Iraq's Local Businesses Thrive amid Lockdown

Iraqis walk through a fresh produce market in the southern Iraqi city of Basra as some lockdown restrictions imposed during the novel coronavirus pandemic have been eased. AFP
Iraqis walk through a fresh produce market in the southern Iraqi city of Basra as some lockdown restrictions imposed during the novel coronavirus pandemic have been eased. AFP
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Iraq's Local Businesses Thrive amid Lockdown

Iraqis walk through a fresh produce market in the southern Iraqi city of Basra as some lockdown restrictions imposed during the novel coronavirus pandemic have been eased. AFP
Iraqis walk through a fresh produce market in the southern Iraqi city of Basra as some lockdown restrictions imposed during the novel coronavirus pandemic have been eased. AFP

A national lockdown in Iraq to contain the spread of the novel coronavirus pandemic has been favored by local businesses who no longer have to compete with Turkish, Iranian or Chinese imports.

Amin Qassem, who has operated in an ice cream factory in the oil-rich province of Basra since 2006 expressed his satisfaction over the new circumstances.

"The coronavirus crisis has allowed us to prove ourselves on the Iraqi market," he said.

"When there was cheap ice cream coming in from Iran, I had to lower my prices to sell so that my ice cream wouldn't be stuck melting in storage," he added .

"Now, I can sell at higher prices. We were able to win back the same markets where imports once crushed us."

Meanwhile, Hadi Abbud, who owns a plastics factory also in Basra, has already reported an exponential surge in orders for plastic tubing, usually brought in from China, AFP reported.

His factory has been working 24/7 to mould, cut and polish thick plastic cylinders proudly stamped "Made in Iraq."

"These days, I'm getting new orders for plastic tubes faster than I can even produce them," said Abbud, his white hair meticulously combed back.

Sales are so good he is planning to recruit another 50 workers for his 100-man factory.

"The situation has really changed," Abbud said, his smile barely concealed by the face mask he wore as part of mandated social distancing in his factory.

According to AFP, even at sea, the difference is notable.

"Starting around a month ago, there have been many more fish," said Mohammed Fadel, who sells his daily catch at a stand in Basra's downtown market.

In Basra's markets, tables are now heaving with rows of silvery fish and buckets of prawns, carefully examined by shoppers in gloves and masks.

The catches are so plentiful that a kilogramme of "zubeidy," a local sea bream, has dropped from $16 to $9.

"The number of fish -- and the prices -- are just extraordinary," said Fadel.



Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
TT

Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.