By Olivia Bridge.

Despite recent tumultuous times and a weakening economy in Iraq, government is said to be implementing reforms that are aimed at reviving its ailing currency.

Forex trading in Iraq

While forex trading in Iraq is still a relatively new concept, it is gradually being embraced by nationals. Reports on the matter suggest that more and more people in the country are starting to open up to the financial markets and explore alternative investment options. Given the widespread interest in forex trading across the globe, it is no surprise that citizens now have more access to trading resources, analytical tools and platforms. Naturally, before getting involved in forex trading, one needs to do the necessary research on trading currencies and American Dollars; the latter is particularly beneficial because the USD forms part of all major currency pairs and is the basis of the majority of international trading activity.

The steps to follow to get started with forex trading are quite universal, however, in Iraq, there are some additional considerations worth noting. For example, industry insiders advise working with an international broker that is registered with a recognised foreign currency authority. The other common steps include opening a trading account after selecting a broker; downloading your trading software as some brokers require third-party software; funding your account through linking it to your bank account of choice; and then lastly, making your first trade. It is worth noting, though, that it may take a few days for the funds to reflect in your trading account. Thereafter, one need only closely monitor the markets and trade using a chosen strategy from the wide selection of strategies that are available and advised by those in the field.

Government intervention and its impact

Known to many is that forex and currencies are heavily impacted by global economic and political conditions, amongst other factors, and the same applies to Iraq and its trading activities. In recent times, the fluctuations in oil prices and the conditions of 2020 exacerbated the country’s ailing economy and weakened the Iraqi Dinar in the financial markets. This put pressure on the government to implement certain policies and reforms to give it a fighting chance on the global markets. Over and above the economic policies to steer the country’s finances in the right direction, the government also introduced reforms against corruption which, according to reports, are proving to be quite beneficial to the country’s foreign reserves. The measures being taken against the alleged corruption and wastage in the country has given Iraq a fighting chance and, more importantly, has increased investor confidence in Iraq to an extent, although it is still reeling from recent events and global developments.

In early 2021, it was reported that the crackdown on corruption helped to boost the country’s forex reserves to approximately $60 billion. Moreover, the crude oil price fluctuations have also had an impact on how the Iraqi Dinar is performing on the global markets, particularly relative to some of the strongest currencies on the markets, such as the USD, CAD, EUR and JPY. Given that Iraq relies on oil to fund nearly all of its state budget, according to reports, the country remains invested in the demand for it and its pricing, as it could either make or break all the efforts and initiatives that are currently being implemented to strengthen and revive the country’s economy and currency.

The post Iraq’s Govt Interventions Prompt Improvement in Forex Reserves first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

Iraqi Housing Fund to Increase Capital to $1.4bn

By John Lee.

The Iraqi Cabinet has approval a doubling in the capital of the Iraqi Housing Fund.

The capital will increase from 1 trillion to 2 trillion Iraqi dinars ($1.4 billion), with the additional funds to be paid by the Ministry of Finance.

(Source: Office of the Prime Minister)

The post Iraqi Housing Fund to Increase Capital to $1.4bn first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

UK Law Firm advises on Iraq Port Deal

By John Lee.

UK-based international law firm Clifford Chance has announced that it has advised International Finance Corporation (IFC) and Japan International Cooperation Agency (JICA) on the US$125 million financing of the development, construction, equipping and operation of both new and existing facilities at the Umm Qasr Port in Iraq.

In a press release, the company said:

This transaction represents the first major international project financing in the Iraqi ports sector, and one of the only international financings in Iraq to date outside of the oil and gas sector.

The facilities include a new container and roll-on-roll-off terminal in the port, to be developed by Aloreen for Investment, Ltd. (Aloreen), a subsidiary of Switzerland’s Terminal Investment Limited (TIL) group, as well as the rehabilitation and expansion of certain existing facilities operated by Aloreen.

Partner Catherine McCarthy led the transaction with support from Arabic-speaking associate Greg Jehle as well as associates Daniel Justus and Liz Wangu in Washington, DC. Partner Qudeer Latif, senior associate Angad Chaturvedi and associate Ahmed Shafiek provided counsel from Dubai.

McCarthy said, “It was terrific to guide IFC and JICA on this landmark transaction which represents a significant investment into Iraq’s infrastructure in support of international trade.

