Sunday, January 21, 2024
Iraqi Intelligence Agency Foils Oil Smuggling Operations, 21 JAN
Shafaq News/ On Saturday, the Iraqi Intelligence Service (IIS) announced the confiscation of vehicles and the arrest of their drivers involved in the illicit smuggling of oil and its derivatives.
In a statement, the agency revealed that specialized units, focused on combating organized crime, deployed multiple intelligence and technical teams over the past 30 days to carry out operations against the oil smuggling network.
These operations resulted in seizing 58 vehicles, along with their drivers, and thousands of tons of oil and its derivatives.
IIS also revealed that several vehicles in 15 oil sites where confiscated in different governorates.
The arrested where referred to the relevant authorities for further investigation.
Earlier today, the Iraqi Ministry of Oil announced the interception of 61 tankers carrying oxidized asphalt and other oil derivatives.
Iraq faces a significant challenge with the smuggling of millions of barrels of oil monthly, resulting in substantial revenue losses for the government. These smuggling operations span various routes, including land borders with neighboring countries such as Iran and Turkey.
One prevalent method involves the use of trucks disguised as legitimate cargo to transport crude oil or refined products across land borders. Additionally, illicit pipelines have been identified snaking across the border into other country.
Smugglers also leverage tankers to transport stolen oil at sea, engaging in covert transfers, sometimes under the cover of night or in remote locations.
https://shafaq.com/en/Iraq-News/Iraqi-Intelligence-Agency-Foils-Oil-Smuggling-Operations
"RV UPDATE" BY CLARE, 21 JAN
Clare
Article "For the first time...the assets of Iraqi banks record an unprecedented number" quote “the volume of assets of Iraqi banks operating in Iraq amounted to more than 202 trillion dinars, which is the first time that it has exceeded the barrier of 200 trillion dinars.”
Article: "Al-Sudani concludes his visit to Switzerland and returns to Baghdad"
Quote: "meetings were also held on its sidelines, which are the following: ■ Meeting with French President Emmanuel Macron ■ President of the Swiss Confederation, Viola Amherd ■ Secretary-General of the United Nations, AntĆ³nio Guterres ■ Secretary General of the North Atlantic Treaty Organization (NATO) ■ US National Security Advisor ■ President of the World Bank Group ■ Director General of the International Monetary Fund ■ President of the European Commission ■ President of the European Bank for Reconstruction and Development (EBRD) ■ Saudi Ministers of Trade and Investment ■ International Finance Corporation (IFC). ■ regional CEO of JPMorgan ■ Secretary-General of the Organization for Digital Cooperation ■ President of HKN Energy Oil Company ■ 57 international companies specialized in oil, energy, and other economic fields ■ Interview with Bloomberg website ■ Interview with the Wall Street Journal
Article: "JPMorgan Bank announces its readiness to open accounts for three private Iraqi banks "Economic experts: Disruption of oil supplies threatens the Iraqi budget, 21 JAN
Economic experts: Disruption of oil supplies threatens the Iraqi budget
Shafaq News / The geopolitical tensions and ongoing disruptions in the Middle East, coupled with the Houthi movement's continued attacks on oil tankers in the Red Sea region, pose a threat to the Iraqi economy.
Iraq relies on oil to finance public expenditures. However, the country has become an unwelcoming environment for investment despite its urgent need to revive Åts economic wheel due to escalating conflicts between armed factions, the United States, and Iran within its borders, according to experts.
Iraqi Oil Minister, Hayyan Abdul Ghani, confirmed on Thursday that Iraq's oil exports have not been affected by the recent attacks on ships in the Red Sea. He stated during the World Economic Forum in Davos that around 90% of Iraq's oil exports go to Asia and, therefore, do not need to pass through the Red Sea.
It is noteworthy that the Iraqi government's revenues exceeded 121 trillion dinars in the federal budget during the first 11 months, according to data released by the Ministry of Finance on Wednesday. The Ministry emphasized that the contribution of oil to the budget has risen to 93%.
