MilitiaMan and KTFA Members "Things Are Not Alwasys As They Seem" 11-22-2020
KTFA:
MilitiaMan: Interesting time this is for.. I suspect that the conditions that Iraq is to emerge from have been the bedrock of deals being done with Saudi Arabia, AMF, G7 et al... imo ~ MM
Samson: Plasschaert will brief the Security Council on developments in Iraq next Tuesday
11/22/2020 15:03:59
The representative of the United Nations in Iraq, Jenin Blasharat, will brief the UN Security Council on the country's developments next Tuesday.
UNAMI's statement, of which {Euphrates News} received a copy, stated that Plasschaert "will provide a briefing at the UN Security Council session on developments in Iraq and the United Nations Assistance Mission for Iraq (UNAMI)."
Plasschaert's briefing can be followed at 6 pm Baghdad time.
The session will be broadcast live on the website {click here } and the full text of the UN Special Representative's briefing will be published in Arabic and English on:
The website .. Click here
Facebook .. Click here
Twitter .. Click here
*Don961: Deleting 3 zeros from the currency ... Parliamentary finance is suspended and determines the size of the cost and the economic effects
5,582 Politics 11/21/2020 19:50 Baghdad Today - Baghdad
Recently, a proposal to delete 3 zeros from the Iraqi currency has been put forward to provide a cash value in the Iraqi market in order to face the financial crisis, which has abounded proposals aimed at reducing its effects, especially with regard to low oil prices and the lack of liquidity in the state to finance salaries and basic expenses.
The reporter of the Parliamentary Finance Committee, Ahmed Al-Saffar, said in an interview with (Baghdad Today), that "deleting zeros from the currency does not affect financially and does not get the country out of the crisis, and it is only a psychological aspect." (opinion)
He added, "Deleting zeros will affect the government because it will destroy the currency it has and issue a new currency without zeros, and this will be in printing houses outside the country and this will cost the government a lot, and the current time is not suitable for this procedure."(opinion)
As for the member of the Finance Committee, Ahmed Hama, he said to (Baghdad Today), "Exiting the financial crisis is not only by deleting zeros from the Iraqi currency because the economic crisis is basically economic," indicating that "deleting zeros from the Iraqi dinar needs to print a new currency."(done already, imo) ~ MM
He pointed out that "the cost of printing a new currency of different denominations of currency up to 60 trillion dinars, and this is difficult for Iraq to bear at the present time, because each denomination or every banknote of the currency requires 6 cents to be issued again."(done already, imo) ~ MM
The Iraqi economist Khalifa Al-Zubaidi says in an article that deleting zeros from the local currency is the process of replacing the old currency with a new one whose price is less than the old currency by the number of zeros that will be deleted. For example, deleting three zeros from the Iraqi currency means that one dinar from the new currency is equivalent to 1000 dinars from Old currency ”.
He adds, "The idea of deleting zeros from the local currency began after the First World War. In 1923, Germany deleted 12 zeros from its currency, followed by Hungary in 1946 by deleting 29 zeros from its currency, as well as China in the same year where 8 zeros were deleted, and in our time, several countries have done such things." Step like Zimbabwe, Sudan, Venezuela, Argentina, Brazil, Netherlands,Turkey and other countries, according to the University of North Carolina, that 70 countries have done this procedure since 1960, when 19 countries got rid of zeros once and ten countries twice, and the country that got rid of zeros the most is Brazil, where it took this step six times and got rid of 18 zeroes, which means that some countries They succeeded in this step and other countries failed. (some failed some did not fail) ~ MM
Therefore, they took this step more than once without success. Iran may be the last country that decided to delete 4 zeros from its currency after the significant decline in the value of the toman against the dollar, although some believe that there will be no positive impact on the Iranian economy because of Economic sanctions imposed on the country ”.
Al-Zubaidi asserts that “the aim of this step is to control inflation and high prices and facilitate the buying and selling process, especially when dealing in millions, which creates many problems for citizens carrying large quantities of currencies, difficulty reading prices, and math errors in reading the large number of zeros, as was the case in Turkey. In addition to the costs of printing it.
He points out that “The Netherlands succeeded in this work in 1960 because it put in place a strict policy to control prices and liquidity. Turkey also succeeded in this measure, with the testimony of the International Monetary Fund, for taking effective measures to combat inflation and was able to raise the value of the Turkish lira through the economic reforms taken by the government in all fields, which It led to economic stability in the country and it got rid of printing large numbers of its currency, as well as making it easier for citizens to read numbers and commodity prices. On the other hand, there are many other countries that failed when taking such a step in dealing with the economic problem, especially inflation, such as Zimbabwe, Argentina and Brazil, as inflation continued to rise due to failure to take correct economic measures, which forced these countries to take this step more than once without any positive results and resorting to some of them in The end is to abandon the local currency and use hard currencies in local transactions. (Successful attempts have been done.) ~ MM
He adds, "Therefore, in general, it can be said that deleting zeros from the local currency without meaningful and effective economic reforms in all economic sectors will be negative and have no positive impact on the national economy and does not contribute to reducing inflation, although some may delude some that prices have decreased and the purchasing power of the currency." Got better.
