Frank26 Update and MilitiaMan Friday PM 5-8-2020

KTFA:

TINK: FRANK SOUNDED GOOD THIS MORNING. HIS BP WAS VERY GOOD TODAY 130/70 SOMETHING, HE SAID HE DIDN'T WRITE IT DOWN WHEN THEY TOLD HIM. SO MUCH BETTER. HE'S IN PAIN TODAY FROM THE SURGERY AND IS DEALING WITH THAT ISSUE TODAY.

TINK:  LATEST UPDATE: HI EVERYONE: UPDATE FROM FRANK ~ THE DR DECIDED NOT TO LET HIM COME HOME TODAY.HIS WHITE BLOOD CELL COUNT IS HIGH AND THEY WILL BE CHECKING HIM FOR INFECTION IN HIS BLOOD. IT'S PROBABLY HIS BODY REACTING TO THE SURGERY STRESS BUT WE WANT TO MAKE SURE HE'S GOOD BEFORE THEY RELEASE HIM.

PLEASE PRAY THAT THERE IS NO INFECTION. TY

Samson:  Washington to Al-Kazemi: We will follow how to implement the reforms that the Iraqis want

8th May, 2020
The US State Department confirmed, on Thursday, that it will follow how the new Iraqi prime minister, Mustafa Al-Kazemi, applies the reforms that Iraqis want.

"The United States will follow how the Iraqi Prime Minister applies the reform measures that the people are demanding," State Department spokeswoman Morgan Ortagos told Sky News Arabia.

She added that the Iraqi people should express their choices regarding their future, stressing "supporting the independence and sovereignty of Iraq."

The Iraqi parliament voted after midnight yesterday, Wednesday, on the government curriculum for the new Prime Minister Mustafa Al-Kazemi, and 15 ministers were voted on, so that Al-Kazemi’s government acquired an official capacity.

As soon as it was given the confidence, the Al-Kazemi government met with a domestic and international welcome, as both the US and Iranian foreign ministers congratulated its formation and pledged their countries' support for Iraq.

The United Nations, Britain and Turkey on Thursday also welcomed the occasion of the inauguration of the head of the intelligence service, Mustafa al-Kazemi, as head of the Iraqi federal government.  LINK

MilitiMan:  The State Department has their Eyes and Ears on how the reforms measures get applied..

The State Department would know about the meetings that were held in respect to immediate solutions to avoid more crisis and one of the reforms the citizens demand is their purchasing power to increase.

Just as the IMF and World Bank have talked about, as in if there was a time to allow other currencies into the SDR basket, the timing is now.

Thus, giving purchasing power will equate to a demand that the citizens want and they world as well. Not going to get into the SDR ever at a program rate.. imo..

So it it "LAUNCH" season imo.. lol ~ MM

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Samson:  High-risk currencies are supported by progress on trade with China

8th May, 2020

Strong currencies linked to global trade rose on Friday, supported by news of US and Chinese negotiators agreeing to boost cooperation on a trade deal as more and more governments reopen their economies at a slow pace

Senior trade representatives from the United States and China discussed the one-stage agreement between the two countries on Friday, while China said it had agreed to improve the atmosphere for implementation of the agreement and the United States said the two sides believed that commitments would be fulfilled

The phone conversation came in light of escalating tensions between the two countries, which was exacerbated by the United States 'criticism of China' s response to the outbreak of the new Corona virus

The Australian dollar, which is closely related to sentiment towards China and the global economy, rose 0.3 percent to 0.6516 US dollars, after hitting earlier a week's high. The currencies of a number of emerging markets also rose

The US dollar suffered in search of a trend as investors challenged a widespread sense of pessimism about upcoming US employment data and focused on trade news and the gradual lifting of public isolation measures. What undermined the American currency was its damaged yield again, at a time when money markets are considering a low probability of negative interest rates this year

The dollar index, which tracks the performance of the greenback versus a basket of six major currencies, was unchanged at 99.851. The dollar’s ​​decline against higher-risk currencies indicates a recovery in risk appetite with the rise in global stocks, and the Nasdaq index has now erased its losses incurred since the beginning of this year

In addition to significant monetary easing around the world, hopes for a return to economic conditions support sentiment. The euro fell 0.1 percent to $ 1.0823, but held close to the lowest level in two weeks, which recorded on Thursday at 1.07665, although it fell more than one percent per week.

Against the yen, the dollar rose to 106.32 yen, above a seven-week low that it touched on Wednesday  

LINK

MilitiaMan:  There is some data out that may support that in fact there was a nice move in regard to the CBI of Iraq, possibly at close on Thursday. The data suggests as of 05/08/2020 2:35 PM out of Australia shows a move of 74.75% to the upside.. I am not fully sure of the context of the data just yet. But, this article has me smiling.. As there telling us the biggest players on the map are dealing, and it looks promising. The FIMA and SLL has been noted and the IMF and World Bank have spoken too.. We shall see if the data has legs.... imo.. ~ MM

Frank26 Update and more from KTFA Members Thursday 5-7-2020

KTFA:

Tink:  PRAISE REPORT!!!!!!!!!!!!!!! : FRANK IS OUT OF SURGERY-DR SAID HE DID GOOD! DR WAS ABLE TO PUT TWO STENTS IN HIS URETERS TO OPEN UP THE FLOW FROM THE KIDNEYS.

THEY WILL WATCH HIM OVERNIGHT AND SEE IF HIS KIDNEYS START TO FUNCTION WITH THE STENTS IN PLACE. IF THEY DO HE CAN COME HOME TOMORROW!!!

THE TUMOR WAS REMOVED BUT NOT ALL OF IT BECAUSE IT HAD ATTACHED TO THE MUSCLE IN THE BLADDER. CHEST CT WILL HAVE TO BE DONE AND HE BIOPSY WILL BE A WEEK TO GET RESULTS OF THE TUMOR TISSUE.

PRAISE GOD AND THANK YOU ALL FOR PRAYING! THERE WILL BE ANOTHER SURGERY BUT THAT WILL BE DETERMINED ON HOW HIS KIDNEYS START WORKING OF WHAT AND HOW IT NEEDS TO BE DONE. 

BillA:   Here is my train of thought,,,,,,If Iraq does not have enough money coming in to pay their people, bills, loans etc... snd then if they wait for Kazeimi to set his CAB, go over the budget as it has been said in a number of articles that it is ready to be sent to Parl. Make his changes, then send it to Parl. where it will go through the Financial, Legal committees.

Once they make changes based on their recommendation, then be sent to the Parl floor, where they will make recommendations which will necessitate more changes and then put to a vote which past history has shown will take multiple meetings to approve all/most of its' articles.

Historically this process takes from 45 to 60 days. We know that no one will give them a loan to keep up and running, So without reinstating their currency (with a fair rate as Pres Trump has declared). How in the world are they going to keep this country afloat for two more months without either RI'ing or going Bankrupt?

Also keep in mind, there has been no articles giving Iraq the ability to defer their current loan payments. IMO they might have two weeks, not two months.

Coco:  Al-Kazemi sending the budget bill to the parliament before Eid al-Fitr  (May 23, 2020).  Hopefully we'll see a new rate in the next 2 weeks.

GodLover:  I know it's been said over & over again..... the budget needs the rate...… the rate doesn't need the budget. I will add what I think should be stated..... the budget needs the rate & the rate needs the budget imo.  Some of the theories have always had me a little confused as far as the rate & budget imo. We hope the rate is in the budget... with that said, why would the rate come prior to the budget? What would the point be.... imo? I still say, the new rate couldn't be usable until the budget was opened imo. It would be like trying to cash a check that hasn't even been written yet imo.

ChrisC:  I would say, imo, that the people are not that worried about the budget but would be greatly affected by a rate change.  People in the market would be able to buy way more than what they have been able to and suffering people with a handful of dinar could hopefully get what they needed.  The budget could come along any time after they changed the rate.  I will follow this up with an example.  Our budget in the US is based on a value of the dollar and how many of those dollars that it takes to complete a given project.  If we didn't know how much they are worth, how could we say how many we need?  The value of the dollar is in NO way dependent on how many are allocated for any given task in our budget.  I don't see it being different in Iraq.

YoungSC:  That is why Frank has always stated rate before budget because the budget feeds off of the rate. I would trust Frank, Delta and walkingsticks word imo

YoungSC:  A cryptic key message Frank stated in his YouTube video last Saturday. Remember when he stated Family how long will it take to recover after my surgery, 2 weeks or so as he stated. Budget gets submitted before may 23 24. Think about those words from the teacher.

Samson:  Al-Shammari: Five priorities before the Al-Kazemi government

7/5/2020 18:08:50

 A member of the Political Bureau of the National Wisdom Stream, Fadi al-Shammari, saw five priorities before the new government headed by Mustafa al-Kazimi.

Al-Shammari said in his tweet on Twitter: "Five priority before the government, facing the Corona pandemic, tackling the economic crisis, re-arranging the scale of priorities, revitalizing investment and services, reorganizing and unifying the security decision, and supporting the security forces, the army, and the crowd."

He added also that the priority of the government "re - sovereignty and prestige of the state and the limitation of arms and end the farce of the militias and the configuration of the elections {early} transparent". LINK

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Samson:  IBBC contributes to World Bank Iraq Report

6th May, 2020
BBC contributes to World Bank launch and assessment on Iraq Economic Monitor

Iraq Economic Monitor - Spring 2020 - Navigating the Perfect Storm.

The World Bank has released its latest report on Iraq entitled "Navigating the Perfect Storm" with a special focus on "Laying the Foundations for a New Economy in Iraq: Digital Transformation". See link here.

The launch was done via a virtual media roundtable on 4th May and The Press release links can be found in English and Arabic. The report is also being circulated on the World Bank social media outlets.

Members of the IBBC advisory council, including Professor Frank Gunter, provided input that helped shape the final document, which predicts a GDP contraction of 9.7% in 2020 and some stark choices that country faces.

However, there is an extended section on Digital economy and transformation that points the way to change and opportunity.  LINK

Frank26 Update and more Tuesday PM 5-5-2020

KTFA:

FROM TINK JUST NOW .....Prayers Needed

They are admitting FRANK into the ER his potassium level and creatinine level and something on his EKG need to be addressed immediately ..

I’m here with him and I can stay with him.

Updates to come.... Thanks for your prayers! TINK

*************

SPECIAL PRAYER CALL TONIGHT FOR FRANK AT 8:00pm

Call in number is 712-770-4010 Access Code 164723#

Currency365: 

Dinar RV Happens But Your State Still in Lock down? (Give Us Tips)

https://www.youtube.com/watch?v=3ODzyNwTxLM

The New Economic Normal & Precious Metals w/ Bill Holter

Operation Freedom:  May 4, 2020

In this must listen to economic analysis, Bill Holter presents compelling evidence of a new "economic normal".

He especially highlights the relationship between precious metals and other commodities such as crude oil.

https://youtu.be/k1dvxYwRS9c?t=1

Frank26 and KTFA Members Late Saturday Night 5-2-2020

KTFA:

Iggy:  Here is a quote by - Charles R. Swindoll

The longer I live, the more I realize the impact of attitude on life. Attitude, to me, is more important than facts. It is more important than the past, the education, the money, than circumstances, than failure, than successes, than what other people think or say or do.

It is more important than appearance, giftedness or skill. It will make or break a company... a church... a home.

The remarkable thing is we have a choice everyday regarding the attitude we will embrace for that day. We cannot change our past... we cannot change the fact that people will act in a certain way. We cannot change the inevitable.

