"Tidbits From TNT" Wednesday Morning 6-23-2021

Jun 23

TNT:

Tishwash: Experts: Economic stability will eventually lead to political stability

Experts called for the use of gradual reform and the fight against corruption to reach economic stability, which will eventually lead to political stability, in Iraq

The experts pointed out that reforming corruption needs to change individuals, thought, and institutions, ruling out that there will be positive results in the early years.

Experts attributed the rampant corruption in Iraq to Iranian interference and the absence of real effective institutions, believing that the presence of institutions specialized in combating corruption and following up on funds will support decision-makers, and thus lead to gradual stability that begins with economic stability and then political stability link

Tishwash: Oil rises on sharp decline in US inventories

Oil prices rose on Wednesday after industry data showed that US crude inventories fell more than expected, bolstering views of a tightening balance between supply and demand as land and air travel rebounded in Europe and North America.

US West Texas Intermediate crude futures jumped 33 cents, or 0.5 percent, to $73.18 a barrel at 05:07 GMT, after falling 60 cents on Tuesday.

Brent crude futures jumped 42 cents, or 0.6 percent, to $75.23 a barrel, after losing 9 cents on Tuesday.

The American Petroleum Institute industry group reported that crude oil inventories fell by 7.2 million barrels for the week ending June 18, according to two market sources.

All eyes are on what the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, plan to do when they meet on July 1 as they gauge the recovery in demand.

The US dollar's retreat from a two-month high hit late last week also helped support oil prices, as the dollar's weakness made oil less expensive relative to other currencies. link

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

Tishwash: A government advisor reveals the goal of the 5 trillion initiative for the Central Bank

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, announced, on Wednesday, the importance of the recent Central Bank initiative, and indicated that it aims to finance housing complexes for low-income classes, stressing that the initiative represents a strategic goal by moving the labor market.

Saleh said, according to the official agency, that "the monetary policy of the Central Bank of Iraq in recent years has accompanied the changes in monetary policies in the whole world, especially in the face of the long-term economic and technological stagnation that hit the economies of the world," noting that "the objectives of monetary policies have expanded in the world." In general, and the Central Bank of Iraq in particular, towards moving the real economy instead of focusing on the symbolic economy.”

He added, "The double crisis that Iraq witnessed in the war on ISIS terrorism and the decline in oil revenues between the years 2014 to 2017, prompted the Central Bank of Iraq to present a $5 billion initiative to support the real sectors (real estate, industrial and agricultural), including youth loans, with concessional financing terms. Long-term and low interest rates, which have recently reached the level of cancellation, especially for real estate loans.

Saleh pointed out that "fighting economic stagnation and unemployment has become at the core of the current monetary policy of the Central Bank of Iraq and is no less important than fighting the problems of hyperinflation that the bank adopted during the first decade of the third millennium," noting that "inflation and stagnation exhaust the national economy and lead to serious deviations in the economy." The issues of production and investment on the one hand and the distribution of income on the other hand."

Saleh pointed out that "the Central Bank's initiative today focuses on financing the construction of housing complexes for low-income classes within the framework of systematic urban planning for future cities, away from the pressure of existing cities and the problems they may cause in the escalation of real estate rents and pressure on existing infrastructure networks."

He continued, "The focus on real estate financing represents a strategic objective for monetary policy in moving the labor market, as the construction sector embraces a percentage of no less than 18 percent of the labor force, and it can move two hundred different work paragraphs at the same time."
He explained, "The back and front links of the housing finance sector from the monetary policy side are a carefully studied issue in addressing the crises of economic stagnation and unemployment in the national economy on the one hand, and the provision of housing supply within the goals of sustainable development on the other hand."

Yesterday, Tuesday, Central Bank Governor Mustafa Ghaleb Makheef revealed the launch of an initiative worth 5 trillion, in addition to contributing to moving the housing sector to complete the residential complexes that were suspended, as well as the imminent issuance of bonds that enable citizens to invest their money. link