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Iraq Economic News and Points to Ponder Monday Evening 11-6-23

Tlm724 Administrator Bondlady’s Corner

Advisor To The Prime Minister: There Is No Shortage Of Currency Liquidity, And The Government Is Very Careful About Two Things

Economy |2-11-2023, |  Baghdad Today – Baghdad   Today, Thursday (November 2, 2023), the advisor to the Prime Minister, Amer Al-Adad, denied that there was a shortage of financial liquidity in hard currency with the government.

Al-Adad said in a televised statement followed by “Baghdad Today”, “Money is available, including hard currency, through oil sales and the central bank’s currency auction.”

He explained,  “Electronic payment points allow a person to pay with an electronic payment card at points of sale in order to increase the transparency of the movement of money in the country and preserve public money.

It is part of a larger program to shift to electronic banking and bring savings from homes to the banking system.”

He added, “At this stage, the number of electronic payment cards in Iraq may range between 7 to 9 million cards, and  we expect it to grow further with the imposition of collecting fees.

We are in a transitional period so as not to confuse the market, after which the electronic payment system will be emphasized.”  Al-Adad stated, “The economic reforms in the current government are characterized by seriousness and follow-up.

In the reform program, we found that the targets do not match the goals, and  we set new targets for each goal.”  He stressed,  “Collection is the duty of the state; but this type of contract has been transferred to the private sector, and the  experience of electronic collection of electricity has been largely successful and this has been proven in Anbar, and investment depends on reforming the banking system.”

He pointed out that  “the government of Muhammad Shiaa Al-Sudani is very cautious regarding the issue of the people’s assets, lands, and residential complexes, and is working on a real plan to support prices.”

https://baghdadtoday.news/234710-مستشار-لرئيس-الوزراء-لا-نقص-بسيولة-العملة-والحكومة-محتاطة-جداً-بأمرين.html

Advisor To The Prime Minister: Launching The (Visa Direct) Service Will Contribute To Reducing The Exchange Rate

Economy     Baghdad – IA – Hassan Al-Fawaz  Today, Friday, Fadi Al-Shammari, Advisor to the Prime Minister, Fadi Al-Shammari, considered the launch of the “Visa Direct” service for transferring money abroad a successful step that will facilitate the work of small merchants, stressing that  it will contribute to reducing the exchange rate in the parallel market, and the  procedures take only 5 minutes.

Al-Shammari told the Iraqi News Agency (INA):

“The launch of banking work during the era of the current government is taking place with a new vision and modern mechanisms, and First Bank of Iraq is the first bank to launch the direct financial transfer service digitally through the (Visa Direct) service.”

He added,  “This development is a major achievement that is linked in one way or another with the strategic vision held by the government and launched by the Prime Minister in financial, banking and economic management, and

is also consistent with the new directions of the Central Bank in the process of re-evaluating, restructuring, organizing and maturing the banking work in Iraq, and

we are now witnessing the start of “It will have a significant impact on the commercial and banking reality in Iraq.”

He continued,  “We hope that citizens will interact with this banking service, which will contribute to cutting off speculators in the black market, and the

Visa Direct service will include many small merchants and will help them access a clear, explicit, official, and legal platform to transfer money abroad easily and conveniently, from account to account, at the official exchange rate.”

He pointed out that “this service will contribute to a decrease in the exchange rate in the parallel market within the framework of ongoing government work to regulate banking work.”

Earlier, the Central Bank of Iraq announced the launch of the “Visa Direct” service to facilitate financial transfers, in coordination with the international company “Visa” and cooperation with the First Bank of Iraq.

The bank confirmed that the “Visa Direct” service is for direct financial transfer to the bank’s customers in Iraq, and

it was launched digitally for the first time through a special application, and

every customer in the First Iraq Bank (FIB) can transfer five million dinars daily, and 13 million dinars monthly, which will be calculated at a price. Official exchange.

Central Bank Governor Ali Al-Alaq said during his speech at the service launch conference:

“The Visa Direct tool came at the right time to facilitate transfer operations, especially simple transfers at the citizen level.”

He stated,  “This tool facilitates the demand for foreign currencies, and we are trying to expand access to these currencies in easy ways,” stressing,

“The issue of foreign transfers, selling the dollar, and the exchange rate are fundamentally linked to employing as many electronic tools as possible.”    https://www.ina.iq/196636–.html

Trade Announces The Lifting Of The Import License For Three Basic Materials

Headquarters of the Ministry of Commerce

Money  and business  Economy News – Baghdad  The Ministry of Commerce announced, on Sunday, the lifting of the import license for three basic materials, confirming that 30 marketing centers will rely on the electronic system for sales by the end of 2024.

The Ministry’s spokesman, Muthanna Al-Fariji, said in a statement reported by the official news agency and seen by Al-Iqtisad News, that

“Minister of Commerce, Atheer Al-Ghurairi, directed the opening of 7 new marketing centers during the next six months, bringing the number to 15 marketing centers in all governorates.

By the end of 2024, we will have 30 high-end centers that rely on the electronic system (barcode) for sales.”  He continued,

“The Minister also directed that the market be supplied with any item that is subject to an increase in price, to maintain market balance.”  He stressed,

“His ministry has lifted the import license restriction for those wishing to import food, electrical, or pharmaceutical materials, and the Central Bank’s platform is available to everyone.”

