"Tidbits From TNT" Wednesday Morning 2-1-2023

TNT:

Tishwash:  Novosti": Washington's policy pushes emerging countries to move towards the national currency

The agency "Novosti" talked about the adoption of central banks in the world approach to reduce the share of the US currency in its international reserves because of the economic policy of Washington and the huge debt of the United States.

The agency indicated that emerging countries are moving towards adopting national currencies in trade settlements, and economists are now certain that the financial world will not be the same again.

In a report on "the future of the monetary system," analysts at the Bank's Research Institute pointed out, "Credit SuisseThe Swiss led to a loss of confidence in the US economy in light of the high inflation rates and the existence of a huge US budget deficit ($1.3 trillion) and huge debts ($31 trillion, which constitutes 121.5% of the GDP) in addition to the fact that no one is trying to use the dollar as a weapon.

"Macroeconomic imbalances have increased dramatically as geopolitical tensions have escalated in recent years, and the potential for widespread abandonment of the US dollar has increased," the report's authors said.

And as an indication of the decline in confidence in the dollar, the report indicated that the dollar in the seventies represented 80% of global reserves, while in 2022 it reached a level of only 58.8%, which is the lowest level in 20 years.

Analysts believe that the use of dollar reserves as a protective mechanism against currency depreciation is no longer appropriate in light of the adoption of a floating exchange rate.

As a striking example of the declining position of the US currency in the world, economists talk about Russian Federation trading with China And India  last year, Moscow turned and Beijing Then with New Delhi trade settlements into national currencies. And now the Chinese and Indians pay for Russian products in yuan and rupees.    link

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Tishwash:  Washington receives "compelling evidence"... Iran trades in Iraqi dollars

A Saudi newspaper revealed, on Wednesday, that the US Treasury Department has obtained compelling evidence that Iran has traded dollars that Iraq recently received from Washington, during the past two weeks.

sharq Al-Awsat newspaper stated, in a report seen by Shafaq News Agency, that "the Americans feel that Baghdad is dealing with indifference to their recent warnings to Iraqi financial institutions that buy and sell dollars."

The newspaper pointed out, "The Iraqi government tried to build a European pressure group on the United States to ease its restrictions on dollar sales in Iraq, but Baghdad's diplomatic channels failed in those efforts."

It quoted Iraqi sources as saying that "Prime Minister Muhammad Shia' al-Sudani tried to create a (lobby) during his recent visit to Paris and Berlin last month."

The sources pointed out that the Sudanese government is concerned that the dollar crisis may end with the government's fall quickly, and that the channels that Al-Sudani chose to persuade the Europeans to help Iraq to put pressure on Washington were weak and traditional.

Another source, who the newspaper said was familiar with the government's atmosphere, stated that "Al-Sudani's small team does not include any expert in European affairs, while the employees of the Iraqi embassy in Paris and an unknown businessman were relied on to arrange Al-Sudani's visit to Paris." link

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Tishwash:  The Central Bank announces the deposit of more than 80 million dollars in the Iraq Money Recovery Fund

The Central Bank of Iraq announced today, Wednesday, the deposit of more than 80 million dollars in the Iraq Money Recovery Fund.

According to a document issued by the Central Bank obtained by Alsumaria News, "the amount of eighty million, two hundred and fifteen thousand, four hundred and sixty-two dollars and 26 cents was deposited in the DFI account on 1/31/2023.

or its part, the media office of the Prime Minister, Muhammad Shia'a al-Sudani, said in a statement received by Alsumaria News, that "the competent authorities managed to recover an amount of more than 80 million dollars from the stolen funds and re-enter them into the state treasury."

He added, "This came in accordance with the government's approach and within the government's continuous efforts to recover Iraq's money smuggled abroad.   link

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Tishwash:  Control of the exchange rate is achieved by supporting the Central Bank's measures

Since last week, and in continuation of the efforts of the government and the Central Bank, specialized work cells and teams from the cadres of the Central Bank and banks, with the follow-up of the Prime Minister and the Parliamentary Finance Committee, and under the direct supervision and management of the Governor of the Central Bank, have begun to hold a series of meetings, discussions and reviews of instructions with the aim of simplifying the procedures that lead to To secure the US dollar in the quantities required to cover the foreign trade needs of merchants, businessmen and importers (companies and individuals) through the banking system, as well as covering the needs of citizens traveling outside Iraq for all purposes.

In addition, the tireless efforts of the Central Bank and the government to coordinate at a high level and directly with international technical requirements, in a manner that guarantees the arrival of the dollar to the real beneficiary, while preserving the bank’s foreign currency reserves with the bank and with other banks according to the highest levels of care, transparency and responsibility.

And from our analysis of the current situation of the money market in Iraq and the continued flow of the dollar according to the daily rates of oil imports and the availability of foreign cash reserves of about 115 billion dollars. It makes us reassured that the current exchange rate crisis is temporary, and the price will return to its targeted rates from the Central Bank in a short time.

This requires governmental and parliamentary cooperation and support and keeping the crisis away from bickering, tensions and political conflicts, as well as media support for the Central Bank’s procedures and non-interference of non-specialized analysts who are hosted in Some media channels to harm the independence of the Central Bank and the reputation of our national economy internationally.

We commend here the government's measures to track down speculators in the currency market and unlicensed money changers who harm the money market and the commercial market, and we bet that the crisis will end in the short term.

We hope that the trolls understand that the duties and tasks of the Central Bank are clear and defined in its law in force and that it implements them in accordance with its independence and its monetary policy and its tools. It is not one of its tasks to control the border crossings and the customs system, nor to follow up and control speculators in the currency market, nor is it responsible for the lack of local production that covers the needs of citizens It is not responsible for increasing the ration ration or committing to distributing it on time to citizens, nor is the Central Bank responsible for providing sufficient social welfare allocations to meet the needs of the poor, and the Central Bank is not responsible for activating the productive sectors in agriculture and industry and diversifying sources of national income. 

Therefore, the responsibility to maintain the stability of the exchange rate is the responsibility of everyone, the central bank, the government, banks, the media and citizens       link

Mot:  ~~~ Happy February!!! ~~~~

Mot: ... Seeeeeee - You can teach an old dog new tricks…