Iraq Represents An Important Factor In The Stability Of The Global Oil Market
Economy | 05/11/2024 Mawazine News – Baghdad MP Nour Nafie Al-Jalaihawi confirmed, on Saturday, that Iraq represents an important factor in the stability of international markets in the oil and energy file.
Al-Julaihawi said, in an interview followed by Mawazine News, that “developing Iraq’s oil and gas fields is an important strategy in order to strengthen the country’s economy, diversify its revenues, and seek to raise the efficiency of its production capacity in a way that contributes to increasing exports.”
She added, "The Prime Minister's launch of the fifth supplementary licensing round and the sixth round, which will include 29 projects in fields and exploratory patches, whether oil or gas, spread across 12 governorates, is a step in the right direction that will lead to achieving three positives at the same time: increasing its ability to pump oil and produce gas and reducing the bill." Importing the latter, in addition to revitalizing neighboring regions and providing more job opportunities, not to mention supporting the governorates and financing service projects.”
She stated that "Iraq represents an important factor in stabilizing international markets in the energy file and increasing its production capacity is a step in the right direction, especially gas fields, in order to reach the stage of sufficiency." https://www.mawazin.net/Details.aspx?jimare=247775
Somebody put something out about taxation, or this this would be a taxable situation for us - it is not a taxable event...It's BS don't buy it - not a taxable event period.
We're looking for 3 green lights – military - Treasury – and Wells Fargo in that 0rder...
They got the green light from the military...we did receive confirmation that we have the Treasury's green light in the last couple of days...we did get the green light from Wells Fargo yesterday...
So in other words, we have all three green lights now covered - military - Treasury - Wells Fargo. The banks are bringing all employees in the banks up to speed on what we're about to witness and it's called Currency Training Protocols - They have been teaching to get everybody down to the teller level. Which remember the tellers didn’t know anything about this...the point is, it's really coming down to the wire.
They prefer to put their money in their homes.. When will the banking sector gain the trust of Iraqis?
The citizen prefers that keeping his cash in his home is a guarantee of its security, rather than having it in institutions that they do not trust in to house this money, which has led to the impeding the growth of the banking system in the country, while the Iraqi government is trying to attract cash liquidity by automating the citizen’s daily transactions. Through electronic payment cards and other plans to restore this trust between the citizen and the Iraqi banking system.
Banks, in turn, increased the number of their bank branches. Many private banks were opened throughout Iraq to enhance accessibility and enhance financial inclusion, while observers explained that the citizen must give these banks an opportunity to achieve economic growth in the country, while others attributed the lack of this confidence to weakness. The scarcity of banking services made them unable to attract citizens and merchants, in addition to the high interest rates on loans and advances.
Support banks
While the majority of banks in Iraq represent 90.5% (67 out of 74 banks) of the total number of banks. It is owned by the private sector and also owns the capital of the banking sector in Iraq.
Banking expert Saif Jawad Al-Halafi confirms, “One of the foundations of banking is banking comprehensiveness in diversifying the banking services provided to the public, and that the bank does not depend in making profits on a banking operation that it monopolizes as a result of the availability of external regional factors affecting Iraq’s foreign trade movement.”
Noting that, “The investor has the right to reap profits, but our banks also have the right, even if they are marred by some wrong banking behavior for a certain period, they have the right to be included with everyone in enjoying all the banking services available in the Iraqi banking arena and in foreign trade, from opening credits or transfers.” "External".
Maintaining the banking sector
Al-Halafi explains in an exclusive interview with Al-Mada that “all Iraqi banks must be supported without exception, whether they are fully owned by Iraqis or there are foreign contributions participating in Iraqi capital.” Pointing out, “There is a crowd of depositors and investors in these banks, and the government must provide all full support to all of them because one of the basics of the Iraqi national security standard, and one of the most important points, is to maintain the strength of the banking sector without being subjected to pressures or tremors that overthrow some.” Banks, because you will affect the rest of the Iraqi banks as a whole.”
