Wednesday AM Iraq Economic News Highlights 11-23-22

What if the oil disappeared in Iraq?.. An expert expects a devastating scenario for the Iraqi economy

Money and business  Economy News / Baghdad On Tuesday, the economist Nabil Al-Marsoumi presented hypotheses about the end of the oil era in Iraq, and what the Iraqi economy would become after that. Al-Marsoumi said in a Facebook post that the end of the oil era will lead to "a decrease in the gross domestic product by two-thirds and the complete disappearance of Iraqi exports."

He added, "The Iraqi budget does not exceed 10 trillion dinars in size and a complete cessation of government investment," pointing to "the floating of the dinar and the collapse of its exchange rate to catastrophic levels due to the depletion of foreign reserves in the Central Bank of Iraq."

Among the effects of the disappearance of oil, according to the decree, is "the disappearance of the ration card, the suspension of salaries of the social protection network, a huge rise in inflation levels, and a significant rise in electricity and fuel prices after the cancellation of government subsidies."

It will also lead to "a significant deterioration in the purchasing power of those with fixed incomes and an unprecedented rise in poverty and unemployment levels."

He concluded by saying, "Oil covers all Iraqis, not just employees and retirees, and it is a blessing from the Lord of the Worlds, but the defect and imbalance is in not employing part of the oil revenues in diversifying and developing the economy to prepare for the post-oil era."

Views 198   Added 11/22/2022 - 3:03 PM  Updated 11/23/2022 - 1:48 PM

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10 “Scary” Results.. What Would Happen If Iraq Had No Oil?

2022-11-22   Yes Iraq: Baghdad  Oil expert and economist Nabil Al-Marsoumi reviewed today, Tuesday, 10 “terrifying” results if Iraq were without oil.

Al-Marsoumi said, in a clarification seen by “Yas Iraq”, that “an Iraq without oil means a decrease in the gross domestic product by two-thirds, the complete disappearance of Iraqi exports, an Iraqi budget of no more than 10 trillion dinars, a complete cessation of government investment, the floating of the dinar and the collapse of its exchange rate to Catastrophic levels due to the depletion of foreign reserves in the Central Bank, the disappearance of the ration card, a massive rise in inflation levels, a significant rise in electricity and fuel prices, a significant deterioration in the purchasing power of those with fixed incomes, and an unprecedented rise in poverty and unemployment levels.

And Al-Marsoumi added, "Oil covers all Iraqis, not just employees and retirees," noting that "the defect and imbalance is in not employing part of the oil revenues in diversifying and developing the economy to prepare for the post-oil phase."   LINK

Iraq Is Fifth In The World In Oil Reserves, The Cheapest To Extract And The Most Profitable

Shafaq News/ Iraq's oil reserves accounted for 8.4 percent of the world's reserves, in addition to the cheapest extraction, according to the British company BP.

The company said, in a report seen by Shafaq News agency, that "Iraq's oil reserves amounted to 145 billion barrels," indicating that "these reserves constitute 8.4 percent of the world's oil reserves."

And she indicated that "Venezuela ranked first with the largest oil reserves in the world, with an amount of 303.8 billion barrels, which constitutes 17.5 percent of the world's reserves, followed by Saudi Arabia with 297.5 billion barrels, and then Canada came third with 168.1 billion barrels, and then Iran came fourth with 157.8 billion barrels, and Iraq came fourth.

Fifth, then Russia came sixth with 107.8 billion barrels, Kuwait came seventh with 101.5 billion barrels, then the UAE came eighth with 97.8 billion barrels, then the United States came ninth with 68.8 billion barrels, and Libya came in tenth place with 48.4 billion barrels.

She explained that "Venezuela has the largest amount of oil reserves in the world with more than 300 billion barrels in reserve, but most of its oil is in the sea or underground and is considered dense, so the cost of extracting oil in Venezuela's reserves using the technology currently available is too high to be profitable, indicating that the oil reserves in Iraq and Saudi Arabia are close to the surface and on the ground, which makes access to oil more accessible and the extraction process more cost-effective and more profitable.   LINK

Thanks To Oil, The Trade Balance Is Tilted Towards Iraq By 78% At The Expense Of China

2022-11-22   Yes Iraq: Baghdad   The Chinese embassy in Iraq revealed today, Tuesday, the volume of trade exchange between the two countries during the 9 months of this year, as it was found that the balance is tilted towards Iraq by 73%.

