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5 Differences Between The Center And The Region Will Afflict The New Draft Oil Law.. What Are They?, 3 SEPT

 Economy  |Today  Baghdad today – Baghdad  Today, Sunday (September 3, 2023), economist Nabil Al-Marsoumi revealed 5 differences between the center and the region that may plague the new draft oil law.

Al-Marsoumi said, in a clarification received by “Baghdad Today”, that “there are several differences between the center and the region that may plague the new draft oil law.”

He added, “The first difference is represented by Article 5 of the new draft oil and gas law, which stipulates that the Federal Council shall be established under the chairmanship of the Prime Minister or whomever he authorizes, and includes in its membership each of the Federal Minister of Oil, the Federal Minister of Finance, the Federal Minister of Planning, the Governor of the Central Bank, the Minister of Natural Resources in the region, and the governors of Three oil-producing provinces that are not organized into a region and three experts.

He explained, “Decisions are taken by majority, while the region believes that the Federal Council for Oil and Gas should include in its membership both the federal government (ministers of oil, finance and planning) and the regional government (ministers of natural resources, finance and planning) and governors of oil-producing governorates that are not organized in a region. The presidency is in The council is rotating and decisions are taken unanimously.

Al-Marsoumi continued: “As for t he second difference, it concerns (Article 8 First), which stipulates that the Federal Ministry of Oil shall manage the oil and gas-producing fields throughout Iraq in coordination with the region and the producing provinces. As for the vision of the region, it is summarized as follows: The federal government manages the oil and gas extracted from the fields.

The current (which was extracted, developed, and commercially produced before the constitution expired in 2005) with the regional government and the producing governorates that are not organized in a region. commercial production after the expiry of the constitution).

And he added, “While the third disagreement is about Article 11 of the new draft oil law, as it states that the Federal Council is the one that gives approval to oil licensing contracts, while the region sees that it is the competent authority on exploration, development and production contracts or any other contracts with the contractor that The choice falls on him and does not require the approval of the Federal Council.

He pointed out that “the fourth difference is in Article 16 of the draft law, which stipulates that the ministry is the supreme authority responsible for the obligations of the contractors, while the region believes that the competent authority in the region is responsible for the obligations of the contractors in the contracting areas within the region,

and the fifth difference is in the article 24 of the draft law that the main pipelines are owned by the federal government, while the region says that the federal government, the regional government, and the producing provinces establish and own pipelines to transport oil and gas.

He concluded by saying that “the sixth difference is that the new draft oil law did not include any article indicating the marketing of oil and the party responsible for it, but as is currently in force and confirmed by the Federal Court, the Ministry of Oil represented by SOMO is the only party responsible for marketing all Iraqi oil regardless of Its production site, while the region sees that the Federal Council sets marketing and sales policies, and the sale process is carried out by marketing companies belonging to the regional government or producing governorates that are not organized in a region.  LINK

Iraqi Dinar Value Very Strong / iraqi dinar news today / iqd dinar / ira...

"RV UPDATE" BY MILITIAMAN, 3 SEPT

 Militia Man 

Iraq is ready to go international.  What we're hoping and praying for is they show us an Article VIII compliant exchange rate and show us their new currency they're going to be using in the near future. 

 I think those new small category notes that were printed back in 2018 need to get exposed to the world...

It hasn't been their job to tell us everything.  It's because we're outsiders.  It's their country and they keep it to themselves as best as they possibly can.  

We should be able to understand that that's a big component of this whole process...

What's this business about this 1132 that Alaq mentioned?  Alaq is the central bank governor...He said the official exchange rate for the Iraqi currency is 1132...A lot of people are going, 'Well that's not true!'.  The fact remains...he said it...as the official rate of the Iraq dinar but it's not on their website. 

 I'm not making it up.  I'm not giving you accusations...it's proved...

Iraq’s Economy Is “Fragile”… “Shocking” International Figures, So What About Their Accuracy?, 3 SEPT

 Iraq’s Economy Is “Fragile”… “Shocking” International Figures, So What About Their Accuracy?

Reports  Economy News  With the impact of fluctuations in currency exchange rates and the reduction in oil production following the interruption of exports through the Turkish Kirkuk-Ceyhan oil pipeline, estimates indicate a contraction in the non-oil real GDP in Iraq by a high rate of up to 9% on an annual basis in the last quarter of this year. Compared to its counterpart in 2022, which means undermining the effects of growth achieved in the first three quarters of this year, according to estimates by the World Bank, which believes that the country’s economy has become “fragile”.

In this regard, the economist and financial expert Abd al-Rahman al-Shaikhli believes in statements to Al-Araby Al-Jadeed that the estimates of the World Bank are “shocking” because they contain true and certain information, and they sound the alarm for Iraq’s economic future, but he believes, at the same time, that they contain some “Exaggeration”.

For example, the figures announced in the bank’s latest reports indicate that the total public debt is equivalent to 76 billion dollars, distributed among 55 billion internal debts and 21 billion external debts, while the debts Iraq can pay easily, because it has a high domestic product, especially since Debt constitutes between 30% and 35% of oil production revenues only.

Al-Sheikhli also confirmed to Al-Araby Al-Jadeed that the Iraqi economy is “fragile,” as described by the World Bank report, due to dependence on oil resources and the worsening rentier situation, with the decline in other sources of resources in the public budget, which made the economy rentier par excellence, adding to that the lack of economic relationship.

