Iraq Economic News and Points to Ponder Sunday AM 9-17-23

Iraq Economic News and Points to Ponder Sunday AM 9-17-23

Speculators And Analysts Manipulate The Price Of The Dollar Through “False Assumptions”

The first  09/17/2023   Baghdad: Huda Al-Azzawi    A “false hypothesis” claiming that visits by US Treasury officials to the capital, Baghdad, aimed at increasing sanctions on banks, has gained currency in the local market and was the main reason for the rise in the dollar exchange rate over the past few days. Specialists in economic affairs have shown that these hypotheses unleashed by beneficiary speculators are supported and promoted by many economic or political analysts for several reasons.

The economic affairs analyst, Nabil Jabbar Al-Tamimi, stated in an interview with “Al-Sabah” that “there is a link between the rise in the exchange rate of the dollar and the sanctions imposed on banks, and this link came as a result of traders and some people benefiting from the economic analysis,” stressing that “there is no relationship to the rise in...

 The exchange rate when imposing sanctions on four banks in November 2022, as well as when imposing sanctions on 14 banks after that date,” explaining that “these assumptions are economically illogical, because the (14) banks had an entry rate of about 8% in the currency auction and can be covered.” By other banks.

He pointed out that "these hypotheses are unleashed by some economic analysts for the purpose of benefiting from them, especially since some of them have political leanings against the current government, and try to distort the facts by promoting such (false hypotheses) or have a connection with currency traders, and this is what The authorities alerted him,” and Al-Tamimi expected that some of these economic analysts would be “arrested” in the next few days.

He pointed out that "the Communications and Media Commission stressed the importance of avoiding misleading information on more than one occasion, which causes an increase in exchange rates. This information must be addressed by government authorities to refute it and hold accountable everyone who promotes false information that causes an increase in the exchange rate."

For his part, the professor and analyst in economic affairs, Dr. Jaafar Alloush, indicated in an exclusive interview with “Al-Sabah” that “the incorrect reading of the visits of treasury officials is what gives general impressions that compliance with international standards has not been achieved, and thus creates pessimistic expectations that help raise the dollar exchange rate.” While the Central Bank’s data explaining its policies confirms progress in accordance with those policies  Standards".

Alloush considered the unstable rise in the exchange rate “an economically unjustified rise, but it is linked to the abundance and expansion of the volume of internal exchanges in the dollar currency, supported by the increasing types and volume of imported goods that are financed in dollars,” and explained that “the demand for the dollar is multi-faceted and depends on the volume of transactions (which It constitutes a growing demand), as the rise in the exchange rate of the dollar is directly proportional to the volume of internal trading in it,

and with there being only one source for supplying the dollar, which is the central bank (the window for selling the currency) and through the mediations of commercial banks that finance these exchanges, especially foreign trade, in exchange for the limited supply of this supply.

“The problem remains in the form of a real gap between the increasing demand for dollar transactions and the limited supply.”

 He pointed out, “Here lies the danger of lowering the exchange rate by the central bank and losing its effectiveness unless the means of financing trade are legalized and the volume of local dollar exchanges is reduced.”

Regarding the repeated visits of US Treasury officials to Baghdad, Alloush stated that “those visits come to ensure the application of these international standards, and they are also periodic visits that have occurred for a long time, and there are financial relations linking the Central Bank of Iraq with the Federal Reserve and the American Treasury, and meetings are held.” "A regular period between the two parties to review many issues."

He explained, "These days, the visits of American officials to Baghdad are being exploited in the media to inject more waves of pessimism that are directed towards creating a supportive climate for the instability of the dollar exchange rate, knowing that this rise has become a financial resource for many speculators, some of whom control the parallel exchange market, because Dollar trading has expanded its base, and this expansion creates additional difficulties for the monetary authorities and the central bank in controlling the gap in the parallel rate with the official rate.

 Edited by: Muhammad Al-Ansari    https://alsabaah.iq/84100-.html

Dollar Prices Continue To Rise For The Second Day In A Row... 157 Thousand Dinars For Every 100 Dollars

Economy |Baghdad today - Baghdad   Today, Sunday (September 17, 2023), the dollar exchange rates witnessed a continued rise against the Iraqi dinar at money exchangers in the capital, Baghdad.

Money exchangers in the capital, Baghdad, recorded 157,000 dinars for sale for every 100 US dollars, while they recorded 155,000 thousand dinars for purchase for every 100 US dollars.

Yesterday, Saturday (September 16, 2023), the exchange rates of the US dollar against the Iraqi dinar recorded a noticeable increase in local markets.

