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TNT
Tishwash:
Parliamentary Finance reveals the effects of the oil price increase and its differences in the 2023 and 2024 budgets
Member of the Finance Committee in the Iraqi Council of Representatives, Mustafa Al-Karawi, revealed today, Monday, the effects of the increase in the price of oil and its difference in the 2023 and 2024 budgets, while he spoke about the fate of the revenues of the difference in the price of a barrel, which is approaching the $10 limit for each barrel sold.
Al-Karawi said, “90 percent of the country’s revenues depend mainly on oil, and the more oil revenues or the price of a barrel of oil increase, the lower the expected deficit in Iraq’s budget.”
He added, “There is no big difference between the 2023-2024 budgets, as the government relied on a price difference of about $10 if it built its budget on $70 per barrel and expected the current price of $80 per barrel.”
Al-Karawi explained that “the increase in oil revenues will contribute to bridging the deficit, and since the expected difference is $10, the deficit coverage will be 16 trillion dinars in the 2024 budget.”
It is noteworthy that Iraq sells about four million and 250 thousand barrels of oil per day, and needs about 54 trillion dinars as salaries , as the 2024 budget was approved at a fixed price of $70 per barrel, while the current price of a barrel is $90, which reflects the fluctuations of the oil market. link
Prime Minister’s Advisor Announces Iraq’s Completion of Integration Steps by Providing Safe Environments to Attract Investment
The financial advisor to the Prime Minister, Mazhar Mohammed Salih, identified on Sunday the important strategic, field and organizational factors that encourage international investors to work in Iraq, while pointing out two basic starting points for the development of the investment environment in the country.
Prime Minister Mohammed Shia al-Sudani confirmed last week, while chairing the eighth meeting of the Higher Committee for Reconstruction and Investment, that Iraq has become a safe and attractive environment for capital from international companies, and a preferred market for businessmen and investors, thanks to the facilities and legislation provided by the government since its formation.
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Saleh said, in a statement reported by the official news agency, and reviewed by “Al-Eqtisad News”, that “the Prime Minister’s statement regarding the development of the investment environment in Iraq comes from two main starting points: the first is Iraq’s completion of its integration steps in providing safe and appropriate environments to attract foreign investment in Iraq, the latest of which is our country’s accession to the agreement sponsored by the United Nations and called the Singapore Investment Agreement.”
He added, “This agreement seeks to improve the investment climate in member states by enhancing transparency and fair regulatory procedures, in addition to providing mechanisms for resolving disputes between investors and countries through faster mediation or international arbitration, which gives investors a legal means to guarantee their rights, all of which are factors that the government of the Republic of Iraq believes in to encourage international investors to invest in our country with high resources.”
Saleh stressed that “the Singapore Agreement and joining it is an important step towards enhancing international trade and investment, which contributes to achieving economic growth and improving economic relations between international groups.”
He added that “the second part, which the Prime Minister referred to, is the momentum of the natural and human material resources of an important strategic country like Iraq, which ranked ninth among the countries of the world in terms of natural resources, and first in the world in possessing one square kilometer of resources in the ground.”
He explained that “the geographical location of Iraq, which connects European countries by land with Asian countries by sea, encouraged the launch of the Development Road project, which took its executive steps from the Faw Port upwards within the construction of the dry canal and the upcoming related industrial, agricultural and service projects and in accordance with an important regional and international cooperation framework to attract global investments.”
He pointed out that “all these strategic, field and organizational factors represent a positive invitation for international investors to work in Iraq under the direct sponsorship of the executive authority to facilitate their work and with high-precision legal protection link
Rafidain Bank announces the implementation of the comprehensive banking system in 31 of its branches in Iraq
Rafidain Bank announced today, Tuesday, the implementation of the comprehensive banking system in the Pharmacists Branch in Basra, thus joining the branches that have activated the comprehensive system in Baghdad and the governorates, in addition to the border crossing branches (Zurbatiya – Safwan – Arar – Trebil).
