Iraq’s financial revenues exceed 77 trillion dinars in 7 months of 2024

The Ministry of Finance revealed on Tuesday that the size of Iraqi revenues in the federal budget during 7 months exceeded 77 trillion dinars, confirming that the oil contribution to the budget remains around 89%.

Shafaq News Agency followed the data and tables issued by the Ministry of Finance last August for the accounts of January, February, March, April, May, June and July for the current fiscal year, which showed that oil is still the main resource for Iraq’s general budget, reaching 89%, indicating that the rentier economy is the basis for the country’s general budget.

The financial tables indicated that the total revenues for seven months of the current year amounted to 77 trillion, 475 billion, 502 million, 239 thousand, and 546 dinars, indicating that the total advances amounted to 15 trillion, 664 billion, 477 million, 820 thousand, and 559 dinars.

According to the financial tables, oil revenues amounted to 69 trillion, 55 billion, 827 million, and 984 thousand dinars, which constitutes 89% of the general budget, while non-oil revenues amounted to 8 trillion, 317 billion, 883 million, and 512 thousand dinars.

For his part, economic expert Mohammed Al-Hasani said in an interview with Shafaq News Agency, “The economic problem in Iraq is due to the failure of the regimes that ruled Iraq to achieve the mission of moving towards a developmental economy by investing the oil wealth in diversifying the economy, creating productive employment opportunities, raising the level of human development, and ridding it of rentierism.”

Al-Hasani stressed the necessity of “activating a set of laws that encourage the local and foreign private sector to enter the Iraqi market, including customs tariff laws, consumer protection, anti-monopoly laws, and others.”

In March 2021, the Prime Minister’s advisor for financial affairs, Mazhar Muhammad Salih, confirmed in an interview with Shafaq News Agency that the reasons for the economy remaining rentier are due to the wars and the imposition of an economic blockade on Iraq during the past era and the political conflicts we are witnessing today, which led to the dispersion of economic resources.

The continued reliance of the Iraqi state on oil as the sole source of the general budget puts Iraq at risk from global crises that occur from time to time due to the impact of oil on them, which makes the country turn every time to cover the deficit through borrowing from abroad or domestically, which thus indicates the inability to manage the state’s funds effectively, and the inability to find alternative financing solutions.

Shafaq.com

Iraq sells more than 3 million barrels of oil per day in August

The Iraqi Economic Observatory revealed, on Tuesday, the volume of Iraq’s oil exports during the month of August, which amounted to more than 108 million barrels.

The Iraqi Economic Observatory said in a press release that the Ministry of Oil has been delaying the issuance of preliminary data on Iraqi oil exports for some time, which was announced at the beginning of each month, as well as not announcing the average price of a barrel of Iraqi oil in the final data.

He added that according to the initial data monitored by the Iraqi Economic Observatory, Iraq’s exports during last August amounted to about 108 million barrels, at a rate of 3.47 million barrels per day.

The Observatory confirmed that China came in first place in Iraq’s exports, with 42% of the total sales in August, as China alone bought more than 45.3 million barrels, followed by India with 24%, which amounted to more than 26 million barrels, and 6 European countries, which constituted 17%, more than 18 million barrels.

He added that South Korea bought more than 6.8 million barrels.

The Observatory also indicated that Iraq has two types of crude oil that it sells to global markets, medium and heavy, noting that Iraq’s oil sales were 77% medium crude and 23% heavy crude.

According to statistics from the Iraqi Economic Observatory, the largest buyer of Iraqi oil during the month of August was the Chinese company Sinopec, followed by the Indian Oil Company.

The Iraqi Ministry of Oil announced at the end of last August that the total oil exports achieved for last July exceeded 108 million barrels of crude, according to the final statistics issued by the Iraqi Oil Marketing Company (SOMO).

Shafaq.com

Close to Al-Ameri: We support Al-Sudani, and there is no demand for his resignation or early elections

The Al-Fatah Alliance, led by Hadi Al-Amiri, denied, on Tuesday, what was reported about a request from some leaders of the Coordination Framework for Prime Minister Mohammed Shia Al-Sudani to submit his resignation and move towards early parliamentary elections, as a result of recent problems and crises.

The leader of the coalition, Ali Al-Fatlawi, told Shafaq News Agency, “The news that spoke about the existence of a request from the Coordination Framework or some of the leaders of the framework for Prime Minister Mohammed Shia Al-Sudani to submit his resignation and head towards early elections is incorrect, as there is no such request.”

Al-Fatlawi explained that “Al-Sudani has commitments, which are agreements with the forces of the Coordination Framework, and he is required to resolve these files, most notably the file of withdrawing American forces, as well as the dollar crisis and even the services file, and these files are discussed in depth during the periodic meetings of the framework,” stressing that “the Coordination Framework still strongly supports Al-Sudani and his government, and it is not in favor of moving towards early elections.”

The leaders of the Coordination Framework held a meeting the night before last at Hadi al-Amiri’s house, in the presence of Prime Minister Mohammed Shia al-Sudani.

