Iraq Economic News And Points To Ponder Saturday Morning 3-21-26
Wholesale Dollar Trading In Baghdad And Erbil Has Stopped Due To The Eid Holiday.
Money and Business Economy News – Baghdad No exchange rates for the US dollar against the Iraqi dinar were recorded today, Saturday, in the markets of the capital, Baghdad, due to the suspension of trading coinciding with the Eid holiday.
However, a limited number of exchange shops continued to operate in some areas of Baghdad, where the selling price was recorded at about 155,500 dinars per 100 dollars, while the buying price was 154,500 dinars.
In Erbil, the markets had closed their last transactions on Thursday, with prices reaching 154,600 dinars for selling and 154,500 dinars for buying per 100 dollars, before the start of the Eid holiday. https://www.economy-news.net/content.php?id=66958
European Markets Suffered Weekly Losses As Oil Prices Rose And Investors Anticipated An Interest Rate Hike.
Money and Business The recovery in European indices did not last long, as they closed with a collective decline on Friday, March 20, and suffered weekly losses, as oil prices rose and investors studied the cautious tone adopted by central banks across the continent during the previous session.
The pan-European STOXX 600 index fell 1.5%, reversing its morning gains. All major regional exchanges and sectors posted negative performance.
Meanwhile, the German DAX index fell by 1.94%, closing at 22,397.43 points.
The French CAC 40 index fell by 1.82% to 7,665.62 points.
Meanwhile, Britain’s FTSE 100 lost about 1.45% to 9,917.60 points.
The European Central Bank announced yesterday that the conflict has created upside risks to inflation and downside risks to economic growth, prompting traders to increase their bets on the likelihood of the ECB raising interest rates later this year.
Central Banks Hold Interest Rates Steady
British government bond yields continued their upward trend on Friday, as concerns about an inflationary shock driven by rising energy prices weighed on borrowing cost expectations. Yields on two-year bonds, which are most sensitive to the Bank of England's interest rate policies, jumped 20 basis points to 4.614%.
Meanwhile, yields on 10-year bonds, the benchmark for British government debt, reached their highest level since the 2008 global financial crisis, at 5.020%, marking a rise of 17 basis points during the day.
This increase coincided with new data from the Office for National Statistics showing that total UK public sector borrowing reached £14.3 billion ($19.1 billion) in February, an unexpected year-on-year increase of £2.2 billion.
The Bank of England's Monetary Policy Committee voted unanimously on Thursday to keep interest rates steady, with policymakers saying they were "ready to act" to offset the effects of the war, again increasing bets on an interest rate hike later this year.
The European Central Bank announced that the dispute had created "upside risks to inflation and downside risks to economic growth," prompting traders to increase their bets on the likelihood of the ECB raising interest rates later this year.
But European Central Bank policymakers have pointed out that there is considerable uncertainty surrounding the long-term impact of the war, as its effect on inflation depends on the duration of the conflict and the impact of energy price volatility on consumer prices and the economy.
Investors currently expect a greater than 50% probability of an interest rate hike at the European Central Bank's next meeting in April. Traders are pricing in a 100% probability of the Bank of England raising interest rates by June, according to data from the London Stock Exchange Group. Markets view the likelihood of a rate cut this year as nil. https://www.economy-news.net/content.php?id=66952
Iranian Ministry Of Petroleum: No Oil Available For International Markets
Today, The spokesperson for the Iranian Ministry of Petroleum, Saman Qoddusi, has responded to statements made by U.S. Treasury Secretary Scott Bessent regarding the lifting of sanctions on Iranian oil currently held on tankers to assist in lowering global prices.
Writing on the "X" platform, Qoddusi stated: "At the present time, Iran fundamentally possesses no floating crude oil or surplus supply for other international markets."
He added: "The statement by the U.S. Treasury Secretary is intended solely to offer hope to buyers and exercise psychological control over the market."
Bessent had previously remarked that "in the coming days, we may lift sanctions on Iranian oil located at sea, the quantity of which amounts to approximately 140 million barrels."
He indicated that releasing sanctioned Iranian oil into global supplies would contribute to reducing crude prices within the next 10 to 14 days.
Source: News Agencies https://ina.iq/en/economy/46888-iranian-ministry-of-petroleum-no-oil-available-for-international-markets.html
Oil Minister: Fuel Stations Operating 24/7, Supply Stable Across Iraq
Today Baghdad – INA Oil Minister Hayyan Abdul-Ghani on Friday announced the availability of gasoline, cooking gas, gas oil, and kerosene at fuel stations across Iraq.
Speaking at a press conference followed by the Iraqi News Agency (INA), Abdul-Ghani said, “Today we toured several oil companies operating in Basra, including Basra Oil Company, the country’s primary producer of crude oil and exporter to international markets,” noting that “many measures were discussed in light of the current circumstances.”
