Delta and KTFA Members "Sterilization" Wednesday 2-26-2020
KTFA:
Walkingstick: ftti:(for those that inquired) note, sterilization....
Samson: The Central Bank issues the brochure of the Foreign Currency Sales Window for 2019
24th February, 2020
The Central Bank of Iraq issued a brochure entitled: “The window for selling foreign
currency in the Central Bank of Iraq”, which clarifies the administrative framework
for financing imports and the mechanism of selling foreign currency to banks in covering
their customers’ requests, and the process of collecting and sterilizing the local currency
considering that this bank represents the monetary authority in Iraq.
The Central Bank of Iraq
information Office
2/24/2020
Samson: The central bank clarifies the administrative framework for financing imports and the mechanism for selling foreign currencies
25th February, 2020
The Iraqi Central Bank issued, on Tuesday, a brochure entitled "The Window for Selling Foreign Currency in the Central Bank of Iraq."
"The brochure explains the administrative framework for financing imports and the mechanism of selling foreign currency to banks in covering the requests of their customers," the bank said in a statement.
He added, "It also clarifies the process of collecting and sterilizing the local currency considering that this bank represents the monetary authority in Iraq." LINK
MilitiaMan: The act of sterilizing the local currency is a practice by major global players. It appears the CBI is preparing or is now prepared to defend their currency in world markets.. Something that the CBI has now been told to the world that they are now obliged to play by the IMF Rules.. imo.. Very good indeed imo ~ MM
https://www.investopedia.com/terms/s/sterilizedintervention.asp
"The U.S. Treasury Department is responsible for determining the nation’s exchange rate, and for that purpose, it maintains the Exchange Stabilization Fund, which is a portfolio of foreign currency and dollar-denominated assets. The Federal Reserve also has a foreign currency portfolio for the same purpose. Exchange rate intervention is carried out jointly by the Treasury and Federal Reserve.
One of the main tools used by the Federal Reserve to influence monetary policy is its target for the federal funds rate, which is set by the Federal Open Market Committee primarily to achieve domestic objectives.
Since the Federal Reserve would never permit its intervention activities to have an impact on its monetary policy operations, it always uses sterilized intervention. Central banks of major nations—such as the Bank of Japan and the European Central Bank—which also use an overnight interest rate as a short-term operating target, likewise sterilize their currency interventions."
DELTA: GREAT JOB MM.....
Will: Sterilization is a form of monetary action in which a central bank seeks to limit the effect of inflows and outflows of capital on the money supply. Sterilization most frequently involves the purchase or sale of financial assets by a central bank, and is designed to offset the effect of foreign exchange intervention.
JamieO: So what specifically does this mean to us???
DCDriver: International (wink)
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DELTA: The Arab Monetary Fund Announces the Launch of the Buna Payment Platform: the platform serves to enhance opportunities for financial integration and to support economic and investment ties with the trading partners of Arab countries
23 February 2020
The Arab Monetary Fund (AMF) is pleased to announce the launch of Buna, the regional payment platform, as a culmination of months of planning and collaboration with global and regional stakeholders.
"Buna" which is a multi-currency payment platform, provides clearing and settlement services, in Arab and international currencies that meet the eligibility criteria related to the clearing and settlement of inter-Arab financial transactions, as well as transactions between Arab countries and their main trading partners.
Buna, as a centralized multicurrency platform, aims to enable financial institutions, including commercial and central banks, to send and receive cross-border payments across the Arab region and beyond in Arab currencies, as well as key international currencies, in an efficient, cost-effective, risk-controlled and transparent environment.
Buna offers its participants a state-of-the-art payment platform compliant with international standards. In fact, bringing Buna to reality constitutes a major, tangible and irreversible step towards the empowerment and integration of Arab economies.
The launch of Buna signals the start of the gradual onboarding operations of financial institutions that have opted to be pioneers of this first-of-its-kind regional financial market infrastructure, aiming to process the first payment transaction in a few weeks.
On this occasion, His Excellency Dr. Abdulrahman A. Al Hamidy, Director General and Chairman of the Board of Executive Directors of the Arab Monetary Fund, expressed his gratitude and appreciation of the strategic launch of the platform which aims to encourage and develop Arab financial activities, commercial trade and cross-border investments.
This system aims to promote trade relations and develop investment activities between the Arab countries and providing an environment that facilitates the development of financial and banking services and products in the region.
His Excellency also expressed his sincere appreciation and gratitude to the Governors of the Central Banks and Arab monetary institutions, the Board of Governors of the Fund and its Board of Directors for their efforts in supporting the platform’s inauguration. His Excellency especially expressed his gratitude to the United Arab Emirates authorities for providing significant reinforcement for the launch of the platform.
His Excellency also thanked the central banks, Arab monetary institutions and the team of experts from the international financial institutions for their continuous cooperation during this implementation phase.
