“Watching the Change” – Wed. PM KTFA Thoughts, News w/ Tivon, MilitiaMan 7-13-22

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KTFA

Clare » July 13th, 2022

The Iraqi Oil Minister from Paris: We are continuing to implement the “Total” contracts 

2022-07-12

Today, Tuesday, the Iraqi Minister of Oil confirmed that the implementation of the group of oil contracts concluded by the ministry with the French Total is proceeding.

This came during his meeting with the CEO of the French Total Energy, Patrick Pouyanne, in the French capital, Paris, according to a statement received by Shafak News Agency.

Oil Minister Ihsan Abdul-Jabbar Ismail said, according to the statement, that “this meeting came to follow up the technical and administrative progress of the four contracts within the agreement, including following up on the Artawi field gas investment contract after signing the design contract for the Artawi Central Complex between South Gas Company and KBR in cooperation with Total”.

Ismail pointed to “discussing the sea water transfer project for its importance in sustaining and increasing the production of oil fields in southern Iraq, as well as researching the development of the Artawi field and the mechanisms for implementing an investment project (1000) megawatts of solar energy.”

For his part, CEO of the French Total Energy Company, Patrick Pouyanne, affirmed standing by Iraq to achieve its development goals in developing the energy and oil sector, stressing that Iraq is one of the most promising countries in attracting global investments to implement projects in this framework, and that Total is committed to partnering with the Iraqi government for its keenness. To deal with us transparently, and to achieve the principles of mutual trust in a way that serves the common interests.

It is noteworthy that the Ministry of Oil has concluded a set of contracts with Total, which is the largest in the history of the local oil industry in terms of the volume of investments that are monitored by the international company and the Ministry of Oil.   LINK  

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MilitiaMan » July 13th, 2022

Pay attention to these two articles and one key point specific within them.

Below they tell us that the French Total was to withdraw from the contracts at the end of this month. Well that may have stimulated the above action to conclude the agreements today.

We are witnessing what I have heard to be pressure being put on Iraq from the world at large and in this case pressure in the tune of $27 billion worth of contracts and the loss of future revenues.

Iraq is not in a position to lose large amounts of money for political ineptness. The move was likely to put a shot across the bow, while likely given a kind “promising” gesture that being of; Iraq do what is needed to form a legitimate government and we can work together in this agreement. You have that? Yep.. lol

Total canceling a deal of that caliber? They needed assurances and apparently got them. They were likely told something along the lines of what the Supreme Judicial Council has said for months. As the government stands today, we can proceed legally and politically on more than one front.

For Total to agree on contracts today and conclude the deal would require the right environment.. They would have had that in writing too.

It shows me that there is a big push on Iraq to go live internationally.. I like it.. ~ MM

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After an agreement to invest $27 billion in energy, France’s Total withdraws from Iraq

12th July, 2022

Economist Nabil Al-Marsoumi revealed, on Tuesday, that the French company Total decided to withdraw from Iraq, at the end of this month

Al-Marsoumi said in a Facebook post, “Private information from reliable sources indicates that the French company Total decided to withdraw at the end of July from the initial agreement it signed with the Iraqi Oil Ministry, in September 2021, due to the delay in forming the Iraqi government and the inability to convert the initial agreement into a final contract between them

He pointed out that “the previous agreement included the implementation of four projects in Basra worth $27 billion in the field of oil, gas and electric power. The first is to develop a complex and refining gas 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 is related to “transferring and treating sea water with a capacity of 5 million barrels per day to maintain and increase production from oil fields, the third project, the establishment of facilities to produce one thousand megawatts of electric power based on solar energy, and the fourth project, the development of the Artawi oil field with the aim of maximizing the potential of gas supply

The implementation of the project was delayed due to “the Oil Ministry’s failure to obtain approvals on the financial details of the deal from all government departments whose approval is required, and it sank into many disputes

The economic expert pointed out that “the agreement raised concerns because of the signing of the agreement without procedures that guarantee competition and transparencyThe sources say thatunder the draft terms, Total is counting on obtaining ten billion dollars of the first investment to finance the broader project by selling oil from the Artawi oil field, which is one of the four projects in the broader agreement

The Artawi field is currently producing 85 thousand barrels per day, and Total seeks to increase it to the level of 210 thousand barrels per day, and Total is scheduled to get 40% of the sales of the Artawi field to pay the amount  LINK

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Tivon » July 13th, 2022

People do not see how monumental this is. Iraq just got put in the pressure cooker.

