Thursday Morning Iraq Economic News Highlights 6-15-23

Adviser To The Prime Minister Suggests A Gradual Decline In The Dollar

Economical  2023/06/15  Mazhar Muhammad Salih, the financial and economic advisor to the Prime Minister, suggested yesterday, Wednesday, that the exchange rate of the dollar would gradually decline with the approval of the budget.

Saleh said, in a press statement: "The delay in enacting the budget law delayed fixing the new official price and thus was reflected in the exchange rate of the dollar, in addition to the increased demand for the dollar and the high spending in the Iraqi currency by citizens, merchants and the government."

He added, "Iraq currently has very good hard currency cash reserves, which are at the highest levels in Iraq's history."

Saleh pointed out that "after voting on the budget law, and fixing the official price at (1300), the coming days will witness a gradual decrease in the exchange rate of the dollar in the parallel market, until the official price is reached."

The exchange rates of the dollar against the Iraqi dinar are witnessing a significant increase in light of a battle waged by Prime Minister Muhammad Shia al-Sudani to reduce prices. 

 locally.    https://alsabaah.iq/79055-.html

Hammam Al-Shamaa: The Price Of The Dinar Will Decrease More Against The Dollar In The Coming Months

Posted On2023-06-15 By Sotaliraq   Economic expert Hammam al-Shamma saw that the exchange rate of the Iraqi dinar will decrease against the dollar during the next six months, noting that the central bank will have to print quantities of the Iraqi currency to secure the government's operating budget.

Al-Shamma said: “It is assumed that there is no relationship between the budget and the change in exchange rates, but the exchange rate is now subject to the restrictions imposed by the US Federal Reserve with the Central Bank, in establishing a platform with specifications and conditions, so that it affects the amount of foreign currency sold, whether in cash.” or in the form of transfers.

It is noteworthy that the Iraqi Council of Ministers approved on Tuesday (February 7, 2023) the decision of the Board of Directors of the Central Bank of Iraq to adjust the exchange rate of the dollar against the dinar, at the equivalent of 1,300 dinars to one dollar, according to a statement issued by the media office of the Prime Minister, Muhammad Shia’ al-Sudani.

Al-Shamaa explained, “The talk about the impact of approving the budget on the exchange rate is inaccurate, but approving the budget in light of the restrictions imposed by the US Federal Reserve will lead to a decrease in the exchange rate of the dinar and an increase in the dollar, despite the Central Bank’s measures to try to prevent a decrease in the exchange rate of the dinar.”

The Central Bank is required to provide 12.5 trillion per month   LINK

Experts: The Budget Raises Concerns About The Country's Economic Future

2023.06.14 - Baghdad - Nas   Iraq's passage of the largest budget in its history has raised fears among experts, who say it will take the country's expenditures to the brink of collapse, while government supporters insist this budget law is vital to mitigating a long post-election political debate that has led to entire years without budgets. The last one is in 2022. 

Iraq had previously spent 2014 and 2020 without a budget, for reasons also due to sharp political divisions. 

A report by (The National) news website, translated by (Al-Mada), indicated that “despite the passage of 18 months without a budget amid record oil revenues and legislation restricting government expenditures to levels lower than the previous budget, the Iraqi parliament took four consecutive sessions in order to pass this year’s budget.” ». 

  The report added, "Part of the reasons for the delay were due to disagreements between different political blocs, most of which are about the Kurdistan region's share of the budget, the rights of certain other provinces within the region and how to market their oil exports." 

  He pointed out, “The budget, which amounts to $152 billion, of which 12.6% is allocated to the Kurdistan region, has raised concerns about whether oil prices fall below $70 a barrel, which is the expected average price per barrel over three years according to which the budget was calculated, then it will The state will not be able to fulfill what was approved in this agreement. 

  The report pointed out, "The International Monetary Fund had even worse predictions regarding the oil price rate that it relied on in calculating the budget of Iraq, a country whose economy depends entirely on oil." 

And he continued, "The Monetary Fund confirmed that Iraq needs an average price of a barrel of up to 96 dollars, and the Brent crude oil benchmark price index for Monday closed at 72 dollars a barrel." 

 "The budget is based mostly on operating expenses, and there is not enough share of the budget allocated for investment," says Sajjad Jiyad, a political analyst and fellow of the American Century Foundation Institute. 

Jiyad denied, "The existence of real allocations for investment in the budget, as it focused only on expanding what was in previous budgets and left only a few billions for investment." 

Jiyad indicated, "Even if the government was able to implement 80% of the budget items, it would not increase oil revenues, but this would lead to the creation of new job opportunities." 

