Don961 » October 28th, 2021
Iraq achieves additional oil revenues of 16 billion dollars
– Two Hours Ago
Today, Wednesday, the Iraqi Ministry of Oil announced that it will achieve additional revenues from the sale of oil, amounting to 16 billion dollars this year 2021.
And the ministry’s spokesman, Assem Jihad, told the Iraqi News Agency (INA) that “the additional revenues achieved by the Ministry of Oil in the federal general budget for the fiscal year 2021 will reduce inflation and the volume of debts,” noting that the ministry was able to export quantities of oil that generate additional revenues. .
Jihad expressed his hope for the stability of oil prices and the achievement of revenues, noting that Baghdad is “with realistic prices in the oil market, not exaggerated ones.”
He pointed out that the fluctuation of the oil market will cause confusion for producers and consumers, but the wise policy by “OPEC” and “OPEC Plus” (OPEC +) will work to reach stable prices without exaggeration.
Earlier this October, Jihad considered that the rise in oil prices in the global market is a good indicator to support Iraq’s federal budget for 2022.
Iraqi Oil Minister Ihsan Abdul-Jabbar said last week that he expected oil prices to reach $100 a barrel in the first and second quarters of 2022, with global stockpiles dropping to their lowest levels.
In recent days, Brent crude has been trading above $86 a barrel, the highest level in 3 years, and US West Texas Intermediate crude futures have also risen, exceeding $84 a barrel.
It should be noted that Iraq relies on oil to finance more than 95% of its budget, and a price of $45 per barrel has been set for this year’s budget, with an export volume of more than 3 million barrels of oil per day.
Iraq’s budget for the year 2021 was announced last April with an estimated size of more than 89 billion dollars, and an expected deficit of 19.8 billion dollars.
Source: agencies link
Samson » October 28th, 2021
Adviser: The Rise In Oil Prices Will Contribute To Covering The Budget Deficit Of 29 Trillion Dinars
27th October, 2021
Expert financial advisor to the government, Mazhar Muhammad Salih, confirmed that the rise in oil prices will contribute to covering the current budget deficit of 29 trillion dinars at a rate of 100%, provided that the planned non-oil revenues achieve a ratio of approximately 90-100%, not 30%, as is expected, to widen the fiscal deficit gap in the general budget.
And Muhammad Salih said in a press statement, which was monitored by The Independent today, Wednesday, that “despite the fact that monetary policy has moved from the stage of challenges that accompanied the economic depression in the country to the stage of détente and the search for opportunities, which was confirmed by two things
The first of which: the increase in the Central Bank of Iraq’s foreign currency reserves by 12 billion dollars during the current fiscal year 2021, and secondly, financing the federal budget deficit from the flow of cash revenues accumulated by the financial buffer as a result of the growing oil price differences from 45 dollars in calculating oil revenues in the budget to 80 dollars currently with an annual average of no less than 65 dollars, which covers the budget deficit.
The current amount of 29 trillion dinars, at a rate of 100%, provided that the planned non-oil revenues (also) achieve a ratio of approximately 90-100%, not 30%, as is expected, to widen the fiscal deficit gap in the general budget.
He added: However, there are two other things that still represent the concern of the difficult Iraqi economic equation, which is the humility of the expected annual economic growth to (positive 1%), which is less than the population growth rate of 2.6%, which indicates the continued high levels of unemployment among young people by about 23%, in addition to the increasing levels of poverty that still take from the prosperity of life for about 40% of the country’s population, accompanied by creeping annual inflation that increased from 1% at the beginning of this year to rise to about 9.5-10% annually.
The government advisor stressed the need to exercise monetary policy with its available tools to address expected inflation and the problems of fluctuation in the stability of the real sector in the issues of growth and unemployment and how the central bank uses the exchange rate tool as a nominal stabilizer to reach a equilibrium exchange rate that targets imported inflation and leads to an improvement in the value of the Iraqi dinar purchasing through reducing the increases in the degree of growth rates of inflation through the framework of a gradual policy, meaning a decrease in the increasing increases in price growth. LINK
Dinarianelbasu » October 28th, 2021
Imo this answer that they are in 2021 fiscal year and I remember years back Frank draw a table with oil prices and when they reach 65 something is going to happen. 1to1
Source: Dinar Recaps
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