Monday AM Iraq Economy News Highlights 6-27-22
Monday AM Iraq Economy News Highlights 6-27-22
Parliamentary Finance denies the possibility of restoring the dollar exchange rate: it confuses the market and investment projects
Shafaq News/ On Sunday, the Parliamentary Finance Committee denied what was recently reported about Parliament's efforts to restore the exchange rate of the dollar to its previous level, 1200 Iraqi dinars for every US dollar.
Committee member Jamal Cougar told Shafaq News Agency, "It is very difficult to restore the dollar exchange rate to its previous state, and this matter is not one of the tasks of the House of Representatives, and it is not true according to a number of reasons, including that changing the exchange rate is one of the exclusive powers of the Central Bank of Iraq." and to the Ministry of Finance.
He added, "The economic situation is not as some are talking about, that is, despite the financial surplus achieved from the rise in oil prices, there is a debt owed by Iraq in favor of foreign and internal banks of no less than 100 trillion dinars, in addition to some hateful debts as a result of the Gulf War."
He pointed out that "the rise in oil prices is not stable, but rather came as a result of the war crisis between Russia and Ukraine, meaning when the war stops and things return to their normal state, oil prices will drop."
Cougar continued, "As a government and parliament, we failed to limit the excessive increase in reducing the operating budget, meaning that most of the state's resources go to the operational, and therefore no matter how much our financial resources increase, they are not enough to fill the operating budget and allocate a good part to the investment budget, and if we change the dollar exchange rate, this means Adding 23% to the state budget as a difference in the exchange rate, will also create an unnatural state of confusion in the market.
And he added, "Changing the exchange rate will generate compensatory claims by the owners of some investment projects contracted for the benefit of the state, meaning that the affected investor will demand compensation, and therefore what some are promoting about the possibility of the House of Representatives issuing decisions that restore the dollar exchange rate are nothing but auctions and titillation for the feelings of the Iraqi street."
Regarding the Emergency Support Law for Food Security and Development, Cougar explained, "The Food Security Law, in accordance with the article included in it, which requires the implementation of the law on the same day it is voted on, at a rate of 50% of the total amounts allocated to it, and therefore it has entered into force and according to the exchange sections that included it."
Cougar ruled out passing the country's general budget law without forming a government, and that the latter is still subject to the consensus of the political forces on its formation, because the withdrawal of the Sadrist bloc from the political process confused the matter and therefore it is difficult to predict how the mechanism of forming the next government will be.
Some members of the House of Representatives had promoted in statements about the possibility of returning the dollar exchange rate to what it was before.
It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign exchange rate (the US dollar) to be 145,000 dinars for every $100, according to the state’s general budget for the year 2021 approved by the House of Representatives.
As a result, according to specialists, the annual inflation in Iraq has risen significantly, so that the prices of all materials and commodities in the Iraqi market have risen significantly, which has sparked a wave of strong resentment among the popular circles, as well as the objections of some interested in economic affairs. LINK
Parliamentary Finance Denies The Trend To Reduce The Exchange Rate
Posted On2022-06-27 By Sotaliraq Yesterday, Sunday, the Parliamentary Finance Committee denied the existence of a tendency to return the dollar exchange rate to its previous position, stressing that the current conditions do not allow such a step.
Committee member Jamal Cougar said, "Changing the exchange rate by increasing it or returning it to what it was in the past is outside the jurisdiction of the House of Representatives."
Cougar added, "The process belongs to the Ministry of Finance and the Central Bank, as they are responsible for monetary and fiscal policies."
He pointed out, "The economic situation in Iraq does not allow the dollar to return to its previous price," noting that "oil revenues have increased, but in return there are debts owed by Iraq of no less than 100 trillion dinars, both internally and externally."
Cougar called, "not to rely too much on the current rise in oil prices and plan on it," warning that "this rise was caused by the war between Russia and Ukraine, and with the end of this crisis, oil may return to its previous state."
Cougar finds, "Any change in the exchange rate will lead to economic problems. There are investors who have contracted according to the current price and by reducing it, they will demand compensation."
For his part, a member of the Wisdom Movement, Fadi Al-Shammari, said in a statement received by Al-Mada that "talking about changing the exchange rate is unrealistic and a media bid to lure people's emotions at the expense of the truth." LINK
US Oil Company Withdraws From Kurdistan
Economie| 11:57 - 06/27/2022 Follow-up - Mawazine News, the American company Schlumberger Oil Field Services announced, on Monday, its withdrawal from the Kurdistan region in compliance with the decision of the Federal Court.