Accordingly, it can be said that what was mentioned above applies to the Iraqi economy, and this step will have a negative impact if it is not carefully planned and is associated with effective economic measures, revitalizing national industry and supporting the private sector to advance the national economy. link
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MilitiaMan: I look at this article as being another fair warning of the change that is to come. Delta may see this, as I do?
If we look closely, there is a negative slant to this piece and a positive one too. Lets think about the efforts and what we see in the news and in the FA ( final article) thread that support not only are they thinking about the deletion of the zeros, it has been in the works for many years now and is about to be launched. imo
Why you may ask? Well, the amount of interconnectivity going on in Iraq is astounding this year.
We have for instance seen the BUNA Platform connect regionally 03/2020, as noted by the AMF. They have a platform to trade currencies of locally and internationally.
There is the negotiation with AYSCUDA Customs Modernization System by the Finance Minister of Iraq the other day that is in play, as well. They both abide by International Best Practices and Procedures. Both have international implications!!
Then there is the World Bank having an MOU to mange assets from back in 08/2020 (link below is not the MOU, but, supports all that we see needed to go to a market economy.) and now this month we have the BIS working in cooperation with Iraq to increase investment opportunities in foreign reserves.
With the likes the WB and BIS and supported by the IMF, we can see that they are fully aware of the past failures and successes when it comes to deleting three or more zeros.
They will and are going to be managers in the success of Iraq, or they wouldn't have come all this way. It imo will not fail with the citizens. They by know know what the focus is. It is actually deleting three zeros from the exchange rate, which reduces the number (as they show) from 1000 to 1, which then begets 1/1 and with that comes great purchasing power, effectively anyway.. imo ~ MM
The links below show that the above has support and they show that this is not pie in the sky times.. It is about to be go go go (less three zeros.) time!!!... imo... ~ MM
https://english.aawsat.com/home/article/2146836/amf-launches-buna-payment-platform
"With this context, it has become critical for Iraq to embark on a comprehensive forward-looking economic reform agenda to enable private sector led growth, diversification and job creation. Such a program could be based on two pillars: i) Tackling cross-cutting impediments to private-sector led diversification through fiscal sustainability and economic (e)governance, financial sector reforms, business environment reforms, Improving human capital outcomes, as well as social protection and labor system reforms; and ii) Improving governance and promoting private sector participation in selected productive sectors like agriculture and agri-food Industries, electricity and gas.
The Iraq Economic Monitor also includes a Special Focus section that highlights the importance of digital transformation for Iraq and the urgency behind it. The benefits of a robust digital economy are numerous. Leveraging the digital economy will help Iraq improve economic opportunities, particularly for its youth, and thus address the demands of citizens.
The digital transformation of the Iraqi economy will require economic reforms and longer-term development priorities along the five pillars of the digital economy framework by ensuring affordable access to high-speed internet, achieving widespread adoption of cashless payments, delivering digital government services and improving access to data, upskilling youth with technological know-how, and scaling up the digital entrepreneurship ecosystem. An example of the relevance and urgency of digital transformation has recently materialized with the deployment of innovative digital solutions in the fight against the COVID 19 pandemic across the globe. "
https://www.ktfalways.com/forum/frank26-daily-posts/frank26-11-20-20/page-2/
Changing the exchange rate provided that it is accompanied by a series of measures to control prices and protect the poor and middle-income classes
Impose electronic payment, reduce the use of cash payment to a minimum, and encourage e-commerce
Don961: The Finance Committee sets the red lines available to the government to finance the deficit: borrowing ... withholding salaries or printing a currency?
2020-11-22 Yes Iraq: Baghdad
Today, Sunday, the Parliamentary Finance Committee identified the available red lines for the government for the purpose of financing the budget deficit, between borrowing or deducting salaries or printing a currency, while it indicated that the 2021 budget will be mostly operational.
Committee member Jamal Cougar said in televised statements, that "the 2021 budget will be mostly operational and brief, and will not include appointments or investment projects." “.
He added, "We will give the government the right to borrow within the budget law, but the amount of the loan will be determined."
A member of the Parliamentary Finance Committee confirmed, "It is impossible for the House of Representatives to vote on a new loan outside the budget."
