ERBIL (Kurdistan24) – The Association of the Petroleum Industry of Kurdistan (APIKUR) on Thursday in a statement welcomed US Secretary of State Marco Rubio’s efforts to facilitate the resumption of oil exports from the Kurdistan Region. Rubio reaffirmed US support for restarting exports in a call with Iraqi Prime Minister Mohammed Shia al-Sudani on Feb. 25, emphasizing the need to reopen the Iraq-Turkey Pipeline and uphold contractual terms for US companies operating in Iraq.
The prolonged closure of the pipeline since March 2023 has significantly impacted the Kurdistan Region’s economy, depriving it of a key revenue source and hampering international trade. The shutdown has resulted in an estimated loss of $27 billion in revenues for the Kurdistan Region, Iraq, and APIKUR member companies, while also creating market uncertainty and affecting regional stability.
APIKUR noted that recent statements from senior officials in Baghdad and Erbil suggest that oil exports could resume imminently.
The association reaffirmed that its member companies are prepared to restart exports immediately once formal agreements are established to ensure payments for past and future exports are in line with existing contractual and commercial terms. However, APIKUR stated that no outreach had yet been made to its member companies regarding such agreements.
The legal standing of APIKUR’s contracts with the Kurdistan Regional Government (KRG) was recently upheld by Iraqi appellate courts. Additionally, a key amendment to Iraq’s 2023-2025 budget law has provided a legal and political framework for resolving the dispute and securing agreements to resume exports.
APIKUR is committed to promoting the Kurdistan Region as an attractive destination for international oil and gas companies, service providers, and investors. The association advocates for the common interests of its members, serves as a unified voice in industry-related matters, and provides a platform for sharing public industry information and best practices.
MZ: I had one historic bond contact check in who said they still expect their payout this month. Wait a minute…..today is the last day of February. Hope that turns out to be accurate. But tons of folks are expecting dollars over this weekend.
MZ: I am still looking for a update on the group side which I do not have
MZ: But one Wealth management/redemption center contact told me they will be working both days this weekend. I don’t know what this means or what they will be doing…..but they are working a full day on Saturday and a half a day on Sunday.
Member: Mike Bara claimed yesterday Bond holders cashing out in Zurich & Reno.
MZ: I think we could see “In the coming days” bond money moving….maybe over the weekend….and then possibly see currency movement . I hope to have a group update over the weekend.
Member: How great would that be!!!!
MZ: If group chatter picks up I would feel really good about the next 4 or 5 days.
British Ambassador to Iraq Stephen Hitchen sent a message to the Iraqis on the occasion of the end of his duties.
“Dear Iraqis, I will leave your dear country in a few days, and I would like to express my deep gratitude for your friendship and hospitality over the past two years,” Hitchen said in his letter.
He added: “I will tell you a secret, my wife is angry with me, and this is not new, but this time it has a specific reason! She watched videos of me enjoying the beauty of your country, she saw me on the top of the twisted minaret, and on the banks of the Euphrates in Ramadi, and she saw me tasting the Muskov, Dolma, Baja, Al-Zarda, Al-Dhina and the soil of kings, she saw me in the mountains of Barzan and the marshes of Dhi Qar, and in the churches of Baghdad and the the Monastery of Mar Mati, and among the shrines of the imams in Samarra, Najaf, Karbala and Kazimiyah, and she also saw me celebrating the Prophet’s birth in Al-Azamiyah. And the result? She is very angry and insists that we come back one day as a tourist!” He continued: “I learned a lot from you, I learned the true meaning of courage, kindness and tact, and I have seen how you – despite all the challenges – put the honor of the guest in the first place, and I have also added to my vocabulary some new Iraqi words: Stoney, Sabai, Balm, I Agh!” He continued: “I was lucky to see Iraq these days at its best since the 1970s, and despite significant progress, there are still challenges, and I am proud that the United Kingdom is working with you to face them, and the economy remains the biggest of these challenges: we announced exports worth $15 billion during Prime Minister Mohammed Shia Al-Sudani’s visit to London, and in the field of
education, we launched 12 new university partnerships, and the University of London in Erbil opened.” He added: “With regard to climate change, which may threaten stability and progress, we have signed a new agreement in this regard, and announced large British investments in the management of water resources, and the threat of drug and human smuggling is no less serious than terrorism, so we are working with you to build a new agreement to support the police and strengthen border security. Finally, we all know that success cannot be achieved without empowering half of society, and that is why we started a dialogue to promote women’s participation politically and economically within a framework of respect and cooperation.”
The British ambassador said in his message: “I have witnessed an important transformation in Iraq and its status in the world. The talk was previously about how Iraq’s problems affect the region, but today, the focus has become on how to protect Iraq from the crises of the region. Iraq is no longer just an item on the international agenda, but has become a participant in its formulation. Your experience and wisdom have enormous value, especially for your neighbors in Syria, and they seek to get out of the legacy of the past. Our partnership today has become a partnership of ander, and I did not feel more proud of the moment of welcoming Prime Minister Mohammed Shia Al-Sudani in his meeting with His Majesty the King as an honorable guest. The weather was cold, but the welcome was warm.” He added: “I do not want to exceed the limits of your hospitality, but allow me to share my hopes for Iraq. First, I wish this great country prosperity and stability, but with rapid population growth (2.3% annually) and low oil prices since my arrival, a rapid economic reform is necessary that revives the private sector and invests in the Iraqi people.”