The timing here is impeccably stringent for many reasons. One being the Oil & Gas Law being up for a vote and activation which would require governing bodies that will work from within the EFSL that has allocated 500 Billion to the Ministry of Oil who will have the exclusive right to receive and market all produced petroleum, and transport the same through pipelines.

An obligation to develop a field development plan for each commercial discovery, submit the same for approval by the competent body (The Ministry of Oil, the Iraq National Oil Company or the appropriate regional body) and endorsement by the FOGC.

Remember I told you all that we are about to see a Blitz Play by PM Al-Kazemi. Look how the article mentions a deal back in 2021 that has not matured due to not forming a government. As I’m sure the 2021 Budget had this contract. Because they said the IQD value was supposed to be raised last year.

Regardless in the contract the Ministry of Oil is required to do many follow ups. And carry out certain duties. Which is why the article from yesterday that stated how the Oil & Gas Law is an unresolved law that only requires a current government to enact outside the political impasse. That’s where the EFSL comes into play.

Because no matter what happens whether they seat a government or dissolve it. The EFSL will step in and do what is neccessary for the country. So it’s a win-win for us regardless. Checkmate.

As you can see the role they will play in this deal. They will be required to give preference to the purchase of Iraqi products and services in petroleum operations. Which is the private sector. A requirement for the employment and training of Iraqi nationals. A requirement to support Iraqi institutions in research and development activities relating to petroleum operations.

Importantly, the draft oil and gas law does not specify the form that petroleum contracts must take, and thus leaves open the possibility that production sharing contracts may be permitted in the future. A clear right for licence holders to transfer profits outside of Iraq (after payment of relevant taxes).

We are definitely about to see a monumental change in days. You think the FOGC is about to miss out on this opportunity? Especially if the CBI is on the same board.

And they only have two weeks to act.

And they already have their prime player running the show with the EFSL to back him up.

Guys we are in the 4th Qtr with 60 left on the clock on the 20 yard line and only down by six.

As I said the post game interview from Al-Kazemi will be historic. The citizens have someone who is truly working for them. Now they are finally about to see the fruits of all the things promised.

KTFA you need to prepare now. Get your affairs in order. Go over your plans.

This is “The End Game”.

You should go forward with the assumption from this day that they can flip the switch at any moment.

Thus French company just threatened Iraq to discontinue business at the end of the month. Ask yourself what will they do to ensure that this does not happen? Your commonsense should have no problem coming up with an answer.

The PM has emergency powers for a reason. Keep in mind the PM and the CBI all sit on the same council. Which is “The Federal Oil & Gas Council”. They were created to oversee deals regarding oil contracts.

So not only is the pressure on the government. It’s also on the CBI because they are the ones who will activate all contracts (Including Oil) simply by reinstating  the IQD.

All of this has to happen fast. Or else. This company is not playing any games.

CBI, the ball is in your court. July is very hot.

The establishment of a Federal Oil and Gas Council (FOGC), which would act as the main body for overseeing the Iraqi petroleum sector. The membership of the FOGC would consist of:

The relevant Deputy Prime Minister.

The Minister of Oil

The Minister of Finance

The Minister of Planning

The Governor of the Central Bank of Iraq

A ministerial-level representative of the Kurdistan region (and any other region formed pursuant to the Constitution subsequent to the enactment of the oil and gas law) 

Representatives from each producing governorate not included in a region;

The heads of the Iraq National Oil Company and the Oil Marketing Company (SOMO) (and other relevant companies)

And up to three experts specialised in matters relating to oil and gas, finance or economics.

So as you can see above that they all occupy a seat on the council. Everyone that would be relevant for that type of deal from the French company are the players currently on the field.

They are cornered. There’s no getting out of this deal.

This couldn’t happen at a better time. How this is coming together is just Devine. Everyone thought that we were about to go into another dry spell because the EFSL was published without that new shiny thing that has been sitting on the shelf. The window shopping is over. They have shown that the store is closing in 15 minutes.

So whatever you been looking at or trying on needs to be put in the basket and brought to the front counter so the cashier can crunch the numbers and give you your total.

Now you can actually think about where you’re going to place these new products in your potential new home. The company found a buyer and now they know you have the funds to acquire something they have been trying to get rid of since last year.

