IMF launches new SDR basket including Chinese Renminbi, determines new currency amounts

imf

Today, the International Monetary Fund (IMF) announced the launch of the new Special Drawing Right (SDR) valuation basket including the Chinese renminbi (RMB), and the new currency amounts that will determine the value of the SDR during the new valuation period.

As approved by the Executive Board of the IMF on November 30, 2015, effective October 1, 2016, the RMB is determined to be a freely usable currency and will be included in the SDR basket as a fifth currency, along with the U.S. dollar, the euro, Japanese yen, and the British pound ( see Press Release No. 15/543). The Board also decided at that time that the weights of each currency would be 41.73 percent for the U.S. dollar, 30.93 percent for the Euro, 10.92 percent for the Chinese yuan, 8.33 percent for the Japanese yen, and 8.09 percent for the Pound sterling.

To mark the launch of the new SDR basket, Ms. Christine Lagarde, Managing Director of the IMF, stated: “The expansion of the SDR basket is an important and historic milestone for the SDR, the Fund, China and the international monetary system. It is a significant change for the Fund, because it is the first time since the adoption of the euro that a currency is added to the basket.

“The Renminbi’s inclusion reflects the progress made in reforming China’s monetary, foreign exchange, and financial systems, and acknowledges the advances made in liberalizing and improving the infrastructure of its financial markets. The continuation and deepening of these efforts, with appropriate safeguards, will bring about a more robust international monetary and financial system, which in turn will support the growth and stability of China and the global economy.

“This milestone also reflects the ongoing evolution of the global economy. The Fund plays an important role in this evolving process, and the inclusion of the Renminbi in the SDR basket shows once again that the Fund stands ready to adapt to change.”

In addition, the Board also decided today that effective October 1, 2016, the value of the SDR will be the sum of the values of the following amounts of each currency:

U.S. dollar 0.58252
Euro 0.38671
Chinese yuan 1.0174
Japanese yen 11.900
Pound sterling 0.085946

These currency amounts are calculated such that the value of the SDR in U.S. dollar terms is the same under the new basket as the value of the SDR prevailing today, and that, at the average exchange rates for the three-month period ending today (July 1 through September 30, 2016), the share of each currency in the value of the SDR corresponds to the weight approved by the IMF Executive Board on November 30, 2015.

The Board’s decision on the amount of each currency in the SDR valuation basket is the final step toward implementing the results of the latest review of the method of valuation of the SDR (see Press Release No. 15/543).

SDR interest rate

The SDR interest rate that will be determined on October 7 and applied for the week of October 10, 2016 will be the first one that reflects the new SDR valuation basket and includes a representative interest rate for the RMB. The change in the SDR interest rate relative to the previous week will reflect the changes in the composition and shares of currencies in the SDR valuation basket, as well as the changes in the interest rates on each component financial instrument.

IMF

Iraq launches project carrier of goods and containers line to all countries of the world

ship
Department of Transportation / General Company for Maritime Transport firing carrier of goods and containers line project to all countries of the world.

The announcement of the launch of the project at a press conference at the Sheraton Hotel in Baghdad signing a partnership agreement with British company Global Maritime for the transfer of cargo and containers by sea after a lapse of 25 years at a cost of $500 million for a period of 10 years

The representative of the Minister of Transport, Ethel Abd Ali at the conference that “the great benefit contract because Iraq is far from this area for more than 20 years we are now outside the subject of maritime transport due to circumstances experienced by the country and the wars suffered by Iraq and also because of the damage to maritime transport” noting that “the state does not have the potential to restore the operational staff of the ships.”

“The General Company for Maritime transfer began to recover through continuous planning and disperse them to build new ships, four of which will enter service in the coming period, but even this is not enough to importing country requirements of the ration card items and the rest of other goods,” noting that “this matter has led to the direction of the ministry to enter into this area in order to reduce transport fares on the citizen, which will contribute to reducing the cost of imports of goods, especially in the domestic market.”

In turn, Director General of Shipping Abdul Karim Knhl said that “We have factors supporting the National Maritime carrier and help to be a competitor for companies to transport goods to government ministries,” noting that “the ministry dealing with a national insurance company subsidized by the Ministry of oil, as well as support for Iraqi ports.”

He added that “the company can supplement the budget by 45% of its will for there to be economic support to the country.”

Twilight News

French fighter jets bombed Daesh from “Charles de Gaulle” in preparation for the battle of Mosul

french
French fighter jets from the French aircraft carrier Charles de Gaulle on Friday carried out operations against Daesh, in preparation for the battle of the restoration of Mosul, according to an officer on board the ship.

Agence France-Presse reported that eight Rafale aircraft took off about eight o’clock (05,00 GMT) from the ship in the eastern Mediterranean.

Iraq Press Agency

Joint operating agreement signed for Zubair oil field with Italian and Korean companies

oil
Oil Ministry announced that it has signed a joint operating contract agreement to develop the Zubair field between the SoC and / ENI / Italian and / Ku Kaz / Korean oil companies, after the withdrawal of the Occidental company USA.

oil
According to a statement the ministry after negotiating with a consortium of operators has been agreed on the entry of the South oil company as a partner, the operator of Zubair, after the withdrawal of the company (Occidental US) from contract, which was signed adding that the coalition of the operator companies of the field will remain as company – specific ratios.

He added that the work in the field began in 2010 to develop, where production was 180,000 bpd now reached production to 400,000 barrels per day.

The statement noted that “the US company ‘s withdrawal was not limited to just the Zubair field in Iraq, but of all the projects sponsored by the company in Middle East due to the global economic crisis and the decline in world oil prices”.

