Economist Reveals Reasons For Rising Prices Of Goods And Products: Lack Of Government Support And Exchange Rate

Posted On2024-07-26 By Sotaliraq  Financial and economic researcher Diaa Al-Mohsen revealed the reasons for the rise in prices of goods and products in Iraq, indicating that among these reasons is the absence of government support and the rise in the dollar exchange rate in local markets.

Al-Mohsen said, "The problem of rising prices of meat and other products is due to reasons that may include the exchange rate of the dollar against the Iraqi dinar, which is the last reason that caused this increase."

He pointed out that "there are important reasons that the government has not been able to find realistic solutions for, including the weak support for animal breeders and farmers. When we talk about support, it does not necessarily have to be financial, as there is moral support for them that gives them a strong push that the government views them as an important segment in ensuring food security for the consumer."

He noted that "there are several types of this support, including providing feed at subsidized prices, vaccines, seeds and fertilizers, all of which contribute to lowering the prices of the products that these people offer to local markets.

Then, activating the law to protect the local product and activating taxes on imported goods contributes to the interest of animal breeders and farmers in what they offer to the markets and increasing the quantities offered because the local product has a flavor that differs from other imported products."

Al-Mohsen added that “one of the reasons that led to the rise in the prices of meat and other products is the reason related to religious occasions, and it is known to everyone that Iraqis buy large quantities of meat or other agricultural products on such occasions, and this is due to the generosity of Iraqis and their dedication to the love of the Ahl al-Bayt, peace be upon them.

 As for the dollar exchange rates, the monetary authority must find a solution for this matter, by searching for means that result in reducing inflation rates.

Then the executive authority must work to alleviate the impact of the rise in the prices of goods and products by activating the agricultural sector, the manufacturing sector, and the rest of the sectors related to them.

Then we will find a noticeable decrease in the demand for the dollar, which means that the dollar exchange rate will respond to the mechanism of supply and demand, and not as is happening now, where we find a significant increase in the sales of the Central Bank of Iraq of the dollar, and in return the dollar exchange rate rises in the black market.”

Among the most important crops that must be banned from import and approved locally are “wheat, barley, and corn grains, in addition to vegetables and fruits, in addition to livestock products such as meat, dairy, and table eggs, which in turn raise the prices of local products in the country.” LINK

Economist: Faw Port Is An Important Step Towards Sustainable Economic Development And A Major Gateway For Maritime Trade

Posted On2024-07-26 By Sotaliraq  Economic researcher, Haider Al-Sheikh, considered the Grand Faw Port project an important step towards sustainable economic development and a major gateway for maritime trade.

Al-Sheikh said that “the Grand Faw Port is one of the most important strategic projects in Iraq,” indicating that “the project enhances Iraq’s position on the world trade map, and constitutes an important step towards sustainable economic development, in addition to its strategic location that makes it a major gateway for maritime trade in Iraq and the Middle East region.”

He added, "The port contributes to revitalizing the Iraqi economy by providing new job opportunities and enhancing commercial and industrial activities."

The economic researcher pointed out that “the port allows Iraq to export and import goods more easily, which reduces costs and improves the efficiency of transportation and distribution.”

He pointed out that the project “contributes to the development of the southern regions of Iraq by improving infrastructure and services,” noting that “the port is expected to generate significant revenues for the state through customs duties and taxes related to the movement of goods.”

Iraq laid the foundation stone for the large port project in the southern city of Basra more than 13 years ago, and it was described at the time as “the most prominent sign of the new phase in Iraq.”

In addition to the container terminal and port works, the project will include the construction of one of the largest undersea tunnels in the world, leading to the shallow port of Umm Qasr, as well as new roads to improve communications with Basra, according to Global Construction, a website specializing in construction work around the world.

In February, Iraq completed about 60 percent of an undersea tunnel linking the country's southernmost coastal region to international trade links via Turkey, according to Reuters.

The 2,444-metre-long immersed tunnel is expected to run along the road from the major commercial port of Faw in Basra as part of a larger plan to develop the port.

Iraq hopes the tunnel will create a shorter transport corridor between the Middle East and Europe to increase its trade revenues from transporting goods.  LINK

Parliamentary Efforts To Amend The Investment Law To Improve The Iraqi Economy And Attract Foreign Companies

Posted On2024-07-26 By Sotaliraq  The investment law is still looming on the horizon, amid talk of government facilities to develop and strengthen the investment sector, as parliamentary signs have emerged of the legislative house moving towards making amendments to the investment law in order to keep pace with the need and solve the problem in it after many years of its legislation.

The Iraqi Investment Law No. 13 of 2006 consists of 37 articles divided into several axes and paragraphs that regulate investment work in all economic joints within the country. However, experts continue to point out the existence of difficulties that require consideration in order to accelerate the wheel of projects, attract foreign capital, and provide a safe environment for them.

The Parliamentary Committee on Economy and Development called on the Iraqi government to make amendments to 12 paragraphs of the current investment law, with the aim of improving the investment environment and attracting foreign investments to the country.

