Iraq is preparing to reap many profits from the rise in oil prices, which have been trading above the $100 per barrel barrier since the beginning of this year.
Iraq expects that there will be no budget deficit, supported by the rise in crude prices, with financial savings that will be directed to a number of vital sectors in the country, as well as an increase in foreign exchange reserves.
In this context, Finance Minister Ali Allawi confirmed, today, Wednesday, May 25, 2022, the increase in the monetary reserves of the Central Bank to 90 billion dollars by the end of this year.
Foreign Exchange Reserves
Allawi said: “The devaluation of the Iraqi dinar led to the preservation of foreign currency reserves with the Central Bank of Iraq, after the critical low levels that reached in late 2020”.
He added that “the recovery in oil prices and prudent financial management helped the reserves to become 70 billion dollars by April,” according to the Iraqi News Agency.
Oil prices recorded record levels this year, as they rose to the highest level in 10 years, supported by the increase in political tensions in the wake of the Russian invasion of Ukraine.
Iraqi Oil Revenues
The Iraqi Finance Minister indicated that the continued recovery of oil prices is expected to increase reserves to more than $90 billion by the end of 2022, a record level for Iraq.
He pointed out that the depreciation of the Iraqi dinar against the US dollar in December 2020 contributed to the decrease in demand for the US currency, while the current demand for the dollar is higher than the decreases seen in the year 2020, but it is much lower than the period before the year 2020. .
He explained that the continued sales of the Ministry of Finance in dollars reflects the increase in oil revenues, and the increase in the government’s provision of goods and services to citizens.
He stressed that the increase in dollar sales against the decrease in demand for the US currency will lead to an increase in foreign currency reserves with the Central Bank.
Iraqi Oil Revenues In 2022
On the other hand, the Ministry of Oil announced, today, Wednesday, the final outcome of Iraqi oil revenues during last April, achieving sales that exceeded the 10 billion dollar barrier.
The final statistics issued by the Iraqi Oil Marketing Company “SOMO”, and viewed by the Specialized Energy Platform, revealed that the amount of crude oil exports amounted to 101 million and 390 thousand and 662 barrels, with revenues of 10 billion and 609 million and 252 thousand dollars.
Iraq succeeded in achieving oil revenues of about 38.58 billion dollars during the period from January to the end of last April, compared to 21.09 billion dollars during the same period last year 2021.
Revenues from Iraqi oil exports jumped during the first four months of this year by 82.9%, supported by high oil prices.