MilitiaMan and KTFA Members Saturday PM 1-15-2022

KTFA:

MilitiaMan:  More reality hitting the street and outside their borders..

Samson:   With modern features… Al-Rafidain intends to launch a credit card

01/14/2022 19:40:18

Al-Rafidain Bank announced, on Friday, the launch of the “Credit Card” credit card.

A source in Al-Rafidain told {Euphrates News} that “the bank will soon launch the credit card, with modern features.”

He added, “The card will allow the possibility of purchasing from places of sale {pos} and ATMs.” LINK

Zeeman:  correct mm reality hitting the streets near and far except for one thing… they must raise the value…. under a penny will not do…. it is way past time to change the value…. as the saying goes money talks no one walks.

MilitiaMan:  OF course we all know that a REER (Real Effective Exchange Rate) is what we are looking for. Anything less will not work.

As for way past time, is it? Or is it possible that it only feels like that to us?

We can see there is interconnectivity that is to include 100s of countries that are going to be affected by an exchange rate change. Did you ever think that this has been an evolutionary experience for not just Iraq, but the region and world at large that is extremely new and complex?

It is not so new that is just getting started, as that is not the case as it has been in the works for upwards of 18 years now, ebb and flow of course has been the theme. But, now with the new interlinking of systems like the BUNA, SWIFT (ISO20022) and TIPS, we can see there is a lot we didn’t have and didn’t know.

To open a bank branch in the UAE and or even in Saudi Arabia is to be international. That will require the REER.. Plain an simple imo..

So, the CBI needs to talk and walk all at the same time.. imo.. It’s coming.. imo.. ~ MM 

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Economist: The Current Year’s Budget May Recognize 135 Trillion Dinars

14th January, 2022

The economic affairs specialist, Muhammad Ali al-Moussawi, explained that the current year’s budget may be approved at an amount of 135 trillion dinars, pointing out that the dollar exchange rate needs to be modified according to what the next government sees.

Al-Moussawi told “Information”, “The budget may be approved in the amount of 135 trillion dinars, but the dollar exchange rate may be subject to the policy of the next government and what it desires, at a time when total public spending reaches 130 trillion dinars.”

He added that “the price of a barrel of oil, and according to what has been achieved from revenues and a rise in prices, may be put in the budget by more than 60 dollars per barrel, as this is appropriate in light of the developments in prices and the increase in production decided by OPEC.”

And he indicated that “the adjustment of the dollar exchange rate has become an urgent need, as this requires a move from the next government, and the support of some ministries in order to reduce the suffering of the poor classes, especially since the opportunity is ripe for that.”   LINK

Samson:  Oil closes with high gains, exceeding $ 86

01/15/2022 10:43:34

Oil prices closed on significant weekly gains, supported by concerns about supplies and political concerns in Libya and Kazakhstan, and the decline in US crude stocks to the lowest level since 2018.

Brent crude closed in its last session on Friday with an increase of 1.59 dollars to reach 86.06 dollars, and achieved a weekly profit of 4.31 dollars, or 5.27% in a week.

The US West Texas Intermediate crude was also settled at a rise of $1.70 to reach $83.82 a barrel and achieved a weekly profit of $4.92, or an equivalent rate of 6.24%.

Oil prices rose at the settlement on Friday, as the market was affected by concerns about supplies due to the unrest in Kazakhstan, production interruptions in Libya and the decrease in US crude stocks, despite America’s agreement with China to withdraw from its strategic oil stocks near the Lunar New Year holiday that begins on February 1, in The framework of a plan launched by Washington to reduce global prices.  LINK

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Samson:  Vietnam’s GDP to bounce back in 2022 at 5.5%: World Bank

14th January, 2022

Việt Nam’s GDP growth has been forecast to accelerate at a 5.5 per cent rate in 2022 from a dismal 2.58 per cent during the previous year, according to a report released by World Bank yesterday. 

Fiscal deficit and debt are expected to remain sustainable, with the debt-to-GDP ratio projected at 58.8 per cent, well below the limit set by the National Assembly. 

World Bank’s forecast for the Southeast Asian economy is to be taken with the usual caveat that the COVID-19 pandemic will be brought under control at home and abroad. According to the report, the country’s services sector will gradually recover as consumer and investor confidence firms, while the manufacturing sector benefits from steady demand from the US, the EU and China.

The World Bank, however, warned of possible new variants of the virus, which may prompt renewed social distancing measures, hampering economic activity. Weaker-than-expected domestic demand could weigh on the recovery. 

In addition, Việt Nam’s trading partners are facing dwindling fiscal and monetary space, potentially restricting their ability to further support their economies if the crisis persists, which in turn could slow the global recovery and weaken demand for Vietnamese exports.

The World Bank called for careful policy responses that may help mitigate risks including temporary reduction of VAT rates and more spending on health and education, which stimulate domestic demand. 

Support for affected businesses and citizens should be more substantial while social protection programmes could be more carefully targeted and efficiently implemented to address the severe and uneven social consequences of the crisis. Heightened risks in the financial sector should be closely monitored and addressed proactively.

Greener trade

The report also called for Việt Nam’s trade to become less carbon-intensive. In the past two decades, trade has accounted for one-third of the country’s total greenhouse gas emissions and pollution.

“Trade will be a key component of Việt Nam’s climate actions in the years to come,” said Carolyn Turk, World Bank Country Director for Việt Nam.

“Promoting greener trade will not only help Việt Nam follow through on its pledge to reach net-zero emissions in 2050 but will also help it keep its competitive edge in international markets and ensure trade remains a critical income and job generator,” she said. 

While the country has started to decarbonise activity associated with trade, more needs to be done to respond to mounting pressures from main destination markets, customers, and multinational companies for greener products and services.

The report recommends the Government act on three fronts: facilitate the trade of green goods and services, incentivise green foreign direct investment, and develop more resilient and carbon-free industrial zones.  LINK