Iraq’s August electronic transactions surpass $1.5 billion, 15 SEPT

 Shafaq News/ The executive director of the Iraqi Private Banks Association, Ali Tariq, revealed, on Sunday, that the volume of electronic transactions in Iraq during August exceeded two trillion Iraqi dinars (approximately $1.5 billion).

In a statement to Shafaq News Agency, Tariq said, “This amount was transferred and circulated using various electronic payment systems, including cards and other payment methods.”

He highlighted that “This figure is expected to double in the coming months.”

Tariq also noted that around 20 million electronic payment cards have been issued, covering approximately 50% of Iraq’s population, with some individuals owning two or three cards.

He concluded by mentioning that “the number of electronic payment devices has exceeded 30,000 in both the public and private sectors.”

In October 2023, the Iraqi Council of Ministers issued several executive measures regarding the electronic payment system and point of sale (POS) devices, aiming to enhance the use of electronic payments and facilitate financial and commercial transactions in Iraq.

shadow.com

PIMPY CC NOTES HIGHLIGHTS, 15 SEPT

Summary

Iraq’s economy heavily relies on oil prices, and a drop below $70 per barrel may lead to currency devaluation.

Highlights

• 💼 Iraq’s budget relies 89% on oil sales.
• 📉 Oil prices fluctuating around $71 may impact the economy.
• ⚖️ Risks of currency devaluation loom if oil prices drop significantly.
• 🔍 Speculation and manipulation affect the foreign exchange market.
• 🏦 Iraq continues to buy gold, indicating a shift in central bank strategies.
• 🔒 Employee salaries are secured despite economic challenges.
• 🚧 Infrastructure projects may slow due to reduced oil revenues.

Key Insights

• 📊 Dependence on Oil: Iraq’s economy is still too reliant on oil sales, making it vulnerable to price fluctuations, which can impact fiscal stability. This dependency could lead to severe economic consequences if oil prices continue to dip.
• 🔄 Currency Risks: Should oil prices fall below the budgeted $70 per barrel for an extended period, Iraq may have no choice but to devalue the Iraqi dinar to manage its financial obligations. This historical pattern raises concerns about future economic health.
• 📈 Gold Purchases: The ongoing acquisition of gold by Iraq suggests a strategic move by central banks to diversify assets and strengthen financial security amidst global economic uncertainties. This trend reflects a proactive approach to safeguarding against currency volatility.
• 🔍 Market Manipulation: The presence of market speculators and the disparity between official and parallel exchange rates highlight significant challenges in Iraq’s foreign exchange market, exacerbating economic instability and complicating currency valuation.
• 📉 Employee Salaries: Despite oil price concerns, Iraq has secured funds for employee salaries, indicating a short-term buffer against economic downturns. However, long-term sustainability remains a question as oil revenues are crucial.
• ⚠️ Project Delays: Infrastructure and development projects may experience delays due to reduced oil revenues, impacting economic growth and job creation in the long term. This slowdown could hinder Iraq’s recovery and development plans.
• 🌐 Global Economic Impact: Iraq’s economic stability is closely tied to global oil demand. Any downturn in the global economy, particularly from potential shutdowns, could severely impact Iraq’s oil revenues, highlighting the interconnected nature of today’s economies.

🚨 Breaking News: U.S. Greenlights Iraq's International Status! 💵

Economist: The development road will pass through 12 Iraqi governorates and will transfer Iraq to the world, 15 SEPT

 The economic expert, Abdul Rahman Al-Sheikhli, said that the development path will pass through 12 Iraqi governorates and will have great investment opportunities.

“The development road will move Iraq from the regional situation to the global situation in terms of trade, as it will pass through 12 Iraqi governorates and will have great investment opportunities,” Al-Sheikhli said.
He added that “the development path project will provide Iraq with great immeral and international relations, and will attract the Iraqi workforce and optimism about it for good.”
Al-Sheikhli continued, “the stability of the security situation reflects the extent of interest in the future and the increase in investment opportunities in the country,” pointing to “the change of the economic system in Iraq since 2005 to the market system, and on this basis, the system must turn from the renty economy to a product.”
 

https://alforatnews.iq/news/خبير-اقتصادي-طريق-التنمية-سيمر-بـ12-محافظة-عراقية-وسينقل-العراق-الى-العالمية

"THEY ARE IN AN ACCELERATED STAGE & MOVING FORWARD WITH INTENTION & PURPOSE" BY GOLDILOCKS, 15 SEPT

 GOLDILOCKS

Iraq is currently receiving applications from their banking system to transition into the new digital economy. Between 60 to 70 banks have sent in their application to transition into International electronic platforms. This pretty much covers all of their Banks except for a handful.

They're still telling us that this aspect of their banking reforms will take till the end of the year, but we are seeing progress and lots of confidence in their new electronic banking system.

This article goes on to tell us that they are in an accelerated stage and moving forward with intention and purpose.

© Goldilocks

https://cbi.iq/news/view/2670

IRAQ'S NEW HYDROCARBON LAW @DINARREVALUATION

DINAR REVALUATION REPORT: Iraq Finalizes Hydrocarbon Law in 2024, 15 SEPT

 Iraq Finalizes Hydrocarbon Law in 2024

The hydrocarbon sector in Iraq witnesses a significant milestone as the country finalizes the Hydrocarbon Law (HCL) in 2024, a move aiming to boost the oil and gas industry and attract international investments. 4

Enhancing Investment and Production

The updated HCL introduces a new framework allowing foreign companies to share in oil output when in partnership with the Iraqi government. This shift from the previous fee-per-barrel contracts to production-sharing agreements and service contracts is expected to create a more investor-friendly environment. 4

Legal Framework for Oil and Gas Contracts

Iraq also finalizes the fifth-plus and sixth rounds of oil and gas contracts, attracting over 20 companies from around the globe. These contracts yield over 30% profit for participating companies, with Chinese firms and a single Iraqi-Kurdish company securing the deals.  5

Impact on Kurdistan Region

The Kurdistan Region's oil sector, already impacted by the closure of its main pipeline to Turkey, faces further challenges. The new federal budget law calls for a quota of 400,000 barrels per day (b/d) to be handed over to the federal oil marketer SOMO in exchange for 12.6% of federal funding. 1

Political and Economic Ramifications

The new HCL and budget law have political and economic implications for Iraq's social and political stability. Successful implementation could help calm violence and reflect a spirit of compromise, while failure could have negative repercussions. 3

Enhanced Table: Key Provisions of the Hydrocarbon Law