Iraqi Economic News Highlights Tuesday AM

  In Iraqi News 

Tuesday AM Iraq Economic News Highlights 7-26-22


The Prime Minister’s adviser outlines one option to reduce the exchange of the dollar. The fate of the 2023 budget is expected


Time: 2022/07/25 23:16:43   The prime minister’s economic adviser has identified one option to lower the dollar’s exchange rate against the Iraqi dinar, while predicting the fate of the 2023 budget.


Haitham al-Jubouri told al-Furat satellite channel tonight: “The financial equation in the country controls the exchange rate of the dollar, and if we want to strengthen the dinar and convince investors abroad to invest in the country gradually the dollar will start to decline, i.e. encourage investments and increase non-oil revenues will increase the value of the dinar.”


“The Iraqi people are increasing by one and a quarter million people a year, and if we don’t remedy the situation and make plans, we will actually suffer in paying salaries in the coming years, so the future of future generations cannot be depended on fluctuating oil prices,” he said.


“In Iraq, if the thinking of the economy remains the same as the current mechanism, we will have mercy on the current exchange rate, and the white paper has remained a dead letter without minds, to implement the old and consumed economic work and the revenues of the oil increase still exist in the state treasury,” al-Jubouri said.


“It can only be approved by the presence of the new government and not necessarily the same approach as the current government, it may take austerity as an article, but if the current government remains, we will go ahead with the law,” he said.


“Prime Minister Mustafa al-Kadhimi is the most dependent on the country’s energy file, and Iraq spent nearly 6 billion dollars on the electricity sector in 2021, and there was supposed to be an electricity levy covering the entire cost of the ministry, but it is not currently 15 percent,” he said.


“The federal court’s decision that the Kurdistan Oil and Gas Act is unconstitutional is a good step to negotiate with the federal government and the Financial Control Office, who is responsible for monitoring the revenues from the region’s oil, but the advances that the region currently receives are deducted from its share of the budget,” al-Jubouri said.


“This is possible because the government is now beginning to step up, there is a complaint filed with the Security Council and there is an intention for Iraqi forces to be present in areas adjacent to the Turkish border,” he said.


“The situation must be arranged before the boycott and an alternative to imports should be found, and the value of our imports from Turkey exceeds 20 billion dollars, which is higher than China,” he said.


“Iraq needs the right line-up of border ports and we need other measures to make the move a success,” al-Jubouri said, referring to Al-Kadhimi’s failure in the financial file, but in general he acted wisely and pulled Iraq out of major crises.


“The framework is keen on the unity of the national class by nominating Mohammed Shea al-Sudani for the post of prime minister, and I think that his personality is acceptable to all parties and he is known for his integrity and so far most of the blocs are welcome and I expect a breakthrough in the formation of the government soon and the framework options will be accurate about the ministerial cabin,” he said.


“Both Kurdish parties are determined to nominate them for the presidency and sudanese candidacy will lead to a speedy decision on the post of president,” al-Jubouri said.   Wafaa Al , Fontelawi


Iraq Is Among The Largest Foreign Holders Of US Treasury Bonds


Shafaq News/ The US Treasury Department announced, on Monday, that Iraq has become one of the major foreign holders of US Treasury bonds.


The Treasury said in its latest schedule, seen by Shafak News Agency, that “Iraq has become among the 35 largest countries that have possession of US Treasury bonds than those that have bonds with a value of more than 30 billion dollars.”


And she added, “Iraq’s possession of these bonds amounted to 32.9 billion dollars for the month of May, an increase of 36.51 percent over the month of January of 2022, and an increase of 57.42 percent over the same month of last year 2021.”


She pointed out that “Iraq was the fourth largest Arab country in terms of the value of bonds after Saudi Arabia, Kuwait and the UAE, while Japan came at the top of the countries with the largest value of these bonds, followed by China second and the United Kingdom third,” indicating that the total US bonds owned by the countries of the world amounted to 7 trillion. and $421 billion.   LINK


A Decrease In The Exchange Rates Of The Dollar In Iraq


Economie   2022-07-26 | A decrease in the exchange rates of the dollar in Iraq Doc-P-427455-637944156865017557


3,264 views   Alsumaria News – Economy  Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in the Iraqi local markets on Tuesday.


The selling prices of the dollar were 148,500 dinars per 100 dollars, while the purchase prices of the dollar were 148,400 dinars per 100 dollars.  LINK


An Economic Website Warns Of Financial Fluctuations In Iraq Due To The Government’s Performance


ECONOMIC   2022/07/24 | 5:13 PM   Information/translation…  A report by the Fitch Economic Agency in Hong Kong confirmed that Iraq’s good financial performance as a result of high oil prices could contribute to a sharp reduction of the Iraqi government’s debt to reach pre-Corona pandemic levels, but this may not last much amid the political fluctuations in the country and the government’s performance.


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The report, which was translated by the “Information” agency, stated that “this high performance of Iraq in the financial economic return for 2022 may be positive for the creditworthiness of the sovereignty, but the decline in the volume of debt may not be sustainable, because it partly reflects the political tensions that restricted public spending and reflected political risks.” high.”


He added, “Iraq’s government debt decreased by 41 percent in 2022 from 66 percent in 2021, which is the largest for any sovereign country in the Middle East and North Africa region. However, there remains a great deal of uncertainty about public financial trends and oil price expectations.” .


