Saturday Morning Iraq Economic News Highlights 4-8-23
Saturday Morning Iraq Economic News Highlights 4-8-23
Expert: The Tripartite Budget Gives The Government Full Powers To Borrow About 42 Trillion Dinars
2023.04.08 - Baghdad - people Nabil Al-Marsoumi, a professor of economics at the University of Basra, warned, on Saturday, of what he described as "the country's sinking in a sea ofdebt."
Al-Marsoumi said in a post followed by “NAS” (April 8, 2023), “Perhaps the most dangerous thing in the budget is that it is tripartite and not annual, which means that spending will continue in the next year, not on the basis of 1/12 of actual spending, but rather on the basis of what is allocated in The budget in the previous year, and this may lead to freeing the government’s hand in internal and external borrowing, especially with the disappearance of the cash surplus that will be used in this year’s budget, in addition to that it is possible for the budget to continue in its current form without amendment in the next two years without Parliament having legal powers To reject it or amend it, which will plunge the country into a sea ofdebt."
He added, "In other words, the tripartite budget legislation will give the government full legal powers to borrow 41.5 trillion dinars, not in 2023, but also in the years 2024 and 2025, which means that the government can borrow internally and externally without referring to Parliament, an amount of 121.5 trillion dinars during the budget." for the three years 2023, 2024 and 2025.
https://www.nasnews.com/view.php?cat=105239
Parliamentary Finance: So Far, There Is No Agreement To Pass A 3-Year Budget
Time: 04/08/2023 {Economic: Al Furat News} A member of the Parliamentary Finance Committee, Jamal Cougar, confirmed today, Saturday, that there is no agreement to pass a 3-year budget so far.
"Until now, there is no agreement to pass a 3-year budget," Cougar said in a statement to {Euphrates News} agency.
And Cougar indicated that "the committee will focus on the budget for the year 2023, and we will sit with the government for the purpose of discussing some paragraphs."
On the thirteenth of last March, the Council of Ministers approved the draft financial budget law and submitted it to Parliament for a vote, with high proposed expenditures and investments, driven by the increase in oil prices, for a period of 3 years, starting from 2023. Raghad Daham LINK
An Economist Reveals A “New Variable” That May Affect Oil Revenues And The Budget
An economist warned against Iraq following the Saudi monetary policy, and while stating that the latter has its own reasons for reducing oil production, he stressed the need to beware of a “new variable” with the Turkish side that might wreck oil revenues and the budget.
The economist, Nabil Al-Marsoumi, said in a press interview seen by “Takadum” that “the absence of a strategic horizon for economic thinking in Iraq prompted it to be subordinate to the Saudi monetary policy,” noting that “Saudi policy has its strategic priorities, and one of the reasons for its agreement with Russia to reduce oil production Because of the great loss suffered by the National Bank of Saudi Arabia, one of the major investors in the Credit Suisse Bank in Switzerland,” which has recently collapsed.
Al-Marsoumi continued, “The dependence of the Iraqi monetary policy on Saudi Arabia will lose a lot, because Saudi Arabia today has a basic oil production line of 11 million barrels per day, while the baseline for oil production in Iraq amounts to 4.6 million barrels, and this indicates a large gap in numbers.”
He explained that "Iraq is forced to reduce oil production due to Saudi pressure, and as a result it will not be able to proceed with the development of its production capabilities. Iraq plans to have oil production at 6 million barrels per day in 2027 and has signed with the French company Total to raise oil production in one of the fields." "The procedures and policy of reducing production collide with Iraq's presence in OPEC."
He added, "The oil countries have economic and social buffers to face the crises, including the possession of large sovereign funds that can absorb any crisis, on the other hand, Iraq does not have any buffer other than its cash reserves."
Al-Marsoumi stated, “The new variable that appeared for Iraq is that Turkey refuses to allow the resumption of Iraqi oil exports, and demands the settlement of financial requests from 2018 to 2022 before allowing Iraq to export oil from the Kirkuk fields, and this means that Iraq will be affected by stopping 450,000 barrels and not flowing abroad.” ".
