Saturday Morning Iraq Economic News Highlights 8-26-23
Saturday Morning Iraq Economic News Highlights 8-26-23
Is Iraq Able To Prevent Dealings In Dollars To Restore The "Prestige" Of The Dinar? - Urgent
Economy |Today Baghdad today – Baghdad On Saturday (August 26, 2023), the expert in economic affairs, Mustafa Akram Hantoush, confirmed the difficulty of canceling dealing in dollars, especially since Iraq imports everything in hard currency .
Hantoush told "Baghdad Today" that "the government's tendency to sell cars in Iraqi dinars instead of US dollars is very difficult from a practical point of view, despite the government's attempt to impose pledges on exhibition owners and carry out a massive arrest campaign. "
He added, "The decision is practically difficult to implement, since the car trade passes through a global market that deals in hard currency, because we do not have the possibility of manufacturing cars inside Iraq, and we only have the Mahmoudiya factory ."
He pointed out that "large quantities of cars are imported from abroad and in the currency of the dollar, and therefore they are priced in hard currency, and even if they are priced in dinars, this will be done on the basis of the last price of the dollar, and therefore the citizen will not benefit anything from the process of selling cars in dinars. "
And that "the central bank is trying to strengthen the currency by reducing access to the dollar by traders only ."
The government is trying to control the continuing rise in the exchange rate of the dollar against the Iraqi dinar in the market, about seven months after its official decision to raise the value of the Iraqi dinar at a price of 1320 per dollar .
The government had taken a decision last February to raise the value of the Iraqi dinar against the dollar, after its price at the end of 2020 reached 1,470 dinars per dollar. It was implemented by the previous government to bridge the deficit in expenditures and salaries due to the drop in oil prices in global markets .
The Dollar Is Forbidden
The Ministry of the Interior prevented merchants and citizens from dealing in dollars in markets and shops, and restricted transactions to Iraqi dinars.
It seems that the security solution to the rise in the price of the dollar in the parallel market inside Iraq did not achieve any significant results, but rather complicated the economic scene and led in part to a rise in prices in the Iraqi markets.
Economic specialists point out that the market requires many measures to maintain the stability of the currency, most notably preventing smuggling. LINK
The Dollar Stabilizes In Baghdad And Erbil
2023-08-26 Shafaq News/ The exchange rates of the US dollar against the Iraqi dinar have stabilized in the markets of Baghdad and Erbil, the capital of Kurdistan Region, today, Saturday morning.
Shafaq News agency reporter said that the dollar prices in the Al-Kifah and Al-Harithiya stock exchanges in Baghdad stabilized at 153,000 dinars for every 100 dollars, which are the same prices that were recorded this morning.
Our correspondent indicated that the selling prices also stabilized in exchange shops in the local markets in Baghdad, at 154,000 dinars, while the purchase price reached 152,000 dinars for every 100 dollars.
As for Erbil, the stock exchange does not trade on official holidays, but some exchange offices traded in the dollar, which also recorded stability, as the selling price reached 153,650 dinars against 100 dollars, and the purchase price was 153,000 dinars against 100 dollars. LINK
Iran: The Release Of 7 Times The Money Held In Iraq
SAT, 08-26-2023, TAYSEER AL-ASADI Iran: Today, Friday, the Assistant Foreign Minister for Political Affairs and chief Iranian negotiator, Ali Bagheri Kani, announced the release of nearly 7 times the total amount of money seized and used in Iraq last year.
Ali Bagheri said in a press statement: "Since the past three weeks, we have been able to release nearly 7 times the total money that we used in Iraq last year, in the process of economic activities, and of course we expect an acceleration of the liberation process."
Bagheri explained, "We currently have serious, effective and purposeful interaction with our neighbors and regional and peripheral countries in the political and economic fields, and Iran, with its diplomatic initiatives, has created conditions that require many goals in the field of releasing frozen funds."
In response to a question about whether Iran has other funds frozen in other countries, the Iranian assistant foreign minister said: "Except for South Korea, part of our money is also in Iraq."
Ali Bagheri stated, "The neighborhood policy of the 13th government is based on a win-win game for both sides, and this is what made this policy successful." He explained that "the bilateral relations between Iran and Saudi Arabia are going well, and that the ambassadors of the two countries will be stationed in Tehran and Riyadh in the near future, and this may happen in the next two weeks."
He also pointed out that Iran's accession to the "BRICS" group was "a strategic decision that was followed up at various levels in the country," noting that what happened was an important event.
It Will Destroy The Entire Region.” An American Report: There Is No Solution To The Dispute Between Iraq And Turkey Over The Oil Crisis
Posted On2023-08-26 By Sotaliraq Translated reports Translation: The American Foreign Policy newspaper revealed in a report published, on Friday (August 25, 2023), that the dispute between the Iraqi and Turkish government over oil export operations through the Turkish port of Ceyhan is still continuing without any signs of imminent solutions, stressing that the dispute is now “affecting It destroys the region and beyond.
The newspaper stated, according to what was translated by “Baghdad Today”, that the agreement concluded fifty years ago between the two countries regarding the export of oil through the port of Ceyhan is still so far without solutions, despite the visit of Turkish Foreign Minister Hakan Fidan to Baghdad and the announcement of the imminent “achievement of a historic visit to the president.” Turkish Recep Tayyip Erdogan to Iraq.
