Monday Morning Iraq Economic News Highlights 7-24-23

Warning Of Significant Risks Of Devaluation Of The Dinar Against The Dollar

Time: 07/24/2023 10:07:55  Read: 1,638 times  Lawyer Hazem Al-Rudaini, Vice President of the Strategic Center for Human Rights in Iraq, warned today, Monday, of the rapid depreciation of the Iraqi dinar against the dollar in recent days.

Al-Rudaini said in a statement, which Al-Furat News received a copy of, that "this matter portends an increase in the number of the poor and the unemployed, the rise in food and consumer goods, and its direct impact on the daily lives of citizens."

And he demanded, "The government and the central bank need to take quick steps to preserve the value of the Iraqi dinar against the dollar by providing it at all airports and selling it to travelers directly and without intermediaries, and following up the work of private banks that buy from the daily currency auction."

And the Central Bank of Iraq issued a statement earlier confirming that it continues to meet legitimate requests for the US dollar from the official and licensed outlets by it and at the official rate set for the beneficiary, which amounts to (1320) dinars to the dollar.

It is noteworthy that the local markets are witnessing a noticeable rise in the exchange rates of the dollar against the dinar, as it reached more than 1,500 dinars in the parallel market (the unofficial for selling foreign currency).   LINK

Al-Shabandar On The Dollar Crisis: Iraq Will Not Acquiesce, And Patience Has Limits!

Time: 07/24/2023 13:22:26  Read: 143 times  Soon, those concerned and everyone who is interested in the stability of Iraq will be sure that the dollar crisis is not primarily internal, and everything that is internal can be reformed, and that the government of the Sudanese brother is moving towards reforming the financial system in the country.

But let those who should know know that Iraq will not compromise on its sovereignty or dignity, and will not be part of the axes of conflict in the region and the world, and will not succumb to soft or hard pressure.    And he who hates him loses him, and patience has limits!   LINK

The Iraqi Parliament Discusses The Relationship In The "Significant Rise" In The Price Of The Dollar

2023-07-24 02:50  Shafaq News/ The Finance Committee in the Iraqi Parliament will host, on Monday, the Governor of the Central Bank, Ali Al-Alaq, regarding the significant rise in the exchange rate of the dollar against the dinar.

A parliamentary source told Shafaq News agency that the Finance Committee in the Iraqi Parliament is hosting, this afternoon, the Governor of the Central Bank, Ali Al-Alaq, in order to discuss the significant rise in the dollar exchange rate and the bank's procedures and plans to counter this rise.

During the past two days, the exchange rates of the US dollar against the Iraqi dinar increased dramatically, in the Baghdad markets, and in Erbil, the capital of the Kurdistan region, after Washington imposed sanctions on 14 Iraqi banks.

In this context, Moeen Al-Kadhimi, a member of the Finance Committee, told Shafaq News agency, "The government tried to control the exchange rate, by reducing the dollar from 145 to 130, and was able to provide remittances to countries to which remittances can be sent."

Al-Kazemi added, "But there are other countries from which Iraqi merchants import, and the US sanctions prevent sending these remittances, which forces these merchants to obtain dollars from the parallel market, which leads to the dollar's price remaining high in this market, and with the recent measures of the US Federal Reserve not to deal with a number of private banks, this had an impact on the rise in the price of the dollar, to reach 155."

And on the procedures of the Finance Committee in this regard, Al-Kazemi confirms, "There will be a hosting of the governor of the Central Bank and the Ministry of Finance during the next week, to find out the real reasons for the inability to control the parallel price."

Last Wednesday, the US Treasury imposed sanctions on 14 Iraqi banks in a crackdown on Iran's dollar transactions.   LINK

Hosted By Al Halbousi. The Four Presidencies Emphasize The Application Of The Budget Law In All Its Details

436   Today, Sunday, the Speaker of Parliament, Muhammad al-Halbousi, hosted in his headquarters a meeting that included the President of the Republic, Abdul Latif Jamal Rashid, the Prime Minister, Muhammad Shia’ al-Sudani, and the President of the Supreme Judicial Council, Judge Faiq Zaidan. To discuss the overall situation in the country and a number of important files.

During the meeting, the presidencies condemned, according to a statement by the Parliament Speaker’s office, “the deliberate abuse and authorization of the Swedish authorities to insult the Holy Qur’an and the Iraqi flag.” The conferees expressed “their support for the government’s measures to sever relations with Sweden or with any country that does not respect the sanctities of Muslims or supports any action that insults sanctities and religions, stressing at the same time the need to take the necessary measures to protect diplomatic missions.”

