Iraq seeks to increase oil production by up to 6 million barrels per day and resume Kurdistan exports
Shafaq News/ Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani confirmed on Wednesday that the ministry is working to strengthen projects to sustain and increase oil production, and implement the requirements of the five-year plan to reach a production rate of 6 million barrels per day.
This came in a speech while chairing the leadership meeting for operations within the ministry.
In the refinery sector, the minister said: We have achieved a significant increase in production, and we plan to reach self-sufficiency and stop imports. The coming period will witness the completion of a number of promising projects that achieve our goals.
He added, “We have succeeded in promoting associated gas investment projects, and the past period has witnessed an increase in the quantities of gas invested from oil fields, and this year will witness the addition of (200) mqmq from invested fields within the work tasks of the Basra Gas Company, in addition to promising increases from the fields of the two Maysan oil companies.” Dhi Qar.
Abdul Ghani went on to say: We are working to resume the export of crude oil through the northern port, to enhance financial revenues to support the state treasury, in reference to the Kurdistan Region.
He continued by saying that the Ministry achieved an increase in financial revenues over planned in 2023, and we hope to achieve more during the new year.
Article: "Selling an Iraqi currency dating back to the era of “King Ghazi” for 100 thousand pounds sterling" Quote: "A very rare Iraqi currency dating back to the royal era was sold in the country, today, Monday, at a fantastic price of 100,000 pounds sterling, or approximately 187 million Iraqi dinars."
Article: "Expectations that the decline in dollar prices will bring benefits to the Iraqi individual " Quote: "In order to reduce the price of the dollar in the local market, the Central Bank of Iraq specified, yesterday, Sunday, the entities covered by receiving their external transfers in cash in the dollar currency, starting from January 2, 2024."
Article: "A financial expert points out the reasons for the continuous decline in the dollar exchange rate" Quote: "On Monday, financial expert Nabil Al-Ali attributed the continued decline in the exchange rate of the US dollar towards the Iraqi dinar to...the change in the attitudes of merchants and public opinion through their conviction of the strength and status of the dinar...The dollar exchange rates against the Iraqi dinar will continue to decline, thus touching the official rate specified by the Central Bank."
Article: "The Iraqi Dinar Overthrows The Dollar And Wins The Struggle To Control The Regular Market” Quote “The US Treasury continues its cooperation with the Central Bank of Iraq,as many Iraqi banks have now formed relationships with international banks for the first time.”
Article: " CBI Governor: Int'l welcome to the Iraqi banking sector’s commitment to compliance rules " Quote: " For the first time, Iraq is witnessing the reorganization of the external transfer process through correspondent banks, instead of the Central Bank or the Federal Bank being the executive interface for this process.”
Article: "CBI Governor: Int'l welcome to the Iraqi banking sector’s commitment to compliance rules" Quote: "For the first time, Iraq is witnessing the reorganization of the external transfer process through correspondent banks, instead of the Central Bank or the Federal Bank being the executive interface for this process.”
“Immature decision”… Iran questions the possibility of Iraq implementing foreign currency restrictions
Shafaq News/ Member of the Board of Directors of the Joint Iranian-Iraqi Chamber of Commerce, Shaaban Foroutan, said on Tuesday that the Baghdad government’s decision to restrict the buying and selling of foreign currency in the country, and the restrictions that have been put in place, are immature and impractical.
Shaaban Fortoun said in a statement reported by Fars News Agency, and translated by Shafaq News Agency, regarding the approval of the new Iraqi government law regarding restrictions on the purchase and sale of currency in this country, this law is not considered a mature decision by Iraq because the political, governmental and administrative system in this country The country cannot limit the buying and selling of currency in this way.
He added: Of course, Iran may also face some problems in the export process at the beginning of implementing this law, but this problem can be solved with an appropriate solution, and it is not impossible.
Froten added, “There is no doubt that, given the governmental and administrative system in Iraq, solutions will soon be found for currency conversion because Iraqis do not have a great desire to use the banking system due to their tribal and ethnic beliefs and lifestyle.”
