Iraqi News Highlights and Points to Ponder Sunday AM 11-5-23


Iraqi News Highlights and Points to Ponder Sunday AM 11-5-23

By Investing In Black Oil…An Economic Expert Proposes A Solution To The Dollar Crisis In Iraq

Economy |Baghdad Today – Baghdad   After the dollar exchange rate crisis worsened, and the situation got out of control in the parallel market in light of the inability of the government and the central bank to contain the crisis, economic expert Nabil Al-Marsoumi proposes a “solution through investing in black oil.”

During the past months, the dollar exchange rates witnessed a noticeable increase, exceeding 160 thousand dinars for every 100 dollars, which ignited the market and raised the prices of food and other commodities, in light of merchants’ fears of the losses that may befall them as a result of this rise. 

Selling Black Oil 

Al-Marsoumi said today, Sunday (November 5, 2023), that “Iraq’s exports of black oil in 2022 amounted to more than 4 billion dollars.”

 The economic expert explained in a blog post followed by “Baghdad Today” that “Iraq can sell black oil in euros or Chinese yuan and use the amounts to settle commercial transactions with countries sanctioned by America, especially Iran.”

Al-Marsoumi pointed out that “if this happens, the exchange rate of the dollar in the parallel market will decline significantly,” pointing out that “this must be preceded by an understanding with the US Federal Bank and obtaining its approval.”

Trade Exchange With Iran

Iraq’s imports from Iran annually amount to approximately 10 billion dollars, which is equivalent to 16% of Iraq’s total annual imports amounting to 60 billion dollars annually, according to economic estimates.

Iranian trade with Iraq is facing many difficulties, the most important of which is financing and the possibility of obtaining the dollar, especially with the implementation of the platform in the Central Bank of Iraq, which prevents financing trade and sending money to Iran for the purpose of import.

This led to merchants importing from Iran rushing to buy the dollar from the parallel market and bearing an additional cost as a result of the high prices there, and amid these many difficulties.

On (October 31, 2023), an Iranian official revealed a decline in his country’s various exports to Iraq for several reasons, including the difference in the dollar exchange rate.

The former Secretary of the Iranian-Iraqi Chamber of Commerce said in a press statement, “One dollar for an Iranian merchant is equivalent to 1,600 Iraqi dinars, while this number for businessmen from other countries is 1,300 dinars, which is equivalent to the official price of Iraq,” stressing that “this difference in the price that… “Up to 15% is acceptable for Iranian businessmen, but exceeding that will make things more difficult.”   LINK

The Dollar Records A New High Against The Dinar In Baghdad And Erbil

SUNDAY, 05-11-2023, TAYSEER AL-ASADI   The dollar records a new high against the dinar in Baghdad and Erbil 9-1699174421

Dollar prices rose today, Sunday, in Baghdad markets and in Erbil, the capital of the Kurdistan region.

According to media sources, dollar prices rose with the opening of the Al-Kifah and Al-Harithiya stock exchanges to record 163,200 dinars against 100 dollars, while yesterday, Saturday, prices were 162,900 dinars against 100 dollars.

The sources added that selling prices in exchange shops in local markets in Baghdad rose, as the selling price reached 164,250 Iraqi dinars, while the purchasing price reached 162,250 dinars for every 100 dollars.

In Erbil, the dollar also recorded an increase in banking shops, the selling price was 163,050 dinars against the dollar, and the purchasing price was 162,950 dinars against 100 dollars.

Member Of Parliamentary Finance: The Dollar Exchange Difference Is Very Large And It Has Become Necessary To Address It

Time: 11/05/2023 Read: 754 times    {Economic: Al-Furat News} A member of the Parliamentary Finance Committee stressed the need to address the high dollar exchange rates in the country.

Committee member Ali Jabbar Mu’nis told Al-Furat News Agency, “The financial difference between the official and parallel exchange rates in the markets has become very large.”

He added, “It has become necessary to resolve this matter by dealing more seriously with the US Federal Reserve, oil dues, and increasing dollar payments to Iraq, and the issue must be addressed because of the negative repercussions on the lives of citizens.”

He warned of “long-term repercussions, as the Iraqi government has large economic obligations and the budget must undertake the process of organizing the budget more closely.”   LINK

Chamber Of Commerce: 65% Of The Money Is Stored In The Homes Of Iraqis

Information / Baghdad.. The head of the Diyala Chamber of Commerce, Muhammad Al-Tamimi, revealed on Sunday that about 65% of private money is stored in the homes of Iraqis.

Al-Tamimi told Al-Maalouma, “The economic and financial file in Iraq needs a road map that contributes to correcting it, especially with the many mistakes in the mechanisms for dealing with crises, not to mention the push to rely on the sale of oil as a basic resource for the country’s treasury.”

He added, “65% of the money is hoarded in the homes of Iraqis, and this is a grave mistake whose causes were multiple, most notably the failure of plans to attract money over many decades,” pointing out that “there are 3 solutions, the most prominent of which is giving advantages to placing money in banks and opening investment channels that push… Moving the economic file, especially in vital files, including residential investments and others.

He pointed out that “getting people to put money in banks gives flexibility in paying salaries and increases the obligation to give financial loans in a way that pushes the economy to grow at a higher pace.”

The national economy is suffering from great difficulties in light of its heavy dependence on the sale of oil to finance the treasury.   LINK 

The Central Bank Sold A Billion Dollars Last Week

Economy   2023/11/05 10:04  Number of readings: 273    Baghdad – Iraq Today:   The Central Bank of Iraq’s total sales of hard currency in US dollars during the past week amounted to more than 997 million dollars.

A financial source said that the Central Bank sold during the last week and for the five days during which the auction was opened, 997 million 84 thousand and 686 dollars, at a daily rate of 109 million and 652 dollars, higher than what it recorded last week, which amounted to 996 million 975 thousand and 34 dollars.

The highest dollar sales were last Monday, when sales amounted to 203 million, 802 thousand and 572 dollars, while the lowest sales were on Tuesday, when sales amounted to 195 million, 529 thousand and 217 dollars.  LINK

Provoking Points to Ponder on TRUTH:

The history of our race, and each individual’s experience, are sown thick with evidence that a truth is not hard to kill and that a lie told well is immortal.  Mark Twain (1835 – 1910), Advice to Youth

Truth is more of a stranger than fiction. 
 Mark Twain (1835 – 1910)

Truth sits upon the lips of dying men. 
 Matthew Arnold (1822 – 1888), ‘Sohrab and Rustum,’ 1853

The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth. 
  Niels Bohr (1885 – 1962)

The truth is rarely pure and never simple.   
Oscar Wilde (1854 – 1900), The Importance of Being Earnest, 1895, Act I

Truth persuades by teaching, but does not teach by persuading.  
 Quintus Septimius Tertullianus (160 AD – 230 AD), Adversus Valentinianos

Truth is beautiful, without doubt; but so are lies. 
 Ralph Waldo Emerson (1803 – 1882)

I have been truthful all along the way. The truth is more interesting, and if you tell the truth you never have to cover your tracks.   
 Real Live Weblog, January 04, 2004

I guess sometimes you have to lie to find the truth. 
Scott Westerfeld, Extras, 2007

Turns out if you never lie, there’s always someone mad at you.  
 Scott Westerfeld, Extras, 2007

How often have I said to you that when you have eliminated the impossible, whatever remains, however improbable, must be the truth?   
 Sir Arthur Conan Doyle (1859 – 1930), (Sherlock Holmes) The Sign of Four, 1890

Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened. 
 Sir Winston Churchill (1874 – 1965)