He continued: “Secondly, governance precedes political rivalries, and you have a test coming with the elections, there are two tracks in front of you: either the formation of a new government quickly that enhances the momentum of progress, or a long delay that may drain what has been achieved during the past two years, the nationalism requires making concessions, and quickly.” Finally, Hechen says: “You alone are able to solve your problems, you have the creativity, intelligence and flexibility to overcome the challenges, but we hope to be by your side in this march, not only because we want to help, but simply because we find in you exceptional comfort and warmth.” He concluded by saying: “It seems that I have prolonged the conversation, and I do not want to offend the prestige of ‘Abu Naji’, but I’m about to cry! It’s time to go and reconcile with my wife, all hail and God.”
Chapter Summary: The Global Banking Developments in Iraq and Vietnam
Introduction
In this chapter, we explore the recent and significant developments in the banking systems of Iraq and Vietnam as reported by the Goldilocks Global Banking News.
The focus centers on the revaluation of currencies, specifically the Iraqi dinar and the Vietnamese dong, within the context of a shifting global financial landscape.
This content emphasizes the importance of these developments, which include new banking agreements, the introduction of digital currencies, and enhanced access to international markets. Key vocabulary terms such as market rate, digital currency, and Islamic bonds will be defined and highlighted to enhance understanding of the implications for investors and stakeholders.
Key Developments in Iraq
Banking Agreement with Emirates Islamic Bank
The Central Bank of Iraq (CBI) has signed a significant banking agreement with Emirates Islamic Bank.
This agreement allows individuals in Iraq to purchase Islamic bonds, necessitating that the Iraqi dinar be available at an international or market rate.
The transition to a market rate is essential for the bonds to be sold in the global market, indicating a move toward Iraq’s currency being recognized internationally.
Introduction of Digital Currency
Iraq is planning to introduce a digital currency, specifically a digital dinar.
The CBI has previously hinted at making “radical changes” to modernize Iraq’s financial system.
The switch to a digital dinar could enhance accessibility, efficiency, and transparency in transactions, impacting the dinar’s exchange rate positively.
Digital currencies are expected to facilitate global banking integration, potentially decreasing the dominance of the US Dollar and elevating the value of other currencies, including the dinar.
Progress in Vietnam
State Securities Commission Announcement
The State Securities Commission of Vietnam announced that the Vietnamese dong will be available for trade on the country’s two stock exchanges.
This new status allows the dong to participate in the global market, increasing its exposure to foreign investors and financial institutions.
Multilateral Agreement for Expanded Access
Vietnam has signed a multilateral agreement with various countries in the Asia-Pacific region to enhance the accessibility of the Vietnamese dong on international platforms.
This is described as a “coming out party” for the dong, which has historically been undervalued and suppressed.
The lack of logical reasons for this suppression, particularly given Vietnam’s economic growth, highlights the milestone this development represents.
Implications of Developments
Market Accessibility and Currency Value
The ability of individuals in Iraq and Vietnam to engage with international financial markets is expected to elevate the respective values of the dinar and dong.
The global integration of these currencies through regulated exchanges will introduce a level of oversight previously absent, adding legitimacy and stability to their trading environments.
The discussions around these developments suggest that Iraq and Vietnam are positioning themselves ahead of other nations, including the United States, in adopting innovative financial practices.
Impact on Global Financial Systems
The simultaneous advancements in both Iraq and Vietnam indicate a broader trend toward digitalization and modernization in global banking systems.
The transition to digital currencies and enhanced market access may lead to a reconfiguration of global financial power dynamics, with the potential for increased currency competition and shifts in investment flows.
Conclusion
In summary, the recent banking developments in Iraq and Vietnam signify a crucial shift toward greater financial integration and modernization in both countries. The move to allow the Iraqi dinar and Vietnamese dong to participate more fully in the global market could have profound implications for their respective economies and the broader international financial system. As these nations take steps to enhance their banking infrastructures—through agreements, digital currencies, and international collaborations—they also pave the way for a future where their currencies may gain increased value and recognition. These developments not only reflect progress but also highlight the interconnectedness of global finance, necessitating vigilance and adaptability from investors and stakeholders around the world.
Throughout this chapter, we have highlighted the essential updates on the RV GCR (Revaluation of the Iraqi dinar and Global Currency Reset) and the importance of staying informed about these changes, as they could impact numerous financial outcomes in the near future.
Deputy Prime Minister for Energy Affairs and Minister of Oil Hayyan Abdul Ghani announced the imminent export of Kurdistan Region oil.
Abdul Ghani said in a press statement during his visit to the port of Khor Al-Zubair to review the operations of connecting the gas pipeline, that “Iraq will announce in the coming hours the start of the region’s oil export operations through the oil marketing company {Sumu} through the Turkish port of Ceyhan.”
He explained that the exports will be “at an initial rate of 185,000 barrels gradually escalating to reach the energy specified in the federal budget.”
The Minister of Oil supervised in the field the implementation of the project of extending the dry gas transmission pipe from Khor Al-Zubair to Nazem Shatt al-Arab with a length of 40 km and a diameter of 42 knots to ensure the access of gas to electric power plants.
On February 23, the Kurdistan Regional Government announced an agreement with the federal government to resume the export of crude oil from the region’s fields according to the available quantities.
Turkey stopped the pipeline in March 2023 after the International Chamber of Commerce ordered Ankara to pay $1.5 billion to Baghdad in compensation for unauthorized exports between 2014 and 2018.