Thursday Morning Iraq Economic News Highlights 7-20-23

After The US Sanctions.. The Dollar Is Flying In The Iraqi Markets

Economy | 11:13 - 07/20/2023  Baghdad - Mawazine News The exchange rates of the dollar increased against the Iraqi dinar, on Thursday, in the Iraqi markets.  The selling price of 100 dollars was recorded at 151,250 dinars. While the purchase price was recorded at 149,250 dinars.  This comes one day after the United States of America imposed sanctions on 14 Iraqi banks. https://www.mawazin.net/Details.aspx?jimare=231688

State Of Law Confirms That Iraq Is Unable To Distribute With The US Dollar

Policy   2023/07/20  Number of readings: 216   Baghdad - Iraq today:  The Deputy of the State of Law Coalition, Hussein Al-Battat, affirmed that Iraq is not a great economic power and cannot dispense with the dollar in its dealings in order to bypass US sanctions and its decisions in this regard.

Al-Battat said in a press statement, "The independence of the financial decision of Iraq and any other country is linked to the government's decisions and its courage in implementing them in addition to international support," noting that "America, through its power, imposes its influence on the international community in implementing its economic policies.

He added, "Iraq is not a great economic power and cannot dispense with the dollar in its economic dealings with countries, and therefore America's decisions regarding the sanctions it imposes on countries and so on are difficult to pass."

He explained, "When the country becomes a major economic power, it can bypass some interventions that are not consistent with its policies and aspirations in establishing balanced economic relations with all countries."

He pointed out, "Some countries, such as Russia and China, have been able to bypass the American influence on their economy and dealings, being an economic power that has an alternative." LINK

Expert: US Sanctions Will Have Repercussions On The Iraqi Economy 

Economy   2023/07/20  the number of readings: 189  Baghdad-Iraq Today:  Economic expert Munqith Dagher said that the US sanctions that affected Iraqi banks will have repercussions on the Iraqi economy, criticizing the Central Bank.

And Dagher wrote in his tweet on the social networking site Twitter, "A painful blow to the Iraqi banking sector, by penalizing 14 banks by the US Treasury Department for not adhering to the sanctions and dealing in US dollars with Iran. 1. This proves What I said here in more than one tweet about smuggling dollars abroad.

” This increases the demand for it and raises its price

2. The apple of the eye of the Central Bank, which sleeps with its feet in the sun, as these sanctions must They have aftershocks on the banking sector, the price of the dollar and the Iraqi economy. LINK

After Imposing Sanctions On 14 Banks, Dollar Prices Are "Flaming" In Baghdad And The Provinces

Economy  |Baghdad today – Baghdad  Today, Thursday (July 20, 2023), the exchange rates of the dollar recorded a significant increase in the stock exchange and exchange rates in the capital, Baghdad, and the provinces.

According to the "Baghdad Today" correspondent, "the Al-Kifah and Al-Harithiya stock exchanges in Baghdad recorded an increase in the exchange rate, and transactions in the exchanges and markets of northern Iraq were more than their counterparts in the capital, Baghdad, and central Iraq, and came as follows:

In Baghdad:   the selling price of a dollar is 150,000 per 100 dollars,  the buying price of a dollar is 148,000 per 100 dollars

in the north:   the selling price of a dollar is 150,500 per 100 dollars, the buying price of a dollar  is 148,500 per 100 dollars

in the south:   the selling price of a dollar is 150,000 per 100 dollars,  the buying price of a dollar is 148,000 per 100 dollar LINK

America: We Continue To Implement All Our Sanctions Against Iran.. And We Support Iraq's Efforts In The Field Of Energy

International  2023-07-20 | 1,683 views  Alsumaria News - International

The US State Department confirmed that the United States issued a new exemption, the twentieth of its kind, to allow Iraq to pay the value of electricity imports to Iranian accounts registered in the Trade Bank of Iraq.