He added that "his committee gave the government an opportunity to act, and refused to deduct salaries, and said that the deduction should be from special and higher ranks and not ordinary employees."
And he added, "Any deduction will directly affect the citizen, especially in light of the difficulty of providing services by the government," adding that "the deduction and the reduction of the exchange rate against the dollar areamong the red lines for parliamentary finances, and it is not possible to approach them." LINK
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MilitiaMan: There it is again.. The reduction of the EXCHANGE RATE TO THE DOLLAR!! 1000 less three zeros, 1/1..?? lol
Look they are not going to do deductions to salaries with out increasing their purchasing power, imo. This is the second article in 24 hours along the lines of reduction of the exchange rate, i.e., deletion of the zeros.
The BIS is the top dog for Central Banks of the world and they were just yesterday talking about investment opportunities in foreign reserves... Think about that.
They reduce the exchange rate and those that have foreign reserves are going to get a massive boost in value.. The citizens will get purchase power. It is a win win all around.
They largers players in the world know that.. imo. So, this sort of educational data may very well be the final straw for them to let go.. They released salaries early today or will by tomorrow so I hear. There is a lot of coincidences going on or are they? imo~ MM
"He adds, "Therefore, in general, it can be said that deleting zeros from the local currency without meaningful and effective economic reforms in all economic sectors will be negative and have no positive impact on the national economy and does not contribute to reducing inflation, although some may delude some that prices have decreased and the purchasing power of the currency." Got better."
Don961: The closing statement of the G20 summit affirms the commitment of its leaders to lead the world into an era of strength and sustainability
2020-11-22 Yes Iraq - Baghdad
The G20 published a final statement on its remote summit chaired by Saudi Arabia yesterday and today.
The Final Statement of the G20 Summit:
The group's leaders are committed to leading the world into an era of strength and sustainability
Extending the initiative to suspend debt service payments until next June
Emphasizing the mandate of the United Nations agencies, especially the Health Organization, while studying the need to enhance their effectiveness in coordinating and supporting the global response to the pandemic
The group will spare no effort to ensure that all countries receive Covid-19 vaccines at an affordable price
Determined to continue to use all possible policy tools to protect lives, jobs and incomes, support economic recovery and enhance the resilience of the financial system
We support enhanced IMF support to help address specific challenges facing small developing countries
We have renewed our commitment to ensuring a stronger financial safety net at the core of the International Monetary Fund
Supporting the multilateral trading system is as important now as ever
The group is determined to support developing and least developed countries, and recognizes the special challenges of Africa and developing countries
The group reaffirms its continued political support for the reforms needed for the World Trade Organization
We reiterate the importance of an orderly transition from LIBOR to alternative reference rates before the end of 2021 LINK
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MilitiaMan: Interesting piece out and it took place in Saudi Arabia. Isn't that where new borders were opened? Like the ones that were closed for 3 generations!! Yes, I believe that to be true. Tae note of the bold portion of the: multilateral trading system.. - LIBOR alternative..
Those items are key to success imo.. They are very serious and may be in jeopardy if no action is taken accordingly. The IMF knows this and states as such.. Bold moves look to be instore for the world and they just met today in SA..
In regard to emerging markets.. "These consist of Indonesia, Egypt, seven other emerging countries, and two countries not previously listed before, specifically Iraq and Mongolia." ~ MM
From conventional to unorthodox policies
Despite these actions, the outlook for emerging market economies remains clouded by considerable uncertainty. Chief among many risks is the possibility of a more prolonged health crisis, which would hurt more lives and could have dire economic consequences. Confronting a more severe downturn will be challenging because most emerging markets entered the current crisis with limited room for traditional fiscal, monetary, and external policy support. And much policy room has already been used up by actions undertaken in recent months.
Dwindling policy space may force some countries to take recourse to more unorthodox measures. From price controls and trade restrictions to more unconventional monetary policy and steps to ease credit and financial regulation. Some of these measures—which are also being implemented by some advanced and low-income economies—have significant costs, particularly if used intensively. Export restrictions, for example, could seriously distort the multilateral trading system, and price controls hamper the flow of goods to those who need it most.
The effectiveness of other unorthodox policies will depend on the credibility of the institutions; for instance, whether a country has a track record of credible monetary policy. As we navigate the contours of the ongoing crisis, little time is available to properly analyze the risks and benefits of these actions in a careful manner.
Don961: Next January salaries ... Parliament's finances put forward a hypothesis that prevents late disbursement
2,802 Economie 2020/11/22 17:26 Baghdad Today - Baghdad
The MP of the Saeron Alliance, Mahmoud Al-Zajrawi, commented today, Saturday, on Prime Minister Mustafa Al-Kazemi's fear, days before, about delaying the payment of salaries for the first month of the New Year 2021 in the event of delay in approval by Parliament.
