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A Sharp Drop In Iraq's Oil Revenues And Looming Economic Challenges !


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CNN. Broadcasting talk about reducing the price of the local currency against the dollar "an unforgivable crime against the Iraqi people," !

 

 

A sharp drop in Iraq's oil revenues and looming economic challenges

 

- One Day Has Passed
 
 
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The Iraqi Oil Ministry announced yesterday, Friday, May 1 (May), that Iraq’s imports of oil sales fell to about 1.4 billion dollars, due to the drop in global oil prices, as well as low demand for it, which raises questions about how to overcome the financial crisis that the country is going through, in The production cut, which came into effect, remained in effect early this month.

According to the statement of the Iraqi Ministry of Oil, the total daily average of oil exports in Iraq during the month of April (April) last, 3.43 million barrels per day, while the total revenue achieved in this month was 1.4 billion dollars, a decrease equivalent to 1.5 billion dollars from last March .

The statement pointed out that "the average price per barrel was 13.801 dollars, a difference of 49 percent compared to the price of the month of March, as the average price per barrel was estimated at 28 dollars.

Difficult scenarios

Perhaps Iraq’s almost total dependence on oil as a main source in supplying its annual budgets complicates the possibility of the country coming out of the brink of economic collapse in the event that global oil prices do not recover, which seems unlikely from economists ’viewpoint, at least until the end of this year.

Parliamentary economic committees draw several scenarios to overcome the financial crisis that the country is going through, in light of the continuous outbreak of the Corona virus, most notably the sale of treasury bonds and the Iraqi dinar rate against the dollar or the printing of cash, in addition to reducing the salaries of government employees to the limits of 30 percent, except that those The measures will also lead to major economic problems, including the devaluation of the Iraqi dinar and the weak purchasing power of citizens, especially for the poor classes.

Reducing production costs

The cost of oil production varies between four and nine dollars per barrel, which goes to the producing companies, while the Iraqi government seeks to reduce that percentage, given the economic situation and low oil prices to large limits.

The Ministry of Oil announced last month that it was seeking to negotiate with foreign companies operating in Iraq to reduce oil production costs, as part of its measures to face the repercussions of the crisis facing the oil market.

To that, Reuters news agency revealed on Friday, sources in the oil sector, saying that "Iraq will face difficulties to reduce oil production at a record rate of one million barrels per day, or 23 percent, starting in May, within the framework of OPEC agreement with Russia and other producers, and that Baghdad has not yet reached an agreement with international oil companies on the whereabouts of the cuts.

And producing major oil companies such as "BP", "Exxon Mobil", "Lukoil" and "Eni", the lion's share of Iraqi production, and so far rejected calls to reduce, prompting Iraqi officials to review options such as asking companies to It creates field maintenance works.

Ongoing negotiations

"Reducing the cost of production is a difficult issue, because the global production companies refuse this," said Hamza Al-Jawahiri, a specialist in oil development and production.

He added to “The Independent Arabia”, “The development of oil fields takes place according to contracts, and takes about 4.5 dollars a barrel, while the cost of production is about four dollars per barrel,” noting that “Iraqi oil fields are still under development and these are additional costs, but stopping them reduces Corporate profits and this is excluded. ”

He pointed out that "the quantities of global consumption of oil decreased by 20 percent, and some reports indicate that the decline amounts to about 40 million barrels per day, therefore the decline in the level of global demand cannot be controlled."

He said that "going to a level of reduction above 10 percent may contribute to recovering oil prices," expressing his belief that "the reduction must reach the limits of 20 percent or higher to contribute to the rise in oil prices globally."

He believed that "the addition of the Kurdistan region's oil production to the oil fields in the south, led to an additional reduction in the share of Iraq, which amounted to 28 percent," noting that "the federal government does not take anything from the region's oil."

He continued, "America can give Iraq part of its stalled share to increase Baghdad's share of production, but there are no serious efforts in this context."

Finance and crisis solutions committee

In a related context, the head of the Finance Committee in the Iraqi parliament, Haitham al-Jabouri, said in a television interview, “The country may get 25 percent of the revenues of 2019 in 2020, and we need annually 138 trillion dinars, equivalent to $ 110 billion to meet all expenses, and we also need To 97 trillion dinars, equivalent to 81 billion dollars, to secure salaries and pay external debt only. ”

He added, “The necessary expenditures in Iraq amount to $ 72 billion, related to employee salaries, social welfare and other expenses.” He pointed out that “Iraqi oil is currently sold at $ 16, half of which goes as extraction cost.” He indicated that “employee salaries are secured in May. ”

Al-Jubouri suggested four solutions to secure a monthly fund that includes seven billion dollars by "taking advantage of the state's cash that is available in the Rafidain Bank and the Iraqi Trade Bank, and we have a deposit of four billion dollars to buy weapons from America, we can negotiate and take half of it, and also it is possible to negotiate with the bank International is to borrow $ 2.2 billion, and these options are likely to solve the salary problem for the next four months. ”

He revealed that "salary insurance only requires the sale of a barrel of Iraqi oil at 31 dollars, while insurance of all expenses requires selling it at about 71 dollars."

