Tuesday Morning Iraq Economic News Highlights 4-25-23
The Central Bank: The Cash Payment Of The Dollar Has Become Disciplined With The Procedures Of The Electronic Platform
Economy| 09:07 – 04/24/2023 Baghdad – Mawazine News The Central Bank confirmed, today, Monday, that the cash payment of the dollar has become disciplined with the procedures of the electronic platform, which prompted a decline in its price in the market, because it has become available through the platform.
The Central Bank’s advisor, Ihsan Al-Yasiri, said in an interview with the official agency, which was followed by Mawazine News, that “all merchants, including small merchants, have become able to obtain dollars through the electronic platform, and the cash payment of dollars has become disciplined with the procedures of the platform.”
He added, “In light of this, it is natural for the dollar to begin to decline in front of the dinar in the market for its normal price set by the Central Bank, because the dollar is a commodity like any other commodity whose purchase requests are met.”
And he continued: “As long as purchase orders for dollars are met through the platform, there will remain no reason for the merchant to sell in dollars, and we hope that the sale will be in dinars only because it is the country’s currency, and secondly, there is no reason to adhere to a specific price, because the dollar is available to those who ask for it, such as the merchant and those who need to travel for treatment, the traveler and the student who is studying.” outside”.
https://www.mawazin.net/Details.aspx?jimare=225313
Iraqi Oil Expert: The Real Confrontation Between OPEC And America Will Begin In A Few Days
2023-04-25 05:18 Shafaq News/ The oil expert, Hamza Al-Jawahiri, predicted today, Tuesday, that the real confrontation between OPEC and the United States of America will begin in a few days, suggesting that oil prices will rise again.
Al-Jawahiri said in an interview with Shafaq News agency; “What is currently happening in terms of fluctuation in oil prices is a confrontation between OPEC and America,” expecting that “this confrontation will not end, as the latter is preparing for the real confrontation that will begin in a few days.”
He added, “America is currently seeking to reduce oil prices by pumping large quantities of strategic oil reserves that it has into the markets, while OPEC has sought to keep prices within the range of $80 through the voluntary reduction of one million and 660 thousand barrels per day, which will start as of the first of March.” next May.”
Al-Jawahiry expected that “prices will rise again if the voluntary reduction is initiated,” adding that “OPEC + knows that this confrontation with America will not end through this reduction, and therefore OPEC studies will take this into account in light of this confrontation.”
Crude oil prices rose with OPEC countries, including Iraq, announcing voluntary cuts of more than one million and 600 thousand barrels per day, starting next May, in addition to the previous cuts of two million barrels per day, before losing these gains with the passage of days, with expectations of raising interest rates in America and Europe, which warns of weak global economic growth. LINK
Parliamentary Warnings Of Breaching The Erbil Oil Sale Agreement And The Collapse Of Negotiations To Pass The Budget
Information / Baghdad.. Independent MP Ahmed Majeed Al-Sharmani warned, on Tuesday, of the consequences of violating the oil agreement between Baghdad and Erbil within the budget, indicating that strengthening the budget through additional resources will end these risks.
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Al-Sharmani said in an interview with Al-Maalouma agency, “The oil agreement between Baghdad and Erbil to export 400,000 barrels of oil will be subject to breach at any moment due to political tensions.”
He added, “This matter has great risks for the 2023 budget, and therefore we demand support for budget revenues from other outlets and work to support the national industry.”
He pointed out that “any breach of the oil agreement between Baghdad and Erbil will increase the deficit rate in the next year’s budget for the year 2024.”
Pointing out that “the region’s oil file constitutes an obstacle in relations between Baghdad and Erbil at a time when the Iraqi government has adopted its budget for the next three years.”
The representative of the Al-Fateh Alliance, Walid Al-Sahlani, revealed, in a previous interview, that his alliance recorded two observations regarding the budget law, indicating that the budget lacks the main objectives, in addition to not including raising the proportions of non-oil resources. LINK
Experts: The 2023 Budget Is Exaggerated
Iraqi Dinar Reports Economists have warned that the delay in approving the budget until now will greatly affect the completion or start of the projects announced by the government, especially since the year is approaching halfway through now, noting that everyone is waiting for Parliament’s opinion on the three-year budget and how it will be monitored in the event It was approved with changes in oil prices.
Economic expert Mahmoud Dagher stated that “the government will not be able to implement the investment part with the remainder of the time of this year, which has now passed 4 months without approving the budget.”
Dagher said, “The plan and investment platform in the budget is within the limits of (50 trillion dinars), and therefore it is difficult to negotiate with contractors in light of the lack of approval of the budget, and sometimes there are foreign companies that the government needs to contract with, so if we want to implement projects correctly, the period The remainder of this year is not enough, and it is difficult for the government to be able to accomplish it within six months, accompanied by low productivity in state institutions and the financial and administrative corruption that is eating away at them.
He added that “the investment part can be completed in subsequent years only, and that will be implemented is the amount of revenues and dues of oil companies,” noting that “any effort or intentions, if not accompanied by proper planning and construction, cannot be implemented and remain incomplete dreams.”
