KTFA:

Don961:  3 options top the measures to confront the economic crisis .. What is the story of private budgets?

2020.05.12 - 12:40

Baghdad - people   

Member of the Parliamentary Finance Committee, Muhammad Sahib al-Darraji, stressed today, Tuesday, the importance of adopting a special budget if oil prices continue to decline.   

In a statement to the official agency, followed by Nass, (12 May 2020), Darraji said, "There are measures that must be taken to face financial distress other than internal borrowing or prejudice the central bank's reserves," noting that "among these options is a price change." Exchange and stopping imports, in addition to stopping the currency auction and other economic measures.  

Al-Daraji pointed out that "if oil prices continue to decline, there must be special budgets, including a crisis budget that is based on a price lower than the price of oil to walk salaries and health matters as well as other important matters," noting that "this challenge must be exploited and transformed into an opportunity of Through opening the door for investment and allowing the private sector to operate. "  

 He called on the government to "accelerate the transmission of the budget in a way that reduces the deficit by reducing costs or by changing the exchange rate."    LINK

Samson:  Iraq is considering cutting the dinar as difficult options to face the financial crisis

17th May, 2020

A source close to the office of the Iraqi Prime Minister revealed that the government is considering reducing the value of the dinar against foreign currencies, as part of measures to confront the financial crisis caused by the drop in oil prices and the repercussions of the spread of the new Corona virus. According to the newspaper, "The New Arab

The source said, according to the newspaper, "The options available to Prime Minister Mustafa Al-Kazemi are mostly difficult, but there are serious dialogues with advisers and economic experts, and during the past days, several options were reviewed to address the financial crisis, including external borrowing or the devaluation of the dinar

He added: "There are also other options, including offering state factories and public properties for investment or sale, and printing the currency, but these will be the last options

He continued: "All options presented have major problems in the long and medium term, but the alternative is the inability to pay the salaries." He pointed out that in the short term he will rely on the monetary reserve for a few months, while taking a series of austerity measures unprecedented at the state level

The current crisis is the biggest challenge for the new Prime Minister’s government, as Iraq is one of the “mono-economic” countries, because it relied on about 94% of oil sales revenue to provide salaries for employees and retirees of about 4 trillion dinars per month (about 3 billion dollars) at a time that did not reach Oil revenues have only about 1.4 billion dollars last April, according to official data

LINK

2Cents:  As I stated the other day that many disputed......This is not what we want..........off" ~ 2Cents

MilitiaMan:  We do not want nor will they devalue the currency. They cannot. Simply put they state very clearly. The citizens will freak out if they devalue!!! Just because there is an opinion piece out that suggests a devaluation is in the cards or mix to hash over, doesn't mean it has any legs let alone any sort of foundation to it.

"Samsem said, in an interview with Al-Masala, that cutting salaries or deducting them will lead to the wrath of the Iraqi street, which will not be silenced by cutting its livelihoods today, so the Iraqi government will resort to another option to bridge the financial deficit."

Lets keep in mind what we know.

We know the global impact that we have witnessed needs attention and it is getting it. It is not something that just happens over night in the totality and scheme of things financially.

There is larger picture than just alone flipping the switch or pushing the button if you will to the reinstatement of the IQD. 

Be sure, the plan includes that. Just as they path way to facilitate a smooth transition was needed to be in place, as a massive amount of money is going to be moved over time. 

Hence the FIMA, CML, SLL, TALF, etc., are in place and have been as of recent to three and past decade to the latter. 

The data that comes from the CBI and the Parliamentary Finance Committee  is not about DEVALUATION. It is about raising the value of the currency. 

The opinions of others needs to be treated with respect, but, in this case with a sharper eye, as murky waters are in play. It makes no sense to stir it any more than what has been done. The wrath is not an option. The wrath is DEVALUATION.. ~ MM

MilitiaMan:  They even say they have to accelerate the conditions to deal with the crisis before them, i.e., pay salaries that they are constitutionally required to do.  Make note too, that that the new PM has every intention to please the Citizens and he says so.. He has an out line or ROAD MAP in doing so.. Devaluing is not something he ever mentions that I have seen to date.  ~ MM

MilitiaMan:  They also state they are going to stop the auctions as we know them, imo. Today's auction with cash sales is a far cry from the $150 - $200 million of the past. They most likely are on drip by drip basis!! So, they are doing what they said, they are stopping the auctions as we have been known to know them. imo ~ MM

MilitiaMan:  Then there is this little gem. The IMF and World Bank have been in Iraq and discussed this more than once that I know of and have spoke out about. They are not going to specifically tell us that they are gearing for the IQD to be in the SDR, as at the moment Iraq is not international, yet!!! But, when they go and raise the value of the IQD, then that may be a very different thing altogether imo.. So the opinion piece, is just that an opinion. I'll go with the Money Players of the world over an op ed... I suggest everyone else do the same.. Take in the good and throw out the bad.. imo My view is brighter than ever.. imo.. ~ MM

SaraBeth:  KTFA: IMO
 
Remember the phrases we are reading in the articles as:  " cutting the dinar", "reducing the value of the dinar against foreign currencies", "printing the currency" and "devaluation of the dinar" are kind of like creative writing, and have been explained IMO:

"Reducing the value of the dinar against foreign currencies":  MEANING:  THE NUMBERS DECREASE FROM THE PROGRAM RATE 1190 TO BECOME 1:1 AS THE EXCHANGE RATE.  1190 going down .... 690 .... 390 .... 190 ...... 1 USD.  Saved from a chart many moons ago.

"Printing the currency":  MEANING:  the lower denominated notes or NSCN's as the already printed currency ready to go.  

Well good to know the articles are making the statement that this is THE BEST SOLUTION so we are golden, and yes we can agree it is high time and it is truly upon us.  Yeah for everyone!

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Don961:  According to astronomical calculations ..

Watcher fixes the date of Eid Al-Fitr: Al Hilal will see the 'naked eye' in the sky of Baghdad

2020.05.17 - 10:26
Baghdad - people  

On Sunday, the air forecaster, Sadeq Atiyah, suggested that the Eid Al-Fitr crescent could be seen in the "naked eye" in the sky of the capital, Baghdad, as he decided to see it.  

Attia said in a clarification by Nass, (17 May 2020), that “the most prominent question is (how much is left for Eid al-Fitr 2020?), Especially since the countdown to Eid al-Fitr has already started, as we are scheduled to receive the Eid al-Fitr At the beginning of next week. "  

He added, "Astronomical calculations far from doctrinal issues indicate that the crescent is now in the phase of the waning creascent crescent, and the new crescent will be born on Friday, 5/22 at 08:39 at night, Iraqi time, knowing that the birth of the crescent does not mean to see it, and this means that He cannot be seen at all on Friday evening, because he will be born after sunset. "  

He continued, "The expectations indicate the possibility of seeing on Saturday, May 23, that the age of the crescent at sunset is about 22 hours, and its illumination rate is 0.77%."  

And between, "The crescent sets in Baghdad approximately 43 minutes after sunset, which is supposed to be absent at 7:01, while the moon sets at 7:44 minutes, so visibility on Saturday evening will be possible through the telescope easily, and so can be seen With the naked eye, if the observer is experienced, provided that his location is monitored at first sight, and the atmosphere is clear away from the lights of the cities. "  

He pointed out that "If the vision is confirmed on Saturday evening, Sunday will be the first day of Eid Al-Fitr astronomically."     LINK