The dinar. Unmounted. Descending


Thursday 18-07-13 03: 13 pm

Author:


Zia Rahim Mohsen

For we see Iraqi dinar exchange rate, it regresses to maintain stable exchange rate somewhat, which comes with a big question, what is the reason for the decline of the value of the dinar? Is that the reason for this is due to the poor economic policies pursued by the Central Bank? Or are there other reasons?!

Far and wide know the composition of the Iraqi economy, rentier economy is working on two contradictory; the first axis: the State’s economy is dominated by over 80% of GDP, or so-called national income; in addition to his direct responsibility to provide 99% of the cash inflows of foreign exchange, and its direct link to the critical edition of the Central Bank of the movement.

Theme II: the market economy that has the greatest efficiency in the management of the results of the State’s economy, which is reflected in the budget in the Government expenditures, which represent 60% of all government spending.

And yo’sharh from private to this market by outflows from the country’s foreign exchange market and the desire to acquire foreign currency, accrued from Central Bank reserves, which represent a cover for those rights.

When the free market is dominated by the workings of the economy, and freedom in external conversion process in addition to using an open-door policy in foreign trade to the private sector, and with the absence of vision and development strategy for the development and advancement of economic reality, the economy turns into severe bilateral rent in foreign currency supply to foreign trade and import trade financing consumer character, which makes Iraq an incubator for consumption and export to other countries.

The CBI’s work on keeping the stick of Center of balance between two contradictions: the economy of the State and the economy, and keep up with the rental market, which serves the marketing activity internal and outward movement of funds regardless of the results to build an economic model generates movement and outside the inflows in foreign currency away from these bilateral or highly polarized between different economies (the economy of the State and the market economy), and the inflows of foreign currency provided by the State economy, and other emerging from foreign currency gasping behind the private sector.

Over all, what was the reaction of the monetary authority of the Iraqi Central Bank? The CBI have exercised a policy of intervention in the foreign exchange market, reaching a stable level of the exchange rate "and is noted by citizens throughout the period Mr. Alshabibi Governor of the Central Bank so that the Monetary Authority has been able to maintain a stable price level, inflation dropped from secondary ten-year levels to one decimal place, add to that the rising Central Bank reserves of foreign exchange to a distant alasharitIn terms of dollar value "and is the highest in the history of the country" and with this, the Central Bank could not resolve the battle between market economy and the profit, between the State economy and predisposition to uniqueness in an attempt to find profit; a lack of vision for the movement of Iraqi economic system.

Making the Iraqi economy lost trying to find viable solutions, resulting in the deterioration in the exchange rate of the Iraqi dinar, the trend towards economic freedom, and foreign currency swap rights maintained in dinar for the purpose of achieving economic stability, imposing a burden on monetary policy for the Central Bank to intervene to sell the dollar in a bid to maintain the stability of the exchange rate of the Iraqi dinar against other currencies Foreign, which needs a bold decision shows the outlines of the economy; either move to an open-door policy with all consequences resulting from attrition in oil revenues to ensure well-being and stability "with the apparent absence of development policy in the rest of the productive sectors" to be decided by the political leadership in the country and to the Central Bank because of incomplete economic system around the country after manyTalk about the transfer of $ 180 billion between 2003 and 2012, generated by the economy of the State after spending for the same period by the General almwazant $ 450 billion dollars, which remained absent development economy for lack of an attractive investment climate and the unresolved economic vision to this contradiction, and launches a free market mechanisms as emerging economic powers interested after 2003, the results of the economic stability of the country will continue to be vague and will coexist with parallel exchange market turmoil to unknown long-term consequences and possibly disastrous In price stability and the standard of living and a painful daily concerns in the economic life of Iraqi families and the general economic activity.

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130 Minutes long

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(Highlights were emailed to Recaps and are paraphrased and not word for word)

Tony Highlights on his Conference Call Just Now: (Friday 1-3pm est)

— TONY STATES: Iraq mosques had their announcements today. They are told it may happen from today to the next 10 days – Tony thinks possibly on Tuesday on their feast day …BUT… Tony thinks with what news he has here in the USA it will happen sooner.

