Economy 2024-08-27 |1,414 views Alsumaria News – Economy Shaaban Forotan, a member of the Board of Directors of the Joint Iranian-Iraqi Chamber of Commerce, revealed today, Tuesday, that the largest part of trade between Iraq and Iran, at the level of traders and exporters, is carried out through the Iranian riyal.
"Most Iranian exporters now work in riyals in trade with Iraq, and financial transactions between the two countries will continue without using the Iranian riyal, i.e. also in dollars.
This does not mean the complete elimination of the dollar, but a large portion of traders conduct their transactions without the dollar," Forotan said in statements to Iranian media.
He explained that "the commitment to trade in dollars does not include all product groups, but the exchange of riyals into dollars cannot be implemented due to sanctions imposed on banks, and riyal traders earn from selling goods in the Iraqi market through their contacts with the stock exchanges of Iraq and Iran or a third country such as the United Arab Emirates, and they do not have the possibility of direct settlement."
He pointed out that "the supply of Iranian goods faced a problem in the Iraqi market, which is the multiple increase in the prices of goods in Iran during the year, while prices are expected to increase only once a year." LINK
As this afternoon Redemption Center screens were showing 15 different currencies with solid new live rates. There will be new currency rates on 19 different currencies including the USN. It was suspected that all 19 would be solid on the screens tomorrow Wed. 28 Aug. 2024.
The screen rates at the Redemption Centers are going to be three times higher on the Dinar and twice as high on the Dong than at a bank.
The new Rates are going to be between $4 and $7.
The contract rate on the Dinar will be offered.
Emails are going out to Redemption Center operatives at around 4:30 tomorrow afternoon
Wed. 28 Aug.
Bond Holders are expecting their emails Sunday night, with access Mon. or Tues.
Tier4b notification and exchangesshould start over the weekend, or byMon. or Tues.
We will receive notification in conjunction with the EBS.
The EBS will be a cover for Tier4b to do our exchanges.
The Admiral’s Group will start Sat, Sun and Mon.
Everything will be well underway by Wed. 28 Aug.
All debt forgiveness should be done by Sat. 31 Aug.
Al-Sudani Announces Completion Date for First Phase of Al-Faw Port: A Qualitative Addition to the Region
In a significant development for Iraq's infrastructure and economy, Prime Minister Mohammed S. Al Sudani has announced the completion date for the first phase of the Grand Al-Faw Port. The project, a cornerstone of the Development Road initiative, is set to be operational by mid-2025. marking a milestone in Iraq's vision to transform into a regional trade and development hub.
Strategic Vision and Economic Impact
The Grand Al-Faw Port, located at the mouth of the Shatt al-Arab, where the Euphrates and Tigris rivers meet before flowing into the Persian Gulf, is poised to be the Middle East’s largest port. Its construction, led by South Korean Daewoo with a $5 billion agreement, spans a vast area of 54 square kilometers (33.5 square miles). Farhan al-Fartousi, the director general of the General Company for Ports of Iraq, highlighted the port's planned facilities, including oil and gas refineries, industrial sites, and tourism venues, as well as its impressive capacity of 90 docks.
The project's strategic vision extends beyond mere infrastructure development. It aims to revitalize Basra and establish it as a central trade and development node. With a phased completion timeline extending to 2030, 2038, and finally 2050, the port's full operational readiness will coincide with the completion of its supporting facilities, heralding a new era of economic prosperity for Iraq.
Key Economic Projects
In a significant move, Prime Minister Al-Sudani emphasized the importance of the Al-Faw Integrated Oil Refinery Project, which is part of the government’s plan to enhance oil refining capacities and attract foreign investments. The contract for this project was signed between the Ministry of Oil/South Refineries Company and China National Chemical Engineering (CNCEC). With a refining capacity of 300,000 barrels per day and adherence to global environmental standards, the project will utilize modern technology to provide petroleum derivatives for local consumption and export.
The refinery project will be executed in two phases: the first focusing on refining operations, and the second on constructing a petrochemical complex with a capacity of 3 million tons per year, alongside a 2000 MW power plant. Additionally, the establishment of the Al-Faw Oil Refinery Technology Academy will train 5,000 Iraqi personnel to manage the refinery in the future, creating jobs for young people and graduates, and stimulating local industries.
Regional and International Cooperation
The Development Road project, which encompasses the Grand Al-Faw Port, received a boost with a preliminary agreement between Iraq, Türkiye, Qatar, and the United Arab Emirates (UAE). The $17 billion project involves linking a major commodities port on Iraq's southern coast by rail and road to the border with Türkiye. The 1,200-kilometer (745-mile) infrastructure aims to position Iraq as a transit hub, connecting Asia and Europe and enhancing regional economic ties.
Conclusion
The completion of the first phase of the Grand Al-Faw Port by mid-2025 represents a significant step forward in Iraq's strategic vision for economic development and regional integration. With its potential to create jobs, stimulate industries, and position Iraq as a central trade hub, the project embodies the country's aspirations for a prosperous future.
He explained that his government started two years ago with an ambitious program and priorities in working with a ministerial and advisory team, especially in development and the economy, based on the strengths that distinguish Iraq in terms of its natural and human resources, stressing that Iraq represents an important market with an increasing growth rate as a result of its important geographical location in a vital region of the world.
The Prime Minister stressed that Iraq has received major Egyptian investors in infrastructure and residential city projects, the implementation of which will start soon, noting that the doors are open to Egyptian businessmen and companies, whose presence in Iraq is important to us, due to their successful experiences, and within a political direction to lead the two countries towards more cooperation and integration.
The Prime Minister stressed that the government is launching investment opportunities in all industries, modernizing production lines, and the principle of partnership between the public and private sectors, and that a group of industrial cities have been identified within Iraq, in conjunction with the Development Road Project, as an important strategic project, and today we have partnerships with Qatar, Turkey and the Emirates regarding this project, and that the first phase of the Faw Port will be completed by the end of 2025, and it will be a qualitative addition to the region, along with the largest industrial city.
For their part, Egyptian businessmen and companies expressed their readiness to work in Iraq in various fields, including the development road project, the pharmaceutical industry, hospitals, infrastructure and construction industries. They also spoke about the existence of promising partnerships between the Iraqi and Egyptian private sectors.