Are we prepared to for the lifestyle we all are about to embark upon? Hopefully.

We made it this far. Some are hanging on by a thread. Barely getting by. And now they are faced with the opportunity where all that they have learned will come into play in a very short time.

This is what we came for. IMO

We are pushing through with continuous progress. I love where we are at. It’s a beautiful thing I tell you. What Al-Kazemi pulled off is astonishing. This guy has cemented a solid legacy. The Iraqi citizens are very fortunate they have him on the front lines. What a moment in history.

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Hammy14 » July 13th, 2022

The article itself, MM’s comments, Tivon’s comments, and Petra’s comments in chat are all extremely important and very powerful.  It is exceptionally clear now just how crucial the EFSL is to the reinstatement of the IQD.  Kazemi finally figured out a way to get around all the political BS, and the move was brilliant!!  This article, along with all the comments from MM, Tivon, and Petra should be plastered all over the Final Article thread and highlighted in varies shades of red.  These next two weeks most likely will be packed full of very exciting news, as the CBI is now put in the position to reinstate the currency and catapult Iraq into the international marketplace!!!  IMO

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MilitiaMan » July 13th, 2022

Drop the mic… Bravo TIivon.. I have the feeling your depth, is back ground specific  and oriented.. lol  We are not making this stuff up..

I’ll show an interesting tandem item to get you and everyone start thinking more outside the box. Something you do extremely well. 

The talk of digitization and gold being a very integral part of the process is before us now. We are seeing Iraq’s trading partners lopping currency, we are seeing trading partners de-pegging from the USD dollar now, and other things like multi billion dollar contracts for assets in Iraq concluded, increased gold purchases Iraq centric, etc… Why?

Because of the above you point out is also,  a part of the process. Iraq’s integration to the international arena is something that is not going to stop now.. 

Iraq is an integral part of the Global plan.. The UST is talking about a Universal Health Initiative and Finance on the back of Food Security. The UST was just in Japan and is heading to Indonesia for G20 meetings. At the same time there is a USA visit to the ME with big plays on the table. Aside from the security and State making issues there are to be meetings with the GCC in SA.. Think AMF with that in mind.. BUNA Clearing digital currencies…

They are also talking now about what we mentioned back in October 2021.  Digital Currencies at the Retail Level or and in addition to digital assets. That is us btw, retail.

Take note, as of and over this last couple weeks the UST is talking specific to countries about digital assets. They don’t have to tell us everything at the retail level. They just prepare us with phrases and concepts. Plausible deniability is a component of the process.

They do however, tell countries and put the implications of what will be talked about in the shoulder to shoulder meetings and prior to them and after. Here is whey I believe they have already started the process to going gold backed for currencies.

Above, the Lop by Iran (2-5 years to shake out) and the repegging of the Indian Rupee, may all be in line with the game is on and Iraq is about to be show cased. To the world. Like we have shown the present government has legal authority to accomplish what they need to.

We litterally are watching the change to asset backed currencies before our eyes.. imo.. ~ MM

WASHINGTON — The U.S. Department of the Treasury released a notice seeking public comment regarding potential opportunities and risks presented by developments and adoption of digital assets as part of its work under Section 5 of President  Joe Biden’s digital assets Executive Order. Section 5 of Executive Order 14067, “Ensuring Responsible Development of Digital Assets,” directs Treasury, in consultation with the Secretary of Labor and other relevant agencies, to report to the President on the implications of development and adoption of digital assets and changes in financial market and payment infrastructures for United States consumers, investors, businesses.

“For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams.” Under Secretary of the Treasury for Domestic Finance Nellie Liang said. “The Treasury Department is seeking to benefit from the expertise of the American people and market participants by soliciting public comment as we engage in this important work.”

Through this request for comment (RFC), Treasury is requesting input from the public that will inform its work in carrying out its mandate under section 5(b)(i) of the Executive Order.  This RFC offers an opportunity for all interested parties to provide relevant input, data, and recommendations pertaining to the implications of developments and adoption of digital assets and changes in financial market and payment infrastructures for U.S. consumers, investors and businesses.

Members of the public are encouraged to submit comments, and comments that respond to the notice will be available on http://www.regulations.gov.

