Iraq Economic News and Points To Ponder Tuesday Evening 7-23-24

Two Reasons Behind The Rise In The Dollar Exchange Rates In Iraq.. What Are The Expectations About Its Fate? 
 
Economy/Localities | Today, 16:42 |Baghdad today – Baghdad  Today, Tuesday (July 23, 2024), economic expert Alaa Al-Fahd revealed that
 
there are two reasons behind the return of the dollar exchange rates against the Iraqi dinar in the local market, while
 
he expected it to gradually decline.  Al-Fahd told "Baghdad Today",
 
"The rise in the price of the dollar in the parallel market came due to the
 
     Central Bank of Iraq implementing a new mechanism, selling dollars to travelers, in addition to the presence of a crisis in
 
     checking remittances in the Chinese yuan, and
 
this matter was quickly resolved by the Central Bank of Iraq."".

 Al-Fahd stated,  "We expect that there will be a gradual decline in the dollar exchange rate in the coming days.
 
This rise is common with the implementation of any new policy by the Central Bank of Iraq, as speculators try to exploit this in order to increase their profits."  He added,
 
"The Central Bank of Iraq has discussions and procedures with the US Federal Bank in order to control the exchange rate in the parallel market, and
 
this rise is due to the rise in illicit trade, but the
 
Central Bank of Iraq emphasized control over the dollar file and
 
there are positive discussions with the American side."".
 
Since Eid al-Adha, the exchange rate of the dollar has risen to more than 152 thousand dinars in the parallel market and money exchangers, after hovering around 145 thousand dinars for every 100 dollars.
 
Prices returned to decline last week, with the dollar now hovering around 149 thousand dinars for every 100 dollars.
 
The Central Bank imposed a mechanism that prevents the delivery of dollars to travelers except at airports, which increased the demand for dollars in the parallel market after illicit trade was financed through the parallel market via travelers’ dollars.   
 
https://baghdadtoday.news/254073-سببان-وراء-ارتفاع-أسعار-صرف-الدولار-في-العراق.-ما-التوقعات-حول-مصيره؟.html   

The Role Of The Iraq Stock Exchange In Supporting Monetary Policy In Iraq
 
July 23, 2024 Last updated: July 23, 2024  Lawyer and banking expert Saif Al-Halafi
 
The world is now moving with rapid steps, racing with the wind, in the role of stocks supporting monetary policies, especially since the old classical theories considered that stock markets were not among the tools of monetary policy.

This concept reflected a traditional understanding, where monetary policy was focused on tools such as interest rates, monetary facilities, and monetary reserves. For banks
 
The development of theories and the different models of economic studies vary with the development of research, studies, and the financial market from one country to another.
 
It is difficult to make a theory apply to all different countries and economies, from emerging economies to more complex economies, and because of this dialectic based on trying to understand and establish the nature of the relationship between financial markets and politics.
 
Cash is becoming more evident in many countries
 
Stock markets have become part of the general economic strategy of governments and central banks, especially after the introduction of the idea of ​​cryptocurrencies and digital banks, as they directly affect consumption, investment, and economic confidence.
 
Iraqi market
 
In the case of the Iraqi model and the long years of economic stagnation in that it is a rentier economy that relies mainly on oil to finance its annual budgets and the case of price speculation on the stability of the dollar exchange rate in local markets or what is known as the parallel dollar situation, we can look at the Iraqi market Securities as a supportive tool for monetary policy and influential in the case of a rentier economy.
 
This is done through:
 
1- Encouraging local and foreign investment.
 
The stock market can be a quick and important means of bringing in local capital, especially cash in circulation, and trying to return it to banking incubators and putting it into short-term investments through price maneuvers on the shares of emerging companies listed on the Iraq Stock Exchange for securities or investments. Long-term by pumping these cash blocks into the shares of profit generating companies, which are companies that regularly achieve lucrative annual financial profits,
 
thus reinforcing the idea of ​​withdrawing the hoarded liquidity and returning it to bank incubators in a way that reduces immediate and temporary speculation on the parallel dollar in the local market.

