Bondlady’s Corner – Iraq Economic News and Points to Ponder Monday Afternoon 12-4-23


Iraq Economic News and Points to Ponder Monday Afternoon 12-4-23

Tlm724 Administrator Bondlady’s Corner

The President Of The Republic: There Is No Dollar Crisis In Iraq

President of the Republic Abdel Latif Gamal   Economy News – Baghdad  On Monday, President Abdel Latif Rashid denied the existence of a “dollar crisis” in the country.

Rashid stated in a television interview followed by “Al-Iqtisad News” that “Iraq’s situation now is good in terms of security, and this is greatly reflected in economic stability. Until a few years ago, we suffered from the repercussions of security instability on the economy, and we are ready to implement the government’s program that aims to To improve infrastructure in all fields, including energy, water, housing, roads, bridges, etc.

Regarding the country’s economic situation, and his recent visits to Azerbaijan and Armenia, the Iraqi president stressed “the need to attract investments from various friendly countries.”

He continued: “At the same time, our focus is on providing services to the Iraqi people, as the country suffers from an old state of neglect, and the government is taking seriously to improve the service situation in terms of education, health, agriculture and other fields. We encourage cooperation with investors, and starting energy, water and agricultural projects, not Especially since Iraq’s budget is now better than before.”

In response to what is being raised about the dollar crisis in Iraq, Rashid stressed that there is no dollar crisis, and that the issue is related to the change in the dollar exchange rate from time to time.

He added, “Until recently, Iraqi markets were open to any foreign currency, and this does not help the Iraqi currency. Therefore, we took some measures to strengthen the dinar’s strength and control the market.”

The Iraqi President stressed that his country’s economic situation is good, both on the general level and on the individual level, but at the same time he pointed out that there are problems related to unemployment and others: “We hope to improve the situation and encourage the private sector to contribute to providing job opportunities for university graduates.”

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Digital Dinar Instead Of Cash Dollar.” These Are The Most Prominent Gains Of Electronic Payment

 Economy |1-12-2023, |  Baghdad Today – Baghdad  Today, Friday (December 1, 2023), Advisor to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, explained the gains of adopting the electronic payments system in transactions inside Iraq.

Saleh said in a statement received by “Baghdad Today”,   “The cash payments system is linked to a high degree of certainty whenever payments are made by electronic or digital means, which provides an indicator of liquidity in the banking system and reduces the degree of uncertainty in banking liquidity.”

 He explained that “the payments system provides sufficient information about the flow of cash into the banking system, makes clear the amounts of paid and accumulated amounts, and indicates their actual balances at all times during the banking working day.

Conversely, in light of monetary systems that rely on direct cash payment, banking liquidity management policies surround themselves.” With additional hedges of idle liquidity in order to protect against liquidity risks. 

Saleh stated,  “This matter disrupts an aspect of banking and credit operations in particular,

so as electronic payments increase as a behavior in daily dealings, the management of the cash mass and its flow in the banking system will be subject to the rule of clarity in cash management and then directing bank credit towards profitable areas by expanding…

Credit activity provides efficient use of the cash supply, as well as a decrease in the rate of cash leakages outside banks,

which means that a structural change in the behavior of cash demand among individuals and at banks will tend towards a decline, due to dealing with electronic payment systems that are linked to bank accounts.” 

He stressed,  “The development of the payments environment and its transition from a direct cash environment or cash payment in payment and receipt operations to the use of electronic payment will, in all cases, reduce the risks of local cash payment in currencies other than the dinar and distance the national economy’s transactions from cash payment in foreign currency, because payment systems Digital does not allow transactions in the local economy in anything other than the dinar,

 that is, the national currency, and certainly the economy’s tendency in its transaction payments is to (the digital dinar) instead of (the cash dollar), whose transactions in internal settlements are legally rejected completely by virtue of the principle of monetary sovereignty of the Iraqi dinar.الدينار-الرقمي-بدلاً-من-الدولار-النقدي.-هذه-أبرز-مكاسب-الدفع-الإلكتروني.html

Dollar Prices Closed At More Than 158 Thousand Dinars In Baghdad 

Time: 12/04/2023 Read: 702 times  {Economic: Al-Furat News} The main stock exchange in Baghdad closed today, Monday, due to a rise in the selling prices of the dollar against the Iraqi dinar in the local market.

