By John Lee.

The Central Bank of Iraq (CBI) has reported that 32 banks and 15 remittance companies took part in its currency auction on Monday.

A total of $133,530,024 sold at a price of 1182 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

Statement issued by the Central Bank of Iraq

Commenting to issued opinions about the work of selling foreign currency window of the Iraqi Central Bank wishes to state that "the sale of currency window is the way to ensure the stability of the dinar exchange rate over the meeting of the Iraqi economy requirements by providing foreign currency to cover imports of the private sector goods and services, in addition to the needs of citizens for the purposes of travel, medical treatment, study outside Iraq, despite the absence of any allocations in the budget since 2003 and so far for this purpose.

However, this bank has worked to develop its procedures in this regard by encouraging banks to adopt the mechanism of opening letters of credit for the purposes of import instead style remittances, reaching sales ratio manner credits to more than 70% of foreign currency sales, as well as the Central Bank has set a key benchmark for the implementation of dollar selling operations to banks include the extent of its commitment to the rules of the fight against money laundering and terrorist financing,

as well as the preparation and application of standards for the electronic system for selling window and purchase of foreign currency (remittance), and a greater role for the government to sell the dollar and buy, develop and check the sources of funds used for the purposes of buying dollars to banks from the sale of foreign
currency window.

Government: 103 trillion dinars 7102 budget

8/29/2016 0:00

BAGHDAD Shokran Fatlawi
discuss money and economists ways to search for new resources to supplement the general budget, expressing concern about rising deficits as a result of the deterioration of oil prices and its impact on the Iraqi economy, by addressing the negatives that REO.

Participants gather at the seminar organized by the progress of the Policy Institute development and attended the «morning» the importance of studying the reasons behind not to increase non – oil revenues , and develop solutions to them, in addition to knowledge of the plug , which relies on domestic borrowing taking into account the benefit of farmland and reconsider the value of the dollar mechanisms let alone establish the necessary controls that limit drain economic resources
of the country.

read the budget Law , president of the institute d. Mehdi al – Hafez initiated a symposium titled «lights on the oil situation and the potential challenges» diagnosis of negative indicators caused by falling oil prices, stressing at the same time the need to diversify the financial resources based on taxes
, customs duties and levying fees water and electricity and increase taxes online and mobile phones.

He also noted Hafiz in his speech to the need to read the General budget Law in accordance with the visions that came in, in terms of the diversification of resources and improve the link by improving the relationship with the international Monetary Foreign funders of the state fund.

He praised Hafiz on the issue of lowering estimates for the price of a barrel in the budget and calculated the amount of $ 35 a barrel to avoid problems caused by low oil prices in the future note that prices are currently ranging between 40-45 dollars.

increase the volume of production and financial a dvisor to Prime Minister Dr. The appearance of Mohammed Saleh , said: required to increase oil production volume by 400,000 barrels per day from 2016 production and to ensure that part of the funding equation difficult and roof of the proposed budget for the year 2017 amounting to 103 trillion Iraqi dinars by deficit jumped to 34 trillion dinars of 24 trillion dinars , what was it .

Salih noted that oil revenues with the payment of licensing companies with what is left is not enough to meet the employees ‘ salaries so the government resorted to plug of borrowing , which led to high domestic debt to 45 trillion dinars is expected to reach the end of this year to 51 trillion dinars.

He that what has been paid by the oil companies to service contracts totaled $ 43 billion since 2011 to 2016 with revenues of $ 200 billion in order to maintain production volumes which represents suffocation can either be imported from the local need for oil derivatives with high costs ,

or that are increasing the volume of production , explaining , said total revenue for 2017 will amount to 70 trillion dinars of oil revenues 58 trillion dinars and other income 11 trillion and the price per barrel will be $ 35 and the amount of current expenditures 76 percent and investment 24 percent and the proportion of the deficit 32 percent and the percentage of coverage of 66 percent internal sources.

glut the oil market , for his part , oil expert Fouad Qassem ruled Alamerastaadh oil prices recover any return prices to $ 80 a barrel until the year 2020 due to a glut in the oil market is estimated at 3 million barrels per day , pointing out that prices will fall during the winter season and rise slightly in the summer by the increase and decrease in satiety oil and speculation.

