Iraq Economic News and Points To Ponder Tuesday Afternoon 11-12-24
An Economist Identifies A Main Reason Behind The Rise In The Dollar Exchange Rate
November 11 11:46 Information / Baghdad.. Financial and banking researcher Mustafa Hantoush confirmed today, Monday, that demand in the parallel market is the reason behind the rise in dollar exchange rates.
Hantoush said, in an interview with the Maalouma Agency, that "the main reason for the rise in the exchange rate of the dollar against the Iraqi dinar is the demand in the parallel market."
He added that "the huge trade with neighboring countries and the number of travelers estimated at millions caused an increase in demand in the parallel market," noting that "some small merchants do not have licenses or companies to import."
He stated that "fears of wars in the region push merchants, markets, and citizens to exaggerate the quantities imported and purchased, and also push some to save dollars." He continued: "There are no problems in the Iraqi supply chains from (Türkiye, Canada, Australia, China and India), as well as there are no concerns about the liquidity of the dollar in Iraq."
https://almaalomah.me/news/82233/economy/اقتصادي-يحدد-سببا-رئيسا-وراء-ارتفاع-صرف-الدولار
Among Them Is Iraq...The Country That Buys The Most Gold
Time: 11/11/2024 14:01:55 Read: 1,716 times {Economic: Al-Furat News} Governments store thousands of tons of gold bullion in their vaults, as the precious metal is considered a safe haven. Iraq has become among the countries in the world most eager to buy gold and enhance its reserves of the yellow metal.
The RBK economic website published a report, based on data from central banks around the world, the International Monetary Fund, the World Bank, and the World Gold Council, which shed light on countries’ purchases of the yellow metal in the period from 2013 to 2023.
According to the report, purchases of central banks in the world at the end of 2023 amounted to approximately 1,037 tons of gold, which is the second largest volume ever purchased on an annual basis.
The report showed that Russia, China, and Turkey were at the forefront of countries buying gold in the aforementioned period, as purchases of the three countries amounted to 2,903 tons of the resonant yellow.
The following is a classification of the countries that buy the most gold in the period from 2013 to 2023:
https://vod3.alforatnews.iq/upload/2024-11/2b93226186a26399f98c5370a523b91b.jpg
[Graph lists Iraq 9th having purchased 100 Tons of Gold 2013-2023]
https://alforatnews.iq/news/بينها-العراق-أكثر-الدول-شراءً-للذهب
Gold Reserves Enhance Confidence In The National Currency
Economical 11/12/2024 Baghdad: the mainstay of the emirate
Gold plays a vital role in countries' monetary reserves for several reasons related to
financial stability,
hedging economic risks, and
enhancing confidence in the national currency, as well as
being an effective tool for hedging against inflation.
Which called on the Central Bank of Iraq several times and in successive years to enhance its balance of gold reserves, which reached 148 tons and 305 ounces.
Regarding the reason that prompted banks to rely on the yellow metal alone, financial expert Mahmoud Dagher explained to “Al-Sabah” that
the reason for central banks, including the Central Bank of Iraq, to increase their purchase of monetary gold is because it is suitable as a reserve compared to industrial gold, indicating that the Chinese Central Bank and the Indian Reserve One of the largest buyers of gold in the world.
Total reserves
Dagher added that the Iraqi Central Bank increased its acquisition of gold more than once during the last two years, most recently in the first quarter of 2024, until the total reserves of gold reached 148 tons and 305 ounces after the last deal in May of 2024, amounting to 2 tons and 644 ounces.
Bank assets
He explained that although gold is not considered the best asset for achieving returns when investing compared to the currencies, deposits, and securities that are allowed to be acquired within the assets of central banks, it is a haven for balance among other assets whose values are affected by the nature of the economic cycle (recession and inflation), indicating that
gold is declining. Its price during recession and rises during inflation, reflecting its balancing role.
Global trend
He continued that gold is also a haven when currencies fluctuate against each other greatly, as happened in the last two years for the ruble, yuan and rupee currencies, and thus reduces the impact of the so-called currency risks, pointing out that the Iraqi Central Bank did not deviate from the global trend in purchasing gold despite The rise in its price accompanied the global inflation wave that hit the major economies until it approached 10%.
