Iraqi News

Thursday Morning Iraq Economic News Highlights 1-5-23

A New Parliamentary Talk Regarding The Exchange Rate Of The Dollar

political| 10:35 – 05/01/2023   Baghdad – Mawazine News, a member of the Parliamentary Finance Committee, Jamal Cougar, said, on Thursday, that the issue of the rise in dollar exchange rates “is due to political and economic speculation,” indicating that the government is not seeking to raise exchange rates.

In an interview with the official newspaper, “Al-Sabah”, which was followed by Mawazine News, Cougar added, “Things are still under the control of the government and the central bank, which has high currency reserves.”

He continued, “The government will restore the exchange rate to its previous price of 148,000 dinars,” considering that “any talk about returning prices to 120,000 dinars has become past and impossible.” Ended 29/N33

Parliamentary Finance: Returning The Exchange Rate Of The Dollar To 120,000 Dinars Is Impossible

2023-01-05 04:21   Shafaq News/ Jamal Cougar, a member of the Parliamentary Finance Committee, attributed, on Thursday, the reasons for the rise in the exchange rates of the US dollar against the Iraqi dinar to political and economic factors and speculation, stressing that exchange rates will return to normal.

Cougar told Shafaq News agency, that the government does not seek or aim to raise dollar prices, but the price imbalance is a result of economic and political speculation, in addition to the creation of the electronic platform that was created under pressure from the US Federal Reserve, as well as the illegal withdrawal of hard currency from Iraq by neighboring countries.

He added, that matters are still under the control of the central bank and the government because of the cash reserves the country possesses, but it needs time until the Central Bank of Iraq, and through it the banks participating in the currency auction, commit to the new electronic platform on the one hand, and combating dollar smuggling to neighboring countries as well as controlling the process Money laundering and reduction on the other hand,

Cougar confirmed, “The government will restore the exchange rate to its previous price of 148,000 dinars,” stressing that “returning prices to 120,000 dinars is impossible and may not return.”

Earlier, the Iraqi Finance Minister, Taif Sami, revealed that the draft federal budget law for the year 2023 included a fixed exchange rate for the dollar at 1450,000 dinars.   LINK

Nassif: Al-Sudanese put his hand on the wound by smuggling currency and started holding the dollar file instead of the bank (video)

An Economist Warns Of Dollar Speculation.. “It Will Raise Food Prices”

1,308   Economic expert Nabil Al-Marsoumi warned, on Wednesday, of the continued rise in commodity and food prices as a result of; Speculation of dollar prices in the local markets, while stressing that prices do not return directly if the dollar prices return.

Al-Marsoumi said in a press interview seen by “Takadam” that “the prices of commodities and foodstuffs will remain high even if the dollar prices decrease against the Iraqi dinar,” noting that “entry tax prices are raised on goods, services and foodstuffs entering Iraq during the period of high exchange rate.” .

And he continued, “Speculation of dollar prices caused prices to rise in the local markets, especially the main commodities and foodstuffs for citizens,” pointing out that “the period of the rise in the price of the dollar against the Iraqi dinar has not been determined so far, and there are government measures that we do not know if they will control the rise or not.” .

And between Al-Marsoumi, “The Central Bank is the party concerned mainly with finding solutions to the problem of the crisis of the high price of the dollar and controlling it in the coming period.”

State Of Law: Al-Halbousi Is Behind The Disruption Of The Emergency Dollar Session

Policy ,  01/05/2023 09:17, Number of readings: 171    Baghdad – Iraq today:  The Deputy of the State of Law Coalition, Muhammad Hassan al-Qadri, held Parliament Speaker Muhammad al-Halbousi responsible for not convening the special session on the crisis of the rise of the dollar, while stressing that the general situation needs to hold a session in order to discuss the repercussions of the depreciation of the Iraqi dinar.

Al-Qadri said in a press interview, “Al-Halbousi has not yet set a date for holding the special session in order to discuss the repercussions of the crisis of the dollar’s rise and the depreciation of the dinar in front of him.”

And he continued, “Members of parliament collected more than fifty parliamentary signatures in order to take decisions to preserve the value of the Iraqi dinar, but the parliamentary presidency did not work to hold the session despite the urgent circumstances and the urgent need for it. ”

He pointed out that “some deputies called for official books from Parliament Speaker Muhammad al-Halbousi, but the latter has not set a date for the session yet.”   LINK

Disclosure Of Preliminary Indicators For The 2023 Budget: The Largest Public Expenditures In The History Of Iraq

Economie  2023-01-05 | 05:00  Source:  Alsumaria news  714 views  Alsumaria News –  Economic expert Nabil Al-Marsoumi revealed, today, Thursday, preliminary indicators for the 2023 budget.

Al-Marsoumi said in a post entitled “Preliminary Indicators for the 2023 Budget,” that “the assumptions on which the budget is based: –

The official exchange rate for the dollar = 1450 dinars.

The price of a barrel of exported crude oil = 65 dollars.

Oil exports with Kurdistan = 3.550 million barrels per day.”

Public expenditures = 180 trillion dinars = 124 billion dollars, which is the largest in the history of Iraq.

The budget deficit = 40 trillion dinars, which is the largest in the history of budgets.

The economist explained, “The conclusions: –

Oil revenues = 122 trillion dinars.

Non-oil revenues = 18 trillion dinars.

Public revenues = 140 trillion dinars.

– Covering the deficit will be from the fiscal surplus achieved in 2022.”

