477 Policy 12/21/21 22:53 Baghdad today – Baghdad The Central Bank of Iraq announced the completion of the last remaining installment of Kuwait’s compensation, amounting to 44 million dollars.
The bank stated in a statement, today, Tuesday, that “the payment of the last remaining installment of the State of Kuwait’s compensation amounting to 44 million US dollars has been completed, and thus Iraq has completed the full payment of the compensation amounts approved by the United Nations Compensation Committee of the UN Security Council under Resolution (687). For the year 1991, with a total of (52.4) billion US dollars for the State of Kuwait.
{Economic: Al Furat News} The Ministry of Electricity officially awarded, on Tuesday, a contract worth 243 million dollars to (Stellar Energy) to convert the combined cycle at the Kirkuk power plant.
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And the US embassy in Baghdad stated, in a statement that {Euphrates News} received a copy of it, that it: “It can raise the power capacity of the Kirkuk station by more than 270 megawatts, and this would help Iraq better meet its energy needs during the months of peak demand.” “.
The embassy indicated that “the Deputy Chief of Mission (Jay Zimmerman) attended the signing ceremony and highlighted the United States’ support for energy independence in Iraq, as well as the growing economic cooperation between the United States and Iraq through American private sector investments.”
Large traders, even retail owners, turn towards the dollar and refrain from the dinar to overcome any sharp fluctuations or similar collapse that occurred in neighboring countries and the region such as Iran, Turkey and Lebanon, which may cause heavy losses to them.
These fears have prompted citizens to expedite the disposal of the local currency in their possession and replace it with dollars, as well as limiting sales and purchases of hard currency by some owners of companies, car showrooms, and some interests whose dealings are linked to the dollar, for fear of a sudden collapse of the dinar against the dollar.
The companies that deal in loans, debts and deferred transactions have also tended to make the dollar a fixed form of dealing for them instead of the dinar.
An economic expert explained the reason why the local market sometimes resorted to dealing exclusively with the dollar, not the Iraqi dinar.
Bassem Jamil Antoine told {Euphrates News}: “This transaction does not mean a collapse and the exit of the dinar from daily transactions, as the majority of people still deal in the Iraqi dinar and consider it the basis of the currency, but the rise in commodity prices and monetary inflation has become easier in buying and selling in the dollar, which is not new and it has passed.” It’s more than 20 years old.”
And he indicated that “the Iraqi economy is non-productive and consumerist, and all imports depend on the dollar, so dealing with it is easier than trading in dinars, which may be exposed to a loss or disparity.”
Jamil stressed, “The Iraqi dinar is still strong, and the strength of the Iraqi economy does not lie in paper and remains a facade,” noting that “these exaggerations are largely unjustified, and some people have turned, and unfortunately rumors play a role, and the Iraqi dinar is still a similar site.”
Traders say, “The increasing demand of people to buy dollars is due to two reasons, the first reason is with the aim of the daily transactions of some stakeholders for the purpose of trade and buying and selling operations that began to impose dealing in dollars, and the second reason aims to acquire dollars by citizens in anticipation of any collapse or economic emergency in Iraq in the future. “.
On December 19, 2020, the Council of Ministers announced raising the price of selling the dollar to banks and exchange companies to 1460 dinars instead of 1200 dinars to one dollar, with the aim of compensating for the decline in oil revenues caused by the deterioration of oil prices, to witness the impact of that, the Iraqi market, a significant increase in the local market This sparked a wave of intense resentment among the popular circles and some political blocs, as well as the objections of some interested in economic affairs.
The Central Bank of Iraq attributed the reasons for the devaluation of the dinar at the time to what it described as structural distortions in the Iraqi economy that impoverished public finances and restricted the reform capacity sought by the government and the Ministry of Finance.
The devaluation of the dinar caused a great shock to the Iraqi street, which was not expecting such a step, especially since it came at the height of the spread of the Corona pandemic, which caused the suspension of business, the disruption of studies, the closure of markets and the health curfew, in addition to the collapse in oil prices that Iraq relies on. Its sales to supplement the general budget by 95%.
Regarding these concerns, the government reassured the citizens and expressed its confidence in the dinar.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, ruled out a collapse of the local currency (the Iraqi dinar) and told Al Furat News: “There is no collapse of the local currency, and the Iraqi dinar is strong and covered by good foreign reserves.”
He pointed out that “the monetary policy deals with the dollar, and resorting to the system of two currencies (domestic and foreign in trade) because there are precautions in dealing with foreign currency and its stability, as well as the stability of transactions in it as well.”
Saleh’s opinion was reinforced by a government source and ruled out the collapse of the local currency of Iraq, as happened to the Turkish lira recently and the Iranian toman, due to “the difference in monetary policy from one country to another.”
