NEW NEGOTIATIONS BETWEEN BAGHDAD AND THE REGION TO PASS THE OIL AND GAS LAW
On Sunday, the representative of the Patriotic Union of Kurdistan, Nermin Maarouf, revealed the existence of a new round of negotiations between Baghdad and Erbil to resolve the outstanding differences between the two parties and reach long-term strategic agreements.
Marouf said in an interview with the Maalouma Agency, “Ending the disputes between Baghdad and the center regarding employee salaries, as well as focusing on legislating the oil and gas law.”
She added that “the lack of consensus between the political blocs is the main reason for delaying the approval of the oil and gas law,” stressing “the necessity for the two parties to reach long-term strategic agreements through which the oil and gas law will be approved.”
She continued, “The oil and gas issue and other issues are still thorny between the two parties, and we hope to reach final agreements regarding them.”
The representative of the Kurdistan Democratic Party, Sharif Suleiman, confirmed to “Al-Ma’louma” that “the oil and gas law is still with the formed government committee for consideration,” pointing out that the Kurdistan Region submitted a law proposal to the formed committee.
IRAQ IS MOVING TO SUPPORT ITS ASSETS WITH THE CHINESE YUAN TO FINANCE IMPORTS AMOUNTING TO $12 BILLION ANNUALLY
Opening bank accounts in Indian rupees for Iraqi banks to finance trade worth $3 billion
A government source in Iraq said that officials from the Central Bank of Iraq held “intensive meetings” with American officials in Abu Dhabi in recent days to discuss external transfers to cover imports.
The source added that Iraq has strengthened its assets denominated in the yuan through the Singapore Development Bank to finance Iraqi trade and imports with China by about 12 billion dollars annually.
The source stated that the oil-exporting country also moved to strengthen its assets in UAE dirhams and is negotiating to increase its assets denominated in euros to finance trade with the European Union, according to what was reported by Iraqi news agency “Inaa.”
The source said that negotiations with the American side reached a set of decisions and mechanisms that contribute to facilitating procedures for foreign transfers related to imports through the foreign currency sales window.
He added, “It was agreed to enhance the advance balance of five Iraqi banks in their dollar accounts with Jordanian banks and transfers via JP Morgan Bank,” noting that “the problems related to the rejected transfers were resolved, and it was agreed that the rejection of transfers should be based on strong reasons.”
He co”tinued: “Ther“ were also other meetings that brought together one of the Emirati banks, the Central Bank of Iraq, and the American side, to implement the mechanism for enhancing balances in the Emirati dirham for Iraqi banks,” indicating that “things are going well in this regard, as all technical details related to the issue have been resolved, and it is expected to begin.” The mechanism for enhancing balances in UAE dirhams during the next few days.”
He stressed that “there are serious negotiations that have reached their final stages to enhance the balances of some Iraqi banks in euros with UBAF Bank to finance trade with the European Union,” noting “an increase in the number of banks whose balances are being enhanced.” In Chinese yuan through the Singapore Development Bank.”
The source also reported that bank accounts had begun to be opened in the Indian rupee for a number of Iraqi banks at the same correspondent, the Singapore Development Bank (New Delhi branch), and operations to enhance the balance of two Iraqi banks had actually been completed as a first stage, and it is expected that this mechanism will contribute In financing Iraq’s imports from India, especially medicines and foodstuffs, which are estimated at about 3 billion dollars
[via PDK] My gut agrees with my bankers. They say it could be any moment between now and Dec 1st. That is the latest from the banking side of it. I hope and pray they are right...This “Any moment” alert sure fits with what we are hearing from Iraq. The WTO, UN, banks and Reno.
I have had more banking confirmations ...saying that all we are waiting for is a “GO” and any final instructions for anything that may have changed last minute .
I talked to some banking sources…and it is overwhelming the banks saying we are at “any moment” and a number of them are saying it’s this week. The sheer number of bank sources from different banks (3 regional banks and 4 major banks) that were told to get ready for any moment this week...Whether it is this week or not - the chatter is sure great.
SUDANESE ADVISOR: THE WHITE HOUSE WILL MAKE A DECISION REGARDING IRAQ’S FUNDS IN THE FEDERAL BANK
(To summarize, this article sounds to me like Iraq wants their money out of the US banks and to allow them to use it as they please. Oh…this now sounds like a democracy, gee whiz! )
The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed on Tuesday that the White House will renew the Federal Bank’s authorization to deposit Iraq’s funds from oil exports next March, despite the fact that the Iraqi balances in the Federal Bank will be frozen.
