Wednesday Evening Iraq Economic News Highlights 7-20-22
Economic Center: Iraq Raises Its Holdings Of US Bonds To More Than 4.5 Billion Dollars
Economie| 11:02 – 20/07/2022 Baghdad – Mawazine News The Iraqi Political Economic Center revealed, on Wednesday, a rise in Iraq’s possession of US bonds.
And the director of the center, Wissam Hadmal Al-Helou, said in a statement received by Mawazine News, that “Iraq’s possession of US Treasury bonds for the month of May of 2022 increased by 4 billion and 584 million dollars, or 13.94%, to reach 32.894 billion dollars, after it was 28.310 billion dollars. Last April, according to the latest official statistics issued by the US Treasury.
And Al-Helou, that “these bonds also rose from the same month last year 2021, when Iraq’s possession of bonds amounted to 20.9 billion dollars, and that Iraqi bonds, including long-term guarantees by 15.485 billion dollars and short-term guarantees by 17.409 billion dollars.”
He pointed out that “this bond represents 0.4% of the world’s bonds,” adding that “Saudi Arabia comes in first place at the forefront of the (Arab) countries with the most possession, reaching 114.650 billion dollars, and Kuwait comes second with 46.326 billion dollars, and the UAE comes third with 38,277, and then Iraq fourth and Oman fifth with 6.327 billion dollars, then Morocco with 3.723 billion dollars.
And he added, “The most holder of US bonds is Japan, at $1,212.827 trillion, followed by China, with $980.786 billion, followed by the United Kingdom, with $634.010 billion, and Ireland, with $289.279 billion.” Ended 29/N33 https://www.mawazin.net/Details.aspx?jimare=199876
Ports: The Southern Port Of Umm Qasr Received A Ship Loaded With More Than 11 Thousand Tons Of Crude Oil
Economie| 08:56 – 20/07/2022 Baghdad – Mawazine News The southern port of Umm Qasr received the ship ALFRED, docked at berth No. (2), with a load of (11177) tons of crude oil.
The Director General of the General Company for Iraqi Ports, Farhan Al-Fartousi, said in a statement received by “Mawazine News”, that “the southern port works by importing and exporting goods, cargo, oil derivatives and foodstuffs on a regular basis.”
Al-Fartousi added, “Today, the port received a commercial vessel loaded with (11177) tons of Filtrate crude oil at berth No. (2) for the Union Company. The docking and unloading operations took place in cooperation and coordination between Maritime Navigation, the port administration and the Shipping and Unloading Division.” Ended 29/N33 https://www.mawazin.net/Details.aspx?jimare=199859
Oil: We Exported Limited Quantities With Large Revenues Amounting To 11 Billion Dollars Per Month[/Size]
Economie| 03:50 – 07/19/2022 Baghdad – Mawazine News The Ministry of Oil announced, on Tuesday, the export of limited quantities of crude, with large revenues amounting to 11 billion dollars per month.
A statement by the ministry, which Mawazine News received a copy of, stated that the First Vice President of the National Oil Company – Executive Director Hamid Younis confirmed during his tour of Basra oil and the Faw oil port: planning to sustain and increase the national production of crude oil.
He continued his speech, that the ministry and the company are keen to implement projects that contribute to sustaining and increasing the national production of crude oil, and working to achieve a high flow and pumping of crude oil to global markets in support of the national economy.
He added, “This came during an inspection tour by the Executive Director to the Basra Oil Company and the Faw oil port, accompanied by the Director General of the Basra Oil Company and a number of officials, to follow up on the implementation of a number of infrastructure development projects aimed at sustaining and increasing production and escalating export capacities, including the pipeline system project. The marine and storage and pumping stations in the port of Faw in Basra Governorate
Younis said that the national staff, in cooperation with international contracting companies, continues day and night in order to implement the planned programs for these projects despite the economic and health challenges and high temperatures. Expanding export capabilities and developing the southern ports, in proportion to the expected increases, pointing to
The ministry’s success in exporting limited quantities with large financial revenues ranging between (10-11) billion dollars per month, which contribute to supporting the national economy.