He continued, “Iraq’s failure so far to form a government and approve the budget since the October 2021 elections led to this restricting spending to last year’s levels until Parliament passed an emergency financing bill to allocate $17 billion, or 7% of GDP, to support Food, energy and salaries. The subsidy programmes, which had not been reformed, were in danger of running out of money due to rising global commodity prices.”


He explained, “The risks to spending expectations are escalating as any new budget is likely to involve higher spending in light of the urgent social and economic development needs in Iraq, so accelerated spending could weaken the sustainability of public debt reduction, this could follow a path similar to what happened.” In 2018, also after the elections, when public spending was slow to pick up after the oil price hike, which brought debt down somewhat, but spending rose strongly in the end.”


Public grievances could degenerate into broader social instability, as occurred in 2019-2020, as protests eventually lead to early elections. Iraq scores poorly across the World Bank’s governance indicators, reflecting insecurity and political instability, corruption, government ineffectiveness, and weak institutions. Therefore, high levels of political risk are expected, and weak management will continue to affect the country’s sovereign rating. finished/ 25 z


Al-Saadi: We Are Able To Weaken The Value Of The Turkish Lira And Punish It Economically


Economic  Last Update 07/25/2022 |    The Information / Baghdad…The economic affairs specialist, Muhammad Al-Saadi, confirmed that “the economic boycott with Ankara will be among the means that can be resorted to to punish Turkey, as it will cause a major crisis and a collapse in the value of the Turkish lira.”


Al-Saadi told “The Information”, “The value of trade exchange with Turkey reaches fourteen billion dollars annually, as Iraq’s imports from Turkey for the first quarter of this year exceeded 27% compared to the first quarter of 2021.”


And he indicated that “the total spending of Iraqi visitors during the first quarter of this year amounted to two hundred million dollars, as a result of tourism, trade and dealing in various fields between the two countries.”


He explained that “the profits of the Turkish embassy in Iraq from tourist visa fees only amount to 1 million dollars per day, and therefore Iraq is able to use economic weapons to punish Turkey for its repeated attacks.” finished 25]


Oil Prices Are Rising, And Brent Is At $106.45 A Barrel


Economie   2022-07-26 | 02:04   471 views   This may prompt end-users to swap their gas for oil products, especially diesel, but this also carries risks as Russia supplies the region with most of the diesel and prices are expected to rise for fuel-dependent drivers.


Crude, oil and gas supplies in Europe have been disrupted by a host of Western sanctions and payment disputes with Russia since its invasion of Ukraine on February 24, which Moscow describes as a “special military operation”.


However, lower demand due to the recent rise in crude oil and fuel prices and the expectation of an increase in interest rates in the US has put pressure on prices.


Analysts from Haitong Futures said that market sentiment oscillates between concerns about supply-side instability and expectations of weaker fuel demand under downward pressure on the global economy.  LINK


Oil Prices Continue To Rise In Global Markets


Economie   11:06 – 2022-07-26   Oil prices rose, today, Tuesday, for the second day in a row, amid increasing concerns about the scarcity of supplies in light of the conditions related to Ukraine, meaning that supply concerns overshadowed the recession fears.   US West Texas Intermediate crude futures rose 1.66% to $98.31 a barrel.   Meanwhile, Brent crude futures rose 1.81% to $107.05 a barrel, according to Bloomberg website data.


The Dollar Depreciates Against The Iraqi Dinar


Economie| 10:04 – 26/07/2022   Baghdad – Mawazine News, the dollar exchange rates fell, today, Tuesday, on the Iraqi Stock Exchange.


And the selling prices of the dollar were recorded at 148,500 dinars per 100 dollars, while the purchase prices of the dollar were recorded at 148,400 dinars per 100 dollars.


Indian And Chinese Companies Are The First To Buy Iraqi Oil


Energy   Economy News-Baghdad   Today, Tuesday, Iraq announced that Indian and Chinese oil companies ranked first in purchasing Iraqi oil during the month of June .


The Oil Marketing Company “SOMO” said in a statistic, published today, Tuesday, that Indian and Chinese companies were the most numerous among other international companies in purchasing Iraqi oil, with 7 companies each .


She pointed out that this number comes out of 36 international companies that purchased oil during the month of June .


She added that the American and Korean companies came second with 4 companies each, and the Italian companies came in third place with 3 companies .


She explained that the rest were distributed among Jordanian, Spanish, British (Dutch-British), Kuwaiti, Egyptian, Greek, Turkish, Azerbaijani, French and Malaysian companies, with one company for each .


It confirmed that the amount of crude oil exports last June amounted to 101 million and 191 thousand and 236 barrels, with revenues of 11 billion and 354 million and 544 thousand dollars .


An American Company Wins A Contract Worth 127 Million Dollars To Support The F-16 Aircraft In Iraq


Money  and business     Economy News – translation   The US Department of Defense has announced that Reston-based Acuity International has received a $127 million Air Force contract to provide essential operational and security support for the Iraqi F-16 program .


Under the contract, work will be carried out at Brigadier General Ali Fleih Air Base in Iraq, and is expected to be completed by January 30, 2023. The contract was a single-source acquisition and involved foreign military sales to Iraq.


The Pentagon said a $62.2 million foreign military loan was binding under the grant . According to virginiabusiness website.


The Pentagon has named Sallyport Global Holdings Inc. the award winner in its announcement. Sallyport was a subsidiary of Reston -based Caliburn International , which split in late 2021 to form two companies – Acuity International , focusing on technology services, and Valiance Humanitarian LLC , which had acquired immigration detention contracts for the previous company .

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