Iraq Economic News and Points to Ponder Tuesday Afternoon 2-11-25
Oil Steady As Investors Digest New US Tariffs
Energy Economy News – Baghdad Oil prices steadied on Tuesday as traders digested another round of trade tariffs, this time a 25 percent duty on all U.S. steel and aluminum imports, which could hurt global economic and energy demand in the world's biggest oil consumer.
Brent crude futures rose 11 cents, or 0.14 percent, to $75.98 a barrel by 01:28 GMT, while U.S. West Texas Intermediate crude rose 5 cents, or 0.07 percent, to $72.37.
US President Donald Trump decided on Tuesday to increase customs duties on steel and aluminum imports to the United States by 25% "without exceptions or exemptions" to help struggling industries that could increase the risk of a trade war on multiple fronts.
Investors had hoped that a Trump presidency would boost the energy sector, and the tariffs would affect millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries.
Tariffs could weaken global economic growth and energy demand, leading to weaker oil prices.
Trump last week postponed imposing 25% tariffs on imports from Mexico and Canada, and 10% on Canadian crude oil, until March 1, pending negotiations with those countries.
The president also imposed an additional 10% tariff on China, to which Beijing responded by imposing its own tariffs on some US imports, including a 10% tariff on crude oil.
The Fed faces the risk of higher inflation. Keeping interest rates at higher levels could limit economic growth, which could impact oil demand growth. https://economy-news.net/content.php?id=52683
Foreign Remittances Account For More Than 96% Of The Central Bank Of Iraq’s Sales
Buratha News Agency 14120 25-02-11 Foreign remittances, today, Tuesday, recorded a percentage exceeding 96% of the total sales of the Central Bank of Iraq in the hard currency auction, in an indication of the dollar’s continued trend towards strengthening foreign balances.
Its sales in today’s auction amounted to 292 million, 823 thousand, and 314 dollars, at a basic exchange rate of 1310 dinars per dollar for documentary credits and international settlements for electronic cards, and foreign remittances, while the cash exchange rate amounted to 1305 dinars per dollar.
While most of the dollar sales were focused on strengthening external balances in the form of transfers and credits, amounting to 283 million, 373 thousand and 314 dollars, equivalent to 96.86% of total sales, compared to cash withdrawals that did not exceed 9 million and 450 thousand dollars.
The bank explained that only one bank bought the dollar in cash, while six banks met requests to enhance foreign balances, with 14 exchange companies participating in the auction. https://burathanews.com/arabic/economic/456295
Advisor To The Prime Minister: Iraqi-American Relations Are Very Good And The Speculations About Them Are Baseless
Time: 2025/02/11 Reading: 630 times {Politics: Al Furat News} The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed that relations between Iraq and the United States of America are very good and distinguished, and operate within a high-level diplomatic and economic framework.
Saleh told Al Furat News Agency that "the interests of the two friendly countries are moving in positive directions, especially in the field of economic, investment and trade cooperation."
He explained that "what is being raised by some parties regarding this relationship falls within the framework of political fears, concerns and baseless speculations, and is connected to the changes in the new administration in the United States and its connections with vast political geographies," stressing that Iraq is not a party to it. LINK
Minister Of Finance Stresses Importance Of Regional And International Cooperation To Address Growing Economic Challenges
Tuesday 11 February 2025 | EconomicNumber of readings: 256 Baghdad / NINA / Minister of Finance Taif Sami stressed today, Tuesday, the importance of regional and international cooperation to confront the growing economic challenges.
Sami stressed, during her participation in the activities of the Ninth Public Finance Forum in Arab Countries, organized by the UAE Ministry of Finance in cooperation with the Arab Monetary Fund and the International Monetary Fund, within the preliminary day of the World Government Summit 2025, with the participation of Arab finance ministers, economic experts and officials from international and regional financial institutions, according to a statement by the Ministry of Finance,
"the importance of adopting flexible financial policies to confront the growing economic challenges and achieving a balance between the requirements of development, financial sustainability and climate action has become an urgent necessity in light of the state of uncertainty witnessed by the global economy."
She pointed out "the importance of structural reforms in enhancing financial stability and achieving sustainability of public spending," stressing "the need to develop financial policy tools to improve spending efficiency and enhance financial transparency.
" She stressed "the importance of regional and international cooperation to support the efforts of Arab countries to confront economic challenges and achieve sustainable development."
The statement continued, "The forum, which is held under the title (Public Finance Resilience in an Uncertain World), discussed ways to achieve this balance, through four sessions that discuss the most prominent economic challenges, including the effects of the macroeconomy on public finance, debt pressures, financial policies to adapt to climate change, and developing tax systems to keep pace with economic transformations."
The participants in the forum discussed mechanisms for financing sustainable development, the role of regional and international financial institutions in supporting Arab countries to achieve their economic goals, in addition to discussing the opportunities and challenges associated with adopting modern financial technologies to enhance digital transformation in the financial sector.
The forum concludes with a ministerial roundtable that brings together Arab finance ministers and officials from the International Monetary Fund and the Arab Monetary Fund to discuss mechanisms for regional financial cooperation and priorities for the next stage in economic and financial policies. / End https://ninanews.com/Website/News/Details?key=1184958
Syria Asks Iraq To Open Its Borders To Export Goods
Reports
Syria is seeking to strengthen economic relations and resume trade with Iraq, but the emergence of complex obstacles threatens these efforts, starting with Baghdad’s refusal to register new Syrian companies, to the absence of official bank transfers between the two countries, according to Ibrahim Shalash, a member of the Syrian-Iraqi board of directors.
