In the document.. The Iraqi Central Bank specifies the conditions for importing foreign exchange from abroad
On Wednesday, the Central Bank of Iraq announced the requirements for importing foreign currency into the country.
The Central Bank has notified all licensed banks, outlining the following obligations that must be met.
1 – The funds will be utilized to fulfill requests from registered companies, organizations, and individuals working for foreign entities who receive mobile phones from outside Iraq.
2- Submit a request to the Banking Control Department of the Central Bank of Iraq, including the quantity to be entered from the shipment details.
3-Funds can only be entered through airports.
4- It is necessary to register the serial numbers of the shipments and provide the Banking Control Department with the data of their recipients at a later time.
5- To meet customer requests, the Central Bank requires the name of the foreign shipping company and a copy of the license granted to it in its country. The Central Bank has confirmed that it continues to provide foreign currency in compliance with the relevant instructions and controls.
[via PDK] I am still getting Friday night through Sunday morning from nearly all of my contacts…. I am being told that Iraq on Friday is expected to join the World Trade Organization and that they have a fully international currency. This means a lot needs to happen in the next 24-36 hours. We are going to watch it closely.
[via PDK] Comment: [Guru] Nader said IQD is going international in a couple of days! MarkZ: That is huge and I continue to get the same from my Iraqi sources as well.
I’m told to expect it Friday – if not before…with an announcement coming out of Iraq . We’ll see. Just stay calm. IMO if they are telling us an exact date- It’s probably not accurate. It could be before or after…but they are going to cloud the timing.
I know a number of group leaders have been traveling for this thing…but, they are not giving me any specifics. They have been cracked down on what they can say and NDA’s. They have been leaned on hard to not leak the timing of this event. To me this means timing is “sooner” rather than “later”.
Iraq-Kurdistan Oil Export Talks: Implications and Prospects
A Tug of War: Oil and Geopolitics in the Kurdistan Region
The ongoing discussions between the Iraqi government and oil companies operating in the Kurdistan Region regarding the resumption of halted oil exports have significant implications for the oil industry, regional politics, and global markets. The halting of oil exports via the Iraq-Turkey pipeline since March, due to an arbitration court ruling in favor of Baghdad against Ankara, has resulted in significant disruptions. The Kurdistan Region’s Association of the Petroleum Industry (APIKUR), representing international oil and gas companies, has proposed selling their entitlement oil to the federal government to facilitate a rapid restart of oil exports. The discussions, held in Dubai, emphasized the urgent need to resume full oil production and exports under mutually acceptable terms.
Implications: Ripple Effects on the Oil Industry and Beyond
The discussions hold significant implications for the oil industry in the Kurdistan Region and Iraq as a whole. The proposal to sell entitlement oil to the federal government indicates a willingness to find a mutually beneficial solution. However, the prolonged disruption in oil exports has not only impacted the region’s economy but has also strained relations between the Kurdistan Regional Government (KRG) and the federal government in Baghdad. The involvement of international oil and gas companies adds a layer of complexity to the negotiations and reflects the broader geopolitical interests at stake.
Global Market Impact: A Balancing Act
The halt in oil exports, cutting off approximately 500,000 barrels a day of supply from Iraq’s north to global markets, has had reverberating effects on global oil supply and prices. The potential resumption of exports through the Iraq-Turkey pipeline would not only alleviate the supply shortage but also impact global oil prices. The discussions have implications for international oil and gas companies operating in the region, as their production and export capabilities have been directly affected by the pipeline closure.
Challenges: A Maze of Complexities
The discussions between the Iraqi government and APIKUR represent a critical juncture in the efforts to resolve the impasse. The intricate dynamics between the KRG and the federal government, coupled with the involvement of international stakeholders, contribute to the complexities of reaching a mutually acceptable resolution. Moreover, the broader regional and geopolitical factors add layers of intricacy to the negotiations.
