Iraq Economic News and Points to Ponder Late Tuesday Evening 3-19-24
Iraq Economic News and Points to Ponder Late Tuesday Evening 3-19-24
Tlm724 Administrator Bondlady’s Corner
Revealing The Reason For The Persistence Of The Gap In The Dollar Exchange Rate Between The Official And The Parallel
Time: 03/19/2024 Read: 3,549 times {Economic: Al-Furat News} An economic expert attributed the persistence of the price gap between the dollar and dinar exchange rates to “illegal trade.”
Nabil Al-Marsoumi told {Al-Furat News} agency, “Illegal trade with sanctioned countries is the main reason for the gap between the official price of the dollar and the parallel price, as it is difficult to cut off trade with neighboring countries such as Syria, Iran, and others like Russia, because they cover a large part of the market, especially with regard to goods.” and Iranian goods.
He added, "We expect the exchange rate to stabilize at these rates, and if the United States reconsiders and eases the sanctions, the price gap will decrease slightly now. It will not disappear."
It is noteworthy that the Central Bank of Iraq sells the dollar at the official rate of 1,320 dinars, while it reaches the “parallel” black market at a rate of 1,500 dinars. LINK
Decline In Oil Prices In Global Markets
Tuesday 19, March 2024 | Economical Number of readings: 432 Baghdad / NINA / Oil prices fell in today’s trading, Tuesday, after recording in yesterday’s session, Monday, the highest level since the beginning of last November.
US West Texas Intermediate crude futures were traded at $82.56 per barrel, a decrease of 0.19% from the previous settlement price. Meanwhile, global Brent crude futures were traded at $86.70 per barrel, a decrease of 0.22% from the previous closing price.
Today's decline came after a noticeable rise in crude prices in yesterday's trading, as Brent crude contracts rose by 1.8% to $86.89 per barrel, and US crude contracts rose by 1.95% to $82.16 per barrel./End https://ninanews.com/Website/News/Details?key=1113698
Central Bank Transfers Outside Iraq Recorded $245 Million
Money and business Economy News – Baghdad Foreign remittance sales rose at the Central Bank of Iraq auction, today, Tuesday, to record $245 million.
Today, during its auction for buying and selling the US dollar, the Central Bank sold 245 million, 622 thousand and 724 dollars, which the bank covered at a base exchange rate of 1,305 dinars, per dollar for documentary credits and international settlements for electronic cards, and at a price of 1,310 dinars per dollar for external transfers, and at the same price in cash.
Most of the bank's dollar sales went to strengthen balances abroad in the form of (transfers, credits), which amounted to 226 million, 922,724 thousand dollars, an increase of 92%, compared to cash sales of 18 million, 630 thousand dollars.
The number of banks that purchased cash dollars reached 6 banks, while the number of banks that responded to requests to enhance balances abroad reached 17 banks, while the total number of exchange and brokerage companies participating in the auction was 135 companies.
Yesterday, Monday, sales of foreign remittances at the Central Bank of Iraq auction recorded $221 million. Views 89 03/19/2024 - https://economy-news.net/content.php?id=41645
"Al-Eqtisad News" Publishes The Full Decisions Of The Council Of Ministers Session
Economy News – Baghdad Al-Eqtisad News publishes the full decisions of the twelfth regular Council of Ministers session held today, Tuesday, the most important of which was obligating the Ministry of Finance to pay the dues owed to an Iraqi bank by Kurdistan, provided that they are deducted from the region’s allocations.
The Prime Minister’s media office said in a statement, seen by Al-Iqtisad News, that “Prime Minister, Mr. Muhammad Shiaa Al-Sudani, chaired, today, Tuesday, the twelfth regular session of the Council of Ministers, in which the general situation in the country was discussed, and the most important service files were reviewed.” economic, and to deliberate on the issues on the agenda and take the necessary decisions thereon.”
The statement added, “In the field of energy, the Council voted on the following:
1. Approval to authorize the Minister of Finance, or whomever she authorizes, to sign with the relevant authorities an amendment to the loan agreement for financing the 400 kV Babylon station rehabilitation project, which is financed by the Swedish loan with JPM Bank.
2. Approval of the financing terms for the loan according to the Ministry of Finance’s letter dated February 25, 2024.
He explained, “Based on the government’s priorities, which focused on administrative reform, the Council voted on the following:
1- Approval of the controls regulating the dealings of beneficiary entities with letters of guarantee issued in their favor, taking into account the observations of the Ministerial Council for the Economy confirmed by its letter dated January 14, 2024, amending Article (17) of the aforementioned controls, according to what is stated in the department’s memorandum. Legal of the General Secretariat of the Council of Ministers, dated March 14, 2023.
2- Agreeing to accept a certified instrument or a letter of guarantee, taking into account the validity period of the certified instrument, and the beneficiary party must renew it before it becomes effective until the need no longer exists, in accordance with the rules.
The statement indicated, “Within the path of financial and banking reform, the Council issued a decision obliging the Federal Ministry of Finance to pay the dues of the Trade Bank of Iraq/TBI, due from the Kurdistan region of Iraq, in annual monthly installments for the years (2023, 2024) at a rate of (636) billion dinars for each year.” It will be deducted from the region’s allocations for the year 2024, and will be deducted later.”
