Economic expert Safwan Qusay spoke about Iraq’s ability to confront the decline in global oil prices, pointing out that leaving the single economy and focusing on non-oil imports has become a necessity to restore the Iraqi economy.

Qusay said, “If oil prices rise by a hundred dollars, it is possible that the quantities that were voluntarily reduced by OPEC will be re-pumped, noting that “there are no less than two million two hundred thousand barrels that have been voluntarily reduced.”

He added, “It is not in the interest of oil producers to raise oil prices above $100 because that will support investments in shale oil, indicating that the producing countries are trying to control the price between $70 and $100.”

Qusay pointed out that “Iraq will be the greatest savior for the countries of the region because it has dollar reserves and has a strategic reserve in terms of oil production,” indicating that “if the government succeeds in containing the conflict and not being dragged directly into the region’s unrest, the Iraqi economy will be pulled from the war zone to the development zone.”

Qusay explained that “Iraq is able to confront the decline in oil prices, knowing that there is no decline in prices below seventy dollars because OPEC is the one that determines the quantities of production and is determined to remain within the region of 70-100 dollars per barrel.”

He added, “The surplus that accumulated during the previous period of this year, in which Iraq sold at no less than $80 per barrel, enables Iraq to confront price changes.”

He pointed out that “Iraq has begun to diversify its economy by investing in oil derivatives and stopping the burning of associated gas, in addition to stopping the import of materials that could be included in the ration card, noting that “the government has opportunities in the matter of sustainable financing through the reserves of the Central Bank or through the sale of oil shares if revenues fail to reach their goals.”

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Tishwash:  Sudanese advisor indicates an increase in the Central Bank’s foreign exchange reserves

The Prime Minister’s Financial Policy Advisor, Mazhar Mohammed Salih, confirmed today, Wednesday, the increase in the accumulation of foreign reserves of the Central Bank of Iraq.

Saleh said in an interview with Al-Maalouma Agency, “There is a direct correlation between the current account surplus of the Iraqi balance of payments and the development of the foreign reserves of the Central Bank of Iraq.”

He explained that “as long as there is a surplus in the current account of the balance of payments that has been achieved during the current year, which is positively indicated by the accumulation of the foreign reserves of the Central Bank of Iraq during 2021, with a change rate towards an increase of more than 20% compared to the levels of 2020.”

He pointed out that “foreign currency coverage of the Iraqi dinar has increased and is approaching matching its coverage of the basic currency.”

He added that “the monetary policy of the Central Bank of Iraq enjoys the availability of a strong foreign reserve tool that can maintain the purchasing power of the Iraqi dinar and confront inflationary expectations with high and comfortable capacity through the power of intervention in imposing stability in the exchange market through open market operations practiced by the monetary authority to achieve the operational goals of monetary policy with ease and flexibility.”