Bondlady’s Corner – Iraq Economic News and Points to Ponder Thursday Afternoon 4-4-24


Iraq Economic News and Points to Ponder Thursday Afternoon 4-4-24

Tlm724 Administrator Bondlady’s Corner

Finance Announces The Offering Of A New Issue Of Government Bonds For Public Subscription

Thursday 04, April 2024  Economical Number of readings: 251  Baghdad / NINA / The Ministry of Finance announced, today, Thursday, the offering of a new issue of government bonds for public subscription.

A statement from the ministry stated, “The Public Debt Department in the Ministry of Finance, in cooperation with the Central Bank of Iraq, announced the offering of a new issue of government bonds for public subscription under the name Enjaz Bonds,” indicating that “Type of bonds: government bonds denominated in the Iraqi dinar.”

The statement explained, “The categories offered are:

– A bond in the category of (500,000) dinars, for a period of two years, with an annual interest of 6.5%, paid every six months.

– A bond in the category of (1) million dinars, for a period of 4 years, with an annual interest of 8.5%, paid every six months.”

He continued, “Subscription date: period from April 15 to May 15, 2024,” explaining that “the method of subscription is that purchase applications are submitted to one of the bank branches approved by the Central Bank of Iraq, accompanied by the original identification documents, and after that the bank sends the application with the purchase amount.”

To the Central Bank via the RTGS electronic payment system on the same day of purchase, and in return, the buyer will receive a receipt for the purchase amount he paid until the bond is prepared, and after a period not exceeding a week, the buyer brings the receipt to the same bank to receive the bond.”

According to the statement, the ministry called on “all citizens, investors and companies to participate in subscribing to this issuance of government bonds,” noting that “the bonds offered are tradable on the Iraqi Stock Exchange.”

She pointed out that “the advantages of subscribing to government bonds are:

Guaranteed return: The government is committed to paying the annual interest and the value of the bond when it matures.

Safe investment: Government bonds are considered one of the safest investments, as investors enjoy the government’s guarantee.

Contribution to the development of the national economy: The subscription funds contribute to Financing economic development projects and achieving financial stability in the country.”/End 2

External Remittances At The Central Bank Of Iraq Auction Increased By 98%

Economy  Thursday, April 4, 2024 2:52 PM  Baghdad/National News Center External remittances at the Central Bank of Iraq auction increased by 98% today, Thursday, at the expense of cash sales, to reach $246 million.

Today, during its auction for buying and selling the US dollar, the bank sold 253 million, 74 thousand and 268 dollars, covering it at a base exchange rate of 1,305 dinars per dollar for documentary credits and international settlements for electronic cards, at a price of 1,310 dinars per dollar for external transfers, and at a price of 1,310 dinars per dollar in cash.

Most of the bank’s dollar sales went to strengthening balances abroad in the form of transfers and credits, which amounted to 246 million 964 thousand and 268 dollars, an increase of 98% over cash sales amounting to 6 million and 710 thousand dollars.

He pointed out that the number of banks that purchased cash dollars reached four banks, while the number of banks that responded to requests to enhance balances abroad reached 17 banks, and the total number of exchange and brokerage companies participating in the auction was 40 companies.

Oil Prices Rise With Indicators Of Economic Growth In America

Energy   Economy News _ Baghdad  Oil prices rose in early Asian trading, Thursday, amid fears of supply shortages as major producers continue production cuts, along with indicators of economic growth in the United States, the world’s largest oil consumer.

Brent crude futures for June rose 15 cents, or 0.2 percent, to $89.51 per barrel at settlement by 00:37 GMT.

US West Texas Intermediate crude futures for May also increased 15 cents, or 0.2 percent, to $85.59 per barrel.

The June Brent contract and the May West Texas Intermediate crude contract recorded gains over the past four days and closed on Wednesday at the highest level since the end of October.

