"Tidbits From TNT" Monday Morning 2-14-2022

Feb 14

TNT:

Tishwash: Al-Kazemi’s advisor: The rise in central bank reserves ensures the stability of the dinar

Adviser to the Prime Minister Mazhar Muhammad Salih stated, on Monday, that the rise in the hard currency reserves of the Central Bank of Iraq guarantees the stability of the local currency.

Saleh said in an interview with Shafaq News Agency that "the reserves of the Central Bank decreased during the last period due to the health crisis and the financial crisis in 2020," noting that "the monetary policy of the Central Bank was balanced and was able to restore these reserves by more than 23 percent at the present time, to reach 64 Billion dollar".

He added that "the rise of the hard currency gives a positive signal to the Iraqi economy and gives precautionary reassurance to the stability of the Iraqi dinar," noting that "the issue is being monitored over the long period and its importance in defending the value of the dinar and stability in the service of monetary policy goals, stability of the currency value and reducing inflation."

Saleh stressed that "the monetary policy is currently a rational, balanced policy that has managed to maintain the value of the dinar and the stability of the reserves, and there is a constant monitoring of the situation," noting that "in the short term, we cannot do anything just raising the amount of reserves and maintaining them, but in the long term it is considered a safety valve." of the Iraqi economy.

Saleh pointed out that "the size of these reserves depends and is linked to the monetary blocs also what is called the monetary basis. There is a proportion and proportionality that must also be achieved, so monetary policy studies its proportions and amounts accurately, so it monitors the movement of the Iraqi balance of payments from a deficit or surplus and the status of reserves and their strength and preservation, liquidity, size and all Variations are not easy and take time and scope.

The Deputy Governor of the Bank, Ihsan Shamran, had revealed to Shafaq News Agency, that Iraq's reserves of hard currency, which includes the cash currency of the dollar, the euro, sterling and other other foreign currencies, in addition to the gold reserves have risen to more than 64 billion dollars. link

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Tishwash: An Economist Clarifies The Fate Of The 2022 Budget Under The Caretaker Government

The economic expert, Nabil Jabbar Al-Ali, ruled out, on Monday, passing the financial budget in Parliament in the event that it is sent by the caretaker government, noting that the constitution provides for its submission by the original government exclusively.

Al-Ali said in a statement to "Al-Maalouma", that "sending the 2022 budget by the caretaker government is a mistake, and it is unfair to the next government."

He added that "the draft budget is one of the most important tools of the government program for the new government," noting that "the important part of the 2022 draft budget is the investment part, which is about 30% of the projects."

Al-Ali pointed out that "the new government is concerned with sending the budget to Parliament and approving it under spending legislation."

Member of Parliament Jamal Cougar had previously considered the request of some independent deputies to send the budget to Parliament as ignorant of the constitution, suggesting that the 2022 budget will be for eight months. link

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Tishwash: Government advisor: Iraq's money abroad is surrounded by a high legal fence

A financial advisor to Prime Minister Mustafa Al-Kazemi reassured about Iraq's funds and assets abroad.

Mazhar Muhammad Salih told {Euphrates News}: “Since the issuance of UN Security Council Resolution No. 1483 in May 2003, the United States has linked Iraqi oil to the compensation for the Kuwait war, and that the money is placed in the Federal Reserve Bank in New York. Iraq has been since 2003 and until 2013 is protected by US Presidential Order.

And he indicated that "this decision protects Iraq's money from any legal claims or lawsuits brought by creditors."

Saleh noted, "The United Nations issued a resolution in 2010 to lift protection, and Iraq's funds and revenues remained stable and surrounded by a high fence of legal protection, and Iraq's funds remained protected."

US President Joe Biden's decision, which he signed last Friday, to dispose of $7 billion of the frozen assets of the Afghan Central Bank and give part of it to the victims of the September 11, 2001 attacks, raised Iraqi fears of a similar behavior by the US administration towards Iraqi funds in the United States.

But the Iraqi government dispelled these concerns about Iraqi assets and said that "it cannot happen to Iraq as it happened with Afghanistan, because relations with the United States are good and normal."
A government advisor to Al Furat News stressed, "Dealing with the Iraqi financial system and in the United States on a regular basis, and that Iraq has ambitions for high stability," noting that "our relations with America are sufficient to stand up to any such demands." link

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