It is not available in other countries.. What do you know about Iraq’s sulfur reserves?, 17 DEC
The Committee on Economy, Industry and Trade in the House of Representatives revealed that Iraq possesses a strategic reserve of sulfur estimated at 350 million tons. The committee’s rapporteur, Yasser Al-Husseini, said that Iraq has a strategic reserve of raw materials that are not available in other countries, such as sulfur, phosphate, and silica, and that it is almost the first to have them, noting that these minerals can be benefited from to be the country’s second resource after oil, by investing them in a real way with solid companies specialized in this. The matter, according to the official Al-Sabah newspaper.
He pointed out that government resources must be in purely national hands, and therefore the contracts in the Ministry of Industry and the Border Ports Authority, which are an important resource for the country, must be reviewed, indicating that investment projects were limiting the state’s resources and not enhancing them in a real way.
Al-Husseini stressed that the government must pay attention to the issue of migration from the countryside to the city and pay attention to the agricultural sector by benefiting from every drop of water from the time it enters Iraq until it reaches the root, warning of a demographic change that will cost the government more than the amounts it currently provides to care for the reality of the villages and countryside, explaining Supporting agriculture will cast a shadow over the stability of the local market and reduce imports in hard currency from countries, in addition to reducing unemployment.
Iraq also confirmed last year, 2022, that the sedimentary sulfur reserve in the Mishraq fields south of the city of Mosul (north of the country) is the first in the world and exceeds 400 million tons.
Iraq has completed all of their banking competencies required by the CBI in Iraq to meet International Banking Standards. And tomorrow, they are expected to finish their banking reforms with their managers per a recent article.
Fri. 15 Dec: Iraq has completed all of their banking competencies required of the CBI in Iraq to meet International Banking Standards.And tomorrowSat. 16 Dec, they are expected to finish their banking reforms with their managers per a recent article. At this time, they will have two weeks to do logistics training with their employees to prepare them for working with International Exchange going forward and only using the Iraqi Dinar locally.
Iraq has signed a number of agreements around the world to begin trading beyond their borders, and they have exchanged currencies with several countries to enable them to move forward with exports and imports. The article below is a confirmation regarding a completion of a year-long set of economic reforms. It celebrates the work that they have done to achieve International standing in the banking system. … Goldilocks
Definitely looks like reform is well on its way with the banking system. Let's hope this continues. It looks like there's a lot of agreements that the US will hold their word and make sure that Iraq gets the money that they need for 2024...They definitely need to get Article 140 out of the way. That's a big hesitation between Kurdistan and Iraq. That's also a big part of their tension between the two. Iraq is looking good. Still moving forward. That's what we want to see especially since the stuff they're working on is going to help them do business internationally.
Question: "Does this electric payment system have anything to do with the Iraqi dinar exchange rate?" Installing it is not going to make the exchange rate change but, what it does do is it will influence the exchange rate. There's a huge difference...How it does that is...if people all have an ATM card...then there's an increase in transactions...that will help influence the exchange rate. But just installing the payment system has nothing to do with the exchange rate...the exchange rate is not going to change because they put it in.
Question: "Can Iraq get into the World Trade Organization with the currency exchange rate of 1310 to 1 US dollar?" One of the key requirements for joining the WTO is establishing a convertible currency at a "realistic exchange rate"...the exchange rate of 1310 to 1 USD raises concerns about the convertibility and stability of Iraq's currency ...
There is no specific threshold for what constitutes a "realistic" exchange rate...It has to be a stable currency which means...Iraq must have a stable economy...When 95% of your budget is totally relied on oil sales that is not a stable economy. Iraq is going to have to build their private and public sectors...Can Iraq go into the World Trade Organization with an exchange rate of 1310 dinar? Yes...if the dinar is stable.
Al-Harith Hassan, an employee in the oil sector in the city of Basra in southern Iraq, has been unable for months to withdraw his full salary in dollars from the bank, after the authorities imposed new restrictions that complicate the use of hard currencies, in their effort to control a black market for exchange rates.
These measures are considered a paradox in an oil-rich country, which has huge reserves in US dollars, exceeding one hundred billion.
However, the emergence of a parallel exchange market, and the authorities imposing restrictions within the framework of strengthening banking supervision in compliance with international rules imposed by Washington, complicated the daily life of the population.
The official exchange rate is 1,320 dinars to one dollar, but at money changers, the price of one dollar is equal to 1,500 dinars and may reach 1,600.
Currency exchange offices have become very cautious with customers, after the arrest of dozens of money changers accused of manipulating prices.
37-year-old Hassan says: “For 3 months or more, there has been great difficulty in obtaining dollars from banks.”
The salary of this employee supervising logistics operations in an oil field in southern Iraq is approximately $2,500 per month.
He explained: “In the past months, we would go to the bank to withdraw our salary. They would give us very small amounts in the form of payments, due to the illiquidity of the dollar.”
Hassan explains that recently, the general trend among banks has been to give salaries in dinars and according to the official exchange rate. But he considers this “a problem, because the official exchange rate differs from the parallel market price by 20 percent,” meaning that “the salary will be reduced.” Of its real value.
The Central Bank of Iraq announced in a statement that, as of January, it had decided to “limit all commercial and other transactions to the Iraqi dinar instead of the dollar.” in the country.
“Monetary Sovereignty” While the dollar can be withdrawn in cash from previously existing deposits in hard currency naturally, starting in 2024, it will become necessary to withdraw every money transfer from abroad in dinars exclusively, and according to the official exchange rate.
The Prime Minister’s Advisor for Financial Affairs, Mazhar Saleh, confirms that “this is the rule that is part of monetary sovereignty, but there are exceptions,” which especially include embassies.
He adds: “We strengthen what is called monetary sovereignty… It is not possible to deal with two currencies within the national economy.”