Oil prices rose after Ukrainian attacks on Russian refineries led to a reduction in fuel supplies, and amid fears that the war between Israel and the Palestinian Islamic Resistance Movement (Hamas) in Gaza may extend to include Iran, which could lead to disruption of supplies in the Middle East region.

Senior ministers of the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, at a meeting held on Wednesday kept oil production policy unchanged and urged some countries to strengthen compliance with production cuts.

The meeting stated that some members will compensate for the increase in supplies in the first quarter.

Views 61  04/04/2024 –

The Securities Commission Calls On The Central Bank To Launch Lending Initiatives

Economy News – Baghdad  Chairman of the Securities Commission, Faisal Al-Haims, called on the Central Bank to launch development initiatives to support the real estate, industry and agricultural sectors.

Al-Haims said in a television interview followed by “Al-Iqtisad News” that he “chaired a committee formed by the Prime Minister, to provide solutions to banks that are prohibited from using the dollar in their daily transactions,” noting that the committee had submitted recommendations to the Ministerial Economic Council that included launching development lending initiatives by The Central Bank, and activating the national exchange for banks that are prohibited from using the dollar.”

He added, “The recommendations also included the use of gold and other commodities in settling financial transactions between banks prohibited from using the dollar and foreign banks.”

Views 84  04/04/2024 –

Sudanese Advisor: Iraq Is Within The Safe Range Countries In Terms Of Paying Foreign Debts

Economy | 04:32 – 04/04/2024  Mawazine News – Baghdad,  the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, revealed today, Thursday, the reasons for reducing annual allocations to pay off foreign debts, while indicating that Iraq is among the countries in the safe range in terms of debt repayment.

Saleh said, “According to international standards in calculating the ability of the national economy to bear the burden of external debt, Iraq is among the group of countries in the safe range in terms of the global standard for the ratio of the external debt stock,” indicating that “the gross domestic product, according to estimates, does not exceed 20 percent.” While the global measure of the debt-to-GDP ratio allows up to 60 percent.

He explained, “Given Iraq’s regularity in repaying its external debts due annually, of which only approximately 20 billion dollars remain, the annual allocations to pay external debts through the federal general budget allocations have begun to show a clear decline and decrease in the amount of external debts due, and this has been reflected.”

 This is in the 2024 budget tables regarding allocations for external debt payments, compared to the 2023 budget tables, with a difference of decrease that may exceed a billion dollars.

He added, “This matter is reflected in Iraq’s high creditworthiness in repaying its debts to external creditors and its commitment to repayment since the Paris Club Agreement in 2004 until the present. These are annual financial allocation mechanisms whose installments and interest are paid on a regular basis through the annual general budget, and they are decreasing. This means that the external debt gap is heading towards shrinking and then almost disappearing.”

He noted that “the Paris Club Agreement in 2004 dropped more than 100 billion dollars of Iraq’s pre-1990 debt after Iraq obtained a discount on its debts at that time, which was 80 percent and more, and only a little of the remnants of those debts remained after it was removed.

” The remainder of it has been scheduled and is paid annually according to a precise and regular accounting mechanism on the part of Public Finance and the Central Bank of Iraq, and the continuous decrease in its allocations is demonstrated by the amount of the decrease in the annual allocation of external receivables from the debts that must be paid and their waiver annually.”

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Provoking Points To Ponder On Failures and Mistakes

Life, like war, is a series of mistakes, and he is best who wins the most splendid victories by the retrieval of mistakes.- Frederick W. Robertson

A man who has committed a mistake and doesn’t correct it is committing another mistake.

– Confucius

The great virtue of man lies in his ability to correct his mistakes and to continually make a new man of himself.- Wang Yang-Ming

It is only error in judgement to make a mistake, but it shows infirmity of character to adhere to it when discovered.- Christian Bovee

It is human to err, but it is devilish to remain willfully in error.- Saint Augustine

Intelligence is not to make no mistakes, but quickly to see how to make them good.- Bertolt Brecht