AJ: I got alot of question about the Kurdistan salaries now getting paid., 6 FEB

 AJ

I got alot of question about the Kurdistan salaries now getting paid. So I did a outline to highligh the key points of the decades long dispute between the Federal Gov. Baghdad and Kurdistan Erbil. Oil Revenue Dispute Between Baghdad and Erbil - Key Points: Production Costs Comparison: Basra Oil: Production costs in Basra, where most of Iraq's oil is sourced, hover around $6 per barrel. This is due to the ease of extraction from vast, onshore fields and established infrastructure. Kurdistan Oil: The cost for Kurdish oil is set at $16 per barrel, reflecting higher operational costs due to geographical challenges, security concerns, and less developed infrastructure. This price also incorporates transportation costs to get the oil to market via Turkey. Federal Revenue Loss: The Iraqi federal government claims a significant loss in revenue because Kurdistan has been exporting oil independently through a pipeline to Turkey, rather than through the State Oil Marketing Organization (SOMO). This bypass has led to Baghdad losing control over these revenues, which are estimated at around $14 million daily at one point, although this number can fluctuate with oil prices and export volumes. Salary Delays: The dispute directly affects salary payments in Kurdistan. Since the KRG was not sending its oil through SOMO, Baghdad withheld the region's share of the federal budget, which includes funds for salaries. This has resulted in chronic delays, with civil servants sometimes waiting months for their wages, severely impacting their livelihoods. 2014 International Arbitration Ruling: In a significant legal development, a 2014 international arbitration case concluded in 2023 with the International Court of Arbitration ruling that Turkey must pay Iraq's federal government around $1.5 billion. This was due to Turkey's role in facilitating Kurdish oil exports without Baghdad's approval, which was seen as a breach of a 1973 pipeline agreement. Recent Agreements: A new deal has been struck where Kurdish oil will now be exported under SOMO's oversight at $16 per barrel. This is intended to normalize the situation by ensuring these revenues enter the federal budget, from which salary payments can be made. Geographical Context: Basra is located on the shores of the Persian Gulf, providing direct access to one of the world's busiest shipping routes, thus lower transportation costs. Kurdistan, landlocked, relies on pipelines through Turkey for oil exports, increasing both the cost and logistical complexity. Economic Impact: The financial strain isn't just on Kurdistan; the broader Iraqi economy feels the impact as well, since national budget planning relies on predictable oil revenues. The dispute has also led to investor uncertainty, affecting economic development in both regions. Political Implications: This ongoing saga reflects deeper issues of autonomy, federalism, and resource control in Iraq. It's not just about economics but also about the balance of power between Baghdad and Erbil. The hope is that recent agreements and the arbitration ruling will stabilize the situation, ensuring timely salary payments and restoring a more integrated approach to Iraq's oil wealth.

1:58 PM · Feb 5, 2025

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Joint statement by the Sudanese Office and the Central Bank on the modernization of the banking sector, 6 FEB

  Joint statement by the Sudanese Office and the Central Bank on the modernization of the banking sector

Joint statement from the Office of the Prime Minister and the Central Bank of Iraq,

 Banking reforms constitute an important pillar of the economic reform adopted in the government program. In order to complete the important steps that the government has started in this framework since it began its work, and in order to achieve a package of development targets that require banking development, the government,

 in cooperation with the Central Bank of Iraq, has embarked on a comprehensive initiative that includes a comprehensive strategic banking reform process that constitutes a turning point in the history of economic development in Iraq, and is consistent with the extent of commitment to raising the level of banking standards, enhancing financial flexibility, and supporting the competitiveness of the financial system.

These comprehensive reforms aim to keep pace with developments in the countries of the region and the world, and contribute to opening partnerships and prospects for communication with the outside world on a broad scale in modern banking and financial transactions, as the Central Bank works to implement and develop regulatory and supervisory frameworks with international partners, which contributes to achieving sustainable growth and development of the banking sector, just as the government works to support the reforms and efforts of the Central Bank of Iraq in developing the state of the banking sector.

These reform efforts focused on the following main areas:

1- Strengthening ownership structures and governance frameworks, by enhancing transparency and accountability, through measures including the creation of diverse ownership structures, and ensuring independent oversight by boards of directors over operations and committees.

2- Raising the level and standards of service, by increasing access to basic financial services for all members of the Iraqi people, through enhancing efficiency, increasing the supply of products, and modernizing the infrastructure of the banking sector.

3- Harmonization and conformity with international standards, by imposing adherence to recognized frameworks and practices in the areas of combating money laundering and combating the financing of terrorism, as well as commitment to financial transparency in order to ensure smooth banking services and support businesses and citizens’ needs.

4- Enhancing financial flexibility, by enhancing the financial safety of Iraqi banks and setting strong requirements regarding capital and cash liquidity, to protect customer deposits and protect the economy in the face of local and international challenges.

