Friday Evening Iraq Economic News Highlights 7-15-22

Friday Evening Iraq Economic News Highlights 7-15-22

The Euro And Its Region Are Under Threat Of Collapse.. How Will The World And Iraq Be Affected Economically?

2022-07-15   Yes Iraq: Baghdad   The eurozone is witnessing overlapping political and economic challenges, amid the emergence of government resignations, rising inflation and signs of the collapse of the euro and the European Union.

While the euro equaled with the dollar to be 1 dollar for each euro for the first time in two decades after one euro was equal to 1.4 dollars, this matter came as the first indication of an economic danger enveloping Europe, as the euro became less attractive to investors with the US Federal Reserve raising interest rates on The dollar, which made the dollar more attractive.

The euro has been losing ground against the dollar since the start of the year, when it was hovering near $1.13, amid a vigorous anti-inflation campaign by the US Federal Reserve, along with broader global turmoil unleashed by Russia's invasion of Ukraine.

And questions are raised about what the decline in the euro prices means and what its effects are on Europe and the world in general.

Now a strong dollar has become a good thing for everyone who owns it, especially Americans, as it will help them get a lot of euros for the dollars they own, which will improve their purchasing power there and spend a “rich” vacation.

On the other hand, the negative effects on Europe due to the decline of the euro will be represented by an increase in inflation, because the decrease in the currency will require printing more euros to buy and import goods from abroad. As for the positive effect, it will be represented in strengthening European exports and industries abroad, which will be cheaper for others.

Also, it is possible for commodity prices, such as grains, to decline, and it is likely to reduce inflation globally, but it rises in Europe, but experts said in statements to the Washington Post, that the decline in the euro also indicates a slowdown in the pace of global trade, which increases recession fears, especially in Europe Union.

And while the 27-nation European Union moved to wean itself off Russian oil, as part of the pressure on Russia, while Moscow sharply reduced gas flows, this has raised costs for Europeans who are still already suffering from the Corona epidemic, to add to the Russian war. Ukrainian.

How Is Iraq Affected?

On the other hand, Iraq, which lives between “the rise of the dollar and the decline of the euro” globally, its gains and losses will be on the same scale,

Economist Nabil Al-Marsoumi says, finally, the euro was par with the dollar after the euro was equivalent to 1.6 dollars in 2008, which is an indication of the inability of the euro to withstand the energy crisis and the crisis of supply chains, and also did not clearly withstand the Ukrainian crisis that afflicted many European countries politically and economically.”

And Al-Marsoumi indicated that "the disadvantages will be more in the coming period, with the approach of winter and the increase in demand for energy products."

And about the impact of the decline of the euro on Iraq, Al-Marsawy indicates that it can be summarized in 4 points.

In general, the decline of the euro will not negatively affect the Iraqi dinar, which is linked to the US dollar. In contrast, the return achieved for Iraq from its cash reserves, mostly denominated in dollars and invested in US Treasury bonds, will increase, as the yield on US two-year bonds rose to 3.111%, while the yield on US Treasury bonds with a two-year term reached 3.111%. Ten years duration is 3.088%.

Because of the price of Iraqi oil in dollars, this gives Iraq the advantage of importing European goods, which will become cheaper after the depreciation of the euro exchange rate, in addition to that, the continued rise of the dollar may lead to a decline in global demand for oil and then a decrease in its prices, which will negatively affect the volume of Iraqi oil revenues.   LINK

Shocking Number.. How Much Is The Percentage Of 'Idle Money' In Iraq?

Article at link    https://baghdadtoday.news/ar/news/195304/A

Economist: The Rise Of The Dollar Compensates For Iraq's Losses From The Decline In Gold Prices

Time: 07/14/2022      {Economic: Al Furat News} The economic expert, Salah Nuri, believes that most of Iraq's transactions are in dollars and the high exchange rate compensates for Iraq's losses from the drop in gold prices.

Nuri told Al-Furat News that: "There are indications of a global economic crisis, but this crisis has a weak impact on Iraq, since most of the country's transactions are in dollars, so it is still high against the euro."

He added, "Also, the Iraqi reserve in the International Central Bank is between the dollar and gold, and this diversity in reserves contributed to balancing the economic situation."

Nouri explained, "That is, the decline in gold prices is offset by a rise in the price of the dollar, and this raises the gains and compensates for the losses in gold prices."

The economist, Duraid Al-Anzi, estimated that Iraq lost at least one billion dinars due to the decline in currencies, including gold.

And Al-Enezi {For Euphrates News} said that the Central Bank of Iraq ranked fourth in the Arab world and forty globally in gold reserves, and that our loss at the least amounted to one billion dinars after this decline.

Gold futures fell, today, Thursday, with the price of the US dollar rising globally.

According to the Comex rating of the New York Mercantile Exchange, gold futures were traded in August at $1,724.65 an ounce at 05:40 GMT.

And the dollar index contracts, which measures the performance of the US currency against a basket of six other major currencies, rose by 0.34% to trade at 108.13 dollars.   From: Raghad Daham   https://alforatnews.iq/news

Dollar Exchange Rates In Local Markets

Economie   2022-07-16 | 04:08  Source:  Alsumaria news  1,785 views   Today, Saturday, the dollar exchange rates witnessed a slight increase in the local markets.

The selling prices of the dollar were 148,550 dinars per 100 dollars, while the purchase prices of the dollar were 148,450 dinars per 100 dollars.