However, these restrictions raise controversy and hinder the daily life of Iraqis, according to Agence France-Presse.
Iraq is moving towards implementing the principle of monetary sovereignty.. What does this mean? Monetary policy in Iraq still faces many challenges, especially in light of the presence of an irregular exchange market run by networks that manipulate the prices of the dollar against the dinar, according to local media reports. Direct transfers outside banks have become impossible in dollars, and are limited to dinars at the official rate.
The banking sector in Iraq has adopted an electronic platform, the aim of which is to monitor the uses of the dollar and tighten control over a thriving informal economy, while tax evasion attracts some importers and traders.
The Prime Minister, Muhammad Shiaa Al-Sudani, acknowledged that with the new measures, the cash supply in hard currency available in the market decreased from “200 to 300 million dollars.” per day to “30, 40 and 50 million dollars.”
Haider Al-Shakri, from the Chatham House Research Center, explains that “one of the main reasons” In order to enhance demand for the currency in the parallel market, “the smuggling of the dollar towards countries and entities subject to sanctions, especially Iran and Syria.”
In September, Shiaa Al-Sudani said that merchants who deal with Iran are forced to turn to the parallel market to obtain currency, given that Iran is a country “that has sanctions and is not allowed to conduct financial transfers.”
At the same time, he confirmed that the central banks in Iraq and Iran are discussing a “mechanism” In order to “regulate trade”, it would “break the back of the parallel market”.
“Illegal trade” Al-Shakri also points out the existence of “illegal trade.” For some products subject to “high taxes”, such as cigarettes.
In late November, the government announced facilities to encourage importers of cigarettes, cars, gold, and mobile phones to obtain foreign currency through official channels.
As for bilateral exchanges, the authorities encourage banks and importers to use currencies other than the dollar, such as the euro, the UAE dirham, or the Chinese yuan.
US State Department spokesman Matthew Miller said that the timing of renewing the exemption issued by the United States to Iraq regarding the transfer of ten billion dollars to Iran to pay electricity revenues imported from Iran is linked to the expiration of the previous exemption. The Prime Minister’s advisor, Mazhar Salih, defends the banking restrictions that aim to “verify these transfers,” with the aim of reassuring “the international financial community, and also for reasons related to Iraqi society: Do these transfers actually go to finance Iraq’s trade?”
He adds: “What is happening has nothing to do with the strength of the Iraqi economy. Iraq today is at the highest levels of foreign reserves in its financial history.” Rather, “structural changes have occurred in issues of dealing with foreign currency.”
He also notes that in order to protect the country with a population of 43 million people from inflation, importers have access to the dollar and buy it at the official rate, which is more beneficial.
This concerns especially foodstuffs, medicines and building materials. Saleh believes that this “creates an atmosphere of stability, which is contrary to the parallel market.”
On the other hand, Iraqis can withdraw money in dollars before they travel. But this created a new problem, as the authorities at the airport stopped many travelers in possession of debit cards, which were used to withdraw thousands of dollars from abroad at the official rate, and then sold them again at the black market price inside Iraq.
We had some problems with the embassy recently...They put the army out from the 12th, a couple days back, through the 20th. So you kind of go, wow. They're really focusing in on the 20th. Again, they are telling us a story. Whether that is an indicator or not it's going to be determined. Don't think that we're telling you it's going down on the 20th because that's not what we said and that's not what I'm telling you. But it's fascinating stuff...
Romanowski [US Ambassador to Iraq] had her G7 meeting...She's taken photo op with the G7 supporting the reforms of Iraq. That's powerful stuff.
Article quote: "...during the coming year the Iraq economic contact group will further cooperation to support the development of the economic and financial sector in Iraq including prime minister Al-Sudani's policies to enhance the value of the dinar...This is a clear announcement of the new policies regarding the dinar during the transitional period..." That's a drop the mic you guys. Phenomenal...In other words if you're going to enhance the value of the dinar something is going to change.
Article "STATEMENT OF THE IRAQ ECONOMIC CONTACT GROUP OF THE G7, EUROPEAN UNION AND WORLD BANK" This is the road map they have been using to show the world their intentions.
They have every intention to see Iraq succeed and get back into the international arena and into her rightful place in the international financial system! We can see by the evidence over the last few months that support they are getting down to the wire...
Iraq is presenting that they're going international and they have been talking about it for a long period of time.
They've actually doing it for a long period of time and they're coming to fruition to where they've publicly told us they were going to start spending money and that could be as soon as around the 20th. Then you have the end of the year dinar only. They have the taxation in dinar on the same time frame. These little bits and pieces they feed us, their time frames, we put it together...and we'll see how they roll out in the coming days. It's a phenomenal process...
The dollar is going away between now and the 20th for commercial purposes. It will not be used as of the same data for taxation in the country... Will they still be able to buy dollars to travel. ..? Yes. Will they be able to use the dollar for transactions in country for commercial purposes?Answer, No. Will they be able to use any other currency other than the dinar for commercial purposes within the country as of January 1, 2024? ...the answer is no... Standby for this to get really exciting because everything we're seeing is telling me that we've never been here before...
Article: "Samsung: Iraq represents the most prominent market in the Middle East" The Iraqi markets are going to explode. Samsung is going to be there all along the way. They will not be alone be sure. Having an early start is a big deal...Iraq's private sector is going to be on fire.
Al Sudani has established a "Unique private sector development council..." ...Giving credibility to the private sector is getting ready to explode. It's going to be phenomenal.
If the Finance Minister needs to work to the end of the year to make sure that everything's sorted and ready to go and do it right and do it properly so the Iraqi citizens get what they deserve which is purchasing power.I think it's a phenomenal situation. I think everybody can clearly see...they're doing it and it's coming to fruition...