An Economist Reveals Three Hidden Reasons Behind The Market Recession.
Time: 2025/04/26 16:57:17 Read: 2,040 times {Economic: Al Furat News} Economic expert Salah Nouri revealed today, Saturday, three reasons behind the current stagnation in Iraqi markets.
Nouri told Al Furat News, “The first reason is the rise in the prices of basic imported goods globally, which has had a direct impact on their prices in local markets when calculated in Iraqi dinars, making them beyond the reach of a wide segment of citizens.”
He added, “The second reason relates to the fluctuations in the local dollar exchange rate, which has weakened the dinar’s purchasing power and made low-income earners among the most affected groups due to their inability to keep up with rising prices.”
Nouri pointed out that “the third reason is the decline in demand for basic commodities due to the decline in citizens’ purchasing power, which has led to a general state of stagnation in markets, especially in areas with low incomes.” LINK
Central Bank: Visa And Mastercard Card Issue Abroad To Be Resolved Next Month
Central Bank Governor Ali Mohsen Al-Alaq Banks Economy News – Baghdad Central Bank Governor Ali Mohsen Al-Alaq announced on Saturday that the issue of Visa and MasterCard cards abroad will be resolved within the next month.
Al-Alaq said in press statements, followed by “Al-Eqtisad News,” that “the Central Bank has completed the two tasks related to cash sales and foreign transfers, but the card crisis witnessed a state of “misunderstanding.”
He explained, “When we headed to organize this process, it required a set of procedures that must be worked on, so that we put it in its correct direction and according to acceptable standards, and therefore there were some stops and some changes in the paths.”
Al-Alaq said, “An agreement was reached with all concerned parties – which include “Visa” and “MasterCard” in coordination with the Treasury, the Federal Reserve, and the auditing company – on “the formulas and paths for settling these cards,” stressing that “the Central Bank has taken rapid steps in this regard, expecting to complete this task within the next month, i.e. before the scheduled date for this process, which is June 1.”
Al-Alaq revealed that “work has begun on developing a plan to issue cards to small merchants, after completing consultations with companies,” “to accommodate the requests of merchants—a large segment of Iraqis—to cover their foreign trade without passing through long routes, so that transfers can be made directly, which will create a major shift in accommodating merchants who do not use formal transfer methods.”
Al-Alaq indicated that “the Central Bank, in agreement and consultation with the Treasury and the Federal Reserve, has completed the organization of cash sales of dollars, and is now ‘in an ideal position, by their own testimony.'” He described foreign commercial transfers as “progressing very smoothly, as we have expanded the network of correspondent banks abroad in the US and elsewhere.
An agreement has also been reached to open another bank in the US to establish relationships with Iraqi banks in transfer operations.” https://economy-news.net/content.php?id=54852
A New Decline In The Dollar Exchange Rate Against The Dinar
Saturday, April 26, 2025 11:23 | Economic Number of readings: 120 Baghdad / NINA / The exchange rate of the dollar against the dinar decreased, Saturday morning in Baghdad and Erbil.
The exchange rate in the Al-Kifah and Al-Harithiya stock exchanges in Baghdad reached 144,400 dinars for every $100.
In the local markets in Baghdad, the selling price reached 145,500 dinars, and the purchase price was 143,500 dinars, for every $100.
In Erbil, the dollar price also decreased, with the selling price reaching 145,600 dinars for every $100, and the purchase price reaching 144,500 dinars for every $100. /End https://ninanews.com/Website/News/Details?key=1210170
Basra Crude Suffers Weekly Losses Of More Than 1 Percent.
economy | 09:41 – 04/26/2025 Mawazine News – Follow-up Basra Heavy and Medium crude oil prices recorded weekly losses of more than 1%. Prices were as follows:
Basra Heavy crude closed up 36 cents at $64.51 a barrel, but suffered a weekly loss of 80 cents, or 1.22%. Basra Medium crude closed up the same amount at $68.46, but also recorded a weekly loss of 80 cents, or 1.17%. https://www.mawazin.net/Details.aspx?jimare=260913
Prime Minister’s Advisor: Government Bonds Are A Better Investment Option Than Gold
Buratha News Agency1862025-04-25 The Prime Minister’s advisor, Mazhar Mohammed Saleh, confirmed on Friday that sovereign government bonds are available for investment through banking institutions, calling for diversifying investment portfolios by investing in government bonds instead of gold, as “local gold is one of the wealth havens most affected by external or international factors and their shocks, as it is a commodity imported from gold vaults outside the country,
as the global price of gold exceeded the $3,200 per ounce barrier in April 2025, affected by geopolitical tensions, especially between the United States and China, or the so-called trade war issue represented by the escalation of the mutual tariff war between various countries of the world and its direct and indirect effects on inflation trends and expectations in the global economy.”
He added, “This coincided with indicators of the oil asset cycle, the downward trend in global oil prices, and the increasing demand for the yellow metal by central banks and investors seeking a safe haven for wealth around the world, as gold is undoubtedly the best store of value.”
He noted that “the price of gold, which has witnessed a significant and continuous rise, despite its fluctuations towards the decline, has maintained its high price. For example, the price of one ounce on April 17, 2025, reached approximately $3,321.89, after previously reaching a new record high of $3,357.40 per ounce.”
Saleh explained that “the opening of the local gold market to the global market and the impact of the global price of gold on our country’s supply has become an immediate reflexive issue. Until the local gold market stabilizes again, it may take a real period of time to adapt again.”
He pointed out that “the short-term jumps in gold prices cast a shadow over the tendencies of individuals in our country and the behavior of some to hedge by investing in the yellow metal.”
He continued: “Demand for gold in Iraq is a traditional means of preserving value, which leads to its purchase as a normal hedge, especially for those with cash surpluses, with the aim of profiting from the external price factors affecting the fluctuations in the international economy, and the impact of this on the level of global prices, and the repercussions of this on thinking about re-diversifying the wealth portfolios of some of them, or according to their beliefs and traditions in investing, preserving the value of their personal financial wealth, or speculating.”
Saleh pointed out that “if the goal of importing is a safe investment, it is preferable to monitor global and local markets to make informed decisions, and to proceed with the proper diversification of their investment portfolios and not rely entirely on a single investment vehicle to preserve value, since gold is also subject to decline.
It is also preferable to consider other national investment options to diversify their investment portfolios, especially investing in interest-bearing sovereign government bonds currently offered to investors through the Iraqi banking system.” https://burathanews.com/arabic/economic/459247
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