Iraq Economic News and Points To Ponder Late Friday Evening 8-2-24

Circular from the Central Bank to banks and exchange companies: Reject travel tickets from internationally sanctioned airlines

Local | 04:34 - 02/08/2024  Muzain News – Baghdad   The Central Bank of Iraq informed, on Friday, government and private banks and exchange companies not to accept travel tickets issued by airlines and travel and tourism companies included on local or international sanctions lists in the sale of cash dollars for travelers.   https://www.mawazin.net/Details.aspx?jimare=252578

Exchange Markets Under Pressure: Dollar Continues To Rise In Baghdad And Erbil

August 1, 2024  Baghdad - Al-Zaman  The US dollar exchange rate witnessed a significant increase on Thursday morning in the markets of Baghdad and Erbil, the capital of the Kurdistan Region. This increase comes after a period of relative stability in exchange rates, which raises concerns among traders and consumers in Iraq.

At the opening of the Al-Kifah and Al-Harithiya stock exchanges in Baghdad, the dollar recorded a price of 149,250 Iraqi dinars per 100 dollars, compared to 149,100 dinars recorded yesterday, Wednesday. This slight increase may not seem significant, but it reflects an upward trend that may affect the financial stability in the country.

In the details of local prices, our correspondent reported that the selling prices in exchange shops in Baghdad also witnessed an increase, as the selling price reached 150,250 dinars for every 100 dollars, while the purchase price reached 148,250 dinars.

In contrast, in Erbil, the dollar prices also increased, as exchange shops recorded a selling price of 149,500 dinars and a purchase price of 149,400 dinars for every 100 dollars.

The rise in the dollar price is the result of several economic factors, including fluctuations in global financial markets, the impact of regional fluctuations on the Iraqi economy, or changes in monetary policy. Given the economic situation in Iraq, there may be a reciprocal effect between fiscal policy and geopolitical events.

The monetary policies of the Central Bank of Iraq contribute to this rise, especially if there is a reduction in cash reserves or changes in interest rates. In addition, local inflation can lead to increased demand for the dollar as a safe haven, which contributes to higher prices.

Political tensions and internal economic crises lead to market instability. Political unrest may affect investor confidence and increase exchange rate volatility.  LINK

Oil Prices Rise But Set For Fourth Weekly Loss

Energy   Economy News – Baghdad  Oil prices rose in early trading on Friday, but were on track for a fourth straight weekly loss, as disappointing signs of growth in global fuel demand outweighed concerns about supply disruptions from the Middle East, a key producing region.

Brent crude futures rose 33 cents, or 0.4 percent, to $79.85 a barrel by 0020 GMT, after falling 1.5 percent in the previous session. U.S. West Texas Intermediate (WTI) crude futures rose 38 cents, or 0.5 percent, to $76.69, after falling 2.1 percent on Thursday.

On a weekly basis, Brent crude futures are heading for a 1.7 percent decline, while West Texas Intermediate crude futures are heading for a 1.1 percent decline.

Four weeks of declines would be the longest losing streak for both benchmarks since a seven-week losing streak that ended in early December.

Surveys on Thursday showed weak manufacturing activity last month in the United States, Europe and Asia, raising the risk that a weak global economic recovery could weigh on oil consumption.

"Markets remain cautious on Chinese oil demand after June data came in weaker than expected," analysts at consultancy FGE said.

Asia's crude oil imports fell to their lowest in two years in July due to weak demand in China and India, data compiled by LSEG Oil Research showed.

Oil investors are watching developments in the Middle East with caution, as the killing of two senior leaders of Hamas and Hezbollah in Lebanon has raised fears that the region could be on the brink of all-out war, which could disrupt supplies.

