Bondlady’s Corner

Iraqi News Highlights Thursday Evening 3-2-23

Tlm724 Administrator Bondlady’s Corner

The Central Bank Decides To Increase Dollar Cash Sales To Banking Companies

Thursday 02 March 2023 17:49 | Economical Number of readings: 162  Baghdad / NINA / – Today, Thursday, the Central Bank of Iraq decided to increase cash sales of the dollar to banking companies, by two million dollars per week./ End 2

A Significant Decline In The Central Bank Of Iraq’s Dollar Sales In Today’s Auction

Posted On2023-03-02 By Sotaliraq  The central bank’s sales of dollars decreased at auction today, Thursday, by 70%, to record 140 million dollars.

A reporter stated, “The Central Bank sold today, during its auction for buying and selling US dollars, 82 million and 617 thousand and 564 dollars, a decrease of 70% compared to yesterday, Wednesday, in which sales amounted to 140 million, 390 thousand and 285 dollars, which the bank covered at a basic exchange rate of 1305 dinars.” For each dollar for documentary credits and international settlements for electronic cards, at a price of 1310 dinars per dollar for foreign transfers, and at a price of 1310 dinars per dollar in cash.

Our correspondent added that most of the dollar sales went to reinforce the balances abroad in the form of (remittances, credits), amounting to 63,317,564 dollars, while the remaining 19,300,000 dollars went in the form of cash sales.

Our correspondent indicated that the number of banks that bought cash dollars amounted to 8 banks, while the number of banks that responded to requests for strengthening balances abroad reached 18 banks, while the total number of exchange and mediation companies participating in the auction was 34 companies.   LINK

Trade Activates Its Economic Tools To Prevent A Rise In Prices

Money and business  Economy News _ Baghdad  The various government agencies have doubled their moves aimed at confronting the price hike resulting from the increase in the exchange rate of the dollar, especially since Iraq depends mainly on imported materials whose costs have increased as a result of the high exchange rate of the dollar, while the Ministry of Commerce revealed that it had developed a broad plan to provide various foodstuffs for a month later. In order to prevent monopoly, economic specialists see the importance of the return of “government trade” and the entry of the competent official institutions into a process of competition with the private sector in order to control prices.

Most of the prices of household goods and foodstuffs witnessed remarkable increases in previous times, which was confirmed by the Ministry of Planning, which announced high inflation rates, mainly caused by the high exchange rate of the parallel dollar adopted by importers to finance their goods.

The media spokesman for the Ministry of Commerce, Muhammad Hanoun, revealed in an interview with “Al-Sabah” and its follow-up to “Eqtisad News” that “intensified efforts to pump large quantities of flour, table eggs and chicken to direct sales outlets, and that the step comes in implementation of the directives of the Council of Ministers, and the activation of tools that will create stability My price in the local markets and the fight against monopoly.

Hanoun pointed out that this plan will continue after the blessed month of Ramadan, and it is the beginning of steps that the Ministry of Commerce will take in the near future, including the distribution of other materials, including meat, fish and cheese, and they will be accessible to the citizen at the cheapest prices.

Hanoun added, “The outlets of the Ministry of Commerce pumped large quantities of table eggs and sold them at lower prices than the local market, in addition to pumping large quantities of white flour at a subsidized price. It was also decided that the ministry’s outlets, during the coming period, will sell chicken meat in larger quantities and at a price not exceeding three Thousands of dinars per kilo, and selling a liter of milk for only one thousand dinars.”

The media spokesman added that the ministry continues its campaigns until prices stabilize in the markets and there is real supply and demand, and at that time the Ministry of Commerce will monitor the market only, but there are still indications of high prices or monopolization of materials by “crisis traders.”

For his part, academic and economic researcher Dr. Abdul Karim Al-Issawi says, “The Ministry of Commerce’s step represents a return to government trade, and this trade has pros and cons. Among its positive aspects is the import of various food, basic and investment materials and commodities from well-known origins of high quality and guaranteed use.

These suppliers bear responsibility for any Damages occur and guarantee the import of basic commodities such as cars, machinery and production equipment,” stressing that this approach “guarantees that there will be no financial and administrative corruption upon completion of the deal, as officials will be subjected to severe accountability by the central government.”

Al-Issawi continued, the government can use the commercial paper to deal reciprocally with the bilateral trading partner to achieve national interests when exposed to danger, then the government can protect the local product similar to imported foreign goods and push to pursue a policy of economic diversification, indicating that there are some negatives that may accompany the direction of trade, including that This policy may create a kind of bureaucracy and sluggishness of the job.

In turn, the academic, Dr. Amr Hisham, explained that the issue of the Ministry of Commerce adopting a direct selling policy has multiple aspects, most of which are positive and welcomed by the citizen, especially since entering the market in times of crisis is a positive thing because it strengthens supply chains, increases the supply of goods and materials, and reduces manipulation and speculation. And profit-taking by crisis traders.

Hisham believes that this intervention by the Ministry of Commerce is good in its results. As for continuing to interfere in the market by the Ministry of Commerce in normal and stable times, it may place additional unjustified financial and administrative burdens on the ministry’s cadres and on the federal budget in general.  Views 113

The Iraqi Oil Ministry Pays $2.6 Million To An American Law Firm

Energy MENAFN revealed that the Iraqi Ministry of Oil paid an American law firm $900 an hour for advice on the dispute between Iraq and Turkey over a pipeline agreement.

According to the news translated by “Al-Eqtisad News”, documents submitted under the US Foreign Agents Registration Act (FARA) revealed the amount that the Texas-based law firm Vinson and Elkins received, amounting to more than $ 2.6 million, for legal services related to arbitration. Iraq’s Oil Ministry in front of the US State Department amid a long-running dispute between Iraq and Turkey over a pipeline agreement.

The oil ministry commissioned the company, which has dealt with Baghdad many times in the past, in July 2022 to brief on legal issues in a pending arbitration brought by Iraq in 2014 against Turkey over allegations that the country breached an agreement involving a major oil pipeline.

A partner in the firm, James Loftis, was charged $900 an hour for his advice on the matter.

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