The statement pointed out that during a meeting he held with officials in the Basra Oil Company, the Vice President of the National Oil Company stressed the importance of expediting the implementation of the planned projects, and the importance of developing oil fields in the south to support national production, and work to improve the investment environment in the oil sector, to attract More sober international companies, and that the company is working to expand the horizons and develop its investment and commercial philosophy in order to enhance its economic and development role.
Younes expressed his hope that the group of projects concluded by the ministry and the company with Total will contribute to increasing and sustaining production, including the project to transfer sea water to oil fields, and increase oil production from Artawi, as well as investing in gas and clean energy. Ended 29/R77 https://www.mawazin.net/Details.aspx?jimare=199797
Ambiguity about devaluing the exchange rate… Parliamentary Finance warns against violating it
Posted On2022-07-20 By Sotaliraq Baghdad / Hussein Hatem
Deputies in the Finance Committee rule out returning the exchange rate to what it was about two years ago, despite the financial surplus achieved from oil prices, while noting that changing it at the present time will generate compensatory claims by the owners of some investment projects contracted for the government.
And the Central Bank of Iraq decided in December 2020, to amend the exchange rate of the US dollar to 145,000 dinars for every $100, according to the state’s general budget for 2021 approved by the House of Representatives.
Committee member Jamal Cougar says, “Restoring the dollar exchange rate to its previous era is difficult at the present time, and this matter is not one of the tasks of the House of Representatives, and it is incorrect according to a number of reasons,” noting that changing the exchange rate is one of the exclusive powers of the Central Bank of Iraq. and to the Ministry of Finance.
He added that “despite the financial surplus achieved by the rise in oil prices, there is a debt owed by Iraq in favor of external and internal banks of no less than 100 trillion dinars.”
Cougar pointed out that “the rise in oil prices is not stable, but rather came due to the crisis of the war between Russia and Ukraine, meaning when the war stops and things return to their normal state, oil prices will drop.”
And he indicated, “Changing the exchange rate will generate compensatory claims by the owners of some investment projects contracted for the benefit of the state, meaning that the affected investor will demand compensation and therefore what some are promoting about the possibility of the House of Representatives issuing decisions that restore the dollar exchange rate are nothing but auctions and titillation for the feelings of the Iraqi street.” .
Cougar ruled out, “Passing the 2022 budget law without forming a government, and that the latter is still subject to the consensus of the political forces on its formation, because the withdrawal of the Sadrist bloc from the political process confused the matter, and therefore it is difficult to predict how the mechanism of forming the next government will be.”
In turn, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, says, “Changing the exchange rate is possible, but it requires patience and careful study,” adding, “We need to cook on a quiet fire and monitor prices until the end of 2022, oil prices and foreign reserves.”
Saleh added, “The exchange rate of the dinar against the dollar follows stability, and it is not arbitrary, but rather a contract between the Central Bank of Iraq and the Ministry of Finance because the foreign currency offer comes from the Ministry of Finance, which is the only source for it in the country.”
He pointed out, “The Central Bank deals in dollars to maintain cash reserves and prevent inflation, and the modern Iraqi financial history is witnessing cooperation in determining the dollar exchange rate between the Central Bank and the Ministry of Finance.”
He continued, “Everything is possible, but we need patience in changing the dollar exchange rate in the event of an increase in prices and the fiscal policy is unable to cover the dinar,” noting that “the Food Security Law, if it is not able to secure the requirements in the event of high prices, the Central Bank will intervene to preserve the strength of the dinar.” against the dollar.” LINK
Oil Minister: Iraq Is Preparing To Export 4 Million Barrels Per Day By The End Of 2023
Posted On2022-07-20 By Sotaliraq Translation: Hamed Ahmed Oil Minister Ihsan Abdul-Jabbar expected that crude oil prices in the global market will range by more than $100 per barrel during the rest of this year and will remain at this high level for several years to come, stressing that this requires continuing the efforts of the oil-producing countries within the Organization (OPEC Plus) to achieve Balance between supply and demand, while talking about a plan to achieve self-sufficiency in gasoline and stop importing it.
