Iraq Economic News and Points to Ponder Friday Afternoon 11-17-23
Iraq Economic News and Points to Ponder Friday Afternoon 11-17-23
Tlm724 Administrator Bondlady’s Corner
Financial Processors
Economic 11/15/2023 Muhammad Sharif Abu Maysam The basis for the existence of a speculative market at the exchange rate is the increased demand for the dollar to finance foreign trade due to the insufficient local production of goods to cover the minimum local need,
so that importing is the only way to meet the increasing demand due to the high rate of per capita income in light of an unprecedented consumption pattern.
In addition to what has resulted and is being produced by the stifling blockade imposed by the United States on neighboring Syria and Iran, of an increasing demand for the dollar in the Iraqi market by the merchants of these two countries,
in addition to what is resulting from the phase of adaptation to the introduction of technologies and automation of processes in financial and banking work, and the resulting confusions.
Pressured by the requirements of the US Federal Reserve and the US Treasury Department, which turned into practical obligations regarding the use of electronic platforms and systems in exchanges and trades, and
thus the requirement to leave traditional work methods, with the aim of establishing an investment environment that suits the movement of globalization capital, and in which the banking system is at the level of the global banking industry.
Accordingly, addressing the structural imbalances in the local market is a priority for any objective treatment with the aim of creating a balance between the local demand for goods and the ability of the productive sectors to respond,
which contributes to putting an end to imports and reliance on local production in order to preserve monetary stability and stop the bleeding of hard currency under the pretext of financing foreign trade.
On the one hand, on the other hand, confronting the illegal demand for hard currency in local markets and limiting its smuggling by merchants in some neighboring countries, in addition to the need for those who refuse to deal with electronic payment methods from local merchants, “as in cases of tax evasion and other things,” will gradually recede with the entry into force. Technologies and means of electronic payment in all cases of electronic exchanges and trades in the financial system,
starting with the applications and practices of the tax system and customs tariffs, passing through exchange methods, all the way to the existence of a parallel market for exchange rates capable of financing its exchanges without relying on a single source.
While the state of harmony and cooperation between local governments and the central government will contribute to putting an end to cases of currency smuggling whenever these authorities are able to address the weaknesses and imbalances resulting from the accumulations of previous years, which witnessed an extension of the open import policies and market chaos.https://alsabaah.iq/87321-.html
A Special Session Of The House Of Representatives Tomorrow
Iraq Friday, November 17, 2023 Baghdad/National News Center Today, Friday, the Parliament’s Media Department announced that the Presidency of the House of Representatives had received a request from more than 50 deputies to hold an extraordinary session tomorrow.
A statement by the Parliament’s Media Department received by the National News Center stated, “Based on Article 58 First of the Constitution, which reads: First: - The President of the Republic, or the Prime Minister, or the Speaker of the House of Representatives, or fifty members of the Council, invite the House of Representatives to... An extraordinary session, and the meeting will be limited to the topics that necessitated its invitation.”
He added, “The Presidency of the Council received a request from more than 50 representatives to hold an extraordinary session tomorrow to complete the Council’s legislative and oversight tasks.”
Oil Prices... A Slight Increase And A Trend To Record A Fourth Weekly Loss
Friday 17, November 2023 10:06 | Economical Number of readings: 527 Baghdad / NINA / Oil prices rose slightly during Friday’s trading session, but they are heading to record the fourth weekly loss in a row, after falling to the lowest level in 4 months yesterday, Thursday, amid concerns about global demand for crude and a sharp rise in US inventories.
Brent crude futures rose by about 0.14% to $77.53 per barrel, and US crude futures rose by 0.14%, recording $73 per barrel.
The monthly report of both OPEC and the International Energy Agency this week showed a shortage in supplies in the fourth quarter, however, some economic data released around the world this week indicated that demand is lower than expected.
