Iraq’s Rafidain Bank Capitalizes on Rising Oil Prices with Digital Dollar Sales, 30 OCT

 Iraq’s Rafidain Bank Capitalizes on Rising Oil Prices with Digital Dollar Sales

In the city of Baghdad, where the echoes of war are gradually being replaced by the hum of economic activities, Rafidain Bank, one of Iraq’s largest financial institutions, has set a new course in a bid to capitalize on the rising tide of a resurgent economy.

A Strategic Pivot

Rafidain Bank announced it would sell $100 in electronic form to travelers at the rate of 132,000 dinars. The bank has already begun receiving applications through the online form on its website. This strategic move comes at a time when the price of crude oil in the United States is at its highest level in nearly two years, a development that could potentially reflect positively on the bank’s profitability.

The Central Bank of Iraq, too, has reported a significant surge in its sale of hard currency to the US dollar. In the past week alone, the bank sold over $996 million, with the highest sales recorded on Wednesday. A large chunk of these sales came from foreign remittances, indicating a rise in cash and transfers abroad to finance foreign trade.

Impacts Beyond Borders

These developments have not only had an impact on the domestic front but also on the global stage. The escalating price of oil due to the expansion of conflict in the Middle East has caused a ripple effect in the international market. Analysts from Goldman Sachs predict that the price of Brent crude will reach $95 per barrel in the first quarter of 2024, with the decline in Iranian exports potentially pushing prices even higher.

In the midst of this, the US’s decision to ease sanctions on Venezuelan oil has also caused ripples in the global oil market. Energy experts predict a minimal impact on global oil markets following this decision. Venezuelan oil production is projected to grow by 200,000 barrels per day in the short term and 400,000 barrels per day by the end of summer 2024. The easing of sanctions is part of a political deal with the Venezuelan government to hold fair elections in 2024.

Global Oil Market Dynamics

These shifts in the global oil market have implications for the Kurdistan region in Iraq. Increasing Venezuelan oil production could potentially ease the global medium sour oil market, especially if exports from the Kurdistan region remain outside the market. However, the impact of potential production increases from Venezuela on global oil markets is expected to be limited and slow.

Furthermore, the easing of US sanctions on Venezuelan oil could also affect Canadian oil exports to the United States. American refineries in the Gulf of Mexico region fear that an increase in US imports of Venezuelan oil may negatively impact Canadian oil exports and lead to an increase in Canadian oil prices.

In conclusion, these shifts in the Iraqi and global oil markets, as well as the easing of sanctions on Venezuelan oil, have far-reaching implications for the profitability and competitiveness of Iraqi banks, the exchange rate between the US dollar and Iraqi dinar, and the global distribution of oil supplies.

https://bnn.network/tech/iraqs-rafidain-bank-capitalizes-on-rising-oil-prices-with-digital-dollar-sales/