The committee chairman, Hassan Al-Khafaji, explained that the committee discussed with the relevant parties, including university deans and the National Investment Commission, ways to improve the Iraqi investment law.

Al-Khafaji stated that “the committee was able to obtain the government’s approval to amend 4 out of 12 articles that were proposed, but he considered that the amendments that were approved “are still below the required level.”

Among the most important points discussed by the committee was one related to investment opportunities that investors obtain.

Al-Khafaji pointed out that some unsound companies exploit these opportunities, which leads to the flight of capital and the disruption of projects.

Al-Khafaji stressed that the committee is striving to change this paragraph of the law, to ensure that serious investors have real opportunities to invest in Iraq.

In addition to the amendments to the investment law, the committee also discussed several other economic laws, including laws to combat price increases and open new cities.

These efforts by the committee come within the framework of its efforts to improve the Iraqi economy and attract foreign investments, which will create new job opportunities and improve the standard of living of citizens.

For his part, member of the Parliamentary Economic and Investment Committee, Mohammed Al-Ziyadi, said, “The committee is in the process of amending the investment law in the coming days due to the great need to advance many vital sectors and large projects that are to be built to address crises, such as housing, commercial complexes, and others.”

Al-Ziyadi added, “The National Investment Commission is involved in this amendment and the articles that should be considered are being discussed. The amendment came to consider many unclear points in implementing the law and granting investment licenses to unauthorized parties. The process of granting exceptions from the higher government committees in the Prime Ministry must also be re-corrected.”

He stressed that “exceptions are not always correct, and we must be patient and give the matter importance to the relevant authorities, to consider those exceptions. Therefore, amending the investment law will be accompanied by another amendment to the fair arbitration law that will protect foreign capital from international financial sanctions, and it is on the committee’s table where it will be read initially to stimulate commercial investment in the country.”

Al-Zayadi believes that “the arbitration law is no less important than the investment law due to Iraq’s great need to open up horizons for external trade cooperation through investing foreign funds in its projects.”

He pointed out that “the upcoming amendments to the investment law will address the large bureaucracy in granting licenses and approvals from the relevant government departments and ministries, and support will be high for the investment sector through its new organization.”

It is noteworthy that Iraq is ranked fourth according to the FDI ranking of the best emerging markets for investment issued by the “FDI Intelligence” website, which specializes in global investment affairs for the year 2024. This rank was given to Iraq among 10 countries that were evaluated according to several criteria, including gross domestic product, inflation rate, growth in capital spending in foreign direct investment, and growth rate in foreign direct investment projects.  LINK

Finance Discusses Regulating The Work Of Government Banks With International Auditing Firm Ernst & Young

Thursday 25 July 2024 21:15 | Economic Number of readings: 368  Baghdad / NINA / Minister of Finance Taif Sami discussed with the international auditing and oversight company Ernst & Young the work plan and necessary steps to merge and organize a number of institutions of the Iraqi Ministry of Finance.

According to a statement by the Ministry of Finance: During the meeting chaired by Minister Sami, Thursday, at the ministry's headquarters with representatives of the company, a draft was presented by the auditing company on organizing and restructuring Rafidain and Rashid Banks.

 In addition to discussing the proposed plan and implementation stages and determining the frameworks of the contract and formulating it in line with the priorities of reform and development.

The Minister of Finance stressed the importance of benefiting from the expertise of solid international companies such as Ernst & Young in the field of organizing and restructuring financial institutions. The ministry aims to make Iraqi banks internationally and locally acceptable to provide better services to citizens.

 The auditing company's expertise will also contribute to improving the efficiency and effectiveness of financial institutions, as it is expected that merging and organizing financial institutions will improve the quality of banking services provided and enhance investor confidence in the Iraqi economy. / https://ninanews.com/Website/News/Details?key=1143553

Oil Rises At Settlement On Strong US Economic Data

Friday 26 July 2024 04:20 | Economic Number of readings: 201  Baghdad / NINA / Oil prices closed higher on Thursday, after strong US economic data boosted expectations of higher demand for crude, but concerns about lower Chinese oil imports limited gains.

Brent crude futures for September delivery rose 66 cents, or 0.81 percent, at settlement to $82.37 a barrel, while US West Texas Intermediate (WTI) crude futures for September delivery rose 69 cents, or 0.89 percent, to $78.28 a barrel.

US Commerce Department data showed on Thursday that the US economy grew faster than expected in the second quarter as inflation eased, boosting expectations that the US Federal Reserve will cut interest rates in September.

Lower borrowing costs are expected to stimulate economic activity, which could increase oil consumption.

According to Chinese government data, oil imports and refinery throughput this year are set to decline compared to 2023 due to lower fuel demand amid slowing economic growth.

China's central bank on Thursday unexpectedly cut interest rates in a move to boost the country's struggling economy.  Both crudes had fallen more than $1 a barrel earlier in the session. / https://ninanews.com/Website/News/Details?key=1143593

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