Iraq Economic News and Points To Ponder Thursday Morning 3-19-26
The Chinese Yuan Is Poised For Its Longest Upward Trend Against The US Dollar.
Money and Business Economy News - Follow-up Swiss bank Union Bancaire Privée (UBP) adopts one of the most optimistic stances towards the Chinese yuan, predicting that the currency will continue to rise against the dollar over the next ten years, based on improved economic fundamentals and the accelerating pace of reforms in Beijing.
In a report published in March, the private bank – which manages assets exceeding 150 billion Swiss francs ($190 billion) – raised its confidence level in the strength of the yuan to its highest level, a move equivalent to its bullish outlook on gold. UBP expects the yuan to reach 6.70 to the dollar in the onshore market by the end of 2026.
The bank's chief economist, Carlos Casanova, said the Chinese currency is poised to enter a decade-long structural upswing, supported by strong fundamentals and reforms, according to Bloomberg.
He added that the yuan currently appears to be undervalued by between 10% and 50%, based on indicators such as purchasing power parity, the real effective exchange rate, and interest rate differentials.
The Swiss bank thus joins a growing group of financial institutions betting on the yuan benefiting from Beijing’s efforts to strengthen its global role, as well as pushing the economy towards a greater balance between consumption and production.
The yuan reached a three-year high against the dollar this year before falling by about 0.5% since the outbreak of the Iran war in late February. However, it has outperformed most other global currencies, demonstrating remarkable resilience in the face of soaring oil prices and market volatility.
Short-term pressure... and an expected rise in the medium term
Casanova believes that the dollar's strength may continue in the near term due to investors' preference for safe assets, but the medium-term trend will remain "normal to the path of yuan strength."
He added that the conflict in the Middle East is increasing the pressure on the US debt, which supports our view that the dollar may weaken structurally. https://www.economy-news.net/content.php?id=66901
The Central Bank Of Syria Announces Developments Regarding The Replacement Of The Syrian Pound And The Date For Activating Its Account With The US Federal Reserve.
Banks Economy News - Follow-up The Governor of the Central Bank of Syria, Abdul Qader al-Hasriya, confirmed that Syria’s account at the US Federal Reserve Bank is now ready and operational and will be activated soon, following intensive efforts that began last July as part of Syria’s reintegration into the global financial system.
Al-Hasri said that “the announcement of the reactivation of the account was met with a direct welcome from the US Treasury Department and the US Presidential Envoy, who described the move as historic and constituting support for the recovery of the Syrian economy,” noting that these messages carry important political and economic implications, especially since the sanctions on Syria began with the United States in 1979, and that the current cooperation reflects a trend towards reintegrating the Syrian financial system into the global financial system.
Al-Hasri added: “Having an active account at the US Federal Reserve Bank allows Syria to return to the correspondent banking system and secures clearing and transfer operations in US dollars, which directly impacts the flow of resources from remittances from expatriates and investors, and the return of foreign trade to official banking channels, which enhances liquidity and provides greater opportunities for importing, transferring, and creating job opportunities,” according to the Syrian News Agency “SANA.”
He explained that transfers through official channels will lead to a significant reduction in transfer costs, after eliminating the role of intermediaries and informal links, indicating that transfers through the "SWIFT" system arrive in 77% of cases within just 10 minutes, which enhances citizens' confidence in the banking sector and improves the relationship between banks and their customers.
He pointed out that this step comes within the Central Bank’s vision to build a financial sector that operates according to international standards and leads Syria’s integration into the international financial system, noting that the bank is working in parallel on cooperation tracks with central banks in Canada and Europe.
He said that meetings were held with the Bank of Canada and Canadian financial institutions to discuss opening an account for the Central Bank of Syria there, in addition to meetings with major banks, regulatory bodies and currency printing institutions. Work is also underway on a similar track with the European Central Bank, Germany and France to organize joint banking days and enhance cooperation.
Replacing The Syrian Pound
Regarding the replacement of the new currency, the Governor of the Central Bank of Syria confirmed that about 40% of the circulating cash mass of 42 trillion old Syrian pounds has been replaced, after the percentage was 35%, noting that the process is proceeding smoothly and is expected to accelerate after Eid al-Fitr.
Al-Hasri said that the Syrian economy faces challenges related to the war in the region and its effects on the global economy, from supply chain disruptions and rising energy prices to fluctuations in exchange rates. However, the policies and tools adopted by the Central Bank have contributed to maintaining relative stability in the exchange rate despite the rise of the dollar globally.
The exclusive report revealed that measures have been taken to activate the Central Bank branches in Raqqa and Hasakah, appoint new directors for the two branches, and work to improve the availability of the Syrian pound in the region, stressing that the bank is working daily in coordination with the Ministry of Finance to address the issue of salaries and mitigate the effects of the crisis. https://www.economy-news.net/content.php?id=66762
Dollar Falls In Baghdad And Erbil Markets
2026-03-19 Shafaq News- Baghdad/ Erbil The US dollar opened Thursday’s trading lower in Iraq, hovering around 155,000 dinars per 100 dollars.
According to a Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 154,700 dinars per 100 dollars, down from the previous session’s 155,000 dinars.
