Iraqi News

Saturday Morning Iraq Economic News Highlights 3-11-23

Parliamentary Finance Determines The Percentage Of The Region Within The 2023 Budget

Information / Baghdad..  A member of the Parliamentary Finance Committee, Ikhlas Al-Dulaimi, confirmed today, Saturday, that the share of the Kurdistan region in the general budget for the fiscal year 2023 was set at 12.67%.

Al-Dulaimi, a representative of the Kurdistan Democratic Party, said in a statement to the information agency, “The draft budget law for the year 2023, and according to the information received, the share of the Kurdistan region has been set at 12.67% of the general budget.”

And she added, “The percentage of the Kurdistan region from the general budget will remain the same until the general population census is conducted in Iraq.”

Al-Dulaimi indicated, “The 2023 budget will have the official exchange rate of the dollar in it 130 thousand dinars, and the price of a barrel is 65 dollars, while the deficit rate will reach 60%.” LINK

Parliamentary Finance Calls On The Government To Impose Strict Control Over The Work Of Dollar Outlets

Information / Baghdad..   On Saturday, the Parliamentary Finance Committee called on the security and oversight agencies to monitor the work of dollar sales outlets inside banks, accusing speculators and traders of exploiting the dollar crisis to reap profits.

Committee member Faisal Al-Naeli said, in an interview with Al-Maalouma Agency, that “some of the speculators and traders took advantage of this process in order to raise the price of the dollar in the local markets,” adding that “there are many outlets for selling the dollar that have been opened in order to facilitate the process of selling the dollar at the official price of 132.” thousand for every $100.”

He pointed out that “the security and oversight agencies must seize all outlets and check them properly and prevent the smuggling of foreign currency outside the country.”

Noting that “after the procedures imposed by the government by tracking the sources of remittances, whether the receiver or the sender, and checking the shipment of goods and their arrival to Iraq, it prompted speculators and merchants to smuggle the currency.”

He continued, “The government has taken many important steps to follow up on the money that is spent and to prosecute merchants and currency smugglers.”

The economic expert, Mustafa Akram Hantoush, explained the mechanism for dealing with the high exchange rate of the dollar in the local markets, pointing out that the demand for foreign currency exceeds $180 million daily, which is more than the need of the local market. LINK

An Economist Told NINA: The Delay In Approving The Budget Will Have Negative Repercussions On The Country’s Economy

Saturday 11 March 2023 09:34 | Economical Number of readings: 290  Baghdad / NINA / – The expert in economic affairs, Raad Twij, confirmed that the delay in approving the budget more than this period will have negative repercussions on the country’s economy.

Twigg said in a statement to the National Iraqi News Agency / NINA / that “the delay in approving the budget could have a meaning in the great difficulty in controlling its accuracy and the direct follow-up of the Prime Minister in order to match it with The implementation of the provisions of the government program in developing the Iraqi economy, and to work for the parties to agree on it, this from the political side, but from the economic side, it will reflect negatively on the country’s economy.

He added, “This delay may be behind the large deficit of the budget, which is offset by the difficulty of financing, so the delay in approving the budget more than this period may have undesirable economic and monetary repercussions in the future.”

The economist stressed the necessity of approving the budget before it is too late and entering into an emergency budget that may affect the operational budget, affect the salaries of state employees, and stop service projects due to lack of funding for them. /

Parliamentary Finance: The Delay In Sending The Budget To Parliament Exceeded All Justifications

The Parliamentary Finance Committee confirmed that the government’s delay in sending the law exceeded all justifications, while stressing the need to expedite the completion of the draft budget.

Cougar said in a press interview seen by “Takadam” that “the Kurdistan region’s share of the federal budget is not the core point of contention, and it is possible to pass the budget even without the consent of the Kurds, as happened in previous years.”

He added, “Indications indicate that there is no optimism about the imminent sending of the budget law, as the government was able to do so for a while, and it was able to send it since the end of last year, and the variables that some invoke only take days, including the issue of adjusting the dollar exchange rate, or changes in oil prices.” in the global market.”

