Iraq Economic News and Points to Ponder Thursday Afternoon 2-15-24

Tlm724 Administrator Bondlady’s Corner

An Economic Emphasis On The Importance Of Relying On Private Banks To Improve National Income

Reports | 06:20 - 02/15/2024  Mawazine News – Baghdad  Economic affairs specialists urged the necessity of seeking to direct the loans and credit facilities granted by banks to the private sector, towards activating and increasing production processes, indicating that these facilities exceeded 50 trillion dinars last year 2023, but they did not contribute to increasing the rates of domestic product.

 Overall, stressing at the same time the importance of building more bridges of trust between investors, businessmen and companies with government and private banks with the aim of facilitating the granting of loans directed towards increasing local production.

Unofficial statistics, reported by the economist, Manar Al-Obaidi, showed that “the credit facilities provided by the banking sector to the private sector exceeded the barrier of 50 trillion Iraqi dinars during the past year 2023, which is the first time that this number of credit facilities provided by the banking sector has been recorded.” "The Iraqi."

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Al-Obaidi pointed out that “the value of credit facilities provided to the private sector represents 14 percent of the total Iraqi domestic product,” noting that “despite the increase in the volume of credit facilities provided to the private sector during 2023 by 11 percent compared to the year 2022, the credit ratio The percentage of GDP is still low compared to the percentage of Arab countries, as the percentage reached, according to the World Bank, about 55 percent of the GDP.”

Al-Obaidi explained, “Cash credit facilities increased by 19 percent compared to 2022, as the credit facilities amounted to 40 trillion Iraqi dinars, while the pledged facilities provided by the banking sector to the private sector amounted to 12.5 trillion Iraqi dinars,” suggesting at the same time that “the percentage will rise in the coming years.”

As a result of the increase in the value of deposits with banks, which is considered the most important factor for the banking sector’s ability to provide direct credit facilities to the private sector,” indicating that “increasing the domestic product from non-oil sectors will lead to an increase in demand for credit facilities during the coming years, which will improve the reality of credit provided to the sector.” private" .

In turn, the economic expert, Dr. Ali Daadoush, during his speech to “Al-Sabah” followed by Mawazine News, believes that the first step to the success of the partnership between the two parties is to build confidence between businessmen, merchants and investors from the private sector on the one hand, and with the banks on the other hand.

Daadoush stressed, “In order to empower the private sector, we should move towards activating what he called “moral persuasion” as part of the monetary policy that can be followed with the aim of revitalizing the role of the private sector, by directing the banks by the Central Bank to work in accordance with supporting the private sector by increasing... Investment credit, that is, supporting local production,” indicating that this step “is capable of achieving a lot if the banks move towards this matter.”

Daadoush pointed out that most of the funds granted to the private sector in the past went to finance imports and were not invested in building a production base for local industries, and thus this matter led to deepening imports and weakening local production further.

The Association of Private Banks called on the House of Representatives to intervene to “address” the issue of the US sanctions imposed on it.

A statement by the House of Representatives’ Economy, Industry and Trade Committee, received by Mawazine News, stated that it was “hosting the Association of Iraqi Banks and directors of private banks, to discuss the sanctions imposed by the US Federal Bank on some of them.”

She added, “I listened to a detailed explanation provided by the Association and the directors of private banks about the most important problems and obstacles that private banks suffer from, including “freezing their balances abroad and stopping foreign transactions and transfers with correspondent banks.”

The Association of Private Banks stated, according to the statement, that the ban imposed on these banks “He came in a letter from the Central Bank of Iraq without explaining the reasons,” calling on the House of Representatives and the Parliamentary Economics Committee to “intervene to address this issue in cooperation with the Central Bank and the Council of Ministers.”

https://www.mawazin.net/Details.aspx?jimare=242163

Advisor To The Association Of Banks: Government Support For The Private Sector Is The Main Pillar For Achieving Economic Reform

Economy News – Baghdad  The economic and banking advisor to the Iraqi Private Banks Association, Samir Al-Nusairi, confirmed today, Thursday, that government support and special care for the national private sector is the main pillar for achieving economic reform and is the solution to all the economy’s problems.

Al-Nusairi said, in an interview with Al-Iqtisad News, that “through discussion, analysis and study of the economic reality that Iraq is going through, it is necessary to determine, with logical, scientific and economic analysis, the most prominent axes that require finding solutions in the next stage with the aim of building sound premises for the transition to... Proper construction of the economy and giving a role to the private sector in making economic decisions.

This will be supported by the Prime Minister’s presidency of the Private Sector Development Council, the general assembly of which was held last month in the Ministry of Planning, which is currently responsible, in conjunction with representatives of the private sector, for preparing the internal regulations of the Council in order to initiate actual work to achieve its goals. Private sector development strategy for the years 2014-2030.

Al-Nusairi added: “For the purpose of implementing the strategy, it is required that the government and the private sector in all its banking, industrial, agricultural and service fields participate and cooperate in implementing the government’s plans contained in the government curriculum in the axis of supporting the private sector and developing its activities in directions that achieve interim, medium and long-term goals, and this means involving the private sector in a greater role.” In managing the economy and making economic and development decisions.”