The only thing we can do is play on the one string we have, and that is our attitude. I am convinced that life is 10% what happens to me and 90% of how I react to it. And so it is with you... we are in charge of our Attitudes.

Frank26:  5-2-20.... GOD IS GREAT!

The first part is about Frank’s upcoming surgery and the second part is Iraq investment news.

Praying for complete healing for Frank and Walkingstick

DELTA AND ANGEL1 ARE GOING TO TALK TO YOU WHILE FRANK IS RECOVERING…THEY WILL GIVE YOU REPORTS

ON MONDAYS.......THEY WILL EITHER MAKE A RECORDING AND RELEASE IT ON THE FORUM OR MAYBE JUST TYPE SOMETHING UP AND POST IT ON OUR FORUM FOR YOU

https://www.youtube.com/watch?v=j2vASBHiHn0&feature=youtu.be

Samson:  UAE Central: Banknotes do not transfer SK faster

3rd May, 2020

The UAE Central Bank denied that banknotes were a way to transmit infection of the Corona Virus to a greater degree than others, but like any other plastic, metal, or wooden surfaces.

The bank called on the users of banknotes to practice the same precautionary measures that are applied to other surfaces, indicating that these notes can be like any other surface as a means of transmitting the epidemic.

He explained: "Until today, no study by an official, reliable body working in the field of printing or dealing in banknotes has demonstrated that the Coronavirus is transmitted faster through banknotes, compared to anything else with a shallow surface."

The UAE Central Bank advised all users of banknotes to exercise the same precautionary measures that apply to other surfaces, such as washing hands with soap, or using antiseptics. He pointed out that he directed the banks to need to sterilize their ATMs periodically, and to provide a hand-sanitizer article for dealers besides those machines.    LINK

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Samson:  Zebari: Al-Kazemi’s government, Iraq and the region must be passed to the gates of hell

05/3/2020 

 The leader of the Kurdistan Democratic Party urged former Minister of Foreign Affairs Hoshyar Zebari to support the government of Mustafa Al-Kazemi. And Zebari said in a post, "The countdown to presenting Mustafa Al-Kazimi's booth to Parliament has begun. The Shiite blocs have objections to their ministerial shares with the prime minister-designate," he said.

He added that the Shiite blocs, "they want to put the blame on the Kurds in the failure to pass the cab, knowing that the Kurds supported Al-Kazemi from the first day and made concessions to him for his success" according to his expression.

And he stressed at the same time, "Therefore, he must be supported - Al-Kazemi - in his noble endeavor to form the next government because Iraq and the region (Kurdistan) are at the gates of hell."

Parliament Speaker Mohammed Al-Halbousi yesterday invited representatives to come to Baghdad on Monday, in preparation for holding a special session to consider giving confidence to the government of Prime Minister-designate Mustafa Al-Kazemi.

A committee to study and discuss the parliamentary governmental curriculum expected to vote on the cabinet of the Prime Minister-designate Mustafa Al-Kazemi next Tuesday. Committee member Representative Yonadam Kanna said in a press statement that "the process of forming the government is nearing completion with insistence not to rotate any minister or minister who was a minister in the previous governments" expected, "that next Tuesday will be a date for voting on the government in the House of Representatives in If the CVs are submitted two days before this date."    LINK

Don961:  After the collapse of oil prices and the decline in the entry of hard currency into Iraq ... a difference of opinion ... Will Iraq face Lebanon's fate in the collapse of the currency ... Will the dinar collapse against the dollar?

May 2, 2020 8:40 PM 

Baghdad / Nina / Rinas Al-Radi:

The Iraqi street, especially the commercial and real estate circles, is witnessing a state of intense fear and fear as a result of the drop in oil prices and the decline in the entry of hard currency into Iraq, which threatens the collapse of the dinar against the dollar and confront the fate as Lebanon's fate and its national currency.

Experts on economic affairs differed in opinions on this issue. Some of them assured the people of the strength of the dinar against the dollar, and some of them put the ball in the court of the government and its strength in the face of this crisis.

The Iraqi dinar is a good store of purchasing power ...

This is what was stated by the economist, Raad Twigg, who emphasized: “The Iraqi dinar is a good store of purchasing power.”

Twij said in a statement to / NINA: »The Iraqi citizen has become increasingly concerned about the possibility of the devaluation of the Iraqi currency after losing part or all of the country's main resource of the dollar. In fact, the Iraqi dinar may decline but to certain levels and not to low levels, as is the case with the Lebanese currency.

He pointed out: »The Iraqi dinar is a good store for purchasing power and is based on cash reserves in the central bank worth $ 60 billion, and then the reduction of imports and their immediate cessation except for necessities such as food and medicine, with central control and state control, and there is nothing wrong with declaring the state of economic emergency and punishing Speculators in the Iraqi dinar or the smuggling of the dollar or money laundering and fighting the formation of multiple exchange numbers and the black market for the currency, all these measures will prevent the Iraqi currency from slipping to low levels of value ».

Coronation called on the government to be cautious and hedging, pointing out the importance of the role of the central bank by adopting a rational monetary policy, and the fine of leaving a margin for currency movement for the purposes of secure monetary expansion, stressing: “The oil and financial crisis will not continue for a long period of time. On its effectiveness and continuing rational lending expansion, encouraging local production and expanding real production in Iraq as one of the alternatives for the importer, which will maintain the monetary cycle.

Twig noted that "One of the ways to support the Iraqi dinar is to invest human and material resources inside Iraq and turn the current situation into a strengthening factor for the Iraqi economy."

The Iraqi economy is a dollar economy and cannot afford any economic tremors ..

And Safwan Qusai, the expert in the economic affairs, did not differ greatly from his colleague Twij in his opinion, but he held the government the greatest responsibility in the collapse of the local currency, saying: “The financial and economic stability of Iraq depends on the ability of The Iraqi government is to remain in the balance zone between the American and Iranian conflict, so strict measures must be taken to comply with the requirements of the American treasury and spare Iraq to enter the US sanctions zone. Other than that, the Iraqi economy is a dollar economy and will not be able to bear any US sanctions.

Qusai stressed in a statement to / NINA: “Iraq can play a role in being a window to the Iranian economy by opening a joint account for humanitarian needs with the possibility of allowing the flow of goods purchased in the Iraqi dinar to benefit Iran, under the supervision of the supervisory authorities in the Central Bank of Iraq and integrity.”

He explained that «Iraq will not face the fate of Lebanon regarding the issue of currency collapse, because Iraq has resources and the Iraqi Central Bank has acceptable proportions that are able to cover the currency within the procedures even with oil revenues stopping for at least eight months to come.

He explained that "what happened in Lebanon is that individuals deposited foreign currencies in commercial banks, which in turn deposited them with the central bank, which paid these money debts to the Lebanese government," adding that "when the crisis occurred and individuals demanding their dues, the banks did not find liquidity and the Central Bank of Lebanon could not pay Receivables in dollars and facilitated the process of paying in Lebanese pounds, which led to raising the exchange rate of the dollar from 1500 pounds to more than 4 thousand Lebanese pounds.

It is noteworthy that the head of the Parliamentary Finance Committee Haitham al-Jubouri confirmed earlier that Iraq has been unable for some days to sell its oil because of the suspension of factories and companies around the world due to the repercussions of the Corona virus crisis.

The Finance Committee submitted a set of proposals to be taken in the face of the crisis of low oil prices, or to reduce its severity.

Member of the Parliamentary Finance Committee, Faisal Al-Issawi, said that "there are proposals submitted by the committee to overcome the crisis of low oil prices, in conjunction with the outbreak of the new Corona virus, and its impact on economic activities." He indicated that there are "several tracks that were presented, such as controlling border crossings, following up the great waste in oil refineries and how to benefit from the monetary block in banks and the central bank, and perhaps going towards international financial institutions to borrow."

He believed that "the current government will not be able to take a decision, or discuss the proposals, and it may be up to the new government."

Between the hammer and the anvil, the Iraqi citizen lives a state of anticipation and panic over the current situation and the fate of the dinar in the coming days.   link

Frank26 and KTFA Members Saturday AM 5-2-2020

Safe Travels to Frank and Tink, God Bless and Get Well soon.~The Recaps Team

KTFA:

Clare:  UPDATE FROM FRANK:

FAMILY, FRANK WANTS YOU ALL TO KNOW THAT, BECAUSE OF THE SIZE OF THE TUMOR THAT NEEDS TO BE REMOVED… IT WILL BE NECESSARY TO HAVE TWO SURGERIES…

FRANK IS REQUESTING, PLEASE, HOLD BACK ALL CALLS & TEXTS WITH REMEDIES & ADVICE, BECAUSE FRANK & THE DOCTORS HAVE A PLAN IN PLACE…

HOWEVER POUR OUT YOUR PRAYERS ON THE FORUM…THOSE PRAYERS ARE GREATLY APPRECIATED…THANKS & GOD BLESS YOU ALL.

Don961:  By the numbers: Abdul-Mahdi is preparing to hand Al-Kazemi a "financial disaster" before he leaves "Salam"!

2020-04-30

Yassin Iraq: Baghdad

Amid the promising political atmosphere facilitating the task of Prime Minister-designate Mustafa Al-Kazemi, coupled with a difficult climate on all economic, health and security levels in Iraq, resigned Prime Minister Adel Abdul-Mahdi is preparing to move to a "relaxation phase" and fold one of the worst Iraqi times.

And the Prime Minister-designate Mustafa Al-Kazimi is waiting for a number of difficult files, perhaps the most difficult and horrifying is the economic file amid the collapse of oil prices and the accumulation of debts and additional appointments that Abdul Mahdi burdened the budget as a patchwork solution to alleviate the demonstrations that killed more than 800 martyrs and more than two thousand wounded and injured.

Al-Kazimi should propose a draft budget law for 2020 after the end of about half of the current year, at a time when economist Abdul Mahdi did not propose any budget project since he was submitted to the position where the 2019 budget draft had been prepared by Haider al-Abadi.

Money available 20% of the required!

And the financial reality of Iraq indicates a sharp decline in revenues of only 20% of the total need for expenditures!

The oil expert, Essam Al-Chalabi, said in a clarification received for "Yass Iraq" that "Iraq's oil revenues in the year 2020, achieved for the month of January: $ 6.163 billion, while the month for February: $ 5,053 billion, and verified for the month of March: 2" $ 989 billion.

He added that "the expected for the month of April: 2 billion dollars, and the expected for the month of May: 1.125 billion dollars."

Chalabi stressed that "that compares this with the need for April salaries and pensions for each subsequent month: about $ 4.5 billion", while "the need for the full expenses required for the month of April and for each subsequent month is: about $ 7 billion !!!"

Chalabi pointed out that "the caretaker government is left only for days and a new government is assumed to assume its functions and there is not yet a certified budget for the year 2020 as no action has been taken to confront the crisis and it is not a regular crisis but a serious crisis that Iraq has never been exposed to," asking: " Who is responsible for this bitter reality? ”
Chalabi stressed that "responsibility for the decision or not to take a decision cannot be overlooked by the assumption of a new government for its tasks and the forgetting of the past.  link

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Samson:  China begins experimenting with its new digital currency

09:24 - 02/05/2020
China will begin testing its new digital currency in four major cities starting next week, according to local media.

In recent months, the Chinese central bank has stepped up its development of the Renminbi electronic currency, which is set to be the world's first digital currency managed by a large economy. According to the British newspaper "The Guardian". The regions that will begin to test the digital currency are Shenzhen, Suzhou and Chengdu, as well as a new area south of Beijing and Cheungan, and those areas will host some of the events of the 2022 Winter Olympics in Beijing.

