Saturday Night Frank26 Q&A and KTFA Members News 4-4-2020

KTFA:

Don961:  The Finance Committee comments on the central bank’s decision to stop the flow of the dollar

Politics 04/2020 17:34 3323    Baghdad today _ Baghdad 

The Finance Committee commented, on Friday, on the Central Bank’s decision to stop the dollar from flowing into the market with the aim of floating the dinar and reducing its value, in order to fill part of the budget deficit and the needs of the government.

The committee’s rapporteur, Ahmed Al-Saffar, said in an interview with (Baghdad Today) that “reading the intention of the central bank to stop the flow of the dollar and floating the dinar to fill part of the state’s budget deficit is impossible, but it may be in harmony with the current situation to compensate for the shortfall in oil revenues” .

Al-Saffar added, "At the same time, the central bank may also be unintentional because of the curfew and the suspension of most life activities."

And the rapporteur of the Finance Committee in Parliament, Ahmed Al-Saffar, spoke last Sunday about the authority of the Central Bank to issue a set of decisions on withdrawing the commission of the US dollar.

Ahmed Al-Saffar said, in an interview with (Baghdad Today), that "the decisions issued by the Central Bank regarding the commission of withdrawing the US dollar are considered within its powers and it is who determines the interest rate, whether by depositing or withdrawing."

Al-Saffar added, "Iraq’s revenues from selling oil go to the Ministry of Finance account at the US Federal Reserve, which the central bank has a branch in," explaining that "the process is that the revenues are transferred to the central bank account and the bank transfers it to the Iraqi dinar to the Ministry of Finance to pay salaries." employees".

He continued, "The process of withdrawing the dollar and depositing it relates to the policy of the central bank, which is monetary policy. The central bank has the right to raise or reduce interest rates, and this is one of the methods of monetary policy that you use."

On Sunday (March 29, 2020), the Central Bank of Iraq issued a set of decisions regarding the US dollar withdrawal commission.

And included a document issued by the bank and received (Baghdad today): "The commission for withdrawing cash for the US dollar, which comes from the incoming transfers to the bank to our accounts in the American Federal Bank, as well as the transfers received to banks from other banks by a rate of seven thousand."

The bank added: "The amounts of the above remittances are transferred to banks by (75%) in cash in dollars according to the above commission, and (25%) pay Iraqi dinars at the official bank rate (1182) dinars to the dollar."

He continued: "The banks must spend the (25%) above on their remittances customers at a price of (1200) dinars / dollars, and submit their requests at the end of each month to the accounting department at the central bank for the purpose of addressing the two price differences in our accounts in Iraqi dinars."

And he continued: "Banks can spend the full amount of the transfer received in the Iraqi dinar if the customer desires to do so.

He stressed, "The above mechanism does not include customer deposits in dollars in cash, where it is paid to the customer in full, but is limited to customers who receive remittances received from outside Iraq of any kind, and internal dollar transfers between their banks in our accounts." link

Don961:  Parliamentary Finance: The economic situation is very dangerous .. !!

 Economy  ,   3/24/2020 23:38   Baghdad - Iraq today:

The Finance Committee in the House of Representatives announced by one of its most prominent members that the economic situation in Iraq has become very dangerous, and it is not possible any setback.

It came in a publication released by Member of Parliamentary Finance and former Minister of Industry Eng. Muhammad Sahib al-Daraji, (Iraq Today) received a copy of it, that the state must take a package of quick decisions before it is too late.

