Saturday, January 4, 2025
“Oil and Gas Law” resolves pending issues between Baghdad and Erbil, 4 JAN
“Oil and Gas Law” resolves pending issues between Baghdad and Erbil
Shafaq News/ The Oil and Gas Committee in the Iraqi Parliament considered, on Saturday, that the agreement on the draft “Oil and Gas Law” and sending it from the government to the parliament will contribute to resolving many of the pending issues between Baghdad and Erbil.
Committee member Bassem Al-Gharibawi told Shafak News Agency, “Agreeing on the draft oil and gas law and approving it in the Council of Ministers and then sending it to Parliament will contribute to resolving many of the outstanding problems between the federal and regional governments.”
According to Al-Gharibawi, the government had previously formed a committee headed by the Deputy Prime Minister for Energy Affairs, the Deputy Prime Minister for Economic Affairs, and the Iraqi SOMO Company to negotiate with the regional government regarding amending the disputed articles and preparing a final version of the oil and gas law.
He added, “The Parliamentary Oil Committee hosted a number of officials from the Ministry of Oil during the previous legislative session, and discussed the formulas and articles that require amendment to the Oil and Gas Law.”
Last week, Iraqi economic expert, Nabil Al-Marsoumi, revealed that 9 foreign companies were demanding compensation amounting to 24 billion dollars resulting from the halt in oil exports after the Iraqi judiciary rejected the appeal of the Iraqi Ministry of Oil to cancel these companies’ contracts with the Kurdistan Region.
The Karkh Court of Appeal rejected an appeal submitted by the Iraqi Ministry of Oil and overturned previous rulings that declared the contracts of foreign companies with the Kurdistan Region invalid .
According to the court, contracts are considered “valid,” enforceable, and binding on both parties, and no party outside the contract has the right to object to them, even if they are based on a legal basis that the Federal Supreme Court in Iraq deemed unconstitutional in February 2022 .
The court explained in the reasons on which it relied that the decision of the Federal Supreme Court issued in February 2022 cannot be applied to contracts concluded before its issuance, in accordance with a general principle in Iraqi civil law.
shafaq.com
NADER FROM MID EAST HIGHLIGHTS: LOOKING STABILIZE THE RATE OF THE IRAQI DINAR, 4 JAN
NADER FROM MID EAST HIGHLIGHTS
Highlights
- 💵 Monetary Reinforcement Mechanism: The Central Bank’s new strategy focuses on providing foreign currency to national banks.
- 📈 Financial Stability: The initiative aims to enhance the overall financial stability of Iraq through effective liquidity management.
- ⚖️ Fixed Exchange Rate: A stable exchange rate of 1,320 dinars per $100 is set to maintain the dinar’s external value.
- 📊 Control of Inflation: The mechanism is designed to regulate money supply growth and assist in controlling inflation rates.
- 🛒 Supply of Essential Goods: Facilitating foreign currency access aims to ensure a steady flow of basic goods and services in the market.
- 🔍 Compliance Monitoring: Enhanced scrutiny of foreign currency transactions is established to prevent money laundering and financial terrorism.
- 🌐 National and International Oversight: The initiative involves both national compliance measures and the role of correspondent banks for external auditing.
Key Insights
📉 Importance of Monetary Stability: The introduction of the monetary reinforcement mechanism underscores the Central Bank’s commitment to maintaining monetary stability in Iraq. By providing foreign currency to national banks, the mechanism aims to ensure that these banks can meet the demands of their clients without experiencing liquidity shortages. This is crucial for sustaining economic growth and fostering trust in the financial system.
💹 Effective Liquidity Management: Salah’s emphasis on monetary sterilization reflects the Central Bank’s strategy to manage local liquidity effectively. By exchanging foreign currency for the dinar, the Central Bank can control the amount of money circulating in the economy. This careful management is essential for preventing excessive inflation, which can erode purchasing power and destabilize the economy.
🔒 Fixed Exchange Rate Benefits: The decision to maintain a fixed exchange rate of 1,320 dinars for every $100 plays a significant role in stabilizing the Iraqi dinar. A stable exchange rate can enhance predictability for businesses and consumers, making it easier to plan investments and expenditures. This stability is fundamental for fostering confidence among investors and promoting economic activity.
