Iraq Economic News and Points to Ponder Saturday Evening 7-27-24
Political Parties Control The Sale Of The Dollar.. A New Threat To The Stability Of The National Economy
Posted On2024-07-27 By Sotaliraq Recently, there have been reports that political parties are controlling the sale of dollars in the financial markets.
This news has raised widespread concern among citizens and investors, as it is feared that this control will lead to manipulation of exchange rates and the creation of a black market that will negatively affect the national economy.
These developments come amid volatile economic conditions and a turbulent political landscape, which increases the challenges facing the government in maintaining currency stability and providing a secure economic environment.
Economic expert, Diaa Al-Mohsen, says, “The dollar exchange rate on the black market will not rise to more than 1,500 dinars,” accusing “political parties of controlling the sale of the dollar, as well as colluding with the monetary authority.”
He added, “Restricting the sale of dollars to travelers to certain exchange companies confirms that these companies are owned by large political blocs that benefit from the process of buying and selling dollars, and they are intended to obtain the largest share of foreign currency sales.”
He explains that “the Central Bank and the executive authority are fully aware of the political parties that control the dollar sales operations in the country, after they were restricted to certain companies.”
Al-Mohsen continues, “The dollar exchange rate will not reach high levels, especially since there is cooperation between the monetary authority and those who sell dollars on the black market, such that this cooperation ensures that the parallel exchange rate does not rise to more than 1,500 dinars per dollar.”
For his part, the official spokesman for the currency market in Sulaymaniyah, Jabbar Kuran, revealed the reasons for the rise in the exchange rate of the US dollar against the Iraqi dinar in the parallel market.
Jabbar Kuran says, “The issue of the rise in the exchange rate of the dollar against the Iraqi dinar is related to the financial measures taken by the Central Bank of Iraq.”
“The Central Bank of Iraq took some good measures in the past, but the increase that has occurred now is due to other measures that the Central Bank has not taken yet, including that the bank decided that foreign dealings are not limited to the US dollar only,
but this measure has not been taken yet, as well as not linking all banks to the electronic platform and stopping work on it with the exception of only seven banks, which do not accommodate the foreign trade exchange process that reaches about 50 billion dollars annually, and I do not expect those seven banks to accommodate this volume of trade exchange.”
He added, "One of the other reasons that led to the rise in the exchange rate of the dollar against the dinar is the reduction in cash injections by the Central Bank of Iraq, except for this day."
He explains, “The demand for the dollar these days is abnormal, and I do not expect that opening the dollar exchange window for travelers at airports will be a reason for the dollar exchange rate to rise, even though now is the travel season.”
He states that “the large number of exchange offices and companies in Iraq and Kurdistan and the inability of the Central Bank of Iraq to meet their needs for the US dollar, as there are about 1,200 exchange companies in Iraq, and about 2,500 companies in Kurdistan, so far, have not merged with each other to reach about 400 actual companies, so all of these companies and offices need more than 50 million dollars daily.”
Kuran confirms that “the rise of the dollar this time is not linked to a political or economic crisis or external factors, but rather is linked to the measures of the Central Bank of Iraq, and it is possible that the bank will control this rise,” expecting the exchange rate of the dollar to rise to more than 150 thousand dinars for every 100 dollars, while ruling out at the same time that it will reach high levels as happened in the past periods.”
Since Eid al-Adha, the dollar exchange rate has risen to more than 152,000 dinars in the parallel market and exchange offices, after hovering around 145,000 dinars per 100 dollars.
Prices have fallen again over the past week, with the dollar now hovering around 149,000 dinars per $100.
The Central Bank imposed a mechanism that prevents the delivery of dollars to travelers except at airports, which increased the demand for dollars in the parallel market after illegal trade was financed through the parallel market via travelers’ dollars. LINK
The Dollar Pushes The Iraqi Dinar To Confrontation.. And The Market Movement Is Stagnant
Time: 2024/07/27 21:22:29 Read: 1,794 times {Economic: Al Furat News} The US dollar pushes the Iraqi dinar to confront and stabilize at a certain number, while local markets become stagnant.
Economic expert, Basem Jamil Antoine, told {Euphrates News} that: "The reasons for the stability of the dollar exchange rate are due to a number of factors, including the stagnation in economic and commercial activity, which is considered weak in all markets in Baghdad and Iraq, and shopping activity is weak during the month of Muharram."
He added, "During the month of Muharram, there is stagnation in commercial activity, no shopping, and inactivity, and economic activity in general is almost at a standstill, in addition to being in the hands of the state in general; therefore, there is no active commercial activity or demand for the dollar; because the private sector is mainly the one that buys the dollar to import, and in the absence of demand, it remains stable."
Antoine added, "Also, the rise in exchange rates is faster than their fall, and this process needs to be reviewed, as traders who bought the dollar do not sell it at a loss, which is one of the reasons for the stagnation, stagnation, and weak economic activity, in addition to the high temperatures that play a major role in the productivity of the individual or citizen, which is weak."