And the report continues, "Iraq suffered from low executive budget allocations, which impeded spending on vital reconstruction projects even during times of high oil prices."    

The report noted, "The government must instead increase investment spending and reduce part of other expenditures in order to mitigate a high deficit estimated at $49 billion."    

 And Jiyad goes back to saying, "If this is not done, and if oil prices fall at the time, we will not have a real way to mitigate that deficit unless we reduce those expenses."    

For his part, the government advisor for financial affairs, Mazhar Muhammad Salih, said in an interview with the Associated Press, translated by Al-Mada, that “the new budget will be a cause for concern, as it depends mainly on oil revenues, and if oil prices fall, the size of the deficit will It will increase, which will force the government to borrow. It is a dangerous expectation that will lead to debt problems.”     

In addition, Mohsen al-Mandalawi, First Deputy Speaker of Parliament, said, "It is vital that we reduce spending and increase non-oil revenues to enhance the state's imports in the sectors of agriculture, services and reconstruction."    

While the Prime Minister's advisor for foreign relations, Farhad Alaeddin, stated that "the budget law is vital for the implementation of the government program and the projects it includes."    

And Aladdin continued, “The budget law this time provides continuity and prevents any obstruction to government performance. The government will be able to start implementing infrastructure projects and transform Iraq into one of the largest workshops in the region ».    

For Prime Minister Muhammad Shia al-Sudani, according to the report, “the budget that the Council of Ministers voted on last March 13 prioritizes the basic needs of Iraqi citizens and their families, and aims to meet their aspirations for government services, construction projects, and infrastructure.”    

And the report went on, “Al-Sudani said that the budget addresses the phenomenon of recurring projects’ delay or failure that has accompanied governments over the past years. This vision also confirms the reduction of operational spending, the development of non-oil revenues, and the support of the private sector.”    

Translated by: Hamid Ahmed _ from: (The National) website and (Associated Press) _ Al Mady 

https://www.nasnews.com/view.php?cat=109141

The high price of the dollar against the dinar in Baghdad and Erbil

2023-06-15 02:14   Shafaq News/ The exchange rates of the US dollar against the Iraqi dinar increased today, Thursday, in the main stock exchange in the capital, Baghdad, and in Erbil, the capital of Kurdistan Region.

Shafaq News agency reporter said that the central Al-Kifah and Al-Harithiya stock exchanges in Baghdad recorded 147,150 Iraqi dinars for 100 US dollars this morning.

While the prices recorded yesterday morning, Wednesday, 146,750 dinars, compared to 100 dollars.

Our correspondent indicated that the buying and selling prices increased in the exchange shops in the local markets in Baghdad, where the selling price reached 148,250 Iraqi dinars per 100 US dollars, while the purchase price reached 146,250 Iraqi dinars per 100 US dollars.

As for Erbil, the capital of the Kurdistan Region, the price of the dollar also recorded an increase, as the selling price reached 147,400 dinars against the dollar, and the purchase price reached 147,350 dinars against 100 dollars.   LINK

After Completing The Budget.. 5 Laws On The Agenda Of The New Legislative Term

Policy  |Yesterday, 22:4  Baghdad today – Baghdad  Today, Wednesday, independent MP Hussein Arab revealed the most important laws that Parliament will enact with the start of its new legislative term, and after the completion of the budget.

Arab told "Baghdad Today" that "there are many important laws awaiting their enactment in the House of Representatives, and the legislative chapter of Parliament will be important to legislate these laws, and there is a consensus of representatives to make the new chapter the chapter of legislation of suspended laws."

And he indicated that "one of the most important laws that Parliament will enact with the beginning of its new legislative term is (the law for people with disabilities, the labor law, the national security law, the intelligence law) in addition to amending the drug control law, and other important laws that directly affect the citizen."

And the House of Representatives finished voting on the budget law for three years two days ago, after about 3 months of discussions and discussions.   LINK

For The Second Day.. The Rise In Dollar Prices Against The Dinar In Iraq

THURSDAY, 06-15-2023, KARRAR AL-ASADI  Today, Thursday, the exchange rates of the US dollar rose against the Iraqi dinar, on the main stock exchange in the capital, Baghdad, for the second day in a row.

The central Al-Kifah and Al-Harithiya stock exchanges in Baghdad recorded 147,150 Iraqi dinars for 100 US dollars this morning.

While the prices recorded yesterday morning, Wednesday, 146.750 dinars, compared to 100 dollars.