–In Iraq yesterday everybody’s cards were loaded so they know it is coming and will be able to use them soon.  Tony states his intel tells him there were planned riots in Iraq if something didn’t happen so they had to announce this today as they did.
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Read More link on Right

–Tony’s notification of the RV announcement from the UN came to him out of Washington DC. I got it from the highest levels you can imagine that you can get it.

–It was announced for a purpose. Other Intel people are verifying the same info now. Tony was ahead of the curve and got a lot of heat for it.  

–TONY STATES: People in the banks were in meetings for final instructions…(remember Citi last night) they were fully expecting it last night after 8pm and that was based on the bank meeting yesterday AM.

–TONY STATES: The meetings gave assignments for currency locations. Bank people were under Non-disclosure agreements regarding details. (Tony states how long do you think they can sit on this without talking so something has to happen soon)

–The qualifications and rates will be given to Tony when released.

–TONY STATES: When we go in to the bank, the person we deal with—works for the bank…remember that. They are there in best interest for the bank. Pay attention to what you are signing. Tony is trying not to say things too sensitive…appt’s are to be 20 min or so…and then they want us to meet their broker to invest with them.

 –TONY STATES: Did go live on NASDAC at 5:45pm at $5.58 and $.58, 2 days ago but not FOREX.

–TONY STATES: Wells Fargo contracted with Mom and Pop type banks to send folks where there are no Wells Fargo near to the zip code of each person, of those who choose to dial the 800 number

 –Tony does not see WF sitting on this exchange center information for 10 days and expect it to remain private and quiet – somebody will talk.

–TONY STATES: The bankers in WASH DC are meeting right now to discuss activation.

 –TONY STATES: A countdown already started today, but was put off.  They were in the last 15 minutes count down this morning and they changed it and called this meeting in DC right now. He just got a text hearing they are back “at the starting line” and expect news later on today.

 –TONY STATES: Banks – they have people/procedures in place to prepare for some employees who may go ballistic (when they find out about the Dinar and its value) they are prepared for this even for those people who are upset for having to wait so long for this to happen.

 –TONY STATES: They do listen to these calls and they have made changes to procedures and policies based on whats going on.

 –TONY STATES: I don’t plan on doing a call this afternoon but more information is coming out and I may be doing another call ONLY if information warrants me to schedule another show…. if the info is not that major I may do a Tony Blast or just wait till another call…

Nuri al-Maliki and Masoud Barzani talk as they hold a joint news conference in Baghdad,MPs from the ruling State of Law Coalition and the Kurdistan Alliance confirmed the presence of positive vibes between the federal government in Baghdad and the Kurdistan Regional Government (KRG) in Erbil regarding the possibility of passing the Oil and Gas Law, which governs the management of oil wealth in the country. The law is supposed to be passed during the current legislative session, which ends in early 2014.However, the MPs preferred to maintain discretion regarding information on the final draft of the law.

A high-ranking source in the office of Iraqi Prime Minister Nouri al-Maliki told Al-Monitor that “Prime Minister Maliki and KRG President Massoud Barzani discussed during the latter’s latest visit to Baghdad an amended draft of the Oil and Gas Law and agreed on showing it to their partners, so that it can soon be passed in the Iraqi parliament, before the current legislative session ends in early 2014.”

However, the federal government and the semi-autonomous KRG disagree on oil and its imports in the northern provinces. While Baghdad demands that the agreements with foreign and local companies on the drilling operations happen with its knowledge and that the region send the export revenues to the federal government, the Kurdistan region wants the federal government to pay the dues of oil companies working for it, before requiring oil revenues to be sent to Baghdad.

The Oil and Gas Draft Law has undergone several amendments since 2011, but it has not received the needed consensus yet.

On July 7, 2013, Barzani visited Baghdad and met with Maliki amid a positive atmosphere, favoring the resolution of the pending issues between both sides, namely the distribution of oil wealth management powers in the country.

Kurdish MP Farhad al-Atroushi, who is close to Barzani, told Al-Monitor, “The current phase is witnessing an agreement between Baghdad and Erbil regarding the Oil and Gas Law.”

