NEWSROOM FROM CHELLA HIGHLIGHTS CC NOTES, 1 FEB

 NEWSROOM FROM CHELLA HIGHLIGHTS CC NOTES

Highlights

Summary

In this week’s episode of “Newsroom,” host Charles Smith delves into significant developments in Iraq’s economic reforms and regulatory improvements, particularly focusing on the launch of financial integrity training programs for the National Bank of Iraq (NBI).

 Spearheaded by the Institute for Financial Integrity (IFI) in collaboration with the Central Bank of Iraq (CBI), this initiative aims to enhance compliance with international standards, particularly in anti-money laundering (AML) and counter-financing of terrorism (CFT).

 The training will utilize modern e-learning platforms to educate NBI employees and foster a community of financial integrity experts.

Moreover, discussions on Iraq’s digital payment systems, ongoing negotiations between the Kurdistan Regional Government (KRG) and the central government, and efforts to bolster economic ties with the United States are highlighted. Smith emphasizes the importance of international investment, stability in Iraq’s economic policies, and the critical role of gold reserves in strengthening Iraq’s financial position. The episode concludes with updates on legislative efforts aimed at improving oil revenue management and enhancing transparency within the oil sector.

• 📊 Launch of Financial Integrity Training: The IFI has initiated training programs for the NBI to improve compliance with international financial standards.
• 💻 Digital Payment System Initiatives: The Iraqi government is focusing on digital financial systems to modernize and improve regulatory frameworks.
• 🤝 US-Iraq Economic Ties: Meetings between Iraqi officials and US business leaders aim to strengthen economic cooperation and investment.
• 🏛️ KRG Budget Negotiations: Continued discussions between the KRG and Iraqi federal government regarding budget and salary issues show progress despite no financial agreements yet reached.
• 💰 Gold Reserves as Economic Stability : Iraq’s substantial gold reserves are seen as a safe haven amid global economic uncertainties, reinforcing confidence in the national currency.
• 🌍 World Bank Collaboration: Ongoing discussions with the World Bank focus on funding for critical infrastructure projects, including railways and electrical interconnections.
• 📈 Oil Resource Management Amendment: The Iraqi Parliament is preparing to vote on an amendment to improve transparency and management of oil resources, benefiting both the federal government and the KRG.

Key Insights

• 🏦 Strengthening Regulatory Framework: The training programs launched by the IFI represent a significant commitment to enhancing financial integrity in Iraq. By focusing on compliance with AML and CFT standards, these initiatives aim to integrate Iraq into the global financial system, facilitating international transactions and investments. This move is essential for building trust with foreign investors and ensuring that Iraq’s financial systems are robust against illicit activities.

• 📈 Digital Payment Transformation: The Iraqi government’s push for fintech innovation and digital payment systems reflects a broader trend towards modernization in emerging economies. By setting up regulatory frameworks for digital banks and partnering with fintech institutions, Iraq is positioning itself to compete in a digital-first global economy. However, the persistence of cash as the dominant payment method indicates that significant cultural and infrastructural shifts are required for successful implementation.

• 🤔 Impact of Political Stability on Economic Policy: The dismissal of concerns regarding potential US sanctions under the Trump Administration signals a degree of political stability in Iraq. This stability is critical for fostering a conducive environment for foreign investments. However, the changing political landscape in the US could still impact Iraq’s economic policies, emphasizing the need for Iraq to remain adaptable and proactive in its international relations.

• 🌐  Infrastructure and International Investment: Iraq’s focus on infrastructure development, particularly in partnership with the World Bank, illustrates a strategic approach to economic diversification. By improving transportation and energy infrastructure, Iraq aims to attract international investments that can spur economic growth and create jobs. This is particularly important given the country’s reliance on oil revenues and the need to reduce vulnerability to fluctuating oil prices.

• ⚖️ Transparency in Oil Revenue Management: The proposed amendment to the federal budget law aims to legitimize oil management and improve transparency in the sector. By setting a clear framework for oil production costs and revenue sharing between the federal government and the KRG, Iraq hopes to resolve longstanding disputes and enhance the efficiency of its oil resource management. This is a crucial step in stabilizing state revenues and fostering trust among regional stakeholders.

• 📊 Gold Reserves as a Buffer: Iraq’s impressive gold reserves, now valued at approximately $14 billion, serve as a financial buffer against economic volatility. Gold traditionally acts as a hedge during times of uncertainty, and its role in Iraq’s financial strategy is likely to grow as the country navigates external economic pressures. The management of these reserves will be vital in maintaining financial stability and confidence in the Iraqi dinar.

• 📅 Ongoing Reforms and Future Prospects: The ongoing economic reforms, coupled with international partnerships, signal a positive outlook for Iraq’s economic future. The commitment to boosting the non-oil economy and creating job opportunities indicates a strategic pivot that could lead to sustainable growth. As Iraq continues to engage with international financial institutions and strengthen its regulatory framework, the potential for economic diversification and stability increases, providing a glimmer of hope for the country’s long-term development.