Earlier, the Central Bank of Iraq decided to adjust the exchange rate of the dollar against the Iraqi dinar, as the purchase price of the dollar from the Ministry of Finance amounted to 1450 dinars, and the price of selling it to banks was set at 1460 dinars per dollar, while the selling price to the citizen is  1470 dinars per dollar.  LINK

Oil Prices Are Rising Again

Economie  2022-07-16 | 01:52  1,339 views  Oil prices rose 2.5% after a US official told Reuters that an immediate increase in Saudi oil production was not expected, and as investors questioned whether OPEC had room to increase crude production significantly.

Brent crude futures rose 2.5 percent to $101.60 a barrel, while West Bank crude rose 2.5% to $101.60 a barrelTexas2.5% to $98.16.

On the weekly front, both benchmarks posted their biggest weekly percentage declines in about a month, mainly due to concerns earlier in the week that an impending recession might curb demand.

Fears that the Federal Reserve may choose to raise interest rates by 100 basis points this month, and weak economic data has led to Brent and West abandoning Texas The broker was more than $5 on Thursday to below the closing price on February 23, the day before the war between Russia And the Ukraine, although both contracts recovered nearly all of the losses by the end of the session.

However, analysts expect pressure on oil to continue due to concerns about the global economy, as well as the outbreak corona in China.  LINK

Iraq And Saudi Arabia Sign The Electrical Interconnection Agreement With The Gulf

Economie   2022-07-15 | 16:19  Source:  Alsumaria news   6,362 views  Tomorrow, Saturday, Jeddah, Saudi Arabia, is scheduled to witness an international summit that will discuss issues of challenges and crises facing the countries of the region and the world, with the participation of the leaders of the Gulf Cooperation Council, as well as the leaders of Egypt, Jordan and the United States of America.

The Prime Minister has arrived Mustafa Al-Kazemi Today, Friday, he flew to Jeddah to participate in the summit, and he was received at Madinah Airport by Saudi Crown Prince Mohammed bin Salman.    LINK

Al-Kazemi Reveals From Jeddah A Proposal For Iraq Regarding The Gathered Countries

Policy  2022-07-15 | 17:39  Source:  Alsumaria news   6,987 views  Prime Minister Mustafa Al-Kazemi announced, on Saturday, that Iraq will propose the establishment of a joint development bank among the gathered countries.

Al-Kazemi said, according to " Al-Iraqiya News", that "Iraq has become an important position in international politics and an influential figure among the Arab countries."

He added that "Iraq will propose the establishment of a joint development bank among the assembled countries to be allocated for joint projects," noting that "the joint bank will provide great job opportunities for Iraqi youth."

Al-Kazemi pointed out that "our first goal is development, then development, and previous policies in wasting public money must be overcome," stressing by saying, "We have accomplished the Gulf electrical connection, and it constitutes an important factor in providing cheap energy to Iraq."

Today, Friday, Al-Kazemi arrived in Jeddah to participate in the summit, and was received at Madinah Airport by Saudi Crown Prince Mohammed bin Salman.    LINK

The Ministry Of Electricity Clarifies The Details Of The Joint Interconnection Projects With Saudi Arabia And The Gulf

Iraq   09:27 - 07-16-2022  The Federal Ministry of Electricity revealed the details of joint energy interconnection projects with Saudi Arabia and the Gulf, while confirming that the first phase includes linking 1,000 megawatts with Saudi Arabia.

The ministry's spokesman, Ahmed Musa Al-Abadi, said, "Based on the efforts of the Ministry of Electricity to diversify energy sources and to ensure that it establishes electrical interconnection projects with neighboring countries, a joint linkage was taken with Turkey and with the Hashemite Kingdom of Jordan, and we discussed the issue in detail with the Gulf Interconnection Authority and with the Kingdom." Saudi Arabia".

He added, "After negotiations that lasted (two years) and after signing a memorandum of understanding, it took place today following the visit of Prime Minister Mustafa Al-Kazemi at the head of the government delegation to Saudi Arabia and the signing of the joint linkage agreement with Saudi Arabia and the Gulf," stressing that "the agreement was signed by the Minister of Electricity and Chairman of the Authority Gulf Interconnection and the Saudi Energy Minister.

He explained, "The agreement provides for the establishment of a joint connection between Iraq and Saudi Arabia and between Iraq and the Gulf," noting that "the paths of the lines have been determined, the connection points have been studied, and the mechanisms are also identified, and therefore a joint connection will be established, according to which energy transmission lines will be established."

He continued, "The first phase includes 1,000 megawatts, which will be with the Kingdom of Saudi Arabia," noting that "the electrical interconnection projects would achieve high stability for the electrical network, provide more than one source of energy, and prepare Iraq for entering an important member of the energy market, whether Gulf or Arab.

Even regionally, and then, by virtue of its position, Iraq will be a country that passes and maintains energy security, and perhaps after the stability of the system and the achievement of full processing hours, it will return with economic benefits and that Iraq will obtain a great benefit as a result of its passage and passage of energy.

Al-Abadi pointed out that "the electrical interconnection projects proceeded strongly to diversify energy sources and not rely on a single source, which is gas," stressing that "the efforts today culminated in signing a strategic agreement with the Saudi side and with the Gulf Interconnection Authority, and it was with governmental care and through the government delegation headed by the Prime Minister and with the participation of the Prime Minister. Minister of Electricity".

Earlier, the Iraqi government signed a memorandum of understanding for the Gulf electrical connection with the Kingdom of Saudi Arabia.     https://kirkuktv.net/AR/Details/7511