Sudanese Advisor: The 2024 budget is in a state of balance and stability and carries some surpluses
Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, confirmed today, Thursday, that the future outlook for the financial situation in Iraq is stable, while indicating that oil market indicators are still more than 10% above the price specified in the budget until now.
Saleh told the official agency, and Al-Mutla’ followed him, that: “The federal general budget for the year 2024 is still stable, with an expenditure ceiling of approximately 199 trillion Iraqi dinars and allocations in investment expenditures exceeding 25 percent of the total expenditure ceiling, and oil exports are stable at their rates set at approximately Approximately 3.4 million barrels of oil per day, and the price of a barrel for the purposes of calculating budget revenues from exported oil is $70 per barrel,” pointing out that “oil market indicators are still more than the price specified in the budget by more than 10% until the moment.”
He added, “Energy market expectations lead to an increase in the needs of continued demand for crude oil in general,” noting that “the future outlook on Iraq’s financial situation is stable.”
He pointed out that “there is high stability as we enter the second month of the current year, which indicates that the budget is in balance and carries some surpluses, so the situation is stable, good and sound.”
They do not have a massive amount of Dinar with which to deal. Small incremental increases of value over time will guarantee failure and all the many billions of dollars spent, and man-hours wasted will for naught. It is more likely they will come out high on the exchange rate and let it fall until it finds equilibrium instead of creeping upwards in 2% measures every 90 days over decades. Meanwhile everyone loses faith in the GOI, riots, and starves to death. Small increments over time makes absolutely no sense and is illogical.
Article: "The Central Bank of Iraq announced the approval from the US Federal Reserve to supply dollar cash in 2024, as part of efforts to stabilize the Iraqi economy and its currency ."
Quote: "The decision came after officials from the Central Bank of Iraq held a meeting with representatives from the Fed and the US Treasury in Dubai. " As of last Thursday, the official market recorded an exchange rate of 1,296 dinars per dollar. It appears the UST is helping Iraq to stabilize.
The Dubai meetings concluded with praise for the bank's strategies in reducing dollar transactions in the local market. Iraq could end the parallel market activity by simply revaluing the Dinar above one USD and the black market activity would come to a screeching halt.
So why haven’t they? Are they stalling for some reason?
Earth News/ Economist Nabil Al-Marsoumi recalled the fate of both former regime president Saddam Hussein and Libyan President Muammar Gaddafi, after Iraq moved towards selling oil for prices other than the dollar.
Al-Marsoumi stated, “In 1973, King Faisal of Saudi Arabia agreed to accept the dollar as the sole currency to buy oil in exchange for America providing military protection for Saudi oil fields, and in 1975 the other OPEC countries agreed to price oil in dollars only, and America succeeded in this deal by linking the dollar to oil instead of gold.” “.
He added, “This deal forced all oil-importing countries to create a fixed supply of dollars to buy oil, and therefore these countries were forced to export goods to America, and in return, America provides them with dollars that will only cost them the cost of printing them, and from here a new system began that maintains American dominance over the financial system.” The global name is the petro-dollar. Dollars leave America and anything America needs comes to it. As a result, the United States became very rich, and this process did not lead to inflation because the countries of the world constantly need dollars to buy oil and participate in international trade. Therefore, those dollars remained outside America, after the dollar was linked. With oil, America can spend more money on its military forces, which have become the first in the world.”
Al-Marsoumi explained, “In 2000, Iraq announced the beginning of linking Iraqi oil sales to the euro instead of the dollar, which, along with other factors, prompted the United States to overthrow Saddam Hussein’s regime by military force. In 2011, Muammar Gaddafi tried to create a gold currency in Africa called the golden dinar, and he succeeded in creating A bloc of African countries, but the Americans overthrew the Libyan regime and killed Gaddafi, because selling the country, even a small one, for its oil for something other than the dollar will cause the dollar’s strength to destabilize. Currently, there is nothing that supports the dollar except oil, and America will not hesitate to use its military power to crush any threat to the dollar, even if it is linked. “Oil is in dollars, and preserving it for the longest time is an American priority.”
