KRG has vowed not to remain silent. The constitutional rights of the people of the Kurdistan Region are at stake, and the KRG stands ready to protect them. These financial challenges underscore the strained relationship between the Kurdistan Region and Baghdad, highlighting the region’s heavy reliance on oil revenues and the significant impact of disrupted exports.

As civil servants continue to weather the storm of unpaid salaries, the KRG’s battle for fiscal autonomy rages on. The region’s financial destiny remains in the balance, tethered to the whims of a federal government hundreds of miles away. Amid the uncertainty, the people of the Kurdistan Region wait, hoping that the next paycheck will not be another casualty of this fiscal deadlock.

https://bnn.network/breaking-news/kurdistans-fiscal-deadlock-unpaid-salaries-and-a-strained-relationship-with-baghdad/

New Rate & Lower Notes💣PM Annoucement Next Week?🤔Iraq Dinar RV Updates |...

Iraq’s Rafidain Bank Capitalizes on Rising Oil Prices with Digital Dollar Sales, 30 OCT

 Iraq’s Rafidain Bank Capitalizes on Rising Oil Prices with Digital Dollar Sales

In the city of Baghdad, where the echoes of war are gradually being replaced by the hum of economic activities, Rafidain Bank, one of Iraq’s largest financial institutions, has set a new course in a bid to capitalize on the rising tide of a resurgent economy.

A Strategic Pivot

Rafidain Bank announced it would sell $100 in electronic form to travelers at the rate of 132,000 dinars. The bank has already begun receiving applications through the online form on its website. This strategic move comes at a time when the price of crude oil in the United States is at its highest level in nearly two years, a development that could potentially reflect positively on the bank’s profitability.

The Central Bank of Iraq, too, has reported a significant surge in its sale of hard currency to the US dollar. In the past week alone, the bank sold over $996 million, with the highest sales recorded on Wednesday. A large chunk of these sales came from foreign remittances, indicating a rise in cash and transfers abroad to finance foreign trade.

Impacts Beyond Borders

These developments have not only had an impact on the domestic front but also on the global stage. The escalating price of oil due to the expansion of conflict in the Middle East has caused a ripple effect in the international market. Analysts from Goldman Sachs predict that the price of Brent crude will reach $95 per barrel in the first quarter of 2024, with the decline in Iranian exports potentially pushing prices even higher.

In the midst of this, the US’s decision to ease sanctions on Venezuelan oil has also caused ripples in the global oil market. Energy experts predict a minimal impact on global oil markets following this decision. Venezuelan oil production is projected to grow by 200,000 barrels per day in the short term and 400,000 barrels per day by the end of summer 2024. The easing of sanctions is part of a political deal with the Venezuelan government to hold fair elections in 2024.

Global Oil Market Dynamics

These shifts in the global oil market have implications for the Kurdistan region in Iraq. Increasing Venezuelan oil production could potentially ease the global medium sour oil market, especially if exports from the Kurdistan region remain outside the market. However, the impact of potential production increases from Venezuela on global oil markets is expected to be limited and slow.

Furthermore, the easing of US sanctions on Venezuelan oil could also affect Canadian oil exports to the United States. American refineries in the Gulf of Mexico region fear that an increase in US imports of Venezuelan oil may negatively impact Canadian oil exports and lead to an increase in Canadian oil prices.

In conclusion, these shifts in the Iraqi and global oil markets, as well as the easing of sanctions on Venezuelan oil, have far-reaching implications for the profitability and competitiveness of Iraqi banks, the exchange rate between the US dollar and Iraqi dinar, and the global distribution of oil supplies.

https://bnn.network/tech/iraqs-rafidain-bank-capitalizes-on-rising-oil-prices-with-digital-dollar-sales/

The Dance of Currencies: USD-IQD Exchange Rate Stability Amid Iraqi Uncertainties, 30 OCT

The Dance of Currencies: USD-IQD Exchange Rate Stability Amid Iraqi Uncertainties

The fluctuating pulse of the forex markets in Baghdad and Erbil has recently mirrored the ebb and flow of life in a country navigating its way through political instability, economic uncertainty, and the vagaries of global market trends. The U.S. dollar (USD) and the Iraqi dinar (IQD) have danced a complex duet, their inconstant rhythm a reflection of Iraq’s multifaceted socio-economic dynamics.

A Fragile Equilibrium

In the bustling markets of Baghdad, the USD was recently traded at a rate of 161,200 IQD, dropping 100 IQD from the previous day. This subtle shift, while small, hints at the delicate balance of Iraq’s financial health. Parallel markets in the city painted a similar picture, with the USD selling at 162,250 IQD and a buying rate of 160,250 IQD.

