Electricity: We Are Proceeding With The Procedures To Release Turkmen Gas
The Ministry of Electricity confirmed, today, Thursday, that it is proceeding with the procedures to launch Turkmen gas, while indicating that the crises that are occurring in electricity and supply hours are due to the scarcity of fuel.
The spokesman for the Ministry of Electricity, Ahmed Musa, told the Iraqi News Agency (INA): “In the midst of the Ministry of Electricity’s preparations and the proactive plan to receive the peak winter loads and early preparations for the summer, the Ministry of Electricity has begun to be somewhat ready to receive the peak winter loads in terms of preparing production stations and generating units, networks, power transmission lines, distribution networks, and the work underway to address bottlenecks and rehabilitate the network’s performance in the midst of this major plan being carried out by the Ministry of Electricity.”
He pointed out that "some of the crises that occur in electricity and the hours of preparation are not actually an electricity crisis, but rather a fuel shortage, and they are clearly and explicitly reflected at times on the power stations, as they are responsible for determining the loads and some other generating units stop."
Speaking about Iranian gas, Musa explained that “there is a decrease in releases from 13 million cubic meters to 12 million cubic meters yesterday, and today the reduction has reached 7 million cubic meters,” stressing that “this decrease in gas with the approach of the peak winter loads that require energy and sustainability for the stations’ operation determines the loads of some production stations, especially large stations such as (Bismaya, Al-Sadr Gas, Al-Mansouriya, and other stations).”
Musa pointed out that “a shortage of gas in this manner is enough to limit the system’s loads and stop some other generating units,” noting that “we have completed the signing of the Turkmen gas agreement and an agreement has been reached on the quantities, pricing, and the passage of gas and its method through Iranian pipelines.”
He continued: “There is talk about implementing the Cabinet’s decisions to open credit with the “ TBI
” by placing the first payment according to the Cabinet’s decision and the advance payment mechanism represented by the first payment of money for Turkmen gas,” noting that “there are a number of procedures with the Ministry of Finance that must be completed and the first payment must be placed so that Turkmen gas can be launched.”
He stated that “the decrease in fuel or gas, whether domestic or imported, affects production stations, and there is no alternative plan other than coordination with the Ministry of Oil and according to the decision of the Council of Ministers, which is permanent and continuous to secure fuel for the stations or diesel oil or other fuel derivatives for the stations to operate.”
He added, "The need will not be met in the absence of imported gas and part of the national gas, and some of the electricity crises are in reality a fuel crisis and a shortage in the production stations. Other than that, the plan is going well and preparations are underway to complete the readiness to enter the peak winter loads."
These guys are in a stage of getting ramped up for production for the construction and reconstruction efforts of the country like they've never seen in modern history...
The new era...is coming upon Iraq.
Let's hope they have a previous era takeoff in a real effective exchange rate to help boost that private sector and industrial capacities that they have going...
Iraq's dealings with Spain: Promises and challenges in economic cooperation
Shafaq News/ The recent Rapprochement between Iraq and Spain was marked by the visit of Prime Minister Mohammed Shia al-Sudani to Madrid and the signing of several key memorandums of understanding. However, experts warn that despite these promising agreements, Iraq’s political instability, security concerns, and military influence pose serious challenges to their successful implementation, threatening to undermine efforts to attract foreign investment and foster long-term economic growth.
MoUs And More
Prime Minister al-Sudani, heading a high-level delegation, concluded a visit to Madrid which his office described as successful.
al-Sudani and his Spanish counterpart Pedro Sánchez led their respective delegations in discussions held Thursday in Madrid. The meeting was attended by ministers of foreign affairs, interior, transport, and trade from both sides.
The two countries oversaw the signing of key memorandums of understanding (MoUs):
● A cooperation agreement between the Sovereign Guarantees Initiative Committee and the Spanish government.
● An MoU between the Iraqi Federation of Chambers of Commerce and the Spanish Chamber of Commerce.
● An MoU between the Iraqi Federation of Industries and the Spanish Confederation of Business Organizations (CEOE).
● An MoU on security cooperation between the Ministries of Interior of Iraq and Spain.
● An MoU between the Iraqi Commission of Integrity and the Spanish State Prosecutor General.
● A cooperation agreement between Wasit Governorate and the Spanish Imathia Construccion.
● A bilateral MoU between Al Iraqia University and King Juan Carlos University of Spain.