📉 Inflation Control Measures: Salah’s statement that the monetary reinforcement mechanism will help achieve stability in the general price level indicates a proactive approach to controlling inflation. High inflation can lead to economic uncertainty and reduced consumer spending, and thus, measures to mitigate inflation are critical for ensuring sustainable economic growth.
🏪 Facilitating Domestic Supply Chains: The focus on providing foreign currency to national banks is aimed at ensuring that essential goods and services are available in the domestic market. This initiative is particularly important in times of economic turbulence, as it helps to prevent shortages and keep prices stable. The smooth flow of goods is essential for maintaining public confidence in the economy.
🔍 Compliance and Oversight: The plan to enhance compliance monitoring through national and international measures reflects a commitment to transparency and accountability in financial transactions. This increases the integrity of the financial system and helps to build confidence among international partners and investors. The role of correspondent banks in auditing compliance is crucial in this regard.
🌎 Global Financial Integration: By aligning local banking practices with international compliance standards, Iraq is taking steps towards greater integration into the global financial system. This can pave the way for increased foreign investment and economic collaboration, which are vital for long-term growth.
In conclusion, the monetary reinforcement mechanism introduced by the Central Bank of Iraq represents a strategic effort to stabilize the financial landscape of the country.
By focusing on providing foreign currency to national banks, managing liquidity effectively, and ensuring compliance with international standards, the initiative aims to foster a more resilient economy capable of weathering financial fluctuations.
The measures outlined by Mazar Muhammad Salah are geared towards not only stabilizing the Iraqi dinar but also enhancing the overall economic environment, ensuring that essential goods remain available, and reinforcing the integrity of financial transactions.
The initiative is a significant step forward in Iraq’s journey towards achieving sustainable economic development and stability.
US official: US will not withdraw from Iraq, 4 jan
US official: US will not withdraw from Iraq
A report by the American website Breaking Defense revealed on Saturday that the main story for the year 2025 will be about developments in the situation in Syria and Lebanon after the regime change and its repercussions on the regional level, where an alliance of armed terrorist groups controls the government in the country.
The report, translated by Al-Maalouma Agency, stated that “In addition, this year is expected to reveal the future of Russian and Iranian influence in Syria, specifically Russian military bases in the country. But will Moscow reach an agreement with armed groups to keep the Hmeimim air base and the Tartus naval base as a focal point for projecting its power in the Mediterranean, or will 2024 be the end of the Russian presence in Syria? This question still awaits an answer, perhaps sooner than expected in 2025. ”
“After Syria, the region can be watched by its neighbor Iraq, which plans to end the international coalition mission in the country in September 2025,” he added. “It is clear that the United States will not withdraw from Iraq, and we are moving toward the kind of long-term security relationship that the United States enjoys with partners around the world,” he claimed.
“However, this coming year could put Baghdad under pressure if ISIS and al-Qaeda see a strong comeback in Syria, the fate of southern Lebanon is in flux as we enter the new year, and 2025 could see another major push toward normalizing relations between Israel and Saudi Arabia, something the Biden administration was trying to achieve before the Palestinian resistance movement’s attacks on October 7, 2023, derailed that process,” the report noted.
almaalomah.me
EXCERPTS FROM MARKZ, 4 JAN
EXCERPTS FROM MARKZ
Member: Where will the new rate show first?
MZ: Good Question . If it follows in Kuwaits footsteps –it will quietly be released. Maybe people will do some exchanging and then it will show publically on forex.
But, In today’s world and the speed of the internet- my guess is we will all see it at the same time …You guys will probably hear it first from folks like me and then we will be able to look at it …That’s my opinion.
MZ: A much more modernized of that banking system…but that is correct. My best contact who I trust due to the position he holds in Iraq….says de-dollarization is under full steam and they expect a new rate within a week or so .
Member: My sister assisted in the forming of their new government Constitution. My brother told me to buy and hold dinar! My sister said it would revalue once all agreed debts were paid!
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