In a newspaper column a while ago, we explained the concept of deleting zeros, and today we are talking about the concept of currency revaluation, which means a calculated upward adjustment of a country’s official exchange rate relative to a chosen baseline, which can include (wage rates, the price of gold, or a specific foreign currency), and revaluation is the opposite of devaluation. In a fixed exchange rate system (the system followed by Iraq), only a decision from the state (the central bank) can change the official value of the currency, and developing economies are likely to use a fixed exchange rate system in order to limit speculation and provide a stable monetary system in the country. In a flexible exchange rate system, revaluation occurs on a regular basis, as evidenced by the noticeable fluctuations in the foreign exchange market and the associated exchange rates.
For example, the United States maintained a fixed exchange rate until 1973, when President Richard Nixon decided to abandon the gold standard and switch to a flexible exchange rate system. As for China, despite having an advanced economy, its currency remained fixed until 1994, before the Chinese government revalued its currency in 2005, which was linked to the US dollar. After the revaluation, it was linked to a basket of global currencies.
The decision to revalue a domestic currency affects the economy as a whole, as it affects both the currency being examined and the valuation of assets held by foreign companies in that particular currency. Since revaluation has the potential to change the exchange rate between two countries and their currencies, the book values of assets held abroad may have to be adjusted to reflect the effect of the change in the exchange rate.
For example, suppose a foreign government has set 10 units of its currency to equal one US dollar. To revalue its currency, the government might change the rate to 5 units per dollar, making its currency twice as expensive when valued in US dollars as it was before.
If the above-mentioned currency revaluation occurs, any assets held by a U.S. corporation in the foreign economy must be revalued. If the value of the asset held in a foreign currency was previously valued at $100,000 based on the old exchange rate, the revaluation requires a change of $200,000. This change reflects the new value of the foreign asset in the local currency by adjusting the revaluation of the relevant currency.
Another example is what the Iraqi government did in 2023 when it raised the value of the Iraqi dinar from 1450 dinars/dollar to 1300 dinars/dollar.
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Economist: Iraq suffered financial damage immediately after implementing the oil production cut agreement
Economic expert Abdul Rahman Al-Mashhadani confirmed today, Sunday, that Iraq was harmed by the start of implementing the agreement to reduce oil production and exports within the “OPEC Plus” group.
Al-Mashhadani said in an interview with Al-Maalouma Agency, “Iraq is the most affected by the agreement to reduce oil production within the OPEC Plus group because it does not have another resource, and it is unable to enter into price wars with any oil-producing country,” indicating that “the current production is about 3 million and 800 thousand barrels.”
He added that “the price of a barrel of oil will remain between $70 and $80,” noting that “Russia and Saudi Arabia offered price discounts to China, so Iraq fell to third place in the list of exporters.”
It is noteworthy that recent economic data showed a recent decline in Iraqi oil exports, while representatives expect that the oil prices fixed in the financial budget will have to be reduced due to market instability.
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Parliamentary regions: Article 140 road is closed
The Deputy Chairman of the Regions and Governorates Committee in the Iraqi Parliament, Jawad Al-Yasari, stated that the implementation of Article 140 of the Iraqi Constitution faces great difficulties, pointing out that its implementation caused problems in several governorates as a result of administrative changes made by the previous regime.
Al-Yassari explained to Shafaq News Agency that the previous regime made amendments that included deleting districts and sub-districts from governorates and merging them with others, which created complications in a number of areas.
He pointed out that Article 140 is not limited to Kirkuk Governorate and the disputed areas between some governorates and the Kurdistan Region, but also includes other governorates such as Karbala, where a number of districts and sub-districts were deleted from it and annexed to Anbar.
The MP stressed that “the path of Article 140 is closed and there is no solution for it at the present time,” explaining that officially reopening its file could create a real crisis that cannot be overcome.
Article 140 of the Iraqi Constitution is one of the articles that aims to address the issue of disputed areas between the federal government and the Kurdistan Region, such as Kirkuk.
The article stipulates three stages: normalization, conducting a population census, and finally holding a referendum to determine the affiliation of these areas, with these steps to be completed by the end of 2007. However, the article has not been fully implemented yet, making it a continuing point of contention.
Despite the passage of more than a decade since the scheduled date for the implementation of the article, the issues related to it still exist, as it faces political and legal challenges between Baghdad and Erbil, especially with regard to the disputed areas and their administration.
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Can the population census succeed in drawing a new economic policy in Iraq?