Al-Zagrawi told "Baghdad Today", "The House of Representatives is awaiting the 2021 budget prepared by the government and delaying its arrival will delay its approval in Parliament, of course, because its formulation is part of the tasks and powers of the Iraqi government (the executive authority).
And that "the government, until the moment, has not sent us the 2021 budget bill until it is passed, and its approval requires time for reading and discussions, as well as making amendments and changes according to the powers of Parliament."
Earlier, the Parliamentary Finance Committee suggested that the same problems that were encountered in the distribution of salaries for the second half of the year 2020 in the distribution of salaries at the beginning of next year, as a result of not sending the budget on time, indicated that the government began implementing a system to verify the real number of employees in Iraq.
The reporter of the Finance Committee, Representative Ahmed Al-Saffar, said in a press statement, "The government started the borrowing process according to the fiscal deficit financing law voted on by Parliament in the middle of this month, and we have not recorded any legal violation of the procedures so far."
He added, "The House of Representatives monitors borrowing in terms of determining the party that will be resorted to by obtaining the sums of money, the amounts of installments and the interest resulting from the debts."
He hinted at "the possibility that the parliament will use its constitutional powers to confront any violation of the law by the government in borrowing."
He pointed out, "The next stage will be devoted to the 2021 budget, especially with a large deficit that we must deal with in scientific and realistic ways that enable us to meet the state's needs, especially salaries."
Al-Saffar pointed out, "Article 11 of the Financial Management Law obliged the government to send the draft budget before mid-November, and what is happening now will contribute to delaying the approval of the law later."
He stressed, "The Parliamentary Finance Committee needs time to discuss every paragraph contained in the budget law and then submit it to a vote, and these discussions may include meetings with the government to find out its opinion about every amendment we make to the project."
Al-Saffar believes, "the possibility of the same problems related to delaying the distribution of salaries at the beginning of next year as a result of not sending the budget on time."
He stressed, "The government has actually started implementing some reform provisions that will maximize the state's resources, including the initiation of an automation system at border crossings and its goal is to reach real revenues."
And the decision of the Parliamentary Finance Committee indicated, "To start implementing the system to verify the real number of employees in Iraq through the biometric system."
Al-Saffar indicated that "global economic conditions in general may change as a result of the close access to a vaccine for Corona virus, and therefore this will revive oil prices."
He believes that "the crisis of the current year, until it is overcome, must be an example for the Iraqi government." He concluded that "the budget is still with the government and we hope that it will speed up sending it to the parliament, which needs about 45 days for approval."
And last Thursday, the financial expert, Mahmoud Dagher, revealed, 2020, the size of the financial reserve of the Central Bank of Iraq, after the government borrowed twice to provide salaries for employees.
Dagher said in an interview with (Baghdad Today), that "Iraq now has 55 billion dollars from the reserves of the Central Bank of Iraq distributed at home and in international banks," indicating that "the value of the loan from the reserve during the year 2020 was $ 29 billion, which is a large number globally."
He added that "it is wise to manage things properly in the coming year to reduce borrowing in the event that oil prices remain in their current position," noting that "there is no validity to expectations of the implementation of hard currency in the next year 2021, which is very unlikely."
And that "there is a slight impact on the value of the Iraqi dinar, globally."
Dagher pointed out that "the financial reserve in the Central Bank of Iraq must not be less than 30 billion dollars so that the value of the Iraqi dinar is not affected at the global level."
Sources revealed earlier that the government funded the salaries of employees for the last months of the year 2020 by borrowing from the Central Bank of Iraq. LINK
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MilitiaMan: So they look to have borrowed twice from the CBI to pay salaries, yet they had not paid them on time? They are implementing reforms at the borders, too.!!!
Was the CBI working with the secondary markets in order to help pay salaries or did they deplete the reserves some to pay them? Then, if so why late in October, then early pay in November? Seems odd that they there is so many varying views on these all elusive salary payments.
Were the citizens told that there is a reality coming (RI) and they were given proof? I don't know. But, with all the things we see of late (deleting of the zeors twice in 24 hours.), suggests things are not always as they seem.
Did the CBI become successful in getting the chunky money into the banks so that the CBI would loan the GOV the money to pay salaries? Borrowing from the citizens so to speak with interest?
The interesting article out about the meeting in SA and it mentions multilateral trading system and LIBOR. LIBOR is about interest rates, over night lending facilities, etc.. imo.
I showed a link to the IMF site that talks about the multilateral trading system. Big moves are thought to come for emerging markets and Iraq is one the newer ones added to the list.. imo ! We shall see... ~ MM