Iraqi News Highlights Thursday Afternoon 3-23-23
Iraqi News Highlights Thursday Afternoon 3-23-23
Tlm724 Administrator Bondlady’s Corner
Al-Sudani's Advisor: The Cash Leakage Generated An Illegal Market That Deals With Usury And Interest
Economy| 08:54 - 03/22/2023 Baghdad - Mawazine News, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Wednesday, that the current cash leakage rate is more than 70 percent, while indicating that this leakage generated an illegal market that deals with usury and excessive interest.
Saleh said to the official agency, followed by Mawazine News, that "the customs of settling payments and dealing in paying the prices of transactions within the economic community are still based on a legacy of payment, payment and receipt in cash," noting that "money issued for circulation outside the operations of the banking system is considered a cash leak."
He added, "The aforementioned cash leakage rate amounts to more than 70 percent of the total cash issuance of the Central Bank of Iraq and perhaps more," noting that "this matter does not help monetary policy to apply its tools in monetary stability adequately and comfortably."
He continued, "This is a cash hoarding that deducts from the income cycle and does not help the desired investment spending, in addition to the inactive role of this cash block accumulated outside the banking system, which is exposed to various legal risks, disputes, and assaults on cash ownership rights."
He explained that "if the cash loans provided by the banking system to the public are linked to the goals of economic development and poverty alleviation and with acceptable interest rates provided by bank deposits to the public itself, then the massive cash leakage outside the banking system amounting to more than 70 trillion dinars has made banks shackled to the limits of cash lending." associated with the small deposits of the public they have.”
He stated that "the market and the general population in the private sector are still receiving limited cash lending, which constitutes only 13 percent of the gross domestic product," pointing out that "an important part of that percentage came through the initiatives of the Central Bank of Iraq in the year 2015 and the following years in order to Activating macroeconomic financing and development movement due to the economic recession, although the share of the private sector in bank cash lending in industrialized countries exceeds an average of 106 percent of GDP.
He stated that "the phenomenon of cash leakage and direct cash use came at a time when the world was beginning to switch to digital money that was preceded by electronic payment to reduce transaction costs and raise the efficiency of payments," explaining that "handling liquid cash in our country still constitutes a high cost for cash circulation services, whether in transfers The currency, its calculation, counting and sorting in every single monetary transaction, in addition to the risks arising from the preservation and circulation of large amounts of cash outside the banking system or when settling payments between individuals.
He stressed that "the cash leakage of 70 percent of the current total cash issuance of the Central Bank of Iraq, which amounts to about 70 trillion dinars, has generated an illegal money market that deals with (usury and excessive interest), in which the annual borrowing cost, as illegal cash markets, reaches about 80 percent." annually,” explaining that “the costs are very high for illegal borrowers, which impedes development and increases the costs of unregulated economic activity.” End 29/M99
The Iraqi Stock Exchange Announces The Weekly Trading Indicators
Economy| 03:47 - 03/23/2023 Baghdad - Mawazine News The Iraqi Stock Exchange announced today, Thursday, the weekly trading indicators.
A statement issued by the market management, a copy of which was received by Mawazine News, said, “The market organized four trading sessions during the third week of March 2023, from Sunday 03/19/2023 to Thursday 03/23/2023, as The trading session was not organized for Tuesday, March 21, 2023, as it is considered an official holiday.
She added, "During this week, the following indicators were achieved:
1. The number of shares traded during this week amounted to more than (1) billion shares.
2. The value of shares traded this week amounted to more than (2) two billion dinars.
3. The trading index closed at The market for the first session of the week reached (637.06) points, while the index closed at the end of the week at (643.50) points, achieving an increase of (1.00%) from its closing at the beginning of the session.
4. During the week, more than (1800) buying and selling contracts were executed on the shares of the companies listed in the market. https://www.mawazin.net/Details.aspx?jimare=222682
A Jump In Central Bank Sales Of The Dollar
Economy| 11:28 - 03/23/2023 Baghdad - Mawazine News The Iraqi Central Bank's sales of dollars increased in the currency auction today, Thursday, to reach more than 261 million dollars.
Yesterday, Wednesday, sales recorded more than $213 million.
https://www.mawazin.net/Details.aspx?jimare=222661
The Decline In The Exchange Rates Of The Dollar In Baghdad With The Closing Of The Stock Market
Economy Thursday, March 23, 2023 4:35 PM Baghdad / The National News Center The exchange rates of the US dollar decreased against the Iraqi dinar, today, Thursday, with the closure of the main stock exchange in Baghdad.
The correspondent of the National News Center said, “The central Kifah Stock Exchange in Baghdad closed at 155,700 Iraqi dinars for 100 dollars, while the prices this morning were 156,000.”
He added, "The buying and selling prices in exchange shops in the local markets in Baghdad decreased, as the selling price reached 156,000 Iraqi dinars, while the purchase prices reached 155,000 dinars per 100 dollars." https://nnciraq.com/195333/
Oil Prices Are Falling As Investors Evaluate The Statements Of The US Federal Reserve Chairman
Economy| 09:29 - 03/23/2023 Follow-up - Mawazine News Oil prices fell in early Thursday trading, following three sessions of gains, after Jerome Powell, Chairman of the Federal Reserve (US Central Bank), renewed his commitment to curbing inflation, including the possibility of raising interest rates again.
And by 0540 GMT, Brent crude futures fell 64 cents, or 0.8 percent, to $ 76.05 a barrel, and West Texas Intermediate crude futures fell 72 cents, or 1 percent, to $ 70.06 a barrel.
Both benchmarks reached their highest closing levels since March 14, in a settlement on Wednesday.
Powell said yesterday, Wednesday, that the pressures of the banking sector may lead to a credit crisis, with "clear" repercussions on the US economy, which officials at the US Central Bank expect to slow down more than expected before this year.
The US banking crisis caused fluctuations in the trading of risky assets such as oil during the past week, with investors anticipating the US Central Bank's decision to raise interest on Wednesday.
The data of the US Energy Information Administration showed, on Wednesday, that crude stocks rose by 1.1 million barrels during the week ending on March 17. Analysts polled by Reuters expected inventories to decline by about 1.6 million barrels. https://www.mawazin.net/Details.aspx?jimare=222644
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