Iraqi News

Friday Morning Iraq Economic News Highlights 2-3-23

The Start Of The Second Meeting Between The Iraqi Delegation And The US Federal Government Regarding The Dollar

Economie| 02:00 – 03/02/2023   Baghdad – Mawazine News  started, just before, the second meeting between the Iraqi delegation and the US Federal Bank regarding the dollar.  An informed source said, in an interview with Mawazine News, that “the meeting, which was held in Turkey, will complement yesterday’s meeting.”  A member of the Parliamentary Finance Committee, Mustafa Jabbar Sanad, revealed, at dawn today, Friday, the details of the meeting between the Iraqi delegation and the US Federal Bank, which was held in Turkey.

Sanad said in a post on his Telegram channel, “A meeting was held in Turkey between the Iraqi delegation and a delegation representing the US Federal Reserve to discuss the status of the dollar.”

He added, “The meeting ended and it was agreed on a number of things, and the meeting will be renewed tomorrow in Turkey as well, and then the expanded meeting in Washington on 2-8-2023.” Ended 29 / h.   https://www.mawazin.net/Details.aspx?jimare=218308

Deputy: The Budget Is Still In The Corridors Of The Ministry Of Finance And Has Not Been Discussed In The Council Of Ministers

Economie  14:16 – 2023-02-03   Today, Friday, the representative of the coordination framework, Ali Al-Bandawi, suggested that the budget reach the Council of Ministers during the next seven days, pointing out that the delay occurred in the Ministry of Finance, as the budget is still in its corridors.

Al-Bandawi said in a press statement, “The budget is still in the corridors of the Ministry of Finance and has not been discussed in the Council of Ministers, and the House of Representatives has worked in the past period to delay its legislative recess for a month in the hope that the budget will arrive in order to vote on it.”

He added that “the technical committees in the Ministry of Finance were facing a problem related to the size of the large expenditures that came from the ministries, governorates, government agencies and institutions.”

Al-Bandawi suggested that the budget will reach the Council of Ministers next week, as Parliament is waiting for it to be handed over from the government to it, in order to study it, discuss it and make transfers on it, if any, and whoever reads it twice and votes on it, especially since everyone in the parliament is waiting for it to arrive from the government. https://kirkuktv.net/AR/Details/12965

Parliamentary Services: Traders Stopped Exchanging Dollars Exacerbated The Crisis Even More

Time : 2023/02/03   {Economic: Al-Furat News} attributed the Parliamentary Services Committee, the escalation of the crisis of the rise in the exchange rate of the dollar, traders stopped exchange.

The deputy head of the committee, Baqir al-Saadi, told the agency {Euphrates News}: “We are waiting for the decline in dollar exchange rates in the coming days,” based on that “the reasons that worsened the matter more stopped some traders to exchange the dollar.”

He pointed to “the formation of a specialized committee that includes the Ministry of Finance and the Central Bank to control exchange rates and restore them to their previous state.”

Al-Saadi predicted “the return of the exchange rate during the current month at the lowest estimates and the provision of full support to citizens because the market is affected by these prices.”

On Thursday, Prime Minister Mohammed Shia al-Sudani chaired the second meeting of the Federation of Chambers of Commerce and the Association of Iraqi Banks, as well as the bodies of taxes, customs, border crossings and the Central Bank.

Al-Sudani directed to simplify the procedures for traders’ transactions in the concerned state departments, stressing that this stage, despite its forestry, is a gateway to economic reform.

Raghad Daham     https://alforatnews.iq/news

The Chamber Of Commerce Submits A Request To Solve The Dollar Crisis In Internal Transactions

The head of the Diyala Chamber of Commerce, Muhammad al-Tamimi, said in a press interview seen by “Takadam” that “the chambers of commerce in the country, including Diyala, will submit an official request to the Prime Minister regarding resolving the dollar crisis in internal transactions by granting every merchant who has an official license from the chambers an authorization to buy dollars.” at central bank rates to pay off internal transactions.”

And he added, “The government’s assignment of merchants by securing liquidity in resolving internal exchanges between provincial merchants will reduce pressure on the currency markets,” stressing “the need to take a series of measures to solve the problem of dollar scarcity at the present time.”

He pointed out that “the government supports merchants in foreign exchanges, and there is no problem in this direction at the present time.”

The Iraqi market is currently suffering from a severe dollar crisis, with its exchange rate rising to more than 175,0 00.   https://takadum-news.com/archives/146665

Baghdad And Washington “Agree On, Among Other Things” On The Status Of The Dollar In Iraq

Baghdad – IQ     Representative Mustafa Sanad said, on Thursday, that the Iraqi and American authorities agreed on “inter alia” regarding the dollar currency in Iraq.

Sanad said, in posts followed by IQ NEWS, that an Iraqi delegation met with a delegation representing the US Federal Bank in Turkey to “discuss the status of the dollar.”

He added that the two parties agreed “on a number of things, and the meeting will be renewed tomorrow in Turkey as well, and then (to hold) an expanded meeting in Washington on February 8.”

So far, no Iraqi or American statement has been issued in this regard.

The US Federal Bank reduced the access of Iraqi banks to the dollar currency and imposed strict restrictions and follow-up on dollar transfers from Iraq to other countries.  The exchange rate of the dollar against the Iraqi dinar rose to record levels.  https://www.iqiraq.news/security/46625–.html

International Report: The Solution To The Dollar Crisis In Iraq Is Imminent And Its Signs Will Appear Tomorrow

Translated Reports / Economics |Yesterday, 22:40 |Baghdad Today – Translation    The Associated Press International News Agency considered today, Thursday, that the solution to the dollar crisis in Iraq is imminent, according to indicators, describing Al-Sudani’s statements that the crisis is “temporary” as “accurate” statements.

