Iraqi News

Thursday Morning Iraq Economic News Highlights 4-27-23

Al-Sudanese Financial Advisor Determines The Fate Of Iraqi Deposits In US Banks.. What Is Their Value?

The information / special.. The financial advisor to the Prime Minister, Mazhar Muhammad Salih, explained today, Thursday, the fate of the reserves of the Central Bank of Iraq located in American banks, while determining the value of the “sovereign portfolio.”

In an interview with Al-Maalouma Agency, Salih said, “Diversifying the central bank’s reserves from various foreign currencies and various safe investment tools ensures its protection from legal and price risks,” stressing: “There is no pressure exerted on diversifying reserves.”

He added, “These reserves are usually invested in semi-liquid sovereign foreign debt instruments, such as remittances and treasury bonds managed by the governments of countries in the first industrialized world, especially debt instruments with high credit ratings and with appropriate interest, whether they are are American, European, Japanese and Chinese.”

Al-Sudanese financial advisor explained, “The investment portfolio of the Central Bank of Iraq (which includes the country’s foreign reserves of various currencies and gold) is managed according to the optimal global standard ratios, which are formed in the currencies of the dollar, the euro, the pound sterling, the Chinese yuan, the Japanese yen and gold.”

Regarding the value of the sovereign portfolio, Saleh stated that “these currencies are worth about $115 billion in total,” pointing out that “the US dollar invested in US bonds and transfers constitutes a weight of no less than 35-40% of those reserves.” , since dollar oil revenues are the basic origin of the reserves, and that the oil market is mainly a dollar market, since its inception before the First World War until now.

The Ministry of Oil announced, today, Thursday, the final statistics for the revenues of last March, while confirming that it amounted to more than 7 billion dollars.

And the revenues from oil exports and sales from Iraq to the rest of the countries go to the Federal Central Bank, which controls the form of Iraqi deposits, which causes popular and political anxiety as a result of Washington’s control of the hard currency. LINK

Al-Alaq And The Minister Of Finance Put Al-Sudani On The Latest Developments In The “Digitization Of Salaries And Government Spending” File

Baghdad-Iraq today:   Prime Minister Muhammad Shayaa Al-Sudani presided over a meeting of the Committee for the Localization of Salaries and the Unified Treasury Account, in the presence of the Governor of the Central Bank of Iraq and the Minister of Finance, the Prime The Minister’s advisors, the general managers of Al-Rafidain, Al-Rasheed and Al-Iraqi Trade Banks, and the representative of the Federal Office of Financial Supervision.

During the meeting, according to a statement by his media office, Al-Sudani listened to “a briefing by the Minister of Finance on the ministry’s procedures regarding the unified public treasury system, the progress of the process of settling the salaries of state employees, and the procedures related to the application of the electronic payment points (POS) system.”

Al-Sudanese stressed that “the delay in implementing the unified treasury account during the past years has caused many cases of corruption and abuse of public money, the latest of which was the crime of stealing tax guarantee funds (theft of the century).”

And he stressed “the need to address the matter by applying the unified treasury system to reduce corruption, noting that the continuation of the current situation makes the state not aware of the amount of its assets and accounts or the number of its employees.”

The prime minister affirmed that “anyone who works to obstruct this project is considered a contributor to covering up corruption.”

Al-Sudanese directed “to expedite the preparation of new standards, which include the largest number of electronic payment companies, which number about 16, and to contract with companies that provide better services at lower costs.”

He also directed “to form a committee of representatives of ministries, governorates, and government banks, to install electronic payment points (POS), in all institutions, and to seek the help of international and foreign expertise to support the project and encourage citizens to adopt it and deal financially through it.”   LINK

More Than 154 Million For Foreign Remittances: The Iraqi Central Bank’s Sales Approached 200 Million Dollars

2023-04-27 Shafaq News/ The Central Bank’s sales of dollars in an auction today, Thursday, amounted to about 200 million dollars.

Shafaq News Agency reporter stated, “The Central Bank sold today, during its auction for buying and selling US dollars, 187 million, 235 thousand and 328 dollars, which the bank covered at a basic exchange rate of 1,305 dinars per dollar for documentary credits and international settlements for electronic cards, and at a price of 1,310 dinars per dollar for foreign transfers.” At a price of 1310 dinars per dollar in cash.

Our correspondent added; Most of the dollar sales went to enhance balances abroad in the form of (remittances, credits) at 154,835,328 dollars, while the rest of 32,400,000 dollars went in the form of cash sales.

Our correspondent indicated that the number of banks that bought cash dollars amounted to 8 banks, while the number of banks that responded to requests for strengthening balances abroad reached 16 banks, while the total number of exchange and mediation companies participating in the auction was 59 companies.   LINK

Iraq Reaps 7.5 Billion Dollars From The Sale Of Oil During March

Energy  Economy News _ Baghdad   Today, Thursday, the Ministry of Oil announced the achievement of more than $7 billion in crude sales in March.

