Thurs. PM KTFA News Articles 4-21-22



Samson » April 21st, 2022

Iraq… Ambiguity surrounding the 2022 budget

21st April, 2022

Eyes in Iraq are still awaiting the completion of the draft financial budget for the year 2022, hoping to include what the Iraqi citizen aspires to, at a time when calls are rising for calls to restore the exchange rate of the dinar against the dollar to its previous era.

With calls from economists to amend the dollar exchange rate in the current year’s draft budget law, sending the draft to Parliament is still surrounded by ambiguity, after government statements indicated that the current government could not prepare a draft budget law.

Analysts emphasized that one of the most important priorities of the upcoming budget, according to global oil prices, is to adjust the value of the dinar against the dollar, and to provide investment projects that contain unemployment among young people. 

Noting that “there are many priorities that the government and the legislature within the parliament should take into consideration when voting on the 2022 budget.”

And they indicated that “these priorities are parallel in terms of their importance in terms of their relationship to the life of the citizen, including adjusting the value of the Iraqi dinar against the dollar, in addition to all kinds of investments to attract unemployed youth, and the risks it resulted, most notably drugs and crime.”  LINK

The Minister of Finance reveals the most important challenges of the next government

21st April, 2022

Today, Thursday, Finance Minister Ali Allawi revealed the most important challenges facing the next government, while referring to cooperation with the US Treasury Department on money laundering

Allawi said, during a symposium organized by the Atlantic Research Institute in Washington: “The most important Iraqi challenges that will face the next government are the inherited laws and institutional procedures,” stressing “the need to address them if we want to benefit from the country’s resources and its strategic location and how to transform the economy into a post-conflict stage. oil

On the sidelines of his participation in the Spring Meetings held in Washington, Allawi stressed that “this visit came to deepen the economic relationship with international institutions, the World Bank, the International Monetary Fund, the American Treasury and the American Development Agency, and we aspire to strengthen relations

He added, “The IMF supports the overall economic and reform policy for Iraq,” noting that “the World Bank supports certain projects, and now they have several projects they are working on in Iraq

 He continued, “There is cooperation with the US Treasury on several issues, including money laundering and Iraqi-American relations in light of the Russian-Ukrainian war, because there are economic aspects that must be taken into consideration

He continued, “In light of all these matters, it was necessary for us to come to Washington with a large and important team from the (Iraqi Finance) ministry and other ministries  LINK

Deputy: The protests may generate pressure on the parties to agree on forming the government

21st April, 2022

Independent MP Hadi Al-Salami said, on Thursday, that the alliances “are still between ebb and flow”, and that the way in which the alliance has been carried out since 2003 until now “does not deviate from the image of conflicts between parties,” noting that if the partisan parties agreed between them, the government was formed “smoothly and smoothly.”

Al-Salami added, in a statement to the official “Al-Sabah” newspaper, which was followed by Mawazine News, that “the solution lies in popular pressures and protests after the month of Ramadan, and may generate pressure on the parties to agree on forming the government, because the reins of matters are in the hands of the ruling parties,” as he put it.

He pointed out that “the number of independent representatives is few, and they are in the western region and Mosul allied with the parties, and some of them in the center and the south also allied with the parties and became a party to political conflicts.”

He added, “The conflicts come within the race to obtain gains and positions, and in 2014, the absence of a government continued for eight months, and the formation of the government is always delayed, in addition to the three-month delay in approving the election results in the current session due to partisan conflicts.”   LINK

The United Arab Emirates Central Bank issues two new banknotes in denominations of five and ten dirhams

21st April, 2022

The Central Bank of the United Arab Emirates announced the launch of two new banknotes in denominations of five and ten dirhams, made of “polymer” and characterized by technical specifications and advanced security features.

This new offering comes in the context of the third issue of the national currency and based on the Central Bank’s keenness to keep pace with the comprehensive renaissance and the ambitious development vision of the state in the next fifty years, especially in the financial and economic fields, after the success of the first offering of the 50-dirham banknote (polymer).

This also comes as an affirmation of the Central Bank’s adoption of the sustainability approach and its efforts to develop environmental standards in the financial sector and promote sustainable growth by using an environmentally friendly “polymer” material through its ability to be recycled, as these banknotes have a higher degree of durability and a longer shelf life than banknotes made of cotton at a rate of two times or more.

The Central Bank continued the approach of the third edition, by blending modern technologies with the beauty of design. The aesthetics of the design in these two papers is represented in the presence of a transparent window decorated with the image of the founding father, the late Sheikh Zayed bin Sultan Al Nahyan, “may God rest his soul”, and the logo of the state’s visual media identity, in addition to the presence of advanced geometric shapes, drawings and inscriptions designed using intaglio printing techniques and fluorescent inks. .

Technical characteristics of the five-dirham banknote

In designing the new five-dirham banknote, the Central Bank was keen to preserve the technical characteristics of the color in the paper banknote currently in circulation of the same denomination, to facilitate identification by the public.

