I know a lot of you have been under the assumption the government of Iraq could not pay for the salaries in the Kurdistan Region. Nope you were wrong. As a broker who trades Crude Oil, I've known about this for years. OMG and then some. Read BELOW. Game of cat and mouse between the two.
Republic of Iraq. Ministry of Finance
Dashra / Decentralized Accounting
To the Government of the Kurdistan Region of Iraq Council of Ministers Ministry of Finance and Economy / General Directorate
Greetings....
For accounting / M. Accounts unification
Non-oil revenues
Please inform us of the reason for not transferring the non-oil revenues for the months of July, August and September until now, hoping to transfer the revenues in question to our current account (70018) opened at the Central Bank of Iraq as soon as possible.
With appreciation.
Spectrum Sami Muhammad
Minister of Finance
Economist: The Central Bank’s policy is moving towards globalizing Iraqi banks
Economic expert "Safwan Qusay" confirmed that the Central Bank's policy is moving towards globalizing Iraqi banks, while stressing that it will contribute to raising the status of these banks globally.
Qusay said in an interview: "The Central Bank's policy is moving towards consolidating the issue of globalizing Iraqi banks, and the process of ending dealings with the electronic platform will contribute to accepting local banks that have the ability to provide guarantees and international compliance conditions with international correspondent banks."
He added that "these correspondent banks can carry out the process of changing the Iraqi dinar to any global currency immediately, and for more than a million banks around the world, and there is a possibility to develop the performance of other banks in order to succeed in the international acceptance process, and there is still a possibility to import capital from different countries of the world and re-inject it into the local environment in the form of grants in different investment portfolios, and thus the possibility of achieving the goals of the Central Bank in the matter of development."
He pointed out that "the Central Bank will move from the issue of accepting local banks internationally to the issue of participating in the development process, and this will certainly contribute to achieving part of the government program's goals in employing the unemployed, and in forming productive Iraqi capital, especially since a portion of Iraqis own Iraqi dinars outside the banking system, and whenever we start the issue of convincing them to trust Iraqi banks, we will have new doors to operate this monetary mass."
He stressed that this step will contribute to raising the status of Iraqi banks globally, "meaning that they will succeed in the process of having a name in international financial transfer operations, and gradually confidence between banks will be strengthened, and there is what is called credit cover between Iraqi banks and international banks, and the level of confidence will be reflected in the credit cover."
He pointed out, "Whenever there are transfers and coverage at acceptable credit levels, this level may rise so that we succeed in the process of having Iraqi banks that are accepted internationally - and this is a step that does not exist - as Iraqi banks, especially public ones such as Rafidain and Rashid, have withdrawn from international financial transfers since the eighties of the last century."
Pointing out that "rehabilitating these banks, especially TPI Bank, can contribute to our having international acceptance for international correspondents for these banks." link
Iranian diplomat reveals the agenda of Al-Sudani's visit to Tehran
1/7/2025
The Iranian Ambassador to Baghdad, Muhammad Kazim Al-Sadiq, confirmed that Prime Minister Muhammad Shia Al-Sudani will visit the capital, Tehran, tomorrow, Wednesday, in response to an official invitation extended by Iranian President Masoud Pezeshkian.
Iranian semi-official media quoted Al-Sadiq on Tuesday as saying that Al-Sudani's visit to Tehran will last for one day, during which bilateral issues and regional and international developments, especially in Syria, will be discussed.
He explained that the visit also comes to follow up on the implementation of the agreements reached during the visit of Iranian President Masoud Pezeshkian to Baghdad.
The media office of Prime Minister Mohammed Shia al-Sudani announced last Sunday that the latter intends to make an official visit to Iran next Wednesday, January 8, 2025.
The office explained in a statement today that "the visit will include discussing bilateral relations between the two countries and ways to enhance them, in light of what was achieved during the visit of Iranian President Masoud Pezeshkian to Baghdad in September of last year, in addition to the developments witnessed in the region."
An informed source revealed, at the end of 2024, that Prime Minister Mohammed Shia al-Sudani will begin a visit to Iran at the end of this week, to discuss developments in the region.
The source told Shafaq News Agency that Al-Sudani will discuss several files with Iranian leaders, most notably the recent developments in Syria.
