Tuesday AM Iraq Economic News Highlights 8-30-22

Tuesday AM Iraq Economic News Highlights 8-30-22

Curfew In Iraq .. Concern About High Prices And An Economist Determines A Solution

Shafaq News/ The imposition of a comprehensive curfew in Iraq has caused concern among Iraqis, especially the earners of them, as a result of the suspension of their work, amid anticipation of what will happen in the future in light of a difficult economic situation, while an economic expert reduced the "fear" as a result of the actions of economic organizations to confront the current situation. .

The economic expert, Rashid Al-Saadi, told Shafaq News, "The private sector and in any country in the world is greatly affected by the turbulence and instability, but in Iraq, there are many measures, especially what professional organizations are doing, including the Baghdad Chamber of Commerce, the Federation of Chambers of Commerce, and the Federation of industries, and others, by helping to avoid this problem.”

He added, "These organizations provide the requirements and needs of citizens, by granting bags (special licenses) to merchants and means of transportation, to ensure that there is no shortage of food, and this is what happened previously in the Corona pandemic crisis, and in other similar cases."

The economic expert expressed his "hope" that the private sector would respond to the instructions of the Chambers of Commerce and the Baghdad Chamber of Commerce in this regard, and not to resort to increasing prices," noting that "the materials are available, and certainly there will be government steps to facilitate the entry of foodstuffs imported from abroad with full flow."

And on the impact of closing markets on citizens, especially the earners, the economist explained, “The private sector will certainly be greatly affected, and they will suffer losses, but this will be avoided by giving them special approvals to transport their goods and open their markets, so there must be procedures between the Ministry of Trade and the Ministry of Interior. and professional organizations, each in his governorate.

On Monday, the Joint Operations Command announced a comprehensive curfew in all governorates of Iraq, from seven in the evening, Monday, until further notice.

And the Iraqi Prime Minister, Mustafa Al-Kazemi, directed, on Monday evening, to suspend the official working hours for tomorrow, Tuesday, in all governorates of the country, and to continue the comprehensive curfew, against the background of recent developments and clashes in the Green Zone.

Violent clashes are taking place with medium and heavy weapons in the Green Zone, which includes government headquarters and diplomatic missions, as the vicinity of the US embassy building was bombed with five mortar missiles, and the Dutch authorities evacuated its embassy staff in Baghdad to another place as a result of the tense situation.

So far, dozens of protesters and Iraqi security forces have been killed and wounded, as a result of the clashes that took place inside the Green Zone, since the riot police began trying to break up the Sadrist protests in the government palace.

This escalation comes against the background of the leader of the Sadrist movement, Muqtada al-Sadr, announcing his retirement from political work and the closure of all political, media and social institutions associated with him, and stressing his followers not to use his name or the name of the movement in any political or media activity.

As a result, the Green Zone and government institutions in a number of southern governorates became a field of clashes after the Sadrists began the "zero hour", turning their sit-in into a general rebellion and mobilization. LINK

Because Of The Ban, The Iraqi Stock Exchange Suspended Its Activity

Shafaq News/ The Iraq Stock Exchange announced today, Tuesday, that it has suspended its activity as a result of the curfew.

The market said in a brief statement received by Shafak News Agency, that "the market will not organize the trading session today, because it is an official holiday."

The market organizes five trading sessions a week from Sunday to Thursday, in which 103 Iraqi joint stock companies represent the sectors of banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, hotels and services.

On Monday, the Joint Operations Command announced a comprehensive curfew in all governorates of Iraq until further notice.

And the Iraqi Prime Minister, Mustafa Al-Kazemi, directed, on Monday evening, to suspend the official working hours for tomorrow, Tuesday, in all governorates of the country, and to continue the comprehensive curfew, against the background of recent developments and clashes in the Green Zone.   LINK

“Closing To Travelers Only” .. Continuing Commercial Traffic Between Iraq And Iran

Shafaq News/ Officials confirmed today, Tuesday, the continuation of commercial traffic between Iraq and Iran, noting that the closure is for travelers only.

A senior Iraqi security official in Diyala told Shafaq News Agency, that the Iranian authorities, in agreement with the Iraqi side, issued orders to stop the influx and entry of Iranian visitors heading to the holy shrines for security reasons against the background of violent events in the Green Zone and several provinces, indicating that the decision is temporary until the security situation is established. The reopening of roads and the lifting of the curfew.

The security official explained that stopping entry of Iranian visitors came as a precautionary security precaution to protect visitors from any security risk, stressing at the same time that the Al-Mandhiriya port is carrying out its commercial activity normally and has not been affected by the violence.

And he indicated that the commercial convoys are still arriving from the Iranian side without any obstacles or obstacles.