Furthermore, according to data released by the Ministry of Finance in January, oil continues to be the primary revenue source for Iraq's general budget, accounting for 93%. This highlights the fact that Iraq's economy remains heavily reliant on oil as the mainstay of the country's overall budget.
Continuous flows
The oil trade balance of Iraq primarily focuses on Asian countries, constituting over 75% of the country's oil exports. The export lines to Iraq and the Gulf region, whose oil trade is predominantly linked to Asia, accounting for 90% of their oil exports, remain stable, flowing towards East and South Asia, according to the financial advisor to the Iraqi Prime Minister, Mudhhir Mohammad Saleh.
Saleh mentioned that these flows are met with import flows that are also stable so far. These are predominantly commercial flows that are largely outside the current high-risk maritime threat zones.
He continued, "However, this does not prevent a relative impact on the volatility of insurance and shipping costs, which have seen direct and indirect increases linked to the security tensions in the Bab el-Mandeb Strait due to the Gaza conflict."
He explained, "Iraq enjoys high trade flexibility as it is surrounded by a wide regional group with diverse maritime trade connections to neighboring countries."
"The country's essential reserves of food, necessary goods, and durable commodities are in a reassuring state. Iraq's capabilities in financing foreign trade cover about 15 months of imports, reflecting the strength and efficiency of Iraq's foreign reserves. It is a strategic hedge that reinforces our country's position against any potential trade risks due to geopolitical situations and possibilities."
Notably, the attacks by the Houthi rebels in Yemen on ships in the Red Sea have forced many companies to divert their sailing routes away from the Red Sea and transit around the Cape of Good Hope, increasing travel times and costs.
The attacks, carried out by the Houthis, who claim to support the Palestinians, target a route representing about 15% of global shipping traffic and acts as a vital channel between Europe and Asia.
Moreover, oil exports via ships significantly impact the Iraqi economy, as it heavily relies on oil to finance government expenditures. According to economic researcher Ali Abdul-Kadhim, if the transportation of oil via ships becomes difficult or problematic, it will adversely affect oil exports, leading to a shortage in dollar revenues from oil. This will, in turn, impact the general budget, increasing its deficit further.
Abdul-Kadhim pointed out that the two main countries importing Iraqi oil are China and India. Therefore, if oil revenues are affected, the Iraqi government will struggle to meet budgetary expenses.
Additionally, regarding the incident of Iran seizing a commercial ship flying the Tanzanian flag within Iraqi waters, he explains that "such incidents impact the Iraqi economy, as this tanker was carrying oil from Basra."
He emphasized the necessity for Iran to intervene in resolving the current crisis. "Iraq is the best market for Iran to sell its products, and continued disruptions will harm its economic sector, especially if the private sector and traders in Iraq turn to other countries for imports."
Investment-repellent environment
The current security situation in Iraq, marked by escalating tensions between armed factions, the US, and Iran within Iraq, negatively affects the economy, transforming it into an unwelcoming environment for both foreign and domestic capital," stated economic researcher Omar Al-Halbousi.
Al-Halbousi explained that "attracting investment requires security stability, but this escalation leads to investors hesitating to enter Iraq or completely abstaining from investing at a time when the country urgently needs to attract foreign investors to stimulate the economy."
He continued, "the security escalation between factions, the US, and Iran coincides with the Baghdad International Fair, which witnessed significant international attendance. This escalation is intentional, sending a message to participants in the fair, especially global companies, not to come and invest in Iraq."
"Especially since the fair was the best among its previous editions in terms of organization, international participation, and public attendance. However, there are countries that prefer Iraq to remain a market for their goods without stimulating investment in it."
He emphasized that "these attacks cause Iraq significant economic losses, as they result in the loss of current and future investment opportunities. Attracting investments is complex and challenging in an unstable security situation, making Iraq lose a crucial economic element it desperately needs."
https://shafaq.com/en/Report/Economic-experts-Disruption-of-oil-supplies-threatens-the-Iraqi-budget
"RV UPDATE" BY SANDY INGRAM, 21 JAN
Sandy Ingram
There are 4 major reasons Kuwait, Iraq’s next-door neighbor has the strongest currency in the world…Kuwait dinar is $3.36…1. Major exporter of oil. Kuwait is estimated to hold 10% of the world’s oil reserves. The tiny country has a population of 4.3 million people vs Iraq who has approximately 43 million people and a lot more oil than Kuwait.