The expansion of the Umm Qasr port, which is Iraq’s primary deep water port for container traffic and serves a large portion of the Iraqi population, will facilitate Iraq’s integration into global markets and help to ensure access to essential goods for Iraqis. In particular, the development of the new terminal will substantially increase the port’s container handling and RORO capacity.

(Source: Clifford Chance)

The post UK Law Firm advises on Iraq Port Deal first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

Final call for the Iraq Britain Business Forum

You are invited to attend the Iraq Business Forum on 27th September in Central Hall Westminster.

  • Hear from IBBC members and British companies.
  • Meet Iraqi businesses leaders interested to source products from the UK across multiple sectors.
  • Enjoy one to one business meetings.

The post Final call for the Iraq Britain Business Forum first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

Baghdad hosts Conference on Recovery of Looted Funds

By John Lee.

An international conference on the recovery of looted funds has just concluded in Baghdad.

The conference was organised by Iraq’s Commission of Integrity, and was attended by Prime Minister Mustafa al-Kadhimi; the Secretary-General of the Arab League, Ahmed Abul Gheit; ministers, judges and other officials.

Praising the efforts of anti-corruption bodies, the Prime Minister urged other countries to cooperate in tracing and repatriating assets illegally smuggled out of Iraq.

(Sources: Commission of Integrity, Office of the Prime Minister)

The post Baghdad hosts Conference on Recovery of Looted Funds first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

New Report: Expanding Access to Banks in Iraq

By John Lee.

The Institute of Regional and International Studies (IRIS) at the American University of Iraq, Sulaimani (AUIS) has issued a new report on the banking sector in Iraq.

Expanding Access to Banks in Iraq: Challenges & Pathways to Reform” argues that one of the major obstacles to the development of the private sector in Iraq is the lack of access to finance to support its growth.

The authors of the report are Ahmed Tabaqchali, Hamzeh al-Shadeedi, Muhammad Al-Waeli and Dr. Marsin Alshamary.

To read the full report, click here.

(Source: IRIS)

The post New Report: Expanding Access to Banks in Iraq first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

Opinion: The Inevitability of Crypto in Iraq

By Abdurrahman Bapir, for Coindesk. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Opinion: The Inevitability of Crypto in Iraq

Despite roadblocks, crypto is becoming increasingly popular in Iraq and the Kurdistan Region.

Click here to read the full article.

The post Opinion: The Inevitability of Crypto in Iraq first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

By John Lee.

Iraq’s Deputy Prime Minister and Finance Minister has reportedly said that he supports a floating exchange rate for the Iraqi currency, the dinar.

Shafaq quotes Ali Allawi (pictured) as telling a press conference on Thursday that the Central Bank of Iraq (CBI) intervenes occasionally to keep the dinar in the range of plus or minus 5 percent, adding:

“The exchange rate is not sacred as it was before. Fixing the rate leads to the accumulation of economic problems and explosion later.”

(Source: Shafaq)

The post Iraqi Finance Minister “Supports Floating Exchange Rate” for Dinar first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

Japan extends $300m Loan for Basra Refinery

By John Lee.

Japan’s Minister for Foreign Affairs, Motegi Toshimitsu, visited Iraq on Saturday, meeting with Foreign Minister Fuad Hussein, Prime Minister Mustafa Al-Kadhimi, and President Barham Salih.

Minister Motegi announced that Japan intends to extend the “Basrah Refinery Upgrading Project (Phase 3)” Yen loan project (up to the amount of 32.7 billion yen) [$300 million], and expressed his hopes that this project would contribute to providing the stable supply of energy and to creating jobs in Iraq. In response, Minister Hussein expressed his gratitude.

Minister Motegi added that he appreciates the publication of the “White Paper for Economic and Financial Reforms“, and stated that Japan looks to support Iraq’s reform efforts together with the international community through the “Iraq Economic Contact Group.”

Both sides also exchanged views on measures to prevent the spread of COVID-19 and means to improve the business and investment environment in Iraq.

(Source: Govt of Japan)

The post Japan extends $300m Loan for Basra Refinery first appeared on Iraq Business News.
Source: Iraq News

Tagged with:
 

Iraq said to be Negotiating IMF Loan

By John Lee.

Iraq has reportedly restarted talks with the International Monetary Fund (IMF) for a $4-billion loan to cover its budget deficit.

More here.

(Sources: Bloomberg, Arab News)

The post Iraq said to be Negotiating IMF Loan first appeared on Iraq Business News.
Source: Iraq News

Tagged with: