Iraq Economic News and Points to Ponder Saturday AM 1-25-25
An Economist Shows The Monthly Government Spending And Its Impact On The Rise Of The Dollar
Friday 24 January 2025 18:48 | Economic Number of readings: 137 Baghdad / NINA / Economic expert Manar Al-Obaidi revealed today, Friday: "The average monthly spending of the Iraqi government in 2024 amounted to about 12 trillion dinars," noting that: "Adding the loans and advances obtained by government agencies and ministries, which are estimated at about 2 trillion dinars per month, raises the total government spending to 14 trillion dinars per month."
Al-Obaidi said in a statement: "The government sector usually works for 20 days a month, which means that the daily spending rate is about 700 billion Iraqi dinars," noting that "to cover this level of spending, the Ministry of Finance needs to sell at least $ 400 million per day to the Central Bank, so that the latter can provide the cash needed to cover government expenditures."
He pointed out: "The Central Bank cannot provide the Iraqi dinar needed by the Ministry of Finance, except by selling its equivalent in dollars."
The economic expert explained: "The dollar sales by the Central Bank are directly linked to the increase in the size of government spending," indicating that: "The more spending, the more the Central Bank needs to sell larger quantities of dollars."
He added: "If this trend continues, we may reach a stage where the market witnesses daily sales ranging between 400 and 500 million dollars through the various mechanisms adopted by the Central Bank," warning that this reflects the direct impact of the rise in public expenditures on the currency market." / End8 https://ninanews.com/Website/News/Details?Key=1181860
Hanan Al-Fatlawi Calls On Parliament To Pass The Budget Amendment As Quickly As The “Three Laws” Were Approved
Friday 24 January 2025 | Politics Number of readings: 103 Baghdad / NINA / The head of the / Will / bloc, MP Hanan Al-Fatlawi, called on the House of Representatives to pass the amendment to the three-year budget law with the same speed with which it passed the three laws.
Al-Fatlawi said in a post on the / X / platform: "I call on the House of Representatives to pass the budget amendment with the same speed with which it passed the three laws within seconds."
She added: "Keeping the budget unamended means that the government will continue to pay one trillion dinars per month in salaries to the region, while companies in the region continue to produce 320 thousand barrels per day (870 billion dinars per month) that are smuggled outside Iraq and sold at low prices, much lower than SOMO prices, in addition to Turkey demanding a fine of $ 24 million per month for not exporting oil through the Iraqi pipeline extending to Ceyhan."
Last Tuesday, the House of Representatives voted on the three controversial laws (amending the Personal Status Law, amending the General Amnesty Law, and the Law on Returning Seized Lands to Their Owners) using the “one-basket” method, which sparked protests and objections from many representatives and political blocs, and resorted to challenging the legality of the vote, considering that the necessary quorum was not completed. https://ninanews.com/Website/News/Details?key=1181868
Iraqi Oil Prices Fall Below $80
Buratha News Agency 13420 25-01-24 Iraqi oil prices fell during the opening of trading today, Friday (January 24, 2025), below $80 per barrel for the first time in more than two weeks in the global market.
According to data, Basra Heavy crude recorded $76.59 per barrel, while the average recorded $79.85 per barrel, with a change of -0.35, respectively, for March 2025 delivery.
The data also showed a decline in global crude prices, with British Brent crude recording $78.26, while US West Texas Intermediate crude recorded $74.59 per barrel, with a change of -0.03 for both.
https://burathanews.com/arabic/economic/455515
Oil Falls As Trump Pressures For More Supplies, Lower Prices
Economy | 01/24/2025 Mawazine News – Baghdad Oil markets fell on Friday, a day after US President Donald Trump urged OPEC and its de facto leader Saudi Arabia to lower prices in a broad effort to boost crude output.
Brent crude futures were down 50 cents at $77.95 a barrel by 0044 GMT. U.S. West Texas Intermediate (WTI) crude was down 31 cents at $74.31. Trump said in a speech on Thursday at the World Economic Forum in Davos, Switzerland, that he would ask OPEC to lower the cost of a barrel of crude. He said he would ask Riyadh to increase its investment package in the United States to $1 trillion, up from $600 billion reported by the Saudi state news agency earlier in the day.