Atroushi, an MP in the Iraqi parliamentary Oil Committee, added, “The Law of Provincial Authorities that was recently legislated and that granted local governments the privilege of participating in the management of oil wealth with the federal government pushes the latter to legislate the Oil and Gas Law, to reach a final decision regarding the situation in the Iraqi Kurdistan Region. Otherwise, chaos will break loose in the Iraqi oil sector.”

He continued, saying, “I cannot say that Barzani and Maliki have agreed on passing the Oil and Gas Law, but they see eye to eye on this matter.”

He said, “This issue will be settled during the discussions of the sub-committees that were set up for this purpose between Baghdad and Erbil.”

According to Atroushi, “It is better for the central government to enact the Oil and Gas Law, even if it grants [the Kurdistan region] broad powers to enter into contracts with foreign oil exploration companies.”

In a news conference held following Barzani and Maliki’s meeting, the latter talked about the importance of “resolving in a realistic and brotherly way” the problems between Baghdad and Erbil. Barzani, however, said that his visit to Baghdad was designed “to send a message to the external and internal arenas that we are brothers, and are keen to communicate [with each other]. This is particularly true since we live in a region full of problems and crises, which we will overcome based on cooperation between us.”

In parallel, Jamal Bahauddin, a member of Maliki’s State of Law Coalition, said, “Ongoing discussions and meetings on the oil and gas legislation between the Kurdistan Region and the federal government are taking place.”

Bahauddin, who is also a member of the Iraqi Parliamentary Oil Committee, said in a statement to Al-Monitor, “There has been a convergence of views, but nothing has been decided yet.”

Asked whether or the Iraqi parliament would pass the Oil and Gas Law before the current session expires, he contented himself with saying that “there are sub-committees, [including members from the various] political blocs, that were set up to negotiate this matter, and they continue to hold meetings.”

The Iraqi parliament formed in September last year a sub-committee to examine the controversial issues in the Oil and Gas Law and to develop a new draft.

Furat al-Shara, a member of the Oil Committee, said, “The heads of Iraq’s political blocs must take advantage of the political calm that followed the visit of the Kurdistan region’s president to Baghdad to pass the Oil and Gas Law.”

Speaking to Al-Monitor, Shara, a member of the Islamic Supreme Council of Iraq headed by Ammar al-Hakim, said, “The Oil and Gas Law is under discussion in all basic, strategic and high level sessions. For this reason, ad-hoc committees were formed to approve it.” He confirmed that “the members of the parliamentary Oil Committee will submit the recommendations of the ad-hoc committee to approve the law.” Yet, he refused to disclose these recommendations.

Shara added that “it seems that everyone objects to allowing this law to be transferred to the next parliamentary session.” 

Source: Al-Monitor



Citigroup Inc. (C)’s decision to open in Iraq and the easing of United Nations sanctions dating back to the Saddam Hussein era are driving yields on the OPEC oil producer’s bonds down from a four-year high.

Yields on the Middle Eastern nation’s $2.7 billion security due January 2028 slid 137 basis points to 7.43 percent in the eight days from June 24 after Citigroup became the first U.S. lender to venture into Iraq since Hussein was toppled a decade ago. That compares with a 39 basis-point drop to 5.19 percent in the HSBC/Nasdaq Dubai Middle East Conventional Sovereign US Dollar Bond Index in the period. Iraq’s bonds yielded 7.4 percent at 4:20 p.m. today in Baghdad.

Citigroup, JPMorgan Chase & Co. (JPM) and Standard Chartered Plc (STAN) are the latest international banks to expand in the second-largest producer in the Organization of Petroleum Exporting Countries. The UN Security Council added to investor confidence by voting on June 27 to remove the threat of military enforcement on the issues of Kuwaiti people, property and archives missing since Iraq invaded the country in 1990.

Citigroup’s announcement “had an impact because it meant that big banks are going into Iraq,” Sanjay Motwani, president of Singapore-based Sansar Capital Management LLC, which manages a fund with $30 million invested in Iraqi equities, said in a telephone interview. “Therisk premium for Iraq sharply dropped after June 24, mainly in anticipation of the UN decision to ease the sanctions, which was eventually adopted June 27.”

