Walkingstick and KTFA Members Friday Afternoon 3-6-2020

KTFA:

Grimmbone1: I was just wondering, why go to the expense of printing and minting the new small denominations if the aim is to be ‘cashless’? Or, would the electronic payments be an intermediary while the new notes and coins are introduced and become popular with the citizens?  

Walkingstick:  Fwiw( for what its worth)   Cashless, does not necessarily  indicate what the term implies...  Today, it merely indicates cash is not generally accepted.. As with Sweden ( often referred to as cashless) known as the world's leader in becoming the first completely cashless country... Yet, roughly 15% in form of payments or purchases are still on a cash bases... Still, unknown... if they will be successfull in becoming completely cashless... It is a process that must be widely accepted by the people, many do not...

In comparison, with Iraq... A country where people hoard cash in their homes, reluctant to open bank accounts, prefer cash as a form of payment, slow at regaining trust in banks, and is a central hub for trade in the region.. the list, goes on... Highly unlikely,  Iraq will ever become a true cashless society ....

Regards......

Suzie:  Has anyone ACTUALLY seen the coins and NSCN yet?  I don't think they're in use yet, and I think it will be a LONG time before Iraq would/could ever go cashless, just my opinion.  

Hammy14:  suzie, we've been told the nscn's are now at the banks and also now are loaded into the ATM's ready for distribution to the general public.  So yes, someone has seen them, if only the bankers themselves.  Now, as we also know for a fact, these new notes cannot be issued for use until they change their exchange rate and increase the value of their currency.  Therefore, it stands to reason that the coming launch date for the new notes and the new exchange rate must be close, otherwise why would these new notes already be out into the banks and ATM's?  IMO

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Samson:  The central bank is fully insured by Corona virus

6th March, 2020

Today, Friday, the Civil Defense Directorate implemented a campaign to sterilize the entrances and exits of the Central Bank of Iraq in Baghdad, to prevent the spread of the Corona virus.

A source in the civil defense media / Al-Rusafa confirmed to Alsumaria News that the central bank is now fully insured from Corona Virus.

The Civil Defense Directorate is working in cooperation with health authorities and security services to fumigate and sterilize departments and institutions of countries to prevent the outbreak of the new Corona virus.  LINK

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Samson:  The Asian Development Bank talks about the effects of corona on the global economy

6th March, 2020

The Asian Development Bank (ADB) said today, Friday, that the spread of the Coruna virus will reduce economic growth in Asia and around the world this year.

The respiratory disease (Corona virus), which can develop into pneumonia, has killed more than 3,200 people worldwide and affected global markets and economies.

The Manila-based bank said that the spread of the virus could reduce global gross output by between 0.1% and 0.4%, and cost the global economy between 77 and 347 billion dollars.

The bank indicated that the spread of the Corona virus could lead to sharp declines in domestic demand, tourism, business and trade trips, and production links, as well as disrupting supplies, which would hurt growth in Asia.

The global spread of the new coronavirus has dashed hopes for stronger growth this year, and global output growth in 2020 will shrink to the lowest pace since the financial crisis in 2008 and 2009, IMF Director Kristalina Georgieva said Wednesday.

The World Bank has announced that it will provide $ 12 billion in urgent financing to help developing countries improve health services, monitor disease, and provide medical supplies and working capital for companies.  LINK

Samson:  Egypt plans to print an environmentally friendly currency

6th March, 2020

The Deputy Governor of the Central Bank of Egypt, Gamal Negm, announced today, Friday, that the bank will start printing a 10-pound plastic coin of "polymer".

He pointed out that the new currency will appear during the coming period, confirming that the plastic money is distinguished by that it lasts 3 times the shelf life of its paper counterpart.

