Samson » March 2nd, 2022
Successive jumps .. Oil rises to 113 dollars a barrel
Oil prices continue to rise today, Wednesday, as the barrel of “Brent” rose above the level of $113 for the first time since July 2014.
By 11:05 Moscow time, US West Texas Intermediate crude futures rose 6.87% to $110.42 a barrel, while Brent crude futures rose 6.54% to $111.84 a barrel.
Prior to that, Brent contracts were traded above $113 a barrel for the first time since July 2014. LINK
Al-Kazemi’s advisor: The state’s loss will be great by adjusting the exchange rate
1st March, 2022
Tuesday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified two directions for resolving the exchange rate crisis, while explaining the extent to which the currency market was affected by conflicting statements.
Saleh said, “The currency market is inevitably affected by information, and the bond sale market is also affected, which is a free market with duelists and an information market,” pointing out that “sometimes there is false information that disturbs the market or may be truthful that leads to the exchange of buying and selling very quickly.”
He added, “It is not possible to deviate from the contexts of the Ministry of Finance, but if the exchange rate is modified, it will have a benefit and a loss, and the state’s loss will be greater because it has achieved revenues in the form of an inflation tax at a rate of 20%, and if the value of the dinar is raised, the value of the increase will be lost by public finance, especially and that it depends on 93% of the value of its revenues that depend on oil, as it is a key player in managing the budget.”
He pointed out that “there must be two directions to solve the crisis, the first is to re-evaluate the dinar and raise it alone, and it seems that there is no tendency on the part of the Ministry of Finance, but it must use the compensatory tendency such as taxes and customs duties, expand the base of social assistance and improve the food ration of the poor,” referring to that “the budget compensates for the difference between the exchange rate difference by supporting the poor in the budget and expanding the base of support, and this is what the Ministry of Finance tends to do now.”
He continued, “Among the solutions is also maintaining the prices of fuel and food and consumer goods in the markets to compensate for the income,” stressing that “the market is stable at a low exchange rate and there is a high price difference, but inflation is still within the single decimal place, according to a statement by the Ministry of Planning.”
And he warned, that “if inflation exceeds two ranks, it will become a danger,” noting that “the biggest solution to treating inflation is interfering with the exchange rate.” LINK
International Monetary warns Iraq and announces its position on the dollar exchange rate
The International Monetary Fund warned Iraq of the “fragility” of its economic recovery.
The head of the IMF mission in Iraq, Tohir Mizorov, said in a press statement: “Policies aimed at containing inflation and its impact should take into account the fragility of recovery in Iraq and the long-term goals of diversifying the economy and strengthening the private sector. It is to avoid making the problem worse by adopting domestic policies that would increase inflation, for example through expansionary policies.”
He added, “The second priority is to implement policies that are carefully targeted to protect the most vulnerable groups. At the same time, it will be important to avoid any measures that could weaken Iraq’s economic capabilities without addressing the problem.
For example, measures that undermine the competitiveness of local producers and encourage imports will not contribute to realizing the benefits of remembering the weak groups, if they exist at all, and this explains the scarcity of countries with a fixed exchange rate to raise the value of their currency in economic history, and for the same reasons, it would not be advisable for Iraq to do so.
Mezroev pointed out that “the rise in prices leads to an erosion of the purchasing power of families’ income and savings, and since more than one-fifth of the Iraqi population lives in poverty, protecting vulnerable groups from the effects of inflation is of paramount importance.
To achieve this, the 2022 budget should give priority to strengthening cash transfers directed to helping families.” the poorest during these difficult times.” “Also, continuing to work on improving the coverage of the social protection network will contribute to ensuring assistance to those who are really in dire need of assistance,” he added.
Moreover, linking the increase in pensions, salaries of civil servants and low wages to inflation will contribute to protecting the purchasing power of their incomes and prevent them from falling into poverty. International experience has shown that such measures are the most effective in protecting the livelihoods of vulnerable groups.” And the House of Representatives discussed in its session last Monday, in the presence of Finance Minister Ali Allawi
The Council discussed, during its hosting by the Minister of Finance, the rise in the exchange rate of the dollar and its repercussions on the market through the rise in prices and the damage to the poor segment, and the discussion of public debt and the financial policy of the Ministry of Finance and the proposed treatments.
