Iraq Economic News and Points To Ponder Monday Evening 7-28-25
Economist: 10 Reasons Behind The Decline In The Dollar Exchange Rate Against The Iraqi Dinar
Monday, July 28, 2025 14:38 | Economic Number of reads: 217 Baghdad / NINA / Economic expert, Manar Al-Obaidi, confirmed on Monday that the continuous decline in the dollar exchange rate against the Iraqi dinar is due to ten main reasons, noting that these factors are intertwined, and their varying impact has collectively contributed to strengthening the dinar in the parallel market.
Al-Obaidi explained in a post on his official Facebook page that the most prominent of these reasons are the state of "economic contraction and declining consumer confidence," the suspension of government investment expenditures, and the tightening of control over border crossings, in addition to traders' shift to official banking platforms, the decline in re-export operations, and the settlement of some foreign companies' dues in petroleum products instead of cash.
He pointed out that "preparations for the electoral process played a role in increasing the supply of the dollar after political blocs resorted to converting their cash reserves into dinars to finance their campaigns, while the increase in the number of foreign arrivals and the cessation of illegal trade with Syria contributed to increasing the availability of the dollar in the markets."
Al-Obaidi pointed out that: “The Central Bank’s withdrawal of a portion of the monetary supply in dinars created additional demand for the local currency, which led to a gradual decline in the dollar,” stressing that: “The arrangement of these reasons reflects the extent of each of their impact on the parallel market, without denying the existence of other undisclosed factors that may contribute to this decline.” /End https://ninanews.com/Website/News/Details?key=1243368
The Dollar Exchange Rate In Baghdad And Erbil Remains Stable.
Stock Exchange The dollar exchange rate stabilized against the Iraqi dinar on Monday afternoon in the markets of Baghdad and Erbil, coinciding with the closing of the stock exchange.
The dollar exchange rate stabilized at the close of trading on the Al-Kifah and Al-Harithiya stock exchanges, recording 139,200 dinars per $100, the same rate as this morning.
As for the selling prices at exchange offices in Baghdad's local markets, they remained stable, with the selling price reaching 140,250 dinars for $100, while the buying price reached 138,250 dinars for $100.
In Erbil, the dollar also remained stable, with the selling price reaching 138,975 dinars per $100 and the buying price reaching 138,950 dinars per $100. https://economy-news.net/content.php?id=58015
An Economic Expert Told NINA: Terminating The Iraq-Turkey Oil Pipeline Contract Poses Major Economic Challenges To Iraq.
Monday, July 28, 2025, 15:40 | Economic Number of reads: 242 Baghdad / NINA / Economic expert Raad Twaij considered the termination of the Iraq-Turkey oil pipeline contract a negative step for the Iraqi side, stressing the need for Iraq to be prepared to develop alternative routes to Turkey, at a lower cost.
Twaij said in a statement to the National Iraqi News Agency ( NINA ): "The suspension of the pipeline transporting Iraqi oil through Turkish territory next year may coincide with new developments or new obligations that may be presented in any new agreement."
He explained that the Turkish strategic perspective is based on the fact that Turkey is a profitable country, and that the comparative advantage in exporting oil is for both Iraq and Turkey.
Therefore, Turkey is trying to obtain the maximum benefit from this pipeline by imposing higher tariffs for the arrival of oil to the Turkish port of Ceyhan, thus turning a historical page on this pipeline, which was marred by some obstacles in Kirkuk's production or the use of the pipeline by other parties, which Turkey considers an "unfavorable tariff."
The economic expert stressed that the Iraqi negotiator must prepare early for this issue and attempt to obtain a favorable transportation cost from the other side, which proposed increasing the fee per barrel to $2.50.
He also stressed the need to work on transporting as much as possible through the pipeline to reduce the cost of transporting each barrel, and to use an accompanying pipeline to transport gas from northern Iraq and export it to Europe via Turkey.
He also emphasized the need to take advantage of the new Turkish proposal to benefit from Turkish investment and propose a partnership in the field of petrochemicals and hydrocarbon production, linking it to the development path within the framework of a comprehensive agreement.
Ankara announced last week the termination of the oil pipeline agreements with Iraq, effective July 2026.
The decision, issued by presidential decree and published in the Turkish Official Gazette, could mark the beginning of a new phase in the Kirkuk-Ceyhan pipeline, which for years has served as a vital artery for Iraqi oil exports to the Mediterranean.
This announcement raises major questions about its political and economic repercussions and poses serious challenges to Iraq in its search for strategic alternatives.
The Kirkuk-Ceyhan pipeline is one of Iraq's main oil export routes, transporting crude oil from oil fields in northern Iraq, particularly in the Kurdistan Region and Kirkuk, to the Turkish port of Ceyhan on the Mediterranean.
The original agreement between Iraq and Turkey was signed on August 27, 1973, and the pipeline became operational in 1977. Its goal was to enable Iraq to export its oil to global markets via the Mediterranean, bypassing the Strait of Hormuz. https://ninanews.com/Website/News/Details?key=1243380
Iraqi Oil Maintains Gains At The Start Of Weekly Trading.
energy Economy News – Baghdad Iraqi oil prices remained remarkably stable during the opening of trading on Monday on the global market, exceeding $70 per barrel at the start of trading.
According to the data, Basra Medium crude reached $70.48 per barrel, while heavy crude reached $67.43 per barrel, with both prices changing by +0.57%.
The data also showed a decline in global oil prices, with British Brent crude reaching $68.85 per barrel, while US West Texas Intermediate crude reached $65.51 per barrel, both down +0.41%. https://economy-news.net/content.php?id=57986
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