The source added that “the collapse of the local currencies of a number of Arab and regional countries surrounding Iraq will have a significant impact on trade exchange operations with these countries.”
He acknowledged that restricting financial dealings by some stakeholders in hard currency will have a relative impact on the Iraqi economy and the Iraqi market, because Iraq’s economic policy depends on oil, whose value in global markets still ranges between 75 and 80 dollars per barrel.
Concerning the advantages of devaluing the currency, Counselor Mazhar Muhammad Salih confirms that the benefits achieved from devaluing the Iraqi currency are great and cannot be neglected, and that the talk about returning to the old exchange rate has become a thing of the past.
He adds in a press statement that changing the exchange rate gave strength to many of the country’s economic joints, which is consistent with the statements of the Central Bank, which confirmed that raising the exchange rate led to an increase in the competitiveness of the local product, as well as reducing the pressure of expenditures on the Ministry of Finance by 23%, which enabled The Ministry of Finance was able to overcome the crisis resulting from the drop in global oil prices during 2020 and the first months of 2021.
While the economic expert, Hammam Al-Shamaa, explained in a press statement that changing the exchange rate has positives for the government and greater negatives for the Iraqi people, indicating that the government benefited from the currency devaluation in strengthening its financial budget by providing 23% of the salaries of employees who receive salaries from the government, such as retirees. and daily wages.
On how, he explained that the salaries of Iraqi employees were spent in dinars, while the state’s oil imports were in dollars, and therefore, instead of the state reducing the salaries of state employees and retirees and the possibility of facing a popular reaction, it decided to reduce the value of the currency, which enabled it to avoid the reaction that would have occurred Although the result is the same in both cases.
The government announced an increase in the size of the cash reserve in the Central Bank, after changing the exchange rate, which led to an increase in the size of the reserve by an estimated 15 billion dollars to reach nearly 65 billion dollars.
Experts identified the damage to the Iraqis in 3 points, the first of which is the decline in the value of the Iraqi people’s revenues in the public and private sectors by 23%, in addition to the Iraqis’ loss of confidence in the government, which was reflected in the rise in consumer prices by a much greater rate than the change in the exchange rate.
In this context, the economist Ali Al-Fraiji said, “The Iraqi market depends very heavily on imported goods, especially from Turkey and Iran, and as a result, any economic collapse in the countries exporting to Iraq will affect one way or another because of the wrong state policy in dealing with crises. economic situation to which Iraq is exposed.
Baghdad – Mawazine News publishes, today, Tuesday, a number of decisions of the Cabinet session held today. And Al-Kazemi’s office stated in a statement, “Prime Minister Mustafa Al-Kazemi chaired, today, the forty-ninth regular session of the Council of Ministers, in which the developments of events in the country were discussed, topics on the agenda were discussed, and decisions and recommendations were issued regarding them.” The statement added, “Al-Kazemi reviewed, at the beginning of the session, the general situation in Iraq, and prominent security and political issues, as well as a number of service and economic files.” Al-Kazemi announced during the session, according to the statement, “the launch of the process of preparing the initial bonds for the lands that will be distributed to citizens within the Dari Residential Initiative, which the government previously announced as part of its government program to address the housing crisis and alleviate the burdens of citizens.” He stressed that “84,000 initial bonds will be granted to citizens who have applied for registration through the Dari Initiative website, and who have obtained the highest points,” noting that “the government has pledged to distribute lands and has fulfilled this promise.” Al-Kazemi directed all concerned parties to “find radical solutions to the problems of street vendors and (the owners of the stalls), which are carefully studied in a way that does not affect their livelihood.”
The statement pointed out that “the session witnessed a review of the epidemiological report, the measures taken to confront the Corona pandemic, and the developments of the work of the committee to strengthen government measures in the areas of prevention and health awareness control to limit the spread of the virus, and the preparations of the Ministry of Health to confront any possible wave of the pandemic, and to secure the required treatments and vaccines.” . And he continued, “After discussing the topics on the agenda, the Council of Ministers issued a number of decisions, as follows:
First / Approval of exempting farmers who have paid the rent allowances for agricultural lands owed by them for the years (2015, 2016, 2017, 2018), until the date of December 31, 2019, from the rent allowances for subsequent years in the amount they paid from previous years, as a reward for their commitment.
Second / 1- Approval of the Ministry of Electricity taking over the contract with a consortium of the Norwegian company (SCATEC) to implement the two solar energy projects in the holy governorate of Karbala (300 megawatts) and Alexandria (225 megawatts), according to what was stated in the letter of the National Investment Commission No. (51), dated March 15, 2021.
2- Purchasing the energy produced from the two sites mentioned in paragraph (1) above, at a tariff of $40.7 per megawatt and the BOOT method, and for an investment period of (25) years, receiving a card of no less than 75% of the design energy, according to the minutes of the meeting accompanying the book of the Ministry of Electricity No. (47356) of October 7, 2021.
