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More Iraqi News Saturday PM 1-16-21

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Economic Specialist For / Nina /: The Rise In The Dollar Will Have Negative Effects On The Iraqi Economy … And The Simple Citizen Will Pay The Price For This Step

Saturday 16, January 2021 12:10 | Economical Views: 359  Baghdad / NINA / The specialist in Iraqi and international economic affairs, Evan Shaker Al-Dubardani, confirmed that the high exchange rate of the dollar against the Iraqi dinar will have major negative effects on the Iraqi economy, and the main victim is the simple citizen who will pay for this step.

Al-Dubardani said in a statement to the Iraqi National News Agency / NINA / that: The rise in the value of the dollar will negatively affect the basic purchasing power, such as food and medicine for the citizen, by 23%, as the value of the employee’s salary will be reduced by 23%, which in turn / the purchasing power / will affect the quality in the Iraqi market. Citizens are unable to buy goods of high quality due to their high price, which forces them to resort to less valuable commodities.

He pointed out that: The rise in the dollar will negatively affect the real estate and housing sector in Iraq, as the housing projects that operate under the installment system, which were previously dealing in dollars in selling real estate to the citizen, and when the value of the dollar rises, the citizen becomes unable to pay the monthly installment in dollars, which will lead to judicial problems and force Citizen sells real estate at a low price.

”He added: One of the negative effects of the high exchange rate of the dollar is that it created a negative impression on the investment sector, so that Iraq has become an environment that expels foreign investment, as most foreign companies will leave work in Iraq because most of their projects will stop because there is no demand for them because of the rise in real estate prices. These companies implement it because of the citizens’ weak ability to buy ./ Ended 8

https://ninanews.com/Website/News/Details?key=882184

Economist For NINA: Most Of The Expectations For A Rise In The Exchange Rate Of The Dollar Against The Dinar Are Unreal

Saturday 16, January 2021 11:07 | Economical Views: 282  Baghdad / NINA / Economic expert, Raad Twaij, ruled out the rise in the exchange rate of the dollar against the dinar to more than what is specified by the state.

Twig said in a statement to the Iraqi National News Agency ( NINA ): These days, expectations have risen by traders and some financial circles that the exchange rate will rise in an exaggerated manner more than what is specified in the general budget, and thus these expectations may not have room for verification in terms of real economic reality.

What is noticed is that trading in the exchange market is completely disrupted, and thus reflects the state of anxiety about the future, but the contexts of local and global economic events do not reflect the pessimism prevailing in the real and Iraqi monetary market.

Twig called: the traders and business owners in the Iraqi market to start a new business cycle and stimulate commercial operations and not rely on miserable expectations made by speculators and others in order to mix with the new monetary policy and optimal use of resources through what the market system is doing in allocating resources to the new demand for goods and services      https://ninanews.com/Website/News/Details?Key=882165

Parliamentary Finance: To Vote On The Budget Next Week .. This Is The Fate Of The Salary Deduction

Time: 01/16/2021 15:22:47 Read: 7,969 times   {Baghdad: Al Furat News} A member of the Parliamentary Finance Committee, Diyar Barwari, revealed, today, Saturday, that his committee is making great efforts in the matter of adjusting the budget and has continuous meetings.

Berwari said in a press interview: “Today we envision the last session to receive the remarks and proposals of the deputies, and maybe this week we will have the final formulations of the law and maybe the vote on the law will take place next week.”

He pointed out that “there is a tendency to pressure spending in the budget and we want to coordinate with the government so as not to affect the ruling expenditures.”

He continued: “Unfortunately, the budget includes functional deductions amounting to 5 trillion dinars, and the government tried to enter it into the budget as an achievement, and these deductions are rejected by parliamentarians and cannot take place because of the citizen’s financial situation with raising the dollar exchange rate and withholding salaries and the House of Representatives against that.”

He explained that “the agreement between Baghdad and the region is in the budget and stipulated in articles 10 and 11 of the draft law in which the Kurdistan region pledges to provide 250 thousand barrels of oil to the Federal Oil Marketing Company {SOMO} and sovereign expenditures as imports from the ports to Baghdad, and this agreement took place between the two parties, but political parties. He is opposed to it in general, especially with the approaching elections, and to exploit this politically. ”

He indicated that “justice in general in the distribution of wealth in the budget does not exist, and there is a disparity in the budgets between the provinces, including Basra, such as the delay in the payment of petrodollar dues and 5% of the outlets’ fees, and this includes all the provinces and it is the duty of the provincial representatives in Parliament to defend their provinces.”

A member of the Parliamentary Finance Committee concluded: “The current payment and thought in the parliament and the deputies, passing the budget before the end of the current legislative term after extending it for a month and reducing the legislative holiday for the purpose of approving the budget.”   LINK

Parliamentary Finance Proposes To Apply The Income Tax Law

Majida Al-Tamimi   Money  and business  Economy News – Baghdad    On Saturday, the Parliamentary Finance Committee proposed to refer to the income tax law and apply it in the event that employees’ salaries are deducted instead of what is included in the upcoming budget law.

