“Tidbits From TNT” Thursday 5-9-2024
TNT:
Tishwash: JP Morgan forecasts an increase in the oil capacity of Iraq and other countries in 2025
JP Morgan believes that there are three main countries in the oil alliance that deserve to upgrade their supplies for the year 2025.
Natasha Caneva, an analyst at JP Morgan, said in a recent report that the United Arab Emirates, Kazakhstan and Iraq intend to increase their total capacity by more than 300,000 barrels per day starting next year, but the planned expansions may represent risks to the cohesion of the alliance and oil prices in general. .
Caneva said: “The main issue for OPEC lies in 2025. Even if the alliance keeps supply restrictions as they are this year, it “does not address the imbalances in 2025.”
The price of Brent crude is expected to remain in the range of $75-90 per barrel in most scenarios, with average prices reaching $82 per barrel in 2025, according to Goldman Sachs. link
Tishwash: Sudanese announces the signing of an agreement with Japan to finance small and medium enterprises in Iraq
Sudanese announces the signing of an agreement with Japan to finance small and medium enterprises in Iraq
The Prime Minister, Mr. Muhammad Shiaa Al-Sudani, announced this morning, Thursday, the signing of an agreement with Japan to finance small and medium enterprises, amounting to $300 million, which will contribute to revitalizing and establishing the national industry.
This morning, Al-Sudani launched work on the Al-Ittihad Mills Project, in the city of Al-Madhatiya in Babil Governorate, one of the private sector projects, to produce zero-grade flour locally, with a production capacity of one million tons.
He also opened the sugar factory expansion project at Al-Ittihad Company, after adding new production lines for sugar production, raising the factory’s production capacity from (4,200) tons per day to (6,000) tons per day.
He also opened a vegetable oil extraction plant, a plant feed production plant, and a premix plant in the company.
Al-Sudani pointed out, in his speech, that this development is a success story in the private sector, stressing the unlimited support from the government. For the sake of more job opportunities, as it currently accommodates approximately 4,000 opportunities within the company’s activities, in addition to increasing production and providing its surplus in the future for export outside Iraq.
He called on businessmen and private sector companies to take advantage of the investment opportunities offered and the sovereign guarantees provided by the state through the three-year budget law.
Al-Ittihad Food Industries Company Limited in Babil Governorate is one of the largest industrial companies in Iraq, and includes six factories: Sugar refining plant, vegetable oil refining plant, vegetable feed production plant, soybean meal extraction plant, premix production plant, and yellow corn crushing and drying plant. link
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Cutebwoy: NY Times article from 1991 reporting the revaluation of the Kuwaiti dinar
Jul 19, 2013
When Iraq invaded Kuwait in August of 1990, the value of the Kuwaiti dinar dropped to about 5 cents. In other words, it took 20 Kuwaiti dinars to buy one dollar.
In February of 1991 Iraq was expelled from Kuwait, and a month later, the banks revalued their currency to $3.47, the highest valued currency in the world. When this occurred, the New York Times reported the event on March 25, 1991.
It still has no water and little electricity or food, but Kuwait revived its banking system today, introducing a new currency.
Banks reopened for the first time since Iraqi occupation forces shut them down in December. Thousands of people lined up to exchange their old Kuwaiti dinars for crisp new ones and to withdraw a limited amount of money….
All other old dinars can be exchanged for new ones on a one-to-one rate until May 7, when the old dinars become invalid. The new official exchange rate is 3.47 American dollars for one new Kuwaiti dinar.
At the same time, the UN put Iraq under trade sanctions, crashing the value of the Iraqi dinar (IQD) from $3.22 to about 4000 to the dollar. Their currency could only be spent in Iraq itself, and people had to carry around wads of 25,000 dinar notes to buy groceries.
Then in 2003 coalition forces invaded Iraq and overthrew Saddam Hussein. By 2004 we gave them a new currency without Saddam’s picture on it. The value soon doubled and went up to 2000 to the dollar. A few years ago the Central Bank of Iraq managed to stabilize the value at 1166 per dollar.
On June 27, 2013 the UN removed Iraq from Chapter VII sanctions, allowing Iraq to regain control of close to $80 Billion in frozen funds that had been sitting in western banks since 1990. This also allowed Iraq to be reinstated on the world’s banking network, as soon as they are ready. At the same time many expect to see the IQD revalued at or near its former position
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