Monday Iraq Economy News Highlights 5-30-22

Monday Iraq Economy News Highlights 5-30-22

Iraq Has The Worst Budget With The Highest Budget .. “Earth News” Monitors The Budgets Of 4 Countries Within 10 Years (Statistic And Infographic)

29/05/2022  Earth News / Sam Mahmoud  In its first statistical report, Earth News reviews the total budgets of Iraq during the past ten years, compared to three regional countries chosen as models, namely Egypt, Jordan and the UAE, highlighting the differences in budgets and the total, compared to what was achieved in Iraq and those countries in the same period.

According to a census, which started with the 2012 budget in the four countries, it took into account the absence of two budgets in Iraq (2014 and 2020), as well as the approval of the UAE only for the budget for the current year 2022 among all the countries selected in the census, and it was excluded to maintain the ten-year calculation Entirely.

The total figures for the total budgets in these countries were as follows: Iraq $767 billion for 8 budgets, the UAE $140 billion for 10 budgets, Egypt $917.5 billion for 10 budgets and Jordan $119.6 billion for 10 budgets.

Starting with Iraq, it has spent $767 billion since 2012 until now, without the country witnessing any progress in the field of infrastructure, education, energy, roads and bridges, in addition to the absence of important investments related to the life of the citizen.

Iraq’s budgets were as follows: $100 billion/2012, $118 billion/2013, no budget/2014, $103 billion/2015, $91 billion/2016, $66 billion/2017, $88 billion/2018, $112 billion/ 2019, no budget / 2020, $89 billion / 2021.

The UAE budgets were as follows: $11.4 billion in 2012, $12.1 billion in 2013, $12.5 billion in 2014, $13.4 billion in 2015, $13.2 billion in 2016, $13.3 billion in 2017, $15.4 billion in 2018, and 16.3 billion. $19, $16.6 billion/2020, $15.8 billion/2021.

Turning to Egypt, its budgets were as follows: $84.5 billion/2012, $117 billion/2013, $76 billion/2014, $80 billion/2015, $104 billion/2016, $63 billion/2017, $80 billion / 2018, $95 billion / 2019, $136 billion / 2020, $82 billion / 2021.

Jordan's budgets were as follows: $9.6 billion in 2012, $10.5 billion in 2013, $11.2 billion in 2014, $11.1 billion in 2015, $11.8 billion in 2016, $12.6 billion in 2017, $11.9 billion in 2018, and 13.1 billion. $19, $13.8 billion/2020, $14 billion/2021.

The level of Iraqi economic growth fluctuated, due to its connection with international oil prices, where the budget was built on its basis, and oil revenues constituted more than 90 percent of the budgets, which exposed it to major economic shocks, which prompted successive governments to austerity.

A member of the former Parliamentary Economy and Investment Committee, Nada Shaker Jawdat, told "Earth News", "Very large funds are allocated in Iraq's budget with each year that goes between corruption and waste due to poor planning and management, and this is the reason for the loss of budget funds over the past years without any projects." Concretely large on the ground by the citizen.”

She added that "the countries of the region and the world, specifically the Arab countries, depended largely and mainly on investment in the development of infrastructure and reconstruction, and this matter is being lost by Iraq frankly, for several reasons, including security instability, which pushes major companies not to take investment projects in Iraq, in addition to The complex procedures in referring projects to investment and the accompanying corruption and extortion operations.”

And she stressed "the need to build Iraq's budgets, according to strategic plans, not according to traditional plans, which are always a budget of expenditures and not a budget of projects and services, although there are large financial allocations for the establishment of giant projects in various fields."

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Turning to the UAE, the oil country and member of OPEC, the UAE economy has achieved growth rates that are considered among the highest in the world, during the past decade, as the country’s gross domestic product has doubled by more than 5 times in ten years, according to official statistics issued by the Ministry of Economy and the UAE Central Bank. In addition to the UAE achieving qualitative leaps in the sectors of education, health, investment, roads and technology, and its international classification is very advanced in most sectors.

In Egypt, which is also an oil and gas exporter, the annual growth rate of the economy increased and reached its peak during 2018, compared to the last ten years, and investment and net exports were the most important main sources of growth, at a rate of 74 percent, according to the Egyptian Ministry of Planning, and this is up to As well as achieving breakthroughs in the level of infrastructure, construction and tourism.

Turning to Jordan, the non-oil country, the total output rose to about 42 billion dollars, after it was less than 30 billion dollars during the past ten years, in addition to the increase in exports, reaching about 140 countries, and this is in return for Jordan maintaining the exchange rate of the Jordanian dinar against the dollar. Stable and provision of infrastructure, the most important of which is electricity permanently.

