KTFA Members "News and Views" Friday Afternoon 2-12-2021
KTFA:
DeepWoodz: Imo...LADIES AND GENTLEMEN....this is directly related to the WHITE PAPERS.
READ SLOWLY
The Council of Ministers decided the following:
a. Forming a committee called (the Supreme Committee for Reform) that includes:
１. Prime Minister / President
２. Minister of Finance / Vice President
３. Minister of Planning / Member
４. Minister of Oil / Member
５. Secretary General of the Council of Ministers / member
６. Governor of the Central Bank / member
７. Executive Director of the Supreme Committee for Reform / member and rapporteur
８. Advisor to the Prime Minister for Strategic Affairs / Member
９. Advisor to the Prime Minister for Economic Affairs / Member
1０. Head of the Legal Department in the General Secretariat of the Council of Ministers / Member
1１. Two experts nominated by the Prime Minister / two members
１２. A representative of each of the two main international support organizations (International Contact Group, World Bank Group) / observers, without either of them having the right to vote.
B. The Supreme Committee for Reform undertakes the following tasks:
１. Supervising the implementation of the reform program as a whole, and the projects that it consists of, according to the plans and timetables approved by the Supreme Committee for Reform, including adding, deleting or amending new projects.
２. Ensure the availability of timely administrative and financing approvals during implementation, and take the necessary measures to overcome emerging obstacles.
３. Coordinate the work of the various bodies responsible for implementation and support, define the duties of each of them and achieve integration between them.
４. Monitoring good performance and implementing accountability in accordance with the law.
５. Submit periodic reports on the progress of the reform program to the Council of Ministers.
C.
１. Cabinet Resolution No. (12) of 2020 shall be repealed, and the (Supreme Committee for Reform) replaces the (Emergency Cell for Financial Reform) formed pursuant to it.
２. Meetings of the Supreme Committee for Reform are held at the invitation of the president or his deputy with the approval of the president, and in the presence of at least half of its members, including the president or his deputy in the absence of the president, and decisions are taken by the majority of the attendees, including the session chair.
３. Committee meetings are held quarterly at least.
４. The Supreme Committee for Reform has an executive director named by the Prime Minister, who is directly related to him and authorizes the necessary powers to implement the committee’s decisions and achieve its goals, and is tasked with following up the implementation of its decisions and running its day-to-day affairs under the supervision of its president.
５. The Supreme Committee for Reform may form work teams or sub-committees to carry out specific tasks, and grant them the necessary powers to achieve their goals and facilitate their work.
６. The higher authority may host whomever it deems necessary to attend its meetings, in order to achieve its tasks.
７. The Prime Minister delegates the powers of the Council of Ministers for the purposes of the Supreme Committee for Reform.
Dr.. The formation of a cell called (Reform Management Cell) headed by the Executive Director of the Supreme Committee for Reform, to be based in the Prime Minister’s office and undertake the following tasks:
１. The executive management of the reform program is completely under the supervision of the Supreme Committee for Reform.
２. Provide support to the officials of the reform program projects and the relevant executive teams, with the aim of improving performance and ensuring that the best implementation paths are chosen to achieve the set goals.
３. Enhancing communication between project officials and work teams on matters pertaining to each project, and coordinating the interconnectedness of the various projects within the reform program with the aim of enhancing integration and synchronization in implementation.
４. Dealing with developments directly as a first level for reporting and solving problems.
５. Tracking the implementation of basic activities, evaluating performance in an independent professional manner, and submitting periodic reports to the Supreme Committee for Reform, including reporting on work progress rates, obstacles, anticipated risks and suggested solutions.
６. Assist in identifying the procedures required of the project official in the event that implementation delays or deviates from the correct path
７. Follow-up and accountability of the officials of the reform program projects in case of delay in achieving the goals approved within the approved timetable.
８. Any additional tasks assigned to the cell by the Supreme Committee for Reform.
E. The executive director of the Supreme Committee for Reform has the authority to contract with experts and executives without pay, and he may contract duly for a fee with the approval of the Supreme Committee for Reform.
All government agencies are obligated to give the reform program priority, cooperate and coordinate with the Reform Administration Cell, and submit the required reports and data within the specified timeframes, including naming an official with a grade of no less than a general director for each project, and allocating the work teams and human and material resources required to ensure the progress of the program Repair according to approved plans.
Get the idea??? They mean business. Hallelujah!
Don961: Will Kuwait devalue its currency to meet the liquidity shortage?
Posted 12 hours ago Independent Press Agency
The Independent / - Kuwait suffers from a severe shortage of liquidity, due to the spread of the Corona virus and the decline in global oil prices.
While other Gulf Arab states have resorted to global debt markets to bolster declining financial resources amid the outbreak of the Corona epidemic, Kuwait has faced resistance from representatives of the National Assembly (parliament) to approve a bill that would enable the government to borrow.
Concern is increasing about how Kuwait will fill the budget deficit, after the government transferred its last productive assets to its sovereign wealth fund in exchange for liquidity.
Ultimately, analysts and investors say, the Kuwaiti government will have to act to shore up the country's finances, whether by overcoming the borrowing impasse or imposing taxes to increase revenues.
As a last resort, the Kuwaiti government can reduce the value of the dinar, but it is not clear how effective it will be in terms of boosting the economy, according to what was reported by analysts and investors.
