Warning Against The Consequences Of Canceling The Dollar Selling Platform In Iraq.. The Green Currency Is Hostage To Jordan And The Gulf States

Financial and economic affairs expert Mustafa Akram Hantoush warned today, Thursday (December 5, 2024), of the consequences of canceling the dollar selling platform to merchants during the next stage, according to what was announced by the Central Bank of Iraq.

Hantoush, a journalist, said, "The Central Bank of Iraq must know very well that the collapse of the Iraqi banking system and the punishment of (32) Iraqi banks without a clear charge over a period of a year and a half is not normal, and from the perspective of banking work, this may be the first incident in the world of this kind."

He added, "The worst thing is the lack of serious solutions from the Central Bank of Iraq to this situation, but rather the move towards cancelling the (fitr) platform by the end of 2024 and handing over the dollar file to banks affiliated with foreign investors and banks (Jordanian and Gulf), which gives the impression that this matter was planned from the beginning."

He continued, "The failure of the Central Bank of Iraq to find solutions for the Iraqi banking sector will fire the mercy bullet at the entire Iraqi banking system and it will become punished as a whole, which will lay off nearly 100,000 workers in the Iraqi private banking sector in favor of Jordan and the Gulf countries," noting that "in the absence of banking competition, the stability of the exchange rate becomes difficult due to the monopoly of the dollar by certain banks and may lead to new fluctuations in the exchange rate."

Hantoush wondered: "Why is the work of the (Fitr) platform not being extended in coordination with the new US administration? Also, why are Iraqi banks not guaranteed to open an account for themselves in correspondent banks in dollars (Citibank/JP Morgan) as the countries of the region have done?"

He pointed out that "the surprising thing is that, until now, the mechanism for cooperation and auditing with Ernst & Young has not been determined or announced regarding transfers in currencies other than the dollar (euro - yuan - lira - dirham), nor have the results of the agreement and contract with Oliver Wyman regarding the (32) sanctioned banks and what their fate will be have not been announced. This means that the banking situation in Iraq is facing many major crises, and the dollar will be difficult to control in the parallel market."    https://burathanews.com/arabic/economic/453500

US Ambassador: We Affirm Our Commitment To The Growing Partnership Between The United States And Iraq

Thursday 05 December 2024 21:23 | Politics Number of readings: 53 Baghdad / NINA / US Ambassador to Baghdad Alenia Romansky affirmed, today, Thursday, her country's commitment to the growing partnership between the United States and Iraq.

The ambassador said in a post on the X website: "Today we celebrated the American National Day at the US Embassy in Baghdad, affirming our commitment to the growing partnership between the United States and Iraq." / End    https://ninanews.com/Website/News/Details?key=1173084

Iraq Buys Gold In Large Quantities.. And An Expert Reveals The Reason

Time: 2024/12/05 Read: 2,691 times  {Economic: Al Furat News} An economic expert revealed the reason behind Iraq’s import of large quantities of gold.

Manar Al-Obaidi said in a statement received by {Euphrates News} that "according to data on exports from countries, specifically the UAE, which has become the largest exporter to Iraq in terms of value, we find that more than 42% of the UAE's exports to Iraq are gold."

He explained that "the main reason for importing these quantities is due to its use as an alternative to the dollar in trade exchange with some countries that are prohibited from dealing with banks, and as a result of the lack of cash dollars in the markets, it is replaced by importing gold from outside Iraq, and then trade is carried out using this metal."

He pointed out that "the expected value of gold from the UAE until the end of 2024 will be between 12-18 billion dollars, in addition to mobile phones, the volume of their exports from the UAE alone ranges between 6-8 billion dollars."

Al-Obaidi continued, "There are approximately 20-24 billion dollars in goods that are imported, which are not used for local consumption, but are reused in foreign trade exchanges."

He pointed out that "inflation rates in Iraq have decreased to less than 3% as a result of the ability to import goods from various entities that are prohibited from dealing with banks using gold and mobile phones."

He stressed that "the hedge that citizens are looking for for their savings in times of crisis tends to buy gold instead of keeping the local currency and also the disappearance of the cash dollar from the market."

The economic expert said, "As a result, Iraq has no alternative except by establishing an electronic clearing system between it and the countries that are prohibited from dealing with banks, and then there will be no need for these complex mechanisms to cover trade exchange without the need to go through the global banking system and the inability to cover imports from these countries."

The World Gold Council announced on November 6 that Iraq had raised its gold holdings to more than 152.5 tons.

According to a table published by the council for November 2024, "Iraq ranked 29th out of 100 countries listed in the table with the largest gold reserves," indicating that "Iraq ranked third in the Arab world after Saudi Arabia and Lebanon."

He added, "Iraq increased its gold holdings to 152.6 tons, after it had held 152.5 tons, which represents 11.5% of its remaining reserves."   LINK

Gold Steady Amid Anticipation Of US Wage Data

Thursday 05 December 2024 08:47 | Economic Number of readings: 168

Baghdad / NINA / Gold prices stabilized on Thursday, as investors awaited data on wages in the United States, to get more signals on the path of the Federal Reserve's monetary policy (the US central bank).

