Iraq Economic News and Points to Ponder Thursday 4-18-2024
Tlm724 Administrator Bondlady’s Corner
Al-Alaq: Forming A Committee With The Ministry Of Treasury And The Federal Bank To Address And Correct Violations Of The Sanctioned Banks
Thursday 18, April 2024 22:48 | Economical Number of readings: 155 Baghdad / NINA / The Governor of the Central Bank, Ali Al-Alaq, revealed today, Thursday, the agreement, during Prime Minister Muhammad Shia Al-Sudani’s current visit to Washington, with the Ministry of the Treasury and the Federal Bank to form a committee to address and correct the violations of the sanctioned banks, while confirming that both parties praised the Central Bank’s procedures to get rid of… The old system in the financial transfer file, 80% of which was deducted.
Al-Alaq said in a televised statement, “The issue of the US Treasury’s sanctions on Iraqi banks was discussed during the visit of Prime Minister Muhammad Shia al-Sudani to Washington by the Prime Minister and his accompanying delegation, and following the initial meetings that took place, an expanded meeting was held with the US Treasury and the Federal Reserve Bank in “This is a way for us to translate the intentions and initial approvals, develop a road map for dealing with this issue, and determine the required procedures.”
He added, “The issue was discussed in detail and we agreed to form a team of the three parties (the Central Bank of Iraq, the US Department of the Treasury, and the US Federal Bank), and we are reviewing reports from various audit sources to determine the nature of each of the violations committed against the banks and determine the corrective action required for the banks to be… In good and proper condition.”
He continued, “Therefore, we will begin this plan through joint work to reach final results related to a report regarding the status of each of the banks that have been sanctioned,” noting that “the atmosphere of dialogues and discussions is very positive.”
He stated, “It is very clear, in light of the ongoing relationship with the Ministry of the Treasury and the Federal Bank and reviewing developments related to the measures taken, that there was great praise for Iraq’s measures, and the Undersecretary of the Ministry of the Treasury confirmed during his meeting with the Prime Minister that what the Central Bank did in the framework of financial transfers during the last period The completion of 80% of transferring these transfers directly from the old system of correspondent banks deserves to be celebrated, and this gives an important indication that there are steps taking place steadily, and they expect that we will end the traditional method of transferring through the Central Bank and the Federal Bank and that the relationship will be direct between the banks. Local and correspondent banks by the end of the current year, which represents the remaining 20%.”
The Governor of the Central Bank continued, “For necessities related to Iraq having an ongoing relationship with the International Monetary Fund within a specific program for the purpose of giving positive signals to global financial institutions, given that the International Monetary Fund is more like an auditor of countries’ economies, we submitted a letter at the end of last month to the Fund’s management of Iraq’s desire to Entering a non-financing program, meaning that we do not need to borrow,
but within the framework of coordination, technical and advisory support, and entering into a plan that is in keeping with and harmonious with the government’s plan for economic reform, and we received an answer from the Director General of the Fund, which was very welcoming of entering into this program.”
He stressed: “In light of this and in these meetings, we have begun to enter into the details of the program plan and procedures that will be present soon through a delegation that will visit Iraq.”/End 9
https://ninanews.com/Website/News/Details?key=1121870
The US Ambassador Announces Loans Worth $50 Million To Support The Iraqi Private Sector
Thursday 18, April 2024 23:10 | Economical Number of readings: 163 Baghdad / NINA / The US Ambassador to Baghdad, Elena Romanowski, announced loans worth $50 million to support the Iraqi private sector.
The US Ambassador said in a tweet on the X website: I am proud to announce an agreement to grant a loan worth $50 million from the US International Development Finance Corporation, with support from @USAID, to the benefit of the National Bank of Iraq @NBIRQ… This loan will provide opportunities for small companies by providing loans. At a low cost, which will contribute to supporting the Iraqi private sector.
She continued: The United States supports access to financing for first-time borrowers and Iraqi women entrepreneurs./End 9 https://ninanews.com/Website/News/Details?key=1121875
Iraq Stresses The Importance Of Lockheed Martin’s Commitment To Opening Military Aircraft Maintenance Centers
Money and business Economy News – Baghdad Today, Thursday, Prime Minister Muhammad Shiaa Al-Sudani stressed the importance of Lockheed Martin’s commitment to opening military aircraft maintenance centers.
The Prime Minister’s Media Office stated, in a statement received by Al-Iqtisad News, that “Al-Sudani met in Washington with the CEO of Lockheed Martin, which is responsible for manufacturing F-16 aircraft, James Taiclet and his accompanying delegation.”
He stressed, “The importance of the company’s commitment to opening centers for the maintenance of military aircraft and providing spare materials for them inside Iraq, given the importance of this matter regarding the rehabilitation of Iraqi aircraft to maintain the security of the country.”
For his part, Taiclet expressed his “understanding and readiness to respond to the Iraqi government’s requests regarding the implementation of the terms of contracts for the supply of aircraft to Iraq, and the provision of all related supplies.”
https://economy-news.net/content.php?id=42583
The Stock Exchange Announces The Trading Of Shares Worth More Than 10 Billion Dinars Within A Week
Market Economy News – Baghdad The Iraq Stock Exchange (Stock Exchange) announced on Thursday the trading indicators for this week.