Cougar pointed out that “changing the exchange rate led to an increase in the deficit rate, estimated at between 12 to 15 trillion dinars, and the government was faced with only two options, either pressing unnecessary expenditures, or canceling some doors, and these measures do not require a delay of about three months.” .

Cougar explained that “Parliament gives the budget its right, from studying and discussing all paragraphs and numbers, and this is considered at the core of parliamentary work, and its responsibility begins from the day it officially received the budget, through the first and second readings and then discussions and approval,” noting that “the ball is in the government’s court.” Considering that the preparation of the budget is the exclusive responsibility of the executive authority represented by the Federal Council of Ministers.

And he continued, “Discussions on the budget within Parliament, after reaching it, will not take long, given that there is a majority that forms the government and agreed in advance on all points within the State Administration coalition.”

And Cougar concluded, that “the tasks of the House of Representatives on the law are to transfer between the chapters of the budget or reduce its total amounts, but if it wants an increase, then this depends on two conditions that are achieved together, namely the existence of a necessity for this increase and the approval of the Council of Ministers.”

Huge Numbers In The 2023 Budget… The Salary Bill Swallows The State’s Money

Baghdad – Iraq today:   The Future Iraq Foundation for Economic Research and Consulting stated that the budget allocated for the salaries of Iraqi employees in the 2022 budget increased by 3% compared to 2021, and that the salaries of security sector employees constitute 53% of the total amount allocated in the budget for salaries. While a member of the Parliamentary Finance Committee in the Iraqi parliament explained that “the number of employees in the 2023 budget will increase, and 60 to 65 trillion dinars will be allocated from the budget size, which amounts to 200 trillion dinars, for salaries. ”

On Thursday (March 9, 2023), the Future Iraq Foundation publishes a summary of its research on the salaries of public sector employees in Iraq.According to the study, the budget allocated to employee salaries reached 43 trillion and 76 billion dinars in 2022, while in the 2021 budget it amounted to 42 trillion and 44 billion dinars, i.e. the amount allocated to employee salaries in 2022 increased by 2.9% compared to to 2021.

The head of the Future Iraq Foundation for Research, Manar Al-Obeidi, said in a press interview followed by (Iraq Today) that “salaries took 26.9% of the total revenues of Iraq for the year 2022. And the security sector got the largest percentage of the budget allocated to salaries, reaching 53.48% of the amount, 27% of these, it went to the Ministry of Interior and 16% to the Ministry of Defense.

While a member of the Parliamentary Finance Committee, Jamal Cougar, stated in a press interview followed by (Iraq Today) that “53 trillion and 834 billion dinars were fixed for the salaries and bonuses of employees in the 2021 budget, after which the number of employees increased and at least 1,000 people were appointed in each governorate in 2022, therefore, there were more than 3 million and 260 thousand employees in Iraq, and now their number has increased to more than 4 million.

Cougar added, “We expect Iraq to allocate 60 to 65 trillion dinars for the salaries of state employees in the 2023 budget. The budget will amount to more than 198 trillion dinars, and on this basis, a third of the budget will be allocated to employee salaries, and those salaries will constitute 70% of the operational budget.”

According to the study conducted by the Iraq Future Foundation, the Ministry of Higher Education will receive 5.23% of the budget allocated to employee salaries, the Ministry of Education 5.3%, the Ministry of Health 3.17%, Baghdad Governorate 6.79%, while Dhi Qar Governorate will receive 2.26%, Babil 2.62%, Basra 2.61%, Diyala 2.1%, Najaf 1.76%, Diwaniyah 1.86%, Karbala 1.49%, and Wasit 1.62%. LINK

The Decline In The Exchange Rates Of The Dollar In The Local Markets For This Day

Saturday, 11-03-2023, Am 11:51   Tayseer Al-Asadi  Today, Saturday, the exchange rates of the US dollar against the Iraqi dinar witnessed a decline in the main stock exchange in the capital, Baghdad, and in the Kurdistan Region.