"The only thing different about this waiver is that this latest package expands the waiver to allow funds to be transferred from those restricted accounts in Iraq to restricted accounts and selected offshore banks," she said.   State Department  Matthew Miller.

  "The other terms of this transaction are the same as previous transactions, which is that these funds will remain in accounts that can only be used for non-sanctionable activity and each transaction must be approved by the Treasury Department," he added.

On the other hand, Miller said that the US  State Department Continues to review the oil-gas exchange agreement between Iraq and Iran and its compatibility with the current sanctions.

He said, "We continue to implement all our sanctions against him Iran... and we strongly support the efforts of the Iraqi government, which seeks self-sufficiency in the field of energy, to improve the basic services it provides to the Iraqi people."

 Reuters was the first to report that the  United States  had moved to allow Iraq to pay the cost of Iranian electricity through non-Iraqi banks, in a move Washington hopes will prevent Iran from imposing blackouts in Iraq as temperatures intensify during the summer.

The agency quoted a US official, who requested anonymity, as saying that Secretary of State Anthony Blinken signed a new exemption related to national security and extends for 120 days, allowing Iraq, which depends heavily on Iranian electricity, to deposit payments in non-Iraqi banks in other countries instead of depositing them in other countries. Accounts restricted in Iraq.

However, funds in non-Iraqi accounts would be restricted, as would those in Iraqi banks, and Iran would need permission from the United States to access those funds, which can only be used for humanitarian needs.

And Tehran had previously pressured Baghdad to obtain permission from the United States to spend that money, by stopping Iranian natural gas exports to Iraq, which reduced its ability to generate electricity and forced it to cut off the electricity supply.

The US State Department expanded the scope of the latest exemption, at the request of the Iraqi government, to allow funds to be deposited with banks outsideIraqIt seems that some of the Iranian pressure will be transferred to other countries.   LINK

An Arab Currency Stronger Than The US Dollar.. "Forbes" Monitors The 10 Weakest Monetary Currencies In The World

2023-07-18 Shafaq News/ The American "Forbes" magazine discussed the 10 weakest currencies in the world, of which the Iranian riyal is the weakest, as well as the Lebanese pound, at a time when the Kuwaiti dinar is actually the strongest currency, even against the US dollar, which remains among the strongest currencies in the world.

The American report, translated by Shafaq News agency, pointed out that the US dollar is seen as the strongest currency in the world and is the most traded, at a certain level, but it is actually not the strongest currency, but rather the Kuwaiti dinar.

 Currency pricing

 The report reviewed how foreign currencies are priced, explaining that foreign currencies are traded in pairs, for example, the purchase price of the US dollar is using the pound sterling, and as a result, the currency is always priced in relation to another currency, which is known as the "exchange rate".

 The report indicated that most currencies are "floating", which means that their value fluctuates according to supply and demand, but some currencies are "pegged", which means that their value relative to another currency (such as the US dollar) is fixed at an agreed upon price.

 The report pointed out that exchange rates affect the cost of goods and services in a foreign currency. For example, if the pound sterling rose against the dollar, vacation expenses in the United States would be less expensive in terms of the pound sterling.

He added that exchange rate movements provide an opportunity for investors seeking to make profits through trading foreign currencies.

 Then the report reviewed the ten most vulnerable currencies in the year, according to an assessment based on the number of foreign currency units that are obtained for one US dollar.

Iranian Riyal

 The report considered that the Iranian riyal is the weakest currency in the world, as one riyal buys only 0.000024 US dollars (meaning that one dollar equals 42,273 Iranian riyals).

He pointed out that the Iranian rial was introduced for the first time in the late 18th century, and was later linked to the pound sterling, and then to the US dollar.

He added that although the currency is now floating, it has remained at around 42,000 riyals to the dollar over the past few years.

 Despite Iran's leadership in oil and gas, economic sanctions have put pressure on the Iranian currency, in addition to political unrest and high inflation.