Oil Output

Iraq, with the world’s fifth-largest proven oil reserves, is boosting output and rebuilding its economy after decades of sanctions, war and neglect. Exxon Mobil Corp. (XOM)OAO Lukoil (LKOH) and other companies helped boost production by 24 percent in 2012. The government is increasing spending by 18 percent this year to $118 billion, and the International Monetary Fund forecasts an annual economic growth rate of 9 percent, the fastest after Libya among 18 countries in the region.

The spread between Iraqi sovereign bonds and U.S. Treasuries, which peaked this year at 653 on June 25, has narrowed since then by 127 basis points, or 1.27 percentage points, JPMorgan Chase’s EMBIG Sovereign Spread Iraq index shows. The spread was 506 basis points yesterday.

‘Strong Performer’

“In a global context, Iraq has been a strong performer,” Gabriel Sterne, a London-based economist at Exotix Holdings Ltd. whose research includes 40 frontier-market sovereigns, said in a July 16 e-mail. “There is the usual trade-off between political risk and strong revenues that investors have to weigh up. So I think the bonds are roughly fairly valued.”

Car bombings and other violent acts threaten to undermine the country’s stability. The yield on Iraq’s bonds gained 20 basis points after July 2 amid a wave of deadly violence. At least 337 people have been killed in attacks across the nation so far this month, the Associated Pressreported, citing police and local officials.

Iraq faces internal political wrangling and a dispute between the central government in Baghdad and the semi-autonomous Kurdish region, which has halted oil exports by pipeline since December. Street protests by minority Sunni Muslims, worsening relations with Turkey and the civil war in neighboring Syria contribute to tensions in the country.

UN Vote

The UN Security Council boosted Iraq’s prospects when it agreed that the issue of missing Kuwaiti citizens and disagreements over Kuwaiti archives and property should be resolved peacefully, under Chapter 6 of the UN Charter. The council kept the constraints pertaining to an arms embargo and war reparations under Chapter 7, which allows the use of force.

Iraq has set aside 5 percent of its oil revenue to pay compensation to Kuwait for war-related damages and will repay the $11 billion it owes by 2015, Iraqi Foreign Minister Hoshyar Zebari said June 12.

“The fact that some sanctions under Chapter 7 have been lifted means that it will be easier for international banks to trade and have a relationship with local Iraqi banks,” Sansar’s Motwani said.

Foreign banks were barred from the nation until after the U.S.-led invasion ousted Hussein’s government. Today, 15 international banks operate in the country of 33 million people. They compete with seven state banks, 23 private lenders and nine Islamic banks, according to the central bank’s website.

Asiacell Listing

The country’s stock exchange attracted investors in the February listing of Asiacell Communications PJSC, which raised $1.3 billion in the Middle East’s biggest initial public offering since 2008.

Citigroup plans to open representative offices and branches in Baghdad and the cities of Basra and Erbil to benefit from an estimated $1 trillion of infrastructure spending, Mayank Malik, the U.S. bank’s chief executive officer for Jordan, Iraq, Syria and the Palestinian territories, said in a June 27 interview. The lender is also among international banks seeking to finance a pipeline to export Iraqi oil and natural gas through Jordan.

Standard Chartered plans to open branches this year in Baghdad and Erbil, followed by a third office in Basra, a southern oil hub, in 2014. JPMorgan Chase signed a one-year agreement on July 6 to help the Trade Bank of Iraq finance imports of goods and services, John Gibbons, managing director and EMEA regional executive for the New York-based bank, said in a July 7 interview.

“Foreign banks entering Iraq are mainly there for trade finance, as companies from their respective countries need financial tools and services to do business in Iraq,” Abdul-Aziz Hassoun, executive director of the League of Private Banks, an Iraqi business group, said by phone on July 17.

“Iraq is a promising market because of the rising oil revenue and infrastructure projects which have helped boost the level of trade finance on an annual basis,” he said.

Source: Bloomberg

Baghdad (AIN) -MP, Ouday al-Awadi, of al-Ahrar Bloc and the member of the Oil and Energy Parliamentary Committee called the MPs to support the Iraqi citizens through investigating the Minister of Electricity, Karim Aftan, next week.

Awad reported in a statement received by AIN ”We call upon all the MPs to support the Iraqi citizens by holding an investigation session with the Minister of Electricity next week, ” he added, noting that ”The Presidency of the Cabinet has scheduled the next week to investigate Aftan by asking him (30) questions, mostly regarding the electric production stations contracts.”