He stressed that "this new variable may ravage oil revenues and the budget, because Iraq is bound by its agreement with Kurdistan, to receive the value of 400,000 barrels of oil and pay the share of 16 trillion dinars in the 2023 budget." https://takadum-news.com/archives/158317
To Avoid The Deficit.. A Parliamentarian Presents A Solution To Resolve The Oil Price Clause In The Budget
Today 14:56 Information/exclusive.. Member of Parliament, Rafik al-Salhi, proposed today, Saturday, a mechanism to resolve the oil price clause in the budget law, while he expected it to be passed during the holy month of Ramadan.
Al-Salihi said in an interview with Al-Maalouma agency, "The House of Representatives will vote during the blessed month of Ramadan on the draft law budget for the current year and resolve the matter."
As for the varying oil prices, and their relationship to the price specified in the Iraqi budget, Al-Salhi stressed: “It is necessary to put a price lower than the current prices offered in the global markets so that there is no large deficit in the budget,” noting that “this is what has been worked on during all sessions.” government in previous years.
The member of the House of Representatives explained, "Oil prices are evaluated at a lower price than the current price, so that there is no economic turmoil about this matter and thus causes disruption of the budget."
And Al-Salhi stated, "The first and last goal of the House of Representatives at the present time is to pass the budget, given that many projects and important works for the Iraqi people depend on this law."
The Council of Ministers had estimated oil prices in the financial budget law at 70 dollars, which sparked an economic controversy, especially with the fluctuation of prices in global markets.
Last Wednesday, the House of Representatives held the first session to read the draft budget for the current year, which focused on defining the budget items and its most important paragraphs. LINK
Iraq's Oil Exports To America Doubled
Saturday 08, April 2023 10:37 | Economical Number of readings: 260 Baghdad / NINA / - The US Energy Information Administration announced, today, Saturday, that Iraq's oil exports to America increased during the past week.
The administration in a report, that "the average US imports of crude oil during the past week from nine countries amounted to 6.36 million barrels per day, up by 1.833 million barrels per day from the previous week, which amounted to 4.532 million barrels per day." day."
She added, "Iraq's oil exports to America amounted to an average of 345,000 barrels per day last week, up by 207,000 barrels as a daily average from the previous week, in which oil exports to America amounted to an average of 138,000 barrels per day. "
She pointed out that "most of America's oil revenues during the past week came from Canada at a rate of 3.890 million barrels per day, followed by Mexico at an average of 920 thousand barrels per day, and oil revenues from Saudi Arabia amounted to 514 thousand." , and then Nigeria at a rate of 302 thousand barrels per day.
According to the administration, “the amount of American imports of crude oil from Nigeria amounted to an average of 129,000 barrels per day, from Ecuador 80,000 barrels per day, from Colombia 71,000 barrels, and from Libya 14,000, while it did not import any quantity from Russia.”
The Dollar Falls To Less Than 1,500 Dinars In The Iraqi Market
The dollar falls to less than 1,500 dinars in the Iraqi market 11556
Market Economy News – Baghdad Today, Saturday, the exchange rates of the dollar fell to less than 1,500 dinars in the local markets.
Baghdad Sale: 149,750 dinars per 100 dollars Buying: 147,750 dinars per 100 dollars
South Sale: 149,500 dinars per 100 dollars Buying: 147,500 dinars per 100 dollars
North Sale: 150,000 dinars per 100 dollars Buying: 148,000 dinars per 100 dollars
https://economy-news.net/content.php?id=33413
The Decline In Dollar Prices In Baghdad And Erbil
2023-04-08 02:23 Shafaq News/ The exchange rates of the US dollar decreased against the Iraqi dinar today, Saturday, in the main stock exchange in the capital, Baghdad, and in the Kurdistan Region.
Shafaq News agency reporter said that the central Al-Kifah and Al-Harithiya stock exchanges in Baghdad recorded 148,800 Iraqi dinars for 100 US dollars this morning.
On Thursday morning, the prices were 150,000 dinars for 100 dollars.
