The Problem Of Fluctuation In The US Dollar Exchange Rate
Financial and Banking Advisor Samir Al-Nusairi Samir Al-Nusairi Once again, the fluctuation in the US dollar exchange rate has returned to the forefront, and this time it is due to speculators and traders of crises and wars, exploiting the war currently being waged by the Zionist entity against our Arab people in Palestine and Lebanon and the confusing security situation resulting from that.
The current level is above 1,500 dinars on the black market, and the continuation of this problem from time to time can be attributed to several reasons, including before 2023 the lack of control over the organization of trade financing and the lack of a clear trade policy, the entanglement of policies and the lack of an annual import program for the private sector in terms of quantities and amounts, but imports are open and without controls on external transfers.
In addition to “the lack of control over illegal imports and unofficial border crossings, as well as the presence of about 1,200 exchange offices spread across all governorates that are not licensed by the Central Bank and deal in cash dollars and about 12,000 outlets for disbursing pensioners’ salaries and social care that deal with its trading at the exchange rate on the black market.”
And that “most traders who obtain the US dollar at the official price from the Central Bank, but they sell their goods in the local market at the black market price, as well as the lack of global correspondent banks previously dealing with our banks and accounts were not opened for them in the currencies of countries with which we have extensive trade exchange such as China, India, Turkey and the Emirates.” Also,
“the failure of traders and some Banks comply with international banking standards that guarantee that the dollar reaches the final beneficiary, so dollar transfers are manipulated and reach countries that are sanctioned by the US or are internationally besieged.
Therefore, the efforts of the Central Bank and the government in 2023 focused on drawing up a strategy for financial and banking reform in order to control the stability of the exchange rate.
“Among these strategies are organizing foreign trade financing, building new international understandings with global banks, and opening accounts for our banks in correspondent banks, as more than 30 accounts have been opened with American, Chinese, Emirati, Turkish, and Indian banks.
We expect that during the next two months the number of Iraqi banks that have accounts in correspondent banks will increase due to the efforts made by the Central Bank to provide aid and assistance to them and coordinate with the targeted correspondent banks.
“Opening dealings with local currencies such as the Chinese yuan, the European euro, the Emirati dirham, the Turkish lira, and the Indian rupee in foreign transfers with the aim of reducing the demand for the US dollar, in addition to taking measures in cooperation between the Central Bank and the government to expand the comprehensive digital transformation from the cash economy to the digital economy and stimulate the use of electronic payment tools.
This strategy aims to “put pressure on speculators dealing in cash dollars in the black market and limit their activities that harm the national economy, which was discussed in last week’s meeting of the Prime Minister in the presence of the Minister of Finance, the Governor of the Central Bank, advisors, and directors of government banks.”
It should be noted here that “the availability of foreign exchange reserves for the Central Bank exceeding 100 billion dollars and a gold reserve exceeding 143 tons confirms that the Iraqi dinar will recover and is strong, as the local currency in circulation is covered by the foreign exchange reserve, in addition to the other executive measures to support and stimulate the local product and control the monetary market and the commercial market, which will control the exchange rate, as I expect, in the near future.”
More than a billion dollars in sales from the Central Bank of Iraq during the week
The total sales of the Central Bank of Iraq of hard currency for the US dollar during the days in which the auction was opened last week exceeded one billion dollars.
The sources reported that the Central Bank sold during the past week and for the 5 days in which the auction was opened one billion, 309 million, 74 thousand, and 838 dollars, at a daily average of 261 million, 814 thousand, and 876 dollars, higher than the previous week, which amounted to one billion, 36 million, 172 thousand, and 839 dollars.
The highest sales of the dollar were on Tuesday, when sales amounted to 265 million, 549 thousand, and 741 dollars, while the lowest sales were on Sunday, when sales amounted to 257 million, 883 thousand, and 86 dollars.