The stock exchange stated in a statement, seen by Al-Iqtisad News, that “the Iraqi Stock Exchange organized five trading sessions during the third week of April, from Sunday (April 14) to Thursday (April 18).”
The statement added, “During this week, the number of shares traded reached more than 7 billion shares, with a value of more than 10 billion dinars.”
She pointed out that “the market trading index for the first session of the week closed at (911.51) points, while the index closed at the end of the week at (957.71) points, achieving an increase of (4.82%) from its close at the first session.”
She continued, “During the week, (4,146) purchase and sale contracts were executed on the shares of companies listed on the market.” https://economy-news.net/content.php?id=42594
The Chairman of the Investment Authority signs the United Nations Convention on International Mediation
Chairman Of The National Investment Authority, Haider Makkiya
Economy News – Baghdad On Thursday, Chairman of the National Investment Authority, Haider Muhammad Makkiya, signed the United Nations Convention on International Mediation, known as the “Singapore Convention,” in New York City, noting that this agreement is a tool for facilitating international trade and promoting mediation.
Makiya said in his speech during the signing ceremony, which took place in coordination with the Iraqi representation at the United Nations, and was reviewed by Al-Iqtisad News, that “it is important to activate the Republic of Iraq’s accession to the Singapore Agreement on Mediation and International Investment Disputes, in accordance with the provisions of Law No. (14) of 2021.”
Referring to Cabinet Resolution No. (24203) of 2024 ratifying the International Commercial Arbitration Law, which included international standards for international commercial arbitration, stressing “the position of this agreement within the framework of enhancing the Iraqi investment reality.”
He added, “Iraq includes many international and qualitative strategic investment opportunities, the reality of which requires contracting with foreign companies specialized in investment, and what it requires to provide legal protection for companies, in the event of disputes arising from contracts concluded by state institutions with these foreign companies that prefer to resort to… International arbitration to guarantee its rights, as stipulated in Article (27/First) of Investment Law No. 13 of 2006, as amended.”
Makiya continued, “This agreement is a tool for facilitating international trade and promoting mediation, as well as being an alternative and effective method for settling commercial disputes,” noting that “the agreement will contribute to achieving sustainable development goals and encouraging the increasing use of mediation as an effective means of settling cross-border disputes for the purpose of preserving Commercial relations between the parties involved in the investment process.”
The head of the authority continued, “The agreement has a pivotal dimension due to its importance and the existence of several justifications for joining it, most notably finding an alternative method to litigation procedures before international arbitration bodies in disputes arising from investment through commercial mediation regulated by the provisions of this agreement,
especially since the Republic of Iraq joined in the year 2015 to the International Center for Settlement of Investment Disputes between States and Nationals of Other States, which gives foreign investors the right to resort to the Washington Center.
He stated, “Iraq’s accession to the Singapore Mediation Agreement is necessary to attract investments and achieve economic development purposes, especially in light of the transformation and adoption of a free market economy as an economic system for the country, in addition to referring many strategic projects to foreign companies and investors,” pointing out, “
A specialized program has been prepared for introductory workshops that the Authority will hold for all ministries and state institutions to educate their legal departments about the legal impact of this agreement, in cooperation with the UNDP.”
https://economy-news.net/content.php?id=42606
Oil continues to lose as tension in the Middle East eases
Economy | 04/18/2024 Mawazine News – Baghdad Oil prices fell, on Thursday, to their lowest level in three weeks, continuing their losses amid hopes for a decline in tension in the Middle East, which is one of the most important crude producing regions, while investors’ focus shifts to expectations of a decline in demand.
Brent crude futures fell only 60 cents, or 0.7 percent, to $86.69 per barrel, while US West Texas Intermediate crude futures fell 53 cents, or 0.6 percent, to $82.16 per barrel. Both declined for the fourth session in a row.
Prices fell by more than a dollar at their lowest levels during the session, and have also fallen by about four percent since the beginning of the week.
Investors are reducing the geopolitical risk premium on oil prices amid expectations that international pressure will succeed in curbing the severity of any Israeli response to the attack launched by Iran on April 13.
Ole Hvalby, commodity analyst at SEB Research, told Reuters that any new Western sanctions on Iran could be offset by increased production from other oil-producing countries, and their impact may be limited without Chinese cooperation.
According to Reuters data, Iran is the third largest crude producer in the Organization of the Petroleum Exporting Countries (OPEC), and a decline in the intensity of its conflict with Israel would reduce the possibility of supply disruption.
Analysts at JP Morgan highlighted in a note issued late Tuesday that global oil consumption since the beginning of April is 200,000 barrels per day less than expected, with an average of 101 million barrels per day.
The rise in US crude inventories also suppressed prices. The US Energy Information Administration said on Wednesday that crude oil inventories rose by 2.7 million barrels to 460 million barrels in the week ending April 12, compared to analysts’ expectations in a Reuters poll that inventories would increase by 1.4 million barrels.
Inventories rose with a decrease in refinery consumption at a time that usually witnesses an increase in refining activity in preparation for increased summer demand in the United States. https://www.mawazin.net/Details.aspx?jimare=246211