National Iraqi News Agency

Iraq’s international bond offering of two billion dollars delayed until 2017

EURO

Economic Adviser to the Prime Minister Haider al-Abadi said on Thursday that Iraq is likely to postpone the sale of bonds two billion dollars in global markets until early 2017, the hope that the result of high oil revenues and the victory over the Daesh improving the public finances of the state.

Baghdad had said it would issue bonds with the US government guarantee half its value in the last quarter of 2016, but it seems that those plans are uncertain after the dismissal of Finance Minister Hoshyar Zebari last week because of corruption charges denied by the minister.

Mohammed Saleh told Reuters in an interview, “I think we [Release].” Adding that “we should see the situation in the oil market – if we can improve a little bit, although the oil market has seen a further deterioration, we will have to borrow.”

Iraq issued international bonds worth $2.7 billion due in 2028 with a coupon of 5.8 percent and a revenue currently about nine percent.

Iraq resorted to the International Monetary Fund to borrow in order to make up for lost revenues from oil, which would encourage other lenders to provide support.

In July the Fund approved a loan application under a three-year, $5.34 billion in exchange for a package of economic reforms, Baghdad hopes to provide additional aid worth more than $12 billion from sources such as the Group of Seven major industrialized nations.

Saleh said last month that Iraq agreed “in principle” on a deferred loan for three years worth three billion dollars from the World Bank to support Baghdad’s budget, this will be the first loan installment of supplementary funding for the agreement with the IMF.

He added that the details of the conditions to support public financial institutions and pensions in Iraq are not yet clear, but the first tranche will be disbursed in December.

AIN

Korek Telecom develops its network using Ericsson ‘s platforms

ericcson

Ericsson has announced its partnership with Korek Telecom to work on developing and expanding its network Korek Telecom WCDMA (division multiple access network VBN broadband) in Iraq.

It includes the scope of this project is the latest platforms MkX of Ericsson application in SGSN platform and platform market leader Ericsson GGSN provides capabilities capacitance measurement provided by WCDMA network developed, Korek Telecom has the potential to absorb the expected strong growth in traffic rates, and pave the way at the same time to achieve future adoptions LTE technology.

On the new project, said Mohsen Akrawi, representative of the Chief Executive Officer of information technology in Korek Telecom: “cooperate today with Ericsson, our partner in the long term, to ensure the future of communication and contact in Iraq, and we look forward to continuing to provide our customers the best networking capabilities for years to come.”

This is noteworthy that MkX own platform Barickson applied for the first time in the Middle East by Korek Telecom project, which is considered an important and distinct step for Ericsson.

For its part, supervisory Ibrahim, head of Ericsson Middle East and East Africa, said: “Winning this contract proof of the leadership of Ericsson to the field of technology and services in Iraq and the extension of our relationship strong relationship with Korek Telecom, and SGSN platform will provide an opportunity for Couric to provide unique experiences for people and companies and society as a whole, and thus build the fastest in the networked society in Iraq.”

And adopt practical advantages installed platform Ericsson MkX SGSN for the blades Ericsson system, which expands the capacity to meet growth expectations sharply higher traffic and provide the platform capabilities superior measure, which supports up to 36 million users of the node, and up to 2300 million users when applied settings are grouped within the small physical size of the platform (0.24 square meters) and low rates of energy consumption, to contribute to the reduction of the total cost of ownership, in addition to the environmental footprint.

Sotaliraq

Iraq opens new antiquities museum in Basra

basra
BAGHDAD (AP) — Iraq opened a new antiquities museum in the southern city of Basra on Tuesday with pottery, coins and other artifacts dating back more than 2,000 years.

Only one hall was opened due to a shortage of funds, Qahtan al-Obaid, the museum director, told The Associated Press by telephone. It will showcase artifacts dating back to 400 B.C. that tell the history of the oil-rich city on the Persian Gulf.

He said there are plans to open other wings that would exhibit Babylonian, Assyrian and Sumerian artifacts from across Iraq dating back to 3,300 B.C. Iraq is currently in the grip of an economic crisis linked to the plunge in global oil prices and the war against the Islamic State group.

The museum is housed in one of Saddam Hussein’s former palaces, which had briefly served as a mess hall for British troops after the 2003 U.S.-led invasion that overthrew him. Al-Obaid said the location was chosen in order to “replace the themes of dictatorship and tyranny with civilization and humanity.”

The museum was conceived in 2008 after the British withdrawal, and was partly funded by a U.K. charity. The hall that opened Tuesday cost an estimated $750,000, of which $500,000 was provided by the oil company BP, which operates in Basra, al-Obaid said.

Basra has been inhabited for thousands of years, but the current city dates back to A.D. 637. It flourished during the Middle Ages as an important cultural and commercial center of the Abbasid Empire, and was the departure point for Sinbad the Sailor’s fictional adventures in Africa and South Asia.

Iraq’s oil-rich south is far from the front lines of the war with the Islamic State group, which has destroyed ancient sites in northern Iraq and neighboring Syria.

Yahoo

Assyria Bank celebrates the opening of its tenth branch in Mansour

bank

Ashur International Bank family joyful celebration inaugurated the branch this evening in the presence of a representative of the Central Bank of Iraq, Dr. Ali Allaq.

At the beginning of the ceremony, Commissioner Mr. Adnan Chalabi the bank manager, cut the ribbon, then held the ceremony, which included Chalabi words, who expressed his insistence Assyria bank to expand its banking services through increasing the number of branches in Iraq and said: – inaugurating Mansour branch number of branches to ten bank branches scattered in the provinces of Iraq, including Baghdad, Karbala, Basra, Sulaymaniyah, Nineveh, Salahuddin and there is an intention to open branches in other provinces.

It should be noted that Mansour branch of the Bank of Ashur International will begin its work from tomorrow Wednesday morning and provide its services to customers.

Economy News