MilitiaMan Sunday PM "Digital Payments Are Imminent" 11-14-2021
KTFA:
MilitiaMan: So it says, Iraq is likely that they will pay the last part of the compensation plan to Kuwait in the last quarter of this year.
Well we are in the last quarter and have been for a couple weeks now. Notice they tell us "previously" that the payment will end in the first quarter of 2022..
Well, they moved it up to this last quarter and it has the potential to even have been paid by now or shortly here to come.
Do to the relatively minimal amount owed, it would not surprise me at this stage if the amount needed to be sorted for to have the Chapter VII designation lifted, they would find the money. If that meant taking it from proceeds or clawed back monies they have outstanding that far exceed the amount necessary. imo ~ My take is this is not an issue.. imo.
Definitely a welcoming event no doubt.. ~ MM
Samson: International experts announce a new amount for the remainder of Iraq's compensation to Kuwait
14th November, 2021
The International Experts Committee announced today, Sunday, an amount different from what was announced recently from the remaining compensation from Iraq to Kuwait, explaining that the remaining amount of those compensation is 476 million dollars, while it is likely that the full compensation will be paid in the last quarter of this year.
The Compensation Committee had previously indicated on its website on October 31, 2021, that the remaining amount to be paid from these compensations amounted to 324 629 million US dollars.
The financial advisor to the Iraqi government, Mazhar Muhammad Salih, said in a previous statement to Shafaq News Agency, that the remaining compensation from Kuwait is 600 million dollars, after paying compensation for the third quarter of the current year 2021, and that these compensations will end in the first quarter of 2022.
The Committee of International Experts said, in a statement received by Shafaq News Agency, that "after paying the third quarter payment for the year 2021, the amounts of deductions paid to the Compensation Fund for Oil Exports and deposited for the next stage amounted to 153 million dollars," noting that "the amount required to be deducted from Iraqi exports. Oil and gas is $476 million.
And the committee added, “With the continuation of the level of global oil prices at what it is now, and if the relevant Iraqi authorities and the ministries of finance and oil and the Central Bank completed payment in return for the in-kind payments to the oil companies that have service contracts, and the Kurdistan Region contributed to the consequences of its oil exports for the past period, the amount of compensation will be finally paid in the last quarter of this year.
The head of the Financial Experts Committee, Abdul Basit Turki Saeed, had called on the Security Council, in his speech before the Compensation Board of the United Nations at its 88th session, held at the United Nations headquarters in Geneva, that the compensation file include a clause that protects Iraq from any future claims for the Kuwait war and that Iraq be expelled completely from the provisions of Chapter VII of the Charter of the United Nations and canceling the consequences of all decisions on Iraq as soon as it pays the amount of compensation.
Iraq must deposit 5 percent of its export revenues from sales of oil, its products and gas, before reducing it to 3 percent in 2018 in a UN fund established under the name of the United Nations Compensation Fund.
In 1991, a UN Compensation Committee was formed, obligating Baghdad to pay $52.4 billion in compensation to individuals, companies, governmental organizations and others, who incurred losses resulting directly from the invasion and occupation of Kuwait. LINK
Zeeman: iraq oweing 475 million left to kuwait and could be paid in full is a very big deal
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The Iraqi government justifies the reasons for adopting a new exchange rate for the dollar
14th November, 2021
Today, Sunday, the Iraqi Ministry of Finance clarified the reasons for adopting a new exchange rate for the US dollar against the local currency, noting that this came to supplement national production, protect the central bank's reserves and support the budget.
In a statement received by Shafaq News Agency, the Ministry of Finance said that, during the past three years, it has borne the burden of a stifling financial crisis that threatened the state's ability to fulfill its obligations that were already burdened by a large legacy represented by the inflation rate of public spending and the rise in the wage bill, which threatened to secure the salaries of its employees, in light of the low Sharp global oil prices and a dangerous health situation due to the consequences of the Corona pandemic on the national economy and its repercussions on the economic reality and the social fabric.
The Ministry of Finance indicated that the general budget continues between the need for a wise public financial management with its obligations to ensure the protection of the weakest and most needy groups, pointing to the support of the international community for the policies of the Ministry of Finance, as the International Monetary Fund and the World Bank approved public financial management under difficult circumstances. Extremely.
