Wednesday Evening Iraq Economic News Highlights 7-12-23
Wednesday Evening Iraq Economic News Highlights 7-12-23
Parliamentary Finance: The Price Of The Dollar Will Decrease After The Implementation Of The Budget
Information/Baghdad.. A member of the Parliamentary Finance Committee, Jamal Cougar, confirmed, on Wednesday, that the price of the dollar will decrease against the dinar, after implementing the provisions of the federal general budget.
"The Iraqi dinar will gradually recover and decrease dramatically against the price of the dollar," Cougar said, pointing out that "the government will have to sell large quantities of dollars to secure the salaries of employees in dinars."
He added, "The exchange rate of the dollar in the parallel markets depends on the principle of supply and demand, and the start of implementing the 2023 budget will mean the release of large sums of money that will lead to a greater increase in the purchase." of the dollar.”
He pointed out that "after the implementation of the budget, there will be stability in the dollar exchange market and its arrival at the official price specified by the Council of Ministers."
A member of the Parliamentary Finance Committee, Representative Mudar Al-Karawi, confirmed, in a previous statement to Al-Malooma, that there is a road map of 4 axes to curb the parallel market for selling the dollar. LINK
A Legal Expert Comments On The Federal Court's Decision To Suspend Work On Some Budget Articles[/Rtl]
Policy 2023/07/12 number of readings: 180 Baghdad-Iraq today: Today, Wednesday, the legal expert, Ali Al-Tamimi, commented on the state order to suspend some articles of the Federal General Budget Law.
Al-Tamimi said in a press interview, "After the state decision issued today by the Federal Court to suspend the work of six articles that were challenged by the government, the rest of the articles of the budget law have become effective and applicable."
He added, "The delay in implementing the articles and paragraphs of the budget after its publication in the Official Gazette was due to waiting for the Federal Court's decision regarding the issuance of a state decision on the contested articles by the government."
And the Federal Supreme Court issued, earlier today, Wednesday, a state order to stop some articles of the budget law A legal expert comments on the Federal Court's decision to suspend work on some budget articles LINK
The Supreme Court In Iraq Issues An Order To Stop Some Articles Of The Budget Law
WED, 07-12-2023, Tayseer Al-Asadi Today, Wednesday, the Federal Supreme Court in Iraq issued a state order to suspend some articles of the budget law.
The state order included stopping the implementation of the articles: Article ((28/ Fourth: A-B), (57/ First-C), (65/ Second), (70/ Second), (71) and (75) of Law No. ( 13) for the year 2023 (the federal general budget of the Republic of Iraq for the fiscal years (2023 – 2024 – 2025) until a decision is made on the constitutional case filed before this court to challenge its constitutionality, registered in the number (153 / federal / 2023).
Earlier, the Iraqi Prime Minister, Muhammad Shia' al-Sudani, requested a state order against Parliament Speaker Muhammad al-Halbousi regarding the above articles, according to the Federal Court's statement.
The Iraqi Budget Law for the years 2023, 2024 and 2025 consists of 78 articles.
On March 13, 2023, the Iraqi Council of Ministers approved the draft budget law and referred it to the House of Representatives for a vote on it.
On June 12, 2023, the Iraqi Council of Representatives approved the draft federal budget law for the fiscal years (2023, 2024, and 2025). The value of the 2023 budget is 197 trillion and 828 billion Iraqi dinars, with a total deficit of 64 trillion dinars.
The Iraqi government relies on international loans and aid to cover the budget deficit, and in the event of an increase in oil prices, 70 percent of the revenues will be allocated to cover the deficit.
The largest budget revenue depends on oil exports, which must export 3.5 million barrels a day, including 400,000 barrels from the Kurdistan Region, which is estimated at about $70 a barrel.
http://non14.net/public/158427
Fuad Hussein: Iraq Will Be A Gas Producer Within The Next 3 To 4 Years
Energy Economy News _ Baghdad Foreign Minister Fuad Hussein said that Iraq has been burning gas for more than 70 years in oil fields and wasting it. In this government, we signed a contract with Total to isolate associated gas from oil. Besides, there are large gas fields in Iraq which will become in another 3 to 4 years a gas producing country.
Hussein indicated, in a televised interview, followed by "Al-Iqtisad News", that the contract concluded with Total Energy, worth $ 27 billion, to produce gas from the gas fields in Iraq, in order to transform it from an importing country to a gas-producing country.
He continued, "Iraq relies on importing gas from Iran to produce 43% of its electricity. The regions of Khanaqin and Diyala depend entirely on Iranian gas to produce electricity, and 3 other important Iraqi electricity production stations depend on Iranian gas, which means that 43% of Iraqi electricity is imported." From Iran, and if it stops exporting gas, processing hours in Iraq will decrease by about 8-9 hours.
Fouad Hussein went on to say: "When we decided to rely on our gas and invest in this sector, Total Energy applied for work, and negotiations began during the reign of Mustafa Al-Kazemi's government, but problems were marred. Now those problems have been resolved, and the company will start working in the field of gas production, Whether associated or from gas fields.
Regarding the oil and gas law, Hussein said, "In the agreement that we signed with the Iraqi political forces to form the government, we included laws that have priority, one of which is the general budget law, the second is the oil and gas law, then the Federation Council and other laws. We have finished the budget law, and we must focus on the oil law." And gas now, and negotiations will begin to formulate this law.” Views 28 07/12/2023 https://economy-news.net/content.php?id=35124
Rights: America Is Accused Of Besieging Iraq Economically For 20 Years
Information / Baghdad.. A member of the Human Rights Movement, Hussein Ali Al-Karawi, accused, on Wednesday, the United States of America of monopolizing energy and depriving the center and south of electricity to stir up the street against the government, indicating that America is preventing Iraq from linking to the Belt and Road Initiative.