Economic Forum Highlights
During the Iraqi-Spanish Business Forum, organized by the Spanish Chamber of Commerce in Madrid, al-Sudani highlighted the delegation’s composition as “a strong message of Iraq’s genuine interest in strengthening cooperation with Spain.” He also underscored Iraq’s commitment to learning from Spain’s “successful corporate experiences across various sectors, with a focus on advancing toward a comprehensive strategic partnership.”
“Iraq has attracted $62 billion in foreign investments, supported by a secure and stable environment.” He said in his remarks.
Al-Sudani said that the government secured a $250 million rail project connecting Basra to Iran with a Spanish company and ongoing negotiations involving Spanish firms for the Karbala-Najaf railway project.
Moreover, Al-Sudani discussed initiatives such as the Iraq Development Fund and projects aimed at boosting infrastructure and housing, underscoring opportunities for Spanish businesses. He also emphasized Iraq’s focus on advancing sectors like food, pharmaceuticals, and construction.
In turn, Iraqi Transport Ministry spokesperson Maytham al-Safi told Shafaq News Agency, al-Safi, “There are numerous shared interests with the Spanish side. In recent days, the 13th session of the Iraqi-Spanish Committee was held in Baghdad, during which several memorandums of understanding were signed. The Ministry of Transport plays a crucial role in managing files related to this committee.”
Highlighting key developments, al-Safi pointed to the signing of a contract by the Iraqi Railways Company to construct the Basra-Shalamcheh railway, a 36-kilometer project intended to facilitate the transport of over five million passengers and visitors between Iraq and Iran. Additionally, a memorandum of understanding was signed to begin studies and designs for the Mehran-Kut-Karbala railway, the Karbala-Najaf elevated train, and the broader development project.
Al-Safi pointed out, “Many Spanish companies have submitted proposals to implement or participate in these projects and others. Spain is a leader in modern railway systems, with numerous successful projects in the region and neighboring countries.”
He added that Iraq’s engagement extends beyond Spain to broader European cooperation, “reflecting efforts to serve Iraq’s interests.”
Gateway to Global Markets
Economic expert Diaa al-Mohsen stressed Spain’s industrial strengths, particularly in maritime and railway transport, and its potential as a valuable partner for Iraq. “Spain is a key member of the European Union with a robust industrial base in the transport sector. Iraq stands to benefit if these agreements and relationships are utilized effectively,” al-Mohsen told Shafaq News Agency.
He noted that Spain’s involvement might steer clear of the commissions and unofficial fees that have hindered many projects in Iraq. “The Iraqi government must pay attention to this, as the country has lost numerous projects due to external pressures on companies attempting to invest here,” he said.
“Spanish companies could help market Iraqi production internationally…These firms have established global markets, and Iraq should capitalize on this by fostering partnerships with Spanish companies,” he said.
Discussing Iraq’s Development Road initiative, al-Mohsen explained the substantial financial investment required, which Iraq might struggle to fulfill alone, pointing out that “the agreements signed with Spain represent a significant boost for this project, paving the way for future progress.”
Internal Challenges
Economic researcher Ahmed Eid expressed cautious optimism about the memorandums of understanding signed by Iraq’s Prime Minister in Madrid, despite their potential for international cooperation and development. He warned of internal obstacles that could hinder progress.
“The signing of these agreements reflects a clear desire to enhance international collaboration, but they face major challenges given Iraq’s domestic conditions,” Eid told Shafaq News Agency.
“Security and political instability are critical concerns…the presence of weapons outside state control and weak government authority in certain regions undermine the feasibility of implementing these agreements with Spain.”
Eid added that “regional tensions and the lack of clear strategies to support investments further complicate efforts to translate the agreements into tangible projects that could strengthen Iraq’s economy.”
Moreover, according to him, administrative corruption is a persistent issue that “reduces Iraq’s attractiveness to foreign companies aiming to implement projects effectively.”
“Non-State Groups” Influence
Ahmed Eid stressed that for Iraq to fully benefit from these agreements, substantial progress must be made in bolstering security, stabilizing political conditions, disarming non-state groups, and implementing genuine business reforms.
“The presence of militias not only undermines security but also extends their influence into economic sectors, interfering in contracts and investments,” Eid explained to Shafaq News Agency.
“This disrupts projects and limits foreign investment opportunities, as international companies may hesitate to undertake long-term ventures due to the heightened risks tied to Iraq’s security situation and the state’s limited capacity to enforce the law and combat corruption.”
Eid warned that “the considerable influence of militias creates an uneven competitive environment, complicating the enforcement of laws and international obligations linked to the memorandums of understanding.”
