TNT – “Tidbits From TNT” Tuesday 10-31-2023

Tishwash:  Iraq and Iran are discussing using their currencies in trade and financial transfers

Today, Tuesday, Prime Minister Muhammad Shiaa Al-Sudani received the Minister of Industry, Mines and Trade of the Islamic Republic of Iran, Abbas Aliabadi, and discussed economic relations between the two countries, and ways to enhance them and strengthen exchange and partnership at various levels and fields.

Payne stated to the Prime Minister’s Office, a copy of which {Al-Furat News} received, that Al-Sudani indicated during the meeting “Iraq’s readiness to open horizons for bilateral cooperation in the field of petrochemical and fertilizer industries, because of their strong impact in promoting internal development.”

For his part, the Iranian Minister conveyed the greetings of the President of the Islamic Republic of Iran, Ebrahim Raisi, and his emphasis on the necessity of proceeding with fruitful economic integration projects, in the face of the economic challenges witnessed by the region and the world.

The meeting also witnessed discussion of the possibility of moving towards using the national currencies of the two countries in trade exchange and bilateral financial transfers, in order to have more flexibility in dealing, for the benefit of the two countries.   link

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Tishwash:  A secure future for faster and easier financial transfers electronically.. The Central Bank officially launches the “Visa Direct” service

 Report…Youssef Salman… The Central Bank of Iraq announced the launch of the “Visa Direct” service to facilitate financial transfers, in coordination with the international company “Visa” and cooperation with the First Bank of Iraq, which is the first digital bank in Iraq.

The Visa Direct service is a direct financial transfer service for bank customers in Iraq. It was launched digitally, for the first time, through a special application. Every customer in the First Iraq Bank (FIB) can transfer five million dinars daily, and 13 million dinars monthly. Calculated at the official exchange rate.

Counselor Mazhar Muhammad Salih read the speech of the Prime Minister, Muhammad Shia al-Sudani, on his behalf during the official announcement of the launch of the service in the capital, Baghdad, by saying that “the ministerial program attaches importance to developing digital payment systems in our country.”

He added, “Iraq urgently needs to prepare and prepare all stakeholders in the electronic payment system to ensure full adoption of digital technology,” noting that “some show reluctance to use electronic payment technology, in addition to the difficulties faced by technological service providers in displaying stable products.” And effective.”

The government advisor stressed, “According to the vision of the government program, there has become a need to make concerted efforts more urgent than ever before. What is necessary is to follow a strategic approach that takes a comprehensive view of the system and sustainable profitability while imagining the appropriate roles for all stakeholders, and this is what we are working on at the present time.” From the Iraqi Payments Council in the Central Bank of Iraq and the electronic payment systems development team in the Prime Minister’s Office.”

In turn, the Governor of the Central Bank, Ali Al-Alaq, stressed that “the shift from a cash economy to a digital economy is considered a major task in a country that has lag behind in keeping pace with developments in the field of financial technologies.”

He added, “The world is undergoing very rapid changes, and the financial and banking sector is keeping pace and following these developments and is trying to invest in them more than the rest of the other sectors,” indicating that “the financial and banking sector is based on speed, accuracy, and costs, and financial purification is what can provide the financial sector with these.” Advantages.

He continued to say, “We are now embarking on a large program and a broad and comprehensive strategy, with direct coordination and support from Prime Minister Mohamed Shiaa Al-Sudani, who accompanies this aspect with us in continuous meetings,” adding that “the Visa Direct tool came at its right time, and we need more tools that facilitate operations.” Transfer, especially simple transfers at the citizen level or transfers that relate to some simple aspects.”

He explained, “This tool facilitates the demand for foreign currencies, and we are trying to expand access to these currencies in easy ways, and this tool will provide that,” stressing that “the issue of foreign transfers, selling the dollar, and the exchange rate are fundamentally linked to employing as many electronic tools as possible.”

She added, “Our presence in Iraq is based on important foundations, which are the Iraqi youth and the government that has the courage to turn the scales and go back to building the digital infrastructure, which will allow the development of the country and the important financial and banking field of the Iraqi economy.” She also appreciated the Iraqi government’s cooperation and support for the presence of Visa and the expansion of its work in Iraq./End 5    link

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CandyKisses:  World Bank warns of oil prices rising above $150

Economy News _ Baghdad   2023/10/31 – 10:44 AM

The World Bank fears that global oil prices will ignite if the conflict in the Middle East expands, with Israel insisting on launching more attacks on the Gaza Strip and failing to respond to UN calls for a ceasefire and appeals by international humanitarian and human rights institutions to stop the 23-day war.
The report warned of the danger of the escalation of the recent conflict in the Middle East and its potential effects on the global economy, energy prices and commodities.

The World Bank’s Commodity Markets Outlook charted three possible scenarios in which oil prices will rise to varying degrees depending on the degree of escalation of the conflict and its effects on regional and global oil supplies, according to the Energy Research Unit.

Although the global economy is much better off than it was in the seventies of the 20th century, enabling it to cope with a major shock in crude prices, the conflict in the Middle East and Israel’s continued attacks on the Gaza Strip, as well as the turmoil caused by the Russian invasion of Ukraine, could push global commodity markets into uncertainty.

Short-term
oil price outlook The impact of the conflict on global commodity markets has so far been limited, with oil prices rising by 6 percent since the start of the Gaza war on 7 October 2023, while prices for agricultural commodities and most metals and other commodities have not had a clear impact.

The World Bank report prepared a preliminary assessment of the potential short-term repercussions of the conflict in the Middle East on commodity markets.
The World Bank’s baseline forecasts that average oil prices will rise to $90 per barrel in the current quarter of 2023, before falling to $81 in 2024, as global economic growth slows.

Commodity prices are expected to fall by 4.1 percent next year, accompanied by lower agricultural commodity prices as supplies increase, and metal prices falling by 5 percent, before stabilizing in 2025.

3 scenarios for oil prices The World Bank expects commodity prices to be affected quickly in the event of an escalation of the conflict in the Middle East, which threatens the price of oil with varying rises, according to 3 possible scenarios for the interruption of oil
supplies based on previous historical experiences that the world has gone through since the seventies of the last century.

The effects of each scenario depend on the degree of oil supply shortages or disruptions and the subsequent effects on crude prices, as global oil supplies are expected to fall in the “limited disruption or disruption” scenario, to between 500,2011 and <> million barrels per day, equivalent to the decline witnessed globally during the Libyan civil war in <>.

Based on this scenario, oil prices could rise between 3% and 13% to range from $93 to $102 per barrel, compared to the current quarter’s average price near $87 per barrel.

In a “moderate turbulence” scenario, global oil supplies could shrink by 3 million to 5 million barrels per day, equivalent to the magnitude of the decline during the 2003 U.S. invasion of Iraq.

If this scenario were to occur, global oil prices would rise between 21% and 35%, ranging from $109 to $121 per barrel, according to detailed estimates by the Energy Research Unit from the World Bank report.

The most dangerous and final scenario remains the “Great Turmoil”, the potential impact of which may be equivalent to that of the Arab oil embargo during the October 1973 war between Egypt, Syria and Israel.

This scenario predicts a sharp decline in global oil supplies between 6 million and 8 million barrels per day, which could lead to a rise in oil prices between 56% and 75%, to range between $ 140 and $ 157 per barrel