The Chinese embassy said in tweets on its official website, which was viewed by “Yass Iraq”, that “the volume of trade exchange between Iraq and China from the beginning of this year until September amounted to 38.82 billion dollars, an increase of more than 44%, which makes Iraq the third largest trading partner with China in western Iraq.” Asia and North Africa".

And she added, "Iraq's exports to China of crude oil amounted to 28.6 billion dollars, an increase of more than 50% on an annual basis, which makes Iraq the second largest supplier of oil to China in the West Asia and North Africa region."

Accordingly, this means that Iraq imported more than 10 billion dollars from China during 9 months, at a rate of more than 1.1 billion dollars per month, while it means that Iraq exported oil to China at a value of 3.1 billion dollars per month, that is, it exported more than one million barrels per day to China. LINK

An Expert Expects Oil Prices To Rise To $400 If Russia Stops Exporting Them

Shafaq News/ The oil expert, Hamza Al-Jawahiry, predicted today, Wednesday, that oil prices will rise to $400 if Russia stops exporting crude oil.

Al-Jawahiry said in an interview with Shafaq News agency, "The American and European threats to dispense with Russian oil and gas are just outbids and procrastination in order to put pressure on Russia, indicating that the only people affected by this matter will be Europe and America only."

He added, "Russia's oil production amounts to more than 11 million barrels, and it exports about 7 million barrels, most of which go to Europe, and this quantity is not small, and this quantity cannot be compensated if Russia stops exporting and from any country, whether it is Saudi Arabia, Iraq, or any Gulf country." If these countries meet, they will only compensate for about half of Russia's exports, stressing that Russia's suspension of oil exports will raise oil prices to more than $400 a barrel.

He pointed out that "the oil markets will suffer from a shortage of supplies, and its impact on prices will be very large, and there will be a major economic collapse in Europe."

He stressed that "some European peoples and governments, in particular, look at their interests, and as long as these remain within the scope of the threat only, they will remain silent, but when their interests are damaged, they will not abide by what some countries take to not stop importing oil and gas from Russia."

The European Union is set to ban imports of Russian crude from December 5 and oil products from February 5.

It is also scheduled to meet the ambassadors of the European Union today, Wednesday, with the aim of approving the price ceiling, and it is expected that the diplomats will also discuss the price level at this meeting, and if they support the new proposal, the European Union and the Group of Seven countries may announce the price ceiling this evening.

However, the European Union eased the terms of the proposed sanctions on Russia by imposing a ceiling on the prices of Russian oil exports by postponing its full implementation and easing basic provisions related to shipping work.   Russia threatened to stop exporting oil to any country that sets a ceiling on the prices of its oil exports.   LINK

The Budget And Article 140 Within Nechirvan Barzani's Talks With Muhammad Shia'a Al-Sudani

Posted On2022-11-22 By Sotaliraq    It was reported that the files of the budget and Article 140 of the Iraqi constitution will be among the discussions of the President of the Kurdistan Region, Nechirvan Barzani, with the Iraqi Prime Minister, Muhammad Shia' al-Sudani.

And that today, Tuesday (November 22, 2022), “the President of the Kurdistan Region will discuss, during his meeting in the capital, Baghdad, with the Iraqi Prime Minister, Muhammad Shia’ al-Sudani, the budget files and Article 140 of the Iraqi constitution.”

And "The President of Kurdistan Region, Nechirvan Barzani, was scheduled to stay for two days in Baghdad, but he will conclude his visit today because of the Dohuk incident."

On the other hand, "the President of the Kurdistan Region, Nechirvan Barzani, is also scheduled to meet with the representatives of the Sovereignty Alliance."

For his part, the advisor in the Kurdistan Region Presidency, Dilshad Shihab, told Rudaw Media Network, "In addition to the three Iraqi presidencies, the President of the Kurdistan Region, Nechirvan Barzani, will meet with the State of Law, Al-Fateh and Victory coalition, Faleh Al-Fayyad and Hadi Al-Amiri, to discuss various issues."

