Iraqi News Monday AM 1-3-22
Iraqi News Monday AM 1-3-22
TLM724 Administrator BondLady’s Corner
A Delegation From The Sadrist Movement Meets The Democratic Party In Erbil To Discuss Forming A Government
Political | 04:23 - 03/01/2022 Baghdad - Mawazine News The delegation of the Sadrist movement, headed by Hussein Al-Adari, arrived in Erbil Governorate.
An informed source said in an interview with "Mawazine News" that "the delegation met upon its arrival with the delegation of the Kurdistan Democratic Party headed by Hoshyar Zebari."
He added, "The meeting will discuss the largest bloc and the formation of the next government." Ended 29 https://www.mawazin.net/Details.aspx?jimare=180498
The Most Prominent Economic Events For The Year 2021
Monday 03 January 2022 113 Baghdad: morning During the past year, Iraq witnessed a series of economic events that specialists in economic affairs demand to deal with them seriously to address the great challenges facing Iraq and the future of its people, as it will not be useful to talk about ambitions and plans regarding them only, but it is necessary to take actual sober steps to diversify the economy and improve its infrastructure, In order to avoid losing opportunities and time, it becomes clear how serious the trends are to improve the fate of the country.
The economic affairs specialist, Amer Al-Jawahiri, said: “It may seem at first glance that there is an improvement in the country’s economic reality through an increase in government revenues as a result of high oil prices and a decrease in the price of the dinar against the dollar, which helped address part of the deficit gap in the planning budget for 2021, but the reality of The case indicates total dependence on the effects of external factors and what is happening in the global market and raising inflation, which puts more pressure on the Iraqi consumer.”
Al-Jawahiri added to “Al-Sabah” that “there are indications of increased interest in the economic issue, but they were limited to serious executive steps, which reduced expectations of benefiting from them and their impact. Therefore, this indicates, and we say it boldly, to the lack of seriousness in managing the country’s economic file and the lack of the will to develop and development.
Al-Jawahiri pointed out that “there are some visions that need to be taken into account, which are represented by the visit of His Holiness the Pope and the opportunities for their investment to attract groups of foreign tourists to develop internal tourism, as well as the trend towards strategic projects that invest local resources, and are steps towards diversifying the economy such as the Nibras Petrochemical Project, which We did not see any serious implementation steps to reduce the time gap.”
He continued, "Despite the signing of the first phase of the Faw port project, which is very small, but it is necessary to take into account the international competition in the issue of ports and its connection with the Belt and Road projects that are in harmony with related production and service projects."
He stressed the importance of "setting a comprehensive plan for the implementation of the FAO economic zone, which is necessary to complete it in order to ensure the desired economic benefit from natural resources and spatial advantage in harmony with international partnerships and investments."
Al-Jawahiri pointed out that “the reality of the state of international economic relations requires reaching partnership agreements with countries and their companies, taking into account the available natural resources, the advantage of location and Iraq’s location in international transportation routes, which dictates the necessity of having a vision, negotiating capabilities and the spirit of competitiveness necessary for the country.”
He concluded his speech by touching on the subject of signing an agreement of principles with a Chinese company to implement an oil refinery and a petrochemical project in the Faw region. However, the challenge is when to start the executive steps to achieve benefit and win the international race to enter the markets and develop the local economy that provides opportunities the work". LINK
The Iraqi Central Bank Issues Controls For Financing Electricity Generation Systems From Renewable Energy
Political | 05:17 - 03/01/2022 Baghdad - Mawazine News The Central Bank of Iraq issued, on Monday, controls for financing electricity generation systems from renewable energy.
The Governor of the Central Bank of Iraq, Mustafa Ghaleb, signed Al-Amam No. 1 on 1/3/2022 regarding the controls that will allow citizens and various institutions to purchase electricity systems generated from renewable energy within the resources of his initiative through banks.
This initiative comes in line with the state’s directions to abide by the decisions of the Paris Climate Conference, as the Central Bank launched its initiative to shift to clean energy within this framework. Representatives of the private sector from experts and investors. https://www.mawazin.net/Details.aspx?jimare=180503
The stability of Iraqi oil exports and the decline in its imports during the past month
Energy Economy News _ Baghdad Iraqi crude oil exports stabilized for the month of last December, despite the increase in the production share of OPEC +, while its financial imports declined.
The data of the Oil Marketing Company "SOMO" showed that Iraqi exports last December, with the exception of flows from the Kurdistan Region, rose slightly by 0.12 percent, reaching 3.277 million barrels per day, compared to 3.273 million barrels per day in November.
Iraq's production quota under the supply agreement between OPEC and its allies increased to 4.237 million barrels per day in December from 4.193 million barrels per day in November as members of the 23-member alliance continued to ease production restrictions by 400,000 barrels per day per month.
In January, Iraq's share will be 4.281 million barrels per day.