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Al-Karawi said in an interview with Al-Maalouma Agency, "The United States of America continues to pressure towards preventing Iraq from obtaining electricity and linking it to the Belt and Road Initiative."
He added that "many international companies are ready to provide Iraq with electricity, including Siemens," noting that "America, since 2003 until now, has contributed twice as much to Iraq."
He pointed out that "the United States of America is besieging Iraq economically," calling on parliament and the government to "issue a firm stance on America's policies."
The Oil, Gas and Natural Resources Committee called for international action to stop America's influence and open the way for Iran to pay off Iraq's debts. LINK
An Iraqi Politician Warns Of The Dangers Of "Circumventing" US Sanctions Against Iran
Shafaq News/ The Iraqi politician, former MP Mithal Al-Alusi, warned today, Wednesday, of the danger of the Iraqi government's "circumvention" of the US sanctions directed against Iran.
Al-Alusi told Shafaq News agency, "The issue of the clearing agreement for Iraqi oil in exchange for Iranian gas may be a kind of circumvention of the US sanctions directed against the Iranian Republic," warning that "this matter may have serious economic repercussions."
He added, "The Iraqi government is required to be careful in dealing with trade issues with Iran, due to the presence of an American veto," pointing out that "any violation of this veto is a violation of US sanctions against Iran."
He explained that "circumventing the US sanctions directed against the Iranian Republic by the Iraqi government may push Washington to include Iraq with some commercial and financial sanctions," stressing that "the interest of Iraq and the Iraqis must be given priority over Iran's economic interest, which is largely economically besieged through US sanctions." .
And yesterday, Tuesday, Prime Minister Muhammad Shia al-Sudani announced, in the evening, that an Iraqi-Iranian agreement had been reached to solve the electricity crisis by exchanging gas for black oil, and said that the US Treasury’s measures prevented Baghdad from paying the money owed to Tehran.
And Al-Sudani said in a televised speech, "The US treasury's procedures are complex, and we were able to transfer one billion and 815 million euros to Iran," adding that we were unable to obtain US approval in order to transfer Iran's money.
Al-Sudani also confirmed, "The release of 10 million cubic meters of Iranian gas to Iraq to supply the country's electrical stations."
Several days ago, Iraq witnessed a noticeable decline in the supply of electricity due to the decrease in the supply of Iranian gas feeding power plants.
This comes at a time when the governing coordinating framework in Iraq held the US administration responsible for the decline in the provision of electric power. LINK
America Supports The Iraqi Energy Deal With "Total" And Considers It A "Giant Step"
2023-07-12 04:03 Shafaq News/ The US State Department considered, on Wednesday, the deal concluded by the Iraqi government with "Total Energies" as a "giant step" towards energy independence and enhancing its security in the country.
State Department spokesman Matthew Miller said in a statement today: We support Iraq's efforts to achieve energy independence and improve service delivery.
He added that the Iraqi energy deal with Total Energies is a giant step towards enhancing energy security in Iraq and providing economic opportunities for all Iraqis.
The Iraqi Oil Ministry and Total recently signed a $27 billion contract for four oil and gas projects and renewable energy projects. LINK
"For A Quarter Of A Century" .. Iraq Breathes A Sigh Of Relief, According To The Statement Of The Secretary Of The Organization Of Petroleum Exporting Countries
Baghdad Today - Follow-up The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, said, on Tuesday, during an oil and gas conference in Nigeria, that global demand for energy of all kinds is expected to rise by 23 percent until 2045.
Iraq is the second largest country among the members of the organization in the export of crude oil and depends on its imports by more than 90%.
Oil Minister Hayan Abdul-Ghani said at a meeting in Vienna last week that "5.400 million barrels of oil per day is Iraq's current production capacity, and we look forward to raising it to 6 million barrels," referring to "144.5 billion cubic meters of oil reserves and more than 133 trillion cubic feet of gas."
He pointed out that "the voluntary reduction of oil production contributes to strengthening the stability of the global energy market," stressing that "OPEC + decisions guarantee the interest of the producer and consumer and market balance."
Executives in the oil sector and other officials from OPEC have repeatedly indicated the need to continue pumping investments into the oil sector, warning that stopping it will lead to higher prices.
Al-Ghais also said that calls to limit new oil projects or stop financing them are unrealistic and unwise, but acknowledged the need to use technology to tackle persistent fossil fuel emissions.
He added, "The global demand for energy is expected to increase by a significant rate of 23 percent in the period until 2045, which means that we will need all forms of energy."
He also said, "We will need innovative solutions such as carbon capture and storage, hydrogen projects, as well as the circular carbon economy, which received positive support from the G20."
He added that the global oil sector needs to invest $12.1 trillion during the same period, but it is not yet on its way to reach that level of investments.
Sources close to OPEC said that the organization is likely to maintain its optimistic forecast for oil demand growth for next year in a report to be published this month, as it expects demand to slow compared to the current year, but it will remain above average.
OPEC's forecast for 2024 is likely to be lower than the growth it expects for this year, of 2.35 million barrels per day, or 2.4 percent, a remarkable rate as the world emerges from the emerging coronavirus pandemic. LINK