In conclusion, the developments in Iraq’s economy outlined in this week’s Newsroom provide a comprehensive view of the challenges and opportunities facing the nation. The focus on financial integrity, digital innovation, and infrastructural improvements, alongside a commitment to transparency and international cooperation, sets a promising stage for Iraq’s future economic landscape.

MNT GOAT: The governor of the CBI knows the Dr Shabibi plan and it can not be stopped!! #iraqidinar

 

FRANK26: "A TEMPORARY SOLUTION... MAYBE?", FEB

 KTFA

FRANK26: "A TEMPORARY SOLUTION... MAYBE?".......F26

Budget Amendment Proposals Spark Disagreements Between Iraqi Government, Parliament

1/27/2025

Proposals to amend the budget law have sparked disagreements between the Finance Committee in the Iraqi parliament and the government, delaying the vote on the amendment related to the financial dues of the Kurdistan Region’s oil companies.

The Finance Committee proposed to restrict the difference from the revenues of the Kurdistan Region’s oil exports, after compensating the Kurdistan Regional Government from the sovereign expenses for production and transportation costs, as revenue for the state treasury, linking this process to the settlement of financial dues accumulated over 18 years between Erbil and Baghdad.

The government submitted its written comments on the amendments of the Finance Committee, stressing that these amendments conflict with the mechanism of SOMO’s work, and that all oil revenues must be transferred to the state treasury before disbursing financial dues. If no agreement is reached on these amendments to the budget law, the text will be reworded to include the delivery of all oil and gas to the Kurdistan Region.

The controversy over the vote on three draft laws related to the Kurds, Shiites and Sunnis, during the Iraqi parliament session held on January 21, 2025, caused the first paragraph of the session’s agenda, which was related to amending the general budget law, to be bypassed.

The amendment addresses Article 12 on the production, transportation and delivery of the Kurdistan Region’s oil, setting the cost of production and transportation per barrel at $16 temporarily, until an estimated price is determined by an international consultant, with the Kurdistan Region committing to delivering 400,000 barrels of oil per day.

Dara Sikani, a member of the Legal Committee in the Iraqi Council of Representatives, explained to Rudaw Media Network that “the vote on this amendment has not yet taken place, as the government has submitted a new version of the amendment to the parliament for a vote, and we, as Kurdish representatives, did not agree to this version.”

The new version was submitted in writing by the head of the Coordination Board between the provinces and the government’s representative, Ahmed Al-Fatlawi, to the presidency of the Iraqi parliament, and the letter included notes on the changes proposed by the Finance Committee to the draft amendment law.

"Settling financial dues for 18 years"

According to the proposal of the Finance Committee in the Iraqi Parliament, a copy of which was obtained by the Rudaw Media Network and added to the draft amendment, "the difference between production and transportation costs and the selling price is recorded as revenue for the state's public treasury", taking into account paragraph (a) of Article 12 of the General Budget Law.

This condition was not present in the wording of the draft budget amendment law sent by the Iraqi Council of Ministers to the parliament.

Paragraph (a) of Article 12 of the Iraqi General Budget Law refers to the importance of settling financial dues for the period from 2004 to 2022 between the Kurdistan Region and the federal government. This settlement is made after the dues are audited by the Federal Board of Financial Supervision in coordination with the Board of Financial Supervision in the Kurdistan Region, based on the rights and obligations stipulated in the budget laws for those years.

The government: Either an agreement or handing over all oil and gas revenues

According to the official letter obtained by the Rudaw Media Network, the government made comments on the proposed amendments submitted by the Finance Committee in the draft law.

The letter stated: "The government does not support the proposed amendment because it reduces the revenues of the public treasury compared to the government text, and contradicts what is being implemented in the rest of the regions of Iraq according to the current Financial Management Law, and is not consistent with the mechanisms of selling oil by SOMO, which receives the sales revenues in full as documentary credits and deposits them in the oil and gas revenues account of the Ministry of Finance."

The Iraqi Ministry of Oil works on service contracts to invest in the oil and gas sector, whereby sums of money are paid to companies instead of allocating shares to them, while the Kurdistan Region relies on contracts to participate in the revenues of the sold oil.

The government explained that its amendment stipulates exporting oil through SOMO according to the prices and mechanisms applied in all regions of Iraq, with all oil revenues being delivered to the public treasury as final revenues without any deductions. Compensation for oil production costs is done separately from revenues, according to a mechanism determined between the federal Ministries of Finance and the Kurdistan Regional Government.

Another note from the government indicated that the amendment of the Finance Committee does not include "delivering the full revenues, but rather deducting the production costs from them before delivering them," and considered that this mechanism "is not consistent with the contexts of SOMO's work."

The government's letter stated that the proposed amendment to the Finance Committee "does not guarantee the receipt of revenues without additional deductions, or according to estimates of production costs not agreed upon with the federal government," and that "the proposed addition violates the text of Article (13/First/A) and restricts Article (12/Second/A) of the current budget law, which are important articles that the federal government insists on keeping as they are."