He stated that “oil pricing in dollars is not only related to the standard oil crude oils that are priced in dollars, namely Brent crude and West Texas Intermediate crude, but because oil trade is the largest in the world, as it is not limited to exchanging oil in commodity markets only, but there is a very large trade in paper barrels amounting to more than tens of times the real exchange rate, especially on the New York and London Stock Exchanges, through speculation in futures contracts.”
He explained, “Therefore, the calls to sell Iraqi oil in a currency other than the dollar lack realism and reflect a wrong understanding of the basics of oil pricing in the global market, and because it will expose Iraq to very violent American reactions, because abandoning the dollar is an American red line because it will threaten the global position of the dollar, which it currently represents.” 60% of global monetary reserves and will undermine the economic importance of the United States globally.”
Article: "Advisor to the Prime Minister: The financial situation in Iraq is stable and sound"
Quote: "Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, confirmed today, Thursday, that the future outlook for the financial situation in Iraq is stable, while indicating that oil market indicators are still more than 10% above the price specified in the budget until now"
Article: "Romanowski regarding the US Treasury’s visit to Iraq: enhancing cooperation between the two countries”
Quote: “The United States and Iraq share the goal of supporting a sound and strong financial system in Iraq, which will attract investment and ultimately benefit the Iraqi people. She added: I am pleased with the visit of US Treasury Undersecretary Ryan Nelson to Iraq, stressing that this visit has strengthened this important cooperation."
Article: "The Credit Bank of Iraq achieves a profit of 17.5 billion dinars during the year 2023”
Quote: "For the year 2023... its assets rose to 507.7 billion dinars, while it was 406.7 billion dinars in the year 2022, a growth rate of 24.8%...The bank's profits grew by 63.5% during the year 2023 compared to the year 2022, which reached 10.7 billion dinars ”
Clare: With the closure...the dollar price decreased
1/20/2024
The main stock exchange in the capital, Baghdad, closed today, Saturday, due to the decline in the exchange rate of the dollar against the Iraqi dinar.
Selling prices in money exchange shops in local markets in Baghdad reached 153,250 Iraqi dinars for 100 dollars, while purchasing prices reached 151,250 dinars for 100 dollars. LINK
Article: "Dollar prices decline in Baghdad and Erbil with the closure"
WORLD ECONOMIC FORUM ANNUAL MEETING
ACHIEVING SECURITY AND COOPERATION IN A FRACTURED WORLD
A Conversation With Mohammed Shyaa Al Sudani, Prime Minister of Iraq
January 18, 2024 10:30–11:00 CET
A conversation with Mohammed Shyaa Al Sudani, Prime Minister of Iraq Simultaneous interpretation in English and Arabic>
Centre for Regions, Trade and Geopolitics
The Forum's Centre for Regions, Trade and Geopolitics is helping stakeholders shape progress on global and regional priorities within the most complex geopolitical and geo-economic landscape in decades.
Clare: International Finance Corporation: We want to expand our business in Iraq as an investment region
1/17/2024 Baghdad
The International Finance Corporation announced, on Wednesday, its desire to expand its work in Iraq as an attractive region for investment.
The Prime Minister’s media office said in a statement, seen by Al-Iqtisad News, that “Al-Sudani met in Davos with a delegation from the International Finance Corporation/IFC, headed by Executive Vice President Mokhtar Diop.”
The statement added, "The meeting witnessed a review of the prospects for cooperation between Iraq and the international institution, a member of the World Bank Group, in light of the Iraqi government moving forward with economic reforms and implementing major strategic and investment projects."
Al-Sudani confirmed, according to the statement, “the government’s readiness to develop the scope of cooperation and partnership with the international institution, especially after the signing of a contract between the Civil Aviation Authority and the international institution to prepare an investment portfolio regarding the Baghdad International Airport development project to be on the same level as international airports, and compatible with international standards in a comprehensive manner.”