Shalash points out that despite Syria completing the requirements for operating the Albukamal crossing, the Baghdad government is still hesitant to open the border with Damascus, which increases the challenges facing Syrian exporters.
Waiting For The Iraqi Decision
He confirms that "the Syrian side in Albukamal has been ready for 15 days to receive Iraqi cars and trucks wishing to enter Syria, from all security and administrative aspects, including customs and passports," indicating that "the Iraqi side has not opened the borders yet."
“Syrian exporters are suffering from economic sanctions that are gradually being lifted, such as the Caesar Act and US and European sanctions. However, the biggest problem facing trade with Iraq remains the lack of banking cooperation between the two countries, as there are no official bank transfers, forcing traders to use the black market, where money is transferred at a rate of 1,500 Iraqi dinars per dollar, instead of the Central Bank of Iraq’s rate of 1,320 dinars per dollar,” he added.
Shalash pointed out that "this leads to an increase in the costs of Syrian products, in addition to the high cost of shipping between the two countries, which makes Syrian products reach Iraq at high prices compared to Iranian, Jordanian, Turkish, Emirati and Chinese products."
Industry And Market Competition
Shalash continued, saying, "The Syrian industry is one of the strongest industries in the region, whether in the pharmaceutical, textile, clothing or food sectors, as it is distinguished by a quality that surpasses many competing products."
He explained that "the Syrian industry has contributed significantly to reviving the Turkish economy, as between 2 and 3 million Syrians work in it," noting that "most of the Turkish clothes that reach Iraq are in fact manufactured in Syrian factories inside Turkey."
Regarding the export of Syrian medicines to Iraq, Shalash added that “Syrian medicine is widely accepted in Iraq due to its therapeutic effectiveness,” noting that “before the Syrian crisis in 2011, the Iraqi market relied heavily on Syrian products, which constituted about 70 to 80% of the total imported goods.”
He added, "There are more than 50 Syrian factories registered in Iraq and have local agents, but in recent years 15 to 30 new factories have been established, and they need to register with the Iraqi Ministry of Health to be able to export their products to Iraq."
Iraq Hinders Registration Of Syrian Companies
Shalash revealed that, “On January 13, 2025, the Iraqi Ministry of Health issued a decision to prevent Iraqi scientific offices from registering new Syrian companies, even though these factories were primarily targeting the Iraqi market.”
Shalash pointed out that "a meeting was held with the Iraqi Deputy Minister of Health, Hani Al-Aqabi, to discuss the repercussions of the decision and its impact on the Syrian economy, where Al-Aqabi requested a one-month grace period to reconsider the issue after the situation in Syria stabilizes."
He pointed out that "Al-Aqabi expressed his fear of sending a committee from the Iraqi Ministry of Health to Syria for security reasons, despite the assurance to him that the situation in Syria is stable, with guarantees provided to protect the committee by the Syrian security authorities, the Ministry of Health, and the Syrian ambassador in Baghdad, Sattam Al-Dandah."
Shalash stressed that "the security incidents in Syria are limited to specific areas, while Damascus, Aleppo, the Damascus countryside, and the industrial areas are completely safe, and life there is normal."
Iraq Ready to Resume Trade Exchange
For his part, the head of the Iraqi-Syrian Business Council, Hassan Al-Sheikh, said, "The Iraqi side has completed preparations to resume trade exchange with Syria, and has stipulated that the Syrian side establish an integrated outlet at the border, in order to ensure that smuggled goods do not enter."
The sheikh added, "The Syrian side has fulfilled all the requirements of the port, including securing guards, customs, passports and seals, and is now waiting for the Iraqi security leaders to sign an agreement regulating the work of the port, specifying the materials allowed to be exported and the required documents, such as certificates of origin, customs declarations and inspections."
The Sheikh pointed out that "the outlet will be ready during the current week, according to what the Iraqi side was informed of."
As for the materials that will be exchanged between the two countries, the Sheikh explained that “Iraq will export dates and some food and industrial products to Syria, while it will import from Syria sweets, pastries, fruits and vegetables, in addition to cosmetics, perfumes, medicines, medical supplies and others.”
Iraqi Trade Decides The Matter
In turn, the Iraqi Ministry of Trade responded to the issue of trade exchange with Syria.
Mohammed Hanoun, the spokesman for the Iraqi Trade Ministry, said, “There is no governmental cooperation between Syria and Iraq until the situation in Syria stabilizes so that the Iraqi-Syrian committee can complete its meetings and issue a report according to the data of the political system in Syria.”
Hanoun continued, "As for the Iraqi and Syrian private sectors, there is only trade exchange related to vegetables and simple things at the present time."
It is noteworthy that the Syrian Ministry of Economy revealed, in a special statement to (January 25, 2025), its plan to strengthen the local economy, which includes supporting exports, opening new markets for Syrian products, and enhancing trade exchange with friendly countries, including Iraq, in addition to developing the logistical infrastructure to facilitate export operations.
On January 6, 2025, the Syrian Minister of Economy in the interim government, Basil Abdul Hannan, revealed that there are government plans to develop economic relations with Iraq.
Abdul Hanan stressed that "developing economic relations between the two countries includes industrial integration, enhancing trade exchange, as well as providing facilities to facilitate the movement of goods and services, encouraging the establishment of joint investment projects, and simplifying customs procedures." https://economy-news.net/content.php?id=52690
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