Latest news with #Rudaw
Rudaw Net
23-05-2025
- Business
- Rudaw Net
US urges Iraq to work with KRG to develop gas production
Also in ECONOMY Unfinished Stories: Baghdad wants it all 90 percent of Iraq's money supply held outside banks: PM advisor KRG announces major agreements with US companies to boost gas production Syria's debts to World Bank cleared by Saudi Arabia, Qatar A+ A- ERBIL, Kurdistan Region - US President Donald Trump's administration has urged the Iraqi government to work with the Kurdistan Regional Government (KRG) to start gas production following major gas contracts between the Kurdish government and American firms, a state department spokesperson said on Thursday. Two major energy contracts were signed in Washington between the Kurdistan Regional Government and US-based HKN Energy and WesternZagros on Tuesday. They were valued at a combined $110 billion over their lifespans. However, Baghdad has rejected these deals, deeming them illegal. 'We support these deals, and we have encouraged Baghdad and Erbil to work together to get gas production to commence as soon as possible,' US State Department Spokesperson Tammy Bruce told Rudaw during a press briefing. She added that the 'massive' deals between the KRG and US firms 'will help Iraq harness its own domestic resources to become energy independent, which we've again talked about, it's really great.' Iraq suffers from chronic electricity shortages, especially felt when summer temperatures reach scorching levels of over 50 degrees Celsius. The high temperatures subsequently lead citizens to consume very high amounts of power. In March, the US rescinded a waiver that permitted Iraq to purchase electricity from Iran as part of President Trump's maximum pressure campaign against Iran, which also aims to drive Tehran's oil exports down to zero. Iraq relies heavily on Iranian gas imports to operate its power plants. Baghdad now is seeking to export electricity from Turkey and Gulf countries. It already buys electricity from the Kurdistan Region. Kurdistan Region Prime Minister, who arrived in Washington on Saturday, met with US Energy Secretary Chris Wright on Thursday. The two said the meeting was very good. Barzani is expected to meet with US Secretary of State Marco Rubio on Friday. Bruce confirmed the meeting to Rudaw and said the two will 'discuss expanding trade and investment between the United States and the Iraqi Kurdistan Region.' She emphasized that Rubio has stated that Washington supports the 'Kurdish autonomy' and 'urged the Government of Iraq to respect this economic lifeline that is necessary to prosper and succeed.'
Rudaw Net
23-05-2025
- Business
- Rudaw Net
90 percent of Iraq's money supply held outside banks: PM advisor
Also in ECONOMY Unfinished Stories: Baghdad wants it all US urges Iraq to work with KRG to develop gas production KRG announces major agreements with US companies to boost gas production Syria's debts to World Bank cleared by Saudi Arabia, Qatar A+ A- ERBIL, Kurdistan Region - Nearly 90 percent of Iraq's money supply is held outside the formal banking sector, largely hoarded in homes, a senior financial advisor to the Iraqi premier told Rudaw. The vast 'leakage" of cash poses a serious challenge to the country's financial stability and long-term economic growth. Mazhar Mohammed Salih, advisor to Prime Minister Mohammed Shia' al-Sudani, stated that the hoarding of cash, while historically common, has reached critical levels, with leakage rates between '87 to 90 percent.' He explained that a large portion of the currency in circulation is held outside banks. 'If, for example, we have approximately 100 trillion dinars [approximately $714.3 million] in total currency in circulation today, around 91-92 trillion dinars [approximately $657.15 million] are currently outside the banking system,' Salih elaborated. According to senior financial advisor, the exceptionally high rate of cash held outside banks is largely driven by public distrust in financial institutions. Other reasons include religious and cultural factors – including the fear of engagement of usury (interest) that is prohibited in Islam – and the general unfamiliarity with banking services, Salih added. Pointing to the unbalanced financial landscape, Salih noted that "while the economy has ample liquidity, banks themselves are liquidity-poor. The government faces similar challenges, and meanwhile, the public holds large cash surpluses that are effectively idle.' To reintegrate these hoarded funds into the formal economy, Salih stressed the need for strategic reforms. These measures include strengthening deposit insurance through broader advertising and clearer public communication to reassure Iraqis that their bank deposits are fully insured against any bank failures, the financial advisor suggested. He also advocated encouraging investment in government bonds with strong, clear, and sovereign guarantees, and implementing digital payment solutions that would encourage individuals to maintain bank accounts via electronic cards, thereby fostering digital financial inclusion. The senior financial advisor underscored that a leap in digital financial inclusion is crucial to break the detrimental social habit of hoarding that is disrupting the income cycle and hindering economic investment and growth. Bringing more funds into the regulated financial system, Salih said, would strengthen the overall economy. "The more funds there are inside the banking system, the better the situation is than when they are outside the banking system." However, the issue of cash hoarding is just one symptom of deeper systemic problems in Iraq's banking sector. At its core, the sector suffers from a lack of modernization and persistent structural weaknesses. Most Iraqi banks rely heavily on the Central Bank of Iraq's foreign currency auctions to generate profit, rather than engaging in productive investments that stimulate economic activity. This is further exacerbated by corruption, with repeated allegations that banks are complicit in smuggling money out of the country. Customers often face rigid withdrawal limits - sometimes only allowed in installments - and risk theft not just from criminal actors but potentially from within the banks themselves. Compounding the problem is a weak legal framework. Laws to protect deposits are either lacking or outdated, and restrictive regulations discourage long-term investment and reinforce a dependence on government-linked financial operations. As a result, Iraqi banks offer limited services by international standards and remain largely tied to state-driven 'rentier' activities such as currency exchange, letters of credit, and the distribution of public sector salaries. Although there is a growing interest in digital banking and the Central Bank has launched initiatives to support digital enrollment, progress remains slow due to the absence of essential regulatory frameworks. The infrastructure for electronic payments is still underdeveloped, and most Iraqis continue to convert their digitally paid salaries into physical cash—reinforcing the long-standing 'cash-is-king' mindset that continues to stall the country's financial modernization.
