Friday AM Iraq Economy News Highlights 5-27-22

What Are The Most Important Economic Indicators?

There is a set of economic reports and statistics that are used in order to measure the performance of the various sectors of the economy. They help in assessing the economic situation, while measuring the extent of the economy’s strength. Indicators of its weakness are also measured and the reasons for this are measured. Through these indicators, the ability to predict the economic situation in the future The economic indicators are mostly annual, quarterly, weekly or monthly. In the following lines, we will explain all that is related to the economic indicators.

Economic Indicators

Each country has a set of economic indicators on which the strength of the economy is measured. The most important economic indicators are the following:

Balance of Payments

Indicators For The Housing Sector

Production Indicators

Confidence Indicators

Price And Wage Indicators

Monetary Policy And Interest Rates Reports

Indicators Of Jobs And The Labor Market

The role of economic indicators in measuring the strength of the economy

With the presence of many economic indicators for each country, these indicators have a role in order to measure the strength of the economy, and the role of indicators lies in the following:

Balance of Payments:

It is the so-called indicators of foreign trade, it is used in order to follow up the buying and selling of services and goods, either directly or through electronic commerce. The percentage of investments and the flow of capital to the state with other countries is measured, through which the change in supply is known. And the demand for products in the country.

Monetary Policy Reports and Interest Rate Measurement:

They are the reports on the central bank’s movements, with measuring the results of the meetings of the monetary policy committees, and developing a plan to deal with these economic conditions, with clarification of a declaration that clarifies the interest rate, and therefore this report is one of the best forces that move the market.

Production Indicators:

Through these indicators, the general level of production within the country is measured, with follow-up of these indicators in a way that shows a general picture of the form of economic growth, and one of the most famous of these indicators is the indicator of GDP.

Confidence Indicators:

It is concerned with making a reflection of confidence indicators, while measuring the degree of optimism and pessimism by categories that specialize in the formation of the economy, such as consumers, producers and investors.

Price and Wage Indicators:

It is concerned with measuring the extent of the change that occurs in wages, along with measuring the amount of spending by consumers, in order to measure levels of economic inflation.

Housing Sector Indicators:

It is one of the largest economic sectors that occupies a high position in the economy sector, which results in a general improvement in the economic situation.

Employment and labor market indicators:

These indicators include employment rates with the measurement of unemployment wages, which are among the most important indicators that must be measured in order to know the indicators of the country's economy, as measuring the job market is one of the most important economic factors that must be measured.

Types of Economic Indicators

Measuring the strength of the economy of any country is very important, because it is through which the value of the currency is measured, and there are a set of indicators of different types on which the measurement of the country’s economy depends, among the types of indicators are the following:

Leading Indicators:

These indicators change with the change of the economy, so that major changes appear in the economy in the future, and they are useful to be used in short-term forecasts, examples of which are the following:

Stock Market Index Measurement:

It is not considered one of the most important indicators, but rather it is one of the indicators that analysts look at, so that stock prices are predicted through which the company’s profits are predicted, and in the event that the forecasts are accurate, the stock market indicates the trends of the economy. The trend of the economy is expected to be stagnation, and the bullish market in stocks is what indicates rising profits and therefore it indicates a booming economy.

Despite this, the stock measurement is not an accurate indicator so that manipulation can occur in the stock markets and in estimating the percentage of profits, and this is done by relying on strategies related to financial derivatives and creative accounting, and deals that are of large size, which allows traders to manipulate the numbers.

Housing Starts Index:

It is based on an estimate of the number of housing units that have been built over a period of months, which is an indicator that carries a lot of changes, as housing starts are highly sensitive and affected by the interest rate, so analysts specialize in monitoring the trends of long-term housing starts.

Manufacturing Activity Indicator:

Which depends on durable goods so that consumer products such as refrigerators and cars are measured, and when the demand for them increases, it is what means that the economy is reviving, and therefore the decrease and rise in the demand for durable goods is linked to the rise and fall in the stock indices

Simultaneous Pointers:

Through it, the current economic situation of the country is known through its knowledge, examples of which are the following:

Producer's Price Index:

It is followed by a significant change in prices from all the different sectors of the state that produce goods, which carry agriculture, manufacturing, forestry and mining, and follow a large part of the non-producing sectors, as the importance of these commodities is due to being the first inflation measure, and private oil prices are tracked production trends.

