Iraq Economic News and Points To Ponder Monday AM 10-28-24
An Expert Comments On The Iraqi Central Bank’s Decision To Reduce Interest Rates: It Is Incomprehensible
October 27, 2024 Baghdad/Iraq Observer Economist Ziad Al-Hashemi commented today, Sunday, on the measures of the Central Bank of Iraq to reduce interest rates.
Al-Hashemi said in a tweet on his account on the X platform, which was followed by “Iraq Observer”, that “the Central Bank of Iraq is following in the footsteps of the Federal Reserve and Western central banks, and reducing interest rates from 7.5% to 5.5% despite its failure to achieve its monetary goals.
He added: “The major central banks around the world have reduced interest rates after inflation rates fell from 10% to below 2%, confirming the success of the high interest rates followed by the major central banks over the past two years in curbing inflation.” He continued:
“As for (in Iraq), the previous interest rates of 7.5% did not succeed in (withdrawing the hoarded cash liquidity) outside the banking system, which exceeds 80% of the mass of the dinar exported, and
it also did not help in reducing (high inflation) which the citizen feels with The continued high prices of goods (which the Ministry of Planning is trying to cover up by issuing illogical data indicating low inflation rates).” Al-Hashemi pointed out that
“despite the failure to achieve the required goals of high interest, and the absence of an urgent and necessary economic need to reduce interest, and the absence of fears that the Iraqi economy will fall into recession, and
there is no need to encourage (already high) spending, the Iraqi Central Bank decided suddenly and without Obvious reasons for lowering interest rates.” He stated that
“such incomprehensible decisions remind and confirm that there is clear randomness in the decision-making process of the Central Bank’s management, as
its decisions depend in many of them on the method of trial and error, reactions, or imitation and imitation of the decisions of others without study, and this is a clear and diagnosed weakness.” In the way this institution works.” He continued by saying: “The decision to reduce interest rates taken by the Iraqi Central Bank is just a (formal measure) for no reason.
It came to create an (illusory impression) among the public of the success of the Central Bank’s measures, just as the measures of the Federal Reserve and the Bank of England succeeded in reducing inflation, and this is far from the truth".
https://observeriraq.net/خبير-اقتصادي-يعلق-حول-إجراءات-البنك-ال/
The Iraqi Central Bank Fined Banks And Exchange Companies About 250 Billion Dinars
Economy Central Bank of Iraq Exchange companies Administrative and financial penalties Iraqi banks 2024-10-27 01:03 Shafaq News/ The Central Bank of Iraq announced on Sunday that the fines imposed on banks and non-banking institutions (exchange companies) amounted to more than 249 billion Iraqi dinars during the past nine months.
A table of the bank, viewed by Shafaq News Agency, showed that the fines imposed on banks and financial companies during the past 9 months, starting from January and until the end of last September, amounted to 249 billion, 889 million, 756 thousand and 16 dinars, indicating that “the fines also included 221 dinars.” Administrative punishment for these banks and non-banking institutions varied between a warning, a warning, and a grace period.”
The table showed that “the month of January witnessed the highest fines on banks and non-financial institutions, as these fines amounted to 98 billion, 277 million, 722 thousand and 62 dinars, with administrative penalties amounting to 17 penalties, while the month of September witnessed the lowest fines, as they amounted to 2 billion, 331 million, 465 thousand and 48 dinars.” With administrative penalties amounting to 13 penalties.
The table did not show the names of the banks on which fines and administrative penalties were imposed.
The Association of Investors in the Iraqi Stock Exchange criticized the Central Bank of Iraq's increase in fines on banks, noting that it would affect the profitability of investors in the shares of these banks.
https://shafaq.com/ar/اقتصـاد/المركزي-العراقي-يغر-م-مصارف-وشركات-صرافة-نحو-250-مليار-دينار
The Era Of Mafias Prosperity In Iraq"... People's Crises Strengthen The Positions Of Currency Smuggling Gangs - Urgent
Politics | Yesterday, 16:32 |Baghdad today – Baghdad Today, Sunday (October 27, 2024), economic affairs specialist Nasser Al-Kanani confirmed the existence of mafias that exploit the crises in Iraq and the region in order to increase currency smuggling operations.
Al-Kanani told “Baghdad Today” that “as soon as the war in Lebanon and Gaza escalated and security tensions throughout the region, specialized mafias emerged working to exploit such security conditions in order to increase the process of smuggling currency from Iraq, and
there are different methods for this smuggling, some of which are carried out.” Through foreign imports, which take place outside the platform.”
He added, “Iraq is working to strengthen its national currency, but there are those who are working to weaken this currency by making the dollar very high against the national currency, and
some are working to limit large commercial transactions exclusively to the dollar, and sell real estate, cars, etc., and this also weakens the national currency.” Despite all the campaigns to prevent internal transactions in dollars.”
The specialist in economic affairs continued, "Iraq cannot take advantage of conflicts and wars to strengthen its national currency, especially as it works hard, internally and externally, to stay away from those wars.
Iraq is aware of the great economic danger if it enters the circle of conflict and wars.".
The war on Gaza and its repercussions, which included multiple regions of the Middle East, dealt a blow to the global economy, especially the economy of Israel, where government spending exceeded $140 billion, and it also lost nearly $15 billion from the attack on Lebanon, according to economic experts.
Speaking about the repercussions of the ongoing conflict in the region on Iraq, Fares Al-Jawari, a researcher and specialist in aviation affairs, reveals that there are significant material losses in Iraq as a result of the recent Israeli bombing of Iran.
Al-Jawari told “Baghdad Today” yesterday, Saturday, that
“there are losses and material damage to the Iraqi air transport sector in particular and the airport sector as a result of the recent Israeli aggression against Iran, and
this impact is clear and tangible during the recent period, but the recent aggression is the most dangerous because it was the cause of a complete cessation of aviation.” "The Iraqi." He stated,
"The cessation means the interruption of the financial revenues that come to the Iraqi government through the passage of aircraft over Iraqi airspace, and this is worth ($450) per aircraft.
According to the latest report of the Iraqi Airports Company, approximately (600) aircraft pass over Iraq monthly, and this means Iraq." He loses 270 thousand dollars in one day.”
He added, "There are other material losses as a result of the planes not arriving at the airports, and their failure to arrive there means providing ground services to them, and this provision is in exchange for a sum of money, and this matter is estimated at around ($2000), and
this means that there are major economic damages and losses as a result of the aggression." "Israel's influence on Iran and the general security situation in the region."
The specialist in aviation affairs confirmed that “Iraqi aircraft are the ones that are directly affected, since most companies were refraining from landing at Iraqi airports, and this means that the major losses fall on the Iraqi Airways Company, and there is a service impact at the airports on travelers through the cessation of flights.”
“This disrupts the work of many travelers, and it has definite economic impacts as well.”
Israel launched a series of air strikes on Iran early on Saturday morning, and four hours after the beginning of the operation, which Tel Aviv called “Days of Response,” the Israeli army announced that it had completed the attack on military targets in Iran, and that all of its aircraft that carried out the attack Iran must return to its bases safely, and that the operation achieved all its objectives. https://baghdadtoday.news/260830-عصر-ازدهار-المافيات-في-العراق.-أزمات-الشعوب-تعزز-مواقع-عصابات-تهريب-العملة-عاجل.html
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