Iraqi News Wednesday AM 5-12-21
Iraqi News Wednesday AM 5-12-21
TLM724 Administrator BondLady’s Corner
The Repercussions Of Changing The Dollar Exchange Rate ... Planning: The High Inflation Rate During April
Time: 05/12/2021 14:03:17 Read: 2,626 times {Economic: Al Furat News} The Ministry of Planning announced, on Wednesday, that the monthly inflation rate increased during the month of April, by 0.1% compared to the previous month.
The ministry’s spokesperson, Abdul Zahra al-Hindawi, said in a statement that the Euphrates News received a copy of, “The Central Bureau of Statistics continues to monitor price movement in Iraqi local markets, in all governorates, on an ongoing basis, and on the basis of this monitoring it releases its monthly qualitative report for the index number. And consumer prices, which indicates the monthly rates of inflation. "
He added, "The first digital qualitative report to monitor the changes accompanying the change in the dollar’s exchange rate, was during the month of December of last year, which showed an increase in the rate of inflation, by (3.3%), compared to the month of November, which witnessed an increase in the exchange rate."
Al-Hindawi pointed out that "the inflation rates continued to rise slightly during the past four months of this year, adding that the inflation rate rose by (0.8%) during the month of January, and in February it increased by (0.7%), and it rose during the month of March by (0.6), while the rate of increase in the inflation rate during the month of April was (0.1%), revealing that the cumulative increase in inflation rates during the past six months (from November 2020 to April 2021) amounted to (5.6%). LINK
An Independent Politician: The Rise In The Price Of The Dollar Above The Official Announced Rate .. Evidence Of The Failure Of The Central Bank To Follow Up On Its Decision
Wednesday 12, May 2021 14:33 | Political Views: 188 Baghdad / NINA / The independent politician Thaer Munir Al-Zubaidi confirmed that the dollar’s rise above the official announced rate is evidence of the central bank’s failure to follow up on its decision.
He said in a statement that the Iraqi National News Agency / NINA / received a copy of it: "The Central Bank had previously issued an official decision to set the price of selling and buying the dollar, which is supposed to follow up on this issue and not to leave it to the whims of speculators and banking companies."
Al-Zubaidi added, "What the citizen notices is the lack of commitment to the official price, whether it is in the stock exchange for buying and selling foreign currency or even at the level of exchange offices.
Failure to adhere to the official rate was considered a disregard for government decisions and a failure and a failure of the Central Bank in particular and the government agencies concerned in general to follow up on official decisions.
Al-Zubaidi stated that: The Central Bank's decision regarding the currency rate proved its failure and was unable to control the trading market and had a clear negative impact on commercial movement in general and citizens' livelihoods in particular. https://ninanews.com/Website/News/Details?Key=904143
Parliamentary services: The Council of Ministers is required to hold a special session to discuss the reality of electricity
Energy Economy News _ Baghdad The Parliamentary Services Committee stressed, on Wednesday, the need to hold a cabinet session dedicated to discussing the reality of electricity, in order to solve the current crisis and overcome all obstacles that prevent its development.
Committee member Manar Abdul Muttalib said in a press interview, "The recovery of the electricity sector depends on the coming of a national figure who sticks to this file, in order to save energy, increase processing hours, and uncover those who stand in the way of developing electricity."
Abdul Muttalib added that "the Minister of Electricity knows all the secrets in his ministry, and he should move towards overcoming all obstacles and approaching Parliament about any pressures he is exposed to, or preventing the elimination of the current crisis."
She indicated that "the prime minister is required to hold a special session to discuss the electricity situation, which is witnessing a significant decline in processing hours during the summer, in order to find out the causes of the recurring defect every year." Number of observations 157 Date of addendum 05/12/2021 https://economy-news.net/content.php?id=25061
Dollar exchange rates in local markets
Market Economy News _ Baghdad The "Economy News" will publish the exchange rates of the dollar in local markets on Wednesday (May 12, 2021). The price of the dollar against the Iraqi dinar Exchange offices prices: The sale price of the dollar is 148,750 The purchase price of the dollar is 147,750
Number of observations 126 Date of addendum 05/12/2021
https://economy-news.net/content.php?id=25063
Economists expect Iraqi oil imports to increase by 16 billion dollars without the end of the financial crisis
Time: 05/11/2021 17:32:25 Read: 3,887 times {Economic: Al Furat News} Economists expected an increase in the state's imports of crude oil sales during the fiscal year of 2021, amounting to about $ 16 billion, with the continued rise in crude prices in global markets.