Saleh said, in an interview with the Maalouma Agency, that “the reserves of the Central Bank of Iraq have been subject to the diversification rule since 2006, and represent the investment portfolio of the monetary authority.”
He added, “These reserves vary, according to the international standard investment guides for reserves issued by the International Monetary Fund, between various currencies such as the euro, monetary gold, the pound sterling, the Chinese yuan, and the Japanese yen, in addition to the US dollar.”
The Sud”nese financial advisor explained, “These currencies are in different proportions, and according to the weight of the foreign currency in Iraq’s foreign trade,” stressing, “There is no objection to intensifying diversification into other currencies in addition to the dollar, which essentially represents the currency of oil revenues.”
He continued his speech, saying: “Based on Security Council Resolution 1483 issued in May 2003, the principle of accumulating oil revenues in an account for oil receipts at a global bank was approved, and the Federal Reserve Bank in New York was chosen for this purpose.”
Saleh stated, “This account was used to collect Kuwait war compensation amounting to 5%, and it was taken from the revenue from the export of every single barrel of oil or any products, if any,” adding, “The oil receipts account and the reserve account in dollars are still subject to protection according to the White House presidential order.” Which is renewed annually every year in the month of May.
He stressed, “Most of the issue relates to the aforementioned UN Security Council resolution regarding the oil receipts account opened in dollars at the Federal Reserve Bank.”
During the current period, America has worked to destroy the Iraqi currency by imposing sanctions on Iraqi banks and banning the dollar under many pretexts, which in one way or another led to a severe financial crisis in the Iraqi markets.
(I told all my readers a long time ago that because they have taken so long to de-dollarize it will be hard to change the mindset and black market devices to sell the dollar and make money. So change is hard but the US govt is finally stepping in this year to make the necessary changes. We can clearly see that Iraq could not have RV’d so many times with all the stupid claims by these intel gurus. Still even now they persist it going to happen this week or next weekend. Idiots…all of them!)
ECONOMIST: IT IS NOT POSSIBLE TO MINT AN IRAQI COIN CURRENTLY, AND INFLATION IS A THOUSAND TIMES HIGH
The economic expert, Abdul Rahman Al-Sheikhli, ruled out minting an Iraqi coin at the present time due to the high inflation of the dinar by 1,000 digits.
Al-Sheikhli said: For the program {Free Speech} broadcast by Al-Furat satellite channel this evening, it was said: “The issue of importing the dollar is not new. It was approved in 2010 by a measure by the Central Bank, and the new decision came at the request of merchants to cover the needs of the local market.”
He added, “The dollar in banking offices is either legitimate or through acquisition, and cash is sold to travelers, students, and patients abroad. The reality of the situation requires the presence of another source to provide the currency, and the Central Bank has obliged the import of the dollar exclusively through airports.”
Al-Sheikhly stressed that “the central bank will not be an intermediary in importing the dollar, but rather the banks that have relations with foreign banks and rely on their stock of the dollar.”
He also stated, “The political influence is very great on the economic process, which hinders its flexibility, and the entry of the imported dollar will be a competitive factor in the Iraqi street for the black and will have a very significant impact on reducing the price of the currency.”
Al-Sheikhli pointed out, “The most important factor in the fluctuation of the dollar is supply and demand, and the rise of the dollar and oil on balance contributed to raising the currency in the local market,” adding, “The US Federal Reserve does not delay remittances, but it audits them, and international standards for money laundering and supporting terrorism delay some attempts.”
He added, “Some banks operate in unprofessional ways, which led citizens to hoard currency and the need to restore confidence between the citizen and the banking system. The Prime Minister agreed with the Minister of Commerce to import materials at the official price and sell them at a discount.”
Al-Sheikhli added, “Iraq has inflation in the dinar, which is more than 1,000 and it is not possible to print coins at the present time. The Iraqi citizen must be educated to use the Visa card in his transactions.”
While he noted that “the Ministry of Finance’s intervention in raising the price of the dollar created a major problem,” calling on the Central Bank to “use its full independence and powers to control the price of the dollar, as the Central Bank is still deficient in resolving some of the existing problems,” concluding, “The American Federal Reserve has no authority over the Central Bank of Iraq.” Rather, it issues recommendations regarding violations.
