Iraq News Highlights and Points To Ponder Monday Evening 10-14-24
Currency Auction Likely To Be Cancelled In Response To International Pressure To Combat Financial Smuggling
October 14, 2024 Baghdad/Al-Masala: As part of the efforts made to reform the financial and economic system in Iraq, the Central Bank is moving towards canceling the currency auction, in response to international pressures aimed at regulating the circulation of the dollar and reducing illicit flows.
At the same time, the digital banking sector faces challenges related to the lack of legal legislation regulating its work, in light of the growth of this financial technology. In addition, there is increasing oversight of the real estate and gold markets to prevent money laundering operations, with the imposition of new mechanisms that limit suspicious transactions in this field.
Financial analyst Safaa Al-Shammari said that the Central Bank of Iraq is moving towards implementing a decision to cancel the currency auction, noting that these measures come in response to international pressure and strict negotiations. Al-Shammari also highlighted the need to develop the legislative framework for digital banks, which have begun to emerge without sufficient legal oversight.
Speaking on a TV show, Al-Shammari explained that “the Central Bank of Iraq will work to stop the currency auction as part of its commitment to the conditions imposed at the New York meeting,” adding that “the United States refuses for the dollar to reach entities subject to sanctions, which affects unofficial import operations, especially from Iran and Syria.”
Regarding digital banks, Al-Shammari stressed the urgent need for legal legislation to regulate the work of these new financial institutions, pointing out that there is a digital bank in the Kurdistan Region that has not obtained a license from the Central Bank. He also pointed to tightening control over the real estate market to combat money laundering, adding that “the gold trade has also come under strict control to prevent any violations.”
Tightening control over the real estate market to prevent money laundering requires a set of regulatory and supervisory measures in coordination between financial and banking bodies and legal entities.
These measures include imposing financial limits on real estate transactions that require additional monitoring, such that any purchase or sale exceeding a certain amount is subject to intensive financial investigations to ensure the legitimacy of the source of the funds.
Buyers and sellers must also be required to provide documents proving the source of funds used in transactions, and here banks play an important role in examining financial accounts and detecting suspicious transfers.
Analysts say it is essential to create a national database for all major real estate transactions to track financial movements related to real estate, making it easier to detect unusual patterns that may indicate money laundering. Cooperation between banks and regulatory bodies should also be enhanced, with banks monitoring accounts and financial transactions related to real estate transactions and reporting any suspicious activity to the relevant authorities.
In addition, strict laws are required to require parties involved in the real estate market to disclose the identity of the beneficial owner of a real estate transaction to track down parties that may seek to hide illicit funds.
The analysis indicated that international asset auditing is also important to ensure transparency of foreign investors’ investments and cross-border transactions. Banks play a pivotal role in combating money laundering by examining financial transactions related to real estate deals and verifying the sources of large amounts of money used in purchases. https://almasalah.com/archives/103271
Ministry Of Oil: We Export 1000 Tons Of Jet Fuel Daily
Monday,10-14-2024,PM 12:16 Taisir Al-Asadi The Ministry of Oil announced the production of 2,500 tons of jet fuel daily, while indicating the export of 1,000 tons of it.
The Undersecretary of the Ministry for Refining Affairs, Hamid Younis, said, “The production quantities of jet fuel reached 2,500 tons per day, indicating that the surplus of local needs is exported through the Iraqi Oil Marketing Company (SOMO).”
He added that the export quantities amount to 1000 tons, noting that this achievement is part of a series of achievements in the refining sector.
He stated that “the process of exporting jet fuel is an achievement added to the achievements of the refining sector, and its importance lies in two cases: the first is maximizing financial revenues to the state treasury, which is part of the Prime Minister’s government program, and raising production capacities and exporting products in excess of consumer needs.” https://non14.net/public/171058
Iraq's Oil Exports To America Rise
Monday,10-14-2024, Taisir Al-Asadi The US Energy Information Administration announced yesterday, Sunday, that Iraq's oil exports to America increased during the past week.
The administration said in a table that "the average US imports of crude oil during the past week from 10 major countries amounted to 5.305 million barrels per day, down by 439 thousand barrels per day from the previous week, which amounted to 5.744 million barrels per day."
It added that "Iraq's oil exports to America amounted to 241 thousand barrels per day last week, up by 89 thousand barrels per day from the previous week, which amounted to 152 thousand barrels per day."
The administration also indicated that "the largest oil revenues to America during the past week came from Canada at a rate of 3.499 million barrels per day, followed by Mexico at an average of 382 thousand barrels per day, followed by Venezuela at an average of 315 thousand barrels per day, and from Saudi Arabia at an average of 285 thousand barrels per day."
According to the table, “the amount of US crude oil imports from Ecuador was 228,000 barrels per day, from Colombia it was 149,000 barrels per day, from Brazil it was 134,000 barrels per day, from Nigeria it was 44,000 barrels per day, and from Libya it was 28,000 barrels per day. https://non14.net/public/171055
Parliamentary Committee Reveals Reasons For Reducing The Region's Oil Production By Half
Posted On2024-10-14 By Sotaliraq Member of the Parliamentary Oil and Gas Committee, Dhurgham Al-Maliki, revealed the reasons for reducing the Kurdistan Region’s oil production by half.
