Iraqi News

Saturday Morning Iraq Economic News Highlights 2-18-23

Al-Rafidain Bank Announces The Requirements For Obtaining Dollars From Basra International Airport

Today, Saturday, Al-Rafidain Bank announced the requirements for obtaining dollars from Basra International Airport.   A bank statement stated, “In view of the imminent opening of the Al-Rafidain Bank outlet at Basra International Airport, we would like to inform travelers of the need to bring the following documents for the purpose of obtaining dollars, which are as follows:

1 – A valid passport  2 – travel ticket  3 – boarding pass  4 – Issuing a Master Card, preparing a KYC card, and copying documents for free at the Al-Rafidain Bank outlet at Basra International Airport

And the statement stressed that “the date of travel will be on the same day as the application for obtaining dollar cash from the Rafidain Bank outlet at the airport.”

Economist: Imposing Customs Duties On Some Raw Materials Is Sabotaging The Economy

Saturday 18 February 2023 09:46 |Economical Number of readings: 227  Baghdad / NINA / The economic affairs specialist, Dergham Muhammad Ali, considered the imposition of customs duties on some materials and commodities as “a step towards economic sabotage, not reform.”

Muhammad Ali said in a statement to the National Iraqi News Agency / NINA /: “Some of these commodities are considered among the raw materials involved in the industry, on which customs duties were not imposed, such as cartons and some other issues that fall within the local industry.These matters will incur additional costs on the local product, which leads to the discontinuation of some products.

He added: “It is better to impose taxes and customs fees on imported materials that are similar to the local factory, but imposing a tax on raw materials involved in the industry is considered sabotage and not an economic reform.”

MP reveals a close date for the arrival of the budget to Parliament and the deadline for its passage

Economy | Yesterday, 20:37 MP reveals a close date for the arrival of the budget to Parliament and the deadline for its passage Mail

Baghdad Today – Baghdad Today, Friday, the leader of the coordination framework, MP Ali Al-Bandawi, revealed that the House of Representatives will soon receive the draft financial budget law for 2023 from the Council of Ministers.

Al-Bandawi said in a statement to (Baghdad Today), that “the Council of Ministers will vote next Tuesday on the budget and will send it the same week to Parliament,” noting that “its value will be the largest in the history of Iraq and will reach 180 trillion dinars.”

He added, “Next Wednesday or Thursday, the budget will reach the House of Representatives,” noting that “the Council agreed that next March will be a deadline to discuss and pass the budget.”

He explained, “The Council of Ministers was determined to pass it last Tuesday, but because of the change in the exchange rate of the dollar to 1300 dinars, it was returned to the Ministry of Finance for the purpose of adjusting prices.”

Al-Bandawi pointed out that “the price of a barrel of oil has been agreed to be between (65-70) dollars per barrel,” considering that “the budget will not have any deficit because it has not been passed since the beginning of the year, and therefore the three-month period that did not pass the budget will be the amount allocated for disbursement is the gate to fill the deficit in the budget and this is what was agreed upon with Prime Minister Mohamed Shia Sudani.”

The financial and economic adviser to the Prime Minister, Mazhar Mohamed Saleh, attributed yesterday the delay in the government’s submission of the draft 2023 budget law to the House of Representatives so far due to the recent dollar crisis

Saleh said in a press statement that “the government’s decision to reduce the official price prompted the reformulation and restructuring of the project again according to the new official rate of the dollar.”

He stressed that “the budget for the year 2023 will be completely different from previous budgets, in terms of service projects and financial allocations to complete important projects that have high completion rates, and the deficit in them will be estimated, and will be filled through surplus funds from the last fiscal year.”

According to parliamentary leaks, the 2023 budget is expected to be the highest in the country’s history, and included in its items the largest operational part, estimated at 80 trillion dinars, including government expenses and employee salaries, while the price of a barrel of oil in the budget was set at estimated figures not exceeding $ 70.

