The region’s oil and losses halting its exports at the top of the Prime Minister’s discussions in Erbil tomorrow
Member of the Parliamentary Finance Committee, Moeen Al-Kazemi, revealed that Prime Minister Mohammed Shia Al-Sudani will visit Erbil tomorrow, Wednesday, to discuss the region’s oil and the losses resulting from the halt of its exports to Iraq.
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Al-Kadhimi said, during his hosting on the {Free Talk} program broadcast on Al-Furat satellite channel this evening, that: “The suspension of oil exports took place in 2023 after Iraq complained to Turkey that it imports oil from the Kurdistan Regional Government and not from the federal government, then Turkey took the initiative to stop exports under the pretext of the earthquake, then it was agreed to resume exports.”
He added, “The government sees it as a huge loss for Iraq, so it stood before this issue of production costs with international companies to explore for oil in the region, and the government agreed to spend $ 16 per barrel on oil extraction costs to consider the existing reality, and tomorrow there will be a visit by Al-Sudani to Erbil to discuss this issue and other matters.”
Al-Kadhimi added, “There is an important demand from the federal government to reconsider these participating oil contracts, noting that these wells are not the wells of the south, and $ 16 is not considered legal except by a vote of the House of Representatives and will not pass easily, and the region’s oil must be exported through SOMO in contract with the center.”
Regarding the disclosure of investigations into changing the budget tables, Al-Kadhimi said, “The House of Representatives has a mission to advance the legislative and oversight reality, and the Finance Committee has begun investigating within Parliament regarding the manipulation of the budget tables, and we obtained the copy sent by the government to Parliament and the copy sent by Parliament to the government, and in general, the mistake was deliberate from within the House of Representatives.”
He continued, “The issue of leaks is a curse and from important sources or in political blocs, showing the community’s lack of confidence in those in charge, and on the other hand, it became clear that there is a defect in the technologies and warns that most officials are hacked in information and communications. ” Al-Kadhimi added, “On the other hand, it is also a blessing to reveal corrupt faces, but this disclosure will make the corrupt take precautions and be careful, and this must be an alarm bell and a necessity for serious action by the government, and accountability must be carried out and issues of bargaining and moodiness must not be the ones that control.”
I see what is happening in Iraq as a final “cleanup” from the sanctioned days and war years...there is going be some huge change in policy of currency exchange for international trade with Iraq...
why else would the CBI make such a drastic change in policy with the currency auctions if the US didn’t tell them to “ditch the dollar” and do it now. ...
But in order to do it Iraq needed the reforms... reforms come first, then they can rebuild their economy and somewhere in the new economy building phase, they strike out and delete the zeros and reinstate...
So, come the end of 2024 don’t you think these reforms will be ‘good enough” to let the dinar finally get to FOREX? I was told this is their target.
Make upAnnouncementCentral BankIraqiOn September 4, 2024, on the termination of work on the electronic platform for monitoringMovementDollarThe transfers of the American currency abroad, early next year, are a turning point in Iraqi financial policies.
This decision is expected to lead to fundamental changes in financial transfer mechanisms, and a direct impact on exchange rates and financial stability. Moreover, this decision poses new challenges for the banking sector, and calls for a careful assessment of its effects and the fate of banks that will not be able to integrate into the new system, and the challenges that the government may face in implementing this transformation, according to observers.
The expert in economic and financial affairs, Safwan Qusai, confirms that the new transfer mechanism that will be implemented early next year will not negatively affect the financing of legitimate trade.
He says that the entry of the central bankIraqiThe US Federal Fed as a monitor, and the transfer of Iraqi banks that have relations with major international banks such as Citibank and JP Morgan, will contribute to accelerating transfers and reduce data manipulation.
Elimination of the parallel market He adds that this step will eliminate illegal trade that depends on buyingDollarFrom unofficial sources or what is known as the parallel market.
He points out that banks facing restrictions on dealing in foreign currencies are currently being evaluated by Oliver Weyman, with the aim of developing their capabilities in the field of remittances, expecting that many of these banks will be able to resume their international work after meeting the required requirements.