The central Al-Kifah and Al-Harithiya stock exchanges in Baghdad recorded 157,050 Iraqi dinars for 100 US dollars this morning, while the prices last Thursday morning were 157,800 dinars for 100 dollars.

The buying and selling prices decreased in exchange shops in the local markets in Baghdad, as the selling price reached 158,000 Iraqi dinars for every 100 US dollars, while the buying prices reached 156,000 Iraqi dinars for every 100 US dollars.

As for Erbil, the capital of the Kurdistan Region, dollar prices do not trade on official holidays, but exchange shops traded dollars and recorded a decline as well, as the selling price of the dollar reached 157,500 dinars per 100 US dollars, and the purchase price reached 157,000 dinars per 100 US dollars.

While the exchange rates of the dollar on the main stock exchange in the city of Sulaymaniyah reached 157,650 Iraqi dinars for every 100 US dollars.

Decrease In Iraq’s Oil Exports To America

The US Energy Information Administration announced today, Saturday, that the average Iraqi oil exports to America fell to 265 thousand barrels per day during the past week.

The administration said in its report that “the average US imports of crude oil during the past week from eight countries amounted to 5.668 million barrels per day, up by 325 thousand barrels per day from the previous week, which amounted to 5.343 million barrels per day.”

She added, “Iraq’s oil exports to America amounted to an average of 265 thousand barrels per day last week, down from the previous week, when oil exports to America amounted to an average of 290 thousand barrels per day.”

She pointed out that “most of America’s oil revenues during the past week came from Canada with an average of 3.780 million barrels per day, followed by Mexico with an average of 556 thousand barrels per day, and oil revenues from Saudi Arabia amounted to an average of 476 thousand barrels per day, and then Nigeria at an average of 243 thousand barrels per day.” .

According to the administration, “the amount of US imports of crude oil from Colombia amounted to an average of 222 thousand barrels per day, from Brazil an average of 71 thousand barrels per day, and from Ecuador an average of 55 thousand barrels per day, while it did not import any quantity from Russia or Libya.”    LINK

Oil Prices Are Falling Back In The Global Markets

Economy  2023-03-11 | 03:17  483 views   Alsumaria News – Economy Oil prices fell by more than 3 percent on a weekly basis, despite their rise in the last sessions of the week, Friday, after better-than-expected US jobs data.

The weekly decline came on the back of jitters caused by a possible hike in US interest rates.

Expectations of raising interest rates in the largest economy in the world and in Europe clouded the outlook for global growth, and pushed both benchmarks lower this week.

However, the US Federal Reserve may not find much justification for raising interest rates at the pace or the large amount that some expected, after a government report, on Friday, revived hopes that inflation would recede, amid signs that the labor market, which had been faltered by the pandemic, would return to normal.

Brent crude recorded a weekly decline of 3.55 percent, and US West Texas crude fell by 3.77 percent.

And the two benchmarks reduced the size of the decline in the last sessions of the week, Friday, as Brent rose by $ 1.19, or about 1.5 percent, to reach $ 82.78 a barrel, while West Texas Intermediate crude increased by 96 cents, or 1.3 percent, to $ 76.68 a barrel.

The Chairman of the Federal Reserve noted  Jerome Powell  He raised rates at a higher and perhaps faster rate, saying that the US central bank had initially made a mistake when it thought that inflation was transient.

The Council will hold its next meeting from March 21 to 22.

A stronger dollar makes oil more expensive for holders of other currencies.

US jobs data for February beat expectations, with non-farm payrolls increasing by 311,000 jobs, compared to expectations in a survey.ReutersWith an increase of 205 thousand jobs.

This is likely to prompt the Federal Reserve to raise interest rates for a longer period, which analysts say will affect oil prices.

On the supply side, the US has reportedly privately urged some commodity traders to set aside concerns about shipping Russian oil, which has been capped, in a bid to prop up supplies.

Investors are closely watching the cut in exports fromRussia, which decided to cut oil production by 500,000 barrels per day in March.   LINK