It also creates real opportunities for the entry of foreign capital that moves between emerging markets, which provides them with the opportunity for quick entry, profitable investment, and safe exit.
 
2- Diversification of the economy indicates severe over-reliance on oil.
 
The stock market can be used to encourage local and international investments in sectors that create greater economic diversification than usual and a state of rapid price sales and maneuvers for shares of promising companies in Iraq
 
3- Absorption of liquidity
 
The stock market can play an important role in absorbing excess liquidity in the economy, which helps in controlling inflation, and
 
this depends on the ability of the Iraqi market to be quick in price deliberations of buying and selling through the shares of companies listed in it and putting pressure on companies.
 
Mediation in applying and activating the latest smart systems and phone applications for the daily operations of sales and contracts executed therein, and also encouraging the publication of financial statements of Iraqi companies in international platforms that encourage understanding of the culture of shares of Iraqi companies.
 
One of the most important economic theories that supports that financial markets can be an effective tool in monetary policy is the Wealth Effec[t] theory, which is summarized and almost consistent...in understanding the dialectic of the Iraqi economy and the stock market economy, and is more consistent with the Iraqi model called the theory.
 
Wealth effect theory, written by Gregory Mankiw.
 
Its summary is that the rise in the value of individuals’ financial assets gives them an incentive to withdraw money and re-inject it into purchasing new assets and stocks in order to increase wealth and gives them a feeling of wealth, which prompts them to spend on consumption and develop the national economy.
 
The bottom line is that all of these theories and studies support the idea that financial markets can be an effective and successful tool in achieving economic stability and promoting growth, especially in emerging markets such as Iraq
 

If the Iraqi stock market is exploited in the correct way that brings local and international investments, it can help in diversifying The Iraqi economy and creating new opportunities driving economic integration in Iraq, which makes the Iraqi stock market a valuable tool for monetary policies    https://mustaqila.com/دور-سوق-العراق-لأوراق-المالية-في  

Completion Bonds (Second Issue)

July 23, 2024   :diamonds: demand for trading in national bonds ( Enjaz Bonds / First Issuance the request of the Ministry of Finance, this bank will offer ( Enjaz Bonds / Second Issuance ) on behalf of the aforementioned Ministry for an amount 1,500,000,000,000. (of) high Due to the and at) dinars Iraqi (one trillion and five hundred billion Iraqi dinars) ... For more, click here : https://cbi.iq/static/uploads/up/file-172172636358958.pdf    https://cbi.iq/news/view/2620

Next Year: The Opening Of 3 International Airports

 The first 07/21/2024  Baghdad: Batoul Al-Hassani

 Next year, the Ministry of Transport will open three new international airports within the southern and northern regions of the country.

Director of the Ministry's Media Office, Maytham Al-Safi, explained to Al-Sabah that the ongoing work through local and international companies within the international airports of Holy Karbala, Nasiriyah and Mosul is continuing at an increasing pace and according to the prepared and predetermined timetable for completion.

He revealed coordination with the Imam Hussein Shrine to implement and complete the Karbala International Airport project, which is considered one of the vital projects important to strengthen the aviation infrastructure in the country, as a British company is responsible for its construction at a total cost of $500 million.

 The airport is expected to receive six million visitors annually, making it the largest. in the country.

Al-Safi stated that work is underway at Nasiriyah Airport in Dhi Qar Governorate, by two companies, the

 first of which is Chinese and is carrying out its construction according to international standards, and the

second of Turkey is supervising the implementation, while the designs of Mosul Airport are being completed by a consulting party, in addition to the continuation of contracting, manufacturing and factory inspections. And training for navigational systems, devices and specialized equipment Consecutively.

He stressed that the three airports will be opened next year, which is expected to contribute significantly to

improving the air transport infrastructure in Iraq, in addition to

strengthening economic and tourism ties with various countries of the world and

opening new international destinations through them.   https://alsabaah.iq/99674-.html