Friday Morning Iraq Economic News Highlights 4-28-23
Friday Morning Iraq Economic News Highlights 4-28-23
Al-Baydani Explains The Reasons For The Decline In The Exchange Rate Of The Dollar And The Convergence Of The Value Between The Official And The Parallel
Information / Baghdad.. Economic affairs specialist Hisham Al-Baydani explained, on Friday, the reasons for the decline in the exchange rate of the dollar in the parallel market, pointing out that there is a convergence in value between the official offering of the state and the parallel market.
Al-Baydani told Al-Maalouma, that “reducing the gap between the parallel and official price in the local markets will continue until it reaches a negligible difference in the coming period, for many reasons, including the ease of real merchants obtaining dollars through official outlets, after many of them avoided dealing directly.” For concerns related to tax and other reasons, in addition to the platform accepting nearly eighty percent of requests for those wishing to obtain hard currency.
He added, "Despite what the dinar situation has gone through in the past period, Iraq has begun to gain something from regulating its foreign trade after it remained in the past years without clear data or controls regulating the work of its trade, which led to a large withdrawal of the dollar through bills, most of which are forged with the aim of smuggling." Or even money laundering, especially since many regional countries do not have hard currency liquidity easily, as is the case in Iraq. LINK
A Sudanese Advisor Expects The Official And Parallel Dollar Prices To Match Within Weeks
Time: 04/28/2023 Read: 1,053 times Economic: Al Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Salih, expected that the official dollar exchange rates and the parallel market would match within weeks.
"We expect that, within a few weeks, there will be a match between the two prices," Saleh said to the Euphrates News Agency, noting that "this match is if the difference between them is 2%, then it is considered a match."
He added, "The matching of the parallel exchange rate to the official exchange rate depends on the extent of disclosure of the licensed banks to the electronic compliance platform, by giving the correct information and adhering to the controls and transfers in a greater way, which helps to match the official parallel price."
He pointed out that "there is a high degree of adaptation in foreign transfers, which represent 80% of the demand for the dollar, and at the same time, checking the data has become easier."
It is noteworthy that the exchange rate of the dollar in the parallel market (local stock exchanges) recorded a noticeable decrease in the past days, and yesterday it reached 1410 dinars to the dollar. LINK
Parliamentary Finance: Next Week, Five Ministers Will Be Hosted As Part Of The Budget Discussions[/Size]
A member of the Parliamentary Finance Committee, Representative Mudar Al-Karawi, confirmed, on Thursday, that it will host 5 ministers next week to discuss the mechanisms for distributing projects and passing the budget.
Al-Karawi said, in a press interview seen by “Takadum”, that “the pace of movement around the 2023 budget will escalate at the beginning of next week, and 4-5 ministers, including Finance and Planning, will be hosted by the Finance Committee in order to develop a narrative on some items of the 2023 budget, which is the largest in terms of amount of money allocated to it.
He added, "The file of the fiscal deficit is still a real source of concern for us, with its high percentage compared to the budget, and all efforts are directed towards reducing it significantly, with the need to pay attention to the borrowing file, whether internally or externally, to avoid pressure in terms of accumulating interest debts."
He pointed out, "The next two weeks, the picture will be clearer regarding a number of important points in terms of the entitlements of the segments, the financing of the provinces, and the size of the fiscal deficit." https://takadum-news.com/archives/161443
Can The Budget Be Amended By Changing Oil Prices? A Legal Expert Explains
The legal expert, Ali Jaber Al-Tamimi, explained the possibility of amending the budget law after voting on it in Parliament in the event of a change in the oil price at less than the amount specified for a barrel in the budget that Prime Minister Muhammad Shia’a Al-Sudani handed over to the House of Representatives.
Al-Tamimi said in a press interview seen by “Takadum” that “merging budgets for the next three years is possible constitutionally and legally, as indicated by Article 78 of the Constitution and Article 4, Paragraph 2, of the Financial Management and Public Debt Law No. 6 of 2019.”
