"Tidbits From TNT" Thursday Morning 9-30-2021

Sep 30

TNT:

Tishwash: Standard & Poor's announces its new rating for the Iraqi economy

The report submitted by the agency {Standard & Poor's} on the credit rating praised the Iraqi economy's continuation of maintaining its credit rating as a result of the ongoing economic reforms of the financial policy in Iraq.

A statement by the Iraqi Ministry of Finance, of which the agency {Euphrates News} received a copy, stated that "the new classification comes to reflect the continued maintenance of the level of foreign currency reserves that exceeds the service of the external public debt and the fulfillment of other external financial obligations as a result of the rise in crude oil prices and their recovery in the third and fourth quarters of the year." Present".

The agency also confirmed, according to the statement, "the possibility of improving Iraq's credit rating in the event of a high rate of economic growth in Iraq, diversification of the state's public financial revenues, oil and non-oil, an increase in the per capita income share of national income, and the continuation of measures to reform the financial and economic policy as mentioned in the economic reform paper (white paper)." Which would strengthen the financial and economic policy of the Iraqi government." link

********************

Tishwash: New instructions for buying and selling foreign currency for the year 2021 and the stability of the dinar exchange rate

Samir Al-Nusairi*

Central banks in the countries of the world mainly aim to achieve economic stability by achieving stability in the monetary system and the financial system through their programs and strategies that aim to maintain stability in the exchange of their local currencies against other foreign currencies and to build sufficient foreign cash reserves to cover their local currency in circulation.

In accordance with special international standards issued by the International Monetary Fund, banks are also evaluated based on other criteria related to facing crises, challenges, economic, political and security shocks, natural and epidemic disasters in their countries, controlling stable rates of inflation and interest rates, and applying internationally established regulations and rules for combating money laundering and terrorist financing.

Therefore, the Central Bank of Iraq issued last week new instructions to banks and exchange companies and mediation in the sale and purchase of licensed foreign currencies. And externally, which leads to controlling and maintaining the stability of the exchange rate and compliance with the requirements of the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2021.

The Governor discussed what was mentioned in the instructions with the heads of the boards of directors and the authorized managers in a specialized workshop in which he explained the objectives of issuing the instructions and the procedures required of banks to implement them as of 10/17/2021, with an emphasis on the need for banks to practice their real work as established in their Law No. 94 of the year 20034 and focus on banking finance and the many banking products that contribute to the transition of banking work from banking to contributing to development.

The economic conditions and crises, the financial deficit and the decline in the financial position of the public finances, which led to a change in the exchange rate of the Iraqi dinar for the purpose of overcoming the above crises with the Central Bank taking many measures and initiatives to stimulate the economy and revitalize the economic cycle, which contributed to the passage of nine months after the exchange rate change that the rate of control is controlled Exchange in the trading market for about a month at the target rate of 1470 dinars against the US dollar

. Therefore, the new instructions regulate the process of selling foreign currency in the currency window, through which it will be implemented to maintain the stability of the exchange rate, control the movement of foreign currency locally and internationally, and abide by international standards for compliance rules and combating money laundering and terrorist financing.

We do not forget here how the dollar devoured the local currencies of neighboring and regional countries, which suffered from a circumstance similar to that of Iraq, such as Iran, Turkey, Lebanon and Syria, where their local currency collapsed in very large proportions. While the Iraqi dinar exchange rate stabilized within the target rate of the Central Bank, despite the speculation in the market.

In order for the economic analyzes to be accurate and not extreme of the reality of monetary stability in Iraq and the effects of the expected economic, epidemiological and expected shocks on the exchange rate of the Iraqi dinar.

In order not to take the expectations of media intimidation and create a state of fear in the public and in the banking sector. I assert through an insightful economic and analytical view of the state of the monetary trading market and from a neutral and transparent point of view, we note that the steps, procedures and balanced financing initiatives of the Central Bank and the availability of foreign cash reserves at the rate and at the rate that Its sufficiency is determined to cover the monetary mass in circulation and to cover imports, as the foreign cash reserve is fully secured and Iraq ranks fourth in the Arab world.

The Central Bank will make exceptional efforts in accordance with the monetary policy applications and to maintain the stability of the target rates of exchange rates.

Economic and banking consultant link

****************

Tishwash: Oil prices fall as US inventories rise

Oil prices fell, Thursday, to extend their losses, after official figures showed an unexpected increase in inventories in the United States, despite the stability of prices.

Brent crude was down 28 cents at $78.36 a barrel by 05:37 GMT, after falling 0.6 percent on Wednesday. US oil fell 13 cents to $74.70 a barrel, having also fallen 0.6% in the previous session.

The US Department of Energy's Energy Information Administration said on Wednesday that US oil and fuel stocks increased last week.

Data from the Energy Information Administration showed that crude stocks rose 4.6 million barrels in the week ending September 24 to 418.5 million.

The rise in stocks came as production in the United States returned to nearly the levels it was before Hurricane Ida struck about a month ago, and production increased to 11.1 million barrels per day last week.

On the production front, the Organization of the Petroleum Exporting Countries and its allies, including Russia, a group known as OPEC+, are likely to maintain an agreement next week to add 400,000 barrels per day to their November production link

TKing: Happy Day to everyone! Tomorrow is a new Month. Today is a new day. Haters gonna hate and good people gonna act great! Situations are just that. Character is who you are. So let your light sine and have a great day!

Seaurchin: Apparently according to the majority leader of the Senate they have an agreement to pass the CR which will fund the govt until 12/3, vote in the am Thursday

Yada: Link for the stopgap bill to avert shutdown LINK

RVAlready: Hope that is the final item needed before the RV. The politicians sure have played with this ridiculously. Next thing I want to hear is good rates and prompt exchange appointments.

HappyCamper60: hope I’m not out of line here by saying this. I’ve heard this info from several different sources . Sources are saying the bond holders of zim and dong are holding out for double the money they have been offered and because of their greediness it’s holding up the rv for us. And if the bond holders don’t comply with the offers they will shut down the whole rv. I think it’s pretty sad thing prayers please we can’t let them get by with it

RVAlready: Happy camper. No no no!!! German and other historic bonds!!! Not Zim or dong stuff!!! Yes, I had heard the story. The greedy folk were historic bond holders. They were not currency holders. This road has just gone on too long. Hopefully, it will be over very soon.

******************

Mot: More Tips from the Dieting Supoort Group!! ~~~ from Mot of course! ~~~