“We hope all sides not to intervene in the investigation or try to postpone it since it has been scheduled two years ago and we should put the interest of the citizens above any considerations,” he added.

Most of the Iraqi provinces are suffering a great lack of electric power equipping which lead to organize demonstrations in Basra and Dhi-Qar provinces.

LINK

 

Baghdad (AIN) -MP, Ouday al-Awadi, of al-Ahrar Bloc and the member of the Oil and Energy Parliamentary Committee called the MPs to support the Iraqi citizens through investigating the Minister of Electricity, Karim Aftan, next week.

Awad reported in a statement received by AIN ”We call upon all the MPs to support the Iraqi citizens by holding an investigation session with the Minister of Electricity next week, ” he added, noting that ”The Presidency of the Cabinet has scheduled the next week to investigate Aftan by asking him (30) questions, mostly regarding the electric production stations contracts.”

“We hope all sides not to intervene in the investigation or try to postpone it since it has been scheduled two years ago and we should put the interest of the citizens above any considerations,” he added.

Most of the Iraqi provinces are suffering a great lack of electric power equipping which lead to organize demonstrations in Basra and Dhi-Qar provinces.

LINK

 

GET:

[goldeagle] For those that may not realize it, the CBI is closed for three days due to excessive heat. Do I believe that reason, no. Their getting ready probably for Sunday or Monday as the UN already let the cat out of the bag and intentional leaks are done for a reason. So try to stay cool, get out of the heat and just sit back and wait as this can happen at any time.

 [Agent 007] goldeagle bingo and thanks for summing that up for us all

 [debo24] goldeagle , cbi is not closed for heat.

[oilerfan] goldeagle yes their is a reason for everything

 [Agent 007] debo24 that is correct – it is hotter in places here in the US than in Baghdad lol

[goldeagle] Agent 007 i have a very strong feeling that the information that Tony was “allowed” to release was done for a reason. don’t think for a minute that these leaks don’t happen by design.
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Read More Link on Right

[Miner1] debo24 thought it is a three day holiday?

 [Agent 007] goldeagle well let’s hope this “leak” (intentional or not) is it

[Agent 007] lol

[WTCUTTER] Agent 007 yea but the usa has not revalued either today roflmao

 [Agent 007] debo24 right – it was around 109 there yesterday – big deal

[Agent 007] closed for heat – my eye

[Agent 007] roflmao

[debo24] Miner1 , Friday is holy day, sat closed and if not open on sunday first day of there work week maybe something with that not sure

[goldeagle] Agent 007 When you listen to tony’s calls, he’s always getting text messages as to what he can or cannot say and he even has been chastized for saying too much like the Indonesian Rupeia. So take it for what it’s worth. That blast yesterday was no accident.

 [Agent 007] goldeagle I agree

 [Lady Sarah] debo24 we are all hoping of course that the extra ‘day off’ had some meaning for us

 [debo24] Agent 007 , why can’t the war be closed for heat, it is 118 here everyday lol lol

[goldeagle] arizona49 Hot as hadies here in NY with temps expected to pass 110. Phew!!!!!

[IslandDancer] Mountain Goat may have got wrong the message. Last week her iraq source may have been saying actually that this week would be an RV announcement at 2:15. That would explain why so many IMF and other sources are reporting the announcement this week when only mountain goat got a report of an announcement last week.

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[lgtennis] hey everyone

 [lgtennis] yes it is confirmed un did announce period

[angelbabies28] lgtennis so when do you think iyo that we would see it here

[bigdogmom] lgtennis so what does that mean to all of us dinar aholics roflmao

 [lgtennis] anytime by monday imo ANYTIME

 [bigdogmom] lgtennis three day weekend celebration?

[lgtennis] well lets just say this

 [lgtennis] they arent closed for heat

 [lgtennis] thats for sure

[monster] felling hot hot hot, feeling hot hot hot…

[angelbabies28] lgtennis we knew that

 [bigdogmom] lgtennis If it was announced in the UN and Iraqi’s have word, what are your feelings as why to stretch this out, why wouldn’t it happen immediately.