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U.S. Department of the Treasury

Office of Public Affairs

Press Release:             FOR IMMEDIATE RELEASE

July 12, 2022

Contact:                      Treasury Public Affairs; Press@Treasury.gov

Treasury Releases Request for Comment on Risks and Opportunities and Presented by Digital Assets
WASHINGTON — The U.S. Department of the Treasury released a notice seeking public comment regarding potential opportunities and risks presented by developments and adoption of digital assets as part of its work under Section 5 of President  Joe Biden’s digital assets Executive Order. Section 5 of Executive Order 14067, “Ensuring Responsible Development of Digital Assets,” directs Treasury, in consultation with the Secretary of Labor and other relevant agencies, to report to the President on the implications of development and adoption of digital assets and changes in financial market and payment infrastructures for United States consumers, investors, businesses.

“For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams.” Under Secretary of the Treasury for Domestic Finance Nellie Liang said. “The Treasury Department is seeking to benefit from the expertise of the American people and market participants by soliciting public comment as we engage in this important work.”

Through this request for comment (RFC), Treasury is requesting input from the public that will inform its work in carrying out its mandate under section 5(b)(i) of the Executive Order.  This RFC offers an opportunity for all interested parties to provide relevant input, data, and recommendations pertaining to the implications of developments and adoption of digital assets and changes in financial market and payment infrastructures for U.S. consumers, investors and businesses.

Members of the public are encouraged to submit comments, and comments that respond to the notice will be available on http://www.regulations.gov.

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U.S. Department of the Treasury

Office of Public Affairs

Press Release:             FOR IMMEDIATE RELEASE

July 13, 2022

Contact:                     Treasury Public Affairs; Press@Treasury.gov

 

READOUT: Secretary of the Treasury Janet L. Yellen’s Meeting with Japan Financial Services Agency Commissioner Nakajima Junichi

TOKYO — Today, Secretary of the Treasury Janet L. Yellen met with Japan Financial Services Agency Commissioner Nakajima Junichi as part of the regular coordination between the United States and Japan on a number of bilateral and multilateral financial regulatory issues.  They exchanged views and reaffirmed their commitment to collaborating on financial issues related to sustainable finance, digital assets, and compliance of sanctions.

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U.S. Department of the Treasury

Office of Public Affairs

Press Release:             FOR IMMEDIATE RELEASE

July 12, 2022

Contact:                      Treasury Public Affairs; Press@Treasury.gov

Treasury Releases Request for Comment on Risks and Opportunities and Presented by Digital Assets
WASHINGTON — The U.S. Department of the Treasury released a notice seeking public comment regarding potential opportunities and risks presented by developments and adoption of digital assets as part of its work under Section 5 of President  Joe Biden’s digital assets Executive Order. Section 5 of Executive Order 14067, “Ensuring Responsible Development of Digital Assets,” directs Treasury, in consultation with the Secretary of Labor and other relevant agencies, to report to the President on the implications of development and adoption of digital assets and changes in financial market and payment infrastructures for United States consumers, investors, businesses.

“For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams.” Under Secretary of the Treasury for Domestic Finance Nellie Liang said. “The Treasury Department is seeking to benefit from the expertise of the American people and market participants by soliciting public comment as we engage in this important work.”

Through this request for comment (RFC), Treasury is requesting input from the public that will inform its work in carrying out its mandate under section 5(b)(i) of the Executive Order.  This RFC offers an opportunity for all interested parties to provide relevant input, data, and recommendations pertaining to the implications of developments and adoption of digital assets and changes in financial market and payment infrastructures for U.S. consumers, investors and businesses.

Members of the public are encouraged to submit comments, and comments that respond to the notice will be available on http://www.regulations.gov.

————————————–

U.S. Department of the Treasury

Office of Public Affairs

Press Release:             FOR IMMEDIATE RELEASE

July 12 2022

Contact:                     Treasury Public Affairs; Press@Treasury.gov

Joint Statement by Secretary of the Treasury Janet L. Yellen and Japan Finance Minister Suzuki Shunichi

TOKYO — Ahead of the G20 Finance Ministers and Central Bank Governors Meeting in Indonesia, Secretary of the Treasury Janet L. Yellen and Japan Finance Minister and Minister of State for Financial Services Suzuki Shunichi held an in-person bilateral meeting in Tokyo. Following the meeting, they issued the following joint-statement agreeing to further strengthen the U.S. and Japan’s bilateral ties and affirming the pivotal roles played by both countries in tackling the difficult challenges facing the global community:

We renew our strong commitment to address challenges facing the global and domestic economies, including higher food, energy and commodity prices and growing food insecurity, compounded by Russia´s war of aggression against Ukraine. We call on the International Financial Institutions (IFIs) to implement the commitments in their Action Plan to Address Food Insecurity. We will provide well-targeted support and build a more resilient and stronger supply chain in close collaboration with like-minded countries and international organizations. The economic fallout from Russia’s invasion has raised exchange rate volatility, which can have adverse implications for economic and financial stability. We will continue to consult closely on exchange markets and cooperate as appropriate on currency issues, in line with our G7 and G20 commitments.

We remain steadfast in our solidarity with Ukraine and continue to support Ukraine. We are united in our strong condemnation of Russia’s unprovoked, unjustifiable, and illegal war against Ukraine and continue to increase Russia’s cost of its war by implementing economic and financial sanctions. We welcome G7 efforts to continue exploring ways to curb rising energy prices, including the feasibility of price caps where appropriate, while considering mitigation mechanisms to ensure that most vulnerable and impacted countries maintain access to energy markets. We will work with the international community to coordinate and maximize the efficiency and impacts of bilateral and multilateral supports to address Ukraine’s critical near-term economic challenges and safeguard macroeconomic stability, and we are committed to supporting Ukraine in rebuilding for its future, based on a clear blueprint to be developed with the assistance of the IFIs.

On global health, we welcome the establishment of a Financial Intermediary Fund (FIF) at the World Bank as a new global financing mechanism dedicated to addressing financing gaps in pandemic prevention, preparedness and response (PPR). The FIF will complement the work of existing institutions and catalyze funding from domestic, private, philanthropic, and bilateral sources. We underscore the need for the FIF to launch and become operational by September of this year. We also highly value the meaningful, ongoing collaboration between Finance and Health Ministers as well as through the G20 Joint Finance-Health Task Force. We commit to further strengthening this coordination and building a resilient global health architecture, including through accelerating progress towards achieving Universal Health Coverage (UHC).

On climate change, we reaffirm our commitment to achieve economy-wide net zero emissions by 2050. We will promote a just transition that keeps the goal of limiting global warming to 1.5℃ within reach through inclusive international cooperation that includes all the major emitters. We will focus on reducing carbon intensity through the full range of climate mitigation measures appropriately tailored to each country’s emissions profile and context. We share our intent to continue to lead in developing a Just Energy Transition Partnership (JETP) for Indonesia.

As for debt issues, we underscore the importance of swiftly delivering successful country cases with increased predictability for those who have requested a debt treatment under the G20 Common Framework. We urge all relevant creditors, including non-Paris Club countries, such as China, with large outstanding claims on low-income countries facing debt sustainability challenges, to contribute constructively to necessary debt treatments.  We emphasize the critical role of creditor coordination to ensure fair burden sharing among all creditors in a debt treatment for vulnerable middle-income countries, notably Sri Lanka.   We also urge all official bilateral creditors to share lending data with the World Bank and IMF to secure accurate data through creditor-borrower debt data reconciliation.

On infrastructure, we reaffirm the importance of promoting high-quality, transparent, and sustainable infrastructure investments to narrow the infrastructure gaps in Asia-Pacific and other regions. To ensure the quality and value of our investments, we will deliver projects based on the G20 Principles for Quality Infrastructure Investments (QII) and encourage the use of QII principles by our partners. We will continue to work bilaterally, multilaterally with G7 partners under the Partnership for Global Infrastructure and Investment, and with like-minded partners.

On international taxation, we reaffirm our firm commitment to the timely and effective implementation of the OECD/G20 Inclusive Framework two-pillar solution. We welcome the progress made on the technical detail of Pillar 1 and are committed to work towards its adoption following the revised timeline agreed by the Inclusive Framework.  We will continue to work toward the swift implementation of Pillar 2 and expect the Inclusive Framework to swiftly finalize the implementation framework.

We extend strong support for the review of G20/OECD Principles of Corporate Governance, and affirm the role of sound corporate governance frameworks in contributing to the economic recovery in the post COVID-19 era.

At this critical juncture in history, Japan and the United States, as the world’s two largest democratic economies, resolve to promote strong, resilient, and sustainable economic growth, and to strengthen the rules-based global economic order.

