Saturday Morning Iraq Economic News Highlights 5-6-23
The Budget Deadline Is About To Expire, And Parliament Is Afraid Of Oil
Information / Baghdad .. A member of the Parliamentary Finance Committee, Jamal Cougar, revealed the latest developments in the discussions regarding passing the federal budget, indicating that the drop in oil prices confuses the committee’s calculations regarding passing the budget.
“Discussions are continuing regarding passing the budget, and there is no intention to return it to the government at all,” Cougar said in a statement to Al-Maalouma.
He added, “The deadline granted by the State Administration Coalition is not sufficient, and it will be extended to end the discussions on the size of the budget and make the necessary reforms in it.”
He pointed out that “the decline in the global oil price increases fear in Parliament, because the decrease increases the size of the deficit, which exceeded 64 trillion dinars, and puts the Iraqi economy in peril.”
Representative Mudar Al-Karawi had revealed that there was a parliamentary consensus on setting the budget this week, warning of dire economic repercussions in delaying the budget. LINK
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Parliamentary Finance: The Decline In Oil Violated The Government’s Budget Expectations, And Projects Will Be Postponed
{Economic: Al Furat News} A member of the Parliamentary Finance Committee said that the decline in oil prices in global markets contradicted the government’s expectations in preparing the draft financial budget law.
Jamal Cougar told {Euphrates News} agency, “The government has calculated that oil prices will range between 80 and 85 dollars, and that if they fall below those rates, they will have to postpone some paragraphs or projects of the budget and transfer them to other budgets.”
He added, “We expect that the budget law will be approved within two weeks from now.”
And Prime Minister Muhammad al-Sudani announced earlier that “operating expenditures in the budget amounted to 150 trillion and 293 billion dinars, while investment expenditures amounted to 47 trillion and 555 billion dinars.”
Al-Sudani said in a press interview, “The financial deficit in the 2023 budget amounted to 63 trillion and 275 billion dinars,” noting that “the financial revenue in the budget amounted to 134 trillion and 553 billion dinars, including oil revenues of 117 trillion and 252 billion dinars, and non-oil revenues of 17 trillion dinars.”
The Prime Minister pointed out that “the price of oil was estimated in the budget at 70 dollars, according to the export of 3 million barrels and 500,000 per day, of which 400,000 barrels are from the Kurdistan Region.” Raghad Daham LINK
The Dollar Fluctuates Against The Major Currencies
Economical 2023/05/06 Capitals: agencies The dollar was softer against other major currencies on Friday, as problems in the banking sector added to talk of US interest rate cuts later this year, ahead of the long-awaited monthly US jobs report.
Sterling rose to its highest level in almost a year, the euro recovered some of the losses incurred after Thursday’s European Central Bank meeting, and the yen was poised for its first weekly gain in nearly a month – benefiting from safe-haven demand.
The dollar index, which measures the dollar’s value against other major currencies, was softer at 101.31, poised for a second consecutive week of declines.
Growing expectations of a Fed rate cut later this year dampened the outlook for the dollar, while fresh turmoil among US banks raised recession risks and increased speculation that the Fed may soon reverse course.
The central bank raised interest rates by a quarter of a point on Wednesday and signaled it may halt an aggressive tightening campaign.
US regional bank stocks fell this week with the collapse of First Republic and Los Angeles-based Backwest Bancorp (PACW.O) said it would explore its strategic options.
“Conviction is rising that credit conditions will tighten and the US economy will slow more than it otherwise would, and that takes the heat out of inflation and sets the stage for the Fed to cut interest rates,” said Chris Turner, Head of Global Markets at ING.
Traders priced in more aggressive rate cuts from the Fed, with Fed Funds futures indicating a slim chance that cuts could come as soon as July.
The April Nonfarm Payrolls report later on Friday may provide the next direction for the currency markets.
Economists predicted that the US economy would create 180,000 new jobs, compared to 236,000 in March.
Data released earlier this week showed that the US services sector maintained a steady pace of growth in April, indicating that inflation remains flat, while US private sector employers boosted hiring last month.
The dollar settled at 134.26 yen, although the Japanese currency was on track for a weekly gain of 1.5%, after three consecutive weeks of losses.
The pound sterling jumped more than a third of a percent to $1.2633, its highest level in almost a year. It increased by 0.2 percent, at 87.44 pence per euro.
The euro was marginally steady at $1.1021, holding below a one-year high. It came under selling pressure on Thursday after the European Central Bank on Thursday slowed the pace of interest rate increases with a 25 basis point increase. He pointed out that the previous moves had an impact on the economy.
Although ECB President Christine Lagarde indicated more tightening ahead, the markets scaled back their expectations on how much further interest rate hikes would be.
The Australian and New Zealand dollars were among the biggest beneficiaries of the dollar’s slide, touching multi-week highs, although the kiwi later pared its gains.
Meanwhile, the US dollar fell 1% to NOK 10.58, while the Swiss franc weakened after data showed that Swiss annual inflation fell more than expected in April.
The dollar was last up 0.64% at 0.8915 Swiss francs. https://alsabaah.iq/76293-.html
Al-Kazemi: The Budget Deficit May Decrease To 18 Trillion Dinars
Money and business Economy News – Baghdad The Parliamentary Finance Committee suggested that the current May 15th be the date for approving the budget bill, with the committee seeking to reduce the budget deficit to 18 trillion dinars.
