Iraqi News Highlights and Points to Ponder Thursday AM 11-30-23


Iraqi News Highlights and Points to Ponder Thursday AM 11-29-23

The Iraqi Dinar Recovers Against The US Dollar.. 157,500 For Every 100 Dollars In Baghdad

Economy |Baghdad today – Baghdad  Today, Thursday (November 30, 2023), the prices of the dollar against the dinar recorded a noticeable decline in the local markets in the capital, Baghdad.

The “Baghdad Today” correspondent said, “Dollar prices fell on the main Kifah and Harithiya stock exchanges in Baghdad to record 156,800 dinars against 100 dollars.”

He added, “Selling prices in money exchange shops in local markets in Baghdad decreased, as the selling price reached 157,500 dinars for 100 dollars, while the purchase price reached 155,500 dinars for 100 dollars.”

The dollar exchange rates in the local markets this week witnessed stability at an increase, at 158 thousand dinars for every 100 dollars.   LINK

The Security Restriction Has Proven To Be A Failure… 3 Benefits Of “Importing The Dollar” And Recognizing The Parallel Market

Baghdad today – Baghdad  Today, Wednesday (November 29, 2023), the Diyala Chamber of Commerce reviewed the existence of 3 positives for importing the dollar from abroad into Iraq, noting that the Central Bank officially recognized the existence of the parallel market and its influence.

The head of the Diyala Chamber of Commerce, Muhammad al-Tamimi, said in an interview with “Baghdad Today” that “the Central Bank giving some banks the green light to import the dollar to meet internal demand is a step in the right direction and carries in its content 3 positives, the most prominent of which is creating a greater supply and meeting customers’ needs at a more flexible pace,” expecting “The dollar will witness a gradual decline after the arrival of more shipments.”

He added, “The security restrictions surrounding the mechanisms for selling the dollar within the parallel market have proven to be ineffective and have caused prices to rise more than once,” pointing out that “the step reflects government recognition of the parallel market and its influential role in shaping the exchange for buying and selling the dollar.”

He pointed out that “the dollar crisis will remain and the difference between the official and the parallel will decrease, but not to the level of significant convergence, because a large portion of imports come from outside the platform to merchants and companies, which means that the parallel market will continue to suffer from pressure.”

Earlier today, a source in the Central Bank of Iraq revealed the arrival of “dollar” shipments to Baghdad International Airport, imported by Iraqi banks.

The source confirmed to “Baghdad Today,” “The continued arrival of dollar shipments through Baghdad International Airport, imported by Iraqi banks to meet customer requests.”

He explained, “It is hoped that additional shipments will arrive within the next few days.”

The Central Bank of Iraq had directed banks to meet the stipulated requirements for the dollar at the official rate, while the rest of the requests for the dollar are made according to supply and demand, which means lifting the ban on trading in the dollar, and making it permissible in the parallel market. LINK

Parliamentarian: Iraq Loses About $500 Million Every Day From Burning Gas

WEDNESDAY, 11-29-2023, KARAR AL-ASSADI  On Wednesday, a member of the Parliamentary Oil, Gas and Natural Resources Committee, Zainab Al-Moussawi, identified three benefits behind investing in the gas associated with the oil production process, while she touched on the size of Iraq’s daily losses. She confirmed that Iraq lost approximately 500 million dollars from burning gas.

Al-Moussawi said in a statement received by Noon News Agency, that “Iraq’s losses from burning associated gas daily are sufficient to supply at least 3 million homes with electrical energy,” indicating that “in recent times, Iraq has lost approximately 17.91 billion cubic meters, with the financial cost amounting to Every day, approximately 500 million dollars are burned from gas.”

Al-Moussawi pointed out that “the increase in the burning rate of associated gas in Iraq is directly proportional to the increase in oil production,” indicating that “the natural reserve of Iraqi gas is estimated at 132 trillion cubic feet – according to the Organization of the Petroleum Exporting Countries (OPEC) -, as Iraq burned 700 billion cubic feet of it as a result of weak capacity to exploit it, with its daily production of associated natural gas reaching 2.7 billion cubic feet.”