He added, "The aforementioned legal article has authorized the merger in budgets, which are medium-term for the next three years, and the first year is obligatory, and the two subsequent budgets are subject to amendment by Parliament and according to circumstances."
And he indicated that “making the amendment is appropriate to the philosophy of budget legislation, which is a future financial plan that prevents the delay in legislation and can estimate the value of oil and the price of the dollar, and determine appointments and jobs with complete stability.”
Deputy: The Government Gave 3 Assurances Regarding The 2023 Budget
A member of the Parliamentary Legal Committee, Representative Salem Al-Anbuge, confirmed, on Thursday, that the government has given 3 assurances regarding the 2023 budget.
Al-Anbugi said in a press interview seen by “Takadum”, that “Iraq’s conditions are difficult in various directions, especially since it emerged from a fierce battle with the most dangerous organization at the level the world and succeeded in overcoming great risks in the past years,” pointing out that “the budget file is very important and important because it is the most important law in the conduct of the state’s financial affairs.”
He added, "The 2023 budget includes many items that directly concern us, but the Sudanese government gave 3 important reassurances regarding the financial deficit, loans, and the provision of funds to all state institutions," noting that "the government is concerned with managing the budget items after its approval."
He pointed out that “reducing the deficit by half is very likely and there is movement in this direction,” stressing that “the budget will be decided within 3-4 weeks at the latest, and it will enter into force after that.”
Parliament committees are conducting extensive discussions in order to resolve the items of the 2023 budget for approval as soon as possible. https://takadum-news.com/archives/161482
Economic Expectations For The Continued Decline Of The Dollar.. “It Will Reach The Official Price”
Today, Thursday, the economist Nabil Al-Ali expected the dollar exchange rate to continue declining in the parallel market, while the dollar price was likely to reach 1320 thousand dinars.
Al-Ali said in a press interview seen by “Takadum”, that “the central bank’s procedures were able to pass a lot of remittances, and only simple things were left,” stressing, “There was no need for irregular remittances, and therefore the exchange rate of the dollar decreased, and a conviction was generated on the street.” The Iraqi government will not raise the price of the dollar.
He added, "The price of the dollar at the beginning of the week will settle at 1320 thousand dinars per dollar, and it will be sold in the market to the citizen at 1320 or 1330 as a maximum."
The economist explained, "The bad scenario that was proposed earlier has been exceeded, and the decision to reduce the official exchange rate to 1,300 dinars was able to limit the increasing rise in the exchange rate, which had it not been for, it would have reached the threshold of 200,000 dinars for every 100 dollars."
The exchange rates are witnessing a significant decline compared to the previous months, until the exchange rate reached 141,000 dinars compared to 100 dollars, amid expectations that the exchange rate in the local markets would reach the official price set (1320) thousand dinars in the coming days.
https://takadum-news.com/archives/161499
A Political Agreement On A Specific Date "Not To Be Exceeded" For Approving The Budget
Baghdad today – Baghdad Today, Thursday, Representative Zahra Al-Bajari revealed the existence of a political agreement to pass the budget no later than the end of next May, which means that June does not come before the budget is approved.
Al-Bajari said, in a statement to "Baghdad Today", that "the committee started hosting ministries and heads of parliamentary committees for the purpose of final agreement on the final figures for each ministry."
Al-Bajari ruled out approving the budget law before the end of next month, because the Finance Committee is currently working to listen to independent bodies and ministries for the purpose of discussing them separately to start transfers between the chapters of budget allocations.
Al-Bajari added, "The parliamentary political opinion agreed on the budget legislation before the beginning of June." LINK
Deputy: The Government Gave 3 Assurances Regarding The 2023 Budget
A member of the Parliamentary Legal Committee, Representative Salem Al-Anbuge, confirmed, on Thursday, that the government has given 3 assurances regarding the 2023 budget.
Al-Anbugi said in a press interview seen by “Takadum”, that “Iraq’s conditions are difficult in various directions, especially since it emerged from a fierce battle with the most dangerous organization at the level the world and succeeded in overcoming great risks in the past years,” pointing out that “the budget file is very important and important because it is the most important law in the conduct of the state’s financial affairs.”
