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Iraqi News Sunday AM 3-28-21

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The House of Representatives postpones the session for voting on the budget to seven in the evening.

Pratha News Agency81 2021-03-28  Today, Sunday, the Media Department of the House of Representatives announced the postponement of the date of the budget voting session.

The department said in a brief statement that “discussions of the political blocs and forces with the government and its concerned ministries are continuing on the draft budget bill, and accordingly, the Presidency of the Council decided that the voting session on the law would be today, Sunday, March 28, 2021, at seven in the evening.

Member In Parliamentary Energy: 29 Trillion Dinars The Budget Deficit And The Dollar Are The Biggest Problem

Time: 03/28/2021 16:55:50  Read: 351 times    {Economical: Al Furat News} A member of the Parliamentary Oil and Energy Committee, Bahaa Al-Din Nuri, revealed the recent deficit in the fiscal budget bill for 2021.

“The price of a barrel of oil has been fixed in the 2021 budget at $ 45,” Nuri told {Euphrates News}, indicating that “the surplus will fill the deficit and a supplementary budget may be obtained whereby two trillion dinars are added to the treasury every month from an increase in imports.”

And that the budget “will be up to 128 trillion dinars in exchange for a deficit of 29 trillions, and we expect it to be paid off during the first six months, and there will be surplus funds and a supplementary budget.”

And that “the region, Egypt to deliver 250 thousand barrels, while Baghdad wants 460 thousand barrels per day, and we expect that the dispute will be resolved in the coming hours,” noting “the dollar exchange rate has become the biggest problem in the budget.”

Nuri pointed out that “most of the political blocs with the survival of the exchange rate, with the exception of the two blocs of state law and {approach}.”

The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, announced the agreement between the delegation of the region and the parliamentary blocs on Article 11 of the share of the Kurdistan region in the budget.

The committee held a meeting to finalize the paragraphs on which the amendments were made in the 2021 budget before the voting session.  LINK

Fitch” Raises Iraq’s Credit Rating After The Exchange Rate Reduction Measures

Money  and business  Economy News – Baghdad  Fitch International raised Iraq’s credit rating from a negative outlook to stable in the long run.

The rise in Iraq’s classification is due to the direct impact of the decision to reduce the exchange rate on the basic economic and financial indicators that focus on reducing the balance of payments deficit and reducing the public debt-to-GDP ratio, as well as reducing the budget deficit as well as maintaining foreign reserves.

The agency indicated that this is based “mainly on the decision to reduce the exchange rate of the dinar by 22.6% during the end of 2020, in addition to the improvement in oil prices and the government’s approval of the white paper for economic reform.”

She explained that “the reduction in the exchange rate of the Iraqi dinar has led to a reduction in the demand for imported goods and services, which automatically reduced the demand for the dollar and reduced the current account deficit, thus preserving the foreign reserves at the Central Bank of Iraq.”

The agency added: “The government’s revenues from oil export sales increased due to the increase in production, the increase in oil prices, and the reduction in the exchange rate of the Iraqi dinar. The government’s ability to cover expenditures and public sector salaries has increased, as oil sales in foreign currency constitute about 89% of the budget revenues.”

She pointed out that “this is what led to a decrease in the budget deficit expected for the year 2021 relative to GDP from 16.5% to 5%.”

“Reducing the Iraqi dinar exchange rate and the subsequent programs to support social groups would increase the financial solvency and creditworthiness of the Iraqi economy and maintain monetary stability, and this is useful in attracting capital and reassuring it towards investment in the Iraqi productive sectors and increasing economic growth opportunities,” she stressed.   Number of observations 181   Date of addendum 3/28/2021


3/27/2021   The media office of the Iraqi Deputy Speaker, Dr. Bashir Khalil Al-Haddad, denied what was circulated by some news agencies and social media sites about the agreement of the Finance Committee and the government in today’s meeting chaired by Al-Haddad about the approval of the Finance Committee for the exchange rate of the Iraqi dinar against the US dollar, and while we deny that altogether,

we confirm On what happened regarding the exchange rate, its repercussions and the resulting consequences, problems and price increases were discussed, and there was an extensive discussion between the Parliamentary Finance Committee and the concerned ministers to discuss solutions and ways to address the issue of the exchange rate of the Iraqi dinar.

