Iraq Economic News and Points to Ponder Sunday Afternoon 12-1-24
With A Stable Outlook, Fitch Confirms Iraq At ‘B-‘
Amr Salem November 28, 2024 Baghdad (IraqiNews.com) – Fitch Ratings affirmed on Thursday Iraq’s credit rating at ‘B-‘ with a stable outlook.
The US credit rating agency said in a statement that Iraq’s ‘B-‘ rating is a reflection of its high level of political risk, poor governance, and heavy reliance on commodities.
As the government gradually eliminates production cutbacks to cover increased spending, Iraq’s oil output will rise to 4.28 million barrels per day in 2025 and 4.54 million by 2026, according to Fitch Ratings.
Iraq’s budget deficit is projected to increase from 2.0 percent of GDP in 2023 to 8.0 percent of GDP in 2024, with an average of 12.4 percent throughout 2025–2026.
Fitch Ratings is one of the three statistical rating agencies recognized by the US Securities and Exchange Commission.
In order to assist investors and institutions in evaluating risks, the agency offers credit ratings that represent the capacity of governments and financial institutions to fulfill their commitments.
The ratings, which assist in gauging investment risks, vary from ‘AAA’ to ‘D,’ with ‘AAA’ signaling the highest and safest grade and ‘D’ indicating a significant default risk.
The organization is a major actor in international investment choices and credit risk assessment since it depends on thorough financial analysis that covers economic performance, public debt, political stability, and the global economic climate.
https://www.iraqinews.com/iraq/with-a-stable-outlook-fitch-confirms-iraq-at-b/
Parliamentary Finance: This Is The Problem Of The Draft Amendment To The Budget Law And This Is The Date For The Tables To Arrive
Sunday 01 December 2024 | Economic Number of readings: 109
Baghdad / NINA / The Parliamentary Finance Committee revealed some details of its joint meeting with the agents and senior cadre officials in the Ministry of Oil, to discuss oil revenues and the draft amendment to the general budget law related to production costs in the Kurdistan Region's fields.
The head of the committee, Atwan Al-Atwani, said in a statement to media representatives, including the National Iraqi News Agency / NINA / today, Sunday, that "the meeting focused on the technical aspects of the oil revenues file, especially with regard to the extent of the region's commitment to the agreed-upon decision of the consulting company, the time frame required to complete the requirements of this estimate, and the estimated production costs and criteria for calculating them."
He explained that "there is an urgent need to end the management of this file according to legal foundations that achieve justice, which requires studying and reviewing the new amendment draft," indicating that "the agents of the Ministry of Finance will be hosted in a new meeting to explain the mechanism for paying these amounts that are considered sovereign expenses."
He added, "The draft amendment relates exclusively to Article 12, Second C, and does not include any other article in the General Budget Law," indicating that "the problem with the draft amendment to the new budget law is the extent to which companies contracting with the region adhere to the results of arbitration and the decision of the consulting company,
which may indicate a discrepancy between the companies' vision and conviction in determining the price and costs of production and the decision of the consulting company," noting the necessity of having an obligation to the provisions of the law and their implementation, and we do not want to add other new provisions, but rather limit ourselves to binding governing provisions."
Regarding the general budget tables, he explained, "The tables are supposed to reach the House of Representatives before the end of this year." / https://ninanews.com/Website/News/Details?Key=1172142
With The Document... The Central Bank Directs To Stop Financial Transfers To Tiktok Agents Inside The Country
Sunday 01 December 2024 | Economic Number of readings: 75 Baghdad / NINA / The Central Bank of Iraq has directed to stop financial transfers to TikTok agents inside the country.
According to a document issued by the Iraqi center, which NINA News Agency has reviewed, "the decision came based on a letter from the Iraqi Ministry of Communications."
According to this request, the Central Bank directed all authorized banks and non-banking institutions in Iraq to "stop incoming and outgoing financial transfers to TikTok agents inside Iraq."
According to this procedure, the financial revenues of TikTok users in Iraq will decrease, as the "clicks" and gifts provided by the application and sent by subscribers to each other, which are bought and sold from device and smartphone stores, will no longer benefit them.
Clicking on the TikTok application is a term that refers to a specific mechanism used by some users to obtain rewards or benefits within the application by interacting with the content intensively. Clicking usually includes users' interaction with video clips, such as continuous viewing or interacting with challenges and offers, with the aim of collecting points or prizes. These prizes may be in the form of "virtual gifts" that can be converted into real money through a certain mechanism.
