Tuesday, July 2, 2024
Parliamentary Finance reveals the effects of the oil price increase and its differences in the 2023 and 2024 budgets
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
"STATUS OF THE RV: What is the latest news from Iraq?", PART. 2 , MNT GOAT, 2 JULY
STATUS OF THE RV
What is the latest news from Iraq?
The news is still concentrating mostly on bringing in foreign investors and they told us today that there was a two part plan, and this plan is now completed.
You can read the articles on this subject matter in today’s articles section. The other part of the ongoing news from Iraq is still about the Parallel Market rate vs the Official CBI rate of the dollar. On one had the financial advisor Saleh to Al-Sudani tells us and I quote –
“The advisor to the Iraqi Prime Minister disagreed with what four economic experts said regarding the “stability” of the US dollar exchange rate against the Iraqi dinar, stressing that “the stability of the dollar is real and solid and not imaginary as some believe.“
However, there are four economists who step in and disagree with Saleh.
In the article they give their opinion, but it is just an opinion remember.
Saleh works with this issue daily and he is executing a plan. The plan takes time but Saleh says it is working and again tells us “soon” the parallel will equal the official rate.
But this is weird because Saleh also says and I quote – “which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar”.
So it appears the currency auction rate has reached 1220 at some time but is not yet steady. Remember they get these fluctuations and they are a good sign but must wait for it to stabilize. I believe this is what Saleh is telling us. This is all good news.
Now let’s look at why this is all good news. Also in the same article it gives us a review of the past before Covid and under other prime ministers. It explains factors that affects the rate.
I quote from the article – ““Therefore, all these factors lead the dollar to calm and stability. It previously fell to 144, but then rose again to 148, and the difference with the official 1320 is more than 15 points. Therefore, this is not stability. Rather, the correct stability is as it was before, when it was 1120 in the Central Bank and 1121 abroad.”
Now after reading this last part that I quoted let’s go back to what Saleh told us has recently happened in the currency auctions.
I will quote to you again – “ “which has become stable in its components and trends due to the influence of the official exchange rate factor currently dominating the financing of foreign trade (imports), amounting to 1,220 dinars per dollar”. So the rate is slowly stabilizing as has now reached 1,220 from 1,320. The goal is 1,121.
Folks this is not too far off. Am I telling you they will RV when it reaches their goal. Of course not but these rates adjustments tell us they can not hold this back much longer and even with their own criteria something must be done and done soon to bring the dinar to the international investment world and free it up.
I can see some of my readers commented on the OFAC sanctions and did some research on your own. Congratulations on your findings! Kudos to you. But are you understanding what the US Treasury told you. This get weird and I tried to explain it all to you in one of my past Newsletters. Did you understand what I told you? What the US Treasury told you is in line what I presented to you already. The dinar is still a “risky” investment for the banks due to not being officially back on FOREX.
...TO BE CONTINUED
Coffee with MarkZ. 07/02/2024
"STATUS OF THE RV: So, what is holding up the U.S. to give its permission and assurances?" PART. 1 BY MNT GOAT, 2 JULY
STATUS OF THE RV
Welcome to July. First, I want everyone to know why the RV process has not yet begun (Project to Delete the Zeros) in June as planned by the CBI. My conversation with my CBI contact this past Saturday has assured me once again the CBI is not going to be fooled again. They told me the CBI needs,
in a FORMAL written agreement assurances that the US Treasury will promote the Iraqi dinar back to FOREX, if and when the CBI begins the final stage of the currency reform. They need to move ahead, they want to move ahead. I was told it would be disastrous to increase the rate, then delete the zeros yet not move to FOREX. It all has to work in steps.
Folks, I know we all expected something is June and the US Treasury promised they would cooperate a month ago, but here we sit and its now July. The confirmation letter of agreement has not yet been provided under the Biden administration.
So, what is holding up the U.S. to give its permission and assurances? I have talked to people in the Biden administration and they flat out told me Biden in not going to give permission. But I asked why?
This is left to me to speculate on. But I believe the spineless deep state idiots running our government today could not care less about us investors and most importantly about the Iraqi people. We are all just pawns they play with. These crooked politicians already exchanged way back in 2012–2013 and so who now cares about us. Yes, this is the Obama and now Biden mentality.
I assure you this has gone way beyond us investors telling anyone what to do. It is all about “corruption” and we are now seeing it for all its worth. In my last Newsletter I talked about my conversation with my CBI contact at that time. What did she tell me then?
She told me basically the US are bastards. Opps… I wasn’t supposed to tell you that. But I owe you the TRUTH! I am no longer going to hold back. My contact told me the same.
This is now ridiculous. The US Treasury knows damn well to kickoff the 3rd phase of the strategic plan was to bring the dinar back to FOREX. They were in meetings held to talk about this 3rd stage to the overall plan.
This manipulation is really sad. A decade ago, I could hardly make these claims. But come ‘on folks it has been 20 years already and the entire Europe was rebuilt in a shorter timespan post WW2. But who cares about Iraq, they say. Yes, as long as the oil if flowing, they are taking their corrupt share, the US politicians don’t give a shit about the people of Iraq. Shame, shame, shame on them. Yes, this means democrats and republicans too.....FOR READ MORE: https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/
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