MilitiaMan and KTFA Members "Countries Can Devalue and Revalue" 1-13-2021
KTFA:
Samson: Parliamentary Committee: The statements of the Ministry of Finance confused the Iraqi market
18:14 - 01/13/2021
On Wednesday, the Parliamentary Finance Committee described the statements of the Ministry of Finance as confusing the economic situation and the Iraqi market, indicating that the budget picture was not completed until after the second reading.
A member of the Finance Committee, Thamer Theban, told Al-Maalouma that "some statements about the economic situation are unsuccessful, including those of the Ministry of Finance."
He added that "the statements of the Ministry of Finance confused the Iraqi market and shook the economy in a direct way, and the vocabulary must be launched accurately."
Theban clarified that "the Finance Committee will seek the assistance of economic experts for the ambiguous paragraphs and the financial mandate and take them out in a manner different from what the government sent."
MilitiaMan: Sure it confuses the market.. They were not all ready for the devaluation. They were told in an article by the US Federal Reserve Bank that countries can and do devalue and revalue. Which apparently is about to happen in Iraq's case too. I have a feeling that the accuracy of the numbers in the 2021 are the focus and the manner in which they approach it today, could be a pivotal time frame. Today is the last day for reporting of a change if applicable with the UN. Not that is a smoking gun at all, just it is a reporting time frame. imo They have been hard at the budget for many consecutive days. The numbers after the second reading are very key.. imo.. Lets see what they do next. ~ MM
Popeye7: Thank you MM... Very promising, and great analysis as usual... The process rolls along as we approach a day that will result in a change for the better as concerns the economic circumstances of Iraq's people... Having a reverberating effect on the world economy as well in a positive way... Of course
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Samson: Calls for restoring the budget and parliamentary conditions that amendment not exceeding 15 days
13:30 - 01/13/2021
Member of Parliament Nada Shaker revealed, on Wednesday, that there was a parliamentary consensus to refuse to deduct employees except for the salaries of the three presidencies and special ranks from a general manager and above, likely to be returned to the government to amend them and take into account the parliament’s proposals, provided that they are not delayed by the date of returning them to Parliament for a maximum period of 15 days or Opening a channel between the government and parliament.
Shaker said in a statement to / the information /, that “all the political blocs are unanimous in refusing to deduct the salaries of employees except for the salaries of the three presidencies, ministers, deputies, and the rank of director general and above. She added that "the consensus included the consensus of most political blocs to reduce the size of the budget, and this requires returning the budget to the government because Parliament does not have the authority to reduce the size of the budget and its authority is summarized in the issue of transfer."
Shaker explained, "In the event that the budget is returned, the parliament will oblige the government to a specific period not exceeding fifteen days to amend it according to the Council’s proposals, or a direct channel will be established between the Finance Committee and the government to take the proposals." LINK
MilitiaMan: The above is from today. The below is yesterday.
The below shows they were to have met yesterday at the Guesthouse of the Prime Ministry between the Finance Committee. I am sure the have had to have had a talk about the exchange rate being devalued and the repercussions that came with it.
They also would have had to have talks on how to best fix or reverse the circumstances. I'll bet the consensus is and will be that at 1460 there will not be any deductions for the employees, as they all ready are getting the pinch with 20-50% increases in pricing for goods and services, etc. So, sure the consensus should be unanimous.
But, also they may or do have a consensus that the exchange rate needs to have a positive effect on the citizens. Thereby, a revaluation would need to be on the table and a telling point is that may very well be the case is that the Kurds are getting payments this weekend and they will have 21% deductions. Why would the kurds not be balking at that when they too are getting pinched from a 1460 exchange rate? They wouldn't imo..
So the meeting yesterday and subsequently more to it today is being talked about between Allawi and Maliki suggests there is a consensus and that a package of measures are to be brought forth within two weeks to mitigate the effects on the devaluation.
Well, imo if they Kurds are getting paid and have agreed to 21% this Sunday, suggests that the meeting at the Guesthouse may have coincided with other concerns and that would be the exchange rate to alleviate the pain at the grocery store and pocket books of the citizens.
A positive move from 1460 to something far better would be in order.
Dropping the 3 zeros is one what to do that. They have recently talked about doing just that. So, lets see what transpires this next few days. imo It looks promising. ~ MM
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Finance Minister announces a package of measures to mitigate the effects of raising the dollar
"the ministry, within two weeks, will take a package of measures that mitigate the effects of devaluation."
Kurdistan government gives good news of salary distribution soon
https://economy-news.net/content.php?id=23568
Economy News - Baghdad
A source in the Kurdistan Regional Government announced that the Kurdistan Regional Government will distribute the salaries of its employees for the month of November last next Sunday. According to the Kurdish network Rudaw.
A source in the regional government said, "It is scheduled that the Kurdistan Regional Government will start, next Sunday, (January 17, 2021), to distribute the salaries of employees for the month of November 2020, with a deduction of 21% of them ."
A source in the Council of Ministers in the Kurdistan region stated that the Ministry of Finance and Economy has prepared salary lists and will start the process of distributing them as of next Sunday, indicating that the amounts allocated for disbursement are estimated at 400 million dollars .
The Kurdistan Regional Government needs 613 million dollars a month to secure the salaries of its employees, but it has not distributed salaries for 40 days because the Iraqi government has not sent any amount for months, and by calculating the rate of deduction of 21% of the salaries, the cost of salaries is 707 billion dinars (487 million dollars ).
Official figures indicate that the volume of the Kurdistan Region's debt until mid-September 2020 reached 28 billion and 500 million dollars, of which 9 billion dinars are the dues of compulsory savings for employees
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Iraq 2021 budget .. Finance confirms securing the liquidity of salaries and projects without difficulties
Today, Tuesday, the Parliamentary Finance Committee is scheduled to hold a meeting at the guesthouse of the Prime Ministry to discuss the observations made by parliamentarians on the articles and paragraphs of the Federal Budget Law for 2021. LINK