"Tidbits From TNT" Wednesday Morning 1-20-2021
TNT:
Tishwash: Iraq tops the first place in the Arab world in terms of activity and trading
The Arab Monetary Fund announced, on Wednesday, that Iraq ranked first in the Arab world in terms of activity and trading.
"The announcement was made by the Arab Monetary Fund in its latest statistics. Iraq is ranked first in the Arab world for the first time in many years in terms of the change in the percentage of activity and trading. link
Tishwash: High oil prices and the Brent index jumps above $ 56
Oil prices recorded a noticeable rise today, Wednesday, amid expectations that the next US administration will spend huge stimulus spending that will boost demand for fuel and reduce crude stocks.
Brent crude futures rose 37 cents, or 0.66%, to $ 56.25 a barrel.
US West Texas Intermediate crude futures were up 40 cents, or 0.76 percent, to reach $ 53.38 a barrel.
Today, Wednesday, the Chinese capital, Beijing, announced tougher measures to control COVID-19, as it will shut down a subway station after the city reported its largest daily jump in new cases of COVID-19 in more than three weeks.
Traders will be watching the US crude and product inventories data, due for release from the American Petroleum Institute today and the Energy Information Administration next Friday. link
************
Tishwash: Credit rating. Iraq among the most dangerous countries
The US insurance agency AM Best has ranked Iraq among the most dangerous countries in the political, economic and financial fields.
The agency's special report on Iraq was part of "risk reports" of 138 countries around the world, setting risk levels for each country, serving international insurance companies to meet their financial obligations, based on the study and evaluation of all factors that directly or indirectly affect the insurance sector.
According to the report, obtained by The Twilight News agency, Iraq falls within the highest level of the most dangerous countries, based on measures of economics, politics and the financial system.
While GDP growth in 2019 was 4.4 percent, it is expected to be a 12 percent decline in 2020, an economic downturn due to measures taken to curb the corona epidemic and the collapse of oil prices.
Among the high-risk countries, a map published by the AGENCY shows countries such as Iraq, Egypt, Libya, Algeria, Lebanon, Ethiopia, Kenya and Nigeria.
The global collapse in oil prices in 2020 was a "major shock" to the region, as many of its economies depend edited on oil and gas exports, the agency's report said.
Social and political unrest in the region could escalate, particularly in countries with limited resources that could not provide incentives, the agency said. "The united nations is ready to take the measures that will help the iraqi people to do their part," he said. The situation in Lebanon is particularly unstable.
She noted that many currencies in the region are pegged to the US dollar, limiting the ability of fiscal policies to deal with the crisis.
"The Iraqi economy lacks diversity and is heavily dependent on the oil sector," the report said, adding that the Corona epidemic has exacerbated the country's economic vulnerability. The drop in oil prices and incomes has put more pressure on the country's financial situation, exacerbating the deficit to 20 percent and 16 percent of GDP.
Because of Iraq's strained relations with key Western countries, it is likely that it will not receive a large amount of foreign aid. The Central Bank has set up a fund to raise funds from financial institutions and raised the equivalent of $37 million to tackle the Corona epidemic.
He said inflation could worsen over the medium term, although domestic demand and devaluation of the national currency kept inflation at 1 percent in 2020.
According to the INTERNATIONAL Monetary Fund, tackling government weakness and reducing corruption will be vital for the future of economic development.
As for political risks, the report said that government stability is under great pressure under the epidemic, noting that waves of demonstrators protesting, while the risks, including those related to non-payment of salaries, have increased because the government of Mustafa Al-Kadhimi has not been able to raise enough revenue.
Widespread corruption remains an important element, and Iraq ranks 162nd out of 198 countries on transparency international.
As for the risk of rocket attacks on US military and diplomatic bases by "militias" linked to the popular mobilization, they have increased. In addition, ISIS is likely to take advantage of the partial withdrawal of US forces and step up its attacks against iraqi security forces and energy sites.
The agency also classified iraq's financial system as high-risk. The central bank has helped stabilize the economy by financing and supporting SMEs, she said.
According to the INTERNATIONAL Monetary Fund, a crucial strategy to reform large state-owned banks and resolve issues in the financial sector will boost private sector development and provide financial stability.
AM Best was founded in 1899 in New York City and has branches around the world including London, Dubai, Amsterdam, Hong Kong, Singapore and Mexico City. In addition to its core work in the insurance sector, the agency publishes news reports and analysis of information related to the insurance sector.
Tishwash: The dollar reaches 160 thousand against the Iraqi dinar: Approval of the 2021 budget will bring the "second shock" to the market after the recovery!