Late Indicators:

It is the one that achieves high benefit as a result of a change in the economy with the presence of certain patterns that help in making economic forecasts, which are measured based on those patterns, and they cannot be used to predict economic change. Examples include the following:

Interest Rate Index:

It is one of the most important economic indicators that play an important role in leading the currency market, and it is determined by the central banks of the world, and it is determined in America by the US Federal Bank, and in Europe it is determined by the European Central Bank, and the Central Bank in Egypt is concerned with setting the interest rate.

Central banks use the interest rate to encourage the growth of the economy, and also aim in order to reduce inflation. It is the competence of the Central Bank that it lends to commercial banks, and commercial banks lend to individuals, and the least interest is paid through the Central Bank, and in the event of raising the interest rate from the Central Bank Accordingly, the value of lending increases, and accordingly inflation decreases, and when central banks notice a deterioration in the economy, the interest rate is lowered in order to stimulate economic performance.

Inflation Index:

The economic indicator explains the reason for the increase in prices for products and services during a specific period, as the increase in prices results in an increase in inflation, which results in a lack of purchasing power as a result of an increase in prices, which results in a negative impact on the economy and the currency that follows the country.

In the event that the country faces low rates of inflation, here prices stop but rise at a small rate, so that the economy is seen as weak by investors, and the role of the central bank appears, as it protects investors from increasing inflation, the bank raises the interest rate and here results in reduced consumption Which reduces the demand for goods.

In conclusion, we have explained in the following lines everything related to the indicators of the economy and the factors that affect the indicators of the economy while clarifying the factors that affect the strength of the economy, as these indicators have a major role in measuring non-profit organizations, private companies and by the competent government agencies.   LINK

A new chapter of corruption in the Ministry of Oil

Sumerian special  2022-05-27 | 06:10  Source:  Sumerian  51 views   Informed sources revealed cases of manipulation of contracts concluded by the Ministry of Oil with Kar and Qaiwan Crude Refining Company, especially with regard to the quality of the refined products.

Accusations are mounting on Oil Ministry And the extent of rampant corruption in it, as the files that question its integrity are many, perhaps the last of which is the extent to which oil companies adhere to the agreements concluded with Oil Ministry.

Informed sources revealed contracts concluded by Oil MinistryWith Kar Company and Qaiwan Company to filter a quantity of up to one hundred thousand barrels per day of Iraqi crude oil, but these companies, according to a prior agreement according to the sources, compensate the refined amount of crude with inferior products from refineries scattered in the provinceKurdistanor whoIranWhile it pumps Iraqi crude oil within the export system to Ceyhan through the region's pipelines.

In light of the mounting accusations of corruption it faces Oil Ministry The Parliamentary Integrity Committee intends to open the file of corruption of the oil companies operating in the north and south to detect those involved and hold them accountable, at a time when those companies were accused of looting about a third of the revenuesIraqSince the year two thousand and three due to the inability of government agencies and oversight to hold them accountable.

Talking about accusations and the increasing corruption that eats away at work and contracts Oil Ministry It has reached great levels, according to well-informed sources, at a time when the simple citizen is wondering about the reasons for not putting an end to this corruption and holding all those behind the theft of people's money or deceiving it in one way or another accountable.   LINK

Parliamentary Move To Legislate Laws To Return Iraq's Smuggled Money

Article at link   https://baghdadtoday.news/ar/news/190129/A

Iran Raises Exports To Iraq To 12 Billion Dollars And Demands That It Be An Alternative To Ukraine By Exporting Rebar To Iraq

Fri, May 27-2022,Pm 12:07   Tayseer Al-Assadi  A member of the Presidium of the Iranian-Iraqi Joint Chamber of Commerce, Hamid Hosseini, expected that Iran's exports to Iraq would rise to 12 billion dollars this year .

