Sunday Morning Iraq Economic News Highlights 12-11-22
Sunday Morning Iraq Economic News Highlights 12-11-22
He Expected Its Rise To 1,600 Dinars.. A Researcher Identifies The Reasons For The Rise In The Dollar In Iraq
1,205 Sales of the Central Bank of Iraq witnessed a great turmoil in the past weeks, after the decline in the sale of the currency by a rate ranging between 40% and 50%, which led to a rise in the exchange rate to more than 1500 dinars per dollar, at a time when the central bank sells one dollar for 1460 dinars.
The economic researcher, Manar Al-Obaidi, explained in an explanation, the mechanism for converting the dollar into the dinar, in response to the reasons for the decline of the Iraqi dinar, and if it will witness a rise again.
Al-Obeidi said, “Iraq sells its oil in dollars and the dollar currency is owned by the United States of America, and through the Central Bank, Iraq also sells dollars to the local market in exchange for an Iraqi dinar owned by the Iraqi state, either through direct sales through exchange shops or through external transfers and credits for import purposes.”
The researcher added, "The production authorities are the destination to which the transferred money is supposed to go, in order to exchange the products that they sell in dollars, which are originally owned by the United States of America."
And Al-Obeidi indicated the American role in determining the parties to whom they want their currency to go and from the parties that do not want to own their currency because they own the dollar, and therefore they define criteria for the parties to which the money must be transferred by knowing the owner of the money and knowing the final beneficiary.
The researcher explained the reason for the existence of a middle station to which the money is transferred, and then these funds are distributed to various countries and companies, because there are no correspondent banks for Iraqi banks in many countries from which Iraq imports.
Al-Obeidi said, “During the last period, the United States of America set additional criteria for being the owner of the dollar, and refused to pass any transfer from Iraq unless it was sure that the amount goes directly to the beneficiaries, and that because many importers do not deal with direct parties in purchasing goods, it could not.” Banks pass their remittances on.”
This led, according to the researcher, to an increase in the demand for dollars for external transfers, meaning that the importer is looking for dollars outside Iraq, not inside it. Which led to a rise in the price of the dollar against the dinar, which is required externally, not internally.”
He added, "This demand, along with the lack of confidence in the Iraqi currency, led to the fear of the public, which led to the transfer of a lot of their money in Iraqi dinars to the dollar, which led to an increase in demand and a lack of supply, which contributed to adding another factor that contributed to the high price of the dollar."
Al-Obaidi justified all importers - and accordingly - their attempts to work on the behavior of banking outlets and to adopt banking dealings with various suppliers instead of adopting the middleman.
He said, "It may take a few months until the papers are rearranged and the mechanisms are arranged, and the exchange rate will return to its normal state, but we may witness a rise in the dollar against the dinar during the coming period."
And Al-Obeidi indicated that “the problem of lack of dollar sales will lead to a scarcity of the dinar at the central bank, which requires it to increase the cash currency issued to compensate for the demand for the dinar from the Iraqi government, which may lead to an increase in inflation rates.”
The researcher considered that the current dinar crisis is a temporary issue that may need three months or less, and he is optimistic that the exchange rate will return to its normal position once the transfer mechanisms are modified in accordance with the requirements of the US Treasury.
Al-Obaidi concluded by saying, stressing his optimism that “the financial situation of Iraq is good, and the banking sector is able to adjust its mechanisms, and there is a financial abundance that may be slightly affected by an expected drop in oil prices and the rise in the operating bill of the Iraqi government, and we will witness close rises of the dollar against the dinar during the coming period that may exceed the barrier of 1600 dinars, and it has We are witnessing a scarcity of some imported materials and a rise in their prices as a result of the inability of importers to import, but things will return to normal within the next three months or less.” https://takadum-news.com/archives/136138
A Slight Decrease In The Exchange Rates Of The Dollar In The Iraqi Markets Today
Economie 11-12-2022 | 02:37 3,315 views Alsumaria News – Economy Alsumaria News publishes today, Sunday, the exchange rates of the dollar in the local markets.
The selling price of the dollar was 150,100 dinars per 100 dollars, while the buying price of the dollar was 150,000 dinars per 100 dollars.
It is noteworthy that, on December 19, 2020, the Central Bank of Iraq officially announced the adjustment of the exchange rate of the US dollar to be 145 thousand dinars for every 100 dollars, according to the state’s general budget for the year 2021 approved by Parliament. LINK
Among Them Is Iraq..The Countries With The Highest Economic Growth During 2023
Sweeteners 11-12-2022 | 04:29 663 views Alsumaria News – Economy International reports expected that Iraq, the UAE and Qatar would lead the region as the best economic growth during the next year 2023.
According to a report prepared by intelligence unit The Economist Economic Group, entitled "The Middle East Prospects for 2023", has classified countries such asTurkey, And theIraq, and the Emirates andDiameterAmong the report's highest expectations is growth in its economy next year.
The report pointed out that the country of KJordanIt comes "within reassuring areas regarding inflation rates for the Middle East region."
While the report expected the inflation rate to reachJordanFor the next year 2023, it will reach a rate of 3.5 percent, as it is expected that the Kingdom’s economy will grow by 2.6 percent next year.
And while rating a country like Lebanon As the highest country in the region in terms of inflation, as it reached 167%, he pointed out that Kingdom Saudi Arabia It ranks first with the lowest inflation expectations among the economies of the region at a rate of 2.8%. LINK
The Delegation Of The Kurdistan Regional Government Arrives In Baghdad
Political | 09:24 - 10/12/2022 Baghdad - Mawazine News The delegation of the Kurdistan Regional Government arrived today, Saturday, in the capital, Baghdad.