The Iraqi government is preparing to conduct a general population census on November 20, the first census to include all regions of Iraq in nearly 4 decades.
Iraq witnessed the last general population census that included all its governorates in 1987, and although the country conducted another population census in 1997, the latter did not include the governorates of the Kurdistan Region, because they were semi-independent from Iraq during the era of the former regime.
The population census represents a vital tool for formulating economic policies based on updated facts and data that enhance the government’s ability to achieve comprehensive and balanced economic growth, while addressing economic and social challenges.
On the subject, the financial and banking specialist, Mustafa Hantoush, said in an interview with / Al-Maalouma / Agency that the Iraqi state’s funds are scattered and it does not know where to direct them or where to start the development process, indicating that “the general population census is full of positives and has no negatives.”
He added, “There are no higher policies or clear lines to work on, and every country that comes puts forward its ideas far from the needs of society, and the population census will end this chaos by clarifying a number of important matters.”
He pointed out that “Iraq has clear economic problems in work, housing and diversifying the economy, and the state cannot solve them except by conducting a general population census.”
For his part, economic expert Dhurgham Muhammad confirmed that the results of the general population census will help the government reach a realistic formula and vision during the preparation and amendment of next year’s budget schedules, while he pointed out the necessity of having a real reading of the future of oil prices for next year in order to determine a reasonable price for a barrel of oil that will be adopted by the 2025 budget.
Mohamed Ali said in a statement to Al-Maalouma Agency, “The amendments to the 2025 budget schedules will depend scientifically and realistically on the results of the general population census that will be conducted at the end of this month,” indicating that “the census results will give the government clarity when conducting transfers and drawing up realistic development plans.”
He added that “the authorities responsible for preparing the budget must re-read it for the future of oil prices and adopt an appropriate and realistic price that is consistent with the expectations of global oil market experts, when preparing the schedules for next year, as most indicators confirm a decrease in oil prices for security and economic reasons.”
Recently, rumors have spread on social media that the general population census will lead to the cutting of welfare salaries or the imposition of new taxes on citizens.
In this context, MP Aref Al-Hamami said in an interview with Al-Maalouma, “What is being said is inaccurate and we deny it completely and in detail through our close knowledge of the census’s progress and its great benefits in preparing the country’s strategic plans for decades in terms of economy and development.”
He pointed out that “effective participation with the provision of accurate information will ensure the existence of comprehensive data that gives the government a vision in drawing the foundations of its future plans directly.”
The general population census will be launched on the 20th and 21st of this month in all Iraqi governorates, which will include a curfew. About 120,000 enumerators will participate in the census, while the Ministry of Planning confirmed that this census will contribute to knowing the real numbers of the population and the living conditions that will be invested for development purposes.
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light Decrease In Dollar Exchange Rates In Local Markets
The dollar exchange rates recorded a slight decrease today, Monday, in the local markets in the capital, Baghdad, Basra and Erbil. The exchange rates today were as follows: $100 = 150.750 dinars in Baghdad $100 = 150.800 dinars in Erbil $100 = 150.500 dinars in Basra.
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Dollar Prices In Iraqi Markets
Publishes Sumerian News, exchange rates Dollar Today, Monday, November 18, 2024, in the stock exchanges Baghdad Basra and Erbil. Below is a list of prices:
Baghdad: Selling price: 150,750 Buying price: 150,000
Erbil: Selling price: 150,800 Buying price: 150,150
Basra: Selling price: 150,500 Buying price: 149,750
Note that the price Official From the Central Bank, it is: 132,000 thousand dinars for each $100 denomination.
Iraq Rejects “COP29” Proposal: We Will Not Get Rid Of Fossil Fuels, As They Are The Basis Of Our Economy
Energy Economy News – Baghdad The head of the Parliamentary Health Committee, Majid Shankali, confirmed that Iraq rejects the idea of getting rid of fossil fuels, which was a prominent title at the “COP29” climate conference, explaining that the Iraqi economy depends mainly on fossil fuels, pointing to Iraq’s strong role in the conference, especially since it will chair the “G7 Plus” summit with China in the next session.
Global voices and demands are rising to gradually eliminate fossil fuel operations and oil and gas projects in oil-producing countries, due to the pollution they cause, and replace them with alternative energy sources such as (solar – wind – water – thermal)
In a statement to the official agency, followed by “Al-Iqtisad News”, Shankali said, “The participation of the parliamentary delegation in the COP29 conference came to follow up on the work of the negotiating delegation and keep pace with the latest developments in the conference,”
indicating that “the climate conference focused on important issues, most notably the gradual elimination of fossil fuels, which is one of the main pillars of the Iraqi economy, which we completely reject.”
