A call to re-evaluate the cost of oil production in Kurdistan under the supervision of an international auditing company, 27 DEC

 A call to re-evaluate the cost of oil production in Kurdistan under the supervision of an international auditing company

The economist, Safwan Qusai, called for a re-evaluation of the cost of oil production in Kurdistan under the supervision of an international auditing company.

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Safwan told {For the Euphrates News} that he said: “With the arrival of the budget tables by the government, the Presidency of Parliament is supposed to task the Finance Committee with studying them in order to approve them faster to avoid the agreement in 2025.”
He added, “There is an urgent need to return the cost of producing a barrel of oil from the fields of the Kurdistan Region and raise this figure under the supervision of an international auditing company to $ 16 or in proportion to this cost and that the region undertakes to deliver more than 400,000 barrels to SOMO Company.”
Safwan pointed to “the amendment of the article on the export of Kurdistan oil guaranteed a cost increase of $6 at the level of all oil fields in Iraq, and this rate can be reduced in some governorates to two dollars and the transfer can be strengthened for the purpose of financing $16 from the Ministry of Finance to the region.”
He continued, “There is a desire on the part of China next year to double its total production in the sense that we expect to increase Iraqi oil consumption, which may give importance to increasing the value, thus the possibility of canceling voluntary reductions by OPEC and returning the Iraqi oil pumping to its normal production rates of 4 million and 500 thousand barrels of oil per day.”
With regard to the industrial city project in Basra, Safwan explained, “After the completion of the census, we have a clear map of the deficit in residential units for at least two colors and 500,000 housing units are supposed to be established. The demand for iron will rise with the existence of service projects and the need to establish a system of trains.”
He stressed “the need to develop the steel iron industry in Iraq to move to the steel industry and create an economic partnership with companies based on iron and steel, whether in the housing sector, cars and the rest of the iron products,” adding, economic diversification “an important step planned by the government to rehabilitate the private sector, which suffers a lot.”
Regarding the fluctuation of dollar prices and their impact on citizens, Safwan said that “there are still ambitions on the part of the Central Bank of Iraq to modernize banking systems and involve as many banks as possible in the process of financing foreign trade by re-esysttling them and linking them to the system of international correspondents; but these efforts alone will not be able to control the exchange rate. We need to invest in technology at border ports.”

Wafaa Al-Fatlawi
 

https://alforatnews.iq/news/دعوة-لإعادة-تقييم-كلفة-إنتاج-النفط-في-كردستان-بإشراف-شركة-تدقيق-دولية

EXCERPTS FROM MARKZ, 27 DEC

EXCERPTS FROM MARKZ

Member: What’s the new expected timeline Mark?  Jeff B says Iraq revalued in-country at $7.88?

MZ:  I would love to think that is accurate…..Unfortunately that is not what I am hearing from my Iraqi contacts this morning.

They are pretty upbeat though. My contacts still think it could go at any moment and are prepared for it.

Member: Hey mark- any bond contacts getting paid? Wolvie said several platforms were getting paid, can you confirm?

MZ: Reno has not started. But you will probably get a lot of rumors everywhere today. Folks should start getting back into place after the holidays…..we should start getting more info later on. Some may not return to their places until Jan 2nd…but that does not mean it can’t go before then.

Member: What does your “gut” say Mark?

MZ: it says this year is still very much in play.

MARKZ: RENO HAS NO STARTED!!! @DINARREVALUATION

 

Call for the demarcation of the maritime border between Iraq and Kuwait in full, 27 DEC

Call for the demarcation of the maritime border between Iraq and Kuwait in full

 The joint ministerial meeting between the GCC and the United States of America was held in New York, chaired by Mohammed bin Abdulrahman Al-Thani, Prime Minister and Minister of Foreign Affairs of the State of Qatar, Chairman of the current session of the GCC Ministerial Council, and Anthony Blinken, Minister of Foreign Affairs of the United States of America, with the participation of the Ministers of Foreign Affairs of the GCC countries, Jassim Al-Badiwi, Secretary-General of the Cooperation Council for the Gulf States.

The useful summary.. In the important news, you will find it on the Al-Furat News channel on Telegram. To subscribe, click here

Regarding Iraq and Kuwait.. According to the ministerial statement, the ministers affirmed their joint commitment to the strategic partnership between the GCC and the United States, and building on the achievements of previous ministerial meetings, including the last meeting held in Riyadh on April 29, 2024, to enhance consultation, coordination and cooperation in all fields.

The ministers recalled their decisions taken at their meeting on September 18, 2023 and stressed the importance of Iraq’s commitment to Kuwait’s sovereignty and territorial integrity and respect for international agreements and United Nations resolutions, especially Security Council Resolution No. 833, on the demarcation of the border between Kuwait and Iraq.

They called for the full demarcation of the maritime border between Kuwait and Iraq after border point 162, and called on the Government of Iraq to ensure that the 2012 Kuwait-Iraq Agreement for the Regulation of Maritime Navigation in Khor Abdullah remains in force.

The Ministers expressed their support for Security Council resolution 2732 (2024), which mandated the UN Secretary-General to facilitate progress towards resolving all outstanding issues between Iraq and Kuwait, including the return of all Kuwaiti and third-country nationals or their remains and the return of Kuwaiti property and the national archives.

