Iraq News Highlights and Points to Ponder Saturday Afternoon 12-7-24
Is Iraq Affected Economically By The Current Events In Syria? Al-Sudani’s Advisor Explains
Money and business Economy News – Baghdad The Prime Minister's Advisor for Economic Affairs, Mazhar Mohammed Salih, confirmed the strength of the Iraqi economy, its financial flows and its trade relations, noting that this economy was not affected by the tensions taking place in the Syrian arena.
The Syrian economy is a sanctioned economy by countries such as the United States and some other European countries, and therefore all banking relations (for Iraq) with Syria are basically unavailable," Saleh said.
He explained that "trade with Syria is mostly border trade and consists of simple, natural civilian goods such as agricultural crops or something like that."
Limited" impact on border trade
Regarding the impact of the events in Syria on the exchange rate of the dollar in Iraq, Mazhar Muhammad Salih said that “the current events are in Syria and not in Iraq,” adding that “the problems in Syria may affect some of the simple border trade known, or which is civil or related to the tourism sector, and some simple problems and disturbances may occur, but they are not major disturbances.”
Coinciding with the advance of the Syrian armed opposition forces and their control over Syrian cities, the currency exchange markets in Baghdad witnessed, last Friday evening, a rise in the dollar exchange rate from 1495 dinars to 1510 dinars per dollar.
The Iraqi Prime Minister's advisor for economic affairs pointed out that "the Iraqi economy, by nature, has high cash flows from its oil trade and global trade with large trade sources, while the minor fluctuations that are taking place are nothing but colorful noise."
He explained that "the parallel markets usually benefit from any political event in neighboring countries, for example, to raise the price, and for speculators to benefit, so this is a temporary speculation that leads to very simple price disturbances, and has no relation to the Iraqi economy, and is called information markets, so what is happening in Syria at the present time will not affect the Iraqi economy, and our economy is completely isolated from the Syrian issue."
It is noteworthy that the volume of trade exchange between Iraq and Syria has exceeded the one billion dollar barrier, according to the head of the Iraqi-Syrian Business Council, Hassan Sheikh Zeini.
There are joint committees between the two countries looking for a mechanism for trade exchange away from the dollar, as Syria currently exchanges with the European currency, the euro, and the two countries may use the Russian ruble, the Japanese yen, the Chinese yuan, the Emirati dirham, or other currencies to sustain trade exchange between them, according to Sheikh Zini.
"Iraq is economically fortified"
Saleh stressed that "the country is immune and there is no fear for our trade because it is governed by the central policies of the state," noting that "Iraq obtains its budget from major oil revenues, which strengthen the banks' finances and finance Iraq's foreign trade, not the domestic market," adding that "the parallel market is a completely superficial market and does not indicate anything in reality about the Iraqi economy at the present time."
The Prime Minister's advisor for economic affairs stated that "the parallel market benefits from the neighboring unrest and does not pose any threat to the Iraqi economy and does not represent anything, and we are immune to what is happening in Syria," explaining that "the problems in Syria are not new to it and have existed since 2011, so there is no fear for the Iraqi economy, which is immune and neutral from the problems of others."
Saleh stressed that "our policies are disciplined, so what is happening in Syria does not affect the overall economic situation, and an increase in the exchange rate by one or two dollars could quickly return to its previous state, perhaps through a single statement."
He believed that "Iraq's economic situation is secure, its oil policies are calm, its trade relations with the outside world are going well, and its cash flows from cash revenues are good and beyond reproach, and thus the economic situation is stable."
89 views Added 12/07/2024 https://economy-news.net/content.php?id=50611
Baghdad.. Exchange Rates Record 152 Thousand Dinars Per Hundred Dollars
Money and business Economy News – Baghdad ]The dollar price witnessed a rise with the opening of the Al-Kifah and Al-Harithiya stock exchanges, recording 151,000 dinars for every 100 dollars.
The selling price in exchange shops in local markets in Baghdad was recorded at 152,000 dinars, while the buying price was 150,000 dinars for every 100 dollars. Views 61 Added 12/07/2024 - https://economy-news.net/content.php?id=50613
Morgan Stanley Raises Oil Price Forecast For H2 2025
Economy | Mawazine News – Baghdad Morgan Stanley raised its Brent crude price forecast for the second half of 2025 and said it now expects a smaller surplus in the oil market for the full year after the OPEC+ alliance of oil producers decided to delay and slow plans to increase output. The
bank raised its Brent price forecast for the second half of 2025 to $70 a barrel from $66-$68 a barrel in a December 5 forecast.
