Iraq Economic News and Points To Ponder Tuesday Morning 5-12-26
Central Banks Withdraw 111.6 Billion Yuan From China's Swap Lines
Banks Economy News - Follow-up The use of currency swap lines between global central banks and the People's Bank of China rose to a two-year high in the first quarter, an indication of growing international demand for the yuan and its expanding use outside of China.
By the end of March, central banks around the world had withdrawn about 111.6 billion yuan, equivalent to $16.4 billion, from the People’s Bank of China’s swap lines, marking the largest quarterly increase since 2023.
This rise reflects Beijing’s efforts to promote the use of the yuan in international transactions and provide greater liquidity in the Chinese currency to support trade and investment, at a time when some countries are showing increasing openness to reducing their reliance on the dollar in their financial transactions.
China's central bank pledges to continue its accommodative monetary policy.
The Chinese yuan is poised to overtake the Japanese yen to become the second most traded currency against the US dollar in the foreign exchange options market, after only the euro, according to LCH forecasts.
This rise comes as the use of the Chinese currency expands in global markets, supported by trade growth and increased demand for yuan-linked hedging and risk management tools.
According to the latest data from the Bank for International Settlements, the average daily trading volume in yuan-linked exchange options was $82 billion, compared to $102 billion for the yen and $236 billion for the euro.
The Chinese yuan's share of total global currency transactions rose to 8.5%, compared to about 7% in 2022.
https://www.economy-news.net/content.php?id=68986
The Baghdad Municipality Is Considering Launching A New Package Of Projects To Alleviate Traffic Congestion.
Money and Business Economy News – Baghdad The Baghdad Municipality is considering launching a new package of projects to alleviate traffic congestion on both the Karkh and Rusafa sides.
According to the official newspaper, Ahmed Raad, the media director of the Projects Department at the Secretariat, explained that "the study currently being carried out by the Maintenance Department in coordination with the Traffic Directorate and the municipal departments will be included in the Baghdad Secretariat's program to alleviate traffic congestion, which was launched by the government."
He stated that "the department is working in parallel to prepare plans for the maintenance of the bridges that it has built exclusively," noting that "there is a program for the maintenance of expansion joints in bridges that need this type of work, but the implementation of these projects faces challenges related to a lack of funding."
Raad pointed out that "there are ongoing communications with the Ministries of Planning and Finance in order to secure the necessary allocations and financial liquidity to include and implement maintenance projects, in order to ensure the sustainability of the infrastructure for bridges in the capital." https://www.economy-news.net/content.php?id=68983
Iran Opens New Land And Rail Routes For Imports After Adjustments
Arabic and international Economy News - Follow-up A member of the Iranian Chamber of Commerce's representative body announced that new decisions issued by the Ministry of Industry, Mines and Trade and the Trade Development Organization have made available new possibilities in recent days through land crossings and railways for importing goods.
Morteza Kohnvard explained to ISNA news agency that import procedures through various ports of entry have changed during the nearly seventy days of the war, fulfilling promises made by the government sector, the Trade Development Organization, and the Ministry of Industry. He stated that import mechanisms have been modified.
He added that the allocated quotas have reappeared on the relevant electronic platform in the last three or four days, and that import registration applications submitted since the beginning of the war but not yet approved have been processed and referred to the fee payment stage in the past two or three days, indicating an accelerated pace of operations.
He pointed out that the cessation of activities for more than two months necessitates expediting procedures, explaining that the majority of trade was conducted via the country's southern route, and that the closure of this route has complicated the situation.
He added that 70 percent of imports were transported via maritime routes, which have also been closed, preventing the exchange of goods, while transportation costs via alternative routes have risen significantly. He noted that recent days have seen changes and the issuance of new directives that have come into effect.
A member of the Iranian Chamber of Commerce's representative body confirmed that new import routes will be activated immediately, noting that applications are now being accepted. He explained that there is a railway route through Sarakhs, while imports from Afghanistan, Pakistan, and Iraq are negligible, with the majority previously arriving by sea. He added that only a limited percentage of goods were entering by land from Turkey, Eastern and Western Europe, and a portion from Russia, a route that remains open.
Kohnward explained that goods coming from other countries, particularly India and the rest of Asia, need alternative routes, either by rail in the northeast, by land through several countries, or by sea to Turkey, as alternatives to the southern route.
Regarding the possibility of carrying out imports without registering orders, the Iranian official confirmed that imports were not done without providing hard currency, but the approved facilities allow those who have the ability to secure currency within the country, whether themselves or through a third party, to register an import order without using bank currency, provided that the importer is responsible for providing the currency directly. https://www.economy-news.net/content.php?id=68987
Basra Gas Resumes Exporting Condensates To Global Markets
Energy Economy News – Baghdad The Ministry of Oil announced on Tuesday that the Basra Gas Company had successfully resumed loading and exporting a shipment of condensate, after a forced halt due to the repercussions of the Gulf War and the challenges that accompanied shipping and export operations in the region.
The Undersecretary of the Ministry for Gas Affairs, Izzat Saber Ismail, said in a statement received by “Al-Eqtisad News” that “Basra Gas Company was able to complete the loading of the tanker Dakosh with a quantity of 50,000 cubic meters of condensates,” stressing that “the operation was completed successfully and in full compliance with the requirements of the tenders and the approved technical and commercial standards.”
He added that "the tanker departed today, after completing the technical and logistical procedures," indicating that "this achievement was made possible thanks to the Ministry's follow-up and the efforts of the staff of Basra Gas Company, and through continuous communication with the relevant authorities in the related companies, which contributes to overcoming challenges and ensuring the smooth flow of export operations."
He stressed that “the achievements made during times of crisis are evidence of success, perseverance and a high sense of responsibility,” expressing his “hope that the loading and flow of tankers will continue normally in the coming days, which will contribute to strengthening the stability of export operations and fulfilling obligations towards contracting parties.”
He pointed out that "the Ministry and Basra Gas Company continue to support gas investment operations and maximize the benefit from hydrocarbon products, which enhances national revenues and supports the energy sector in Iraq."
https://www.economy-news.net/content.php?id=68984
Japan Is Supporting Cuba With Solar Panels To Address Electricity Shortages.
Arabic and international Economy News - Follow-up Japan's Foreign Ministry announced on Tuesday that Japan will supply Cuba with solar panels and other renewable energy equipment, given the latter's severe electricity shortage.
Japan's Jiji Press news agency reported on Tuesday that Cuba is facing widespread power outages as a result of fuel shortages following the de facto US oil embargo.
Japan is set to provide financial assistance of approximately one billion yen, through an international organization, to supply equipment that will be installed in 10 hospitals. https://www.economy-news.net/content.php?id=68989