Abdul-Jabbar said, in an interview with the US Energy Agency (Bloomberg), translated by (Al-Mada), “I would like OPEC to retain its tools to measure and control production and maintain the existing balance, and we will discuss this matter with our partners during the next OPEC Plus meeting on August 3.”
And the agency stated in a report, that “the Organization of Petroleum Exporting Countries (OPEC) is working with Russia and other producers to gradually restore processing rates in line with the return of the world’s economies and energy demand to its normal state after its decline during the Corona pandemic period.”
The report added, “OPEC Plus will restore all its previous production ceilings by the end of August, while the current agreement of the organization will continue to work together until the end of this year.”
He pointed out that “crude oil prices had jumped to more than $100 per barrel after the Russian invasion of Ukraine last February, and the rise in Brent crude touched the $140 per barrel mark in March, at a time when shipping companies assessed the risk of equipment failure and the possibility of imposing sanctions.”
And the report indicated that “OPEC oil ministers blamed the decline in investment and production capabilities in all aspects of energy as a reason for not being able to keep pace with the recovery in demand, although the group itself failed to achieve its own production ceilings and lagged behind the demand rate.”
Abdul-Jabbar stated, “Expectations indicate that oil market prices will remain high over the next three to four years,” but he did not specify a specific price for a barrel.
Abdul-Jabbar added, “OPEC Plus contributed to achieving stability in the oil markets and maintaining an average price of $100 per barrel,” stressing that “continued cooperation between producers will help alleviate any future crisis in the energy market.”
The report pointed out that “US President Joe Biden, and to face the decrease in Russian oil supplies, especially to Europe, this week went to the Middle East with a visit to Saudi Arabia and to attend the Jeddah summit in search of guarantees of additional oil supplies that will be pumped from the region.”
The report quoted “Biden’s adviser on international energy affairs, Amos Huchstein, as saying: Washington expects that the oil-producing member states of OPEC will take some steps to strengthen the oil market with supplies soon.”
In turn, Abdul-Jabbar, who attended the Jeddah meetings within the Iraqi delegation, pointed out that “the discussions that took place there in this regard focused a lot on market stability and avoiding fluctuations and fluctuations in prices, rather than addressing the issue of specific increases in production or production capabilities.”
The report confirms, “European buyers are now avoiding Russian crude oil,” and found that “the flow of oil barrels of that country to the Asian market has exacerbated the export competition from Gulf oil producers such as Iraq and Iran.” Abdul-Jabbar says, “This had a marginal impact on Iraqi crude sales to the region, and the country is looking to adhere to marketing methods or outlets.”
The report continues that “Iraq, which is the second largest oil producer in OPEC, is expanding its oil refineries and enhancing its export capabilities in order to keep pace with the rising demand for fuel and crude oil.”
Abdul-Jabbar stressed that “Iraq hopes to double its production of gasoline, which would allow it to cover local demand and stop the imports required for this fuel by the year 2025.”
Abdul-Jabbar said, “The country will start production operations of 140,000 barrels per day from the Karbala refinery by next November.”
Abdul-Jabbar added, “The first batch of fuel supplies from this project, which will eventually include gasoline, diesel and jet fuel, is expected to invade the local markets later this year, and it is also expected that the refinery will be operating at its maximum capacity during the first half of the year.” Next”.
Abdul-Jabbar expected that “Iraq’s crude oil export capacity will expand from its southern ports to nearly 4 million barrels per day, by the end of next year.”
Abdul-Jabbar went on to say that “crude oil sales for the month of July will be at a rate of 3.45 million barrels per day, with the exception of the Kurdistan region’s oil fields.”
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