Darraji has listed ten points:

 1. Change the exchange rate of the dinar gradually

 2- off the auction currency

3. Develop Platform for importing and stop some imports

4. The construction of the budget on the price of oil fixed and operating a moving budget for investment budget

5-postponement of dues of oil companies

6. sell coupons locally oil prevailing and buying after the price a year At the prevailing price then

7 - Allocating the budget to salaries, purchasing the ration and medicines, and sterilizing water and the educational process only

8 - The state imports commercial foodstuffs to the markets

9 - Negotiating to stop the payment of external debt

10 - Handing over the protection of the border ports of the anti-terrorism agency   LINK

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Don961:  Central Bank of {Al-Sabah}: the appreciation of the dollar exchange will end very soon

Saturday 04 April 2020 Baghdad / Hoda Al-Azzawi

 The Central Bank of Iraq revealed the implementation of several steps to control the rise in the exchange rate of the dollar in the markets, most notably the opening of outlets for sale and the strengthening of banks in the hard currency, while it is likely that the rise in the exchange rate of the dollar against the local currency will end this week.

 In conjunction with this, specialists see in the financial and banking affairs, this rise "temporarily" due to the current conditions related to the ban and lack of communication between the provinces, with the presence of some speculative mechanisms by weak souls.

 And recorded the exchange rate of the dollar in local markets during the past days, up to sometimes from 126 to 128 thousand dinars per 100 dollars.

The appearance of Mohammed Saleh, economic adviser to the Prime Minister, said in a special statement to "Al-Sabah": The high dollar exchange rate is linked to the current conditions related to the embargo and lack of communication between governorates and merchants and the absence of information efficiency, indicating that this has caused price deviations to exchange the dollar. 

He expected that this problem is "temporary" and related to the relatively closed borders, especially as it is not related to Iraq only, but to most of the countries of the world.

For his part, the Director of Information and Relations at the Central Bank, Acer Jabbar, told Al-Sabah that the central regulates monetary policy inside the country, explaining that the rise in the exchange rate of the dollar in the markets is linked to three reasons.

The first relates to the hoarding of the dollar by citizens, The second is the hoarding by the merchants for trading in trade. The third reason is related to the closure of banks and banking companies due to the ban.

He added that the central bank implemented a number of steps to control the exchange rate of the dollar by opening the window for the sale of hard currency, while instructing the bank employees to join and strengthen banks in the electronic dollar, not cash, and the dependence of traders on the transfer, so that some would not resort to searching for the dollar in the black market.

And revealed the presence of some weak souls speculating in dollars, so the central bank will try and in any way to curb this huge disparity and we expect this week to solve this issue related to the high dollar prices.

In turn, between the economic researcher Jaafar Baqer Alloush Al-Waeli, in a special statement to "Al-Sabah:" "The current rise in the exchange rate of the dollar is not a real rise as long as the Central Bank of Iraq did not resort to re-evaluating the exchange rate, but rather organized the process of withdrawing the dollar from His accounts in the US Federal Reserve Bank for deposits incoming to Iraq and pay 75 percent in dollars at 1118 and 25 percent paid in local currency at 1120 exchange rate, and this matter is limited to inward deposits and to clients of the central bank and banks exclusively approved.

And he confirms that the current rise in the exchange rate of the dollar from 1119 to 1128, then the decline has returned to 1126, i.e. an increase rate of 6 percent, which is an emergency rise due to the conditions of the ban, curfews, closing shops and small outlets with limited trade restrictions, except for food and necessary commodities, pointing out that Significant decline in oil prices has created a negative obsession for the citizen and has pushed a lot to move towards keeping the dollar as savings.

He believes that this rise will affect the daily transactions denominated in dollars and the prices of commodities that involve under these transactions, and that good signals for recovering oil prices and reaching $ 30 per barrel will allay some fears and the conditions of pressure on the excessive rise of the dollar will fade significantly, but remain for the changes that occur in The bases of the days are the decisive judgment in the directions of the dollar exchange rate, as well as the extent of its effect on the inflation rates or real price and income levels, and thus on the livelihood of citizens. "

To that, a member of the Parliamentary Investment and Economy Committee Nada Shaker Jawdat told "Al-Sabah" that the dollar exchange rates rise in light of these conditions that Iraq and all countries of the world go through naturally, but that will be reflected on the poor communities due to the high prices of goods and materials resulting from the dollar's rise.

