Experts on the rise in cash reserves: oil imports doubled expenditures

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[size=52]Experts on the rise in cash reserves: oil imports doubled expenditures[/size]

[size=45]Baghdad/ Firas Adnan[/size]
[size=45]Economists confirmed that Iraq's monthly oil imports are currently double its expenditures, pointing out that the increase in energy and food prices will cost the treasury $18 billion, but they talked about a significant increase in the Central Bank's reserves in a way that enables it to cover the value of the Iraqi dinar.[/size]
[size=45]Another economic expert, Safwan Qusay, said, "Iraq is going this year without a budget, and this made the government unable to spend more than 101 trillion dinars, which is the amount of spending for the past year."[/size]
[size=45]Qusay continued, "The average monthly spending according to last year's budget is 7.5 trillion dinars," explaining that "Iraq's monthly revenues are close to 15 trillion dinars."[/size]
[size=45]The House of Representatives is seeking to pass a law on emergency support for food security in order to provide financial support to a number of sectors by allocating more than 25 trillion dinars.[/size]
[size=45]Qusay said, "Iraq will get an additional 50 trillion dinars over what it was last year, and the total will be in the range of 120 to 130 billion dollars, which is the revenues for the current year."[/size]
[size=45]He stressed, "The increase occurred after the zeroing of Kuwait's debts in the previous year, which provided us with 3 billion dollars, with the change in the exchange rate of the dollar against the Iraqi dinar, which provided us with 10 billion dollars."[/size]
[size=45]Qusay spoke about “another important factor, which is the rise in oil prices, as a barrel is currently sold at $117 per barrel, as the export quantities will return next month to 3.7 million barrels per day.”[/size]
[size=45]On the other hand, Qusay said, "Iraq needs to increase the dues to purchase energy and foodstuffs, and this requires finding an additional 18 billion dollars to raise the prices of these materials."[/size]
[size=45]He stressed, "The remaining revenues will be about 50 billion dollars, and despite the statement of Finance Minister Ali Abdul Amir Allawi that there will be 20 billion dollars that will go to the reserve, but we believe that the amount will be more than that."[/size]
[size=45]And Qusay, that «the reserves of the Central Bank will rise in a manner that covers the value of the Iraqi dinar, which there is no doubt about its collapse according to these data».[/size]
[size=45]For his part, the economist Nabil Al-Ali said, "The current oil prices in the global markets, which are between 110 to 120 dollars, were expected and within what most of the major economic institutions concerned talked about."[/size]
[size=45]Al-Ali added, "A part of these institutions began to expect a new rise in oil prices during the second half of this year."[/size]
[size=45]He pointed out that "the current rise occurred as a natural result of the repercussions of the war between Russia and Ukraine on the oil market," adding that "the second expectation is the stability of prices as they are and will not decline below $100."[/size]
[size=45]Al-Ali indicated that "the current rates have a great positive impact on the economies of the oil-producing countries, including Iraq, and unlike other oil-consuming countries, they will be affected."[/size]
[size=45]He noted, "The damage to Iraq can occur in one aspect only, which is the rise in consumer product prices in general as a result of the rise in oil prices."[/size]
[size=45]Al-Ali pointed out that “the cash reserve of Iraq is linked to the Central Bank, and the increase that occurred in it during the past period was the result of the rise in oil prices, and this overall reflects the extent of the overall stability of Iraq’s economy and its ability to borrow conditionally during the past period to establish development projects.”[/size]
[size=45]He added, "The rise in revenues has a significant impact on Iraq's credit rating, in that it is not exposed to risks, and these are important indicators that are reflected in the volume of oil needs."[/size]
[size=45]Al-Ali explained, "Once Iraq enters into budgets, these reserves will be eroded, and their increase occurred as a result of the lack of spending after the end of the budget law for the past year."[/size]
[size=45]He called, "there is stability in the cash reserve and there will be no continuous increase, but some amounts are transferred to the accounts of the government or the Ministry of Finance in order to spend them in the development aspects, energy production or gas investment in order to return the revenues."[/size]
[size=45]Al-Ali went on to say that “the reserves are against the local currency in order to find a kind of balance in monetary policy, while the additional revenues can go to government accounts,” stressing that “the increase in the reserves must be linked to an increase in the printing of the local currency so that we have a kind of Stability and balance.[/size]
[size=45]Iraq had started a series of reform measures at the economic level represented in the White Paper, and these measures were welcomed by the international community.[/size]
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