Spot gold recorded $ 2,648.89 per ounce, and US gold futures fell 0.1 percent to $ 2,672.60.

The US wage report is scheduled to be released tomorrow, Friday, followed by inflation data for November next week.

As for other precious metals, silver fell 0.1 percent to $ 31.31 per ounce, platinum fell 0.2 percent, recording $ 939.07, and palladium lost 0.3 percent, recording $ 975.48. / End https://ninanews.com/Website/News/Details?key=1172937

 Oil Rises After OPEC+ Extends Output Cuts Until 2026

Arabic and international   Economy News - Follow-up  Oil prices rose slightly on Thursday after OPEC+ decided to postpone an increase in production until April 2025 and postpone the complete cancellation of cuts by a year until the end of 2026.

By 1424 GMT, Brent crude futures were up 40 cents, or 0.55 percent, at $72.71 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 40 cents, or 0.58 percent, at $68.94 a barrel.

OPEC+, which includes OPEC members and allies such as Russia, had planned to start easing production cuts from October 2024, but slowing global demand and rising production from outside the group have forced it to postpone those plans more than once.

"This will not lead to a supply shortage next year and a surplus is still expected," said Tamas Varga of oil broker PVM.

The gradual removal of the 2.2 million barrels per day cut will begin from April 2025, in monthly increments of 138,000 barrels per day, according to Reuters calculations, and will continue for 18 months until September 2026.

In the United States, a larger-than-expected drop in U.S. crude inventories last week provided some support to prices.

In the Middle East, Israel said on Tuesday it would return to war with Hezbollah if the truce between them collapsed, in which case it would launch attacks deep inside Lebanon and target the state itself.

US President-elect Donald Trump's Middle East envoy has traveled to the region to visit Qatar and Israel to push diplomatic efforts to secure a ceasefire in Gaza and the release of Israeli hostages before Trump takes office on January 20, a source familiar with the matter told Reuters.

 45 views   Added 12/05/2024 - https://economy-news.net/content.php?id=50584 

Central Bank Governor: Prime Minister's Support Accelerated Progress Of Rafidain Bank Restructuring Project

Banks  Economy News – Baghdad  The Governor of the Central Bank, Ali Mohsen Al-Alaq, confirmed today, Thursday, that the support of Prime Minister Mohammed Shia Al-Sudani accelerated the progress of the Rafidain Bank restructuring project.

The bank's media office stated in a statement received by "Al-Eqtisad News" that "the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, chaired an expanded meeting to discuss the project to restructure Rafidain Bank," noting that "the committee for this project included officials from the Ministry of Finance and the Central Bank, the Prime Minister's advisor, and the head of the World Bank mission in Iraq, in addition to members of Ernst & Young as an expert auditor and consultant in the restructuring process."

He added that "the World Bank's Regional Director in Iraq, Emmanuel Salinas, explained the reality of work on this project, in which he presented the opportunities available within the banking work environment in Iraq and the mechanism for developing the restructuring plan in its operational and financial aspects."

According to the statement, Ernst & Young’s restructuring project expert, Firas Kilani, explained that “the project has made great progress since it began in September 2024 and has currently reached 74%, and the next phase of the scope of work will be completed at the end of this month, moving to an advanced stage in this project.”

The governor stressed that "the support of the Prime Minister in this regard has positively accelerated the progress of the project, to reach important stages in the restructuring and development process at Rafidain Bank." 227 views Added 2024/12/05 -  https://economy-news.net/content.php?id=50562

Parliamentary Finance Committee Discusses The Draft Law Amending The First Budget Law

Chairman of the Parliamentary Finance Committee Atwan Al-Atwani  Money and business  Economy News – Baghdad  The Parliamentary Finance Committee discussed, on Thursday, the draft law amending the first law of the Federal General Budget Law (2023-2025).

The committee's media office stated in a statement, which was reviewed by "Al-Eqtisad News", that "the Parliamentary Finance Committee, headed by Atwan Al-Atwani and attended by a number of its members, held its fifth meeting to discuss the draft law of the first amendment to the Federal General Budget Law (2023-2025)."

The statement added that "the meeting discussed the aspects related to this amendment; with the aim of maturing it and preparing it in the best possible way to ensure its implementation and end the problem of the oil dispute between the central government and the regional government and resume oil exports."

The statement explained that "the attendees decided to submit an official request to the Presidency of the Council of Representatives to remove the second reading from the agenda of today's session; in order to complete the discussion of this law, as the Finance Committee is still waiting for the Ministry of Finance to provide the data required of it, regarding the mechanism for financing the amounts related to the costs of producing and transporting the region's oil, according to what was stipulated in the draft law sent from the government to Parliament."

The statement continued, "The meeting also discussed the problem of delayed financing of the governorates, as the representatives indicated - during their interventions - that there was a clear shortcoming in the performance of the Ministry of Finance," stressing "the importance of reconsidering the path of building the general budget, and transforming it from a planning budget to a realistic budget."  85 views   Added 12/05/2024 https://economy-news.net/content.php?id=50583

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/