Committee member Magda Al-Tamimi said, “The Finance Committee and Parliament in general reject these large deductions for employees’ salaries,” according to the official news agency, INA.

She added that “the deductions in the budget came under the title of the Income Tax Law.”

And Tamimi added, “As for whether the deductions will be retroactive during the current year, the budget law is applied from the date of its publication in the Official Gazette.”   Number of observations 77 Date added 01/16/2021 https://economy-news.net/content.php?id=23644

The US Department Of Energy Conducts Research On Natural Gas In The Kurdistan Region

An oil field in the Kurdistan region   Energy  Economy News – Baghdad  The US Department of Energy conducts research on the natural gas sector in the Kurdistan Region. The scientific research will shed light on how to trade in gas resources in the Kurdistan Region, and set an appropriate price for them.

The Kurdistan Regional Government aims to set a price for natural gas that would secure the internal need to secure electricity, heating, and industry, in addition to sending part of it to the federal government in Baghdad in addition to Turkey and Europe.

One of the topics that the Kurdistan Regional Government and the federal government discussed about, during their dialogue on the budget and oil, was the issue of using Kurdistan Region gas in other regions of Iraq.

The agreement concluded between the Kurdistan Regional Government and Dana Gas, within the framework of the “Pearl Petroleum Consortium”, provides for raising the amount of natural gas extraction in the Kurdistan Region to approximately 1 billion sigas per day.

This quantity of natural gas will not only satisfy the internal needs of the Kurdistan Region, but is sufficient for export to other Iraqi regions and abroad.

Iraq is the largest consumer of gas after Russia, according to World Bank statistics published last July, as Iraq consumed in 2019 about 18 billion sega meters of natural gas.

20% of Iraq’s budget goes to secure electricity and fuel, and the Iraqi government is constantly exposed to criticism for the amount of gas it consumes, and instead of paying attention to local sources, it relies on importing gas and electricity from abroad.    Source: Rudaw  Number of observations 151 Date of addendum 01/16/2021 https://economy-news.net/content.php?id=23640

Parliamentary Planning: The Minister Of Finance Caused An Economic Disaster For The Private Sector

08:54 – 01/16/2021   The information / Baghdad ..The Strategic Planning and Follow-up Committee accused the government program, Saturday, of the Minister of Finance, Ali Allawi, of causing an economic disaster for the private sector due to the raising of the dollar, indicating that the minister personally does not recognize the white paper that he prepared himself and did not include it in the budget.

“The minister talked about harsh governmental austerity measures and measures against the three presidencies, but what we found was the disbursement of huge sums and imaginary expenditures,” the committee’s deputy chairman, Muhammad al-Baldawi, said in a statement to the information.

Al-Baldawi added, “The minister caused an economic disaster for the private sector, which lost more than 25% of its money inside Iraq due to the sudden increase in the dollar without any planning.” Within the white paper that was not included in the budget originally.

He pointed out that “the minister and the government do not know the extent of the profits or the money that will be reaped after spending 164 trillion dinars during the budget, which is an economic catastrophe that can not be passed on at all.”   https://www.almaalomah.com/2021/01/16/515518/

OPEC Announces An Increase In Iraqi Oil Production

Time: 01/16/2021 12:28:25 Reading: 3,250 times  (Baghdad: Al Furat News) OPEC announced, today, Saturday, that Iraq ranked second among the most member states that raised its oil production in the organization last December.

The organization said in its monthly report that “the production of the 13 member states of the Organization of Petroleum Exporting Countries (OPEC) increased last December, reaching an average of 25.362 million barrels per day, an increase of 279 thousand barrels per day from the levels of November 2020, which amounted to 25.083 million. Barrels per day. ”

She added, “The increase in OPEC production came from Libya, whose production amounted to 1,224 million barrels per day, with an increase of 136,000 barrels from the previous month, in addition to the UAE, with an increase of 63,000 barrels from the previous month.”

She pointed out that “Iraq also increased its oil production in December, where the average production amounted to 3.848 million barrels per day, an increase of 76 thousand barrels per day compared to last November, when production reached 3.772 million barrels per day.”

Iraq is considered one of the founders of OPEC in 1960, and it is one of the most important producing countries within the organization, as it comes second after Saudi Arabia.

And Oil Minister Ismail Abdul-Jabbar said Thursday that Iraq’s share in OPEC amounts to two million and 800 thousand barrels from the central and southern fields, in addition to 400 thousand from the fields in the north, and we have an entitlement of about 18 million barrels of our market share, and there is a heavy discussion with OPEC countries and their allies regarding the postponement of Iraqi payment for these Compensation.

He added, “Iraq’s 79% commitment to OPEC is due to the Kurdistan region’s lack of commitment to Iraqi deductions in the market.”   LINK

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