The China Daily, a government media agency, said the currency had been formally adopted in monetary systems in those cities, with some government and public officials receiving their salaries in digital currency as of May. The "Sina News" said the currency would be used to support transportation in Suzhou, but in Cheungan the experiment mainly focused on food and retail. According to some reports, international companies such as McDonald's and Starbucks agreed to be part of the experiment, but Starbucks denied this, according to the "Guardian."

On April 17, the National Currency Research Institute of the People's Bank of China, which is responsible for developing the system, said that research and development on the digital renminbi "is advancing steadily", and that the design is of a high standard. The progress in the digital currency was reportedly driven by Facebook's announcement in June of its intention to launch a single currency. The China Daily report said that the sovereign digital currency "provides a functional alternative to the dollar settlement system, and reduces the impact of any sanctions or threats of exclusion, whether at the state or company level."  LINK

Samson:  Lebanon signs a request for assistance from the International Monetary Fund

19:38 - 01/05/2020

A statement issued by the office of Lebanese Prime Minister Hassan Diab said on Friday that the government signed today a request for assistance from the International Monetary Fund.

The statement said: "This moment is a pivotal moment in the history of Lebanon, as we started the first step towards a real workshop to save Lebanon from the deep financial gap that is difficult to get out of without effective and effective assistance."

Beirut passed an economic rescue plan on Thursday and said it would form the basis for a request for aid from the fund.

Diab said in a press conference yesterday that Lebanon will use the plan to negotiate a program for the International Monetary Fund after it was approved by the Council of Ministers. Or five years.” Diab indicated that Lebanon seeks 10 billion dollars in foreign financial support. This is in addition to the $ 11 billion in funding pledged at a donors' conference in Paris in 2018 for infrastructure projects but subject to long-delayed reforms.

The crisis has caused economic difficulties on a scale that Lebanon has not seen before, even during its civil war, as Lebanon, burdened with one of the largest public debt burdens in the world, failed to pay off sovereign debts in March for the first time, and the government announced that hard currency reserves reached very low levels and became required To meet vital imports.

The lira has lost more than half its value and tricks between depositors and their savings since October when protests broke out across the country over political elites. LINK

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Samson:  Moody's lowers the outlook for Saudi Arabia from negative to negative

09:56 - 02/05/2020

Moody's Rating Agency changed the outlook for Saudi Arabia's rating to negative and confirms its rating at A1.

The agency said: The negative outlook reflects the growing downward risks of Saudi Arabia's financial strength, as a result of a severe shock at the level of global oil demand. The negative outlook also reflects the growing downward risks of the Saudi financial strength, as a result of the price changes caused by the Corona virus pandemic.

The agency changed the outlook for the Saudi government’s ranking, from stable to negative. She said that the sharp shock of oil prices, will cause an increase in debts and erosion of the sovereign financial fenders of the Saudi government. The agency confirmed its Saudi rankings at A1 supported by the government's balance sheet, which is still relatively strong despite a decline, indicating that the Saudi government will likely offset some of the revenue losses this year and in 2021 through cuts in spending.

The agency expected government revenues to drop by about 33% in 2020 and about 25% in 2021 compared to 2019, indicating that a sharp slowdown in GDP growth will also reduce revenues from the non-oil sector. The agency also expected the Saudi government’s debt to rise to about 45% of GDP in the medium term, suggesting that spending on the health sector will be absorbed in relation to containing the Corona pandemic by reducing expenditures.

The agency stressed that Saudi Arabia's balance sheet has weakened since the last shock in oil prices in 2015 and 2016, despite some recent improvement in budget implementation. LINK

Purifiers:  SPECIAL POST FOR OUR FAMILY...
.
IN DEDICATION... TO FRANK26 AND THOSE TEAMS THAT HAVE SHARED... WITH US... ALL...... THRU FRANK...
.
FIRST.... THE UNITED STATES NAVY BAND

AND THEN... Israel "IZ"
.
"Somewhere Over the Rainbow/What a Wonderful World"

https://youtu.be/zxlNxehADKQ?t=1

https://youtu.be/V1bFr2SWP1I?t=6

Frank26 Video "REER" and more Wednesday Evening 4-29-2020

KTFA:

Real Effective Exchange Rate – REER Definition

What Is the Real Effective Exchange Rate – REER?

The real effective exchange rate (REER) is the weighted average of a country's currency in relation to an index or basket of other major currencies. The weights are determined by comparing the relative trade balance of a country's currency against each country within the index.

This exchange rate is used to determine an individual country's currency value relative to the other major currencies in the index.

Key Takeaways

The real effective exchange rate (REER) compares a nation's currency value against the weighted average of a basket of other major currencies.

Countries with the largest trading relationships would typically have the largest weightings in this comparative index, while countries with small trading relationships would have smaller weightings in the basket of currencies.

REER is used to evaluate how a currency is fluctuating against many others at once, and is also used in international trade assessments.

https://www.investopedia.com/terms/r/reer.asp

Frank26:   4-29-20 .....REER

This video is in Frank’s opinion

https://www.youtube.com/watch?v=ZnTquuArT5U

Dan:  VietNam deserves this to have their currency increase in value.

VietNam has been growing & doing well for a long time.

The pretext for war with VietNam was a false flag operation in the Bay of Tonkin.

Would be a humiliating slap to Iraq if VND went first

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Don961:  An economist devises a set of solutions to the financial crisis

Wednesday 29th April 2020 - 12:16

Baghdad - conscious - Muhammad Talibi

Economist Alaa Al-Fahd presented a set of solutions to get out of the financial crisis

Al-Fahd said to the Iraqi News Agency (conscious), "The large financial deficit as a result of the Corona epidemic, which is causing the decline in oil prices, needs to activate alternative revenues, especially as they constitute 7% of the volume of revenue."

He stressed the necessity of relying on the leading sectors, among them the agricultural sector, to achieve food security, and after its development it would be a source for the industrial sector by using it as a raw material in industries, in addition to operating the labor force and thus achieving high revenues at this stage.

He added, "The border ports and activating the customs revenues can be an alternative solution to the crisis," noting that "the revenues of the ports were wasted as a result of administrative corruption and poor measures taken."

He continued, "Engaging the private sector with other sectors can reduce spending and waste in the public budget, in addition to reconsidering the numbers of employees working in the government sector and their salaries and allocations."

Al-Fahd ruled out "the possibility of resorting to printing currency", stating that "it is up to monetary policy, which cannot be directed by issuing a cash in excess of the need, as the existing monetary mass is estimated at about 60 trillion dinars, offset by a cash balance of the dollar that is a reserve in the central bank to maintain On the value of the Iraqi dinar. "

He stated that "any monetary issuance without a financial cover will cause a financial problem that will reduce the monetary value of the dinar and lead to higher prices for goods and materials in the local markets."    LINK

Don961:  Deputy: All officials must be covered by the “Where did you get this law from?” Nassif reveals to “Al-Zawra” that one of the officials owns a full street in a European country

April 30, 2020 12:05 AM 

 Baghdad / Laith Jawad:

Deputy Alia Nassif demanded the necessity of activating the law, “Where do you get this?” To follow up the influx of the wealth of some officials and political parties, defining the way in which they can escape punishment, and while it revealed that one of the officials has now owned an entire street in Belarus, Rep. Rebwar Taha stressed the importance of this principle encompassing all officials and not only the young ones.

Nassif said in an interview with Al-Zawraa: The activation of a principle from where you will enable the judiciary to hold officials accountable in case their wealth is enlarged in addition to concluding bilateral international agreements with some countries to follow the balances of Iraqi officials in them, indicating that most of the officials who steal public money register their money In banks outside the country, investing them in those countries, or registering their names with their relatives, such as their daughters ’wives or siblings of their marriage, which protects them from legal prosecution, since the law holds accountable first-to-fourth relatives and these are outside the legal frameworks.

Nassif added: Most of the funds and investments of Iraqi officials are in Amman, Abu Dhabi and Belarus, as one of the officials has owned an entire street in Belarus, explaining that political parties are also accused of stealing public money and have financial assets at home and abroad due to the lack of a legal text that follows and is held accountable. Others in the event of an abnormal wealth of their wealth.

Nassif stressed: If we want to activate this principle, it is assumed that there will be a legal law by Parliament and proposed by the government and not just calls or campaigns launched from here and there.

As for Representative Repoir Taha, he said in an interview with “Al-Zawra”: The principle of “Where did you get this?” Is supposed to include all officials from 2003 until now without any exception, and that the corrupt be brought to justice and receive his fair penalty for stealing public money, noting that Many senior officials in past and present governments are involved in corruption in, so this principle should not be focused on only junior employees.

Taha stressed that many officials and the great whales that stole the country are still present in the government or the political process.  LINK

Mon. Night KTFA CC Replay and more Tuesday PM 4-28-2020

KTFA:

Samson:  Al-Rafidain: Many employees received their salaries for the month of April from the bank’s branches

28th April, 2020

Al-Rafidain Bank announced that many state departments employees received their salaries from the bank's branches located in Baghdad and the provinces.

The bank’s media office said in a statement that Mawazine News received a copy of it. He pointed out, "The distribution of the salaries of state employees will be according to specific timelines for each department."

The statement indicated that "the employee or retired person has the freedom to choose to receive his salary from anywhere he is with an electronic card."  LINK

Samson:  Al-Kiddo: The government has its tools to get out of the financial crisis

08:41 - 04/28/2020

Member of the Parliamentary Finance Committee, Haneen Al-Qaddo, affirmed on Tuesday that the government has its tools to get out of the current financial crisis, pointing out that tackling the situation needs to put government bonds to the people, exploiting the revenue of border ports, borrowing, and handing over the region its sums of money to Baghdad.

Al-Kiddu said in a statement to "Information", that "the remedies of the financial crisis that the country is going through depend on the government's actions and procedures, as it is the body responsible for paying the salaries of employees and retirees."

He added, "The solutions are contingent on addressing the 2020 budget and the changes that will be introduced in line with the current situation."

and stated that "the government can deal with the financial crisis by moving towards government bonds and selling them to the people, as well as borrowing from the central bank and other banks, as well as asking the region to hand over the sums it has entrusted, in addition to exploiting the revenues of the border outlets to address the current crisis."   LINK

Iobey777:  Hmmm.. IDK...  oh yeah! sell them "worthless" bonds for a worthless country that is broke!( nor at the very least has stupid leaders who cannot do the right thing for their country!)  Yes, getting rid of Duplicate salaries would be great!! Stop paying those who are NOT doing their jobs to start with!..looks to me like they are scrounging around looking for ANY loophole they can find to get money, instead of addressing the REAL need of the country... a NEW EXCHANGE RATE!!  Which would solve MOST of their problems, but they would still need leaders who are not content to steal every dime they can from their citizens! IMO, of course!

