Iraq Economic News and Points to Ponder Saturday Afternoon 2-1-25

Dinar.. Currency and Symbol - Abdul Karim Ahmed Al-Zaidi

January 31, 2025   When a country has its own local currency that it uses in internal transactions, it is inevitably affected by external trade transactions, which require, through financial relations, dealing in foreign currency, which is what we call hard currency that we need in import operations and other financial payments for the various transactions of the country outside its borders.

For this reason, the importance of preserving the value of the local currency appears, and what is meant in our country is the Iraqi dinar with its equivalent value of hard currency in the external trade environment.

The responsibility for this process and preserving the value of the local currency falls on the Ministry of Finance, as it is authorized in these transactions in coordination with the Ministry of Trade and other bodies within its jurisdiction.

What concerns us here, considering that our country is still in dire need of supplying its people’s needs of materials, goods and local market requirements and its reliance on selling crude oil as an economic resource, is to maintain the value of the local currency and enhance its purchasing power against foreign currencies.

To be fair in our presentation of the subject, the Ministry of Finance has done its best in attempts to support the local currency and reduce its impact on the exchange of its equivalent in hard currency.

Perhaps the most prominent of these is offering the sale of hard currency in the financial markets at a price that competes with the inflation in the exchange rate of hard currency and monitoring the implementation of its instructions in the commercial dealings market in an attempt to stop the decline in the value of the local currency.

However, the situation, as it seems, does not represent an ideal solution to this situation after all commercial dealings and markets have become parallel to the exchange value. This matter requires a scientific and practical way out that preserves the value of the local currency and restores its prestige among foreign currencies and strongly fights all efforts to weaken its immunity and weaken its ability to compete again with other circulating currencies.

Perhaps Iraqis remember the market dealings with simple and metal money and small coins, which are not far away, and this is frankly what prompted me to review the history of the beginning of the birth of the Iraqi dinar in the year 1932, and after it was It was linked to the US dollar after 1959, so that each Iraqi dinar became equal to 2.8 US dollars.

It maintained its value until 1973, when it became equal to 3.37 per US dollar after the United States devalued its currency in 1972.

Unfortunately, the situation did not remain the same after Iraq devalued its currency, and the dinar remained in circulation equal to 3.2 per US dollar. It maintained its circulation until the Second Gulf War in 1991, despite the fact that the exchange rate of the Iraqi dinar on the black market was 3 dinars per dollar in late 1989.

I repeat that the supervisory authorities and the Central Bank of Iraq have a responsibility to work on finding a way out of this crisis and to overcome the weakness of the local currency with solutions that go beyond the short-sighted view that many financial and economic experts still resort to without any salvation, and to bring life back to the Iraqi dinar after a long period of slumber and weakness. LINK

Iraq's Dollar Reserves Exceed $100 Billion

Time: 2025/02/01 19:38:08 Read: 1,980 times  {Economic: Al Furat News} Economic expert, Basem Jamil Antoine, revealed Iraq’s dollar reserves.

Antoine told {Euphrates News} that: "The Iraqi gold reserve is good and it is preferable for the reserve to be larger than it is now and commensurate with the size of Iraq's dollar reserve, which currently amounts to more than 100 billion dollars."

He explained that "these assets must be converted into production in the economic and private sectors to create job opportunities for the unemployed and reduce poverty rates," stressing "the need for local reliance in production and not resorting to imports."

Antoine pointed out "the importance of converting surplus cash liquidity into a productive sector that is capable of protecting the country and providing food security in all sectors."

The economic advisor to the Prime Minister, Mazhar Muhammad Salih, revealed via {Euphrates News} Iraq's gold reserves, which are estimated at about 152 tons.

Salih explained that its approximate value in the country's foreign investment portfolio is about 14 billion dollars, which constitutes about 13% of the total diversification of that portfolio, which is distributed in standard proportions between other foreign currencies.  LINK

Central Bank Records Explosive Sales During The Week

01/02/2025  Mawazine News – Economy  The total sales of the Central Bank of Iraq of US hard currency exceeded one billion dollars during the days of the auction last week.

