Iraq Economic News & Points to Ponder Sunday Afternoon  9-17-23

Tlm724 Administrator Bondlady’s Corner

65 Trillion Dinars In Iraq’s Financial Revenues Within 7 Months

Iraqi state spending  Economy News – Baghdad  The Ministry of Finance revealed, on Sunday, that the volume of Iraqi financial revenues in the federal budget during seven months exceeded 65 trillion dinars, confirming that the oil contribution to the budget had risen to 95%, while an economist believes that non-oil revenues “will not improve.”

Al-Eqtisad News followed the data and tables issued by the Ministry of Finance this September for the accounts from January until last July for the current fiscal year, which showed that oil is still the main resource for Iraq’s general budget, reaching 95%. Which indicates that the rentier economy is the basis of Iraq's general budget.

The financial tables indicated that the total revenues until last July amounted to 65 trillion and 195 billion and 3 million and 735 thousand and 974 dinars, after excluding transfer revenues, which amounted to one trillion and 995 billion and 73 million and 713 thousand dinars, indicating that the total expenditures with advances amounted to 52 trillion and 916 dinars. One billion and 562 million and 761 thousand dinars.

According to the financial tables, oil revenues amounted to 62 trillion and 259 billion and 118 million and 923 thousand and 534 dinars, which constitute 95% of the general budget, while non-oil revenues amounted to two trillion and 935 billion and 884 million and 812 thousand and 439 dinars.

The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed in March 2021, in an interview with Shafaq News Agency, that the reasons for the economy remaining rentier are due to wars and the imposition of the economic blockade on Iraq during the past era, and the political conflicts we are witnessing today, which led to the dispersion of... for economic resources.

The Iraqi state’s continued reliance on oil as the sole source of the general budget puts Iraq at risk from the global crises that occur from time to time because oil is affected by them, which makes the country tend every time to cover the deficit through borrowing from abroad or within, and thus indicates the inability to Managing state funds effectively, and the inability to find alternative financing solutions.

Views 57  Added 09/17/2023 - https://economy-news.net/content.php?id=36403

Central Bank Sales Amounted To More Than 197 Million Dollars

Economy News – Baghdad  Today, Sunday, the Central Bank of Iraq’s sales in the foreign currency sales window amounted to more than 197.5 million dollars.

The Central Bank's website published its dollar sales schedule, which Al-Iqtisad News reviewed. It included the participation of 26 banks and 52 exchange companies, and foreign transfer requests covered $171.9 million, while cash requests amounted to more than $25.6 million.

The Central Bank of Iraq sells the dollar for documentary credits and international settlements for electronic cards at a price of 1,305 dinars per dollar, for every dollar for documentary credits and international settlements for electronic cards, at a price of 1,310 dinars per dollar for external transfers, and at a price of 1,310 dinars per dollar in cash.

Views 53   Added 09/17/2023 - https://economy-news.net/content.php?id=36397 

Iraq's Oil Exports To America Rose By More Than Half The Amount Exported Last Week

Energy   Economy News – Baghdad  The US Energy Information Administration announced on Sunday that Iraq's oil exports to America rose by more than half the amount exported last week.

The administration said in a table seen by Al-Eqtisad News, “The average US imports of crude oil during the past week from seven major countries amounted to 6.346 million barrels per day, an increase of 524 thousand barrels per day compared to the previous week, which amounted to 5.822 million barrels per day.”

She added, "Iraq's oil exports to America reached an average of 248 thousand barrels per day last week, an increase of 148 thousand barrels per day from the previous week, which reached an average of 100 thousand barrels per day."

The administration also indicated that “the most oil revenues to America during the past week came from Canada at an average of 3.645 million barrels per day, followed by Mexico with an average of 1.095 million barrels per day, and oil revenues from Brazil amounted to an average of 545 thousand barrels per day, and then Saudi Arabia at an average of 383 thousand barrels.” Daily".

According to the table, “the amount of American imports of crude oil from Nigeria is at a rate of 219 thousand barrels per day, and from Colombia at a rate of 211 thousand barrels per day, while no quantity is imported from Russia, Libya, or Ecuador.”

Views 66  Added 09/17/2023 - https://economy-news.net/content.php?id=36385

Financial Innovation In Iraq: Shifting To A Cashless Payments Landscape

Mario Macari    Economy News – Baghdad  The business sector around the world is witnessing a real revolution as a result of the adoption of digital payment systems. This heralds many transformations in many countries such as Iraq, where monetary solutions have always dominated the financial system. Although Iraq has one of the lowest rates of access to financial services in the world, with only 19% of its adult population having bank accounts, the country has taken important steps to achieve financial inclusion[1].

The Central Bank of Iraq launched several initiatives in its second strategic plan for the years 2021-2023 in order to confront this challenge. We have witnessed the implementation of many important reforms, such as supporting digital financial services, mandating the use of direct points of sale in financial transactions, reducing commercial fees, imposing linking bank accounts, and providing incentives to encourage the use of direct points of sale.

These initiatives, as a whole, aim to accelerate the pace of transition to non-cash payments so that companies and individuals can achieve optimal benefits from them.