The text of the statement by the Iraqi Economists Network said: "Through our follow-up of international oil prices since the beginning of this year, we have noticed a significant increase from the annual rate adopted in the Federal Budget Law for 2021, at $ 45 a barrel.
The lawmakers had expected to collect revenues from exporting crude oil at about 81 trillion dinars, based on an annual export rate of 3,250 million barrels per day and an exchange rate of 1,450 dinars to one dollar.
However, the amount of oil revenues that were mentioned in the budget law published in the Iraqi newspaper Al-Waqa'yat includes an arithmetic error, as it should be 77.4 trillion dinars, equivalent to 53.4 billion dollars (3,250 million barrels x 45 dollars x 365 days = 53.4 billion One dollar x 1450 = 77.4 trillion dinars) instead of 81 trillion dinars. As a result of this computational error, the planned deficit increased to 32.3 trillion dinars instead of 28.7 trillion dinars, as reported in the Iraqi newspaper Al-Waqi'aa.
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According to the data of the Iraqi oil export company SOMO, the actual export rate during the first four months of this year was 2.93 barrels per day from the Basra and Kirkuk fields (and without the oil exports from the Kurdistan region?). The average export price per barrel during the first four months was slightly less than $ 60, an increase of $ 15 over the rate of the estimated price fixed in the budget law.
Assuming the continuation of this level of prices until the end of the year, we expect in the basic scenario oil revenues to reach 64 billion dollars. Then an amount of 5.5 billion dollars will be added to it for the exports of the Kurdistan region agreed upon in the budget law at a rate of 250 thousand barrels per day. Thus, we expect Iraq's total oil revenues to rise to 69.5 billion dollars as a projection instead of the planned 53.4 billion dollars, an increase of about 16 billion dollars, equivalent to about 23 trillion dinars.
On this basis, the planned and corrected oil revenues will rise by us to about 100.8 trillion dinars. After adding the planned non-oil revenues by 20 trillion dinars, we will get the total budget revenues of 120.8 trillion dinars in exchange for total planned and corrected revenues instead of 101.3 trillion dinars as stated in the law, with an increase of 19.5 trillion dinars according to our projections.
In the optimistic scenario, we assume a breakthrough in the Corona crisis during the second half of this year, and at the very least in advanced industrial countries, which will lead to an increase in global demand for crude oil.
Assuming the commitment of the OPEC Plus (+) group to the current levels of production, it is possible that the average global price of crude oil will rise to approximately $ 70 per barrel, which means achieving an annual average price for Iraqi oil exports of about $ 65 during the year 2021. On this basis we expect a rise in Iraq's oil revenues amounted to about 77 billion dollars, equivalent to about 112 trillion dinars, an increase of about 35 trillion dinars over the revised plan in the 2021 budget.
At first glance, it seems to some that the amount of the increase in oil revenues in the first basic scenario will reduce the planned and corrected deficit from 32.3 trillion dinars to a planned deficit estimated at 13 trillion dinars, and in the second optimistic scenario to a planned and corrected surplus of 2.7 trillion dinars.
In this regard, we must draw attention to the fact that this type of in-depth and offensive accounts of economic professionalism does not take into account that the level of actual deficit at the end of the year will in turn be subject to a second variable, which is the difference between the planned and actual non-oil revenues achieved at the end the year.
Therefore, we appeal to government agencies and members of the House of Representatives to be careful in their statements in the media, because of the possible confusion in public opinion.
