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Iraq Economic News and Points to Ponder Tuesday Afternoon 12-19-23

Tlm724 Administrator Bondlady’s Corner

Oil Prices Continue To Rise Amid Fears Of Supply Disruption

Economy |  12/19/2023   Baghdad – Mawazine News   Oil prices continue to rise today, with increasing concerns about supply disruptions following the escalation of geopolitical tensions in the Middle East, which affected the movement of container shipping through the Red Sea.

By 09:05 Moscow time, US crude futures rose by 0.04% to $72.50 per barrel, while global Brent crude futures rose 0.04% to $72.50 per barrel. By 0.10% to $78.03 per barrel.  Yesterday upon settlement, US crude contracts rose by 1.45% to $74.61 per barrel, while Brent contracts rose By 1.85% to $77.95 per barrel.

Earlier, Evergreen announced Taiwan Shipping Corporation has decided to temporarily stop accepting Israeli goods with immediate effect, and has instructed ships to suspend navigation through the Red Sea until further notice.

Evergreen’s move comes after the announcement of the largest maritime shipping company in the world, MSC. Changing the routes of its ships to avoid passing through the Red Sea due to the increase in attacks there.

Other companies had taken the same step after the attacks launched by the Ansar Allah Houthi movement, which said it was targeting ships heading to Israel, in support of the Palestinian people in Gaza.

The Price Of The Dollar Exceeds 155 Thousand Dinars With The Closure

Time: 12/19/2023  Read: 1,339 times  {Economic: Al-Furat News} The main stock exchange in Baghdad closed today, Tuesday, due to the rise in the price of the dollar against the Iraqi dinar.

Selling prices in banking shops in local markets in Baghdad recorded 155,500 dinars for 100 dollars, while purchasing prices reached 153,500 dinars for 100 dollars.

The selling price this morning was 155,000 Iraqi dinars, while the purchase price was 153,000 dinars per 100 dollars.   LINK

IMF Staff Concludes Staff Visit With Iraq

December 19, 2023   End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

Economic activity is recovering, although oil production cuts are weighing on overall growth, and at the same time inflation has declined.

The large fiscal expansion in the three-year budget law poses significant risks to fiscal and external sustainability over the medium term.

Fiscal prudence and structural reforms are critical to safeguard macroeconomic stability, ensure sustainability, and achieve durable and more inclusive growth.

Washington, DC: A staff team of the International Monetary Fund (IMF) led by Jean-Guillaume Poulain met with the Iraqi authorities in Amman, Jordan during Dec 12-17 to discuss recent economic developments and outlook as well as policy plans.

At the end of the mission, Mr. Poulain issued the following statement:

“Against the background of a large fiscal expansion, non-oil GDP is expected to grow by 5 percent in 2023. Continued budget execution should help sustain strong non-oil growth in 2024. However, lower oil production, following the closure of the Iraq-Turkey pipeline and OPEC+ production cuts, will reduce overall GDP growth in 2023 and 2024.

Inflation has declined from its January peak and is projected to stabilize in the coming months—helped by the Central Bank of Iraq’s (CBI) tighter monetary policy, passthrough from the exchange rate revaluation, lower international food prices, and normalization of trade finance as compliance to the new anti-money laundering/combating the financing of terrorism (AML/CFT) [GM1] framework improved.

“The three-year budget approved in June 2023 marked a shift in Iraq’s budgeting practice, envisaged to improve fiscal planning and continue important development projects over the medium term. Despite a late start of budget implementation, the fiscal balance is expected to shift from a large surplus in 2022 to a deficit in 2023. Staff projects that the deficit would widen further in 2024 reflecting the full year impact of recent measures. The large fiscal expansion, including a substantial increase in public hiring and pensions creates permanent spending that will put pressure on public finances over the medium term.

“Ensuring fiscal sustainability, in context of uncertain outlook for oil prices, requires gradually tightening the fiscal policy stance while safeguarding critical infrastructure and social spending needs. This would require mobilizing additional non-oil revenues, containing the large government wage bill, and reforming the pension system. These measures should be supported by moving toward a more targeted social safety net that better protects the vulnerable.

“The mission welcomed the government’s plans to strengthen public financial management including steps towards the establishment of the Treasury Single Account. In this context, the mission reiterated the importance of adhering to the framework for managing government guarantees.

“The CBI has appropriately tightened its monetary policy, including by increasing its policy rate and reserve requirement. The mission welcomed the progress in strengthening the domestic liquidity management framework and encouraged continued efforts to mop up excess liquidity and develop an interbank market to strengthen monetary policy transmission.

“Structural reforms to spur private sector led economic diversification and job creation remains pivotal for sustainable and inclusive growth. Priorities include creating a level playing field for the private sector through banking and electricity sector reforms, reducing distortions in the labor market, and continuing efforts to enhance governance and reduce corruption.

“The IMF staff team stands ready to support the authorities in their reform efforts and would like to thank them for candid and productive discussions during this mission.”

The Ambassador Congratulates The Iraqis On The Local Elections: We Look Forward To Working With The New Leaders

Political |  12/19/2023  Mawazine News – Baghdad  US Ambassador Alina Romanowski confirmed today, Tuesday, that the provincial council elections confirmed the Iraqis’ commitment to democracy.

Romanowski said in a tweet followed by Mawazine News, “We congratulate the Iraqi people and the Iraqi government for holding a safe and peaceful electoral process.”

She added, “Free and fair elections are essential for a democratic society to determine its future, and this week’s provincial council elections highlight Iraqis’ commitment to democracy, and we look forward to working with the newly elected local leaders; To strengthen the comprehensive US-Iraqi partnership throughout the country.

Japan “Largest” Creditors… The World Bank: $22 Billion In Iraq’s Foreign Debt

Economy     Iraq     breaking     External debt  2023-12-17 Shafaq News/ Iraq’s total external debt reached 22.6 billion dollars by the end of 2022, according to World Bank data.

The bank stated in data published recently that Japan tops the list of Iraq’s largest creditors with a share of 27%, followed by other countries with 19%.

The International Bank for Reconstruction and Development came in third place with 18% of the total debt, in fourth place was other entities with 21%, and in fifth place came America with 7%.

International bond holders ranked sixth with 6%, France ranked seventh with 5%, and the International Development Association ranked last with 1%.اقتصـاد/اليابان-كبر-الدا-نين-البنك-الدولي-22-مليار-دولار-ديون-العراق-الخارجية0

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Provoking Points To Ponder on Money

When it is a question of money, everybody is of the same religion.  – Voltaire

Money is like muck – not good unless it be spread.  – Francis Bacon

They make money the old-fashioned way. They inherit it.  – Brian Morgan

If you like easygoing, monogamous men, stay away from billionaires.  – Rita Rudner

How to double your money: Fold it over once and put it back in your pocket.  – Jim Dodds

When asked what he would do if he found a million dollars: “I would try to find the person that lost it, and if he was poor – I’d give it back.”  – Yogi Berra

Money doesn’t always bring happiness. People with $10 million are no happier than people with $9 million.  – Hobart Brown

Right now I have enough money to last me the rest of my life – unless I buy something. – Jackie Mason

The rich aren’t like us, they pay less taxes.  – Peter de Vries

A rich man is nothing but a poor man with money.  – W. C. Fields

He says he’s not broke, but he is trying to sell his kidney and corneas.  – Wendy Morgan

There’s another advantage in being poor. The doctor will cure you faster.  – Jacob Braude

Famous Quotes and Authors, Famous Quotations for all Occasions