Bondlady’s Corner – Iraq Economic News and Points to Ponder Saturday AM 10-7-23


Iraq Economic News and Points to Ponder Saturday AM 10-7-23

Tlm724 Administrator Bondlady’s Corner

The Central Bank Confirms The Continued Arrival Of Dollar Cash From The US Federal Reserve

Economy | 06/10/2023   Mawazine News – Baghdad   The Central Bank of Iraq confirmed, today, Friday, that the dollar shipments sent by the US Federal Bank are proceeding according to a specific schedule and timings agreed upon between the two monetary institutions.

The Central Bank stated in a statement received by Mawazine News that it “denies news and media reports that talk about stopping or reducing shipments sent to the bank,” noting that “yesterday, Thursday, the shipment was received on time.”

He called on the media to “be careful in publishing information related to monetary policy in Iraq and take it from its approved sources through the official website and official accounts on social media sites.”

The United States Refuses To Hand Over A Billion Dollars To Iraq From Its Oil Sales

Economy   Friday, October 6, 2023 Follow-up/National News Center  Washington rejected Iraq’s request for $1 billion in cash from the Federal Reserve, arguing that it conflicted with their efforts to curb Baghdad’s use of the dollar and stop illicit cash flows to Iran.

The American newspaper “The Wall Street Journal” reported that since the American invasion of Iraq two decades ago, the United States has provided $10 billion or more annually to Baghdad through bi-monthly cargo flights, and the money is derived from the proceeds of Iraqi oil sales deposited with the Federal Reserve Bank.

American officials said, “Banknotes in the hands of Iraqis have become a lucrative source of illicit dollars that go back to militias and corrupt politicians, as well as to Iran.”

By applying for an additional $1 billion shipment, Iraq says it needs the money to help prop up its faltering currency. A senior Iraqi official explained, “Last week, the Central Bank of Iraq submitted an official request, which the Treasury Ministry is still studying, after Washington rejected the initial request submitted by Iraq last month.”

According to the newspaper, since last November, Washington has prevented 18 Iraqi banks from dealing in dollars, adopting stricter rules for electronic transfers in dollars from its banks.

Treasury officials told Iraqi central bank governors that sending a large additional shipment conflicts with Washington’s goal of limiting Iraq’s use of US banknotes, Iraqi officials said.

American officials spoke of conclusive evidence that some of the dollars that were arriving in Iraq were smuggled in cash over the years to Iran, as well as to Turkey, Lebanon, Syria and Jordan.

A Treasury Department spokeswoman said regarding the Iraqi request: “The United States continues to support Iraq with dollar banknotes and has not restricted its access to ordinary Iraqis and businesses,” indicating continued work with the Central Bank of Iraq.

The Rise In Dollar Prices In Baghdad Markets

Time: 10/07/2023 Read: 2,132 times   {Economic: Al-Furat News} Dollar prices rose, today, Saturday, in Baghdad markets   The prices were as follows..

The selling price was 158,500 Iraqi dinars, while the purchase amounted to 156,500 dinars per 100 dollars.    LINK

Finance Issues Bonds Under The Name (Reconstruction Bonds) And Makes Them Available For Sale To Citizens

Friday 06, October 2023 19:23 | Economical Number of readings: 682  Baghdad / NINA / The Ministry of Finance announced the issuance of bonds under the name (reconstruction bonds) and made them available for sale to citizens.

The Ministry stated in a statement: “As a contribution from the Ministry of Finance to providing and supporting investment opportunities for citizens, the Ministry of Finance/Public Debt Department, in cooperation with the Central Bank of Iraq, announces the availability of bonds for sale to citizens in the name of reconstruction bonds, for the period from October 10 to November 9.” 2023″.

She added: “The first issuance of bonds worth a trillion and a half Iraqi dinars is negotiable in the Iraqi Stock Exchange, and will be available in two categories: the first at a price of 500 thousand dinars with an annual interest of 6% for two years, and the second at a price of 1,000,000 million dinars with an annual interest of 8% for a period of 4 years.” Years”.