He pointed out, “The dollar exchange rate for food importers is 132 thousand dinars, so this increase is unjustified,” calling on “food merchants to take into account the purchasing power of Iraqis, and to stay away from the greed that has afflicted some, by making profits twice, once from the price difference.” dollar, and again from selling the same article.”

Views 57     11/05/2023 – https://economy-news.net/content.php?id=37280

Iraq Is The Third Worst Country In The World In Burning Natural Gas

Economy    breaking    Iraqi oil    Associated gas    Burning gas

2023-11-05 23:16  Shafaq News/ Energy Research Unit data revealed that Iraq ranked third among the worst countries in the world in terms of burning natural gas.

She said in her report, viewed by Shafaq News Agency, that  “gas burning declined globally by an amount that reached 5.9 billion cubic meters during the past year 2022, compared to the previous year, with an annual decline rate of 4%.”

She indicated that “Iraq burned about 17.8 billion cubic meters during 2022, compared to 17.7 billion cubic meters in 2021, with an annual growth rate of 0.3%.”

He pointed out that “Russia, Iran, the United States, Mexico, Libya, Nigeria, and Saudi Arabia are successfully reducing the burning of gas resulting from their oil operations, which has contributed to the decline in the total at the global level.”

Iraqi Prime Minister Muhammad Shiaa Al-Sudani confirms that his government is determined to eliminate the burning of natural gas associated with the oil extraction process, and says that he is determined to make Iraq “active” in the global gas market.

https://shafaq.com/ar/اقتصـاد/العراق-ثالث-سو-دول-العالم-في-حرق-الغاز-الطبيعي

By Investing In Black Oil…An Economic Expert Proposes A Solution To The Dollar Crisis In Iraq

Economy |Yesterday, |Baghdad Today – Baghdad   After the dollar exchange rate crisis worsened, and the situation got out of control in the parallel market in light of the inability of the government and the central bank to contain the crisis, economic expert Nabil Al-Marsoumi proposes a “solution through investing in black oil.”

During the past months, the dollar exchange rates witnessed a noticeable increase, exceeding 160 thousand dinars for every 100 dollars, which ignited the market and raised the prices of food and other commodities, in light of merchants’ fears of the losses that may befall them as a result of this rise.

Selling Black Oil

Al-Marsoumi said today, Sunday (November 5, 2023), that “Iraq’s exports of black oil in 2022 amounted to more than 4 billion dollars.”

The economic expert explained in a blog post followed by “Baghdad Today” that  “Iraq can sell black oil in euros or Chinese yuan and use the amounts to settle commercial transactions with countries sanctioned by America, especially Iran.”

Al-Marsoumi pointed out that  “if this happens, the exchange rate of the dollar in the parallel market will decline significantly,” pointing out that  “this must be preceded by an understanding with the US Federal Bank and obtaining its approval.”

Trade Exchange With Iran

Iraq’s imports from Iran annually amount to approximately 10 billion dollars, which is equivalent to 16% of Iraq’s total annual imports amounting to 60 billion dollars annually, according to economic estimates.

Iranian trade with Iraq is facing many difficulties,  the most important of which is financing and the possibility of obtaining the dollar, especially with the implementation of the platform in the Central Bank of Iraq, which prevents financing trade and sending money to Iran for the purpose of import.

This led to merchants importing from Iran rushing to buy the dollar from the parallel market and bearing an additional cost as a result of the high prices there, and amid these many difficulties.

On (October 31, 2023), an Iranian official revealed a decline in his country’s various exports to Iraq for several reasons, including the difference in the dollar exchange rate.

The former Secretary of the Iranian-Iraqi Chamber of Commerce said in a press statement,

“One dollar for an Iranian merchant is equivalent to 1,600 Iraqi dinars, while this number for businessmen from other countries is 1,300 dinars, which is equivalent to the official price of Iraq,” stressing that

“this difference in the price that… “Up to 15% is acceptable for Iranian businessmen, but exceeding that will make things more difficult.”

https://baghdadtoday.news/234857-باستثمار-النفط-الأسود.-خبير-اقتصادي-يطرح-حلًا-لأزمة-الدولار-في-العراق.html

 

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Provoking Points to Ponder :

Mistakes — A life spent making mistakes is not only more honorable but more useful than a life spent in doing nothing — George Bernard Shaw

Anger is seldom without argument – but seldom with a good one —Hallfax

An angry man is again angry with himself when he returns to reason — Publilius Syrus

Anybody can become angry – that is easy – but to be angry with the right person and to the right degree and at the right time – and for the right purpose and in the right way — that is not within everybody’s power and is not easy — Aristotle

Tolerance  is the positive and cordial effort to understand another’s beliefs, practices, and habits without necessarily sharing or accepting them — Joshua Liebman

Forgiveness — Never does the human soul appear so strong as when it foregoes revenge, and dares forgive an injury — E. H. Chapin

“I can forgive, but I cannot forget” is only another way of saying, “I will not forgive” — Forgiveness ought to be like a cancelled note — torn in two – burned  up – so that it can never be shown against one — Henry Ward Beecher

Friendship — True friendship is like sound health, the value of it is seldom known until it is lost – Charles Caleb Colton