Iraq Economic News and Points To Ponder Monday Afternoon 8-19-24

In Numbers.. The Central Bank Buys Dollars From The Ministry Of Finance In An Unprecedented Move Since 2003

Time: 2024/08/19 Read: 3,055 times  {Economic: Al Furat News} An economic expert revealed an “unprecedented” figure for the value of the dollars purchased by the Central Bank of Iraq from the Ministry of Finance during the month of July.

"The Central Bank of Iraq purchased $9.6 billion from the Ministry of Finance in July 2024, the highest value since the bank began purchasing dollars from the ministry in 2003," Manar Al-Obaidi said in a statement received by {Euphrates News}.

He added, "The purchases did not exceed this value during the past ten years except once in October of last year, at $10 billion."

Al-Obaidi explained, "Thus, the rate of dollar purchases from the Central Bank for the year 2024 has reached $5.9 billion per month, the highest over the past ten years, with an annual growth rate of 10%. The growth rate had previously risen in 2023 to 20%."

He attributed "this increase in purchases to the Ministry of Finance's need for local currency to cover its increasing expenses over the past years, especially with the increase in operating spending and raising the level of spending in the 2023, 2024 and 2025 budgets."

Al-Obaidi expected that "this rate will rise in the coming months with the Central Bank's inability to meet the need for Iraqi dinars, which may force it to increase the issued monetary mass to meet the ministry's expenditure needs."  LINK

Iraqis...Saving In Gold Instead Of The Dollar

 Time: 08/18/2024 Read: 1,859 times  {Economic: Al-Furat News} Iraqis tend to save in gold instead of the dollar, which causes its continued rise in the local market.

 Economist Salah Nouri told Al-Furat News:

 “Gold for government institutions and individuals is an investment haven as an alternative to the dollar in the event that the price of the dollar rises.”  He stressed,  "The increasing demand for gold leads to a continuous rise in its price." 

According to Nouri’s statement,   “There is almost certain information that the situation is intertwined between some citizens’ tendency to save in gold instead of dollars, and others to smuggle it out of Iraq after the difficulty of dollar transfers.”

While experts believe that citizens resorting to buying gold is due to the weakness of the banking system.

This was confirmed by financial affairs expert Mustafa Hantoush, saying that the

reason citizens resort to buying gold bullion to save their money is as a result of the

     weakness of the banking system,

     lack of confidence in this system, and

     fear for their money due to American sanctions.

This is why we see the majority of Iraqis turning towards gold bullion, especially in light of the rise in prices.

The yellow metal and this price is stable and does not fluctuate like the dollar.

Today, Sunday, gold prices in the wholesale markets on Al-Nahr Street in the capital, Baghdad, recorded a selling price of 21 karat gold from Gulf, Turkish and European gold at 531 thousand dinars, and a purchase price of 527 thousand dinars.

The selling price of one mithqal of 21 carat Iraqi gold was recorded at 501 thousand dinars, and the purchase price reached 497 thousand.

Regarding gold prices in goldsmiths’ shops, the selling price of a 21-carat Gulf gold mithqal ranges between 535 thousand and 545 thousand dinars, while the selling price of an Iraqi gold mithqal ranged between 505 thousand and 515 thousand dinars.

As for gold prices in Erbil, 24-karat gold sold for 605 thousand dinars, 21-karat gold sold for 530 thousand dinars, and 18-karat gold sold for 455 thousand dinars.   https://alforatnews.iq/news/العراقيون-الادخار-بالذهب-بدلاً-من-الدولار    

Social Impacts Of Economic Transformations

Economical 08/19/2024  D. Sorour Muhammad Khalil Saghir

 It is noted that the current economic transformations that Iraqi society is witnessing, which include the intervention of capitalism in our economy, have greatly affected the labor market.

These transformations are represented by fluctuations in oil prices and the trend towards globalization and digitalization, which resulted in noticeable changes in the structure of the family and the roles of its members, because with the entry The digital economy and the global market. Fluctuations in oil prices have increased economic instability and reduced job opportunities, which has burdened families with financial pressures.

 These pressures increase with rising unemployment rates, which may contribute to family disintegration.

Because of the difficulty of meeting life needs, which is witnessed by the majority of Iraqi families, as it causes a change in the distribution of roles within the family; Because individuals need to work more to support the family or adapt to unstable sources of income, individuals must adapt and focus on professional success and achieving financial independence.

As a result, we are now witnessing an increase in the participation of Iraqi women in the labor market to support the family financially.

 Many of them entered the fields of handicrafts, product marketing, and self-employment in many fields, and

this change resulted in an unprecedented movement for women, which led to changes in the traditional roles within the Iraqi home, so the role of women in supporting the family economy became clear, and at the same time

 This places a great burden on them, as the majority of working Iraqi women face difficulties in achieving a balance between work and family obligations, which affects their quality of life, in addition to social and cultural restrictions that affect their opportunities for professional advancement and financial independence.

 Therefore, I will discuss the impact of these economic transformations in more depth, based on the vision of sociologist Ali Al-Wardi, who pointed out that economic changes play a major role in shaping the social structure and interactions within the family, such as the transition from the traditional economy to a more modern economy, as Iraqi families face... New challenges include changes in lifestyle, increasing financial pressures, and a change in traditional social roles.

These transformations have increased the gap between generations, as the younger generation adopts new lifestyles and concepts that differ from those adopted by previous generations.

 In short, it can be said that the current economic transformations contribute In reshaping the social structure of the Iraqi family, where crises are dealt with in new ways that may redefine family relationships and social roles,

 therefore, adapting to economic changes requires a flexible response from Iraqi family members, and to address the negative effects of economic transformations in the Iraqi family, a group can be considered:

 Strategies that address various aspects of family life, including the

 first aspect: the role of the government in improving the education system, because education must be in line with the needs of the labor market, which requires actual application, because it is not logical for medical colleges to graduate large numbers of students annually.

 Public and private universities, which are not compatible with the needs of the labor market, which leads to exacerbation of the dysfunction in Iraqi institutions. The  second aspect: enhancing cooperation between educational institutions, companies and ministries.

 From these companies, young people can gain practical experiences during their studies, which improves their employment opportunities after graduation. As for The

 third aspect is the role of local authorities in providing successful programs to support low-income families or those affected by economic transformations, by providing direct financial aid or support in the form of soft, interest-free loans.

 All of this can reduce the financial pressures that families face and contribute to Its economic and social stability.  The

 fourth aspect is providing free education and vocational training, which play a vital role in addressing the negative economic impacts, by directing individuals towards acquiring new skills that are in line with the requirements of the modern market.

 finally; Economic policies must focus on achieving sustainable and comprehensive development, by adopting policies that encourage investment in small and medium enterprises.

This will enhance local economic growth and create new job opportunities, which contributes to improving the economic situation of families in the long term, and contributes to achieving a balance between growth and development. Economic and protection of vulnerable groups to ensure family stability in light of the current economic transformations.   https://alsabaah.iq/101272-.html    

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