Latest news with #Dollar
Iraqi News
8 hours ago
- Business
- Iraqi News
Expert outlines 10 reasons for notable decline in US Dollar exchange rate in Iraq
Baghdad ( – The exchange rate of the US Dollar against the Iraqi Dinar has experienced a noticeable decline recently, driven by a complex interplay of economic and procedural factors. While each factor varies in its level of impact, their combined effect has bolstered the Dinar's strength. Economic expert Manar Al-Obaidi has identified ten primary reasons behind this trend. 1. Economic Contraction and Declining Consumer Confidence: Uncertainty in the Iraqi market, stemming from an economic slowdown, has led to a decrease in spending by individuals and institutions. This negatively affected overall demand, consequently reducing the need for the US Dollar as a driver of trade activity. 2. Halt in Government Investment Spending: The government's focus on operational rather than investment expenditures has slowed economic activity. Given that the general budget is the main engine of economic activity, reducing investment spending has lowered aggregate demand, including demand for the Dollar. 3. Tightened Border Controls: Government measures aimed at curbing smuggling and regulating relations with the Kurdistan Region have significantly reduced the phenomenon of inflated invoices. This has directly diminished the artificial demand for the US Dollar in the parallel market. 4. Merchants Shifting to Official Banking System: A large segment of merchants has transitioned into the official banking system, utilizing the official Dollar exchange rate through approved platforms. This shift has reduced the volume of transactions in the parallel market and eased pressure on the Dollar. 5. Decline in Re-export Operations: A reduction in the re-export of goods to neighboring countries has led to a decrease in demand for imported goods. This directly translated into a lower need for the US Dollar to finance such commercial operations. 6. Settling Major Company Dues with Oil Products Instead of Cash: The government has opted to settle a portion of foreign companies' dues using heavy fuel oil and naphtha instead of cash payments. This move has reduced reliance on Dollars sold by the Central Bank and increased the supply of Dollars in the market. 7. Preparations for Electoral Process: With the start of the election season, there has been an increase in spending related to election campaigns. This expenditure is often financed from Dollar reserves, necessitating their conversion into Dinars to cover campaign costs, thereby increasing the supply of Dollars in the market. 8. Rise in Number of Foreign Visitors and Arrivals: An increasing number of foreign visitors to Iraq has injected foreign currencies into the local market. This provides an additional source of hard currency outside the Central Bank's sales, contributing to a greater abundance of the US Dollar. 9. Cessation of Illicit Trade Due to Border Closure with Syria: The closure of border crossings with Syria has significantly curbed smuggling and illegal trade operations that heavily relied on the US Dollar in the parallel market. This has led to an additional decline in Dollar demand. 10. Decrease in Issued Currency and Withdrawal from Market: The Central Bank of Iraq has withdrawn a portion of the Dinar currency mass from the market. This action has created a doubled demand for the Iraqi Dinar against the US Dollar. This balance in demand levels between the two currencies has helped strengthen the Dinar's value and raise its exchange rate against the Dollar in the parallel market. These are the primary reasons contributing to the decline in exchange rates against the Dinar. The extent of each cause's impact on the official exchange rate remains a question, and other factors may also be at play. Al-Obaidi believes the sequence of reasons above reflects the significance of each cause's impact on the parallel market exchange rate.
The Hindu
6 days ago
- Business
- The Hindu
Rupee rises 17 paise to 86.24 against U.S. dollar in early trade
The rupee appreciated 17 paise to 86.24 against the U.S. dollar in early trade on Thursday (July 24, 2025), tracking the weakness of the American currency in the overseas market. Forex traders said uncertainty over the India-U.S. trade deal has been a huge overhang for the forex market, leaving the rupee trading in a tight range. Moreover, a negative trend in domestic equities and foreign fund outflows dented investors' sentiments and restricted the upmove of the local unit. At the interbank foreign exchange, the domestic unit opened at 86.33 and touched 86.24 against the greenback in initial deals, higher by 17 paise from its previous closing level. On Wednesday (July 23, 2025), the rupee settled with a loss of 3 paise at 86.41 against the dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06% to 97.15, as investors watched out for a trade deal ahead of the August 1 deadline. Brent crude, the global oil benchmark, went up by 0.25% to $68.68 per barrel in futures trade, on the trade optimism with U.S.-Japan deal done and U.S.-E.U. deal under talks, which could ease pressure on the global economy. However, the uncertainty over U.S.-China trade talks and Eluding peace between Russia and Ukraine is limiting further gains, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP. Mr. Bhansali further noted that despite a fall in Dollar index and rise in risk assets, Indian rupee has not been able to show any substantial gains largely due to significant dollar demand in the system. The rupee will remain in a range of 86.10 to 86.60, Mr. Bhansali said, adding that "We need to wait and watch the developments that are happening particularly on the deal front." If the discussions fail or get delayed, Indian exporters could face fresh pressure — adding to the rupee's challenges. However, if a deal is reached, it could offer a much-needed breather. Until then, the uncertainty is likely to keep market participants cautious. Meanwhile, in the domestic equity market, Sensex declined 124.79 points or 0.15% to 82,601.85, while Nifty fell 15.75 points or 0.06% to 25,204.15. Foreign institutional investors (FIIs) offloaded equities worth ₹4,209.11 crore on a net basis on Wednesday, according to exchange data.
