[via PDK] Question: Since Sudani has to go to US on April 15th does that mean nothing will happen on the RV until then or after? MarkZ: Many believe he could be coming to the US after the RV for his “victory lap”.
[via PDK] I am getting back and forth news from groups. Some say it’s happening now and some say May…. They are really bouncing back and forth.
COMMENT: Sudani is supposed to be in the US on April 15th.
MARKZ: Personally I think Sudani may be here for a “victory lap” after we have already started doing out exchange.
Question: Do we have the green light yet Mark? MarkZ: I think we have the green light. I am looking forward to what the next few days bring.
Bank story: One of our members had a friend go to a bank in N. Carolina yesterday. They had a conversation with a branch manager. They talked about an hour on life, currencies, expectations etc.
The Bank manager said they are absolutely prepared for this. He said he knew a lot of banks were avoiding it but they were preparing for it. He said “We don’t know the timing but it could be at any moment” So they were having a very long conversation with a banker that was clued in, plugged in and prepared..
America is confused about the fields shared between Iraq and Iran... huge, uncontrollable oil flows
March 28, 2024
Baghdad/Al-Masala Al-Hadath: Economist Simon Watkins said in a report published by the American Oil Price website that many unofficial flows emerged from increases in the oil fields shared between Iran and Iraq, so that it makes sense for the two countries to work to raise these increases significantly.
There are many fields shared between the two countries, the most prominent of which are Azadegan (on the Iranian side) / Majnoon (on the Iraqi side), Azar (Iran) / Badra (Iraq), Yadavoran (Iran) / Sinbad (Iraq), and Naft Shahr (Iran) / Naft Khana. (Iraq), Dehlran (Iran)/Abu Ghurab (Iraq), Baydar Gharb (Iran)/Fakka Field (Iraq), and Arvand (Iran)/South Abu Ghurab (Iraq).The new development initiative between Iran and Iraq will include assigning local companies, most of which are linked to the Iranian Revolutionary Guard or factions allied with Iran in Iraq, and their mission is to increase the return on oil extraction from the smaller joint fields, while Russian and Chinese companies will take the lead in the larger fields.
The idea of limiting local companies to smaller fields is to allow them to develop their oil extraction techniques (with help from Russia and China) so that they can guarantee the average recovery rates of 3.5 percent they have achieved at their designated sites.
A well-known Western oil company laid out plans before sanctions were reimposed on Iran in 2018. It aimed to increase recovery rates in a group of these smaller fields to more than 12.5 percent within 12 months of starting them (from the then average of 2.5 percent). 20 percent after a year, then to about 50 percent within three years.
The Iranian Ministry of Oil hoped that increasing the technical capabilities of local companies would enable them to increasingly participate in the development of larger fields, enabling Tehran to reduce the discount on oil sold to China as part of comprehensive field development packages signed with its companies.
This includes larger fields as well, where the financial potential for even relatively small increases in the rate of oil extraction is enormous.
The combined oil-rich fields in the West Karun region, which includes the North Azadegan, South Azadegan, North Yaran, South Yaran and South Yadavaran fields, for example, contain at least 67 billion barrels of oil and enjoy an average recovery rate that currently stands at only 5 percent.
This is compared to the average recovery rate across the Kingdom of Saudi Arabia, which is at least 50 percent.
An Iranian source told Oil Price: “The recoverable reserves figure increases by 670 million barrels, or about $34 billion in revenue for every 1 percent increase in the average recovery rate across West Karon, even if we were only going to sell at $50 a barrel.”
“Raising the recovery rate to 25 percent across West Karun over a 20-year contract period, thanks to sound joint development, is expected to add $838 billion in revenue to Iran.”
He stressed that the average West Karon oil production today is about 360,000 barrels per day, and sometimes reaches 380,000 barrels per day, while it did not exceed 120,000 barrels per day during 2017.
The main part of the “Comprehensive Cooperation Agreement between Iran and China for 25 years” was for Chinese companies to raise collective production from the West Karun fields by no less than 500 thousand barrels per day.
This is not difficult, as the average lifting cost remains between one and two dollars per barrel of crude oil in Iran itself and in Saudi Arabia and Iraq. But Chinese companies have not yet achieved any meaningful increases, which may be another reason for Iran and Iraq's desire to increase their capabilities to exploit their vast oil resources.
The fields shared between Iran and Iraq have also been invaluable to Tehran's successful efforts to avoid oil sanctions from the United States or Europe for years. Oil is often being explored on the non-sanctioned Iraqi side of the border across the border from the same oil reservoirs as oil exploration continues on the sanctioned Iranian side. This sometimes happens even through extended drilling.
Even if the Americans, Europeans, or any of their most trusted appointees put people at every platform across every common field in Iraq, they would not be able to know whether the oil extracted is from the Iraqi side or from the Iranian side.
Thanks to sound joint development, raising the recovery rate to 25 percent across West Karun over a 20-year contract period is expected to add $838 billion in revenue to Iran.
This made it possible for Iranian oil to be exported to Iraq and shipped to anywhere in the world it was needed for decades.
Further layers of complexity were added to further obscure the true origin of the exported oil. Simple but effective methods include turning off the transponder used by the ship's automatic identification systems, making it difficult to track. link
Why in the world would anybody want to invest into Iraq if they were going to put their money into Iraq and then they were going to lose? Because if you invest your money in Iraq and they LOP their currency you're not going to make any money, it's a neutral event.
Article quote: "Minister of Finance ...will launch funding for the government tomorrow Sunday...explained the value of salaries amounts to 69 trillion dinars.
