Iraq Economic News and Points To Ponder Tuesday Afternoon 6-25-24
Iraq Economic News and Points To Ponder Tuesday Afternoon 6-25-24
What Do Investments In Iraq Mean Politically And Economically?
June 24, 2024 Baghdad/Iraq Observer The high level of Arab and international investment optimism constitutes a new support factor for the economic renaissance in Iraq, while observers praised the government measures taken to support investment and economic reform together, which is witnessing significant growth after overcoming many obstacles.
Arab and foreign demand for investment in Iraq has shown an acceleration in growth since 2024, with significant Iraqi support being provided in light of political stability in the country.
Economic expert Zaid Al-Naimi said that the mechanism followed by the government to
limit currency smuggling,
stabilize the market, and
provide support to various sectors
contributed significantly to restoring Arab and international confidence in various sectors and their investments, with large amounts of money inside Iraq.
While confirming the correct approach followed by the government of Prime Minister Muhammad Shiaa Al-Sudani, he pointed to the acceleration of economic reform, which reflected positively on other sectors, whether industrial, infrastructure, or in the financial and banking sector, and that investments mean a lot politically and economically and are an important tributary for Iraqis to keep pace with modernity.”
Al-Naimi stated to the Iraq Observer Agency that investment in the economic sector, which is considered the important hand of the Central Bank, has also contributed to developing the private sector and providing advisory services, and that
the near future will witness the expansion of investments throughout Iraq to include a wide range of financial services, as well as the provision of advisory services. “It restores Iraq to Arab and global leadership.”
He attributed the investments to a group of sectors due to their importance, which the Iraqi government participates in, whether in investment in the industrial sectors, or in what is related to the financial sector, both the banking and non-banking sectors, as well as the importance of investing in infrastructure and improving the services provided to the Iraqis.
He pointed out that what is most important at this stage is Encouraging the private sector and working with it.”
Promote Growth
In turn, the World Bank expected that Iraq would achieve economic growth of more than 5% in 2026, indicating that the recovery in the oil sector in 2025 would contribute significantly to enhancing this growth.
The bank stated, according to a statement, that “Iraq’s economic growth for the year 2022 reached 7.6%, and in 2023 it decreased to -2.9%.”
He also expected that Iraq's economic growth would decline in 2024 to reach -0.3%, and that it would achieve growth in 2025 of up to 3.8%, and in 2026 to reach 5.3%.
He pointed out that oil-exporting countries outside the Gulf Cooperation Council, such as Iraq and Algeria, will benefit from the expected recovery in the oil sector in 2025, which will help boost economic growth in these two countries.
Million Auction
In this context, the bank sold, in its auction today, 273 million, 244 thousand and 330 dollars, which it covered at a base exchange rate of 1,310 dinars per dollar for documentary credits and international settlements for electronic cards, at a price of 1,310 dinars per dollar for external transfers, and at a price of 1,305 dinars per dollar in cash.
Most of the dollar sales went to strengthen balances abroad in the form of transfers and credits, which amounted to 250 million 274 thousand and 330 dollars, an increase of 91% over cash sales amounting to 22 million and 970 thousand dollars.
The number of banks that purchased cash dollars reached three banks, while the
number of banks that responded to requests to enhance balances abroad reached 15 banks, and the
total number of exchange and brokerage companies participating in the auction was 40 companies.
The Central Bank of Iraq's dollar sales amounted to more than 273 million dollars at the currency auction on Sunday. Experts suggested keeping the dollar exchange rates within their current rates.
Spending Demand
According to observers, the release of financial amounts for the 2024 budget will increase spending demand in the market, and that operational expenditures in terms of wages and salaries will be fixed and their impact will be constant, while they added,
“The investment budget is important because projects require locally manufactured and imported materials.”
They stated:
“Any trend towards locally made materials, such as construction industries such as rebar, cement, sand, wood, etc., which led to their local rise, and so on, are requirements that go towards keeping exchange rates within their rates and not decreasing them.”
Today, selling prices in money exchange shops in local markets in Baghdad were 148,000 dinars for 100 dollars, while purchasing prices reached 146,000 dinars for 100 dollars. https://observeriraq.net/ماذا-تعني-الاستثمارات-في-العراق-سياسي/
Laundering Corruption Money Raises Baghdad Real Estate... Questions About The Source Of Purchasing Power
Baghdad today – Baghdad Economic affairs researcher Mustafa Akram Hantoush confirmed today, Sunday (June 23, 2024), that
the rise in real estate prices in some areas of the capital, Baghdad, is due to money laundering, considering that the Baghdad Municipality’s approval of the area to be 200 meters or less is considered a violation, and also caused an increase in prices. Real estate. Hantoush told “Baghdad Today” that
“the real estate file in Iraq has become a very complex file and contains clear errors, and
there are also government decisions that have contributed to the rise in real estate prices, including the Baghdad Municipality approving an area of 200 square meters for the house as a basic design and there is a separate bond, especially
This square has become unavailable in most areas of Baghdad, except in some upscale areas.” He stated,
"The Central Bank of Iraq recently took a correct decision, that any house valued at more than 250 million before the tax must deposit the amounts in a bank until it is known where the source of that money comes from.
This is one of the ways to combat and limit money laundering through purchasing real estate.". He added,
"In areas that are witnessing a crazy rise in real estate prices, with the square meter reaching approximately 12 million or more, real estate there must be monitored, as
this rise may be caused by money laundering, especially since there is no such purchasing power in areas that are originally residential and not commercial." The researcher in the economic affairs continued,
“Working to register one or two houses in the name of one person is considered a reactionary law.
There is no harm in anyone owning dozens of houses if the source of his money is known.
We do not expect that such decisions, if there is a trend towards them, will not limit the rise in Prices at all, but may even have negative consequences.”
https://baghdadtoday.news/252066-غسيل-أموال-الفساد-يرفع-عقارات-بغداد.-تساؤلات-عن-مصدر-القوة-الشرائية.html
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Provoking Thoughts and Points to Ponder on Wealth
It is wealth to be content. - Lao-Tzu
Who is rich? He that rejoices in his portion. - Benjamin Franklin
If you're happy, you're wealthy! Happiness doesn't need a bank account. - Sr. Mary Christelle Macaluso
Wealth ... is a relative thing since he that has little and wants less is richer than he that has much but wants more. - Charles Caleb Colton
Sometimes when you have everything, you can't really tell what matters. - Christina Onassis
The only question with wealth is what you do with it. - John D. Rockefeller
The rich man is not one who is in possession of much, but one who gives much. - Saint John Chrysostom