KTFA Members "Iraq and Vietnam News and Views" 1-5-2023
KTFA:
Clare: For the first time.. The Central Bank of Iraq's dollar sales are devoid of foreign remittances
1/05/2023
The Central Bank's sales of dollars in an auction today, Thursday, were devoid of any external transfers, so sales were limited to cash only.
Shafaq News agency reporter stated, "The Central Bank sold today, during its auction for buying and selling the US dollar, 43 million and 500 thousand dollars, which the bank covered at a basic exchange rate of 1460 dinars per dollar.
Our correspondent added that sales were limited to cash only, which amounted to 43,500,000 dollars, while sales were devoid of any foreign transfers.
Our correspondent indicated that the banks that bought the cash dollar amounted to 21 banks. LINK
Clare: The appearance of Muhammad Salih for / NINA / The dinar is in its strongest degree of stability..and the fluctuation of the currency price is caused by an external regulatory constraint
05 January 2023
The financial expert, advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed: The dinar is in the strongest degree of stability..and the fluctuation of the currency price is caused by an external regulatory constraint.
He told the National Iraqi News Agency ( NINA ): The fluctuations in the exchange rate came due to a regulatory restriction imposed by international compliance mechanisms on the countries of the dollar region, including Iraq.
Saleh added: There is a surplus in the current account of the balance of payments that is not less than (15%) of the country's gross domestic product, which is a really high number, while the balance of foreign currency reserves amounted to about 100 billion dollars, which is the highest in Iraq's financial history.
He explained: The Iraqi dinar is theoretically at its strongest degree of stability, but the international compliance controls that required greater transparency and governance in the behavior of traders in foreign currency through financing foreign trade from the window of the Central Bank in foreign currency is the reason for the temporary supply of foreign currency in response to demand. LINK
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Henig: Nassif: Al-Sudani found the governor of the Central Bank below the standard, and political forces prevented him from being replaced. Urgent
Baghdad today-Baghdad
A member of the House of Representatives for the coordination framework, Alia Nassif, confirmed that the dismissal and replacement of the Governor of the Central Bank, Mustafa Ghaleb Makhaif, may take place during the coming period, noting that political pressures stopped the matter of changing him.
Nassif said in a televised statement, followed by (Baghdad Today), that "Prime Minister Muhammad Shia' al-Sudani evaluated the performance of the central bank governor and found him below the required level," noting that "Al-Sudani sent a letter to replace the governor, but political forces stopped him."
Regarding the identity of these political forces, Nassif explained that "all political forces, even the 'withdrawals', still have influence in the political arena," indicating that "the decision to exempt the bank's governor exists and may take place during the coming period in the event that the exchange rate of the dollar in the markets is not controlled." LINK
Patriots12: Interesting... so only IMO we know the Framework is in control of Parlament but we don't know to what extent they control Sudani... after all he is from the Framework right ? Do they want to remove the CBI gov for the benefit of the the citizens or the for the benefit of the corrupt ?
I personally can not figure that out as on we go into January still at a program rate... lots of good info but also lots of concerning ... in my opinion only ...
If this in fact does get pushed past January into a March time frame then IMO it is no different then the time frames of interest we have been interested in many times before.... when we/me have thought is was always close until the next event... but we shall see and have hopium... only IMO not being negative, just real ... it just is what it is... until it isn't all IMO
Change the rate Iraq ... nothing holding you back if it’s going to happen!
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Blkfish: This is getting ready to happen! IMO
GMan: I agree. Recalling some of the things that were brought to our attention to look for at the end of this journey. We are in a fantastic spot. Too many to mention. So, I'll mention 2 things I personally am excited about.
1. Recent WTO article.
2. Flying car article. (Saw this some place else).
AlsoI believe that our days on KTFA as we know it (current setup) are numbered. Gman out. IMO
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Henig: A technical delegation from the region intends to visit Baghdad to complete understandings on the budget
On Thursday, the leader of the Patriotic Union of Kurdistan, Ahmed Al-Harki, revealed the imminent arrival of a technical delegation from the Kurdistan region of Iraq to complete the understandings related to the region's budget.
Al-Harki said in a press interview seen by “Takadum” that “a technical delegation from the Kurdistan region of Iraq will arrive in the capital, Baghdad, to complete the understandings regarding the region’s share of the current year’s budget.”
He added that "the return of the delegation to the region was due to the Christmas holidays," suggesting that "the task will be completed within days, and therefore the budget bill will be sent to Parliament for the purpose of voting." LINK
Vietnam News
Henig: Customs sector leads in IT application
06:00 | 05/01/2023
(VEN) - A new information technology (IT) system developed by the General Department of Vietnam Customs (Vietnam Customs) under its administrative reform is expected to generate savings of about VND920 billion in the next five years for 92,000 importers, exporters and operators of warehouses, yards and ports.
Clearance time: One to three seconds
Vietnam Customs has synchronously implemented administrative procedure reform. In 2020 and 2021, it studied and proposed to reduce and simplify five percent of regulations and five percent of costs related to business activities, according to government Resolution 68/NQ-CP dated May 12, 2020.