In addition, an expert in economic affairs, Salam Sumaisem, told "Earth News", that "the reason for not developing infrastructure and establishing strategic projects in Iraq during the past years, despite explosive financial budgets, is unlike some poor countries, which witnessed remarkable development in the same period due to several The most important reasons are corruption and failure.”

Sumaisem stressed that “corruption is the main reason why the money of these explosive budgets goes to the balances of the corrupt and is not properly spent on developing infrastructure and establishing strategic projects in various sectors, especially since the majority of projects were referred to fake companies and are not experienced, and for this there are hundreds of projects that have been suspended for years. , without holding the negligent parties to account, whether governmental or private.

And she added, "There is a defect in the issue of preparing Iraq's budgets, especially since these budgets depend in financial revenues on more than 90 percent of oil revenues, with the presence of many important doors that can provide money in supporting budgets, especially related to the aspect of tourism, communications, agriculture and many others neglected." due to poor management and planning by the relevant authorities.”

She pointed out that "Iraq's budgets over the past years do not differ from each other only some of the exchange sections, as they are always devoid of plans and projects of a strategic dimension, unlike other countries that always work on a major change between the budgets of the years, and the budget of Iraq is always only Expenditures and expenses related to salaries and other financial issues to run state institutions without important and realistic projects implemented on the ground.”

https://earthiq.news/archives/90592

Dollar Exchange Rates In Local Markets

Economie  2022-05-30   Source:  Alsumaria news   2,091 views  The exchange rates of the dollar rose, today, Monday, in the local markets.

The selling prices of the dollar were 148,450 dinars per 100 dollars, while the purchase prices of the dollar were 148,350 dinars per 100 dollars.

Earlier, he decided Central Bank of Iraq Adjusting the exchange rate of the dollar against the Iraqi dinar, as the purchase price of the dollar from the Ministry of Finance amounted to 1450 dinars, while the price of selling it to banks was set at 1460 dinars per dollar, while the selling price to the citizen was 1470 dinars per dollar.  LINK

Oil Prices Record A New Jump

Economie  2022-05-30 |   Source:  Alsumaria news  3,278 views  Oil prices rose to a two-month high on Monday, as traders waited to see if the European Union could reach an agreement on a Russian oil embargo ahead of a meeting related to the sixth package of sanctions against Moscow over its invasion of Ukraine.

Brent crude futures for July rose more than a dollar to $120.50 a barrel, while US West Texas Intermediate crude futures jumped a dollar to $116.10 a barrel, continuing strong gains made last week.

European Union leaders are scheduled to meet on Monday and Tuesday to discuss the sixth package of sanctions against Russia to conquer it Ukraine.

Any additional ban on Russian oil will lead to a supply shortage in the crude oil market, which is already under pressure on supplies amid increased demand for gasoline, diesel and jet fuel ahead of the peak summer demand season in the United States and Europe.

Officials said European Union governments failed to agree on a Russian oil embargo on Sunday but would continue talks on a deal to ban offshore shipments of Russian oil while allowing pipeline deliveries.TADAWUL:2360) before Monday afternoon's summit.

If this is agreed upon, Hungary and Slovakia And the Czech Republic to continue receiving Russian oil through the Druzhba pipeline for some time until alternative supplies are arranged.

In confirmation of the lack of supply in the market, it is expected that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, which are called OPEC +, Western calls to speed up the increase in their oil production when they meet on Thursday. Six sources in OPEC + told Reuters OPEC + will stick to its plan to add 432,000 barrels per day in July. "This raises the specter of further disruption to the flow of oil through

The oil market was also tense after Iran said on Friday that its navy had seized two Greek oil tankers in retaliation for the United States' confiscation of Iranian oil from an oil tanker seized off the Greek coast. Strait of Hormuz which carries a third of world trade

Oil prices were also supported by the dollar's decline after investors abandoned expectations of an interest rate hike in the United States and as concerns about a global recession faded. A falling dollar makes oil less expensive for importers in other currencies. LINK

Oil Prices Cross $120 A Barrel

Economie  11:22 - 2022-05-30   Oil prices hit a two-month high on Monday, as traders waited to see if the European Union could reach an agreement on a Russian oil embargo ahead of a meeting related to the sixth package of sanctions against Moscow over its invasion of Ukraine.

Brent crude futures rose more than a dollar to $120.50 a barrel, while US West Texas Intermediate crude futures jumped a dollar to $116.10 a barrel, continuing the strong gains made last week.