Iraq Business
21-05-2025
- Business
- Iraq Business
Iraqi Dinar Hoarding "Has Reached Critical Levels"
From Rudaw. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. 90 percent of Iraq's money supply held outside banks: PM advisor Nearly 90 percent of Iraq's money supply is held outside the formal banking sector, largely hoarded in homes, a senior financial advisor to the Iraqi premier told Rudaw. ... Mazhar Mohammed Salih, advisor to Prime Minister Mohammed Shia al-Sudani, stated that the hoarding of cash, while historically common, has reached critical levels. Click here to read the full article.
Rudaw Net
19-05-2025
- Science
- Rudaw Net
The secrets of Soran: A 7,000-year-old discovery
Also in Kurdistan President Barzani pushes to boost Erbil-Tehran ties, elevate Kurdistan Region's status KDP, PUK to contest Iraq's 2025 legislative elections separately: KRG deputy PM Mosul woman diagnosed with hemorrhagic fever in Erbil Kurdistan Region governors to visit Sanandaj for economy talks A+ A- ERBIL, Kurdistan Region - Archaeologists have uncovered remnants of the Halaf civilization, dating back 7,000 years, in Soran, northeast of the Kurdistan Region. Abdulwahab Sulaiman, Director of the Soran Archaeology Department, shared with Rudaw that the discoveries include advanced architecture and construction remains from the Halaf period. 'We also found bear bones, symbolizing power and strength from that era,' Sulaiman explained, in addition to 'exquisite pottery items, delicate, beautifully colored, and from the Halaf civilization, dating back 7,000 years.' The site spans 500 square meters and is located in a populated area. Excavations have been ongoing for seven seasons, conducted by teams from the Autonomous University of Barcelona and Salahaddin University. Archaeologist Maryam Gomez, a member of the excavation team, explained, 'This is my third campaign here. My findings show that most of the wood discovered comes from the mountains and riverbanks, suggesting that people from the Neolithic Age used these woods at their activity sites.' Gomez also found 'seeds and burnt remains,' which indicate that agriculture and the harvesting of fruits from the mountains and forests were practiced for food. "All of this has been documented," she added. All discovered artifacts belong to the Kurdistan Regional Government, and the research is a collaborative effort between the two universities. Plans are in place to establish a local museum to preserve and display the findings. Rajab Zubair, the Soran District Commissioner, told Rudaw, "We aim to build a dedicated museum to showcase the archaeological pieces, allowing visitors to learn about the history and civilization of this area. At the same time, it will help attract archaeological tourism." In addition to the findings, human footprints dating back to the Stone Age have also been discovered in the Soran district of Erbil province. According to Sulaiman, approximately 1,200 archaeological sites are registered in Soran. The Kurdistan Region is home to a wealth of archaeological sites, ancient cities, and religious landmarks that bear witness to thousands of years of continuous civilization, including remnants from the Sumerian and Assyrian eras, as well as evidence of Neanderthal habitation.
Rudaw Net
18-05-2025
- Health
- Rudaw Net
Duhok mother dies after alleged blood transfusion error
Also in Kurdistan Kurdistan Region governors to visit Sanandaj for economy talks PM Barzani arrives in Washington for energy talks Solar power on the rise in Sulaimani with private users, new plant Stone Age footprints discovered in Soran A+ A- ERBIL, Kurdistan Region - A woman in northern Duhok province who has been in a coma since giving birth to her seventh child due to an alleged blood transfusion error has passed away. Shilan Ismail, 38, and a mother of six, was admitted to Zakho's maternity hospital to give birth to her seventh child since early May. She later became unconscious and fell into a coma after her family alleged she received incompatible blood. After 17 days of being unconscious, Shilan passed away on Saturday, the hospital told Rudaw. Zakho's prosecutor general has issued arrest warrants for six people - including two doctors and three nurses - for alleged negligence in connection with the incident. In early May, Ismail's cousin Yasin Abdulrahman told Rudaw that the doctors had given Ismail A+ blood despite her blood type being B+. The family told Rudaw that they will pursue legal action after funeral processions for Ismail are completed. Zakho's health directorate has formed a committee to investigate the incident. Receiving incompatible blood can trigger a reaction where the immune system attacks the transfused blood cells. Symptoms may include fever, chills, back pain, low blood pressure, kidney failure, shock, or even death if not treated promptly.