Pictures of a number of national and civilizational symbols in the UAE were also included in the design. In the center of the front face of this banknote, the image of “Ajman Fort” appears as an archaeological and historical landmark that stands as a witness to the cultural and historical legacy of the fathers and grandfathers. In the center of the reverse side of the banknote, an image of “Dayya Castle” appears in the Emirate of Ras Al Khaimah, which is a distinctive cultural and heritage destination in the country.

Technical characteristics of the ten-dirham banknote

The new 10 dirham banknote kept its green color, to be similar to the color of the banknote currently in circulation. In the center of the front face appears the image of the Sheikh Zayed Grand Mosque, which is a prominent religious, national and cultural landmark in the country, and enjoys a distinguished position in the world. In the center of the reverse side of the banknote, there is an image of “Khorfakkan Amphitheater” as one of the prominent cultural monuments in the Emirate of Sharjah.

Security features of the two banknotes

The Central Bank has worked to employ the latest international standards and technologies in the two new banknotes, and to use technical specifications and high-quality apparent and latent security features in the banknote industry to enhance the confidence of dealers in the national currency as well as to combat counterfeiting. The two banknotes also include a touch and prominent feature in Braille to help blind dealers identify the value of the banknote.

– Offering dates

The 10 dirhams (polymer) banknote will be released for circulation as of today “Thursday” corresponding to April 21, 2022, and the new five dirhams (polymer) banknote will be released for circulation as of Tuesday, 26 April 2022. The two current banknotes will remain Of the same denomination in circulation together with the new (polymer) banknotes as banknotes whose value is guaranteed by law.

His Excellency Khalid Mohammed Balama, Governor of the Central Bank of the UAE, said on this occasion: “The issuance of the new banknotes of the five and ten denominations, and before that the fifty dirhams, is a source of pride and pride because of the symbols and connotations they carry that reflect the history of the United Arab Emirates and its immortal heritage, at the same time. It reflects the future vision of development and prosperity in the country.”

His Excellency added: “Thanks to the wise guidance and firm support of our wise leadership, we look forward with confidence and optimism to the future to achieve more achievements and reach global leadership. We at the Central Bank affirm our commitment to the constant quest for the UAE dirham to become an international currency that is used on a global scale.”  LINK

Economist: The only currency in the world has an impact on the dollar

21st April, 2022

The Russian economist, Mikhail Shulgin, spoke of a currency that has an effective impact on the US dollar, referring to the Hong Kong dollar (HKD).

Shulgin, who is head of global research at the investment company “Otkritie Investments”, said that stability in Asian markets is largely related to the Hong Kong dollar, whose price is closely related to the US dollar, and changes in one of the two currencies may affect the other, according to what was reported by “Russia Today”.

He added that the system of linking the Hong Kong dollar to the US dollar has proven its feasibility since 1983, as the range of fluctuations is very narrow, with a margin of 1.28%, which gives Hong Kong, as one of the global financial centers, financial and economic stability.

The expert pointed out that this makes the Hong Kong dollar one of the alternative currencies to the American currency – the dollar.

However, he pointed out that the exchange rate of the US dollar against the Hong Kong dollar has grown significantly this year and approached the upper limit of the acceptable range of fluctuations, in light of expectations to raise the interest rate in the United States, which will lead to an increase in US government bond yields, which will constitute support dollar in the world.  LINK

Israel adds China’s yuan for the first time ever while cutting its dollar holdings in biggest currency reshuffle in a decade

21st April, 2022

Israel’s central bank added yuan to its reserve holdings for the first time ever.

Previously, the bank only held US dollars, euros, and the British pound. 

According to the IMF, the dollar’s share of the total global currency reserves has fallen to its lowest point in over two decades. 

Israel’s central bank will add Chinese yuan while slashing its dollar and euro holdings in a move to diversify its reserve allocations and lengthen its investment horizon, Bloomberg reported. 

“We need to look at the need to earn a return on the reserves that will cover the costs of the liability,” Deputy Governor of the Bank of Israel, Andrew Abir, said in an interview.

In addition to the yuan, the bank will also add the Canadian and Australian dollars, signaling a shift in the bank’s “whole investment guidelines and philosophy,” Abir said. Previously, the bank only held US dollars, euros, and the British pound. 

Israel’s reserves stockpile will surpass $200 billion for the first time. 

Moving forward, the yuan will take up 2% of the bank’s reserves, and both the Canadian and Australian currencies will have 3.5% each, according to the bank’s annual report.  The new additions means the euro’s share will fall from 30% to 20%, and the dollar will account for 61%, down from 66.5%. 

According to the International Monetary Fund, the dollar’s share of total global currency reserves has fallen to its lowest point in over two decades, sparking speculation over the rise of China’s yuan. 

China has long pushed for the yuan to supplant the dollar as the go-to reserve currency. The weaponization of the US currency against Russia’s financial institutions means a sea change could be coming, experts say. The effectiveness of the West’s sanctions against Russia has provided a wake-up call for countries seeking to reduce their exposure to the dollar, economist Aleksandar Tomic previously told Insider. 

But for China’s yuan to gain much further, other nations would have to lose trust in the US economy and gain trust in China’s monetary authorities.  “Challenges to the dollar have come before, but none have taken hold because when things turn volatile, the US tends to be stable, so the dollar persists,” Tomic said.


Source: Dinar Recaps


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