81 views   Added 08/02/2024 - 10:51 AM  https://economy-news.net/content.php?id=45849

Iraq Ranked 82nd In The Manufacturing Index

Local  Economy News – Baghdad   The head of the Strategic Center for Human Rights, Fadhel Al-Gharawi, confirmed today, Friday, that the manufacturing industries in Iraq are still suffering from many challenges, noting that Iraq ranked 82nd out of 126 countries in the Industrial Manufacturing Index.

Al-Gharawi said in a statement today that China topped the world in manufacturing production, with more than $4.97 trillion, followed by Germany ($751 billion), India ($450 billion), South Korea ($426 billion), and Russia ($287 billion).

He added that Iraq recorded $4 billion and 750 million in 2023 and $4 billion and 725 million in 2022, up from $4 billion and 630 million in 2021, indicating that the highest production of manufacturing industries witnessed by Iraq during the past five years was in 2019, when it amounted to $4 billion and 994 million.

Al-Gharawi noted that Iraq has 4,000 diverse factories, including a group of factories specialized in manufacturing industries, adding, "However, most of them are stopped due to poor management and planning and the lack of marketing and support for the national product."

The head of the center continued by saying that the manufacturing industries may be an important economic resource for the country, contributing to the diversification of the economy’s sources instead of relying on oil.  76 views   08/02/2024 - https://economy-news.net/content.php?id=45857

Investment Reveals The Location Of The First Economic City In Iraq

Economy | 10:11 - 02/08/2024  Mawazine News – Baghdad    The National Investment Commission revealed on Friday the location of the first economic city in Iraq, noting that economic cities represent investment portfolios capable of attracting and bringing in local and foreign capital.

Hanan Jassim, the spokesperson for the Investment Commission, said: "The Chairman of the National Investment Commission, Haider Muhammad Makiya, during his meeting in the presence of committee members and representatives of the ministries and relevant sectoral bodies from Maysan Governorate, called for the importance of intensifying efforts and coordinating them in a detailed and precise manner that contributes to creating a realistic vision and a successful announcement for investors, businessmen and companies wishing to make this type of investment."

She added that "the attendees were informed of the full borders of the regions distributed according to the projects to be established and the ownership of the lands with the possibility of expanding some of them," indicating that "it was agreed on the importance of preparing a clear map of road networks, water and electricity sources and other requirements for granting investment licenses for these projects, which will be among the topics and discussions of the upcoming meetings."

Jassim pointed out that "the committee's work witnessed the presentation of a number of proposals and ideas that support the implementation of such projects, based on the Prime Minister's approval of the minutes and recommendations of the Diwani Order Committee (23674), which decided to form the Higher Committee for the Economic Development and Advancement of the Al-Tayeb Area in Maysan Governorate and its Neighboring Areas, headed by the Chairman of the National Investment Commission and the membership of various state bodies, including the Governor of Maysan, the Chairman of the Maysan Investment Commission, the Chairman of the Industrial Cities Authority in the Ministry of Industry and Minerals, in addition to a number of general managers in the Ministries of Finance, Planning, Oil and Education and a representative of the Prime Minister's Office."

Jassim explained that "the Higher Committee for the Development and Advancement of the Al-Tayeb Area in Maysan Governorate and its Neighboring Areas has actually begun its work, headed by the Chairman of the National Investment Commission, Haider Mohammed Makiya."

She stressed that "the development and Advancement of the Al-Tayeb Area, southeast of Maysan Governorate, will be the first economic city in Iraq and will represent a successful model and an economic resource for the state that can be applied in other governorates of the country,"

explaining that "this model will represent diverse and ready investment portfolios capable of attracting and bringing in local and foreign capital."

She continued, "Al-Tayeb City will include a group of diverse projects in various economic specializations, including projects specialized in the residential sector, others in the industrial sector, and other economic projects,

in addition to recreational and academic projects," noting that "developing the region will achieve a great economic return that will contribute to stimulating the economic base in the governorate, and providing job opportunities for the governorate's people."

https://www.mawazin.net/Details.aspx?jimare=252562

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