MilitiaMan and KTFA Members Wednesday Evening 11-27-19
KTFA:
Samson: A parliamentary committee is discussing with the Central Bank to correct fiscal policy and not rely on oil
26th November, 2019
Discussed the parliamentary Finance Committee with the Governor of the Central Bank and Director General of the Tax Authority, on Tuesday, the correction of fiscal policy and non-dependence on oil.
"The committee hosted today, the Governor of the Central Bank and the Director General of the Tax Authority to discuss the issue of maximizing non-oil revenues and assessing the monetary and economic policy of the country," MP Haitham al-Jubouri said in a statement received.
The Chairman of the Finance Committee to "support the Iraqi economic reality and move it through the correction of fiscal policy and corrected and not rely on oil alone as a resource and maximize revenues through the government to take urgent measures to control the waste of billions of dollars a year at the border through the process of automating the customs and tax procedures in it.''
The Finance Committee indicated that, "will continue its oversight role by holding more meetings and hosts to find imbalances in the economic reality of the country and hold accountable for the negligent and the performance of their work and corrupt where their positions and positions, as well as continue its legislative role, which contributed to the adoption of the most important laws during the current crisis of our dear country In addition to the adoption of new laws help to solve the financial problems of the country." LINK
MilitiaMan: So lets take a look at some of the verbiage in this article above. The Central Bank of Iraq over the many years has done many things and is still doing many things.
The preparation and foundation of the monetary reforms has been poured and cured for up to 5 years running steady now. They have maintained their inflation rate IMF standards. They are now gearing to correct their fiscal policy by weaning themselves of dependence on oil alone. They are going to use additional Taxes and Tarrifs to do just that.
The meetings of late with the Central Bank in regard to them both is very important now. The citizens have spoken loudly and have been heard, as to their demands for corruption to be eradicated, stolen money to be returned, transparency in to the dealings of taxes and tariff monies at the borders and also their HCL monies allocated accordingly.
Once the citizens start to feel the bite at the crossings, they'll start to get louder with out having the purchase power they have been promised for years to off set those costs. Fair is fair. Get the mechanisms in place now to achieve all of the aforementioned, then the gears will spin more freely and quietly.
It sure now feels that since Pence arrived in Irbil this past weekend shows the effects in what we are seeing unfold now and ever more fast.
They are opening a Branch of a Central Bank now in the Mosul area of Sulaymaniyah.
Reconstruction is going to be a major issue in the very short term.
We know there are tens of $ Billions worth of monies from Kuwait awaiting in the wings to do just that. A central bank branch is for banks to do business. Not for Hakeem and his family, lol.. It is for to facilitate trade in currency with other banks. Foreign currency too.
So by automating the process "the mechanism" electronically will be more efficient and accountable to meet the standards of the modern world less the corruption to a far better degree. Thus, the additional revenues, the additional transparency and security with that will support the value of the new currency that they are expecting to be distributed here shortly from the Central Bank branches out the the smaller banks, then to the populous at large.
That new branch will have new currency to issue to the banks around the immediate areas and will support them while the reconstruction efforts begin. imo ~ MM
#239
DELTA: The Central Bank agrees to open a branch in Sulaymaniyah
2019/11/26 10:57:33
Twilight News / The Central Bank of Iraq, on Tuesday, the opening of a branch of Sulaimaniya of the bank pending an official request to the Kurdistan Regional Government, while a number of Kurdish deputies asked the government of the region in this regard.
https://www.shafaaq.com/ar
Parliamentary Finance discusses with the Central Bank Governor the mechanism of selling currency
Economy 02:14 - 26/11/2019
Baghdad - Mawazine News
A parliamentary source said Tuesday that the Parliamentary Finance Committee is hosting the Governor of the Central Bank Ali Alaq and the Director General of the tax.
The source told Mawazine News, "The parliamentary finance committee is hosting today, the central bank governor on the relationship and the director general of the tax to discuss the mechanisms of selling the currency."
https://www.mawazin.net/Details.aspx?jimare=74288
MilitiaMan: The above looks to be an also very important piece of the reforms.. Tax mechanisms of selling currency? A topic I am not at all familiar with but, there are implications to it that stand out to me.