Hosseini stressed the need to increase Iranian exports to Iraq due to the construction of construction projects in this country .

A member of the Presidency of the Iran-Iraq Joint Chamber of Commerce pointed to the impact of the sanctions imposed on Russia due to its war with Ukraine on Iraq, explaining that this matter will not last long, according to Fars Agency.

Hosseini added, "We hope that the volume of Iranian exports of goods to Iraq will rise to 12 billion dollars this year in light of the customs report, which expected this percentage to reach this year .  "

He stressed that the Iraqi oil exports witnessed a remarkable increase last year, amounting to 149 billion dollars, which has never been witnessed in the history of Iraq, expressing his hope that these oil revenues will facilitate the export of Iranian goods to it at a value of 12 billion dollars .

Hosseini stressed that, given that Iraq was one of the importers of rebar from Ukraine, whose factories are currently closed due to the Russian-Ukrainian war, Iran can help this country, which started building and establishing projects to raise the volume of rebar exports to Iraq from two million tons to double to compensate for Ukrainian exports to this country. .    http://non14.net/public/147599

The Two Baghdad Stock Exchanges Closed With A Decrease In The Exchange Rates Of The US Dollar

Shafaq News/ The exchange rates of the dollar decreased against the Iraqi dinar, today, Thursday, with the closure of the two main Baghdad stock exchanges.

Shafak News Agency correspondent said that the Al-Kifah and Al-Harithiya Central Stock Exchange closed in Baghdad at 148,150 Iraqi dinars, compared to 100 US dollars.  While the prices this morning were 148,200 Iraqi dinars for $100.

Our correspondent indicated that the buying and selling prices in banking shops in the local markets in Baghdad decreased, as the selling price reached 148,500 Iraqi dinars, while the purchase prices amounted to 147,500 dinars per 100 US dollars.  LINK

Oil Prices Rise To The Highest Level In Two Months

Economie   2022-05-27 | 02:59  And he said Clifford Bennett Chief Economist at A.C.Y Securities “a combination of actual loss of supplies and a growing refusal to accept supplies from RussiaIt will cause these two commodities (oil and gas) to rise significantly."

Prices have increased nearly 50 percent since the beginning of this year.

Six sources in OPEC + toldReutersThe group is expected to abide by the oil production agreement it approved last year during its scheduled meeting on June 2, with an increase in production targets in July by 432,000 barrels per day, which represents a rejection of Western calls for faster increases in production in order to curb high prices.   LINK

Dollar Exchange Rates In Local Markets

Economie  2022-05-27   Alsumaria News – Baghdad The dollar exchange rates witnessed, today, Friday, stability in the Iraqi Stock Exchange.

The selling prices of the dollar were 148,250 dinars per 100 dollars, while the purchase prices of the dollar were 148,150 dinars per 100 dollars. and decided Central Bank of Iraq Earlier, the exchange rate of the dollar against the Iraqi dinar was modified, as the purchase price of the dollar from the Ministry of Finance amounted to 1450 dinars, while the price of selling it to banks was set at 1460 dinars per dollar, while the selling price to the citizen was 1470 dinars per dollar. LINK

Brent Crude Hits $117 A Barrel

Economie  2022-05-27 | A senior government aide said Hungary His country needs between three and a half and four years to stop using Russian crude, and pump huge investments to adjust its economy, and it cannot support the oil embargo proposed by the European Union until an agreement is reached on all issues.

And he Clifford Bennett Chief Economist at A.C.Y Securities: “A combination of actual loss of supplies and growing refusal to accept supplies from Russia They will lead to a significant increase in these two commodities (oil and gas).  Prices have increased nearly 50 percent since the beginning of this year.

Six sources in OPEC + toldReuters The group is expected to abide by the oil production agreement, which it approved last year during its scheduled meeting on the second of June, with an increase in production targets in July by 432,000 barrels per day, which represents a rejection of Western calls for faster increases in production; In order to curb high prices.   LINK