Parliamentary Oil Committee Rules Out Passing Oil And Gas Law During Current Session
energy Economy News – Baghdad The Parliamentary Oil and Gas Committee confirmed today, Friday, that there are disagreements over the management of resources, which led to the obstruction of passing the Oil and Gas Law, while it ruled out passing it in the current electoral cycle.
"The oil and gas law has been a demand since 2007, but attempts to legislate it have failed due to political differences and lack of agreement with the Kurdistan Region," said Bassem Naghmish Al-Gharibawi, a member of the parliamentary oil and gas committee, in an interview with the Iraqi News Agency, followed by "Al-Eqtisad News."
He explained that "the law was part of the current ministerial program, and it was supposed to be legislated during this parliamentary session, as committees were formed since 2023 to discuss it, and two drafts were presented: the first from the federal government and the second from the region, and joint committees were formed to hold meetings between the two parties."
He pointed out that "most of the technical issues were agreed upon, but the differences focused on administrative aspects, powers, and representation of the region and governorates in the Federal Oil Council, in addition to how to manage and distribute resources, as well as previous and current rights."
He explained that "the parliamentary oil committee has made intensive efforts with the leaders of the political blocs to clarify the importance of enacting the law, as it regulates the oil wealth that fully funds the state, and contributes to resolving the disputes between the federal government and the region, which contributes to achieving political and economic stability."
He added that "the most prominent point of disagreement between Baghdad and Erbil is related to oil resources and the region's commitment to the decisions issued by the Federal Court and the International Court," noting that "this law is one of the laws that complement the constitution."
Despite all the attempts, Al-Gharibawi stressed that "the committees that were formed were unable to reach a political consensus, which makes passing the law during this electoral cycle an unexpected matter." https://economy-news.net/content.php?id=53206
...just this week...fantastic news is telling us they are winning the battle finally with breaking the parallel market...they are telling us they nearly broke the parallel market and...
my contact told us [this] had to happen and if they could get the rate of the dollar of this parallel market down or very close to the “official” CBI rate, we would see the triggering of the “official” rate going even lower and for us this means more value to the Iraqi dinar.
Yes, the in-country revaluation close to a buck we have been waiting for. This then would allow the kickoff to the Project to Delete the Zeros...
my CBI contact...has told me all is going as planned and finally “real” success can be seen.
Shafaq News / Reuters reported, quoting senior diplomatic sources, that a meeting will be held in the capital Amman on Sunday, including Iraq, Syria, Jordan and Turkey, to discuss security cooperation and regional developments.
A Turkish diplomatic source told Reuters, in a news translated by Shafaq News, that the foreign ministers of the four countries will attend the meeting, in addition to defense ministers or military leaders, and the heads of intelligence organizations in the four countries.
The source added that officials will discuss cooperation in the fields of security and combating terrorism and organized crime, as well as regional developments.
This comes in confirmation of what was unique to Shafaq News Agency, on February 27, citing informed sources, which reported the imminent announcement of the formation of the strategic quadriple alliance between (Iraq – Turkey – Syria – Jordan).
The sources who spoke to the agency said that “the current situation and stage require speeding up the implementation of the tasks entrusted to the coalition by controlling the security of the region and preventing the movements of terrorist groups from practicing their combat activities, especially in the soft areas near the border strip connecting the allied countries or even within the cities.”
She added that “Turkey is trying to manage the coalition in line with its expansionist ambitions in the region, but Iraq rejected this and stipulated that the administration be participatory according to its strategic status and political and economic weight, because the tasks of the alliance are not limited to the security file only.”
She also pointed out that “security companies will oblige the allied countries to carry out their tasks in a real form through the exchange of intelligence information and the coordination of logistical and defense movement in an organized manner that achieves the desired goals,” explaining that “Syria will have a major role in dismantling terrorist groups at home, although part of it joined the interim administration in Damascus.”
