Iraq News Early Wednesday AM 3-23-22
Iraq News Early Wednesday AM 3-23-22
Where Is The Iraqi People's Budget For 2022
Samir Al-Nusairi* We are now in the middle of the third month of 2022 and most countries of the world have issued their general budget for the aforementioned year, with the exception of Iraq, which we, the economic elites, did not know where the general budget is. Was it prepared? Is it still in the corridors of the ministries of finance and planning? In preparing them on the items as usual, or did they adopt economic programs and plans?
In fact, no one knows and we only know that Iraq’s budget for several years is not approved and issued until several months after the budget year because of the problems and political quarrels between the political blocs and those who forgot that the budget is the budget of the Iraqi people and the budget for the implementation of investment projects and projects of reconstruction, construction and economic reform.
How long will the patient people suffer this injustice and the encroachment on their rights in this repeated way every year?
The current and expected financial situation for Iraq until the end of the year is very good, as oil prices will not be less than $100 per barrel. It fulfills its obligations towards internal and external debts, establishes its sovereign fund, and overcomes a real budget deficit for the first time in years.
Therefore, in the face of this reality requires taking quick measures by approving the budget by the new government and Parliament, with a date not exceeding the first half of this year, and to include the following priorities: ‐
1‐ Re Revenue structure towards activating and stimulating the productive sectors, especially agriculture, industry, housing, services and tourism, and increasing the proportion of the contribution of income sources other than oil to the budget revenues.
2 - Increasing the investment allocations in the budget, including at least the completion of projects whose implementation rate exceeded 50%.
3- Giving a role to the private sector in investing in reconstruction and infrastructure projects in Baghdad and the governorates
4- Allocating an amount to establish the Sovereign Fund (the Generation Fund) from the savings achieved from the increase in oil prices, and it is managed by a specialized board of directors, and its funds are invested under the supervision of the Central Bank and the supervision of the Financial Supervision Bureau.
5- Allocating a special amount to the Ministry of Commerce to secure strategic storage for foodstuffs covered by the ration card for a period of no less than 3 months.
Increasing the ration items to reach 10 items. Allocating funds to support the prices of flour, rice, sugar and baby milk.
6- Allocating an amount to activate and support the agricultural, industrial and tourism sectors and to support the local product.
7- Allocating an amount to the Ministry of Labor to cover the increase in the number of people covered by social care, to cover the increase in their salaries at a rate equivalent to the reduction in the Iraqi dinar exchange rate, to cover the financing of small and medium projects, and to include the displaced who cannot be returned to their homes with social care.
* Economic and banking consultant https://economy-news.net/content.php?id=27338
A Storm Hits The Oil Market, And Expectations Are That The Price Of A Barrel Will Rise To $150
Shafaq News/ Economic specialists expected oil prices to rise to $150 a barrel due to a storm that hit one of the Russian oil ports.
The Russian "RT" station reported that the severe storm that hit the oil pumping station in the Novorossiysk port on the Black Sea this week damaged the station of the "Caspian Sea Pipeline" consortium, which affected the black gold supplies.
According to reports, the accident occurred on March 20, and caused two-thirds of the station's capacity to be disrupted for at least a month.
Yesterday, Tuesday, Russian Deputy Energy Minister Pavel Sorokin warned that the suspension of the offshore station would have serious repercussions on oil supplies and reduce them by about one million barrels per day.
He pointed out that the maintenance work is likely to take a month, pointing out that the accident will affect oil exports from Russia and Kazakhstan through the Caspian Sea Pipeline.
Regarding the repercussions of the incident on global oil markets, Igor Yushkov, a senior analyst at the National Energy Security Fund and an expert at the Russian Government's Financial University, believes that this may push the price of oil to a sharp rise.
He pointed out that the incident came at a time when the global oil market recovered from a shortage of supply, as demand exceeds supply, so it may push the price to 140-150 dollars per barrel.
Earlier, the "Caspian Sea Pipeline" consortium explained that the storm had damaged the pipeline's loading equipment. The Caspian Sea pipeline is one of the largest oil pipelines in the world and transports oil from Kazakhstan and Russia to world markets. LINK
The Decline In Global Oil Prices Upon Settlement.. Basra Crude Records A Jump
March 23, 2022 Ultra Iraq - Editorial Team
Oil prices recorded a decline at the close of trading on Tuesday, March 22, 2022, with the exclusion of the European Union countries' agreement to join the United States in a Russian oil embargo in response to its invasion of Ukraine. Iraqi oil prices recorded a rise of about 6%, or the equivalent of nearly $6
EU foreign ministers are divided over the ban, with some countries, including Germany, saying the bloc relies too heavily on Russian fossil fuels to withstand such a move.
Thus, the price of Brent crude fell 14 cents, or 0.2 percent, to settle at 115.48 dollars a barrel, while it is now trading at less than that. Conversely, US West Texas Intermediate crude closed 36 cents, or 0.3%, down at $111.76. And both contracts had ended the previous session's trading, up by more than 7%, after news of a possible European ban. Iraqi oil prices also recorded a rise of about 6%, or the equivalent of nearly $6.
The price of Basra Heavy crude, according to the latest update seen by "Ultra Iraq," reached about $109 per barrel. And oil prices were boosted by supply threats as Yemen's Houthi movement attacked Saudi energy and water desalination facilities over the weekend. Saudi Arabia said two days ago that it would not be held responsible for any shortage of global supplies after the Houthi attacks. LINK
OPEC Basket Records Above $114 A Barrel
Shafaq News/ The prices of the OPEC oil basket recorded, on Wednesday, more than 114 dollars per barrel.