She continued: “Note that the purchase and trading of the bonds offered are exempt from taxes according to what is stated in the General Federal Budget Law No. 13 of 2023, and citizens can apply for purchases exclusively through approved banks registered with the Central Bank of Iraq.”/End

Prime Minister: Iraq Has A Great Wealth Of Gas And Needs Time To Invest It

Money  and business  Economy News  The Prime Minister, Muhammad Shiaa Al-Sudani, explained today, Saturday, that Iraq possesses a great wealth of gas, but it needs time to invest it optimally, stressing that the trend to import Turkmenistan gas comes within the government’s vision and strategy to diversify the sources of gas imports.

A statement from the Prime Minister’s Media Office, received by Al-Eqtisad News, stated that “Prime Minister Muhammad Shiaa Al-Sudani received the Minister of State for Gas Affairs in Turkmenistan, Maqsad Babayev, and his accompanying delegation.”

He pointed out, “During the meeting, bilateral relations between the two countries were discussed, ways to develop them, and strengthening cooperation frameworks in the field of energy and gas, which culminated in the signing of a joint memorandum of understanding to import Turkmenistan gas to Iraq, to meet the needs of production stations and the electrical system from it, as it is scheduled An Iraqi delegation will go to Turkmenistan on the twenty-fifth of this month to sign contracts

Al-Sudani blessed “the signing of a memorandum of understanding between the Ministry of Electricity and the Turkmen Ministry of Gas to supply gas.”

The Prime Minister stressed that “the government has paid great attention to the energy sector in Iraq and made it one of its most prominent priorities and a basis for developing and diversifying the economy, and developing the rest of the vital sectors.”

He explained, “Iraq has a great wealth of gas, but it needs time to invest it optimally, after it was late in this matter for years.”

He pointed out, “The trend to import Turkmenistan gas comes within the government’s vision and strategy to diversify sources of gas imports, as well as diversify energy sources to ensure the continuity of the operation of power generation plants.”

For his part, Babaev conveyed “the greetings of the President of Turkmenistan to the Prime Minister,” stressing “his country’s desire to strengthen joint cooperation between Iraq and Turkmenistan in various fields, in a way that contributes to developing relations between the two countries and achieves the interests of their peoples.” Views 49 10/07/2023 –

Mahmoud Othman: Turkey’s Targeting Of Kurdistan Workers’ Party Positions In Northern Iraq Is Supported By The United States

Saturday 07, October 2023 | Political Number of readings: 354  Baghdad / NINA / Independent Kurdish politician Mahmoud Othman confirmed: “Turkey’s targeting of Kurdistan Workers’ Party positions in northern Iraq is supported by the United States.”

Othman said in a statement to the National Iraqi News Agency ( NINA ): “Turkey continues to strike the sites of the BKK, the military wing of the Kurdistan Workers’ Party, in its areas of presence in northern Iraq, with the support of the United States, amid the silence of the government and the Kurdistan region,” noting: “This matter It may worsen the situation in those areas after the increase in the volume of Turkish strikes on those sites after the Ankara bombing last Sunday.”

He explained: “The Iraqi government must conclude a security agreement with Turkey like the one that happened with Iran,” noting: “The Iranian-Kurdish opposition responded to what was required of it by the Iraqi government in accordance with the security agreement with Iran, but this does not apply to the Kurdistan Workers’ Party, which rejects dialogue.” Therefore, the Turks will continue to bomb his positions.”

He pointed out: “The possibility of Iraqi oil flowing through the Turkish pipeline to the Turkish port of Ceyhan may be one of the reasons for silence about the Turkish bombing of Kurdistan Workers’ Party sites in northern Iraq.”/End

Oil Records Its Largest Weekly Losses Since Last March

Energy   Economy News  Oil prices recorded their largest weekly losses since last March, after the partial ban on fuel exports in Russia was lifted, coinciding with concerns about demand due to the challenges facing the macroeconomy.

Brent fell 11% and West Texas fell more than 8% this week due to fears that high interest rates will slow global growth and harm fuel demand, even with declining supplies from Saudi Arabia and Russia, which announced continuing to reduce production until the end of the year.

