Clare » January 6th, 2023
The “bite” of the sanctions confuses the Iraqi dinar.. An economic report highlights the “collapse” of the currencies of regional countries
The Emirati newspaper, “The National News”, reviewed the challenges facing the currencies of several countries in the region, including Iraq, and the extent of the impact of the difficulties on the ability of the governments of these countries, politically and financially, to manage the crises facing their countries.
The report of the Emirati newspaper, issued in English, and translated by Shafaq News agency, stated that “a group of economic and geopolitical factors harm several currencies in the Middle East and have bad effects on the economies of their countries, such as Iraq, Egypt, Lebanon and Turkey.”
Among these pressures, the report said, they include a decline in export revenues of basic commodities, a decline in revenues related to exports of non-oil goods and revenues from services from sectors such as tourism, in addition to the occurrence of large losses in remittances due to the disruption of economic activity, in addition to the decline in the prospects for the influx of foreign direct investment. .
After the report pointed out that the monetary reserves of foreign currencies are under great pressure in these countries, and that governments are implementing measures to stop this deterioration, it indicated that there are still many questions about whether the national currencies will be able to recover and when this will be achieved.
Iraqi dinar and “bite” sanctions
The report indicated that the value of the Iraqi dinar declined further against the dollar after new measures taken by the US Federal Reserve, in an attempt to blacklist many Iraqi banks that deal mainly with Iran.
He explained that these measures caused a scarcity in the dollar offered in the Iraqi market, while the official Iraqi News Agency reported that one US dollar was traded in the street at a price of 1580 dinars, compared to the central bank exchange rate of 1470 dinars.
He pointed out that the Central Bank of Iraq held the responsibility for the currency’s decline on “the adoption of mechanisms to protect the banking sector, customers and the financial system, as all foreign trade requirements are fully covered by the official price.”
And the UAE report indicated that the Central Bank of Iraq has taken several measures to help stabilize the currency, including reducing the exchange rate for travelers and ensuring the flow of dollars according to the approved official rate.
The value of the Egyptian pound
As for Egypt, the report stated that the Egyptian pound continued its decline against the dollar, as analysts expect an additional decline in the currency’s value, while Cairo seeks to meet the requirements of the International Monetary Fund regarding defining a flexible mechanism for foreign exchange, as part of an agreement in order to be able to Obtaining a loan of $3 billion.
He noted that “the Egyptian pound suffered, on January 4, its largest decline in one day against the US dollar, as it fell by 8% to 26.50 per dollar.”
The report quoted a memorandum issued by the Cairo-based “Naeem Brokerage” company, which expects further weakness of the pound by another 5%, to reach about 28 pounds to the dollar, adding that the company estimates that the pound has declined in total by 15% in this last round. from currency devaluation.
The Lebanese pound… a disturbing decline
In Lebanon, the report of “The National News” saw that this crisis-stricken country is struggling in light of the depreciation of its currency to record levels in the parallel market, which is prompting the devaluation of its currency, the lira, to 38,000 pounds per dollar on an “exchange platform.”
The report pointed out that the Central Bank of Lebanon blamed the crisis on currency speculation and dollar smuggling operations outside Lebanon.
The report added that the economic crisis has plunged many people into poverty in Lebanon, in light of the acute shortage of necessities, including clean water, electricity and medicines, while government data showed that inflation in Lebanon increased by 189.4% on an annual basis during the 11 months of 2022. Whereas, according to Fitch Solutions, Lebanon is expected to record the second highest inflation rate in the world this year after Sudan.
The report described Lebanon’s economic crisis, according to the World Bank, as one of the worst crises in modern history, while Lebanon failed to implement the necessary structural and financial reforms that would pave the way for it to receive aid worth $3 billion from the International Monetary Fund.
The Israeli shekel… frightening inflation
In Israel, the report stated that the shekel declined by about 12% against the dollar during the year 2022, while there are no indications that it may improve soon, in light of the sharply increasing inflation of 5.3% last November.
After the report pointed out that inflation causes a devaluation of the currency because it reduces the purchasing power of consumers, it quoted the Governor of the Central Bank of Israel, Amir Yaron, as saying that the shekel witnessed “great fluctuation,” especially during the last quarter of 2022.
The Turkish lira.. a continuous decline
Regarding the Turkish lira, the report of “The National News” stated that it lost more than 40% of its value against the dollar during the year 2022, however, the report considered that this constitutes an improvement compared to the 77% that the lira recorded during the year 2021, indicating that it is being Trading in pounds now at about 18.55.
On the other hand, the thorny issue relates to the fact that consumer prices rose 64.3% last December, the highest rate in more than a quarter of a century.
As for Iran, the report indicated that the riyal fell to a record level of 44,000 riyals against the dollar on December 28, which represents a decline of 22% in just one month.