According to the spokesman for the Victory Coalition, Aqil Al-Radini, the leaders of the Coordination Framework discussed the file of the (Mohammed Juhi Network), and an agreement was reached during the meeting on the necessity of the continuation of Al-Sudani’s government and the importance of overcoming these obstacles and supporting Al-Sudani and his government until the end of its term.

Al-Radini pointed out that “some leaders of the framework considered what happened to be a kind of failure, especially with regard to the (eavesdropping) file from within the Prime Minister’s office, and some exploited this file in order to weaken the government. Therefore, the Coordination Framework stressed during its meeting its support for the government and its passage through this stage to the end of the parliamentary session, especially since it is a comprehensive government for all blocs and parties.”

Shafaq.com

Parliamentary Security: Coordination on 3 levels to follow up on the withdrawal of foreign forces from Iraq

The Parliamentary Security and Defense Committee confirmed, Monday, September 9, 2024, the existence of coordination on 3 levels to follow up on the withdrawal of foreign forces from Iraq.

Parliamentary Security Committee Advisor Mustafa Ajil said in a press interview that “the capabilities of the Iraqi security establishment with all its formations are capable of controlling the pace of security, averting external and internal dangers, and enhancing security and stability, and it does not need any foreign military presence,” noting that “the Council of Representatives issued an important decision in 2020 to withdraw foreign combat forces from the country in light of a national vision and a reading of the security scene in general.”

He added, “The Parliamentary Security Committee is following up on the issue of withdrawing foreign combat forces from the country on three levels, the most prominent of which is with the government, security ministries, and the teams concerned with conducting consultations to determine the roadmap and timetables for the withdrawal,” noting that “national sovereignty is a red line and the withdrawal of any foreign combat force is undisputed.”

Ajeel pointed out that “there are arms and training agreements with many foreign countries, and this matter is subject to the extent of military and security importance, but the presence of any combat force is a settled matter and is within the principle of pushing it to withdraw and leave the country because our security situation is stable and we have forces capable of curbing any security threat.”

High-level military committees from Iraq and the United States have reached an agreement on the withdrawal of coalition forces over two years, and agreed to transform relations into a sustainable security partnership, Defense Minister Thabet al-Abbasi announced in a televised interview followed by “Baghdad Today.”

He added: “It was agreed to end the alliance’s mission in two stages,” indicating that “the first stage begins this year and continues until 2025, while the second stage ends in 2026.”

He explained that “the announcement of the withdrawal was postponed due to the circumstances the region is going through and the American elections,” expecting that an agreement will be reached within the next few days on the withdrawal of the coalition forces that arrived in Iraq with the aim of supporting the country in the war against ISIS.

Regarding the tensions witnessed in the region following the attack launched by the Palestinian Hamas movement on Israel on October 7, and the resulting launch of the Israeli military operation in the Gaza Strip, the Minister of Defense stressed that the contacts made by the Iraqi government played an important role and its role in avoiding the spread of the conflict in the region.

Burathanews.com

Citizen and exchange rate

In economics, the external value of a currency lies in the presence of a balance or surplus in the current account of the balance of payments relative to the gross domestic product, which should indicate a stable state at a minimum, not less than 4 percent annually. To achieve this goal, it is necessary to rely on a sustainable increase in the annual growth rate of the gross domestic product, provided that exports exceed imports, within the country’s trade balance.

In the past, the country had the capacity to export goods and services more than it imported, which strengthened the value of the national currency, especially the external value of the currency itself, during those years, especially in the early seventies, and the economy indicated a positive state, in addition to the availability of foreign reserves that support the main barrier against potential external factors and their effects on the overall economic situation.

In the current economic system, currency prices are determined globally in two main ways, namely floating and fixed prices and through local and international factors that control the strength of the currency in supply and demand, interest rates, inflation and growth in the local economy, the trade balance and other influences, but the strength of the national currency is linked to its external value, specifically the exchange rate, as the external value of money is directly linked to the stability of the current account of the balance of payments, especially in the long term, in addition to the stability of foreign reserves in the central bank of the country, which strengthens the strength of the Iraqi dinar and the stability of the exchange rate.

On the other hand, the value and stability of the currency are linked to the internal value of the national currency itself. Just as we talk about the stability of the external value of the currency in the exchange rate and its exchange power with other currencies, the internal value of the currency is the other side of the stability Currency and its strength, here the value of the national currency is directly linked to the general price level, which means the strength of goods and services expressed in money.

There is a correlation between price stability and the value of the national currency, and this requires the availability of a wise monetary policy, undertaken by central banks that make the growth in the money supply commensurate with the growth in the gross domestic product or national income.

The quantitative theory of money is based on the principle of the neutrality of money, which explains that the cause of inflation in the long term is money itself, as the growth in the money supply in a way that is not commensurate with the growth in the gross domestic product leads to either inflation or contraction in the growth of the general price level, if the amount of money in the economy increases, and unless there is a parallel increase in economic output, this will lead to an increase in the general price level, and a loss of control over exchange rates, even if the state sets the exchange rate in a way that is different from what is sold in the market.

