"Tidbits From TNT" Tuesday AM 10-26-2021

Oct 26

TNT:

Tishwash: Goldman Sachs expects Brent price to exceed $90 by the end of the year

Goldman Sachs said that a strong recovery in global demand for oil could push Brent crude prices, the global benchmark, to exceed its year-end forecast of $90 a barrel .

The American investment bank said that it "expects oil demand to soon reach pre-Covid-19 levels, at about 100 million barrels per day, with consumption recovering in Asia after a delta mutating wave."

The bank also expected that "the switch from gas to oil may add at least one million barrels per day to the demand for crude."

Goldman Sachs does not expect any slowdown in oil prices in the near term, noting that "demand will rise again in the near term, stronger than expected."

This comes with the reopening of more countries and the easing of restrictions, amid the success of vaccination campaigns against Corona link

Tishwash: The appearance of Muhammad Salih: The surplus oil price revenues will go towards achieving economic and social well being.

Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, confirmed that: the surplus oil price revenues will tend to achieve economic and social prosperity.

He told the National Iraqi News Agency ( NINA ) that: The general budget in 2022 will achieve a surplus, especially if the average annual oil barrel increases to be at least 75 dollars.

Saleh added: This surplus will be directed in two directions, the first: building a precautionary financial account called the “budget stability account,” which is the government’s foreign reserve to counter the fluctuations of public budget revenues in the coming years, and it is called the “budget stability fund to achieve financial sustainability.”

He continued: As for the other side, the financial surplus will be spent on investment projects, especially faltering income-generating projects that maximize the added value, which absorb the momentum of unemployment and help raise growth in the gross domestic product by no less than 5% or double the annual growth of the country's population in a manner that achieves the minimum limits of economic and social welfare. link

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Tishwash: Member: An economist warns of the control of the billionaire mafias of corruption on the currency market

The expert in economic affairs, Safwan Qusay, stressed the need for the Central Bank to control all outlets of foreign currency transferred abroad or sold internally, warning against "the control of billions of corruption mafias on the currency market."

Qusay said in a statement to the National Iraqi News Agency / NINA /: “Foreign currency sales in the Central Bank of Iraq are facing fluctuations and declines as a result of the Central Bank of Iraq’s attempt to implement new instructions to control the currency sale window and track the movement of funds and the mechanism used to enter goods and services and include them in taxes and customs.” .

He pointed out: "These measures will transfer the demand for foreign currency to the parallel market in the short-term period, especially since there are goods flowing into the Iraqi market from unofficial outlets, and their owners obtain the Iraqi dinar and try to get it out in various ways, including inflating the price of imported goods from abroad." .

He added: "If the attempt of the Central Bank of Iraq to track the movement of dollar funds out of Iraqi banks abroad succeeds, and then control the import outlets from solid origins, irregular traders will gradually turn to the regular market to obtain foreign currency through official methods, and we may witness an increase in the price of the dollar." In the parallel market, unless the central bank continues to sell the dollar in cash and more than the market needs to maintain the parallel price.

The economic expert stressed the need to control all outlets of foreign currency transferred abroad or sold internally, because financial and monetary reform must be comprehensive, and without that, the billions of corruption mafias will continue to grow at the expense of the wealth of Iraqis. link