He pointed out that "border crossings can save the budget eight billion dollars, but what we get half a billion because of corruption and illegal outlets. The reserves of hard currency in the central are 81 billion dollars, and 52 billion dollars remain in all cases to preserve the value of the Iraqi currency. And if we use stockpile, we should not exceed this number, and if we tamper with it, the Iraqi currency may be exposed to a great danger that causes it to collapse, as happened in Lebanon.

Operating expenses inflation

As for the economic specialist, Majed Al-Suri, he said from his side that "everything that is being talked about does not solve the problem that mainly relates to inflation of operating expenses, specifically the item of allocations and benefits."

He revealed to "The Independent Arabia", that "the total operating expenses, according to what is rumored, amounts to 68 trillion dinars, or approximately 55 billion dollars." The basic salaries without allocations constitute 14 trillion dinars, and allocations 28 trillion, in addition to benefits that amount to about 30 trillion dinars.

He considered that "the problem is not with scarcity of resources, but with misuse since 2003, in light of the huge waste of money."

On the solutions to the economic crisis that the country is going through, Al-Suri explained that "a number of measures that can be taken, including reducing operating expenses, increasing taxes and borrowing."

He pointed out that "borrowing may solve part of the problem, but it is a difficult issue, as Iraq cannot borrow due to corruption and confusing political conditions", adding that "the biggest proof of this is the Kuwait Conference grants amounting to approximately $ 30 billion, but it was not implemented as a result Corruption and the political situation.

He expected that "this collapse in oil prices will cause a very large collapse in the Iraqi economy, if no measures are taken to recover the stolen money and control the financial expenditures within the available limits."

Central bank procedures

On the performance of the central bank in light of the financial crisis, Al-Suri pointed out that "the central bank maintains the prices of the local currency, despite the chaos and the failure of financial policy, but monetary policy has succeeded so far in contributing to the stability of the currency, which is a type of economic stability."

And considered the talk about reducing the price of the local currency against the dollar "an unforgivable crime against the Iraqi people," noting that it "reduces the purchasing power of Iraqis and increases the suffering of the poor classes and those with limited income working in daily wages and free works, and leads to higher prices."

He pointed out that "the law does not allow the central bank to directly lend to the government, even indirectly because its capabilities are limited, but it can play a major role in activating economic development as it did in 2014 when it gave six trillion dinars in loans to specialized and private banks, noting that" borrowing to cover Operating expenses mean a major collapse for the bank and the Iraqi economy.

Ahmed Al-Suhail

And you are Arabic

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11 hours ago, DinarThug said:

 A sharp drop in Iraq's oil revenues and looming economic challenges..!

CNN pukes: "talk about reducing the price of the local currency against the dollar "an unforgivable crime against the Iraqi people," 

 

Thanks Thug...the whole world is in the grip of CV19 fear and Fear-mongers spouting globalist BS.

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The concept of foreign currency auction in Iraq .. Who benefits from wasting the currency?

 
- Two Hours Ago
 
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Researcher Shatha Khalil *

 

After the quarantine, the Central Bank of Iraq will resume the third day of May to re-sell the currency (the US dollar) at the cash sale price (1190) dinars per dollar.
The concept of currency auction, its origins, who benefits from it, and its impact on the Iraqi economy .. This is what the article will address.

After 2003, Iraq adopted a different economic system, as it shifted from the socialist economy to the open market economy, which was confirmed by the constitution and legislated by the civil ruler, "Paul Primer" in 2004, and is considered the only auction in the Middle East, as part of his efforts to raise the value of the Iraqi dinar. 

The sale is over $ 200 million at times, and this amount is usually from Iraqi oil revenue sold.

But it is difficult for any economy in the strongest countries to switch from the central system to all sectors and direct state supervision, to the decentralized system without controls and plans for the ministries concerned, where decentralization has produced chaos, state weakness and lack of loyalty to the Iraqi state, and mafias have emerged in all sectors of the state for theft and domination, and were incubator of a phenomenon Money laundering, given the economic freedom of the financial and banking sector.

To clarify the concept of the currency auction, we say that it is a market for foreign currency in which demand for this currency meets the supply from it and then the exchange rate is formed, and the Iraqi dinar exchange rate has been stable for a long time because of the use of the increasing volume of foreign currency in providing flexibility and reassurance in exchange for demand.

The process of determining the exchange rate must take place smoothly because it's  obstruction will affect the demand for the dollar and the demand that will be obstructed will be satiated from the market and this saturation will be at a higher exchange rate, and thus confusion occurs in the market and this is an introduction to the multiplicity of exchange rates, which hinders economic decision-making and implementation.

In order for banks to fulfill their mission from the demand side, they deposit accounts with them in the central bank that they use for monetary policy purposes in general, and foreign currency auctions in particular, and these accounts have been audited by the banks themselves, which include within their administrative formations a department for auditing money laundering.

