Financial and banking researcher Mustafa Hantoush confirmed today, Monday, that the demand in the parallel market is the reason behind the rise in the dollar exchange rate. Hantoush said, in an interview with Al-Maalouma Agency, that “the main reason for the rise in the exchange rate of the dollar against the Iraqi dinar is the demand in the parallel market.”

He added that “the huge trade with neighboring countries and the number of travelers estimated at millions caused an increase in demand in the parallel market,” noting that “some small traders do not have licenses or companies to import.”

He explained that “fears of wars in the region push traders, markets and citizens to exaggerate the quantities imported and purchased, and also push some to save dollars.”

He continued: “There are no problems in the Iraqi supply chains from (Turkey, Canada, Australia, China and India) and there are no concerns about the liquidity of the dollar in Iraq.”

Among Them Is Iraq.. The Country That Bought The Most Gold In 10 Yea

 Governments store thousands of tons of gold bullion in their vaults, as the precious metal is considered a safe haven. Iraq has become one of the most popular countries in the world in buying gold and boosting its reserves of the yellow metal.

The economic website “RBK” published a report, based on data from central banks around the world, the International Monetary Fund, the World Bank, and the World Gold Council, highlighting countries’ purchases of the yellow metal from 2013 to 2023.

According to the report, central bank purchases in the world at the end of 2023 amounted to about 1,037 tons of gold, which is the second largest volume ever purchased on an annual basis.

The report showed that Russia, China and Turkey were at the forefront of gold buying countries during the mentioned period, as the three countries’ purchases amounted to 2,903 tons of the resonant yellow metal.

Experts: Faw Port Is Iraq’s Gateway To A Global Economic Future

  Economic circles agreed on the importance of opening five berths within the Grand Faw Port project, and considered it the first step towards correcting the paths of the Iraqi economy, as the project represents the first step in an ambitious policy to create major infrastructure in the country, serving all sectors without exception, and is an acceptable approach to diversifying the Iraqi economy and providing opportunities for a wide segment. It is hoped that the project will be completed in its three phases in 2028 with a total capacity of 91 million tons annually.

Prime Minister Mohammed Shia al-Sudani, who sponsored the ceremony of receiving the five berths of the Faw Port from the Korean implementing company, described it as “the people’s project,” and that it “gains great importance due to its connection to the development road project, which will link, starting from the Grand Faw Port, the economies of most countries in the region, and will be an outlet for achieving economic integration,” noting that Iraq remains a fundamental pillar in the global economy, and a historical part and passageway of the most important international exchange routes.

The Five Platforms

Al-Sudani pointed out the importance of the five docks in the Grand Faw Port, as they represent the backbone of the port project in its first phase, which will be completed next year according to the previous timetables. Huge commercial ships with large drafts have already docked on the port docks.

Real Transformation

Chairman of the Federation of Chambers of Commerce, Abdul Razzaq Al-Zuhairi, described the opening of the five berths in the Grand Faw Port as a real transformation in the paths of national and global trade.

He said: Today we are facing a launch to serve the national economy, as we have actually begun to revive the Iraqi infrastructure in the ports sector, as this step represents an advancement to the global level of services provided to the national economy.

The Biggest Project

Al-Zuhairi added that the port’s capacity for all its phases exceeds 90 million tons annually, a number that reflects the extent of the work required in this project in particular. When the larger project, the development road and its facilities and the Grand Faw Port, are completed, there will be a need for millions of specialists, and here everyone can imagine the reality of the performance required in such locations.

He pointed out that the country is facing a new phase and new institutions, which are being created with the development of work in this site, which has become global, as it has become the focus of attention of the world’s major economies in the East and West of the world.

Starting Point

Economic expert Mitham Al-Bolani confirmed that the starting point of the development path is the port of Faw, which has become a reality in economic life and the first real infrastructure for developing the national economy and has a positive impact on the global economy, especially since the development path is being implemented in an Iraqi-Turkish-Emirati-Qatari partnership, and that the Turkish side, in its first steps, concluded a quadripartite agreement with Hungary, Serbia and Bulgaria with the aim of delivering goods to the farthest parts of the world.

