Iraq Economic News and Points to Ponder Thursday AM 9-28-23

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Iraq Economic News and Points to Ponder Thursday AM 9-28-23

Economist: Joining BRICS Is One Of The Solutions To Diversify Sources Of Hard Currency

Today 09:41   Information / Baghdad…  Economic affairs researcher Hisham Al-Baydani explained that Iraq’s accession to BRICS is one of the solutions to diversify the sources of foreign currency within the country and be freed from American restrictions imposed, especially on the dollar.

Al-Baydani told Al-Maalouma, “Iraq must be freed from the restrictions imposed by Washington on its sources of foreign currency, especially after the hints and statements of the American ambassador in Baghdad regarding more restrictions on the movement of the dollar.”

He added, “The American restrictions imposed on Baghdad caused exchange rates to fluctuate, which affected citizens’ transactions in general, especially since there is demand for foreign currency in the local market.”

He stated that “joining BRICS may be one of the solutions that could be a way out for Iraq, which is rich in oil resources, but is governed economically by a foreign financial policy imposed by the American administration on the Iraqi monetary authority.”   LINK

Decrease In Dollar Prices Against The Dinar In Baghdad And Erbil

2023-09-28 02:24    Shafaq News/ Dollar prices decreased today, Thursday, in Baghdad markets and in Erbil, the capital of the Kurdistan Region.

Shafaq News correspondent said that dollar prices fell with the opening of the Al-Kifah and Al-Harithiya stock exchanges to record 155,750 dinars against 100 dollars, while prices yesterday, Wednesday, were 156,200 dinars against 100 dollars.

Our correspondent pointed out that the selling prices in the exchange shops in the local markets in Baghdad decreased, as the selling price reached 156,750 Iraqi dinars, while the purchasing price reached 154,750 dinars for every 100 dollars.

As for Erbil, the dollar also recorded a decline, as the selling price in banking shops was recorded at 155,050 dinars against the dollar, and the purchase price was 154,950 dinars against 100 dollars. LINK

Oil: Achieving Financial Revenues Estimated At More Than $900 Billion Within 12 Years

09/28/2023  2440   Earth News/ Oil Minister Hayyan Abdul Ghani announced today, Thursday, the inauguration of the new Sumer tanker with a capacity of up to 200 thousand barrels, while noting the achievement of financial revenues estimated at more than 900 billion dollars within 12 years.

The Minister of Oil said in a statement issued on the sidelines of his participation in the inauguration of the new tanker Sumer in the port of Khor Al-Zubair in Basra Governorate, and received by Earth News Agency, “We are looking forward to developing the fleet of the Iraqi Oil Tanker Company, through contracts with reputable international companies to build modern tankers with different tonnages, which will join…

To the tankers the company owns, it gradually contributes to the process of increasing the transport of quantities of crude oil and petroleum products, in proportion to the size of the capabilities and expertise possessed by the Iraqi Oil Tanker Company, as well as keeping pace with the scale of development witnessed by the oil industry in Iraq.”

He added, “The tanker Sumer’s load of 200,000 barrels was contracted alongside the tanker ‘Akkad’, with the same load, and it is hoped that it will arrive at the port in the near future.”

For his part, the Undersecretary of the Ministry of Oil for Distribution Affairs, Ali Maaraj, according to the statement, praised “the national effort and achievements made by the oil sector after 2003, and its contribution to increasing production and export, and achieving financial revenues for the state treasury,” noting “the importance of the licensing rounds that contributed to adding an amount of three million barrel for national production, achieving financial revenues exceeding more than 900 billion dollars.”

While the Director General of the Iraqi Oil Tanker Company, Ali Qais, confirmed, according to the statement, “the support of the Ministry and the Minister of Oil to build a new fleet for the Iraqi Oil Tanker Company by strengthening the company’s stock of oil tankers, which were damaged by the wars.”

He added, “In 2020, the Iraqi Oil Tanker Company concluded a contract with a Norwegian company to build two tankers with a capacity of 31,000 thousand tons each, the Sumer and Akkad, in which the ministry and the company aim to strengthen the company’s fleet in transporting crude oil and oil derivatives in addition to the activity of the current tankers, which is the Baghdad.” Shatt al-Arab, Tigris and Euphrates.      Https://Earthiq.News/Archives/283277#Hathalyoum

Adviser To The Prime Minister: Accelerating The Approval Of The Oil And Gas Law Will Establish Two Important Matters

Time: 09/28/2023 07:52:29  Read: 1,274 times  {Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, stressed the importance of accelerating the approval of the draft oil and gas law.

