Iraqi News Highlights Thursday AM 10-20-22
Tlm724 Administrator Bondlady’s Corner
The Rise In The Price Of Oil Is A Result Of The International Monetary Fund’s Expectations Of Weak Global Economic Growth
Economist to / NINA /: Thursday 20 October 2022 16:19 | Economic Number of readings: 76
Baghdad / NINA / – The economic expert, Jalil Al-Lami, confirmed: The rise in the price of oil is a result of the International Monetary Fund’s expectations of weak global economic growth.
He told the National Iraqi News Agency ( NINA ): After the expectations of the International Monetary Fund and other international institutions. Regarding the decline in the growth of the global economy during the years (2022) and (2023) the “OPEC Plus” group accelerated several measures, the first of which was to reduce its oil production by about (2 million) barrels starting from November (2022) compared to what was required for production in August. 2022).
Al-Lami added: The OPEC Plus measure raised oil prices in the international market to reach (93.3 dollars) per barrel for Brent crude. And about (87.7 dollars) a barrel of US crude. As a first step, indicating that this rate is likely to lead to the return of oil prices again to the ceiling of (100 dollars) per barrel. Or exceed this ceiling, especially with the onset of the winter season in Europe.
He explained that there is a set of measures that countries can take from them. Rationalizing energy consumption and raising the cost of goods and services.
Al-Lami pointed out that the Arab countries, especially oil-importing countries, would be the most affected in terms of rising prices. As well as in terms of economic crises that will worsen even more, which were contemplating financing from the International Monetary Fund. / End 3
Iraq Is Unable To Pay Its Full Debts Despite The Great Financial Abundance
Posted On20-10-2022 By Sotaliraq Baghdad/ Saif Abdullah Since the rise in oil prices during the year 2021 until now, Iraq has witnessed a large surplus of funds as a result of the escalating oil imports, while the government confirms its inability to repay the debts in full for several reasons, amid a parliamentary emphasis on money control to ensure the achievement of the government program and benefit from these surpluses.
In this regard, Mazhar Muhammad Salih, the financial advisor to the Prime Minister, confirmed that it is not possible to pay the debts in full from the financial abundance due to oil revenues at the end of the fiscal year.
Saleh pointed out that there is a “vague confusion between the foreign reserves of the Central Bank of Iraq, which today represent 85% of the country’s foreign currency reserves (which correspond to the liabilities represented by the issued national currency – the dinar – and represent the currency cover for the purpose of economic stability and maintaining purchasing power) on the one hand, and abundance on the one hand.
On the other hand, the finances come from the accumulated oil revenues as a financial reserve that is not currently spent (due to the lack of legislation for the general budget).
Saleh added, “As part of it has been allocated today to cover the expenses of the Emergency Food Security and Development Law No. 2 of 2022,” expecting that “the financial abundance or remaining surpluses at the end of 2022 will be about $15 billion, so it is illogical to go with it to extinguish long-term debts and make The country is free of any basic financial hedging against potential international economic risks.”
He continued, “If the repayable foreign debt is between 20-23 billion dollars, the expected financial abundance is itself not enough to pay the total foreign debt immediately in front of great national needs required by the country’s investment spending, which is strategically important and urgent.”
For his part, Member of Parliament, Rafiq Al-Salihi, revealed that Iraq has a large financial surplus that is the result of high oil prices.
Al-Salihi said in an interview with (Al-Mada): “We will work with deputies in Parliament during the coming period to improve the country’s economic situation and proceed towards repaying debts in a way that suits the economic policy that will be drawn up by the new government.”
He added, “We, in turn, will work to monitor the money to ensure the achievement of the government program and the benefit of these surpluses.”
In addition, the researcher in economic affairs, Abdul Salam Hassan, explained that debts, whether external or internal, entail interests, and therefore paying them in one payment does not bring this interest to the other party, and therefore paying them all requires a prior agreement.
Hassan said in an interview with (Al-Mada), that “the political will has nothing to do with the issue of debt repayment, and the evidence for this is what happened with Kuwait’s debts that were paid through the rise in oil prices and the complete termination of its file.”
He pointed out, “The budget stipulates that the caretaker government does not have the right to dispose of these debts.”
On (September 23, 2022), the caretaker Prime Minister, Mustafa Al-Kazemi, had expected to increase the country’s cash reserve to $100 billion, stressing that Iraq had obtained the largest and fastest economic growth and became the first in the Middle East and fifth in the world. LINK
Al-Sudani Affirms The Next Government’s Desire To Consolidate Iraq’s Relations With Canada
Today, Thursday, Prime Minister-designate Muhammad Shia Al-Sudani affirmed the desire of the next government to consolidate Iraq’s relations with Canada.
The media office of the Prime Minister-designate stated, in a statement, that “Al-Sudani received Canadian Ambassador to Iraq Gregory Galligan, who presented the Canadian government’s congratulations to Al-Sudani on his assignment to head the next Iraqi government, wishing it success in his mission and the implementation of the goals set for his new government.”
