KTFA Members "News and Views" Thursday PM 6-10-2021

KTFA:

Hammy14:  Once again.....promises made, but not promises kept.  When are we gonna see ACTION as opposed to just a bunch of hot air?  Implement the reforms, Iraq.  Open your budget.  Talk is cheap....  

Iobey777:  YEP! if they keep messing around, the citizens are just going to start rioting again and tearing things up! It's a vicious cycle in Iraq! They have been TOLD to get it finished by those who are watching...if they don't get it done soon, then they will reap what they have sown! Those poor citizens deserve better than what their Gov't and CBI is giving them! We can SEE that they are working towards it thru the articles, and IMO, the articles tell us it's SHOW TIME!! Just DO IT!

Samson:  Parliamentary Economy: The rise of the dollar broke the back of the citizen, and the government must intervene

06/10/2021 14:06:23

The Parliamentary Economy and Investment Committee warned of the repercussions of the continued rise in the dollar exchange rate in local markets.

  Committee member Nada Shaker said in a press statement, "The rise in dollar prices in the Iraqi markets broke the back of the citizen," stressing that "the government must control the markets and prevent the rise in commodity prices." She added, "The government and the political blocs that approved raising the price of the dollar at the end of last year bear the responsibility for stabilizing the markets," noting that "the exacerbation of prices generates many problems for citizens."

Shaker confirmed, "The House of Representatives had previously requested to host the Central Bank Governorate against the background of raising the price of selling the dollar to banks to 1460 dinars, but some blocs did not support the step," pointing out that "the efforts to interrogate the Minister of Finance in the House of Representatives during the previous period did not succeed for the same reason." 

The exchange rate of the dollar rose against the dinar in the currency markets in the regions of Kurdistan and Iraq, in an unprecedented way, as it exceeded more than 1500 dinars.  LINK

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Samson:  The government..the economy..and the citizen

17:16 - 07/06/2021- Books / Qassem Al-Gharawi

The Iraqi parliament voted at the end of last March, by majority, on the draft federal budget law for Iraq for the fiscal year 2021, with a total of 129 trillion Iraqi dinars, while the ceiling of crude oil exports was set at a rate of 3 million barrels per day, including 250 thousand barrels from the fields of the Kurdistan region at a price of 45 dollars per barrel.

Lifting government support from the exchange rate represents one of the most daring decisions of the Al-Kazemi government, which caused an increase in prices.

Because of it, the Iraqi market was hit by severe turmoil after the dollar exchange rate was raised, and the first signs of this turmoil is the tangible increase in prices, as well as the suffering that affected many economic sectors in this market and thus the impact on the life of the citizen, according to the World Bank report, which confirmed that about Millions of Iraqis are threatened with poverty as a result of the Corona pandemic and the drop in the price of a barrel of oil.

A double shock received by the Iraqi citizen by the increase in the poverty rate and the difficulty of life in light of the reduction in the price of the Iraqi dinar against the dollar due to the financial and monetary policy of the Ministry and the Central Bank.

Despite the fading of the panic from the Corona pandemic and the return of oil prices to a rise again towards a level of more than 70 dollars per barrel due to the increase in demand resulting from the return to operating the stalled factories in the world and the desire of the United States of America to restore its strategic oil reserves, the Iraqi reality remained in a state of crisis, and the market still poses a great challenge to the citizen. The Iraqi government is without a solution in light of an economic, financial and monetary policy and a reform paper adopted by the government to face the economic challenges at a time when the vision of the suffering of the people was absent.

At a time when the global economic situation indicates the stability and recovery of markets after economic challenges and expectations of an increase in the price of a barrel of oil, the economic policy in Iraq did not succeed in its expectations for the price of a barrel of global oil for 2021, contrary to global expectations, and therefore the budget relied on expectations that the price of a barrel of oil would continue to be $45 The difference in the price saved millions of dollars. However, the increase in the dollar exchange rate did not achieve the goal of controlling market prices and creating a balance in them, as evidenced by the fact that the bank is still selling more than 200 million dollars.

The approach of corruption in the Iraqi state is the first reason for this decline, and the approach of political quotas is what led to the deterioration of the economic file, as well as the intervention of politics in the management of the economic file and the diligence of politicians in it for their interests that are related to their banks and the profits made as a result of buying and selling the dollar and smuggling it abroad.

