Iraqi News

Sunday Morning Iraq Economic News Highlights 4-9-23

Parliamentary Conquest: We Will Not Submit To Any Bargaining Over Passing The Budget

Information / Baghdad..    On Sunday, the representative of the Al-Fateh Alliance, Muhammad Al-Baldawi, confirmed the impossibility of passing any bargaining during the approval of the federal budget, indicating that some forces hinting at passing laws in return for supporting the budget is an early election propaganda.  Al-Baldawi said, in a statement to Al-Maalouma, that “some political forces began to hint at the introduction of other laws in return for passing the budget law, and this proposition will be met with widespread rejection by the rest of the political forces.”

He added, “The draft budget law must be independent, as it preserves the general interests of the Iraqi people, such as salaries, appointments, and the interests of all provinces. Therefore, any law that is intended to be brought before the budget law is rejected.”

Al-Baldawi pointed out that “the Fatah parliamentary bloc and other political forces strongly reject the submission of the budget law to any political bargaining,” stressing that “these propositions will be completely rejected, and we will work to pass the law as soon as possible, away from any political debates.”

Parliament Speaker Muhammad al-Halbousi sought to export his internal crisis within his party, which suffers from major public defections, to Baghdad, through his clash with Prime Minister Muhammad Shia al-Sudani and insisting on postponing the budget submission to parliament.   LINK

An economist told NINA: The increase in the operating budget doubles the investment… evidence that there is no economic growth in the country

Sunday 09, April 2023 11:34 | Economical Number of readings: 233  Baghdad / NINA / – The economic expert in the field of oil and energy, Muhammad Hawrami, confirmed: The increase in the operating budget doubles the investment… evidence that there is no economic growth in the country.

He told the National Iraqi News Agency / NINA /: The budget problems are diverse and many … among the most important of which is the size of the operational budget, which doubles the investment budget, which is the measure of economic growth and the creation of new job opportunities for graduates and the idle workforce.

Hawrami added: The other note is the dependence of more than 95% on oil revenues, as in the budgets of past years, and that oil and energy prices in general fluctuate and always fluctuate according to market requirements and international, regional, political and economic factors… Therefore, many countries Avoid such budgets.

He explained: The factor of economic and financial stability for any country is through the collection of local revenues from the collection of electricity, water, taxes, and other fees.

More Than 7 Million Barrels Of Iraq’s Oil Exports To America In A Month

2023-04-09 Shafaq News/ The US Energy Information Administration announced, on Sunday, that Iraq’s oil exports to America amounted to more than 7 million barrels last March.

The administration said in a table seen by Shafaq News Agency, “Iraq exported 7.533 million barrels of crude oil to America during the month of March, with an average of 243,000 barrels per day, down from February, in which Iraqi oil exports to America reached 7.896 million barrels, with an average 282 thousand barrels per day.

She added, “Iraq exported crude oil to America during the first week of March at an average of 346,000 barrels per day, while an average of 144,000 barrels per day was exported in the second week, and an average of 138,000 barrels per day was exported in the third week,” noting that “the fourth week’s exports amounted to An average of 345,000 barrels per day.

The US Energy Information Administration stated that “Iraq ranked fourth in its exports to America during the past month after each of: Canada, Mexico, and Saudi Arabia, and ranked second in the Arab world after Saudi Arabia, whose last exports to America amounted to 12 million and 462 thousand barrels per day,” indicating that “Canada It ranked first as the most oil-exporting country to America, followed by Mexico.   LINK

Within 3 Months… Iraq Imported Goods From Jordan Worth About $167 Million

Money  and business  Economy News – Baghdad  The Jordan Chamber of Commerce announced, on Sunday, that Iraq topped the list of countries importing commercial goods from Jordan during the first quarter of this year.

And the Chamber said in a statement, that “goods and commodities were exported to Arab and foreign countries, during the first quarter of this year 2023, about 285 million dinars, compared to approximately 197 million dinars for the same period last year.”

She added, “Iraq came first with the largest Arab countries importing from Jordan in terms of the value of imported goods during the first quarter of the year 2023, which amounted to 117 million dinars.”

It is worth noting that every 70 Jordanian dinars equals about 100 US dollars.

Profits Of “Pepsi Baghdad” Grow By 300% During The First Quarter Of This Year

Money  and business  Economy News – Baghdad    Baghdad Company for Soft Drinks, known as “Lipsi Baghdad”, made profits during the first quarter of this year of 26.6 billion dinars before tax.

According to the company’s budget obtained by “Al-Iqtisad News”, the company’s revenues during the first quarter of the year 2023 amounted to 152.6 billion dinars, achieving a growth of more than 15% compared to the first quarter of the year 2022.

The company’s revenues grew by more than 300% during the first quarter, achieving 26.6 billion dinars, while during the same period of the year 2022, the company’s revenue was 6.6 billion dinars.

The company’s stock responded to the positive results achieved during the first quarter, as it rose by 2.23% during the trading session in the first hour.

A Sudden Decision By OPEC Raises Oil Prices And An International “Concern” Of An Economic Recession

Economy  |Today, Baghdad Today – Translator  Today, Sunday, the economic newspaper “The Economic Times” announced a rise in oil prices, following a “surprising” decision issued by OPEC, which included a reduction in its daily output.

