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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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    Report: A decrease in the price of oil in the budget, one dollar will cost Iraq 1.5 trillion dinars

    Rocky
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    • Post n°1

    Report: A decrease in the price of oil in the budget, one dollar will cost Iraq 1.5 trillion dinars Empty Report: A decrease in the price of oil in the budget, one dollar will cost Iraq 1.5 trillion dinars

    Post by Rocky Thu 11 May 2023, 1:59 pm

    Report: A decrease in the price of oil in the budget, one dollar will cost Iraq 1.5 trillion dinars

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    A report by the British (SLI) website confirmed, on Tuesday, that the decline in the price of a barrel of oil by one dollar within the price specified within the federal budget for Iraq will cost the country a decrease of 1.5 trillion Iraqi dinars annually. 
    The report stated that "the budget proposal calls for a total spending of 199 trillion dinars, consisting of current expenditures amounting to 149.6 trillion dinars and investment spending amounting to 49.5 trillion dinars, as revenues are expected to reach 134.6 trillion Iraqi dinars, consisting of oil revenues amounting to 117.3 trillion Iraqi dinars on The basis for exporting 3.5 million barrels per day, at an average price of $70 per barrel, in addition to non-oil revenues amounting to 17.3 trillion Iraqi dinars. 
    He added, "The resulting deficit of 64.5 trillion Iraqi dinars will be funded by 23 trillion Iraqi dinars from the account of the Ministry of Finance in the Central Bank of Iraq and about 10 trillion Iraqi dinars from continuous foreign funding for investment projects, which requires new local construction and borrowing 31.5 trillion dinars." 
    He continued, "The new Iraqi budget differs from its predecessors in three main points. First, it was conducted in consultation within the State Administration Coalition in the hope that it will be passed by the House of Representatives with minimal changes. The second is a proposal that the budget be for three years instead of one year to provide The political stability of the government during its tenure, and the third is that it contains a framework for addressing disputes between the federal authorities and the Kurdistan Regional Government regarding oil exports in a way that satisfies the ruling issued by the Federal Supreme Court for the year 2022 and provides for the Kurdistan Region of Iraq’s share of the budget.
    He explained, "High oil prices in 2022, and medium-term expectations of higher oil prices provide the government with the flexibility to pursue its spending plans for 2023. However, these dynamics will change even when assuming that oil prices will continue to rise in 2024, and this scenario will be repeated in 2025." If oil prices are the same as assumed for 2024, but more domestic borrowing means the domestic debt stock could be 70-80 percent larger by the end of 2024 than it was at the end of 2022. 
    He pointed out that "the sensitivity of the budget to oil prices makes every decrease of one dollar per barrel in the annual average of Iraqi oil prices translate into a decrease in revenues of 1.5 trillion Iraqi dinars (assuming proven oil exports and the current exchange rate for dollars and thus a local increase in borrowing needs. On the other hand, Rising oil prices would change the picture for the better, but it would not change the trajectory of domestic debt to increase oil revenues, which, over time, would lead to the exclusion of other budget expenditures and reduce flexibility for future budget planning.


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    Added 05/11/2023 - 7:14 PM


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