The statement added, “The meeting discussed the file of the federal budget law and the need to complete its instructions, follow up on projects and their quality, and spend according to priorities and in a manner that meets the government program.” With regard to the region, the meeting stressed the application of the articles in the Federal General Budget Law in all its details related to oil and non-oil revenues and the disbursement of its dues.

During the meeting, the presidencies emphasized “the need to legislate the laws that were included in the government program and the political agreement paper and approved by the political forces, including the general amnesty law, oil and gas, and the law of the Federation Council,

in addition to a number of draft laws completed by the Presidency of the Republic that were sent to the House of Representatives, including the law of the Supreme Commission for the Empowerment of Women, the law to recover Iraq’s funds, and the law on drugs and psychotropic substances.”

In the water file, the meeting stressed the need to follow up on it with the upstream countries, in addition to the need to legislate the law of the Supreme Water Council.

The meeting also stressed the need for continued cooperation and coordination between the authorities in all files.   https://takadum-news.com/archives/175231

Parliamentary Power Identifies The Most Prominent Points Of Disagreement Over The Oil And Gas Law

Energy  Economy News _ Baghdad  On Monday, the Parliamentary Oil, Gas and Natural Resources Committee identified the most prominent points of disagreement over the oil and gas law. 

Committee member Ali Saadoun al-Lami said, in an interview with the official agency, followed by "Al-Iqtisad News", that "there is no progress regarding the oil and gas law, as the dispute between the region and the center regarding the law continues," noting that "the most prominent points of contention are how to manage the oil fields, as the law states that they are managed by the central government, but the Kurds demand that the management of these fields be by the region, in addition to the marketing mechanism: is it through SOMO or through the region? In addition to the revenues." 

He added, "Discussion and sitting at the dialogue table is the best solution to bring points of view closer," explaining that "members of the Parliamentary Oil Committee met with President Abdul Latif Rashid, Prime Minister Muhammad Shia al-Sudani, and leaders of political blocs, who all expressed their support for passing the law to avoid important problems." 

He stated, "The committee demanded a meeting with the region's president, Nechirvan Barzani, to listen to, discuss and bring together points of view, but this meeting has not yet taken place." 

30 views  Added 07/24/2023 - 11:22 AM  https://economy-news.net/content.php?id=35293

Oil: Total Contracts Maximize Revenues And Develop The Petroleum Industry

Economical  2023/07/24  Oil stated that the contracts concluded with the French company Total will achieve a package of positive factors for the Iraqi economy, including the exchange of experiences and modern technology, the development of the oil industry, maximizing financial revenues and providing job opportunities, in addition to the most prominent importance of these contracts represented in stopping the flaring of gas and converting it into useful energy to supply national power stations and support petrochemical industries.

The official spokesman for the ministry, Assem Jihad, told Al-Sabah: “The agreement signed by the Ministry of Oil with the French company Total includes four important contracts that contribute to achieving sustainable development by investing gas with a capacity of 600 million standard cubic feet, in addition to placing huge financial investments in these projects.”

Jihad pointed out that the signed contracts bear great economic and strategic importance, through which the oil sector, the national economy and sustainable development can be supported, as this agreement includes a contract to transfer sea water, desalinate it and pump it to the oil fields or companies that extract oil, indicating the need for a barrel of water to extract a barrel of oil,

and therefore this project will transfer and desalinate sea water with a capacity of up to 5 million barrels per day, indicating the importance of this step in preserving water wealth and harnessing it for agricultural and human uses as well

.And the official spokesman stated that the agreement also included the conversion of gas-burned energy that accompanies oil extraction into energy that supplies electrical stations and all gas-related industries, and this project aims to achieve an investment rate of gas in the amount of 600 million standard cubic feet per day, as this project is divided into two phases, each phase 300 cubic meters.

Or 1 million cubic feet per day.

Jihad pointed out that the economic importance of the concluded agreement also lies in the development of the Artawi field in Basra Governorate, where Total produces from 80 to 90 to 210 thousand barrels per day.

As Jihad explained, the agreement will ensure the implementation of a project to benefit from solar energy at an amount of 1,000 megawatts, and this matter is one of the largest projects in the region and can be considered the real beginning of investment in the renewable energy sector, and thus these quantities also supply the national electric energy   https://alsabaah.iq/81070-.html

Iraq Imports Oil Products Worth More Than One Billion Dollars In Three Months

Energy  Economy News _ Baghdad  Iraq imported three oil products worth more than one billion dollars during the first quarter of this year, according to the Oil Marketing Corporation (SOMO).