Our correspondent indicated that foreign remittance sales during the past week amounted to 1 billion, 254 million, 458 thousand, and 363 dollars, an increase of 96% compared to cash sales, which amounted to 54 million, 616 thousand, and 20 dollars.
Oil Posts Second Straight Weekly Gain Amid Supply Disruption Fears
Oil prices fell at the settlement at the end of Friday’s sessions, but achieved weekly gains for the second consecutive time amid the contrast between the impact of Hurricane Milton on fuel demand in the US state of Florida and fears of a possible supply disruption in the Middle East.
Brent crude futures fell 36 cents, or 0.45%, to $79.04 a barrel at settlement, and US West Texas Intermediate crude futures lost 29 cents, or 0.38%, to $75.56 a barrel. Both benchmarks rose more than 1% during the week.
Crude oil prices rose this month after Iran fired more than 180 rockets at Israel on October 1, raising the possibility of Israel responding by striking Iranian oil facilities. Israel has not yet responded to the attack.
Israeli Defense Minister Yoav Galant said that any strike against Iran would be “deadly, targeted and surprising.”
In the United States, Hurricane Milton barreled into the Atlantic Ocean on Thursday after making its way through Florida, killing at least 10 people and knocking out power to millions.
The state suffered from gasoline shortages earlier in the week as drivers stocked up ahead of the hurricane, with nearly a quarter of Florida’s gas stations running out of fuel by Wednesday morning.
Florida is the third-largest consumer of gasoline in the United States, but there are no refineries in the state, leaving it reliant on seaborne imports.
On the supply side, Libya’s National Oil Corporation said it had restored crude production to pre-central bank crisis levels of 1.25 million barrels on Friday. /End9
Water Resources Begins Developing A Comprehensive Plan To Manage And Sustain Ecotourism In Basra Marshes
The marshes Construction and reconstruction Economy News – Baghdad The Ministry of Water Resources announced, on Saturday, the start of developing a comprehensive plan to manage and sustain ecotourism in the Basra marshes, and stressed the need to ensure that tourism is practiced in a sustainable manner.
The Assistant Director of the Center for the Revitalization of Iraqi Marshes and Wetlands in Basra Governorate, Nazim Abdul Imam Fayez, said in a statement, which was reviewed by “Al-Eqtisad News”, that “based on the recommendations of the World Heritage Committee in paragraph (11) in session (46) regarding the property of the marshes of southern Iraq, work has begun on developing a program and implementing a comprehensive plan for managing ecotourism in the marshlands areas.
” Fayez added that “the committee stressed ensuring the practice of tourism in a sustainable manner, and identifying environmental paths within the marshes,” noting “the importance of tourism and its organization and the necessity of updating this study to improve the environment in the southern marshes.”
He explained that “river field trips were conducted within the marshes of Al-Mashab and Al-Sallal, which are considered part of the eastern Hammar Marsh and within which the World Heritage Reserve is located, with an area of (200) km2, starting from the boat dock in Al-Manzouri in the governorate; in order to identify environmental and river paths, accompanied by a joint committee from the Arab Regional Center for World Heritage, Basra Governorate and representatives of the relevant ministries and bodies.”
He added, “The ministry has paid attention to the marshlands by developing an annual plan to purify the main and secondary nutrients and support and strengthen the payment to preserve the biodiversity, plant and water storage and improve its quality,
in addition to installing monitoring stations to identify the quality of water and discharges coming into the marshes on a daily basis in cooperation with the National Center for Water Resources Management in Basra Governorate.”
Dollar Exchange Rate Drops In Baghdad
The US dollar exchange rate fell in Baghdad markets on Saturday morning.
The dollar exchange rate stabilized at the opening of the Al-Kifah and Al-Harithiya stock exchanges, recording 153,800 dinars per 100 dollars, the same prices recorded last Thursday.
The selling prices stabilized in exchange shops in local markets in Baghdad, where the selling price reached 154,750 dinars, while the purchase price reached 152,750 dinars per 100 dollars.
