KTFA Members "Tuesday News" 8-18-2020
KTFA:
Don961: The stability of the Iraqi dinar
Tuesday 18th August 2020 Samir Al-Nasiri
Central banks in the countries of the world mainly aim at achieving economic stability by achieving stability in the monetary system and the financial system through their programs and strategies aimed at maintaining stability in the exchange of their local currencies against other foreign currencies and building sufficient foreign cash reserves to cover their local currency in Circulation.
According to special international standards issued by the International Monetary Fund, banks are evaluated based on other criteria related to facing crises, challenges, economic, political and security shocks, and natural and epidemic disasters in their countries, controlling stable rates of inflation and interest rates, and applying compliance and anti-money laundering and terrorist financing regulations and rules that are internationally established.
And since for ten months, all countries of the world have been going through two economic and epidemic crises due to the global drop in oil prices, economic stagnation and slowing economic growth due to the Corona pandemic.
And that the above conditions suffered from Iraq and neighboring regional countries such as Iran, Turkey, Lebanon and Syria, as well as the economic, political and security conditions and challenges that all these countries shared with Iraq in them.
One of the results of that was the devouring of the US dollar of the local currencies of the above regional countries and their collapse in very large proportions, for example. Currencies decreased against the dollar, so the Turkish lira became 7.30 pounds per dollar, and in Iran one riyal corresponds to 0.000024 dollars, the Lebanese pound is 8500 pounds, and the Syrian pound is 2250 pounds against the dollar, while the exchange rate of the Iraqi dinar has stabilized within its rates for the past two years.
So why was the exchange rate of the Iraqi dinar not affected except by a slight relative rise in the exchange rate of the dollar and a decrease in the purchasing power of the Iraqi dinar, and the Central Bank took quick monetary measures to return the exchange rate according to what was targeted before the events. In order for the economic analyzes to be accurate and not extreme of the reality of monetary stability in Iraq and the effects of the new and expected economic and epidemic shock on the exchange rate of the Iraqi dinar, which has stabilized for more than two years and is still strong and maintains its stability and will continue as well despite international and local political shocks.
In order not to take the expectations of media exaggeration and create a state of fear among the public and the banking sector, I assert, through an economic and analytical view of the state of stability in the exchange rate of the dinar, and from a neutral and transparent point of view, we note that the positive stems from the independence and balanced management of the central bank and the availability of foreign cash reserves at the rate. As for that which determines its sufficiency to cover the cash mass in circulation and to cover imports, as the foreign cash reserve is fully insured and Iraq ranks fourth in the Arab world.
In addition to that, the strength and recovery of the Iraqi dinar, and deal with responsibility and independence by the Central Bank
The application of the monetary policy adopted by the Central Bank, which achieved stability in the exchange rate for more than two years, represents the real guarantees to protect the local currency from collapse and face the new shock, and it will be bypassed. The economic and security shocks that the Iraqi economy suffered from during previous years have also been overcome. The Iraqi dinar will remain stable and maintain its purchasing power despite the challenges.
• An economic and banking advisor LINK
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Samson: US Treasury: The Group of Seven is considering extending the debt freeze for low-income countries
18th August, 2020
A spokesman for the US Treasury said, Tuesday, that the finance ministers of the Group of Seven rich countries indicated improvement in economic conditions in their countries, but stressed their concern about the debt problems facing low-income countries
The spokesman added that during a videoconference conference hosted by US Treasury Secretary Stephen Mnuchin, the ministers reiterated their call to all official bilateral creditors to fully implement the G20 initiative to freeze debt service payments for the poorest countries, and agreed to study additional options, including extending the initiative to 2021
The heads of the World Bank and the International Monetary Fund also participated in the meeting, who urged the G20 to extend its initiative to suspend debt service, given the economic repercussions of the Covid-19 pandemic
In April, members of the G20, including China, and the Paris Club of official creditors, offered to freeze debt service payments for the seventy-three poorest countries until the end of the year, to allow about $ 12 billion in financing to the poorest countries to fight the pandemic and mitigate its economic effects. However, implementing the debt freeze is facing difficulties, which is prompting calls for its extension and expansion
The spokesman said that the G7 ministers agreed today to "enhance the transparency of debt data and to study additional options for low-income countries, including extending the debt service suspension initiative to 2021
They also stressed the need to manufacture and distribute vaccines and treatments for Covid-19 disease, which is caused by the Coronavirus, especially in low-income countries
The spokesman said the ministers also discussed other issues, including support for the people of Lebanon LINK
Samson: Al-Kadhimi heads to US today and will meet Trump on Thursday
18th August, 2020
Iraqi Prime Minister, Mustafa Al-Kadhimi, left the capital Baghdad, today, Tuesday, to the United States of America heading a government delegation, in response to an official invitation.
Al-Kadhimi's office said in a statement today, that Al-Kadhimi will meet with US President Donald Trump, on Thursday, as well as senior US officials, where bilateral relations and issues of mutual interest between Iraq and the United States will be discussed, as well as cooperation in the fields of security, energy, health, economy and investment, in addition to the COVID-19 file.
PM @MAKadhimi accompanied by a high level delegation departs Baghdad to begin an official visit to the USA during which he will hold talks with @POTUS on security, energy, health care, and economic cooperation. pic.twitter.com/gh2iYbCO5U— Government of Iraq - (@IraqiGovt) August 18, 2020 LINK
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Samson: Al-Kazemi to Washington ... for an independent Iraq that invests its wealth and its role to please the Iraqis ... and calls for a unified position in support of the president
18th August, 2020
On Tuesday August 18, 2020, the Prime Minister, Mustafa Al-Kazemi, left the capital, Baghdad, heading to the United States of America, at the head of a government delegation, in response to an official invitation, while his office revealed to the obelisk some of the discussion axes.