"The risks of devaluation (the dinar) are limited," said Todd Schubert, head of fixed income research at Bank of Singapore Limited, which holds the sovereign debt of Kuwait, companies and banks.
He added that Kuwait could resort to financial markets during the first half of 2021, expecting the necessary reforms to pass, because the available options, such as liquidating the assets of the sovereign fund, are limited.
In 2007, Kuwait became the first Arab Gulf state to abandon its peg to the dollar in exchange for a basket of currencies, in order to cope with the depreciation of the US currency, which led to an increase in the cost of imports, thus feeding inflationary pressures.
The post Will Kuwait devalue its currency to face the liquidity shortage? appeared first on Independent Press Agency. link
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Samson: Will a barrel of oil break the $ 100 barrier next year?
13:30 - 12/02/2021
An expert in the oil markets suggested the issue of a rise in the price of a barrel of oil to the level of $ 100 next year, despite the oil markets being under pressure due to the Corona virus crisis.
Amrita Sen, chief oil analyst at Energy Aspects, said in an interview with Bloomberg that oil prices may rise to $ 100 a barrel next year on the back of "very easy monetary policy."
In turn, Gennady Shamal, head of the Association of Oil and Gas Producers in Russia, said that the price of oil reaching the mark of 100 dollars per barrel in the near future is a fantasy, and that the price of a barrel of oil at $ 60 is a comfortable issue for the Russian budget.
He explained that the comfortable price for producing shale oil for US companies is about $ 45 a barrel, and when the price exceeds the $ 60 mark, additional oil is put on the market, causing the price to drop.
Brent crude was trading today at $ 60.50 a barrel, and Brent rose yesterday for the ninth consecutive session, and crude is heading towards recording the longest wave of gains since January 2019. LINK
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Samson: Digital media calls for popularizing the electronic payment experience in Iraq
12th February, 2021
The Digital Media Center DMC, called on Friday to circulate the electronic payment experience in Iraq, to limit the transmission of the new Corona virus via fiat currencies.
The center stressed, in a statement received by Mawazine News, a copy of it, on the necessity of circulating the electronic payment experience in Iraq in a way that allows citizens to make purchases safely and quickly, as well as limiting the transmission of the Corona virus through paper currencies, as well as the benefits achieved to Iraqi banks.
He praised, "the presence of many points of sale in the malls that supported the electronic payment feature through electronic payment cards," calling for "support for more payment applications such as Apple Pay and the electronic payment services provided by telecom companies operating in Iraq."
He noted, "Circulating the electronic payment experience will encourage citizens to settle their salaries in banks and spend what they need only through the electronic payment mechanism, thus providing financial liquidityt to banks that support electronic payment systems."
He stressed, "the importance of activating electronic payment systems in reducing corruption and eliminating informal economic activities, and consequently the entry of individuals within the licensed systems operating in the country, as well as its importance in raising investment rates in the country, increasing production and providing more job opportunities."
He explained, "The electronic payment systems in Iraq still need more support and legalization and limiting the chaos of benefits imposed on individuals, which may reach many times what is imposed in neighboring countries, and banks should also be obligated to increase the number of ATMs and payment devices in a manner commensurate with the population density." LINK
DeepWoodz: Imo...Pushing electronic to the citizens not only reduces the need for printed currency, but also increases financial liquidity for the country, reduces inflation, and provides the setting for a much stronger currency in the international world!!!
Inflation rates. Inflation is a major determinant of exchange rates. Countries with low inflation usually see the value of their currency rise compared to others. Those with higher inflation, meaning each unit of their currency buys fewer goods and services over time, usually see their exchange rates fall.
Interest rates. Intertest rates are also closely tied to foreign exchange and inflation rates. If the rate a country pays when it borrows rises relative to other countries, more money seeking higher returns will flock to that country, demand for its currency will rise and the currency’s value will rise with it. Likewise, if interest rates fall, money will flee in search of higher returns and the exchange rate will drop.
Current account. A country’s current account includes its balance of trade and earnings on foreign investment. Its trade balance reflects its exports versus its imports and foreign debt. A current account deficit may occur when a country imports more than it exports, and this in turn can cause its currency to depreciate.
(Exports will never increase at a program rate because the cost of raw materials will not alllow for new enterprises. You have to allow a leg up for citizens first to get em up and running in the secondary markets.)
Government debt. When governments issue new debt, interest rates may rise to attract bond buyers, leading to more demand for its currency. But if investors fear that the government has taken on too much debt and may default, they may sell whatever government bonds they hold, undercutting demand for its currency and causing its exchange rate to decline. This, in turn, may cause inflation to spike.
(Iraq is at the perfect balance and is why they turned down new loans.)
Political and economic stability. This is another important factor, since foreign capital will gravitate towards countries where investments are secure and the business landscape offers few surprises. Money flocks to countries where the business climate is predictable and flees countries roiled by uncertainty. This favors the former’s exchange rate and undermines the latter’s currency.
(How many countries now coming in?)
Speculation. Investors looking for profits through currency trading can also play a role, especially when a turn of events is deemed likely to have an outsized impact on a country’s currency. If that country is on the brink of a recession, for example, speculators may see its currency as vulnerable and sell it short. This can amplify any decline in its value.
(What they are preventing as much as possible right now. There would be no confusion at 1460 if that was the plan.)