Mon. AM TNT News Articles 9-20-21



The yuan and the dollar

China said that the world should prepare from now on to buy our goods in Chinese yuan, and the decision will be implemented after a month.

This remarkable early warning raises several questions, including: Will the yuan affect the value of the dollar? Or, in other words, will the Chinese currency replace the US currency?

It is known that global trade as a system through which the global market deals in dollars (fixed pricing), and on this basis, economists find it difficult for the Chinese yuan to replace the dollar or affect its value in the short and medium term.

This came during a discussion with someone in this regard, but he added that the Chinese yuan could affect the value of the dollar in the long run.

I found in this vision tangible facts on the ground, based on the speed of economic growth that China is leading over all global economies, and if this growth continues at a rapid pace as it is happening now, the yuan may outperform the dollar in the long run.

I find here in the Chinese decision and its new approach that it used its cunning in order to raise the value of its currency (the Chinese yuan) by imposing its currency in trade exchange operations, and thus will create a price balance with the dollar in the medium term.

The reason we expect the yuan to be able to compete with the dollar in the long run is that it follows the transactions of the oil market globally until China is able to contain all oil-exporting countries in accepting cooperation in the Chinese yuan, of course it needs a period of time, if it manages to acquire the oil market, and this depends Who will win the big fight next?

What is the extent and size of the implications for the Iraqi economy?

The percentage of Iraqi trade dependence on Chinese goods and commodities is

75 – 80% of the Iraqi market imports. This means that the impact of the Chinese decision to impose its currency will be the largest on Iraqi trade. In other words, the demand for the Chinese yuan will rise to the equivalent of the dollar, or they will gradually share the demand for them between the short and medium term stages.

Here, those in charge of monetary and fiscal policies must take into account the extent or size of the impact on the national economy as a result of this sudden decision, so as not to enter into the cycle of providing the two currencies in parallel with the demand for them.

The private sector, with its commercial and banking sectors, will be the one that will be most affected by this transformation, and it has to deal with the expected effects of this measure.

I expect that if the Chinese decision is implemented so quickly, it will cause chaos in the Iraqi market at first, and it is required to address it in advance.

For this reason, we said that Iraq needs to diversify its dealings with the countries of the world according to its interests; Because the struggle of adults continues in all aspects of life, and we have to play with adults.    link

Deputy: Iraq needs a strong parliament that fights corruption and holds officials accountable

A representative of the State of Law coalition, Duha Al-Qaisar, confirmed, on Monday, that the country needs a strong parliament that works to legislate laws and fight corruption.

In a televised statement, Al-Qaisar said, “Iraq needs to choose representatives in the House of Representatives who have the ability to complete laws and legislation, fight corruption and hold the corrupt accountable,” noting that “there are great observations about the performance of the current parliamentary session.”

The Caesar indicated that “the next parliament needs to gain credibility from the people,” explaining that “most of the interrogations that were delayed were caused by political consensus and bargaining.”  link

Al-Kazemi’s government signs the two largest contracts that will put Iraq in the category of the largest energy sources

In about two weeks, the government of Prime Minister Mustafa Al-Kazemi was able to attract the two largest companies operating in the energy field in the world, and from two countries that are considered giants of global economies.

The Iraqi government was able to attract the French company Total, which will enter the field of energy investment, and yesterday it signed a contract with Baker Hughes to invest associated gas in the fields of Nasiriyah and Al-Gharraf.

In the opinion of experts and economic analysts, “these steps will push the country to occupy a prominent position in the field of energy in the Middle East, and will reflect positively on the Iraqi local economy, as well as provide great job opportunities.”

And the experts told (Iraq Today), that “for decades, Iraq has neglected the associated gas file, and billions of this wealth were wasted, and therefore the Al-Kazemi government made the right decision in difficult and unconventional circumstances, and this is what counts for it as a clear and announced achievement.”

They pointed out that “the Total and Baker Hughes contracts will also encourage the giants of the oil and gas industry to enter this promising arena and compete to gain a foothold, especially in the field of auxiliary industry or industries related to the extraction or purification file or other important projects.”

On Sunday, Iraq launched a gas investment project in two oil fields in the south of the country, with a capacity of 200 million standard cubic feet of gas per day, with the American company “Baker Hughes”.

Where the “Baker Hughes” company will invest the gas associated with the extraction of oil in the fields of Nasiriyah and Al-Gharraf in Dhi Qar Governorate.

The cost of the project is $370 million, and it will be implemented within 30 months.

On the fifth of this month, Al-Kazemi’s government signed a contract with the French company “Total Energies” worth 27 billion dollars, to implement four projects in the field of gas and electric power.

The French oil company will build four giant energy projects in Basra Governorate in the south of the country, with a value of 27 billion dollars.

According to this contract, Total will provide two billion dollars to build gas station facilities in the south, and a third of the investment funds will be spent over the next seven years.

For his part, CEO of Total, “Patrick Pouyanne”, said on the sidelines of the signing of the contract, that “the company will start with an initial investment of $10 billion, and that engineering work will begin by the end of this year.”

The contract includes four projects, the first is the development of a gas refining complex in all fields, outside the Basra Gas Agreement, which are the fields of (Artawi, West Qurna/2, Majnoon, Al-Touba, Al-Luhais).

the second project, the construction of a large central gas complex in the Artawi field (southeast); The third project is the construction of facilities to produce 1,000 megawatts of electrical energy using solar energy.

While the fourth project, the development of the Artawi field with the aim of maximizing the potential of gas supply.

Estimates indicate that Iraq possesses an estimated stock of 132 trillion standard cubic feet of gas, but 700 million standard cubic feet of it is burned daily as a result of the lack of optimal investment over the past decades.    link

Source: Dinar Recaps


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