Third / Approval of the recommendation of the Ministerial Council for Energy (150 for the year 2021), regarding the implementation of a plan to address bottlenecks next summer, as follows:
– Approval of the renewal of the work of the Council of Ministers Resolution (132 of 2020), (investors in the field of production finance the implementation of transmission and disposal lines for produced energy), provided that the Ministry of Electricity investigates the most accurate and most flexible means to control project implementation costs in a manner that ensures the protection of public money and achieves feasibility. economic and with a ceiling not exceeding (250,000,000) dollars, only two hundred and fifty million dollars, equivalent to (370,000,000) dinars, only three hundred and seventy billion dinars, in the event that the Ministry of Finance cannot provide the above amount at the beginning of 2022, and authorizes the Ministry of Electricity to start the procedures for attracting offers And suggestions from the date of issuance of this decision.
Fourth / The Ministry of Finance allocated a total amount of (9) billion dinars to the Ministry of Electricity, for three projects from the emergency reserve for the fiscal year / 2021, based on the provisions of Article (5) of the Federal General Budget Law for the year / 2021.
Fifth / Approval of the Ministry of Finance allocating an amount of (500,000,000) dinars, only five hundred million dinars, to the Ministry of Migration and Displacement from the emergency reserve, to cover and secure the needs of the camps in the region and Al-Jada’a Center for Psychological and Community Rehabilitation, according to what was stated in the Ministry of Migration and Displacement’s letter No. (1) 1/M.W/1236) dated November 9, 2021.
Sixth/ – The Ministry of Finance allocated an amount of 2 billion dinars to the Ministry of Health to cover the treatment of the wounded in the demonstrations.
The Ministry of Finance allocated an amount of 2 billion dinars to the Kurdistan Regional Government to meet the torrential rains from the emergency reserve for the fiscal year 2021.
Seventh / The Ministry of Finance allocated an amount of 300 million dinars to the Ministry of Agriculture from the emergency reserve, according to what was stated in the letter of the Ministry of Agriculture (2609) on December 21, 2021.
Eighth / Approval of the Ministry of Finance allocating an amount of (1,500,000) dinars, only one and a half billion dinars, to the Ministry of Water Resources / General Authority for the Operation of Irrigation and Drainage Projects / Operational Budget, from the emergency reserve for the fiscal year / 2021, based on the provisions of Article (5) of the Law of the Federal General Budget of the Republic of Iraq for the fiscal year/2021.
Ninth / Confirmation of the implementation of Cabinet Resolution No. (214 of 2020), and the role of the Border Ports Authority is limited to supervision and control, and bridge scales are managed by the General Customs Authority.
Tenth / Allocating an amount of (7.5) billion dinars, for fuel, and the humanitarian and health needs of the Palestinian Authority, in support of our Palestinian people, from the emergency reserve for the fiscal year / 2021, and paid through the Ministry of Foreign Affairs. Ended 29 / p. 87
Shafaq News/ The Kurdistan Democratic Party revealed, on Tuesday, the most prominent files that will be carried by the joint Kurdish delegation, which intends to visit Baghdad to discuss the formation of the next Iraqi government.
Representative of the Democratic Party Sabah Sobhi told Shafaq News Agency, “The Kurdish parties, according to the established political tracks, agreed to form a unified negotiating committee from the two main parties that will go to Baghdad next week to discuss with all political parties to form the new Iraqi government after the FederalCourt announced its final approval of the Results”.
He added, “The Kurdish committee or delegation will discuss the files that pertain to the Kurds in general and the supreme interest of the Kurdistan Region.”
Sobhi continued, “The most prominent files that the Kurdish delegation will discuss is Article (140) related to the disputed areas, the Federal Council and articles related to rights, freedoms and equal opportunities, also the issue of budget and salaries and the file of martyrs, in addition to the issue of resolving the Peshmerga forces. Some call them militias while They are border guards.”
He added that “these are the most important files or issues that will be discussed in Baghdad, along with how to form the government according to the data that emerged from the results.”
He explained that “the formation of the government according to the consensual path or the majority will not affect our relations or alliances. What matters to us is to achieve the general interest of the Kurds.”
Regarding the position of the Presidency of the Republic, Sobhi said, “So far, there are no discussions in this regard, and those discussions may focus after the approval of the Federal Court on the results in order to agree on the appropriate candidate for the position,” adding, “The candidate for the presidency will be according to the electoral merit, but within the criteria of partisan consensus.” .
Returning to the scenario of the negotiating delegation in the Kurdish talks in Baghdad, Sobhi stressed that “the talks will start with the Sadrist bloc, but so far it has not been determined whether the meeting will take place in Baghdad or Najaf, and then with the leaders of the coordination framework, followed by meetings and discussions with the Sunni forces.”
