"Tidbits From TNT" Friday Morning 1-8-2021

TNT:

Tishwash: Iraqi finance announces new developments at the exchange rate of the dinar

The Finance Ministry on Friday promised to adjust the exchange rate of the foreign currency against the Iraqi dinar, following a decision by the central bank to devalue the local currency and raise the prices of imported goods and goods in the country.

The ministry said in a statement to Twilight News that it is fully aware that there are a number of supportive measures to be taken to increase the positive effects of the exchange rate adjustment. The Ministry of Finance has not been able to do so publicly because of the sensitivity of the issue and because the budget must be approved first by the Council of Ministers.

"She has led extensive discussions in recent weeks after the cabinet approved the budget on the follow-up to the exchange rate adjustment with many parties inside and outside the government," she said.

The discussions will culminate next week in a proposed expanded meeting with key public and private economic actors, where the Finance Ministry will develop a detailed policy program designed to increase the benefits of the exchange rate adjustment, she said.

In a statement, the ministry expressed hope that the measures would coincide with discussions within the House of Representatives on the budget.

"The main policy measures for the protection of the poor and vulnerable have been included in the budget and discussed in the minister's statement on the budget," the statement said.

The Central Bank of Iraq has decided to raise the selling price of the dollar to banks and exchange companies to 1,460 dinars, from 1,182 dinars per dollar, in order to offset the decline in oil revenues caused by the decline in oil prices.

Iraq relies 90 percent of its income on oil revenues, the last time it devalued the dinar was in December 2015 when it raised the selling price of the dollar to 1,182 dinars from 1,166 dinars previously.

The Central Bank launched its decision on the new price to sell the dollar at the currency auction on December 20, and since then, the bank has seen a decline in currency sales.

Iraq is under great pressure under the worst economic crisis since 2003 and so far, with low oil prices and the outbreak of the Coronavirus.   link

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Tishwash:  Al-Araji: The robust economy that we seek can only be achieved through enacting economic policies, laws and plans

National Security Adviser Qassem Al-Araji affirmed: "The robust economy that we seek can only be achieved through enacting economic policies, laws and plans that take into account variables and possibilities, and the country avoids the vibrations that occur as a result of the problems that may occur that are not taken into account."

Al-Araji said at the opening of a workshop held by the Nahrain Center for Strategic Studies under the title (devaluation of the national currency and its impact on the national economy): “The government's reform measures regarding the value of the national currency come within the framework of keeping pace with what is happening in terms of a decline in oil revenues and the repercussions of the global crises that we all know. , As well as the challenge of the Corona pandemic and its repercussions on the whole world, "indicating:" This policy can achieve a recovery for the Iraqi economy and put the country on the right path. "

A copy of it, presenting studies, discussions and exchange of ideas, to search for ways to achieve a strong economy, preserve the value of the national currency, and improve the country's economic reality.

The workshop, which was attended by the Prime Minister’s Adviser for Economic Affairs, officials in the Central Bank and a number of specialized university professors interested in economic affairs, came out with a set of proposals and recommendations, the most prominent of which is to reduce the harm of raising the dollar exchange rate against the Iraqi dinar to the citizen, and provide the appropriate environment to activate the role of the private sector, as well as For upgrading the banking sector, to cover credit for the citizen, as well as providing infrastructure for the productive apparatus in Iraq, in line with the Iraqi economic system.   link

Tishwash:    A banking consultant who provides complementary tools for the success of the dollar exchange rate decision

The consultant of Islamic banks, Bashar Qaddouri, provided tools that could work for the success of the Central Bank’s decision to raise the dollar’s ​​exchange rate against the Iraqi dinar.

 Kaddouri said in a statement to (Al-Mustaqilla) that these tools relate to the work of a number of relevant ministries, which must do their work in coordination with the Central Bank.

He pointed out that the first tool concerns the Ministry of Industry with the Central Bank, and is related to activating the role of medium and strategic factories to support the local product by exploiting the opportunities presented by the Central Bank to support industrial projects.

 As for the second tool, it concerns the ministries of trade and agriculture, and it relates to determining the goods entering the Iraqi market to block the way to flooding the market with imported goods.

He indicated that this could be done by classifying and dividing the goods and imposing taxes commensurate with the situation of the goods to reduce the size of the importer, while specifying the necessary goods and exempting them from taxes in addition to the exemption of complementary materials that enter the local industry. In addition, the description of entertainment and consumer goods and the imposition of taxes on them.

Kaddouri explained that the third tool belongs to the Ministry of Planning, which has to coordinate between the imported goods and local goods and determine the percentage of exemptions, as well as prevent unnecessary goods from importing with the availability of a local alternative, and according to the market need. Specifications of the imported product.   link

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Tishwash:  Oil prices hold at nearly a year high and Brent above $54

Oil prices held near an 11-month high on Friday, and continued on a strong weekly gain, as Saudi Arabia's pledge to cut production continued to boost sentiment in the oil market.

Brent crude rose 13 cents, or 0.2%, to $54.51 a barrel by 0531 GMT. The global benchmark crude touched $54.90 on Thursday, the highest since February.

West Texas Intermediate gained 14 cents, or 0.3%, to $50.97. Crude closed up 0.4% on Thursday, after also hitting its highest level since February, at $51.28 a barrel.

The two benchmarks are moving forward towards gains of about 5% this week.

"Saudi Arabia's decision to make voluntary production cuts continues to support the market," said Hiroyuki Kikukawa, General Manager of Research at Nissan Securities.

"The strength of global equities, backed by abundant liquidity, also stimulates new oil purchases," he said, but warned that oil and stock markets may soon see a correction, as their rise does not reflect the current state of oil demand and the global economy.

Earlier this week, Saudi Arabia, the world's largest oil exporter, said it would cut production by an additional 1 million barrels per day in February and March.

UBS raised its forecast for Brent crude to $60 per barrel by mid-2012, following a unilateral cut in Saudi Arabia and expectations of strong recovery in demand in the second quarter, as travel rebounded due to the distribution of vaccines against the Coronavirus.

Meanwhile, Asian shares hit record highs today, while Japan's Nikkei hit a three-decade high, as investors turned a blind eye to rising cases of MERS-CoV and political turmoil in the United States to focus on hopes for an economic recovery later in the year.   link

Mot:  ooooh..... ooooh..... ooooh..... LOL

After a recent college basketball game, the coach spotted a cell phone lying on the floor. He picked it up and handed it to one of the referees, saying, "Here's your phone."

"What makes you think its mine?" the ref asked.

"Easy," the coach replied. "It says you missed 13 calls!

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Mot:  Proper English is So Helpful Ya KNow!! ~~~~