Paragraph (A) of the first item of Article 13 of the budget law also states that all revenues from the sale of oil delivered from the Kurdistan Region are deposited in a bank account affiliated with the federal Ministry of Finance, opened by the Central Bank. Paragraph (A) of the first item of Article 12 deals with the delivery of 400,000 barrels of oil per day from the Kurdistan Region to SOMO, to be sold by the company.

At the end of its letter, the government confirmed its rejection of the proposed amendment to the Finance Committee, explaining that it reduces the share of the general treasury and has a negative impact on the revenues of the federal government, in addition to its contradiction "with the contexts applied in the rest of the regions of Iraq and the mechanisms of SOMO."

The amendment to the General Budget Law has passed the first and second reading stages, and all that remains is a vote on it.

The government preferred, if Parliament fails to pass the amendment, to formulate it in a way that guarantees the payment of “revenues from the sale of oil, its derivatives and gas, locally and abroad, as final revenue to the public treasury without any deductions, and in accordance with the procedures adopted in the rest of the regions of Iraq and the amended Financial Management Law of 2019.”

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TIDBIT FROM MNT GOAT, 1 FEB

 Mnt Goat  

 The governor of the CBI knows the Dr Shabibi plan and it can not be stopped. It can be delayed but the reforms move ahead in spite of the U.S. foreign policy of the past. 

However, it also took a decent prime minister like Al-Sudani to move it ahead regardless. Remember the Nori Al-Maliki days. Yes, this was yet 8 more years of wasted time...

All we need to do is take a good hard look at the last couple years of progress under Al-Sudani and we can clearly see a change. This took strong leadership and dedication to the White Paper reforms. This is where we are today. They are now at the point in spite of all the corruption they have made it to the finish line but now they need a push over it...

JON DOWLING: We are finally in the climax point folks!!! @DINARREVALUATION #iraqidinarinvestor

 

KRG, Baghdad Delegations Continue Negotiations on Salaries, Budget, 31 JAN

 KRG, Baghdad Delegations Continue Negotiations on Salaries, Budget

Jan. 31, 2025

ERBIL (Kurdistan24) – A meeting between delegations from the Kurdistan Regional Government (KRG) and the Federal Government of Iraq concluded on Friday, as discussions centered on critical budget and salary issues for the Kurdistan Region.

While no ultimate agreement was reached, officials reported important progress, and negotiations are set to continue.

Kurdistan24 correspondent Dylan Barzan reported from Baghdad that the meeting, primarily planned to take place at the residence of Iraq’s Foreign Minister Fuad Hussein, was relocated to the Baghdad Hotel due to the large number of participants from both sides.

The meeting was chaired by Fuad Hussein, who also serves as Iraq’s Deputy Prime Minister for Financial Affairs.

Key Discussion Points

According to Kurdistan24 sources, the discussions revolved around three primary financial matters:

Determining the total funds required by the KRG Ministry of Finance to cover employee salaries for the entirety of 2025.

Separating the pension list for employees reaching the retirement age of 60 this year, ensuring they receive their 12-month retirement compensation.

Preparing the salary review balance for December 2024 to facilitate accurate financial planning.

Ongoing Talks and Mutual UnderstandingV

Following the meeting at Rashid Hotel in Baghdad, KRG Finance Minister Awat Sheikh Janab addressed reporters, expressing optimism concerning the discussions.

“Our meetings with the Iraqi delegation will continue tomorrow,” Janab stated. “We discussed the salary distribution schedule, employee and retiree lists, and there is a positive mutual understanding. We hope that tomorrow’s session will lead to the resolution of outstanding issues and the disbursement of necessary funds.”

The three-hour meeting denoted a crucial step in the ongoing negotiations between Erbil and Baghdad.

The Kurdistan Region has recurrently urged a clear financial mechanism to ensure the timely and consistent payment of public sector salaries, an issue that has been a longstanding point of contention between the two governments.

Path Forward

While no definitive resolution was reached in Friday’s meeting, the commitment to additional negotiations indicates a positive approach to tackling the financial challenges facing the Kurdistan Region.

The continuance of discussions on Saturday is likely to bring further clarity to the budgetary framework and salary disbursement mechanisms, with both sides expressing a willingness to find a sustainable solution.

https://www.kurdistan24.net/en/story/822446

TIDBIT FROM MAJEED, 31 JAN

 MAJEED

Just imagine your government willingly send $10 billion to Iran plus the smuggled oil to Iran…. For no reason at all. While hard-working people in Kurdistan work their asses off for a whole month By the end of the month The Iraqi government would say “ yeah I know you worked hard… but I don’t see You deserve your salary to be paid that early…. Let me delay your salary for a month or two” Just imagine an employee in Kurdistan People in Kurdistan been suffering, the same pain for 10 years These people have kids at home to feed

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A teacher on hunger strike outside the UN office in Sulaimani suffered a worsening health condition during a press conference, as protesters continue demanding overdue salaries and the implementation of a court ruling to digitalize payments through Iraqi state-owned banks amid a

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