State Bank Launches National Bonds Worth 2 Trillion Iraqi Dinars
The government-owned Rafidain Bank announced, on Monday, the launch of national bonds (first issue) in the amount of (2) trillion dinars for the period from February 10 to March 10, 2025.
He said in a statement received by Shafak News Agency that this comes in line with the directives of the Ministry of Finance and the Central Bank of Iraq.
He explained that the bonds are divided into two categories:
– A bond of 500,000 dinars (five hundred thousand dinars) with an annual interest of 6% paid every six months for a period of two years.
– A bond of 1,000,000 dinars (one million dinars) with an annual interest of 7.5% paid every six months for a period of four years.
He added that the bond is sold to banks as well as to the public (natural and legal persons).
He explained that the person (whether natural or legal) wishing to purchase submits a direct application to the bank, bringing with him the original identification documents.
Federal Reserve Praises Development of US Dollar Cash Distribution System in Iraq
The Central Bank announced, today, Sunday, the details of its meetings with the US Treasury and the US Federal Reserve.
The Central Bank stated in a statement received by / Al-Maalouma / agency, that “the first quarterly meetings for the year 2025 with the US Treasury and the US Federal Reserve, which were held in Dubai with the participation of international auditing and consulting firms (EY, K2 Integrity, Oliver Wyman), ended and the meetings were crowned with praise for the steps taken by the Central Bank of Iraq and the Iraqi government to reform the banking sector.”
He added that “the most important steps that have been taken are the development of the cash distribution system for the US dollar in Iraq, which they considered the most controlled and controlled system in the world, which limits manipulation and smuggling of the US dollar.”
The Central Bank explained that “the consulting firms (EY and Oliver Wyman) reviewed the plans to reform the public and private banking sector and upgrade it in line with international standards and to facilitate the involvement of Iraqi banks in the international financial relations network. The
Central Bank stressed, according to the statement, “the need to ensure the adoption of the official channels of this bank to know the latest news and not to transmit incorrect news such as the exposure of some Iraqi banks to international sanctions and others, because the operations carried out by banks operating in Iraq depend largely on the confidence of international correspondent banks in the Iraqi banking sector.”
The Central Bank of Iraq reveals details of its meetings with the US Treasury and Federal Reserve
The Central Bank of Iraq announced, on Sunday, that its quarterly meetings with the American side and international auditing companies had yielded positive results, denying that some Iraqi banks were subject to international sanctions.
The bank stated in a statement received by Shafaq News Agency that the first quarterly meetings for the year 2025 with the US Treasury Department and the US Federal Reserve Bank, which were held in the United Arab Emirates with the participation of international auditing and consulting firms ( EY , K2 Integrity , and Oliver Wyman ), were crowned with praise for the steps taken by the Central Bank of Iraq and the Iraqi government in reforming the banking sector.
He pointed out that the most important of these reforms are:
1- The development of the US dollar cash distribution system in Iraq, which they considered the most controlled and monitored system in the world, limiting manipulation and US dollar smuggling operations.
2- The qualitative shift in foreign transfer operations and the steps taken by the Central Bank of Iraq to address the risks arising from these operations, which have now risen to the levels of transfer operations carried out by international banks.
3- The consulting firms ( EY and Oliver Wyman ) reviewed the plans to reform and upgrade the public and private banking sectors in line with international standards and to facilitate the involvement of Iraqi banks in the international financial relations network.
The bank added, “Since the operations carried out by banks operating in Iraq depend largely on the confidence of international correspondent banks in the Iraqi banking sector, we stress the need to ensure that the official channels of this bank are adopted to know the latest news and not to transmit incorrect news such as some Iraqi banks being subject to international sanctions and others.”
Iraq’s central bank reserves fall in November
The Central Bank of Iraq revealed that its net foreign reserves decreased by 1.59% during November 2024, compared to the previous month.
The bank explained in a report seen by Shafak News Agency that “net foreign reserves decreased to 137.09 trillion dinars, compared to October, when it reached 139.31 trillion dinars, and also recorded an annual decline compared to the same period in 2023, when reserves were 147.148 trillion dinars.”
The report added that “the annual growth of these reserves witnessed a decrease of 7.05%.”
On the other hand, the bank pointed out that “the dollar exchange rate decreased in the parallel market during the month of November, reaching 1,510 dinars against the dollar, compared to October, when it recorded 1,520 dinars.”
Approval of the Oil and Gas Law: A Final Solution to Stop the Smuggling of the Region’s Oil and Protect Iraq’s Wealth
The issue of smuggling oil from the Kurdistan Region remains a subject of wide controversy within political and popular circles, as it is raised from time to time, especially when discussing the annual federal budgets.