The process is done by purchasing "TikTok Coins" which are used to purchase digital gifts, which can be sent to content creators as support. After collecting a certain amount of these virtual gifts, users can convert them into real money. https://ninanews.com/Website/News/Details?key=1172159
Private Banks Association Announces Increase In Deposits In Banking Sector Over Last Two Years
Banks Economy News – Baghdad The Association of Private Banks announced today, Sunday, the increase in deposits in the banking sector during the last two years, while indicating the government’s great interest in the recent period in relation to digital transformation in general and the shift towards an electronic payment system.
The Executive Director of the Association of Private Banks, Ali Tariq, said in a statement to the official agency, which was followed by "Al-Eqtisad News": "During the last two years, deposits in the banking sector have increased, but there is still a large amount of cash outside the banking system, as this requires increasing confidence in the banking sector, whether governmental or private, and strengthening this confidence through the Central Bank of Iraq and the Iraqi government,
in addition to offering investment programs for deposits that are reflected in citizens' deposits, which may achieve returns for depositors in these banks, and thus there is an incentive and motivation to increase these deposits."
Tariq added, "Strengthening the electronic payment system in Iraq has very positive repercussions on increasing the use of the banking system in payment and settlement operations, whether between citizens and government services or citizens with private commercial institutions," pointing to "the government's great interest in the recent period in relation to digital transformation in general and the shift towards an electronic payment system at the level of financial transactions."
He added, "About 75 percent of the money supply is outside the banking system and requires a great effort to encourage citizens, companies and institutions to use the banking system more, which is currently happening, but this type of work needs to be accelerated to control financial operations in Iraq." https://economy-news.net/content.php?id=50417
Iraq Ranked Second Among Oil Exporters To America Last Week
Sunday 01 December 2024 10:19 | Economic Number of readings: 186 Baghdad / NINA / The US Energy Information Administration announced today, Sunday, that Iraq ranked second among oil exporters to America, surpassing Mexico and Saudi Arabia during the past week.
The administration said in a table, "The average US imports of crude oil during the past week from eight major countries amounted to 5.657 million barrels per day, down by 1.08 million barrels per day from the previous week, which amounted to 6.737 million barrels per day."
It added that "Iraq's oil exports to America amounted to 277 thousand barrels per day last week, up by 40 thousand barrels per day from the previous week, which amounted to 237 thousand barrels per day."
The administration indicated that "most of America's oil revenues during the past week came from Canada, followed by Venezuela, Saudi Arabia, and then Brazil."
According to the table, "the amount of US imports of crude oil continued at its rates from Mexico, Nigeria, Colombia, and Ecuador." https://ninanews.com/Website/News/Details?key=1172075
Gold Prices Drop In Baghdad
Stock Exchange Economy News – Baghdad The prices of "foreign and Iraqi" gold decreased in the local markets in the capital, Baghdad, today, Sunday.
This morning, gold prices in the wholesale markets on Al-Nahr Street in Baghdad witnessed a selling price of one mithqal of 21 karat Gulf, Turkish and European gold of 560 thousand dinars, and a purchase price of 556 thousand dinars.
The selling price of one mithqal of 21-karat Iraqi gold was recorded at 530 thousand dinars, and the purchase price was 526 thousand dinars.
As for gold prices in goldsmiths’ shops, the selling price of a mithqal of 21-karat Gulf gold ranged between 560,000 and 570,000 dinars, while the selling price of a mithqal of Iraqi gold ranged between 530,000 and 540,000 dinars. https://economy-news.net/content.php?id=50414
Dollar prices fall in Baghdad and Erbil with the closing of the stock exchange
Economy | 01/12/2024 Mawazine News – Baghdad Baghdad and Erbil markets witnessed a decline in the dollar price on Sunday evening with the closing of the stock exchanges.
The dollar price fell in the Al-Kifah and Al-Harithiya stock exchanges in the Iraqi capital, Baghdad, to 149,900 dinars per 100 dollars, after it had recorded 150,000 dinars per 100 dollars in the morning.
The selling prices also stabilized in the local exchange markets in Baghdad, where the selling price reached 151,000 Iraqi dinars per 100 dollars, while the purchase price recorded 149,000 dinars per 100 dollars.
In Erbil, the capital of the Kurdistan Region, the dollar also recorded a decline, where the selling price reached 149,750 dinars per 100 dollars, and the purchase price reached 149,650 dinars per 100 US dollars. https://www.mawazin.net/Details.aspx?jimare=257075
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