Iraq Economic News And Points To Ponder Monday Morning 3-30-26
Israel Approves A Record Budget Of Approximately $271 Billion
Money and Business Economy News - Follow-up The Israeli Knesset on Monday approved the largest budget in Israel’s history, worth 850.6 billion shekels (about $271 billion), in a crucial vote that averted early elections that would have been imposed if it had not been approved before the legal deadline.
The vote passed by a majority of 62 to 55, after a marathon session that lasted more than 13 hours and was repeatedly interrupted by Iranian missile sirens, sometimes forcing MPs to vote from fortified rooms.
The budget saw an unprecedented increase in defense allocations, reaching 143 billion shekels, along with billions allocated to educational institutions as part of the ruling coalition's priorities, including an additional 800 million shekels, according to the Times of Israel.
Meanwhile, Israeli Finance Minister Bezalel Smotrich described the budget as "taking care of everyone and supporting the economy in times of war."
In contrast, opposition leader Yair Lapid attacked the budget, calling it "the biggest theft in the history of the state," amid widespread criticism of the sudden amendments and increased funding for the Haredim despite the controversy over their exemption from military conscription.https://www.economy-news.net/content.php?id=67304
Iraq Is Losing About $11 Million A Month Due To The Suspension Of Air Traffic.
Money and Business Economy News – Baghdad The Echo Iraq Observatory announced on Monday that Iraq is losing about $360,000 a day as a result of the suspension of flights through its airspace, which is equivalent to $10.8 million a month, amid the repercussions of the ongoing war in the region.
The observatory explained that before the outbreak of the war, Iraqi airspace witnessed the passage of about 800 aircraft daily, both local and foreign, which is higher than the previous rates that ranged between 700 and 750 aircraft daily.
He added that the fees for a single aircraft crossing Iraqi airspace amounted to about $450, which provided daily revenues estimated at $360,000.
The observatory noted that the suspension of air traffic came after the Ministry of Transport announced, on February 28, the closure of Iraqi airspace due to security developments in the region.https://www.economy-news.net/content.php?id=67310
Eurozone Bonds Are Nearing Their Worst Monthly Performance In A Decade.
Money and Business Economy News - Follow-up Eurozone government bonds are on track to record one of their worst months in the past decade, driven by inflation fears stemming from rising oil and gas prices due to the war with Iran and the closure of the Strait of Hormuz.
Italy’s 10-year borrowing costs rose to 4.14%, their highest level since mid-2024, while French 10-year bond yields touched 3.9%, the highest since 2009, and Spanish yields rose to 3.7% for the first time since late 2023.
Fund managers believe that rising long-term bond yields are exacerbated by the expected impact on public finances resulting from higher borrowing costs and measures aimed at protecting consumers from rising prices.
Investors are betting that the European Central Bank will raise interest rates three times this year to contain an expected wave of inflation.https://www.economy-news.net/content.php?id=67314
Bloomberg Reveals The Extent Of The Impact Of The Strait Of Hormuz Closure On Oil Flows
Money and Business Bloomberg News reported on Sunday the extent of the impact of the Strait of Hormuz closure on global oil flows. Citing data, Bloomberg stated, "The closure of the Strait of Hormuz has reduced global oil flows by approximately 11 million barrels per day."
It added, "The fuel supply shortage has created a gap of nearly 9 million barrels per day, exceeding the total consumption of several European countries."
Tensions are escalating in the vital Strait of Hormuz, through which about 20% of the world's oil supply passes, amidst the ongoing conflict between Iran and the US-Israeli alliance.
Since February 28, 2016, the United States and Israel have been waging a large-scale military campaign against Iran, resulting in the assassination of Supreme Leader Ayatollah Ali Khamenei and dozens of other commanders. The conflict has been marked by continued exchanges of missile and drone strikes, further escalating tensions in the region.https://www.economy-news.net/content.php?id=67289
Capital Intelligence Awards An Iraqi Bank A Global Rating For Its Ability To Absorb Risks Despite Challenges.
Banks Economy News – Baghdad Capital Intelligence Ratings announced that it has affirmed the National Bank of Iraq’s core financial strength rating at “BB”, along with affirming its long-term and short-term foreign currency ratings at “B”, with a stable outlook.
The bank said in a statement, “These ratings come as part of the periodic annual review conducted by the global rating agency to assess the financial performance of banking institutions. The rating reflects the strength of the National Bank of Iraq’s financial position and growing operational performance, along with its continued commitment to applying the best international banking standards, which enhances the levels of confidence it enjoys among its customers and partners in the market.”
According to the agency's report, the bank has succeeded in developing its balance sheet and capital base to become the largest bank in the Iraqi private sector, driven by a flexible business model and a banking strategy focused on providing banking services to companies and individuals.
Commenting on this achievement, the Managing Director of the National Bank of Iraq, Ayman Abu Dhaim, said, “The confirmation of our credit ratings by a prestigious global agency like Capital Intelligence, with the highest ratings awarded in the Iraqi market, is a testament to the strength of our financial position and the effectiveness of our expansion strategy.
We are committed to continuing to innovate and apply the best international standards to serve our clients and enhance our role as a key partner in supporting the Iraqi economy, especially with our recent investment in the electronic payment sector, which will reshape the digital banking experience in the country.”
Capital Intelligence praised the bank's high operational efficiency, which maintained the best profitability levels among Iraqi banks. It also noted the bank's commitment to the new capital requirements set by the Central Bank of Iraq, which enhances its ability to absorb risks and continue sustainable growth in a challenging operating environment.
The agency also affirmed the bank’s national ratings in Iraq at “iqA” for the long term and “iqA1” for the short term, with a stable outlook for all ratings.
The National Bank of Iraq’s core financial strength rating and national rating are the highest among Iraqi banks covered by Capital Intelligence, reflecting the bank’s robust financial position and asset quality, along with strong liquidity supported by a growing customer deposit base and high profitability levels. https://www.economy-news.net/content.php?id=67313
The Qatar Central Bank Is Taking A Series Of Measures To Protect The Financial System.
Banks Economy News - Follow-up The Qatar Central Bank announced a package of proactive measures to protect the country’s financial system in light of the geopolitical events the country is going through.
In a statement published by the bank, the Central Bank explained that the bank's financial position is in excellent condition, that the liquidity situation in the country is solid, and that capital levels significantly exceed regulatory requirements.
The bank explained that Qatar’s financial system has a strong financial structure that is the result of years of work.
Regarding the new procedures, the bank explained that it will provide unlimited repurchase (repo) facilities in Qatari Riyals, in addition to overnight repurchase facilities, and the bank will launch facilities for term repurchase operations of up to three months.
These measures enable banks to manage their cash flows with a degree of certainty. The bank also added measures to support borrowers.https://www.economy-news.net/content.php?id=67303
The Central Bank Of Kuwait Launches A Stimulus Package For Local Banks.
Banks Economy News - Follow-up The Central Bank of Kuwait has launched a package of stimulus measures for local banks as part of its ongoing monitoring of current geopolitical developments.
The bank said the package included regulatory instructions and macroprudential policy tools with regard to regulatory liquidity requirements and the capital adequacy ratio, ensuring increased flexibility in the local banking sector to support economic activity and the stability of banking operations.
He explained that the measures included reducing the liquidity standards applied to banks, such as the liquidity coverage ratio, the net stable funding ratio, and the regulatory liquidity ratio, in addition to raising the maximum limits for cumulative gaps in the liquidity system and raising the maximum limit available for granting financing. https://www.economy-news.net/content.php?id=67254