A Government Advisor Explains The Reasons For The Current Fluctuations In The Dollar Exchange Rate.
Time: 2025/07/23 15:13:44 Reading: 780 times {Economic: Al Furat News} The Prime Minister’s Financial Advisor, Mazhar Mohammed Saleh, explained that global financial markets have witnessed significant fluctuations in the US dollar exchange rate in recent months, due to intertwined factors ranging from escalating trade wars, market skepticism about the independence of the Federal Reserve, and fluctuations in US monetary policy. He indicated that these dynamics represent an additional challenge for emerging market economies.
Saleh told Al Furat News Agency that “the escalation in the tariff war between the United States and China, Europe and Canada has led to sharp fluctuations in financial markets and negatively impacted trade and financial flows.”
He pointed out that “this has affected the value of the dollar, coinciding with growing fears of a widening fiscal deficit and mounting federal debt, which has prompted some investors to sell the dollar and get rid of it as a safe haven.”
He added, “Doubts surrounding the Federal Reserve’s independence and its interaction with the federal budget, in light of the escalating tensions between the White House and the Fed, and the US administration’s desire to cut interest rates, have contributed to undermining confidence in monetary policy.”
Saleh continued, “The volatility in the safe haven market has contributed to a decline in confidence in the dollar as a reliable hedging instrument, while investors have shifted toward gold, cryptocurrencies, or strong Asian assets.” He noted that “all of these factors have led to a decline in the value of the US dollar against various international currencies.”
He explained that “the US Dollar Index (DXY), which reflects the dollar’s price against a basket of global currencies, has declined by approximately 10.18% since the beginning of 2025.” LINK
Revealing The Cause Of The Economic Recession In Iraq And The Dollar’s Connection To It
Time: 2025/07/23 20:29:01 Reading: 90 times {Economic: Al Furat News} Economic researcher Ahmed Abdel Rabbo revealed that the decline in the dollar exchange rate in local markets, while an indicator of economic recovery and the Iraqi dinar, comes amid an economic recession primarily due to the failure to pass a budget and the decline in oil prices.
In a statement to {Euphrates News}, Abdul Rabbo warned that: “The current recession is mainly caused by the failure to approve the budget and the decline in oil prices, which could significantly increase the financial deficit,” warning that “the financial deficit could rise to 85 trillion Iraqi dinars according to current indicators.”
Abdul Rabbo pointed out that “there are major efforts by monetary policy that are not limited to the dollar exchange rate alone, but also include supporting borrowing and stimulating the market, including the “Baghdad Pulse” initiative and others, all of which aim to support the civilized image of the capital and the economy.” He explained that “those who control the price of oil are external elements subject to wars and demand, and therefore price fluctuations negatively impact Iraq.”
The economic researcher stressed that “maximizing non-oil revenues is something that must be achieved,” expressing his “regret for the lack of a real will to support the agricultural and industrial sectors in the country.” LINK
The Ministry Of Commerce Announces Approval To Establish The Global Gold City In Baghdad.
Money and Business Economy News – Baghdad The Ministry of Trade announced on Wednesday that the Ministerial Council for the Economy has approved the ministry’s proposal to establish a global gold city in Baghdad. The ministry described the approval of the proposal as a “strategic step aimed at localizing the gold and jewelry industry within Iraq and boosting local production.”
In a statement today, the ministry quoted its Minister, Athir Dawood Al Ghurairi, as saying that the project represents a qualitative leap in the development of national industries. He noted that the city will include an integrated system that includes specialized industrial units, advanced training centers for goldsmithing according to international standards, as well as advanced markets and an exchange for gold and jewelry.
For his part, Director General of the Department of Foreign Economic Relations, Riyadh Fakher Al-Hashemi, explained that the project aims to support the private sector and expand its contribution to the national economy. He noted that the city will be located within the integrated economic city in Baghdad, contributing to transforming the capital into a regional center for the gold industry and trade.
He added that the ministry has begun coordinating with the National Investment Commission to complete the requirements for allocating land and issuing investment licenses in preparation for the project’s implementation. https://economy-news.net/content.php?id=57786
The Ministry Of Commerce Intends To Establish An Industrial City Specializing In Gold To Support The Iraqi Economy.
Economy | 06:00 – 07/23/2025 Mawazine News – Baghdad – The Ministry of Trade confirmed, on Wednesday, its interest in establishing an industrial city specialized in gold to support the Iraqi economy.