I suggest that “there should be a representative of the private sector in the Council of Ministers in the capacity of observer and participate in expressing opinion and advice, and that the private sector be represented in the boards of directors and opinion bodies in ministries and government production institutions according to the areas of each sector and in the follow-up committees for following up on the implementation of the decisions of the Council of Ministers, and that there be a vision.”

"A clear vision of the role of the private sector for the new phase and the involvement of experts, non-governmental specialists and academics in implementing the desired comprehensive economic, financial and banking reform programme."  119 views 02/15/2024 - https://economy-news.net/content.php?id=40499

Oil Declines After A Signal From The Energy Agency That Demand Growth Is Slowing

Arab and international  Economy News - follow up  Oil prices fell slightly, Thursday, after the International Energy Agency expected a slowdown in growth in demand this year and data showed that US crude inventories increased more than expected.

By 13:24 GMT, Brent crude futures fell 17 cents, or 0.2 percent, to $81.43 per barrel.

US West Texas Intermediate crude futures also fell 16 cents, or 0.2 percent, to $76.48 per barrel.

The International Energy Agency said in its monthly oil market report on Thursday that global demand is losing momentum.

The agency reduced its demand growth forecast in 2024 to 1.22 million barrels per day from 1.24 million barrels.

On the supply side, the IEA expected supply to grow by 1.7 million barrels per day this year, compared to previous expectations of 1.5 million barrels per day.

The two benchmarks lost more than a dollar per barrel yesterday, Wednesday, due to the rise in US crude inventories, with refining falling to its lowest levels since December 2022.

The Energy Information Administration said that US crude inventories jumped by 12 million barrels to 439.5 million barrels in the week ending February 9, far exceeding analysts’ expectations in a Reuters poll of an increase of 2.6 million barrels.

However, EIA data showed that gasoline and distillate inventories fell more than expected.

Gasoline stocks fell by 3.7 million barrels to 247.3 million barrels, compared to expectations for a decrease of 1.2 million barrels.

Distillate stocks fell by 1.9 million barrels to 125.7 million barrels, compared to expectations for a decrease of 1.6 million barrels.

Official data showed that Britain entered a state of recession in the second half of 2023 after the GDP contracted by 0.3 percent in the last quarter of the year, in addition to a contraction of 0.1 percent in the third quarter.

Japan also entered a state of recession at the end of last year, contrary to expectations, giving up its position as the third largest economy in the world to Germany.

Views 18 02/15/2024 - https://economy-news.net/content.php?id=40515

Stability Of The Dollar Exchange Rate On The Baghdad Stock Exchange

Economy   Thursday, February 15, 2024 10:42 AM   Baghdad/National News Center   Dollar prices stabilized today, Thursday, in the markets of the capital, Baghdad.

The price of the dollar on the Al-Kifah and Al-Harithiya stock exchanges recorded 152,300 Iraqi dinars against 100 dollars, which are the same prices that were recorded yesterday, Wednesday.

Selling prices in money exchange shops in local markets in Baghdad reached 153,250 Iraqi dinars, while purchasing prices reached 152,250 dinars for every 100 dollars.   https://nnciraq.com/250530/

The Central Bank Sold More Than $208 Million At Auction Today

Money  and business  Economy News – Baghdad   On Thursday, the Central Bank of Iraq announced its sales of hard currency, amounting to more than 208 million dollars in today’s transactions, according to the official rate of 1310.

Bank data showed that the total cash withdrawals amounted to $22,890,000, while the total amounts of transfers abroad, which include remittances and credits, amounted to $185,517,735, while the total sale amounted to $208,407,735.  Views 63 02/15/2024 - https://economy-news.net/content.php?id=40500

The Stock Market Closed Up By 0.14%.

Market  Economy News – Baghdad  The Iraqi Stock Exchange 60 index rose by 0.41% at the end of Thursday's session, closing at 912.04 points.

This rise was supported by a rise in the shares of the banking, communications and industrial sectors.

The session witnessed the trading of 537.03 million shares, worth 721.82 million Iraqi dinars, through 407 transactions.

Asiacell Communications Company shares rose by 1.10% to close at 10.11 dinars, Al-Mansour Bank shares rose by 0.77% to close at 1.31 dinars, while National Bank shares fell by 1.61% to close at 3.06 dinars, and Baghdad Soft Drinks shares fell by 0.24% to close at Level 4.13 dinars.

Views 65 02/15/2024   https://economy-news.net/content.php?id=40501

To read more current and reliable Iraqi news please visit BondLady’s Corner: https://www.bondladyscorner.com/ 

Points To Ponder on Anxiety about the Future

Don't be afraid your life will end; be afraid it will never begin.  - Grace Hansen

Some people are so afraid to die that they never begin to live.  - Henry Van Dyke

Death is the last enemy: once we've got past that I think everything will be all right. - Alice Thomas Ellis

The worst of all fears is the fear of living.  Theodore Roosevelt

Life is to life in such a way that we are not afraid to die.  - Teresa of Avila

Those who fear life are already three parts dead.  - Bertrand Russell 

http://famousquotesandauthors.com/topics/anxiety_about_the_future_quotes.html