Reports indicate that the regional government is exploiting financial revenues away from federal oversight, while smuggling operations continue despite the decisions of the Federal Court that stressed the need to subject the oil sector in the region to the authority of Baghdad.
Despite these decisions, the region is accused of smuggling oil through unofficial outlets, which deprives the state of significant financial revenues, while the federal government faces international pressure, especially from the United States, to approve additional financial commitments in favor of the region, even if they conflict with Iraqi laws.
These pressures contributed to the passage of new financial allocations to the regional government within the budget, despite its failure to commit to handing over oil revenues to Baghdad.
Calls for urgent action
In this context, Al-Fatah Alliance member Ali Al-Fatlawi confirmed that “oil smuggling operations by the Kurdistan Region are still ongoing without any accountability,” calling on the federal government to “urgently intervene to end this file that is draining the national wealth.”
Al-Fatlawi said in a statement to Al-Maalouma Agency, “Smuggled oil is a national wealth that belongs to all Iraqis, and is not limited to the region.”
He pointed out that “the region continues its smuggling operations, and at the same time demands money from Baghdad without paying its due financial obligations.”
He stressed the “need to take firm measures to put an end to this breach, which represents a clear plundering of the country’s resources,” calling on the government to “intensify its efforts and pressure to stop the smuggling operations that are taking place without any oversight or legal accountability.”
Approval of the Oil and Gas Law…the decisive solution
For his part, the head of the Generations parliamentary bloc, MP Mohammed Al-Sayhoud, called on the political forces to give priority to approving the oil and gas law, stressing that “the problem between the federal government and the region was resolved after amending Paragraph 12 of the Federal Budget Law, which opens the way for the legislation of the awaited law.”
Al-Sayhoud said in a statement to Al-Maalouma Agency, “The smuggling of oil from the region has negative repercussions on the Iraqi economy and the state’s financial resources,” considering that “the best solution to stop these operations lies in enacting the oil and gas law.”
He added that “the recent understandings between the federal government and the regional government regarding calculating the cost of producing and exporting the region’s oil pave the way for political forces to include the oil and gas law on the agenda of the House of Representatives,” calling on political forces to “pressure to pass the law as soon as possible to ensure control over the oil sector and prevent any future violations.”
400 thousand barrels are smuggled daily
According to media reports, the volume of oil smuggled from the Kurdistan Region is estimated at about 400,000 barrels per day, in light of the lack of transparency regarding the fate of the revenues resulting from these operations. Observers confirm that the continuation of smuggling is causing great harm to the national economy, which requires serious action to resolve this issue by enacting the oil and gas law and ensuring the region’s compliance with federal laws.
Date set for resuming Kurdistan crude oil exports.. Iraqi Oil Minister: Gas investment projects are ongoing
The Iraqi Minister of Oil, Hayan Abdul-Ghani, announced on Monday the implementation of several gas investment projects, and while calling on international companies to submit their offers to compete in the upcoming licensing rounds, he revealed that the resumption of the export of Kurdistan Region’s oil via the Turkish Ceyhan pipeline will be “within a week.”
Abdul Ghani said, during the opening of the Iraqi-British Businessmen Forum in Baghdad, followed by Shafaq News Agency, that “the Ministry of Oil is currently implementing several projects to invest in gas, most notably the contract with the French company Total to produce 600 million cubic feet in Basra Governorate and 200 million cubic feet of gas with Baker Hughes to invest in gas from the fields of Nasiriyah city.”
He pointed out that gas production operations have begun from the Akkas gas field in Anbar Governorate with a capacity of 400 million cubic feet, in addition to other projects in the Halfaya field in Maysan Governorate and Mansouriya in Diyala that are under implementation within the framework of the fifth licensing round for gas investment in a number of governorates.
He stated that Iraq is working through these projects to meet domestic consumption requirements, especially with regard to operating power stations in the country.
Abdul Ghani called on international companies to submit their offers to compete in the new licensing round to invest in the fields and exploration areas that the Ministry of Oil intends to offer for investment in the future in a number of Iraqi provinces.
He stated that the Ministry of Oil is currently implementing major projects to meet refining requirements and build new refineries, in addition to projects to build new lines to export oil and gas.
On the other hand, Abdul Ghani confirmed that Baghdad and Erbil are in the process of putting the final touches on the start of “receiving and exporting Kurdistan Region oil within a week,” after disputes that lasted for about two years and led to the cessation of exports.
The Kurdistan Region used to export 450,000 barrels of oil daily through the Turkish port of Ceyhan, without the approval of the federal government in Baghdad. However, these exports stopped in March 2023 after an international arbitration panel issued a decision in favor of Baghdad, prohibiting any export of the region’s oil except through the federal government’s oil company, SOMO.
Abdul Ghani said, “We have agreed with the region to receive no less than 300,000 barrels per day from the region’s fields, to export them through the Turkish port of Ceyhan.”