A table published by "SOMO", seen by "Al-Iqtisad News", showed that "Iraq imported three oil derivatives at an amount of 1 billion 235 million 180 thousand and 755 dollars, with a quantity of 1 million 346 thousand and 451 tons in the first quarter of 2023."

And the table indicated that "the quantity of imported derivatives of white oil amounted to 86 thousand and 744 tons at an amount of 90 million 714 thousand and 810 dollars, while the amount of imported gas oil amounted to 366 thousand and 386 tons at an amount of 308 million 196 thousand and 376 dollars."

The table indicated that "the amount of imported gasoline amounted to 393 thousand and 320 tons, at an amount of 836 million and 269 thousand and 569 dollars."

Iraq imports some oil derivatives, especially improved gasoline, to fill the shortage in the local market, and China and India are the most prominent exporting countries to Iraq.

Views 12  Added 07/24/2023 - 9:50 AM  https://economy-news.net/content.php?id=35287

Political "Protection" Secures The Penetration Of Corruption In Iraq's Institutions: Does It Include The File Of Feeding The Army?

Policy |Baghdad today – Baghdad  Today, Monday (July 24, 2023), a member of the Parliamentary Integrity Committee, Representative Hadi al-Salami, justified not opening “many” corruption files that permeate Iraq’s institutions because of what he described as “protection” from political figures.

In an exclusive interview with "Baghdad Today," Al-Salami revealed what he called "substantial and dangerous" "suspicions" about feeding the Iraqi army. Stressing, "Many complaints and reports have been submitted to the Integrity Commission to follow up on this dangerous file," and calling for "the Integrity Commission to move quickly to open this file due to its seriousness."

According to Al-Salami, "suspicions" of corruption affect an important military apparatus in Iraq, warning, "Some of the foods served are unfit for human consumption."

He adds with criticism, "The large files of corruption permeate all state institutions without any exception, and the majority of this corruption is protected by influential political parties and personalities," and concludes his speech with some frustration, "that is why we find many of these files are not opened because of this protection."

Earlier, a member of the Parliamentary Security and Defense Committee, Yasser Iskandar, revealed the committee's intention to submit a letter to the Commander-in-Chief of the Armed Forces regarding the cancellation of "self-financing" contracts to feed the army. Confirming that the signatures of 21 deputies were collected for the purpose of uploading the book, while indicating that the parties behind the file are 90 percent corrupt and outside the military institution.

And the file of feeding the army shifted from its system from within the "units" to the "central" in 2020, which led to the arrival of "bad" meals to the soldiers, according to complaints from them.

It is noteworthy that feeding the army was done through self-sufficiency, which provides meals of good quality to the soldier, and at the required level, in contrast to what is now provided of meals that are not suitable for eating.   LINK

A Committee Of 27 Members To Follow Up On The Amounts Of Compensation For Article 140

The first  2023/07/24  Al -Sabah,  a committee of 27 members in the House of Representatives to follow up on the amounts spent entitled compensation for Article 140.

The head of the Turkmen Bloc, MP Arshad Al -Salhi, said that the formed committee is "devoted to following up the implementation of the compensation of Article 140, according to a representative order issued a month ago and included 27 deputies", expressing his hope that "it follows up the work of the government committee that spent the funds of Article 140", and explained that the committee is not political but to follow up the money spent During the past ten years. "

Al-Salihi said, in an interview with "Al-Sabah", that "the southern governorates suffer from non-disbursement of the funds allocated to the deportees and the displaced, which amount to two billion dinars, but nevertheless, the constitutional Article 140 could not resolve political matters," noting that "the article to restore the rights of the oppressed, but it did not provide anything for the future of Kirkuk and the disputed areas, and it failed to find solutions."

He continued, "Article 140 of the constitution must be amended, because in this formula it did not solve the political entanglement and did not bring solutions, so we must follow up on the funds of the Constitutional Article 140 Committee that were allocated to it."

He pointed out that "the government committee for Article 140 has been formed since 2007 and is still present in the General Secretariat of the Council of Ministers," stressing that "its funds were spent in a manner tainted by corruption, and we must reconsider the directors of the offices in the governorates, because some of those funds were spent by the governorates to compensate for the damages of terrorist operations, and this is not possible, as these funds are intended to address the policies of the defunct regime against citizens and not for terrorist crimes after 2003." https://alsabaah.iq/81093-.html