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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Oil pushes Iraq's cash reserves to a historic high

    Rocky
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    cash - Oil pushes Iraq's cash reserves to a historic high Empty Oil pushes Iraq's cash reserves to a historic high

    Post by Rocky Thu 15 Sep 2022, 5:11 am

    Oil pushes Iraq's cash reserves to a historic high

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    Economy News-Baghdad
     
    Iraq's foreign currency reserves witnessed a big jump to more than 85 billion dollars, amid optimism that the rise will continue until the end of this year reaches 100 billion dollars .
    According to observers, the rise of the cash reserve is due to several factors, most notably the rise in oil prices in global markets, which reflected positively on the country's financial revenues, in addition to decreasing the value of the Iraqi dinar, which reduced the value of the government's monthly salaries, but they warned of the negative effects of the turmoil. Political influence on the country's revenues if it continues for long periods .
    The Central Bank of Iraq had recently announced that its foreign currency reserves had risen to more than $85 billion .
    "The country's reserves have reached the highest level achieved by the central bank since 2003," a central bank statement said, referring to the year the United States occupied the country. The statement added that "gold reserves exceeded 130.4 tons, worth $7 billion, bringing Iraq to the thirtieth place globally and fourth in the Arab world ."
    Commenting on this, the former advisor to the Central Bank of Iraq, Ali Al-Tamimi, said in a telephone conversation with Al-Araby Al-Jadeed that Mustafa Al-Kazemi’s government implemented a package of major reforms in conjunction with the rise in global oil prices, as Iraq’s monthly income reached nearly 11 billion dollars from selling Crude oil .
    Al-Tamimi added that the decrease in the value of the Iraqi dinar against the dollar, which was taken by the Al-Kazemi government, contributed to a clear reduction in the revenues that the state needs to secure salaries to 4 billion dollars or less, which previously amounted to approximately 6 billion dollars per month (before January 2021) . .
    He added that the government's resort to imposing dealing in local currency with Iraqi and foreign private sector companies operating in the country, and the imposition of strong filters on the issue of transferring money in hard currency, contributed to raising Iraq's capabilities to keep its hard currency more than before .
    He added, "However, it is still possible to control more hard currency and prevent its leakage abroad, as the hard currency auction organized by the Central Bank daily presents an average of $180 million and up to $200 million, as part of the policy of maintaining the dinar exchange rate at the threshold of 1450." dinar per dollar, this method can be considered useless and another policy for setting the exchange rate must be considered .”
    Al-Tamimi concluded that the country is expected, in the event of continuing with the current oil prices, that its reserves will rise to about 100 billion dollars, which is a sufficient number to think about establishing a sovereign fund, as in many countries, that will be a guarantor in the suffocating financial crises, especially since Iraq is a rentier state that depends on its economy oil by more than 96 percent .
    The Iraqi Finance Minister, who resigned last month, Ali Abdul Amir Allawi, had expected the country's hard currency reserves to rise to more than $90 billion this year, due to the recovery in oil prices .
    Iraq recorded a sharp decline in foreign currency reserves in December 2020, to reach 48 billion dollars, but it rose again to reach the end of the year 2021 about 64 billion dollars, according to central bank data .
    The country was affected economically by the political crisis that has continued for 11 months in a row, as the formation of the government was prevented from approving the financial budget for the year 2022, amid warnings that the country would enter the new year without a draft budget .
    The current government headed by Mustafa Al-Kazemi relies on the system of advances in the payment of employee salaries and operational budgets related to services .
    Earlier, the Iraq Future Foundation, which is concerned with economic affairs, said that there are "fears that the general budget for the year 2023 will not be approved . "
    The head of the foundation, Manar al-Obeidi, told reporters that "there is a real fear that the general budget for the year 2023 will not be approved, due to the current political crisis. There is no budget without forming a government ."
    Al-Obaidi indicated that "the food security law ends with the end of the current fiscal year, and next year it will depend on the financial management law," noting that "there is a fear that there will be no budget during 2023. "
     
    Last month, Parliament Speaker Muhammad al-Halbousi warned that the state would not be able to spend the money at the end of this year, which will lead to the suspension of people's interests due to the political crisis and the disruption of Parliament's work, which led to the absence of a financial budget for the current and next years .
    Al-Halbousi said in his speech in Baghdad: "I call on the political forces to sit at a dialogue table that will reach solutions to the political crisis," reiterating his "support for the national dialogue initiative ."
    He added that "the country's situation cannot continue in this state, and what we have reached today represents a regression from what we were on," noting that "the end of this year the government cannot spend any money without a budget ."
    He added that "a political group disrupts state institutions through peaceful demonstrations, explaining that the constitution does not allow for state institutions to be disrupted ."

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    Added 09/15/2022 - 11:50 AM
    Update 09/15/2022 - 1:01 PM


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