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Governmental Follow-up Cell: March salaries are insured only so far
Economy News - Baghdad:
The Follow-up Cell revealed in the Prime Minister's Office on Friday that the government will be able to distribute the salaries of the current month of March, while it will resort to some solutions to ensure the provision of salaries next month, while it indicated that Iraq’s monthly income from oil is currently estimated at one billion dollars only (after the price of a barrel drops to 18 dollars), she explained that the salaries of employees amount to 3 billion and a half per month, which could prompt Iraq to print the currency as a last option, "as the state of the state will be affected starting next month ."
The cell leader Mustafa Jabbar Sanad said in a press interview that "the crisis of the Corona virus caused the disruption of the economy in general and the oil sector in particular, as the global demand for oil decreased by 10 million barrels per day, while it will decrease during the next month by 9 million barrels." "The drop in the world oil price by one dollar means the loss of Iraq's annual budget of one billion dollars ."
And that "the price of a barrel of Iraqi oil fell from 58 dollars in the month of February to 18 - 19 dollars in the current month. This has led to a loss of the budget about 40 billion dollars after it was previously estimated at 90 billion dollars ."
He continued, "The country imports at this price ($ 18), which amounts to two billion dollars per month, of which one billion dollars goes to licensing tour companies (at a rate of 12 billion during the year), so the state treasury remains only one billion dollars, while the salaries of employees amount to 3 and a half billion dollars ."
Sanad added, "Iraq receives its sold oil money after 40 days of selling, which means that the salaries of this month are insured from the amounts of oil sold last month before its prices drop in the markets, while the state will resort to other solutions to secure the salaries of the coming months, including selling bonds on banks or borrowing." From foreign or domestic banks . "
He pointed out that "other sectors, such as customs, taxes, etc., which were entering about 6 billion dollars during the year, were also stopped due to the spread of the Corona virus ."
The head of the cell lamented that "there is a current offer from the World Bank worth $ 3 billion, in which the latter stipulates that it should not be spent on the operating budget (salaries), explaining that among the solutions that the country’s government may go is to print the currency," noting that "that is not possible Without a cover of gold and hard currency, however, this option is on the table as a last resort, as things can go for a month or two . "
Sanad cited his talk about currency printing that "the United States decided today, through a decision by the Congress, to print the currency with a value of two trillion dollars, which is the first country in the world, but it did not adhere to the issue of currency printing, so how about other countries that depend on the US dollar (referring to Iraq )."
And he added, "The stability of the American economy reflects positively on the stability of the global economy and vice versa, whereas the US economy has experienced major collapses in the last 20 days as the most famous indicator in the world (Dow Jones) has fallen to levels that throughout history have only reached in the Great Depression that It happened in 1929, which then affected all countries of the world . "
He continued, "The American economy has returned to recovery following the request of the US President and the agreement of Republicans and Democrats in Congress to print 2 trillion dollars from the US federal fed as bonds of interest to the US government, after they found that their country's already indebted economy was 20 trillion dollars, 6 trillion dollars of which to China has become The test . "
He added that "the Congressional decision led to historic jumps in market indicators, which led to the revival of the European and Japanese market, as the oil market revived by 3 dollars, which returned to the end of the week as a natural state of oil ."
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