MilitiaMan » July 13th, 2022

The fine print? lol ~ MM   

Source: Dinar Recaps


Samson » July 13th, 2022

Topped by Arab countries.. Learn about the most expensive currencies in the world

13th July, 2022

The value of money can only be determined by comparison with the money of other countries, and in total, there are about 180 currencies in the world today. Which of them is the most expensive and most valuable?

Many people think that the dollar, the euro, or perhaps the pound sterling are the most valuable currencies, but this is not the case.

For several years, the currencies of the Middle East countries occupy the leading positions in the list of the world’s most valuable currencies.

In Kuwait the dinar, which is said to have one millionaire in every fifteen of its citizens, was able to displace the Indian rupee, which held a leading position in the Asian region.

In 2006, it reduced Kuwait the value of its currency increased by 1% against the dollar, and because of that the exchange rate became 0.29 Kuwaiti dinars per dollar, but after only one year – in the middle of 2007 – the Kuwaiti dinar got rid of its peg to the dollar, replacing it with a basket of multiple currencies. 

Today, the Kuwaiti dinar is equal to 3.25 US dollars, to occupy the position of the most valuable currency in the world, according to the assessments of a number of research centers and international financial institutions.

In second place, comes the Bahraini dinar. It is remarkable that in the period 1966-1973, the Bahraini dinar was the national currency of the United Arab Emirates, and was later replaced by the Emirati dirham. The Bahraini dinar entered the market in 1965, replacing the Gulf rupee. In 1987, it was heavily pegged to the US dollar. Today, the price of one dinar is 2.65 dollars.

As for the third place, it was occupied by the Omani riyal, which is the official currency of the Sultanate Amman. On one side of the note there is an inscription in English, and on the other in Arabic. There are no English inscriptions on the coins. 1 Omani Rial = $2.60.

Although the Jordanian economy is one of the poorest in the Middle East. The country has few natural resources, in addition to chronic problems with unemployment, inflation and foreign debt. However, the Jordanian dinar comes in fourth place in the list of the most expensive currencies in the world. 

The Jordanian Dinar is linked to the Special Drawing Rights, which is a unit of account International Monetary Fund, which means the fact that it is pegged to the US dollar. The value of one Jordanian dinar is 1.41 US dollars.

And only in fifth place, comes the pound sterling, the official currency of Britain since 1694. In the eighteenth and nineteenth centuries, the pound sterling was the main reserve currency almost all over the world, but it lost its place as the most important currency after the end of World War II, when the American currency began to dominate the world market. Today, one pound sterling is equal to $1.20.

As for the euro, it comes in eighth place after Cayman Islands dollar, which is worth 1.2 US dollars, and after the Swiss franc which is equal to 1.04 dollars. The euro is the official currency of the European Union, and 19 countries in the eurozone use it. It appeared in cashless circulation in 1999, and since 2002 banknotes and coins have been introduced. Today, one euro is equal to approximately $1.02

The same is true of the Swiss franc. Although the price of the Russian ruble is much lower than the aforementioned currencies, the Russian ruble has become the best global currency to strengthen against the US dollar in 2022, according to the agency “

The US dollar, the most widely traded currency around the world, is ranked ninth in terms of its value among the world’s currencies.

Bloomberg – According to the agency, despite the unprecedented Western sanctions on Russia the ruble has appreciated by 11% since the beginning of the year.  LINK

For the first time since April, oil is below $100

07/13/2022 08:53:31

Oil prices fell on Wednesday, after successive declines, to reach less than $ 100 a barrel for the first time since April, while traders are looking forward to US inflation data that may weaken the market. The dollar rose to its highest level, while what China is still fighting Corona, all of which are weakening the market.

Brent crude futures were down 2 cents, or 0.02 percent, at $99.47 a barrel at 04:45 GMT, and US West Texas Intermediate crude was down 18 cents, or 0.19%, at $95.66.

Investors have sold off oil positions on fears that sharp increases in interest rates to stem inflation will trigger an economic slowdown that will hurt oil demand. Prices fell more than 7% on Tuesday in choppy trading. Another concern is that higher US interest rates in response to rising inflation will push the dollar higher, and also undermine oil prices.

The renewed travel restrictions for COVID-19 in China also affected the market. Many cities in the world’s second-largest economy have adopted new restrictions, from business closures to broader lockdowns, in an effort to curb new infections from one of the highly contagious sub-variables of the virus. The dollar index, which measures the currency against a basket of six peers, also rose earlier today to 108.56, its highest level since October 2002.

