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Sunday Morning Iraq Economic News Highlights 7-9-23

Iranian Efforts To Deal In The Iraqi Dinar Instead Of The Dollar

Economical  07/09/2023  The Iranian government seeks to get rid of the dominance of the US dollar by using the Iraqi dinar in the process of trade exchange between the two countries.  This was according to what an Iranian official said on Saturday.

The Mehr news agency quoted the head of the Iranian-Iraqi Chamber of Commerce, Yahya Al-Ishaq, as saying that by using the dinar instead of the dollar in trade with Iraq,

We get rid of the dominance of the dollar in imports and exports as planned the government.

He added that trading in the national currencies of different countries is one of the 13 goals of the government, adding that most countries in the world seek to break the American hegemony in their stock exchanges, and the use of national currencies of countries can help speed up this process.

Al-Ishaq touched on the Iranian-Iraqi relations.

By saying: More than 10 billion dollars of goods and services are exchanged annually between the two countries, if the trade system is applied in the national currencies of the two countries,

This can contribute to the deepening of these relations and the establishment of trade good.

Referring to the problems of trade in the national currencies of the two countries, the Iranian official said: Balance in trade is very important in this new system; If Iraq imports more than Iran and pays all its debts in dinars, problems will appear in other Iranian stock exchanges.

Because we must be able to meet our needs in dinars The recipient.

He pointed out that the arrival of three million religious tourists to Iraq and the large number of health tourists from this country to Iran can help exchange dinars instead of dollar.

The head of the Iranian-Iraqi Joint Chamber of Commerce stressed that we must be able to reduce the dominance of the dollar by maximizing exchanges with the national currencies of the two countries.

He added that this proposal is a regime and Iran that can help the two countries lift the American pressure on  two states.

Regarding the 10% difference between the price of the dinar in the open market and the dinar of the bank, Al-Ishaq said that this will make Iran’s competitors more successful in the Iraqi market, and the necessary measures must be taken to solve this problem.

He stressed that the interaction between Iran and Iraq in this field could be an important measure that we can benefit from more through follow-up Occasion.

Al-Saadi: Importers’ Dependence On The Dollar Is Behind Its Failure To Devalue It In The Parallel Market

Economic affairs researcher Muhammad Al-Saadi explained, on Friday, that the total dependence of importing traders on the dollar in the parallel market is behind its continued rise in the parallel market.

Al-Saadi said in a press interview seen by “Takadam” that “many merchants, especially importers, depend on the dollar on the black market, and they did not go to the electronic platform in order to obtain the dollar at the official rate.”

He added, “The lack of locally produced commodities pushes the merchant to go abroad in order to import, and therefore he has the option of going to obtain the dollar from the official platform, and he may go to erase the parallel market in order to obtain the currency as quickly as possible.”

And he indicated that “the volume of demand for buying the dollar, especially by speculators and traders, made some exchange shop owners monopolize the currency and store it in order to raise its value in the parallel market and obtain great benefits, despite the government’s measures to control prices.”

Parliamentary Finance Explains The Relationship Between Increasing The Traveler’s Share Of The Dollar And The Rise In The Exchange Rate

Baghdad today – Baghdad   A member of the Parliamentary Finance Committee, Representative Mudar Al-Karawi, revealed today, Saturday, one goal behind increasing the traveler’s share to 3 thousand dollars per month.

Al-Karawi told “Baghdad Today” that “the central bank’s policy is independent and is primarily responsible for drawing up the country’s financial policies and cannot be interfered with,” pointing out that “its decisions come in accordance with specific principles within the criteria for maintaining financial stability, especially for exchange rates.”

He added, “The decision to increase the traveler’s share of the dollar currency by 3 thousand dollars per month comes to achieve an important goal, which is to reduce the demand for the parallel market to sell dollars in order to curb the rise in exchange rates.”

He pointed out that “fulfilling the need of the bulk of travelers for hard currency liquidity, referring to the dollar, will reduce demand for the parallel market and limit the rise in exchange rates at higher rates,” expecting that “there will be other decisions towards strengthening the strength of the dinar against the dollar and pushing the prices of the latter.” down in the coming weeks.

The Central Bank of Iraq had taken, earlier, a number of measures to control the exchange rate of the dollar in the local markets, including opening bank offices in Iraqi airports to sell the dollar to travelers at the official exchange rate.  LINK

Basra Is Looking Forward To The Results Of The “Trillion Dinars” Of Petrodollar Funds

Baghdad today – Baghdad  The representative of Basra Governorate, Ahmed Taha Al-Rubaie, announced today, Saturday, that the Ministry of Oil has allocated more than one trillion dinars to the province from petro-dollar sums.

Al-Rubaie told (Baghdad Today) that “these sums will be a major support for the governorate’s budget in terms of implementing strategic projects,” expressing “hope that the disbursement items for this amount will be implemented.”

Al-Rubaie added, “A meeting brought them together with the Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul-Ghani Al-Sawad, and the latter expressed his support for Basra and all provinces to take their entitlement from petro-dollar funds.”

Al-Rubaie added, “The province needs important projects, and the provincial government must make use of these funds as an optimal exploitation for the implementation of projects.”  LINK

Parliamentary Committee: Oil Will Continue To Rise And Will Reflect Positively On The Iraqi Economy

Economy  |Today, 09:16 |Baghdad today – Baghdad   A member of the Parliamentary Oil and Gas Committee, Zainab Al-Moussawi, said today, Sunday, that according to international indicators, crude oil prices continue to rise until the end of this year, as they recently recorded more than $75 per barrel.

Al-Moussawi said in a statement received by “Baghdad Today”: “The rise in crude oil prices will reflect positively on the Iraqi economy because it maximizes its oil revenues and enables it to overcome the negative financial impact resulting from the suspension of exports from the fields of Kurdistan and Kirkuk, which amount to 470,000 barrels per day.”

And she indicated, “After the rise in crude prices and addressing the deficit as a result of the financial surplus, we stress the need to make optimal use of it in investing in developing industry and agriculture and supporting the foundations of the real private sector, to operate factories and laboratories and produce locally manufactured goods and services, in conjunction with the gradual re-imposition of taxes on goods.”

Which are produced locally, in line with activating the role of control and preventing the raising of locally produced commodities and keeping them at prices equal to or a margin lower than the prices of competing foreign commodities.

Earlier, the prices of Basra crude (heavy and medium) rose, with the rise in global oil prices.

Basra Heavy crude prices rose 60 cents, with a change of 84%, to reach 72.31 dollars. Basra medium crude prices also rose 60 cents, with a change of 80%, to reach 75.46 dollars.

The rise in oil prices came with Saudi Arabia’s announcement to extend its cut to one million barrels per day for the month of August, which also caused fears of a scarcity of supply in global markets.  LINK