He referred to the good diplomacy of the (Iranian) government and the Central Bank, and said: Given the performance of the 13 (Iranian) government, we have always seen positive international and diplomatic movements and consultations by the Central Bank, and this time we can rely on this potential. The (Iranian) Central Bank has so far taken valuable measures in discussing facilitating currency exchanges with countries in the region, which I believe can provide a suitable platform for currency relations by engaging in this issue.”
Fortin saw the Iraqi government’s new law as “immature and ill-considered,” and said: “While we are witnessing such an immature decision by the Iraqis, we must send our experienced and capable employees in the Ministry of Foreign Affairs and the Central Bank, to this country in the form of a delegation,” So they can reduce restrictions and interact with the neighboring country.
He continued, of course, Iranian representatives have always shown that they have great strength in the field of diplomacy and can facilitate the export process to Iraq this time as well.
The Central Bank of Iraq specified the entities covered by receiving its external transfers in cash in the US dollar, as of January 2, 2024, and this included:
– All diplomatic missions, organizations and international agencies operating in Iraq.
– Non-governmental civil society organizations registered in the General Secretariat of the Council of Ministers, in the event that the foreign donor party stipulates that the amounts of incoming foreign transfers be paid in the dollar currency inside Iraq.
– Government contracts in effect in the US dollar, and ongoing contracts for grants, loans, and foreign agreements.
– 40% of the remittances received by Iraqi exporters resulting from their exports abroad.
The Central Bank of Iraq, according to a statement, stresses the implementation of the decisions of the Council of Ministers to prevent internal transactions in foreign currency and to enhance confidence in the Iraqi dinar.
Question: "When you say, managed float, if it hits Forex tonight and comes out let's call it $0.22...if that thing shot up to $1.00 in 24 hours are they going to try to restrict it?" There has to be more growth. You would de-stabilize the economy. They're just now getting on their feet. The last thing you want to do is drop some huge exchange rate in their laps because it affects all businesses...there's a lot more involved. I'm not saying it's not going to go up in value. Obviously...I believe that it's gonna go up in value but I'm not a person that supports...we're gonna get a $3.22 rate.
Question: "What's the difference between a dirty float and a managed float?" You have a fixed rate like we have now... where they come out and say you get 1320 dinar for a dollar, fixed.
Then you have two types of floats...Free Float - that means a market determines the value no ifs, ands, or buts. The market determines the value. That's a free float. A managed float is the same as a dirty float. That means the Central Bank of Iraq will watch what happens in the free market, like Forex, but if it goes too far in one direction...then they intervene. They'll do something to control the exchange rate to keep it from getting out of whack.
The US Embassy in Baghdad announced on Wednesday that Iraqis are among the lowest countries in the region in possessing bank accounts, urging them to possess these accounts.
The embassy stated in a publication, a copy of which was seen by NRT Arabic, entitled, “Did you know that less than a quarter of all Iraqi adults have an official bank account for the year 2021?”
She explained, “Modern banking services contribute to increasing foreign investment, providing loans to Iraqis, and protecting them from financial crimes, theft, and loss,” noting, “Informal money transfer services harm the local economy.”
The embassy continued, “According to the World Bank, in 2021, the percentage of Iraqis over the age of 15 who owned an account in a financial institution was only 18.57%. This represents one of the lowest rates in the Middle East and North Africa region, which averages about 53%.” .
She said, “Iraq’s reliance on cash and informal money transfer services is harmful to the economy because it reduces the opportunities for financial regulation necessary to convince prestigious international companies to operate in Iraq.”
The embassy added, “Over the past two years, the United States government has worked with Iraq to restore confidence in the banking sector and reform transfer mechanisms related to imports financed by Iraqi banks. The new reforms encourage the correct registration of companies and increase the use of official banking outlets.”
She explained, “According to the Central Bank of Iraq, the total deposits in Iraqi commercial banks have increased in the past two years by approximately 37%, and from 2021 to 2022, the total number of accounts in Iraqi banks has increased by 31%.”