Because the rule for purchasing assets by central banks is based on the principle of buying an asset when its price falls in the hope of selling it when it rises, which did not happen in gold because expectations during the last two years were for gold prices to rise, in addition to the continued significant fluctuation of currencies among them.
Avoid inflation
For her part, the specialist in economic affairs, Dr. Ikram Abdel Aziz, said that Iraq is the fourth Arab country in possessing large quantities of gold as an element indicative of the health of the Iraqi economy, indicating that
gold and hard currency reserves become a supportive means and an important framework for hedging and avoiding inflation and high prices.
Abdel Aziz added, in an interview with “Al-Sabah”: that gold and foreign currency work to preserve the value of currency and the interest it accrues;
Therefore, countries seek to possess large quantities of gold, noting that possessing large quantities of gold reserves in light of the current fluctuations, geopolitical changes, and the situation of the Iraqi economy would be a safe haven to preserve value and hedge against inflation. She explained that the
Developmental paths
presence of large quantities of gold with the Central Bank of Iraq is an important element in reducing dollar control and reducing instability, noting that Iraq achieved this increase in its gold reserves to serve development paths.
She continued that the Central Bank of Iraq has a variety of reserves, including gold, whose stock is an effective means and a basic pillar for maintaining purchasing power, stressing that the presence of strong reserves and their diversity in the investment portfolio of the Central Bank of Iraq is a basic pillar and a factor restraining the rise in prices and hedging against inflation, and thus confidence in the economic system is achieved. Al-Qaim. https://alsabaah.iq/105777-.html
Gold Reserves Jump: Iraq Exceeds 150 Tons Of 'Cash Gold'
Time: 2024/11/12 16:22:16 Read: 1,781 times {Economic: Al Furat News} The economic advisor to the Prime Minister, Mazhar Muhammad Salih, revealed today, Tuesday, a jump in Iraq’s gold reserves after it exceeded 150 tons of gold.
Saleh told {Euphrates News} that: "The cash gold in Iraq's foreign reserves constitutes a percentage that may not exceed 10% to 11% of the total investment portfolio management of those reserves."
He added, "This percentage is usually determined by the standard guidelines issued by the International Monetary Fund on how to manage the optimal sovereign investment portfolios according to risk management and their distribution between liquid and semi-liquid assets and official cash gold.
" Saleh explained, "The latest information indicated that our country's balance of official cash gold may have exceeded the barrier of 150 tons of pure gold."
Gold prices rose slightly on Tuesday, but remained hovering around the lowest level in a month, while investors await US economic data and comments from Federal Reserve officials for more clarity on the path of interest rates.
Spot gold rose 0.2% to $2,624.17 per ounce after recording its lowest level since October 10 on Monday. U.S. gold futures gained 0.5 percent to $2,630.10.
The dollar held near a four-month high as bets on President-elect Donald Trump’s policies continued to weigh. A stronger dollar makes gold less attractive to holders of other currencies.
Among other precious metals, spot silver was little changed at $30.70 an ounce. Platinum fell about 0.2 percent to $962.80, while palladium was steady at $980.34. LINK
The Capital Of Private Banks In Iraq Increased By 7.3%
Economy breaking Central Bank of Iraq Private banks High capital
2024-11-11 00:21 Twilight News/ And he said The bank, in a report seen by Shafaq News Agency, said it recorded an increase in total capital Private banks operating in Iraq during the first quarter of this year, by 7.3% to reach 19.2 trillion dinars, compared to 19.7 trillion dinars for the same period last year.
And between Private banks operating in Iraq increased their capital by 6%, while it rose The capital of government banks increased by 11.1%.
He added The contribution of private banks’ capital amounted to 73.2%, while the contribution of private banks’ capital amounted to 73.2% Government banks 26.2%.]
He explained The bank said that deposits in the first quarter of this year increased by 1.2% to reach 123.7 One trillion dinars, compared to 122.2 trillion for the same period of the previous year, thus increasing Current deposits increased by 3.1% as a result of the increase in current expenses for employees’ wages and salaries In the public sector, while savings deposits decreased by 3%, deposits also decreased Fixed at 10%.
https://shafaq.com/ar/اقتصـاد/ارتفاع-ر-وس-موال-المصارف-الخاصة-بالعراق-بنسبه-7-3
For current and reliable Iraqi news please visit: https://www.bondladyscorner.com/