Although the auction is used mostly by importers through their commercial banks, it must be emphasized that it is a monetary policy, because it withdraws the Iraqi dinar from the market, which reduces the pressure of liquidity and its impact on inflation.

Iraqi observers and officials estimate the value of what was sold of the dollar in this auction during the past fifteen years at more than 300 billion dollars, most of which went out of Iraq to other countries without achieving the benefit of the Iraqi dinar and its value, which is still under the logical limit of the fifth largest oil producer in the world ?

Thus, the currency auction became the official window for wasting foreign currency in the country and for corruption of various forms.

The process of buying foreign currency is a purely cash process and is conducted according to the instructions of the Executive Committee for the sale and purchase of foreign currency or the auction committee, and this includes checking documents that require transfer and whether the bank in question has banking problems related to capital or commitment to the ratios of monetary policy decided by the bank.

Initially we must understand that the central bank should not be seen as a commercial institution, but rather as a monetary institution and its monetary work.

As we previously emphasized, the currency auction is a monetary policy, and the central bank law stresses that the bank must work to achieve stability in domestic prices, including the exchange rate, and if this goal requires to achieve it increase the money supply.
The central bank in turn gives the dollar because it receives a dinar in exchange for it (we are facing a monetary process) even though the dollar may be used commercially (after it comes out of the central bank) and the final import numbers are provided to the statistical agencies by the Ministry of Trade and customs departments.

Here, after the exit of the dollar from the central bank, the task of the Ministry of Commerce and other ministries concerned with following up the recovery process that is within studied import plans for the development of national sectors is not the goal of dumping the market with billions of materials spent on non-essential goods received only to serve the economy of Iran, Turkey, China and others, because the state is losing billions The so-called merchants (gangs to destroy the economy of Iraq) import al-Nabq, the islands, and honey, and here we ask: Who is the ruler and who determines the imported materials?
It means that the main achievement of the Central Bank is to achieve stability in prices by withdrawing the dinar by selling the dollar, and this is the part of monetary policy, while the part of trade policy (outside the field of the central bank) is represented by the use of the dollar in import and commodity supply, which Inflation is largely neutralized, but if we leave the monetary side aside and imagine that private sector import operations are a purely commercial issue, and the financing of these imports comes from the foreign currency available to the government (for example, the Development Fund for Iraq) and not from the central bank reserves, the central bank remains a serum Its essential in reducing inflation, which could play an important trade policy role.

The basic principle under which the central bank operates is that it fully meets the demand, and we do not know whether government agencies operate at the same standard, and what is the effect on the exchange rate in this case.
In some cases, the currency market is not controlled, and there is a discrepancy between the official price and the market price, due to many factors from the side of supply and demand. Some crises may occur that generate an increase in the demand for the dollar as a safety and security commodity, and the bank can also be provided The central banks are in dollars, but it is not possible to deliver this dollar to the final beneficiary of the banks with the required flexibility. All these things impede the flow of foreign currency and obtain it, so the market price rises, and these phenomena hinder the flow of the market.

It is assumed that the central bank (which is a total institution) will give foreign currency details at the same level as commercial banks. The central bank in this case is like a wholesaler, it is the person who checks bank violations, and receives the quotation about the bank’s lack of money laundering.
The most important of all is that the central bank is the one who receives the dinar to give the dollar its allowance according to the announced exchange rate, if there are commercial lists with the request, then it is supposed to check at the level of the commercial bank because it provides a mechanism in the basis, and in any case, the commercial bank data A copy of it goes to the money laundering unit of the Central Bank for follow-up.

On the relationship of commercial banks with the Central Bank, Article 40 of the Central Bank Law provides for supervision of banks, which includes authorizing and supervising banks and issuing instructions regarding their work.

It is not the business of the central bank to follow the operations of banks at the level of individual lending operations, its relationship with banks is through the Banking and Credit Department that tracks the work of banks and their consistency with the requirements of monetary policy, and through the currency auction, where the bank receives the request for transfer and citation about the bank’s operations being free of Money laundering, and through the bank's Money Laundering Reporting Service, which deals with follow-up and auditing of money laundering operations at the level of the individual process.

All operations that enter the currency market or auction and have played its role in determining the exchange rate, a copy of which goes directly to the bank's money laundering reporting department, to do a greater audit of the suspected operations, and follow-up is done inside and outside Iraq and with counterpart units in different countries, that this department It is competent to follow up money laundering, especially the suspected operations.
The currency auction committees in the central bank are not concerned with money laundering issues even though they receive citations that the relevant bank is free of money laundering, and the person responsible for following up money laundering is the reporting department of the central bank, especially since they receive the auction data from the beginning.

Checking money laundering in banks is the duty of the money laundering departments in banks and the Directorate for reporting money laundering in the central bank. It is not the duty of auction committees that must pass requests to obtain foreign currency quickly and smoothly. The money market is very sensitive and any delay in the flow of information can affect Negatively on setting the exchange rate.
But as it is known, the great corruption of the influential and controlling bodies of some banks (whales of corruption) does not make the real purpose of the currency auction achieve stability of exchange rates and serves development, but serves this to finance their corruption and waste of currency and the destruction of the Iraqi economy.