Analysts said uncertainty over Trump’s tariff policies and the possibility that the new president would push for higher U.S. oil production also weighed on crude futures.
But to prevent further declines, U.S. crude inventories fell last week to their lowest since March 2022, data from the U.S. Energy Information Administration showed. https://www.mawazin.net/Details.aspx?jimare=258939
Saleh: Serious Government Move To Stimulate The Insurance Sector In Iraq
Local | 12:57 - 01/24/2025 Mawazine News – Baghdad The Prime Minister's Advisor for Financial Affairs, Mazhar Mohammed Salih, confirmed today, Friday, that there is a serious government trend to activate the insurance sector in Iraq.
Salih said: "Activating the insurance sector in Iraq and addressing the absence of insurance culture as a means of financial protection requires considering several intertwined factors, some of which relate to the movement of the overall economy, and others to the societal culture,
including reviewing existing legislation, including, for example, the importance of providing tax incentives for companies and individuals who choose insurance and supporting small and medium-sized companies to provide innovative insurance products that meet market needs.
" He added, "Based on that, I find it important to design insurance products that suit different categories, such as agricultural insurance and disaster insurance, and to inform citizens that there is mandatory insurance for car accidents, as there is an approved mechanism in this regard that not many people know about, and it is part of the absent societal culture towards mandatory insurance in the country,"
indicating that "citizens' confidence in non-banking financial institutions must be enhanced, including insurance activity in particular, which is reflected in the development of the insurance sector as a whole and its interconnections in the entire national economy."
He added that "the disparity in purchasing power of many segments of society makes them focus on basic needs instead of future financial planning, and for inherited reasons as well due to years of wars, conflicts, and social and economic changes that have affected society."
He pointed out that "the decline in insurance culture is the main factor in the lack of development of this vital sector due to the lack of knowledge of the benefits of insurance and its importance as a means of financial protection, as families, communities, and clans are often relied upon to confront risks instead of resorting to appropriate insurance solutions guaranteed by law."
He stressed "the need to build integrated awareness programs targeting youth and various business sectors and improve the level of services in a way that enhances trust between customers and insurance companies, in addition to increasing the number of options provided by current insurance companies and activating the use of digital technology to improve the customer experience in terms of easy access to insurance services,"
noting "the importance of promoting partnership between the state and the private sector in the scope of life insurance, its services, and its institutions, and I find that it represents the second phase of the financial and economic reform undertaken by the government program."
He pointed out that "there is a serious government trend towards activating the insurance sector as it is the financial guarantor of the individual's and society's life, due to its significant positive impact on the national economy in general and the development of the financial market in particular by reducing risks and enhancing financial stability in the country."https://www.mawazin.net/Details.aspx?jimare=258947
President Of The Republic Reviews Iraq's Long-Term Economic Development Plan In Davos
Politics | 01/24/2025 Mawazine News – Baghdad President of the Republic Abdul Latif Jamal Rashid reviewed, on Friday, the main points of Iraq's plan for a long-term economic development strategy at the Davos Conference Center.
A statement by the Presidency of the Republic received by "Mawazine News" stated that "President of the Republic Abdul Latif Jamal Rashid participated in a dialogue session entitled (Towards a more stable land through land reclamation) at the Davos Conference Center."
The statement added that "during the session, which was attended by the Under-Secretary-General of the United Nations and Executive Secretary of the United Nations Convention to Combat Desertification Ibrahim Thiaw, the South African Minister of Agriculture Gwen Steenhuizen, the Executive Director of the Consultative Group on International Agricultural Research Asmahan Al-Wafi, the Executive Director and CEO of New Aero Farms Molly Montgomery, and the Deputy Prime Minister of Mongolia Togmeddin Dorjkhand, the President delivered a speech in which he emphasized his experience as an engineer specializing in water management with decades of experience, and he has devoted a large part of his career to addressing water scarcity issues and developing sustainable land use methods."