The rationale between the volume of expenditures from financial allocations and the quantity and quality of the achievements achieved from government projects in light of corruption devouring huge amounts, with the low level of service and development achievements achieved within the framework of the annual budgets of the state, with the increase in the percentage of poverty and unemployment and the high volume of debt borne by the national economy, and all of these, In his opinion, reasons made the economy weak.

Commenting on the causes of fragility, political analyst Haidar al-Moussawi believes to The New Arab that the most prominent of them is the spread of financial corruption in all sectors of life, and the state’s tendency to rely entirely on the oil sector, which feeds 98% of the GDP and is considered the basis for the continuation of economic life, “attributing the economic deterioration to Poor management,

the lack of development and reform programs, effective economic plans, the absence of a real vision to raise the general level of the country, and the lack of solid tools that contribute to alleviating the burdens of citizens and the economy,

while “the governments have not taken any effective measures to revitalize the industrial and agricultural sectors to be synonymous with the energy sector,” thus avoiding the country from an economic disaster in the future.

A number of International Fund experts had met with Iraqi officials in Jordan between May 24 and 31, and they discussed economic developments and general policy plans for the country’s economy in the coming period, stressing at the conclusion of the meeting, in a detailed statement, that “the momentum of the growth of the Iraqi economy witnessed It has slowed down in recent months, after the country recovered last year to the pre-coronavirus situation.

The World Bank followed that occasion by asserting that “the Iraqi economy is fragile,” noting that the central bank’s auction caused the redirection of hard currency to the parallel market, which led to a decrease in the value of the dinar against the dollar, and thus led to a significant increase in food prices.

According to the World Bank report issued entitled “Iraq’s Recovery is in Danger” dated August 20, there are renewed pressures, “as it suffers from stagnant non-oil gross domestic product, industries and agricultural activities, accompanied by high inflation rates, while Iraq lacks under its government The current situation calls for wide-ranging structural reforms that will enhance its economy and diversify its public treasury revenues, rather than relying solely on oil.

In this context, the World Bank expressed its reservations about the recent general budget, as it criticized the large increase in the volume of public expenditures by 59% compared to the year 2022, representing 74.3% of total expenditures, which will lead to a large fiscal deficit of $ 39.7 billion, representing 14.3% of the volume of expenditures. General imports, more than half of the recent record reserves accumulated in the wake of the oil price boom.

According to a report issued by the “International Center for Development Studies” in London last Wednesday, Iraq loses annually at least $5 billion as a result of its import of oil derivatives despite having the second largest oil reserves in the “OPEC” organization, noting that Iraq has the capabilities to refine 1116 tons of oil. One million barrels per day, while its current production does not exceed 950,000 barrels, while the return of the Baiji refinery to work would raise refining capacity to 1,260 million barrels, which would meet the country’s consumer needs for petroleum products.

 – https://economy-news.net/content.php?id=36130

Iran Set to Attack Iraq KR on Sept 19th #IAD Exchange Rate

"THE LOCAL ECONOMY OF VIETNAM WILL CONTINUE IT'S GROWTH", BY DINAR IRAQ & DONG VIETNAM, 3 SEPT

 VOV.VN - Andreas Stoffers, country director of the Friedrich Naumann Foundation for Freedom (FNF) in Vietnam, has predicted that the local economy will continue its growth track moving forward.

During a recent interview given to Lao Dong (Labour) newspaper, Stoffers said the Vietnamese economy expanded by 3.72% in the first half of the year. Though lower than last year, it still stood as a positive figure amid the general global economic downturn.

The average consumer price index (CPI) increased moderately by 3.12% on-year in the January to July period, with this declining trend in the average CPI growth over the months being a positive sign indicating the country is on track to achieve the inflation control target of below 4.5% set for the year.

During the initial seven months of this year growth was mainly driven by the retail of goods and services, which rose by 10.4% annually. The industrial production index in July also saw an increase compared to earlier this year.

Attributing these positive outcomes to the fiscal and monetary policies of the State Bank of Vietnam (SBV), he said that the reduction in interest rates is stimulating credit demand whilst enhancing liquidity within the banking system and the economy, particularly in the credit sector. Alongside setting credit growth cap at 14% for this year, the SBV will issue necessary warnings.

In his point of view, Vietnamese GDP growth will exceed 5% this year. Aside from the contribution of FDI, additional momentum will be needed from increased public investment and personal consumption.

Amid facing headwinds such as the Russia-Ukraine conflict; difficulties in Vietnam’s partner countries, especially the EU; slow recovery in various markets and the global inflation specter, he said a comprehensive set of solutions is required to both foster further development and manage risks in an effective manner.There should be an improvement in the entire financial sector, such as the establishment of a financial centre in Ho Chi Minh City in the medium term. It is equally important is to promote co-operation between the public and the private sector in a bid to generate a collective strength, thereby creating the opportunity to access various financial products and international markets and enabling the public to invest in diverse asset types, he said.

He also suggested a further push for financial education in a bid to help people understand financial products and make careful investment decisions, as well as institutional improvements, particularly in finance.

As a means of achieving these set targets, he said it could be facilitated by Government support through expediting institutional reform, modernising legal frameworks, and co-ordinating policies. The most crucial aspect of this is addressing the weakness in decision-making process that currently exists in certain administrative sectors.

At the same time, there is a need to further increase sustainability, step up circular economy, strongly digitise administrative processes, improve environment protection, and boosting public investment while reducing inefficient structures, especially at State-owned enterprises, is also essential.

To stimulate investment and create liquidity, interest rates could be cautiously lowered further, with subsequent adjustments as the economy experiences significant recovery. Lastly, domestic consumption demand should also be further bolstered, he said.