The appropriate environment for development, and the most important elements of this environment is the stability of the exchange rate, but the benefit from this environment depends on the efficiency of the real economy, especially its ability to develop exports from the non-oil sector and formulate appropriate policies by the government and its organs.

If the real economy suffers from low productivity, the private sector will import almost everything, and the exchange rate of the dinar will decrease, but the size of the large reserve can finance the import and bridge the balance of payments gap and keep the dinar from falling, and this is what happens in the foreign currency auction.
It is better to maintain the dinar through production and the creation of non-oil export capabilities, and this is the duty of the productive sectors (government and private sector). The non-oil exportability must evolve, even gradually, until the dependence on oil revenues and the foreign currency dependency on oil depend on it.

However, the results came exactly the opposite. The currency auction in light of government weakness and the spread of corruption only results in the destruction of the Iraqi economy.
Depletion of the central bank reserves of hard currencies and gold bars, which in turn affects the exchange of the local currency, the growing phenomenon of money laundering, instability of the economic situation that directly affects the political situation, fluctuation in the exchange rate, and the unilateral Iraqi economy's submission to fluctuations and speculations in the local market, the decline of the central bank reserves The gap between the official exchange rate and the market price widens, the unemployment rate rises, the deficit in the balance of payments and the decrease in productive capacity grows, the growth and spread of corruption and theft of public money, and the weak social ties, and economists, including Nabih Nadim Al-Ubaidi, stress on The necessity of stopping the currency auction that weakened and destroyed the Iraqi economy, and limiting the investment and smuggling of dollar auction sales from the Iraqi Central Bank to Iran to support its economy in the face of the US sanctions imposed on it.

Conclusion .. Economic corruption is a complex, thorny, multi-faceted and multi-faceted topic, it is linked to political authoritarian corruption, and its names have abounded. There is (financial corruption) that reflects the corruption of clear financial irregularities, the purpose of which is to obtain funds illegally, leading to waste in Public funds.
The problem that the Iraqi economy is suffering now is a problem of politics, not a resource problem. The country now suffers from a lack of political and security stability, which hinders development and decision-making, but we are now also beginning to suffer from the lack of economic stability as a result of exchange instability.
This affects the confidence in the dinar, which is beginning to diminish (we hope this will be temporary), which explains the great desire to acquire the dollar, which is now a public good for the public, and the instability of internal and regional conditions in turn encourages an increase in demand for the dollar.

Economic Studies Unit

Links Center for Research and Strategic Studies

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Adviser to the Prime Minister: private banks, exchange shops


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05/3/2020 23:56:04
 
 
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, likened the private banks in Iraq to “exchange shops”.

 

Saleh said in a press statement, "The private banks are just shops for buying and selling dollars and the finest bank in which they have an account in Jordan! They do not have the ability to open international credits."

He added that "the duties of the Central Bank of Iraq to maintain the value of the currency in dinars and its function is not to finance trade, but the circumstance of Iraq made this his mission."

Saleh stressed that "it is not possible to enter foreign funds from abroad and vice versa in Iraq."
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Kurdistan is preparing for financial settlements with Baghdad and is looking for a "positive" round of talks


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4th May, 2020


Kurdistan Democratic Party MP Bashar Al-Kiki announced the regional government's readiness for financial settlements with Baghdad, while he expressed optimism about the success of the Baghdad-Erbil talks this week.

Al-Kiki said to Shafaq News: "The regional government is ready to settle in all budgets with Baghdad our money and what we have and according to the constitution and the law away from any jurisprudence or uniqueness as happened in the file of cutting the salaries of the region's employees, which is a clear constitutional violation, indicating that salaries are an acquired right and not a political matter and cannot Cut the salaries of employees to address the country's financial hardship. He added, "The regional government can be held accountable if it does not pay the salaries of the employees allocated from the federal budget, explaining that the decision to pay the salaries of employees is a matter of the Ministry of Finance and a decision to cut it under the direction of the Prime Minister of the General Secretariat of the Council of Ministers without going through the Ministry of Finance a legal and constitutional violation."

Al-Kiki expressed optimism about the success of the negotiations between the region and Baghdad this week, resolving the outstanding issues between the two sides, most notably the salaries of employees, peshmerga, and farmers' dues,

and discussing the Kurds' proposals to approve the oil and gas law and distribute wealth in the country. 

It is scheduled to hold a delegation from the Kurdistan Regional Government a new visit to Baghdad this week to resume discussions with the federal government to resolve the differences and outstanding issues between the two sides, according to a source in the Kurdistan Regional Government to Shafak News.

