The Kurdistan Regional Government of Iraq on Wednesday discussed steps to resume the region’s oil export, while noting that it is continuing talks with the federal government to resume exports as soon as possible.
The regional government said in a statement received by (the fourth), that “Prime Minister Masrour Barzani chaired a meeting of the Kurdistan Regional Government Council of Ministers in the presence of Deputy Prime Minister Qubad Talabani, to discuss steps to resume the export of the region’s oil.”
She added, “A delegation from the Kurdistan Regional Government and oil companies is scheduled to visit Baghdad early next week at the invitation of the Iraqi Ministry of Oil to discuss and develop a solution mechanism to remove all obstacles to the resumption of oil exports.”
Comment: It looks like the Iraqi budget needs to be published in the Gazette before it becomes legal. If they are waiting on that it may be Wed or Sat …or it becomes legal 15 days from yesterday? MarkZ: Exactly...At this point we are expecting it to be published in the Gazette [Wednesday] or Saturday... There is a mechanism to RV in the budget. And I have a ministry contact in Iraq who still thinks we will see a new rate with the budget. Whether that is Wed. or Sat…we will see... This contact works in the government in Iraq.
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Question: ...is it true the Budget has nothing to do with the rate. It’s dependent on oil
?
MarkZ: Yes and no…in the budget they left a mechanism for a revaluation based on rates and oil production. ….They can do the budget without the rate change- does it make sense to do that? NO….because they have been running over a 30% deficit each year.
I have been unable to find a complete copy of Iraq’s budget that was passed to look for a rate. I do not think the new rate is in the budget that was passed …yet. They have the mechanism for changing the rate in there though. So they can do that rate change at anytime...They are still showing the official rate of 1310….
It happened like this in Kuwait also…that although they had started the RV process. Kuwait was still showing the official rate for awhile.
Comment: Maybe they are waiting to put the new rate in the Gazette- either Wed or Sat?
Prime Minister Muhammad Shiaa Al-Sudani confirmed today, Wednesday, that the government has set a vision that will be reflected in the form of measures in the financing aspect and facilitating borrowing from banks.
Al-Sudani’s office said in a statement received by “Mail”, that “Prime Minister Muhammad Shia’ al-Sudani opened the work of the second specialized workshop to support the private industrial construction sector, during which a cooperation agreement was signed between the Trade Bank of Iraq (TBI ) and the German Export Credit Corporation, to finance the sector’s projects.” The private development sector, within the government’s sovereign guarantees initiative, and a letter of authorization was signed to finance the project to establish a plate glass factory in the Najaf Governorate in the amount of 110 million euros, between the Iraqi Trade Bank and the German banks (Commars Bank) and (Aka Bank).
She added that the Sudanese “reviewed an exhibition that included the private industrial sector’s products of construction materials, praising the efforts made to provide them.”
Al-Sudani stressed, according to the statement, during his speech that “the main goal of this workshop is to emphasize the need for construction industries,” pointing to “government support for the industrial sector, and removing the problems and obstacles that obstruct this vital sector, which represents a fundamental engine of the economy, and helps in addressing the problem.” Unemployment by providing job opportunities.
He noted that “supporting the Ministry of Industry and industrialists and all the decisions required by the Council of Ministers are on their way to implementation,” stressing that “8 projects are on their way to implementation in light of the provision of sovereign guarantees to support the private sector.”
He pointed to “the important package issued by the Council of Ministers yesterday, which included measures related to supporting the industrial sector, including those related to providing land for the construction of projects, and providing the necessary fuel for operation,” stressing that “the government has put in place measures to improve the business environment, expand electronic payment and collection, and improve Tax accounting procedures and automation of customs procedures.
Al-Sudani explained, “This package was completed through discussion with the relevant departments as it was discussed in the Council of Ministers, and greater powers were granted to the competent departments in the Ministry of Industry to overcome any red tape or delay, and he directed that a periodic report be presented to monitor procedures in the event of obstruction or diligence.”
The statement added, “In appreciation of the Prime Minister’s position in support of industrialists, which resulted in the package of decisions taken by the Council of Ministers yesterday, the Federation of Industries decided that June 4 would be National Industry Day.”
The following are the most important things that were stated in the Prime Minister’s speech during the opening of the workshop:
Sovereign guarantees provided financial support from German, Italian and Japanese financial institutions, amounting to $200 million.
There are understandings with the French side amounting to 1 billion euros, for the construction of industrial projects within the private sector.