It is noteworthy that the Democratic Party won 31 seats, while the Kurdistan Alliance won 17 seats in the last legislative elections.
Baghdad / Obelisk: The Central Bank of Iraq announced, on Tuesday, December 21, 2021, the completion of the payment of compensation for the State of Kuwait.
The Central Bank said in a statement received by Al-Masala that the last remaining installment of Kuwait’s compensation amounting to 44 million dollars has been completed, and thus Iraq has completed the full payment of the compensation amounts approved by the United Nations Compensation Committee of the UN Security Council under Resolution No. 687 of 1991, A total of 52.4 billion US dollars for the State of Kuwait.
It is hoped that ending the payment of compensation, according to the statement, will contribute to removing Iraq from Chapter VII, as well as its impact on re-integrating the Iraqi banking system with the global banking system and benefiting from the financial abundance that will be achieved.
The UN Compensation Committee was formed in 1991, obligated Baghdad to pay $ 52.4 billion in compensation to individuals, companies, governmental organizations and others who incurred losses resulting directly from the invasion of Kuwait.
Iraq stopped making payments in 2014 during the war on ISIS, which took control of large parts of the country, but resumed payments in 2018.
Baghdad – Mawazine News The Security Media Cell announced, on Tuesday, the visit of a security delegation to Erbil to review the procedures and details of the withdrawal and transfer of coalition forces. And the cell stated in a statement it received / Mawazine News / a copy of it, that “at a high rate, the Iraqi Military Technical Committee continues its procedures and work to follow up the implementation of the Iraqi agreement with the international coalition forces to withdraw its combat forces and stay on its advisory missions, as the committee’s delegation arrived, which included Messrs.: Deputy Commander The joint operations, the head of the National Security Apparatus, a representative of the National Security Adviser, the Security Media Cell, the assistant chief of staff for operations, and a number of officers, today, Tuesday, to Erbil Governorate to review the procedures and details of the withdrawal and transfer of the coalition forces. She added, “This step came after the Iraqi Military Technical Committee completed all the procedures related to the withdrawal of the coalition forces during its visit on the 18th of next month, Anbar Governorate for the same purpose, and the follow-up to the start of receiving the mechanisms and technical devices, as well as emphasizing the remaining international coalition mission in Iraq, which Its mission has been defined to provide advice, assistance and empowerment to the Iraqi security forces during the current stage
{Economic: Al Furat News} A financial advisor to Prime Minister Mustafa Al-Kazemi ruled out a collapse of the local currency {the Iraqi dinar}.
Mazhar Muhammad Salih told {Euphrates News}: “There is no collapse of the local currency, and the Iraqi dinar is strong, and it is covered by good foreign reserves.” He pointed out that “the monetary policy deals with the dollar, and resorting to the system of two currencies (domestic and foreign in trade) because there are precautions in dealing with foreign currency and its stability, as well as the stability of transactions in it as well.” It is noteworthy that the local market and some wholesalers began to deal exclusively in US dollars without the local currency, for fear of a collapse in it, as happened in neighboring countries and the region such as Turkey, Iran and Lebanon.
Today, Monday, Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, set a condition for achieving an actual balance in the 2022 budget without a deficit.
Saleh said in an interview with the Iraqi News Agency, and followed by “Al-Iqtisad News”, that “the expectations of the World Bank, which it released in late October of last year, in which he explained his vision regarding the average oil prices in the world 2022, which he expected, would be about $74 per barrel as an average. Throughout the next year, it is also expected to drop to an annual average of $64 a barrel in 2023.
He added, “The estimated oil revenues at $50 in the draft law on the next year’s budget 2022, which was prepared inevitably for a precautionary deficit, may be less than the precautionary deficit shown in the 2021 budget, and assuming that the expenditure ceilings in the 2022 budget are similar to what they are in the 2021 budget, the budget The federal general for the year 2022 will achieve a state of actual balance (without any significant deficit),” noting that “this will be if the average price of a barrel of oil in 2022 exceeds, to be about 71-72 dollars per barrel, according to the reality of expected government spending and its ceilings.”
The Executive Director of the Iraq Stock Exchange, Taha Abdel Salam, announced, on Tuesday, that the Central Bank of Iraq issued the second issuance of government bonds, “construction bonds” worth 2 trillion dinars.
The Executive Director of the market said in a news article published on the social networking page “Facebook” and followed by “Al-Iqtisad News”, that the Central Bank has launched the second issue of government bonds, “construction bonds” with a value of 2 trillion dinars, after the success of marketing the first issue by the bank, which will be listed. and traded in the Iraq Stock Exchange.
He added that the new issue is offered for public subscription as of December 20, 2021 through the Iraqi banking system, with the same mechanism of the Central Bank of Iraq issued in the book No. 6/6/2916 on 10/24/2021 and the subscription ends on January 19, 2022.
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