Mawazine News correspondent reported that the Central Bank sold during the past week and for the 4 days of the auction, one billion, 166 million, 384 thousand, and 363 dollars, at a daily average of 291 million, 596 thousand, and 90 dollars, higher than last week, when the average sales amounted to 294 million, 385 thousand, and 330 dollars.

The highest sales of the dollar were on Tuesday, when sales amounted to 299 million, 950 thousand, and 287 dollars, while the lowest sales were on Wednesday, when sales amounted to 283 million, 18 thousand, and 598 dollars.

Our correspondent indicated that foreign remittance sales during the past week amounted to one billion, 95 million, 234 thousand, and 363 dollars, compared to cash sales that amounted to 71 million, 150 thousand dollars.   https://www.mawazin.net/Details.aspx?jimare=259238

Dollar Prices Fall In Baghdad And Stabilize In Erbil With Closing

Saturday 01 February 2025 16:39 | Economic Number of readings: 189   Baghdad/ NINA / The dollar prices decreased in the markets of Baghdad and Erbil governorates with the closing of the stock exchange.

The dollar prices recorded a decrease with the closing of the Al-Kifah and Al-Harithiya stock exchanges to record 150,400 dinars for every 100 dollars, while the prices were 150,500 dinars for every 100 dollars this morning.

The selling prices in the field of exchange in the local markets in Baghdad reached 151,500 Iraqi dinars for every 100 dollars, while the purchase reached 149,500 dinars for every 100 dollars.

As for Erbil, the dollar recorded stability, as the selling price reached 150,250 dinars for every 100 dollars, and the purchase price was 150,150 dinars for every 100 dollars. https://ninanews.com/Website/News/Details?key=1183187

Al-Sudani: Iraq Is Fertile Ground For All Economic Dreams

Money and business  Economy News – Baghdad  Prime Minister Mohammed Shia Al-Sudani confirmed, on Saturday, that Iraq is fertile ground for all economic dreams, while indicating that the country is on the verge of the largest urban movement in the field of housing.

Al-Sudani said in a speech during the opening of the 48th session of the Baghdad International Fair, which was followed by "Al-Eqtisad News", "Today we open the 48th session of the Baghdad International Fair to be an addition that inspires hope and aspiration for productive and promising partnerships and stronger cooperation that enhances facing challenges and draws a map of prosperity and confident economic growth."

He added, "I welcome the representatives of 1,250 companies and entities participating in this year's session, which carries messages of communication and constructive partnership plans from 22 sisterly and friendly countries," indicating that "this year's exhibition is being held while Iraq is witnessing a continuous and active movement in every sector and detail of the economy, industry, agriculture, infrastructure, services and energy."

He continued, "We have completed more than twenty-seven months of connected and complementary plans and programs in order to bring about a tangible and clear change within the ceiling of expectations and ambitions carried by the honorable Iraqi citizen," adding, "We have stressed since the start of the government's work that the real criterion for success is the citizen's satisfaction and positive interaction with what the executive service apparatus provides, along with the deep-rooted and long-term economic reform."

He added: "We want the Baghdad Exhibition to be a forum for understanding and a meeting platform where opportunities, understandings and offers gather and companies study the available windows for contribution to the development movement in Iraq," stressing that "Iraq is heading towards the widest urban movement in the field of housing."

Al-Sudani said: "We have a promising and accelerating health sector that we have moved forward in by completing dozens of stalled hospital projects, in addition to adopting the method of joint management and operation and activating health insurance," noting that "foreign investments in Iraq have exceeded 60 billion."

He explained that "all of this comes in addition to building relationships, understandings and agreements with international partners and major global financial institutions," noting that "the strategic development path that extends from the port of Faw to the northern borders and Turkey is linked to the most effective and cheapest trade routes in management and operation, linking Asia and Europe through Iraq and the Middle East."   https://economy-news.net/content.php?id=52415

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