He noted the Prince to the existence offactors that will keep prices low , including allowing Iran to increase its output, after the lifting of the embargo, as well as the possible return of Libya to export accompanying unwillingness of Saudi Arabia to cut production levels , let alone increase oil production rates of rock.

eliminate the glut promised adoption price of $ 35 a barrel in the budget of 2017 the good price that the prices range from $ 40-45, calling at the same time , the new oil minister to the need to campaign ties aimed at persuading oil – producing countries to cut production by 7 percent to eliminate the glut of existing which would raise prices to around $ 80 a barrel during the short period of time.

The government finished the budget discussion

8/28/2016 0:00

Parliament agreed with the commitment Ptoukitat approval
BAGHDAD – Alaa al – Tai – Shaima Rashid
Parliamentary Finance Committee predicted that up next year’s budget in 2017 to the House of Representatives next month, which was also confirmed by the financial advisor to the Prime Minister, the appearance of Mohammed Saleh, declaring

«the completion of discussions of the law in the Council of Ministers» and that he will be sent according to the agreed timings to parliament. Completion of «discuss aspects of the budget» accompanied by disclosure of the main objects of expenditure to be financed by the budget over the next year,

as it will be «the investment budget in the law 24 percent of the total spending as the aspects of government spending, according to the law, will focus on a number of key sectors over the next year, is the oil and electricity, as well as «water, health and education sectors».

He said Saleh «morning»: the «cabinet resolution of the discussions on the federal budget for 2017, which is in the way of assignment to the House of Representatives for discussion and approval in accordance with constitutional timings» adding

«that the most important contents of the operating budget is not to prejudice the salaries of employees and retirees and be considered first priority was underlined by the Prime Minister several times as well as maintaining some appointments in the health, education and jobs that belong to the security of Iraq’s sovereignty and security sectors ».

Financial Adviser pointed out that the call to increase oil production, according to the erms of the budget, means increased need for domestic consumption, and the need for refining, as well as the needs of power stations », pointing out that the production of the domestic petroleum of 200,000 barrels,

and that the actual need of 650,000 barrels , which requires offset the shortfall, either through investment or import of oil derivatives ,which in turn will be a burden on the balance of payments ».

and Saleh stressed on the need to« turn Iraq energies available both in old fields or new fields «undiscovered and undeveloped« or green fields ».

According to the financial advisor, that« the Federal budget Law for 2017 , similar to the givens of the current year budget in 2016 is difficult to predict the changes, where oil prices remain unstable and volatile and it was prepared to adopt a price of $ 35 a barrel, instead of $ 45. »

Saleh said that he «considering because the same spending ceiling in both Almoisntin (2016 and 2017) , it means that the deficit will be the « largest »is that the deficit financing resources would be« internal sources »They domestic borrowing , which will be 60 percent of the borrowing in addition to borrowing from« external sources

«led by a loan of the international Monetary Fund and the World Bank, the backing and development as well as the postponement of many of the payments due until after the expiration of the agreement with the IMF, ie until after 2019 , including compensation for the Kuwait and Services Paris Club debt being negotiated.»

Furthermore, the decision of the parliamentary finance committee, Ahmed al – Haj Rashid, said the 2017 budget will come to parliament , according to Altokiet time declared the beginning of October.

Rashid said «morning»: that there are three types of oil prices , which were built according to which the federal budget for next year, the first of the price of aconservatory and the price of my optimism and the price of pessimism, and that what has been written in the budget next year , we can say that he is very realistic price.

he pointed to an increase in non – oil revenues in the budget next year, indicating that these kinds of revenue rose, and most ministries were able to increase the financial effect involves , noting that the salaries of staff cost budget up to 50 trillion dinars government is seeking to increase this number yet there is no shortage of salaries.

turn, said a member of the Finance Committee, Hussam punitive, said his committee supports the approximate price of a barrel of oil in the budget next year, which is the nearest price to reality because of the volatility experienced by the oil markets worldwide, calling on the government to pay attention to the subject of expenses and revenues, noting that the 2017 budget may be up to parliament the end of September.

he said punitive »Sabah» that revenue according to the price «$ 35 for a barrel of oil» will not exceed 50 trillion dinars in the year.

He continued: the government should rationalize the operational and investment expenses so you can control the deficit up to 20 trillion dinars, but if I stayed the need for a higher level of spending than the 100 trillion dinars, the deficit of 35 size rises to 40 trillion dinars, which is bad, and the impact on the Iraqi economy.

among the punitive that employees ‘ salaries is a red line it is possible that the process of cutting 3 percent for the crowd and displaced persons continues, and may also reconsider the tax on the higher grades with a new system increases the state revenue, stressing the need to reducing the three presidencies and its affiliates employees either through a review of their salaries or transfer the excess to other ministries.