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Monday Night CC with Frank and Delta

PLAYBACK : 605.313.5163    PIN: 156996#

https://fccdl.in/s1Ty8FkvCm

Clare:  THANKS SO MUCH FRANK, WALKINGSTICK, DELTA, AG, & TEAMS! ...FANTASTIC CC!!
WOW.. THIS REALLY IS EXCITING NOW! ... LOVED THE DONG INFO TOO! IMO

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Samson:  A press release issued by the Board of Governors of Central Banks and Arab Monetary Institutions

28th April, 2020

A press release issued by the Board of Governors of Central Banks and Arab Monetary

Institutions (Arab Day for Financial Inclusion April 27, 2020 under the slogan:

  Towards Building a Community Financial Culture that Promotes Financial Inclusion' )

For information click here

Council of Arab Central Banks and Monetary Authorities' Governors Arab Financial Inclusion day - April 27, 2020 Under the Theme of "Towards Building Financial Literacy that promotes Financial Inclusion”

 The Council stresses that the implications of the emerging corona virus highlight the importance of accelerating the transition to digital financial services and enhancing awareness about it

 The Council calls in this context for the following:

Alignment with the priorities of the Group of Twenty (G20)

Promoting digital financial inclusion for young people, women and MSMEs

Encouraging the use of the latest technologies to boost financial inclusion

Spread the digital financial literacy to all segments of community

The Council of Arab Central Banks and Monetary Authorities Governors attaches extreme importance to enhancing access to finance and other financial services in the Arab countries. This focus comes from recognition by the Council of the potential and great opportunities that can be achieved by enhancing financial inclusion to bolster comprehensive and sustainable economic development, assist in addressing unemployment and underemployment challenges and achieving social justice.

There is no doubt that the current developments and the repercussions of the spread of the "Corona emerging" virus, clearly highlighted the great importance of financial inclusion and the need to promote applications of digital financial services, and to educate and educate users of these services.

In this context, the Council of Arab Central Banks and Monetary Authorities’ Governors, in light of the growing need to sensitise all Arab actors to the importance of financial inclusion, endorsed in 2016 the 27th of April as the Arab Day for Financial Inclusion, celebrated this year under the theme of “Towards Building Financial Literacy that promotes Financial Inclusion.”

On this occasion, the Council affirms its support for the international community in enhancing financial inclusion, especially the efforts made by the G20 under the presidency of the Kingdom of Saudi Arabia (KSA). The financial inclusion topic was adopted by the G20 as one of the main aspects of the economic and financial development program, especially as it is closely related to achieving the objectives of sustainable development.

The Council also reaffirms its support for the efforts and priorities of KSA in enhancing digital financial inclusion during its presidency of the G20. The Group pays special attention to supporting the access by young people, women and micro, small and medium enterprises (MSMEs) to financial services by tapping into the latest technologies, as well as awareness-raising and community education efforts which increase the chances of success of Arab countries' efforts and policies in this regard.

The Council also attaches importance to financial inclusion issues in the Arab world through its approach to launch a number of different activities and initiatives in cooperation with regional and international organisations.

The Council welcomed the launch of the Financial Inclusion for the Arab Region Initiative (FIARI) by the Arab Monetary Fund in cooperation with several regional and international organisations. FIARI aims to empower and enhance capacities and capabilities to overcome the obstacles hindering the advancement of financial inclusion indicators in the Arab countries. In this regard, the Council values the comprehensive model of demand side surveys which detect the trends of demand on financial services in the Arab countries for both households and MSMEs.

In view of that, the Council invites all Arab counties to put this model into force to help improve financial inclusion indicators and adopt appropriate policies and strategies in this respect. The Council also calls on FIARI’s partners’ organisations to further support the utilisation of new technologies in providing individuals, and MSMEs with access to financial services.

The Council further values the actions taken by the Arab countries to promote financial literacy, especially the digital financial literacy. It reaffirms the need to integrate all segments of society into the formal financial system, especially young people, women, entrepreneurs and the MSMEs sector. To this end, it is necessary to raise the awareness of those segments, protect their rights and improve their knowledge of financial issues so that they can make sound investment decisions. The Council also calls on all ministries of education, culture and higher education in the Arab countries to double their efforts in order to expand and increase financial education and awareness.

The Council highlights the increasing importance of using new financial technologies in financial and banking sectors, and the significant accelerated growth witnessed by the financial services sector of such technologies and their related services world-wide. In addition, the great potentials offered by these technologies and services in terms of enhancing the efficiency of financial and banking operations, particularly in supporting the opportunities to access finance and financial services and encouraging entrepreneurship. In this connection, the Council calls for raising the awareness of all segments of society about the topics of modern financial technologies and taking the necessary measures to achieve this in coordination with the relevant official authorities.

It also stresses the importance of the Regional Taskforce on Modern Financial Technologies launched by Arab Monetary Fund in sharing expertise and knowledge about modern financial technologies and crystallising different visions on the best way to regulate and put such technologies into effect in the Arab countries.

On the other hand, the Council values the role played by the Financial Inclusion Taskforce in enhancing financial inclusion in the Arab countries.

This role is clear in developing policies and procedures related to financial inclusion in the Arab countries and considering studying ways to improve financial inclusion indicators in the Arab countries and help them implement the relevant international standards and principles. The role of the taskforce is also to strengthen cooperation between the various national institutions and entities concerned with financial inclusion issues in the Arab countries and the relevant international organisations.

Furthermore, the Council looks forward to pursuing the improvement in financial inclusion indicators in the Arab countries, especially as the latest statistics reflect the efforts made by the Arab countries in enhancing access to financial services. Figures indicate that the percentage of the adult population in the Arab countries who have access to formal finance and financial services has risen, on average, to 37%, and soared to 265 for women, and to 28% among low-income segments.

Although these figures draw a veil over the disparities in this regard among the Arab countries, they still indicate the great potential opportunities – especially for private financial and banking institutions – that can be tapped into to enhance access to financial services in the Arab communities.

Likewise, the Council values the efforts exerted by Arab central banks and monetary authorities, and commercial banks and official financial institutions in the past years in marking the Arab Day for Financial Inclusion and their related activities and events on this day. These efforts have contributed to spreading awareness and financial education among all members of the community.

Accordingly, the Council calls on all member states to celebrate the Arab Day of Financial Inclusion and encourage community participation (virtually) in marking the day through the implementation of awareness-raising activities and events to promote the importance of financial inclusion and its objectives. The Council hopes that the planned events of the Arab Day of Financial Inclusion will be successful, and their desired objectives are achieved.

On this occasion, the Director General Chairman of the Board of the Arab Monetary Fund, H.E. Dr. Abdulrahman Al-Hamidy, stressed the importance and the vital role of financial inclusion in addressing the economic challenges affecting growth. He added that this goal would be attainable by mobilising resources to maximise investment rates and create new job opportunities. Dr. Al-Hamidy also praised the growing interest of policymakers in Arab countries on financial inclusion related issues, and this would assist in addressing the challenges of poverty, unemployment and social development. He then referred to the continued efforts made by Arab central banks and monetary authorities and the great interest in the issues of improving financial inclusion and access to quality financial services at reasonable costs.

Dr. Al-Hamidy also lauded them for giving appropriate importance and priority to such matters as part of their economic policies and spreading the literacy of responsible financing in the banking sector. Moreover, he referred to their utilisation of financial technologies in providing financial services, developing legislation, rules and regulatory frameworks that help improving the spread of financial and banking services and encouraging innovation in the industry.

They also aim to follow up the endeavours made to develop a sound financial and banking system infrastructure and encourage the development and expansion of non-banking financial services, as well as policies and programs that enhance transparency in the financial and banking sector.    link

https://cbi.iq/news/view/1477

Samson:  Mr. Governor’s speech on the occasion of the Arab Financial Inclusion Day, 27 April 2020

28th April, 2020

Arab Day for Financial Inclusion April 27, 2020

Under the slogan

Towards building a community financial culture that promotes financial inclusion

We celebrate this day on the occasion of the Arab Day for Financial Inclusion, which falls on April 27 each year and under the slogan towards building a community financial culture that promotes financial inclusion. 

Financial inclusion has a significant positive impact in spreading financial culture and the spread of financial and banking services. The Central Bank has developed plans and strategies that contribute to raising awareness and financial education in order to achieve knowledge of financial and banking services and create an economically and financially informed generation and has the ability to plan and manage its financial life properly. 

Especially in light of the tremendous and rapid development in the field of modern financial technologies, which is the best solution to face the Corona virus crisis, as it enables beneficiaries to conduct financial and banking operations remotely and reduces the use of banknotes that are considered a carrier of the virus, and the Central Bank seeks to apply these technologies and integrate society segments Different according to their need for it, with a focus on developing legislations and supervisory and supervisory frameworks in a way that achieves the spread of financial services and protecting the consumers of these services. 

To transfer and provide applications by banks and payment service providers that enable customers to have easy access to financial and banking services. Online purchase.

The Central Bank of Iraq

information Office

4/28/2020

https://cbi.iq/news/view/1476

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Samson:  Lebanon's developments .. Burning banks to deteriorate living and the collapse of the currency

04/28/2020 16:01:33

Protesters, on Tuesday, burned banks in Tripoli, northern Lebanon, in protest against the deteriorating living conditions and the collapse of the Lebanese pound.

Reports said that protesters had destroyed the façades of the banks in Tripoli, while others had set them on fire. Currently, firefighting teams are trying to control fires in some banks. She explained that this development comes in the wake of the return of protests to the Lebanese cities due to the collapse of the lira.

Hundreds of people demonstrated in the city of Tripoli, on Monday night, against the backdrop of the deteriorating economic situation in the country, in protests interspersed with clashes with security forces despite the isolation measures imposed to contain the emerging Corona virus. A group of men, women and children participated in a march that roamed the streets of the city, calling "a revolution .. a revolution", while the demonstrators tried to reach a house of a lawmaker, but the army forces prevented them, which led to confrontations, according to "AFP."

Following these developments, the Lebanese Association of Banks announced the closure of all headquarters and branches of banks in the city of Tripoli in northern Lebanon , starting from today until the restoration of the security situation.    LIN

Frank26 Video And KTFA News Monday Afternoon 4-27-2020

KTFA:

Frank26:  4-27-20 —8, 9 AND 10.

THIS WHOLE VIDEO IS SOLELY IN FRANK26'S OPINION

KTFA CC Monday Night at 7pm est

Delta will be joining us. We will be talking about things, for example the CEO of the ISX who prepared the ISX to receive a new rate. We went over in in depth M, W and Sat. 

The meeting with the CBI and the Fab4 –they got the rate. (the Fab 4...the IMF, World Bank, U.S. Treasury, and the President of the United States of America...????)

THE ISX is ready to receive the rate. And not only is the ISX going to receive the rate from the CBI and those meetings, but it will be so powerful it will go beyond the Iraqi Stock Exchange. And the International world knows this and is well prepared.

So why did the ISX not go international…..we all know why right…..they need an international rate.

Tonight we will show you a trail of bread crumbs to follow…..make sure you do .

7PM EST

605.313.5164    PIN: 156996#

PLAYBACK : 605.313.5163    PIN: 156996#

TONIGHT’S LIVESTREAM LINK  https://livestream.com/accounts/7854492/events/9106406

https://www.youtube.com/watch?v=g6WNwO-fVd4

Don961:  The US Treasury Secretary expects things to return to normal and the economy to recover by next summer

4 Hours ago

US Treasury Secretary Stephen Mnuchen expected that the economic conditions in his country will return to normal during the coming summer.