The Ministers noted the important role played by the United Nations now and in the future in implementing Security Council Resolution 1284 and ensuring continued progress in resolving these issues, and called on Iraq to exert maximum efforts to reach a solution to all the issues concerned.

https://alforatnews.iq/news/دعوة-لترسيم-الحدود-البحرية-بين-العراق-والكويت-بالكامل

 

AJ: BLAST FROM THE PAST, 27 DEC

 AJ

Blast from the past: 

A must read from the official CBI Sep 04 2024 Currency Auction end of this year and according to the "plan."  

"I said this is a planned event" because the CBI Said It Was.

The electronic platform(currency auction) for foreign transfers managed by the Central Bank of Iraq began in early 2023 as a first phase to reorganize financial transfers to ensure proactive control over them instead of subsequent control through the Federal Reserve auditing daily transfers.

This was an exceptional measure as the Federal Reserve does not usually do this. A gradual shift was planned towards building direct relationships between banks in Iraq and foreign correspondent and approved banks, mediated by an international auditing company to conduct pre-audit on transfers before they are executed by correspondent banks. During the year 2024 and until now, 95% of the transfer process from the electronic platform to the correspondent banking mechanism directly between it and Iraqi banks has been achieved, which means that only about 5% of it remains within the platform, which will be transferred using the same mechanism before the end of this year and according to the plan. Thus, some expectations about possible effects on the exchange rate and transfer operations are "baseless," because the process will not be sudden or in one go at the end of this year, 

but rather it was originally achieved during the past period with effort and careful follow-up, except for the remaining small percentage that will be accomplished in the coming short period. The Central Bank of Iraq confirms that trade with the United Arab Emirates, Turkey, India and China represents about 70% of Iraq’s foreign trade as (imports), which prompted the Central Bank of Iraq to find channels for transfer in euros, Chinese yuan, Indian rupees and UAE dirhams, through approved correspondent banks in those countries. mechanism that has been agreed upon and approved in addition to transfers in dollars. Providing channels for personal transfers for legitimate purposes and external purchases through electronic payment channels, global money transfer companies, cash sales to travelers, and paying cash dollars for incoming transfers to the parties and purposes specified in the Central Bank’s published instructions. The Central Bank of Iraq stresses that it has placed foreign transfer operations and meeting dollar demands on sound paths consistent with international practices and standards and the Anti-Money Laundering and Terrorist Financing Law. He explains that providing the aforementioned channels for all purposes at the "official dollar price" makes this price the true indicator of economic practices, which is proven by the reality of price stability and control of inflation.

Any other price traded outside of these channels is considered an abnormal price that those with unorthodox or illegal practices resort to, who avoid official channels in their dealings, and bear the additional costs alone by purchasing at a higher price than the official price, to deceive others about the difference between the official price and the other. Central Bank of Iraq official rates Al-Sudani signed into law on Feb 07 2023

JEFF: " Iraq would need to pause and suspend credit and lending practices to rise the IQD"

 

Al-Sudani's advisor reassures via Shafaq News about the rise of the dollar: a temporary market bubble, 27 DEC

 Al-Sudani's advisor reassures via Shafaq News about the rise of the dollar: a temporary market bubble

12/26/2024

Mazhar Mohammed Saleh, the financial and economic advisor to Prime Minister Mohammed Shia al-Sudani, commented on Thursday on the rise in the exchange rate of the US dollar against the Iraqi dinar in the local market for days.

Saleh told Shafaq News Agency, "The difference between the two exchange rates in the market is basically stable for reasons related to controlling the sale of cash dollars from legal outlets to travelers in an organized manner and subject to a precise rule of compliance and auditing, in addition to the ability of the traveler to obtain other permitted amounts through payment cards in all their forms, and in sufficient and comfortable amounts at an exchange rate of 1320 dinars per dollar."

He added, "It is expected that the market, due to the end of the previous foreign transfer platform and the transition to new mechanisms for strengthening with foreign currency to meet the banks' needs for foreign currency to finance foreign trade, was accompanied by a wave of misinformation, misunderstanding and confusion that was exploited by the parallel market and speculators for quick profit."

He considered that this increase is "called a temporary market bubble that is built on unrealistic speculation and disappears over time, which requires attention to the phenomenon of exploitation and profiteering generated by false and baseless information."

The dollar exchange rate in local markets is witnessing a gradual increase, while this morning it recorded 152,000 dinars for every 100 dollars in the two main stock exchanges of Al-Kifah and Al-Harithiya in Baghdad, and 151,400 dinars for every 100 dollars in Erbil, the capital of the Kurdistan Region.

Yesterday, Wednesday, the economic and financial expert, Abdul Rahman Al-Mashhadani, attributed the main reason for the rise in the dollar price to the promotion of stopping the platform, indicating that “this rumor that spread showed that foreign transfers would stop.”

He explained that "this rumor is false, as 97% of the transfers made through the window were transferred to banks that have correspondent banks in a way that enhances the balances. The Christmas holiday is also another reason for the demand for the dollar, as there is a lot of travel during these days."

Al-Mashhadani expected that "the situation will stabilize and the dollar will return to its normal status after the holiday."  LINK