Article: "Zain Cash relaunches the “Western Union” service"
Quote: "In light of the rapid development in the world of financial transfers and a renewal of the company’s commitment to providing safe and reliable services to its customers, Zain Cash has relaunched the Western Union service after updating and developing it, "
Article: "Government source: Starting to implement the banking arrangements agreement with Türkiye”
Quote: "The Central Bank has reinforced tens of millions of euros as an initial payment to cover retailers’ imports from Turkey."
Oil Price Plunge: A Boon or Bane for the Global Economy?
Oil prices have plummeted to a five-month low, a development not driven by economic fragility but a record oil supply, predominantly from the United States. This trend is stirring discussions among economists and analysts on its potential impact on the global economy. The world’s oil consumption, buoyed by the US’s expansion and China’s economic rebound, is at a peak of approximately 102.5 million barrels per day, according to Sankey Research. Saudi Arabia’s decision to reduce production, ironically, intensifies the oversupply, causing the OPEC leader to cede market share to countries such as the US and Iran.
A Boon for Corporate Costs and Consumers
The slide in oil prices is perceived as a positive shift for corporate expenses, with expectations of decreased shipping and other fuel-related costs. For American consumers, the average gasoline price has dipped to $3.20 per gallon — the lowest since December 30 — potentially amplifying their spending power. The reduced fuel costs also have political implications in the US, particularly as the country nears the 2024 election.
Falling Oil Prices and the ‘Goldilocks Narrative’
Analysts suggest that the ongoing trend of decreasing oil prices contributes to a ‘Goldilocks narrative’ that anticipates a relaxation of inflationary pressures. This disinflationary trend could lead to consumer price stabilization in the forthcoming year. If inflation rates recede to around 2% in 2024, it is believed that the Federal Reserve may have the chance to lower interest rates aggressively, even if the economy does not exhibit significant weakness, potentially leading to a soft landing scenario.
The OPEC Conundrum
Last week, OPEC+ announced extensions to voluntary production cuts for early 2024. The oil market in 2023 has been swayed by the competing forces of suppressed macroeconomic demand and OPEC’s strategic production cuts intended to bolster prices. While previous measures witnessed Brent Crude futures nearing the $100 mark in late September, a subsequent 20% price drop over two months indicates a more intricate scenario, with OPEC+’s recent announcement seemingly incapable of reversing the downward trend. Though countries like Saudi Arabia, Russia, the UAE, and Iraq have pledged substantial output reductions, skepticism persists about the practical implementation of these cuts, especially by nations heavily reliant on oil and gas exports like Angola.
They...have to have the dinar stabilized within the country and within the 2% rule mandated by the IMF in order to then accept IMF article VIII and begin to float the dinar which would raise its value based on supply and demand. All of these processes and or steps required time.
Nader From The Mid East
Question "Can you talk about the steps involved in cashing in dinars?" When exchange time comes we're going to have to go to three things - Redemption center, 1-800# or the army base. :)
[Nader is clearly joking about these three things]...People are telling them that. That's wrong. The only thing you can do to change your money, walk to your bank, if they accept it, or go through exchange offices. There's no redemption centers, no army bases, there is no 1-800#s, nothing that way. [NOTE: Gurus disagree on the potential exchange procedures. Stay tuned to Dinar Guru as this important subject unfolds and become clear.]
Iraq Affirms Support for OPEC+ Agreement, Aims to Stabilize Global Oil Market
Renewing its commitment to the OPEC+ agreement, Iraq continues to support the collective strategy of regulating oil output to maintain balance and stability in the global oil market. The commitment comes as a voluntary contribution to managing the supply and demand dynamics of the oil market, control the fluctuation of global oil prices, and ensure the benefit of both producers and consumers internationally.
Iraq’s Continued Support for the OPEC+ Agreement
Iraq’s Oil Minister, Hayan Abdel-Ghani, affirmed the country’s dedication to the OPEC+ agreement and its commitment to voluntary oil production cuts. This declaration, as reported by the Iraqi state news agency (INA), is part of Iraq’s concerted efforts to achieve oil market balance and stability. The OPEC+ agreement, an alliance of oil-producing nations, aims to regulate oil output to manage market dynamics and influence global oil prices.
The Impact on Global Oil Market
As oil prices regained some ground after a six-month low, concerns remain about sluggish demand and economic slowdowns in the US and China. By renewing its commitment to the OPEC+ agreement, Iraq demonstrates its dedication to cooperative strategies designed to maintain market equilibrium and prevent excessive volatility. This initiative is a testament to Iraq’s role as a responsible member of the global energy community, willing to adjust its oil production in line with agreed-upon international strategies for the broader economic environment’s benefit.
Looking Forward
With this renewed commitment, Iraq continues to fortify its position in the global oil market. It underpins the importance of cooperative strategies and collective efforts to mitigate the impacts of economic slowdowns and maintain stability in the oil market. As the world navigates economic uncertainties, Iraq’s support for the OPEC+ agreement is a beacon of dedication to the broader economic environment and the global energy community.
Russia and Vietnam Quadruple Trade Settlements in National Currencies
Trade settlements between Russia and Vietnam, conducted in their respective national currencies, the ruble and the dong, have seen an unprecedented increase in 2023, quadrupling in volume. This significant leap was revealed by Olga Basha, the head of international settlements at VTB bank, who shared this information ahead of the Russia Calling 2023 investment forum.
Rise of National Currencies in Trade Settlements
The shift towards national currencies for cross-border trade, moving away from the dominant US dollar, commenced in 2022. This global trend intensified particularly after sanctions related to the conflict in Ukraine led to Russia being disconnected from Western financial systems and the freezing of its foreign reserves.
VTB Bank: Facilitating Ruble-Dong Transactions
VTB, Russia’s second-largest bank, plays a pivotal role in these burgeoning trade settlements, acting as a market maker in Vietnam. Payments for the ruble-dong currency pair are being processed through a joint bank, indicating a shift towards greater financial independence and interdependence between the two countries.
From China to India: A Global Trend
This trend is not confined to Russia and Vietnam. VTB Bank has also noted an increase in the use of national currencies for transactions across its international subsidiaries and branches. Operations in India and China, as well as throughout the Commonwealth of Independent States, are increasingly turning to national currencies, reinforcing this shift away from the US dollar in cross-border trade.