Networking steps and implementing the ASYCUDA system are an important step in automating customs and facilitating the entry of goods.
Tax accounting procedures witnessed a jump due to the facilities provided.
We are on the verge of a qualitative shift in company registration procedures through electronic procedures.
We have defined a vision that will be reflected in the form of measures on the financing side and facilitating borrowing from banks.
We are studying the reform of the Industrial Bank to be an effective tool in implementing plans and programs that drive industrial development.
These agreements are an important indicator of external contributions to the Iraqi economy, specifically in the industrial sector.
We are engaged in the housing and construction sector in general, and this requires extensive construction materials.
The available factories for various construction materials cover only a quarter of the need according to the projects that will be undertaken, especially residential city projects.
This month I believe is going to be a critical month for us investors... Article: "CENTRAL BANK: THE ISSUANCE OF NEW MONETARY DENOMINATIONS WILL NOT AFFECT THE DINAR EXCHANGE RATE”
I would consider this “WOW!” news. Quote: "... the issuance of new cash denominations, large or small, will not affect the dinar exchange rate."
If the CBI drops the zeros (project to delete the zeros) the rate of the dinar will remain the same in-country of Iraq.
It only changes when the reinstatement back to FOREX occurs...the value is already in the dinar... only the rate, right now, does not reflect the true rate... Why...on May 27th did the CBI make this announcement about the issuance of newer lower denominations?
Could they be heading into June for the redenomination of the three zero notes?
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Article quote: “The budget is not affected by the rise or decline in dollar exchange rates, because Iraq will receive the dollar from the export of oil, and on the contrary, revenues increase as dollar prices increase globally,”The rate of the dollar to the dinar will NEVER be in the budget...NOT GOINGTO HAPPEN! ...The budget is dependent on the price of oil.
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"The head of the Iraqi Private Banks Association, Wadih Al-Handal, confirmed...the effort to open more prospects for work with correspondent banks, while indicating that the joint committee with the American side regarding the banking sector will begin its work next week." Folks this is all positive news and exactly what we should expect to see at this point in time. Yes, it is now all about the Banking Reforms. This is what is going to get the dinar to officially pass the dollar. We already know the value is greater and so now we just need to go through the motions to get it recognized to its true value.
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Q & A
Question from Suki:
Hi Mtn Goat, I was wondering this as well. If I remember correctly mid year, June, was also a feasible option. But you did mention January. I am trying to stay grounded, but my Wings are flapping as fast as the news is in Iraq. If policies continue to move as fast as they are, Do you think we still have to wait another 6 months since January is the best time for them to make a fiscal change? ----Thank you
Question from ashleypikes:
Thank you MG for a very exciting report today, yes the train is moving rapidly. As you mentioned we have moved into the second stage of financial an monetary reform. My question to you today is just how many more stages of reform are needed. It seems something is always added to the list in Iraq. You said not years to complete, however that is still a long time an since your contact has not given any timeframe which is proper conduct,, do we have to Wait till Biden is out or God forbid re-elected. Have you changed your tune in that scenario , thank you an blessings on you. We continue to wait ..
Answer Mnt Goat:
Guten tag Suki and ashleypikes. Seem both of these questions evolve around the timing of the RV. I will answer both now. As I have said a thousand times if not a million times in the last decade of my Newsletter – DO NOT DWELL ON THE TIMING. What good does this do for you? No one and not even the CBI knows the timing ,,,,get it? There is no such thing as delays it is all in your head. When the time is right Iraq will reinstate. There are other events that must proceed FOREX and I have reviewed these also many times. Don’t you get it by now?
Instead pay attention to the events as the reinstatement is a “byproduct” of the Financial Reforms more specifically Banking Reforms now underway. Did you reference the information I sent you on the Pillars of Financial Reform? Did you go read the White Paper? If you did then why are you asking me questions now on the timing of the RV? I do not in my heart believe that Biden will allow this event to occur.His administration may surprise us. we have had many surprises along this journey. It’s what you don’t know or what you think you know that will haunt you later.
Will we have to wait until January? It is a possibility, but I believe we may see it way before then. Oh… but you say the election is not until November and so Biden will still be around. Read between the lines folks,,, will you! I am saying he might not be around by then…get it? Why in hell do I spend all this time presenting the prophets and what God has to say about all this? Some say the U.S. has already signed off on it and we heard this a hundred times over too. Its all nonsense by nonsensical idiots trying to guess the RV timing. That is all it is. Get it? I am not going go there. If this is what you want then there are many idiot intel gurus out there that you can follow.