Saleh said in a press statement, “Accelerating the adoption 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.”

He explained that “this natural resource contributes directly to Iraq’s gross domestic product at a direct rate of approximately 50 percent, and leaves an indirect impact on the total economic activity of our country at a rate of no less than 85 percent.”

Saleh said, “Adopting a unified national oil policy, and achieving optimal investment and production in Iraq’s oil area, starting from the southern fields up to the northern and regional fields, is an important and strategic matter in the matter of taking advantage of opportunity costs in the optimal and harmonious operation of the Iraqi oil policy currently.”

Not to mention “achieving the best financial returns for the country that we all aspire to to finance building the Iraqi economy and the basics of sustainable development,” according to Counselor Saleh.

The draft oil and gas law in Iraq available to Parliament stipulates that responsibility for managing the country’s oil fields must be entrusted to a national oil company, and supervised by a federal council specialized in this subject.

For its part, the Kurdistan Oil Law indicates that the Iraqi government “has the right to participate in the management of fields discovered before 2005, but the fields discovered afterward belong to the regional government.”

The committee that was formed between Baghdad and Kurdistan to draft a draft oil and gas law 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 endeavors in all their paths.”

The dispute over the issue of oil has been a major source of tension between Baghdad and Erbil for years. Last year, the matter reached the judiciary, as Erbil believed that the central government was seeking to seize control of the region’s wealth.

In February 2022, the Federal Court in Baghdad ordered the region to deliver oil produced on its lands to Baghdad, and to cancel contracts the region had signed with foreign companies.

The matter reached the point where the judiciary in Baghdad invalidated contracts with many foreign companies, especially American and Canadian companies.

After years of exporting oil alone via Turkey, it became the Kurdistan region’s control, as of late March 2023, with the decision of an international arbitration panel that gave Baghdad the right to fully manage Kurdistan’s oil.

As a result, exports from the region stopped.

A temporary agreement signed between Baghdad and Erbil in early April stipulates that Kurdistan oil sales will be made through the Iraqi Oil Marketing Company (SOMO), while revenues generated from the region’s fields will be deposited in a bank account with the Central Bank of Iraq or one of the banks approved by the Central Bank of Iraq. . LINK

Iraq Ranks First Among The Countries That Hold The Largest US Bonds

2023-09-28 00:06   Shafaq News/ The US Treasury Department announced, on Thursday, that Iraq ranks among the largest foreign holders of US bonds.

The Treasury said in the latest table, seen by Shafaq News Agency, that “Iraq advanced one rank despite the decrease in its holdings of bonds for the month of July by $400 million, reaching 36th place among the countries with the largest possessions of US Treasury bonds of the 38 countries listed in the table for countries.” “.

She added, “Iraq’s possession of these bonds amounted to 32.6 billion dollars for the month of July, a decrease of 1.21% from the month of June, which Iraq’s possession of bonds amounted to 33 billion dollars, and a decrease of 6.12% from the month of June for the year 2022.”

The Treasury also indicated that “Iraq was the fourth largest Arab country after Saudi Arabia, the Emirates, and Kuwait, while Japan came at the top of the countries with the largest holding of these bonds, with $1.112 trillion, followed by China second with $821 billion, the United Kingdom third with $662 billion, and Luxembourg fourth with $349.” One billion dollars, and Belgium is fifth with 318 billion dollars.”

It indicated that “the total bonds of countries around the world for the month of July increased by 103 billion dollars compared to last June, reaching 7 trillion and 654 billion dollars.”      LINK

Points to Ponder From George Washington:

A slender acquaintance with the world must convince every man that actions, not words, are the true criterion of the attachment of friends.

Arbitrary power is most easily established on the ruins of liberty abused to licentiousness.

Associate with men of good quality if you esteem your own reputation; for it is better to be alone than in bad company.

Bad seed is a robbery of the worst kind: for your pocket-book not only suffers by it, but your preparations are lost and a season passes away unimproved.

Be courteous to all, but intimate with few, and let those few be well tried before you give them your confidence.

Discipline is the soul of an army. It makes small numbers formidable; procures success to the weak, and esteem to all.