Dagher explained, “The entire budget was built on exaggerations, except for the salaries. All eyes are on whether Parliament will agree to approve a budget for three years,” wondering, “If the budget is approved, how will it be followed up and monitored?”
In addition, the economist Hazem Hadi saw that the remaining period of the year to complete the projects is a very short period,” noting that “only half of the year remains, and there has been no ratification of the budget law so far.”
Hadi said, “The projects that the government undertakes to implement or that are lagging behind may not be able to implement them, and the government is required at the present time to provide the necessary supplies to advance and complete these projects,” noting that “it is unreasonable for 4 months of the year to pass without the ratification of an important draft law.” Like the budget, and this is a delay from the financial planner and from the legislator at the same time.
He added, “The allocations in the budget are very large, and the deficit is also very large. In any case, spending on the budget will not exceed 90%, and investment spending will not exceed, at best, 30-40% of the budget.”
In addition, a member of the Parliamentary Finance Committee, Jamal Cougar, said: “The committee will use its full powers regarding the budget, by making reductions, transfers, amending paragraphs and adding paragraphs,” suggesting that “the budget will be passed without disagreement.”
In turn, the representative of the Kurdistan Democratic Party, Mahma Khalil, said: “Among the disputes over the budget is the existence of a large deficit in its law, and the government must work to reduce it or clarify a mechanism to bridge this deficit,” noting that “the price of oil that was calculated in the budget is also the subject of A dispute between deputies who believe that this price is too high and should be reduced or it should be at a balanced price. https://economy-news.net/content.php?id=33784
Economist: Entering Iraq With The Swift Platform Led To Market Stability And Prevented Currency Smuggling
04/25/2023 Earth News / Economist Alaa Al-Fahd said today, Tuesday, that Iraq’s entry into the SWIFT platform led to market stability and prevented currency smuggling abroad.
Al-Fahd said, in an interview with Earth News, that “the monetary policy in Iraq seeks to create stability in the exchange rates and currencies market, and this has a great impact on reducing cases of corruption and currency smuggling abroad.”
He added, “Iraq’s entry into the list of the Swift platform for external transfers has a positive impact on Iraq, which has led to market stability on the one hand and preventing smuggling on the other hand.”
And that “this will reflect positively on the development of the Iraqi economy and the state of recovery expected as a result of the application of this system, which will limit cases of smuggling of the dollar currency to other countries.”
He continued, “The currencies were up to three countries whose trade depended directly on Iraq, and the application of this system will limit smuggling cases, and this will reflect positively on the stability of market prices in the future in Iraq.” https://earthiq.news/archives/224029
Between Abundance And Fear Of Bankruptcy.. Will Iraq Take A Way Out Of Debt?
While Iraq has the largest cash reserves in its history, amounting to 125 billion US dollars, economists believe that “if oil prices fall, Iraq will lose its economic capacity and may take debt as a way to add to its previous debts.”
The economist, Salam Sumaisem, criticized today, Monday, the federal budget, considering it to be consumer spending and not diversify any sources of income.
Sumaisem said in a press interview seen by “Takadum” that “despite the value of the explosive budget, we may reach bankruptcy and go to the path of debt in the event that the price of oil falls and our revenues are no longer equal to the volume of high spending in this budget, which witnesses great (extravagance) in it.”
And the economist called for “diversifying sources of income and compressing expenditures for the purpose of reducing the budget and not keeping its price high in order to ensure stability in financial exchange operations.”
She pointed out that “the investment aspect is completely absent from the three-year budget,” which the House of Representatives intends to vote on.
It is noteworthy that the foreign debts incurred by Iraq are limited debts, amounting today to about 17 billion dollars, and are divided into types, including soft debts for the benefit of countries and governments that lend to Iraq in fulfillment of its commitment at the Madrid Conference for the Reconstruction of Iraq in 2003, during which several countries, led by the United States, pledged to provide Grants and soft loans to Iraq amounting to approximately 33 billion dollars in an effort to rebuild the country, which explains the provision of loans through American, Japanese, British and German development agencies.
Observers confirm that Iraq pays 4 billion dollars annually to pay debt installments and interests, and its volume may not constitute 6 to 7 percent of its gross domestic product, and thus it can be said that Iraq is a country that is not bound by debt. https://takadum-news.com/archives/161022
The Sudanese Financial Advisor: The Value Of Treasury Transfers Is Currently Estimated At 46 Trillion Dinars
Economy Today, Tuesday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that foreign currency reserves are high, safe and at comfortable levels, while he indicated that the value of treasury transfers is currently estimated at about 46 trillion dinars.
Saleh said to the official agency, “The Central Bank is an independent authority and enjoys broad legal independence, as it is based on the Central Bank of Iraq Law No. 56 of 2004, especially Article 26, which bears an explicit title that reads:” Prohibition of lending to the government (neither directly nor indirectly). Indirect)
Operational monetary policy, and it is called (sterilization) procedures.