In a previous statement, the Iraqi Ministry of Finance issued, on the fifth of last October, a clarification regarding the exchange rate of the US dollar, noting that changing it worked to "stop the fall of the reserve currency and enhance import capabilities."
The indicators showed, according to the financial statement, a clear improvement in commercial activity in the past nine months of the current year 2021 in light of the crisis of the spread of the COVID-19 virus, and it also helped to stop the penetration of the Iraqi market and flood it with cheap goods that curb attempts to upgrade local production.
It is noteworthy that the Central Bank of Iraq, on December 19, 2020, officially announced the amendment of the foreign exchange rate (the US dollar) to be 145,000 dinars for every $100, according to the state’s general budget for the year 2021 approved by the House of Representatives.
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Announcing a gradual recovery. Finance issues an important statement on the Iraqi economy and the dollar exchange rate
11/14/2021 12:03:57
The Ministry of Finance justified its adoption by raising the exchange rate of the dollar "to supplement national production, protect the reserves of the Central Bank of Iraq and support the budget."
And she said in a lengthy statement that the agency {Euphrates News} received a copy of it: “The Ministry of Finance has borne the burdens of a stifling financial crisis during the past three years that threatened the state’s ability to fulfill its obligations that were already burdened by the burdens of a large legacy represented by the inflation of the public spending rate and the rise in the wage bill, which threatened the insurance of salaries of its employees, in light of a sharp drop in world oil prices and a dangerous health situation due to the consequences of the Corona pandemic (𝗰 𝗰 𝗰 table𝗱-19) on the national economy and its repercussions on the economic reality and the social fabric, the Ministry of Finance continues to balance the need for prudent public financial management with its obligations to ensure the protection of the most vulnerable and the neediest.
She indicated the support of the international community for the policies of the Ministry of Finance, and the International Monetary Fund and the World Bank approved the management of public finances under very difficult circumstances, and the World Bank issued its semi-annual report on the Iraqi economy, which the Ministry reissues below for the benefit of the honorable public.
The Iraqi Economy (Reality and Prospects)
Economic growth has begun to recover gradually following the downturn caused by the Corona pandemic last year, in part due to the increase in non-oil activity. It is expected that the improvement in the global oil market conditions will boost economic growth in the medium term and turn financial and external balances into surpluses from 2021, to reverse the recent rise in debt.
The main downside risks are due to potential epidemiological developments, fluctuations in oil prices, setbacks in the security situation, and impeding the implementation of economic reform.
Main conditions and challenges
Iraq is one of the most oil-dependent countries in the world. Over the past decade, oil revenues accounted for more than 99% of its exports, 85% of the government budget, and 42% of GDP, an excessive dependence on oil that exposes the country to macroeconomic fluctuations.
The Corona pandemic had a significant impact on Iraq’s GDP in 2020, which shrank by 15.7%, and budget revenues shrank by 9% to reach 32% of GDP, which led to a sharp decline in public spending and investments.
As of January 2021, the unemployment rate increased by more than 10% than it was before the pandemic, which was 12.7%.
Concerns related to food security persisted despite the recent increase in families receiving social benefits from the government, primarily the salaries of the social protection network and food rations from the ration card system, as well as the efforts made to provide vaccines to treat the Corona epidemic.
While the economic conditions in Iraq are gradually improving with the recovery of international oil markets, this recovery is also fraught with major risks posed by structural constraints, including public investment management constraints that have affected the delivery of public services, and the slow repayment of overdue debt, especially those related to wages. The public and state-owned banks and the Central Bank of Iraq bear the burden of sovereign debt. Not to mention the fragility of the political situation, the weak health care system, and endemic corruption that continues to foment unrest across the country.
The white paper is a comprehensive framework for addressing dependence on oil and structural problems, and represents a medium-term strategic framework for comprehensive economic reform decisions.
Recent Developments
The economy is gradually recovering from its double shock in 2020 represented by (the drop in oil prices and the outbreak of the Corona pandemic), as the statistics indicate the GDP by 0.9% for the first half of 2021, and the growth of the non-oil economy by more than 21% in the first half of the year 2021, and this is due to the strong performance in the service sectors after easing measures to prevent the emerging corona virus, after the spread of the vaccination campaign and the decrease in infections. This recovery reduced lagging in the oil sector, by 10% in the first half of 2021, as Iraq adjusted its share in OPEC early in the year. Since then, OPEC has gradually increased the production share of member states, which was reflected in an increase in GDP. The general and core inflation rate in Iraq in the period from January to July 2021 reached 5.2% and 6.2%.
