Friday, September 8, 2023
"STATUS OF THE RV" BY DINAR IRAQ & DONG VIETNAM, 8 SEPT
STATUS OF THE RV
Automated teller machine... The Middle East is a meeting point for foreign investment capital, 8 SEPT
Automated teller machine... The Middle East is a meeting point for foreign investment capital
An American report described, on Thursday, sovereign wealth funds in the Middle East as an "automated teller machine" for those looking for funds for major investments, referring to the large amount of liquidity that these institutions possess.
The American newspaper, The Wall Street Journal, indicated that “large companies looking for capital have made these funds their destination, while the regimes of the countries of the region are seeking a greater role at the global level, and they can play a greater role, especially in light of the withdrawal of major Western financiers from many countries.” investments, especially with high interest rates
According to the newspaper, major mergers and acquisitions witnessed an increase in interest from major funds, the most recent of which was the purchase of the Abu Dhabi fund of the investment management company "Fortress" for more than two billion dollars, while the Saudi fund purchased the aviation unit of Standard Chartered by about $ 700 million.
According to the American newspaper, companies and funds supervised by the National Security Adviser in Abu Dhabi, Sheikh Tahnoun bin Zayed Al Nahyan, recently moved to buy Standard Chartered Bank and Lazard Investment Bank.
It concluded deals for a British health company worth more than $ 1.2 billion, in addition to acquiring part of a giant Colombian company working in the field of food products, the newspaper says.And the dominance of these funds in the acquisitions market appears, as the securities obligations of the Saudi Public Investment Fund increased to $ 56 billion in 2022, up from $ 33 billion in 2021, while the securities obligations of the Abu Dhabi Mubadala Fund doubled to $ 18 billion in 2022.
Peter Jaderstein, founder of the investment company "Good Advisor", likened what is happening in the Middle East to "the gold rush that occurred in the United States in previous years," according to what he told the newspaper.
The "Wall Street Journal" quoted investment fund managers as saying: "They often wait in front of their competitors in the waiting rooms of sovereign wealth funds."
They added that "Managers from Silicon Valley and New York are almost always present in the halls of the Four Seasons Hotel and other luxury hotels in Abu Dhabi."
The newspaper pointed out that the Riyadh conference, which will be held next month and is known as "Davos in the Desert", is likely to be a magnet for money hunters, unlike what happened about 5 years ago when it witnessed a wave of withdrawals by executives after the killing of journalist Jamal Khashoggi in his country's consulate.
Hundreds of CEOs and leaders of the financial sector are expected to arrive in Riyadh to attend the conference, in which Saudi Arabia is trying to highlight the kingdom's geopolitical strength, according to a previous report by Agence France-Presse.
An optimistic vision.. The demand for the dollar will decrease and it may disappear from the informal market, 8 SEPT
An optimistic vision.. The demand for the dollar will decrease and it may disappear from the informal market
"RV UPDATE" BY MNT GOAT, 8 SEPT
Mnt Goat
I believe there is nothing more for the CBI to do but to issue the lower denominations and them to watch for inflation over a period, as their plan states they will do, and if all goes well, they liberate their currency to the global markets as in FOREX. I thought we needed the Oil and Gas Law passed first? Yes, I still believe they do and we might have to wait for it.
But there is a chance that based on how fast the economy is growing they may just put that on the back burner and rethink it (remember that Dr Shababi in 2012-2013 did not have this law passed, yet he was moving forward). We must remember the past.
Iraq records the highest oil revenues since the start of 2023 which is also 2/3 more oil pumped than in 1991. The dinar rate in 1991 was over USD $3. So why is the currency still being under valued? Yes, it is important to get out of a “rentier economy” based solely on oil and this will also create yet more wealth. But what about right now...I am talking about today!
Doesn’t the oil wealth mean anything? Doesn’t the 113 billion in reserves and 132 tons of gold mean anything? Not to mention all the minerals and agricultural products being exported. So why still at 1/6 of a penny?
Some intel gurus want you to believe the “official” dinar rate is now set at 1130 and the CBI has not yet changed their site. This is not true, however I believe this is their next target rate and maybe the last rate change prior to moving ahead once again aggressively with the plan for the reinstatement. Seems this dollar issue has stalled their plan for now but they will overcome it as they always do but it takes time.
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