The reconciliation of the higher authority concerned with covering market transactions in dollars with black market dealers and monopolists of currency will necessarily lead to the situation remaining unaddressed, as the current government with its financial policies that have robbed Iraq’s economy of its most sensitive joints and increased poverty rates within a few months to unprecedented levels, it will be written that be the worst government in the record economic performance.  LINK

Samson:  Central: Increasing the amount of cash sales of foreign currency

10th June, 2021

Decided the Central Bank of Iraq, Thursday, increasing cash sales amount of foreign currency.

According to Information Office of the Bank, in a statement received / scales News / copy of it: "For the purpose of meeting the demands for foreign currency and for the purpose of achieving the goals of monetary policy and ensure exchange rate stability, the Iraqi Central Bank decided to increase the amount of cash sales of foreign currency to the banks and all licensed exchange companies and all companies to broker the sale and purchase of foreign currency and all met in full."

The statement added," The increase will be as shown below: 

The share of the bank is $300,000 per week
- the share of a class A exchange company is $2,200,000 per week
- the share of a class B exchange company is $750,000 per week
The share of the Class C exchange company is $70,000 per week.  LINK

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Samson:  Parliamentary Finance: The Central Bank Should Exclude Banks That Manipulate The Exchange Rate From The Currency Auction

9th June, 2021

The Parliament's Finance Committee proposed a solution to the crisis of the high exchange rate of the dollar against the Iraqi dinar in the market, while it presented 3 options to the Central Bank of Iraq to solve the exchange rate crisis.

Exchange rates in exchange offices and local markets in the capital, Baghdad, rose to about 1492.50 dinars for purchase, and 1502.50 dinars for sale.

Member of the Committee, Representative Ahmed Rashid, said in a press statement that the Independent followed today, Wednesday, that "the Central Bank confirmed before applying the new dollar exchange rate that the price is fixed at 1450 dinars per dollar, and is not subject to change, but banks and exchange companies did not adhere to this."

Rashid explained, "The Central Bank is faced with the options of issuing warnings and penalties, or excluding banks and companies that manipulate the dollar exchange rate or increase the supply."

And a member of the Finance Committee stated that "increasing the dollar's supply will lead to a reduction in prices, because the greater the supply than the demand will lead to a decrease in the exchange rate, and therefore this depends on the dollar's pumping into the markets by the central bank."

Since the collapse of oil prices earlier this year, Iraq is facing an unprecedented liquidity crisis, the government of Prime Minister Mustafa Al-Kazemi was forced to borrow from the bank’s reserves in dollars to repay nearly $ 5 billion per month, representing public sector employee salaries and pensions, followed by a decision to reduce the value of the Iraqi currency against the dollar.

The decision sparked a wave of anger in the Iraqi street, but Al-Kazemi defended his government's move and said that he had two options, "either the collapse of the system and entering into complete chaos, or we enter into a Caesarean section for reform."  LINK

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Samson: UK Foreign Secretary: British companies are on the cusp of investing in Iraq

8th June, 2021
British Foreign Minister Dominic Raab said that there are British companies on the cusp of investing in Iraq.

Raab added to the “Tenth” program, which is shown on the Al-Iraqiya news channel, followed by the Iraqi News Agency (INA), today, Tuesday: “I had very important meetings with Prime Minister Mustafa Al-Kazemi and Foreign Minister Fouad Hussein, and I was proud to sign on behalf of my country a strategic agreement with Iraq.” He added, "Britain supports Iraq in the areas of elections, the economy and security, as it provided one million pounds to monitor the upcoming elections in order to be free and fair."

The minister pointed out that "his country encourages Iraqi security leaders to come to the United Kingdom for the purpose of training." He explained that Iraq has a starting point towards a bright future, and Britain is there to support it, stressing that "Britain provides joint support to Iraq because it is part of NATO."

The British minister continued: "The Iraqi security forces can take control of matters, and we support them with that."

Regarding the white paper, Raab said that he "discussed with Prime Minister Mustafa Al-Kazemi the white reform paper to support the Iraqi economy and push it forward," noting that "there are opportunities to attract investment to Iraq."

The British Foreign Secretary stressed "the need not to depend on oil and gas, and the industrial and agricultural sectors can be developed," noting that "his country will support the Iraqi government in achieving the goals set in the white paper." He pointed out that "there are British companies on the cusp of investment in Iraq," stressing that "there is a fertile ground for investment in Iraq."  LINK