Oil Continues Its Losses As Commodity Markets Are Affected By The Rise Of The Dollar
Monday 24, June 2024 08:38 | Economical Number of readings: 148
Baghdad / NINA / Oil prices fell in early Asian transactions today, Monday, for the second session in a row, affected by the rise of the dollar after renewed fears of the continuation of high interest rates for a longer period and the lack of risk appetite among investors.
By dawn today, Brent crude futures fell 40 cents, or 0.5%, to $84.84 per barrel, after falling 0.6% upon settlement on Friday. West Texas Intermediate crude futures also fell 39 cents, or 0.5%, to $80.34 per barrel. The rise of the dollar raises the cost of purchasing oil denominated in the US currency for holders of other currencies.
But crude contracts rose by about 3% last week due to indications of increased demand for oil products in the United States, the world’s largest consumer, as well as the continued implementation of production cuts in the OPEC+ group.
Oil prices received support from geopolitical risks in the Middle East due to the war in the Gaza Strip, as well as the intensification of Ukrainian drone attacks on Russian oil refineries.
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The Dollar Rises Again Against The Iraqi Dinar After Declining For Two Consecutive Days
Economy |Today Baghdad today – Baghdad Today, Monday (June 24, 2024), the dollar exchange rates recorded a slight increase against the Iraqi dinar on the main stock exchange in the capital, Baghdad .
The “Baghdad Today” correspondent said, “The dollar prices on the Al-Kifah and Al-Harithiya stock exchanges recorded 147,100 dinars for every 100 dollars.”
He added, “Prices in banking shops in local markets in Baghdad also recorded an increase, as the selling price reached 148,000 dinars, while the purchase price reached 146,750 dinars for every 100 dollars.” LINK
The 2024 Budget Is Safe With Government Controls
Iraq 06/24/2024 The Budget Department of the Ministry of Finance called on all ministries, governorates, and entities not affiliated with a ministry, to send their authorized representatives for the purpose of receiving estimates of current expenditures, revenues, and investment projects for the current year, approved by the House of Representatives, and this is the first time that general budget tables have been approved and not a law.
Budget, where the government set a general budget for three years (2023, 2024, 2025).
There has been much talk among specialists about the budget deficit, which some have estimated at 25 percent, while the government seems confident in its calculations and is constantly calling for reassurance.
The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Saleh, on specific mechanisms to fill the supposed deficit.
Saleh told Al-Sabah: “There are various objective factors that public finances depend on in the event of a real emergency deficit during the remaining six months of spending of the current fiscal year, which is known as limited resort to short-term loans or bridge loans in the terminology.”
He explained, “The general budget law in force allows borrowing with treasury bonds or transfers from the internal banking market, in addition to controlling operational spending priorities, which is what is called financial discipline, which tends towards preferring some necessary operational expenses over others according to priorities,” indicating that “this comes To provide sufficient financing for the committed urban projects without faltering or stopping.”
Saleh noted that “the policy of financial discipline adopted by the fiscal policy has become more restrictive in collecting government revenues and in accordance with strict oversight characterized by speed and precision,” and stated that “it is no secret that there are funds that were not spent from the previous fiscal year’s budget and were recycled, which provides a facilitating, compensatory climate.” In the flow of cash revenues, especially in meeting part of the basic and development spending needs in the current year’s budget.”
He pointed out, “Despite the above, oil markets are still in booming demand and their prices are higher at a rate of change of (positive 15 percent) than what is planned for the price of a barrel of crude oil in Federal Budget Law No. 13 of 2023 (the tripartite budget), which is $70 per barrel.” “One,” he stressed, “this in itself is a positive element in covering necessary spending, and leads to a continuous reduction in the hypothetical or planned deficit gap.”
In this context, economic affairs researcher, Nabil Jabbar Al-Tamimi, stated that the ceiling on government spending and revenues is restricted, expecting that public spending will not exceed the available amounts.
Al-Tamimi told “Al-Sabah”: “The general budget is numbers, tables, and hypothetical estimates for revenues and spending, and in general, the government has set a high ceiling for revenues and spending, and indicated that a large deficit could occur in the issue of revenues to cover spending.” He added, “The government has put in place a set of plans.” To cover the budget deficit, including borrowing and selling bonds.
He continued, “The government will not spend more than the expected revenues and will not be able to implement the budget in full technically and financially, and spending at the end of the year will not exceed 150 trillion dinars.” He stressed that “this number is the amount of revenue achieved with a small deficit,” indicating that “the government will not You can implement the budget in full and will remain hostage to the funds collected, which will be spent according to the available ceiling.”
An Economist Expects The Dollar Exchange Rate To Approach The 140,000 Threshold
Economy Information / Baghdad..Today, Monday, the economic expert, Nabil Al-Ali, expected a decline in the exchange rates of the US dollar against the Iraqi dinar during the coming period.
Al-Ali told Al-Maaloma Agency, “There is a possibility that the exchange rate of the dollar against the dinar will reach 142 thousand in the coming days if the Central Bank of Iraq’s sales of foreign currency continue to increase.”
He added, “The increase in the Central Bank of Iraq’s sales of dollars through the currency auction will contribute to reducing exchange rates, even if slightly, without returning to the threshold of 150,000 or more.”
Al-Ali pointed out that “exchange rates recorded a relative decline at the beginning of this week.”
America worked to destroy the Iraqi currency by imposing sanctions on private banks and banning the dollar under many pretexts, which led, in one way or another, to a severe financial crisis in the local markets. LINK;
Provoking Thoughts and Points To Ponder On Adversity
Trouble will rain on those who are already wet. – Anonymous
They say a reasonable amount o’ fleas is good for a dog – it keeps him from broodin’ over bein’ a dog mebbe. – Edward Noyes Westcott
There is nothing the body suffers which the soul may not profit by. – George Meredith
The burden is equal to the horse’s strength. – The Talmud
Nothing befalls a man except what is in his nature to endure. – Marcus Aurelius
I am escaped by the skin of my teeth. – Bible
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