The delegation of the region had held last week two rounds of discussions with the Iraqi government, as well as consultations with leaders and officials of Iraqi political parties on resolving the outstanding differences between Baghdad and Erbil. The visit came days after the Iraqi government cut the salaries of employees of the Kurdistan Region after it said that the region had not fulfilled its obligations in the financial budget represented by the delivery of 250 thousand barrels of oil per day to the federal government. The agreement includes the delivery of the Kurdistan Region, the amount of 250 thousand barrels per day of oil to the Federal Government in return for handing Baghdad a share of about 13 percent of the budget to the region in addition to the salaries of employees and peshmerga.

The cut in the salaries of the employees of the region sparked widespread criticism inside and outside the region, where observers considered that this decision comes in the context of political pressure coinciding with the efforts of Prime Minister-designate Mustafa Al-Kazemi to form the new government. There are pending issues between the two sides for many years, chief among them the disputed territories, how to manage oil wealth, the budget of the Peshmerga forces, and others.

 

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12 minutes ago, 6ly410 said:

The Kurdistan Region delegation arrives in Baghdad tomorrow to complete its negotiations on the oil files and the financial budget

Previous meeting between Baghdad and the Kurdistan region, "the economy news"
  http://economy-news.net/content.php?id=20121
 money and business
Economy News - Baghdad:

On Tuesday, the Kurdish delegation plans to visit Baghdad to complete its talks, especially in the areas of energy, finance and disputed areas.

The spokesman for the Deputy Prime Minister of the Kurdistan Regional Government, Samir Hawrami, said, "A high-level delegation from the Kurdistan Regional Government headed by Deputy Prime Minister Qubad Talabani is scheduled to go to Baghdad to complete his meetings held last week on the oil and budget files and the share of tomorrow. The region is from the Iraq budget. "

 He added that "the meetings will discuss a proposal on these differences," noting that "this proposal is in the interest of Iraq and the Kurdistan region."

Number of views 53 Date added 04/05/2020

 

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The Kurdistan Region delegation arrives in Baghdad tomorrow to complete its negotiations on the oil files and the financial budget


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4th May, 2020

 

On Tuesday, the Kurdish delegation plans to visit Baghdad to complete its talks, especially in the areas of energy, finance and disputed areas

The spokesman for the Deputy Prime Minister of the Kurdistan Regional Government, Samir Hawrami, said, "A high-level delegation from the Kurdistan Regional Government headed by Deputy Prime Minister Qubad Talabani is scheduled to go to Baghdad to complete his meetings held last week on the oil and budget files and the share of tomorrow. The region is from the Iraq budget

 He added that "the meetings will discuss a proposal on these differences," noting that "this proposal is in the interest of Iraq and the Kurdistan region

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19 minutes ago, 6ly410 said:

Let’s go


Let’s B’rodeo ! :o 

 

image.gif.e3dc54b2123775cf262663d9356089e1.gif

 

:D  :D  :D 
 

Edited by DinarThug
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21 minutes ago, DinarThug said:

Let’s B’rodeo ! :o 

 

image.gif.e3dc54b2123775cf262663d9356089e1.gif

 

:D  :D  :D 

 

11 minutes ago, 6ly410 said:

this is a big deal... Wow 


Ya - Other Bro Lasted For 8 Seconds So Now He Can Move On To The Bro’deo Finals ! :o 

 

YmI.gif

 

:D  :D  :D 

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Education announces the payment of salaries for the staff of its district in Nineveh through the Rafidain and Rashid banks

 

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4th May, 2020

 


The Ministry of Education announced, on Monday, the launch of Nineveh education salaries through the "Master Card" of the Rafidain and Al-Rasheed bankers.


A statement of the ministry, "Al-Ikhbaria" received a copy of it today, that "the directorate's employees received notifications via their mobile phones to receive salaries through the various outlets of the mentioned banks.


"Accordingly, the decision was made regardless of the directorate staff salaries through "MasterCard" Rafidain bank and Rasheed after presenting two banks to pay all their potentials and salaries without commission and by MasterCard.

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1 hour ago, DinarThug said:

The Kurdistan Region delegation arrives in Baghdad tomorrow to complete its negotiations on the oil files and the financial budget


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4th May, 2020

 

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Parliamentary Legal: Baghdad granted 23% of employees’ salaries to Kurdistan


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10:59 - 04/05/2020

 

Member of the Parliamentary Legal Committee Hussein Al-Oqabi revealed, on Monday, that the Baghdad government paid about 23% of the federal budget in Iraq and allocated for salaries to Erbil despite its fixed share 12%, calling on the next government to prevent the sale of 780 thousand barrels per day without any legal basis.

Al-Oqabi said in a statement to "Information" that "Baghdad has official documents and records on the region's export of about 68,000 barrels of oil per day across the northern border as well as smuggling another 100,000 barrels without any legal basis."

He added that "Iraq is on the verge of a major catastrophe, especially with the reduction in the rate of Iraqi production by about 23% for two years, and the next government should put an end to all legal violations in the region."