Thus, the number of effective and completed branches of the system becomes (31) branches, in an important step to strengthen the banking system, achieve its requirements, and move away from paper work and completely towards electronic systems.
The bank confirmed in a statement today that the digital transformation plan and the adoption of the comprehensive banking system are proceeding according to the set timetables to include all the bank’s branches in the implementation of the system, especially since the priorities and adoptions of the government program include electronic transformation in financial transactions, reducing the circles of routine for citizens, shortening time, simplifying procedures, overcoming obstacles, and intensifying efforts to improve the level of services provided to customers and completing their transactions link
The Ministerial Council for Economy issues decisions, including obligating government agencies to purchase national products
The Ministerial Council for Economy issued several decisions during its meeting in Baghdad, today, Monday, including obligating government agencies to purchase the national product in support of the country’s economy, and the Ministry of Water Resources submitting a detailed report on the salinity treatment project, while approving several projects in the Rutba district in Anbar Governorate.
A statement issued by the Ministry of Foreign Affairs – received by the Iraqi News Agency (INA) – said: “Deputy Prime Minister and Minister of Foreign Affairs, Chairman of the Ministerial Council for the Economy, Fuad Hussein, chaired the nineteenth session of the Ministerial Council for the Economy, in the presence of the Deputy Prime Minister and Minister of Planning, the Ministers of Agriculture, Industry, Labor and Social Affairs, the Secretary-General of the Council of Ministers, the Chairman of the Securities Commission, the Undersecretary of the Ministry of Oil, and the Prime Minister’s Advisors for Economic and Legal Affairs.”
He added, “The Council hosted representatives of the Ministry of Oil to discuss facilitating customs procedures related to goods belonging to the Ministry of Oil (national effort contracts, licensing round contracts, and strategic contracts for the Ministry.”
The Council confirmed – according to the statement – its decision and the circular of the General Secretariat of the Council of Ministers to allow the clearance of goods belonging to ministries, entities not affiliated with a ministry, and government institutions after submitting an official pledge to complete all customs procedures in accordance with the Customs Law when due. The Council also decided that the Ministry of Water Resources would submit a detailed report on the project to treat salinity and prevent the rise of salt tides in the Shatt al-Arab and the opinion of the advisory body regarding it.
The Council decided to emphasize to all ministries and entities not affiliated with a ministry the commitment to implement Article 30/Second of the Federal General Budget Law (purchase of the national product) in support of the national economy and national industry, especially with regard to liquefaction seals (which close containers for transporting goods and track them electronically), and the Ministry of Industry to proceed with procedures to impose product protection fees.
The Council also decided to approve the project to rehabilitate streets in the neighborhoods of Al-Mithaq Al-Jadeed, Al-Matar Al-Jadeed, and Al-Intisar in Rutba District, and to direct The Reconstruction Fund for Areas Affected by T*******t Operations will follow up on the implementation of the work items during implementation and not upon initial receipt.
The Council also decided to recommend to the Council of Ministers to approve the recommendations of the committee on establishing mechanisms to regulate the import of used materials, with the review of controls every six months instead of three months. link
Source: Dinar Recaps
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Tishwash:
This article is from 2016. It’s a great reminder of how far we have come.
Raising the three zeros from the Iraqi currency and the interim evaluation (2016 Article)
Amer Al-Abadi
The value of the Iraqi dinar began to be worth (7) grams of gold at the beginning of its issuance according to the issuance law in the year 1931, and in 1959 a new law was issued for the Iraqi national currency, and the Iraqi monetary and banking system continued to develop, and the value of the Iraqi dinar reached (3.3) dollars until the beginning of the war. With Iran, which led to a major collapse in the Iraqi currency
In 2004, the former Governing Council replaced the previous currency, which symbolized the previous regime, with a new currency that is currently in circulation, and the currency was dealt with in seven denominations: 50, 250, 500, 1,000, 10,000, and 25,000 dinars.
Unlike Arab countries, there have been no coins in Iraq for about 25 years.
