Federal Reserve, Gaza Conflict, and Iraqi Dinar: A Global Interplay, 12 NOV

 Federal Reserve, Gaza Conflict, and Iraqi Dinar: A Global Interplay

The Federal Reserve Bank of America’s decision to distribute dollars to 10 Iraqi banks comes amidst a complex backdrop of bond yields, international conflicts, and currency dynamics. As the Iraqi Federal High Court prepares to make three landmark decisions, including the transfer of 700 billion dinars to the displaced people of the Kurdistan region, the multifaceted nature of these developments underscores the intricate interconnections of global finance, geopolitics, and currency management.

Federal Reserve and Bond Yields: Balancing Act

The Federal Reserve’s delicate dance with bond yields, particularly the 10-year Treasury note, has significant implications for borrowing costs and consequently, economic activity. The swift rise in long-term US Treasury yields has stirred investor concerns but also eased pressure on the Fed, allowing for a more measured approach to rate hikes. This nuanced interplay between the Federal Reserve’s monetary policy, market reactions, and broader economic landscape is a testament to the bank’s efforts to communicate its intentions clearly while adapting to market dynamics.

Impact of Gaza Conflict on Iraq: A Delicate Equilibrium

The Israel-Hamas conflict has cast long shadows on Iraq’s security and political situation. The involvement of Shiite armed groups, the presence of American forces, the ensuing rocket and drone attacks on U.S. bases, and potential retaliatory attacks all contribute to a fragile security situation in Iraq. In this geopolitical quagmire, Iraq’s efforts to maintain a neutral stance and advocate for diplomatic resolutions to regional conflicts are critical for its security and economic stability.

Exchange Rate Dynamics: The Iraqi Dinar

The exchange rate for the Iraqi Dinar against the United States Dollar offers a snapshot of the challenges posed by global currency volatility. The importance of exchange rate stability and reliable money transfer mechanisms for international transactions are highlighted, especially in the context of fluctuating global currencies. The decision to distribute dollars to Iraqi banks by the US Federal Reserve is a significant move in this regard, potentially stabilizing the dinar and facilitating smoother international transactions.

Overall, these developments underscore the need for astute policy measures, diplomatic acumen, and a nuanced understanding of global economic and political landscapes to navigate the complex and interrelated domains of finance, geopolitics, and currency management.

https://bnn.network/world/iraq/federal-reserve-gaza-conflict-and-iraqi-dinar-a-global-interplay/

Reinstatement = $3.22-$4.25💣IQD International!?🤔Iraq Dinar RV Updates | ...

"RV UPDATE" BY BRUCE, 12 NOV

Bruce 

  [via WiserNow]   ...first of all regarding Iraq, very early in the morning...Friday...the ATM machines which have been loaded with lower denomination dinar...meaning  being 5 / 10 / 20 /50 / 100’s - sort of like we would have 20s in our ATMs. 

I don't know how many different denominations they have...those are activated early this morning for the first time – that’s new...So the lower denomination dinar are in the ATMs and were utilized... 

 ...we heard that redemption centers had two conference calls... to go over the final details, last minute touches...Before we go...they did say that this came off the calls, that we should have our notifications delivered to us by email tomorrow late morning...

Oil minister says talks in Kurdistan will discuss production costs as pipeline deal with Turkey is sealed, 12 NOV

Oil minister says talks in Kurdistan will discuss production costs as pipeline deal with Turkey is sealed

Shafaq News/ Iraq has agreed with Turkey to resume oil shipments via Ceyhan port, and talks are underway to address production cost issues, Federal Oil Minister Hayyan Abdul-Ghani told reporters in Erbil in a joint press conference with Kamal Mohammad Saleh, the Kurdistan region's minister of natural resources, on Sunday.

Accompanied by a high-level government delegation, Abdul-Ghani arrived in the region this morning for a three-day visit for talks with Kurdish officials on the years-long dispute over who should control the region's oil.

"The visit aims to converge views on oil production and exportation from the Kurdistan region," he said. "in our meetings with the Ministry of Natural Resources, we will discuss all the necessary measures to facilitate them."

"We are committed to resuming oil shipments from the region and will spare no effort to address the production costs with the international companies operating there," he continued. 

The minister assured that Iraq and Turkey have reached an agreement to put the oil pipeline that delivers Iraqi oil to the Ceyhan port back into service.

Turkey halted flows through Iraq's northern oil export route after an arbitration ruling in March by the International Chamber of Commerce (ICC) ordered Ankara to pay Baghdad damages for unauthorized exports between 2014 and 2018. 