Statistics from the US Department of Labor showed that job growth in the United States increased by 336,000 jobs in September, which far exceeds economists’ expectations of an increase of only 170,000 jobs.

Analysts said that the strong US economy could boost sentiment about demand for oil in the near term, but on the contrary, statistics led to a rise in the dollar and increased bets on raising interest rates again in 2023.

The rise of the dollar usually negatively affects the demand for oil, as it makes it relatively more expensive for holders of other currencies   Views 43 10/07/2023 –

Parliamentary Oil: Deep Disagreements Prevent The Approval Of The Oil And Gas Law In The Current Parliamentary Session

Time: 10/07/2023 Read: 871 times   {Economic: Al-Furat News} A member of the Parliamentary Oil and Gas Committee ruled out approving the draft oil law in the current parliamentary session.

 Ali Saadoun Ghulam told Al-Furat News Agency, “Because of the differences between the center and the Kurdistan region, we rule out that the law will approve this parliamentary session.”

He stated that “the differences are deep, in addition to the intervention and reservations of the oil-producing governorates regarding the law, and we expect that it will not be approved due to the depth of the differences between the center and the region.”

Ghulam explained, “In the beginning, there was a difference in viewpoints, but now, after reviewing the important controversial points, we expect that there will be difficulty in approving the law this session.”

It is noteworthy that since the first session of the House of Representatives, in 2005, the draft oil and gas law has been locked up, as disagreements prevent its approval in its final form.

After 18 years, he announced, in late last August, the formation of a committee to develop “a draft of the oil and gas law and present it to the government and the House of Representatives.”

The committee that was formed between Baghdad and Kurdistan to draft a draft law for oil and gas includes “the Minister of Oil, the Minister of Natural Resources in the region, the Director General of SOMO Company, and the advanced staff in the Ministry of Oil, as well as the oil-producing governorates such as Basra, Dhi Qar, Maysan, and Kirkuk.”

The Prime Minister, Muhammad Shiaa Al-Sudani, said in early August that “the draft oil and gas law is one of the basic and important laws that represents a factor of strength and unity for Iraq, and it has been stuck for years, at a time when the country today is in dire need of its legislation and to benefit from this natural wealth.” In all fields and sectors, in addition to the contribution of the legislation to solving many outstanding problems.”

He explained, “There are governorates whose wealth has not been invested to date, which is considered negative for development efforts in all their paths.”

Meanwhile, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed in a press statement that “accelerating the approval of the federal oil and gas project law in the House of Representatives as quickly as possible will establish a stable national road map for investment and production of the country’s primary sovereign resource, which is oil and gas.”

Iraq exports an average of 3.3 million barrels of crude oil per day, and black gold constitutes more than 90 percent of the Iraqi treasury’s resources.    LINK


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Points to Ponder on Words:

Words are both better and worse than thoughts  – they express them – and add to them — they give them power for good or evil – they start them on an endless flight – for instruction and comfort and blessing — or for injury and sorrow and ruin — Tryon Edwards

When you have spoken the word – it reigns over you — When it is unspoken you reign over it — 
Arabian Proverb

You may tame the wild beast – the conflagration of the forest will cease when all the timber and the dry wood are consumed — but you cannot arrest the progress of that cruel word which you uttered carelessly yesterday or this morning — 
FW Robertson

A man cannot speak but he judges and reveals himself — With his will or against his will – he draws his portrait to the eye of others by every word — Every opinion reacts on him who utters it — 

Half the world is composed of people who have something to say and can’t, and the other half who have nothing to say and keep on saying it — Robert Frost

Such as thy words are – such will thy affections be esteemed — and such will thy deeds be as thy affections – and such thy life as they deeds —

A good word is an easy obligation — but not to speak ill requires only our silence – which costs us nothing — 

Discontent is the first step in progress. No one knows what is in him till he tries, and many would never try if they were not forced to.  – 
Basil W. Maturin

It is the spur of ignorance, the consciousness of not understanding, and the curiosity about that which lies beyond that are essential to our progress.  – 
John Pierce