Iraq Economic News and Points to Ponder Late Sunday Evening 5-12-24

Saleh Explains The Relationship Between The Rise In Gold And The Decline Of The Dollar And Warns Of A “Double-Edged Sword”

Time: 05/12/2024 19:25:25 Read: 351 times  {Economic: Al-Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, explained the reason for the rise in gold prices in local markets with the noticeable decline in the dollar exchange rate against the dinar.

Saleh told {Al-Furat News} agency, "It is observed at the level of the local market in our country that the dollar in the secondary market is gradually declining relative to the official exchange rate. Despite this, we find that there is a gradual rise in the price of gold in the local market."

He stated, "Gold is imported today and its imports are financed at the fixed official exchange rate of the dinar against the dollar through the Central Bank platform and at the rate of 1,320 dinars per dollar."

Saleh explained, “Due to geopolitical tensions around the world, especially the war in Ukraine and others, they have brought about major developments in the gold hedging policy on the part of some central banks in the world, which constituted an unprecedented rise in global demand for gold and led to a rise in its prices in the world.” Global markets, and here it is noted that the external factor is the basis for the rise in the price of an ounce of gold in the local market.”

He continued, "International financial institutions have issued expectations about the continued rise in gold prices in the coming months, and the expectations come despite the current strength in the levels of the dollar, which is trading at its highest levels in 5 and a half months according to the dollar index, in addition to the high US government bond yields at the highest level in the world."

5 months in light of expectations that the US Federal Reserve is on its way to keeping interest rates high for a longer period of time, which is supposed to represent negative pressure on gold prices.”

Saleh added, "But the strength of global demand for gold as a safe haven in light of the current geopolitical uncertainty, coupled with expectations that global central banks will continue to increase their gold reserves, has led international financial institutions to expect further gains in gold prices during the remainder of 2024." .

He pointed out, "For example, the German Deutsche Bank raised its forecast for gold prices in 2024 to the level of $2,400 per ounce, and expected the price of gold to rise to $2,600 per ounce at the end of 2025. Likewise, the American Citibank Corporation expected the price of gold to reach $3,000." per ounce in the period from the next 6 to 18 months, with gold breaching the level of $2,500 per ounce during the second half of 2024.”

He went on to say, "There is news circulating in global markets about an international group launching its central banks digital currencies denominated in gold to conduct commercial exchanges outside the currencies currently in place in the global monetary system, including China, Russia, and some countries in Africa, Asia, and Latin America. This is a trend that requires high hedging with gold, which has been formed." The other is an unprecedented wave of demand for the yellow metal globally.”

He said, "But we see from our point of view that adopting a global gold reserve system at global market prices for the yellow metal will make the demand for gold grow and rise with the growth of trade and the global economy, and if countries continue to hedge their reserve currencies with gold at open gold prices that are restricted by production and the limited global supply of gold in the face of open demand."

It will generate a monetary system with a high exchange rate, which may hinder its commercial competitiveness as countries that are hedged by gold and whose currency exchange rates are determined by the yellow metal.

He noted that "unless these groups adopt a fixed, moderate and competitive official price for gold itself, their competitive capabilities in their international trade with the countries of the world will be inevitably threatened, and here gold will be a double-edged sword.

At the same time, one should be wary of commercial gold policies in establishing a monetary system on its own, and finally and until... On May 11, 2024, an ounce of gold, which weighs 31 grams, rose to reach about $2,361 per ounce in global markets.   LINK

More Than One Billion And 400 Million Dollars...CBI Sales Within A Week

Economy News – Baghdad  The Central Bank of Iraq's total sales of hard currency for the US dollar amounted to more than one billion dollars during the last week in which the auction was opened.

During the past week and for the 5 days in which the auction was opened, the Central Bank sold one billion, 395 million, 25 thousand, and 507 dollars, at a daily rate of 279 million, 5 thousand, and 101 dollars, higher than what was recorded by the previous one, which amounted to one billion and 348 million. And 235 thousand and 509 dollars.