He continued, “The Abdul Mahdi government spent the salaries for two years at 23% of the federal employees’ salaries despite the region’s total budget of 12%,” noting that “political courtesy led to an economic catastrophe for the whole of Iraq.”
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The Minister of Finance and the Governor of the Central Bank stress the need to expedite the framing of immediate solutions to remedy the financial situation

 

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Politics 04/2020 22:48 337    


Baghdad Today _ Baghdad ,

 

Minister of Finance, Fouad Hussein, stressed on Monday the need to expedite framing of immediate solutions to remedy the financial situation.

The media office of the Minister of Finance said in a statement, "Fouad Hussein, the Deputy Prime Minister for Economic Affairs and the Minister of Finance, today, May 4, presided over an expanded supplementary meeting in the presence of Ali Al-Alaq, Governor of the Central Bank, Undersecretary of the Ministry of Planning, directors of Rafidain and Rashid Banks and the Iraqi Bank of Trade. The meeting was also attended by general managers of departments Budget, taxes, customs, retirement and public debt in order to complete government efforts in examining mechanisms to improve the economic and financial situation in order to secure the needs of the country, especially in advance of the preparation for the May allocations in light of the continuing low prices of Aft. " 

The statement clarified that "the current cash deposit deposited by the government has been studied in banks and organizations that generate annual profits and how to restructure these funds and use them to bridge the current shortfall to secure the salaries of Iraqi state employees."

He added: "The meeting also discussed the government's obligations to pay internal debts." And the Ministry of Foreign Affairs, in addition to the need to finance some governmental institutions, given the privacy of their work. 

And he stated that "in another axis of the meeting, they discussed how to provide legal cover or urgent legislative decision to secure the cash liquidity required for the future, whether by borrowing internally or externally to fill the shortfall in the financing process."  

The Minister of Finance, and the Governor of the Central Bank, stressed the "need to overcome all obstacles and expedite the framing of immediate solutions to remedy the financial situation in the country, as the meeting reached the possibility of walking and advancing through internal solutions at the present time, provided that the government will consider other options in the coming months."

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The Minister of Finance and the Governor of the Central Bank discuss the situation of cash liquidity in banks and agencies

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IRAQ DATA: Oil exports were steady in April as revenue plunged on low oil price | S&P Global Platts

Highlights

Amman, Jordan — Iraq's oil exports in April, including oil from the semi-autonomous Kurdish region, were little changed in April while crude revenue plunged amid low oil prices, according to official data and a report on Kurdish exports seen by S&P Global Platts.

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Exports reached 3.905 million b/d in April, compared with 3.881 million b/d in March, the data showed. Federal exports averaged 3.438 million b/d, up 1.4% from 3.391 million b/d in March, while Kurdish exports fell 4.7% to 467,000 b/d from 490,000 b/d in March.

The oil ministry's figures for federal exports showed that the April exports comprised 3.351 million b/d from Iraq's southern Gulf terminals, up 80,000 b/d from March; 76,000 b/d of North Oil Co. crude from Kirkuk exported via the Turkish port of Ceyhan, down 30,000 b/d from March, and 11,000 b/d of Kirkuk oil transported by truck from the hub of Baiji, up from 10,000

Exports of Qayara oil were suspended from the Khor al-Zubair port in April, with its low selling price not covering the cost of transporting it by trucks across Iraq. In March, Qayara volumes were 4,000 b/d, but they had been averaging around 30,000 b/d before protests in October 2019 disrupted production.

The exported volume from the Gulf terminals consisted of 76% Basrah Light crude oil of 29-31 API degrees quality and 24% Basrah Heavy crude of 23-24 API degrees, according to figures from state marketer SOMO.

Lower revenue

The ministry's statement also pegged provisional revenue in April at $1.423 billion, a drastic fall from March revenue of $2.962 billion. Average oil prices realized by SOMO in April were $13.80/b, compared with $28.18/b in March.

In 2019, the federal government's oil export revenue averaged $6.794 billion and the oil price averaged $61.13/b.

The Kurdish region pumped on average of about 468,400 b/d in 2019, with 93% of its oil sales exported at an average price of $52.676/b, according to a Deloitte audit report published by the Kurdistan Regional Government on its website.

Oil for local consumption and refineries was sold at $45.94/b, raking in $88.85 million, the report showed.

The government raked in $8.35 billion in crude exports, while the gross value of crude oil and condensate sold, including piped exports and local sales, was $8.44 billion, according to the report.

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The Commercial Court attributes the slow investment in Iraq to political, security, and clan disputes


9241.png
 

4th May, 2020

 

The head of the Commercial Court, Elham Fakhry, attributed the slow investment in Iraq to political and security situations and tribal disputes

Fakhri said, in an interview with her published by the Judiciary Newspaper and seen by "Al-Iqtisad News", that "the Iraqi investment law is one of the most successful laws because of the privileges granted to the investor such as tax exemptions and fees and the right of ownership of some projects of a residential nature

She added that "the real obstacles appear in the practical application of slow investment wheel for political and security reasons," noting that "groups outside the law and tribal conflicts often constitute an obstacle to the sites of investment projects in addition to the presence of corruption in some state institutions

Fakhry mentioned that these obstacles are temporary and that the Iraqi witnesses are certain of a great qualitative shift in the event of developing serious plans, providing lands, capabilities and preparing qualified cadres

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7 hours ago, DinarThug said:

The Minister of Finance and the Governor of the Central Bank stress the need to expedite the framing of immediate solutions to remedy the financial situation

 

120274.jpg?watermark=4

 

Politics 04/2020 22:48 337    


Baghdad Today _ Baghdad ,

 

Minister of Finance, Fouad Hussein, stressed on Monday the need to expedite framing of immediate solutions to remedy the financial situation.