Al-Sudani had made several visits to countries in the region after the fall of Bashar al-Assad's regime, including Jordan and Saudi Arabia, where he discussed security issues with the leaders of these countries. Iraq also participated in the Aqaba Conference held in Jordan, with the participation of several countries, including the United States.
Iranian President Masoud Pezeshkian visited Iraq on September 11, and made a three-day tour that included Baghdad, Erbil, Sulaymaniyah, Najaf, Karbala and Basra.
On May 22, Al-Sudani also visited Tehran to participate in the funeral of Iranian President Ebrahim Raisi, who was killed in a plane crash.
An informed political source reported yesterday, Saturday, that the Iraqi Prime Minister received a message from US President-elect Donald Trump.
The source told Shafaq News Agency that Al-Sudani received a message from Donald Trump through a special envoy on an unannounced visit, which included several axes.
The source pointed out that the most prominent axes are the necessity of containing and controlling weapons outside the framework of the state, stopping the activity of factions linked to Iran, in addition to Iraq not interfering in the Syrian file and supporting the formation of the new Syrian government.
Meanwhile, a government source told Shafaq News Agency that Iraq is working diligently to establish security in the region, and that the Prime Minister will present Iraq's vision in this regard during a visit to Iran.
⚖️ Stable Dinar Rate: The dinar has experienced minor fluctuations against the dollar but remains relatively unchanged overall.
⚠️ Urgent Meeting: An extraordinary meeting is scheduled between the Kurdistan government and the Iraqi parliament to address unpaid salaries.
😡 Kurdistan Discontent: The Kurdistan region is frustrated with the central government’s failure to pay financial dues, leading to potential threats of withdrawal.
🏛️ Political Tensions: The Kurds hold significant power in parliament and are considering drastic measures if their demands are not met.
🔄 Historical Context: The video discusses the longstanding tensions between Sunni and Shiite populations in Iraq and the implications for political stability.
💪 Focus on Personal Growth: The speaker encourages viewers to concentrate on their financial well-being and maintain a positive outlook.
Key Insights
📉 Fluctuations in the Dinar Exchange Rate: While the Iraqi dinar has shown stability, minor increases and decreases indicate underlying economic pressures. The absence of a significant “hockey stick” movement suggests that market expectations may not align with investor hopes, leading to a cautious atmosphere among currency traders. Continuous monitoring of the exchange rate is essential to identify potential trends that could affect investment strategies.
💰 Financial Strain on Kurdistan: The Kurdish government’s inability to receive financial dues has created a situation where employee salaries are jeopardized. Given that a substantial portion of Iraq’s economy relies on public sector employment, delays in salary payments could lead to widespread civil unrest. The Kurdistan Regional Government’s (KRG) frustrations reflect deeper systemic issues within the Iraqi government’s financial management.
🤝 Potential Withdrawal from the GOI: The Kurds’ threats to withdraw from the Iraqi government highlight the fragile nature of Iraq’s political landscape. If the KRG decides to act on these threats, it could lead to a power vacuum and increased tensions, potentially spiraling into conflict. This situation warrants close attention as it could significantly impact Iraq’s political stability and governance structure.
⚔️ Historical Sunni-Shiite Conflicts: The speaker references the historical animosities between Sunnis and Shiites as a backdrop to current political tensions. This longstanding divide complicates coalition-building efforts in the Iraqi parliament and can exacerbate conflicts, making it difficult for any government to maintain a unified front. Understanding this historical context is crucial for anyone analyzing Iraq’s political dynamics.
🔄 Oil and Gas Law Unresolved: The ongoing issues related to oil and gas laws, particularly Article 140, remain unresolved, which is a significant factor in the Kurdistan region’s discontent. The lack of clear regulations can lead to disputes over resource allocation and revenues, further straining relations between the KRG and the federal government in Baghdad.
🗳️ Political Leverage of the Kurds:
With the KRG holding over 70 seats in parliament, they possess considerable political leverage. This power could be utilized not just to demand financial dues but also to influence broader legislative agendas. The Kurds’ ability to mobilize their political strength may be a double-edged sword, potentially leading to both negotiations and conflict.
🌱 Personal Financial Growth in Uncertain Times: Amidst the political and economic turmoil, the speaker advises viewers to focus on building multiple streams of income. This guidance reflects an understanding that personal financial security is essential, especially when economic conditions are unpredictable. Encouraging self-reliance and proactive financial planning can help individuals weather the storms of macroeconomic instability.
