In November, the Iraqi army removed the Islamic State terrorists out of the city of Baiji and the Baiji refinery. On Monday, December 22, the Islamic State Terrorists have conducted a counterattack to reclaim the city of Baiji. The Iraqi army and Shiite militias left Baiji on Monday morning, and there are people inside Baiji saying that the Islamic State are controlling most of the city. The people are also saying that the Islamic State terrorists also control the entrance of the refinery.
The Central Bank of Iraq (CBI) governor Ali Mohsen Ismail Alak has stated that the cost of the war against the Islamic State costs 4-5 billion dollars per month. The governor met with the International Monetary Fund (IMF) in Istanbul, Turkey and was advised to expect an economic decline due to the lower oil prices. Iraq is expected to increased oil experts to approximately 4 million daily barrels by 2016. The increase in oil exports will do well for raising the value of the Iraqi dinar currency.
The American Contractor has been keeping you up to date on the delete the Zeros project. This project is the issue of new Iraqi dinar currency that the CBI and the Parliament Finance committee would like to distribute in Iraq. The new currency will co-exist with the already Iraq dinar in country. The CBI is not removing the dinar at all and never has other then currency that has been damaged. You can expect the new Iraqi dinar currency distributed in the first quarter of 2016. The security and the economic landscape is what is holding it up.
The Iraq Council of Ministers (CoM) has yet to agree on a 2015 budget. The disagreements between the Council members and the Parliament Finance Committee is the price of oil for the budget. The CoM would like and is pushing for $50 a barrel of petroleum for the federal budget. Expect the budget to take several more weeks to be finalized by the different committees. The 2015 federal budget is approximately 111 trillion IQD. The Iraq government will be borrowing several billions of dollars from the International Monetary Fund (IMF). Iraq does not need to have an internationally tradable currency to receive a loan from the IMF.