Our correspondent indicated that the buying and selling prices decreased in the exchange shops in the local markets in Baghdad, where the selling price reached 150,000 Iraqi dinars per 100 US dollars, while the purchase price amounted to 148,000 Iraqi dinars per 100 US dollars.
As for Erbil, the capital of the Kurdistan Region, the stock exchange does not trade on official holidays, but the exchange offices traded dollars and recorded a decrease, as the selling price of the dollar reached 149,000 dinars per 100 US dollars, and the buying price reached 148,000 dinars per 100 US dollars. LINK
Government moves to mitigate the effects of changing the dollar exchange rate
Economy| 11:28 - 08/04/2023 Baghdad - Mawazine News Today, Saturday, the Baghdad Chamber of Commerce revealed the existence of joint moves between the government and a number of trade unions and organizations aimed at mitigating the severity of the effects resulting from the change in the dollar exchange rate, and its negative repercussions on the level of income of individuals and the economic movement in general.
The advisor at the Baghdad Chamber of Commerce, Ali Hadi Jouda, said, “An important meeting was held in the Ministry of Planning to discuss the effects and repercussions of changing the exchange rate on the various economic sectors, especially commercial, industrial and real estate, which was undertaken by the Central Bank on 2-7-2023 and approved by the Council of Ministers.” , stressing that "the participants in the meeting presented a number of recommendations that will be submitted to the Council of Ministers with the aim of mitigating the effects of changing the exchange rate."
Judeh pointed out that "the Chamber of Commerce presented, in turn, during the meeting a realistic diagnosis of the problems resulting from changing the exchange rate of the dollar, and presented a number of solutions commensurate with the origin of the problem," noting that "these opinions and treatments were presented to the Ministry of Planning and will be submitted to the Council of Ministers," according to the official newspaper. https://www.mawazin.net/Details.aspx?jimare=224030
Report: The Drop In The Exchange Rate Of The Dollar In Iraq Because Iran Stopped Buying It From The Black Market
Economy |Today Baghdad Today – translation On Friday, the local Iraqi markets witnessed a decline in the exchange rates of the dollar, driven by expectations of a further decline in the value of the US dollar against the dinar, as a result of Iran's cessation of buying dollars from the Iraqi black market, after costs rose to unprecedented levels.
The Middle East Eye network revealed, according to a report translated by (Baghdad Today), that the Iranian authorities found themselves forced to pay 400,000 out of every million dollars to obtain the currency, which incurred great economic losses and forced them to stop illegal purchases of dollars from the market. Iraqi black woman," according to the report.
The report indicated that "Iran's suspension of purchases has greatly increased the levels of currency present in the Iraqi market," stressing that "exchange outlets and private banks that kept large amounts of dollars withdrawn from the Iraqi market in favor of Iran, found themselves owning large amounts of currency." America without the presence of many buyers after Iran stopped the purchases.
And she continued, "According to the information obtained by the network from an official in the office of the Prime Minister, Muhammad Shia' al-Sudani, Iran stopped buying dollars from Iraq a week ago, which reflected positively on the availability of hard currency inside the Iraqi market." That stop, in any case, was associated with Iran shifting its focus. Towards a new mechanism for obtaining the dollar.
The network revealed, "The Iranian authorities, who used to pay large amounts of money to currency smugglers, including individuals whose names are used to obtain sums of money amounting to seven thousand dollars for travel trips outside Iraq, have now found a new way to use them to feed their economy in dollars through electronic prepaid cards." She said she was also under pressure.
The Iraqi authorities quickly revealed, according to the description of the network, currency smuggling operations using electronic prepaid cards destined for countries abroad, and arrested a number of travelers who possessed large quantities of the aforementioned cards, which prompted Iran to place another temporary suspension on the operations of obtaining dollars from the cards. .
Iran, according to the network, is heading towards smugglers from the countries of Jordan and the UAE to obtain dollars through smuggling networks from Iraq after stopping its purchase through Turkey, which put Iran under more pressure due to the high costs, which it reflected on the Iraqi authorities through criticism directed at it in particular and through channels diplomacy, according to the network. LINK