Saudi Arabia, Iraq Sign Air Transport Agreement

Saudi and Iraqi parties signing an agreement. Asharq Al-Awsat
Saudi and Iraqi parties signing an agreement. Asharq Al-Awsat
TT

Saudi Arabia, Iraq Sign Air Transport Agreement

Saudi and Iraqi parties signing an agreement. Asharq Al-Awsat
Saudi and Iraqi parties signing an agreement. Asharq Al-Awsat

Saudi Arabia and Iraq signed an air transport agreement during the first meeting of the Transport, Border Outlets and Ports Committee at the Saudi-Iraqi Coordinating Council in Riyadh on Tuesday.

The agreement was signed by Saudi Transport Minister Nabil al-Amoudi and Iraqi Transport Minister Kazim al-Hamami.

The two sides affirmed their commitment to the previously agreed executive plan, which started with regular and direct flights between the two countries.

They also agreed on the importance of concluding a cooperation agreement in the field of maritime transport to enhance transport services between the two countries’ ports, facilitate and develop them.

These include supporting logistics services and they pointed the importance of the shipping line between King Abdulaziz Port in Dammam and Umm Qasr port in Basra along with future shipping lines to transport containers between the two countries.

Regarding the increase in bilateral trade exchange, the two sides agreed to study the possibility of granting preferential treatment in terms of cargo handling between the Saudi and Iraqi ports and forming joint task forces of specialists to prepare the study of rail link and the development of road-linked routes.

They stressed the need to conclude an agreement to regulate the transport of passengers and goods on the roads between the two countries, contribute to the entry of loaded buses and trucks without intermediary and facilitate the process of granting the drivers entry visas.

The minutes of the meeting noted the importance of signing a memorandum of understanding for customs cooperation and one for the development of Arar Iraqi border crossing.

The Saudi Ministry of Transport is currently developing the road connecting the city of Arar and the Jadidah Arar border crossing and rehabilitating it completely.

“The signing of the air transport agreement between the two countries is the result of the directives of the Custodian of the Two Holy Mosques and his Crown Prince to promote and develop relations between Saudi Arabia and Iraq in various fields,” Amoudi said.

“This is what we have been working on in the transport system in cooperation with the Iraqi side and is reflected in boosting bilateral trade exchange and developing economic cooperation to reach an effective partnership in the maritime, air and land transport system.”

They agreed to form bilateral working groups, which will meet periodically to discuss and follow up issues of mutual interest in the fields of transport, border crossings, roads and ports.



Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
TT

Dollar Strengthens on Elevated US Bond Yields, Tariff Talks

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar rose for a second day on Wednesday on higher US bond yields, sending other major currencies to multi-month lows, with a report that Donald Trump was mulling emergency measures to allow for a new tariff program also lending support.

The already-firm dollar climbed higher on Wednesday after CNN reported that President-elect Trump is considering declaring a national economic emergency as legal justification for a large swath of universal tariffs on allies and adversaries.

The dollar index was last up 0.5% at 109.24, not far from the two-year peak of 109.58 it hit last week, Reuters reported.

Its gains were broad-based, with the euro down 0.43% at $1.0293 and Britain's pound under particular pressure, down 1.09% at $1.2342.

Data on Tuesday showed US job openings unexpectedly rose in November and layoffs were low, while a separate survey showed US services sector activity accelerated in December and a measure of input prices hit a two-year high - a possible inflation warning.

Bond markets reacted by sending 10-year Treasury yields up more than eight basis points on Tuesday, with the yield climbing to 4.728% on Wednesday.

"We're getting very strong US numbers... which has rates going up," said Bart Wakabayashi, Tokyo branch manager at State Street, pushing expectations of Fed rate cuts out to the northern summer or beyond.

"There's even the discussion about, will they cut, or may they even hike? The narrative has changed quite significantly."

Markets are now pricing in just 36 basis points of easing from the Fed this year, with a first cut in July.

US private payrolls data due later in the session will be eyed for further clues on the likely path of US rates.

Traders are jittery ahead of key US labor data on Friday and the inauguration of Donald Trump on Jan. 20, with his second US presidency expected to begin with a flurry of policy announcements and executive orders.

The move in the pound drew particular attention, as it came alongside a sharp sell-off in British stocks and government bonds. The 10-year gilt yield is at its highest since 2008.

Higher yields in general are more likely to lead to a stronger currency, but not in this case.

"With a non-data driven rise in yields that is not driven by any positive news - and the trigger seems to be inflation concern in the US, and Treasuries are selling off - the correlation inverts," said Francesco Pesole, currency analyst at ING.

"That doesn't happen for every currency, but the pound remains more sensitive than most other currencies to a rise in yields, likely because there's still this lack of confidence in the sustainability of budget measures."

Markets did not welcome the budget from Britain's new Labor government late last year.

Elsewhere, the yen sagged close to the 160 per dollar level that drew intervention last year, touching 158.55, its weakest on the dollar for nearly six months.

Japan's consumer sentiment deteriorated in December, a government survey showed, casting doubt on the central bank's view that solid household spending will underpin the economy and justify a rise in interest rates.

China's yuan hit 7.3322 per dollar, the lowest level since September 2023.