According to the sources, “Jordan will have more than one mission, the first focused on dismantling the problems that may occur in the future within the alliance due to the overlap in some of its tracks, in addition to conveying reassurance messages to the world, as Oman enjoys wide relations.”
These sources noted that “Iraqi parties in the Ministries of Foreign Affairs, Defense, Interior, Intelligence and Counter-Terrorism played a role in preparing important files and plans to be implemented to control the security of the region, and it is hoped that the quadripartite alliance will be officially announced after the end of the Arab Summit in Baghdad during the month of May.”
At the beginning of last January, Jordan signed an agreement with Syria providing for the establishment of a joint committee to ensure border security, during the visit of Syrian Foreign Minister Asaad Al-Shaibani to Oman, in which he discussed with his Jordanian counterpart Ayman Safadi the issues of arms and drug smuggling, Syrian refugees and economic cooperation.
Before that, Iraq sent intelligence chief Hamid al-Shatri to Damascus, and according to Syrian and Iraqi media, the meeting discussed the need for joint action to ensure that the Islamic State does not re-emerge.
The Central Bank of Iraq (CBI) has announced a substantial 45.1% increase in its gold reserves during the fourth quarter of 2024 compared to the same period in 2023, with reserves escalating from IQD 12.29 trillion to IQD 17.83 trillion.
This surge in gold reserves highlights the bank’s strategic focus on asset security amid potential economic instability. The video also references a Netflix movie titled “Leave the World Behind,” suggesting that the themes of preparedness and asset protection resonate with the current financial landscape.
While the CBI’s announcements regarding advancements in digital payments indicate a shift towards financial modernization and increased financial inclusion—from 20% to 40% in just two years—there are concerns regarding the significant decrease in bank deposits in Iraq during 2024.
The governor of the CBI, Ali Mosen Alal, mentioned the rising usage of ATMs and e-wallets, predicting a gradual decline in cash transactions as central banks worldwide pivot towards digital payment solutions.
The video concludes with a cautionary note for IQD investors, suggesting that while there is no immediate threat to IQD banknotes, the current trends in banking deposits warrant attention.
📈 Significant Growth in Gold Reserves: The CBI’s gold reserves surged by 45.1% in Q4 2024, signifying a strategic financial maneuver.
🎥 Cultural Reference to Preparedness: The video recommends watching “Leave the World Behind,” linking its themes to current economic anxieties and asset protection.
💰 Declining Bank Deposits: Reports indicate a notable decrease in banking deposits in Iraq throughout 2024, raising concerns for IQD investors.
💳 Rise of Digital Payments: The CBI reports a dramatic increase in ATM and e-wallet usage, contributing to enhanced financial inclusion.
🔄 Shift from Cash Transactions: A predicted decline in cash transactions aligns with global trends towards digital currencies and payment solutions.
🔒 Potential Risks for Investors: While IQD banknotes are currently secure, the decreasing bank deposits suggest a need for vigilance among investors.
🏦 Future of Digital Currency: The CBI is exploring the development of its own digital currency, indicating a significant evolution in Iraq’s financial landscape.
Key Insights
📊 Increase in Gold Reserves: The CBI’s gold reserves climbed to IQD 17.83 trillion, an increase that reflects a strategic shift towards asset security during times of economic uncertainty. This decision could be influenced by global economic trends that favor tangible assets as a hedge against inflation and instability. The move also demonstrates Iraq’s commitment to enhancing financial stability and trust in its monetary system.
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Cinematic Reflection on Economic Security: The recommendation to watch “Leave the World Behind” serves as a cultural reflection of current societal fears regarding security and preparedness. The film, produced by high-profile figures, illustrates the importance of having tangible assets like gold in uncertain times, resonating with the financial advice provided in the video. This connection underscores a broader societal trend where media influences public perception of economic preparedness.