The highest dollar sales were last Monday, when they amounted to 283 million, 620 thousand, and 620 dollars, while the lowest sales were on Wednesday, when sales amounted to 275 million, 539 thousand, and 423 dollars.

Foreign remittance sales during the past week amounted to 1 billion 313 million 685 thousand 507 dollars, an increase of 94% compared to cash sales that amounted to 81 million 340 thousand dollars.

The sales were in the form of cash and transfers abroad to finance foreign trade, while the selling price of documentary credits and international settlements for electronic cards reached 1,305 dinars per dollar, while the selling price of transfers abroad and the cash sale price reached 1,310 dinars per dollar. 122 views  05/12/2024 - https://economy-news.net/content.php?id=43331

Iraq's Oil Reserves Rise To 160 Billion And 22 International Companies Compete To Develop Gas Fields

Economy | 12:24 - 12/05/2024  Mawazine News – Baghdad  The Ministry of Oil announced today, Sunday, that Iraq's oil reserves have risen to more than 160 billion barrels, while indicating that 22 international companies are competing for gas field development projects, stressing that Iraq has achieved self-sufficiency in liquid gas and has begun exporting the surplus.

The ministry’s spokesman, Assem Jihad, told the official agency: “The fifth and sixth round of supplementary licenses comes in line with the government program that aims to optimize the investment of oil and gas wealth.”

He added, "The Ministry aims to maximize national production, especially of hydrocarbon and gaseous compounds found in the ground," noting that "there are 22 international companies competing for projects to develop these fields."

He pointed out, "Most of the exploration blocks nominated for competition are gas exploration blocks, and therefore this will support the energy sector in Iraq."

Jihad stressed, "The Ministry of Oil has achieved important steps in optimal gas investment projects in Maysan Governorate, at 300 cubic feet, and in Dhi Qar / Nasiriyah and Al-Gharraf Governorates, at 200 million standard cubic feet per day."

He continued, "The contracts concluded by the Ministry regarding the Nahran Omar field will provide 300 million standard cubic feet in two stages, while the contract with Total will provide 600 million standard cubic feet per day."

He pointed out, "The fifth licensing round will achieve more than 800 million standard cubic feet of gas, in addition to the efforts of the Basra Gas Company, where gas investment has reached 1,200 million standard cubic feet per day."

He went on to say: "It is hoped that 200 million standard cubic feet will be added this year, so in total Iraq aims to achieve self-sufficiency to support the energy sector and reach the self-sufficiency stage."

He stressed, "Iraq has achieved self-sufficiency in liquid gas, and the surplus was exported outside the country," noting that "this step is important in strengthening the Iraqi national economy."

According to him, “the government effort focused during the last period on intensifying exploratory operations, and therefore this will lead to maximizing the Iraqi oil reserve,” adding, “It is hoped that during the coming period it will be announced that the Iraqi oil reserve will increase to more than 160 billion barrels, which will enhance the role of Iraq in the global oil market.

Regarding the activities of the fifth supplementary and sixth licensing round for the second day, Jihad explained, “The activities of the second day included competition for 11 fields and exploration plots, and these patches and fields began with the Abu Khaimah field in Al-Muthanna Governorate, which was transferred to the Chinese company Zenoa.”

Jihad added: “Now there is competition for the goat patch in Anbar Governorate. Competition will also take place today for patch No. 7 in Diwaniyah Governorate, Al-Dhafriyah field in Wasit Governorate, Sumer patch in Al-Muthanna Governorate, Tal Hajar in Nineveh Governorate, Al-Khanah in Salah al-Din Governorate, and Anah in Anbar.” Patch No. 11 in Najaf Al-Ashraf, Al-Anbar Plot in Anbar Governorate, and Qalat Saleh Field in Maysan.”

He expressed his hope that “these projects will be referred to competing international companies, in a way that will achieve a major transition in this context,” and tomorrow “the competition will be for another group of fields and exploratory patches.”