According to the final statistics issued by the Iraqi Oil Marketing Company (SOMO) and viewed by Al-Eqtisad News, the total oil exports and revenues achieved for the month of March, the amount of exports of crude oil amounted to (100) million and (913) thousand and (27) barrels. With revenues amounting to (7) billion and (506) million and (401) thousand dollars.

The statistics indicated that the total exported quantities of crude oil for the month of March from the oil fields in central and southern Iraq amounted to (98) million (875) thousand (692) barrels, while the exported quantities of Kirkuk oil through the port of Ceyhan were one million (727) million. ) thousand and (494) barrels.

The Ministry of Oil said in a statement that the average price per barrel amounted to (74,385) dollars.

The statement added that the exported quantities were loaded by (35) international companies of several nationalities, from the ports of Basra, Khor al-Amaya, mono-buoys on the Gulf, and the Turkish port of Ceyhan.

Expert: Voluntary Reduction Of Oil-Producing Countries Will Open Fire On The US Economy

Information / Baghdad .. Oil expert, Hamza Al-Jawahiri, predicted, on Thursday, a rise in oil prices immediately after the announcement of the voluntary reduction of the producing countries, indicating that OPEC Plus knows that the confrontation with America will not end through this reduction.

Al-Jawahiri said, in a statement to Al-Maalouma, that “what is currently happening in terms of fluctuation in oil prices is a confrontation between OPEC Plus and America,” noting that “this confrontation will not end, as the latter is preparing for the real confrontation that will begin in a few days.”

He added, “America is currently seeking to reduce oil prices by pumping large quantities of strategic oil reserves that it has into the markets, while OPEC has sought to keep prices within the range of $80 through the voluntary reduction of one million and 660 thousand barrels.” per day, which will start as of the first of March.” next May.”

He pointed out that “the reduction will eventually lead to a major blow to the US economy, and that amount cannot be compensated by any authorized party.”    LINK

Iraq Market: More Than One Billion Shares Traded In 3 Sessions

Market  Economy News – Baghdad   The Iraqi Stock Exchange announced today, Thursday, the weekly trading indicators.

According to a statement received by “Al-Iqtisad News”, “The Iraq Stock Exchange organized during the fourth week of April 2023 three trading sessions, from Tuesday, corresponding to 04/25/2023, to Thursday, corresponding to 04/27/2023, when trading sessions were not organized for today.” Sunday 04/23/2023 and Monday 04/24/2023 to be considered an official holiday.

The statement added, “During this week, the following indicators were achieved:

  1. The number of shares traded during this week amounted to more than (1) billion shares.
  2. The value of shares traded this week amounted to more than (2) billion dinars.
  3. The trading index in the market closed for the first session of the week at (728.12) points, while the index closed at the end of the week at (697.63) points, achieving a decrease of (4.37%) from its closing at the beginning of the session.
  4. During the week, more than (2000) buying and selling contracts were executed on the shares of the companies listed in the market.

Repeatedly Stopping The Region’s Oil Confiscations.. Puts It On The Abyss Of Bankruptcy

April 27, 2023  Baghdad / Obelisk Al-Hadath: Media outlets reported on an official source in the Ministry of Finance in the Kurdistan region of Iraq, that “the region incurred a loss estimated at 850 million dollars,” one month after stopping its oil exports, amid official fears that it would go bankrupt.

The suspension decision, which the federal government won as a result of a lawsuit before the International Court of Arbitration, reflected negatively on the region’s economic conditions.

And the region in which the economy depends heavily on oil exports, the cessation of exports may lead to a sharp decline in economic growth and an increase in unemployment rates.

The longer the period of suspension of exports, the greater its impact on the exporting economy, as it may lead to exacerbation of financial problems and increase the chances of bankruptcy.

And the cessation of oil exports could lead to a sharp deterioration in the financial situation of the region, and increase the chances of bankruptcy.

Later, it was agreed between the region and Baghdad to resume oil exports.

According to circulating information that lacks official confirmation, the region has incurred a financial loss estimated at about $850 million since the decision to stop exporting its oil on the twenty-fifth of last March.

And in the event that the export cessation continues, the region is on the verge of an unprecedented state of bankruptcy.

Prime Minister Muhammad Shia al-Sudani and the President of the Kurdistan Region, Nechirvan Barzani, agreed earlier this month to resume oil exports, and stressed that the direct technical authorities would immediately implement the agreement with Erbil.

Last month, Iraqi government circles talked about 4 basic items included in the agreement between the federal government and the Kurdistan region. The first included the export of 400,000 barrels of oil per day from Kurdistan through the National Oil Company “SOMO” and naming a representative of the region in the company, and this happened for the first time after years.