In addition, the Parliamentary Investment Committee confirmed the impact of the fluctuations in the dollar exchange rate on investment projects.
The buying and selling prices of the US dollar in local markets have ranged between 150,500 and 150,250 dinars for days.
The exchange rates of the US dollar against the Iraqi dinar today, Saturday, were as follows:
Selling price 150,250 dinars.
Buying price 148,250 dinars for every 100 dollars. LINK
Stability Of The Dollar Exchange Rate In Iraq
Economy | 06:13 - 07/27/2024 Mawazine News – Baghdad The exchange rates of the US dollar against the Iraqi dinar witnessed stability in local markets today, Saturday.
The exchange rates of the dollar stabilized with the opening of the Al-Kifah and Al-Harithiya stock exchanges, recording 149.550 dinars for every 100 dollars.
The selling price in exchange shops reached 150.250 dinars, while the purchase price reached 148.250 dinars for every 100 dollars. https://www.mawazin.net/Details.aspx?jimare=252142
Within A Week.. More Than One Billion Dollars In Sales From The Central Bank Of Iraq
Posted On2024-07-27 By Sotaliraq 2024-07-27 The total sales of hard currency in US dollars by the Central Bank of Iraq during the past week, during which the auction was opened, amounted to more than one billion dollars.
Our correspondent reported that the Central Bank sold during the past week and for the 5 days in which the auction was opened, one billion, 387 million, 237 thousand, and 049 dollars, at a daily rate of 277 million, 447 million, and 410 dollars, an increase over what was recorded in the previous week, which amounted to one billion, 91 million, 173 million, and 642 dollars.
The highest dollar sales were on Tuesday, reaching 283 million, 69 thousand, and 68 dollars, while the lowest sales were on Wednesday, reaching 274 million, 637 thousand, and 912 dollars.
Our correspondent indicated that foreign remittance sales during the past week amounted to 1 billion, 345 million, 937 thousand and 49 dollars, an increase of 96% compared to cash sales, which amounted to 41 million, 300 thousand dollars. LINK
Oil Sales Via Electronic Payment Exceeded Two Trillion Dinars In Half A Year
July 27, 2024 Implementing projects to support the stability of Diwaniyah electricity and increase Diyala supply hours
Diyala - Salam Al Shamry
Maysan - Ali Qasim Al Kaabi
Sales of the Oil Products Distribution Company, affiliated with the Ministry of Oil, through smart card payment, exceeded the two trillion dinar barrier during the first half of this year.
A statement received by Al-Zaman yesterday stated that (the company's sales using the smart card exceeded two trillion dinars during the first half of this year in a significant way), indicating that (the company introduced the electronic sales service since the beginning of last April, and included all governorates and those dealing with the company from agents of gas and white oil and generators, constructed stations, and basins).
The South Gas Company, affiliated with the ministry, launched the overhead power line project in the Nasiriyah and Al-Gharraf fields, with a capacity of 123 kV.
Investment Project
Yesterday's statement referred to (the operation of the overhead power line project feeding the site of the Nasiriyah and Gharraf gas field investment project with a capacity of 132 kV, and a length of 51 kilometers, which was implemented under contract with the Ministry of Electricity), and explained that (it represents 10 percent of the project stages, which is the first axis of the Nasiriyah gas project), according to the statement, and added that (the project is being linked to the bridge linking the power station and the last point of the overhead line).
In a related context, the General Manager of Maysan Oil Company, Hussein Kazim Laibi, discussed the development plans of Maysan fields with the managers of the Oil Exploration Company, the Contracts and Licensing Department, the Reservoirs and Field Development Department, and the Chinese company Sinopec, plans to develop Maysan fields in Bazargan, Faka, and Abu Gharb.
The Undersecretary of the Ministry of Oil for Extraction Affairs stressed during the meeting (the importance of the ministry's commitment to supporting foreign companies operating in the oil fields), indicating that (these companies are partners in the process of developing the oil sector in Iraq, and are not just a tool operating the fields, which reflects the ministry's orientation towards enhancing cooperation and partnership with international companies).
For his part, the Chinese delegation expressed (its thanks for the support provided by the Ministry of Oil, stressing their commitment to continue developing Maysan fields and sustaining production).
The Drilling Department of the Maysan Oil Fields Operating Authority continues its activities through the main operator, the Chinese company Sinopec, and the operating drilling companies, by implementing drilling contracts, under the supervision of the company’s general manager, and with continuous field supervision by the engineering team in the department, and the engineers residing in the drilling rigs.