Oil is generally priced in US dollars, so a higher dollar makes the commodity more expensive for holders of other currencies, which puts downward pressure on demand and its dollar price. Meanwhile, markets are closely watching US President Joe Biden’s visit to the Middle East, where he is expected to ask Saudi Arabia and other Gulf producers to increase oil production to help stabilize prices.  LINK

Al-Kazemi’s advisor presents his vision to protect Iraq’s economy from oil price fluctuations

13th July, 2022

Today, Wednesday, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, identified two factors that may stand behind the possibility of a recession in the global economy in the coming months, and as he explained the impact of this in Iraq, he proposed a solution to protect the Iraqi energy market from the fluctuations in prices of crude oil markets

Saleh told the Iraqi News Agency, “There are two factors for the possibility of the global economy heading towards economic stagnation in the coming months, as the first factor is the strict monetary policy of the strongest economy in the world, which is the economy of the United States, which will lead to the policies of raising interest rates undertaken by the US Federal Reserve to combat inflation.

In the general level of prices in the United States, the increase in investment costs and a decline in growth in real sectors, which leads to a possibly slow decline in inflation growth, but will lead to a greater deterioration in the level of employment, higher unemployment rates and lower rates of growth in GDP

He added, “There is an objective link between high rates of economic growth and high demand for energy resources, which will contribute to the stagnation of derived demand for crude oil in the global market,” noting that “the same will apply to the economies of the eurozone by following strict monetary policies to confront the frightening European inflation.” Currently

He pointed out that “the second factor is the development of trends in the Chinese economy, which represents the second largest economy in the world, which has entered the phase of the Cold War with the West, which means that the growth of the Chinese economy will be indirectly affected by the global recession and various forms of economic boycott due to tension in economic relations.”

The international community and its exposure to some Western commercial and technological isolation, as well as the inevitability of the Chinese economy being affected by the conditions of recession in global demand

He noted that “China’s imports of Russian crude oil are currently the highest among the sources of supply, and they are discounted in value by 40% per barrel, which means abandoning part of its imports from other currently high-priced oil markets from outside Russia

He pointed out that “the aforementioned factors will undoubtedly lose the growth momentum in demand for oil energy resources in the world, which will cause some (glut) in the oil supply markets, which are highly elastic or deflationary demand factors that directly contribute to the further deterioration of prices.

The oil-exporting countries in OPEC and others, the potential glut in the oil market may cause price damage to the economy of Russia, the second oil producer in the world, whose daily production is estimated at about 11 million barrels of crude oil, most of which goes to export, to face a severe oil price war

He continued: “There is no doubt that Iraq, whose economy depends on crude oil exports, will be affected by the price drops (if they occur) and will undoubtedly cause a decrease in the country’s financial returns, so a mechanism must be applied that is to go as an accelerated future view towards employing the accumulation of financial surpluses that are currently obtained and directing their spending with priority. To finance large investments in the refining sectors of giant refineries and petrochemical plants to export petroleum products, whose added value rises to between 5-7 times compared to a barrel of exported crude oil

He continued: “Therefore, it is necessary to adopt a policy of accelerated transformation from the policy of exporting crude oil to exporting oil products, in a manner that ensures the stability of the limits of Iraq’s financial and economic sustainability from the fluctuations of oil markets during the next ten years

He concluded by saying: “Thus, protecting the Iraqi energy market from fears of future crude oil market price fluctuations can only be achieved by raising the added value of the crude oil itself, by adopting the policy of manufacturing oil derivatives immediately by investing in (giant refineries with various products and few losses). as agreed upon by all energy experts in Iraq  LINK

National Security reveals the outcome of its operations against smugglers of oil derivatives and seizes more than one million liters

07/13/2022 12:08:19

 The National Security Agency revealed the outcome of its operations against smugglers of oil derivatives.

The outcome came, according to a National Security statement, as follows: 

1- More than one million liters of smuggled petroleum products were seized. 
2- The arrest of 117 people accused of smuggling.
3- Confiscation of (49) tanks and vehicles intended for smuggling.
4- Seizing (93) nests. 
5- Seizing (496) tanks that were used for storing and selling oil derivatives, in violation of fundamentalist controls.
6- Closing (11) stations for violating regulations or exploiting the crisis.  LINK

4 zeros were removed from it.. Iran launches new two-denomination banknotes

13th July, 2022

Today, Wednesday, the Iranian market entered the new 1000 and 2000 toman banknotes, where 4 zeros were deleted.

