FIREFLY: They were doing audits with the banks here. We were just told there's one with $600 million scam that is going on with travelers and the American dollar. There is no end to corruption in our country but we know Sudani is doing his very best to protect us especially with a new exchange rate that will be coming
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WALKINGSTICK: ...Iranian politicians are till trying to do what they've been doing but they're doing it through other means but they're not succeeding like they used to.
FIREFLY: Big thing on the TV about JPMorgan and Iraq banks are talking financial reforms and banking reforms.
Shafaq News/ Following the recent signing of a quadripartite memorandum of understanding between Iraq, Qatar, the UAE, and Turkiye to establish the "Development Road" project, concerns and misunderstandings have arisen, particularly from Kuwaiti officials, regarding the project's impact on their national interests.
Quadripartite MoU Signing for Development Road
Last week, Iraqi Prime Minister Mohammed Shia Al-Sudani and Turkish President Recep Tayyip Erdogan led the signing ceremony of a quadripartite Memorandum of Understanding (MoU) in Baghdad, involving Iraq, Turkiye, Qatar, and the United Arab Emirates (UAE).
The MoU aims to bolster cooperation regarding the Development Road project, drawing the participation of high-ranking Turkish and Iraqi delegates.
Iraqi Minister of Transportation Razzaq Muhaibis and Turkish Minister of Transportation and Infrastructure Abdul Qadir Uraloglu signed the memorandum on behalf of their countries.
Minister of Transportation Jassem bin Saif bin Ahmed Al Sulaiti represented Qatar, while Minister of Energy and Infrastructure Suhail Mohammed Faraj Al Mazroui signed on behalf of the UAE.
The MoU outlines the commitment of the signatory countries to establish the necessary frameworks for the project's implementation.
However, some regional countries are concerned about the repercussions of such projects in their own economy.
Kuwaiti Concerns Over Development Road
More than a third of the Kuwaiti assembly's 50 members expressed their concerns regarding the signing of the "Development Road" project in Baghdad. They viewed this action, especially amid the stalled progress of the "Mubarak Port" project, as indicative of shortcomings in Kuwaiti government policies concerning development and port enhancement. Their demands included immediate actions such as resuming work at the port and establishing investigative committees to delve into the causes of the delay and evaluate its impact on Kuwait's interests following the recent signing of the project's memorandum of understanding.
Notably, the Kuwaiti Mubarak Port, situated across from the Iraqi Faw Port in the Basra region, is poised, through the "Development Road" initiative, to link Asian markets with European ones.
Certain Kuwaiti MPs have attributed Kuwait's exclusion from the project to the underdevelopment of Mubarak Port. They have voiced discontent over what they perceive as a lack of progress in completing the Silk City development project (Subiya and Bubiyan Island), which encompasses Mubarak Port, which has been operational since September 2007.
In response to the Kuwaiti concerns, Diaa Al-Nasiri, Advisor to the Iraqi Prime Minister, addressed the situation in an interview with Shafaq News Agency, clarifying that "there is no overlap between the "Development Road" project and Kuwait's interests, as the road starts from Iraq's Faw port and extends to the Fishkhabour border crossing, through Turkiye to the European Union. Therefore, no similar road passing through Kuwait would be affected by this project."
Al-Nasiri highlighted that the "Development Road" project aims to "open up broad horizons not only for Iraq but also for some countries in the region that want to contribute to it. Kuwait was among the first countries invited to be an integral part."
Significance Of The Development Road
Iraq's "Development Road" initiative, first proposed by Prime Minister Al-Sudani during his diplomatic visit to Ankara a year ago, has become an important strategic beacon.
The "Development Road" project is an integrated road and railway system from Iraq to Turkiye and its ports. Stretching 1,200 kilometers within Iraq, its primary objective is to facilitate the transportation of goods between Europe and the Gulf countries.
With an investment budget of approximately 17 billion US dollars, the project divides funding by 6.5 billion for the highway and 10.5 billion for the electric railway.
Implementation occurs in three phases, concluding the first by 2028, the second by 2033, and the final phase by 2050.
Projections indicate that the project will create roughly 100,000 job opportunities at its outset, escalating to one million upon completion.
Observers suggest that projects like this become increasingly attractive to trade movements between East and West if Baghdad and Ankara effectively promote and solidify its success. However, they warned that such projects could hinder other countries' economies.
Against the backdrop of escalating tensions and what some term a "proxy war," the project assumes heightened relevance, particularly in light of disruptions to maritime navigation along critical routes like the Bab el-Mandeb and the Red Sea—vital lifelines facilitating around 15% of global trade.
With anticipation building around Erdogan's imminent visit to Iraq in the coming days, the "Development Road" project is poised to take center stage. This initiative, envisioned as a transformative transportation corridor; garners increased attention as both Iraq and Turkiye seek to bolster regional connectivity and foster economic growth.
In this intricate geopolitical landscape, Erdogan's longstanding vision of positioning Turkiye as a pivotal nexus for energy and trade finds resonance with Al-Sudani's ambition to leverage Iraq's strategic geographical position, rekindling its historic role as a bridge between East and West.
Moreover, recent disruptions in maritime trade, notably the downturn in activity at Israel's port of Eilat—a linchpin for Red Sea access—highlight the fragility of regional commerce amid heightened tensions.
Israeli estimates indicate that "the port has incurred an 85% decline in its operations. Plans are currently underway to lay off half of the port's workforce, a consequence of the onset of hostilities initiated by the Houthis in November."