Mnuchen explained in a statement that small business projects will resume work during the coming May and June, which raises expectations regarding the acceleration of the American economic recovery with the coming July and August, noting that the repercussions of the emergence of the Corona epidemic and its widespread spread, did not result in an economic crisis in the country However, it caused the disruption of a number of sectors, which are now recovering from the crisis.  link

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Samson:  Oil prices drop due to concerns of excess supply and storage capacity

27th April, 2020

Oil prices fell on Monday, amid signs that global storage capacity was rapidly filling up, raising concerns that production cuts would not come fast enough to make up for the collapse in demand from the Corona pandemic

The losses led the US oil futures, which fell more than two dollars a barrel due to concerns that the storage capacity at the Cushing Center in Oklahoma may reach the maximum capacity

US crude inventories rose to 518.6 million barrels in the week ending April 17, nearing an all-time record high of 535 million barrels recorded in 2017

And US West Texas Intermediate crude futures for June fell $ 2.05, or 12.1 percent, to $ 14.89 a barrel by 0638 GMT, while Brent crude fell $ 1.08, or 5 percent, to $ 20.36 a barrel. The June contract for Brent expires on Thursday

And futures trading on oil recorded losses for the third week in a row last week, and decreased in eight of the previous nine weeks. Brent ended the week down nearly 24 percent, and West Texas crude lost 7 percent

About 70 percent of the storage capacity was filled at the Cushing Center, a US Texas West crude delivery point, by mid-April. Traders say the available energy is already rented  

Producers may not cut production fast enough or with sufficient volume to support prices, especially when global economic output is expected to decrease by two percent this year, which is worse than what happened during the financial crisis, while demand for crude collapsed by 30 percent due to the pandemic

In light of seeking to reduce production quickly, the number of oil drilling rigs operating in the United States fell to the lowest level since July 2016, and the total number of oil and gas rigs in Canada fell to the lowest level since 2000, according to Baker Hughes data LINK

Samson:  Governor of the Central Bank: Iraq suffers from anomalous rates of loan repayment

09:25 - 27/04/2020
The Governor of the Central Bank, Ali Al-Alaq, revealed on Monday that the rate of default in the repayment of loans to banks exceeds 20 percent, considering them to be "abnormal" rates in the world.

The relationship said in a statement reported by the newspaper "Al-Sabah" and seen by him / the information, that "Iraq suffers from a phenomenon of defaulting on loan payments, which leads to banks' reservation on the lending process in general."

He added, "The loan default rate exceeds 20 percent, and this is a record and anomalous rate compared to Iraq and the rest of the world, where the default rate does not exceed 1 or 2 percent."

The relationship explained, “Iraq when it reaches this level, it makes the banks and the lending agencies hesitate a lot and ask for more guarantees.

Noting that “the solution to this problem lies in the fact that there is thinking by specialists, and that the government addresses one way or another to find a treatment for this matter, because it is one of the phenomena The public that makes banks reluctant to provide loans.”   LINK

Frank26 Q&A, Delta and more Saturday Night 4-25-2020

KTFA:

DELTA:  Secretary General of the Council of Ministers makes proposals to preserve the value of the Iraqi dinar, including preventing the import of cars and luxury goods

Baghdad / NINA / -

Secretary-General of the Council of Ministers Hamid Al-Ghazzi presented proposals to preserve the value of the Iraqi dinar, including preventing the import of cars and luxury goods.

The Secretary-General of the Council of Ministers Hamid Al-Ghazzi stated: "The proposals were to stop importing cars for six months and to allow the import of the previously agreed exclusively, especially since the prices of cars are fixed globally and there is no need for more cars at this stage, and stopping the import of luxury goods in coordination between the Ministries of Industry and Trade," for a period of six months, the issuance of sovereign bonds estimated at the price of oil sold at the current price, according to which the buyer owns a specified number of barrels of oil and has the right to sell them to the state after 6 months have passed, and in this way the state withdraws the largest amount of cash liquidity.

Al-Ghazi added: "If the decision to prevent the import of luxury goods is applied, then this means preventing the import of everything that is not inside production, such as car accessories, smart phone accessories, bags, shoes, and toiletries, as well as women's and men's clothing, which are other goods that can be manufactured locally, which encourages the national industry."

The Ministerial Council of Economy had taken several decisions during its last sessions after studying a set of mechanisms and solutions regarding the impact of the crisis of low oil prices on global markets on the economic and social situation of the country, in order to take the necessary measures to protect the living standard of citizens as well as find alternatives that support the state's general budget. 

https://ninanews.com/Website/News/Details?Key=828018

Don961:  Iraq limits the payment of salaries electronically and cancels the manual

04/25 2020 02:19:05  Shafaq News /

Rafidain Bank called on Saturday for some state departments to speed up the activation of MasterCard cards and receive the salaries of their employees for the month of April electronically and not manually.

The bank’s media office said in a statement that the bank is asking some department account managers to activate the mastercard cards for its employees that were received by the bank so that the salary for this month can be disbursed electronically.

The statement pointed out that the directors of the accounting departments of some departments should address the general administration of the bank and instruct the completion of all procedures related to the activation of the Master Card, especially in light of the conditions the country is currently experiencing as a result of the Corona virus and the need to leave manual cash and deal with the electronic system for salary payment.   LINK

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Don961:  Member of Parliamentary Finance fixing the date to proceed with reducing the salaries of a group of state employees

Politics 04/24 2020 18:57 9199 Editor: ht   
Baghdad today - special

The decision of the Finance Committee, Ahmed Al-Saffar, revealed on Friday (April 24, 2020), a specific date to reduce the salaries of employees due to the financial crisis in the country.

Al-Saffar told (Baghdad Today), "The decision to reduce the allocations for some Iraqi state employees has not yet been implemented, and it will enter into force if the economic and financial situation of Iraq remains as it is today."

He added that "the targets of this decision are those with special grades, and do not target the small employee with limited salaries."

The Parliamentary Committee on Economy and Investment had submitted, on Thursday, April 2, 2020, a number of proposals to alleviate the effects of the financial crisis in the country.

The committee said in a statement issued by it, "In view of the difficult economic conditions that our dear country is going through and the increasing challenges, most notably the low oil prices, the global recession, the corona pandemic and other accumulated economic challenges, we offer a set of proposals and initial measures that can alleviate the painful effects on our people, and the most important These procedures:

1. Reducing the salaries of those with the rank of general manager and above by (60%) and allocated to include additional numbers in the social welfare network who have no monthly income.

2- The adoption of compulsory savings in government bonds for employees whose salaries exceed three million and at 20% of their salaries and at an interest rate that is satisfied when the economic conditions of the country improve.

3. Eliminate investment expenditures in the 2020 budget and the current expenditures for non-essential doors (such as commodity and service requirements and capital expenditures), which do not include unjustified expenses in stable conditions, so how in such dangerous economic conditions.

4- Allocating a special emergency budget to cover the requirements to combat the Corona epidemic and disbursing them to operational and investment requirements in accordance with specific priorities in terms of health reality controls and standards and challenges.

5- Collect the money due and the taxes imposed on the mobile phone companies without any delay or installment.

6- Adopting strict procedures for controlling and collecting non-oil revenues, especially in border outlets, for all governorates and the region, and registering a federal revenue that is fairly distributed to all Iraqis.

7- Postponing the payment of all external debts, including Kuwait compensation.

8- Agreement with licensing tour companies to reduce unnecessary costs on the one hand and pay the dues of its current work with oil instead of cash to reduce losses to Iraq from lower oil prices.

9- Postpone the work of all economic agreements with neighboring countries or China in the foreseeable time, especially as its fields are not a priority and some of them are unfair in Iraq.

10- Obliging the region to hand over all the oil produced to the Ministry of Oil for federal marketing, and otherwise its allocations allocated in the budget are transferred to the rest of the Iraqi provinces according to the population ratio, which is a budget of approximately (15) trillion dinars.

11- The issuance of national bonds to citizens through government banks at an encouraging rate of interest that is satisfied when the economic conditions improve to finance the necessary budget with important allocations.

12- Activating anti-corruption efforts, especially its major files, to collect the huge money seized by the corrupt and reallocating them to resources and important exchange gates.

13- The region is obliged to pay the value of any quantity of oil that it sells outside the legal federal context and calculate it from within its budget.

14- Find quick, easy and transparent mechanisms for the delivery of ration card materials and social network care salaries within a week and enough to cover the need for those covered by them for at least two months.   LINK

Frank26:  4-25-20. Saturday Night Q&A

This video is in Frank’s opinion

https://www.youtube.com/watch?v=kQlWYsxPthw

Frank26, WS, MilitiaMan and Don061 "CBI and Fab 4 Meeting Notes" 4-23-2020

KTFA:

Don961:  Reducing the dinar price and its impact on the Iraqi economy

Wednesday 22 April 2020 Engineer Mohamed Sahib Al Daraji

 In light of the current economic conditions accompanied by government failure in managing the file of monetary and financial policies in Iraq, the issue of devaluation has emerged, which is the devaluation of the Iraqi dinar vis-à-vis the US dollar and other currencies in a deliberate and deliberate manner, noting that this differs from the change in the exchange rate that is subject to For the supply and demand process in the currency markets.

I looked at a period of time before a study prepared by the Central Bank on this issue and after scrutiny in this matter and many discussions with experts and specialists and I believe that Iraq needs such economic solutions at the present time I thought that I clarify a realistic point of view may contribute to the crystallization of a specific opinion among the decision-makers in this matter.

In normal circumstances, this type of solution must be the last drug. Unfortunately, the country's economy is mismanaged, the absence of economic doctrine, the continued dependence on oil as a single source, and the exploitation of the economy as an electoral tool that has led to a near collapse in the economy whenever the price of oil decreases, and the failure of successive governments to support the product The industrial and agricultural patriotic pushed the specialists to resort to this kind of thinking.

I may agree with the study conducted by the Central Bank on many points that talk about the need to find other economic solutions other than reducing the value of the Iraqi dinar, but through experience and extrapolation of the Iraqi political situation I do not see on the horizon any ability of the owners of the solution and the contract to bring about a fundamental economic change because of the lack To truly understand the problem in Iraq and look at it from a single perspective, which may be factional, partisan, or personal.

Therefore, my article will focus on discussing a paragraph devaluing the local currency vis-à-vis foreign currencies and responding to factors that affect or are related to the reduction process. For the purpose of taking note of the topic from all sides, the factors associated with this reduction must be discussed. Among the most important of these factors are: -

First: the balance of payments

I do not think that Iraq has a strong position in the balance of payments because Iraq’s exports are only 99 percent oil. If we raise or delete the value of the exported oil and we calculate the balance of payments without it, Iraq’s position will be very negative. It is worth noting that the Central Bank study on the percentage of surplus in the balance of payments, which was estimated to be 5, is discussed. 75 percent of GDP for 2019, from the first two aspects in terms of whether to include the balance of oil exports or not and this balance changed by changing world oil prices.

On the other hand, discussing a real and important question, which is how to calculate GDP in Iraq? What is the proportion of the value of oil exports in it?

 This question also applies to the proportion of foreign reserves available in Iraq, which is estimated at $ 70 billion, which represents 30 percent of GDP, according to the study.

Here, the same problem lies, which is how to calculate the domestic product, and thus how to calculate the ratio of the adequacy of reserves in International Monetary Fund standards or other traditional measures, from It is clear that there is a deficit in the balance of payments because the balance of our payments depends on a very large percentage on oil and consequently the deficit, surplus or strong position depends on the global oil price, the amount of production and the amount of oil exported from Iraq, therefore the study that gave measures for 2019 Totally corrupted from the current year

Second: consumer prices

There may be an effect of the devaluation of the Iraqi dinar on consumer prices, but there are many positive aspects in this framework that can be benefited from and turn this challenge into a real opportunity to build an economic doctrine that fits the current political and social situation.