It has also regularly assessed the impacts of administrative procedures on law-making, helping ensure the necessity, legitimacy and reasonability of regulations on administrative procedures; regularly and promptly publicized administrative procedures to ensure accessibility to information for individuals, organizations and businesses; and strengthened control of administrative procedures throughout the sector.
Notably, the customs agency has built a number of key IT systems to serve the implementation of customs procedures, automated customs inspection and supervision. Core customs procedures are already completely automated through the automated clearance system VNACCS/VCIS at all customs units nationwide with more than 99 percent of enterprises. More than 99.8 percent of customs declarations are processed on these systems and customs clearance time for green channel goods only takes one to three seconds.
Vietnam Customs also signed agreements with 44 banks on budget collection cooperation, with tax revenue through banks to account for 99.8 percent of total revenues, and 98 online public services have been integrated into the National Public Service Portal.
In addition, Vietnam Customs has deployed the Automated Customs Management System (VASSCM), connecting to 495 enterprises operating in ports, airports, warehouses, yards and locations subject to customs supervision.
Significant savings
Since early 2021, Vietnam Customs has focused on building digital customs. The smart customs model will be based on a high degree of automation and apply scientific achievements on digital platforms, ensuring transparency, fairness, efficiency, and the ability to forecast and adapt to fluctuations of international trade and management requirements of customs authorities.
It is expected that in the next five years, 92,000 importers, exporters and operators of warehouses, yards and ports will save about VND920 billion by using the new customs IT system, and be able to declare customs procedures anytime, anywhere on all available tools.
Deputy Director General of Vietnam Customs Luu Manh Tuong said that in recent years, the customs sector has speeded up reforms and modernization and has been a pioneer in developing and applying IT. Consequently, administrative procedure reform and modernization in the sector have made remarkable progress, creating a favorable environment for import and export activities, immigration, and implementation of international integration commitments.
So far, all basic customs procedures have been automated and all customs departments and branches carry out electronic procedures with 99.65 percent of enterprises.
Quynh Nga LINK
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Henig: Vietnamese real estate has mixed outcomes but positive outlook
January, 05/2023
Vietnamese real estate began to decline in the late months of 2022 as a result of a change in the governmental stance on bank credits and corporate bonds.
HÀ NỘI — The Vietnamese real estate market showed mixed results in 2022 with a boom in the first half of the year and a downturn in the second half, according to Nguyễn Mạnh Hà, deputy chairman of the Vietnam National Real Estate Association.
Hà was speaking at the seminar 'Vietnamese real estate: outcome and outlook' on Tuesday.
The deputy chairman said the tide of cheap money in late 2021 had lifted many boats in the early months of 2022, including real estate. Housing prices were soaring on the back of the post-pandemic economic recovery and the growing demand from homebuyers.
However, the industry began to go into reverse in the late months of the year as a result of a change in the governmental stance on bank credit and corporate bonds. The government's tightening up on the two capital channels has caused worries among investors and brought it to a halt.
"The number of estate agents now stands at around 30 to 40 per cent of that in the early half of 2022," said Hà.
Still, he has an optimistic outlook for the industry in the short term as the completion of some huge social housing projects this year is expected to encourage sales to low-income homebuyers.
Nguyễn Mạnh Quỳnh, chief of staff of the Vietnam Association of Realtors, held that the supply of commercial real estate was tight in 2022 with around 48,500 products for sale, equaling just 28 per cent of the figure in 2018.
"The market was facing a shortage of affordable housing and, at the same time, witnessing a surge in luxury housing," said Quỳnh.
By product types, land slots took up 44 per cent of the pie and high-end housing followed with 37 per cent. Middle-end housing came next with 15 per cent whereas low-end apartments stayed at rock bottom with 4 per cent.
The chief of staff forecast that real estate sales would remain low in Q1/2023 but begin to improve in Q2/2023 on the grounds of a better macroeconomic situation. Average prices, meanwhile, are expected to fall slightly until mid-Q2 and then level off towards the end of the year.
Phạm Lâm, chairman of the DKRA Group, revealed that 1,081 real estate enterprises were dissolved and 2,379 temporarily ceased their operation in the first 11 months of 2022.
The situation is not better now as real estate enterprises face many setbacks. One of the setbacks is the tight supply of land, which falls between 40 to 83 per cent year-by-year across segments.
Lâm urged the enterprises to cut costs and cut staff wisely to get through this tough time. He said digital transition is a solution to the cost-saving problem as it significantly reduces overheads.
"My message for the enterprises in 2023 is 'tighten your belts'," Lâm added.
Cấn Văn Lực, chief economist at the JS Commercial Bank for Investment and Development of Vietnam, estimated total capital funneled to real estate in 2022 at VNĐ507 trillion (US$21.5 billion), of which 71.0 per cent come from bank loans and 10.8 per cent from corporate bonds.
"Corporate bonds normally account for about 22 per cent of real estate capital. Unfortunately, this source of financing was reduced by half last year," said Lực.
The economist also revealed that he was urging the government to introduce a favourable mechanism to support the industry in its effort to repay VNĐ120 trillion worth of corporate bonds in 2023 and VNĐ110 trillion in 2024. —VNS LINK