Zig’s Place  Chat and News Sunday AM 6-6-21

Zig:  Welcome to zig's place, a chat room for dinar speculators and others....discuss any topic that you wish here

Butterfly   Mazhar Muhammad Salih: The rise in oil prices .. additional income to cover the deficit and compensation for borrowing

Sunday 06 June 2021 11:23 |...Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, confirmed that the rise in oil prices is an additional revenue to cover the deficit and compensate for internal and external borrowing.  He told the National Iraqi News Agency ( NINA ): The differences in the prices of Iraqi sourced oil, whose prices exceed the price specified in the federal general budget of 45 dollars per barrel, is considered an additional cash income.

Saleh added that: this additional revenue flows into the balances of the federal general budget to fill the deficit gap in the annual budget, estimated at about 29 trillion dinars.

He continued: This additional income is considered a compensation for the planned borrowing, in whole or in part, and a substitute for any debts, whether internal or external.

Saleh pointed out that: indicators up to the moment show that these differences will cover, if oil prices continue with this improvement, about 80% of the deficit gap.

And the price of Basra oil recorded a remarkable increase in the recent period, exceeding $ 70 per barrel.

butterfly   After the lifting of sanctions.. the Minister of Transport announces the raising of the Iraqi flag on the Iraqi marine tankers

Sunday 06 June 2021 14:47.......Minister of Transport Nasser Hussein Bandar Al-Shibli announced today, Sunday, the raising of the Iraqi flag on the Al-Qurna and Al-Asma'i tankers.

The Minister of Transport said in a press conference held at the port of Umm Qasr: "After strenuous efforts of discussions and negotiations to achieve ways to comply with the International Ship and Port Security Code (ISPS code), the sanctions imposed on Iraqi shipping carriers during the rule of the former regime were lifted, and after the approval of international maritime organizations, the sanctions were lifted. Raising the Iraqi flag high on the Iraqi conveyors.

The minister added: "The Al-Asma'i and Al-Qurna tankers, owned by the General Company for Maritime Transport, were transferred from the Jordanian registration port to the registration port in Basra, and the Iraqi flag was raised on them after the completion of docking, maintenance, and the tanker's validity for commercial work, documented by international certificates and binding for commercial work, and according to the requirements of the flag state (Iraq)." .

butterfly   Bafel Talabani discusses with Al-Maliki the latest developments in the political situation in Iraq and the Kurdistan Region

Sunday 06 June 2021 13:25........The joint co-chair of the Patriotic Union of Kurdistan, Bafel Talabani, discussed with the head of the State of Law coalition, Nuri al-Maliki, the latest developments in the political situation in Iraq and the Kurdistan region.

And the Kurdistan Patriotic Union website stated today, Sunday, that, as part of his visit to the capital, Baghdad, Bafel Talabani, the co-chair of the Patriotic Union of Kurdistan, and his accompanying delegation, Nuri al-Maliki, head of the State of Law coalition, met

with al-Maliki. During his visit to the capital, Baghdad, he will also meet with a number of political parties

butterfly   2021-06-06 06:10  Shafaq News/ The Central Bank of Iraq sales of Foreign currency jumped today, Sunday.  

Shafaq News Agency correspondent said that the CBI sales at the Foreign currency auction reached 207,146,525$ at a cut-off price of 1460 dinars, compared to 197,830,000$ last Thursday.

Our correspondent explained that 18 banks and 12 exchange companies cashed 26,700,000$, while 180,446,525$ went to boost funds abroad in the form of transfers and credits, with 34 banks meeting those requests.

butterfly   2021-06-06 05:28  Shafaq News / The global government income from oil and gas taxation fell to a multi-year low in 2020 of around $560 billion, as production and prices shrunk. Before Covid-19, oil and gas taxes usually exceeded the trillion-dollar mark. Petrostates will miss these former glories, a Rystad Energy report projects, as the accelerating energy transition will cause this source of state income to shrink and never again exceed or meet $1 trillion.