We believe that the non-oil revenues that are planned to rise from an actual 7 trillion in the year 2020 to 20 trillion dinars represent unrealistic estimates, and we expect that they will be around 12 trillion dinars this year at best because of the rampant corruption in the government administrative apparatus, which determines who Achieving this type of revenue on the one hand, and the continuous economic downturn this year due to the Corona pandemic on the other hand.
On this basis, we expect the actual deficit in the first scenario to reach 22 trillion dinars, which is more likely, which means the continued need for borrowing to ensure the financing of current spending and employee salaries.
As for the second optimistic scenario, it will result in a deficit of 9 trillion dinars. On this occasion, we would like to emphasize our previous proposals regarding the only alternative to borrowing, which is to reduce the waste of financial resources, rationalize current spending, and eliminate financial and administrative corruption.
In all cases, it is not expected that the structural financial crisis associated with the nature of the rentier state will end, and that financial sustainability will be achieved this year LINK
Oil Prices Record A New High
Wednesday 12, May 2021 09:58 | EconomicalViews: 187
Baghdad / NINA / Oil prices rose today, Wednesday, extending their evening gains after industry data showed a decline in US crude inventories, which boosted OPEC's strong demand outlook, and with the close of the largest US fuel pipeline for a sixth day.
Brent crude futures rose 9 cents, or 0.13 percent, to $ 68.63 a barrel.
While US West Texas Intermediate crude futures increased 13 cents, or 0.18 percent, to $ 65.40 a barrel.
Data from the American Petroleum Institute industry group showed that US crude oil inventories fell by 2.5 million barrels in the week ending May 7.
The withdrawal came before the pipeline in America was subjected to a cyber attack last Friday that forced the pipeline, which carries more than 2.5 million barrels per day of fuel, to close, and the operator said it hopes to restart a large part of the network by the end of the week. / End 8
https://ninanews.com/Website/News/Details?key=904075
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Al Rasheed Bank Announces The Opening Of A Number Of Its Branches During The Eid
Time: 05/12/2021 12:33:53 Read: 1,976 times {Economical: Al Furat News} The Rasheed Bank decided, on Wednesday, to open a number of its branches during the days of Eid.
A statement by the media office of the bank, a copy of which was received by Al-Furat News, stated that "work will continue during the days of Eid to pay the dues and salaries of holders of the (Nakheel) card."
The statement mentioned that the branches are:
1- Baghdad (Al-Bayaa / Al-Yarmouk / Revolution of the Twentieth / Al-Imam Al-A'zam)
2- Babylon (Hilla) branch 3- Karbala Branch (Al-Hussein) 4- Najaf Branch (Al-Rawdah)
5- Diwaniyah (Al Furat) 6- Muthanna (Samawah) 7- Wasit (Wasit) 8- Maysan (Dignity) 9- Tamim (1 June)
10- Dhi Qar (Arado) 11- Basra (Qurna / Zubair / Thawra Street)
12- Anbar (Haditha / Hit / Amiriyat Al Fallujah)) 13- Saladin (Shishin / Samarra)
14- Diyala (Ashnona / Khanaqin) 15- Nineveh (Al Jazeera) LINK
Oil Prices Record A New High
Wednesday 12, May 2021 09:58 | Economical Views: 187 Baghdad / NINA / Oil prices rose today, Wednesday, extending their evening gains after industry data showed a decline in US crude inventories, which boosted OPEC's strong demand outlook, and with the close of the largest US fuel pipeline for a sixth day. Brent crude futures rose 9 cents, or 0.13 percent, to $ 68.63 a barrel.
While US West Texas Intermediate crude futures increased 13 cents, or 0.18 percent, to $ 65.40 a barrel.
Data from the American Petroleum Institute industry group showed that US crude oil inventories fell by 2.5 million barrels in the week ending May 7.
The withdrawal came before the pipeline in America was subjected to a cyber attack last Friday that forced the pipeline, which carries more than 2.5 million barrels per day of fuel, to close, and the operator said it hopes to restart a large part of the network by the end of the week. / End 8
https://ninanews.com/Website/News/Details?key=904075
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