Ministry spokesman Mohammed Hanoun told Mawazine News, “Based on the Iraqi government’s directives calling for diversifying the national economy and supporting promising industrial sectors, the Ministry of Trade affirms its keen interest in establishing an industrial city specialized in gold and jewelry to serve as a national platform for organizing and developing this vital industry.”
He added, “The gold industry in Iraq is one of the oldest professions linked to the cultural heritage and identity of society.
At the same time, it represents a promising economic sector if it is organized and the appropriate investment environment is created for it.
” He pointed out that “from this standpoint, the ministry is working in coordination with the relevant authorities, most notably the Ministry of Industry and Minerals and the National Investment Commission, to prepare an integrated vision for the establishment of a specialized industrial city that includes modern manufacturing and jewelry workshops in accordance with international standards, vocational training and rehabilitation centers for young craftsmen, and laboratories for testing carats and ensuring quality.”
He continued, “It also includes facilities for displaying and marketing products domestically and internationally, as well as facilities to support the local bullion industry and convert raw gold into exportable jewelry.
” He explained that “this city, which is planned to be established in Baghdad, a city with commercial activity linked to gold, will contribute to reducing dependence on imported gold, provide permanent job opportunities for thousands of craftsmen, regulate the market, control quality, protect consumers, and achieve added value for the national economy through exports and industrial stimulation.”
He pointed out that “the Ministry of Trade renews its commitment to the Iraqi government’s vision of building a diversified, productive economy, and calls on all private sector partners to actively participate in this national project, which will represent a qualitative leap in the gold and jewelry sector in Iraq.” https://www.mawazin.net/Details.aspx?jimare=264156
US Secretary Of State To Sudani: Importance Of Holding Accountable Those Involved In Energy Facility Attacks
08:22:16 Read: 1,170 times {International: Al Furat News} US Secretary of State Marco Rubio, in a phone call with Prime Minister Mohammed Shia al-Sudani, stressed the importance of holding accountable those involved in the recent attacks on Iraq’s energy infrastructure and the need to take measures to prevent their recurrence in the future.
US State Department spokeswoman Tammy Bruce quoted Rubio as emphasizing his country’s support for Iraq’s security and stability and its support for the Iraqi government in confronting security challenges, especially those targeting vital facilities and the energy sector.
This call comes in the wake of a series of unknown attacks targeting energy sites over the past few weeks, raising domestic and international concerns about a resurgence of security tensions that could impact the Iraqi economy and reconstruction efforts.
On July 15, Commander-in-Chief of the Armed Forces, Mohammed Shia al-Sudani, directed the relevant authorities to launch an immediate and comprehensive investigation to identify those behind the attacks on oil fields in the Kurdistan Region and abroad, and to take firm measures to hold those involved accountable without hesitation or leniency.
The spokesman for the Commander-in-Chief, Sabah al-Numan, also affirmed that the Iraqi government, with all its institutions and agencies, will not tolerate any threat to the interests of the Iraqi people and will take all necessary measures to protect vital facilities and strengthen the defense system, preventing the recurrence of such acts, preserving Iraq’s sovereignty, and protecting the rights of its people. LINK
What’s Behind The Exchange Rate In Iraq? An Expert Identifies The Factors Affecting The Dollar.
Time: 2025/07/23 19:03:55 Reading: 405 timesbb {Economic: Al Furat News} Economic expert Abdul Rahman Al Mashhadani revealed that the halt in government spending on investment projects is one of the main reasons for the demand for the dollar and its impact on the exchange rate in Iraq.
Al-Mashhadani told Al-Furat News: “Demand for the dollar is not limited to the commercial aspect alone, but is also greatly affected by government projects. The government’s initiation of spending on contractors and paying their dues leads to an increase in demand for the US currency, given that a substantial portion of the materials used in these projects are imported from abroad.”
He added, “In the absence of funds being disbursed for projects, related imports are halted, affecting the dollar’s movement in the market.” He noted that “Iraq is experiencing a second year of a halt to this vital exchange rate.”
Al-Mashhadani confirmed that “current spending is limited to the engineering efforts of the Prime Minister’s Office, and there are no financial allocations for the governorates or ministries,” noting that “this can be verified by referring to the Ministry of Finance’s website, which shows that spending on services, goods, and other supplies is zero.”
The selling price at exchange offices in Baghdad’s local markets was recorded at 140,500 dinars per $100, while the buying price was 138,500 dinars per $100. LINK