The financial statements for the first half of 2021 show significant gains in budget revenues (42% increase) as the average export price increased by at least $64 per barrel. These budget gains were also multiplied by the financial effects of last year's devaluation.
In addition, the reforms of the General Customs Authority and the General Tax Authority contained in the 2021 budget law have begun to bear fruit, as sovereign revenues increased by 53% than they were previously. Which contributed to reducing the public budget deficit.
Externally, the current account deficit also turned into a surplus of 4.7% of GDP in the first quarter of 2021, which contributed to the rise in the total official reserves of the Central Bank of Iraq by about 5 billion US dollars to reach 58.5 billion US dollars in the first quarter of 2021 compared to $54 billion at the end of 2020.
A future vision:
The prospects for the Iraqi economy have improved with the recovery in global oil markets, but the spread of new coronavirus variables and climate change challenges pose new risk factors. The economy is expected to gradually recover on the back of higher oil prices and an increase in OPEC production quotas that are due to be phased out in 2022. Oil GDP will be the main driver of growth in the medium term. It is expected that the non-oil GDP will improve, but it will remain with an average growth of less than 3% between the years 2021-2023 due to the mutated generations of the Corona pandemic, in addition to the challenges facing the Iraqi economy, foremost of which is the lack of water and electric power, which affects agriculture and industry.
The high indicators of the poverty line, which were linked to a direct relationship with the rise of the Corona pandemic, in addition to some of the social turmoil facing Iraq for years, require appropriate planning to achieve effective social goals.
MilitiaMan: There is a lot more going on in this one than just the devaluation. The devaluation was a necessary evil if you will to fix the crisis they were in.
The IMF, World Bank, CBI, etc., all had a hand in the process to get Iraq out of shocks and crisis's. The hard part was it was at the expense of the citizens and more so to the poor for the last 9 months real close. The explain all that.
They also tell us there has been significant improvement and that effectively now is not the time to be impeding the economic reforms.
The reforms they are talking about are comprehensive reforms that are to be activated.
The reforms are multi-faceted. The include things such as; the digital transformation, the implementation of the e-government, e-commerce, e-payments and e-settlements, digital clearing of digital currencies, etc..
They are all at the phase of activation and apparently some of the items are in motion now, as noted by the increase in revenues at the General Customs and Tax Authority. They increased by 53%. I'll bet those that had a hand in grafting cash, no longer can. Imo.
The main thing is there comes a time when the hard part is over. What we are witnessing now is they are effectively saying, now is the time for the comprehensive reforms kick in.
Don't impede them. In other words, stay the course and move forward into the international realm of trade and on a level playing field. The Customs and Tax Authority is showing us they are playing on that field. It is now likely more automated and ready for digital interconnectivity. By the successes they speak of reeks of them saying it is time to fly the coup.
The Economic Forum is to be starting in a few days in the UAE. From 11/17/2021 - 11/20/2021 and it is to be on many financial issues..
A key one that is mentioned is an agenda item about Foreign Currency. Iraq is to be internationally accepted and not at a program rate. The digital transformation will require it.
The Digital Dinar will require it. Just as the IMF and AMF, too. imo. Will they go prior to? Don't know. Will they wait and go prior to the CBI and Saudi Arabia bank branches open around the 11/19/2021? I don't know.. But, the study we have suggests there is something a foot.. lol imo
Lastly, the CBI told us on 10/31/2021 they have a new digital system in place that is one of the first kind in respect to the Digital Transformation the Globe is experiencing.
The CBI told us that digital payments were to be imminent. Well, the CTI Supreme Super Oil Tanker arrived that same day. It was filled with Iraq oil heading now to China, full.
That oil will or would have to be paid for at some time. Things that make international trade very interesting. When and at what terms? Another, I don't know.. But, I am sure upwards of 2 million barrels is not cheap.. imo We shall see... ~ MM
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https://economy-news.net/content.php?id=26664
"The two conferences will be attended by a group of official and legal personalities, international political leaders, central bank governors and CEOs, senior economists and senior bankers from around the world, specialists and workers in the field of trading in global financial markets and sales representing foreign currencies, interest rate products, stocks, and fixed income, goods and others."