The OPEC+ alliance, which groups members of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, on Thursday delayed the start of oil output increases by three months to April. The group said the cuts would be phased in until September 2026, nine months later than previously planned. https://www.mawazin.net/Details.aspx?jimare=257205
Escalating Events In Syria “Confuse” Iraqi Markets
Posted on2024-12-07 by Sotaliraq For several days, Iraqi markets have been facing a state of confusion due to the closure of the Iraqi-Syrian border against the backdrop of the rapid developments witnessed in the Syrian provinces and the continuous advance of the opposition forces and their control over large areas.
Iraq used to receive dozens of trucks loaded with Syrian export products daily, most notably agricultural products, in addition to household products, textiles, various food industries, oils, detergents and clothing, which now cover part of the needs of the Iraqi market. The
Baghdad government announced last Sunday the complete closure of the western international border adjacent to the Syrian side, considering Iraq's security to be one of the most important priorities, and any threat that could affect the country's territory and sovereignty will be confronted.
Prime Minister Mohammed Shia al-Sudani stressed, during an emergency meeting of the Iraqi National Security Ministerial Council, the importance of tightening the measures taken to secure the international border with Syria.
In turn, Deputy Commander of Joint Operations Qais al-Muhammadawi said in press statements that the Iraqi border is completely closed, noting that the Iraqi forces are committed to the Prime Minister's orders regarding protecting the security and safety of the country's borders.
This caused confusion in the Iraqi local market, which relies on Syrian agricultural and industrial products for many of its imports.
Traders and businessmen demanded the reopening of border crossings for shipments to enter or exit between the two countries, stressing the importance of controlling and securing official border crossings and allowing the entry and exit of goods to avoid the economic damage that this closure will cause.
Economic researcher Ali Al-Amiri said that closing the border could result in tangible economic damage to the Iraqi economy, because economic relations between the two countries depend largely on the exchange of goods and products, especially daily consumer goods, and the cessation of this exchange leads to direct and indirect effects.
Al-Amiri added that Iraq imports a variety of goods from Syria, including agricultural products, such as vegetables and fruits, industrial products and food, and closing the border will lead to a shortage of these products in Iraqi markets, which may raise their prices and increase inflation.
He stated that the border roads between the two countries represent a major land transport corridor, and the movement of trucks will be disrupted, which will negatively affect the transport sector and push shipping companies to look for alternative routes at higher costs, especially since 70% of Syrian exports are agricultural products, the quantities of which exported to Iraq, according to the latest data, amounted to about 350 thousand tons annually.
The economic researcher explained that Syrian products are cheaper compared to their counterparts imported from other countries, and therefore their absence will lead to increased reliance on more expensive imports from other countries, which will worsen the living conditions of the Iraqi citizen.
Al-Amiri pointed out that these effects will consequently be reflected in cash flow and the rise in the value of the dollar against the dinar, due to the increased demand for the dollar and the increased need for foreign currencies to cover imports.
He stressed that the increased need for foreign currencies increases pressure on the exchange rate of the dinar against the dollar, in addition to the increase in transportation costs, as traders are forced to look for alternatives through other ports or land routes, which raises import costs that are usually paid in dollars.
For his part, Majid Muzan, a member of the Federation of Iraqi Chambers of Commerce, said that trade exchange between Iraq and Syria includes various goods, most notably food and semi-finished goods, stressing that Iraq's trade with its surroundings is in the interest of neighboring countries due to the weakness of local industry.
Muzan added that the events taking place in Syria have negatively affected the Iraqi market, and their results have become negative for the local Iraqi economy, because Syria is considered a vital country in the region and possesses the industrial raw materials that Iraq needs.
According to the member of the Federation of Iraqi Chambers of Commerce, Aleppo is considered the capital of trade and industry in the region and a center for the most important manufacturing, paper, craft and plastic industries, stressing that the continuation of events in Syria will push traders to head to alternative markets in neighboring countries represented by Turkey and Iran.
