Post From Wealthwatch.world Chat Room 9-25-15
Wealthwatch Member Chat 9-25-15 Part 1 of 2
Donnie: Saudi Arabia, world’s largest oil exporter, has pegged the riyal at 3.75 to the dollar while the United Arab Emirates’ dirham is fixed at a rate of 3.6725 since 1997.
Donnie: Fitch rates Saudi Arabia at AA but revised its outlook to negative at the end of August, citing lower oil prices and a spending increase associated with the accession of a new king .
Donnie: The negative outlook signalled a more than 50 per cent chance of a downgrade over the next two years, Gamble added. “(The main reason) would be due to inadequate fiscal policy response that would erode their sovereign buffers.”
Data published late in August showed that the world’s largest oil exporter has been drawing down reserves to cover the deficit, though the speed of decline has slowed in July since the government began issuing domestic debt to cover part of a budget deficit.
Donnie: Gulf countries’ currency pegs to the dollar are under pressure from low oil prices and a stronger dollar but there is no chance of them being abolished, ratings agency Fitch said on Tuesday.
Oil exporters in the region including Saudi Arabia and the United Arab Emirates have shackled their currencies to the dollar in longstanding arrangements that made sense when commodity prices were high and the dollar was weak.
“There is some pressure on exchange rate pegs in the region … (but) it’s not going to happen. I really don’t see any change for these exchange rate pegs,” said Paul Gamble, senior director at Fitch Ratings, adding that abolishing the pegs would be a political rather than an economic decision.
Donnie: Currency Troubles Pile on the Misery for Iraq
Lauren305: ‹@Donnie› someone's math is bacward. 1 Saudi Arabia Riyal is equal to 27 cents USD.... not the way it's posted in that article.
Lauren305: ‹@Donnie› same goes for the UAE Dirham.
Lauren305: If I'm mistaken, please correct me
newbieDA: ‹@Donnie› that is just crazy, wow and Iraq is only .0008
Donnie: 17 Sep 2015 23:15 UTC - 24 Sep 2015 23:24 UTC USD/SAR close:3.75045 low:3.74770 high:3.75450
[07:27:06 PM] Donnie: www.xe.com/currencycharts...
newbieDA: I just dont understand that, that is just crazy
Donnie: 17 Sep 2015 23:15 UTC - 24 Sep 2015 23:26 UTC USD/IQD close:1187.07043 low:1133.76114 high:1188.00000
Lauren305: ‹@newbieDA› that means, one of their currency is about 25 cents.... that is low.... so $1 buys you nearly 4 of theirs.... whereas you need about $4 usd to buy just 1 KWD
Donnie: 17 Sep 2015 23:15 UTC - 24 Sep 2015 23:26 UTC USD/IRR close:29970.02859 low:29603.31557 high:30302.91991
Donnie: 17 Sep 2015 23:15 UTC - 24 Sep 2015 23:27 UTC USD/KWD close:0.30245 low:0.30100 high:0.30497
Donnie: USD per 1 KWD 17 Sep 2015 23:15 UTC - 24 Sep 2015 23:28 UTC KWD/USD close:3.30633 low:3.27896 high:3.32226
Donnie: $3.30 per 1 KWD
OOTW: LOOK AT THIS FROM JUST A MONTH AGO OOTW: gulfbusiness.com/2015/08/...
OOTW: The kingdom is expected to achieve economic growth in 2015 of 3 per cent By Reuters August 25, 2015 Share on emailShare on printShare on facebookShare on twitterShare on linkedinShare on google_plusone_share
Pressure on the Saudi Arabian riyal in the currency forwards market eased on Tuesday after a senior Saudi central bank official said the kingdom was committed to keeping the riyal pegged to the U.S. dollar.
“On this occasion we would like to confirm that SAMA is committed to the policy of pegging the Saudi riyal with the American dollar,” Ahmed Abdulkarim Alkholifey, deputy governor for research and international affairs at the Saudi Arabian Monetary Agency, told Al Arabiya television.
He said the central bank was monitoring the forwards market situation, and that both it and independent organisations, which he did not name, believed the riyal’s peg of 3.75 to the dollar served the Saudi economy well.
Saudi central bank officials rarely speak in public and Alkholifey’s remarks may have been designed to ease market jitters about the peg, which had increased in the last few days as sliding oil prices hurt the export revenues of the world’s top oil exporter.
One-year dollar/riyal forwards, which had risen to 12-year highs as banks hedged against the risk of riyal devaluation, dropped as low as 200 basis points after Alkholifey spoke, from the previous day’s close of 295.
They were also pulled down by a 7.4 per cent rebound in the Saudi stock market in response to firmer global bourses and oil prices. Alkholifey also said Saudi Arabia’s economy was expected to grow 3 per cent this year. In a report earlier this month after annual consultations with Saudi authorities, the International Monetary Fund predicted 2.8 per cent.
chattels: [Baghdad-where] attacked the leader of a coalition of law Nuri al-Maliki, Saudi Arabia Hajj because of repeated incidents and the death of hundreds of pilgrims. chattels: www.alliraqnews.com/modul...
whitelions: Maliki attacked Saudi Arabia for Mona incident and calls for the withdrawal of the pilgrimage, including administration 9/24/2015 0 Comments Picture Attacked the leader of a coalition of state law, Nuri al-Maliki, Saudi Arabia Hajj because of repeated incidents and the death of hundreds of pilgrims.
Maliki said in a statement received by the agency all of Iraq [where] a copy of it, "followed severe pain catastrophe and the death of hundreds of visitors to the House of God this morning while carrying out their rituals of the stoning ritual in Mina, just days after the disaster, the fall of the lever on the pilgrims in the Holy Mosque in Mecca and claimed dozens of lives as well. "
He added that "the recurrence of incidents during the Hajj season and the death of large numbers of pilgrims is definite proof of a lack of efficiency of the supervisors of the organization of the pilgrimage season, and calls for the development of pilgrimage affairs under the planning and management of the Organization of the Islamic Conference to ensure the smooth conduct of the rituals of Hajj."