Selling prices in banking shops in local markets in Baghdad recorded 158,500 dinars for 100 dollars, while purchasing prices reached 156,500 dinars for 100 dollars.  LINK

The Iraqi Stock Exchange Closed Down By 4.76%

Market   Economy News – Baghdad   The Iraqi Stock Exchange closed today, Monday, down by 4.76%.

The session traded shares of 24 companies, with the number of shares traded reaching more than 1.2 billion shares, with a value of more than 1.4 billion dinars.

Al Mansour Hotel shares rose by 2.4%, followed by Asia Cell by 1.6%, and Commercial Bank by 1.3%.

Sumer Bank shares fell by 12.5%, followed by Bank of Baghdad by 12.03%.

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Oil Prices Rise As Tensions Escalate In Gaza And The Red Sea

Energy   Economy News-Follow-up   Oil futures rose slightly in early trading on Monday, as geopolitical tension in the Middle East resurfaced, raising concerns about supplies from the region, but uncertainty over voluntary production cuts by OPEC+ and growth in global fuel demand cast a shadow over the outlook. For the sector.

By 0018 GMT, Brent crude futures rose 28 cents, or 0.4 percent, to $79.16 per barrel, while US West Texas Intermediate crude futures reached $74.36 per barrel, up 29 cents, or 0.4 percent. .

“The re-emergence of geopolitical tension at the weekend gave a boost to lower crude oil prices upon reopening this morning,” said Tony Sycamore, market analyst at IG Markets.

He added, “It seems that escalating tension is surfacing again in the Middle East as a result of the resumption of Israeli attacks in Gaza.”

The US military said on Sunday that fighting had resumed in Gaza and that three commercial ships were attacked in international waters in the southern Red Sea, while the Yemeni Houthi group claimed responsibility for drone and missile attacks on two Israeli ships in the region.

Tina Teng, an analyst at CMC Markets, said that the resumption of the war between Israel and Hamas fueled the upward momentum in oil prices.

“However, oil prices may continue to be under pressure at the present time due to the disappointing pace of economic recovery in China and increased US production,” she added.

Energy services company Baker Hughes PKRO said in its closely watched report on Friday that US oil rigs increased by five to 505 this week, the highest since September.

Oil prices are recovering from a drop of more than 2 percent last week due to investor doubts about the extent of supply cuts by the Organization of the Petroleum Exporting Countries and its allies including Russia, which is called the OPEC+ alliance, and concerns about the slowdown in global manufacturing activity.

“Prices are likely to remain volatile and perhaps directionless until the market sees clear data points related to voluntary production cuts,” RBC Capital analysts said in a note, adding that such data would not be available for another two months.

Regarding Russian oil, Western countries have intensified their efforts to implement the maximum price per barrel of $60 on seaborne shipments of Russian oil, which they imposed to punish Moscow because of its war in Ukraine.

On Friday, Washington imposed additional sanctions on three entities and three oil tankers.

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Provoking Points To Ponder on Character:

Character building begins in our infancy and continues until  death —Mrs Franklin D Roosevelt

A tree will not only lie as it falls, but it will fall as it leans — J J Gurney

Let us not say, Every man  is the architect of his own fortune; but let us say, every man is the architect of his own character — G D Boardman

Talents are best nurtured in solitude; character is best formed in the stormy billows of the world — Johann Wolfgang von  Goethe

It is not what a man gets, but what a man is, that he should think of – He should think first of his character, and then of his condition: for if we have the former, he need have no fears about the latter – Character will draw condition after it — Circumstances obey principles — H W Beecher

It is not money, nor is it mere intellect, that governs the world; it is moral character, and intellect associated with moral excellence — T D Woolsey

To be worth anything, character must be capable of standing firm upon its feet in the world of daily work, temptation, and trial; and able to bear the wear and tear of actual life — Cloistered virtues do not count for much — Samuel Smiles