The media office of the Minister of Finance said in a statement, "Fouad Hussein, the Deputy Prime Minister for Economic Affairs and the Minister of Finance, today, May 4, presided over an expanded supplementary meeting in the presence of Ali Al-Alaq, Governor of the Central Bank, Undersecretary of the Ministry of Planning, directors of Rafidain and Rashid Banks and the Iraqi Bank of Trade. The meeting was also attended by general managers of departments Budget, taxes, customs, retirement and public debt in order to complete government efforts in examining mechanisms to improve the economic and financial situation in order to secure the needs of the country, especially in advance of the preparation for the May allocations in light of the continuing low prices of Aft. " 

The statement clarified that "the current cash deposit deposited by the government has been studied in banks and organizations that generate annual profits and how to restructure these funds and use them to bridge the current shortfall to secure the salaries of Iraqi state employees."

He added: "The meeting also discussed the government's obligations to pay internal debts." And the Ministry of Foreign Affairs, in addition to the need to finance some governmental institutions, given the privacy of their work. 

And he stated that "in another axis of the meeting, they discussed how to provide legal cover or urgent legislative decision to secure the cash liquidity required for the future, whether by borrowing internally or externally to fill the shortfall in the financing process."  

The Minister of Finance, and the Governor of the Central Bank, stressed the "need to overcome all obstacles and expedite the framing of immediate solutions to remedy the financial situation in the country, as the meeting reached the possibility of walking and advancing through internal solutions at the present time, provided that the government will consider other options in the coming months."

link


Multiple Agency’s Reporting This ...

 

 

The Minister of Finance and the Governor of the Central Bank discuss the situation of cash liquidity in banks and agencies

LINK

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A high-level meeting in the Ministry of Finance to study the mechanisms of managing the economic crisis in the country

LINK

2020.05.04 - 22:56
اجتماع رفيع في وزارة المالية لتدارس آليات إدارة الأزمة الاقتصادية في البلاد

 

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5 minutes ago, boosterbglee said:

Everyone knows the problems because all they do is sit around and talk, talk and talk about them!


With Burqas On - So Then They Think That U Can’t See When They’re Lying Thru Their Tooth ! :o 

 

اجتماع رفيع في وزارة المالية لتدارس آليات إدارة الأزمة الاقتصادية في البلاد

 

:D  :D  :D 

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Al-Rafidayn signs a contract with the defense to settle the
salaries of its employees electronically


11782.jpg

 

5th May 2020

 

Rafidain Bank announced, on Tuesday, that it has signed a contract with the Ministry of Defense to settle the salaries of its employees

The media office of the bank said in a statement seen by "Al-Iqtisad News", that "a contract was signed with the Ministry of Defense to localize the salaries of its employees and receive their salaries electronically via a Master Card

The bank indicated that "defense affiliates can take advantage of the financial services provided by the bank and other facilities


###########

The Ministry of Defense signs salary settlement contracts with banks approved by the Central Bank  

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13 hours ago, 6ly410 said:

this is a big deal... Wow 


:o 

 

:D  :D  :D 

 

 

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A new Kurdish delegation arrives in Baghdad to complete its talks

 

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10:33 - 05/05/2020
 

The Kurdistan Democratic Party member, Ahmed Al-Safa, revealed, on Tuesday, the arrival of a new Kurdish delegation to the capital, Baghdad, today to complete his talks, while he disclosed the axes that the delegation will discuss.

Al-Saffar said in a statement to "Information", that "a Kurdish delegation will arrive in the capital Baghdad today to complete its previous talks," noting that "the delegation will discuss with senior political figures the financial file and outstanding issues between Baghdad and Erbil."

Al-Saffar, a member of the Parliamentary Finance Committee, added, "The Kurdish delegation will discuss with the governmental and political authorities the entire financial entitlement file."

