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

Is The Ministry Of Finance Hiding The Facts? A Specialist Reveals The Main Reason For The Lack Of “Cash Liquidity”
 
Economy/Localities | Yesterday, 23:29 |Baghdad today – Baghdad  Economic affairs researcher Haider Al-Sheikh revealed today, Wednesday (January 1, 2025), the direct reason behind the lack of cash liquidity at the Central Bank of Iraq.
 
The sheikh told "Baghdad Today", "The Central Bank lacks cash liquiditydue to the citizen's lack of confidence in the banking system.

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There is a lack of confidence among the citizen in both government and private banks, and this matter has led to the storage of cash (the Iraqi dinarin citizens' homes."".  He stated,
 
“The cash stored with citizens exceeds 15 trillion dinars, and the government and the central bank must address inflation in economic policies by providing banking facilities to citizens in a real and more serious manner.” The researcher in economic affairs added,
 
“The currency circulating among banks, merchants, and in the market as well, amounts to approximately 85 trillion dinars.”
 
On Sunday (December 2024), the Ministry of Finance denied that there was a shortage of liquidity to finance employees’ salaries for the current month, stressing its commitment to financing salaries.
 
The Ministry stressed in a statement received by “Baghdad Today” that
 
it is “fully committed to the process of financing employee salaries, as the Accounting Department has funded the salary dues for ministries, governorates, and unrelated entities for the current month of December according to the schedules specified for each of them, and it is continuing its efforts to ensure the continuity of disbursing financial dues.” Without any delay or interruption.”    
  
https://baghdadtoday.news/265093-هل-تخفي-وزارة-المالية-الحقائق؟.-مختص-يكشف-السبب-الرئيس-لنقص-السيولة-النقدية.html 

Hassan Al-Daghari: Developing The Iraqi Financial Sector Is An Urgent Need
 
December 31, 2024 Last updated: December 31, 2024  Independent/- Financial affairs expert Hassan Ali Al-Daghari described Iraq's need for an advanced financial sector as necessary and inevitable in light of the continuing need to develop the reality of the national economy.  Al-Daghari said:
 
The volume of work in Iraq is wide and in all sectors without exception, which demonstrates the need for a financial sector capable of providing advanced financial products.
 
He pointed out the importance of there being harmony between the Central Bank of Iraq and the private banking system, including banks that have proven their existence and have not been subjected to the sanctions imposed by the US Federal Reserve.
 
He pointed out that the private financial sector is moving to prove its presence and qualitative presence within the work space, and  this requires the support and support of the Central Bank of Iraq.  
  
https://mustaqila.com/حسن-الدغاري-تطوير-القطاع-المالي-العرا/ 

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An Economist Praises The “Asykoda” Automation System: A Step Towards Achieving Important Resources
 January 1 12:33  Information / Baghdad.. Economic expert Nabil Al-Ali confirmed, on Wednesday, that the  government announced that it would start, from the first of this year, completing the infrastructure to connect all border crossings, by starting to use the “Asycoda” automation system, which will contribute to achieving important financial resources for the public treasury.

Al-Ali said in a statement to the Maalouma Agency,  “Completing the linking of the border crossings to an electronic system called (ASYCUDA) is a qualitative leap towards cutting off corruption, in addition to that  it will provide the public treasury with high financial resources.” He added,
 
"Applying automation at border crossings by achieving automation in ministries and institutions, including the e-government project, and providing electronic payment services." He pointed out that
 
"implementing it will contribute to
 
     enhancing transparency and accountability,
     simplifying procedures,
     facilitating services, and
     reducing bureaucratic obstacles, in addition to
     establishing good governance and
     combating corruption." Ended / 25 AD    
  
https://almaalomah.me/news/86953/economy/اقتصادي-يشيد-بنظام-الاتمتة-الأسيكودا:-خطوة-باتجاه-تحقيق-موار 

Strong Demand Lifts Gold Prices To Two-Week High

Gold bullion.  Reuters  Arabic and international  Economy News - Follow-up  Gold prices hit a two-week high on Thursday, supported by safe-haven buying and a decline in U.S. Treasury yields, with focus on U.S. interest rate expectations ahead of President-elect Donald Trump's proposed trade tariffs.

Spot gold rose 1 percent to $2,649.73 an ounce by 14:46 GMT, its highest since Dec. 18.

U.S. gold futures rose 0.8 percent to $2,663.20 an ounce.

Benchmark 10-year U.S. Treasury yields fell, boosting investor appetite for the non-yielding metal.

"I don't see anything on the news that's moving the market, but geopolitics is supporting the market," said Ronna O'Connell, an analyst at StoneX, referring to international tensions as well as financial uncertainty, especially ahead of Trump's inauguration.

Lower interest rates make gold more attractive as a hedge against economic and geopolitical risks.

The market is now awaiting a fresh set of catalysts, including a series of US economic data due next week that could impact interest rate expectations for 2025.

Gold hit several record highs in 2024, rising 27 percent, its biggest annual gain since 2010, amid interest rate cuts by the US Federal Reserve, aggressive buying by central banks and rising geopolitical tensions.

Trump's presidential term is scheduled to begin on January 20.

Proposed tariffs and protectionist trade policies are expected to raise inflation and could spark trade wars, increasing gold's appeal as a safe haven.

As for other precious metals, silver in spot transactions rose 2.1 percent to $29.48 per ounce.

Palladium rose 1.3 percent to $922.04 an ounce, while platinum rose 2.1 percent to $922.85 an ounce.

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