The Central Bank of Iraq warned, on Sunday, exchange companies that sell travelers’ dollars from receiving a commission exceeding 25 thousand dinars.

According to a document issued by the bank and obtained by “Al-Eqtisad News”, it is: “Through auditing and monitoring the work of your companies regarding the sale of dollars allocated to travelers, it was noted that some exchange companies collect a commission from traveling citizens in the amount of (50,000) dinars (fifty thousand dinars), and this violates the content of our circular No. 8003/1/9 dated 7/11/2024, as we previously directed you to collect a commission of (25,000) dinars (twenty-five thousand dinars only) from the citizen when he carries out the process of purchasing dollars.

She added: “In order to proceed with the mechanism that was launched to facilitate procedures for citizens in a correct and smooth manner, we hope that you will adhere to the directives issued by this bank, otherwise it may lead in the future to your companies being excluded from participating in the foreign currency buying and selling window.”

Below is the document:

https://economy-news.net/content.php?id=48129

The Central Bank Of Iraq Sells More Than $ 258 Million In Today’s Auction

The Central Bank of Iraq sold more than $258 million in dollar sales at a currency auction on Sunday.

The bank sold in its auction today 258 million, 796 thousand and 19 dollars, covering it at a basic exchange rate of 1310 dinars per dollar for documentary credits and international settlements for electronic cards, at a rate of 1310 dinars per dollar for foreign transfers, and at a rate of 1305 dinars per dollar in cash.

Most of the dollar sales went to boost balances abroad in the form of transfers and credits, which amounted to $247 million, 296 thousand and 19, an increase of 95% over cash sales of $11 million, 500 thousand.

The number of banks that purchased cash dollars was one bank, while the number of banks that met requests to enhance balances abroad was 14 banks, and the total number of exchange companies participating in the auction was 17 companies.

Oil Jumps As Regional Tensions Flare

Energy  Economy News – Follow-up  Oil prices rebounded at the end of the week after a sharp decline on Thursday, despite the Israeli war on Lebanon. According to the Oil Price Bulletin, West Texas Intermediate crude was trading at $68.52 per barrel, up 1.26%, and Brent crude was trading at $72.27 per barrel, up 0.94%, but expectations indicate that oil prices may rise even higher if Iran enters the war to support Hezbollah.

“These gains are primarily due to rising tensions in the Middle East, particularly the escalating conflict between Israel and Hezbollah. This volatility raises concerns of further disruptions to oil supplies and sea routes,” Oil Price said in a report on Friday evening.

In the same context, ABC News analysts reported in previous comments that “a potential escalation of the war in the Middle East could cause a significant spike in oil prices, igniting inflation in the United States, leading to increases in the prices of a range of basic commodities from gasoline to plastics.”

Although the supply chain disruptions did not occur as some analysts had feared earlier in the war, the rise in oil prices would have a significant impact on the U.S. economy.

Oil prices rose by about 1.5% in mid-week trading, due to concerns about the expansion of the Israeli war. According to the American network report, oil prices rose by more than 8% during the past two weeks, as the conflict in the region intensified.

Prices could have risen, but for reasons ranging from the Chinese economic growth crisis and fears of an economic recession in Europe and the United States, the price of oil is still well below the 2022 peak it reached when the hot economic recovery collided with the supply shortages imposed by Western countries on Russian energy due to the Russian-Ukrainian war.

The return of oil and gas prices to the rise could be due to the ongoing escalation in the region, experts say. “The biggest concern would be a sharp spike in crude oil prices,” Jason Miller, a professor of supply chain management at the University of Michigan, told ABC.

“That would not only push up gasoline prices, but since oil is a direct input to almost every manufacturing process, it would bring another inflationary shock,” Miller added.

The ruling Democratic Party in the United States fears that the war will expand to the point that it will disrupt oil supplies in global markets, resulting in higher prices and a return to rising inflation. If such a scenario occurs, it will be a disaster for the American and Western economies.

On Friday, Israel launched an airstrike targeting Hezbollah’s headquarters in Beirut, in the deadliest attack in nearly a year of war that killed Hezbollah Secretary-General Hassan Nasrallah. The rocket fire and maritime security warnings issued to ships at Israeli ports are directly affecting regional shipping lanes, especially as the Houthis in Yemen have increased their attacks on American and Israeli ships.

“Increased regional uncertainty, coupled with fears of more direct strikes on ports such as Haifa and Eilat, has led to increased risk assessments for shipping and oil transportation,” according to Oil Price. Insurance premiums are expected to rise as the potential for collateral damage to Israeli and nearby maritime infrastructure emerges.

Investors typically respond to these risks by raising oil prices, as markets fear supply disruptions and increased demand for safe oil reserves amid instability. “The situation remains fluid, and prices are likely to continue rising if the conflict escalates further,” according to Oil Price.

Iraq’s Oil Exports To US Rise In A Week

 The US Energy Information Administration announced on Sunday that Iraq’s oil exports to America increased during the past week. The administration said in a table that “the average US imports of crude oil during the past week from 7 major countries amounted to 5.401 million barrels per day, down by 244 thousand barrels per day from the previous week, which amounted to 5.645 million barrels per day.”

It added that “Iraq’s oil exports to America amounted to 265 thousand barrels per day last week, up by 110 thousand barrels per day from the previous week, which amounted to 155 thousand barrels per day.”

The administration also indicated that “the largest oil revenues to America during the past week came from Canada at a rate of 3.912 million barrels per day, followed by Mexico at an average of 499 thousand barrels per day, followed by Colombia at an average of 295 thousand barrels per day, and from Saudi Arabia at an average of 291 thousand barrels per day.”

According to the table, “the amount of US imports of crude oil from Nigeria was 135 thousand barrels per day, and from Ecuador was 4 thousand barrels per day.” While Import any quantity from Brazil and Libya.

Prime Minister’s Advisor: Two-Pronged Plan To Build 14,000 Schools Through Investment

Construction And Reconstruction

  Adnan Al-Sarraj, the Prime Minister’s advisor for education affairs, announced on Sunday a two-pronged plan to build 14,000 school buildings through investment, while explaining the mechanism for paying the costs.

Al-Sarraj said in a statement reported by the official news agency, and seen by “Al-Eqtisad News”, that “Iraq needs 9,600 schools, and within the next two years it may need 12,000 schools,” noting that “proposals were put forward and approved by the Prime Minister, including the construction of 4,000 schools through the Iraq Development Fund, which announced the allocation of sites for 400 of them to be completed within two years.”

He added, “The construction of these schools is done by investors after a plot of land is provided to them by the government. They also carry out maintenance and equip the school with trips and blackboards. After completion, the state rents it for 15 years, and ownership returns to the state after the expiration of the period.”

He pointed out that “there is another proposal to build 10,000 schools by having investors build and equip the schools, and the state pays sums for each student in the school to the investor.”