The rate of imports in Iraq is very large and the annual rate of amounts of hard currency that goes out of the country for the purpose of import is estimated at 48 billion dollars annually and in the case of reducing the price of the dinar, these imported materials will be more valuable in Iraqi dinars than their current value in the local market, which will lead to a decrease in demand On them, and here is the stall of the Persians to refute all allegations that are expected to be high in life due to the devaluation of the Iraqi dinar, because this reduction must accompany a set of economic measures that are supportive of it, the most important of which is controlling the prices of the value of food and fuel. 

In the imported consumables, which are considered a factor in the ruin of the country's economy, it can be addressed and accept a certain increase in the prices of some unnecessary luxury items.

Therefore, there must be packages in the application of this reduction in order to encourage the national product, and we can give a simple example in this framework.

If there is material that we import from neighboring countries, and the value of this material was only one dollar, i.e. its value is 1,200 Iraqi dinars at present, and the cost of producing it is from Local raw materials may cost the owner of the Iraqi factory 1300 Iraqi dinars, so the local product cannot compete with the imported product price due to the relatively high value of the dinar, but if the value of this material is one dollar in light of the exchange rate of 1500 Iraqi dinars and the value of the local product remains for the same article 1300 Iraqi dinars It will be a pain 

The domestic product is cheaper than the importer at the local value and thus this will encourage the owners of factories or farms to produce locally and run the workforce and run the macroeconomic cycle again so this reduction will have a significant role in supporting the local product, and it was noted that the central bank study spoke about the extent of Provides local products As an alternative, here we say that the egg and chicken base must end in Iraq, meaning do we work in a local industry in order to stop the import or stop the import in order to encourage national production? I think that the time has come to break this rule and for the state to put an end to imports in order to encourage production and because capital is coward and factory owners will not risk their money in order to provide material that does not have a market or has no consumer or competing foreign producer at a lower price and the state must be firm and legalize the import in order to Factory owners are able to produce and make the local product a competitor.

It is worth noting that there will be a specific time period in which some products will be less available in the markets, but I believe that the national product will soon fill the void and we will start a new phase of the Iraqi economy.

Third: the level of inflation

Iraq currently does not suffer any rise in the level of basic inflation; therefore, the effect of reducing the currency devaluation level in the basic inflation level will be limited, meaning that if we reduce the currency by 30 percent, the prices of some luxury items will increase by 12 percent, and this price increase can be addressed by moving the economy even if we have to Increasing nominal salaries and moving the wheel of the economy by pumping cash into the street to move some industrial, agricultural and construction sectors.

Fourth: Increasing economic growth and trade

The study prepared by the Central Bank on the effect of currency devaluation on increasing trade growth showed that the relationship between devaluation and the deficit of the trade balance and stimulating the national economy is a conditional and specific relationship with factors including:

A- The extent of the national productive capacity, technologically, financially or humanly, to manufacture the same goods imported from abroad with similar quality and at competitive prices and to replace them with national products.

I think that Iraq can achieve a return from this reduction in this framework, which we mean by the growth and trade framework, because Iraq’s exports are limited to only crude oil, the devaluation of its currency may increase its exports from other materials that encourage the national product, whether industrial or agricultural, to increase its production, specifically some Exportable materials so that there will be new non-oil dollar revenues that can be used as a hard currency to increase the domestic product of the homeland.

Also, this reduction will increase and strengthen the local Iraqi industries to be able to compensate for imports. Therefore, reducing the value of the Iraqi dinar will reduce a large percentage of the import. Revenues and maintains the hard currency coming from selling oil inside Iraq and these amounts are transferred instead of sending them out of the country through the currency auction to pump them into the local market to move the economy wheel, the banks that operate with the currency auction and those behind it may be affected.

Fifth: The effects of reduction on vulnerable social groups

It is also known that the number of people dependent on the government for their income from employees, retirees and those covered by the social protection network is around 6 million citizens. If we take the average of five individuals per family, 30 million citizens depend entirely on their income for government support, and this represents 75 percent of the Iraqi people. The negative effects of this reduction on the purchasing power of this group are limited, because the cuts will have measures to support the ration card and an increase in the minimum salary for the job grades and the welfare network grants.

At the same time, the state must act as a food merchant in the sense that it imports food or provides it from local production and stores it and pushes it to the market at any time there is a deliberate raise in prices or a specific monopoly process, and thus there will be food security for these vulnerable groups and the state also works To support fuel and medicine and direct the general budget to the ration and medicine, and sterilize water and infrastructure.

As for other luxury goods, there is no harm in accepting the cost of some non-essential materials, for example, a mobile phone by 12 percent, or a rise in the price of perfumes, for example, 12 percent. 

On the other hand, I do not think that this reduction leads to an increase in government expenditures in general, but it may lead to an increase in the ration card expenditures, which do not represent 3 percent of the total general budget of the country. At the same time, you can benefit from the increase in revenues in the Iraqi dinar in other operating and investment expenses.

By up to 25 percent, for example if the price of the dollar becomes 1500 Iraqi dinars.

At the same time, this reduction will have positive effects on the remittances of expatriate citizens from abroad for their families, so that the value of what they convert from hard currency into Iraq is greater than the present value and this leads to addressing the status of a particular class in front of the potential relative costly.  

Sixth: The effect of the reduction in public debt

Iraq's foreign debt in foreign currency is about 23 billion dollars (except for pre-2003 debts of 41 billion dollars). The domestic debt in the dinar currency is around 40 trillion Iraqi dinars, including treasury transfers and bonds, and since 95 percent of the public budget depends on imports of oil that is sold In dollars, therefore, foreign debts will not be affected, either negatively or positively, by the devaluation of the Iraqi dinar, as they are receivables payable in US dollars.

As for the domestic or domestic debt, surely the reduction of the dinar’s rate will have a positive impact in the interest of the state, as the value of the local debt against the petroleum dollar. The state is limited to 7 billion dollars, and this indicates that the devaluation of the currency has a positive impact on public debt and thus strengthens the country’s economy without affecting the external debt by any negative impact and therefore there will be no negative impact on the Iraqi situation with the international community due to this reduction in Local currency value.

Seventh: The effect of reducing confidence in the national currency

I do not think (in my personal opinion) that this devaluation of the Iraqi dinar will affect the confidence of global markets and economies in the Iraqi local currency because this planned devaluation must accompany a set of economic decisions that are supportive of this devaluation and reduce its impact, whether on the internal or global economy in the Iraqi currency and the most important

These reforms are to control the expected inflation, as we mentioned earlier through controlling food, fuel and medicine.

The pressures of demand for the dollar may not escalate, but on the contrary, the local counterpart to the dollar unit may be more than before, so the process turns into a process. The dollar and try to keep Aa local currency, especially if we raised interest rates on deposits in local currency rates as a measure of the structural part of the decisions that must accompany the process of devaluation Vtkhvv thus the pressure on the dollar exchange rate.

The central bank study indicated the existence of the stability of the Iraqi dinar exchange rate for a number of years. In this context, I think that this stability is not real, but it is pressure on the dollar price by the country’s monetary policy, and therefore this stability as a result gave negative returns on the Iraqi economy, so stability can remain, but On another exchange rate that is less valuable than the current price.

If we note that the Lebanese experience has lasted decades for an exchange rate of 1500 that is stable but at a real price for the Lebanese pound while it is believed that the Iraqi dinar price on its current stability for the past years was not a real price but rather it was a price engineered by those responsible for the country’s monetary and financial policy, I mean Here is the central bank and the exchange rate is set in the annual general budget by the government and the finance committee in the Iraqi parliament.

 Eighth: Monetary and Financial Policy

Before we get into the details of this factor, we must answer the following question: Do we expect Iraq to have a political ability to manage monetary and financial policy in the face of pressures that may result from reducing the price of the Iraqi dinar against the unit of the dollar? What determines this is the strength of the political administration in the country and the understanding of the political forces, the truth of the problem. The monetary policy tools represented in the interest rate, the discount rate, open market operations, etc.

These can be controlled by coordination between the owner of the Iraqi money, which is the Ministry of Finance, and between the custodian of this money, which is the bank. The Central Council of Ministers shall be the judge and judge in the approximation of views between the owner and the governor.

As for the fiscal policy, the government and parliament must collectively control expenditures and work to increase revenues (and we have talked a lot as others talked about how to increase revenues) in order to control m Suitable for the cash block in order to reduce the effects of inflation on the citizen.

We believe that the pessimistic view of financial and monetary management in Iraq must change. Otherwise, the situation will remain as it is. Yes, there is a big failure in managing these two files, but everything has an end and an end, and I think the time has come to end the failure of monetary and financial policy.

Ninth: The effect of reducing the dinar on the public budget

The general budget is revenue and expenditures, and since the main source of revenue for Iraq is oil sold in dollars, the reduction of the Iraqi dinar will certainly increase the revenue by the amount of the rate of the dinar, so when the price of one dollar is 1500 dinars instead of 1200 dinars, every billion dollars of oil revenue will be worth In the budget is one trillion and a half trillion dinars, compared to one trillion and two hundred billion dinars at the current exchange rate. This rise in revenues will have a clear and positive impact on the general budget. As for expenditures, I would like to refer here to the central bank’s report and discuss it again as He mentioned that the reduction will witness an increase in expenses due to the following points:

Government import of goods and services

This is beneficial because, as we said above, the government should be the first to reduce imports and depend on the local product, whatever the circumstances, and this is an opportunity to create a local economy and increase local production by increasing agricultural and industrial production and reducing imports.

-2 Paying the interest of the external debt

We have previously mentioned in this topic that external debt will not be affected by the dollar’s ​​devaluation, but internal debt will decrease in value relative to the petroleum dollar.

3 - Foreign investments and contributions

This does not represent a significant percentage, it is also in dollars, and we are our resources in dollars, so this is considered beneficial as well.

4- Paying the oil related investments

Everyone knows that paying the dues of oil companies is my eyes with oil, so there is no relationship with the dollar or the dinar.

5- The ration card

I do not agree with the report of the Central Bank that stated that most of the ration card materials are imported. The ration card that must be developed currently depends on four main materials, which are rice, flour, oil and sugar, three of which are flour, oil and sugar purchased locally. Reducing the value of the dinar will save money for the ration card when purchasing These materials and the only material that is imported is rice, and in the same logic that we spoke in this article, the oil dollar will not be affected because Iraq sells oil in dollars and imports rice in dollars. In sum, the reduction of the dinar will affect the ration card positively.

6 - Social protection salaries

In the event that the dinar is reduced, the government should increase the social protection salaries with the same expected inflation rate, which is 12 percent. In this way, we remove the potential inflation effect from the socially vulnerable groups.

Conclusions:

In the end, gradually reducing the value of the dinar will have positive effects on the economy of the country, from which it can be taken advantage of, and other negative things that must be taken in advance to avoid them so that the gross product will be positive for the national economy and to avoid the expected economic shock.

The positives are as follows:

1- Encouraging the local agricultural and industrial product.

2- Stir the wheel of the country's microeconomics.

3- Employment of labor and absorption of unemployment.

4- Increasing the revenues of the general budget and reducing import expenditures.

Naturally, this measure will have negative effects, so the government must take a series of measures in parallel with this reduction, as follows:

1 - Stopping the currency auction to maintain the hard currency inside the country and that the dollar and other foreign currencies are sold and traded directly in the currency markets or through the stock market, in order to get a real price of the Iraqi dinar against the American dollar, and that the guarantor of the prices is the value of the available reserve The Central Bank of Iraq has hard currency.