It indicated, we need an insight from the government and its experts towards stabilizing the exchange rates of the dollar, so that it does not reflect negatively on those with limited incomes and poor societies.

Jawdat called on the government and the central bank to maintain the exchange rates of the dollar and provide cash subsidies for citizens to complete their personal requirements, which are not only related to the food basket, but personal belongings such as health supplies and medicines.  link

Samson:  The international coalition hands over its positions at the Habbaniyah base to Iraqi forces

4th April, 2020
On Saturday, the international coalition forces surrendered their area within the Air Force Base from the Joint Task Force - Operation Solid Torque to Iraqi forces.

Brigadier-General Vincent Parker, Director of Sustainability Affairs at the Joint Task Force - Operation Solid Resolve said that moving the base of progress (Habbaniyah) is another advanced step toward the ongoing partnership between the Iraqi security forces and the international military coalition against ISIS.

He also said that during the past month the international coalition handed over four bases to the Iraqi forces.   LINK

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Samson:  International Alliance: We delivered $ 3.5 million in equipment to Baghdad and 500 military personnel will leave Iraq

4th April, 2020

A coalition spokesman, Colonel Miles Cogens, announced on Saturday that the coalition forces handed over $ 3.5 million worth of equipment to the Iraqi government.

"The coalition is leaving the al-Takadum air base (Habbaniyah) and transporting equipment and buildings, including approximately $ 3.5 million, to the Iraqi government," Ciggins said on Twitter.

He added, "500 members of the coalition will leave," noting that "the Iraqi security forces were and are still able to confront ISIS in Anbar Province." LINK

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Don961:  Deputy: The net of Iraq from selling a barrel of oil has become $ 13 .. and it is far below the salary insurance ceiling

Economy 04/04/2020 13:50 305 Editor: am   
Baghdad today - Baghdad

Member of Parliamentary Finance Committee, MP Ahmad Hama Rashid, revealed on Saturday (04 April 2020) the net sale of Iraqi oil barrels at the present time, while determining the price that secures the provision of employees salaries after the oil money goes to the federal budget.

Rashid said in an interview with (Baghdad today), that "the price of selling Iraqi oil in global markets reaches 22 dollars today," noting that "9 dollars are deducted from each barrel as different costs, so that the net sale remains 13 dollars per barrel entering the country treasury." .

He added, "The figures show the size of the huge material damage to the collapse of oil prices, especially since the price of a barrel at 31 dollars is what secures the provision of employee salaries according to the current production."

Regarding the basic income of citizens, Rashid stressed, "The basic income is a simple financial program based on the idea of ​​distributing an equal financial share to all Iraqis, regardless of their segments, which are best suited to the current situation, especially with the collapse of global oil prices and the challenges of the Corona virus, these matters need to have a government In order to push towards the adoption of an emergency budget, to pull the country out of its current crisis. "

He explained, "The basic income depends after securing the salaries of employees and supporting the health institution, and it will provide money for all citizens, including the poor, to purchase their basic needs, and leave the citizen free to buy what he wants, but the card file represents for years one of the largest corruption files in the country."

He pointed out that "pushing the citizen to buy what he needs and rely on local production will lead to providing endless job opportunities, especially with real implementation of the term of protecting national production, and opening the doors of investment in all sectors, to secure the needs of the people from materials and goods."

Oil prices fell on Friday, after yesterday had recorded its biggest gains for one session ever, as prices jumped more than 20%.

On Thursday (02 April 2020), the Kingdom of Saudi Arabia called for an emergency meeting of the OPEC alliance and other countries in order to rebalance the oil markets. After that, the Minister of Oil, Thamer Al-Ghadban, confirmed that Iraq supports Saudi Arabia's call for an urgent meeting of OPEC, and the return of stability in the oil markets. link

Frank26:  4-4-2020. Q&A

This video is in Frank’s opinion only

https://www.youtube.com/watch?v=3Z9q3aiq3nE&feature=youtu.be