And she indicated that “the process of stopping oil exports, which has been going on for five months, is doubly affecting the global oil market in the region in general and the world in particular, as the cutting process led to the loss of the international market about 0.5% of the total international oil exports and nearly 10% of Iraq’s exports.” Which left effects whose consequences became more dangerous with the progress of time on the oil market and its prices,” according to its description.
The newspaper added, "Despite the ongoing talks between the two parties, the Turkish foreign minister refused to acknowledge or address his government's refusal to launch oil exports through the Ceyhan pipeline and port, while the Iraqi oil reserves remained stuck in the port's storage," adding, "There are no indications, until now, about the intention of Turkey re-launching Iraqi oil exports through its port.
The newspaper expected that the continued cutting of oil exports by Turkey would lead to "the complete destruction of the Kurdistan region of Iraq," stressing that "the regional government has been suffering economically for years and is losing the ability to pay the dues of its employees gradually and growing, which has become multiplying in effect as a result of the Turkish position."
The newspaper also indicated that the continued deterioration of economic conditions within the region, along with the continuation of the export crisis with Turkey, will eventually lead to a “civil war” between the two main Kurdish parties, the Patriotic Kurdistan and the Kurdistan Democratic Party, warning that the terrorist organization ISIS will take advantage of the expected civil conflict in the Kurdistan region. To achieve another return to the region, according to its description. LINK
Dollar Exchange Rates In The Iraqi Market
Economy 2023-08-26 | 4,539 views Alsumaria News – Economy Alsumaria News publishes the exchange rates of the dollar against the Iraqi dinar in the Iraqi local markets, for Saturday, August 26, 2023.
The exchange rates of the dollar on the Al-Kifah and Al-Harithiya stock exchanges in Baghdad stabilized at 153,000 dinars for every 100 dollars, while the selling prices also stabilized in exchange shops in the local markets in Baghdad, at 154,000 dinars, while the purchase amounted to 152,000 dinars for every 100 dollars.
And the Central Bank of Iraq decided, earlier, to adjust the exchange rate of the dollar against the Iraqi dinar, as the price of purchasing a dollar from the Ministry of Finance reached 1,300 dinars per dollar and sold it at (1310) dinars per dollar to banks through the electronic platform, and sold at (1320) dinars per dollar. Dollars from banks and non-bank financial institutions to the final beneficiary. LINK
Cutting Off Trade With Iran And Turkey As An "Iraqi Pressure Card"... Who Will Be The Real Loser?
Baghdad today – Baghdad With the persistence of disputed issues and disputes between Iraq and its neighbors Turkey and Iran, especially with regard to the issue of water, the issue of the "economic card" is often raised, and talk is made that Iraq can put pressure on these two countries by cutting off trade with them, while the question arises about who is the real loser. In the event of interruption of trade.
Representative Hussein Mardan considered that the Iraqi markets are in dire need of Turkish and Iranian goods due to the shortage in the local production of these types of goods, while he reviewed 3 reasons why Iranian and Turkish goods have preference in Iraq.
Mardan said in an interview with (Baghdad Today), Friday (August 25, 2023), that "Iraq's exceptional situation in the files of industry, agriculture, and the economy in general imposes on it determinants in exchange mechanisms with neighboring countries, including Iran and Turkey," noting that "Iraq needs their products." to fill the void in the market.
He added, "3 direct reasons for the flow of Iranian and Turkish products to the Iraqi markets are represented by geography, ease of transportation and competitive prices, in addition to the intertwined trade relations that extend for centuries, meaning that it is not an exceptional case arising from recent years."
He pointed out that "Iraq's situation and the weakness of its industrial, agricultural and productive capabilities make closing the borders to the products of neighboring countries fraught with dangers," stressing that "the talk about political pressures behind the flow of goods is inaccurate, but rather it results from a need that is being provided, and when an alternative becomes available, there will be a reduction in its flow." ".
It is often mentioned that the economic card is in the hands of Iraq, which could be used against Turkey and Iran, especially in the issue of the dispute over water.
This conversation leads to an important question, which is, "Who is most affected by the severance of trade with Turkey or Iran?" While the numbers can clearly answer this question.
The average import of Iraq from Turkey is about 12 billion dollars and from Iran between 8 to 10 billion dollars annually, as Iraq depends heavily on the goods of the two countries, and in the event of stopping trade with them, many goods and commodities will increase their prices significantly in the local markets from electrical appliances and even Other food commodities.
While it is possible to replace some of them with local products, other goods are not manufactured locally and cannot be provided.
On the other hand, Turkey's total exports in 2022 amounted to about 255 billion dollars, which means that the amount of the effect of stopping trade between Iraq and Turkey is less than 5% of the total Turkish trade, which may not significantly affect the Turkish economy, which makes Iraq perhaps more They will be affected in the event of stopping trade with Turkey, and this matter is not considered a very profitable card against Turkey.
The total Iranian oil and non-oil exports, in 2022, are approximately $100 billion, which means that what Iraq imports from Iran is equivalent to 10% of its total exports, which makes Iran somewhat more affected than Turkey in the event of stopping trade with Iraq. LINK