In the Iraqi capital, exchange shops sold the dollar at 155,250 dinars and bought it at 154,250 dinars, while in Erbil, selling prices stood at 154,400 dinars and buying prices at 154,300 dinars
https://www.shafaq.com/en/Economy/Dollar-falls-in-Baghdad-and-Erbil-markets-9
Gold Prices Decline In Baghdad, Erbil Markets
2026-03-19 Shafaq News- Baghdad/ Erbil On Thursday, gold prices hovered around 1.03 million IQD per mithqal in Baghdad and Erbil markets, according to a survey by Shafaq News Agency.
Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 1,021,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 1,017,000 IQD. The same gold had sold for 1,047,000 IQD on Wednesday.
The selling price for 21-carat Iraqi gold stood at 991,000 IQD, with a buying price of 987,000 IQD.
In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 1,025,000 and 1,035,000 IQD, while Iraqi gold sold for between 995,000 and 1,005,000 IQD.
In Erbil, 22-carat gold was sold at 1,085,000 IQD per mithqal, 21-carat gold at 1,035,000 IQD, and 18-carat gold at 887,000 IQD. https://www.shafaq.com/en/Economy/Gold-prices-decline-in-Baghdad-Erbil-markets-0
Gold Rebounds As Dollar Pause Offsets Fed Pressure
2026-03-19 Shafaq News Gold rose on Thursday after briefly touching a more than one-month low, as a pause in the U.S. dollar rally offered support, but gains were capped by a hawkish Federal Reserve, which limited hopes for near-term rate cuts.
Spot gold added 0.7% to $4,851.43 per ounce as of 0433 GMT, after falling to its lowest since February 6 earlier in the day. Prices fell 3.7% on Wednesday.
U.S. gold futures for April delivery shed 0.9% to $4,852.70.
"The dollar's momentum has paused today, which has effectively allowed gold to start recouping ground, albeit at a modest pace," said Tim Waterer, KCM Trade chief market analyst.
The pause made greenback-priced bullion cheaper for holders of other currencies.
"Expectations for incoming U.S. rate cuts have been a cornerstone of gold's ascent, but spiking oil prices havedampened hopes for monetary easing, which has somewhat pulled the rug out from under the gold price," said Waterer.
Oil climbed above $110 a barrel after Iran attacked several energy facilities across the Middle East following a strike on its South Pars gas field, adding fresh inflation concerns.
The closure of the Strait of Hormuz kept crude elevated, raising transport and manufacturing costs. While a rising inflation backdrop typically boosts gold's appeal as a hedge, high interest rates reduce demand for the non-yielding metal.
The U.S. Federal Reserve and Bank of Canada both struck hawkish tones on Wednesday as surging energy prices arising from the Iran conflict clouded the inflation outlook.
Both central banks held rates steady, but warned of risks that rising energy costs could fan a more persistent inflation spike.
Meanwhile, U.S. President Donald Trump's administration is considering deploying thousands of U.S. troops to reinforce operations in the Middle East.
Spot gold has fallen more than 9% since the U.S.-Israeli strike on Iran on February 28, pressured by a stronger dollar, which has emerged as one of the clearest "safe-haven" winners.
Spot silver gained 0.4% to $75.63 per ounce. Spot platinum rose 0.7% to $2,036.67 and palladium added 1.8% to $1,501.37. (REUTERS) https://www.shafaq.com/en/Economy/Gold-rebounds-as-dollar-pause-offsets-Fed-pressure
Citibank Will Keep Most Of Its Branches In The UAE Closed Until Further Notice.
Economy News — Follow-up Citibank said most of its branches and offices in the UAE will remain closed until further notice, as part of a broader reaction from the banking sector to the deteriorating security situation due to the war with Iran.
The bank had planned to reopen its branches on Monday, and said in a message to customers on Saturday that its branch in Mall of the Emirates in downtown Dubai would be the only exception, but with reduced working hours.
Banks in the region have asked their employees to work from home as the conflict escalates, particularly after Iran’s Revolutionary Guard threatened to attack US- and Israeli-linked economic centers and banks in the Gulf, according to Reuters.
A message on Saturday said customers should use the online service and the bank's mobile application to meet their banking needs.
The bank stressed in the letter that it "continues to serve customers in the UAE and Bahrain without interruption" despite the branch closures. https://www.economy-news.net/content.php?id=66813
The Civil Aviation Authority Decides To Extend The Closure Of Iraqi Airspace For (72) Hours
Money and Business Economy News – Baghdad The Civil Aviation Authority announced today, Thursday, the extension of the closure of Iraqi airspace to all incoming, departing and transiting aircraft for (72) hours as a temporary precautionary measure.
A statement from the Civil Aviation Authority, received by “Al-Eqtisad News”, stated that “it has been decided to extend the closure of Iraqi airspace to all incoming, departing and transiting aircraft for (72) hours starting from 12:00 noon on Thursday, March 19, 2026 (09:00 UTC) until 12:00 noon on Sunday, as a temporary precautionary measure.”
The statement added that "the decision comes based on the ongoing assessment of the security situation and developments in the regional situation, and will be reassessed in light of new developments."