On the issue of forming the government, Al-Saffar explained that "there is another negotiating delegation concerned with the issue of forming the government," stressing that the Kurdistan Alliance is present and strongly and awaiting what the negotiating committee will reach in the coming hours.
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Oil prices continue to rise thanks to hopes of demand with
the easing of restrictions of Corona


13282.jpg

 

5th May, 2020

 

Oil prices jumped again, on Tuesday, thanks to hopes of recovering demand for fuel, as some American states, European countries, and Asia started easing general isolation measures imposed to contain the spread of the emerging Corona virus

US West Texas Intermediate crude futures rose 9.9 percent, or $ 2.01 to $ 22.40 a barrel by 0705 GMT. This is the fifth consecutive session in which US crude has been rising

Brent crude futures rose 6.9 percent, or $ 1.87, to $ 29.07 a barrel, to rise for the sixth straight session

Expectations for fuel demand improved with the start of US states and several countries, including Italy, Spain, Portugal, India and Thailand, to allow some to return to work and resume work on construction sites and open the doors of parks and libraries

But analysts said that global oil demand probably fell by about 30 percent in April and that the recovery is likely to be slow, especially with expectations that most international airline operations will continue to halt for months

The markets ignored a decision by the energy regulator in the US state of Texas, the largest oil producing state in America, to drop a proposal to cut production by 20 percent in light of Saudi Arabia, Russia, and other major oil producing countries and prominent companies to produce them

A preliminary survey of Reuters shows that US oil stocks will rise for the fifteenth week in a row, while oil product stocks are likely to have increased also last week

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Parliamentary: We should focus on this law in the coming period

 

image.jpeg.e81b4e80958a77dd0654ad141cbee0bd.jpeg

 

4th May, 2020

 

MP, Tohme Lahibi, stressed on Monday, the focus on the budget law in the coming period.

Al-Lahibi said, "It is necessary for the legislature to continue its work as obligations accumulated after the disruption of more than two months due to the health status and the spread of Corona virus."

He added, "One of the most important laws that await parliament if it is convened is the budget law, on which the focus should be in the coming period."

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A deputy reveals suspicions of corruption in a contract at the Ministry of Labor amounting to 10 billion dinars


A deputy reveals suspicions of corruption in a contract at the Ministry of Labor amounting to 10 billion dinars
 
 
05/5/2020 15:44:52
 
 
Member of the Integrity Commission, Parliamentarian Sabah Al-Aqili, revealed suspicions of corruption in a contract in the Ministry of Labor amounting to 10 billion dinars.

Al-Okaili said in a statement that he received {Al Furat News} a copy of it, “There are suspicions of corruption in the health insurance contract for those covered by the social welfare of the poor.” He added, "The strange thing is that an amount of 2000 dinars has been deducted from every poor person, to reach the amount per month up to the limits of 10 billion without informing the people included in the pieces."

He continued: "The company receives the monthly amounts, which amount to 10 billion each month without providing any services, and the poor people do not know them about the issue of health care." And that "the Parliamentary Integrity Committee will investigate the matter and host the Minister of Labor to verify the contract, and after that we will resort to referring all files to a panel of integrity and the judiciary to take legal action against the negligent." 
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Al-Dulaimi to the Speaker of Parliament: Let us start by holding the closest corrupt to account, then go out to the broader circle


image.php?token=149016869042e728a3dbe1e876e2665b&c=8415529&size=
 
5th May, 2020
 
 
The former lawmaker, Kamel al-Dulaimi, called on Parliament Speaker Muhammad al-Halbousi to start accounting for the closest corrupt and then exit to the broader circle.


Al-Dulaimi said in a tweet on "Twitter", "In order not to mix the cards with a large, large circle, I do not doubt intentions, but I certainly doubt implementation, and so that the matter of holding those accused of corruption is not considered a political target."

He added, "The relatives are better known, so let us start with the accountability of the closest corrupt people, then go out to the wider department, that patriotic act of God, a copy of it, to the Speaker of Parliament."

 

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      The former official in the "Central Bank of Iraq" stressed that his country’s failure to implement the US Treasury Department’s decisions constituted an economic risk to Iraq and the Iraqis, which would stop all financial transfers to Iraq, and for this reason the bank is obliged to implement the sanctions issued against the Iraqi personalities, whatever they may be.

      On the other hand, a member of the Security and Defense Committee in the Iraqi Parliament, on the authority of the “Al-Fath” coalition, Karim Alaiwi, said that “his bloc is awaiting a position on the part of Al-Kazemi’s government regarding the rejection of unilateral sanctions against Iraqi personalities and entities.” It has the intention to hold talks with the American side about it, as it is political sanctions, and is not based on any realistic evidence. Aliwi said in an interview with Al-Arabi Al-Jadeed that the Al-Kazemi government should complete this task by rejecting any kind of sanctions that affect any Iraqi figure who is not convicted by the local judiciary, and working to remove names from any American list.

      But one of the members of the negotiating delegation in the first dialogue session, which was held via a television circle last month between American and Iraqi officials, assured Al-Arabi Al-Jadeed that the files of the second session were not definitively determined, and they may be comprehensive due to Al-Kazemi’s presence in Washington and his supposed meetings with senior administration officials. American, but he made it clear that it is primarily about terrorism and strengthening Iraq’s security and military capabilities, the financial and health crises, electricity and strengthening the rule of law, fighting financial corruption and threatening armed groups linked to Iran, and the American military presence. And he considered that the file of Iraq’s commitment to the sanctions imposed on Iran, and on various personalities and parties inside and outside Iraq, would be within the political file that is under discussion with the prime minister.
      Just deputies
      New Arab
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