He continued, "The session witnessed the approval of recommendations regarding settlement procedures for foreign claims, in accordance with Cabinet Resolutions 28 of 2014 and 48 of 2018, as follows:
1. Make an amendment to paragraphs (1 and 2) of Cabinet Resolution 28 of 2014 as follows:
a. Amend paragraph (1) to become: Authorizing ministries and entities not affiliated with a ministry with the authority to negotiate with creditor companies that have a final court ruling, and which have seized the funds of Iraqi government institutions abroad, or have not seized in their consensual settlement, at a rate less than the principal of the debt without interest,
While giving it preference in contracting with state departments in one of the government projects or contracts in exchange for the creditor party dropping the entire amount of the debt and its interests, and invalidating the lawsuit filed.
B. Amending paragraph (2) to read: Negotiating and negotiating committees shall be conducted by the relevant authorities under the supervision of the Ministry of Justice. It is exclusively concerned with following up on foreign lawsuits, and each case is presented individually to the Council of Ministers for approval.
C. Continued implementation of Cabinet Resolution No. 48 of 2018.
2. Taking into consideration the opinion of the Legal Department in the General Secretariat of the Council of Ministers.
The statement continued, "The session included approval of the following:
First: Cancellation of the recommendations of the sixth meeting of the Chinese Framework Agreement issued by Cabinet Resolution (24006 of 2024).
Second: Cancellation of the Council of Ministers’ decision (24059 of 2024) regarding the completion of the new Nasiriyah warehouse and model school buildings, funded by the Chinese agreement.
Third: Approving the projects approved by Cabinet Resolution (24130 of 2023), with an annual allocation of (7059) billion dinars, instead of (7137) billion dinars, signed by the committee.
The following was also voted on during the session:
1. Deletion of the project (constructing an international stadium in the center of Nineveh Governorate at a cost of (22,813,000,000 dinars), based on the technical reports issued by the advisory office, affiliated with the College of Engineering at Al-Mustansiriya University, which includes the recommendation to completely remove the structure with the foundations, as well as the recommendation of the advisory body / Advisor to the Governor for Technical Affairs, adopting the opinion of the Advisory Office of Al-Mustansiriya University, to demolish and completely remove the foundations, taking into account the amounts spent on the aforementioned project and the amounts of work completion, and transferring the amounts of the deposits to the project account after its deletion, according to the controls and instructions issued by the Ministry of Planning.
2. Considering the request to include the project to establish the Nineveh Central Stadium with a closed sports hall on the right side of Mosul in a turnkey manner, within the governorate’s projects for the year 2023 (amended Schedule E) specified in the Federal General Budget Law (13 of 2023), for a total amount of (36,200). 000,000 dinars) after completing all relevant listing requirements.
3. Nineveh Governorate bears full responsibility for the truth and accuracy of the information submitted to the Ministry of Planning.
He pointed out that "with regard to the contract concluded with the Turkish company Tarmash for the school buildings project, the Council issued a decision approving the acceptance of the letter of guarantee previously submitted to the Ministry of Industry and Minerals, for the same contract outside the electronic platform for the letter of guarantee, until the company has financial liquidity that enables it to return Letter of guarantee, within the electronic platform.
The Council also issued a decision approving the Ministry of Finance’s contract with the Scientific Consulting Office at the Ministry of Higher Education and Scientific Research/University of Baghdad/College of Science. To complete the system for modernizing public financial management systems (IFMIS), as an exception to the instructions for implementing government contracts (2 of 2014).
The statement explained, “The sale of residential plots of land starting from the property numbered (45373 to 49551 AD/21 Haidariyah) was approved for sale, amounting to (4176) plots, separated from the area of the two plots of land numbered (42062/1, and 42063/1), district (21). )
Haidariyah, to employees of the General Secretariat of the Holy Shrine of Hussein, as an exception to the public bidding procedures, and based on the provisions of the Law on the Sale and Rent of State Funds No. (21) of 2013, as amended, and replacing it with a lottery system, according to the controls of those who are not beneficiaries of the Council of Ministers’ Resolution (20 of the year 2019), taking into account Articles (4 and 15/First/A) of the aforementioned Law on the Sale and Rent of State Funds.”
Within the framework of organizing union work, the recommendation of the Ministerial Council for Human Development (24004 B) of 2024 was approved, which includes obligating the Engineers Syndicate to address the issue of registering engineering colleges and departments and accrediting them in the Engineers Syndicate.
The Council agreed to authorize the Director General of the General Tax Authority to negotiate and initial a draft agreement to avoid double taxation and prevent evasion of taxes imposed on income and capital between the Government of the Republic of Iraq and the Government of the Republic of Latvia, based on the provisions of the Constitution, and to authorize the Minister of Finance to negotiate. And the final signature on the above project.”
He continued, "The draft law on the Republic of Iraq's ratification of the air services agreement between the government of the Republic of Iraq and the government of the Republic of Azerbaijan was approved and referred to the House of Representatives, based on the provisions of the constitution."
Views 73 Added 03/19/2024 - https://economy-news.net/content.php?id=41657
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Provoking Points to Ponder on Decisions
We have resolved to endure the unendurable and suffer what is insufferable. - Emperor Hirohito
Once a decision was made, I did not worry about it afterward. - Harry S. Truman
No country can act wisely simultaneously in every part of the globe at every moment of time. - Henry Kissinger
The last, if not the greatest, of the human freedoms: to choose their own attitude in any given circumstance. - Bruno Bettelheim
He who has a choice has trouble. - Dutch proverb
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