Public expenditures for the 2023 budget exceed the 2021 budget and actual spending for 2022 by about 50 trillion dinars.   LINK

It Is Expected That The Budget Will Be Presented To The Government Next Week For Approval In Mid-February

Posted On2023-01-05 By Sotaliraq  Baghdad / Firas Adnan   The Parliamentary Finance Committee expected to present the draft budget law to the Council of Ministers in its next session, pointing out that its arrival will be days later to Parliament in order to pave the way for its approval in mid-February, pointing out that the priorities of the law will be to provide services, especially the health, education and housing sectors as well as a large number of functional grades.

Committee member Mueen Al-Kazemi said, “Our confirmed information indicates that the Ministry of Finance has completed the budget law and referred it to the Council of Ministers.”

Al-Kazemi added, “The Economic Ministerial Council met yesterday, headed by Prime Minister Muhammad Shia’a Al-Sudani, and discussed the project and made some amendments to it.”

He pointed out, “Expectations indicate that the law will be presented to the government at its next meeting in order to vote on it.”

And Al-Kazemi indicated that “the law will reach parliament on the ninth or tenth of this month,” stressing that “the consensuses that have taken place regarding the law between the political blocs, especially the recent visits of the delegations of the Kurdistan region and the meeting with Al-Sudani, will help resolve many differences.”

And he talked about “a great desire of the political blocs to ratify the law as soon as possible and start working in the provinces and complete projects for what these provinces need in terms of real service.”

Al-Kazemi hopes that “this cooperation between the political blocs will lead to approving the budget in mid-February, so that the government will start implementing projects in early March.”

He stressed, “There are many projects awaiting funds, some of which are ongoing, and others are lagging, in addition to starting new projects required by the current stage in accordance with the ministerial curriculum.”

Al-Kazemi continues, “The Ministry of Planning has completed the investment side of the budget, while the Ministry of Finance has undertaken the preparation of the operational side of it.”

And he stated, “Some remarks may be made by ministers at the government meeting devoted to discussing and approving the budget, and amendments may be made in preparation for their transmission to Parliament.”

Al-Kazemi believes, “These observations will shorten many of the differences within the parliament, since most of the ministers represent political blocs that have a parliamentary presence.”

And he finds that “everyone is looking forward to this current consensus between the coalition blocs within the State Framework Alliance contributing to the completion of the budget as soon as possible.”

Al-Kazemi pointed out, “The political forces hope to implement the budget according to what was planned in the ministerial curriculum, which included the document of the political agreement.”

And he talked about “the possibility of including in the law 250,000 job degrees for lecturers in order to fill the vacancy in the Ministry of Education and 74,000 degrees for first-graders and holders of higher degrees, and to install contract employees in institutions that are able to secure the salary difference for their employees through collection, as is the case with the Ministry of Electricity.”

Al-Kadhimi stressed, “the need to pay attention to the investment aspect, such as service projects and their implementation, and what supports the regional development file for the governorates,” calling for “taking advantage of the money allocated by the Emergency Support for Food Security and Development Law for provincial projects amounting to 9 trillion dinars.”

He stressed, “The government is also heading to pay attention to the poor and vulnerable classes, including those covered by social care, in conjunction with the economic fluctuations resulting from the change in the exchange rate of the dollar.”

Al-Kadhimi went on, to “the importance of including the lower classes of pensioners with support, in order to improve their economic situation by increasing their salaries through the budget.”

And he warned, “The money will also go to service projects such as electric power in order to raise production levels and pay attention to the transportation and distribution sectors.”

Al-Kadhimi concluded, “The great port of Faw is also waiting for financial allocations to complete its projects, because this project is of great importance to the Iraqi economic situation.”

Informed sources confirm that “the government’s delay in preparing the draft budget has many reasons, most notably the delay in forming the cabinet and the confusion caused by the discrepancy in oil prices, in addition to the appointments that came in the project.”

For his part, Bahaa al-Nuri, a member of the State of Law Coalition, said, “Iraqis have become accustomed to the emergence of disputes in the budget laws of the past years. There are political parties that had reservations about some articles and refrained from voting on them.”

Al-Nouri continued, “The situation at this stage has changed, and the reason is the state of consensus within the state administration coalition on the need to approve it in accordance with the constitution and the public interest.”

He agrees with Al-Kadhimi, that “the law will be voted on in the middle of next month, to be implemented about two weeks later.”

He pointed out, “Parliament will resume its work immediately after the end of its legislative recess on the eighth of this month, and at that time we believe that the government has completed the project and referred it to us.”

Al-Nouri concluded, “There is a desire among the political blocs for the current year not to pass without approving the budget because of its great impact on the Iraqi economic situation and as it is considered the most important means of implementing the ministerial curriculum of the Sudanese government.”

On a related note, the representative of the Al-Fateh Alliance, Abbas Al-Zamili, said, “The budget file and its completion is the responsibility of the government, which must complete it within the shortest possible period.”

Al-Zamili stressed, “The need for” the draft budget law to reach the parliament at the end of the current month or the beginning of the second month.

He pointed out, “The budget law will need to be amended by the House of Representatives, and it is necessary for it to arrive as soon as possible so that it can be returned to the Council of Ministers after the amendment and its completion in the first quarter of the year.”

Al-Zamili concluded, “The House of Representatives will begin its work on the ninth of this month and will reconvene its official session. Among its most important projects is the budget, the completion of parliamentary committees, and the election of committee heads.”

The ministerial curriculum of the government of Muhammad Shia’ al-Sudani, which was voted on by parliament at the end of last October, included a number of paragraphs, most notably the speedy submission of the federal budget bill in order to vote on it, including many paragraphs that would revive the economic situation and provide services to the Iraqis.  LINK