The director General of the Tax Authority from the Central Bank and Ali Alaq have had a meeting to discuss the matter. Well at this stage of the game I suspect it is for a very important reason or two.. They'll need to have in place, an exchange rate that is internationally accepted and one that can be defended in the market place from attacks, volatility, etc..
The new exchange rate will have buying and selling pressures that will need to be monitored very closely and with precision. The Forex is a big world! Liquidity is massive and the money movement is breathtaking in currency volume and cash numbers.
Taxes are used to for to earn revenues and to also support and defend currency in the market place. Very important for Central Banks!! Especially a Central Bank that is prepared to go international again.
I say that with confidence, as we know the Central Bank has discussed mechanisms back in March 2018. The talk about the Central Bank Law then and have more recently too.
It involves printing costs. It is my understanding from Delta that the subject is fairly clear in the books on the CBI site that shows the CBI has been having new money printed to the tune of about $160 million +- in cost over about 2 years running.
The interesting thing mentioned and noted is that about $55 million was since September 2019 whereas, usual monthly payments for currency were 5-10 million a month prior. That is one large move in the short term % wise.
Thus, his view of that coins are being or have been printed is now even more likely, as they are more costly to print or mint. imo ~ MM
The Minister of Finance reveals the details of the agreement with the region and the date of sending the budget to parliament
Baghdad and the Kurdistan Region have reached an agreement and the delegation of the region will visit Baghdad next week to participate in the committee, which is the final draft of the draft budget law 2020.
Barzani announces a third visit to the delegation of the Kurdistan region to Baghdad next week
Barzani said during the conference that "the relations of the Kurdistan region and Baghdad very good," adding that "the delegation of the Kurdistan Regional Government made two visits to Baghdad, and will visit again next week in order to reach an agreement on the issue of oil exports and the general budget."
MilitiaMan: The Kurds meeting twice now and will meet again for a third and finalization of the 2020 budget. Recall they just mentioned they had an agreement on the 2018 - 2019 budgets to roll into the 2020.
The amendment we heard about some time ago in the Financial Management Law ( FML) apparently will have been sorted to roll out the new changed 2020 budget that will be respective of a new exchange rate that will need to be defended by the CBI once it goes live.
The Kurds will need to be on board for the roll out, as it will directly effect every man woman and child in the country. The demonstrators know that all too well. It is about income to them too.
The citizens have been in the process of being educated on the new money that will be attached to the 2020 budget. The fascinating thing is that once Pence showed up, they got the lead out!
And we see results now. I suspect that Green light for the Kurds to sell oil outside of the 250 Barrels per day was a awake up call hence the mechanisms are now ready to be used electronically and in automation mode..
All these things above and below are geared for a new currency to be presented; i.e., taxes, tarrifs, payments, salaries and even the new currency. The rate will need to precede the 2020 budget prior to distribution of the new small category notes, coins and or fils.
BTW, the later of the three requires a strong currency and one that can be defended!! So it is a very exciting time we are in. So lets see what they do next.. imo.. ~ MM
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FA(Final Article) #106 10/08/2018
Call the relationship in Parliament next week and claims to be fined the cost of printing
The bank issued a clarification on the new currencies, indicating that it is entitled to determine the categories of coins and metals, paper and its dimensions, forms, material, content, weight and design.
"Article 33 of the Central Bank Law clarified the mechanism of issuing the currency," al-Asadi told AFP. "The new edition cost hundreds of thousands of dollars in change."
"The second point of Article 33 of the law of the bank says that {the Central Bank of Iraq is making the necessary arrangements for the printing of paper currency and coins and for the purpose of providing security and safety for the preservation of paper and metal coins that have not been issued) and we say whether the change of currency means that The old was unsafe? "
Al-Asadi considered the lack of reference to the status of the governor by proxy and writing only a governor in the currency, which is not in origin, "the introduction of the form is held accountable by law because, according to the Iraqi Constitution is supposed to vote on the original in the House of Representatives and Ali Alalak acting proxy and legally, if raised and Vtahal status and we are surprised by that. link