Tuesday Morning Iraq Economic News Highlights 1-3-23

Tuesday Morning Iraq Economic News Highlights 1-3-23

Will the exchange rate of the dollar be fixed on the (153 thousand) .. The Sudanese advisor explains

2023-01-03 03:51   Shafaq News/ The financial and economic advisor to the Prime Minister, Mazhar Muhammad Salih, commented today, Tuesday, on the possibility of the dollar exchange rate remaining at (153,000) for every $100 fixedly.

Saleh told Shafaq News agency; It is "with the improvement in the degree of disclosure in commercial transactions and the increase in their transparency that require funding in dollar currency from the window of the Central Bank of Iraq, the temporary gap between supply and demand for foreign currency will shrink."

He added, "This means that the flexibility of monetary policy intervention in the exchange market to restore market stability will accelerate, and this is what we expect in the coming days for all exchange markets to settle between the price of 1455-1460 dinars per dollar."  LINK

An Expert Suggests Linking The Local Currency To Gold After Pessimistic Expectations

January 2, 2023  Opening new outlets for selling the dollar, and the central reserve exceeds 99 billion

An expert suggests linking the local currency to gold after pessimistic expectations

Baghdad - Qusay Munther    The Director of the International Monetary Fund, Kristalina Georgieva, said earlier that the increase in Corona infections in China is disturbing news for the global economy.

And she indicated in a statement yesterday that (the escalation of Corona cases in China carries bad news for the global economy in the short term), and she added that (the European Union was severely affected by the war in Ukraine, and half of its countries may enter a recession next year),

 stressing that (this year will be more difficult than precedent for most of the world's economies), and Georgieva explained that (the future prospects of emerging markets are more dangerous due to debt levels and the strength of the dollar), and she expected that (the global economy would be in a state of recession during the current year).

In addition, the Governor of the Central Bank, Mustafa Ghaleb Makhaif, affirmed that the bank is open to strengthening banking relations with the countries of the world. A statement received by Al-Zaman yesterday said that (the bank’s governor met with the Chinese People’s Ambassador to Iraq Cui Wei, and during the meeting they discussed aspects of bilateral cooperation between Baghdad and Beijing and facilitating the movement of banking transactions and trade exchange in accordance with international standards), and the governor confirmed that (the bank is open to Strengthening its banking relations with the countries of the world to serve the interest of the local banking sector.

The bank expanded the outlets of banks to sell the currency to 20 banks. And the statement indicated that (it was decided to expand the number of bank outlets for selling foreign currency from 10 to 20 banks), and indicated that (the bank decided to increase the amounts allocated to these banks weekly, to meet the largest possible number of those covered by the purchase of foreign currency in accordance with the instructions and controls issued by it),

and continued That (the banks are Mosul, Assyria, the Islamic Spectrum, the Secretary of Iraq, the Commercial Region, the South, the World, the Islamic National, the Investment, the Islamic Alpha, the Trust, the Islamic Hermit, across Iraq, Zain Iraq, Hammurabi, the Islamic Rajeh, the Union, the Sammthar, the first Iraq and the Islamic International).

In a development, the bank launched the electronic platform for foreign trade. And Deputy Governor Ammar Hamad confirmed in a statement yesterday that (the Central Bank witnessed the launch of the work of the electronic platform for foreign trade), and he continued that (work on this platform continued for more than a year and a half with the aim of organizing the process of external financial transfer and financing foreign trade), and indicated that (this platform is The only way and way to finance foreign trade),

noting that (private and government banks have sufficient information about the mechanism for using the platform), and he went on to say that (documentary credits will be financed at a subsidized exchange rate of 1465 dinars per dollar), and he pointed out that (the platform is an opportunity for traders, investors and owners companies to finance their trade and financial work), and went on to say that (the bank's reserves of currency amounted to more than 99 billion dollars).

The currency exchange rates witnessed stability in the local markets. The selling prices of the dollar were recorded at 153 dinars per hundred dollars, while the buying prices of the dollar were recorded at 152,800 thousand dinars per hundred dollars.   LINK

While It Continues To Rise In Iraq, Egypt Is “Turning” Against The World Bank To Solve The Dollar Problem

Posted On2023-01-02 By Sotaliraq   Today, Monday, the Egyptian authorities announced their move to “control” the exchange rate of the Egyptian pound against the dollar, after the local currency witnessed a decline against the dollar due to the conditions imposed by the World Bank on borrowing countries, including Iraq.