He pointed out that Iran is full of political crises at home and abroad, noting that “the decline of the Iranian riyal prompted the appointment of a new head of the Central Bank as an attempt to stop the decline in the currency, as the riyal, which was traded at about 41850 on Thursday, has declined more than ten times since 2018.” “.
The report concluded, saying: “Among the factors affecting the Iranian currency are the continuation of civil unrest, the country’s continued isolation due to relations with Russia, and the diminishing hopes of reviving the 2015 nuclear deal,” from which the United States withdrew in 2018. LINK
Source: Dinar Recaps
Henig » January 6th, 2023
Nghe An Province increases local content of industrial products
06:00 | 06/01/2023
(VEN) – Nghe An is one of the chosen destinations of large international investors shifting their supply chains to Vietnam, providing businesses in the north-central province with access to new opportunities for support industry development.
The Nghe An industry and trade sector has set specific goals, aiming for an average annual growth rate of 12-13 percent in support industry production value, accounting for more than 20 percent of industrial production value by 2025 and gradually increasing in the future. The industry will also enhance investment, especially foreign direct investment (FDI), to encourage rapid domestic support industry growth.
According to a draft report on the development of support industries in Nghe An Province, by 2025, the province will aim for domestic support industry companies to account for 10-12 percent of the total number of firms and for 20-30 support industry enterprises to participate in corporate supply chains.
By 2030, the sector will attempt to achieve a localization rate of 30 to 35 percent in a number of development-prioritized industries, such as electronics, mechanical assembly, and energy, and over 45 percent in textiles. All support industry enterprises are expected to use digital technology for administration, production, and trading.
The impact of COVID-19 closures and shutdowns greatly affected suppliers of industrial components in China, the Republic of Korea, and Japan, hampering Vietnam’s domestic production. However, Vietnam’s industries are now recovering with a return of raw materials from their suppliers.
Nghe An’s processing and manufacturing industries depend greatly on imported materials, especially its key industries such as electronics, textiles, leather, and automobile manufacturing.
The study on the development of support industries in Nghe An has concluded that the industrialization process in the province remains sluggish. Specifically, labor productivity is low in comparison to other regions. In addition, the industry’s autonomy is limited because Nghe An must import the majority of input materials for large sectors, such as textiles, garments, leather and footwear, and electronics. Vietnam imports over 90 percent of its raw resources and is overly reliant on markets such as China, the Republic of Korea, and Chinese Taipei. In the global value chain, the province’s industry serves mostly as an outsourcing location for exports, with a low profit margin of only 5-10 percent.
According to Pham Van Hoa, Director of the Nghe An Department of Industry and Trade, the province intends to push the development of support industry products to service local manufacturing industries and the national market, establishing support sectors for the textile and apparel industries, wood processing and furniture manufacturing, packaging production and additives for plastic granules.
According to the Nghe An Department of Industry and Trade, the province’s industrial production index grew by 10.07 percent during the first ten months of 2022 compared to the same period in 2021. The processing and manufacturing industries were the primary growth driver.
Hoang Trinh LINK
Wind energy prices in Vietnam still higher than in other countries
09:31 | 05/12/2022
Prime Minister Phạm Minh Chinh requested relevant stakeholders to work together to bring down wind energy prices in Vietnam, which are now higher than in other countries.
During his work trip to the southern province of Bac Lieu, Prime Minister Phạm Minh Chinh said Bac Lieu is among the localities with great potential to develop renewable energy.
In the past few years, the country has issued mechanisms to encourage the development of wind energy, however, the prices of wind energy in Vietnam are higher than in the world and than energy generated from other sources. He also noted that many investors are also interested in investing in wind energy in Vietnam.
The PM stressed that it is important to review wind energy investment in Vietnam, especially the price factor, to ensure the harmony of interests between investors, the State and people.
He also requested the acceleration of the transfer of technology as well as training of human resources and the development of the renewable energy industry, including the manufacturing of such products as engines, turbines, and wind turbine blades to reduce imports and reduce the prices of electricity. Investors and the locality must also consider the circular economy model, developing wind energy along with hydrogen production, agriculture, and aquaculture farming.
During his trip, the PM also worked with key leaders of the province to discuss the socio-economic development in 2022 and the goals for the next year. He also inspected key infrastructures of Bac Lieu including the Can Tho-Ca Mau highway section that crosses the province.
He said this highway project is an important one that people are anticipating, so it must be done promptly.
He ordered relevant stakeholders to ensure the highway would be as short and convenient as possible as well as to speed up the progress of the project and avoid corruption and wrongdoings.
Can Thơ-Ca Mau highway is about 110km long, crossing five localities in the Mekong Delta region namely Can Tho City, and Hau Giang, Bạc Lieu, Kien Giang and Ca Mau provinces. It has a total investment of about VND27.5 trillion (US$1.16 billion). The project affects about 3,800 households in terms of land clearance.
Source: Dinar Recaps
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