The Prime Minister-designate stressed “the future government’s desire to consolidate its relationship with Canada in various fields,” noting “its contribution to the war against the terrorist Daesh within the international coalition, as well as its role in supporting the Iraqi security forces by providing advice and training within the framework of NATO, and the importance of Continuing and developing this cooperation to include other aspects of the economy, investment, and facing the challenges of climate change. https://www.radionawa.com/all-detail.aspx?jimare=31755
Ali Al-Delfi To / Nina /: Passing A Full Ministerial Cabinet In The Middle Of Next Week
Thursday 20 October 2022 16:50 | political Number of readings: 55 Baghdad / NINA / – Representative Ali Gharkan Al-Delfi suggested passing the cabinet in the middle of next week.
He told the National Iraqi News Agency ( NINA ) that some partial differences are still within the same component over the distribution of ministries entrusted to it.
Al-Dalfi added: These differences will not be resolved if the session takes place next Saturday, and a vote on a full ministerial cabinet will be held in the middle of the same week./End 3
The Iraqi Stock Exchange Ends The Week’s Trading With An Increase Of 0.57%
Market Economy News / Baghdad On Thursday, the Iraqi Stock Exchange announced the weekly trading indices, with an increase of 0.57%.
A statement to the market stated that “the third week of October 2022 witnessed five trading sessions from Sunday 10/16/2022 to Thursday 20/10/2022.”
The number of shares traded this week was “more than (3) billion shares, and the value of shares traded this week amounted to more than (4) billion dinars.”
And the trading index closed in the market for the first session of the week at “595.32 points, while the index closed at the end of the week at (598.71) points, achieving an increase of 0.57% from its closing in the first session.”
“During the week, more than (3,500) purchase and sale contracts were executed on the shares of companies listed in the market.” 79 views Added 10/20/2022 – 2:44 PM Update 10/20-2022 – 5:00 PM
NATO: Iraq Is An Element Of Stability In The Middle East, And We Seek To Strengthen Joint Cooperation With It
Political | 03:34 – 10-2022 Baghdad – Mawazine News, NATO affirmed that Iraq is an element of stability in the Middle East region, and that the alliance seeks to strengthen its positive relations and joint cooperation with it.
And the office of National Security Adviser Qassem al-Araji stated in a statement that Mawazine News received a copy of it, that “the latter received the Assistant Secretary-General of NATO for Operations, Thomas Govos, and his accompanying delegation, in the presence of the commander of the NATO mission in Iraq, Lieutenant-General Giovanni Maria Iannucci.’
Discussing joint cooperation between Iraq and the NATO mission in the fields of training, advice, exchange of experiences, and capacity building for the Iraqi armed forces and security services.
Al-Araji stressed, “the need to update training programs to keep pace with developments in the world in the military and security fields and the use of modern technologies, especially in the field of cybersecurity.”
Al-Araji stressed to the guest delegation that “Iraq seeks to strengthen the strategic relationship with NATO, and to develop Iraqi national expertise, especially in the field of border protection and drug control.”
For his part, the Assistant Secretary-General of NATO stressed that “Iraq is an element of stability in the Middle East, and that the alliance seeks to strengthen its positive relations and joint cooperation with it,” praising Iraq’s cooperation in protecting the mission’s personnel and facilitating their tasks.
He pointed out, “The alliance continues to support Iraq in the fight against terrorism.” Ended 29
A New Rise In Oil Prices
Economie| 08:48 – 10-2022 Follow-up – Mawazine News : Oil prices rose, on Thursday, due to the tightening of supply, offset by fears that a global slowdown would curb demand.
December Brent crude futures rose 55 cents, or 0.60 percent, to $92.96 a barrel at 04:032 GMT, and US West Texas Intermediate crude for November delivery rose 65 cents, or 0.76%, to $86.20 a barrel.
Oil prices were boosted by a looming European Union embargo on Russian crude and oil products, as well as production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia, known as OPEC+.
OPEC+ agreed to cut production by 2 million barrels per day in early October – but analysts expect a slight drop in actual production by about 1 million barrels per day due to production shortfalls in countries such as Iran, Venezuela and Nigeria.
Separately, US President Joe Biden announced a plan on Wednesday to sell the remainder of his release of the nation’s emergency oil reserves by the end of the year, or 15 million barrels of oil, and begin refilling the stockpile as he tries to curb future gasoline price hikes.
Meanwhile, global fuel demand remains uncertain, the Federal Reserve said on Wednesday in a report that US economic activity has expanded modestly in recent weeks, although flat in some areas and declining in others, showing companies are increasingly pessimistic about the outlook.
China has also continued to impose severe restrictions on COVID-19 this year, hurting business and economic activity in the world’s largest importer of crude.
Leon Lee, analyst at CMC Markets, said fears of a global recession and the possibility of another strong rate hike in the US have clouded the outlook for oil prices.
“Therefore, oil prices will return to a downtrend after a short-term recovery,” he added.
The Fed is expected to raise interest rates again in November, and eventually raise rates to 4.75%-5% by early next year, if not more, after a government report showed inflation remained very high last month.
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