The Egyptian authorities, according to what Al-Sharq Al-Awsat reported on its English page and translated (Baghdad Today), announced that it “will take measures to limit the circulation of the dollar on the black market and stop the floating of the currency,” noting that “the Egyptian measures are a “coup” against the conditions imposed by the World Bank on countries borrowed from it.”

The conditions of the World Bank to float the currency in the market and reduce local support for the local currency against the dollar, greatly affected the rise in exchange rates for the dollar against the dinar, as I showed (Baghdad Today) earlier, as Iraq continues to cooperate with the World Bank in dealing with the local economy according to what is between via its official website.

Edited by: Shams   Baghdad Today – translation    LINK

The Dollar Crisis Is Pushing The Government In A Narrow Box, And The Sudanese Are Heading To Diversify Revenues

Posted On2023-01-03 By Sotaliraq  Baghdad / Hussein Hatem   The exchange rates of the dollar are still fluctuating after the recent rise, which approached 160,000 dinars for every 100 dollars, as it is almost stable at the 150,000 mark.

The government of Muhammad Shia al-Sudani is trying to diversify sources of revenue to maintain the stability of the Iraqi economy, at a time when the Finance Committee confirmed that the exchange rate of the dollar will be 1450 dinars for every one dollar.

And the Prime Minister confirmed, yesterday, Monday, that “the exchange rate fluctuations and their impact on the Iraqi economy made us stick to the inevitability of economic reform, support for agriculture, industry, tourism and trade, instead of Iraq being a market for imported goods and a passage for smuggling hard currency and money laundering,” noting that “ Iraq has an opportunity to rise as an industrial country, with an industrial identity, and the government is supportive of the industrial sector in this path,” according to a statement by his media office.

In turn, Moein Al-Kadhimi, a member of the Finance Committee in the House of Representatives, said in an interview with (Al-Mada) that “the rise in dollar exchange rates during the last month of last year negatively affected the local market and the citizen.”

Al-Kazemi added, "The treatments were fast, and the exchange rates will return to what they were (approximately 145,000 dinars per 100 dollars)."

He pointed out, "The Prime Minister is trying to implement his government program accurately, by diversifying sources of income and encouraging the private sector, agriculture and industry, and not being satisfied with oil financial revenues."

Al-Kadhimi stressed, "The need to reduce unnecessary expenditures and increase investment expenditures in order to transform the Iraqi economy from a rentier one to an economy with multiple dimensions."

As for the price of the dollar in the 2023 budget, the member of the Finance Committee explained that “the price will remain constant as it was in the 2021 budget (1145 for every 100 dollars), while the price of a barrel of oil will range between 62-65 dollars.”

And he expected, “The arrival of the draft public financial budget law for the year 2023, with the beginning of the legislative term of the House of Representatives,” stressing that “any delay in the draft budget law will not affect the salaries of employees.”

In turn, Mazhar Muhammad Salih, the financial advisor to the Prime Minister, said in an interview with (Al-Mada) that “the fluctuations witnessed by the exchange markets in Iraq during the past period are not due to economic reasons, and that the financial situation in Iraq is at its best.”

Saleh added, "Iraq's reserves of foreign currency exceeded $100 billion, and the current account surplus rate amounted to about 15 percent."

He pointed out, "What happened was as a result of regulatory controls that linked the window for selling foreign currency, especially foreign transfers, to the so-called (international compliance with the dollar area). Therefore, the Federal Reserve Bank in the United States monitors its currency, and asks about ways to go."

Saleh explained that "Iraqi merchants are required to provide correct documents on their orientations and the final beneficiary, as well as the type and price of the goods, so as not to arouse suspicion among the international authorities."

And he continued, “In the first period, demand was more than supply and the gap occurred,” noting that “with the passage of time and the regularity of foreign currency requests with more transparent documents, the market will organize and the gap will disappear.”

And Saleh went on to say: “There is no fear of the Iraqi dinar, for it is strong,” expecting that “it will be stronger in the future once the financing of foreign trade for Iraq is regular.

In addition, the (Al-Mada) correspondent said, “The central Al-Kifah and Al-Harithiya stock exchanges in Baghdad closed at an exchange rate of 152,900 Iraqi dinars for 100 dollars.”

He pointed out that the buying and selling prices in exchange shops in the local markets in Baghdad have stabilized, as the selling price reached 153,500 Iraqi dinars, while the purchase prices reached 152,500 dinars for every 100 dollars.   LINK