International community should play role in protecting Kurdistan Region security, says PM Barzani
ERBIL (Kurdistan24) – The international community should play an important role in protecting the security of the Kurdistan Region and its constitutional rights, Prime Minister Masrour Barzani told the Norwegian ambassador.
The remarks by Prime Minister Barzani came as he received Espen Lindbæck, the Norwegian Ambassador to Iraq and Jordan, in Erbil on Wednesday.
Barzani and Lindbæck discussed the bilateral ties and the latest developments in Iraq and the region.
The premier expressed his appreciation for Norwegian solidarity and support, stressing the international community should play an important role in protecting the Kurdistan Region’s security and guaranteeing its constitutional rights.
Norway-Kurdistan Region relations have been characterized by strong economic cooperation and political support. With Norway's significant investments in the Kurdistan Region's oil and gas sector, both regions have benefited from mutually beneficial trade partnerships.
Furthermore, Norway has been a vocal advocate for the Kurdistan Region's political aspirations, providing diplomatic support and fostering dialogue between the region and the international community.
The Norwegian oil company DNO on Dec. 19, 2023, said it had increased production from its licensed Tawke field in the Kurdistan Region, with its current December average approaching 90,000 barrels of oil per day (bopd).
Article: "THE FINANCE COMMITTEE RESPONDS TO THE US SANCTIONS: LET US SELL OIL IN
CURRENCIES OTHER THAN THE DOLLAR" Quote: "Imposing sanctions on Iraqi banks would undermine and obstruct the steps taken by the Central Bank to adjust the stability of the dollar exchange rate and reduce the selling gap between the official and parallel rates." ...the TRUTH finally comes out. This is what is causing the inability of the CBI to take the necessary steps to adjust the stability of the dollar exchange rate? ...if they the CBI did this diversification it would adjust the parallel market rate very quickly and then…..
Hang on there is also some good news….
The Central Bank of Iraq decided just recently to restore the mechanism for financing Iraq’s foreign trade, starting next March. This is all part of slowly phasing out the electronic platform as they said they would do as 2024 rolls on. The Central Bank said in a letter addressed to the banks, which Al-Iqtisad News reviewed, that for the purpose of organizing financing operations for requests to enhance external balances, it was decided to implement the new requirements and mechanisms starting from March 1, 2024.
He added that banks wishing to enhance their balance with correspondent banks in all currencies should appoint an external auditor for the purposes of reviewing transfers in advance of the process of sending transfers. Banks wishing to enhance the balance must provide us with information about the names of the companies they wish to contract with within a maximum period of February 29, 2024. So, basically what the CBI wants is to know where the money is going and for the banks to certify it, by auditing.
Iraq's shift from dollar-denominated oil sales raises economic and political concerns
Shafaq News/ Iraq, a major player in the global oil market, is contemplating a bold move: abandoning its 20-year practice of selling oil exclusively in dollars.
Fueled by concerns over US sanctions and a desire for diversification, this decision has ignited a heated debate, raising hopes and fears for the nation's economic and political future.
Iraq's oil revenues are currently deposited in the American bank accounts of JP Morgan and Citibank, with payments received in dollars through the US Treasury Department.
The Iraqi Parliamentary Finance Committee has recently suggested a shift away from the "dominance of the dollar" to diversify the commission basket and counteract US sanctions on Iraqi banks.
The commission basket reflects Iraq's diversification of the currencies it accepts for oil sales beyond its current reliance on the US dollar.
The committee rejected what it deems "arbitrary decisions impacting citizens' livelihoods" and called on the government and the Central Bank of Iraq to swiftly diversify foreign currency reserves.
However, this proposed move is met with caution due to potential economic and political repercussions.
Economic expert Abdul Rahman Al-Sheikhli stressed to Shafaq News Agency the 2004 protocol signed between Iraq and the US binds Baghdad to sell its oil solely in dollars, noting that canceling this protocol would provide Iraq the flexibility to sell oil in different currencies, especially following recent agreements with the Federal Reserve to diversify the commission basket.
Bassem Al-Gharibawi, a Parliamentary Oil and Gas Committee member, acknowledged Iraq's right to sell its oil in any currency but recognized the need to liberate itself from existing restrictions, which may necessitate US approval.
In this regard, economic researcher Omar Al-Halbousi expressed concern over the potential economic consequences, describing the Finance Committee's proposal as a potential "suicide" for Iraq's economy.
In an interview with Shafaq News, Al-Halbousi warned of risks associated with deviating from the "petrodollar agreement," including potential "US embargoes, loss of immunity for Iraqi funds, and exclusion from global financial systems."