A member of the Parliamentary Gas Committee explained, “Iraq aims to reach 3.1 billion cubic feet, estimated at 1.5 of the global reserve from OPEC, and 1.8 of the global reserve, and ranks 11th in the world in terms of international ranking.”

She added, “Baghdad destroyed an estimated 18 million cubic meters of gas in 2020, and if this quantity was converted into barrels, it would destroy the equivalent of 62% of its gas production, which is equivalent to 196 thousand barrels of oil, which is equivalent to 45 billion.” “Roughly a dollar.”

Regarding the benefits of investing in associated gas, Al-Moussawi stated that “investing in associated gas has three important and beneficial aspects. The first relates to the economic aspect by providing resources and income to the state budget in the range of $2.5 billion annually,” explaining that “the second aspect is represented by the social situation, by employing many young people.” Unemployed people if gas processing plants are prepared.”

Al-Moussawi continued, “The third aspect concerns the environmental issue,” continuing her speech: “If we calculate the amount of carbon emitted into the atmosphere, it is estimated at about 150 million tons, and combustion pollutes the air as the region becomes hotter, specifically the southern regions.”

The Dollar Declines Against The Dinar… A New Decline In The Exchange Rate In Iraq

2023-11-30 | 8,111 views  Alsumaria News – Economy  Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in Iraqi local markets for Thursday, November 30, 2023.

Dollar prices fell with the opening of the Al-Kifah and Al-Harithiya stock exchanges to record 156,500 dinars for 100 dollars, while selling prices in exchange shops in local markets in Baghdad fell, as the selling price reached 157,500 Iraqi dinars, while purchasing prices reached 155,500 dinars for every 100 dollars.

On February 7, the Council of Ministers announced its approval of amending the dollar exchange rate to 1,320 dinars per dollar.

For about a year, and specifically since the Central Bank began operating the electronic platform and the international financial transfer system ““SWIFT,” the dollar exchange rates in Iraq have not witnessed stability despite the attempts of the government and the Central Bank to control the exchange rate in the parallel markets.  LINK

What Is Expected From The OPEC+ Meeting Today? And The Most Likely Scenarios

Time: 11/30/2023 Read: 1,183 times   {Economic: Al-Furat News} The Organization of the Petroleum Exporting Countries (OPEC) postponed the 51st meeting of the Joint Ministerial Monitoring Committee, and the 36th ministerial meeting of “OPEC+” countries, to today, Thursday, November 30 {today, Thursday}, instead of the 25th and 26th of the same month. And then later converting it to a virtual meeting, a lot of speculation about the reasons for postponement, and expected scenarios.

Below are the most frequently asked questions in the market in this regard, and the answers of oil sector analysts to them:

Why was the OPEC+ meeting postponed?

According to what Bloomberg reported from sources in OPEC, the main reason for postponing the meeting of OPEC and its allies (OPEC+) is to give the oil and energy ministers of the coalition countries more time to discuss the new cuts called for by Saudi Arabia with their governments in order to reach an agreement to reduce production. On the other hand, some sources said that the reason is the continuation of negotiations with three African countries (Angola, Nigeria, and Congo) that objected to their production quotas that will come into effect starting on the first day of next year 2024.

Why was it converted to a virtual meeting?

As for converting it to a virtual one, it may be a sign that countries do not want an in-person meeting in the Austrian capital, Vienna, without confirmation of the existence of an agreement. It may be converted to virtual coinciding with the presence of some ministers in Dubai to attend the opening of the Climate Summit (COP 28), which is being held for the first time in a member state of OPEC or the “OPEC+” alliance.

Why do African countries object to quotas despite previously agreeing to them?