Committee member Mueen Al-Kazemi said, “At this stage, the committee is hosting ministers, and through these hosting and reviewing schedules, we will seek to reduce the deficit as much as possible, primarily in the operational field, that is, the commodity and service consumption of the ministries of furniture, which has taken a significant turn in increasing allocations.”
Al-Kadhimi added, “The percentage of deficit reduction has not been finally agreed upon, but it could reach 18 trillion dinars,” noting that “the committee is trying to make the reduction professionally and according to unnecessary chapters.”
And Al-Kazemi continued, in an interview with the official newspaper, “Al-Sabah”, that “the approval of the budget will take place during this month (May) and will not exceed it.”
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Weightings.. Mid-May Is The Date For Approving The Budget
The first 2023/05/06 Shaima Rashid and Rola Wathiq The Parliamentary Finance Committee suggested that May 15 be the date for approving the draft general budget law, with the committee seeking to reduce the budget deficit by up to 18 trillion dinars, at a time when the Parliamentary Action Committee disclaimed its responsibility regarding objecting to the financial aspects of the Persons with Disabilities Act.
A member of the Finance Committee, Mueen Al-Kadhimi, said in an interview with “Al-Sabah”: “At this stage, the committee is hosting ministers, and through these hosting and reviewing schedules, we will seek to reduce the deficit as much as possible, primarily in the operational field, i.e. the commodity and service consumption of the ministries of furniture.” Which took a significant turn in the increase of allocations.
He added, “There was no final agreement on the percentage of deficit reduction, but it could reach 18 trillion dinars,” noting that “the committee is trying to make the reduction professionally and according to unnecessary chapters,” noting that “the approval of the budget will take place during this month (May). ) and will not exceed it.”
In turn, a member of the Finance Committee, Jamal Cougar, said in an interview with “Al-Sabah”: “The committee is still hosting ministers, so it will not be able to complete it on the 10th of this month, but rather its completion may exceed the middle of the month.”
He added that “the deficit reduction so far is inaccurate and there is no specific number, but there is an intention to reduce the deficit and the reduction will include ministries with large budgets,” noting that “the governorates will not be included in the reduction, but on the contrary, there are governorates that the committee may increase its budget and governorates that remain on their budget.”
He continued, “There is a session for governors and for independent bodies, and the task may be held, including the integrity and the endowments (Shiite and Sunni), if there is time, since the time set for approving the budget is short, and it is certain that part of hosting bodies and ministries will be canceled.”
On the other hand, a member of the Labor Committee and Parliamentary Civil Society Organizations, Nour Nafeh Al-Jelhawi, told Al-Sabah: “The committee is far from all additions or financial aspects related to the People with Disabilities Law and any other law,” noting that “the delay that I requested The government in this law will not last long, as the resumption of the sessions is sufficient to vote on it during the next few days.
She explained that “people with disabilities demanded an increase in their salaries within the law that both the government and Parliament worked to approve, but the increase in funds was a reason for delaying its approval, due to the presence of a large deficit in the budget, which prompted the government to wait with it, to study the mechanism for that, to be more Sobriety and re-vote it.”
Al-Jelhawi stressed that “the House of Representatives in general and the Labor Committee in particular are far from approving funds in laws or otherwise, since this issue is exclusively within the government’s jurisdiction and should not be interfered with at all.”
For his part, the official of the People with Disabilities Committee at the Central Competence Office, Alaa Abu Ragheef, identified, in an interview with “Al-Sabah”, some issues that could hinder the adoption of the law, as it relates to more than one party, indicating that “the Ministry of Labor and Social Affairs will not allow the separation of a welfare body.” People with disabilities, and some personalities want to access the issue (quota) through the law, in addition to the rights of the actual beneficiaries of this segment, which were mentioned and not implemented.
He added that “officials forced people with disabilities to give up their rights and accept a little, as the majority of them gave up a full-time helper in exchange for a cash allowance, even though both are their rights,” stressing that “delaying the approval of the law does not rid the government of the financial consequences that must be applied.”
Abu Ragheef called for the formation of an independent body or commission for people with disabilities, to supervise the institutes and institutions concerned with this segment, and put the phrase “providing instead of working.” He said: “The Ministry of Health must provide treatments for people with disabilities and special needs inside and outside Iraq, and the cash allowance for people with Disability is a right for them, whether they are employees, retirees, or earners, just like the families of martyrs and political prisoners.” Edited by: Muhammad Al-Ansari https://alsabaah.iq/76319-.htm
Expert: The Iraqis Imported $32 Million Worth Of American Cars In 3 Months
Money and business Economy News – Baghdad Economic expert Manar Al-Obeidi said, on Saturday, that American personal car exports to Iraq rose by 306% on a quarterly basis, and by 931% on an annual basis.
Al-Obeidi added, “The total number of cars exported to Iraq from America reached 1,021 cars in the first quarter of 2023, compared to only 99 cars in the first quarter of 2022.”
He added, “The average value of imported cars also increased from $8,500 in the first quarter of 2022 to $32,000 per car in the first quarter of 2023.”
He explained, “The value of American cars exported to Iraq in the first quarter of 2023 amounted to about $32 million, compared to $8.5 million in the first quarter of 2022.”
And he indicated that “this increase is due to the increasing demand for American four-wheel drive cars in Iraq and the high market share of American cars at the expense of other types of other origins.”
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