Data also revealed to J.P. Morgan said that tracking global demand for oil showed that the average demand reached 101.6 million barrels per day in the first half of this month, that is, 200 thousand barrels per day less than its expectations for this month./ End
https://ninanews.com/Website/News/Details?key=1090388
The President Of The Republic Arrives In Rome
Friday 17, November 2023 17:57 | Political Number of readings: 208 Baghdad / NINA / The President of the Republic, Abdul Latif Gamal Rashid, arrived in Rome today on an official visit. https://ninanews.com/Website/News/Details?key=1090436
The Size Of Debt And Banking Crises
Economic 11/13/2023 Yasser Al-Metwally The size of the global gross domestic product exceeds the $100 trillion mark, according to estimates by global financial institutions.
In contrast, the size of public debt exceeds or is equivalent to three times the size of the global economy, and
here lies the danger.
Among the risks of public debt is the global financial crises that countries of the world go through at different time periods, and their effects are greatly reflected in the countries’ economies, even in varying proportions, according to the strength of each country’s economy, which is measured by the size of each country’s domestic product and the extent of each country’s ability to bear the burdens.
These crises, and I mean financial crises, therefore their risks cannot be underestimated.
According to the above, the basic rule for financing in financial crises is to adopt the interest rate imposed and controlled by central banks in accordance with their plans to address impermissible inflation with the aim of avoiding the collapse of the value of their currencies and achieving market balance.
At the peak of the economic contraction phase within the economic cycle that the world's economies periodically go through, central banks reduce interest rates with the aim of providing financial leverage capable of reviving their countries' economies, thus providing financial abundance to meet market needs.
This method followed by central banks is called (monetary easing).
Here, banks are encouraged, as a result of lowering interest rates, to raise the ceiling on their credit to the public and expand their acceptance of deposits at low interest rates.
This encourages borrowers to raise consumption, so demand increases and supply for goods and services decreases, prompting an increase in prices, which is one of the most important indicators of impermissible inflation.
Central banks are forced to address this phenomenon, I mean inflation, by raising the interest rate, which is called a policy
(Monetary tightening) This measure, in turn, prompts depositors to withdraw their deposits from banks to benefit from the interest difference.
This causes the banks to lose, and they are forced to sell their bonds and sometimes their assets to meet the binding demands of depositors.
This is the main reason for the collapse of many banks in the world, but some countries protect them from collapse through emergency lending support, and this is what happened with a number of American banks recently.
From here we discover the extent of the damage and the painful effects of debts and their risks on banks.
This is because deposits in banks are like debts to the account of depositors who make a single donation to withdraw their deposits due to raising the interest rate, as well as in financial crises and when the exchange rate fluctuates in fragile economies.
Economists attribute the reason for the collapse of banks to the fact that they engage in debt trading and not capital development, and this phenomenon is mostly diagnosed in commercial banks.
It is clear from the above that Islamic banks develop capital through the process of sharing profits and losses, so the effects of crises on them are lighter and less, and their resistance to staying in the market is higher. This analysis applies in many developed countries.
Perhaps one of the reasons for the collapse of banks is the failure to enact sufficient legislation to protect the banking system, and banks do not have the ability to manage risks and service debt.
In Iraq, the situation is different, as there is a need to reconsider the Banking Law No. 94 of 2004, given that nearly two decades have passed since a bitter experience that needs a legal amendment that is in the interest of protecting the banking sector, especially the rights of the minority and the rights of depositors.
Although there are preventive measures in the banking law, such as guardianship and bank lending, the applications and rescue packages are still really weak. Therefore, our call to reconsider the banking law has become urgent. https://alsabaah.iq/87154-.html
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Provoking Points to Ponder on FEAR for Living the Bold Life by Tess Marshall
76. You shouldn’t feel so bad about being afraid of so many things.” “Why not?” “Because if you weren’t afraid never ever, then you couldn’t be brave never ever.” ~ C. JoyBell C.
77. If you have no faith in yourself, then have faith in the things you call truth. You know what must be done. You may not have courage or trust or understanding or the will to do it, but you know what must be done. You can’t turn back. There is no answer behind you. You fear what you cannot name. So look at it and find a name for it. Turn your face forward and learn. Do what must be done. ~ Patricia A. McKillip
78. When you do what you fear most, then you can do anything. ~ Stephen Richards
79. The greatest achievement was at first and for a time a dream. The oak sleeps in the acorn; the bird waits in the egg; and in the highest vision of the soul a waking angel stirs. Dreams are the seedlings of realities. ~ James Allen