For its part, the International Finance Corporation delegation expressed its desire to expand its work in Iraq as an attractive region for investment, as well as to participate in the Strategic Development Road project and the major projects attached to it. LINK
Article: "The House of Representatives discusses the latest requirements for Iraq’s accession to the World Trade Organization" Quote: "... Iraq has completed all the requirements for joining the World Trade Organization in 2023, and only legislation remains."
Article: "Al-Sudani leaves Baghdad for Switzerland to attend the Davos Forum" Quote: "On Monday, Iraqi Prime Minister Muhammad Shiaa Al-Sudani left the capital, Baghdad, for Switzerland to participate in the 54th session of the Davos Economic Forum."
Article: "With the exception of Iraq...the World Bank announces a rise in food sector inflation in the world" Quote "...the International Monetary Fund announced a decrease in the inflation rate in Iraq, which is expected to stabilize due to the policy of the Central Bank of Iraq and the impact resulting from raising the exchange rate of the Iraqi dinar..."
Article: "An Iraqi delegation heads to Washington within days, followed by a visit to Sudan" Quote: "Iraqi delegation will head to Washington within days, followed by a visit by Prime Minister Muhammad Shiaa Al-Sudani."
Article: "Selling an Iraqi currency dating back to the era of “King Ghazi” for 100 thousand pounds sterling" Quote: "A very rare Iraqi currency dating back to the royal era was sold in the country, today, Monday, at a fantastic price of 100,000 pounds sterling, or approximately 187 million Iraqi dinars ."
Article: "Expectations that the decline in dollar prices will bring benefits to the Iraqi individual " Quote: "In order to reduce the price of the dollar in the local market, the Central Bank of Iraq specified, yesterday, Sunday, the entities covered by receiving their external transfers in cash in the dollar currency, starting from January 2, 2024. "
Article: "A financial expert points out the reasons for the continuous decline in the dollar exchange rate" Quote: "On Monday, financial expert Nabil Al-Ali attributed the continued decline in the exchange rate of the US dollar towards the Iraqi dinar to...the change in the attitudes of merchants and public opinion through their conviction of the strength and status of the dinar...The dollar exchange rates against the Iraqi dinar will continue to decline, thus touching the official rate specified by the Central Bank ."
Article: "The Iraqi Dinar Overthrows The Dollar And Wins The Struggle To Control The Regular Market” Quote “The US Treasury continues its cooperation with the Central Bank of Iraq,as many Iraqi banks have now formed relationships with international banks for the first time.”
Article: " CBI Governor: Int'l welcome to the Iraqi banking sector’s commitment to compliance rules " Quote: " For the first time, Iraq is witnessing the reorganization of the external transfer process through correspondent banks, instead of the Central Bank or the Federal Bank being the executive interface for this process.”
Article: "CBI Governor: Int'l welcome to the Iraqi banking sector’s commitment to compliance rules" Quote: "For the first time, Iraq is witnessing the reorganization of the external transfer process through correspondent banks, instead of the Central Bank or the Federal Bank being the executive interface for this process.”
The Parliamentary Oil, Gas and Natural Resources Committee approached the responsible authorities to ensure that petrodollar dues reach the oil-producing governorates.
Committee member Bassem Ngheimesh told Al-Ma’louma, “The federal government has not disbursed the petrodollar dues to the oil-producing governorates, despite the rise in oil prices.”
He added, “Oil prices exceeded $70 per barrel in the budget,” noting, “The law stipulates that 70 percent of the increase in prices is used to fill the financial deficit in the budget.”
He explained, “The remaining 30 percent is supposed to be distributed to the oil-producing governorates, but this did not happen despite the oil prices on the global market reaching more than $83 per barrel, which prompted the parliamentary committees to move towards the Ministry of Finance and other parties.” To ensure that payments reach the governorates.”
The “petrodollar” was proposed in the 2010 budget, and was increased in the 2014 budget, from one dollar per barrel produced to two dollars. In the 2016 budget, the law stipulated that an amount equivalent to 2 dollars be approved for each barrel of crude oil produced in the governorate and 2 dollars per barrel of crude oil refined in the governorate’s refineries, and $2 for every 150 cubic meters of natural gas in the governorate.