European Union leaders are scheduled to meet on Monday and Tuesday to discuss the sixth package of sanctions against Russia for its invasion of Ukraine.

Any additional ban on Russian oil will lead to a supply shortage in the crude oil market, which is already under pressure on supplies amid increased demand for gasoline, diesel and jet fuel ahead of the peak summer demand season in the United States and Europe.

EU governments failed to agree on a Russian oil embargo on Sunday, but will continue talks on a deal to ban sea shipments of Russian oil while allowing pipeline deliveries before the summit on Monday afternoon, officials said.  https://kirkuktv.net/AR/Details/6395

Experts On The Rise In Cash Reserves: Oil Imports Doubled Expenditures

Posted On2022-05-30 By Sotaliraq   Baghdad/ Firas Adnan   Economists confirmed that Iraq's monthly oil imports are currently double its expenditures, pointing out that the increase in energy and food prices will cost the treasury $18 billion, but they talked about a significant increase in the Central Bank's reserves in a way that enables it to cover the value of the Iraqi dinar.

Another economic expert, Safwan Qusay, said, "Iraq is going this year without a budget, and this made the government unable to spend more than 101 trillion dinars, which is the amount of spending for the past year."

Qusay continued, "The average monthly spending according to last year's budget is 7.5 trillion dinars," explaining that "Iraq's monthly revenues are close to 15 trillion dinars."

The House of Representatives is seeking to pass a law on emergency support for food security in order to provide financial support to a number of sectors by allocating more than 25 trillion dinars.

Qusay said, "Iraq will get an additional 50 trillion dinars over what it was last year, and the total will be in the range of 120 to 130 billion dollars, which is the revenues for the current year."

He stressed, "The increase occurred after the zeroing of Kuwait's debts in the previous year, which provided us with 3 billion dollars, with the change in the exchange rate of the dollar against the Iraqi dinar, which provided us with 10 billion dollars."

Qusay spoke about “another important factor, which is the rise in oil prices, as a barrel is currently sold at $117 per barrel, as the export quantities will return next month to 3.7 million barrels per day.”

On the other hand, Qusay said, "Iraq needs to increase the dues to purchase energy and foodstuffs, and this requires finding an additional 18 billion dollars to raise the prices of these materials."

He stressed, "The remaining revenues will be about 50 billion dollars, and despite the statement of Finance Minister Ali Abdul Amir Allawi that there will be 20 billion dollars that will go to the reserve, but we believe that the amount will be more than that."

And Qusay, that «the reserves of the Central Bank will rise in a manner that covers the value of the Iraqi dinar, which there is no doubt about its collapse according to these data».

For his part, the economist Nabil Al-Ali said, "The current oil prices in the global markets, which are between 110 to 120 dollars, were expected and within what most of the major economic institutions concerned talked about."

Al-Ali added, "A part of these institutions began to expect a new rise in oil prices during the second half of this year."

He pointed out that "the current rise occurred as a natural result of the repercussions of the war between Russia and Ukraine on the oil market," adding that "the second expectation is the stability of prices as they are and will not decline below $100."

Al-Ali indicated that "the current rates have a great positive impact on the economies of the oil-producing countries, including Iraq, and unlike other oil-consuming countries, they will be affected."

He noted, "The damage to Iraq can occur in one aspect only, which is the rise in consumer product prices in general as a result of the rise in oil prices."

Al-Ali pointed out that “the cash reserve of Iraq is linked to the Central Bank, and the increase that occurred in it during the past period was the result of the rise in oil prices, and this overall reflects the extent of the overall stability of Iraq’s economy and its ability to borrow conditionally during the past period to establish development projects.”

He added, "The rise in revenues has a significant impact on Iraq's credit rating, in that it is not exposed to risks, and these are important indicators that are reflected in the volume of oil needs."

Al-Ali explained, "Once Iraq enters into budgets, these reserves will be eroded, and their increase occurred as a result of the lack of spending after the end of the budget law for the past year."

He called, "there is stability in the cash reserve and there will be no continuous increase, but some amounts are transferred to the accounts of the government or the Ministry of Finance in order to spend them in the development aspects, energy production or gas investment in order to return the revenues."

Al-Ali went on to say that “the reserves are against the local currency in order to find a kind of balance in monetary policy, while the additional revenues can go to government accounts,” stressing that “the increase in the reserves must be linked to an increase in the printing of the local currency so that we have a kind of Stability and balance.

Iraq had started a series of reform measures at the economic level represented in the White Paper, and these measures were welcomed by the international community.   LINK