Exports from central and southern Iraq fell 0.47 percent to 3.180 million barrels per day, while Kirkuk crude exports through the Turkish port of Ceyhan rose 27.94 percent to 87 thousand barrels per day from 68 thousand barrels in November.
Iraq's revenues from oil sales in December amounted to $7.037 billion, at an average price of more than $72 a barrel, compared to $7.610 billion it obtained in November through selling its oil at an average price of $77,510 a barrel.
The OPEC + alliance is likely to agree to an increase of 400,000 barrels per day in production quotas for the month of February when ministers meet again on January 4, according to what a number of analysts and energy experts see. Views 141 Date Added 01/03/2022 https://economy-news.net/content.php?id=27050
Diversifying The Production Base And Supporting The Private Sector
Monday 03 January 2022 160 Baghdad: Haider Falih Al-Rubaie
Professor of Economics, at the College of Business Economics at Al-Nahrain University, Dr. Sattar Al-Bayati, warned of the dangers of maintaining the “oil rent” policy in supporting the country’s financial budgets, stressing that this policy is closely related to the price fluctuations of “black gold”, which can impede plans and projects. development in the event of a drop in global oil prices, calling at the same time, calling for the necessity of adopting an economic policy that relies primarily on “disengaging the link between oil rents and the national economy,” as well as working actively to “diversify the production base.”
Iraq relies almost entirely on oil revenues to support financial budgets and investment projects and to cover most service needs, which economists constantly warn of, who see the “rentier economy” as a great danger that affected the overall economic activities, especially since oil contributes about (60%) in the composition of the GDP, while the contribution of the agricultural and industrial sectors did not exceed (5%) and (2%), respectively, in the composition of the GDP.
Economic Challenges
Al-Bayati said, during his speech to Al-Sabah, that “in light of the rentier economy, governments do not care much about the vitality of economic activity, activating the role of the private sector, creating a state of sustainable growth or heading towards diversifying the sources of public revenue, because governments in this case rely heavily on Oil,” indicating that as a result, “the Iraqi economy is constantly facing a major economic challenge represented by fluctuations in oil prices (up and down) because the oil market is a market of buyers (consumers) and not a market of sellers (producers), as prices and even the quantities produced and exported of oil are determined by them. The global oil market.
Al-Bayati recalled what Iraq suffered during 2014 and 2020, as a result of the sharp decline in oil prices and the decline in financial revenues, which caused the creation of a state of imbalance in economic policy, which in turn is reflected in economic and development planning and decisions, noting that the years 2019-2020,
They witnessed a rise in Iraq’s public debt due to the drop in oil prices and the spread of the Corona pandemic, that is, the double shock to the Iraqi economy, which prompted it to resort to external and internal debt, and that this escalation of debt growth, in turn, leads to a chronic and accumulated deficit in the state’s general budget.
Economy Crises
The professor of economics believes that Iraq, according to “total dependence on rentier income,” has limited options, and it is a crisis economy that maintains a state of turmoil and the deterioration of economic and social indicators, especially since the Iraqi economy witnessed a significant slowdown in 2020, and a decrease in gross domestic product. By 4.7%, which are the imbalances resulting from the “rentier policy” that frighteningly neglected other productive aspects of the national economy, especially industry and agriculture, which are able to achieve a large participation in the national economy, represented by increasing the domestic product, attracting labor and expanding markets. local needs of goods and materials that are imported at the time Present.
Solutions And Suggestions
Dr. Al-Bayati pointed out that this unfortunate economic situation puts us before two alternatives. The first is “the inevitable disengagement between oil rents and the national economy for the purpose of ending the government’s dominance over the economy, and moving towards a market economy by directly supporting the private sector as a first step, to ensure Seriousness and taking into account the privacy of the Iraqi economy.
The professor of economics pointed out that the second alternative solution, includes the need to “diversify the production base of the economy, to reduce its dependence on the oil sector and its dependence on the foreign oil market, because it is characterized by fluctuations in crude oil prices,” noting that “both alternatives complement each other, especially if we take Taking into account that the process of diversifying the production base takes its legitimacy and objectively from the diversity that characterizes Iraq in terms of water sources, human and economic resources,
stressing that the economic history of Iraq shows that agriculture in it was prosperous and diversified, and could meet local demand, with a surplus for export after an increase The commodity supply, which calls for adopting rational economic policies that put Iraq’s interest first, to solve the problems it constantly suffers from, such as unemployment and poverty, lack of public revenues, and budget deficit, and then increase the external and internal indebtedness.
Facing Crises
Al-Bayati also indicated that “in light of the macroeconomic policy that takes into account the inevitability of economic diversification and abandonment of total dependence on oil rents, it is possible to confront all internal and external economic crises,” stipulating that “this policy takes into account the investment of all resources.” Finance from its various sources, such as border crossings, all kinds of tourism, taxes and customs duties, as it is not possible to achieve sustainable development without sustainable financing that depends on its sources. National.” LINK
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