The organization stated in a report seen by Shafak News Agency, that "the price of the OPEC basket of thirteen barrels of crude recorded 114.60 dollars per barrel, as the price rose from the previous day by 79 cents, after recording 113.81 dollars."
Global oil prices rose significantly as a result of the war in Ukraine and the discussions currently taking place in Europe about the possibility of imposing an embargo on Russia, which coincided with the scarcity of supply and high demand.
The OPEC reference basket consists of the following: Sahara Mix - Algeria, Girasole - Angola, Djino - Congo, Zafiro - Equatorial Guinea, Rabi' Light - Gabon, Iran Heavy - Islamic Republic of Iran, Basra Al Khafif - Iraq, Kuwait Export - Kuwait, Es Sidr - Libya, Pune Light - Nigeria, Arab Light - Saudi Arabia, Murban - United Arab Emirates, Miri - Venezuela. LINK
Oil Prices Continue To Rise After US Inventories Drop
Economy News _ Baghdad Oil prices turned higher on Wednesday, after industrial data showed US crude stocks fell last week, underscoring the extent of tight global supplies as economic sanctions imposed on Moscow hit Russian production.
Brent crude futures rose $1.77, or 1.53 percent, to $117.25 a barrel at 04:24 GMT.
US West Texas Intermediate crude futures rose 30 cents, or 0.41 percent, to $111.76 a barrel.
The latest data released by the American Petroleum Institute industry group showed that crude stocks fell by 4.3 million barrels for the week ending March 18.
While prices fell on Tuesday as the European Union seemed unlikely to agree to a Russian oil embargo, the market remains on edge over the prospect of further sanctions against Russia when US President Joe Biden meets European leaders on Thursday to discuss Russia's invasion of Ukraine. Which Moscow calls a "special operation". https://economy-news.net/content.php?id=27335
A Slight Increase In The Exchange Rate Of The Dollar In Baghdad
Shafaq News/ The exchange rates of the US dollar rose slightly against the Iraqi dinar, on Wednesday, on the main stock exchange in the capital, Baghdad.
Shafaq News Agency correspondent said that the Al-Kifah and Al-Harithiya Central Stock Exchange in Baghdad recorded this morning 147,250 Iraqi dinars, compared to 100 US dollars.
While the dollar exchange rates for yesterday, Tuesday, were 147,200 Iraqi dinars, compared to 100 US dollars.
Our correspondent indicated that buying and selling prices have stabilized in banking shops in the local markets in Baghdad, where the selling price amounted to 147,750 Iraqi dinars per 100 US dollars, while the purchase prices amounted to 146750 Iraqi dinars per 100 US dollars.
In Erbil, the capital of the Kurdistan Region, the dollar exchange does not trade on public holidays.
However, some exchange shops that opened their doors today traded the selling price of 147,500 dinars per 100 US dollars, and the purchase price amounted to 147,200 dinars per 100 US dollars. LINK
Debt Before 1990.. The Lebanese Private Sector Demands About One Billion Dollars From Iraq
March 23, 2022 Ultra Iraq - Editorial Team
The head of the Iraqi-Lebanese Businessmen Council, Abdul-Wadood Al-Nusoli, called on the Iraqi government to pay the debts of Lebanese businessmen, which amount to about one billion dollars.
He suggested that you pay off the debts of the Lebanese from exporting (fuel oil), (diesel oil) or Iraqi crude oil.
Al-Nasouli told the official newspaper and followed by "Ultra Iraq" that "these debts are contracts for projects and credits with public companies and Iraqi state ministries before 1990 and after 2003," stressing that "these debts are legitimate and acquired rights in accordance with regulations and laws."
He pointed out that "the Iraqi authorities are still taking a position on the Lebanese businessmen by not paying the debts, which amounted to about 950 million dollars, according to the files in the Chamber of Commerce and Industry in Beirut and Mount Lebanon, and evidenced in the minutes of the Lebanese-Iraqi Joint Committee, whose meetings are supposed to be held annually in One of the two countries headed by the Lebanese Minister of Economy and the Iraqi Minister of Trade.
Al-Nsouli touched on the Paris Club Agreement and said that it "is specific to the debts between countries and should not apply to the private sector, so there should be an exception to this matter regarding the Lebanese debts on Iraq."
He explained, "The opinion of Iraqi lawyers on this matter is that there can be no exception to the (Paris Club) agreement," stressing that "Iraq had previously agreed with Egypt to grant (yellow remittances) for Egyptian workers, and there could be the same agreement for Egyptian workers. For Lebanon, especially as it is money that belongs to the private sector.”
The head of the Lebanese-Iraqi Businessmen Council suggested that "the debts of the Lebanese should be paid from the export of (fuel oil), (diesel oil) or Iraqi crude oil, according to an agreement concluded between the two sides during the next stage." LINK
Gold Falls On Calls For A Fed Rate Hike
Economy News _ Baghdad Gold prices fell on Wednesday, as calls from US Federal Reserve officials to raise interest rates further to combat inflation weighed on market sentiment.
Spot gold was little changed at $1,922.47 an ounce by 05:54 GMT. And US gold futures fell 0.02 percent to $ 1921.40.
The market is placing a 70% probability that the Federal Reserve will raise the federal funds rate by 50 basis points in May.
US 10-year Treasury yields have jumped to new highs since May 2019.
Gold is sensitive to interest rates and higher yields in the US, which increases the opportunity cost of holding non-yielding bullion.
In other metals, spot silver prices rose 0.3 percent to $24.83 an ounce, platinum fell 0.2 percent to $1020.88, and palladium increased 3.2 percent to $2565.02.
https://economy-news.net/content.php?id=27336