“Addressing the root causes of these security and political challenges is essential for transforming these agreements into tangible achievements that contribute to Iraq’s economic growth and development,” he concluded. “Otherwise, these agreements risk remaining unfulfilled promises.”
DINAR REVALUATION UPDATE: IRAQI DINAR EXCHANGE RATES AT REDEMPTION CENTERS
Summary
Iraqi dinar exchange rates at redemption centers are higher than banks, while the Vietnamese Dong faces depreciation against the USD due to various economic factors.
Highlights
💰 Higher rates for Iraqi dinar at redemption centers than banks.
🚫 Rumors of a 6-month wait at major banks are unlikely.
📉 Vietnamese Dong’s value influenced by US dollar strength and low interest rates.
🔄 Competitive market offers alternatives for currency exchange.
🏦 Iraq is improving its economic stability and transparency.
📊 Currency investments come with risks but can offer opportunities.
⏳ Patience is essential for long-term investment strategies.
Key Insights
💵 Redemption Centers Advantage: Redemption centers provide significantly better rates for exchanging Iraqi dinar compared to traditional banks, making them a key option for investors. This could lead to higher returns for those looking to exchange their currency.
🚦 Bank Competition: The concept of a 6-month waiting period for currency exchange by major banks like Chase is unrealistic. Banks are competing to attract customers, especially for high-demand currencies, making it unlikely for any bank to implement such a restriction.
🌍 Impact of the US Dollar: The strength of the US dollar plays a crucial role in the depreciation of the Vietnamese Dong. As a global safe haven, its strength poses challenges for other currencies, including the Dong, particularly in uncertain economic times.
📉 Economic Factors for the Dong: The Vietnamese Dong’s value is affected by low interest rates, trade balances, and foreign investments. High inflation further erodes its purchasing power, complicating its attractiveness to investors.
🌱 Iraq’s Economic Progress: Iraq is making strides in stabilizing its economy and integrating into the global financial system. Improvements in transparency and monetary reforms are essential for strengthening the dinar’s value.
📈 Investment Timing: Potential investors in the Iraqi dinar or Vietnamese Dong need to consider their risk tolerance and investment goals. While opportunities exist, emerging markets carry inherent risks that must be navigated carefully.
🕰️ Long-term Patience: Transformative economic changes take time, and investors should remain patient while staying informed through reliable sources. This approach can help mitigate risks and enhance potential rewards.
The Prime Minister’s Advisor for Financial and Economic Affairs, Mazhar Mohammed Saleh, on Saturday, confirmed the rise in financial inclusion in Iraq, represented by bank accounts, to 14 million and a rate of 20 million users, while pointing out that Iraq is witnessing a boom by adopting e-governance as a basis for integrity and financial efficiency.
Saleh said, in a statement reported by the official news agency, and seen by “Economy News”, that “the basis of financial inclusion is the number of bank personal accounts, as inclusion aims to enable individuals and companies to access financial services appropriate to their needs in an easy and affordable way, while ensuring legal protection and transparency.”
He added that “financial inclusion focuses on promoting the financial inclusion of economically and socially marginalized groups, such as the poor, women and youth, as well as small and medium-sized enterprises that lack adequate access to financing in the banking system through the opening of a bank account.”
He pointed out that “national indicators confirm that financial inclusion in Iraq has increased from 20% to 48% at present compared to previous years,” explaining that “the reason is due to two main factors, namely the settlement of the salaries of employees, workers, retirees and social welfare, and the other is the spread of digital payments or digital financial inclusion.
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Saleh stressed that “Iraq is witnessing a boom within the policy of the government program, which has enounted e-governance the basis of integrity, transparency, financial and economic efficiency and optimal investment of resources and time,” pointing out that “recent statistics indicate that the number of bank accounts is about 14 million bank accounts and more than 20 million payment card users, which means a high financial inclusion rate from 20% to 48%, which is measured by the number of bank accounts opened for adults of the population.”
He continued, “There are a number of inactive or zero open bank accounts that should be excluded to reach the correct number of the number of open bank accounts. There are open and yellowed accounts belonging to expatriates and deceased, bankrupt companies or leaving companies and individuals who have not benefited with their bank accounts opened in banks while they are under guardianship or distressed and many other factors and hope.”
He continued, “The real standard in adopting the bank account as a criterion for financial inclusion is the bank accounts open to effective people, not zero or inactive, which requires their exclusion from the statistics of banks and the general Iraqi banking system.”