He added, "The 2023 budget includes many items that directly concern us, but the Sudanese government gave 3 important reassurances regarding the financial deficit, loans, and the provision of funds to all state institutions," noting that "the government is concerned with managing the budget items after its approval."
He pointed out that “reducing the deficit by half is very likely and there is movement in this direction,” stressing that “the budget will be decided within 3-4 weeks at the latest, and it will enter into force after that.”
Parliament committees are conducting extensive discussions in order to resolve the items of the 2023 budget for approval as soon as possible. https://takadum-news.com/archives/161482
The Three-Year Budget... A Guarantee For The Implementation Of The Government Program
Posted On2023-04-28 By Sotaliraq Baghdad: Hussein Thaghb Al-Tamimi A new mechanism for approving the federal budget comes to support developmental trends and is supportive of the stages of work for a period of three years. The matter requires adjustment in the two-year budgets 2024-2025, at the request of the executive authority itself, and thus the executive authority in its ministries, governorates, and agencies can implement its ministerial curriculum to the fullest and in a sustainable manner.
Financial advisor to the Prime Minister, Dr. The appearance of Muhammad Salih said: “Fiscal policy for the first time in the history of the general budget in Iraq practices the principle of medium-term financial planning, which is based on the provisions of Article 4/Second of the Federal Financial Management Law in force No. 6 of 2019 as amended.”
He added, “Despite the commitment to the annual budget, which is defined on the basis of the fiscal year that begins on (1/1) of each year and ends on (12/31) of the same year, as stated in the provisions of Article 1/ Ninth of the same law above, as well as in the introduction to the article.
Fourth / Second of the law also above, however, the development factor and the nature of maintaining the strength and unity of the flow of funds for the new strategic investment projects and the proposed development funds in terms of investment spending, required financial sustainability and stability in the executive activity without interruption imposed by the legislative process on the subject of the annual budget (i.e. avoiding Legislative sclerosis as a result of the annual budget approval).
He pointed out that “the implementation of the development and service items of the ministerial curriculum that was adopted by the government during its executive life, and which was approved by the House of Representatives last October, requires, within the framework of a sustainable financial policy, the application of a medium-term general budget for the years 2023-2025, as the provisions for implementing a law will be The general budget is binding for the year 2023, but it is subject to amendment by the government in other years, with the approval of the House of Representatives, when needed.
Thus, Article 4/Second of the Financial Management Law No. 6 of 2019 as amended, which was approved in the three-year budget, stipulates the following: The annual budget starts from (1/1) and ends on (12/31) of the same year, and the Federal Ministry of Finance has the right to prepare an average budget The term is for a period of (3) years, presented once and enacted, and the first year is obligatory, and the Council of Ministers, based on a proposal from the Ministries of Finance and Planning, may amend it for the second and third years and with the approval of the Council deputies.
Saleh stressed that “the legislation will be enforceable for the second and third years of the life of the financial plan, and there is no need for the legislative authority to intervene except when the matter requires adjustment in the budgets for the two years 2024-2025 and at the request of the executive authority itself, and this is what will provide a stable legislative cover for fiscal policy in particular and economic policy in general, In order for the executive authority in its ministries, governorates, and agencies to implement its ministerial curriculum in the fullest and sustainable way.
Financial expert d. Mahmoud Dagher said: “It was mentioned in the Financial Management Law a paragraph that allows setting up a financial plan for three years that is embodied in the possibility of presenting three budgets at once to the House of Representatives, the first of which is binding and the other two are modified accordingly. This paragraph was employed by the government, provided that the budget for the year 2023 and the total Its establishment is 199 trillion dinars, and the budget for the next two years will be of the same financial size, and it will be repeated.
Dagher preferred to present an actual budget for three years, and in this way I find it more beneficial for the country than presenting a budget for one year and repeating it for the next two years. LINK