The project to delete the three zeros was scheduled to be completed in 2011, but it was not completed, then it was postponed to 2013, then postponed to 2015, and now the plan is scheduled to be implemented in early 2017, noting that the process of deleting the zeros took place in several countries.
Three zeros were deleted from the Zimbabwean dollar in 2006. Romania deleted four zeros from its currency in 2005. Bolivia deleted three zeros from its currency in 2008. Turkey deleted six zeros from its currency in 2005. Sudan deleted two zeros from its currency in 2007.
Central Bank Director Mahdi Al-Alaq said, saying: “The central bank began the first steps of the project by choosing the designs, companies and country in which the currencies will be printed.”
He pointed out that “the introduction of the new currency does not mean destroying the old currencies, but they will continue in circulation for about ten years,” pointing out that “this period will enable the central bank to withdraw the old currency according to the known dynamics in order to preserve liquidity in the market.”
Justifications for the replacement process
1. The existence of a large monetary block worth 30 trillion dinars, with a number of 4 billion notes.
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2. Currently, the largest denomination of cash is 25 thousand dinars, equivalent to approximately 21 dollars, and this requires a large volume and effort to settle daily transactions, so the amounts that exceed 20 in value are now Million is made in dollars.
3. The presence of damage to a large percentage of the currency, especially the small denominations, and their inadmissibility in circulation, which constitute approximately one-third of the monetary mass.
4. The difficulty of performing calculations in light of numbers with more than 14 zeros from a practical and technical standpoint, and the possibility of an error occurring, whether adding or deleting a zero.
Benefits of the exchange process
1. Security: It reduces the risks resulting from carrying large sums of money.
2. The costs of counting, sorting, and auditing will decrease if larger denominations are issued.
3. Raising the zeros will create a psychological impact on the citizen by strengthening his currency and adopting it more widely instead of foreign currency
4. Including the Iraqi dinar in the basket of global currencies and dealing in it officially on the world’s stock exchanges and financial markets.
5. The possibility of concluding economic agreements to deal in the national currency, and this will cover a very large portion of foreign transfers, which are a waste of the national wealth of hard currencies.
6. M**********n of the currency exchange market will be eliminated
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7. The work of c*****t suspicious banks and their agents and brokers will stop.
8. A higher ceiling will be set for the amounts transferred abroad from the active exchange currency to ensure that the currency is not smuggled.
9. Changing the currency affects the psychological aspect represented by the desire for a currency with a high exchange rate. This rise brings joy to the return of the dinar to its rich past.
Disadvantages of the replacement process:
1. The emergence of a mathematical problem between the old and new numbers in transactions and in reading and managing trillion numbers.
2. The need to print large denominations.
3. Foreign shares of the stock exchange will decrease by 20% because foreign investors believe that changing the currency will reduce profits.
4. Removing three zeros from the currency may contribute to creating a state of monetary illusion
5. It will cost the state budget large sums of money, in addition to being a door to financial c********n, in addition to not addressing the problem of financial inflation because the Iraqi market imports all goods and services from abroad, which means a drain on hard currencies.
6. There is no official data on the cost of Iraqi banknotes. Note that the cost of a banknote in Britain is 7 US cents. It is sufficient to know the number of notes in circulation to give an idea of the total cost.
7. Four billion notes. Thus, the cost of printing them becomes 289 million dollars. This amount is huge
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8. Add to that another amount to mint coins, not to mention the money needed to face the consequences of deleting zeros, such as replacing postage and financial stamps.
9. Feeling poor: Deleting zeros makes a person feel poor, as someone who had ten million dinars now only has ten thousand of them
10. Expecting prices to rise.
11. In light of the inevitability of introducing the Kurdish language to the first issue of the currency after the new constitution comes into effect, it is necessary to benefit from the experiences of other currencies.
For example, the euro is the currency of many peoples in Europe, but it does not contain any language, only symbols, numbers and pictures.
Amer Al-Abadi 11/15/2016
Source: Dinar Recaps
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