For its part, the administration of the Haj Omran border crossing issued a clarification regarding travel to Iran, and said in a statement received by Shafaq News Agency, "We note that the Haj Omran border crossing is closed to citizens traveling to Iran, after we were informed by the administration of the Tamrjin crossing, located on the Iranian side, that the crossing was closed. For citizens to travel to Iran until further notice."

The statement indicated that "commercial traffic at the crossing will remain open normally."

Today, Tuesday, the Iranian Ministry of Interior announced the closure of the land borders with Iraq, against the backdrop of security tensions in central and southern Iraq.

The semi-official IRNA news agency quoted Iranian Deputy Interior Minister for Security and Law Enforcement Affairs Majid Mirahmadi as saying, in the wake of developments, unrest and the imposition of a curfew in several Iraqi cities, the land borders of the Islamic Republic of Iran and Iraq have been closed until further notice.

He also called on visitors to the holy shrines and those who intend to travel to Iraq not to go to the land borders, indicating that news and additional information will be announced by the Ministry of Interior. LINK

The Dollar And Gold Exchange Stopped Trading In Baghdad

Shafaq News/ The main stock exchange for selling the dollar in the Al-Kifah and Al-Harithiya markets, as well as the "wholesale" gold markets in the Iraqi capital, Baghdad, stopped trading today, Tuesday, as a result of the comprehensive ban that has been applied since yesterday, while the dollar exchange rates rose in Erbil, the capital of Kurdistan Region.

Shafak News Agency correspondent said that the main stock exchange in Al-Kifah and Al-Harithiya markets in Baghdad, which is specialized in trading the US dollar exchange, and wholesale gold markets in Al-Nahr Street in the center of the capital, has closed its doors today, as a result of the curfew, and the security events taking place in Baghdad and a number of provinces.

In Erbil, the capital of the Kurdistan Region, the dollar prices witnessed an increase, as the selling price reached 148,400 dinars per 100 US dollars, and the purchase price reached 148,300 dinars per 100 dollars.  LINK

The Dollar Is At Its Highest Level In 20 Years

Arabic and international  Economy News – Baghdad The US dollar soared to its highest level in 20 years against other major currencies on Monday after Federal Reserve Chairman Jerome Powell indicated that interest rates will remain high for a longer period in order to rein in spiraling inflation.

The dollar index, which measures the value of the US currency against a basket of other currencies, rose to a new high it had not reached in two decades at 109.48.

This left the European currencies in the doldrums even though the hawkish statements of the European Central Bank boosted expectations of a rate hike in September.

The euro fell 0.25 percent in early European trade to $0.99415, close to its lowest level in 20 years, while the pound fell to its lowest level in two and a half years.

London markets were closed for a public holiday.

Speaking at a central bank symposium in Jackson Hole, Wyoming, on Friday, Powell said that the Federal Reserve will raise interest rates to the highest level necessary to restrain growth, and will keep them at that level “for some time” to reduce inflation, which has reached more than three times the Fed’s target rate of two percent.    46 . views   Added 08/29/2022 - 5:49 PM  Update 08/30/2022 - 2:07 PM

https://economy-news.net/content.php?id=29506

After Slight Gains, Oil Prices Are Declining

Economie   2022-08-30 | 02:06   1,228 views   The head of the International Energy Agency said on Monday that Russian oil production has exceeded expectations in the wake of the war in Ukraine, which is also affecting prices. But he said Moscow would find it increasingly difficult to maintain production as it began to suffer from Western sanctions imposed over the Ukraine war.

The head of the agency also said that member states could withdraw more oil from the strategic petroleum reserves if they found it necessary when the current program ended.

But the political violence in Iraq, the second largest producer in the Organization of Petroleum Exporting Countries (OPEC), on Monday evening supported prices.

Security forces and factions loyal to Shiite cleric Muqtada al-Sadr clashed in the Green Zone, which includes government headquarters and embassies in the capital, Baghdad, killing 20, in a long-running dispute over the formation of a new government since last year's elections.

"As a major oil exporter with production of more than 4 million barrels per day, the impact of the domestic situation (in theIraq) on oil prices not less than Iran."

Shortage of supply also gave support to prices. Saudi Arabia, the largest producer in OPEC, last week raised the possibility of production cuts

that sources said could coincide with an increase in supply from Iran if it reached a nuclear deal with the West.OPEC +, which includes OPEC members and allied producers led by Russia, will meet on September 5 September to determine production policy.

The American Petroleum Institute is scheduled to release data on crude stocks in the United States on Tuesday, followed by data from the US Energy Information Administration on Wednesday.

A preliminary survey conducted by Reuters On Monday, US crude stocks likely fell 600,000 barrels last week, as did gasoline and distillate stocks.    LINK