Muzan criticized the weakness of local production and complete reliance on imports from outside Iraq, stressing the importance of developing and supporting local industries and opening industrial projects represented by manufacturing and plastic industries in order to protect the Iraqi economy from being affected by any regional events.
According to an official source in the Syrian regime government earlier, the volume of Syrian exports exceeded the 500 million euro barrier in the first six months of 2024, noting that most of the exports to Iraq are food commodities. Baghdad relies on imports from various countries around the world to meet the needs of local markets.
Iraq ranked first as the largest destination for Syrian exports in 2020, and subsequent data in 2021 showed a significant increase in Syrian exports to Iraq, as the value of exports exceeded 79 million euros in the first seven months of the same year. LINK
Al-Sudani's Advisor: Iraq's Economy Will Not Be Affected By Current Events In Syria
Saturday,07-12-2024,AM 10:21 Taisir Al-Asadi
The Iraqi Prime Minister's Advisor for Economic Affairs, Mazhar Mohammed Salih, confirmed the strength of the Iraqi economy, its financial flows and its trade relations, noting that this economy has not been affected by the tensions taking place in the Syrian arena.
Mazhar Muhammad Salih told Rudaw Media Network, "The Syrian economy is an economy sanctioned by countries, such as the United States and some other European countries, and therefore all banking relations (of Iraq) with Syria are basically unavailable."
He explained that "trade with Syria is mostly border trade and consists of simple, natural civilian goods such as agricultural crops or something like that."
"Limited" impact on border trade
Regarding the impact of the events in Syria on the exchange rate of the dollar in Iraq, Mazhar Muhammad Salih said that “the current events are in Syria and not in Iraq,” adding that “the problems in Syria may affect some of the simple border trade known, or which is civil or related to the tourism sector, and some simple problems and disturbances may occur, but they are not major disturbances.”
Coinciding with the advance of the Syrian armed opposition forces and their control over Syrian cities, the currency exchange markets in Baghdad witnessed, last Friday evening, a rise in the dollar exchange rate from 1495 dinars to 1510 dinars per dollar.
The Iraqi Prime Minister's advisor for economic affairs pointed out that "the Iraqi economy, by nature, has high cash flows from its oil trade and global trade with large trade sources, while the minor fluctuations that are taking place are nothing but colorful noise."
He explained that "the parallel markets usually benefit from any political event in neighboring countries, for example, to raise the price, and for speculators to benefit, so this is a temporary speculation that leads to very simple price disturbances, and has no relation to the Iraqi economy, and is called information markets, so what is happening in Syria at the present time will not affect the Iraqi economy, and our economy is completely isolated from the Syrian issue."
It is noteworthy that the volume of trade exchange between Iraq and Syria has exceeded the one billion dollar barrier, according to the head of the Iraqi-Syrian Business Council, Hassan Sheikh Zeini.
There are joint committees between the two countries looking for a mechanism for trade exchange away from the dollar, as Syria currently exchanges with the European currency, the euro, and the two countries may use the Russian ruble, the Japanese yen, the Chinese yuan, the Emirati dirham, or other currencies to sustain trade exchange between them, according to Sheikh Zini.
"Iraq is economically fortified"
Mazhar Mohammed Saleh stressed that "the country is immune and there is no fear for our trade because it is governed by the central policies of the state," noting that "Iraq obtains its budget from major oil revenues, which strengthen the banks' finances and finance Iraq's foreign trade, not the domestic market," adding that "the parallel market is a completely superficial market and does not indicate anything in reality about the Iraqi economy at the present time."
The Iraqi Prime Minister's advisor for economic affairs stated that "the parallel market benefits from the neighboring unrest and does not pose any threat to the Iraqi economy and does not represent anything, and we are immune to what is happening in Syria," explaining that "the problems in Syria are not new to it and have existed since 2011, so there is no fear for the Iraqi economy, which is immune and neutral from the problems of others."
Mazhar Mohammed Saleh stressed that "our policies are disciplined, so what is happening in Syria does not affect the overall economic situation, and an increase in the exchange rate by one or two dollars could quickly return to its previous state, perhaps through a single statement."
He believed that "Iraq's economic situation is secure, its oil policies are calm, its trade relations with the outside world are going well, and its cash flows from cash revenues are good and beyond reproach, and thus the economic situation is stable." https://non14.net/public/172643