2021 will be the last year global oil and gas taxes will approach the trillion-dollar mark, reaching about $975 billion according to Rystad Energy estimates, assisted by high oil prices. From 2022, taxes will be limited to the low $800 billion range, only ticking up in the early 2030s to about $900 billion, before starting their final and uninterrupted decline to as low as $580 billion in 2040 and about $350 billion in 2050.

“As the energy transition ramps up, countries highly dependent on tax revenue from the upstream industry may have no other option than to diversify their economy to sustain state budgets. This is clearly the rational course for them to follow, but there are inherent challenges in the form of insufficient economic and legal institutions, infrastructure and human capital,“ says Espen Erlingsen, head of upstream research at Rystad Energy.

The earlier the energy transition risks are realized the better they can be addressed. Structural changes will be crucial to stabilize petroleum-reliant economies and avoid geopolitical instability as the global energy systems shift onto a sustainable pathway, Erlingsen adds.

butterfly  Using Saudi Arabia as an example, we see that about half of the government take is at risk towards 2050, while total tax income from oil and gas made up 27% of the country’s gross domestic product (GDP) in 2019.

Algeria, Iraq, Kuwait and Libya – all of which are heavily dependent on tax revenue from the upstream industry – all garnered around 40% of GDP in 2019 from oil and gas tax revenue. In these countries, about 50% of the government take is at risk, meaning that this group is the most exposed to revenue risk as a result of the energy transition.    Source: Rystad Energy

butterfly  2021-06-06 02:45 Shafaq News/ The Dinar/Dollar exchange rates rose in Baghdad and Erbil today, Sunday.    Shafaq News Agency correspondent said that Al-Kifah and al-Harithiya Central Exchanges are trading the 100 US dollar at 149600 Iraqi Dinars.

Our correspondent added that today's selling and buying prices rose to 150000 and 149000 dinars per 100 dollars in the local markets.

In the capital of the Kurdistan Region, Erbil, the US buying and selling prices rose to 149700 and 149500, respectively.

butterfly   2021-06-06 07:39  Shafaq News/ The Kurdistan Regional Government hoped that the federal government would send the region's share of the financial budget for 2021.

Government spokesman Gotiar Adel told reporters that two important files were discussed during the KRG delegation's visit to Baghdad; the first concerns oil revenues produced in the region, while the other concerns the federal oil revenues in general.

Adel indicated that part of the oil revenues agreement between Erbil and Baghdad has been put into force.

butterfly   2021-06-06 05:42   Shafaq News/ The Iraqi Ministry of Health-the State Company for Marketing Medicines and medical supplies announced today, Sunday, receiving a new batch of Pfizer's COVID-19 vaccine.

The company said that a fleet of refrigerated trucks loaded with vaccine boxes moved towards all Iraqi governorates, including Kurdistan Region.

It is worth noting that the first batch of the Pfizer’s vaccine arrived in Iraq on April 11.

butterfly   2021-06-05 11:38

Shafaq News/ Kurdistan Parliament rejected the war option, calling on all parties to distance their conflicts from the Kurdistan Region territories and preserve its sovereignty.

In a statement, the Parliament's Presidium condoled the death of five Peshmerga members in an PKK ambush in Amedi district, wishing a speedy recovery for the wounded fighters .

The statement called on the PKK and Turkey to distance the Kurdistan Region from their wars, resort to peaceful political solutions, respect the institutions of the Kurdistan Region and preserve the sovereignty of the Kurdistan Region and Iraq.

Earlier today, the Peshmerga Affairs Committee in Kurdistan Parliament said in a statement, "The Workers' Party has become a threat to the Kurdistan Region under the pretext of the war with Turkey, while young men from the region were martyred many times. This conflict has become a reason for evacuating and destroying hundreds of villages in the border areas."

The committee called on the party to relocate their conflict in the Turkish territories, not endanger the region's gains and sovereignty, and respect its borders, security, and stability.

The Ministry of Peshmerga in the Kurdistan Region confirmed earlier today that the Kurdistan Workers' Party targeted the Peshmerga forces in Mount Matin in Duhok Governorate, causing five deaths and four injuries among the Peshmerga forces, and the death of three PKK fighters.