He added, “The Central Bank is responsible for managing the government’s financial operations, as well as managing the country’s foreign currency reserves, according to the best methods of managing sovereign investment portfolios, and its standard evidence in terms of maximizing asset returns and avoiding all risks, whether legal, price and others.”
He pointed out that “although the Central Bank, by virtue of its role in controlling local liquidity levels and controlling its flows to achieve stability in the growth of the money supply, it exercises secondary market operations in the sale and purchase of securities in general and government ones in particular in order to manage general liquidity in the economy.”
And controlling its levels and growth rates in a way that achieves monetary and price stability, and this is done through direct dealings with the national banking market exclusively.
And he continued, “The Central Bank currently holds, through secondary market operations, about 64 percent of the total internal public debt, which are government debt instruments in the form of bonds and treasury transfers (that is, they are government borrowing tools that were deducted by local banks and are the primary holders before deducting them with the monetary authority). ,
As banks, especially government ones, at different periods deducted their interest with the Central Bank and regained their liquidity, and they carry an annual interest ranging between 2-3 percent, and today they have become an integral part of the assets or assets in the balance sheet of the Central Bank of Iraq.
And he added, “The value of treasury transfers in the possession of the monetary authority is estimated at about 46 trillion dinars currently,” pointing out that “the foreign currency reserves of the Central Bank of Iraq are at very comfortable levels, which are the highest in the country’s financial history,
which are not less than balances (in foreign exchange and gold). ) between 110-115 billion dollars, and at the same time it constitutes a percentage (coverage) of the cash currency issued (and according to the current exchange rate) by about 130 percent, which is a high and safe coverage.
And he continued, “Monetary policy, and by virtue of the fact that the Central Bank of Iraq is the government’s financial advisor, and it is the one who coordinates and consults with the government in accordance with its law to ensure consistency and harmony with the joints of financial policy and other economic policies, any decision taken by the monetary authority in accepting a discount or liquidation of any government debt instruments will be subject to
There is no escape for accurate standard equations in applying monetary policy tools and their operational objectives, within the framework of managing the liquidity of the economy in a balanced manner with macroeconomic indicators, and in a manner consistent with the independence of the Central Bank of Iraq. https://www.dijlah.tv/index.php?page=article&id=327478
Iraqi Oil Expert: The Real Confrontation Between OPEC And America Will Begin In A Few Days
Shafaq News/ The oil expert, Hamza Al-Jawahiri, predicted today, Tuesday, that the real confrontation between OPEC and the United States of America will begin in a few days, suggesting that oil prices will rise again.
Al-Jawahiri said in an interview with Shafaq News agency; “What is currently happening in terms of fluctuation in oil prices is a confrontation between OPEC and America,” expecting that “this confrontation will not end, as the latter is preparing for the real confrontation that will begin in a few days.”
He added, “America is currently seeking to reduce oil prices by pumping large quantities of strategic oil reserves that it has into the markets, while OPEC has sought to keep prices within the range of $80 through the voluntary reduction of one million and 660 thousand barrels per day, which will start as of the first of March.” next May.”
Al-Jawahiry expected that “prices will rise again if the voluntary reduction is initiated,” adding that “OPEC + knows that this confrontation with America will not end through this reduction, and therefore OPEC studies will take this into account in light of this confrontation.”
Crude oil prices rose with OPEC countries, including Iraq, announcing voluntary cuts of more than one million and 600 thousand barrels per day, starting next May, in addition to the previous cuts of two million barrels per day, before losing these gains with the passage of days, with expectations of raising interest rates in America and Europe, which warns of weak global economic growth. LINK
Did The Government Make A Mistake?.. Revealing A Detail That Includes A Waste Of Public Money In The 2023 Budget
Money and business Economy News-Baghdad On Monday, economic expert Nabil Al-Marsoumi revealed an exaggeration in the cost of exporting crude oil through the Kurdistan region.
Al-Marsoumi said in a post on Facebook, “The cost of transporting crude oil exported from Kurdistan in the 2023 budget = 1.428 trillion dinars, and the export rate from Kurdistan = 400,000 barrels per day, and the average cost of transporting a barrel of oil exported from Kurdistan = 9,781 dinars, or 7.52 dollars.”
He added, “This figure is about 6 times greater than the cost of transporting Iraqi oil sourced south by sea,” noting that “KAR Company owns (60%) of the pipeline that transports oil to the Fishkhabour area near the border with Turkey, while (KAR) returns.” 40% of the ownership of the pipeline goes to the Russian company (Rosneft).
He explained, “According to the report of the American company (Deloitte), the fees for transporting a barrel of oil through the pipeline amounted to (4.4) dollars during the period (1/1/2019 until 30/6/2021).”
He pointed out that “the second half of 2021 witnessed an increase in the cost to (6.1) dollars per barrel.”
Therefore, “the figure included in the 2023 budget to cover the fees for transporting Kurdistan’s oil is exaggerated and represents an unjustified waste of public money.” In the words of the economist.
https://economy-news.net/content.php?id=33781