The official news agency quoted "responsible sources" as saying that "the American company Schlumberger sent a letter with an official document to the Iraqi Oil Ministry in its commitment to Federal Court Decision No. 59, which includes not dealing with the Kurdistan region regarding the oil file."
Earlier, the American company "Baker Hughes", the global giant in the field of oil field services, announced its withdrawal from the Kurdistan region in compliance with the decision of the Federal Court. Ended 29/N33 https://www.mawazin.net/Details.aspx?jimare=197770
Oil Prices Continue Their Gains, And Brent Records More Than $113 A Barrel
Economie| 09:13 - 27/06/2022 Follow-up - Mawazine News : Oil prices continued their gains today, Monday, as investors awaited any moves against Russian oil and gas exports that might be taken during the G7 leaders meeting in Germany.
The prospect of market tightening looms as Western governments seek ways to reduce Russia's ability to finance its war in Ukraine, although G7 leaders are also expected to discuss reviving the Iran nuclear deal, which could boost Iran's oil exports.
But for the time being, supply concerns have overshadowed growing concerns about the possibility of a global recession after a string of downbeat US economic data.
Brent crude futures rose 22 cents, or 0.2%, to $113.34 a barrel, after rising 2.8% on Friday.
US West Texas Intermediate crude reached $107.73 a barrel, up 11 cents, or 0.1%, after rising 3.2% in the previous session. Ended 29/N33 https://www.mawazin.net/Details.aspx?jimare=197755
In Front Of Turkey.. Iraq Reviews Its Oil Export Capabilities And The Future Of Energy In The World
Economie| 03:29 - 06/26/2022 Baghdad - Mawazine News On Sunday, Oil Minister Ihsan Abdul-Jabbar Ismail received the Turkish ambassador to Baghdad, Ali Reza Konay.
A statement by the Ministry, a copy of which was received by Mawazine News, stated that during the meeting, they discussed ways to enhance bilateral relations in a way that serves common interests, especially enhancing opportunities for cooperation in the investment sector in the fields of refineries and renewable energy.
He added, "In this meeting, Iraq's export capabilities, oil market developments, and the future of energy in the world were reviewed." https://www.mawazin.net/Details.aspx?jimare=197683
After The Missile Strikes, "Dana Gas" Announces The Continuation Of Production
Economie| 11:11 - 27/06/2022 Follow-up - Mawazine News , the Emirati company, "Dana Gas", confirmed, on Monday, the continuation of the production process in a normal manner.
The company said in a statement, that the company continues "normally" production in the fields and the company's headquarters in Qadir Karam district, Sulaymaniyah Governorate, after the missile attack on the Kormor gas field.
It is noteworthy that the Kormore gas fields in Chemchemal were subjected to three missile attacks within four days. Ended 29/N33 https://www.mawazin.net/Details.aspx?jimare=197766
Dana Gas”: The Kurdistan government has taken the necessary measures and the production is continuing
Posted On 2022-06-27 By Sotalira The Emirati company, Dana Gas, confirmed today, Monday, that the missiles that targeted the “Kormore” field did not cause any damage, noting the measures taken by the Kurdistan Regional Government to enhance security measures in the field.
The company said in a statement, "We inform you that the incident that occurred on June 22, 2022, when two small missiles landed in the Khormore concession area in the Kurdistan Region of Iraq, did not cause any injuries or damage."
The statement added, "Production operations continue as normal and without any interruption, and work on the Kormore Expansion Project (KM250) has been temporarily suspended while implementing the necessary security improvements."
The statement continued, "The company is coordinating directly with the Kurdistan Regional Government, which has shown with the Iraqi government strong support for the company and in response to these attacks, as the Kurdistan Regional Government has taken all necessary measures to enhance security measures in Kormore, including the transfer of more armed forces to protect facilities and facilities. in the region.”
On Sunday , the Prime Minister of Kurdistan Regional Government, Masrour Barzani, directed the Peshmerga and Interior Ministers to take all necessary measures to protect vital public infrastructure and oil and gas facilities from missile attacks carried out by outlaw groups. LINK