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DELTA: THE EXCHANGE RATES OF ARAB CURRENCIES AGAINST THE ARAB ACCOUNT DINAR
02/25/20
1 ARAB DINAR=$4.09645
Samson: Kuwait prevents ships coming or heading to 7 countries, including Iraq, from stopping at its ports
26th February, 2020
Kuwait decided, Wednesday, to prevent ships coming or going to China, South Korea, Italy, Singapore, Thailand, Japan and Iraq from stopping at Kuwaiti ports
She explained that ships belonging to the oil sector are excluded from the ban on stopping at Kuwaiti ports
This comes in conjunction with the announcement by the Kuwaiti Ministry of Health earlier Wednesday that two new cases of Coronavirus had been detected in the country, linked to "travel to Iran
A statement of the Ministry of Health stated that the total number of injured Kuwait has reached 11 injured so far
Kuwait had previously announced the suspension of flights to a number of countries that were infected with the Corona virus
The Kuwaiti News Agency reported on Tuesday that the Civil Aviation Authority announced the suspension of all flights with Singapore and Japan due to fears of the Corona virus, according to the instructions of the Ministry of Health
On Monday, flights were suspended with South Korea, Iran, Thailand, Italy and Iraq, as instructed by the Ministry of Health due to concerns over the spread of the Coruna virus
It is noteworthy that the first injuries recorded in the country were between 700 who were evacuated on Saturday from the Iranian city of Mashhad LINK
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Samson: The global markets are entering the quarantine stage
26th February, 2020
Interested in the economic issue expected more losses amid rising concerns about the spread of Corona, which pushed oil prices to the lowest level in more than a month, as well as exacerbated global stock losses. Oil prices tumbled about 4 percent, as the rapid spread of the Corona virus outside China fueled investor concerns about the implications for crude demand. Global stocks also continued to lose in light of growing concerns about the virus, after the number of new cases jumped in Iran, Italy and South Korea.
Magnitude of the risks
Oil prices fell in European exchanges because of the risks that the spread of the Corona virus emerging outside China will affect global demand in a market that is already in surplus. The price of a barrel of Brent North Sea oil for April delivery was 56.05 dollars in London, recording a decrease of 4.19 percent compared to the closing price at the end of the week. In New York, the West Texas Intermediate barrel for the same month’s delivery lost 3.97 percent to $ 51.26, shortly after reaching $ 51.24, a decrease of 4.19 percent. This significant price drop ends yesterday, Monday, with higher prices Barclay Brent and light oil, which reached 2 percent and 10 percent, respectively, last week since resuming its rise on February 10.
OPEC is currently awaiting market activists from member states of the Organization of Petroleum Exporting Countries (OPEC) and its allies who will meet next week in Vienna to try to secure a response to the oversupply, which is the size of the risks currently faced by demand. China has indefinitely postponed the annual meeting of its parliament due to the emerging Corona virus, in a rare change in the Chinese system’s events that are organized and normally run smoothly. The work of the People's National Assembly was scheduled to open on the fifth of next March, as every year, in one of the meetings that highlight the country's unity with the red flags in which it is raised and the decisions that are taken almost unanimously. However, the appearance of the new Corona virus, which has infected thousands of people and killed 2,500 many of the infected, has changed the schedule.
The National Assembly seemed to gather three thousand deputies in the Great Hall of the People in Beijing is out of the question while a part of the country is still under quarantine, while a large part of the Chinese live under strict quarantine measures or are hiding in their homes for fear of infection and not coming out Without masks. Parliamentary official Zhang Xiaoyi admitted last week that postponing this year's session was "necessary" in order to "focus attention on preventing and controlling the epidemic." Growth may experience a noticeable decline in 2020 due to the severe slowdown in the economy about a month ago due to the spread of the virus.
Gulf stock exchanges also ended the end of their dealings on a collective retreat after the announcement of cases of Arab countries, particularly Oman, Kuwait and Bahrain, the emergence of cases of the emerging Chinese virus. And he expected that the world gold prices would witness record increases until he exceeded $ 1700 an ounce, the highest level for this most active contract since February 2013. LINK
Samson: To avoid Corona .. calls for sterilization of banknotes in Iraq
26th February, 2020
A member of the Iraqi Economic Council, Ghadeer Al-Attar, called on Wednesday to start precautionary measures on the Iraqi and foreign currency to prevent the transmission of the Corona virus.
"The People's Bank of China has subjected sterilization and stone banknotes to fight the Corona virus," Al-Attar said in a statement.
Al-Attar pointed out that "the Iraqi Central Bank and Iraqi banks work using ultraviolet radiation or very high temperatures to sterilize banknotes, before isolating them for a period ranging between 7 and 14 days to prevent the spread of the Corona virus through banknotes."
And the member of the Economic Council said, "The relevant authorities must maintain the safety and health of the users of cash flow in Iraq. LINK
Don961: CERTAINLY ANOTHER WAY TO GET THOSE CRUNCHY, HOARDED OLD BANKNOTES OUT FROM UNDER THE MATTRESS AND INTO THE BANKS .. IN EXCHANGE FOR NICE , CLEAN , SHINY NEW ONES ... IMO