Geopolitical Considerations: An Intricate Tapestry
The discussions between the Iraqi government and APIKUR also carry geopolitical significance. The resolution of the impasse would not only impact regional dynamics but also reflect the broader geopolitical alignments and interests in the Middle East. The involvement of Turkey in the arbitration ruling and the subsequent halt in oil exports adds a geopolitical dimension to the negotiations, as the interests of multiple regional actors intersect with economic and strategic considerations.
In conclusion, the discussions represent a pivotal moment with multifaceted implications. The resumption of oil exports through the Iraq-Turkey pipeline has the potential to address supply shortages, stabilize global oil markets, and contribute to regional economic stability. However, the complexities, challenges, and geopolitical considerations underscore the intricacy of the negotiations and the significance of their outcomes. As the discussions continue, the global oil industry and regional dynamics remain poised for potential shifts based on the resolution of the impasse.
Says
— Many times we have been made to believe that this is our week, well friends, be on the lookout for any day that ends in Y.
— I'm getting global notices to expect our release notifications in a day or two.
Surge in US Dollar Exchange Rates: Implications for Iraq’s Economic Landscape
Exchange rates for the U.S. dollar have seen a significant surge in Baghdad and Erbil, the capital of Kurdistan, according to Shafaq News agency. The opening of al-Kifah and Al-Harithiya stock exchanges witnessed the dollar prices rise to 164,750 Iraqi dinars for 100 dollars, a substantial increase from the previous day’s rate of 163,300 dinars for 100 dollars.
Implications of the Dollar Surge
The uptick in dollar prices has implications for various sectors and has kindled discussions on inflation, foreign currency exchange, and the economic landscape in Iraq and the Middle East. The increase at the stock exchanges and local currency exchange shops signifies a noteworthy shift in the foreign exchange market. The Central Bank of Iraq (CBI) conducted an auction for buying and selling the US dollar, revealing a substantial increase in foreign transfers compared to cash sales. The auction saw an 86% surge in foreign transfers, reaching a total of $197 million, illustrating the growing demand for foreign currency in the region.
Inflation Rates and Economic Stability
Despite the exchange rate fluctuations, the CBI reported a decrease in inflation rates in Iraq, maintaining that the inflation rates are within acceptable limits compared to neighboring countries. The fall in inflation rates from 4.4% to 3.7% between August 2022 and August 2023 sheds light on the economic stability and monetary policies in Iraq.
The Oil and Gas Sector
The foreign currency exchange and inflation trends are closely linked to the broader economic landscape, including the oil and gas sector. DNO ASA, a Norwegian oil and gas operator, reported significant developments in its operations, particularly in Kurdistan. The company’s third-quarter revenue and production figures indicate the evolving dynamics of the oil industry in the region. The closure and subsequent reopening of the Iraq-Turkey Pipeline, coupled with the recovery of accumulated debt, demonstrate the complex interplay between geopolitical factors and commercial operations in the oil and gas sector.
The Geopolitical Landscape
The geopolitical landscape adds another layer of complexity. The heightened security concerns, as evidenced by the sirens warning of a possible attack at the U.S. embassy in Baghdad, underscore the geopolitical risks that can impact economic activities in the region. The geopolitical tensions and their potential impact on foreign investments and economic stability are crucial elements to consider within the broader economic analysis of Iraq and the Middle East.
In light of these developments, it is evident that the fluctuations in exchange rates, coupled with the dynamics of the oil and gas sector and geopolitical considerations, collectively shape the economic landscape of Iraq. A comprehensive understanding of these interconnected factors is essential for stakeholders to make informed decisions and navigate the complexities of doing business in Iraq and the broader Middle East region.
FIREFLY: Oil and Gas law by the 9th…or have to wait…Without the Oil and Gas no rate until 2024.
FRANK: You say, without the HCL you will not have an exchange rate until January 1st? I can agree with you to a certain point… IMO Between now and January 1 you will see what you want…They already gave you a clue – The dollar will stop on January 1st…
[Community Member Bank Story]
I believe banking experiences are driven by the individual location and especially the training level of the bankers. I mentioned my investment to a baker at Chase yesterday, and she immediately dug out a “Private Client” business card, different than the one on her desk. She said “When that happens, call me.”