I wanted to share an interesting conversation I had...with my CBI contact this past Wednesday...I was told that the committee to work on the Project to Delete the Zeros has sent the CBI prepared articles to the news media for the sake of educating the citizens on the upcoming process. However, they are dated and so they are for the near future and not for current news. Yes, they are getting ready and moving ahead.
...we read three articles about the CBI official rate equaling the Parallel or Black market rate in the coming days. WOW!...Saleh, the prime minister’s financial advisor, then goes on to say this will make one dinar equal to one dollar in Iraq. WOW! ...I was told by my CBI contact months ago to watch for right before the CBI makes one more “official” rate change closer to 1000 from 1320. If you take 1000...and delete the three zeros 1000 what do you have?
Of course, you have a situation of 1 dinar equals 1 dollar...But I believe that when they CBI does make this next official rate change it will move closer to 1166 and not 1000 which would make 1 dinar = 1.16 dollars just over a dollar to help the banks retrieve these dollars hoarded outside of the banks... Let’s sit tight and watch this play out.
Samir Al-Nusairi, the Central Bank announced that it will launch the national lending strategy on 5/25/2024, which is a clear announcement of the beginning of the second phase of its banking reform strategy...CBI announces it has completed the first phase of it by...building solid international banking relationships with international banks and correspondent banks. Get ready….
The UN, IMF and World Bank all on one day, Thursday, noted significant progress that Iraq has made in recent years, despite ongoing challenges. The reinstatement spigot has been opened. The direction is now clear.
So, in today’s news we read multiple articles coming out from the CBI and the Iraqi news telling us about yet more “WOW!” news...much of this news is confirming what my CBI contact told me recently so my trust level of my contact increases too. ...In today’s news the CBI is telling us they are moving into the “second phase of banking reforms” ...WOW! WOW! WOW! ...Folks this RV train is moving along rapidly now. It is right in our faces now what they are doing. No more guessing or hoping. The reinstatement spigot is now wide open! ...The reinstatement is coming...Folks, it is now EXPLODING!
So, in today’s news we read multiple articles coming out from the CBI and the Iraqi news telling us about yet more “WOW!” news...much of this news is confirming what my CBI contact told me recently so my trust level of my contact increases too. ...
In today’s news the CBI is telling us they are moving into the “second phase of banking reforms” ...WOW! WOW! WOW! ...Folks this RV train is moving along rapidly now. It is right in our faces now what they are doing. No more guessing or hoping. The reinstatement spigot is now wide open!...The reinstatement is coming...Folks, it is now EXPLODING!
Folks just remember I am telling you that Iraq already has a value to the dinar way above the 1/6 of a penny. They do not have to develop the private sector to raise the dinar, the economy or...export more products...
The Council of Ministers of the Kurdistan Regional Government discussed today, Wednesday, the latest developments related to the issue of resuming the process of exporting the region’s oil.
A statement by the regional government, a copy of which was received by Al-Furat News, was conveyed that Prime Minister Masrour Barzani spoke during the meeting and the negotiating delegation about the meetings, efforts and procedures for resuming oil exports, noting the continuation of meetings with the federal government with the aim of resuming the export process as soon as possible.
In this context, the statement indicated that “a delegation from the regional government and oil companies is scheduled to visit Baghdad early next week at the invitation of the Federal Ministry of Oil, to discuss finding a mechanism to overcome all obstacles that hinder the resumption of oil exports, which unfortunately have caused billions of dollars in losses to the governments of Iraq.” And the Kurdistan Region since the suspension of the export process in March of last year.
The meeting stressed the directives of the Council of Ministers to the negotiating delegation, which stipulate an emphasis on the serious position of the Kurdistan Regional Government in its endeavor to reach a comprehensive and balanced agreement as soon as possible and in accordance with the constitution, to resume the export of the region’s oil through a company. (SOMO) and depositing its revenues in the service of the public treasury, provided that this is achieved based on the constitutional foundations and taking into account the privacy and powers of the region. In this regard, the regional government is ready for dialogue and negotiation to reach an agreement.
On May 28, the Federal Ministry of Oil called on the Ministry of Natural Resources in the Kurdistan Region and the international companies operating the fields located in the region to hold a meeting in Baghdad as soon as possible for the purpose of discussing and discussing the issue and reaching an agreement to accelerate the restart of production and resume the export of oil produced through the Turkish port of Ceyhan and according to the proven quantities. In the budget law.