The Star
21-07-2025
- Business
- The Star
Crypto firm BitGo confidentially files for US IPO
FILE PHOTO: Representations of virtual cryptocurrencies are placed on U.S. Dollar banknotes in this illustration taken November 28, 2021. REUTERS/Dado Ruvic/Illustration/File Photo (Reuters) -BitGo, a provider of trust and security services for digital assets, said on Monday it has confidentially filed for a U.S. listing, as crypto firms race to capitalize on renewed market momentum. Several high-profile companies, including those in riskier sectors like crypto and fintech, have launched successful listings in recent weeks, signaling pent-up demand and a rebound in capital markets activity. BitGo's announcement follows the crypto sector's market value hitting $4 trillion last week, driven by renewed optimism, regulatory clarity in key markets, and rising institutional inflows. The number of shares to be offered and the price range for the proposed initial public offering have not yet been determined, BitGo said. (Reporting by Manya Saini in Bengaluru; Editing by Leroy Leo)
Economic Times
19-07-2025
- Business
- Economic Times
'Never let anyone to play games with us...': Trump ridicules BRICS, issues 10% tariff threat
US President during his speech before signing 'GENIUS ACT' said, "... This (The Genius Act) is really strengthening the US Dollar and giving the Dollar a great prominence. There is a little group called BRICS, and it is fading out fast. But BRICS tried and wanted to take over the Dollar and the dominance of the Dollar and the standard of the Dollar. I said that anybody in the BRICS consortium of nations, we are going to tariff you 10% and they had a meeting the following day, and almost nobody showed up... We are not going to let the Dollar slide... If we lost the status of the Dollar as the world's reserve currency, it would be like losing a World War... When I heard about this group of six countries in BRICS, I hit them very hard, and if they ever really form in a meaningful way, it will end very quickly..." Show more 03:38 03:48 02:13 02:30 18:02 08:33 14:04 08:33 03:56 05:35 04:01 11:10 09:37 08:08 10:59 08:14 03:07 06:45 03:26 12:54 08:54 05:39 03:50 12:38 08:41 03:32 09:30 09:56 08:49 09:04 03:06 13:25
News18
19-07-2025
- Business
- News18
'Little Group Fading Fast': Trump Mocks BRICS In Latest Remark, Repeats 10% Tariff Threat
Last Updated: Donald Trump took credit for undermining the BRICS group's attempts to challenge the global dominance of the US dollar, vowing that he would never let that happen. US President Donald Trump on Friday mocked the BRICS bloc as a 'little group" that is 'fading out fast" and reiterated his warning of a 10 per cent tariff on countries aligning with it, accusing them of supporting 'anti-American policies." Trump further took credit for undermining the bloc's attempts to challenge the global dominance of the US dollar, vowing that he would never let that happen. 'There is a little group called BRICS, and it is fading out fast. However, BRICS attempted to challenge the dominance of the Dollar and its standard. I said that anybody in the BRICS consortium of nations, we are going to tariff you 10 per cent, and they had a meeting the following day, and almost nobody showed up," said Trump while speaking at the signing of the GENIUS Act into law. #WATCH | US President Donald Trump says, '… This (The Genius Act) is really strengthening the US Dollar and giving the Dollar a great prominence. There is a little group called BRICS, and it is fading out fast. But BRICS tried and wanted to take over the Dollar and the… — ANI (@ANI) July 18, 2025 Donald Trump, taking firm stance toward global economic competitors, said, 'When I heard about this group of six countries in Brics, I hit them very hard, and if they ever really form in a meaningful way, it will end very quickly." Though he didn't name the nations, Trump added, 'We can never let anyone play games with the US." He also stressed the importance of maintaining the US Dollar's global reserve status. 'We are not going to let the Dollar slide… If we lost the status of the Dollar as the world's reserve currency, it would be like losing a World War." Former U.S. President Donald Trump has also targeted Brazil with new trade penalties, announcing a 50% tariff on imports beginning in August over what he described as 'unfair" trade practices. This follows his earlier July 6 declaration of a 10 per cent tariff on any nation aligning with the BRICS group. The BRICS group, originally formed in 2009, is a coalition of emerging economies comprising Brazil, Russia, India, China, and South Africa (which joined in 2010). In 2024-25, the bloc expanded to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates, bringing the total number of member countries to 11. BRICS was established with the goal of promoting peace, development, and a more balanced global order by strengthening economic cooperation among developing nations. Over the years, it has positioned itself as a counterweight to Western-led institutions like the G7 and the IMF, advocating for a multipolar world and reforms in global governance systems. The bloc also promotes the use of local currencies in trade. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