The media office of the Prime Minister told Al-Masala that Al-Kazemi will meet US President Donald Trump on Thursday, and during the meeting, discussions will be held on strengthening bilateral relations between Baghdad and Washington, in addition to discussing current developments on the regional arena, and discussing issues of common interest.
He added that Al-Kazemi will hold talks with senior US officials during his visit, which will include discussing bilateral relations between the two countries, and enhancing joint cooperation in many areas, foremost among which are security, economy, health, and other sectors.
Private sources told Al-Masalla that Al-Kazemi will invest the visit mainly in affirming the sovereignty of Iraq, the independence of its decision, and curbing any interference in its regional affairs, which is something that the United States understands, from an independent president, who is not accused of subordination to any party, and is not involved in corruption. He enjoys great popularity among Iraqis, which allows Kazemi to speak as a strong leader, who has a broad popular base.
While the attempts of parties to thwart Al-Kazemi's visit are monitored, through bombing of the Green Zone, or US forces' camps, Representative Alia Nassif calls on the political forces to unite the word in support of Al-Kazemi's efforts in Washington.
Representative Alia Nassif told Al-Masalla that she calls MPs and political forces to unite the word in order to provide an opportunity to achieve the supreme Iraqi interest in establishing equal relations, and in obtaining financial support and investment, as Washington has a great influence on countries, economic forums and global banks. Obelisk sources say that the visit acquires special importance with the approaching US presidential elections, early November, which will enable Iraq to have strengths that enable it to establish a new security understanding, and to sign a final memorandum, which is the essence of the ongoing strategic dialogue between the two countries.
On the street level, the Iraqi public, according to the obelisk poll among the demonstrators, is no longer on the list of priorities, the issue of removing the American forces, as much as working with sophistication and diplomacy to serve the country by benefiting from the American aid, whether material or political and technical.
Parties may seek to thwart Al-Kazemi's visit, through bombing the Green Zone, or US forces' camps, but that will not win the satisfaction of the Iraqi people who are looking for stability, development and services.
The visit, according to the prospect of the obelisk, will make Al-Kazemi know the concerns of the Iraqis, focusing on the economy and requesting financial assistance to overcome the acute financial crisis in convincing international donors of the need to help Baghdad.
In the mid-crossroads agreement, the two sides will discuss the role of the international coalition mission participating in the war against ISIS in Iraq after the decline of terrorism.
Prime Minister Mustafa Al-Kazemi said, Tuesday, August 18, 2020, that Iraq still needs the assistance of the United States of America to confront the threat posed by ISIS, and that his administration is committed to introducing reforms in the security sector with armed groups launching almost daily attacks against its headquarters.
Al-Kazemi said: In the end, we will continue to need cooperation and assistance at levels that may not require direct military and field support today, adding that the cooperation will reflect the changing nature of the terrorist threat, including continuous training and weapons support. Asked if he was relaying any messages from Tehran after a recent visit there, the prime minister said we are not playing the role of postman in Iraq. LINK
Samson: Al-Fath: Any economic agreement with Washington must be subject to Iraqi sovereignty
17:51 - 08/18/2020
A member of the Al-Fateh Alliance, MP Hassan Shaker revealed, on Tuesday, his most important demands on Al-Kazemi's visit to the American capital, Washington, DC, stressing that any economic agreement with the United States must respect Iraqi sovereignty.
"Our demands are constant to Prime Minister Mustafa Al-Kazemi on his current visit to Washington, DC, which is the sovereignty of Iraq and scheduling the exit of US forces from the country, given that their exit is a national decision that represents all components, and Parliament voted in this direction months ago," Shaker said.
Shaker added, "We refuse to have economic relations with America or other countries in the world in accordance with the principle of common interests, provided that the interests of the Iraqi people be in the first place and that the will and sovereignty of the country be respected."
Prime Minister Mustafa Al-Kazemi went this afternoon to the American capital, Washington, with an official delegation to meet with the leaders of the White House. LINK
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Samson: A statement on urging the banking sector to use modern financial technologies in banking transactions
18th August, 2020
The Central Bank of Iraq calls on all citizens to deal with banks and licensed financial intermediation companies, during large cash exchanges, instead of hoarding in homes.
The central bank seeks, through this, to preserve the money supply of citizens, avoid cases of theft and fraud, and promote counterfeit currencies.
The bank stresses the need to reduce trade exchange in paper currencies, which medical studies have proven to be an effective vector for viruses and bacteria, especially as the country is going through a crisis of the spread of Corona virus.
The Central Bank adopts the mechanisms of spreading financial inclusion in Iraq, which enhances the banking culture and the shift to monetary exchange through banking in all its advanced civilized forms.
The Central Bank of Iraq
information Office
2020/8/18 LINK
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Samson: Arrest warrants against former local officials in Al-Diwaniyah
18th August, 2020
A source revealed, on Tuesday, that arrest warrants had been issued against "former" local officials in Al-Diwaniyah governorate on charges of using their positions to secure their personal interests.
The source told Shafaq News agency, "the Iraqi judiciary issued arrest warrants against several members of (the dissolved) Al-Diwaniyah Governorate Council, using their positions.
Al-Diwaniyah, southern Iraq, has been witnessing angry demonstrations, the most intense of which were by the end of last June, when protestors stormed the local government building and both the health and education departments, after knowing that the provincial council building had been opened by the governor, whom they consider he lost legitimacy. LINK