Zig’s Place Chat and News Monday Evening 9-11-23

Butterfly   The dollar resurfaces with a UN call to amend “Brighton Woods”

It controls international transactions despite the difference in the size of economic power Published: 15:42-21 May 2023 AD .....    The Dollar Resurfaces With A UN Call To Amend “Brighton Woods”

It controls international transactions despite the difference in the size of economic power

Cairo: Sabry Najeh  Published: 15:42-21 May 2023 AD - 02 Dhul-Qi’dah 1444 AH

International calls to reduce dependence on the dollar in trade exchange between countries have increased, in the wake of global unrest (most notably: Covid-19 and the Russian war), which raised the price of the US currency to record levels, which contributed to the scarcity of its presence in emerging markets, and created the need for an alternative. Some countries began In formulating his idea.

However, reducing dependence on the US currency, which has dominated the largest proportion of the global economy for more than 75 years, may require returning to the system before dependence on the dollar.

The Brighton Woods Agreement stands out here, which was held in July 1944 in the American city of Brighton Woods, New Hampshire, in the presence of representatives of forty-four countries, to develop plans to stabilize the global financial system and encourage trade after World War II.

It was agreed at the conference to stabilize foreign currencies against the dollar, as the dollar was set at a price of $35 per ounce of gold, with the aim of establishing international financial stability that prevents the exchange of currencies between countries, and limits speculation in international currencies.

The participating countries have already agreed to maintain the value of their currency within a narrow margin against the dollar, and a similar price of gold. So that the American currency becomes a major reference currency for countries around the world. The conference submitted its plans to two international organizations: the International Monetary Fund and the World Bank.

Russia has already moved to consolidate its economic relations, through bilateral cooperation with countries, which relies primarily on the use of national currencies, to reduce dependence on the dollar, and to circumvent American sanctions. There are trade exchanges between China, the second largest economy in the world, and Russia, already in national currencies.

In addition, the need for the US dollar will decrease in light of the expansion of developing countries to sign bilateral agreements to adopt trade exchange in national currencies, to solve the crisis of the scarcity of the US currency in them, which will increase the pressure on the dollar, or rather the United States of America, to sit at the table with the effective parties and agree on a global system.  LINK

Sah   The article above is worth reading translated that butterfly posted.

The dollar resurfaces with a UN call to amend “Brighton Woods”

It controls international transactions despite the difference in the size of economic power International calls to reduce dependence on the dollar in trade exchange between countries have increased, in the wake of global unrest (most notably: Covid-19 and the Russian war), which raised the price of the US currency to record levels, which contributed to the scarcity of its presence in emerging markets, and created the need for an alternative. Some countries began In formulating his idea.

However, reducing dependence on the US currency, which has dominated the largest proportion of the global economy for more than 75 years, may require returning to the system before dependence on the dollar.

The Brighton Woods Agreement stands out here, which was held in July 1944 in the American city of Brighton Woods, New Hampshire, in the presence of representatives of forty-four countries, to develop plans to stabilize the global financial system and encourage trade after World War II. It was agreed at the conference to stabilize foreign currencies against the dollar, as the dollar was set at a price of $35 per ounce of gold, with the aim of establishing international financial stability that prevents the exchange of currencies between countries, and limits speculation in international currencies.

The participating countries have already agreed to maintain the value of their currency within a narrow margin against the dollar, and a similar price of gold. So that the American currency becomes a major reference currency for countries around the world. The conference submitted its plans to two international organizations: the International Monetary Fund and the World Bank.

Sah   The value of the dollar in gold has been adjusted more than once under the Brighton Woods Agreement. There are many countries that have named their currency the dollar, such as Canada, Australia, and New Zealand.

The dollar currently occupies the largest percentage of currencies in foreign exchange reserves held by central banks around the world, with a share of 59.80 percent, followed by the euro with a share of 19.70 percent, then the Japanese yen with 5.30 percent, followed by the British pound with 4.60 percent, and the Chinese yuan comes with a share 2.80 percent, in addition to the fact that nearly half of international loans are denominated in dollars. Looking at the contribution rates of the current economic power around the world, it is clear that the seven major industrial countries: the United States, Britain, Germany, France, Italy, Canada, and Japan, their percentage in the global gross domestic product has shrunk in 2023 to about 30 percent, over the past 30 years, compared to 50.7 percent. percent in 1980, according to International Monetary Fund data.

In addition to expectations that China and India alone will account for about 50 percent of global economic growth during the current year, according to Pierre-Olivier Gorincha, chief economist and director of the research department at the International Monetary Fund.