He stressed that the port of Faw represents an important starting point for global trade in various directions, and thus this port has great economic feasibility, especially with the existence of the development road, as the port and the road complement each other, pointing out that Iraq will be a fertile and mature investment destination for manufacturing industries at the present time at the very least and strategically in the future.

Geographical Area

It is noteworthy that the member of the Parliamentary Finance Committee, Mustafa Al-Karawi, said in a statement to the Iraqi News Agency (INA): The opening of the five docks and the completion of the investment in the Faw Port will contribute to supporting the development path, in addition to the fact that it will be part of the Silk Road, indicating that Iraq is located in a geographical area that makes it a link between the major countries, China and Europe.

Global Trade

Development Consultant Amer Al-Jawahri said: The Grand Faw Port is the first real step that facilitates the reality of global trade and connects the West of the world to its East by the shortest and least time-consuming routes. It will also enhance the volume of international trade for Iraq with the countries of East Asia, where there is a large volume of trade and achieves fluidity in this aspect.

He pointed out that completing all stages of the Grand Faw Port, as a starting point for the development path, will enhance the reality of the Iraqi economy, and Iraq will be a real attraction point with great and sustainable benefit for Iraq.

Executive Body

He pointed out that Iraq, through this port, will be of new benefit to European countries and the West in general, and they will develop tendencies to invest in Iraq and its regions close to this project.

Al-Jawahiri recommended establishing the executive body for the development road project, of which the Faw Port is an important part, complementary to the new road and railway projects and other projects in more than one economic joint, which is considered a necessity for this project.

Make Agreements

He pointed out the importance of concluding agreements with several countries that have a direct impact on the process of managing the integrated project, starting with the port and the development path with all its institutions.

 He stressed the necessity of forming the Faw Economic Zone Authority, which will handle the issues of economic and industrial cities and the technological city, all the way to the tourist city, which is an important part of the region and of great benefit. Here, we stress the necessity of forming institutions and the authority with legislation, so that it will transcend the successive governments that have managed the country.

Starting Point

Economic expert Dr. Salwan Al-Nouri said: Iraq is distinguished by its geographical location, and this is something known to everyone without exception. We are at the point closest to the West and East of the world, and the country could be a starting point towards the two global poles, and this will happen sooner or later, and we have to work and start from this fact, and here we must know how to work and what is required during the next stage and we have entered the circle of real international interest, and we now have a port that concerns the economies of the world.

Re-Export

Al-Nouri stressed the need to move towards legislating the re-export law in a manner that is consistent with the importance of Iraq in the arena of international trade and the international economy, as this law allows Iraq to be a real starting point for developing the national economy, noting that this law allows companies to bring imports to Iraq and work on exporting them to various countries of the world again after dealing with them or dividing them, and in this matter there is a great benefit for the country.

“Indomie” In Iraq: A Popular Dish Or A Dollar Smuggling?

  Iraqi economic expert Nabil Al-Marsoumi raised an interesting question about the relationship between importing “Indomie” and dollar smuggling, based on data from the General Authority of Customs.

Al-Marsoumi said in a statement, “Is there a relationship between Indomie and dollar smuggling?” indicating that “Iraq imported about 64,185 thousand tons of Indomie in 2023 through all border crossings except the Kurdistan Region, at a value of 17.7 million dollars, or the equivalent of 23.6 billion dinars.”

He explained that “this number represents an increase of 18% compared to 2022.”

Al-Marsoumi added that this number is likely to rise to more than $50 million annually, especially since two-thirds of Iraq’s imports are not registered with the General Authority of Customs, but rather pass through Kurdistan’s ports and illegal ports.”

Al-Marsoumi cited the US Federal Reserve’s surprise at the import bills for Indomie, which he described as very large and much larger than the announced figures.

He raised a question about whether these imports actually reflect the Iraqis’ love for this food item or whether they represent a means of smuggling dollars abroad.