"Tidbits From TNT" Monday Morning 2-22-2021
TNT:
Cutebwoy: The Council of Ministers forms a committee to study the consequences of changing the price of the dollar
02/22/2021
{Baghdad: Al Furat News} The Council of Ministers decided, on Monday, to form a committee to study the consequences of changing the currency exchange rate, and to propose the required solutions as far as the matter is related to investment projects.
The General Secretariat of the Council stated in a statement that Al-Furat News received a copy of it, that “the committee is headed by a representative of the Ministry of Planning, and in its membership, besides the General Secretariat of the Council of Ministers, includes representatives from the ministries (Finance, Construction, Housing, Public Works, Municipalities, and Electricity) as well as the Authority. National Investment, the Central Bank of Iraq and the Iraqi Contractors Union.
She added, “The decision stipulates that the committee submits its recommendations within a month of work to the Council of Ministers.”
Tishwash: Parliamentary Finance: The budget discussions are over and the presidency is awaiting political consensus to pass it
The Parliamentary Finance Committee confirmed, on Sunday, the completion of all discussions on the budget and its amendments, and the matter turns into political consensus between the region’s delegation and the Shiite blocs, indicating that the matter is in the hands of the presidency and is awaiting agreement on the matter.
A member of the Financial Committee, Jamal Cougar, said to / the information / that "the Finance Committee has handed over the draft budget to the Presidency of Parliament and the matter is shifted from its powers to be included on the agenda for the purpose of voting on it."
He added that "the presidency awaits the resolution of the dialogues and consensus on it between the region’s delegation and the Shiite blocs," indicating that the region’s delegation is keen on the agreement of the two governments, which was rejected by the Shiite blocs and insisted on handing over the region to its imports.
Cougar explained that "passing the budget without the Kurds in the event that the Shiite blocs wanted that, then it takes two days before the session to enable the deputies to gather the majority and pass it," indicating that "negotiations are still ongoing until this hour despite the passage of 50 days. link
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Tishwash: The exchange of the dollar into two prices, starting from 120 up to 145 thousand: a "new plan" that is applicable to the end of the crisis in Iraq
It seems that the talk about the exchange rates of the dollar and its disparity will not end except with the approval of the general fiscal budget 2021 to serve as a fixed constitution on which things are going in the future until the new budget for next year.
Economic analyst Mustafa Sanad, in a post on social media and monitored by "Yis Iraq", says that when the Central Bank’s sales fell from $ 170 million to $ 3 million per day, within a month, imports did not stop, and the reliable story was that imports were covered. Of the dollars in the possession of citizens, groups and individuals outside the banking cycle, meaning that the role of banks that used to buy dollars from the central bank for the purpose of financing imports was a mere formality and it could be dispensed with.
Regarding the alternative, Sanad explains: The alternative is to activate the stock market, and the most successful ways are by contracting with an electronic cash company to implement an electronic market program for the dollar.
The Securities Commission (instead of the Central Bank) sells the dollar in a manner available to all, and the possibility is citizens, banks or suppliers Buying directly through a mobile application with a click of a button, transferring the account, and citizens can also buy each other or put the dollar up for sale without intermediation and a price difference, so the market within this screen that brings together sellers and buyers creates an equilibrium price for the dollar, provided that the Commission determines two prices When starting to sell, the lowest price (1200) and the highest price (1450), and you start with the lowest price upwards.
Thus, we are deporting the central bank from a task that is not among its tasks, which is the currency auction and the direction to achieve economic stimulus and the exercise of its primary role in monetary policy.
A bond is raised, asking how the state can finance its cash deficit if it sells dollars at a price less than 1450?
Answer: Since the state aims to finance 22% of dollar sales by raising the price from 1190 to 1450, the Ministry of Finance can be strengthened with 22% of new payment methods, pumped every month with government spending, this monetary increase contributes to raising the price of the dollar gradually without interference The state, through market mechanisms, supply and demand and increase the demand for the dollar in exchange for the limited supply of it, so the dollar gradually rises as it rose 6 months ago (before the exchange rate changed).
However, this increase does not affect the citizen’s purchasing power, as he is compensated by additional means of payment that ensure that economic activity does not stop or the citizen’s inability to purchase daily commodities, so the economic cycle continues to rotate, the state finances its deficit and the dollar reaches its real, undistorted price.
Regarding the segments covered by the stimulus, the economic analyst answers that the segments affected by the embargo, injustice, lack of access to work and the entitlements of farmers, contractors and owners of locally produced projects, with no prejudice to the salaries of employees and retirees, but goes beyond the matter to raise the salaries of low-income segments, indicating that the nature of these means of payment, Money is of different liquidity, and the state controls the degree of its liquidity and manipulates it according to market readings (inflation or deflation), concluding that these are code-breaking ideas that I give free to decision-makers.
A member of the Parliamentary Legal Committee, Representative Hussein Al-Oqabi, revealed that there was a majority in favor of keeping the dollar exchange rate at 1,450 dinars.