African countries are in dire need to export the largest possible amount of oil in order to finance the budgets of these countries, which are considered poor even though they are oil producers. This is why, historically, it has always objected to the quotas imposed on it and tried to obtain a production ceiling higher than what was given to it.

Bloomberg: OPEC+ is close to agreeing on oil production quotas for Angola and Nigeria

But what happened this time is that the three African countries (Angola, Nigeria, and Congo) had objected to the quotas at the organization’s last meeting last summer, and then external expert houses were appointed to evaluate the production capacity of these countries for the year 2024, and then review these numbers again to ensure that they are accurate. Her health. According to what Bloomberg reported from sources, these three countries were not satisfied with the evaluation provided by the expert houses.

Who evaluated the shares of these countries?

The parties that assessed the shares of these countries were not OPEC or OPEC+, but rather three independent sources: IHS, Wood Mackenzie, and Rystad Energy.

What are the shares agreed upon in the new agreement and when will they start working?

The currently agreed-upon quotas began to be implemented in January 2023, and later this year during the last ministerial meeting of the organization and its allies, the agreement was extended to the end of 2024 and new quotas were agreed upon to take effect at the beginning of next year.

Below is a detailed table of the agreed production quotas for the year 2024 compared to the current production ceiling:

Do we expect production quotas to be changed at today’s meeting?

There are no confirmations yet, but there are various reports in the media about intensive meetings between member states to change production quotas, as unannounced discussions took place to make a new reduction in the current reduction, which amounts to 5 million barrels per day if we add Saudi Arabia’s voluntary reduction of one million barrels per day, and 300 One thousand barrels per day voluntarily reduced by Russia.

If African countries do not agree on quotas, what will happen to the agreement?

If there is no agreement with African countries, the coalition may take a decision to continue with the current production ceilings, provided that the production ceilings are reconsidered at the beginning of the new year. In any case, there will not be a significant impact on the market, given that countries with high production, such as Russia, Saudi Arabia, the United Arab Emirates, Iraq and Kuwait, all agreed to reduce and made significant voluntary and involuntary reductions this year.

What are the expected scenarios in today’s meeting?

One of the expected scenarios in today’s meeting is for the coalition to agree on a reduction of up to one million barrels per day additional to what exists now, and both Saudi Arabia and Russia will continue the voluntary reduction, by one million barrels per day and 300 thousand barrels per day, respectively, at least for the first quarter of 2024.

One of the expected scenarios is that all countries will not agree on a reduction, and thus the current reductions will continue in 2023.

In the absence of an agreement on 2024 quotas, member states may be required to adhere to their current production ceilings, especially since there are countries that have not yet adhered to their quotas.

Will OPEC+ countries reduce their production further?

This is an expected scenario, but many countries do not have the ability to reduce production further, especially since current oil prices do not serve them in terms of revenues, and thus these countries will lose their production, market share, and revenues at the same time.

OPEC is optimistic about the demand for oil next year.. So why are there expectations of a reduction in production?

Several factors may contribute to a decision to reduce production despite optimism about the growth in demand for oil, and among these factors: the demand for oil from China has not reached the required level, and the European winter so far is not as harsh as usual, in addition to the presence of fears of an economic recession. In the United States of America and the European Union in 2024, and the uncertainty of the global economic situation.    LINK

Provoking Points to Ponder on HOPE:

 Beware how you take away hope from another human being. — Oliver Wendell Holmes

Hope arouses, as nothing else can arouse, a passion for the possible. — William Sloane Coffin Jr

In prosperity prepare for a change; in adversity hope for one. — James Burgh

For he who has health has hope; and he who has hope, has everything. — Owen Arthur

Hope is like the sun, which, as we journey toward it, casts the shadow of our burden behind us.– Samuel Smiles

Hope… is the companion of power, and the mother of success; for who so hopes has within him the gift of miracles.  — Samuel Smiles

I want to help people with depression understand that there is hope, so that they can get the help they need to live rich, fulfilling lives. — Tom Bosley