The exchange rates of the dollar continue to rise rapidly against the Iraqi dinar, with renewed discussions about the 2021 budget law in the House of Representatives, amid expectations of a further increase.
Today, Monday, economic expert Rasem Al-Akidi identified two main reasons behind the dollar’s rise in the past 48 hours.
Al-Aqidi said, in statements monitored by Yass Iraq: “There are two main reasons behind the high price of the US dollar in the Iraqi markets. The first is the stability of the epidemiological situation of Corona virus after a significant decrease in infections, the opening of the markets and the remarkable return of commercial activity after a clear period of depression in addition to A second reason is that people emerged from the shock of raising the exchange rate weeks ago.
He added, "The dollar has become a commodity subject to supply and demand, and the higher the demand, the higher the prices and vice versa, confirming that the exchange rate reaches 1600 after the budget is approved, because prices will remain volatile between the price that determines the central bank and the price that determines the market based on supply and demand."
The dollar prices in the local market exceeded the 1450 dinars barrier 48 hours ago in all governorates after they ranged between 1400-1430 for a period that exceeded 3 weeks.
After worrying expectations that the exchange rate could rise to two thousand dinars against the dollar, a member of Parliament, Abdul Hadi Al-Saadawi, confirmed that the dollar exchange rate will stabilize and be stable in the markets according to the pricing set by the Central Bank after the country's general federal budget law for 2021 was enacted.
Al-Saadawi said: “The dollar’s exchange rate reached 2000 dinars, a common rumor launched by traders with the aim of confusing the market and benefiting from speculation,” indicating that “the dollar’s exchange rate will stabilize at 1,450 dinars after passing the budget bill.”
He added that "passing the budget on the exchange rate stated by the government will contribute to market stability and limit rumors that confuse the economic and financial situation in the country," stressing that "controlling currency dealers is difficult by the government."
Representatives considered that the current exchange rate levels above 1450 dinars to one dollar were caused by the failure to approve the budget and to officially fix the exchange rate at 1460 according to what the Ministry of Finance requested in the budget.
Earlier, the Prime Minister’s financial and economic advisor, the appearance of Muhammad Saleh, commented on the fluctuation of the dollar’s exchange rate against the dinar in the Iraqi market.
The appearance of Muhammad Saleh said, "The exchange rate of the dollar against the Iraqi dinar will stabilize in the market, according to what was approved by the Central Bank of Iraq after the budget was approved," indicating that "the current instability comes due to the market shock from raising the exchange rate according to the new monetary policy, which requires Time to settle completely. ”
Saleh added, "The decrease in the central bank's sales of dollars includes something positive, as it will increase the reserves of the Central Bank of Iraq, and the decrease is a temporary issue that is not permanent, and the dollar will resell according to a specific ceiling as it was previously."
A member of the Finance Committee in Parliament, Jamal Cougar, spoke on Tuesday 5-1-2021 about the mechanism that enables the return of stability to the Iraqi markets, while noting that the reduction of the effects of the reduction of the value of the dinar against the dollar will be after the passage of the 2021 budget bill.
And Jamal Cougar said, "The decline in the effects of reducing the value of the dinar against the dollar and achieving stability in the market is done by fixing the exchange rate of the dollar in the draft general financial budget, after passing it in the House of Representatives."
Cougar added, "The second step is for the government to develop solutions to address the high prices, by supporting imported goods and activating the local product as well as searching for other alternatives."
He pointed out that “citizens have so far been uneasy about the current exchange rate, and thus a state of anxiety has been born that has made the market largely unstable,” noting that “the decline in central bank sales indicates that the numbers that were announced in the past and the current numbers are real, because The real investor who needs financial liquidity goes to the bank to buy the dollar, or the traders who were benefiting from the selling price of the dollar are afraid of going to the bank. link
Mot: Teacher: "If I gave you 2 cats and another 2 cats and another 2, how many would you have?"
Johnny: "Seven."
Teacher: "No, listen carefully... If I gave you two cats, and another two cats and another two, how many would you have?"
Johnny: "Seven."
Teacher: "Let me put it to you differently. If I gave you two apples, and another two apples and another two, how many would you have?"
Johnny: "Six."
Teacher: "Good. Now if I gave you two cats, and another two cats and another two, how many would you have?"
Johnny: "Seven!"
Teacher: "Johnny, where in the heck do you get seven from?!"
Johnny: "Because I've already got a cat!"
************
Guys Be Prepared fer the Mind Games When Ya Get Married! ~~~ from Mot of course!