The economist stressed that the new mechanism will ensure the provision ofDollarAt a fixed official price, which removes any concerns about financing illegal trade, noting that the parallel market will continue to face challenges due to tight regulatory measures.
Qusai called on irregular traders to move to deal through official channels, stressing that there is a possibility of merging some Iraqi banks to form a new banking entity capable of exercising international trade freely, in coordination with the Central BankIraqiThe American Federal.
In early 2023, he announced
IraqAdopting an electronic platform forMonitoringMovementSellingDollarMoney laundering operations, following warnings issued by the US central bank, and following the US Treasury Department punishing many local banks for their “involvement” in suspicious acts.
Expectations of an exchange rate increase For his part, economist Nabil Jabbar Al-Tamimi warned that the transition to a new mechanism for bank transfers inIraqMay lead to a temporary rise in the exchange rateDollarduring the coming period.
The Council of Ministers ratifiedIraqiOn February 7, 2023, on the decision of the Board of Directors of the Central BankIraqiAdjusting the exchange rateDollarAgainst the dinar, as follows:
1300 dinars per dollar the purchase price from the Ministry of Finance. 1310 dinars per dollar the selling price of banks. 1320 dinars per dollar the sale price by banks and non-banking financial institutions of the final beneficiary.
Al-Tamimi explained that the Central BankIraqiIt works to end the adoption of the current platform for remittances, and move to a system based on direct relations between Iraqi banks and international banks.
He pointed out that some Iraqi banks are ready to work with this new system, but other banks need to develop their capabilities, and expected this shift to lead to some market disruptions during the transitional period, but stressed that the government is working to support banks to successfully overcome this stage.
Al-Tamimi explained that the Iraqi government, represented by the Central Bank, plans to evaluate all Iraqi banks and qualify them to work with the new system, in cooperation with international financial audit companies, stressing that these steps aim to enhance the stability of the banking system.IraqiAnd increase its efficiency, which will reflect positively on the economyIraqiIn general.
This time we didn't go down, we just called [the bank]...
We said we want to see if we can exchange some currency and he said what kind of currency?
We said Iraqi dinar. He didn't even skip a beat, he said, well I'm not sure about that one right now let me talk to my colleagues and I'll get back to you.
Easy-peasy, we were just kind of shocked. He put me on hold and came back and he very calmly said sir.
..with the amount that you told us you have, the Brinks truck will come to your house and they will do the exchange right there in your house and then you'll be good to go. It'll be in your bank.
You'll be able to verify it on your phone, in your app that shows your banking information. He said you'll be able to validate on a computer, all that jazz, that the money is in your account...
They're saying we should have and accountant and tax attorney. They have a list of all that, that they'd be more than happy to share. I said no thank you I have all that covered...It was amazing. Our jaws dropped...This was [last] Monday by the way..
Mill publishes the full decisions of the 46th meeting of the Council of Ministers held on Tuesday, chaired by Prime Minister Mohammed Shia Al-Sudani.
The Prime Minister’s Information Office said in a statement, in response to “Mil”, that “Sudane chaired, on Tuesday, the 46th ordinary session of the Council of Ministers, in which the developments in the country were discussed, and the basic files related to the priorities of the government program were discussed, in addition to considering the topics on the agenda and taking the necessary decisions thereon.”
The statement added that “the Council approved the conduct of a general census of the population throughout Iraq after addressing technical issues with the Statistical Authority in the Kurdistan Region of Iraq, increasing the financial costs allocated to conduct the census, and the Ministry of Finance transferring the funds required to conduct the census without any slawness.”
He pointed out that “within the government’s procedures for administrative reform, it was approved to appoin (16) general managers, based on the government approach related to the process of evaluating officials and general managers, according to efficiency standards and good performance of tasks, making the number of those who were installed 266 general managers.”
Within the framework of facilitating the implementation of traffic jam projects in the capital Baghdad, the Council of Ministers approved the reowning of 385 dunums of the Basra 2 project, from the National Investment Commission to the Ministry of Finance, and allocating it to the Department of Roads and Bridges in the Ministry of Reconstruction, Housing and Municipalities for the purpose of implementing the fourth ring road project in Baghdad.