According to experts, plastic money is characterized by flexibility, durability and less fish, and allows for a longer life span of about 5 times the life of the paper category made of cotton, as well as it is water resistant, less affected by dust, is environmentally friendly, and has much less susceptibility to pollution compared to categories Paper money in circulation, in addition to the difficulty of counterfeiting and forgery.   LINK

Tommy 17:  Interesting timing

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Don961:  An invitation to deal with electronic payment tools instead of cash

Friday 06 March 2020 Baghdad / Al-Sabah

 The new Corona virus showed the importance of using and applying the electronic payment service during periods of disease and epidemics, as it contributes in one way or another to reducing opportunities for friction with the means that transmit the virus, such as paper currencies.

In this regard, the Central Bank of Iraq called on merchants and citizens to deal with electronic payment tools (cards, points of sale, mobile phone wallets) and avoid dealing in cash in order to preserve public health.

Virus Transfer

A statement of the Central Authority, which Al-Sabah received a copy of, stated that this comes "in conjunction with what our dear country is going through, and as a result of the Bank's follow-up to international reports that warn of the ability of banknotes to be a carrier medium for viruses."

It is noteworthy that the bank’s Basra branch, in cooperation with the civil defense directorate in the province, and in the presence of the CBRN team, initiated cleansing and sterilization operations in the building that included all building facilities, to guard against the spread of infections with the “Corona virus”.

 Quick solutions

The "electronic payment" methods, which have spread widely in recent years, come to provide a quick solution for those who live in areas where the virus is spreading.

Electronic payment would contribute to limiting the spread of corona, because citizens will not have to deal with each other with banknotes, which may be "infected."

The fears of the spread of infected banknotes caused some banks to begin sterilizing them, by using ultraviolet rays or high temperatures and then storing them for a certain period before circulating to ensure that they do not contain any residue of the virus.

And Internet users rely on electronic payment services on smartphones to complete their financial transactions without the need for banknotes.    LINK

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Don961: Disclosure of the size of the external debt that Iraq paid during 2019

Economy 03/205 19:55 876 Editor: as   
Baghdad today - Baghdad

Member of Parliamentary Finance Committee Adnan Al-Zarfi revealed, on Thursday (5 March 2020), the size of the external debt that Iraq paid during the past year 2019.

"There is a tendency to squeeze public spending in all ministries and other sectors," the official news agency quoted Al-Zorfi as saying, "The Finance Committee managed to contribute to stopping foreign borrowing by about $ 6 billion, and repaying about $ 4 billion in foreign debt during the year 2019." .

He added that "the parliamentary finance continues to pressure the ministries to reduce spending," stressing "the need to reconsider the numbers prepared by the Ministry of Finance in the budget, and to find other means to squeeze the spending and convert it from consumer spending to productive."

The member of the Finance Committee in the House of Representatives Haitham al-Jabouri announced, on (17 - 12 - 2019), the payment of more than $ 20 billion of the size of the external debt owed by Iraq.  

Al-Jubouri said in a press statement, "The external debt that remains on Iraq is 27 billion dollars and 41 billion dollars for Saudi Arabia is not recognized, because it was debts given to the former regime leader during the Iran-Iraq war."

He pointed out that "the debt on Iraq was more than 50 billion dollars, more than 20 billion dollars was paid during the last period."

A member of the Parliamentary Finance Committee, Ahmed Mazhar al-Jubouri, said on Monday (September 22, 2019) that Iraq's foreign debt exceeded 125 billion dollars.

Al-Jubouri said in a press statement: "The committee has previously suspended the debts, especially the foreign budget, in the 2019 budget, at a time when there is an obligation to continue debt as it was present during the war against ISIS gangs in the governorates of Nineveh, Anbar and Salah al-Din."

He explained, "Debt, especially foreign affairs, amounted to 125 billion dollars," noting that "its survival portends a danger to the economic future of Iraq."

Al-Jubouri hinted that "there are 20 paragraphs of debt that will be in the 2020 budget, after the committee held with the Ministry of Finance 5 meetings during the past month, as part of these debts were loans imposed on Iraq by the World Bank."   LINK