The agency said in a report translated by (Baghdad Today), that “Sudani’s description of the dollar crisis as “temporary and subject to commercial speculation,” is accurate with regard to Iraq’s economic capabilities, explaining that “the Sudanese government will send tomorrow, Friday, a delegation to Washington to begin resolving the crisis through direct communication with The White House expected that the visit would lead to a breakthrough in the current crisis.

The agency reported statements by the official of the Iraq department at the Emirates Research Center, Harith Hassan, during which he affirmed that “Iraqi measures, if fully implemented, will not lead to a complete cessation of bleeding, but they will provide Iraq with a reserve of dollars that will last for a whole year,” noting that “the stability of dollar prices can be achieved.” Now, and warning against exceeding the one-year period, which he said would lead to “most banks declaring bankruptcy if the period crossed,” according to his description.

The Associated Press expected that “the crisis will be dealt with adequately, given the Sudanese government’s rapprochement with Washington and the “American position satisfied with Al-Sudani’s procedures,” noting that the Iraqi delegation, which will go to the White House tomorrow, Friday, will begin to develop solutions to the crisis directly with the American president. Which is likely to lead to positive results, “given the Sudanese government’s close relationship now with Washington,” she said.

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Amidst The Apparent ‘Chaos’.. New Directives From Al-Sudani To Control The Dollar

2023.02.02 – 23:23  Baghdad – Nas    On Thursday, the Prime Minister and Commander-in-Chief of the Armed Forces, Mohamed Shia Al-Sudani, issued directives to tackle currency smuggling and arrest smugglers and speculators at the dollar exchange rate.

“Nass” channel on Telegram.. our latest updates

Yahya Rasool, the military spokesman for Al-Sudani, stated, in a statement that “NAS” received a copy of (February 2, 2023), that “the Prime Minister and Commander-in-Chief of the Armed Forces, Muhammad Shia’a Al-Sudani, chaired a meeting, in the presence of a number of security leaders, as he issued strict directives to deal with smuggling currency, arresting smugglers and speculators at the dollar exchange rate, confiscating smuggled funds and subjecting external controls to control and scrutiny.”

Al-Sudani also emphasized, “the fluidity of banking work in banks and exchanges, to ensure freedom of currency trading in accordance with legal banking contexts that are subject to commodity and financial exchange mechanisms, facilitating foreign currency for citizens wishing to travel and treatment, and preventing intruders and beneficiaries from these procedures.”  https://www.nasnews.com/view.php?cat=101338

The Dollar Is Facing A Difficult Test.. What Is The Expected Scenario?

2023-02-03 02:28   Shafaq News/ The currency markets are awaiting with great interest the release of the US labor market data during last January, today, Friday, which will have a very strong impact on the US dollar trading against other currencies, in addition to its expected strong impact on the stock markets, metals and digital currencies.

A report by the Arab Economic Trader Network reviewed a look at the upcoming data and how it affects dollar trading:

First: A look at the US labor market during last December:

The US labor market data came positive during last December, as the economy added about 223,000 jobs, while it was expected to add about 200,000 jobs only, after the economy had added about 256,000 jobs last November.

At the same time, unemployment stabilized near 3.5% in the same period, better than market expectations, which indicated an increase in unemployment to 3.7%. It is also better than the previous reading, which recorded about 3.6% last November. While wages recorded a growth of 0.3% during the same period, less than market expectations at the time that wages would grow by 0.4%. This data had a strong and clear impact on the dollar against other currencies.

Second: Evidence for the upcoming US labor market data:

During the previous period, many economic data were released that may give an indication about the performance of the US labor market data during last January, as the data was clearly good; Thus, this may have an impact on the upcoming US labor market data, and the following are the most important of these indicators:

The US Unemployment Claims Index: It showed great positivity during last December, as the data issued by the US Labor Statistics Bureau over the past four weeks revealed the stability of most US unemployment claims near the level of 200,000 requests, which explains the decrease in aid requests during January compared to December. The past, which may give a positive impression on the upcoming US labor market data.

On the other hand, data from the US Bureau of Labor Statistics showed positive employment data in the US private sector during the month of January, as the data showed that jobs in the US economy in the non-agricultural sector increased by about 106 thousand jobs during that period, less than market expectations by adding 176 thousand jobs. . It is also lower than the previous reading, which recorded only about 253 thousand jobs during December.

Third: Market expectations regarding the US labor market data:

Market expectations indicate that accelerating the pace of interest rate hikes may have a negative impact on the US labor market data. According to expectations, the US economy is likely to add only about 193 thousand jobs. Expectations also indicate wage growth by 0.3% during the same period, in addition to the stability of unemployment at the level of 3.6% at the end of last January.

Fourth: Possible US labor market scenarios and their potential impact on the dollar:

The US dollar index is clearly stable near the level of 102 points, benefiting from the issuance of some positive economic data, on top of which are the data on unemployment benefits, and optimism about reaching the US debt ceiling crisis, and therefore the US dollar is waiting for the release of US labor market data to provide it with more support during the days coming.

The first scenario is that the US labor market data is positive and better than expected, as the economy adds many jobs, and unemployment decreases below the level of 3.5%. This positive scenario for the labor market data may raise the dollar index towards the level of 103 points, and it may head towards the level of 104 or 105 A point, because this scenario will give the US Federal Reserve more flexibility with regard to continuing to raise interest rates during the next March meeting.

While the second scenario is represented in the negative data of the US labor market and that the economy adds jobs less than expected and that unemployment rises, and in this way, the dollar may decline near the 101-point level again and may fall towards the 100-point level or less, because this scenario will make the Fed fear of The repercussions of raising interest rates, and perhaps it may stop raising interest rates, during its next meeting, especially with the recent weakness in the US inflation rate.    LINK