KTFA Members "News and Views" Wednesday Afternoon 2-24-2021
KTFA:
Iobey777: well, IMO, if you would just go ahead and show them that you are Article 8 and your new rate.. that you have been boasting about, the security issue might decrease and investors might want to rush into your country! You have been telling the citizens of changes that Have Been Made, yet you are still not showing the world or your citizens! Why?
Samson: Hussein: We have high oil coordination with Saudi Arabia and the Gulf, waiting for a case to invest in Iraq
24th February, 2021
Iraqi Foreign Minister, Fuad Hussein said that there is high coordination in oil policy with the Gulf oil countries, especially with Saudi Arabia, whether it is bilateral or within the framework of "OPEC".
Hussein said in an interview with the London-based newspaper Al-Sharq Al-Awsat in its Arabic edition published today, Wednesday, that Saudi Arabia and Iraq play an important role in this organization, and coordination continues between the two countries in all fields related to energy, as it is a vital issue for the country's economy.
He pointed to the existence of a memorandum of understanding to import 400 megawatts from the Gulf network, saying: The dialogue has reached a high level, and we still need electric power, and I believe that there are discussions between specialists from Iraq and the Gulf states about how to support the power stations at home, and not just buy Electricity. Besides the problem of producing electricity, there is another problem in the distribution networks. So we need to build infrastructure for electrical distribution networks, and Gulf companies can play a role in that.
On investment projects in Iraq, the minister said, "When we talk about activating memoranda of understanding, some of them are related to these projects. There are investment projects, and in the energy and electricity sector, petrochemicals, agriculture, housing, contracting, and others. But these investment projects also relate to the political situation and political relations." It is also related to the security situation, so when there is a threat to the security situation in a certain area, investments do not enter and the investor waits.
However, he said that the security situation in Iraq has improved compared to the years from 2014 to 2017. However, recently some attacks have started in different regions, and this affects the internal economic situation and the entry of funds from abroad. There are memoranda, but in return these issues must be considered, and cooperation with the surrounding countries aims to positively affect the salvation of these attacks and the groups that destabilize the situation internally.
Hussein continued, "Sometimes security strikes affect the coming of investors, especially the Gulf, but the security situation today has become stable, except for these recent attacks, as the more the security situation improves, the better the investments and the attractiveness of foreign capital, and I see many companies and investors from the Gulf have them." Willingness to invest Investment squares in Iraq are wide, as we need investments in agriculture, tourism, energy, petrochemical, services, real estate and other sectors.
He stressed that "investors, especially the Gulf, are waiting for a state of complete stability in Iraq in order to invest and bring in capital, as Gulf companies can play a role in building the Iraqi economy."
DeepWoodz: Hi Iobey!!
They wouldn’t want to tip their hand would they? So far they have been very convincing that the change in the rate (DE-value) has been beneficial...ie Kadhimi said their reserves have increased by 4 billion dollars. We do know they have a date and a timetable, from WS and Frank on the date, and from articles on the timetable.
If the idea is to confuse and deter speculation on their currency, then they are right on track. No one, not even parliament thinks they are going to raise the rate to the glory days, hence the articles saying they want it at 1300. Or they are just lying. I don’t think they know because they are also corrupt and the CoM and K wouldn’t want them to speculate either and get richer.
All this to say that imo, you won’t know until the moment of change. Unless you are a GOOD student, or a member of KTFA!
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Slade: I have said this before and I continue to believe......
The delays in Iraq reinstating their currency is because this currency thing is bigger than just Iraq.
Seems they aren't the only ones making the decisions for their country.........it seems that Iraq tried to make some moves when they devalued in December without someone else's approval........(I realize they say they devalued in Dec to get more currency off the streets.....but could that be an excuse)
Godlover (I think) had stated quite a while ago that it could go as far as the 1st quarter of 2021......looks as if this could be correct........
With all that said......By watching actions that Iraq, other countries, banking companies, businesses, IMF, CBI, BIS, and others have done and said over the past years.......
It seems we are close....
I could be all wrong.........and that's cool with me......I have no ego in this game and just enjoying the show! Blessings to all
Samson: Representative economy: the banking system is still underdeveloped and its development will address 3 drawbacks, most notably smuggling
11:30 - 24/02/2021
Member of the Parliamentary Economic and Investment Committee, Nada Shaker Jawdat, confirmed, on Wednesday, that the Iraqi banking system is still underdeveloped, while indicating that its development will address 3 negatives simultaneously.