Al-Halafi continues, “The journey of establishing Iraqi banks and the Baghdad stock market is an arduous journey, the journey of which began with the late Hassan al-Najafi, so we must support our banks, whether that is with constructive criticism or correction.” Stating, “What is sad is that the Iraqi banking sector is older than all neighboring countries, and for this reason we never allow our banks to let us down because they are our security and the future of Iraqi foreign trade, and they have the right to contribute to all banking and economic activities without exception, especially in the upcoming Al-Faw port project.” And also the path of development.
risk
While most Iraqis avoid crediting their assets to traditional commercial banks because of their doubts and the political differences that arise from time to time, in addition to the fact that there are those who have religious reservations.
The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, stated that “the vision of the government curriculum is moving towards implementation with consistent steps, all of which lead towards successive reform applications and according to a systematic and comprehensive structure that addresses the details of the national economy and according to the priorities drawn up from the beginning.” Pointing out, “It is known that the contribution of government sectors to the country’s gross domestic product is about 63%, as the Iraqi economy is the fourth economy in the world in terms of the government sector’s dominance in generating gross domestic product.”
Saleh added in an interview with Al Mada, “Economic reform inevitably begins with the government economy, which has the greatest contribution to the growth of the country’s national income.” Noting that, “With a closer look, the reform priorities started today from the government finance sector, and we mean government banking activity, which currently dominates 85% of banking operations in the country, but operates with capital or ownership rights that constitute only 22% of the total banking capital.” In the country, which made it restricted in the development of general economic activity and the development of the market economy, and since finance is an activity that precedes real productive activity in terms of importance and logic, Prime Minister Muhammad Shiaa Al-Sudani adopted a scientific and practical approach by moving towards reforming the government commercial banking system.
Achieving financial inclusion
The lack of experience, lack of services, and lack of banking culture led to a collective alienation from the entire banking sector, which hindered the development of this important system in the country.
As Saleh returns to update (Al-Mada), that “to begin with, one of the largest international companies specialized in reform studies and financial, accounting and administrative auditing was commissioned to prepare an accurate assessment of the reality of government banks in order to achieve comprehensive reform processes for the government banking system itself, and at the forefront of that is Generating a government commercial bank that directs directly towards the market economy and financing trade and investment, achieving financial inclusion, enhancing the levels of credit granted to the market, and introducing advanced technologies, financial applications and payment systems into this new banking system that will work on broad foundations of banking governance, compliance and driving growth and development rates. Sustainable economic growth, in addition to adopting the necessary legal applications to enhance property rights and raise their capital to record levels in accordance with the principles of banking (Bazal) that are applied globally.”
He added, "Also, providing mechanisms for its openness and integration with the global banking market. It is no secret that the other and important aspect of government banking reform will undoubtedly lead to the birth of banking specialized in government financial operations, exercising exclusively banking functions related to government operations, and at the same time helping in the development of treasury account mechanisms." The unified TSA is the account that gives public finance the real-time ability to know the country’s government cash flows with high efficiency.”
He concludes his speech by saying, “The reform processes will also include, in the stages of their work, specialized banks such as the Industrial, Agricultural, and Real Estate Bank, as they will operate in the future as a development bank, in which property rights will be strengthened by making them a profitable and strong public shareholding company that contributes to financing private investments in economic development through grants.” Flexibility and adequacy in granting credit for productive investment operations, with a view consistent with the targeted growth rates in gross domestic product, which is indicated today by the National Development Plan 2024-2028, and future national development plans.”
It is noteworthy that Iraq includes 72 registered banks, including 38 banks participating in the auction for selling American currency at the Central Bank. However, the US sanctions that recently affected 14 banks, and other banks that were subject to similar sanctions months ago, led to the number of banks participating in the The currency auction is now being sold by only 18 banks. link
To date Iraq still has the majority of their working force dependent on the state. Diversifying their economy, creating a private sector, private businesses, engaging with the world, exporting products are all good things that would support the growth of their currency.
It...is preposterous to think that you're going to walk into a bank and exchange Iraqi dinar for US cash. It is a fact that most Emerging Market countries are very volatile, banks by nature are very conservative. Not happening...Market makers, ECNs or established financial institutions would make more sense to manage incremental gains.