2- Setting an import platform, stopping some imports, controlling customs outlets, supporting the tax system, and exempting the local product from income tax for a period of two years.

3- Building the budget on a fixed oil price for the operational budget and moving to the investment budget, directing the budget to salaries, purchasing the ration and medicines, and sterilizing water and the educational process only.

4- Delaying the dues of oil companies or paying them in kind outside OPEC's share.

5- Selling oil coupons locally, at the prevailing price now, and buying them a year later at the prevailing price then.

6 - Increasing nominal salaries by 10 percent, reviewing high allocations to achieve social justice, and increasing salaries of the social protection network by 12 percent

7 - The state imports commercial foodstuffs into the market and injects it into the ration program in the event of high prices. And activating the role of economic security and entering the competent government agencies to control the cash rhythm in the currency market and the markets for the sale of foodstuffs.

8 - Supporting fuel for transport and factories and giving high relative importance to Food industries .

9 - Pumping a hard currency to the exchange markets to maintain the price level of the Iraqi dinar, preventing the price from slipping so that its decrease exceeds 30 percent within two years.

10 - The Ministry of Finance issues the e-dinar for the purpose of collecting government revenues and fees due and what distinguishes them from being non-negotiable in the market as cash and thus we have reduced corruption in this aspect as well as the state's knowledge of the value of those imports quickly to be issued by a government bank and not through companies Eligibility.

In conclusion, such a procedure requires a courageous decision by statesmen who are able to manage a stage through which the world in general and Iraq in particular, statesmen who lead society and manage state institutions literally without paying attention to partisan or factional or electoral interests, but rather put the interest of Iraq first.

Member of the Finance Committee  link  

Walkingstick:  Thanks, Don....F..... note.  ~ WS

Frank26:   KTFA FAMILY AND INTERNET ........... WALKINGSTICK AND I ............. TOLD YOU THIS WAS HAPPENING........ CBI AND FAB 4 MEETING NOTES ............ NOW WE ARE READY FOR ..........# 7

(Note: We beleive the Fab 4.is the IMF, World Bank, U.S. Treasury, and the President of the United States of America..?.)

MilitiaMan: Snippets:

"The official, who preferred to remain anonymous (read Care Taker Gov), added that "continuing to hold auctions to sell currency and pump tens of millions of dollars per day to preserve the value of the dinar leads to great risks for the country's economy, and it is better for the central bank to cancel the currency auction and install its local currency, since most of the beneficiaries are Of these auctions are not businessmen and merchants, but banks, banks and private sector companies dominating the market, a large part of which has been transferred out of Iraq." 
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"There are daily discussions to reach a road map that enables the country to maintain an acceptable exchange secret of the dinar against the dollar."
---------------------------------------------

The SMART option 

This option starts with confidential price policies based on reducing the external value of the currency as a proactive measure and providing financial obligations in the general budget recording a final revenue that can be agreed to leave its inflationary effects as a waste

The two levels will support the additional financing agreement for the deficit to be in the form of balances intended to exchange foreign goods, services and benefits, and thus the demand for foreign currency will increase at rates that change with the inflationary expectations and the fluctuation in the stability of the cash demand function.

Nevertheless, the matter will depend, in all cases, on the growth of foreign reserves and their installation in the central bank's investment portfolio.

If the growth in demand for foreign currency, for example, exceeds the growth of foreign reserves themselves, then this means that there are inflationary expectations leading inexorably to a series of continuous reductions in the exchange rate through the stages of late lags and the opposite happening, the money market may reach a state of balance and stability, especially when the growth in supply and demand is equal to the foreign currency supply and demand .

Here, the stability of the exchange rate (as it is a nominal stabilizer for inflationary expectations) depends on the degree of current account balance, the balance of payments, or its ability to achieve a surplus in excess of the most important in that account relative to GDP and at that time , the Iraqi dinar exchange rate and its purchasing power is growing again (via mirror and foreign inflationary currency) and we may find in the monetary conditioning the possibility that the intervention window in the central bank will take over by using and buying in a dollar that will be more expensive in relation to the dinar than a previous level or a higher degree of sterilization in liquidity levels, which will lead to the stability of the money market, but at a new, guided exchange rate compatible with the internal and external equilibrium situations, as long as foreign reserves begin with some stability in their adequacy and relative abundance. 

Finally, we must realize that the conditions of fiscal adjustment (i.e. maximizing non-oil revenue), and we mean actual taxes, have become a cloudy issue in Iraqi public finances and that imposing them may cause a fiscal cliff to pose a serious fiscal stagnation, the monetary illusion in nominal dinars in spite of inflation tax and inflation according to the monetary option will give it stability in many internal contractual transactions and will remain on the formalities of nominal contracts in dinars, such as debts, rents, salaries, wages, etc without change as long as they are denominated in contractual prices, and this is a preference or first best 

Auto (*) Researcher, economist, and financial advisor to the Iraqi government. All rights reserved. Republishing is permitted provided that the source is indicated, April 19, 2020 OFF http: / iraqieconomists. net / 

MilitiaMan:  The above snippets are in line with the fresh article out above from a member of the Finance Committee. Above they are talking about pumping hard currency into the markets to maintain pricing of the Iraqi dinar.

They will use the intervention window to sterilize the currency. In other, words they are going to defend the new exchange rate and for about two years within a 30% range.

The new guided exchange rate.. Guided is the key word.

The CBI is going to use the intervention window to guide the new exchange rate. So, once they set the rate they will use the stock or currency markets to defend the rate. As in to keep the price range steady and stable.

Sterilization is used for appreciation of currency and or the depreciation of currency pricing.. In this case once they raise the new exchange rate they will use sterilization techniques to intervene in the market when and where needed to support the price. A very good thing my friends!  Very good! imo

We already know the Auctions have changed as we knew them and there are no cash sales now. So the Auctions are not status quo, as some may feel..

Imo, they have knocked that item down from the list of things to do. The CBI will need to have another venue to make money. They have one..

Once they make the move to RI, they will sell the Dinar and make oodles of cash in doing so. Hence, they will not be selling dollars. They will want the Dollars for their own foreign currency reserves. Thus, supporting the local currency, which the Customs and Taxes at the borders will do as well.

The Customs and Taxes at the borders will be electronic and transparent, (Block Chain) and the revenues from them will be able to take up the slack in oil revenues that are presently lacking.. 

Them telling us they will be using oil coupons to leverage contracts is a very good sign they have the Secondary Markets in mind. They can use contracts to hedge risk when pricing goes up in oil or down. For that, matter it won't only be for oil but many other commodities too. E-Dinar is going to be used.. Safe, sound and secure.. Less corruption... 

Next thing to support them heading into the secondary market is that the ISX is slated to open on the 26th of the month.

Their office opens on Saturday, fwiw.. Then, think about the Board of Directors of the CBI told us they have EQUILIBRIUM.. Then, we see the CBI adjusted the the values on the ISX Indice. It was not the ISX that did the adjustment. It was the CBI that did it. They have equilibrium by 1,045.71% real close per there data. See the difference..? It was not the ISX's job to change the Indice it is the CBIs job and they have equilibrium and show it there.  

Notice lately that they seem to tell us things when the Banks are closed and the ISX is down? Last weekend was the same with CBI articles for Al Nassery and Mahmoud Saleh... Both were very loud, just as this article is above.. I don't know about you all, but, this is looking very promising. That data from the CBI adjusting the Indice was for a reason and the below fits the bill imo..

One more thing. There is indirect implications in respect to the SDR. I am not sure but, the way I look at it is this way. At a program rate the IMF would never talk about Iraq being placed into a position to use the SDR basket.

But, if they RI and the rate is agreeably strong and supported they may be allowed access the SDR basket. Then they could use the SDR for a borrowing facility to also support the IQD from future shocks. This is a very well designed and orchestrated turn of events if it plays that way. Imo, it may very well be spot on.. imo ~ MM

---------------------------------------------------------------

"Such mutual monetary exchange has come to achieve the equilibrium of the money market in Iraq, using the exchange rate and the interest rate, and they are considered toxic toxic and inflation expectations at the same time. "

"Here, the stability of the exchange rate (as it is a nominal stabilizer for inflationary expectations) depends on the degree of current account balance, the balance of payments, or its ability to achieve a surplus in excess of the most important in that account relative to GDP and at that time , the Iraqi dinar exchange rate and its purchasing power is growing again (via mirror and foreign inflationary currency) and we may find in the monetary conditioning the possibility that the intervention window in the central bank will take over by using and buying in a dollar that will be more expensive in relation to the dinar than a previous level or a higher degree of sterilization in liquidity levels, which will lead to the stability of the money market, but at a new, guided exchange rate compatible with the internal and external equilibrium situations, as long as foreign reserves begin with some stability in their adequacy and relative abundance. "

Monday Night KTFA CC Replay and Tuesday News 4-21-2020

KTFA:

Samson:  TRADE BANK OF IRAQ - the importance of e-payments and modern banking systems for the benefit of the Iraqi citizen

20th April, 2020

Hosting Iraqi channel for Mr. Fouad agent - Vice President of the Iraqi trade bank

Talks about the importance of e-payments and modern banking systems for the benefit of the Iraqi citizen.

VIDEO LINK

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Monday Night CC 4-21-2020

PLAYBACK : 605.313.5163    PIN: 156996#

https://fccdl.in/m7Ek3Q14yh

Don961:  The prime minister-designate presents his cabinet this evening

Tuesday 21, April 2020 17:03  Baghdad / 

Nina / Political sources revealed that the Prime Minister-designate Mustafa Al-Kazimi will present, this evening, his ministerial formation to the Shiite political forces to inform them of the selected personalities and hear their reactions. / End 7   LINK

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Don961:  The first comment from Donald Trump on the collapse of US crude prices

2020.04.21 - 01:15  Baghdad - people

US President Donald Trump briefly commented on the collapse of US oil prices during his daily press conference at the White House, which he devotes to talking about developments in the Corona epidemic.

Trump said at his conference at dawn Tuesday Baghdad time (April 21, 2020) that he was "looking to put 75 million barrels in the American oil reserves that he plans to fill with excellent prices," noting that his administration wants to "reopen America's economy in a responsible manner."

He added: "We hope to vote tomorrow in the Senate on an additional economic plan, and that the Americans continue to observe the rules of social separation."

Trump devoted most of his speech to the developments of the Corona epidemic in his country, stressing that the United States has made excellent progress in providing respirators and that it will soon help Mexico and other countries.

And an Iraqi economist presented, on Monday, simplified explanations for the causes of the collapse of American crude, while determining the percentage of Iraq being harmed.

Professor of Economics Nabil Al-Marsoumi said in a post that was followed by "People", (April 20, 2020) that "the collapse of West Texas crude to less than 6 dollars was not in the spot contracts or in the future contracts for the delivery of the month of June, which is still between 22 - 23 dollars, but it was Crude futures for the month of May are about to expire, and so the sale of these contracts worsened before the closing date, as they are due to officially expire when the prices are settled tomorrow, Tuesday, April 21, which contributed to the collapse of US crude.

He added that "the storage of US oil is occurring at a rapid pace, exceeding the levels of 70%, approaching the maximum storage."

He continued, "It is expected that US crude prices will rise again after the May futures sale boom ends."

He concluded by saying that "the damage to Iraq is not so great due to the collapse of American crude, due to the limited Iraqi exports to the United States, which are centered around 400,000 barrels per day, as well as that Iraq price Iraqi crude exported to US markets on the basis of ASCI crude (which also witnessed a significant decline ) It is not West Texas crude, as the price at which it sells Iraq depends on the rate of five bullet emissions for ASCII crude 15 days after the tanker is loaded and not on the basis of the one-day price rate.