Al-Maliki said, "Iraq's export percentage has already been reduced by OPEC."
He added, "The Minister of Oil, Hayan Abdul Ghani, before he suffered a health problem, decided to reduce oil from the provinces of Basra and Maysan only, and the region remained at its percentage."
Al-Maliki pointed out that “keeping the region’s share of oil exports at its current level and reducing the share of the rest of the governorates is incorrect, and the share must be distributed equally among everyone.”
He added, "The reduction in oil exports cannot be limited to the southern governorates only, as it will cause problems for the income of the southern governorates."
Two days ago, the acting Minister of Natural Resources in the Kurdistan Regional Government, Kamal Mohammed, announced that the region had reduced its oil production by half, at the request of Baghdad and as part of its commitment to the OPEC+ agreement.
During his participation in an energy conference in Istanbul, Mohammed explained that the Kurdistan Region has been producing 140,000 barrels of oil per day since September 2, 2024.[/size]
Iraq has consistently produced more than OPEC+ has set, and has promised to make up for the previous overshoot.
On September 26, 2024, the Iraqi Ministry of Oil announced the export of 105 million and 845 thousand barrels of oil during the month of August, a decrease of 2 million and 207 thousand barrels compared to July.
In turn, the OPEC+ Joint Ministerial Committee for Monitoring Production confirmed that Russia, Iraq and Kazakhstan fulfilled their obligations to compensate for the previous increase in production.
The Kurdistan Region’s oil exports stopped on March 25, 2023, after the International Chamber of Commerce in Paris ruled in Iraq’s favor in the lawsuit it filed against Turkey over the pipeline. Before that, the Kurdistan Region was exporting 450,000 barrels per day to global markets via Türkiye.
Mohammed pointed out that the Kurdistan Region lost billions of dollars in revenues due to the halt in oil exports, while Iraq itself lost more than 16 billion dollars, adding that “this is a situation in which everyone loses and no one benefits.”
Disagreements over contracts, the cost of producing a barrel, and the dues of international companies continue to hinder reaching an agreement between Erbil, Baghdad, and the companies to resume exports. LINK
Taif Sami: The Regional Government Has Not Handed Over Its Oil Revenues To The State Treasury
Local | 10/13/2024 Mawazine News - Baghdad The Ministry of Finance announced on Sunday that it will release 400 billion dinars from the governorates’ allocations, while indicating that the fluctuations in oil prices caused a problem in achieving revenues.
The ministry said in a statement received by Mawazine News, that “Minister of Finance Taif Sami appreciated the support of the parliamentary finance committee, its chairman and members, for the ministry’s work, while she presented a detailed presentation on the ministry’s steps to address the budget deficit and the problem of lack of funding.”
Minister Sami said, according to the statements, that “the fluctuations in oil prices caused us a problem in achieving revenues,” calling on “the finance committee to help the ministry with regard to the problem of non-oil revenues with the regional government, as it has not handed over its oil revenues to the state treasury since the Federal Court’s decision to pay the salaries of Kurdistan employees.”
She added, “The salaries of the region’s employees are estimated at 13 trillion dinars, as all that the Kurdistan Regional Government has paid is 320 billion dinars from its non-oil revenues.”
She pointed out that "financial allocations for the ration card and the food basket were secured, sufficient for the next six months, and that the improvement in oil prices was naturally reflected in the financing, as we will release today more than 400 billion dinars from the governorates' allocations." https://www.mawazin.net/Details.aspx?jimare=255947
In Numbers.. The 2024 Budget And The Rate Of Iraqi Oil Sales
Time: 2024/10/14 08:02:11 Read: 1,326 times {Economic: Al Furat News} The Prime Minister’s advisor for financial affairs, Mazhar Muhammad Salih, stated that the 2024 budget, which entered into force, had a “precautionary deficit” of about 64 trillion dinars.
Saleh said in a press statement that the average Iraqi oil sales for 2024 are estimated at no less than $75 per barrel, noting that the general financial need for {bridge loans} (which are short-term loans) to address the possibility of a deficit may not exceed 10 trillion dinars in all cases, which are borrowing amounts permitted under Law No. 13.
The financial advisor added that the country's {financial life} in 2024 is proceeding smoothly, wondering, otherwise how did the Ministry of Finance issue 2024 in cooperation with the Central Bank of Iraq {Achievement Bonds} for public subscription?
Saleh explained that these bonds are denominated in Iraqi dinars and come in multiple categories, including a category of 500,000 Iraqi dinars for two years with an annual return of 6.5%, indicating that these bonds are a safe investment, as the government is committed to paying annual interest on them, and they are an integral part of bridging the deficit in the general budget for the year 2024, which means that they will come into effect. LINK