Erbil, the capital city of the Kurdistan region, echoed this pattern. Here, the USD selling and buying rates hovered at 160,300 and 160,200 IQD respectively, a testament to the resilience of the Kurdistan Region amidst the country’s challenging political and economic landscape.

Interplay of Factors

The stability of the USD exchange rate in Baghdad and Erbil encapsulates the nuanced interplay of various factors. The closure of the stock exchanges in both cities, Al-Kifah and Al-Harithiya, is likely to have contributed to the constancy of the exchange rate, preventing any significant fluctuations.

Moreover, the steady selling and buying rates of the USD in Baghdad’s local markets suggest a balance between the supply and demand of USD. This equilibrium reflects a market that is not in a rush to buy or sell USD, a key element in maintaining stability in the exchange rate.

Signs of Confidence

The stable USD exchange rate in Baghdad and Erbil is a positive sign for the Iraqi economy. It indicates a relative market stability and a burgeoning confidence in the value of the Iraqi dinar. This assurance is vital for attracting foreign investment and fostering economic growth in the country.

But as with any dance, the dance of the forex market requires constant vigilance. Political instability, economic uncertainties, and global market trends will continue to influence the exchange rate of the USD against the IQD. Thus, it is crucial to closely monitor these fluctuations and strategize to mitigate any potential risks, thereby ensuring the Iraqi economy continues its dance of resilience and growth.

https://bnn.network/finance-nav/the-dance-of-currencies-usd-iqd-exchange-rate-stability-amid-iraqi-uncertainties/

"OIL AND GAS LAW HAS NOT REACHED PARLIAMENT YET" BY MNT GOAT, 29 OCT

 “The Great (proverbial) Knot has not yet been resolved.” Committee: Oil and gas law has not reached parliament yet

(Oh…but the Bruce’s Big Stupid Call told his listeners the other night that Iraqi citizens in the US are going to get very large sums of HCL money uner the sharing of oil revenues HCL. Really? How this going to happen as they have not even passed the Oil and Gas law better known as the HCL. Here is yet more proof he is lying and is sources are playing head games with him too. They are all idiots! ☹)

{Economic: Euphrates News} A member of the Parliamentary Oil, Gas and Natural Resources Committee, Adnan Al-Jabri, confirmed on Thursday that the oil and gas law is still included in the Council of Ministers and has not yet reached the House of Representatives to vote on it.

Since the first session of the House of Representatives, in 2005, the draft oil and gas law has been locked in drawers, with disagreements preventing its final passage.

Al-Jabri told Al-Furat News: “The oil and gas law is still included in the Council of Ministers and has not yet reached Parliament, but there are follow-ups from specialized committees formed by the Council of Ministers.”

He added: “When the law reaches parliament, it will be read a first reading, and then it will be discussed and studied by the committee to be presented for second reading.”

He pointed out that “it is not possible to talk about the transfer of the project because so far it has not reached the House of Representatives and the committees of the Council of Ministers discuss it in the presence of the provinces heading to typeset the draft law and vote on it in the Council of Ministers and then send it to Parliament.”

Iraq exports an average of 3.3 million barrels of crude oil per day, and black gold accounts for more than 90 percent of the state treasury.

(Don’t you think they need a law to govern this wealth?)

Iraq’s draft oil and gas law, which is available to parliament, stipulates that responsibility for managing the country’s oil fields should be vested in a national oil company and supervised by a specialized federal council.

Prime Minister Mohammed Shia al-Sudani said in early August that “the draft oil and gas law is one of the basic and important laws, representing a factor of strength and unity for Iraq, and it has been stuck for years, at a time when the country today is in dire need of its legislation and benefit from this natural wealth, in all fields and sectors, as well as the contribution of the legislation of the law in solving many outstanding problems.”

https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/

Iraqi Dinar Countdown to an Exchange Rate Change in Iraq | Article VIII ...

"RV UPDATE" BY WALKINGSTICK, CLARE, SAMSON & BRUCE, 29 OCT

 Walkingstick

  In the coming days a new currency will be given to the Iraqi citizens IOO...They are forewarning the Iraqi citizens of what is about to be given to them.

Clare 

  Article "In response to Al-Sadr's call, a parliamentarian announces the start of collecting signatures to close the American embassy in Baghdad"

 Samson

  Article: "Al-Shamri: Al-Sudani will announce next week a banking service that leads to the decline of the dollar"

Bruce 

  New Iraqi Dinar Rate expected to be published in Gazette Fri. or Sat. 27, 28 Oct...International Iraqi Dinar Rate expected to be very high, as is Dong...