He added that “a plan has been developed with the company to reduce production and halt exports from the southern outlets,” explaining that “this plan focuses on supplying crude oil necessary to operate refineries and power plants.”
Abdul-Ghani noted that “the company’s production prior to February 28, 2026, was estimated at 3.3 million barrels per day, while today it has dropped to around 900,000 barrels per day, including 250,000 barrels allocated to southern refineries, with the remaining quantities directed north to operate refineries in central and northern provinces.”
He further explained that “we also visited South Gas Company, a joint venture between Shell and Basra Gas Company for dry and liquefied gas production, where gas collected from fields across Basra—such as Zubair, Rumaila, and West Qurna—is processed into dry gas for power generation and liquefied gas for cooking purposes.”
Abdul-Ghani added, “We also visited South Refineries Company, a key entity in the refining sector with a design capacity of about 250,000 barrels per day, producing white products such as gasoline, diesel, gas oil, kerosene, and some cooking gas, all of which are distributed across Iraq.”
He pointed out that “there are refinery byproducts, mainly black oil and naphtha. Previously, black oil was exported via a pipeline from Shu’aybah to Khor Al-Zubair and loaded onto tankers. However, due to halted exports and the closure of the Strait of Hormuz, storage overflow occurred, and these byproducts must now be processed to sustain refinery operations.”
Abdul-Ghani added that “the Ministry of Oil has begun signing new contracts to sell crude oil via tanker transport to outlets outside Iraq,” confirming that “through a crisis cell formed under a Cabinet decision granting exceptional powers, the Ministry managed to process these byproducts to maintain refinery operations and ensure the continuous supply of white products to the domestic market.”
He emphasized that “all fuel stations operate 24 hours a day, and all products are available, including gasoline, gas oil, and kerosene,” noting that “these measures are a top priority for the Ministry to guarantee product availability for citizens.” Abdul-Ghani concluded that “local markets remain stable thanks to the availability of products.”
Oil Minister: Basra Oil Production Reduced To 900,000 Barrels Per Day
Deputy Prime Minister for Energy Affairs and Oil Minister Hayyan Abdul-Ghani on Friday announced the reduction of Basra oil production to 900,000 barrels per day.
The Ministry said in a statement received by the Iraqi News Agency (INA) that “Deputy Prime Minister for Energy Affairs and Oil Minister Hayyan Abdul-Ghani Al-Sawad chaired a meeting on Friday at Basra Oil Company, attended by Undersecretary for Extraction Affairs, Basim Mohammed Khudair, Director General of Basra Oil Company, Basim Abdul-Karim, and senior company staff, to discuss the crude oil production plan in light of recent regional developments.”
According to the statement, the Minister said, “Since the halt of exports from the southern ports, production at the company has been reduced from 3.3 million barrels to 900,000 barrels,” noting that “the quantities produced are being directed to operate refineries.” https://ina.iq/en/economy/46875-oil-minister-basra-oil-production-reduced-to-900000-barrels-per-day.html
US Nut Exports To Iraq Break The $30 Million Barrier
Money and Business Economy News – Baghdad The US Departments of Agriculture and Commerce announced on Saturday that the value of US nut exports to the Iraqi market reached a record high, exceeding $30 million in 2025.
According to official data, the quantity of shipments supplied amounted to about 5,606 metric tons, with a total value of $30.57 million, reflecting a radical shift in the volume of trade between the two countries within this food sector.
Statistics showed that the average value of US nut exports to Iraq during the last decade had been stable at $12.43 million annually, meaning that the recently recorded figures represent an exceptional growth rate of 392%.
Observers attribute this rapid rise to increasing local demand in Iraq for high-quality products, and the expansion of American supply chains that have begun to take a larger share of the Iraqi market compared to previous years.
https://www.economy-news.net/content.php?id=66972
Indonesia Seeks To Raise $5 Billion To Counter The Fallout From A War With Iran
Money and Business Economy News - Follow-up Indonesian presidential spokesman Prasetyo Hadi said in an interview published Saturday that Indonesia is seeking to save an estimated 80 trillion rupiah ($5 billion) from its budget to cope with the fallout from a US-Israeli war on Iran.
In a video interview with a number of journalists and experts, President Prabowo Subianto said that his country is making strenuous efforts to improve the efficiency of its budget to cope with the repercussions of the conflict.
The Indonesian central bank had kept its interest rate unchanged last Tuesday, as policymakers monitor the impact of the war in the Middle East on the economy and the local currency, the rupiah.
Central Bank Governor Perry Wargio said the war in the Middle East is worsening the outlook for both the global economy and supply chains, and that the space for monetary easing is shrinking worldwide.
He added that the central bank needs to anticipate and deal with the repercussions of the war on the Indonesian economy and financial markets in order to maintain growth momentum.