In his speech, the President explained the pressures that Iraq is facing due to climate change, water scarcity and desertification, stressing that "Iraq does not stand idly by in the face of these challenges, but has taken decisive and tangible steps to confront them through effective policies aimed at achieving sustainable development."
The statement continued, "The President reviewed the main points of Iraq's plan for a long-term economic development strategy, especially in the areas of agriculture, energy and water security," noting that "Iraq is currently participating in ongoing negotiations with neighboring countries such as Turkey and Iran, with the aim of concluding fair agreements to share the waters of the Tigris and Euphrates rivers,"
indicating that "these negotiations represent a strategic priority for the future of our region, in addition to its work at the international level with specialized international organizations to adopt agricultural practices that are resistant to climate change and ensure access to the necessary funding and expertise to achieve success."
The statement continued, "The session was attended by Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein, Chairman of the Advisory and Experts Authority in the Presidency of the Republic Ali Al-Shukri, and the Iraqi Ambassador to the Swiss Confederation Mohammed Al-Dabbagh."
Here is the text of the speech:
“I am pleased to be with you today at this important meeting. As a water management engineer with decades of experience, I have devoted a large part of my career to addressing water scarcity issues and developing sustainable land use methods.
These challenges are not new to me, nor are they merely theoretical issues; they are urgent realities that require us to act quickly. I am pleased to share with you today Iraq’s strategies to address these issues effectively and directly.
Today’s session, entitled “Towards A More Stable Land Through Land Reclamation,” focuses on a critical global challenge: land degradation.
40% of the world’s land has lost its fertility, threatening the stability of our economic and social environments. This phenomenon has caused a decline in agricultural productivity, pollution of waterways, and increasing and accelerating drought, putting economies and livelihoods around the world at risk.
Iraq is no exception to these challenges. About 39% of our land is exposed to desertification, at a time when our water resources, which are the basis of agriculture and livelihoods, are under increasing pressure.
The situation is exacerbated by climate change, rising temperatures, and declining water flows from rivers coming from neighboring countries.
However, Iraq is not standing idly by in the face of these challenges. We are taking decisive and tangible steps to confront them, through effective policies aimed at achieving sustainable development.
Let me review with you some of the main initiatives that we have begun to implement:
* The first and most important step is to improve the management of our existing water resources, by enhancing water use efficiency, developing modern irrigation systems, and collecting rainwater to use it for irrigating land.
* A ten-year federal national program to combat desertification: This program focuses on reforestation, soil conservation, and adopting sustainable agricultural methods.
* Expanding green belt projects: We are in the process of establishing buffer zones around our cities, to reduce the risk of desert encroachment by using local plants that are drought tolerant.
These efforts are an integral part of Iraq’s long-term economic development strategy, particularly in the areas of agriculture, energy and water security.
Sustainable development is the real guarantee of balanced growth that preserves the health of our environment for future generations.
As part of our quest for sustainable development, we are shifting towards renewable energy. We are also working to promote climate-smart agriculture, diversify crops, encourage organic and regenerative agriculture, and tighten legal regulations for sustainable land use practices.
Addressing our water challenges requires cross-border cooperation.
Iraq is currently engaged in ongoing negotiations with neighboring countries such as Turkey and Iran to conclude fair agreements for sharing the waters of the Tigris and Euphrates rivers. These negotiations represent a strategic priority for the future of our region.
Iraq is working internationally, alongside global organizations such as the United Nations Convention to Combat Desertification, the Food and Agriculture Organization (FAO), the World Food Programme (WFP), and the World Bank, to adopt climate-resilient agricultural practices and ensure access to the financing and expertise necessary for success.
In conclusion, we know that sustainable solutions can only be achieved through effective local action and community engagement, which is the foundation of our strategy to address challenges.
Ladies and gentlemen,
land reclamation is not just an environmental imperative, it is a moral responsibility towards future generations.
It is about protecting livelihoods, preserving ecosystems and ensuring a sustainable future for us and our children. Iraq is committed to this mission and I look forward to working with all of you to achieve these common goals. Thank you." https://www.mawazin.net/Details.aspx?jimare=258960
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