"Tidbits From TNT" Friday Morning 5-27-2022

May 27

TNT

Tishwash: Former MP: The Government And Some Parties Are Seeking To Violate The Financial Management Law By Seeking To Pass “Food Security”

The former MP, Rasoul Radi, confirmed that the government and some political parties are seeking to violate the financial management law and go towards passing the “food security” proposal, despite the financial exaggerations in it.

Radi told Al-Maalouma, "The 2022 budget is ready and it can be submitted by the new government in order to vote on it, and to move away from the proposed law on emergency support for food security."

He added that "the caretaker government does not have the right to work on presenting the 2022 budget, as it does not have any authority to take such a decision, but the law allowed it to go towards internal or external borrowing, where the Minister of Finance has the right to borrow from the central bank and then that is repaid." After the vote on the budget in the era of the new government.”

And he indicated that "some parties and the current government are seeking to pass the proposed food security law, away from the financial management law, in order to give 8 trillion to the liberated areas, and more than that to the ration card, while previous budgets included an amount not exceeding 2 trillion, which confirms that there is an overrun on public money." obscenely.” link

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Tishwash: The rise in Iraq's cash reserves to more than 70 billion dollars .. How will it affect the citizens?

Iraqi Finance Minister Ali Allawi issued a statement, and said that the country's cash reserves are expected to rise to more than $90 billion by the end of 2022, noting that this is a record level for Iraq.

And he said Yesterday, Thursday, the "reserve Of foreign currency amounted to 74 billion dollars distributed geographically between 8 to 9 major countries of various forms and assets, "while noting that the Iraqi economic situation is very excellent compared to the countries of the region and the neighborhood.

He added, "This relatively high level makes Iraq He is in a comfortable position in terms of the adequacy of the level of foreign reserves," reassuring "about the level of Iraq's foreign reserves," stressing that "the economic situation is very comfortable," calling on government agencies to exploit this financial abundance.

At the end of last year, he said Central Bank of Iraq Foreign exchange reserves have risen to $64 billion, from $48 billion since Baghdad devalued its currency in December 2020

How will altitude affect?

Explains the economic advisor to the Prime Minister, Mazhar Mohammed Saleh The extent of the impact of the rise on citizens, and the financial and economic situation in general in Iraq.

Saleh said in an interview with Alsumaria News, "The main and primary task of the Central Bank is to stabilize the currency and maintain the value of the Iraqi dinar against the rest of the currencies due to the ability of the Central Bank to intervene in the market and control the levels of the Iraqi dinar and has high flexibility to comment and thus control the exchange rates for long periods In addition to controlling income stability, it also has the ability to support the economy through financing foreign trade.

He added, "What is supposed to be during the next stage of a reserve rise? The monetary policy that there is a process of balance between the level of financing and development steps and the means of production,” noting that “consumer imports should be regulated on the grounds that they do not provide anything for development, and we hope that the private sector will be oriented towards productive import.

” directing the private sector to import production,” explaining that “the fiscal and monetary policies in Iraq They are advanced policies and we do not expect them to exist in many countries of the world, but they need to move, organize and direct and unify efforts, especially political ones, to support monetary and financial policies in order to develop and support the wheel of development in the country instead of placing obstacles that could cause harm instead of benefit to the economy Iraq

He stressed that "the basis of economic and financial reform should be objective and practical, and we believe that the white paper is the main means for correcting future policies, but it needs application and cooperation among all to achieve its goals set in an optimal and correct manner.

Reaching the central bank’s reserves at a threshold of more than $70 billion will strengthen the structure of the local economy and its position globally, but the challenge of ill-considered and unproductive spending remains the biggest challenge The increase in the value of the Iraqi dinar will make it a competitive currency that will help lower the prices of commodities and foodstuffs in the markets.

The Minister of Finance indicated that the total external and internal debts amounted to more than 99 trillion dinars (67.8 billion dollars). link

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Kaseyko1: From everything I've been reading, it seems like they are trying to work out an agreement on the pres & pm positions before acting on the food svc law. Seems like they may be wanting to open up the budget completely with the formed govt.

KaseyKo1: It's up in the air - in my opinion - whether they will try to form a govt before the Oct date set for an election or just pass the Food Service law.

Yada: In the consideration of the Food service law being voted in, wont matter to us how long it takes to form their government because we will have been exchanged.

KaseyKo1: The UN Security Council decided, on Thursday, May 26, 2022, to extend the tasks of the UN Mission to Iraq (UNAMI) in the country, until March 31, 2023." "The Security Council called on the United Nations envoy to Iraq, Jeanine Plasschaert, to support the two governments in Baghdad and Erbil In order to work together to reach a national dialogue to resolve outstanding issues."

KaseyKo1: No one should be a/u over issues right now. A lot of good things are happening! We are in a very good place for the exchange to happen. Of course, it does appear that the UN envoy may have helped matters along a little.

RVAlready: I suspect a lot is happening behind closed doors, that will just pop without notice. And we will be done. Time to cut that RV loose.

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Tishwash: Dollar reserves reach 90 billion, ringing the doors of the exchange rate

Calls are rising among the popular and political circles, to reduce the exchange rate of the dollar against the dinar, after the foreign currency reserves in Iraq witnessed a jump during 2022, thanks to the rise in global .oil prices Finance Minister Ali Allawi said that the country's cash reserves are expected to rise to more than $90 billion by the end of 2022

Noting that this level is a record for Iraq He added that the recovery in oil prices and prudent financial management helped the reserves to become 70 billion .dollars by April After Allawi's statement, Representative Mahmoud Hussein al-Qaisi said that merchants are taking advantage of keeping the exchange rate high despite the recovery of foreign currency reserves in Iraq, to raise the value of goods .by several times their real price Al-Qaisi's tweet represented an explicit call to reduce the exchange rate, after its rise revived the dollar's reserves in .the country

Writer Yassin Al-Yasiri believes that it is time for the exchange rate to return to what it was in the past, after its rise .achieved many positives for the state treasury, and negatives represented by the crises that afflicted the citizens Financial market experts emphasized that reaching the central bank's reserves at the threshold of $70 billion would .strengthen the structure of the local economy and its global standing But the challenge of ill-considered and unproductive spending remains Iraq's biggest economic challenge, and the step of raising the value of the Iraqi dinar, if achieved, will make the dinar a competitive currency that helps lower the .prices of commodities and foodstuffs in the markets.

According to the experts And the Iraqi cash reserve recorded during the second half of last year more than 60 billion dollars, after it was 51.9 .billion before the start of the reform measures of this government At a time when official data indicate that Iraq's cash reserves are close to 90 billion dollars, the external debt rates amounted to about 20 billion dollars, which are very good rates compared to its share of Iraq's gross domestic product .of 180 billion dollars, representing only 11% Comparing the hard currency reserves in Iraq with the external debt, means that the rise in reserves will enable Iraq .to pay what it owes to the creditor countries, in addition to solving the financial crises inside the country

At the present time, the Iraqis are hoping to return the exchange rate to what it was before to return the markets to .normal after the crisis that resulted from the depreciation of the Iraqi dinar against the dollar link

Mot: -- Dang!!! - Finally!!!! ~~~~~