Iraq Economic News and Points to Ponder Wednesday AM 9-20-23

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Iraq Economic News and Points to Ponder Wednesday AM 9-20-23

Vice: Traders’ Refusal To Enter The Platform Caused The Dollar Crisis

Information / Baghdad..  On Wednesday, the representative of the State of Law coalition, Jassem Al-Alawi, revealed the reasons for the rise in the dollar in local markets, noting that money smuggling is a major reason for the rise.

Al-Alawi said in an interview with the Maalouma Agency, “The government has taken several measures to limit the rise in the dollar exchange rates in local markets.”  He added, “The failure to control borders and merchants deliberately not entering the electronic platform to buy dollars is a major reason for the increase.”

Al-Alawi pointed out, “The government took quick measures to control the rise in the dollar, pursue speculators in the black market, and force merchants to enter the electronic platform.”

Member of Parliamentary Finance, Khalil Dusky, had previously called on the Central Bank to take urgent measures to dry up the sources of dollar smuggling and control the black market. LINK

Oil Is Cheaper Than Coca-Cola

Economical  09/20/2023   Walid Khaled Al-Zaidi, when the news comes of a rise in oil prices in global markets, it indicates a state of recovery in global demand for black gold, which in turn shows the extent of economic and industrial activity in the countries that import it, as the data tells us that prices have risen to exceed the threshold of ninety dollars per barrel after oil prices continued to rise in trading.

The daily newspaper is supported by increasing expectations of a recovery in global demand for crude oil.

If this state of escalation continues, we may not be surprised if we find the price of a barrel exceeding the current price and approaching one hundred dollars before the end of the current year, and this matter is not unseen, but there are indicators that confirm the reality of the price escalation because The demand for it will increase to a greater extent as the end of the hot summer and the beginning of the winter approaches.

When a state of complete optimism prevails, rather than cautious optimism, it makes the global oil markets take two steps forward versus taking one step back from time to time. Here the importance of mentioning is highlighted that many of the major oil-consuming industrial countries are more often than not the cause of the rise in global commodity prices.

Especially the food products that it produces and exports to other countries, this increase is not objective, as in most cases it is not based on the cost of those products, but rather on a slight movement in the demand for them by the countries from which they import food.

Even Western experts believe that the current price of a barrel of oil is appropriate for consumers if it is measured by the prices of some manufactured foodstuffs, so that oil, which is a difficult number in the global economic equation, and at its current or high prices, remains much cheaper than some unnecessary drinks, such as Coca-Cola, the price of which is as high as a barrel.

To (150) dollars, even though it is considered a luxury product and its consumption does not constitute a matter of life or death for a person, and it is an unnecessary material, like the need for oil, which is used in the production of many goods, products, and important needs of human society.

It is important to say that the economic reality in Iraq emphasizes the necessity of exploiting the rise in global oil prices and working to reduce the planned deficit gap in the budget, which is estimated at approximately (64) trillion dinars for the current year and the next two years, in addition to its positive repercussions in terms of increasing the country’s financial revenues, especially in If its prices stabilize or rise, which is much higher than the price of oil presented in the federal budget of Iraq, which is estimated at about $70 per barrel, which enhances the benefit from the difference in those prices in various economic matters, as well as facing the fluctuations in oil prices and surprises in demand for it in the energy markets, as well as the development of the stages of Prices will make the budgets for the next two years maintain their constants and procedures, especially since there are great expectations for an increase in demand for oil from many Western countries, especially in the European continent, to face the cold winter.

In general, when the global economy restarts in recovery, oil prices in global markets rise more than expected and may exceed the ceiling of expectations, and their general trends are in favor of oil-exporting countries, which reduces the risks of its fluctuations in the foreseeable future.

https://alsabaah.iq/84316-.html

Iraq Reduces Its Holdings Of US Bonds

Economical  09/20/2023   Baghdad: Al-Sabah   The US Treasury Department announced yesterday, Tuesday, that Iraq’s possession of US bonds decreased by $400 million to reach about $32.6 billion last July.

The Treasury stated in its latest schedule that “Iraq’s possession of US Treasury bonds for the month of July of 2023 decreased by $400 million to reach $32.6 billion after it was $33 billion during the previous month,” indicating that “these bonds decreased by 6.12 percent.” percent for the same period in 2022, when Iraq’s possession of bonds amounted to $34.6 billion.

In the Arab world, Saudi Arabia is at the forefront of the countries with the most possession, amounting to 109.2 billion dollars, and the UAE comes second with 64.9 billion dollars, then Kuwait is third with 42.5 billion dollars, then Iraq is fourth and Oman is fifth with 7.061 billion dollars.

https://alsabaah.iq/%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A%D8%A9/

The Sudanese Is In New York And The Dollar Is On Fire In The Market.. Will The Visit To America Affect The Exchange Rate?

Posted On2023-09-19 By Sotaliraq   The Sudanese is in New York and the dollar is on fire in the market.. Will the visit to America affe Today, Tuesday (September 19, 2023), financial expert Saleh Al-Banari read the expected results and files of the visit of Prime Minister Muhammad Shiaa Al-Sudani and sent 4 American messages to the Iraqi Prime Minister during his visit to New York to attend the United Nations sessions.