Maliki also called "grant the right for all Muslims to perform this duty away from the political positions as well as the responsibility for maintaining the souls of pilgrims and not to repeat what happened get through this season and previous seasons."
Read More 0 Comments Parliamentary Finance: in front of the government 17 days to send the 2016 budget to parliament.....The parliamentary finance committee, said that the law provides for the government to send the draft budget law next year to the House of Representatives in 2016 after 17 days from now.
Said committee member Masood Haider told all of Iraq [where], that "if the government had sent the budget bill as stipulated by the law of any on the tenth of next October, the House of Representatives will vote on the law during the time period specified legally and constitutionally." www.theiqdteam.com/blog/p...
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whitelions: hummmmm thats not what I wanted to post I wonder why t picked up that article as well as the one I wanted
whitelions: Najib: economic reforms will be useful if they are within prescribed schedules and plans......... BAGHDAD / WAP / confirmed for the economic and investment commission in Parliament, on Thursday, that the reforms initiated packages will be of great benefit to the country and its citizens in the event of moving them under the tables and plans prescribed to her, pointing out that these reforms need time and legal legislation and guarantees of sovereignty.
Said committee member Rep. Najiba Najib told Xinhua Baghdad International / WAP / "The government is working very hard and in cooperation with the legislative authority for the advancement of economic and investment reality in the country to overcome the Alarbakat that occurred in the previous period and still until the moment as a result of the deterioration of the economic reality because of its dependence on a single supplier and Anfajad prices global oil.
"She added that" there are real steps are to work through which to develop investment and economic sectors through legislation retired workers law, social security, which forms the backbone to secure the private sector and the granting of opportunities and the desire for graduates to work in this sector, rather than looking for government work. www.theiqdteam.com/blog/n...
OOTW: PLEASE SEE THIS THREAD OOTW: wealthwatch.world/showthr...
newbieDA: ‹@whitelions› ty for the articles!
TxBrand: SDR ---> History Special drawing rights were created by the IMF in 1969 and were intended to be an asset held in foreign exchange reserves under the Bretton Woods system of fixed exchange rates. 1 XDR was initially defined as 1 USD, equal to 0.888671 g of gold.
After the collapse of that system in the early 1970s the XDR has taken on a less important role. Acting as the unit of account for the IMF has been its primary purpose since 1972.
The IMF itself calls the current role of the XDR "insignificant". Developed countries, who hold the greatest number of XDRs, are unlikely to use them for any purpose.
The only actual users of XDRs may be those developing countries that see them as "a rather cheap line of credit". en.wikipedia.org/wiki/Spe...
newbieDA: ‹@TxBrand› hmm interesting ty
TxBrand: Special drawing rights (XDR or SDR)
TxBrand: Special drawing rights (XDR or SDR) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). Their value is based on a basket of key international currencies reviewed by IMF every five years.
Based on the latest review conducted on December 30, 2010, the XDR basket consists of the following four currencies: U.S. dollars ($): 41.9 percent (compared with 44 percent at the 2005 review) euro (€): 37.4 percent (compared with 34 percent at the 2005 review) pounds sterling (£): 11.3 percent (compared with 11 percent at the 2005 review) Japanese yen (¥): 9.4 percent (compared with 11 percent at the 2005 review).
Fit2beFit: WHY WOULD THE FEDS SHUT DOWN LAYAWAY/RESERVE, FIRST TIME IN 10 YRS.......HMMM.....I WONDER WHY
Fit2beFit: :wassat: :unsure:
MzDiva: no need to get geared up for Oct 1 bcuz its just another day
Fit2beFit: tman23: Question is........Why did Iraq Parliment pull from the scheduled vote on the investment law on the eve of the vote back in Nov 2014 at the request of Abadi ?? Question is... Why was the vote scheduled once again on May 25th and instead went into a closed meeting for 12 hrs working on nothing but the investment law...and was said that upon Jabouri's return from meeting in Germany, Europe required some additional changes to the investment law.......
Question is.....The amendments to the law have been completed for quite sometime since May 25th and there is no opposition to it......
Question is why has it not been voted on ?? They have not opened the window for loans, foreign contracts etc..etc... BUT they did close out old contracts by paying out 9 billion dollars AND the new contracts are on hold.....WHY ??
They have announced the offering/sale of international bonds on/after Oct 1st...... Why not sell the bonds before Oct 1st ?? INVESTMENT LAW IS THE INTERNATIONAL KEY..
whitelions: ‹@MzDiva› your right just another day in the life of as the dinar turns
chattels: I posted earlier the following observation, " chattels: The scary thing about vanquishing DAESH is the suicidal element which makes traditional tactics less relevant."
chattels: From a friend today :
chattels: Sulaimania, Iraq - "The difference between them and us, is that they are coming to die on the battlefield, while our men want to defend their homeland and then return to their families," said one Iraqi Kurd who has been on the front lines in the war against the Islamic State of Iraq and the Levant (ISIL)
chattels: " There are among them Indonesians, Pakistanis, Chechens, and even Chinese. They've all come here to die in battle, to be martyred. How do you kill a man who wants to be killed ? "
chattels: " "The fight against ISIL is our duty. It means the security and stability of this region and the ability of this region to survive," Mustafa told Al Jazeera in an interview at his office in Erbil.
"We are proud of our Peshmerga in halting the progress of ISIL and liberating the territories we lost to them, but the war on ISIL isn't over yet. And losing to ISIL is not an option."
Comments may be made at the end of Part 2 Thank You