Search the Community
Showing results for tags 'muhammad salih'.
It is likely that next year's budget will witness more investment projects. The appearance of Saleh: Reducing the hypothetical deficit due to the increase in revenues. Thursday 09 September 2021 174 Baghdad: Haider Falih Al-Rubaie The financial advisor in the Prime Minister, Dr. Mazhar Muhammad Salih, suggested that the next year’s budget 2022 will witness more new investment projects, which will be guaranteed to be implemented as a result of the increase in oil revenues. The price of black gold rose to exceed $70 a barrel, which economists rely on a lot to bridge the deficit gap in the public budget, which was built on the basis of a barrel price of $45. Saleh stressed, during his speech to Al-Sabah, that "reducing the hypothetical deficit due to the increase in oil revenues in the federal general budget for the year 2022 will exceed important percentages of financing that deficit by means of traditional borrowing from local or international financing institutions to secure the needs of implementing new investment projects." And the government advisor indicated that this matter will be done through two parts, the first is the additional funding and filling the deficit due to the improvement in the price of a barrel of oil, at five dollars above the price of a barrel approved by the 2021 budget, which will be mostly $ 50 instead of $ 45. oil assets Saleh explained, “The second part relates to the cycle of oil assets, which still indicates an improvement in global oil prices, with an annual average expected to exceed $65 a barrel in 2022, with the growing détente of the global economy and the increasing levels of vaccination against the Corona pandemic and the return of its trade and investment entanglements and prosperity All forms of transportation sectors, indicating that the transportation sector is responsible for consuming 75% of oil derivatives in the world. investment projects The financial advisor believes, “The list of new investment projects will be guaranteed to be implemented, and according to the flow of additional revenues in the general budget, which will cover the hypothetical deficit in the 2022 budget without having to resort to domestic or external borrowing, which helps to provide strength to the state of financial consolidation that is looking forward to to public finances in providing means of its sustainability. Revenue stability A spokesman for the Ministry of Oil, Assem Jihad, told the Iraqi News Agency (INA) that “the stability of oil prices at $70, despite the great challenges and the economic stagnation of many countries’ economies, is a good indicator for the member states of “OPEC +”, including Iraq, because it enhances their its fiscal revenues, revives their economies, and reduces the proportion of the fiscal deficit.” Jihad indicated, "The stability of financial revenues for Iraq between 65 and 70 dollars during the past months is a good realistic indicator in light of the challenges facing the economies of countries and the (fragile) reality of the oil market," noting that "Iraq aspires to achieve higher revenues through commitment." With the gradual increases that were agreed upon in “OPEC +”, which contribute to reducing the proportion of the budget deficit.”
'No deficit in the balance of payments account' Financial advisor: monetary policy will maintain the stability of the exchange rate in the present circumstance 2021.05.31 - 22:54 Baghdad - People The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed, on Monday, that the monetary policy of Iraq will maintain the stability of the exchange rate, while indicating that the current account of the balance of payments is free of deficit, but there is an expectation of a surplus in the future. Saleh said, in a statement to the official agency, followed by "People" (May 31, 2021), that "the reduction of the national currency against the dollar was based on a one-time decision," and that the country adopts a fixed exchange system, stressing that "there is an equation between the theory of adjusting the exchange rate and The deficit in the current account of the balance of payments relative to the gross domestic product. " He added, "Whenever the deficit increases by 4% or more, an adjustment or reduction is made in the external value of the currency to avoid a deterioration in external payments," pointing out that "Iraq currently does not suffer from a deficit in the current account, but rather there is stability and balance." "There is a surplus in the future relative to the gross domestic product, in light of the positive developments in the oil market and the positive improvement in Iraq's foreign exchange reserves." He emphasized that "monetary policy will maintain the stability of the exchange rate at the present time."