"One of the most important factors of economic growth in any country is the development of the banking sector as the main building block in strengthening the frameworks for financial exchange," Jawdat said in an interview with "Al-Maouma", pointing out that "the status of banks in Iraq and their technologies is still lagging compared to other countries."
And she added, "The development of banking performance and the introduction of modern technologies with all its methods will address 3 drawbacks, in that one of the most prominent is preventing currency smuggling abroad and absorbing the cash mass available in homes and reducing theft crimes in addition to securing a large cash block in banks that will be a gateway to open investment and financial loans.
Jawdat indicated that "the Iraqi banking performance is still very late for the rest of the international banks in terms of electronic mechanization, its mechanisms, despite the presence of efforts in this regard, but it is still too late." LINK
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Samson: A demonstration in front of the Central Bank of Baghdad demanding the return of the dollar to its previous price
24th February, 2021
Dozens of people demonstrated on Wednesday in front of the Central Bank of Iraq building in Al-Rasheed Street in the center of the capital, Baghdad, demanding that the exchange rate be returned to 120 thousand Iraqi dinars for every hundred US dollars.
The reduction in the value of the local currency against the hard currency was reflected in the prices of goods and goods, especially imported ones in Iraq, as they witnessed a remarkable rise, which burdened the shoulders of low-income and poor people.
The protesters held banners calling for the dismissal of Central Bank Governor Mustafa Ghaleb Mekhaif, accusing him of "wanting to starve the people."
Shafaq News correspondent quoted some demonstrators as saying that "the primary beneficiaries of the exchange rate increase are the banks of the political forces." Another sign carried the phrase that "these corrupt banks steal their livelihood and that of their families to feed the whales behind them."
The Iraqi Central Bank decided at the end of last year to raise the selling price of the dollar to banks and exchange companies to 1460 dinars, from 1182 dinars to the dollar, in order to compensate for the decline in oil revenues caused by the deterioration of oil prices.
Iraq relies on 90% of its income on oil revenues, and the last time it devalued the dinar was in December 2015 when it raised the selling price of the dollar to 1182 dinars, compared to 1166 dinars in the past.
The Central Bank launched its decision regarding the new pricing for the sale of the dollar in the auction for the currency on the 20th of last December.
Iraq is under great pressure under the weight of the worst economic crisis it has witnessed since 2003 until now due to the low oil prices and the outbreak of the Corona virus. LINK
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Samson: Kuwait .. Minister Of Finance Talks About The Running Out Of Liquidity In The State Treasury
24th February, 2021
Kuwaiti Minister of Finance, Khalifa Hamadeh, said that the scarcity of financial resources and the depletion of liquidity in the state’s public treasury must be addressed, stressing the need for economic and financial reforms.
This was reported by the Kuwait News Agency (KUNA) today, Tuesday, indicating that the Minister of Finance’s statement came in response to a bill submitted by the government to the National Assembly, allowing it to withdraw a maximum of 5 billion Kuwaiti dinars (about 16 billion US dollars) annually from the Generations Reserve Fund. Coming. This measure aims to assist the government in facing the obstacle of lack of liquidity in the state treasury (the General Reserve Fund).
The agency pointed out that Khalifa Hamadeh said: "The draft law is one of the solutions presented within a package of laws, including the adoption of the public debt law and the implementation of financial reforms." Hamada continued, "The Ministry of Finance has taken a number of measures to support liquidity since last July, when liquidity was not available."
The Kuwaiti newspaper "Al-Qabas" quoted Kuwaiti Parliament Speaker Mansour Al-Ghanim as confirming, earlier today, the need to find acceptable and economically feasible alternatives, after the government requested to deduct sums from the Future Generations Fund.
Al-Ghanim pointed out that a request to take 5 billion Kuwaiti dinars (16.5 billion dollars) from the fund to solve urgent problems is not permissible, and alternatives can be considered for this, stressing that the cost of liquidating investments in the funds is much greater than the cost of borrowing that the state can resort to.
A parliamentary document obtained by Reuters last August revealed that the general budget deficit of the State of Kuwait in the fiscal year (2020/2021) increased to 14 billion Kuwaiti dinars (45.5 billion US dollars), due to the Corona crisis and global oil prices. LINK