📉 Concerns Over Bank Deposits: A significant drop in banking deposits raises alarms for the financial health of Iraq’s economy. This trend may indicate a lack of trust in the banking system or a preference for keeping cash at hand, which could hinder economic growth and stability. The video suggests that while IQD banknotes are not currently endangered, the ongoing decline in deposits could have long-term implications for the overall financial ecosystem in Iraq.
📈 Advancements in Digital Payment Systems: The CBI’s initiatives have resulted in a substantial increase in digital payment methods, with financial inclusion rates climbing from 20% to 40%. This growth is essential for integrating a larger portion of the population into the financial system, facilitating easier access to banking services, and promoting economic activity. The rapid adoption of ATMs and e-wallets indicates a shift in consumer behavior towards more modern payment solutions.
💻 Global Trends towards Digital Transactions: The predicted decline in cash transactions aligns with a global shift towards digital payment systems. As more consumers and businesses embrace technology for financial transactions, traditional cash-based economies may evolve significantly. This trend is not only a response to consumer preferences but also a necessity for improving efficiency and reducing transaction costs in the financial sector.
📊 Implications for IQD Investors: While the immediate outlook for IQD banknotes appears stable, the declining trend in bank deposits suggests that investors should remain cautious. Understanding the underlying factors contributing to this decrease will be crucial for making informed investment decisions. Investors may need to consider diversifying their portfolios or looking into alternative assets, like gold, as a safeguard against potential economic downturns.
🌐 Future Developments in Digital Currency: The CBI’s interest in developing its own digital currency signifies a pivotal moment for Iraq’s financial landscape. Such a move could enhance transaction efficiency, reduce costs associated with cash handling, and improve the overall economic framework. A digital currency could also promote greater transparency and reduce corruption, fundamentally transforming how Iraq’s economy operates in the digital age.
In conclusion, the developments highlighted in the video reflect the dynamic and evolving nature of Iraq’s financial landscape.
The CBI’s focus on increasing gold reserves and advancing digital payment systems indicates a proactive approach to addressing economic challenges.
However, the decline in bank deposits and the looming uncertainties for IQD investors call for careful consideration and strategic planning in navigating this complex environment.
The Governor of the Central Bank, Ali Al-Alak, announced on Saturday the imminent transformation of banks into smart platforms using artificial intelligence, pointing out that Iraq will witness a comprehensive digital transformation in the financial sector.
Al-Alak said: “Despite the great way that has been made to activate electronic payment methods, which is an essential step in digital transformation, we will put this stage behind our backs soon, because even the current electronic payment methods and tools are being changed and developed very quickly.”
He pointed out that “in the near future we will notice a great difference in the tasks and functions of banks, and we will see many banks change the nature of their work, and there will be a digital financial identity for each citizen through which he can conduct many operations in his accounts or identify his balances or even invest inside and outside Iraq,” stressing that “banks will soon turn into smart platforms that organize financial operations and benefit from technologies and artificial intelligence.”
He added that “this great work is accompanied by the work of the Central Bank, like the rest of the central banks, by thinking about having a digital currency under the supervision of the Central Bank. We are not talking about cryptocurrencies that are outside the framework of central banks, but about a digital currency issued by the Central Bank. This is a great work being worked on in the Central Bank in coordination with specialized organizations and entities internationally and in the Arab world, and directly with the Arab Monetary Fund.”
He continued: “We believe that this trend will be in the near future and will impose itself, and this represents solutions to major economic, financial and social problems, as well as will establish a tight framework for monitoring funds and reducing corruption, money laundering and financing of terrorism, because all financial movements will be within a tight and transparent system that can monitor all financial operations, and at the same time it is easy for its bearers to conduct large-scale operations even in other countries of the world.”
He added: “We expect young people, through the tools and human resources we have, to benefit from these tools. Indeed, we follow that many young people are investing through these wallets and tools in multiple fields outside Iraq, but some need caution and caution because there is a lot of circumvention that is happening, and we are working to prevent the citizen not to fall victim to any fraud.”