These banknotes were printed at the time of the former director general of the Central Bank and signed at that time, according to the semi-official Iranian agency, “Fars”.

In the upper part of these banknotes, the zeros are seen in a faint color, while in the lower part of these banknotes they have been completely deleted. LINK

Source: Dinar Recaps


Samson » July 13th, 2022

Russian diplomat: Russia is considering paying its contribution to the United Nations in rubles

13th July, 2022

Director of the International Organizations Department at the Russian Foreign Ministry, Pyotr Ilyichev, said that Russia is studying the possibility of paying its contributions to the United Nations in the Russian ruble.

The switch to paying Russian contributions in rubles is being considered, and it largely depends on the willingness and ability of our UN partners to accept payments in the Russian currency,” Ilyichev added in an interview with the Russian Interfax agency. and whenever possible, in a timely manner,” according to Asha. 

Ilychiv said that Western sanctions include extensive measures that limit the normal functioning of the Russian financial system. friendly”.  LINK

Russia may legalize Islamic banking without interest

13th July, 2022

Russia may soon legalize Islamic banking, which assumes no interest income, according to the Russian newspaper “Kommersant”.

“The documents have been sent for approval, and their consideration is scheduled to begin at the autumn session,” the newspaper quoted the head of the State Duma Committee on the Financial Market, Anatoly Aksakov.

According to the “Partner Financing Activities” bill and two related projects, non-credit financial organizations of a special type will be able to provide Islamic banking services, and their activities will be regulated by the Central Bank of Russia.

The text of the document states that non-credit financial organizations will be able to provide cash loans to individuals and legal entities without receiving any compensation, to finance them as distributors by concluding sales and purchase agreements on condition of “deferred” installment payment or leasing agreements: financing production and trade activities; Offer guarantees.

The authors of the bill noted that against the background of the severing of ties with Western financial markets, the need for partner financing instruments (Islamic) is increasing.

The newspaper pointed out: “The activity of non-credit financial organizations is based on attracting funds from clients under partnership investment agreements and placing them by purchasing goods and selling them later on a commercial margin, on terms of installments, deferred payment or concluding leasing agreements.”

The Central Bank stated that it generally supports the development of legal conditions for partnership financing, as this will have a positive impact on the financial sector.  LINK

Brazil intends to buy the “largest amount” of diesel from Russia despite Western sanctions

13th July, 2022

Brazil intends to buy the largest possible amount of diesel from Russia, its Foreign Minister Carlos Alberto Franco Franca announced Tuesday, despite the sanctions imposed on Moscow over its invasion of Ukraine.

This statement comes after Brazilian President Jair Bolsonaro announced an “almost” agreement with Russia in this regard. “We must make sure that we have enough diesel for the agricultural sector and for Brazilian drivers,” the minister told reporters on the sidelines of a meeting of the UN Security Council chaired by Brazil.

The European Union and the United States imposed sanctions on Russia in response to its invasion of Ukraine that began on February 24, but many countries in the world chose not to implement them, leading to a split in the international unity that Washington seeks to isolate Moscow and condemn the war.

The minister pointed out that Brazil is a “strategic partner” of Russia, which relies heavily on it to supply fertilizer. He explained that to face the problem that is not limited to the availability of oil as much as the lack of refining, which led to a decrease in stocks, Brazil “seeks to achieve security” in terms of imports and “Russia is one” of these reliable suppliers.

In the face of rising fuel prices and the approaching presidential elections scheduled for October, Jair Bolsonaro, a close associate of Vladimir Putin, announced Monday that he is on the verge of concluding an agreement to buy diesel from Russia, despite international sanctions.

During a phone conversation with his Russian counterpart on June 26, the Brazilian president secured a pledge from Russia to keep delivering fertilizers that the South American agricultural giant needs.

Brazil, a world agricultural power, imports more than 80 percent of its fertilizers, and more than 20 percent of these imported fertilizers come from Russia.  LINK

Cleitus » July 13th, 2022

Remember, BRICS + others also are gold-backed with their currency. So, who’s losing out? 

Source: Dinar Recaps

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