The banker said in an interview, “The attendance of Prime Minister Muhammad Shiaa Al-Sudani at the United Nations sessions in New York is important on multiple levels, including economic ones, especially since there is a long list of meetings with heads of state and organizations, some of which are concerned with the economic, humanitarian, and human rights sectors.”

He added, “The turnout of American delegations with multiple addresses to the Sudanese meeting confirms the importance of the files at hand, especially with regard to the economic aspect as it is the most important in the relationship between Baghdad and Washington,” pointing out that “the latter will send, according to the readings, 4 important messages, which is the need for the Central Bank and banks to comply with the rules of dollar transfers.” In terms of knowing its movement, tracking it, and not dealing with countries subject to sanctions through the SWIFT system.”

He pointed out that “the American side will push for the need for Baghdad to make greater efforts to prevent smuggling and speculation related to the dollar and provide advice in this regard,” pointing out that “Washington will not interfere in reducing the exchange rate of the dollar in Iraq, but rather leave the options to the Sudanese government because it is committed to the issue of combating smuggling and controlling the pace of Remittances are what drives the stability of the parallel market and thus reduces the dollar exchange rate.”

He continued, “The dollar file in Iraq is complicated, especially with the presence of a large difference between the official price for selling it by the Central Bank and what is announced in the parallel market,” pointing out that “the Sudanese visit will not affect the exchange rates, but rather will remind the American side of the need to support Baghdad.” In measures to limit smuggling.”

The dollar exchange rates in Iraqi local markets are witnessing unstable jumps until they approached 160 thousand dinars for every 100 dollars, in conjunction with information about American intentions to impose sanctions on new banks that are not committed to the terms of transferring and financing trade using the dollar.

Al-Sudani left for New York to attend the United Nations sessions, where he will deliver a speech before the United Nations General Assembly reviewing Iraq’s regional and international positions and internal policy.

The meetings of the United Nations General Assembly, in its 78th session, will begin from Tuesday, 19 until September 23, as world leaders search for solutions to global challenges and participate in order to enhance peace and security, while this session bears the title of rebuilding confidence, restoring global solidarity, and the goals of sustainable development.

Government spokesman Bassem Al-Awadi says, “The Prime Minister will participate, like the rest of the world’s leaders, in the General Assembly meeting as it is the largest annual global forum for leaders (countries and governments) to meet, to discuss global and regional challenges and express Iraq’s opinion on them, as well as deliver a speech reviewing Iraq’s international and regional positions and politics.” Interior.

He continued, “The meetings of the United Nations General Assembly will also include listening to the opinions of world leaders and answering their inquiries regarding all Iraqi affairs, to strengthen bilateral ties, and to explain the Iraqi reality as it is, away from interpretations and analyses, and prior coordination of understandings, relations, and subsequent visits at the leadership level or Governmental institutions “.   LINK

Morning List Of Dollar Exchange Rates In Iraq

Economy  09-20-2023 | 7,908 views   Alsumaria News – Economy  Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in Iraqi local markets for Wednesday, Sept 20, 2023.

Dollar prices decreased with the opening of the Al-Kifah and Al-Harithiya stock exchanges in Baghdad, recording 155,600 dinars for every 100 dollars. As for the selling prices in the exchange shops in the local markets in Baghdad, they also decreased, as the selling price reached 156,500 dinars, while the purchasing price reached 154,500 dinars for every 100 dollars.

For more than 7 months, and specifically since the Central Bank began operating the electronic platform and the international financial transfer system ““SWIFT,” the dollar exchange rates in Iraq have not witnessed stability despite the attempts of the government and the Central Bank to control the exchange rate in the parallel (black) markets.

The  Central Bank of Iraq  decided earlier to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of buying the dollar from the Ministry of Finance reached 1,300 dinars per dollar and selling it at (1,310) dinars per dollar to banks through the electronic platform, and it is sold for (1,320) dinars per dollar. Dollars from banks and non-banking financial institutions to the final beneficiary.   LINK

A New High.. The Dollar Exchange Rate Touches 160 Thousand Dinars In Iraq

Economy | 09/19/2023  Baghdad – Mawazine News   The exchange rate of the dollar against the dinar rose on Tuesday in local markets in Iraq.  The selling price was 100 dollars compared to 159 thousand dinars.   While the purchase price was 157 thousand dinars. https://www.mawazin.net/Details.aspx?jimare=235210

Points to Ponder on Opinions:

Do not think of knocking out another person’s brains because he differs in opinion from you — It would be as rational to knock yourself on the head because you differ from yourself ten years ago — Horace Mann 

He who has no opinion of his own, but depends upon the opinion and taste of others, is a slave — 
Klopstock

Social opinion is like a sharp knife.  There are foolish people who regard it only with terror, and dare not touch or meddle with it; there are more foolish people, who, in a rashness or defiance, seize it by the blade, and get cut and mangled for their pains; and there are wi9se people, who grasp it discreetly and boldly by the handle, and use it to carve out their own purpose — 
Mrs. Jameson

Public opinion is a weak tyrant, compared with our private opinion — What a man thinks of himself, that it is which determines or rather indicates his fate –
– Thoreau

If a man should register all his opinions upon love, politics, religion, learning, etc.  beginning from his y outh, and so go on to old age, what a bundle of inconsistencies and contradictions would appear at last – 
Swift                                                                                                                                                                                                                                                                                            
Fly no opinion because it is new, but strictly search, and after careful view, reject it if false, embrace it if ’tis true —
 Lucretius