This initiative comes within the framework of a broader strategy aimed at modernizing the banking sector, which the Central Bank of Iraq is currently developing in partnership with Oliver Wyman, a leading global management consulting firm. The ongoing reforms being implemented with government banks enhance the integration of this strategy, representing a turning point in the future of the Iraqi financial system.

The implementation details of these reforms will be presented later.

From this standpoint, the government and the Central Bank affirm the adoption of a common reform vision, which is to establish a modern, transparent and comprehensive banking system that supports the aspirations of the dynamic economy of the Iraqi state.  link

TIDBIT FROM JON DOWLING, 6 FEB

  Jon Dowling

 It’s all coming to a head. Russia invites Mexico into the BRICS, while Iran is moving fast with the BRICS for safety as Trump cornered them.

 This is yet another move to free up Iraq. 🇮🇶 

Meanwhile, the USPS moves to suspend all packages 📦 coming in from China and Hong Kong immediately.

 Watch for a full scale audit of the Fed and moreover the Gold sooner rather than later. Everyday will be like a new Christmas surprise

FIREFLY: Banks are training on cross-border payments! @DINARREVALUATION #iraqidinarinvestor

 

Al-Sudani, Al-Mashhadani meet, three issues on agenda, 6 FEB

 Al-Sudani, Al-Mashhadani meet, three issues on agenda

Shafaq News/ Prime Minister Mohamed Shiaa Al-Sudani and Speaker of the Parliament Mahmoud Al-Mashhadani emphasized, on Wednesday evening, the importance of the integration between the executive and legislative branches to move forward in achieving the objectives of the government program.

Al-Sudani media office stated that he met with Al-Mashhadani. The meeting included a review of the general situation in the country, as well as discussions on political, economic, and service-related issues.

The discussions underscored the shared commitment to integrating efforts between the executive and legislative branches to achieve the objectives of the government’s program, complete economic reforms, and ensure sustainable development, ultimately benefiting Iraqi citizens and addressing their aspirations.

Prime Minister Al-Sudani commended the Council of Representatives for approving the amendment to the Budget Law, which enables the government to implement its program in accordance with priorities dictated by service and living conditions across all governorates.

https://economy-news.net/content.php?id=52551

IRAQ UPDATE, 6 FEB

 DINAR GURUS UPDATE

Highlights

• 🌍 Iraq is enhancing its cross-border payment capabilities to become a global economic player.
• 🔑 The training program for cross-border payments is seen as essential for Iraq’s currency revaluation.
• 📈 A robust financial system is crucial for attracting foreign investments and ensuring currency stability.
• 🏛️ There is a high-ranking American official’s visit to Baghdad to discuss military and strategic matters.
• 💱 Speculations about an upcoming adjustment in Iraq’s exchange rate are gaining traction.
• 🔍 Iraq’s new banknotes include innovative features to assist the visually impaired, showcasing financial inclusivity.
• ⏰ The urgency surrounding budget amendments indicates significant upcoming economic changes.

Key Insights

• 🌐 Cross-Border Payments as Economic Indicators: The focus on improving cross-border payments highlights their importance as a key indicator of economic health. For Iraq, establishing a reliable and efficient payment system is critical to integrate into global markets and attract foreign investors, laying the groundwork for a stronger currency and economic stability.

• 🔄 Currency Revaluation and Trust: The video emphasizes that gaining international trust is vital for Iraq’s currency revaluation. Without a credible financial system that can support international transactions, Iraq’s currency will struggle to gain acceptance globally. The training program aims to address transparency and security, which are essential components in building this trust.

• 💼 Financial System Capacity: The mention of a robust financial system indicates that Iraq is aware of the need for structural reforms to support international transactions. As Iraq’s financial system becomes more appealing, it can lead to an increase in demand for its currency. This directly correlates with the potential for currency revaluation and greater economic independence.

• 🏦 Impending Budget Amendments: The delay in the approval of the budget tables suggests that the Iraqi government is taking a cautious approach to fiscal management. The urgency conveyed in the discussions hints at the importance of these amendments for economic stability and growth, as well as the potential for great changes in the economic landscape.

• 🇺🇸 International Relations and Economic Strategy: The upcoming visit by a high-ranking American official underscores the importance of international relations in shaping Iraq’s economic strategy. Such visits often lead to discussions that can facilitate economic support or partnerships that benefit Iraq, especially in military and strategic contexts.

• 📊 Exchange Rate Speculations: The speculation around the adjustment of Iraq’s exchange rate reflects the anticipation of significant economic changes. If the government moves to adjust the exchange rate, it may indicate a shift towards a more competitive and appealing currency for international markets, further tied to the success of their financial reforms.

• ♿ Inclusivity in Financial Systems: The introduction of new banknotes with features for the visually impaired demonstrates Iraq’s commitment to inclusivity in its financial systems. This move can enhance the credibility of the financial institutions and reflect a modern approach to banking that considers the needs of all citizens, potentially attracting more investment and support from international organizations focused on inclusivity.

ARIEL: A Digital Asset Conference: The Green Light (Flip The Switch) @DINARREVALUATION #iraqidinar