In light of these facts, United Nations Secretary-General António Guterres called on Sunday for amending the current global financial system, saying that the time has come to reform the Brighton Woods system in line with “the reality of today’s world. In a speech during a press conference in Hiroshima, Japan, where the G7 summit was held, Guterres said that the Brighton Woods system reflects the balance of power in 1945 and needs to be updated. He said: “The global financial architecture is outdated, dysfunctional and unfair... and has failed to perform its basic function as a

Sah   global safety net in the face of the economic shocks resulting from the Covid-19 pandemic and the Russian invasion of Ukraine. Guterres also spoke of how at the G7 summit he felt a growing realization among developing countries that not enough was being done to reform outdated institutions or “to eliminate the frustrations” of countries in the Southern Hemisphere.

This international call is highlighted in light of the rise in the dollar, which raises the prices of goods and services denominated in it, for all countries that hold other currencies, reduces gold and oil, and creates financing crises for countries that rely heavily on imports.

The international call also came in light of Russia and China's efforts to establish a new "international order" that does not necessarily depend on the US dollar as the main currency in commercial and financial exchanges, in addition to international reliance on the BRICS countries.

Russia has already moved to consolidate its economic relations, through bilateral cooperation with countries, which relies primarily on the use of national currencies, to reduce dependence on the dollar, and to circumvent American sanctions. ‘

There are trade exchanges between China, the second largest economy in the world, and Russia, already in national currencies. In addition, the need for the US dollar will decrease in light of the expansion of developing countries to sign bilateral agreements to adopt trade exchange in national currencies, to solve the crisis of the scarcity of the US currency in them,

which will increase the pressure on the dollar, or rather the United States of America, to sit at the table with the effective parties and agree on a global system. New that takes into account the current economic strength in the global economy.

Sah   butterfly Nice find in this article. Let's see how they amend the Brighton Woods agreement.

Sah   It will change the way all financial institutions in the world going forward.

Butterfly   An Iraqi movement to recover money stolen from abroad Today, Sunday, the financial advisor to the Prime Minister, Mazhar Muhammad Saleh, revealed an official government movement to recover Iraqi funds stolen from abroad.

Saleh told the official news agency, “Article 14 of the Money Recovery Law No. 7 of 2019 obligated the government, when it concludes investment or economic agreements with any country in which there is money for Iraq, to ​​include in the provisions of the Money Recovery Law, including money that escaped after the year 2003 due to operations.” Corruption and various economic and financial crimes.”

He added, "The article has come into effect, as the agreements stipulated in the aforementioned article are being followed with great care, whether through the policies and procedures of the Money Recovery Fund itself or its effective and important executive arm, which is the Money Recovery Department in the National Integrity Commission,"

 noting that "Iraq is an active member of the organization International Financial Action for the Middle East and North Africa region is a multilateral international organization that helps member states coordinate operations to combat money laundering, crime funds and terrorism in its various forms through the Anti-Money Laundering Office at the Central Bank, which is an important arm and the basis for national and international cooperation on the issue of money recovery.” .

He pointed out that "there is an ongoing official movement and efforts being carefully made to follow up and recover Iraq's stolen funds, specifically through the mechanism of the Iraqi judicial system and the foreign relations of Iraqi diplomacy, which provides means of defending our country's looted funds before the courts in the jurisdictional areas of various foreign countries."

butterfly   Saleh continued, "In addition to the effective role of Article 14 in the Recovery Fund Law, there is serious and ongoing cooperation between Iraq and the United Nations Development Program in providing legal and procedural means to recover funds through the United Nations Convention against Corruption."

He noted that "Iraq joined this year to become a member of the (Agmont Group), a group that includes 167 countries so far and works to facilitate the exchange of information on criminal proceeds, money laundering and terrorist financing at the international level by providing the Anti-Money Laundering Office with a secure communications network with countries."

The world, which contributes to monitoring the movement of funds internationally and strengthening financial investigation procedures to lead to the recovery of funds and assets.

https://economy-news.net/content.php?id=36237

butterfly   Iraq is ranked 122nd globally and ninth in the Arab world with the highest inflation rate]/b]

Iraq ranked 122nd globally and ninth in the Arab world with the highest inflation rate for the year 2022, according to CEOWORLD magazine, which specializes in statistics.

The magazine said in a report seen by Al-Iqtisad News, “Consumer prices are being distorted due to supply chain disruptions and high energy costs resulting from geopolitical tensions. As a result, inflation rates are rising in almost half of the world’s countries, with inflation rates reaching double digits or double digits.” Higher,” noting that “28 countries were not included in the table because there are no official statistics for them in the year 2022, such as Iran, Angola, and Lebanon, the latter of which inflation in the year 2021 reached about 155%.”