" 69 trillion is over half what they've ever printed. It doesn't make any sense. How do you have a 228 trillion budget when you don't ever have that much money?
The Iraqi dinar is not a scam. It's a real currency. It's a real country. It's a real government...It's going to be a real component to the international financial world...
The 15th of April, I'll tell you this, most likely what...Sudani, Alaq, all those folks in the Ministerial Council of Economics, they're working their tails off to make sure to make sure they're ready, if not done, well before Al-Sudani shows. Because if he's coming to town and he wants bargaining chips and I'm pretty sure a real effect exchange rate is going to be one of those bargaining chips.
Information” opens the files for installing lecturers, the exchange rate, and automation in the 2024 budget
An accelerated movement led by the Parliamentary Finance Committee in order to find objective solutions to many of the problems facing the economy and money in Iraq by pushing the government’s programs for implementation in light of the challenges imposed by the oil markets, which constitute an important criterion in determining the volume of money flowing to the country’s treasury, not to mention the rights of multiple segments awaiting resolution. In the 2024 budget.
The Information Agency interviewed Mudar Al-Karawi, a member of the Parliamentary Finance Committee, to find out the most prominent developments in the economic file in the country and its challenges during 2024.
Q/ When will the 2024 budget schedules reach Parliament and are there any important changes?
A/ We expect the 2024 budget schedules to arrive next week after they are completed by the government committee, after which they will be discussed by the committee, but it is too early to talk about its provisions in detail, but the Ministry of Finance is awaiting approval of the schedules in order to launch financing for all governorate projects according to the instructions.
Q/ Where has the automation file reached in state institutions?
A/ There is remarkable progress in applying automation, especially in the tax and customs departments, not to mention the rest of the other services, because it is a path that will reduce the routine of administrative procedures and close 50% of the doors to corruption, in addition to being an effort to develop non-oil revenues for the Iraqi treasury.
Q/ The 2020 lecturer file in education, will it be decided in the 2024 budget tables?
A/ The Parliamentary Finance Committee gives importance to this file, and we officially asked the Ministry of Finance to include their appointments within the Ministry of Education’s 2024 allocations, and we are awaiting the schedules in order to deal with them according to the procedures.
Q/ Will the exchange rate in the parallel market witness a greater decline in 2024?
C/ The Central Bank and financial measures contributed to stopping the fever of the exchange rate rise in the parallel market and even controlling it at high rates and the gradual decline that occurred, even if it was slow over the last five months, but it was the beginning of pushing it to be close to the exchange rate specified by the Central Bank of Iraq, i.e. The decline will continue
Q: Was the amount of money allocated to provincial projects in 2023 limited?
Q/ It was not limited, but rather it was at a high rate compared to previous years, especially since the total amount allocated amounts to more than 10 trillion dinars, and it covers more than 5 thousand projects in the governorates, but reaching the actual completion requires some time, especially with the procedures and time period to complete the stages. .
Q/ What is Iraq’s 2024 strategy to confront its financial challenges?
A/ Iraq is still facing a real challenge represented by its dependence on the sale of oil as a primary resource for its treasury at a rate approaching 90% in light of price fluctuations that put the economy in a difficult situation from time to time. Therefore, there is a general trend in maximizing non-oil treasury revenues and establishing a culture of partnership between the two sectors. Public and private, to crystallize a long series of investments that create job opportunities and provide indicators of activity according to the principle of service in exchange for interest.”
Q/ What are the most prominent challenges of investments in Iraq?
A/ For years, the security factor has been the most prominent challenge to investment and attracting capital, but the situation is currently different with stability and control of the security forces, but the marketing factor remains, creating flexibility in procedures, reassuring investors, and diversifying job opportunities are challenges that must be paid attention to, in addition to the necessity of ending any indicators of corruption that are trying to approach the file. Investing and seeking to reduce procedures in a way that contributes to attracting more money, especially since internal investment rates increased by 35% in the past 16 months.”
Q/ Is Iraq continuing to diversify currency baskets?
C/ A current reality imposed by international conditions on the importance of diversifying the basket of currencies in order to secure import needs from multiple origins and not to limit dealing to one or two currencies. Also, pushing the Iraqi reserve to the principle of diversification is very important, and it is a context that most countries in the world have begun to adopt in recent years. link
The CBI of Iraq showed us two articles from the CBI that they are not exceeding their cash credit amounts in loans giving out to people and companies. These loans provide liquidity for extra capital to help their banking system run more smoothly and profitably going forward.
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In talking with our CBI banking contact, their inflation has come down and the country is working within normal ranges of a growing economy. All of this is being done without a change in their exchange rate so far.
If you look on the cbi.iq, you will notice that they still have no changes to their currency rates. One of the things that our CBI contact does discuss often is the price of gold. This is very important to all the countries because the second half of the year is when interest rates are expected to be lowered by the US.
This is already taking place among other countries, but the US is still waiting to see if our inflation numbers will level off some. This does not look to be the case, and this is why a new decentralized system utilizing tokenized assets is becoming necessary.
As the United States lags behind in lowering interest rates while other countries have moved ahead, this will give some of the new local currencies being traded around the world a time to gain some momentum in trade and strength.
By tokenizing all of our assets on the market, the part of that asset tokenized by gold will deflate the current inflated values we are presently experiencing on the market.
Once our tokenized assets are regulated at the end of May, we will be able to shift our attention towards a new digital payment system and a new digital asset based economy.
At that time, you can look for our Global Markets to move into real values. What will appear to be a crash is going to be a movement into real values going forward.
From that moment forward, the new cash credit for our banking system which includes Iraqi Dinar will be based on the authentic movement of gold no longer held down by a World Reserve Asset.