Warning of its implementation .. Advisor Al-Kazemi: floating the currency leads to the collapse of the Iraqi market 2021-04-19 06:28 Shafaq News / The appearance of Muhammad Salih, Advisor to the Prime Minister for Financial and Economic Affairs, confirmed on Monday that it is not permissible to float the currency in Iraq, indicating that this leads to the collapse of the market. Saleh said in an interview with Shafaq News; It is "not permissible to float the currency in Iraq because the market will collapse in this case," indicating that "the entry and exit of hard currency does not enter the market, which is only an exit for it, but the government is the one that brings this hard currency." Saleh added, "If the government withdraws its hand, the supply will stop and the demand increases, and thus the market will collapse," stressing that "the float takes place in economies in which supply and demand come from the market and that the state enters to buy and sell to create a balance in the price with its reserves." He pointed out that "the problem in Iraq is that the market is demanding and that the state is offering, and in the event that the Central Bank does not sell the dollar, it means that all the supply has stopped and there is no other offer, and if there is another offer, it is a little offer that is not enough to meet the demand and therefore the prices will rise." Because demand will be more than supply. " He stressed that "the state is the bidder in Iraq, and therefore if the state tends to float, then this means there is no supply, and thus prices collapse." Floating currency is completely liberalizing the exchange rate, so the government or the central bank does not interfere in determining it directly, but rather it is secreted automatically in the currency market through the supply and demand mechanism that allows setting the national currency exchange rate against foreign currencies. It is noteworthy that some officials talk from time to time on the need to float and liberalize the currency to maintain hard currency reserves at the Central Bank.
Advisor Al-Kazemi: The government has succeeded in filling the deficit gap and facing the recession within a year Economie| 09:37 - 05/06/2021 Baghdad - Mawazine News The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed today, Thursday, the economic challenges that the government faced, while noting that it had succeeded in closing the deficit gap and facing recession within a year of its life. Saleh said, "The fiscal year 2020 was one of the most difficult years the country has gone through after the dual crisis (security and financial) in 2014, as the GDP decline was accompanied by a negative 10 to 11% due to the decline in oil import revenues by more than 40% of Its traditional similar flows in 2019, as a result of the oil price war and the OPEC Plus agreement regarding reducing the quotas of member countries to remove the oil glut that exceeded 10% of the global oil market needs, in addition to the closure of local economic facilities and disruption of production facilities due to the pandemic and the rise in unemployment to about 25% Of labor force in a market economy. " Saleh added that "public finances continued to face the double crisis (health and economic) by working in managing public expenditures and public revenues with high accuracy and effort without the presence of legislation legislation for the federal public budget 2020, and it is facing the challenge of the severity of financial and economic shocks (external and internal) and their severe effects on the sustainability Fiscal policy throughout those lean months. " He continued, "The financial management has continued to work according to the contexts provided by the enforceable financial management law, while it is facing a deficit in the monthly revenues that are not sufficient to cover the financing of actual current expenditures at the rate of 1/12 of the general budget for the year 2019, based on the rules of operation of the Financial Management Law in effect." "The cash assets available from monthly revenues did not increase at that time (2019) from 4 trillion dinars per month and perhaps less, while current expenditures payable remained more than 7 trillion dinars, whether from salaries, pensions and social welfare, or the payment of farmers, contractors and services. Debts and energy purchases of various forms, obligatory for repayment. " Regarding facing these challenges, Saleh asserted that "public finances had no choice in closing the deficit gap of payable expenses except by resorting to internal borrowing priorities that supported the government banking system in general and the Central Bank of Iraq in particular in implementing the two borrowing laws that were legislated in the House of Representatives." As an alternative to the General Budget Law 2020. " Saleh stated that "the Iraqi banking system provided liquid financial resources that contributed to bridging the financial deficit gap and facing the sharp economic downturn represented by (deteriorating economic growth, high unemployment and a decline in the general level of prices) with liquid resources amounting to about 27 trillion dinars in the year 2020, which is in the form of internal debts financed by the agency. The government banker exclusively, and not others (which are considered as debts from government financial institutions to the government itself. " The government advisor considered that "the Ministry of Finance succeeded in overcoming the financial stress tests that the country was subjected to with all its economic variables in the year 2020, despite the gravity and risks of the domestic and global economic situation together." Ended 29 / A 87