It is critical to understand that if the Central Bank of Iraq plans to end the auctions by the end of the year there must be a new mechanism in place or there would be no method to maintain stability of the dinar. So for the central bank to announce that they plan to end the auctions they are in essence announcing, that they plan to float the dinar. Floating the dinar provides the new tools for the central bank to maintain stability. Therefore, this announcement to end the auctions confirms (despite what some may say), Iraq will float their currency.
Article: "
Al-Rayes: The path of development is the first gateway to sustainable economic advancement" If and when the Iraqi dinar begins to float supply and demand based on Iraq's economic success will take over. Only with the success and growth of Iraq's own economy can the dinar go up in value. How fast and the pace are determined by those factors.
Article: "The most difficult option.. Warnings of the danger of floating the Iraqi dinar without achieving an important condition” As I have mentioned numerous times, a float is coming for the Iraqi dinar. The question is.. when will they have sufficient diversification of the economy to support such an event?
A country's currency is not some random act. An exchange rate is based on many factors including: reserves, GDP, economic growth etc. Iraq has a long ways to go and must pass laws to encourage investment. Only with the success of Iraq's economy can the dinar rise in value.
[aka Kaperoni]
Article: "Advisor to the Association of Banks: The Central Bank is following a consistent approach to achieving banking reform"
Quote: "the management of the Central Bank of Iraq plans to gradually cancel the window for selling foreign currency during the year 2024, until it leaves it completely." ...this is huge news... Iraq cannot end the auctions unless they have an alternative to the auctions... which means they plan to float the dinar by the end of the year...floating the dinar will give them a new mechanism to maintain the dinar, the CBI will buy and sell blocks of dinar like other central banks do to maintain their currency...
They will also have to use dinar to pay for goods and services which will make the dinar internationally traded...they want the banks and Iraq to establish relationships around the world with International standards and full compliance which means that means IMF Article XIV...This seems pretty clear and excellent news. We very well see that Iraqi dinar float on the global market at the end of this year or early next year...I think it's very promising...it definitely is very good news.
Iraq requests end of UN assistance mission by end-2025
BAGHDAD (Reuters) –
Iraq has requested that a United Nations assistance mission set up after the 2003 U.S.-led invasion of the country end its work by the end of 2025, saying it was no longer needed because Iraq had made significant progress towards stability.
The mission, headquartered in Baghdad's heavily fortified Green Zone, was set up with a wide mandate to help develop Iraqi institutions, support political dialogue and elections, and promote human rights.
Prime Minister Mohammed Shia al-Sudani said Iraq wanted to deepen cooperation with other U.N. organisations but there was no longer a need for the political work of the U.N. assistance mission, known as UNAMI.
The mission's head in Iraq often shuttles between top political, judicial and security officials in work that supporters see as important to preventing and resolving conflicts but critics have often described as interference.
"Iraq has managed to take important steps in many fields, especially those that fall under UNAMI's mandate," Sudani said in a letter to U.N. Secretary-General Antonio Guterres.
Iraq's government has since 2023 moved to end several international missions, including the U.S.-led coalition created in 2014 to fight Islamic State and the U.N.'s mission established to help promote accountability for the jihadist group's crimes.
Iraqi officials say the country has come a long way from the sectarian bloodletting after the U.S.-led invasion and Islamic State's attempt to establish a caliphate, and that it no longer needs so much international help.
Some critics worry about the stability of the young democracy, given recurring conflict and the presence of many heavily armed military-political groups that have often battled on the streets, the last time in 2022.
Some diplomats and U.N. officials also worry about human rights and accountability in a country that frequently ranks among the world's most corrupt and where activists say freedom of expression has been curtailed in recent years.
Iraq's government says it is working to fight corruption and denies there is less room for free expression.
Somalia's government also requested the termination of a U.N. political mission this week. In a letter to the Security Council, the country's foreign minister called for the departure of the Nations Assistance Mission in Somalia (UNSOM), which has advised the government on peace-building, security reforms and democracy for over a decade. He provided no reason.