He explained that “in continuation of the government support provided to young people, the Council of Ministers approved the exception of the Ministry of Youth and Sports from the instructions to facilitate the implementation of the Federal General Budget Law, based on the provisions of Article (34) of the aforementioned instructions, as well as the Ministry’s exemption from the instructions for the implementation of government contracts (2 of 2014), and the controls attached thereto, and the Ministry’s authorization of direct contracting authority in order to make a success, host and hold the meeting of the Council of Arab Ministers of Youth and Sports in the capital Baghdad, and to establish an activity (Baghdad, the capital of Arab youth.”
In the energy sector, the recommendations and minutes of the committee composed under the directive of the Prime Minister on the recommendation of the Ministerial Council of Energy regarding the thermal cycle power plant project, and the continuation of taking legal procedures against the defaulters, according to the statement of the Media Office.
According to the statement, “In the course of government efforts to raise the capabilities and readiness of the armed forces, the development of the rehabilitation component of military bases and camps was approved within the project of building the capacity of the Ministry of Defense.”
He continued: “Within the regulatory procedures for structuring public companies, the Council of Ministers approved the following:
1. Al-Tareq General Company (previously) was excluded from the merger with Al-Furat General Company for Chemical Industries, and Al-Nahrawan General Company (formerly) from the merger with the General Company for Design and Implementation of Projects, pursuant to the decision of the Council of Ministers (360 of 2015) to enable each company (Al-Furat General for Chemical Industries, Design and Project Implementation) to submit their final accounts for the years from 2016 upwards, in addition to the ability of Al-Tareq General Company (previously) to submit its final accounts independently until the date of its association with the General Company for the Pharmaceuticals and Medical Supplies Industry in Samarra / Iraq.
2. Follow up the issuance of the Military Industrialization Authority of the final accounts of Al-Nahrwan General Company (formerly) for the years from (2009 to 2011) sent to the Federal Bureau of Financial Supervision under the letter of the Ministry of Industry and Minerals dated June 16, 2019 and follow-up of the completion of its accounts starting from 2012 and up, and submission successively and independently, up to the date of its merger with the General Company for Military Industries (previously) under the ministerial order dated June 12, 2016.
In the same context, it was approved that each of the following merged companies would submit their final accounts for each of them in detail for previous years before this affected the merger decision:
1. Al-Tareq General Company (formerly).
2. Al-Furat General Company for Chemical Industries.
3. Al-Nahrwan General Company (formerly).
4. The General Company for the Design and Implementation of Projects.
5. General Company for the Manufacture of Pharmaceuticals and Medical Supplies.
6. General Company for Military Industries (formerly).
He added that “in continuation of the lagging and suspended projects, the Council of Ministers approved the following:
First, increasing the amount of reserve for contracting the project (establishment of maintenance buildings and warehouses for the Faculty of Nursing in Fallujah) included as a component of the project (design and implementation of the building of the Faculty of Nursing of the University of Fallujah), and ensuring an increase in the total cost of the main project from the amount of savings within the cost of the main project components, which is (7) components.
Second / Developing a component (the remaining works for the construction of the primary health care sector building in Al-Shamiya) within the project (establishing the building of the primary health care sectors in the center and the districts of 4 Diwaniyas), and increasing the total cost of the project.
Third / Developing components (completing construction) for the projects outlined in the letter of the Ministry of Planning dated November 3, 2024, reducing the total cost of components (calling), and increasing the total cost of major projects.
Fourth / Increasing the reserve amount for the project (residential complex in Diwaniyah / Hamza), and increasing the amount of reserve.
The statement of the Information Office continued that “in the foreign relations file, the recommendation of the Ministry of Foreign Affairs on the establishment of diplomatic relations at the level of resident ambassador with the Republic of Turkmenistan was approved, based on the provisions of the Foreign Service Law No. 45 of 2008.”
He stressed that “it was approved that the General Company for Textile and Leather Industries handed over the value of materials (cash) for not including the judicial ruling in its ruling paragraph, which indicates implementation (cash in case in no kind execution).”