Shankali continued, “There is a proposal from Azerbaijan to support developing countries by oil countries, but this proposal was rejected, because most of the oil-producing countries are themselves developing countries.”
He pointed out that “the active political presence of the President of the Republic, undersecretaries of ministries and executive bodies, in addition to the legislative support of the Iraqi Parliament, strengthens Iraq’s position in these conferences, especially since it will assume the presidency of the G7 Plus summit with China in the next session.” https://economy-news.net/content.php?id=49961
A Source Reviews The Factors That “Undermine” The Goals.. What Is Behind The Efforts To Form The “Central Gas” Company?
An oil source recorded several observations today, Monday, on the efforts to establish the “Middle Gas Company”, considering that establishing this The company It is useless and his motives are to find a new outlet for positions.
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Documents I reviewed showed Sumerian News, Member Submission Committee Oil and Gas Parliamentary Haibat Al-Halbousi requested prime minister Last July, the Central Gas Company was established based on the fifth and sixth licensing rounds and what Anbar will witness in terms of developing exploratory areas amounting to 9 gas areas.
In addition to another letter from the Minister of Oil, Hayan Abdul Ghani, which includes a study and recommendation to establish the Central Gas Company, similar to the Gas Company.
North And the Southern Gas, and is responsible for the exploration and development operations of the gas formations in Baghdad Anbar, Diyala, Wasit, Karbala, Najaf, Babil, and Diwaniyah.
But Source The informed oil expert, who spoke to Sumaria News, refusing to reveal his identity for reasons related to his work, said, “The mentioned number of exploration blocks is exaggerated and does not amount to 9 blocks in Anbar, but rather one block that was referred to a company that is not specialized in exploration and development. In fact, Anbar only includes the Akkas field, which was referred to a fictitious company,” he said.
He consideredSource“Managing a single field or a field with an exploration area does not require the establishment of a new company in the presence of the Central Oil Company, for several reasons, including technical reasons, as it is not possible to provide the necessary cadres to manage…
The company From Anbar Governorate, it is impossible for the cadres to move from North or South” To live in Anbar Governorate in the current situation, as evidenced by the fact that all the workers in the Akkas field currently are from Anbar and are only recent graduates who do not have any technical experience.”
He added that “the current volume of work does not rise to the level of establishing a formation larger than a department, in addition to financial reasons, as establishing a company requires establishing very many financial grades and providing very large financial allocations to cover salaries and allowances that we do not need at the present time in light of the financial crisis and job slack and the presence of the Central Oil Company, which is doing its duty to work without the need to expand job grades.”
In addition, there are administrative reasons according to Source He pointed out that “establishing a new company will increase the burden on the ministry in following up on work due to the dispersion of the source of information instead of concentrating it in one source.”
He considered that linking the establishment of this The company Similar to the organizational and administrative structure of the two gas companies South And the north, this is not possible, because the gas company South It receives associated gas produced from the Basra fields, all of which are located within one geographical area, as is the case for gas North “Which receives gas from the Kirkuk fields, which are located in one geographical area, ”he added. “As for the central oil fields, they are distributed across 8 governorates, and it is not possible in any way to link all of these fields due to the vast geographical areas in which they are located,” noting that “the scope of work of the two gas companies is North. The south is for processing and manufacturing associated gas to obtain secondary products such as liquid gas, sulfur, dry gas, etc. (i.e. they are considered central processing stations) and they are not responsible for extracting gas, as it is the responsibility of extraction companies.He explained that “in the central oil, the gas is completely processed in the fields of Al-Ahdab, Badra, and Sharq.Baghdad The Akkas and Mansouriya projects also include treatment stations (meaning that treatment is carried out on-site in each field and according to modern international specifications), so there is no additional untreated gas to be sent to a new company for treatment purposes.”He considered that “what was stated in the letter of the Ministry of Oil that the quantity to be invested by thisThe companyThe figure of 3,500 million cubic feet is a number that must be reviewed by the specialized departments in the ministry, as it is very far from the truth and it is impossible to have such numbers to be provided to this.The company”New,” considering that “what was mentioned above shows that there are no technical, financial, or administrative goals that require the establishment of a new gas company, but rather the goal is a political goal, perhaps for the purpose of exploiting positions and job grades,” he said.