At the global level, “Sudan recorded first in the world in terms of inflation rates at 139%, followed by Zimbabwe at second at 105%, Turkey at third at 72%, Suriname fourth at 52%, Sri Lanka fifth at 50%, Haiti at 34%, Guinea at 31%, Moldova at 29%, and Sierra Leone at 27%.” The Lao Democratic Republic 23%, Malawi 21%, and Ukraine 20% are the highest rates in the world.”

She pointed out that "Iraq ranked 122nd globally out of 150 countries listed in the table and ranked ninth in the Arab world with the highest rate of inflation, as inflation in Iraq reached 5% in the year 2022, lower than the year 2021, in which it reached 6%, and higher than the year 2020, which was 1%."

In the Arab world, Sudan came with the highest inflation rate at the global and Arab level at 139%, followed by Egypt secondly 14%, Mauritania third 10%, then Algeria fourth 9%, Tunisia fifth 8%, then Morocco sixth 7%, and then Djibouti seventh 5 %, Qatar ranked eighth at 5%, Iraq ranked ninth, the UAE ranked tenth at 5%, and Jordan ranked 11th at 4%, according to the magazine’s report.

https://economy-news.net/content.php?id=36216

butterfly   Interesting: Al Janoub Islamic Bank provides good news to merchants and company owners regarding saving the dollar Economy- 03-02-2023 03:00 PM - Number of views: 25550 Al Janoub Islamic Bank for Investment and Finance provided good news for merchants and company owners regarding the provision of the dollar .

The bank stated in a statement that “South Bank is making an offer to merchants and company owners by providing foreign transfer services and documentary credits with a zero percent commission,” noting “the presence of a network of correspondents all over the world. ”

He added, "External transfers are at an exchange rate of 1,470 dinars to the US dollar, while documentary credits are at an exchange rate of 1,465 dinars to the US dollar. All the merchant has to do is visit its branches spread across Iraq or contact the telephone service center by calling 6009. " https://www.dijlah.tv/index.php?page=article&id=323817

Sah    butterfly butterfly That can not be good that they are exchanging at a rate of 1470 yo US dollar. I thought they were supposed to be selling at 1370.

butterfly   Sah look at the date of the article.

Sah   butterfly Still they should of been then at the rate that CBI is supposed to maintain.

butterfly   I know but they haven't used that rate since the CBI said it was 1320. It has been closing in the 1500 each day/week/month since they said

Sah   I wonder if they were one of the banks sanctioned that they can not sell the US dollar.

butterfly   I can't explain

Sah   CBI has cut out a bunch of banks to exchange if they do not sell at the same amount as on their platform.

butterfly   Here is another one: USD/IQD rate closes higher in Baghdad, Erbil 2023-09-10 09:57 Shafaq News/ The U.S. dollar (USD) exchange transactions against the Iraqi dinar (IQD) closed at a slightly higher rate in the markets of Baghdad and Erbil today, Sunday.

Shafaq News Agency correspondent said that the USD recorded a closure rate of 154,100 IQD to 100 in al-Kifah and al-Harithiya Central Exchanges, 100 IQD above the opening rate this morning.

The selling and buying rates of the USD in Baghdad's parallel markets settled at 155,000 and 153,000 IQD to 100, respectively.

In the capital city of the Kurdistan region, USD selling and buying rates stood at 154,850 and 154,750 IQD to 100, respectively. https://shafaq.com/en/Economy/USD-IQD-rate-closes-higher-in-Baghdad-Erbil-4-4

butterfly   I have not seen any article relating to the 1320 since the CBI put out that rate.

Sah   If they would play by the book we would get there faster to the end result.

butterfly

Saudi Arabia expresses its desire to increase the volume of economic exchange with Iraq Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani stressed, on Monday, the importance of strengthening and expanding the horizons of bilateral cooperation relations between Baghdad and Riyadh.

A statement by the ministry said, “Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul Ghani, received today, Monday, a delegation of the Saudi Shura Council, headed by Ibrahim Muhammad Al-Qannas, Chairman of the Iraqi-Saudi Friendship Committee in the Council.”

The statement added that Abdul Ghani "welcomed the guest delegation, expressing the depth of brotherly ties between the two countries, and the mutual keenness to strengthen and expand the horizons of bilateral cooperation relations in all fields, including economics, oil and energy."

For its part, the Saudi delegation affirmed “the Kingdom’s keenness to strengthen and strengthen the bonds of relations between the two countries,” expressing its hope for “cooperation in implementing projects and investment opportunities and seeking to increase the volume of economic exchange between the two countries.” https://economy-news.net/content.php?id=36271

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