And the newspaper indicated, according to what was translated (Baghdad Today), that “OPEC decided to reduce daily production by about 1.2 million barrels per day, after previous assurances it gave to the international market that there were no intentions to change production policy during the coming period.”

The newspaper described OPEC’s decision as “surprising,” which led to a rise in oil prices that exceeded the eighty-dollar barrier, before returning to settle at eighty dollars per barrel, stressing that “despite the blow to the market as a result of the decision, oil prices have maintained their stability.” stability today.

She explained that “OPEC’s decision included reducing oil production from Saudi Arabia by about half a million barrels per day, while Iraq reduced its production by about 211 thousand barrels, the UAE by 144 thousand barrels, and Kuwait by about 128 thousand barrels per day. These moves, the newspaper said, aim to” control the recession in Oil prices as a result of the decline in global demand.

The newspaper pointed out that “the current decline in oil demand, which led OPEC to reduce production to maintain the price ceiling, comes as a result of” fears of a global economic downturn that has come to dominate the international market, especially after the crises that international banks were exposed to, the restrictions placed on Russian oil and the failure of efforts to control inflation rates in America and Europe.  LINK

Within A Week, The Central Bank Sells More Than A Billion Dollars

Economical  04/09/2023   The Central Bank of Iraq’s total sales of hard currency to US dollars during the past week amounted to more than one billion dollars.

And the Central Bank sold during the past week for the five days in which the auction was opened, the amount of one billion and 112 million and 127 thousand and 560 dollars at a daily rate of 222 million and 425 thousand and 512 dollars, up by 1.54 percent from what was recorded in the previous week, in which the sale rate reached 219 million and 057 One thousand and 295 dollars.

The highest dollar sales during the past week were on Wednesday, when sales amounted to 271 million 933 thousand and 423 dollars, while the lowest sales were on Sunday, when sales amounted to 184 million 370 thousand and 292 dollars.

Sales of foreign remittances amounted during the past week to 922,277,560 dollars, an increase of 79.5 percent, compared to cash sales, which amounted to 189,850,000 dollars.

Sales went in the form of cash and transfers abroad to finance foreign trade, while the selling price of amounts of documentary credits and international settlements of electronic cards reached 1,305 dinars per dollar, while the price of selling amounts of transfers abroad and the price of cash sales amounted to 1,310 dinars per dollar.

Foreign Currency Window And The Stability Of The Dinar Exchange Rate

Sameer Al-Nusairi     The procedures of the Central Bank and the three packages issued by it to facilitate obtaining foreign currency for foreign trade purposes and cover travel, treatment and study expenses for citizens, and the strict adherence of banks to the instructions and controls for external transfer for the year 2023 and the due diligence instructions, and the Central Bank’s departments dismantled the obstacles facing foreign transfers operations in cooperation with international bodies. Which led to the entry of new numbers of merchants and importers to the electronic platform, which raised the rates of foreign remittances amounts in the foreign currency sale window, which ranged between 150-200 million dollars per day,

and this was reflected in bridging part of the gap between the official price and the price parallel to the exchange rate of the dinar against the US dollar, and we expect During the coming period, the dinar will continue to recover and its purchasing value in the market will increase. We also expect that the central bank’s efforts will continue to issue new packages to facilitate external transfers.

The important thing in the increase in foreign currency window sales is to make sure 100% that all foreign transfers that are made according to the electronic platform are sound transfers according to international standards and that the foreign currency sale window is an economic indicator that achieves one of the goals of monetary policy.

And that “drawing accusations against the Central Bank and banks of wasting foreign currency without evidence proving the existence of suspicions of corruption, money laundering, or currency smuggling, and that the proposition that says selling currency is a waste of public money, this is a description that has nothing to do with the economic process.”

It must be noted that “the process of selling the currency window began to be implemented by the Central Bank on 4/10/2004 in implementation of Article 28 of the Central Bank Law No. 56 of 2004, which allows the Central Bank to buy and sell foreign currency, and work has continued on this process to meet the needs of the Ministry of Finance in terms of currency For the purposes of the operational budget, the purchase of dinars from the public for the purpose of controlling liquidity levels, which is known as the process of monetary sterilization on the one hand, and to rotate the dinar and resell it to the Ministry of Finance for the purposes of paying salaries and wages and securing government expenditures as well as meeting and covering imports, and maintaining the stability of the target exchange rate from the Central Bank.

And that “the window for selling foreign currency is considered one of the largest open market operations in controlling local liquidity levels and placing the cash surplus in its proper paths, which is a good economic indicator and achieves one of the objectives of monetary policy, and this is consistent with what is practiced by” the Central Bank of Iraq of multidimensional functions, as it is concerned with financial stability Managing the payment system, managing foreign reserves, licensing and monitoring banks and financial institutions, and setting up preventive controls, in addition to other tasks related to cash issuance and publishing economic data, indicators and forecasts.

And that “the basic tasks that the central bank performs is managing monetary policy that aims to control inflation, stimulate the economy, balance the balance of payments, and achieve monetary stability.”