He pointed out that a delegation will head from Baghdad to Erbil next Tuesday “to negotiate a mechanism for using the oil,” adding that “its export will resume within a week.”
In early February, the Iraqi parliament approved an amendment to the general budget that would settle the dispute between the Kurdistan Region and the federal government in Baghdad over receiving the region’s oil.
The amendment stipulates that “compensation” be paid to the Kurdistan Regional Government for the cost of producing oil and transporting it to the federal government, according to the text published by the official media.
Kurdistan Region oil exports through the Turkish port of Ceyhan have not resumed since Turkey closed the pipeline in 2023, after an arbitration court ordered Ankara to pay about $1.5 billion in compensation to Baghdad for transporting oil from the Kurdistan Region without the Iraqi government’s approval.
Al-Sudani inaugurates the Digital Transformation Center: It will reduce financial costs and fight corruption
Prime Minister Mohammed Shia Al-Sudani inaugurated the Digital Transformation and Automation Center on Monday, while stressing that the contact between the citizen and the employee is a source of procrastination, and digital transformation will overcome the most important obstacles, in addition to reducing financial costs and fighting corruption.
Al-Sudani’s media office said in a statement received by Shafaq News Agency that the latter “opened the Digital Transformation and Automation Center at the headquarters of the Ministry of Higher Education and Scientific Research, and toured the center, and reviewed the new mechanism for adopting automation and ending paperwork, in implementation of the government’s vision in implementing administrative reform, simplifying procedures, and eliminating bureaucracy and routine.”
He added that ” the Supreme Committee for Digital Transformation was formed under the chairmanship of the Prime Minister and the membership of the relevant ministers, so that the transformation would be an effective decision and not limited to separate steps. It was also decided, based on a study submitted by a technical committee, to establish a (National Center for Digital Transformation) and a (National Center for Cybersecurity).”
Al-Sudani stressed, according to the statement, that “ all transactions, starting from the application procedures for students, up to acceptance, and the transactions of employees and citizens, are moving towards digital transformation, and this includes 2,500 employees working at the ministry’s headquarters, which constitutes a turning point and an achievement for the ministry, indicating that converting citizens’ requests to electronic form will make the process easier in various applications.”
Al-Sudani continued : ” The government program confirmed that the current government is a government of service, and it is directly linked to the digital transformation . We do not want the digital transformation to be just a media show , but the citizen must feel the changes in the service he receives.”
He pointed out that ” we must move within 3 years to the level of an independent body or ministry concerned with digital transformation and cybersecurity , and the plans do not prevent ministries from taking the initiative to improve their service towards digital transformation in order to improve the service provided to the citizen ,” adding that ” the contact between the citizen and the employee is a source of procrastination, and digital transformation will overcome the most important obstacles, and digital transformation provides direct service , reduces costs, and fights corruption .”
He added, ” The more we are able to improve this service and facilitate it for the citizen, the more we will have achieved the slogan of service and follow-up of work, and we will join the world in the field of artificial intelligence and qualitative leaps, and all efforts must be made in the field of electronic transformation and keeping pace with global scientific development .”
He pointed out that ” young students have the capabilities and willingness to make efforts in the field of development , digital transformation and the use of artificial intelligence , and we must choose the qualitative specializations required in the labor market that prepare human capital for the digital transformation process .”
The Central Bank of Iraq refutes allegations that Iraqi banks are subject to international sanctions
The Central Bank announced the end of the first quarterly meetings for the year 2025 with the US Treasury and the US Federal Reserve, while refuting allegations that Iraqi banks were subject to international sanctions.
The bank stated in a statement that it “announces the end of the first quarterly meetings for the year 2025 with the US Treasury and the US Federal Reserve Bank, which were held in Dubai with the participation of international auditing and consulting firms (EY, K2 Integrity, Oliver Wyman). The meetings culminated in praise for the steps taken by the Central Bank of Iraq and the Iraqi government in reforming the banking sector, the most important of which were:
1- The development of the US dollar cash distribution system in Iraq, which they considered the most controlled and monitored system in the world, which limits manipulation and US dollar smuggling operations.
2- The qualitative shift in foreign transfer operations and the steps taken by the Central Bank of Iraq to address the risks arising from these operations, which have now risen to the levels of transfer operations carried out by international banks.
3- The consulting firms (EY and Oliver Wyman) reviewed the plans to reform and upgrade the public and private banking sectors in line with international standards and to facilitate the involvement of Iraqi banks in the international financial relations network.
The statement continued, “Since the operations carried out by banks operating in Iraq depend largely on the confidence of international correspondent banks in the Iraqi banking sector, we stress the need to ensure that the official channels of this bank are adopted to know the latest news and not to transmit incorrect news such as some Iraqi banks being subject to international sanctions and others.”
