Monday AM Iraq Economic News Highlights 8-22-22

News

Aug 22

A Government Advisor Expects An Increase In The Surplus Due To High Oil Prices

Posted On2022-08-21 By Sotaliraq Baghdad/ Saif Abdullah

Despite Iraq's dependence largely on oil exports, this file remained dependent on the developments of the global crisis, which caused it to decline significantly and to re-rise even more. Experts in the financial and oil affairs revealed that large financial revenues were achieved during this year due to the rise in oil prices, while they issued calls to take advantage of the financial abundance.

Large Financial Surpluses

In this regard, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that the increase in export capacity by about 30 thousand barrels per day, according to the current international oil prices, will generate an additional financial revenue from today until the end of the year, which will amount to approximately 450 million dollars.

Saleh said in an interview with (Al-Mada), that "in all cases, the increase in oil exports will constitute revenue from the country's public financial revenues and will be added to the expected surpluses at the end of the fiscal year 2022, which are estimated at no less than 16-20 billion dollars, which are currently accumulating in the accounts of the Ministry of Foreign Affairs. Reserve finances in foreign currency, which the Central Bank of Iraq, as the financial agent of the state or the state bank, manages in accordance with the best international banking applications within Iraq’s foreign reserves, in a safe and accurate manner.

Saleh added, “These financial surpluses will form one way or another the nucleus of the Iraqi sovereign wealth fund, to which the provisions of Article 19 of the current Federal Financial Management Law No. or government income.

Iraq is an alternative to Russian oil

For his part, the oil expert, Hamza Ramadan, explained that the reason for increasing Iraq's share of the oil exported by OPEC is to compensate the Russian oil market.

Ramadan said in an interview with Al-Mada that "when US President Joe Biden came to Saudi Arabia, he gave a decision that large quantities should be pumped, because Europe will live in a very difficult cold state."

Ramadan added, “This increase is supposed to be in the interest of the Iraqi citizen, but Iraq is a consumer country, and in addition to Turkey and Iran, there are other beneficiaries who have entered the line of benefiting from Iraqi oil, namely Egypt and Jordan, and Syria and Lebanon will soon enter as well.”

Debt repayment calls

In addition, economic expert Diaa Mohsen believes that in the presence of additional revenues outside the budget estimates, the government must pay part of the internal and external debts, so that its position remains safe.

Mohsen said in an interview with (Al-Mada), that "the increase in Iraq's export share of oil came without Iraq feeling it, that is, without efforts by Iraqi officials, but as long as the country is without a budget and the government is a caretaker government, these revenues cannot be disposed of. The big one.”

A statement by the Ministry of Oil had announced earlier, that "the exports and revenues achieved for the month of last July, according to the preliminary statistics issued by the Iraqi Oil Marketing Company" SOMO, where the total amount of exports of crude oil amounted to 102 million and 385 thousand and 49 barrels, with revenues of 10,608. billions of dollars.”

The statement added, "The total quantities of crude oil exported for the month of July from oil fields in central and southern Iraq amounted to 99 million and 965 thousand and 94 barrels, while from Kirkuk fields through Ceyhan port, the exported quantities amounted to two million and 344 thousand and 536 barrels."

He pointed out that "the average daily quantities amounted to 3 million and 303 thousand barrels per day, and that the average price of one barrel amounted to more than 103.60 dollars."

And the statement went on, that "the ministry, through its belief in informing the people about the export operations and the revenues generated from it, took this monthly measure." LINK

L-Kazemi’s Advisor Determines The Chronological Age Of The Food Security Law

Baghdad - Amna Al Salami

Today, Saturday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, determined the time-span of the emergency support law for food security and development, while ruling out the repetition of the law after its entry into force

Saleh said, "The law on emergency support for food security and development concerns the fiscal year 2022 exclusively, and by the end of this year on December 31, 2022, the law will expire completely ."

He added that "the second case in which the law ends is the issuance of the Federal Budget Law for 2022 in these months, and this law expires and becomes an integral part of the Federal General Budget Law in the event of its expansion in 2022, and this matter depends on the status of Parliament and its ability to legislate ."

He pointed out that "the repetition of this law for another year depends on the presence of the legislative authority and its ability to re-pass laws and form a government," ruling out "the repetition of the Emergency Support Law for Food Security and Development after its expiry date ." LINK

Iraq Is The Third Largest Oil Exporter To The Chinese Government Last July

2022-08-21 05:11 Shafaq News/ Data from the General Administration of Chinese Customs showed that Iraq was the third largest exporter of oil to government refineries during the month of July of 2022.

The administration said in its schedule seen by Shafak News Agency; "Iraq exported 3.63 million tons of oil to Chinese government refineries during the month of July of this year, equivalent to (26.499 million barrels), equivalent to (854 thousand barrels per day), down by 22.10% over the same period last year."

She added that China's oil imports from Iraq during 7 months and from January to July amounted to 30.375 million tons, which is equivalent to (221.737 million barrels), down by 1.30% from the same period last year.

And she added, "Russia ranked first as the largest supplier of crude to China in July of 2022 after it displaced Saudi Arabia for the third month in a row, bringing its exports to China at 7.145 million tons, equivalent to 52.158 million barrels, and then Saudi Arabia came second, with its exports to China reaching 6.563 million tons, or equivalent to 47.909 million barrels.

