Tuesday, April 22, 2025
APIKUR Pushes for Written Agreements in Ongoing Kurdistan Region Oil Export Negotiations, 22 APRIL
APIKUR Pushes for Written Agreements in Ongoing Kurdistan Region Oil Export Negotiations
4/20/2025 ERBIL —
Member companies of the Association of the Petroleum Industry of Kurdistan (APIKUR) reiterated their call for formal written agreements during the latest round of discussions with Iraqi and Kurdistan Regional Government (KRG) officials over the resumption of oil exports via the Iraq-Turkey pipeline.
The meeting, held on April 20, focused on the necessary conditions to restart oil flows that have been suspended for over a year. While all sides presented their positions on a range of technical and legal matters, no final agreements were reached.
APIKUR member companies emphasized the need for fair implementation of Iraq’s federal budget law, especially regarding the role and responsibilities of an independent consultant tasked with overseeing oil production and exports. They also stressed that any future arrangements must not infringe on existing contracts with international oil companies (IOCs), which have been upheld by Iraqi courts.
Crucially, APIKUR is seeking written agreements that provide clear guarantees on payment terms and the settlement of outstanding arrears. According to a statement from the organization, the member companies "did not receive satisfactory assurances" on these key issues during Saturday's meeting.
In an effort to move the talks forward, several APIKUR members have submitted draft sales and lifting agreements, along with detailed recommendations for the independent consultant’s scope of work, to both KRG and federal Iraqi officials.
Despite the lack of immediate progress, APIKUR reaffirmed its readiness to resume exports—contingent on securing signed agreements that protect the fiscal and economic terms of their existing contracts.
The talks come amid growing pressure to resolve the impasse, which has had significant financial implications for both the federal and regional governments, as well as oil companies operating in the Kurdistan Region. LINK
TIDBIT FROM MARKZ, 22 APRL
MarkZ
I keep hearing there is a rate tucked into the budget tables…and they are doing their best to stall the budget until they get the clearance to “GO”…
That is the rumor I am getting out of Iraq from Iraqi sources.
“Why is it important for American companies to visit Iraq?”
For stability of course. There are a number of US and International companies that signed with the private sector. They need this for the reform process.
An expert identifies the missing link to diversifying sources of income and achieving economic reform, 22 APRIL
An expert identifies the missing link to diversifying sources of income and achieving economic reform
Economic expert Qusay Safwan identified the missing link in the path to diversifying sources of income and achieving economic reform in Iraq. He noted that controlling corruption begins with the banking sector and is linked to understanding revenue risks and the behavior of the Iraqi dinar at border crossings.
During his appearance on the "Free Talk" program on Al Furat TV channel this evening, Safwan explained that "economic diversification cannot be achieved without regulating these outlets, which are a tool for protecting local production and developing investment." He indicated that "reforming the financial sector requires rehabilitating banks through mergers, partnerships, and specialization."
He stressed that "these goals are still far off, and the real beginning lies in developing the human resources working in the banking sector, especially since most Iraqi banks focus their grants on the housing sector."
Safwan explained that "the Central Bank's policy is geared toward supporting financial inclusion, as 40% of individuals use electronic banks, a matter linked to suspicions of money laundering." He called for "providing incentives to credit card holders and motivating them through tax exemptions and import facilitation, which would enhance the conversion of the dinar into hard currency through the Central Bank."
He pointed out that "the Central Bank alone cannot reform the Iraqi economy in light of the lack of control over border crossings and the citizens' lack of trust in banks," emphasizing that "investing in technology is costly, but necessary and yields tangible benefits for shops and businesses."
Safwan revealed that "Iraq has $100 billion in the US Federal Reserve," emphasizing "the need to eliminate intermediaries and build a direct relationship between producers and consumers," warning that "corruption is greater than the support available at the outlets."
He added, "Private banks were established as joint-stock companies, and their shares are now denominated below the dinar mark and are available to all." He called on the Central Bank to "address the dispute between it and the Companies Registrar regarding dividend distribution, which is prompting small shareholders to sell their shares to major investors."
Safwan concluded by saying, "Government banks need a comprehensive restructuring to drive development and create investment portfolios for agricultural, industrial, and commercial cities." He also highlighted the need to integrate the local market with global markets, similar to the Gulf banks, and attract $350 billion domestically. link
DINAR EXCHANGE: The Iraqi dinar is now fully backed by the country’s foreign currency reserves!!, 22 April
DINAR EXCHANGE
Iraq’s Central Bank has confirmed that the Iraqi dinar is now fully backed by the country’s foreign currency reserves, signaling a significant milestone in the nation’s monetary stability. This development underscores the government’s commitment to maintaining a robust financial system and instilling confidence in the national currency.
The Central Bank’s latest monetary policy report indicates that the ratio of official reserves to the broad money supply (M2) exceeds the standard benchmark of 20%, ensuring that the dinar is fully covered .
This financial strengthening aligns with Iraq’s broader economic reforms, including the introduction of a digital dinar aimed at reducing reliance on the U.S. dollar and curbing the parallel market . The digital currency initiative is designed to enhance financial inclusion and modernize the country’s payment systems.
While these developments mark progress, challenges remain. Iraq continues to address issues related to financial transparency and compliance with international banking standards, as highlighted by recent discussions with the U.S. Treasury . Ongoing efforts to reform the financial sector are crucial for sustaining economic growth and attracting foreign investment.
In summary, the full backing of the Iraqi dinar by foreign reserves represents a positive step toward economic stability, reflecting the government’s dedication to financial reform and modernization.
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