Given their ability to influence consumer purchasing habits, merchants are critical players in this trend. By shifting their payment models to digital platforms, merchants can transform their business as well as contribute to a significant change in the overall economy. Thanks to the availability of safety and transparency, merchants can encourage the adoption of financial reforms among the population, by adopting direct point of sale systems and adopting digital culture.

Unfortunately, many merchants face many challenges in terms of lack of awareness and financial education when creating and using digital payment systems. The lack of proper training in accepting these systems and financial education hinders merchants and consumers alike, often confining them to the traditional realm of cash transactions.

Perhaps the prosperity of the digital payment system will greatly help increase financial inclusion and enhance economic growth in emerging markets such as Iraq. Digital transactions are fast and easy to track, while giving merchants relevant insights into their future sales and budgets. These payments involve less risk compared to cash transactions. With the right infrastructure and local payment service providers, digital payments can provide merchants with an optimal platform to gradually grow their business.

The Iraqi government is fully aware of the importance of digital transformation to enhance viable and prosperous economies. Recently issued policies by the Central Bank of Iraq and the government to support digital payments are scheduled to be implemented this year.

Moreover, according to Statista, a company specialized in market studies and statistics, the total value of transactions in the digital payments market is expected to reach $10 billion in 2023[2].

There are many digital payment platforms operating in the country, as the Central Bank of Iraq has issued 17 licenses of this type so far[3]. FinTech companies are collaborating with telecommunications service providers in Iraq to provide consumers with a seamless and secure digital experience to facilitate digital payments.

Visa collaborated with its partners last year to launch a variety of payment products to serve Iraq's underbanked population.

The future seems to be increasingly moving towards cashless solutions, as technology continues to penetrate every aspect of our lives. As the world continues to evolve to keep pace with the digital age, financial education and the implementation of the strictest digital security measures will play a critical role in facilitating the transition to a cashless economy more smoothly.

This transformation promises to increase the efficiency of the financial system and provide comprehensive access to financial services, especially for residents who do not have bank accounts or have accounts but do not use them.

There is no doubt that enhancing financial culture plays an essential role in completing this transformation and ensuring that individuals fully benefit from the benefits of digital financial solutions. To support financial education efforts in the market, we have selected two of our partners to collaborate with in order to provide content that can help build knowledge and help individuals improve their understanding of financial concepts and services.

These partnerships will play a pivotal role in developing a comprehensive digital payments system that enables the Iraqi economy to flourish and develop in the digital age.   Written by Mario Macari, Visa's Levant General Manager   Added 09/17/2023 - https://economy-news.net/content.php?id=36388

The Dollar Exchange Rate Continues To Rise In Iraqi Markets

Economy | 10:51 - 09/17/2023  Baghdad - Mawazine News  The dollar exchange rates continued to rise against the Iraqi dinar in local markets.  The selling price was $100, compared to 157 thousand dinars.

The purchase price was 154 thousand dinars for every 100 dollars.

  https://www.mawazin.net/Details.aspx?jimare=235095

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Points to Ponder on Riches & Wealth:

There is a burden of care in getting riches; fear in keeping them; temptation in using them; guilt is abusing them; sorrow in losing them; and a burden of account at last to be given concerning them. --
M Henry

The acquisition of wealth is a work of  great labor; its possession a source of continual fear; it loss, of excessive grief. -- From the Latin 

Agur said, "Give me neither poverty nor riches"; and this will ever be the prayer of the wise. Our incomes should be like our shoes: if too small, they will gall and pinch us, but if too large, they will cause us to stumble  and to trip. But wealth, after all, is a relative thing, since he that has little, and wants less, is richer than he that has much, but wants more. True contentment depends not upon what we have; a tub was large enough for Diogenes, but a world was too little for Alexander. -- Colton 

Our wealth is often a snare to ourselves, and always a temptation to others. -- Colton

Men pursue riches under the idea that their possession will set them at ease and above the world.  But the law of association often makes those who begin by loving gold as a servant, finish by becoming its slaves; and independence without wealth is at least as common as wealth without independence. -- Colton

In proportion as nations become more corrupt, more disgrace will attach to poverty and more respect to wealth. -- Colton

The larger the income, the harder it is to live within it. -- Whately

Misery assails riches, as lightning does the highest towers; or as a tree that is heavy laden with fruit breaks its own bough, so do riches destroy the virtue of their possessor. -- Burton

To have what we want is riches, but to be able to do without is power. -- G. Macdonald

There are two things needed in these days; first, for rich men to find out how poor men live; and second, for poor men to know how rich men work. -- E. Atkinson

He is richest who is content with the least, for content is the wealth of nature. -- Socrates

If a rich man is proud of his wealth, he should not be praised until it is known how he employs it. -- Socrates

No man can tell whether he is rich or poor by turning to his ledger.  It is the heart that makes a man rich. He is rich according to what he is, not according to what he has. -- H W Beecher

The use we make of our fortune determines as to its sufficiency.  A little is enough if used wisely, and too much if expended foolishly. -- Boovee

Worldly riches are like nuts; many clothes are torn in getting them, many a tooth broken in cracking them, but never a belly filled with eating them. -- Venning

Riches do not delight us so much with their possession, as torment us with their loss. -- Gregory