Notably, this route was frequented by over 21,000 ships annually before the outbreak of the Israel-Gaza war and the Yemeni involvement, within the framework of what is termed the "Axis of Resistance," in defense of Palestinians.
Global insurance companies assert that shipping costs in the area have skyrocketed to unprecedented levels. This surge is attributed to several factors, including increased insurance premiums due to heightened risks, such as insurance covering vessel structures, cargo, protection, and compensation.
According to international estimates, maritime insurance costs have escalated five to tenfold compared to pre-war levels.
For shipping companies, the losses could be significant. In addition to rising insurance premiums, costs have escalated since ships no longer traverse the Bab el-Mandeb and the Red Sea, necessitating longer voyages around the African continent via the Cape of Good Hope.
This elongation of journeys, sometimes by 10 to 20 days, entails additional expenses for fuel, labor, and other resources.
Consequently, observers suggest that projects like the "Development Road" would become increasingly attractive to trade movements between East and West if Baghdad and Ankara effectively promoted and solidified its success.
Concerning the implementation timeline for the Development Road, Al-Nasiri clarified that "The Faw Port is the initial phase, but it is still under construction and requires another year and a half before investment activities can commence. Once the preliminary preparations are finalized and the Faw Port connects to Basra via rail, it will signify the beginning of this project."
He further mentioned, "There are approximately 170 kilometers of railway within Turkish territory that require linking. We've been informed that Turkish contributors and companies have started to work on this stretch of the railway."
The reinstatement is coming, it won’t be years anymore and I firmly believe from what we already know and what we are now witnessing, the writing is on the wall, but just not yet.Do you hold large sums of Iraqi dinar? Are they the larger three zero notes issued after 2003? If so, you just might be a millionaire sooner than later. In the month of April, Iraqi reforms has made monumental leaps and bounds even since 2023. Folks, it’s about to EXPLODE! It is now openly evident...It would be foolish to turn back now. Full speed ahead, choo-choo.
The news just keeps getting better and better. ...my CBI contact again confirmed to me that this meeting of Iraq with the Whitehouse had to take place and could be seen as a healing meeting between the two countries.
One issue was of course the status of leaving or the pullout of US forces. This issue is clear, as the US forces do not plan to leave Iraq again and destabilize the middle east, especially in these turbulent times...don’t worry it is not going to happen any time soon as long-term plans are being negotiated to give Iraq what it wants and give the US what it wants...
I was told by my CBI contact that the currency swap out will happen as they will not hide this event and must inform the citizens (education process...). Yes, they also have to explain the exchange swap-out process and how it will work along with descriptions of the newer lower denominations.
The CBI will then post those pictures of the lower denominations my contact told me were taken weeks ago. So, just wait and watch it all play out...You should be excited...with FACTUAL knowledge...
Article: "IRAQ’S FINANCIAL REVENUES EXCEED 11 TRILLION DINARS (about 11 Billion US Dollars) WITHIN A MONTH" Yes, even in a “rentier” oil economy the Iraqi dinar can still maintain a realistic rate of at least $3 or more...
Iraqi Finance Minister Taif Sami met with World Bank Executive Director for Iraq, Abdulaziz Al Mulla, to discuss the World Bank’s support for Iraq, including financial aid, technical support, and capacity building.
Al Mulla emphasized the bank’s commitment to supporting member countries and that Iraq would benefit from the World Bank’s programs aimed at bolstering the Iraqi economy.
Minister Sami also met with International Finance Corporation (IFC) Vice President Hela Cheikhrouhou to discuss ongoing efforts with the IFC related to financing and developing the private sector and supporting projects that create job opportunities.
Minister Sami expressed appreciation for the IFC’s support in various sectors, including energy and ports, and for projects such as the Baghdad International Airport rehabilitation and expansion.
In a high-level meeting with newly appointed World Bank Vice President Ousmane Dione, the minister discussed the bank’s readiness to support financial and economic projects in Iraq, particularly the strategic Development Road Project and the railway project. Dione confirmed the bank’s commitment to offering technical support and advice in line with Iraq’s national priorities.
During a series of spring meetings, Minister Sami and her delegation also met with the Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, to discuss the importance of supporting private sector investment projects in Iraq, particularly in the fields of environment and renewable energy, and providing funding for government banks.
In a related meeting, Minister Sami discussed Iraq’s technical needs with the
International Monetary Fund’s (IMF) Director of Financial and Technical Affairs, focusing on support for Iraq’s fiscal policy and public finance management, particularly continued technical support for the Treasury Single Account program and ongoing tax and customs reforms.
Minister Sami emphasized ongoing efforts to improve budget planning and execution, reduce current expenditures, increase non-oil revenues through expanding tax bases, automate transactions, and enhance customs efficiency. She highlighted the steps taken toward transitioning to a Treasury Single Account [Unified Treasury Account] system and working on an integrated financial management system.
More and more people are talking about it. Even Jaimie Dimon [CEO of JPMorgan Chase] said the dinar was going to be the economic savior of the entire world. Sudani has already told us they are going to increase the value and remove the zeros. It’s going to happen.
“Vietnam Central Bank plans forex intervention” They are ready to defend and strengthen its currency. You are finally starting to see it in the news...
Question: So has RV started? I believe it has started and is not going back.
US delegations have been going back and forth to Iraq for some time- in preparation. Over the weekend we had Sudani point blank saying that they are preparing and it would be the CBI’s responsibility for a revaluatuion. Things are phenomenal.