BobbyC   Iraq’s economic outlook is set to improve in line with the global oil market, according to the World Bank's latest Iraq Economic Monitor for spring 2021.

BobbyC   The fiscal deficit is predicted to go down to 5.4% of GDP this year, but the bank cautioned that an expanding budget due to structural problems such as the public wage and pension “rigidities” remain unaddressed.

BobbyC   Aspects of Iraq’s fiscal outlook threatening this “cautious improvement” remain Iraq’s dependency on oil; continued underinvestment; weak execution of the public investment budget; an unfavourable business climate; the potential for further lockdowns; and a possible deterioration in security conditions.

BobbyC   The bank sees the fiscal reforms included in the government’s recent White Paper as a way forward – even though those reforms have been watered down and only partially implemented.

BobbyC   The White Papers are amazing

Dave   Yes the White Papers........ a good fiction,,,,  the sci-fi of today can be tomorrows Reality........

Dave   Same as CBI's Delete 3 Zero Project from a few yrs back.....

BobbyC  I agree. Iraq has had every opportunity, beginning with the 1st IMF SBA under Shabibi, to correct it's ways. What I do is look at these documents, including Iraqi Vision 2030, and hope it plays out numbers wise. Once we see those favorable numbers, we'll see delete the zeros

Dave   Its all about the rampant corruption fer me......

BobbyC   That's part of those numbers as far as Transparency International. Also plays a part in every other number I look at, Ease of Doing Business being a big one

Dave   yeah moving forward would require greater Transparency.......

BobbyC   100%

Dave   at a cross roads fer awhile now.....

BobbyC   Yeah the White Papers detail that for sure. The 1st half explains how Iraq got to where they are now. The 2nd half details their way out of this mess. Problem is Parliament watered it down in the Budget

Dave   Always had a supplemental budget........no changes.....always a plan to just eke it out.....The wealtiest Politicians in the World happen to live in Iraq...."Where did you get That"..........they used to say........

Dave  Protesters managed to change leadership not long ago.....TILL...nowhere.....have a White Paper though.

Dave   Gloomy day here....Awaiting butterfly to post the Article on Maliki getting hauled off in chains....

BobbyC   That comes out Tuesday lol The Kurds just met with him regarding state of affairs. Powerful man

Dave   65 billion usd.....

BobbyC  See if this so called Recovery Law gets passed and implemented to it's fullest. DOubt it but ya never know

Dave   Talabanis Barzanis uber weathy too    Barzani 35 billion usd

BobbyC  Maybe they should apply the Financial Disclosure to all Politicians instead of just a few members of Parliament

Dave   Over 1 Quadrillion IQD.......vanished

BobbyC   Guess that's more than the reported 50 trillion outside the Banks lol

Dave   BobbyC 50 trillion......Kap mentioned 35 T yrs ago.......

BobbyC   * even at 35T that's asking a lot to cover for the CBI   Covers our debt here in the US

Dave  BobbyC COI looking at 150 billion usd in frozen accounts as we speak....

BobbyC   Now if Kap mentioned that yrs ago, that leads credence to the possible 50

Dave   BobbyC AUCTIONS!!@!!   credence to Kap......LOL

BobbyC  Yep that's under the Recovery Law. Lots of complexities to that. You don't just go to a Bank and ask for it …     credence to the possible 50, not Kap per se

Dave   CBI sold over 200Million usd just the other day......   300 billion IQD ish.....

BobbyC  And the story continues. But we should see a revalue by the end of the month because they've (gurus) all been put on a gag order. So exciting lol

Dave missed that boat.....

BobbyC  I don't even want on that miserable boat. Rough waters

Dave   no 800# fer me .....

BobbyC   Time to check the Pork Belly. Stay safe

Dave   yummy...........BBQed...i hope....

Zig   If you access this chat via https://my.cbox.ws/ZIGPLACE   You can make the box much bigger by clicking this link  ZIGPLACE - Cbox