2. Kuwait has an excellent reinvestment of oil revenue. Kuwait uses its oil revenue to build infrastructure and develop microeconomic sectors to increase its GDP.
3. Kuwait is tax free. Being a tax-free country enables the GDP to be higher and it just makes everyone happier not to have to pay taxes. Since May of 2007 the Kuwaiti dinar (KWD) is pegged to an undisclosed basket of currencies…
4. This is good news for some of you and not good news for others…Kuwaiti currency is scarce. It is very difficult to get your hands on a Kuwaiti dinar unless you are inside of the country…Being scarce when it comes to currency is a good thing.
The Iraqi dinar is not on the Forex market, yet. The Iraqi dinar is an exotic currency, as is the Vietnam dong... Currencies are traded in pairs on the Forex Market.
The 3 main types... majors, minors and exotics...The more liquid an asset the easier and more efficient it is to turn it back into cash. Major currency pairs have the highest trading volume... Exotic currencies...are not traded that often. There is little technical analysis or data available to support trading decisions for exotic currencies...
People have been asking, 'Why is the Iraqi dinar one rate in Iraq and a different rate online...?' There are two major reasons for the different rates. 1. The Iraqi government imposes strict currency controls to limit the flow of dinars out of the country. This creates a dual exchange rate system: Official rate - fixed rate imposed by the Central Bank of Iraq...Market Rate - Freely fluctuating rate is used for private transactions and most imports... 2. The IQD is not widely traded internationally ...Limited demand for dinars outside Iraq weakens its value on
the international market. But...they are now saying speculation about a potential revaluation of the Iraqi dinar sometimes influences online prices... Speculation investors, that's us. We are causing fluctuations in the currency value...
In January 2024 foreign currencies will no longer be allowed inside Iraq and any violations will be criminalized. The Iraqi dinar will be used for all transitions.
Why are we seeing reports of a meeting with the IMF in Jordan and a meeting with the Department of the Treasury and the US Federal Reserve in Dubai? ...The meeting with the IMF had to do with the IMF staff team helping the Iraqi authorities reform the banking system...A drone attack on a military base hosting US troops near Erbil in northern Iraq...caused casualties...Iran-backed militants claimed responsibility for the attacks...The attacks occurred on December 25th.
Inflation...political stability... balance of payment...national debt...recession - each of these seven categories helps determine the currency rate of any country...We want to wish each of you a happy holiday..
Article: "Iraq links Baghdad US embassy attackers to security services"
The attacks against US forces have continued. The Iraqi government said several people who are alleged to have attacked the US embassy in Iraq last week have links to the country security services...
Article: "Iraqi council elections: Almost 17 million voters head to polls on Monday"
Iraqis have begun voting for the first time in a decade to select new provincial council members who in turn will appoint governors...results are expected to be announced on Tuesday.
Iraq cuts oil production by 223,000 barrels per day voluntarily. Iraq is over 90% dependent on oil revenue and oil prices, therefore when OPEC speaks we listen and we listen very carefully, almost as carefully as when the CBI makes and announcement.
https://dinarevaluation.blogspot.com/2023/12/rv-update-by-sandy-ingram-sheila-18-dec.html
IMF: Fiscal Expansion to Boost Growth in Iraq (FULL REPORT), 20 MAY
IMF: Fiscal Expansion to Boost Growth in Iraq (FULL REPORT) 20th May 2024 in Iraq Industry & Trade News , Politics By John Lee. The I...
-
TEXAS SNAKE Texas Snake, [03/16/2024, 10:17:58 a. m.]: Texas Snake, please forgive me I know this is long, but I’ve been waiting for two ye...
-
Walkingstick All these meetings that the CBI had with all these agencies that were helping them with their monetary reform are done. Al...
-
Bank appointment for Currency EXCHANGE Instructions/Checklist Bank Name_________________________________________ Bank 800#____________...