In a statement monitored by Yass Iraq, Al-Oqabi said, "We continue to press for the return of the dollar’s exchange rate to its previous position, or to seek to reach a middle settlement, especially since there are parliamentary parties who are adherent and convinced of the new exchange rate at 1450 dinars per dollar."
He pointed out that "the current efforts by a parliamentary grouping pay for the exchange rate to be at 1250-1300 dinars per dollar, but the matter has difficulties."
Al-Uqabi added, "The parliamentary majority adheres to the new dollar exchange rate, with government conviction in this direction, but we still have some time, but we are exerting pressure to reconsider the exchange rate or push to find compromises because the current price has caused an increase in prices in the Iraqi market by a percentage." 30% ”.
He continued, "There is indeed a parliamentary struggle between two parties about the matter between those who stick to the exchange rate and those who want to restore it to its previous position."
He pointed out, "Other MPs seek to find an equation that contributes to lifting the damage on large segments of the Iraqis and pushing for convictions that contribute to changing the exchange rate by an amount that reduces the burden on the shoulders of the poor and simple people."
A member of the Parliamentary Finance Committee, Sherwan Mirza, confirmed that "the new dollar exchange rate has not been manipulated by the budget, given that the country's financial policy has been drawn to the price that was mentioned in the bill."
He stressed that "Parliamentary Finance worked according to the powers granted to it in amending and replacing some of the items in the budget and the exchange rate from the government's authority, and we do not think it intends to change it."
In turn, a member of the Parliamentary Economy Committee, Mazen Al-Faili, affirmed that "the surplus of the oil price difference per barrel could contribute to maximizing revenues and filling the current financial deficit."
He explained in a televised interview that "the price of a barrel that was fixed in the budget reached $ 45 and the current price on the global market for Iraqi oil has reached $ 60, and this encourages going to a plan to reduce the exchange rate."
He added that "MPs proposed to go for an exchange rate of 1300 dinars against the dollar, as a compromise. The proposal is before the government now and reduces its powers and can be fixed in the budget." link
Tishwash: Iraq is looking for investors to build solar power stations
Iraq is looking for international investors to build seven solar power plants with a total capacity of 750 megawatts, as it seeks to develop the country's renewable energy potential.
The Oil Ministry said in a statement today, Sunday, that as part of Iraq's keenness to expand its small capacity for power generation, it is holding talks with some international companies, including France’s Total and “Norwegian companies”, to discuss building solar energy projects.
The statement added that all the seven solar power stations will be built in the south of the country, including a 300-megawatt station in Karbala.
The ramshackle national grid provides electricity for only a few hours a day, which makes Iraqis suffer greatly during the summer, when temperatures reach 50 degrees Celsius.
Solar energy is scarce in Iraq except for its use in lighting some of the country's main streets link
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Cutebwoy: A Kurdish leader announces a condition for handing over the region’s oil to Baghdad and approving the budget
{Baghdad: Al Furat News} The leader of the Patriotic Union of Kurdistan, Mahmoud Khoshnaw, announced a condition for delivering the region’s oil to Baghdad and approving the federal budget for 2021.
Khoshnaw said to the “Aalimstara” program broadcast by the Al-Furat satellite channel this evening that “oil cannot be delivered to SOMO without the presence of a Kurdish representative in accordance with the Iraqi constitution,” indicating that “the dispute between Baghdad and Erbil is not limited to the oil and energy file, but rather to many files.”
He called for “adopting the constitution as a basis for dealing with the center and the region, completing the system of government in Iraq and ending the negative influence that will cast a positive delusion on the understandings.”
Khoshnaw stressed, “The need for tremendous efforts and national will to reach a radical solution after zeroing in and settling crises. Going to legislate the oil and gas law will end the energy crisis in Iraq.”
He pointed out, “the instability of the political process throughout Iraq, the exclusion of negative influences, and the imposition of political will that will end the approval of the budget law, especially since there is a suitable atmosphere to meet Baghdad and Erbil, resolve disputes and end the opponent’s address and rule through the constitution.”
Khoshnaw continued, “the effective presence of the Kurdish negotiating delegation is in good progress and has made important strides in all articles, including the budget. Therefore, there must be a political agreement before passing the draft budget law in the midst of a flexible political environment to overcome crises.”
He stressed, “The necessity of adopting the foundations adopted by the family to al-Hakim and the political hawks to complete the government system; but there is fear that there will be a change in the political system from within and some losing their influential positions.”
He added, “The Kurdistan region is not stubborn and showed goodwill, and Baghdad has broken its promises, and the federal and local governments are responsible for the deterioration of services in the central and southern governorates and the injustice that has befallen Basra Governorate.”
Khoshnaw concluded, “The Kurdistan region’s share of the federal budget per month is one trillion dinars,” usually fairness to all Iraqi cities, “stabilizing the political system and the country,” adding, “We are looking for participation, not partnership, so if it is found, we will go towards it.”
Mot: ~~~ Uh Oh -------
Mot: ~~~ It Took Forever!!... But He Finally Caught on ~~~
