Sources reported on Tuesday that Iraq is currently engaged in advanced negotiations to conclude a liquefied natural gas deal with Algeria, in an attempt to complete the deal before next summer.
The TAQA platform quoted these sources as saying that the deal is expected to be announced within two months at most, with exports set to begin as soon as Iraq completes the import infrastructure.
The sources explained that the contract will be medium-term, and that the quantities will be approximately one million tons annually. However, negotiations have not yet finalized the quantity.
According to the platform, an Algerian liquefied natural gas deal with Iraq could support Baghdad's electricity sector during the summer of 2025, or perhaps at the beginning of winter.
Iraq is currently preparing the infrastructure at Khor
al-Zubair port in Basra Governorate to import liquefied natural gas, which could take the next three to five months.
It is planned to contract for a floating platform for unloading and storage, and connect it to a 40-kilometer pipeline that will transport the gas by connecting it to the national pipeline near the Shatt al-Basra.
In late February, the Iraqi Oil Ministry's Undersecretary for Gas Affairs, Izzat Sabir, stated that the federal government was studying the possibility of importing gas from Qatar and Algeria after the US president revoked the exemption granted to Iraq to import this material from Iran. Sabir emphasized that the ministry was determined to stop flaring associated gas by 2030. link
IRAQ
Dear Iraqi Federal Government/CBI/U.S. Treasury,
Per our conversation 20+ years ago…
Please don’t DISAPPOINT with delaying the 2025 Budget Tables/Schedules that’s suppose to be presented/showcased to everyone by the end of this month March to bring out the REAL Dinar exchange rate figures to FINALLY provide your Iraqi citizens with PURCHASING POWER along with your international investors also awaiting a significant INCREASE on their investment of your currency.
Respectfully,
~All Iraqi Citizens/Int’l Investors
Erbil hands Baghdad 48 billion dinars in non-oil revenues
3/17/2025
The Ministry of Finance and Economy in the Kurdistan Regional Government announced on Monday that the federal treasury's share of non-oil revenues for February had been transferred to Baghdad.
According to a statement from the ministry, received by Shafaq News Agency, the transferred amount amounted to 48 billion and 722 million Iraqi dinars, which were deposited in the Erbil branch of the Central Bank of Iraq.
Last month, the Kurdistan Regional Government's Ministry of Finance and Economy announced the transfer of approximately 52 billion dinars in non-oil revenues to the federal treasury in Baghdad. LINK
In this video, the host, affiliated with the Militia Man and Crew, discusses recent developments regarding monetary policy in Iraq and the ongoing transition towards a cashless economy. The Central Bank of Iraq is making strides to eliminate paper transactions, emphasizing the adoption of a digital currency.
The bank reassures citizens about its cash liquidity, essential for local transactions, predominantly backed by oil revenue. There are substantial discussions around the resumption of oil exports, particularly through the Turkish Port of Ceyhan, which have faced delays due to regional financial disputes.
The video also touches on the Iraqi government’s approach to stabilizing its economy through enhanced foreign exchange processes and banking transparency while targeting larger financial transactions. The host reflects on the interconnectedness of these developments and the potential implications for the Iraqi dinar, hinting at an impending currency reassessment.
🌐 Transition to Digital Currency: The Central Bank of Iraq plans to fully transition to digital currency, significantly reducing paper transactions.
💰 Cash Liquidity Assurance: The bank reassures the public of its ample cash liquidity, sufficient to cover all local transactions.
🛢️ Oil Export Resumption: Ongoing negotiations and readiness to resume oil exports through Turkey could resolve financial disputes and stabilize revenues.
🔒 Monetary Strategy Implementation: New strategies are being implemented to attract foreign currency transactions into the regulated banking system.
⚖️ Regional Financial Disputes: Delays in oil exports are primarily due to outstanding debts owed to oil companies, affecting Kurdistan and Baghdad.
📊 Future Exchange Rate Discussions: There are anticipations of a revised exchange rate that aligns with the new digital financial system.
🏦 Parallel Market Concerns: Enhanced banking regulations aim to eliminate cash transactions that currently feed into a parallel, unregulated market.
Key Insights
📉 Digitalization of the Economy: The Central Bank’s roadmap towards eliminating paper transactions is indicative of a broader trend towards digital economies worldwide. This transition could present opportunities for increased efficiency in transactions and financial management while also aligning Iraq with international standards in monetary governance.
💼 Importance of Cash Liquidity: The Central Bank’s reassurances about cash liquidity highlight the bank’s commitment to stabilizing the currency and supporting economic activities. Given that the Iraqi economy relies heavily on oil revenues, this liquidity is essential in maintaining trust in the dinar, especially during periods of transition to a new financial framework.
🤝 Crucial Oil Export Negotiations: Discussions regarding oil exports through Turkey are pivotal for Iraq’s financial recovery. The negotiations reflect the intricate relationship between regional governance and central authority, which must be resolved to bolster the country’s oil-dependent economy. Oil exports are a significant revenue source, and their resumption could enhance budgetary stability.
📈 Shift in Banking Strategies: The implementation of a new monetary strategy focusing on attracting foreign exchange into regulated banking systems indicates a maturation of Iraq’s financial landscape. This could reduce speculative transactions and foster a more stable economic environment, thus reinforcing the dinar’s strength.
👥 Challenges with Regional Governance: The financial disputes between the Kurdistan Regional Government and the federal authorities underline the complexity of Iraq’s internal governance. As salaries hinge on these negotiations, resolving the tension is of utmost importance for financial stability and social order—demonstrating the necessity for cohesive governance in resource-rich regions.
⏰ Anticipation of Exchange Rate Reevaluation: The potential for a new exchange rate, discussed in relation to the digital transformation and oil valuation, suggests that significant adjustments in Iraq’s financial policy may be imminent. This reevaluation appears necessary to align with international economic practices while enhancing national liquidity.
💵 Impact on the Parallel Market: The Iraqi government’s strategic emphasis on enhancing banking transparency and reducing the dependency on cash transactions indicates a potential crackdown on the parallel market. This shift could diminish the influence of unregulated practices on the national economy, thus strengthening legal financial transactions.
Conclusion
The video encapsulates essential aspects of Iraq’s evolving financial environment, characterized by a transition towards digital currency, enhanced foreign exchange capabilities, and ongoing negotiations aimed at stabilizing oil exports. With inherent challenges stemming from regional governance disputes,
the Central Bank and the Iraqi government must navigate these complexities to foster a sustainable economic future. The host’s insights reflect a cautious optimism regarding the potential for stability and growth within Iraq’s unique financial landscape, underscoring the importance of collaboration among stakeholders moving forward.
The developments discussed may set the stage for a significant transformation in how the Iraqi economy operates, emphasizing the need for flexibility and adaptation in face of changing monetary policies.
IRAQ