The Media Office of the Deputy Speaker of the Iraqi Parliament,  Saturday 27 March 2021

Parliament Denies The Parliamentary And Government Finance Agreement Regarding The Exchange Rate Of The Dollar

Economy  Saturday 27 March 2021 | 06:19 pm| Views: 290    On Saturday, the House of Representatives denied the agreement of the Parliamentary Finance Committee and the government regarding the exchange rate of the dollar. The media office of the Deputy Speaker of Parliament, Bashir Al-Haddad, said in a statement that he “denies what some news agencies and social networking sites have discussed regarding the agreement of the Finance Committee and the government in today’s meeting chaired by Al-Haddad about the approval of the Finance Committee for the exchange rate of the Iraqi dinar against the US dollar.”

Al-Haddad’s office denied this altogether, stressing that “what happened with regard to the exchange rate was discussed and its implications, problems, and price increases were discussed, and there was an extensive discussion between the Parliamentary Finance Committee and the concerned ministers to discuss solutions and ways to address the issue of the exchange rate of the Iraqi dinar.”

According to local news sites, Al-Haddad announced during a press conference, “The government and most of the members of the Finance Committee while keeping the exchange rate in its current position, and a meeting will be held with the governor of the Central Bank,” indicating that ”

Former MP: The Rise In The Price Of The Dollar Threatens To Increase The “Poor Of Iraq” By 10%

Political  Sunday 28 March 2021 | 02:26 PM| Views: 154  A member of the State of Law coalition, former deputy Raad Al-Mas, confirmed, on Sunday, that raising the dollar exchange rate threatens to increase the number of poor Iraq by 10 %.

Al-Mas said, “The raising of the dollar’s exchange rate a few months ago came as a government measure to confront the collapse of global oil prices, which created a severe financial crisis in Iraq that impeded the payment of salaries to millions of employees, but the situation changed after the oil market recovered and prices rose again .”

Al-Mas added, “The continuation of work at the new exchange rate for the dollar led to an increase in the prices of some basic foodstuffs to more than 50%, which constituted an additional burden on the shoulders of millions of Iraqis who live below the poverty line.” The poor are 10%, and this is a catastrophe

He pointed out that “the high exchange rates of the dollar were not accompanied by any supportive programs for the simple people in terms of reviving the ration card file or seeking to control the high price fever,” indicating that “the survival of the exchange rate will lead to a humanitarian disaster in Iraq .”

Al-Abadi Describes The Decision To Devalue The Dinar As A “Mistake” And Reversing It As A “Virtue”

The leader of the “victory” coalition, former prime minister Haider al-Abadi, called today, Sunday (March 28, 2021), the federal government and parliament to backtrack on the decision to reduce the value of the Iraqi dinar against hard currency, describing this decision as a “mistake” and reversing it as a “virtue.”

Ebadi said in Tdionh on social networking, ” The dollar , however , the rich platforms, the dinar , however poor, are reducing the value of the dinar, and raise the value of the dollar, the increasingly rich richer and the poor poorer that if dividing Dazy what you how you judge”

and called ” the House of Representatives and the government to stand with the weak and They take the right for them, honor does not lead you to sin, for retreating from error is a virtue. ”

Bashir Al-Haddad, Deputy Speaker of Parliament, said Saturday in a press conference that the government and most of the members of the Finance Committee kept the exchange rate in its current position and that the dollar price against the dinar would not be reduced.

The Central Bank of Iraq had decided to raise the price of selling the dollar to banks and exchange companies to 1460 dinars, from 1182 dinars to the dollar, with the aim of compensating for the decline in oil revenues resulting from the deterioration of oil prices.

It is noteworthy that all the prices of materials and commodities witnessed a significant increase in the local market with the devaluation of the dinar, which sparked a wave of resentment among the people and some of the political bloc, in addition to the objections of some economically interested people.

And the security authorities imposed strict follow-up measures on the prices of local and imported goods and goods in stores and markets, while reducing the value of the Iraqi dinar against hard currency, specifically the US dollar at the end of the year 2020.