The petrodollar system, established through agreements with oil-producing nations, ensures that oil transactions are conducted in US dollars, reinforcing the currency's dominance in international trade.
The economic researcher viewed the situation as a "declaration of war on the global financial system led by the United States."
He deemed this form of economic challenge more dangerous than direct military targeting, emphasizing that the United States' strength lies in its influence over the global financial system, particularly through the petrodollar agreement.
On the other hand, Nabil Al-Marsoumi, another economic expert, cautioned against the proposed shift, highlighting the global significance of oil pricing in dollars. He warned of potential "violent American reactions, as abandoning the dollar is considered an American red line."
Al-Marsoumi explained that oil pricing in dollars "extends beyond standard crude oils such as Brent and West Texas Intermediate," this practice is "not solely tied to these crude oils but is a result of the extensive global oil trade." This trade involves exchanging a substantial volume of paper barrels, surpassing actual physical transactions. Significant speculative activity occurs on major stock exchanges, particularly the New York Stock Exchange and the London Stock Exchange.
The economic expert pointed out that the New York Stock Exchange handles approximately three billion contracts annually, with an average value of 1,000 trillion dollars, contributing to the dollar's dominance in oil pricing.
In addition, Al-Marsoumi said that the threat to the dollar's global position, which currently represents 60% of global monetary reserves, potentially undermines the economic importance of the United States at the worldwide level.
Before 2003, Iraq sold oil in various currencies, including the Iraqi dinar and the euro. However, sanctions and political instability disrupted these arrangements.
Following the 2003 US invasion, Washington and its allies established a provisional government that adopted the US dollar as the official currency for oil sales. This decision aimed to stabilize the war-torn economy and align with existing financial infrastructure.
Ultimately, as Iraq contemplates its oil sales currency, the nation balances on the precipice of a decision that will not only shape its economic future but could reverberate across the global financial stage.
The journey towards autonomy carries risks but is also laden with the promise of newfound economic freedom and resilience.
Iraq gains various advantages by considering a shift away from the petrodollar system. Firstly, such a move could reduce vulnerability to potential US sanctions, as reliance on the dollar exposes Iraq to geopolitical risks that may hinder access to the global financial system.
Secondly, economic diversification becomes possible by breaking away from exclusive dollar-denominated oil sales, allowing Iraq to explore new trade opportunities and benefit from fluctuations in different currencies.
Lastly, transitioning from the petrodollar system could give Iraq greater control over its oil revenue, offering increased autonomy and flexibility in managing its financial resources for strategic economic development.
However, these potential benefits have significant risks and uncertainties warrant careful consideration, therefore, the next steps will be crucial, and the world watches as diplomatic negotiations unfold, determining the feasibility and associated risks of this potential economic paradigm shift.
The Central Bank of Iraq is done with the constant meetings to get the monetary reform education out because the campaign was started and its doing very well.
All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. All the things that Aki [Iraqi bank friend] had to do in order to qualify to exchange the 3-zero notes into American dollars is done. International platforms that were needed in order to do electronic transfers is done...
[Iraqi Bank Friend Aki update] This is the monetary reform roadmap for the next couple of weeks...January 29th a banking campaign was started to release deeper education about the monetary reform to the Iraqi citizens ...
Either Thursday or Friday the Minister of Planning, Minister of Finance, the Governor of the Central Bank of Iraq and the Prime Minister Sudani are all going to be receiving the flow down of information regarding the new currency that is to be released and the new exchange rate for that new currency...Also...the Erbil Stock Exchange (ESX) and The Iraqi Stock Exchange (ISX) have completed their linkup...of international platforms. They are done and going live at any moment.
Iraqi and Saudi MoFA discuss regional security after attack on US military site
Shafaq News / Deputy Prime Minister and Iraqi Foreign Minister Fuad Hussein conducted a phone call with his Saudi counterpart, Faisal bin Farhan Al Saud, on Thursday.
According to a statement from the Ministry's media office, the two sides discussed "the recent attack on a US military site in Jordan and its repercussions. They also examined various possible scenarios related to the security and military situation in the region."
Hussein emphasized "the necessity of continued communication and coordination between Baghdad and Riyadh to avert the danger of regional conflict and protect the security of both countries."
Furthermore, on Sunday, January 27, the US Army announced the killing of three of its soldiers and the injury of around 25 others in a drone attack targeting a base hosting US forces in Jordan.
US media outlets reported that the targeted site was "Tower 22", a small military installation in Jordan near the country's border with Syria.
Notably, on Wednesday, the White House accused the "Islamic Resistance in Iraq" of being behind the attack.