The "Baghdad Today" correspondent said, "The selling price of the dollar reached, on Saturday morning, 157,000 dinars per 100 dollars, while the purchase price reached 155,000 dinars per 100 dollars."

The dollar exchange rates are witnessing fluctuations in local markets with fears of arrests of owners of exchange companies and private banks that do not adhere to the official rate.

Earlier, economic expert Nabil Al-Marsoumi confirmed that dollar prices are likely to record an additional rise in the parallel market in the coming days, bringing the exchange rate to 160 thousand dinars for every 100 dollars, while he indicated that the current rise is due to a real demand for the dollar and not money laundering. Or a fictitious or illegal request, rather its goal is to finance real trade with countries banned from the dollar.  LINK

Compared To Last Week... Iraq's Oil Exports To America Increased

Economy |Baghdad today - follow-up   The US Energy Information Administration announced today, Sunday (September 17, 2023), that Iraq's oil exports to America increased by more than half the amount exported during the past week.

The administration said in a table followed by “Baghdad Today” that “the average US imports of crude oil during the past week from seven major countries amounted to 6.346 million barrels per day, an increase of 524 thousand barrels per day from the previous week, which amounted to 5.822 million barrels per day.”

She added, "Iraq's oil exports to America reached an average of 248 thousand barrels per day last week, an increase of 148 thousand barrels per day from the previous week, which reached an average of 100 thousand barrels per day."

The administration also indicated that “the most oil revenues to America during the past week came from Canada at an average of 3.645 million barrels per day, followed by Mexico with an average of 1.095 million barrels per day, and oil revenues from Brazil amounted to an average of 545 thousand barrels per day, and then Saudi Arabia at an average of 383 thousand barrels.” Daily".

While “the amount of American imports of crude oil from Nigeria amounted to an average of 219 thousand barrels per day, and from Colombia an average of 211 thousand barrels per day, while no quantity was imported from Russia, Libya, or Ecuador,” according to the table. Source: Agencies   LINK

Democratic Party: The Government Will Vote To Grant 800 Billion Dinars To The Kurdistan Region

Information / Baghdad..  The representative of the Kurdistan Democratic Party, Mahma Khalil, confirmed on Sunday that the Federal Council of Ministers will vote today on granting the region 800 billion dinars.

Follow the “Al-Ma’louma” channel on Telegram.. News that does not require documentation..

Khalil said in a statement to Al-Maalouma, “The Council of Ministers will present, during its session, which will be held today, Sunday, the regional government’s request to grant it 800 billion dinars as an advance from its share in the federal budget for the purpose of covering employee salaries.”

He added, "There are positive signs about the Council of Ministers' vote on the regional government's request for an advance of 800 billion from its budget share for the current year."

The Iraqi Council of Ministers intends to hold its regular session today, Sunday, instead of Tuesday, as is usual every week, due to the travel of Council President Muhammad Shiaa Al-Sudani to New York to participate in the work of the United Nations General Assembly. LINK

Points to Ponder on Riches & Wealth:

 As riches and favor forsake a man we discover him to be a fool, but nobody could find it out in his prosperity. -- Bruy'ere

Worldly wealth is the devil's bait; and those whose minds feed upon riches, recede in general from real happiness, in proportion as their stores increase; as the moon, when she is fullest of light, is farthest from the sun. -- Burton

Wealth is like a viper, which is harmless if a man knows how to take hold of it; but if he does not, it will twine round his hand and bite him. -- St Clement

Money and time are the heaviest burdens of life, and the unhappiest of all mortals are those who have more of either than they know how to use. -- Johnson

There is no society,m however free and democratic, where wealth will not create an aristocracy. -- Bulwer 

Riches are gotten with pain, kept with care, and lost with grief.  The cares of riches lie heavier upon a good man that the inconvenience of an honest poverty. -- L'Estrange

The wealth of a state consists not in great treasures, solid walls, fair palaces, weapons and armor; but its best and noblest wealth, and its truest safety, is in having learned, wise, honorable, and well - educated citizens.
Wealth consists not in having great possessions, but in having few wants. -- Epicurus

Wealth hath never given happiness, but often hastened misery; enough hath never cause misery, but often quickened happiness. -- Tupper

If thou desire to purchase honor with they wealth, consider first how that wealth became thine; if thy labor got it, let they wisdom keep it; if oppression found it, let repentance restore it; if they parent left it, let they virtues deserve it; so shall they honor be safer, better, and cheaper. -- Quarles