The Iraqi Ministry of Planning estimates that the poverty rate rose to more than 30 percent, as a result of the repercussions. The Coronavirus pandemic that has placed the country in a stifling financial crisis.

Unseen Waste Of Money

Sunday 28th March 2021  176   Yasser Al-Metwally  The Iraqi economy is exposed to huge losses of money that fall into the category of waste, and it is out of the limelight and did not address it because it is invisible and the reason is due to the weakness of the negotiating competencies, which causes binding legal obligations to the country.

There are many failures that accompanied the economic agreements between Iraq and many countries, which required experience in the art of negotiation on the one hand and for other reasons. We need to be mentioned, and Iraq is on the verge of great cooperation with most countries due to its need for development projects, which require agreements to establish strategic development projects. It requires a high degree of negotiation competence.

Faced with this reality, what is required to be done in preparation for the next stage of construction? We had suggested here and on this page, the need for a higher council for governance linked to the prime minister, whose task is to develop a national guide for governance.

One of the most important priorities of the Governance Council is to prepare technical staff specialized in negotiating in the field of cooperation protocols and international agreements in the relevant ministries and to bring them into intensive training courses that contribute to raising their negotiation efficiency.

In order to implement this task with the required speed, it requires accreditation of specialized international training centers and the recruitment of international trainers in order to organize organized training courses.

Preparing good negotiators to spare the Iraqi economy from the risk of wasting billions of dollars due to minor lapses borne by the contracting party.

In a simple calculation, any costs incurred by the country to prepare and train negotiators in the ministries are not equal to the losses caused by a simple error in one contract.

Therefore, the adoption of training centers and the recruitment of experts achieves a positive economic feasibility to spare the country from the dangers of negotiating lapses. Otherwise, the Supreme Council for Governance will be the primary alternative to any future economic reform process that is guaranteed to succeed in my estimation, if the president and members of the council are chosen from academic and legal expertise and the council is empowered with the powers of Extensive in the field of requiring ministries to include their technical staff in the training courses that will be adopted in preparing negotiators.

The employee in charge must pass high-quality training courses, in order to allow him to negotiate and represent his ministry in the various negotiations, and we believe that developing a national guide for governance has become an urgent need, as all the job cadres working in the Iraqi state are subject to it, including the ministries themselves, to enter training courses for Governance and its principles, which are the basis for preparing the rational administrations of the country’s economy in all His joints.  LINK

Results Of The Finance Committee Meeting With 6 Ministers

Saturday, 27 March 2021 4:23 PM  Baghdad / National News Center   publishes, today, Saturday, the results of the meeting of the Parliamentary Finance Committee with 6 ministers and the President of the Federal Service Council, on the federal budget for the fiscal year 2021.

The media office of the Deputy Speaker of Parliament, Bashir Al-Haddad, stated in a statement received by the National News Center, that “the latter headed the joint meeting that was held at the Rashid Hotel in the center of the capital Baghdad, between the Parliamentary Finance Committee and a number of ministers (oil, finance, planning, etc.) Electricity, Reconstruction and Housing, Labor and Social Affairs), in the presence of the President of the Federal Service Council.

The statement added, “During the meeting, a detailed discussion and discussion of the items and articles of the draft federal budget law for 2021, which are included in the agenda of tomorrow’s session,” was made, pointing to “the study of budgets for service ministries and the sections of disbursement for service projects in the event that the budget is approved.”

Al-Haddad stressed, “the importance of approving the budget because it affects the general situation and is linked to the work of ministries and service projects and providing job opportunities for young people,” stressing “the need to address high prices for food and commodities and find solutions and alternatives to the repercussions of the exchange rate of the Iraqi dinar.”

And he called, the political forces to “resolve differences to reach a consensus paving the way for the passage of the law in accordance with legislative procedures and constitutional contexts in a manner that satisfies all parties and components and meets the needs of citizens in all governorates of Iraq.”

Tomorrow, Sunday, the House of Representatives will hold a special session to vote on the draft federal budget bill for the fiscal year 2021.

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