Economists are optimistic about the rise in oil prices and call for the activation of the sovereign

[size=52]Economists are optimistic about the rise in oil prices and call for the activation of the sovereign fund in Iraq[/size]

[size=45]Economists expressed their optimism about the rise in oil prices, and while they called for structuring the oil policy in Iraq to absorb the unemployment crisis, they offered solutions that would revive the Iraqi economy.[/size]
[size=45]The economic expert, Salam Sumaisem, says that “the increase in oil prices is supposed to be directed to areas where the Iraqi economy suffers from a lack of funding, the most important of which is bridging the deficit gap in the public budget, and that it is directed to development purposes and improving the situation of the citizen, especially the health file, especially with the outbreak of the pandemic and the presence of Hospitals suffocate phenomena as well as saving expenses to meet the needs of the ration card and improve its quality.”[/size]
[size=45]Sumaisem added, "The Ministry of Finance confirmed that the issue of raising the price of the dollar will continue for 5 years, and it is possible to address the effects of this, and thus reduce the internal debt represented by the state's borrowing from some institutions such as the Rafidain Bank, the Trade Bank of Iraq and other banks, in addition to the volume of bonds submitted, and this remains based on the size of the state's fiscal policy.[/size]
[size=45]And she noted that "there is an important issue represented in the economic vision and benefiting from these funds and caution against their loss and loss of control and transparency, as there are no reports regarding the final accounts provided by the Financial Supervision Bureau, as well as waiting for Parliament to approve the 2022 budget." In turn, the economic expert, Tariq Al-Ansari, says, “The rise in oil prices can be called (the oil market uprising) due to three cases or problems that occurred in the oil market, which are the increased demand for fuel in Europe due to the decrease in European stocks by 11%, and the establishment of the United States The US has withdrawn the strategic oil stockpile, and decreased exports to Kazakhstan, which is a member of OPEC.”[/size]
[size=45]Al-Ansari added, "These three factors led to a price increase to $85, and it is expected in the coming months to reach $90," noting that "this increase represents successful and good indicators for reviving the Iraqi economy if it is properly and properly utilized within the economic engineering." In Iraq’s oil policy, to absorb unemployment and reduce loans, which has become a burden on the Iraqi economy, the public budget, and the Iraqi citizen in particular.” He stressed, "This increase should follow the example of what countries such as Kuwait, Saudi Arabia, the UAE and Qatar did by placing them within the generational support strategy, as economists in oil policy tended to directly strengthen the sovereign fund of their countries," stressing "the need to take the right and proper measures in oil policy and achieve The increase in the economic system in Iraq is a fragile system that does not adopt standards on how to employ these increases so that they are reflected on the Iraqi economy and citizens.”[/size]
[size=45]He pointed out “the importance of there being a return to all government performance of economic activities, restructuring the oil policy, achieving a balance between financial, monetary and investment policies, and working to activate the sovereign fund, as we call it the Generations Fund, and build it in a way that guarantees a solid and sober economy because opportunities in the economy do not always come.” In normal circumstances, it always comes in difficult circumstances.”[/size]
[size=45]For his part, the economist, Nabil Jaafar, said, “There are upward trends in the tracks of crude oil, and Brent crude recording more than $87 is an indication of the recovery and recovery of the global oil market due to many factors, with strong demand accompanied by limited supply due to the inability of OPEC to implement monthly increases.” amounting to 400,000 barrels per day and only 250 thousand barrels, in addition to this, the inability of shale oil producers to distribute profits and invest in the industry, which is turbulent and requires large capital to shift towards clean energy.”[/size]
[size=45]Jaafar continued: "Added to this are the tensions that the world is witnessing, especially in Kazakhstan, and the armed attacks against the UAE, which cast doubt on the safety of oil supplies, in addition to the cold weather experienced by the western hemisphere," noting that "all these factors pushed oil prices to These prices are high."[/size]
[size=45]He added, "It is hoped that the price of a barrel of oil will break the $100 barrier, and this situation will reflect positively on the Iraqi situation, where the value of exports is expected to reach 145 trillion dinars, an increase of about $25 billion over what was achieved in 2021."[/size]
[size=45]He stressed, "Oil is the focus of the Iraqi economy and the main source of income from foreign currency, as it is positively reflected on the level of all economic indicators, the balance of payments, external balances and the current account balance, and the deficit will also decrease as a result of the increase in oil prices and the high level of Iraqi oil revenues."[/size]
[size=45]He pointed out that "today there is a new wave of rising crude oil prices, and it is possible to invest this to break the financial constraint that prevents real economic development, and to invest large sums that can be allocated to activate the investment aspect and establish some strategic projects that generate goods and services and have an impact on achieving a qualitative leap." for the Iraqi economy.[/size]
[size=45]He pointed out, "The importance of working to establish a sovereign fund and a financial and economic buffer, because the rise in oil prices will not continue, and we will face in the coming years factors of a decline in prices, so this fund is important to maintain the guarantee of the future for future generations." The financial advisor to the Prime Minister, Mazhar Muhammad Salih, had submitted earlier, a proposal to establish a fund or account concerned with the stability of the budget and fed annually with a percentage of the surplus oil revenues, to hedge against the risks of price fluctuations, while recommending the adoption of financial discipline after the rise in oil prices, pointing to This avoids resorting to debt and hedges against oil price shocks.[/size]
[size=45]He added, "Financial discipline means the optimal use of budget resources and raising the levels of good management without financial waste that ultimately arranges resorting to unjustified borrowing, and it also hedges against external price shocks generated by oil market surprises and price fluctuations and their sudden decline without knowing the reasons, which leaves direct adverse effects on the stability of the financial sustainability of the country.”[/size]
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