According to the table, "Angola came fourth, with exports of 2.125, equivalent to 15.937 million barrels, and Brazil came fifth, with exports amounting to 1.026 million tons, equivalent to 7.489 million barrels."

And she pointed out, "China's imports of crude oil in July declined by 9.5% from the previous year, as daily trading volumes recorded the second lowest level in four years, as refineries reduced inventories and domestic demand for fuel recovered at a slower pace than expected." LINK

The Iraqi Government Decides To Increase The Capital Of The North Oil And Automobile Companies

Shafaq News/ The Iraqi Council of Ministers decided on Sunday to increase the capital of the North Oil Company and the General Company for Automotive Trading, according to what was announced by Hassan Nazim, Minister of Culture and spokesman for the Council, Hassan Nazim.

Nazim said in a press conference after the cabinet session today, that the government is proceeding with the draft job number for state employees.

Earlier today, the Council of Ministers held its regular session headed by the Prime Minister of the Federal Government, Mustafa Al-Kazemi. LINK

Al-Kazemi’s Advisor Clarifies The Fate Of Government Revenues, Taxes, And Fees In The Absence Of A Budget

political| 03:41 - 08/21/2022 Baghdad - Mawazine News, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained, today, Sunday, the fate of government revenues, taxes and fees in the absence of the federal general budget.

Saleh said, "In the absence of the federal general budget, the government revenue side, both oil and non-oil, remains effective and continues to collect automatically without interruption, regardless of the legislative circumstances related to the general budget, based on the provisions and applications of the Federal Financial Management Law No. 6 of 2019 as amended."

He added, "The collection of taxes imposed on taxpayers, both direct and indirect, continues, as well as government fees and wages collected for the benefit of the state, to work automatically without interruption, and their revenues are collected from taxpayers in accordance with the provisions, regulations and legal systems legislated in the Republic of Iraq."

And he continued, "Its function is to feed public expenditures, whether in accordance with the legislation of a law for the public budget or what is available from the applications provided by the financial management law in force in how to manage public spending." https://www.mawazin.net/Details.aspx?jimare=203051

Oil Revenues Jump Iraq's Foreign Exchange Reserves By 80 Billion Dollars

Arab economy August 21, 2022 The Deputy Governor of the Central Bank of Iraq, Ammar Khalaf, said today, Sunday, that the country's foreign exchange reserves exceeded 80 billion dollars, and expected to reach 90 billion by the end of the year.

Khalaf added, to the official Iraqi News Agency, that the bank's gold reserves increased by 30 tons to record more than 131 tons in total.

And the Iraqi Prime Minister, Mustafa Al-Kazemi, revealed at the end of last July, that during the two years of the government’s life, the Central Bank’s reserves were less than 50 billion dollars, and at the end of July it reached 76 billion dollars, and it will reach 90 billion dollars at the end of this year.

Arab economy

Iraq's poor are promised a new strategy to reduce deprivation

Al-Kazemi explained in a press conference, that the Iraqi government has no intention of moving towards changing the dinar exchange rate.

Member of the Iraqi Parliament’s Finance Committee, Jamal Cougar, said in previous statements to Al-Araby Al-Jadeed that the oil price jumps saved the Iraqi economy from collapse, and when oil prices fell and the price of a barrel reached about $20, the government turned to taking large amounts of cash reserves, It relied on internal and external borrowing, as well as changing the exchange rate and providing an austerity budget.

He added that the rise taking place today enabled the Iraqi economy to restore its monetary activity, raise reserve rates, and pay large sums of debts owed internally and externally.

He pointed out that the government should benefit from the rise in oil prices, and allocate the surplus to support the investment side, because the state is still spending 75 percent of its budget for the operational side, expenses and salaries, and all these expenses have no financial return.

(Reuters, The New Arab) LINK

Oil Prices End Three Days Of Gains

Economie 2022-08-22 | 04:34 561 views Alsumaria News – Economy Oil prices fell today, Monday, ending 3 days of gains, amid fears that large increases in US interest rates will lead to a global economic slowdown and undermine demand for fuel.

Brent crude futures for October delivery fell $1.17, or 1.2 percent, to $95.55 a barrel by 0054 GMT, with fears of slowing demand in China due to the energy crisis in some areas, which also affected prices.

US West Texas Intermediate crude futures for September delivery, which are due to expire on Monday, fell $1.12, or 1.2 percent, to $89.65 a barrel. And October contracts recorded 89.29 dollars, down 1.15 dollars, or 1.3 percent.

Both Brent and West Texas Intermediate rose for a third day in a row on Friday, but fell by about 1.5 percent during the week due to the strengthening of the dollar and concerns about demand.

03:22 | 2022-07-18 02:22 | 2022-04-25

The general manager of research at the company

Nissan Securities Hiroyuki Kikukawa, said, “Investors are concerned that the possibility of a significant Fed rate hike could cause an economic slowdown and drain fuel demand.

”ChinaIt is also a source of concern because it may affect economic activity.”

State media and an electricity company reported that southwestern Sichuan ProvinceChinaIt began reducing electricity supply to homes, offices and shopping malls last week due to the severe energy crisis caused by intense heat waves and droughts.

The dollar, which is hovering around a five-week high, is weighing on crude oil prices as it makes oil more expensive for buyers in other currencies. LINK

Sunday Evening Iraq Economic News Highlights 8-21-22