Allawi warned during the session that reconsidering the exchange rate of the currency “in an ill-considered manner would lead to financial chaos similar to some countries, so the trend was to set the exchange rate of the Iraqi dinar comfortably to protect it from any external changes with a proactive and correct step in coordination with the Central Bank and study it with the President The government, heads of political blocs and other parties, in addition to the support of the International Monetary Fund, to change the price at a reasonable rate.
Allawi indicated that the benefits of devaluing the Iraqi dinar increased government revenues by 23 percent, pointing out that “the rise in prices in the Iraqi markets was not due to the decrease in the exchange rate of the dollar only, but rather as a result of the increase in global food prices since 2020.”
The Minister of Finance explained that “the rise in global oil prices is beneficial to Iraq and at the same time affects its needs of foodstuffs and oil derivatives, and the import of gas that is used to generate electricity by 30 percent, noting that the Iraqi external debt will be reduced by 4 billion dollars in 2021.” Allawi suggested “supporting vulnerable segments of society by allocating a direct grant to be distributed through the ration card or social welfare and supporting small and medium-sized enterprises, especially in rural areas, as a result of the financial abundance resulting from the increase in oil prices.” LINK
Clare » March 2nd, 2022
DON’T WALK PAST THIS ARTICLE! IMO… WHY IS THE IMF TALKING TO THEM ABOUT THE EXCHANGE RATE???? WHY NOW???? THINK! IMO
“in addition to the support of the International Monetary Fund, to change the price at a reasonable rate.”
WHY DISCUSS THE EXCHANGE RATE IF NO NEW RATE IS FORTHCOMING? MONDAY NIGHT FRANK TOLD US “ALL THEY TALK ABOUT IS THE NEW EXCHANGE RATE!”- F26
Sir » March 2nd, 2022
IMO- IMF is telling them stop it now!
Drop the 3 zeros and float your dinar, fixed rate will not work, get it done now!
Solorat » March 2nd, 2022
This article is perfect, IMO there telling these people to get this finished with the 3 zeros and exchange rate. Get this done, finished, completed NOW!!!
Samson » March 2nd, 2022
The European Union separates 7 Russian banks from the SWIFT system
2nd March, 2022
Today, Wednesday, the European Union announced the separation of seven Russian banks from the “Swift” banking system.
The union said, according to a document published in its official gazette, that “the procedure affected the following Russian banks: VTB, Rossiya, Turkey, Novikombank and Prom Sviasbank.”
The decision to separate these Russian banks from the “Swift” system is scheduled to be implemented starting March 12, 2022.
He added that “it is prohibited” to “deliver, transfer or export” euro banknotes. To Russia, but with a number of exceptions,” noting that “the tightening of sanctions is linked to the aggravation of the situation in Ukraine.” LINK
Behold’ IMO – WW we will see country after country going to gold backed currency do to what you read in this article. Game over for a system that was designed to keep us all in debt. MLK said it best in his statement… Free at last-thank GOD Almighty FREE at last…
Samson » March 2nd, 2022
A major Russian bank announces its withdrawal from European markets
2nd March, 2022
The main Russian bank, Sberbank, announced on Wednesday that it was withdrawing from European markets, after it was subjected to extensive financial sanctions in response to the Russian invasion of Ukraine.
“In the current situation, Sberbank has decided to withdraw from the European market. Group banks are facing abnormal withdrawals and threats to the safety of their employees and offices,” the bank said in a statement reported by Russian news agencies.
The statement added that the bank is no longer able to provide liquidity to its European branches due to a memorandum issued by the Russian Central Bank.
Sberbank had branches in 8 European countries: Germany, Austria, Croatia, the Czech Republic, Hungary, Slovenia, Serbia and Bosnia and Herzegovina. The bank emphasized that “the European branches of Sberbank enjoy a high level of capital, assets and customer deposits that are guaranteed by local legislation.”
The European Union’s banking regulator had announced that a bankruptcy proceeding would be initiated on the main European branch of Sberbank, which has been weakened by financial sanctions.
This branch, “Sberbank Europe AG”, headquartered in Austria, employs about four thousand people and will be the subject of a “insolvency procedure” in this country, according to the authority. LINK
Source: Dinar Recaps
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