Yesterday, Saturday, Prime Minister Muhammad Shiaa Al-Sudani sponsored the ceremony of announcing licenses for the fifth supplementary round and the entire sixth round, which includes a total of 29 projects for oil and gas fields and exploration blocks, distributed among 12 governorates. https://www.mawazin.net/Details.aspx?jimare=247810     

The Iraqi Government Submits A Request To Reduce The Mandate Of The United Nations Mission And Close It Permanently

Political | 05/12/2024  Mawazine News – Baghdad  Today, Sunday, the Iraqi government submitted a request to the Security Council and the Secretary-General of the United Nations to reduce the mandate of the United Nations Mission (UNAMI) and to conduct an objective evaluation of its work in preparation for ending its mission and closing it permanently during the month of May 2023.

The Iraqi government spokesman, Bassem Al-Awadi, said in a statement received by Mawazine News: “The government is committed to its program voted on by the House of Representatives, and within the framework of strengthening the role of constitutional institutions, and during its endeavor to regulate Iraq’s relations with international bodies in a manner consistent with the developments that occurred since 2014.”

 2003, and in order to contribute to employing these relations in a way that serves the national interests, I submitted, during the month of May 2023, a request to the Security Council and the Secretary-General of the United Nations, to reduce the mandate of the United Nations Mission (UNAMI) and to conduct an objective evaluation of its work, in preparation for ending its mission and closing it permanently, due to the absence of "The circumstances under which this mission was established 21 years ago."

Al-Awadi added, “As a result of the Iraqi government’s request, the Security Council formed the Independent Strategic Review Team, which conducted an independent evaluation of the UNAMI mission, in which it concluded that there was no need for its continuation of its work, in view of the positive developments and important achievements that have been achieved in Iraq and in various security, political, economic and social fields.” and its regional and international relations.

He continued, "Based on what was stated in the report of the Independent Strategic Review Team and the government’s conviction that it shared with the countries of the Security Council and the United Nations since last year, the government has requested to end the work of the UNAMI mission by the end of 2025, which is considered a sufficient period during which responsible closure can be achieved."

Stressing that "the government emphasizes that ending the mission's work in Iraq came, in addition to the above, as a natural result of the development of the relationship between Iraq and the United Nations, and a deepening of cooperation at various other levels."

He stated, "The Iraqi government hopes that a Security Council resolution will be issued at the end of this month that includes a response to the Iraqi government's request and the recommendation of the independent UN team, and also organizes the follow-up of some files through a mechanism to be agreed upon, in a way that also ensures the continuation of the work of international agencies operating in Iraq."

At the end of his statement, Al-Awadi thanked the Secretary-General of the United Nations, António Guterres, and his representative in Iraq, Jeanine Plasschaert, and all the workers in the mission, for “the support they provided to Iraq during the past years,” recalling “the great sacrifices made by the workers in the UN missions in Iraq, and in Their introduction is the late Sergio de Mello and his companions, who were victims of a terrorist attack that targeted the mission’s headquarters in August 2003.” https://www.mawazin.net/Details.aspx?jimare=247812

Iraq Recorded An Increase In Its Oil Exports To The United States Last Week

Sunday 12, May 2024 09:23 | Economical Number of readings: 349

Baghdad / NINA / The US Energy Information Administration announced on Sunday that Iraq's oil exports to the United States rose during the past week.

The administration said in a table: “The average US imports of crude oil during the past week from 9 major countries amounted to 5,997 million barrels per day, an increase of 432 thousand barrels per day compared to the previous week, which amounted to 5,565 million barrels per day.”

She added, "Iraq's oil exports to America amounted to 326 thousand barrels per day last week, an increase of 19 thousand barrels per day from the previous week, which amounted to 307 thousand barrels per day."

The administration indicated that “most of America’s oil revenues during the past week came from Canada, followed by Mexico, Saudi Arabia, then Nigeria, while imported quantities of crude oil continued, from Brazil, Ecuador, Colombia, and from Libya, at a rate of one thousand barrels per day.”/ End 11   https://ninanews.com/Website/News/Details?key=1126016

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