Experts attributed the collapse of the American crude, Monday, to a number of factors that are not limited to the decline in demand for crude due to the state of closure in most regions of the world, due to the spread of the Corona virus, and the approach of American oil depots to fullness, while an Iraqi expert discussed the impact of the collapse of American oil prices, likely to Iraqi oil prices are relatively safe.

According to the latest developments, Reuters said that prices have reached -8, that is, after prices tumbled within hours from the limits of $ 20 a barrel of US oil to below zero, after having settled for several minutes at a few cents. 

The collapse in the oil market comes amid a state of economic stagnation due to the repercussions of the spread of the Coruna virus, and the measures taken to combat it.

The International Monetary Fund warns that getting the world's economies into a downward spiral will be the deepest since the Great Depression of the 1930s.

However, the sharp drop in crude prices is also due to technical reasons related to the approaching May deadline approaching Monday. June contract prices fell.

"The problem of an imbalance between supply and demand globally is beginning to materialize in prices," said Bernard Tonhugen, an analyst at Restad Energy.

He added in his speech to the Russian agency, "As production continues as relatively normal, the stockpiles are filled more and more every day."

Meanwhile, indicators that the emerging Corona virus appeared to have peaked in Europe and the United States did not succeed in raising Asian and European financial markets in general.

Instead, dealers are increasingly concerned that oil storage facilities may reach their maximum capacity, with stocks piled up due to the collapse in demand caused by the Covid-19 epidemic.

Analysts said that the agreement concluded this month between OPEC and its partners to reduce production by ten million barrels per day, does not affect significantly, because the comprehensive closures imposed and restrictions on travel forced billions of people around the world to adhere to their homes.

WTI was perhaps the most affected, as its main storage facilities in Cushing, Oklahoma, were full, while Traficat consultancy Sukrit Vijayakar pointed out that refineries did not process the crude quickly enough.

He said that there are many supplies from the Middle East without buyers "due to the high shipping costs."

"Nobody wants to take over oil with Cushing storage facilities full from one minute to the next," Stephen Ennis of Axecorp said, adding that "It did not take long for the market to realize that the OPEC Plus agreement would not be sufficient in its current form to ensure a balance in the oil markets." ".

Concurrently, most of the stock markets have retreated as well, although governments are beginning to think about how and when to ease the closing measures that have paralyzed the world economy.

And with the start of trading on Wall Street on Monday, stock indices fell to record Dow Jones Industrial decline by 1.8 percent at 23798.01 points in the first ten minutes of the trading session.

The S&P 500 index fell 1.3 percent to 2835.08 points, while the Nasdaq lost 0.7 percent to 8,588.66 points.

Italy, Spain, France and Britain recorded a decline in their daily number of deaths, accompanied by a slowdown in injury rates, while Germany began allowing some stores to reopen, while Norway reopened nurseries.

In the United States, New York State Governor Andrew Como said the epidemic was "receding," but he cautioned that this was "not the time to brag."

There is growing evidence that measures of closings and social estrangement slow down the spread of the virus.

On the other hand, economists say that the prices of the next fall payments may witness a noticeable improvement or even a recovery closer to the previous pre-crash rates, given the high expectations that global consumption may return to its levels by the fall, which will coincide with the recent OPEC + cuts package. 

On Monday, Advisor to the Prime Minister, Mazhar Muhammad Salih, explained the collapse of the oil markets in the North American continent, returning to the world that he had entered into a "fatal price war."

Saleh said in a statement, "People" received a copy of it, (April 20, 2020), that "the American market has played in recent years a dual role as an oligopoly sellers market and a monosopeny buyers market at the same time, especially during the past ten years gradually," noting that " The United States consumes about 19 million barrels of oil per day and represents 19% of the world's production alone and is the largest consumer of oil in the world. "

Saleh added, "The United States is one of the largest oil producers in the world, with a production capacity of about 13 million barrels, whether from shale or conventional oil." It is the Kingdom of Saudi Arabia, which contributed to dumping the market by nearly 12 million barrels per day.

And Saleh pointed out that "the whole oil world entered into a fatal price war and then turned the oil market into recession until it reached the point of collapse." A buyers market leads the world oil market to constitute a price war, the collapse of OPEC's strength as a sellers market, and the victory of the US-led buyers' market.

The advisor to the Prime Minister added, "It is two chances of victory. The first is that the low demand for world oil, which is 30% less than the current supply, and the second is an additional surplus of 300 million barrels capacity in the futures market," adding, "As this market formed the symbolic oil front or forward which He led the night’s collapses by turning the oil futures market.

And the appearance of Mohamed Saleh pointed out that "all speculators turned once to the short position, i.e. sell soon for futures contracts with the hope of cheaper purchase of the contracts themselves, but at a low point below the lowest breakpoint in the world, which did not lead to the collapse of the entire oil market."

He pointed out that "the final buyer of the oversupply is the United States market, which seized the collapsed future oil contracts, extensible them, and turned them into an immediate market," noting that "speculative oil companies in the United States are the ones who have the ability to receive the surplus supply and liquidate their contracts against storage capacities which are the largest In the world, in the future, the market will turn into a long position after that melting point or the breaking point above. "

Saleh concluded by saying: "It is the opportunity of the last winner who reaped the losses of the entire world of oil. The winner is the speculators who possess crude oil stocks in the United States of America, and according to a strategy the oil market will remain a buyers market forever."

On Monday, the Sadrist leader Muqtada al-Sadr's page called for taking a lesson from recent developments.

Minister of Al-Sadr Salih Al-Iraqi said in a post that was followed by “Nass” (April 20, 2020), “Oh God, occupy the oppressors with the oppressors, and bring us out from among them unscathed ... and isolate them and what they worship without God.

And one of the followers published "Enough lessons, and kills kings and succeeds others", to respond to Muhammad Salih al-Iraqi, "The one who tries the mighty is the man of the oppressors, the Great of His Majesty, the deceased of the corrupt and the disgrace of the worldliness, he is above them an authoritarian oppressor who does not show mercy except those who are humble, those who are faithful, obedient, those who seek forgiveness, and those who are disbelieving, and those who are disbelieving, and those who are disbelieving, and praising the disbelievers, and those who praise them. .

And he added, "Corruption appeared on land and at sea, as people gained hands so that some of them who had worked may harm them, so that they may return.   LINK

Don961:  Calls for sound monetary policies to control the financial market

April 20, 2020 10:27 PM Baghdad / Al-Zawraa:

The dollar price indices in all governorates of Iraq have returned to their normal levels after they recorded a noticeable rise a few weeks ago, confusing the market at the time.

A member of the Baghdad Economic Forum, Jassem Al-Aradi, said: "There is a group of reasons that led to the rise in the price of the dollar, along with another group that caused the price of the dollar to drop very close to the normal levels it had before the curfew due to corona."

Natural rates
The past few weeks have witnessed an increase in the currency exchange rate of $ 100 to 126 thousand dinars, while prices have fallen significantly to reach, on Sunday, close to their normal rates at 122,500 dinars per hundred dollars, after they were before the current conditions 121 thousand dinars per hundred dollars.

Economic activities
Al-Aradi added: In a press interview, Al-Zawraa followed: “The reasons that led to the rise in the exchange rate of the dollar came as a result of the drop in oil prices, accompanied by the effect of the Corona virus and the curfew, which caused the suspension of most economic activities, in addition to the temporary stoppage in the sale window.” Currency in the central bank. ”
And between "As for the most important reasons that led to the decline in the exchange rate, it is represented by the central bank re-operating the same window."

Market conditions
and stressed that "the high dollar exchange rate was temporary and corrected, and this is not the first time that the exchange rate of the dollar has increased in Iraq because of speculators exploiting the conditions of the Iraqi market," noting that this is a temporary situation and can always be controlled.
Al-Aradi pointed out that "monetary policies, if they deal with sound and correct mechanisms, can control the financial market, and this can only be done in cooperation with private banks through consulting with them on the general policy of markets, and the need for cooperation and coordination to pay the damage of the high price of the dollar to citizens."

The private sector
explained, “The dollar is purchased for private and governmental banks during daily sessions to buy and sell foreign currencies held by the central bank to finance merchants from the private sector or for tourism and study outside the country, but when that does not happen at the banks it records a clear violation and a clear violation of the bank’s instructions Central ».   LINK

Samson:  Fitch Downgrades Outlook for Trade Bank of Iraq (TBI)

21st April, 2020
Fitch Ratings has revised the outlook for the Trade Bank of Iraq (TBI) from "Stable" to "Negative".

In a statement, it says that TBI's Issuer Default Rating (IDR)s are driven by the bank's Viability Rating (VR) and underpinned by potential sovereign support.

"The revision of the Outlook to Negative from Stable follows a similar action on the sovereign rating (see "Fitch Revises Outlook on Iraq to Negative; Affirms at 'B-'" on http://www.fitchratings.com).

"This reflects the impact of the decline in oil prices on Iraq's fiscal and external finances, near-term uncertainty concerning the sovereign's financing plan and limitations on policymakers' ability to respond to the fiscal crisis. Iraq's budget revenue sensitivity to oil price and volume is significant, given dependence on oil that accounts for 85%-90% of fiscal revenue.

"We forecast that the budget deficit will widen to 19% of GDP in 2020 and government debt/GDP to an average of 80% in 2020-2021, versus 47% in 2019.

"TBI's VR of 'b-' is constrained by the operating environment in Iraq, which is volatile and challenging, and where TBI generates 70% of its business volume (on- and off-balance sheet exposure).

"Therefore, the operating environment and broader country risks influence TBI's standalone risk profile. As a result, we see downside risks to the stability of TBI's business model, the ability of the bank to execute its strategy, as well as earnings, capitalisation and funding and liquidity relative to when we last reviewed TBI's ratings."   LINK

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Samson:  Economist: 50% of Iraqi oil prices will be affected by the drop in US crude prices

08:50 - 04/21/2020
The economic expert, Dr. Safwan Qusai, explained on Tuesday the reasons for the drop in American oil prices to levels not previously recorded in history, indicating that 50% of Iraqi oil prices will be affected, especially exported to Europe and America, while oil exports to Asia will remain at the level of 20 dollars For the barrel.

Qusai said in a statement to "Information", that "the drop in US oil prices is the result of speculation in future contracts for the next month of May, as who can buy in the future can buy and sell during a limited period, and the last day for trading on the stock exchange was yesterday, so the US storage energy Oil has reached its highest levels, so it can no longer store more oil, especially as there are no oil importers in light of the Corona virus outbreak, which pushed prices down significantly.

He added that "the future contracts for the month of June next, the price of a barrel reached at $ 22," noting that "there are more than 100 million barrels stored in the world, especially Europe, so some countries are forced to sell at a low price."

And that "Iraqi oil is sold in three markets (Asia, Europe and America) and each market has its own price, but more than 50% of Iraqi oil goes towards Asia, especially China and India, where the Chinese economic movement began to return, which makes the price of Iraqi oil at 20 dollars. Per barrel, and the Chinese economy is expected to return to normal in next July, at which time the price of a barrel of oil will reach 40 dollars.

He explained that "50% of the Iraqi oil prices that go east will not be affected by the decline in American oil, and it could be strengthened if Iraq presents facilities for Chinese companies, and consequently, it is possible to increase oil exports to China after a portion of the oil exported to Europe is transferred to China.   LINK