Turkey says the pipeline is prepared for shipments to begin, but the Iraqi side insists it has not received official notification from Turkey on whether the pipeline is ready.

For his part, the region's minister of natural resources said that the meetings in Erbil will also discuss transportation costs. 

"The federal budget has set the production costs at six dollars a barrel. However, this rate is incompatible with the contracts we signed with oil operators in the region. We hope we will be able to address this issue during this visit," he said. 

Late in October, Iraq's Prime Minister Mohammed Shia al-Sudani said that foreign oil companies operating in the Kurdish region informed his government that if an agreement is reached on oil production costs and contracts, they will resume oil production within a month.

"Foreign companies operating in the Kurdistan region believe that the production costs determined by the Iraqi side are low and not commensurate with the production costs from the region’s fields," he said.

Turkey's closure of the Iraq-Turkey pipeline in March has collectively cost Iraq, Kurdistan's Regional Government (KRG), and oil producers a total of $7 billion in lost export revenues, the Association of the Petroleum Industry of Kurdistan (APIKUR) has previously said. 

On Thursday, APIKUR announced they will not produce oil for pipeline exports until the issue of overdue payments estimated at nearly $1 billion is resolved.

The accumulated KRG debt to DNO, one of the operating companies, stood in excess of $300 million for oil sales between 2023 and 2024, according to the company itself. 

Other APIKUR members are Genel Energy, Gulf Keystone Petroleum, Shamaran Petroleum, HKN Energy Ltd, and Hunt Oil. Collectively, they produce about 50% of the oil in Kurdistan.

https://shafaq.com/en/Kurdistan/Oil-minister-says-talks-in-Kurdistan-will-discuss-production-costs-as-pipeline-deal-with-Turkey-is-sealed

Iraq signs agreement with ExxonMobil for exit from West Qurna 1 field, PetroChina to take over, 12 NOV

Iraq signs agreement with ExxonMobil for exit from West Qurna 1 field, PetroChina to take over

Shafaq News/ The Iraqi Ministry of Oil confirmed on Saturday the finalization of a settlement agreement with ExxonMobil, paving the way for the American energy giant's departure from the West Qurna 1 oil field. Simultaneously, the ministry announced that Chinese company PetroChina would assume the field's leading operator role.

Hassan Muhammad, deputy Basra Oil Co. manager in charge of oilfields and licensing rounds affairs, revealed that the settlement agreement underwent scrutiny by the Ministry of Oil and the Basra Oil Company. It was determined that PetroChina would become the primary operator of the West Qurna 1 field. As a result, the Chinese company will now hold the largest share in the field after ExxonMobil's departure.

ExxonMobil, which previously owned a 22.7% stake in the West Qurna 1 oil field with a capacity of 550,000 barrels per day, has now concluded a "sale agreement" to transfer its share to the state-run Basra Oil Company. 

The sale agreement encompasses financial matters, and a commitment has been made to address the tax issue associated with ExxonMobil's share in additional negotiations.

Regarding the unresolved tax matter, the Iraqi official stated that two options are under consideration: reaching a settlement agreement on the tax or resorting to arbitration.

Notably, the preceding year, the state-owned oil and gas firm Pertamina acquired 10% of ExxonMobil's share in the West Qurna 1 oil field, increasing its stake to 20%. Concurrently, the Basra Oil Company purchased 22.7% of the field's share.

According to officials from the Basra Oil Company, with ExxonMobil's exit from West Qurna 1, the company will no longer have a presence in the Iraqi energy sector.

https://shafaq.com/en/Economy/Iraq-signs-agreement-with-ExxonMobil-for-exit-from-West-Qurna-1-field-PetroChina-to-take-over

Dinar RV Breaking News🔥CBI & US Enhance Iraq Banks Balances in Global Cu...

"RV UPDATE" BY CLARE, 12 NOV

 Clare

  Article:  "Intensive Iraqi-American meetings in the Emirates result in important decisions regarding external transfers of the dollar”  

Quote: "The official Iraqi News Agency quoted a government source as saying that intensive meetings took place during the past few days in Abu Dhabi between a delegation from the Central Bank of Iraq and the American side responsible for foreign transfer operations to cover imports, indicating that the negotiations culminated in a number of decisions and mechanisms that contribute to facilitating procedures. Regarding external transfers related to imports through the foreign currency sales window."

Article: " Central Bank: Inflation rates in Iraq are low and their percentage is acceptable compared to countries in the region"

Article:  "Economist: It is not possible to mint an Iraqi coin currently, and inflation is a thousand times high ”

Article:  "Misdemeanor Integrity Court: Iraq has come a long way to get off the money laundering blacklist"