It is noteworthy that the President of the Kurdistan Region, Nechirvan Barzani, arrived in the capital, Baghdad, today, Tuesday (November 22, 2022), on a visit during which he discusses the relations and outstanding files between Baghdad and Erbil and the latest developments in the country, with the presidents of the republic, ministers and other officials in the federal government.

The Kurdistan Region Presidency said in a statement, on Tuesday (November 22, 2022), that “Nechirvan Barzani is visiting Baghdad today, and he will meet with the President of the Republic of Iraq, Abd al-Latif Rashid, Prime Minister Muhammad Shia al-Sudani and President of the Supreme Judicial Council, Faiq Zaidan.”

The statement indicated that Nechirvan Barzani "will meet with senior Iraqi officials, forces and political parties, during his visit today, and will discuss with Iraqi officials in Baghdad the Erbil-Baghdad relations and problems, dialogue and efforts to solve them." LINK

Al-Saffar: Approving The Budget Is An Urgent Necessity, And The Legislative Term May Be Extended To Pass It                                          

Political | 10:27 - 11/23/2022  Baghdad - Mawazine News, the rapporteur of the Parliamentary Finance Committee in the former parliament, Ahmed Al-Saffar, said that the visit of the President of the Kurdistan Region, Nechirvan Barzani, to Baghdad "is not related to the budget only, but rather for the purpose of discussing with the political blocs participating in the government regarding the implementation of the terms of the agreement that was signed and the conclusion of the Sudanese government."

Al-Saffar explained, "These issues are not related to the budget, but rather to the legislation of the oil and gas law, the Peshmerga, the disputed areas, and other matters, for the purpose of ending the outstanding problems that have caused confusion between the region and the federal government for years, and this visit is at a high level to put an end to these problems."

With regard to the budget, Al-Saffar said, "There is an intention of the government to present the budget, and if it is not during the current month, the legislative term will be extended until it is approved because it has become an urgent necessity in light of the absence of the budget for the current year 2022 with a large financial abundance," noting that "The government has started implementing its ministerial platform and government program, and there are serious attempts to finalize the draft budget and submit it to the parliament."

And in the event that the budget is not submitted, Al-Saffar stated in an interview with the official newspaper, "Al-Sabah", which was followed by Mawazine News, that "Parliament will enjoy the legislative recess, and it is possible for the Speaker of Parliament to invite members of Parliament to return during the legislative recess for the purpose of approving the budget due to its importance in facilitating the financial and economic matters of the country." ". https://www.mawazin.net/Details.aspx?jimare=212139

Oil Prices.. Brent Crude Settled Below $89 A Barrel

Economie   2022-11-23 | 01:26   329 views  Alsumaria News – Economy  Oil prices stabilized today, Wednesday, with traders awaiting the plan to cap the price of Russian crude and assessing demand expectations in China, which was hit by the Corona virus.

West Texas Intermediate crude was trading up 1 cent to $80.96 a barrel at 04:13 GMT, after rising more than 1% in the previous session.   For its part, Brent crude fell 3 cents to 88.33 dollars.   LINK

The Decline In The Exchange Rates Of The Dollar In The Iraqi Markets Today

Economie   2022-11-23 | 02:31  4,182 views   Alsumaria News – Economy   Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar on the Iraqi local stock exchange for today, Wednesday.

The selling price of the dollar was recorded at 148,500 dinars per 100 dollars, while the buying price of the dollar was 148,400 dinars per 100 dollars.   LINK

Low Gold Prices In The Local Markets

Economie| 12:03 - 11/23/2022   Baghdad - Mawazine News   The prices of foreign and Iraqi gold decreased, today, Wednesday, in the local markets in the capital, Baghdad, slightly.

And the gold prices in the wholesale markets on Al-Nahr Street in the capital, Baghdad, sold 359,000 dinars per weight of 21 karat gold, and the purchase price was 355,000.

And the selling price of one 21-carat weight of Iraqi gold also recorded a slight decrease at 329 thousand dinars, and the purchase price reached 325 thousand.

With regard to gold prices in goldsmiths' shops, the price of selling a 21-carat Gulf gold weight ranges between 360,000 and 370,000 dinars, while the selling price of an Iraqi gold weight ranged between 330,000 and 340,000 dinars.    https://www.mawazin.net/Details.aspx?jimare=212150