MP reveals a close date for the arrival of the budget to Parliament and the deadline for its passage » Baghdad Today News Agency   LINK

An Economist Told NINA: The Time Has Come To Approve The 2023 Budget…And To Price A Barrel Of Oil At 70 Dollars

Saturday 18 February 2023 12:12 | Economical Number of readings: 203

Baghdad / NINA / – The expert in economic affairs, Safwan Qusai, stressed the importance of approving the general budget for the year 2023 as soon as possible and not delaying it further, calling for setting the price of a barrel of oil in the 2023 budget at a price of 70 dollars.

Qusai said in a statement to the National Iraqi News Agency (NABNA): “It is clear that the passage of the 2023 budget has been long delayed due to the Ministry of Finance adjusting the estimates of imported items and reconsidering the issue of social welfare, As well as reconsidering determining the exchange rate,” stressing that: “The time has come to send this budget as soon as possible and set the price of a barrel at 70 dollars, because covering the deficit can be done through the rise in oil prices.” above 70 dollars, and currently it is at an average of 85 dollars.

He stressed the need to rationalize public spending at this stage, with the need to allocate sufficient funds to the Ministry of Commerce to import all kinds of goods that are purchased at the official price through the window, and that the sale process is a final revenue For the Ministry of Finance, and thus we ensure that prices are not linked to the parallel market price, but are controlled. Through the Ministry of Commerce and other federal ministries, which can import materials at official prices.

The American Ambassador Asks Iraq To Do Three Things

2023.02.18 – 12:25  Baghdad – Nas  The US Ambassador to Iraq, Elena Romansky, confirmed that her country’s government is determined to create new opportunities in the Iraqi energy sector, stressing the need for Iraq to do three things, namely investment, fighting corruption, and creating a work environment to encourage foreign capital to work in the country.

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Romansky said during her speech at the Second Oil and Gas Conference in Iraq, followed by “NAS” (February 18, 2023), that “the United States has launched a project that focuses on economic development,” noting that “Washington is determined to work with the Prime Minister to create new opportunities for the two countries.” and the region.”

She added, “American companies will play a role in developing the Iraqi economy and the private sector,” indicating that “the file for developing the energy sector will be discussed by American companies with Prime Minister Muhammad Shia’ al-Sudani during the Munich conference.”

And Romansky continued, “The Iraqi government encourages the presence of American companies to work in Iraq, and new plans must be put in place to expand energy plants and develop the electricity network,” stressing that “the electricity infrastructure in Iraq is a good place to start the investment process, especially since Iraq has an opportunity to invest gas for Reducing gas emissions, preserving the environment and getting rid of carcinogenic atmospheres.

She explained that “Iraq must do three things, which are investing, fighting corruption, and creating a work environment to encourage foreign capital to work in Iraq,” noting that “these investments will provide job opportunities for Iraqis, especially with regard to investing in gas to develop the electric sector.” The official agency.

Iraq Currency Crisis Nearing End: Official

ERBIL — Iraqi Foreign Minister Fuad Hussein in an interview voiced optimism about the future of Iraqi economy, and stressed that Iraqi dinar will begin to regain its value in the near future.

“The value of the US dollar against Iraqi dinar will fall across the country in the near future, thanks to the recent agreement we reached with the US government on this issue,” said Hussein in an interview with Kurdistan 24 on Friday.

US dollar transactions in Iraq will be carried out through a proper electronic system, which will serve the interests of Iraq and help preserve the value of dinar.”

The US-Iraq Higher Coordinating Committee met last week to review Iraq’s ongoing currency crisis and coordinate plans to resolve it. Washington welcomes Iraqi efforts to reform its banking and overall financial systems to prevent money laundering and other irregularities, and supports efforts to resolve the country’s currency crisis, according to a joint statement issued after the meeting.