The buying and selling prices rose in exchange shops in the local markets in Baghdad, where the selling price reached 148,250 Iraqi dinars for every 100 US dollars, while the buying prices reached 146,250 Iraqi dinars for every 100 US dollars.    https://non14.net/public/157783  

The World Bank Is Financing The Comprehensive Development Plan For Baghdad 2030

Money  and business  Economy News _ Baghdad  The Baghdad Municipality is heading to implement the project of the comprehensive development plan for the city of Baghdad until 2030, funded by the World Bank, after the completion of its designs by local and foreign companies. 

The official spokesman for the Municipality, Muhammad Al-Rubaie, said in an interview with the official newspaper, followed by "Al-Iqtisad News", that the plan is an official document that included modern designs for the capital, because of the presented basic plans approved since 1973. 

He added that the plan will work to renew Baghdad by adopting planning modernization and not adopting traditional concepts, supporting and securing interactive partnership between the public and private sectors, economic diversification, preserving the city's identity, protecting heritage and tourist buildings, and preserving the environment.  

Al-Rubaie indicated that the new plan will take into account the housing crisis, future needs, and the country's transition from a centralized economy to a decentralized one, while addressing past problems, raising the level of all infrastructure services, transportation, and various social services, and displacing harmful land uses outside urban areas, in addition to developing comprehensive details for the various projects with A phased implementation plan for projects until 2030. 

Views 84  06/15/2023 - https://economy-news.net/content.php?id=34755

Economic Integration} Regional.. Iraq's Gateway To Stability

Iraq  2023/06/14   Baghdad: Haider Al-Jaber   Everyone agrees that the economy is the main driver of politics, and that political understandings are the result of a previous economic understanding. Observers summarized Iraq's crises as primarily economic, and that obstructing the provision of services is behind political differences.

The Director of the Center for Strategic Thinking, Dr. Ihsan Al-Shammari, supports the idea of ​​regional economic integration away from political differences, stressing that it is a global positive trend.

Al-Shammari said to "Al-Sabah": "Economic integration according to the new philosophy of foreign policy that relies on networking economic, commercial and investment interests to create alliances between countries; contributes greatly to mitigating political intersections between countries," and pointed to the direction of the region.

And he indicated that "the understandings that took place recently are political and will be further strengthened if there is economic integration among the countries of the region as a whole." From the countries of the region towards groups such as the (Group of Twenty), (Brexit) and (Shanghai), and this economic integration greatly enhances the creation of space for understandings, and the economy has a major role in drawing up foreign policy for most countries.

For his part, academic and writer Dr. Mujasha' Al-Tamimi stressed that "the economy is affected by politics," calling on the Iraqi government to invest in the opportunity for calm in the region to address many of the economic problems it suffers from.

Al-Tamimi told Al-Sabah: “Economic integration is greatly affected by political intersections, because political stability affects greatly and directly in developing the economic movement.” It may have the most prominent and fastest impact, not only in the two countries, but also in the economies of the Gulf region and the Middle East."

Al-Tamimi called on the Iraqi government to "invest the opportunity to address many of the economic problems that Iraq's economy suffers from, and to reactivate the cooperation agreements that Iraq signed, whether with Tehran or Riyadh and others in the field of economy, trade and investment, because the economic impact is the most rapid and clear in the absence of political intersections.

He added, "We need economic stability because it has become clear the direct impact of integration in the region, which will be an important entry point for achieving political stability, and vice versa as well." He pointed out, "the importance of economic stability, which stems from the fact that it leads to achieving full employment of the available economic resources (material and human). ), and avoiding major changes in the general level of prices while maintaining an appropriate real growth rate in the national product.

In turn, political analyst Hamid Al-Kaabi preferred economic integration with the presence of a suitable environment, stressing that this integration has become an urgent international necessity.

Al-Kaabi told Al-Sabah: “One of the axioms of economic work is that work is not integrated except in light of the existence of an appropriate, consistent and harmonious environment, otherwise the economic work will be as if it passes through a minefield.”

He added that “talking about integration is one thing, and individual work is something else. In light of the data of economics and the data of technological progress that made the world a big house and not a village, we see integration has become an urgent necessity that no country is indispensable for

. For China to be one of the leaders of the new world, and we see clearly that China needed to integrate with dozens of countries, but rather strives to complement the infrastructure of other countries for its strategic interest. Projects stop integrating because of political incompatibility or political difference.

Al-Kaabi gave an example of the Syrian war, "which has become a realistic example that the supply of natural gas to Europe, and due to the lack of agreement between the parties, led to the outbreak of the Syrian war, and therefore, due to the failure to overthrow the regime, led to the cessation of the gas project to Europe," and stressed that "The path of integration passes through understandings and partnerships. Otherwise, individual action remains the master of the situation in this world."

Edited by: Muhammad Al-Ansari   https://alsabaah.iq/78993-.html