The best evidence of this is that the exchange rate in most Iraqi markets is still fluctuating between 149-150 thousand Iraqi dinars for every 100 US dollars, while the government exchange rate is 132 thousand Iraqi dinars for every 100 dollars. American, but it did not bring any significant benefit to the citizen, but rather only speculators, brokers, traders and some companies profited from the price difference.

Alsabaah.iq

Rafidain Bank announces the implementation of the electronic banking system in a number of its branches

Rafidain Bank announced today, the implementation of the electronic banking system in a number of its branches

The bank’s media stated in a statement received by {Al Furat News} “In implementation of the government program to move from paper transactions to electronic ones to provide the best services to citizens, Rafidain Bank announces the implementation of the comprehensive banking system in the branches of Al-Amel neighborhood in Baghdad, Al-Farouq in Diyala, and Al-Khalidiya in Anbar to join the branches that have activated the comprehensive system in Baghdad and the governorates in addition to the branches of the border crossings (Zurbatiya – Safwan – Arar – Trebil) so that the number of branches that have implemented and completed the system becomes (40) branches.”

He added, “This is an important step to strengthen the banking system, meet its requirements, and move away from paper work and towards electronic systems.”

The bank confirmed that “the digital transformation plan and the adoption of the comprehensive banking system are proceeding according to the set timetables to include all the bank’s branches in the implementation of the system, especially since the priorities and adoptions of the government program include electronic transformation in financial transactions, reducing the circles of routine for citizens, shortening time, simplifying procedures, overcoming obstacles, and intensifying efforts to improve the level of services provided to customers and completing their transactions.”

Alforatnews.iq

Finance and World Bank discuss supporting Iraq’s economic reform program

Alsumaria News – Economy… Today, Finance Minister Taif Sami discussed with the Regional Director for the Middle East at the World Bank, Jean-Christophe Carré, and the Bank’s Special Representative in Iraq, Richard Abdelnour, support for the economic and financial reform program in Iraq.

The ministry explained in a statement received by Sumaria News, that “the meeting witnessed the follow-up of the loans and grants of the World Bank, the priorities of development projects, and ways of supporting the World Bank to enhance the financial and business sectors and improve the investment environment, where the continuation of bilateral coordination to enhance sustainable development was emphasized, in addition to discussing the bank’s support for the government program regarding economic reform in Iraq.”

According to the statement, the Minister referred to “the government’s interest in strengthening partnership with international financial institutions, within the framework of accelerating the pace of financial and banking reforms in line with the Iraqi government’s vision aimed at consolidating the foundations of the national economy, achieving economic balance, and correcting the course of financial policy in Iraq.”

Alsumaria.tv

Economist: Currency auction will secure liquidity for the Ministry of Finance

Information/Baghdad… Economic expert Safwan Qusay confirmed that the Ministry of Finance does not suffer from any problems in securing employees’ salaries, noting that the currency auction will secure the necessary liquidity.

Qusay told Al-Maalouma, “The fear of not funding salaries is exaggerated, as the Ministry of Finance has no problem funding the employee compensation item, as it is governed by laws. In addition, some federal ministries have paid their employees’ dues, with the exception of certain units whose salaries were not funded due to lack of data or lack of conformity between the amounts requested for funding and the attached statements, which leads to procrastination.”

He added, “The Central Bank sells at a rate of 280 million dollars daily, and this number is sufficient to cover all commodity and service products.”

He explained that the price of a barrel of oil needs $69 to balance operating expenses at the current production level of 3 million and 200 thousand barrels of oil per day.

He explained that “more than $69 per barrel is used to finance the investment budget, as Iraq needs $96 per barrel to finance all operating and investment expenses.”

Almaalomah.me

Parliamentary Committee Calls on Foreign and International Companies to Invest in Iraq

Information / Baghdad… The Parliamentary Investment and Development Committee called on foreign and international companies to invest in Iraq today, Thursday, while stressing that the Iraqi market is promising and its investment environment is good.

Deputy Chairman of the Investment Committee, Hussein Al-Saabri, told Al-Maalouma Agency that “the Prime Minister discussed developing economic and trade relations with international and Arab countries to increase foreign investments in Iraq.”

He added that “local investments in Iraq are small compared to foreign and international investment capabilities and opportunities, noting that foreign investments play an important role in stimulating economic growth and developing the state’s sources of hard foreign currency.”

He continued that “foreign investments improve the image of the state and confidence in the Iraqi economy abroad, which encourages increased foreign investments.”

Almaalomah.me

More than 108 million barrels of Iraqi oil exports in one month

Shafaq News / The Iraqi Ministry of Oil announced on Thursday that the total oil exports achieved for the month of July exceeded 108 million barrels of crude, according to the final statistics issued by the Iraqi Oil Marketing Company (SOMO).

According to a statement issued by the Ministry, the quantity of crude oil exports amounted to (108) million, (53) thousand and (356) barrels.

The statistics indicated that the total quantities of crude oil exported last July from the oil fields in central and southern Iraq amounted to (106) million, (125) thousand, and (200) barrels, while exports from Qayyarah amounted to one million, (928) thousand, and (156) barrels.

Shafaq.com