Baghdad has in recent months been stepping up efforts to resolve its currency crisis, which continues to cause market instability and a nationwide inflation. The value of dinar began to slide after the US Treasury and the Federal Reserve Bank of New York “began enforcing tighter controls on international dollar transactions by commercial Iraqi banks in November in a move to curtail money laundering and the illegal siphoning of dollars to Iran and other heavily sanctioned Middle East countries,” Wall Street Journal reported in January, citing Iraqi and US officials.

Dollar Exchange Rates In The Iraqi Market

Economie  2023-02-18 | 03:04  9,768 views  Alsumaria News – Economy Alsumaria News publishes today, Saturday, the exchange rates of the dollar in the Iraqi markets.

The selling price of the dollar was 150,000 dinars per 100 dollars, while the buying price of the dollar was 149,500 dinars per 100 dollars.

Earlier, he decided  Central Bank of Iraq  Adjusting the exchange rate of the dollar against the Iraqi dinar, as the price of purchasing a dollar from the Ministry of Finance reached 1300 dinars per dollar and sold it at (1310) dinars per dollar to banks through the electronic platform, and sold at (1320) dinars per dollar from banks and non-bank financial institutions to the beneficiary Final.   LINK

JP Morgan: Oil Would Exceed $100 A Barrel In This Case

Energy   Economy News – Baghdad “JP Morgan” analysts said in a note, on Friday, that Brent crude prices are unlikely to exceed the $100 per barrel mark this year unless major geopolitical developments occur, amid possibilities that the “OPEC +” group will increase supplies and that Russian flows will recover by Mid 2023.

According to the note, it is unlikely that the “OPEC +” group, which includes members of the Organization of the Petroleum Exporting Countries “OPEC” and producers outside it, including Russia, will defend the level of eighty dollars and therefore it will not need to reduce production quotas this year.

She indicated that the conglomerate may instead add 400,000 barrels per day to production.

And Saudi Energy Minister Prince Abdulaziz bin Salman said, yesterday, Thursday, that the current “OPEC +” agreement to reduce production target by two million barrels per day will remain in effect until the end of the year.

JPMorgan analysts said that with Russian production expected to see a full recovery by June, and high price levels preventing the United States from buying back to boost its strategic petroleum reserves, the supply-demand balance gap is likely to narrow.

Brent crude futures are trading, on Friday, near $84 a barrel, and are heading for a weekly decline, amid expectations that any tightening monetary policy in the United States may undermine demand.

JP Morgan maintained its estimate of oil demand growth from China, the largest importer, at 770,000 barrels per day.

Analysts expect China to import record quantities of crude in 2023 due to the increased demand for fuel, mainly due to the recovery of movement and travel after the abolition of Covid-19 restrictions.

More Than $700 Million Iraqi Central Auction Sales In A Week

2023-02-18 03:10  Shafaq News/ The Central Bank of Iraq’s “total” sales of hard currency for dollars during the currency auction last week amounted to more than 700 million dollars.

Shafaq News agency reporter stated that the Central Bank sold during the past week, during the four days in which the auction was opened, starting from Sunday to Wednesday, the amount of 728 million 785 thousand and 580 dollars, at a daily rate of 182 million 196 thousand and 395 dollars, up by 115.89% from the previous week. .

Our correspondent added that the highest dollar sales during the past week were on Sunday, when sales amounted to 305 million and 406 thousand and 95 dollars, while the lowest sales were on Tuesday, when sales amounted to 94 million and 950 thousand and 560 dollars.

He pointed out that sales went in the form of cash and transfers abroad to finance foreign trade, while the selling price of documentary credits and international settlements for electronic cards amounted to 1,305 dinars per dollar, while the selling price of remittances abroad and the cash sale price amounted to 1,310 dinars per dollar.

Dollar sales transferred to bank accounts abroad, in addition to cash sales, amounted to 1460 dinars per dollar, during three days of the week, and decreased to 1310 starting on Wednesday.   LINK