The regional government stated in a statement, of which Mawazine News received a copy, that: "With the aim of continuing negotiations between the Kurdistan Regional Government and the federal government, the delegation representing the region arrived today in Baghdad."
And she indicated, "The delegation will complete its discussions with the government in Baghdad about the file of the general budget and oil." https://www.mawazin.net/Details.aspx?jimare=213829
Among Them Is The Budget.. A Kurdish Delegation Is Heading To Baghdad To Complete The Talks On Outstanding Issues
Political | 06:18 - 10/12/2022 Baghdad - Mawazine News A delegation from the Kurdistan Regional Government went this evening to the capital, Baghdad, to complete the talks on outstanding issues.
An informed source said in an interview with Mawazine News, "A delegation representing the regional government went to the capital, Baghdad, to complete the talks on outstanding issues between Erbil and Baghdad."
He added, "Among the issues that will be discussed is the region's share in the next year's budget, as well as the oil and gas law." https://www.mawazin.net/Details.aspx?jimare=213810
The Democrat Announces The Formation Of A Committee Bearing The Title (Article 140)
Posted On2022-12-11 By Sotaliraq On Saturday, the Kurdistan Democratic Party announced the formation of a committee between the center and the region, called {Article 140}.
The leader of the party, Wafaa Muhammad Karim, said, "It was agreed to define a committee called the Article 140 Committee between the center and the region, as well as an agreement to legislate the oil and gas law."
He added, “Visits to this committee will be every 10 days, once or twice a month.”
And he continued: “With regard to the region’s share in the budget, the deductions will be from the region’s share according to a deductive case, meaning that the region will not deliver sums of money, but will be deducted from its oil exports according to mechanisms.” LINK
Government Official: Iraq Plans To Boost Its Oil Exports By 150,000 Barrels
Posted On2022-12-11 By Sotaliraq Translated by: Hamed Ahmed A high-ranking government official stated that Iraq intends to raise the level of its oil export capacity by about 150,000 barrels from the south in the middle of next year, and talked about efforts to include some of the fields in maintenance procedures to avoid a severe shortage in production.
A report by the American (Platts) Energy Agency, translated by (Al-Mada), stated that "Iraq's representative to the Organization of Petroleum Exporting Countries confirmed that Iraq plans to abide by its low share of oil production according to the (OPEC Plus) agreement."
The report added, "This is done by reducing the quantities of crude oil supplied to refineries and increasing the quantities of imports of petroleum products."
He pointed out, "Iraq is at the same time conducting field maintenance work instead of the strict cuts in production from some oil fields."
Our oil goal or policy is clear. We adhere to the quota set by (OPEC Plus) by reducing production while we try to maintain export rates," said Iraq's representative to OPEC, Muhammad Saadoun. Saadoun continued, "Iraq is also reducing the quantities of oil sent to refineries, and if we have any shortage of oil products derivatives, we increase the quantities of imports."
The report stressed that “the oil ministers of OPEC Plus countries had agreed during their meeting on the fourth of this month to maintain production rates and adhere to the ceiling of reducing production at a rate of 2 million barrels per day, which was implemented last November and will continue until end of 2023.” And he expected, "Iraq will abide by its crude oil production rate of 4.431 million barrels per day, from November to the end of 2023, according to the (OPEC Plus) agreement."
The report quotes information from the state oil marketing company, (SOMO), confirming that Iraq's oil production, according to the agreed reduction in (OPEC Plus), witnessed a decrease of 4.8% of production during the month of November, to reach 4.430 million barrels per day.
And he talked about, “The decrease in Iraq’s production share to 4.431 million barrels per day, in November, compared to the average production of the month before October, which was about 4.651 million barrels per day.”
He explained, "The latest field survey conducted by (Platts Agency) on November 7 on the movement of the global oil market showed that Iraq pumped in the month of October 4.58 million barrels per day of crude oil, which was less than its share of 4.651 million barrels per day."
And the report indicated, "The Iraqi Prime Minister, Muhammad Shia' al-Sudani, had said on November 15 that Iraq was seeking to obtain a higher production share in OPEC Plus to increase its oil imports."
While Oil Minister Hayan Abdul-Ghani was quoted as confirming, at a later time, the country’s commitment to abide by the current reduction of OPEC’s share of production, which amounts to two million barrels per day.
And the report continued, that “Iraq tried hard to adhere to its production quota when the (OPEC Plus) group reduced production quotas for the year 2020-2021 during the height of the Corona pandemic infections and the decrease in oil demand, which forced the group to make a historic reduction in production that reached 9.7 million barrels per day, as of Mid 2020". And the report added, “Saadoun, who also holds the position of deputy director of SOMO for Oil and Gas Affairs, said that Iraq reduced its refinery production capacity in November by 15 to 20% and will continue on the same approach in December and January.”
Saadoun pointed out that "Iraq sees, in general, a decrease in the domestic consumption of oil products in the winter compared to the hot summer months that require the consumption of large quantities of diesel to operate power stations."
And Saadoun goes on, “Iraq plans to introduce a section of the oil fields into maintenance procedures to avoid a severe shortage in production from some oil reserves, for the purpose of adhering to the current (OPEC) share of reducing production.”
Saadoun pointed out, "The possibility of controlling this matter through production from specific fields, and this depends on the quality of the crude produced, whether it is light, medium or heavy." Saadoun stressed, “Field maintenance work depends on the policy of the Ministry of Oil and what product is required for local consumption or export, and that also depends on market needs.”
Saadoun noted, "It is expected that Iraq will enhance its oil export capacity from the south at a rate of 100,000 to 150,000 additional barrels per day, to reach 3.45 million barrels per day."
Saadoun went on to say, "This will be done in the second half of 2023 through the maintenance of loading docks, which currently number four." For: The American Platts Agency LINK