There were long disputes between the two sides, and it was also agreed that a Kurdish official would occupy the position of assistant to the head of the company (SOMO). However, the aforementioned agreements did not appear to be implemented yet.

In the region and even in Baghdad, the presence of alternative sources of income, such as agriculture, tourism and manufacturing, the impact of stopping exports may be much less on the economy.

Parliamentary Legal For / Nina /: Parliament Will Approve The Budget Before The Start Of Its Legislative Recess

Thursday 27, April 2023 09:50 | Economical Number of readings: 486

Baghdad / NINA /- The Parliamentary Legal Committee has settled the controversy over approving the draft federal budget law, in conjunction with the legislative recess of the House of Representatives.

Committee member, Representative Raed Al-Maliki, stated, in a statement to the National Iraqi News Agency ( NINA ), that “the Parliamentary Finance Committee will proceed with joint meetings to host ministers and governors until the end of May, in order to complete the budget in its final form.”

He added, “The legislative recess will start on the ninth of May, but the House of Representatives will extend its work for another month with the existence of the general budget, according to the internal system, and it will finish approving the budget during the extension period before entering its legislative recess.”

And he continued to say, “The changes that will affect the provisions of the budget law are related to paragraphs and items related to the financial aspect,” noting that “there are independent blocks and deputies who have reservations and observations. After approving the budget.

The Three-Year Budget… A Guarantee For The Implementation Of The Government Program

Economical  2023/04/27    Baghdad: Hussein Thaghb Al-Tamimi   A new mechanism for approving the federal budget comes to support developmental trends and is supportive of the stages of work for a period of three years, as it was based on legal legislation employed to make the budget in this way, and the legislation is enforceable for the second and third years of the life of the financial plan and there is no need for the intervention of the legislative authority except when it requires adjustment in my budget The two years 2024-2025 and at the request of the executive authority itself, thus enabling the executive authority in its ministries, governorates and agencies to implement its ministerial curriculum in the fullest and sustainable way.

Financial advisor to the Prime Minister, Dr. The appearance of Muhammad Salih said: “Fiscal policy for the first time in the history of the general budget in Iraq practices the principle of medium-term financial planning, which is based on the provisions of Article 4/Second of the applicable Federal Financial Management Law No. 6 of 2019 as amended.”

He added, “Despite the commitment to the annual budget, which is defined on the basis of the fiscal year that begins on (1/1) of each year and ends on (12/31) of the same year, as stated in the provisions of Article 1/ Ninth of the same law above, as well as in the introduction to Article Fourth / Second of the law also above,

however, the development factor and the nature of maintaining the strength and unity of the flow of funds for the new strategic investment projects and the proposed development funds in terms of investment spending, required financial sustainability and stability in the executive activity without interruption imposed by the legislative process on the subject of the annual budget (i.e. avoiding Legislative sclerosis due to the annual approval of the budget).

He pointed out that “the implementation of the development and service provisions of the ministerial curriculum adopted by the government during its executive life, and which was approved by the House of Representatives last October, requires, within the framework of a sustainable financial policy, the implementation of a medium-term general budget for the years 2023-2025, as the provisions for implementing a law will be The general budget is binding for the year 2023, but it is subject to amendment by the government in other years, with the approval of the House of Representatives, when needed.

Thus, Article 4/Second of the Financial Management Law No. 6 of 2019 as amended, which was approved in the three-year budget, stipulates the following: The annual budget starts from (1/1) and ends on (12/31) of the same year, and the Federal Ministry of Finance has the right to prepare an average budget The term is for a period of (3) years, presented once and enacted, and the first year is obligatory, and the Council of Ministers, based on a proposal from the Ministries of Finance and Planning, may amend it for the second and third years and with the approval of the Council deputies.

Saleh stressed that “the legislation will be effective for the second and third years of the life of the financial plan, and there is no need for the intervention of the legislative authority except when it requires adjustment in the budgets for the two years 2024-2025 and at the request of the executive authority itself, and this is what will provide a stable legislative cover for fiscal policy in particular and economic policy in general, In order for the executive authority in its ministries, governorates, and agencies to implement its ministerial curriculum in the fullest and sustainable manner.

Financial expert d. Mahmoud Dagher said: “A paragraph was mentioned in the Financial Management Law that allows the development of a three-year financial plan that is embodied in the possibility of presenting three budgets at once to the House of Representatives, the first being binding and the other two being modified accordingly.

his paragraph was employed by the government, provided that the budget for the year 2023 and the total Its establishment is 199 trillion dinars, and the budget for the next two years will be of the same financial size, and it will be repeated.

Dagher preferred to present an actual budget for three years, and in this way I find it more beneficial for the country than presenting a budget for one year and repeating it for the next two years.