Iraq Economic News and Points to Ponder Wednesday Afternoon 2-12-25
America Stops The Monetary Dollar On Iraq: Does The Dollar Rise Against The Dinar?
February 12, 2025 Last update: February 12, 2025 Independent/- In a surprising step, reports indicate that the United States of America decided to stop sending the cash dollar to Iraq, a decision that may have profound implications for the Iraqi economy and its financial market.
This shift raises many questions about its impact on the value of the Iraqi dinar, currency markets, and the local banking sector.
What is the cash dollar? The cash dollar indicates the money that is financially sent to Iraq by the United States, usually through banks or through other economic mechanisms.
This cash flow was playing an important role in supporting the Iraqi economy, especially in light of the economic challenges facing the country.
The reason for the American decision
The sources indicate that the American decision comes in the context of economic and diplomatic pressures on Iraq, which includes issues related to the national economy and monetary policies.
Some reports also indicate that the United States may seek to reduce the use of the dollar in Iraqi financial transactions, in an attempt to enhance the stability of the local currency and reduce dependence on foreign currencies.
The impact of the decision on the Iraqi dinar
This decision is expected to lead to noticeable fluctuations in the local currency market.
The US dollar is considered one of the basic currencies that are traded in Iraq, and
its cash flow stopped may lead to a lack of supply, which may push the dollar to rise against the dinar.
The impact of the rise on the Iraqi market
Increasing the value of the dollar may lead to high prices in the Iraqi market, which exacerbates the burden of inflation and affects the ability of citizens to buy basic commodities.
This may also indirectly affect economic activity, especially in sectors that depend heavily on import.
Are there solutions?
The Iraqi government will have a major challenge in dealing with these developments.
The next stage may require the development of new economic and financial strategies to alleviate the impact of sudden changes in currency rates.
It is necessary that there be a trend towards strengthening the Iraqi dinar and diversifying the sources of the national economy away from the great dependence on the dollar.
Conclusion
With these developments, it will be important to follow the effects of this decision in the short and long term. Iraq needs decisive steps to secure the stability of its national currency and protect its economy from the repercussions of the decision to stop the monetary dollar. https://mustaqila.com/أمريكا-توقف-الدولار-النقدي-على-العراق/
Protecting The Financial System Is A Priority For The Central Bank
Samir Al-Nusairi Some media outlets, social media networks and non-specialist analysts have begun to return to their analyses and statements to frighten citizens about US decisions to tighten economic sanctions on Iran.
We must make it clear here that Iraq's top priority is to protect its national economy, financial system and monetary system from international or American economic sanctions imposed on some countries. And its priority, according to its financial and monetary policies, is to avoid being a party to that.
This is well known to the US Treasury, international organizations, and international auditing and regulatory bodies, that "the Iraqi economy faced many crises and challenges, extending to the years before 2023, but the government, the Central Bank of Iraq, and the banking sector faced them wisely, harmoniously, and with high coordination, in order to know and determine the causes of these crises, and what are the solutions and treatments for the purpose of overcoming them quickly,"
as the Central Bank began at the beginning of 2023, using many procedures, such as using the electronic platform application, for foreign transfers in compliance with international standards and controls, which were represented by organizing the financing of foreign trade in directions that make the Iraqi banking sector regulated by international banking standards.
And that "these measures were fruitful during 2023 and 2024, and his policy of opening accounts in solid foreign correspondent banks for banks that lacked these banks succeeded.
The Financial Action Task Force (FATF), the US Treasury, the International Monetary Fund and the World Bank have commended the Central Bank’s measures in overcoming most of the comments, confirming the transparency of foreign transfers, and moving to cancel the platform and direct dealings between our banks and correspondent banks under the direct supervision of the supervisory bodies for foreign transfers and ensuring their arrival to the final beneficiary.
At a rate exceeding 97%, in addition to the government and the Central Bank contracting with international auditing and consulting companies with the aim of developing banks and ensuring their compliance with international standards.
These companies are Ernst & Young, K2, Oliver and Eman, and they are currently operating according to the roadmap and plans drawn up for that.
The Iraqi government, in cooperation with the Central Bank, has taken several steps in this direction, the most important of which is automating the tax system and the customs system. In view of this strict commitment to protecting our financial system, we reassure everyone that there is no possibility of imposing new sanctions on the banking sector. These are just rumors and have absolutely no basis in truth. https://economy-news.net/content.php?id=52720
Iraqi Oil Continues To Stabilize Above $78 In The Global Market
Wednesday 12 February 2025 09:17 | Economic Number of readings: 202
Baghdad / NINA / Iraqi oil prices continued to stabilize in global market transactions above $ 78 per barrel. Basra Heavy crude recorded $ 75.24 per barrel, while the average recorded $ 78.75 per barrel.
Brent crude futures fell 36 cents, or 0.47 percent, to $ 76.64 per barrel, while US West Texas Intermediate crude futures fell 37 cents, or 0.5 percent, to $ 72.95 per barrel. / https://ninanews.com/Website/News/Details?key=118518
Iraq Exports More Than 8 Million Barrels Of Oil To America In A Month
Energy Economy News – Baghdad The US Energy Information Administration announced today, Wednesday, that Iraq exported more than 8 million barrels of crude oil and its derivatives to the United States during the month of November 2024.
A schedule of the administration, which was reviewed by "Al-Eqtisad News", showed that "Iraq exported about 8 million and 510 thousand barrels of oil and its products during the month of November", indicating that this quantity "is greater than the month of October, which amounted to 6 million and 800 thousand barrels".
The US Energy Information Administration stated that "the total crude oil exported from Iraq to America in November amounted to 6.718 million barrels, while the remaining 1.792 million barrels were petroleum derivatives, including 1.788 million barrels of non-condensate oils and four thousand barrels of remaining fuel oil."
Iraqi oil exports to the United States have increased significantly over recent years, with export figures reaching record levels in some months, due in part to Iraq's ability to increase its oil production, as well as rising global demand for oil.
Oil trade relations between Iraq and the United States play an important role in strengthening economic relations between the two countries, and contribute to enhancing the stability of the global oil market and providing energy to the American and global economies. https://economy-news.net/content.php?id=52719
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