More Iraqi News Tuesday PM  1-25-22

More Iraqi News Tuesday PM  1-25-22

TLM724 Administrator BondLady’s Corner

Economists Are Optimistic About The Rise In Oil Prices And Call For The Activation Of The Sovereign Fund In Iraq

Posted On2022-01-25 By Sotaliraq  Economists expressed their optimism about the rise in oil prices, and while they called for structuring the oil policy in Iraq to absorb the unemployment crisis, they offered solutions that would revive the Iraqi economy.

The economic expert, Salam Sumaisem, says that “the increase in oil prices is supposed to be directed to areas where the Iraqi economy suffers from a lack of funding, the most important of which is bridging the deficit gap in the public budget, and that it is directed to development purposes and improving the situation of the citizen, especially the health file, especially with the outbreak of the pandemic and the presence of Hospitals suffocate phenomena as well as saving expenses to meet the needs of the ration card and improve its quality.”

Sumaisem added, "The Ministry of Finance confirmed that the issue of raising the price of the dollar will continue for 5 years, and it is possible to address the effects of this, and thus reduce the internal debt represented by the state's borrowing from some institutions such as the Rafidain Bank, the Trade Bank of Iraq and other banks, in addition to the volume of bonds submitted, and this remains based on the size of the state's fiscal policy.

And she noted that "there is an important issue represented in the economic vision and benefiting from these funds and caution against their loss and loss of control and transparency, as there are no reports regarding the final accounts provided by the Financial Supervision Bureau, as well as waiting for Parliament to approve the 2022 budget."

In turn, the economic expert, Tariq Al-Ansari, says, “The rise in oil prices can be called (the oil market uprising) due to three cases or problems that occurred in the oil market, which are the increased demand for fuel in Europe due to the decrease in European stocks by 11%, and the establishment of the United States The US has withdrawn the strategic oil stockpile, and decreased exports to Kazakhstan, which is a member of OPEC.”

Al-Ansari added, "These three factors led to a price increase to $85, and it is expected in the coming months to reach $90," noting that "this increase represents successful and good indicators for reviving the Iraqi economy if it is properly and properly utilized within the economic engineering."

In Iraq’s oil policy, to absorb unemployment and reduce loans, which has become a burden on the Iraqi economy, the public budget, and the Iraqi citizen in particular.”

He stressed, "This increase should follow the example of what countries such as Kuwait, Saudi Arabia, the UAE and Qatar did by placing them within the generational support strategy, as economists in oil policy tended to directly strengthen the sovereign fund of their countries," stressing "the need to take correct and sound measures in oil policy and achieve The increase in the economic system in Iraq is a fragile system that does not adopt standards on how to employ these increases so that they are reflected on the Iraqi economy and citizens.”

He pointed out “the importance of there being a return to all government performance of economic activities, restructuring the oil policy, achieving a balance between financial, monetary and investment policies, and working to activate the sovereign fund, as we call it the Generations Fund, and build it in a way that guarantees a solid and sober economy because opportunities in the economy do not always come.” In normal circumstances, it always comes in difficult circumstances.”

For his part, the economist, Nabil Jaafar, said, “There are upward trends in the tracks of crude oil, and Brent crude recording more than $87 is an indication of the recovery and recovery of the global oil market due to many factors, with strong demand accompanied by limited supply due to the inability of OPEC to implement monthly increases.”

Amounting to 400,000 barrels per day and only 250 thousand barrels, in addition to this, the inability of shale oil producers to distribute profits and invest in the industry, which is turbulent and requires large capital to shift towards clean energy.”

Jaafar continued: "Added to this are the tensions that the world is witnessing, especially in Kazakhstan, and the armed attacks against the UAE, which cast doubt on the safety of oil supplies, in addition to the cold weather experienced by the western hemisphere," noting that "all these factors pushed oil prices to These prices are high."

He added, "It is hoped that the price of a barrel of oil will break the $100 barrier, and this situation will reflect positively on the Iraqi situation, where the value of exports is expected to reach 145 trillion dinars, an increase of about $25 billion over what was achieved in 2021."

He stressed, "Oil is the focus of the Iraqi economy and the main source of income from foreign currency, as it is positively reflected on the level of all economic indicators, the balance of payments, external balances and the current account balance, and the deficit will also decrease as a result of the increase in oil prices and the high level of Iraqi oil revenues."

He pointed out that "today there is a new wave of rising crude oil prices, and it is possible to invest this to break the financial constraint that prevents real economic development, and to invest large sums that can be allocated to activate the investment aspect and establish some strategic projects that generate goods and services and have an impact on achieving a qualitative leap." for the Iraqi economy.

He pointed out, "the importance of working to establish a sovereign fund and a financial and economic buffer, because the rise in oil prices will not continue, and we will face in the coming years factors of a decline in prices, so this fund is important to maintain the guarantee of the future for future generations."

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, had submitted earlier, a proposal to establish a fund or account concerned with the stability of the budget and fed annually with a percentage of the surplus oil revenues, to hedge against the risks of price fluctuations, while recommending the adoption of financial discipline after the rise in oil prices, pointing to This avoids resorting to debt and hedges against oil price shocks.