Vietnamese Dong

 The report stated that the Vietnamese dong is considered the second weakest currency in the world, as one dong buys 0.000042 US dollars (or one dollar equals 23,711 Vietnamese dong), a process that began trading in 1978.

He added that services represent the largest proportion of the gross domestic product, followed by industries such as electronics, energy and textiles, but the currency has been affected by restrictions on foreign investment and the recent slowdown in exports, along with high interest rates in the United States.

 Laotian Cape

 The report pointed out that the Laotian kip is the third weakest currency, as one kip buys $0.000052 (or $1 equals 19,072 Laotian kip), a currency introduced in the fifties of the last century, and it is a floating currency.

 Laos relies heavily on exports such as copper, gold and timber, but the economy has been hit by slowing economic growth, high external debt and inflation, which put pressure on the national currency.

 Sierra Leone

 As for the fourth weakest currency in the world, it is the Sierra Leonean leone, where one leone buys 0.000057 dollars (or the dollar equals 17665 Sierra Leonean leone), and it was introduced in 1964, and is fully floating.

 He added that the main exports of Sierra Leone include timber and minerals such as diamonds, gold and industrial minerals, and the value of the leone currency has declined due to inflation that exceeded 40%, in addition to large debts, slow economic growth and the economic effects of the Ebola virus outbreak.

 Indonesian Rupiah

 The Indonesian rupiah is considered the fifth weakest currency in the world, as 1 rupee buys 0.000067 US dollars (or 1 dollar equals 14,993 Indonesian rupiahs), and was introduced in 1946 and was initially pegged to the US dollar before moving to a free float.

 The report described Indonesia as the largest country in Southeast Asia in terms of gross domestic product, thanks to the services sector.

 Lebanese Pound

 According to the report, the Lebanese pound is considered the sixth weakest currency in the world, as one pound buys 0.000067 US dollars (or the dollar equals about 90,000 Lebanese pounds). The lira was introduced for the first time in the 1930s and is linked to the US dollar.

He pointed out that Lebanon has an economy based on services, but it also exports precious stones, minerals, chemical products, food and beverages.

He added that the lira fell to a record level against the US dollar in early 2021 due to the severe economic recession, high inflation, unemployment, the banking crisis and political unrest.

 Som Uzbekistan

 The report stated that the Uzbekistani som is the seventh weakest currency in the world, as 1 som buys 0.000087 dollars (or 1 dollar equals 11.516 Uzbekistani som), a currency introduced in 1993 and fully floating.

 Uzbekistan is considered one of the leading countries in the export of cotton and has large reserves of minerals, oil and gas. It is implementing economic reforms, but it still suffers from low economic growth, high inflation, unemployment and corruption.

 Guinea Franc

As for the eighth weakest currency, it is the Guinean franc, where one franc buys 0.000116 dollars (or 1 dollar equals 8583 Guinean francs). The currency was introduced in 1959 and is fully floating.

 Although Guinea has an abundance of natural resources such as gold and diamonds, it has suffered from increasing rates of inflation, military unrest and the influx of refugees from neighboring Liberia and Sierra Leone.

 Paraguayan Guaraní

And the Paraguayan guarani comes in ninth place, where 1 guarani buys 0.000138 dollars (or 1 dollar equals 7249 Paraguayan guarani), and it was introduced in 1952 and is fully floating.

 Although Paraguay is a major producer of soybeans, stevia (a sugar substitute) and beef, as well as exports of corn and sugarcane, it has been pressured by soaring inflation, corruption and counterfeiting of currency.

 Ugandan Shilling

 The Ugandan shilling is considered the tenth weakest currency in the world, as the Ugandan shilling buys 0.000273 dollars (or the dollar equals 3669 Ugandan shillings), and it was introduced in the year 1966, and it is floating freely.

 Although the country is rich in commodities such as oil, gold and coffee, its economy suffers from unstable growth, high debt and political turmoil.   LINK