A statement received by Al-Zaman yesterday stated that (all the activities and joint work of the department’s people’s officials, the staff residing in the towers, and the reservoirs and geology department, resulted in the drilling of 12 wells in the fields of Bazarkan, Al-Faka, and Abu Gharb, during the first half of this year, in addition to 9 wells under construction, and other wells being completed successively within the annual plan for drilling operations, with the aim of supporting production capacity),
indicating that (the teams completed the drilling of vertical, horizontal, and inclined wells within the Al-Mushrif and Al-Asmari reservoirs, using the latest technologies, most of which targeted the production of crude oil, some for injection, and others for the production of reservoir water, according to the required technical specifications and the standard criteria of the oil industry).
The ministry is moving towards converting 40 percent of crude oil into petroleum derivatives and contributing projects, stressing that the completion of the fixed gas platform project in the Grand Faw Port achieves stability in the operation of power stations.
The Deputy Minister of Oil for Refining Affairs, Hamid Younis, said in a statement yesterday that (the government seeks to implement plans aimed at improving the reality of the oil industries, and converting 40 percent of crude oil into petroleum derivatives, during the current year),
pointing out (the existence of projects with a capacity of 70 thousand barrels in Maysan, Nasiriyah and Diwaniyah, in addition to the 70 thousand barrel unit in Dora, and the same in Qayyarah, in addition to 70 thousand barrels in Haditha), adding that (the total of these projects produces 420 million barrels, in addition to the Faw investment refinery project, the contract for which will be signed in the coming days with a capacity of 300 thousand barrels),
indicating that (this means that the government plans exceed 40 percent of the required quantities), and regarding the project to establish a fixed gas platform in the port of Faw, Younis explained that (the importance of the project lies in enhancing the stability of supply to power stations that operate on dry gas, which cannot be stored in tanks).
Meanwhile, the Minister of Electricity, Ziad Ali Fadhil, explained that the staff of the company operating the Shatt al-Basra gas station line to the Faw station contributes to solving the network bottlenecks in the areas of Abu al-Khaseeb, Sihan, al-Siba and al-Faw.
A statement yesterday said that (the line feeds the Faw station, which is considered the most important joint of the Gulf interconnection project, in addition to its role in discharging loads and providing stable energy).
Electrical Connection
In Diyala, electricity added 100 megawatts to the network in the province. A statement received by (Al-Zaman) yesterday said that (the ministry has completed the second phase of the project to connect with Kurdistan to add 100 megawatts to the network, which contributes to improving energy),
indicating that (the Diyala Electricity Distribution Branch, affiliated with the General Company for Electricity Distribution in the Middle, has completed the requirements of the second phase of the connection with the region, to support the national system),
and continued that (the work included the construction of an alternative 33 kV line with a distance of 22 kilometers, and unloading the loads from the 132 kV power transmission line, Kalar Khanaqin, with the aim of supporting electricity stability and providing energy to the people of Diyala).
The ministry plans to establish a 400-volt station in Diyala to support energy stability and develop the Mansouriya station in the province. The ministry’s spokesman, Ahmed Musa, said yesterday that (Diyala has a specific share of energy according to the Supreme Coordination Authority of the Provinces),
noting that (part of the network operates on the Iranian lines, Mirsad Diyala, and Sarbil Zahab-Khanaqin), adding that (the lines vary in strength, which causes a decline in the hours of electricity supply), stressing (the move to develop the Mansouriya station in the province, in addition to the Diyala 400 station, to enhance the stability of the transmission networks).
The ministry implemented 20 projects to relieve congestion in the Ghammas district in Diwaniyah, noting that the agricultural line in the district was excluded from the scheduled cuts, to support farmers and agricultural workers. The Undersecretary of the Ministry, Nizar Al-Tamimi, said in a statement yesterday that (in implementation of the Prime Minister's directives, the governorate was visited, and the needs of citizens in the district were determined, which prompted the ministry to start projects to relieve congestion, prepare 50 transformers, and increase the hours of preparation in Diwaniyah). LINK
Oil Prices Fall 1.5%, Record Weekly Losses
Saturday 27 July 2024 09:27 | Economic Number of readings: 236 Baghdad / NINA / Oil prices fell by 1.5% at the end of trading on Friday evening, falling for the first time in 3 consecutive sessions.
Oil markets recorded losses for the third week in a row, as the two benchmark crudes (Brent and West Texas Intermediate) fell by about 1.8% each during the week ending today.
Oil prices are witnessing volatile trading between weak demand in China, the world's largest importer of crude, expectations of an approaching ceasefire agreement in the Middle East, fears of a shortage of supplies due to fires in Canada, and a decline in US oil inventories.
At the end of Friday's session, Brent crude futures for September 2024 delivery fell by 1.5% to reach $81.13 per barrel.
US West Texas Intermediate crude futures for September 2024 delivery fell 1.4% to $77.16 a barrel, according to figures compared by the Washington-based energy platform.
Oil prices fell to their lowest level in 6 weeks on Tuesday, and Brent crude closed at its lowest level since June 9, as ceasefire talks in Gaza progressed, as part of a plan set out by US President Joe Biden in May and mediated by Egypt and Qatar. /https://ninanews.com/Website/News/Details?key=1143729
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