 [angelbabies28] bigdogmom banks are closed there maybe?

 [lgtennis] bigdogmom imo the united states

bigdogmom] angelbabies28 lgtennis That would give them time to celebrate and tony said it was announced in the mosque this morning and would give them 10 days doesn’t make sense to me IMO

[lgtennis] bigdogmom well we dont have to wait 10 days

[lgtennis] at all

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I4U:

 [1biz4u] mbillions I believe Jester would have come in by now if the confirmations of the UN announcement were not true. imo

 [Robertprofessor] 1biz4u I think the announcement was not to leave the room. Apparently, it was not made in the General Assembly. Perhaps we should count ourselves lucky that it was leaked to various intel providers.

[BLESSME] Robertprofessor how long do you think till it shows to public

 [Robertprofessor] BLESSME I like Papa Bear’s answer on that, a few days.

[Austin-Powers-For-PM] For what it’s worth, CBI.iq is down.

[shatterstar] Austin-Powers-For-PM yep it sure is…. maybe because of the heat?? HMMMMMMMM

[dinardiamonds]  does omega call confirm tony

Deb2blessed] they answered 50 cash in questions– to much to list~~~ one thing was that the brokerage accounts give you full control over and immediate access to your money–which we did not know

k[Jamison] deb2blessed the brokerage accounts, are solely controlled by you, nobody else can touch it and it is covered against bank and goverment theft

 [deb2blessed] the Omega call was in line with Tony as they said it was done, finished– all ready to go!

[deb2blessed] Jamison yes– thanks, I forgot to mention that part

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Nesara BlogSpot Dinar Update: John MacHaffie

http://www.nesaranews.blogspot.com/

RV/PP/REPUBLIC INTEL

IRAQ DINAR RV WAS ANNOUNCED AT THE UN IN NYC AT 2:15 PM EST ON THURSDAY

Next Folks is Exchanging!

Rumor – Processing for Global Reset anticipated to finalize this evening.

Rumor – IMF and UST were instructed to get the RV out to the bank screens last night.

Rumor – Rothschild & Bernanke and private bank pig comrades are obstructing the RV getting posted.

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KTFA:

by jdtolle » July 19th, 2013, New Beauty

Every moment there is new beauty. For every moment, life unfolds in ways that have never been experienced before.

Do not miss the opportunities for wonder and joy by being caught up in judgment and anger. Live, allow, accept, see, experience and act from a perspective of pure gratitude and love.

Think of what a privilege it is to be here, to be you, to be aware and able and alive. Whatever may come your way is a part of your good fortune on this day.

Choose again and again to open yourself to the best possibilities. Feel the amazing power of life as it flows gently through you.

In even the smallest things there is great beauty. In even the most ordinary moments there is the extraordinary experience of life.

Right now your world is filled with new and expanding goodness. You are here to see it and know it, so do. — Ralph Marston

May All Have a Blessed Day

By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

MPs from the ruling State of Law Coalition and the Kurdistan Alliance confirmed the presence of positive vibes between the federal government in Baghdad and the Kurdistan Regional Government (KRG) in Erbil regarding the possibility of passing the Oil and Gas Law, which governs the management of oil wealth in the country.

The law is supposed to be passed during the current legislative session, which ends in early 2014. However, the MPs preferred to maintain discretion regarding information on the final draft of the law.

A high-ranking source in the office of Iraqi Prime Minister Nouri al-Maliki told Al-Monitor that “Prime Minister Maliki and KRG President Massoud Barzani discussed during the latter’s latest visit to Baghdad an amended draft of the Oil and Gas Law and agreed on showing it to their partners, so that it can soon be passed in the Iraqi parliament, before the current legislative session ends in early 2014.”

However, the federal government and the semi-autonomous KRG disagree on oil and its imports in the northern provinces. While Baghdad demands that the agreements with foreign and local companies on the drilling operations happen with its knowledge and that the region send the export revenues to the federal government, the Kurdistan region wants the federal government to pay the dues of oil companies working for it, before requiring oil revenues to be sent to Baghdad.

The Oil and Gas Draft Law has undergone several amendments since 2011, but it has not received the needed consensus yet.