He added, "Financial discipline means the optimal use of budget resources and raising the levels of good management without financial waste that ultimately arranges resorting to unjustified borrowing, and it also hedges against external price shocks generated by oil market surprises and price fluctuations and their sudden decline without knowing the reasons, which leaves direct adverse effects on the stability of the financial sustainability of the country.”   LINK

A Jump In Oil Prices, And Brent Recorded $ 86.87 A Barrel

Economie| 09:14 - 25/01/2022   Follow-up - Mawazine News: Oil prices recorded, on Tuesday, a big jump, to regain some of the gains they lost in the sharp losses of the previous day, due to fears of a possible disruption of supplies amid escalating geopolitical tensions in Eastern Europe and the Middle East.

Brent crude futures rose 59 cents, or 0.71 percent, to $86.87 a barrel.

US West Texas Intermediate crude futures also rose 49 cents, or 0.59 percent, to $83.78 a barrel.

Oil prices reached their highest levels in seven years last week, supported by tight global supply and the return of global demand. Ended 29/A4    https://www.mawazin.net/Details.aspx?jimare=182606

The Exchange Rates Of The Dollar Against The Dinar In The Local Markets

Economie| 10:28 - 25/01/2022   Baghdad - Mawazine News   publishes / Mawazine News /, the price of the dollar against the Iraqi dinar, and the prices of gold and oil globally, according to the Iraqi political economic center.

The selling price of the dollar: 148,500 dinars for 100 dollars

The purchase price of the dollar: 147,500 dinars for 100 dollars

100 euros 113.08 dollars

100 pounds 134.77 dollars

100 dollars 1344.24 pounds Turkish

The price of an ounce of gold globally $ 1841.49

The price of a barrel of Brent crude oil is 87,03 dollars

The price of a barrel of crude oil American $83.93

https://www.mawazin.net/Details.aspx?jimare=182616

Central Bank Governor: Development Initiatives Reflected Positively On The Economy In Southern Iraq

Economie| 10:59 - 25/01/2022   Baghdad - Mawazine News, Governor of the Central Bank, Mustafa Ghaleb, considered on Tuesday that the bank's development initiatives contributed to supporting and establishing projects in southern Iraq, and had a positive impact on the economy in these governorates.

The media office of the Governor of the Central Bank stated in a statement received by Mawazine News that "Makhif sponsored the celebration held by the Central Bank branch in Basra on the occasion of the sixty-fifth anniversary of its founding, in the presence of Basra Governor Asaad Al-Eidani and a number of stakeholders in the banking and financial sector in the province."

The Governor of the Central Bank said in his speech during the celebration, according to the statement, that "Basra governorate represents the economic lung of Iraq and constitutes an important population and commercial weight, in addition to its historical position, and this is what calls us to strengthen the work of the banking sector in it."

Makheif added, "The development initiatives of the Central Bank contributed to supporting and establishing projects in southern Iraq, and had a positive impact on the economy in these governorates through the creation of new jobs and the expansion of local industry."

The statement continued, "The governor was briefed on the procedures for the progress of work for the sections of the bank's branch in Basra," praising "the efforts made by the branch's management and its affiliates, pledging to overcome all obstacles and difficulties facing their work." Ended 29/N33

https://www.mawazin.net/Details.aspx?jimare=182619

Planning: The High Monthly And Annual Inflation Rate In Iraq

Economie| 01:46 - 25/01/2022   Baghdad - Mawazine News  The Ministry of Planning announced, on Tuesday, an increase in the monthly inflation rate for the month of December last by 0.3% and an annual increase by 5.3%.

The Central Statistics Agency of the Ministry said in a statement received by Mawazine News, that "the inflation rate for the month of December increased by (0.3%), compared to the previous month of November," noting that "the annual inflation rate for the month of December 2021 compared to the previous period." The same, from last year 2020, witnessed an increase of (5.3%).”

The statement added that "the Central Bureau of Statistics, through the Index Numbers Section, prepares a monthly consumer price report, which includes field follow-up of price variables, for more than (333) goods and services in all governorates, representing (88%) of the total expenditure of the family. Iraq for goods and services.

He pointed out that "the commodity totals that increased the most in monthly prices for the month of December compared to November of the year 2021 was the housing department, which recorded an increase of 0.6 percent due to the increase in water and electricity supplies by 3.4%, the fuel group by 0.5%, and the rental group by 0.2% The Education Department also recorded a 4.3% increase due to the start of registration with private universities fees and middle school fees.

The statement pointed out that "the miscellaneous goods and services department recorded a 0.4% increase in the monthly rate of change." Ended 29/A4   https://www.mawazin.net/Details.aspx?jimare=182638

The Central Bank's Sales Of Hard Currency Declined

Economie| 02:18 - 25/01/2022   Baghdad - Mawazine News  The Central Bank of Iraq's sales of hard currency decreased, today, Tuesday, slightly.

Today, the Central Bank auction for the sale and purchase of foreign currencies witnessed a decrease in its dollar sales by 0.45% to reach 223 million and 85 thousand and 18 dollars, which the bank covered at a base exchange rate of 1460 dinars per dollar.

Most of the bank's sales went to enhance balances abroad in the form of remittances and credits, which amounted to 169 million and 15 thousand and 18 dollars, while the remaining amount of 54 million and 70 thousand dollars went in cash.

This has been 27 banks to fulfill requests to enhance balances abroad, 20 banks to meet cash requests, in addition to 201 mediating companies. Ended 29/A4   https://www.mawazin.net/Details.aspx?jimare=182643

 

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